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9. Staff Report-Drainfield Property Staff Report Date of Meeting: July 30, 2014 To: Wastewater Advisory Committee From: Kristina Handt, Administrator Re: Property for A/E expansion Background: In 2001, the township made an offer of $56,000 to Steve and Carol Schroeder for 4.5 acres of their land that is near the Anderson/Erickson drain field. This amount was based on an appraisal the township had done by Remington Appraisals. The Schroeders however, felt their land was worth more and an agreement on price was never reached. The Schroeders’ son Jordan approached the City last month see if the City was still interested in purchasing the property. Most of the 4.5 acres would be subdivided from the 23.4 acre parcel. They are working with another buyer on the larger parcel but would be willing to consider an offer from the City on the land adjacent to the drain field. The 4.5 acres also includes a lot that goes to the lake and one that abuts the two other parcels. A drawing on the exiting certificate of survey is included in your packet. Currently the land is assessed at $237,400 for 23.4 acres or $10,145/acre. Issue: Should the Wastewater Advisory Committee recommend pursing the purchase of 4.5 acres for drain field expansion? Proposal Details: The Wastewater Advisory Committee has been discussing and planning for the future needs of the Anderson/Erickson system and included drain field expansion, if land was available, for 2022 or later. As the Public Works Director mentioned a few months ago, Pete Ganzel said it would be possible to replace the existing system in place but not to expand it. So the main question for the committee is whether or not the system should expand in the future. There is the potential for 15 additional connections, though whether or not they could support their own onsite system has not been determined. As we discussed last year when reviewing the Continenza request, the system is at or near capacity. Furthermore, the committee should consider the potential increased demand on the system as seasonal properties become larger, year round users. Fiscal Impact: The 201 fund is expected to have a fund balance of about $70,000 by 12/31/14. Some of the fund balance could be used to purchase the land without needing to borrow or increase rates.