Lindstrom Mayor Carlson and Chisago Lake Township Chair Froberg called the meeting to order at 7:00 p.m.

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1 MINUTES CITY OF LINDSTROM SPECIAL JOINT CITY COUNCIL/CHISAGO LAKES TOWNSHIP MEETING TUESDAY, JUNE 23rd, :00 P.M. CITY COUNCIL CHAMBERS Sylvan Ave., Lindstrom, MN CALL TO ORDER/PLEDGE: Lindstrom Mayor Carlson and Chisago Lake Township Chair Froberg called the meeting to order at 7:00 p.m. CALL OF ROLL: Those Present: Lindstrom Mayor Carlson, Council members Wishy, Singer, Lindgren, and Flug Chisago Lake Township Chair Froberg, Clerk Trippler Others Present: Lindstrom Engineer Stewart, Lindstrom Administrator Olinger, Lindstrom Finance Director Mattson, Lindstrom Administrative Assistant Barnes, Chisago County Sanitarian Strobel The Chisago Lake Township Board and Lindstrom City Council and Staff were introduced to the Public. BUSINESS ITEMS: 1. Orderly Annexation Petition Lakelawn Dr., (Leverton) PID # s , , , Lots 3-6 Lakelawn Beach The Levertons were in attendance, and stated they wished to become a part of the City of Lindstrom in order to receive City Sewer and Water services. Motion by Wishy, second by Lindgren, to approve the Orderly Annexation for Lakelawn Dr. Motion carried Sewer Improvements to Lakelawn Drive (pgs. 8-22) City Engineer Stewart stated he was asked to do the Feasibility Study and Report for the City regarding Glader Blvd. and Lakelawn Dr. areas. They had obtained a Cost Estimate for Glader area, and the Contractor s costs were down 1

2 by 50% since last year. This is reflected in tonight s figures also. It is a good opportunity for everyone affected by this Project. According to Chisago County, there are currently (7) Failing Systems, (5) Holding Tanks, and (9) New Systems, which total (21) Units. All of the properties are located in Chisago Lake Township. The best way to handle this Project payment method would be to annex all of the benefiting properties into the City, and assess the costs back to the property owners via Taxes. Engineer Stewart proceeded with a Power Point presentation. He stated with this Sewer System, the City will provide the Sewer connection to Lakelawn Dr. on the north side (Lake side) only. It will be a Low-Pressure System to the edge of the ROW. Each property owner will be responsible for the Grinder Pump, Pipes, Tanks, and Plumbing, and the costs thereof. They will be using Directional Boring under the Street with a (3 ) pipe on the north, which then tapers to a (1 ½ ) on the south. They need adequate velocity to move the effluents to the City Lines. The Estimated Costs for Sewer were based on $25 per foot for 1700 lineal feet. This totals $86,000 plus the addition of Overhead in the amount of $32,700 equals $118,700. The Cost per Unit is estimated to be $5,650, plus the costs of the Hook-Ups of $4,800 which totals $10,450 plus the cost of the Lines and Plumbing, etc. to the ROW. Engineer Stewart recommended the Homeowners contact the same Plumber(s) to get the estimates and maybe a lower price as a group. The Water lines will service (500gpm) for the Hydrants, along with the normal water needs. It will go to the turn-around at the end of the Street. The Service Line will be brought to the edge of the ROW, with the Homeowners bearing the responsibility of running the service and needed connections to the house. The Water Main will be a 12 pipe. The Fire Flow will be 8. They will use Directional Boring. Again, Homeowners may want to contact a Contractor as a group for discounted costs. The Project Costs for 1700 feet is $120,000, plus overhead costs of $45,250 total $164,358. If you divide this total by the (21) Units, it comes to $7,827 plus the Hook-Up Fees of $4,280 equals $12,107 total per Unit for Water. The Assessment Process was reviewed including the need for all Units or properties to be annexed. All are located in the Township, and the City cannot assess properties outside the City limits. The City cannot pay for the System and installation. An informational meeting is held. The Engineer gives a Report. A Public Hearing is held. Plans & Bids are obtained. There is an Assessment Hearing held. The Construction Schedule is coordinated. The 2

3 Begin Date is scheduled for the Project. This Project should begin sometime this fall. Assessments are the method that the City uses to allow Residents to pay for a Project over several years, and is added to the property owners taxes. The payment term can be spread out, usually years. The City will Bond for the Project. The costs will then be divided equally between the benefiting properties. The Hook-ups can be paid in a lump sum payment, or other terms can be arranged for if the City agrees. The Assessment process is governed by State Statute 429, and must be followed accordingly. The Assessments (for purposes of presentation) will begin in June of The Payments are based on 15 years, with a 6% Interest Rate, with a payment would amount of $581.75, based on the Estimated Cost of $5,650, divided by 21Units for the Project. The WAC Fee is $4,280, and the SAC Fee would be $4,800. The costs for laying the Service Lines, etc. may be around $10,000 depending on what the Homeowner s needs are, and what the Contractor s costs are. It is possible to finish Construction of the Project this fall, with the final finishing and restoration in the spring. Joan Bethke asked Engineer Stewart for an estimated guess on how much a Grinder Pump would be. Engineer Stewart stated anywhere from $400 to $4,000 depending on the type of pump you buy, and where you buy it from. Typically, the more expensive/quality pumps last longer. The City will give standard specifications, names of companies that sell pumps, etc. The neighborhood may want to get together and purchase in volume as to possibly get a lower price on the pumps. Joan Bethke questioned if the costs run the Pipes at $25 per foot, and the lot size footages are different, why are all of the neighbors paying the same cost? Engineer Stewart responded in this case, the total cost was divided between those who will benefit from the Project; it is the Contractor whose Bid is $25 per foot. Everyone will be treated equally in this. Ms. Bethke stated the benefits would not be the same for her with her Cabin, as they would be for a year round homeowner. Chisago County Sanitarian Kellie Strobel reminded Residents if they annex into the City, it will allow them to upgrade, expand in size, remodel, have more useable yard area, or go from Cabins into year-round homes, etc. Many of these Residents cannot currently do this. Engineer John Stewart stated the re-sale value will go up, and it will become easier to get a loan or sell their properties. Michel Robbe stated she would like to get the # s, etc. so that they can go together and get a discount on the Pumps, etc. She added it had been mentioned in a previous meeting, that the costs could be added to the Assessments as it would be easier to pay these costs gradually. It was also mentioned it was 3

4 possible for persons to pay when they hooked-up, and had there been any more conversation regarding this? Mayor Carlson stated for those who have working systems, if the City could collect a portion of the $4,800 SAC plus the $1,600 Fees up front, and delay the Balance until they hook-up, it would be ok with him. He proposed collecting 1/3 of the costs up front, and deferring the balance of 2/3 until hooked-up. He added it will be up to the Council as a whole to decide. Engineer Stewart stated if the pipes go into the ground, you would end up paying for the pipelines, but the balance could be deferred until a deadline, usually (5) years down the road. It would be like a grace period. Administrator Olinger stated the WAC (Water Access Charge) Fee is $4,280, and the SAC (Sewer Access Charge) Fee is $4,880. These are the Fees that could be deferred until the time a person hooks up to the System. The Assessment amount is $7,827. Engineer Stewart added the City has to Bond for the costs of this project. The payments for each Unit s share would begin in Stewart added the City will try to make this as affordable as they can. They want to be able to help persons and keep our area Lakes clean. Rod Cunningham questioned if anyone had talked to the Golf Course regarding phosphorous use. Administrator Olinger stated he had. This will be discussed later on in the meeting. Tom Banttari questioned if both Sewer and Water will be installed. Mayor Carlson stated persons have functioning water right now. We could look at both, just sewer, etc.whatever is right for the residents and is what they want. Engineer Stewart stated if everyone votes for Water Services, this is as good of deal as one will ever see for installation of the Water. The costs are lower this year. Most projects are under Bid from last year by 30%. The equipment would be the same for Sewer installation as it is for Water installation. If you wait and put the Water in later, it could cost you another 15% in costs than if you do both at the same time. Ron Westland questioned if this will include new Roadway and Curb? Engineer Stewart stated no, they will be boring under the roads, and there will only likely be surface patches. Craig Roberts questioned if the School Buses will still be able to pass through. Engineer Stewart stated he did not believe it would be a problem; there will be occasional closing of the road, but it will be picked up and opened each night. Christie Felix questioned if the Water came through, and no one connected up at this time, would we have to in (5) years? She added she just had a new well drilled. Mayor Carlson stated it would be up to the Council to decide. Most likely they would collect a portion up front. They would have to pay for the Access Fees, and balance upon Hook-up. Ms. Lix questioned if she could keep the Private Well once she connected on. Engineer Stewart explained they would have to make sure it was non-contaminated, and make sure it does not cross connect or enter the City s water system. 4

5 Michele Robbe questioned previous discussion regarding having the costs split between the Residents. If they pay for the Hook-up, or a portion of the costs, will the costs be re-figured and then re-distributed? Engineer Stewart stated the Statutes do not provide for the situation if the costs are lowered. Unfortunately, the City cannot refund the difference. Ron Westland questioned if the Lake was contaminated. Administrator Olinger stated it is listed on the Impaired Waters list. Westland questioned what is going to happen with the other side of Kroon Lake that is not coming into the City? Administrator Olinger stated that is a very good question we do not know when or how they will become sewered. Joan Bethke questioned if these figures on the Project were frozen, or could they go up between now and then? Mayor Carlson stated once the Bids are accepted, they will not change. It is part of the process, and we need to keep on track. Administrator Olinger stated if we don t approve the Project, and we don t move ahead, the numbers can change according to the economy. Jeff Chartrand questioned the existing wells already within the City. If there is an Ordinance, there would be no question regarding the use of Private Wells. Mayor Carlson stated they cannot have any private water supplies entering into the City s water in case of contamination. Chartrand questioned that part of the Utility billing, which is for Sewering Fees. If a person keeps their private well in use, they would have to have a meter. Mayor Carlson stated the Sewer would have to be metered also. You don t want to pay for the water that does not run through your Sewer system. The City will provide the initial meter. Administrator Olinger stated he spoke with Mr. Spetzman regarding the Golf Course and their fertilization program. All persons at the Golf Course have been trained by the University of Minnesota, and all are certified Applicators. They use no phosphorous whatsoever on the Golf Course. Mr. Spetzman stated in our area, you would not need phosphorous. Mr. Spetzman also speculated that the phosphorous is coming from nonfunctioning Septic systems, from farms (which are not regulated as to what types of fertilizers are used), from manure and animal feces, etc. He felt the bottom of Kroon Lake is filled with phosphorous due to a previous Pig Farm operation located on the Lake. It has been sitting there, and if stirred up by Carp, etc., it will be stirred into solution in the waters. Another contributor is the growth of Curly Leaf. This plant grows early in the season, and begins to die just when other plants or weeds are beginning to grow. There is a huge boost of phosphorous for the other weeds at this time. Administrator Olinger stated it will help to lessen the problem, or cut off one of the sources if we take care of the non-functioning Sewer systems. There are 5

6 properties and undeveloped land on the other side of the Lake. It would be very expensive to run lines to that area right now. This area is designated to be annexed sometime in the future. It looks on a map as if the City is really moving out into areas that appear to be a distance from the City. What they were really trying to do is get to the Lakes, for Sewering purposes. The intent is to sewer the other side of the Lake one day it just takes a lot of time and money. We are only taking on those projects that we know we can at this time. There is already infrastructure in the Lakelawn Dr. area and it is workable to add to it. Ron Westland questioned how many homes are on the other side of the Lake. Olinger stated approximately (30). The Septic Systems are much like those in this area. They are small lots, and there is one Septic that may be nothing more than a pipe. Chisago County Sanitarian Strobel stated if anyone knows of a non-functioning system, they can report it anonymously to the County. The County will check it out. Even waters being discharged onto the ground from Cabin/Seasonal/Weekend use should be checked on. Michele Robbe stated she had talked to Mr. Spetzman. The effects from the farms cannot be measured, and the residual effects from the Pig Farm will be hard to scale, so how much of an improvement will we see if we all go through this sewering process. Is there any way to measure or what can one expect to see if we go through this? Engineer Stewart stated we need to be very clear on what Clean up the Lakes means. If you have one bad septic system, it doesn t matter if the contamination is 1% or 50%, you could still have a situation where the Lake is not suitable for humans to be in. What we are talking about is phosphorous that controls the algae. The reason this started, was not due to phosphorous, but rather the Public Health Concerns. The Public Health benefits here far exceed the Water Quality of the Lake water. Kellie Strobel stated there are studies performed which determine how bad the Lake water is, and whether the cause is phosphorous or ecoli, or numerous other things in the water that can be a health risk. The studies are being performed now, as 20 years ago this technology was not available. We are now finding out that it is many different sources working together which pollute. Every little bit of clean up helps, and over time we will know how much. We cannot predict the success - only try to fix or address the problems. Administrator Olinger agreed regarding the Public Health issues of swimming, fishing, etc., and reminded no one has a right to contribute to a health issue that affects everyone else. Holly Zaun questioned the Curly Leaf, and if there was anything they could do to control this. Kelli Strobel stated they are doing an experimental Project on Rush Lake. It involves Iron Filings that are being put into the Lake. This is the first year, and they have found that it is working. Everyone must become 6

7 involved who owns shoreline; as if a few persons do it the plants will only regrow on another person s lot area. Finance Director Mattson briefly reviewed the figures for the Assessments. The figures are based on 21 Units at $5,650 per Unit. The interest rate is based on 6%, with a 15 year term. The payments will begin in 2010, and the amount would be $ This will be certified to the Taxes twice per year in May and October. This will cause an increase in your house payment if you are using an Escrow Account for Taxes. Payment figures based on the same information but using a (20) year term, would decrease the payment to $ The overall interest would be higher. Mattson added if you roll the SAC Fees, etc. into the Assessments, the payment would go up to $1,084 per year. It is possible to pay a part or all of the fees upfront, and any monies paid would reduce the balance assessed to the Property Taxes. She added the City will try to work with everyone to come up with a plan that works. She invited persons to call her as she can come up with different schedules and figures. Connie Wessel questioned if persons could get Water services, but not Sewer. Mattson stated yes, but it is up to the Council and she doubted they would do that. Michel Robbe questioned how much more the Water charges/assessments would be. Engineer Stewart stated in the Glader area, they were approximately 150% due to the spread out locations of the properties. Finance Director Mattson added this schedule is for the Sewer only; Water would have to be added on to these figures. Finance Director Mattson stated if the figure was an $8,000 Assessment, 6%, and (15) year term, the payment would be $824 per year for Water. Holly Zaun questioned if her cost was $15,000, and she paid $10,000, would the City carry the $5,000? Mattson stated yes. Engineer Stewart stated you can pay towards the Assessment prior to it being certified to the County. It will have to be determined no later than November, prior to sending it to the County. Whatever payment is made will lower the Assessment amount and payment. Once it is certified you can pay towards the balance, but you will only save the interest charges. Mayor Carlson stated it will be up to the Council to decide on how much they will require in payment up front. If we decided to collect 1/3 of the $4,800 SAC (Sewer Access Charge) it would amount to $1,600. This would bring the Assessment to $7,250. Those who do not hook-up, they will pay at a later time. This is an example of how it could work. Administrator Olinger stated it would be a good time for persons to communicate tonight what they want. Chris Felix questioned how they will determine whether to include Water Service with the Sewer Service. 7

8 Holly Zaun questioned how many of the 21 persons that were in attendance, and could they ask for a show of hands of those in favor and those against? When polled, there were (11) of the persons at the meeting. Of those, (6) were in favor of having Water; (5) were against it. Of those present, there were (8) in favor of having the Sewer, (3) were against it. There were (3) persons who did not want either Sewer or Water Service when polled. Holly Zaun stated the point is it will cost, and it will be inconvenient for everyone. The bottom line is the Lake is in trouble. Do we want terrible water or not? Our homes are an investment, and we can t even sell them because of the Septic Systems and Lake Water quality. We need to take care of what we have. Mayor Carlson stated the City will do what we can, but we can only take one area or step at a time. Council member Flug stated nothing will get better by itself. Unless we do something - it will only get worse. If persons are on a Holding Tank, their homes are unmarketable or saleable. There are more areas that need to be sewered, but we do not have the time or money. For those involved in this area and Project, due to the economy this could be the best opportunity to do the Project. Connie Westland questioned if everyone had to be in agreement in order to do this. Mayor Carlson stated he did not believe everyone would agree. In order to do this Project, the City Council would have to see that it is financially feasible, and necessary to do the entire area. In order for it to be feasible, all of the Units would have to be included. All properties would have to be annexed into the City in order to be able to stretch the payments out through Taxes for the Residents. We will not be able to base the decision on whether or not 100% of the people want Sewer or Water. He felt the Council would be in favor, but it will not be determined until the Council meets to make that decision. Ms. Zaun stated the frightening thought for her would be that if the rest of the people say no, she felt that she is being held hostage by them. She cannot put in Central Air Conditioning, an upgraded Shower, or any other improvements to her property without having City Sewer. The Lake is polluted, and they cannot swim in it. She added she would be very angry if everyone voted it down. She is willing to step up to the plate and do what needs to be done. Joan Bethke questioned if only half of those involved are here, and there has been poor representation, will their opinions be questioned also? Mayor Carlson stated he could not speculate on what they would want. There is a third meeting scheduled to discuss the Lakelawn and Glader areas. The Council will decide at that time whether to move ahead or not. Administrator Olinger stated he will be sending out a letter this week asking that anyone who has not requested to annex into the City do so voluntarily. We do not want to get into Contested Annexation. It has never been done by the City 8

9 in the past. It is very costly, it is time consuming, and it just creates hard feelings overall. The Council would like agreement from these Residents. But as a Council, they have the authority to decide whether or not to pursue the process. This will be the major discussion at the next meeting. The input from these meetings has helped a lot. Mayor Carlson stated part of the reason we would proceed is if we do the Glader and Lakelawn areas together, we will have a greater cost savings and it would be more favorable. Tom Banttari questioned if all have to be annexed into the City, could someone review the process of Annexation. Can they come in using the hop scotching of properties? Chisago Lake Township Chair Froberg stated at one time there were properties that were given (5) years, but still did not want to come in at all. It is a possibility. Mayor Carlson stated there have been properties surrounded by the City, they wanted to sub-divide their property, but keep it outside the City limits. We have tried to come to an agreement, and give them a timetable. You cannot give a timetable when you cannot assess the property. We cannot do an improvement that we cannot collect for. If we tried to time everything perfectly when persons want to do it, we could never get anything done. If the City is committed in responding to those who have requested City Sewer around the Lakes, the City may have to fight through it giving consideration to the capability of being able to do so. Chisago Lake Township Chair Froberg stated there are persons who have a functioning Septic, and a working Well. It is a little hard to have to come up with more money if they have already paid for upgraded systems. Mayor Carlson stated he understood, but he paid towards a way to control the water in the Lakes to stop flooding even though his home was far above the flooding stage and probably never will flood; we have to pay for the Schools even if we don t have children; we sometimes pay for things that do not directly benefit us. Tom Curtis questioned if all (21) persons would be noticed of the upcoming meeting. Administrator Olinger stated everyone was noticed for this meeting and will be of the next. Gary Yedout stated this may be misleading to some persons. These figures are based on the Sewer only. If they add Water it could go up by 150% or $2500 year on your taxes. One would still have to pay the $11,000 in WAC & SAC Fees, you still have to pay for the Grinder Pump, you have to pay for the Hookup, etc. Administrator Olinger stated the City had estimated the taxes to increase by $1400 per year ($824 for the Water, and $580 for the Sewer). The WAC & SAC have to be paid whenever one hooks onto the system, or you can pay it upfront, and yes you would have to pay for the Grinder Pump. Engineer Stewart reminded the 150% mentioned was based on the recent Glader figures vs. Lakelawn. Administrator Olinger reminded this project is a little less costly as it is an easier service to put in. 9

10 Michele Robbe commented she understands that the timing and costs are a very good price right now with the economy, but her personal situation is not doing well during the economy such as she does not receive raises, bonuses, her hours have been cut, etc. Now with this Project, her taxes will double, and it means $10-$15,000 more to come up with. Her decision would be based on her financial abilities. She agreed this would be great for the area Lakes, but it may not be feasible for her personally. Robbe questioned who could tell her that if these (21) persons did this, how much would it really help the problem? No one can answer this. Is it Ecoli or Phosphorous? Is it safe to swim in or not? No one can produce the answers for her. She added she would like to hear You persons are going to be a part of the City now, we will take care of the Curly Leaf, or provide testing, etc that is what we pay Taxes for. Other Cities do this for their Residents. She had not heard that the City is going to work with the Farm up the road, now have they shown alternatives or options to do so. People are putting raw sewage into the Lakes, and the City is not doing anything? How many times more are there other issues polluting the Lake than just these (21) residents? Mayor Carlson stated the City is only one unit of Government. There is also the State, County, Townships, etc. The City does not always have the responsibility or jurisdiction to do some of these things. We can handle our part, but they must do their part also. Just because you become a part of the City, doesn t mean the City is responsible for the entire area needs. There is some coordination between the Governments. Kellie Strobel stated Chisago County is working on Water Quality, research, answers and options to fix the problems, etc. Kroon Lake will be put on the Impaired List as of 2010 because the research has not been completed yet. It will be done once it gets on the Impaired List. There are other Lakes where experimental efforts are being done. There are studies being shared between the different Counties. There are some options whether the causes are phosphorous, chemicals, etc.; it just takes time to plan how to attack the problems. Council member Wishy commented everyone may never be in agreement as to when they want to start working on clean-up efforts. The question is, when do we want to make the first step toward beginning the clean-up? This is the first step for us. Some areas have been sewered over the past few years, and it has shown improvement in the Lakes. Mayor Carlson stated the next Special City Council meeting will be held on June 30 th, and 7:00 p.m. regarding Annexation and Sewering of Glader Blvd. and Lakelawn Dr. areas. It is an open meeting. Council member Lindgren stated he would support a Plan that required 1/3 payment down, with Assessments, and possibly defer the Fees, as long as they hook-up within a (5) year term. Council member Wishy agreed and added he would like to see the Sewer connected first, but felt they may wait until they have to hook up to the Water with no time limit. The Sewer Hook-ups are the top priority. 10

11 Holly Zaun questioned who would monitor those who have not hooked up within the (5) years? Kellie Strobel stated they would have to hook-up upon sale, or if they are found to be failing. A failing system can be reported by anyone anonymously. ADJOURNMENT: There being no further discussion, motion by Flug, second by Wishy, to adjourn the meeting. Motion carried unanimously. The meeting adjourned at 8:53 p.m. Respectfully, Barb Barnes Administrative Assistant 11