11/25/2009 6:02:00 AM 3 improvement districts would bring sewer, water to most of Highway 89
By Jerry Herrmann Special to Review
The Chino Valley Town Council has unanimously approved a contract with Pooled Resources, for a maximum $354,334, to help establish three sewer and water improvement districts for areas along Highway 89 between Road 3 North and Road 5 South.
However, the vote did not come before a thorough council discussion.
Town Engineer Ron Grittman said the money for this agreement is coming from the Greater Arizona Development Authority loan savings from the town's Center Street Sewer Project.
Mayor Jim Bunker asked if financing for the three districts would come from bonds. Grittman said the Water Infrastructure and Finance Authority of Arizona may finance them.
Improvement District 1, a water and sewer district, would extend from Road 2 North to Road 3 North along the west side of Highway 89.
Grittman said Improvement District No. 2 runs between Road 1 South and the alignment of Road 5 South along the east side of Highway 89. In this district, he said the sewer line will go down Road 1 East and serve the area between it and Highway 89.
Improvement District No. 3 runs between Road 1 South and Road 4 South along the west side of Highway 89, he said.
The town proposes to include the Damien Loop residential area.
Councilwoman Linda Hatch said she has a problem taking this money out for something that may not happen.
"Why not try one district - District 1 - and see how it goes?" she asked.
Grittman said the council tasked staff to get water and sewer out to the property along Highway 89 within the town's limits. "I'm not sure how people would respond if we do one now and do another one later," he said.
J.R. Pooler of Pooled Resources, said the greatest opportunity for property owners to pay for the work is now. "If we do District 1 and come back for District 2 and 3, we could find the economy has changed and they are one-half to two-thirds more expensive. Gilbert's project came in 60 percent under estimate, while Buckeye's project came in 51 percent under estimate," he said.
Hatch said a sewer or sewer and water improvement district will put a tremendous burden on property owners.
Councilwoman Gloria Moore said, "The future prosperity of the town depends on water and sewer. If we do it piecemeal, we're delaying the future of the town 10 years."
"If we want our town to provide services people want in town, we need this project. If we want people's tax dollars spent in our town, we need to go forward with these districts as a complete project," she said.
Grittman said he is having Pooler look into whether the town needs to have a buy-in fee in the three improvement districts to see how the town can make it as cost effective as possible. When asked how much the improvement districts are going to cost, he said that is part of what the consultant is working on.
A Chino Valley businessman said the extra financial burden the district places on small businesses may be too much.
William E. Pierce of Chino Valley asked if there is a way property owners can opt out of the proposed districts.
Councilman Joel Baker asked, "How can a business owner or property owner know if he is for or against it until he knows what it will cost them?"
"Let's find out what it is going to cost so we can see if we want in or out," he said.
Pierce said businesses can't afford another charge.
Vice Mayor Ron Romley said, "We're trying to formulate a means to finance it. It's proven that we have to have the sewer and water."
Robert Forshay asked if officials could get a maximum and minimum cost figure without spending the $354,334.
Grittman said it is dangerous using figures from other local projects because they involve so many variables. "Chino Meadows' actual figures were much higher than our estimate," he said.
He added, "I do believe people are for it (the improvement districts)."
Grittman stressed that it probably will be two years before any assessments hit. By then, the economy should be rebounding, he said.
The council then unanimously approved the agreement with Pooled Resources not to exceed $354,334.
