WATER/WASTEWATER TASK FORCE MEETING

MINUTES

September 9, 1999

11:30 a.m. - 1:30 p.m.

Salem Public Library - Anderson Auditorium

1) CALL TO ORDER

The meeting was called to order by Councilor Paul Wulf, Chairperson.

2) INTRODUCTIONS

Introductions were made. Members, staff, and citizens were in attendance as noted below.

6) SEWER LATERAL POLICY ISSUE
Diane Taniguchi-Dennis, Jim Long, and Keith Whisenhunt presented updated information on sewer lateral financing options as provided in the handout material covered in the presentation. Diane presented a summary of previous discussions as well as new material including: homeowner sewer lateral replacement financing options, how the sewer lateral replacement program will work under a joint responsibility scenario, preliminary program cost information.

Under loan options there are two choices: deferred payment loans and amortized payment loans. Both choices included discussion about loan type, loan amount (would only cover the amount required to replace the sewer lateral on the private property portion and disconnect and reroute all the extraneous water connections), fund source (allocation of a portion of CDBG Block Grant for low income within the City of Salem and rates of other), and fees (except there are no fees with the CDBG program provides administration of this funding).

The other option would be a Local Improvement District (LID). The LID would likely go to City Council for Public Hearing, administrative processes for LIDs are higher as compared to individual loan processing as part of adopted CIP process, and homeowners have no choice but to accept the City Contractor on their private property. Frank Mauldin indicated that staff would never recommend LIDs because there is too much opposition and they are very expensive for staff to put together.

The recommended options are:

1) For low income homeowners:
Deferred payment loan Type 1
CDBG Funding $100,000
Limited to City of Salem residents
Owner occupied homes only
No subordination of loans

2) All other eligible homeowners
Option of Deferred or amortized loan type 2
Interest rate (to be defined by City)
Maximum of 10-year accrual/term
Sewer rate funds
Open to all sewer service area homeowners
Owner occupied homes only
No subordination of loans

There was detailed discussion of loan funding. Concerns expressed for allowing amortized loan options for low income homeowners, offering loans to all home owners including rentals, and options for low income homeowners outside of the City. There was a discussion by Gary Whalen that the sewer replacement program should include everybody who is connected to the sewer system including the City of Keizer residents and Marion County residents.

The next discussion topic focused on how the joint responsibility would be integrated into the sewer R/R program and the costs associated with the modified program. Keith Whisenhunt presented a flow chart discussing how the process would work with the sewer R/R program. Discussion included a summary of program costs as well as who is responsible for what, including removal of extraneous water.

The next discussion topic focused on how the joint responsibility would be integrated into the general sewer lateral failures and the costs associated with the modified program. Keith Whisenhunt presented a flow chart discussing how the process would work for the general sewer lateral failures. The problem is identified by property owner or City maintenance staff, investigation is conducted/responsibility is determined, condition assessment is made. Two situations can occur: repair in right-of-way or total replacement. If in the right-of- way, Public Works completes the work and constructs the cleanout at the property line. If total replacement, property owner is informed of their responsibility and the financing options. If the property owner selects City- financed loan, they are referred to CD for loan processing. Property owner selects and hires contractor who performs repairs and the certification test. City witnesses the certification test, verifies contractors findings and repairs; property owner receives certificate of compliance and is reimbursed for improvements in right-of-way.

It is now 1:30 and the Task Force is asked to decide if they want to continue with the presentation or come back to another meeting. It was decided to conclude the meeting and have staff return on September 30 to continue the current discussion on sewer laterals. Next regular meeting will be October 28 for Natural Treatment System information because on the second Thursday, Diane and Paul will be out of town. November 11 will be holiday, so November meeting will be November 18 which is the third Thursday. The information to be covered November 18 will be COSA and financial feasibility. The proposed water and sewer rates will be coming up for review also. There may be a need to move up the COSA and financial feasibility discussion. These dates are subject to change due to conflicting schedules, availability of meeting rooms, etc.

8) OTHER

One application has been received for the Commercial Business vacancy on the Task Force. Ed Davis, the president of First Security Bank, has applied. At one time he was the Executive Director of a sewer district in a California area. This application was passed on to the Mayor last week (the Task Force membership is mayoral appointed). We have a public vacancy with Tom Zepp's resignation and Bob House will retire leaving food processor representation vacant. An application has been received from Steve Travis from Oregon Cherry Growers for that position.

9) ADJOURN

Meeting adjourned at 1:35 p.m.

These minutes are transcribed from notes and the tape recording of the Task Force meeting on September 9, 1999, as an overview of the meeting. They are not verbatim. The tape recorded meeting is available for review in the Office of the Public Works Director. The attachments are to the file copy only. Copies of the attachments were distributed at the meeting and by mail to those unable to attend the meeting. These minutes were approved as written at the Task Force meeting on September 23, 1999.

Linda Nelson, Staff Assistant II
September 27, 1999

Attachments:
Attendance Sheet (file copy only)
Presentation Materials (file copy only)