Resolution 14-010 Feasibility of Constructing a “Loop” Water and Sewer Connection That Extends Up West Hill Road, Across Skyline Drive, and Down East Hill Road

CITY OF HOMER

HOMER, ALASKA

                                                                                                                                    Burgess

RESOLUTION 14-010

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, DIRECTING THE CITY MANAGER TO PRODUCE A REPORT ON THE ESTIMATED COSTS, FINANCING OPTIONS, POLICY CONSIDERATIONS, AND FEASIBILITY OF CONSTRUCTING A “LOOP” WATER AND SEWER CONNECTION THAT EXTENDS UP WEST HILL ROAD, ACROSS SKYLINE DRIVE, AND DOWN EAST HILL ROAD; TO BE PRESENTED AND DISCUSSED AT A FUTURE WORKSESSION SCHEDULED BY THE CITY COUNCIL.

                WHEREAS, The City of Homer maintains and operates state of the art water and sewer treatment plants and an extensive distribution and collection system; all of which is very expensive; and

                WHEREAS, The Water and Sewer Special Revenue Fund is operated like an Enterprise Fund in the sense that the costs of maintaining and operating the system is supported entirely by user fees; and

                WHEREAS, Less than one half of all structures within the Homer City limits are connected to the piped water and sewer system resulting in public safety and environmental concerns; and

                WHEREAS, Many Homer residents would like to be served by the water and sewer utility for a variety of reasons, including, but not limited to, failed septic systems, tainted wells, erosion issues, reduced property values, and the inability to get financing; and

                WHEREAS, Even though the City of Homer will subsidize 25 percent of the cost and offer attractive financing under the Water and Sewer Special Assessment District program, it remains prohibitively expensive to extend water and sewer into some of the rural residential neighborhoods; and

                WHEREAS, Fixed costs that continue to rise combined with a stagnate customer base that is not growing is a business model that is destined to fail; and

                WHEREAS, The City Council has discussed the need to promote “in-filling”, expand the system, and find other ways to increase the customer base; and

                WHEREAS, It is important for the Council to address this issue and thoroughly explore all options available to it to expand the system and the utility customer base; and

                WHEREAS, One option for expanding service which deserves discussion is to construct water and sewer main lines in a loop which goes up West Hill Road, extends across Skyline Drive, and returns to downtown via East Hill Road; an idea that might make neighborhood Special Assessment Districts more attractive and stimulate development.

                NOW, THEREFORE, BE IT RESOLVED that the City Manager is directed to produce a report on the estimated costs, financing options, policy considerations, and feasibility of constructing a “loop” water and sewer connection that extends up West Hill Road, across Skyline Drive, and down East Hill Road.

                BE IT FURTHER RESOLVED that the report shall be presented and discussed at a future worksession to be scheduled by the City Council.

                PASSED AND ADOPTED by the City Council of Homer, Alaska, this 13th day of January, 2014.

                                                                                                                CITY OF HOMER

                                                                                                                _____________________

                                                                                                                MARY E. WYTHE, MAYOR

ATTEST:

___________________________

JO JOHNSON, MMC, CITY CLERK
 

Fiscal Note: Staff time, estimated to be 6 to 8 hours.