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OCTOBER UTILITY MEETING MINUTES
OCTOBER 21, 2009
The meeting was called to order at 6:00 p.m. by chair of the utility committee Cindy Endicott. Present for the meeting were: chair Endicott, supervisors Jeff Bachke and Greg Andrews; MSA representatives Jerome Flogel and Eric Sautbine; clerk Patti Alander; deputy clerk Cammy Hansen; and residents Mark North, Lori Olson and Andrea Schmaltz. Absent was committee member Robert Parker and supervisor John Goman.
BUSINESS FROM THE FLOOR: Mark North, 4209 W. Calvary Road: Following up from his request last month that we speak with our attorney regarding the assessment on the West Calvary properties. Patti responded that she spoke with Mary Frances Skala at the Fryberger office and asked her to please review the notice. Mary Frances did review it and stated that the notice is worded correctly as the notice states that “every lot, piece or parcel of land abutting and benefited by the improvement” will be assessed. Andrea said that she had spoken with a market analyst who told her that any lot, piece or parcel of land with city utilities is more desirable, will sell sooner due to utility access and availability, and more often than not sells at a higher price or rate versus a lot, piece or parcel of land without utility access. Therefore, she believes that the vacant lots that were not assessed are benefiting by the improvement and should have been assessed. Jeff responded that the Board has revisited this issue and has determined that the original decision stands. Although Jeff agrees that property values increase with utility access, the vacant land will not have utility access until such time as the land is built upon and at that time an assessment of the same amount that has been charged to existing homeowners will be due from the owner. Mark and Andrea both disagree and state that they will take this to court. They contend that if the additional five lots were assessed, a total of $100,745.70 divided by 80 homes would result in $1,259.32 that could be returned to the homeowners. Jeff reiterates that the board made the decision and has discussed it several times and the decision stands. Jeff also stated that this decision was not taken lightly by the board. Andrea suggested that the $800.00 sewer connection fee be waived in exchange for the five lots not being assessed. Jeff stated that we will be discussing the connection fees further in the agenda. Mark states that the board has previously stated that this project would never go through without grants. Greg stated that the word “never” was not used. The board tried to secure grant money for the project which did not materialize. Mark says that people did not attend the meetings because they did not believe the project would go through without grant money. Andrea also stated that there seems to be confusion in the community regarding when the board meetings are. She was told that meetings are posted at five locations throughout the Township and are at the same night and time each month (unless there is an election scheduled for the second Tuesday of the month.) Also, all meetings are posted on the Town’s website.
Andrea then brought up options for water metering. Jeff let her know that that item is also on tonight’s agenda and will be discussed later. Next she asked when the Town will mandate connection to the sewer system and mentioned specific names of home that are not yet connected. Jeff stated that this item, too, is later on the agenda; however, this is a Township policy discussion and not to be a discussion of specific individuals. Andrea spoke with Bud VanGuilder who stated he was told it was okay to bypass his water meter with his well water. Patti stated that is not true and does not know who would have told him that; that is a violation of our ordinance and totally illegal.
The next item she brought up was that Homecroft School is now using the W. Calvary line and wonders if they have paid for the line as well. Jerome stated that the lines on Rice Lake Road and W. Calvary Road were oversized in order to accommodate the school, but the cost of upsizing the line was not assessed to the residents, it was paid for by the Town. West Calvary residents were only assessed for the cost of a six inch line. Jeff explained that the Town needed to direct the flow from the school and a couple of other homes in that area into the West Calvary line in order to avoid overages that WLSSD was experiencing in the area that the line previously drained to.
The next question was regarding the MSA inspector. Andrea does not believe that the inspectors have spent the time that they have billed for at each residence. Jerome explained that $240.00 of the $800.00 connection fee is MSA’s inspection fee. He stated that they are inspecting approximately 200 connections and have lost money on the inspections. The $240.00 does not nearly pay for the inspector’s time from start to finish. She stated that Watters has said he is appalled at the lack of “inspectorism” on these jobs. Jerome assured Andrea that the inspector has a specific list of items to check at each location, but there is no need for the inspector to be at the location for the entire time that the contractor is working. Jerome went through some of the items that the inspector checks. Eric explained that at first he had to walk the contractors through what needed to be done step by step, but now that they have made so many connections, the contractors know what to do and Eric is there only to make the required inspections. He does not need to be there for the digging and backfilling which takes the majority of the time that the contractor is on site. Jerome said it has been a painful process to get the contractors to do the jobs up to the specifications that were issued by the town. Cammy interjected that three months ago, residents and contractors were at these meetings complaining that the inspectors were too strict.
CORRESPONDENCE: None
SEWER WATER EXPANSION PROJECT 1A: Jerome explained some background information on Lift Station #9 for the benefit of the residents who were in attendance. After explaining the background he stated that WLSSD is set to vote on taking ownership of Lift Station #9 on November 16, 2009. The Town board members have all been given a copy of the joint powers agreement for their review and will adopt it at the November 10th board meeting.
SEWER WATER EXPANSION PROJECT 1B: Wagner will be in to do the punch list warranty work. They have no problems with the list and have full intent to complete it. The items include two manhole repairs, two air release valves that need to be repaired, a gauge that isn’t working properly and tracer wire that is difficult to access for locates. These are relatively minor repairs.
Greg stated that we have approximately 20 E/Ones on hand at this time. That should be enough to get us through this construction season. We will need to order more for next season.
Cindy noted that she has been doing research on billing structures around the country regarding water and sewer fees. It seems to her that the majority of the municipalities she has looked at offer some sort of concession for summer watering. Also, there are just as many ways as those concessions are made. Cindy is recommending that the committee compile this information and have a discussion on this subject. She does believe we need a policy for this issue. Andrea also presented some information she has gathered from surrounding communities. Jeff stated we will explore these different options and make a decision at a later date. Cammy will put all of this information on a spreadsheet for easier comparison. Jeff stated that at this time we will continue putting meters on wells. Andrea asked if the hourly meter on the grinder station may be an option for metering. Jerome responded that the runtime meters were put on for two primary reasons: 1. To mitigate I&I issues as this makes it easier to track leaks or breaks. 2. As a benefit to the homeowner to monitor the system such as a leaky toilet, etc. Patti asked if the runtime meter can monitor the amount of water through the system. Jerome stated that for the most part it is pretty precise. The biggest challenge is getting a handle on water and sewer rates and being able to get accurate readings. The grinder station would have to be read each month by the homeowner and mailed in rather than using the automatic-reader system. Homeowner readings are on the “honor system” and may or may not be accurate. An audit must be done every year so there is cost incurred by the Town for doing that. Also, inevitably, there are homeowners who have not been sending in accurate readings and up with a huge bill once the audit occurs. The Town has made the decision to invest in automatic-readers in order to avoid these issues among others. Jeff asked if the Town had not ordered the hour meter, the sewer rates would have been increased in order to offset meter reading/audit expenses. Jerome answered that that is correct. Also, WLSSD would have taken issue letting us hook into their system during their moratorium had we not required the hour meters. Thirdly, Jeff made the point that the Town purchased the grinder stations at a significantly reduced rate; today if an individual homeowner purchased a single pump the cost would be a minimum of $4,000.00. The Town was able to purchase them for $2,400.00. Some further discussion was had regarding methods of billing residents who utilize sewer service only.
KOLSTAD, AUSTIN, CHICAGO AND MILWAUKEE ROADS WATER REPLACEMENT: Jerome again gave some background information for the residents in attendance. The Town has been continually weighing the cost of the water that is lost with the cost of repairing the leak. At this point, the cost of the water is significantly less than the cost of the repair, a “band-aid,” estimated to be $50,000.00. And from past experience, a repair creates a domino effect that results in a second and third repair. We have applied for grants for the past three years to try to obtain funding for this project and have been unsuccessful so far. If it breaks and becomes an emergency, we may at some point have to proceed. The cost for completely rebuilding the line is estimated to be in the $2,000,000.00 range. Because of this significant cost, much of the cost will need to be paid by the Town as there are relatively few users on that particular line and some of them have previously paid a sewer assessment and cannot legally be assessed again. Greg explained that this cost will come from the Utility fund and for this reason; the Utility fund is allowed to build up a significant balance.
LIFT STATION #3: USA has been out to address the punch list. Eric has the record drawings and O&M manuals to follow up on.
LIFT STATION #1: Remaining item is to get the alarm station working. Jerome expressed his disappointment to Quality Flow Systems, the contractor who installed the pump. The signal cord got wrapped in the pump because it was not properly tied and then shorted out the system. Jerome stated that RJS is responsible for the costs of repairs.
LIFT STATION #7: Jerome will check on it, but believes the problem was with a partially closed valve.
LIFT STATION #4: Larry Shelton has not received the pump back from the machine shop. Jerome told him that this needs to get done soon. He also told him that the 2nd Ave. N. repairs need to be finished.
LIFT STATION #6: Nothing new to discuss.
SANITARY SEWER REPAIR PLANS: Patching will be done on 2nd Ave. N. this fall (as discussed above.) The final finishing will be done in the spring.
STIMULUS PACKAGE: No updates.
I&I: Jerome received a response from Brandon at WLSSD with regard to his question about the Level of Service letter we received on Lift Station #9. Jerome had reminded Brandon that we cannot yet establish a level of service for this LS because people are still connecting to the line and there are continuous changes. It will be approximately two years before we will be able to establish a true level of service. He also asked Brandon to establish a graph showing LS #9 minus the landfill so that we can see what our flows are separately from the landfill. Jerome asked if any action has been taken regarding the Nesgoda property near LS#3. Patti has sent a letter.
MAKE UP OF HOOK-UP FEES: Patti has started researching this but needs more time. Andrea wants to have information regarding what these funds are used for. Cammy mentioned that she is currently gathering this information from other municipalities in the state and so far has seen that the fees Rice Lake charges are generally quite a bit less than others. Cindy quoted the Hermantown fees which are$ 800.00 for water and $800.00 for sewer. This information will be compiled for discussion at a later date.
PHASE 1B CONNECTIONS: The committee needs to make a decision on what the penalty will be for residents who have not yet connected to the sewer system as was required to be completed by September 30, 2009. Andreas asks what the Town expects residents who are not able to afford to hook up to do. Jeff mentions that this is why this is on the agenda. Cammy mentioned that she has sent letters to people who have not hooked up asking them to call her and offering assistance with the process. One, possibly two contacts were made. She is very willing to talk to people and help as much as she can. Jeff asked Cammy how many residences have not been in contact regarding connection. Cammy answered that 18 have not responded and believes that three of the 18 are in foreclosure. The committee members stressed that it is important that residents contact us; every situation is different and each needs to be addressed individually. Cammy will be happy to confidentially meet with residents and help however possible. Mark mentioned that he believes people are too afraid to contact the board. Andrea also stated that a lot of residents are very upset and worried. Cammy stated that she would be happy to send another letter to residents offering assistance, although the first letter sent out also offered assistance. Jeff clarified that no one is able to “waive a magic wand and everyone is going to eligible for funds someplace.” We cannot say that, but we can at least sit down and try to look at different options.
Mark North asked the status of the next roads that are proposed for sewer and water. Jeff responded that there has been a meeting at the request of residents on Willard Road to ask about a possibly sewer and water line being installed. They opted not to proceed at that time although there continues to be discussion amongst the residents.
Having no further business to discuss, the meeting was adjourned.
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