Special City Council Meeting
City Hall, Cherokee, Iowa
July 21, 2009 – 5:00 P.M.
A special meeting was called to order on this date by
Mayor Pierce. Present: Council Member Peck, Leach, Mallory,
Burkhart, Stieneke, Administrator Eikmeier, Deputy Clerk-Treasurer Cargin. No
one was present from the news media.
Administrator Eikmeier informed those present that this
meeting was called to consider extending city water and sewer
lines to a private road in the South Highland Addition. In 2003 the city
council approved the construction of an unimproved
roadway in this addition, with the residential lots to be served by Cherokee
Rural Water and private septic systems, rather
than city utilities. Eikmeier feels that this decision in 2003 was a bad
precedent to set when city water and sewer were in
close enough proximity to run connections to the housing addition. The city
does not want to allow any future developments
within city limits to refrain from connecting to city utilities. In the past,
if water and sewer service was not directly abutting
new development areas, the city brought it to the property boundary, usually
utilizing TIF as an economic tool to recover the
costs. In the case of a new business development, the new business is generally
built in a year or two. That is not the case
with a residential development, where the lots may not be built upon for five to
ten years.
The cost of extending the water line to the property
($16,000) can be covered by the city’s water fund, however there are
not adequate funds in the sewer fund to cover the $34,000 expense of running the
sewer line to the housing addition. It is
Eikmeier’s recommendation to extend the water and sewer lines to the private
road, with the city to pay the cost of the
extension of both servies, but the city will charge a surcharge of $5,000 -
$6,000 per lot sold. There are currently four
available lots in the South Highland Addition, with the potential of an
additional three to be platted. With this surcharge
to be collected at the time each lot is developed, the city will recover the
cost of the sewer line extension. Eikmeier feels
that since the installation of a septic system costs in excess of $8,000, and
the lower cost of city water compared to rural water,
buyers will find the added surcharge to be a good deal.
Councilmember Mallory asked when the surcharge would be
collected. Eikmeier replied that the surcharge will be collected
at the time a building permit is issued for each lot. Councilmember Burkhart
feels that having city utilities available will make
the lots more attractive to buyers, and that the buyers will come out ahead due
to the high cost of installing and maintaining a
septic system and the lower rates charged for city water as compared to rural
water.
Ann Peck, 300 Pilot Ave., asked if the city was going
require the road in the South Highland Addition to be paved, and if the
city was going to pay for it. Eikmeier replied that there will be no action
taken on the improvement of the road at this time,
that if and when there is additional platting in the addition, the road will be
discussed. Peck expressed concern that the city is spending a lot of money on
the utility extensions and when will we get it back? Gary Doherty stated that
he could continue
with rural water and septic systems serving the addition, but the city would
gain no revenue from this. Peck asked why Gary
had not come to the council requesting water and sewer extensions back in 2003,
when he built his new home. Gary replied
that he had, but the city did not have the money in the water and sewer accounts
at that time to fund the project.
Mayor Pierce commented that the city is fortunate to have
expansion currently underway at both the Tyson plant and HyVee
Warehouse, and that we want to encourage employees to live in Cherokee. We need
to have the housing available for them
so they don’t go elsewhere. She feels that providing city utility services is
our responsibility as a community, and that we need
to look to the future. Councilperson Peck feels that due to government
incentives offered, now is a good time to buy or build
a new home.
Councilmember Mallory stated the council should not have
allowed septic systems in the South Highland Addition back in 2003,
now is a good opportunity to correct this mistake. He feels the city is in a
good position to see some growth with the
Tyson/HyVee expansions.
Councilmember Stieneke also feels that a mistake was made
in 2003 by allowing the lots to be served with rural water and private
septic systems. He expressed support for the extension of the city water/sewer
to the South Highland Addition.
Councilperson Burkhart made a motion, seconded by Leach,
to extend city water and sewer lines to the private road located
in the South Highland Addition, and to have the City Attorney draft an agreement
between Gary Doherty and the city,
stipulating a surcharge of $5,000 be implemented to be collected at the time a
building permit is issued for any of the lots.
AYES: Burkhart, Leach, Peck, Stieneke, Mallory. NAYES: None
Eikmeier reported to the council that the wastewater
department has saved the city in excess of $30,000 by coming up with a
way to remove the sludge from the industrial wastewater aeration tank. Eikmeier
expressed his appreciation to the employees
at the wastewater plant for their ingenuity and hard work.
On a motion by Leach, seconded by Peck, the meeting adjourned at 5:40 p.m.
________________________________
Pam Pierce – Mayor
ATTEST:
________________________________
Diane Cargin, CMC
Deputy City Clerk-Treasurer