Adopt Resolution 15-08-192 Approving Amended Joint Powers Agreement with City of Anoka for Extending Sewer and Water Utilities to Serve Two Parcels

Purpose:
The purpose of this case it to consider adopting Resolution #15-08-192 (attached) approving the amended Joint Powers Agreement (JPA) between the Cities of Anoka and Ramsey for constructing and maintaining sanitary sewer and water utilities through the Ridgepoint residential development to serve two City of Anoka parcels.

Background:
The City of Anoka wishes to extend the trunk sanitary sewer and watermain utilities proposed to be constructed with the Ridgepoint residential development to serve two parcels in the City of Anoka. The two City of Anoka parcels, commonly known as 6058 Highway 10, a 0.43 acre parcel with PIN #35-32-25-31-0001, and 6050 Highway 10, a 3.85 acre parcel with PIN #35-32-25-31-0004, are shown in attached Figure 1. The City of Anoka determined this will be the most cost-effective method to serve these two parcels with utilities.  See attached Anoka City Council memo dated August 3, 2015 for more details on the available options and their costs.

The City of Ramsey trunk sanitary sewer and watermain stubs that will serve the Ridgepoint development, as well as the two City of Anoka parcels, are located at the existing cul-de-sac on the east end of Rivlyn Avenue.  See attached Figure 1. There is sufficient capacity in both trunk utility lines to serve both the Ridgepoint residential development and the City of Anoka parcels as currently zoned.  Pending additional City Council approvals, these two trunk utilities will be extended in 2015 to serve the proposed Ridgepoint 7-unit residential development.  It is not known at this time how or when the two City of Anoka parcels might be developed.

The original JPA was approved by the Ramsey City Council on January 27, 2015.  The Anoka City Council then approved the JPA on February 2, 2015. The City of Anoka recently amended the JPA to accommodate the developer's request for additional funding, which is discussed in more detail in the attached Anoka City Council memo. The amended JPA is attached to the City of Anoka Council Memo dated August 3, 2015.  Exhibit 1 of the amended JPA shows the proposed utility improvements required to serve the two City of Anoka parcels.

On August 3, 2015, the Anoka City Council adopted a resolution approving the amended JPA.  If the Ramsey City Council approves the amended JPA, all changes will be accepted and the date in the opening paragraph will be revised accordingly.

Observations:
As was discussed in January when reviewing of the original JPA, the City of Anoka wishes to serve the two parcels with utilities to allow for future development. The properties are currently zoned R-6, Manufactured Home, and are guided for High Density Residential in the Comprehensive Plan. It is likely that a zoning change would be needed to allow development to occur on the site since the R-6 district generally only permits parks, churches and manufactured home parks. However, at this time nothing more is known about the future use of the two properties.

Alternatives:
Alternative #1 – Motion to adopt Resolution 15-08-192 approving amended Joint Powers Agreement with the City of Anoka for constructing and maintaining sewer and water utilities to serve two City of Anoka parcels.

Alternative #2 –Motion to deny adoption of Resolution 15-08-192 at this time.

The amended JPA will not result in any costs to the City of Ramsey.  The amendment will increase the City of Anoka’s costs to extend utilities to serve their two parcels. Per the attached JPA amendments, the City of Anoka will still pay all costs required to construct and maintain utilities to serve the two City of Anoka parcels as shown in Exhibit 1 of the amended JPA, but will now require the City of Anoka to contribute additional funds to construct a portion of the trunk utilities.  As noted, the City of Anoka’s contribution to utilities construction is capped at $130,000.  The City of Anoka will also be responsible for paying all costs required to record the amended JPA, to upsize the utilities or provide additional utilities if needed to serve their parcels, and to remove the utilities in perpetuity.