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HomeMy WebLinkAbout35. 19-320 MAY 28, 2019 19-320 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: DIRECT STAFF TO NEGOTIATE AGREEMENT WITH THE TOWN OF OSHKOSH AND A PROPOSED SANITARY AND WATER SERVICE DISTRICT IN THE AREA CURRENTLY SERVED BY WATER THROUGH THE STATE OF WISCONSIN THROUGH THE WINNEBAGO COUNTY MENTAL HEALTH INSTITUTE INITIATED BY: CITY ADMINISTRATION WHEREAS, The Town of Oshkosh, through its attorney, is asking the City to approve a "comfort resolution' showing support for the establishment of a town sanitary and water district for an area located within the Town of Oshkosh which has historically been associated with and served with water through a private system operated by the Winnebago County Mental Health Institute and the State of Wisconsin; and WHEREAS, the City and Town mutually recognize that the actual extension of new services from the proposed district to the residents in this area will be subject to the execution of a mutually acceptable intergovernmental agreement and that each of the parties is reserving all rights in relation to the negotiation and approval of that agreement. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Oshkosh that the Council on behalf of the City of Oshkosh expresses a willingness to enter into an intergovernmental agreement with the Town of Oshkosh and a Sanitary and Water District to be defined for the purpose of providing sanitary and water services to properties and residents within the area located within the Town of Oshkosh which has historically been associated with and served with water through a private system operated by the Winnebago County Mental Health Institute and the State of Wisconsin. BE IT FURTHER RESOLVED that the appropriate city staff are hereby authorized and directed to take such actions as are reasonably necessary for this purpose including without limitation the employment of experts and consultants in accordance with Chapter 12 of the City's Municipal Code and the negotiation and drafting of an appropriate agreement for council consideration at a future meeting. city of Oshkosh TO: Mayor and Members of the Common Council FROM: Lynn A. Lorenson, City Attorney James Rabe, Director of Public Works DATE: May 24, 2019 RE: Winnebago Mental Health Institute Water Issue The City has been involved in discussions with the Town of Oshkosh and the State of Wisconsin Department of Health Services since 2017 to reach a resolution related to water and sewer service for a number of properties located in the area of the Winnebago Mental Health institute. On the agenda for Tuesday's meeting is a "comfort resolution" requested by the Town of Oshkosh asking the City Council to confirm its support for moving forward with the establishment of a town sanitary and water district in this area and directing staff to negotiate a draft agreement for purposes of the same. BACKGROUND The facility now known as the Winnebago Mental Health Institute (WMHI) dates back to 1873. It was originally served by a water tower on the property and private septic services. During the history of the Institute,possibly around the 1940's,homes were constructed along Butler Avenue to house workers at the Institute. These homes were served through the WMHI utilities. Overtime, these homes were sold to private individuals and are no longer owned by WMHI. The institution was allowed to connect to the City's sanitary system in the mid-1940's and in 1994 the institutional property was annexed to the City of Oshkosh to obtain water service. At the time the Institute was annexed provisions were made for the homes in the town receiving service through the WMHI system to continue to receive water and sewer through the WMHI private system without requiring those properties to annex to the City. WMHI has upgraded the services to their facilities over the years but the private systems beyond the institution itself have continued to age and are in need of significant repair and/or replacement. WMHI in early 2017 notified the property owners of their intention to discontinue service and there were several meetings held to discuss the potential options for the future. The City had suggested three City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236,5000 http://www.ci.oshkosh.wi.us City Oshkosh alternatives for the area: annexation, switch over to private wells and septic, or the creation of a town sanitary district for both sewer and water. The town and the residents have been pursuing the option of creating a Town District to provide both sanitary and water services which will require an agreement with the City. Under this option, the District would be fully responsible for bringing the system up to current standards and all maintenance, repairs, and replacement. As indicated in Attorney St. Peter's letter, the Town has been successful in obtaining state grants to assist with paying for the costs of the project. Master meters would be installed at all connection points to the city system for water and sewer as deemed necessary and the City would have no input or responsibility related to infrastructure maintenance beyond the connection points. The City would bill the District and the District, in turn,would be responsible for billing its customers. ANALYSIS The Town of Oshkosh, through its attorney,is asking the City to approve a"comfort resolution" showing support for the establishment of a town sanitary and water district in this area and directing staff to negotiate a draft agreement for purposes of the same. This resolution would direct staff to move forward with the negotiation and drafting of an agreement in good faith but final approval of the agreement by the Common council would be scheduled for a later date. FISCAL IMPACT Staff will be required to expend time analyzing the proposal from the Town, negotiating and drafting the proposed sanitary and water district agreement. There will likely be some cost associated with obtaining outside counsel or experts to review engineering details related to connections to the City's systems, compliance with PSC regulations and/or specific legal issues. If an agreement is reached, there will be additional staff time and engineering costs to assure that connections to the City system are appropriate and functioning properly as well as minimal financial costs to set up billing services. City Hall,215 Church Avenue P.O.Box 1 130 Oshkosh,WI 54903-1 130 920.236.5000 http://www.ci.oshkosh.wi.us CHI 0 If Oshkosh RECOMMENDATION This is a policy decision for the Council to make. Creation of the district would solve a longstanding issue between the State, City and Town and provide assurance that pipes and connections are upgraded to modern standards better protecting all of the City facilities. In addition, it will provide for a means to collect the city's costs of service through the sanitary district, with the district in turn being responsible for billing individual customers. The district would also be responsible for maintenance of their own facilities. Respectfully Submitted, Approved: Lynn A. Lorenson Mark A. Rohloff City Attorney�-- City Manager a es Rabe Director of Public Works City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 hftp://www.ci.oshkosh.wi.us