With a Utility Latecomer’s Agreement leading the way as the Bonney Lake City Council’s favored method to get sewer pipes into the ground in Eastown, the primary question has turned to what exactly constitutes the “substantial” partnership with landowners required by state law.
One councilmember this past week attempted to find an answer, arriving at about 30 percent of the cost. The number was much higher than some landowners expected after figures of 5 and 10 percent dominated earlier discussions.
In his analysis of the situation, Councilmember Mark Hamilton began by seeing what savings he could find in the city’s current 5-year Capital Improvements Plan to shift toward Eastown, as well as what the city could pay in debt service.
The cost of installing sewers in Eastown is approximately $3.5 million and because of the requirement that any new development hook into city sewers, many developers are holding their powder when it comes to buying land in that section of the city.
Hamilton said he found $2.5 million in projects that could be delayed, leaving about $1 million in costs to be left to the landowners.
“My ultimate goal was, essentially, try to finance the Eastown sewers without the city having to put on a surcharge (on sewer bills),” he said. “That’s what I came out with.”
Hamilton said he tried not to eliminate any of the capital improvement projects, instead cutting where he could. For example, he said he cut $600,000 from the total by dropping Bonney Lake’s share of a flood wall that needs to be built at the Sumner Wastewater Treatment Facility. Hamilton said he felt the wall should be part of the Pierce County Flood Control Zone District projects.
Other projects, such as the city’s septic system reduction program saw cuts.
“I have to look at the total program list and see what I can give up or reduce because all of the projects are important,” he said.
Hamilton also said the city has already invested more than $1.3 million toward sewer infrastructure in the area, which has a total estimated land value of more than $27 million.
In order to form a ULA, state law requires a “substantial partner” work with a municipality, which Hamilton said is supposed to help “fill the gap” for landowners or developers. An ordinance expected to pass Tuesday and discussed April 19 will set a maximum for city investment at 95 percent of the cost.
But Hamilton said he felt uncomfortable with the city spending so much money on a project that will primarily benefit a handful of landowners.
“It’s a small percentage of the value of the property,” he said. “I think 30 percent is a very fair amount to enhance an asset.”
The question that arose during the study session, however, was whether or not such an arrangement would be agreed to by the property owners.
“That’s the million dollar question,” said Deputy Mayor Dan Swatman.
According to Roger Watt of Emerald Links, who functions as an unofficial spokesman for a group of several landowners, the size of their contribution in Hamilton’s analysis came as something of a shock.
“It headed in a direction that was not expected,” he said.
Watt declined to comment further and said the landowners would present their concerns before the council at the April 26 meeting.
