HomeMy WebLinkAbout#05 - Wastewater Incentive ProgramSTAFF REPORT
DATE: October 3, 2017
CONSENT
AGENDA ITEM: Wastewater Incentive Program TO: Mayor and Council SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND: In June of last year, the Finance Committee recommended and the Council adopted a Wastewater Incentive
Program for properties with an existing private on-site sewage treatment system. To encourage people to connect to the municipal sewer sooner rather than later and potentially eliminate environmental concerns related to some private systems, an incentive of 50% or ($2,000) of the SAC and connection fee is available to those connecting to municipal sewer within one year of the date the connection is available. City ordinance and Met Council rules otherwise allow properties two years to connect. At the time, the finance committee said they would come back and look at options for those on the city owned community septic systems (201s). The City Attorney offered the following opinion at the time. Water and sewer fees are guided by Minnesota Statutes Section 444.075, which provides broad authority to cities to charge “just and equitable” fees for the use and availability of water and sewer service. There is case law that discusses
the broad legislative authority of cities to create and set these fees. Based on that, the City Council could consider and adopt a formal policy or program which lays out how credits will be awarded, who is eligible, etc.
The Mayor asked that we look at extending the incentive to city owned community septic systems earlier this year. The Finance Committee reviewed this at their May meeting but weren’t inclined to recommend
the extension at that time due to the fact that these properties already are exempt from paying the Met Council SAC and the committee was waiting for an updated pro forma. At the September work session, staff was directed to move forward with amending the program to include those on city owned community septic systems. The pro forma was delivered to the finance committee after this council work session and was presented earlier tonight to the Council.
ISSUE BEFORE COMMITTEE: Should the Council extend the Wastewater Incentive Program to 201 users?
PROPOSAL DETAILS/ANALYSIS: Included in your packet is a resolution to extend the wastewater incentive program to those on the city owned 201 community septic systems. The resolution would make the incentive retroactive to Old Village Phase 1 properties. FISCAL IMPACT: An estimated 50 residential equivalent credits (RECs) would be impacted by this. So the impact to the sewer fund would be a loss of future revenue of $100,000. OPTIONS: 1) Approve Resolution 2017-107
2) Amend and then Approve Resolution 2017-107
3) Do not extend the incentive to 201 users
RECOMMENDATION:
Motion to approve Resolution No 2017-107
ATTACHMENTS:
• Resolution No 2017-107
CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-107 A RESOLUTION EXTENDING THE WASTEWATER INCENTIVE TO 201 USERS WHEREAS, the City Council approved a Wastewater Incentive Program on June 21, 2016; and
WHEREAS, the program provides a 50% reduction on the Sewer Availability Charge (SAC) and sewer connection charge if those with an existing on-site sewage treatment system connect to municipal sewer within one year from the date the main is available to their property; and
WHEREAS, the incentive was created to address potential environmental concerns; and WHEREAS, the City owned 201 community septic systems also present potential environmental concerns as replacement land is not readily available;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lake Elmo, Minnesota, does hereby extend the Wastewater Incentive Program to those properties served by City owned 201 community septic systems who connect to municipal sewer within one year of its availability to their property.
BE IT FURTHER RESOLVED that this extension of the program is retroactive to include those properties in the Old Village Phase 1 project. APPROVED by the Lake Elmo City Council on this 3rd day of October, 2017. By: __________________________
Mike Pearson
Mayor ATTEST:
________________________________ Julie Johnson City Clerk