Dayton Council seeks further revisions before approving joint powers agreement with Rogers over water, sewer services

A joint powers agreement proposal with Rogers regarding water and sewer access was back in front of Dayton City Council at their May 28 meeting. The proposed agreement was first introduced to the council at the April 9 meeting at which time the council asked for some revisions in the proposal. Council did not approve the revised agreement at the May 28 meeting but provided further direction refining the agreement into something more palatable. They will review the revised proposal at a future meeting.

The proposal asks for a water connection with the city of Rogers to temporarily serve the proposed Clam Building in the Kinghorn Indsutrial Park on Brockton Lane within the city of Rogers. A Memo of Understanding (MOU) between Maple Grove and Rogers, drafted by Rogers, was also reviewed.

Dayton’s water supply, storage and treatment are provided from Maple Grove. The two cities have their own contract for water service from 2006. The cost for water supply, storage and treatment are Maple Grove’s cost.

The joint powers agreement proposed to Dayton City Council on May 28 included the following points:

• The connection will be temporary and is not expected to last for more than five years. Once the property is served with Rogers’ water supply, storage and treatment, the water connection will then serve as an emergency water connection equally benefitting Dayton and Rogers.

• The $21,0000 cost to construct the water connection between Dayton and Rogers will rest solely with Rogers.  If this connection were to be set up solely as an emergency connection under other circumstances, Dayton’s estimated share of this would be 50 percent, or $10,500. In exchange for Rogers footing the bill for the infrastructure, they are asking Dayton to waive its trunk water main fee. The value of that fee would be $14,028.

• Rogers will provide water meter information to Dayton and will pay Dayton charges, including an administrative fee. Dayton will pay Maple Grove in accordance to their 2006 agreement.

Council members Rick Shermer and Scott Salonek both mentioned they would prefer if the city charged the trunk main fee. Shermer implied he felt it was unfair to Dayton residents.

“When you run that pipe down the line every Dayton resident pays an assessment but if you are on the other side of the road we’re going to be neighborly and basically give you the water for free?” Shermer asked. “I believe in being neighborly but we shouldn’t get nothing for it.”

Mayor Tim McNeil offered a different perspective.

“We are getting $10,000 of infrastructure for free — that Rogers is paying for — and we’re getting a backup system once they connect on Rogers’ system,” McNeil said. He also brought up the point that the $14,028 cost is based on a lifetime connection and this connection is only needed temporarily. According to McNeil’s estimates, he said, “What we’re giving up is about $1,400 to $1,700 of trunk assessment fees for a five-year period. We’re coming out to the good $8-$9,000.”

Shermer was also concerned by some of the verbage in the agreement alluding to a possible additional five year connection after the first five years.

Council member Eric Lucero came up with a different dollar figure but was in favor of waiving the trunk charges along with McNeil.

“I don’t want to get into a match over $3,500,” Lucero said. “Relationships are going to matter, especially with Rogers.”

Council directed staff to add the stipulations of no auto-renewal and that the agreement only covers water usage by Clam Corporation. They also asked to see the figures for the administrative fee and to have George Hoff, the city’s attorney, review the agreement and provide his legal comments.

 

Contact Mindy Mateuszczyk at mindy.m@ecm-inc.com

 
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