NOTE: See attachment
VILLAGE OF GRANVILLE SPECIAL COUNCIL MEETING August 8, 2001
CALL TO ORDER (by Mayor Robertson at 8:58pm)
ROLL CALL (8:58 pm) Those responding to the Roll Call were Councilmembers Bellman, Crais, McGowan, and Moore; Vice Mayor Wernet, Mayor Robertson; Manager Hickman, Law Director Crites. Councilmember Crais moved to excuse Councilmember Lucier; second by Vice Mayor Wernet. Motion carried.
NEW BUSINESS Resolution No. 01-51, A Resolution To Direct The Manager Of The Village Of Granville To Enter Into A Contract With Kendal Of Granville For The Sale Of Water Under The Conditions Specified In Attachment A, was introduced by Vice Mayor Wernet. Second by Councilmember Crais.
Discussion: Councilmember McGowan reiterated his support for selling water to Kendal but emphasized that if we agree to sell water to a private enterprise we should revisit selling water to the school. Attorney Robert Drake, representing Kendal, emphasized that Kendal needed a response, one way or the other, at this meeting. He added that there was no point in approving a resolution that would be the guide for a contract Kendal wouldn’t sign. Mayor Robertson polled Council to see if they were willing to negotiate the contract at this meeting. There was general agreement. Therefore, Councilmember Moore moved to table Resolution No. 01-51; second by Councilmember Crais. Motion carried.
Ordinance No. 20-01, An Ordinance To Direct The Manager To Enter Into An Agreement With Kendal Of Granville For The Purchase Of Water And Sewer, was introduced by Councilmember Crais. Second by Vice Mayor Wernet.
Discussion: Mr. Drake reported that he and Law Director Crites had met yesterday to discuss the draft contract. He brought forward six points, four of which had been agreed to; the other two need further discussion. He summarized as follows: 1) The Village will agree to 250 gallons/ independent living unit. 2) Both parties agree to a multiplier of 1.3. 3) Kendal agrees to buy the meter. 4) Kendal agrees to pay tap fees. 5) Kendal does not agree to a $19,000 annual payment. They want a tax abatement from the school district and don’t feel they can seek it if they make a payment to the village (in effect “transferring” dollars from the school system to the Village). 6) Kendal wants a 30-year term to coincide with the anticipated term of their mortgage. They also want an automatic renewal but not with a fixed price.
Mr. Drake then addressed the annexation provisions in the draft contract, stating that Kendal was unwilling to bind itself to future action on this matter. For one thing, Denison owns the majority of the property. For another, since annexation often deals with utility extension agreements and might also deal with a future JEDD agreement, they would be agreeing now to a future action without knowing any of the parameters. Finally, Mr. Drake noted that Kendal is being developed in a manner consistent with Township requirements, not Village ones (since the Village does not have a CCRC standard). He added that the contract should not be written with a JEDD as a precondition (i.e., if the JEDD discussions do not work out, the Village might then have an “out” to not live up to the contract).
Members of Council and representatives for Kendal then did a paragraph by paragraph review of the ordinance:
Paragraph 1: “20 years” was changed to “30 years” with no price specified for the renewal term; “adequate pressure” was deleted.
Paragraphs 2 and 3: OK as is.
Paragraph 4: add “Village rate.”
Paragraph 5: no conclusion reached at this time.
Paragraphs 6, 7, 8, 9, 10, 11, and 12: OK
Paragraph 13: Add that the Village could impose the same water restrictions on Kendal as on other Village water customers (i.e., no lawn watering, etc.). Clarifying language will be added.
Paragraphs 14 and 15: OK
Paragraph 16: Insert language that if sewer lines are extended but Kendal doesn’t want to purchase sewer service, they don’t have to pay for the lines. Also insert language that Kendal will agree to enter into good-faith discussions about annexation if and when the property becomes contiguous to the Village. Further discussion needed.
Paragraphs 17, 18, 19, and 20: OK
At 10:45pm, the meeting recessed so the parties could caucus to see if agreement could be reached on the disputed paragraphs. The meeting reconvened at 11:07pm.
Re Paragraph 11: Mr. Drake reported that Kendal would agree to a written confirmation, suggested earlier, that they would not provide sewer service to any other entity. The reference would also include a non-assignability clause.
Re Paragraph 5: Kendal would agree to make a contractual payment equal to 1% of their payroll (projected at $1.5M in Phase I; $1.8M in Phase II once the facility is fully staffed), in lieu of income tax, to begin at the end of the tax abatement period they negotiate with the Township and the School Board (projected to be 10-15 years). They also agree to enter into good-faith negotiations re annexation.
Councilmember Crais suggested parallel tracks whereby the Village would join the Township and the School Board in receiving funds during an abatement period.
At 11:35pm, the meeting recessed so the parties could caucus to see if agreement could be reached on the disputed paragraphs. The meeting reconvened at 11:39pm.
Re Paragraph 5: Mr. Drake reported that Kendal agreed to accede to Councilmember Crais’ parallel plan, with the provision that the Village not be party to discussions with either the Township or the School Board. Law Director Crites proposed the following language: “Kendal agrees to an annual PILOT of 1% to commence on the second January 1st after they tap in to the water. The PILOT is to be abated by the same percentage and the same time as with the Township and the School District.” Paragraph 5 is agreed to.
Re Paragraph 16: Mr. Drake proposed the following language: “It is agreed that Kendal, as a condition of receiving water under this contract, shall enter into good- faith negotiations concerning annexation to the Village when Kendal becomes legally capable of petitioning for annexation and upon request of the Village. Further, Kendal would agree not to oppose any petition for annexation which Denison University might file.” Paragraph 16 is agreed to.
Mayor Robertson set the Public Hearing for Ordinance No. 20- 01 for August 22, 2001. Vice Mayor Wernet move to amend the Ordinance as per the above-recorded discussion; second by Councilmember Moore. Motion carried.
Vice Mayor Wernet moved to take Resolution 01-51 off the table; second by Councilmember Moore. Motion carried.
Discussion: Vice Mayor Wernet moved following changes to the text of the Resolution. Second by Councilmember Moore: · Title: A Resolution To Authorize The Village Of Granville To Provide Surplus Water Service To Property Belonging To Kendal At Granville Located At The Middleton Site On Columbus Road. · 8th Whereas: “…developed consistent with the Village Township requirements….” · 10th & 11th Whereas: Delete · Section 2: “…entered into by the Village and Kendal, consistent with the discussions between the Village and Kendal at the August 8th meeting, which shall contain….”; “…the period of the contract shall be twenty thirty years….”
Motion-to-amend carried. Motion-as-amended carried.
NOTE: See “Memo to the Clerk.”
At 12:12am, Councilmember Crais moved to enter into Executive Session for the purpose of discussing property acquisition. Second by Councilmember Crais. A Roll Call vote yielded six (6) affirmative votes: Councilmembers Bellman, Crais, McGowan, and Moore: Vice Mayor Wernet, Mayor Robertson.
At 12:24am, Vice Mayor Wernet moved to end the Executive Session. Second by Councilmember Crais. A Roll Call vote yielded six (6) affirmative votes: Councilmembers Bellman, Crais, McGowan, and Moore: Vice Mayor Wernet, Mayor Robertson.
ADJOURNMENT Councilmember Crais moved to adjourn the meeting at 12:25am. Second by Councilmember McGowan. Motion carried.
To: Clerk of Council
Re: Comments by Council Person Dan Bellman on Approval of Water to Kendal
Date: September 5, 2001 Because the decision to provide Village water outside the Village to Kendal is so important, these additional comments are in order. They are not intended to provide a statement of policy. Rather, they are intended to provide an explanation for the vote I cast, which may be of benefit to future Councils who are facing similar issues.
First, let me restate my support for the Village's current policy of providing utility services (water and sewer) only to Village residents. Water and sewer are two of the most valuable resources a municipality has to offer its citizens and its business community. They also are often the two resources, which entice new citizens and new businesses to join the Village. By bringing these citizens and businesses into the Village, the Village expands its tax base, ensures attractive and appropriate development, preserves green space, and avoids suburban sprawl evident in the townships and cities to our West.
For some months, the Township trustees and others have proposed JEDD's in lieu of annexations as a vehicle for expanding the Village's utilities. If JEDD's or other similar arrangements accomplish the same goals that annexation would provide, I am willing, on a trial basis, I to consider it. In the case of Kendal, it was unclear whether a JEDD was legally permissible for that type of development. On a one time basis, and for reasons that are unique to Kendal, I am willing to proceed, but only because a JEDD is not an option here and because the same goals that can be accomplished in a JEDD can be accomplished here in other ways. In the future, for other proposed developments, I would not consider providing utility services without the minimum threshold of a JEDD, if not an annexation.
In voting for water for Kendal, I have considered the following factors:
· Community Purpose · Green Space · Direct Benefit to the Village · No Direct, Significant Adverse Impact on the Village · Consistency with the Comprehensive Plan · Farmland Preservation · Maintaining Discretion of Council
Community Purpose: Kendal provides an important service of keeping our senior citizens in the Granville community. Additionally, as land which already is likely to develop and which already has adequate water resources on its own, allowing a senior housing development provides one other benefit: it consumes land that could used for single family housing and converts it to a school-friendly use that does not bring additional children to our schools.
Green Space: Kendal provides a relatively low density -- 30% lot coverage --for land that already has a higher density zoning (e.g., one house per 2 acres).
Direct Benefit to the Village: Part of a JEDD's advantage to the Village is accomplished because the Village is receiving a payment in lieu of income taxes. In the case of Kendal, the payment was calculated based on a one percent rate. This is lower than the rate paid by Village citizens; on the other hand, the Village is not providing all of its municipal services to Kendal.
Regarding the water rate, those residing outside the Village should not receive the same low rate as our citizens who live within the Village borders. In the proposed contract, the rate for Kendal is 1.3 times the rate paid by Village citizens. Future Councils should not be restrained by this "1.3" factor. Perhaps, the right rate is 1.5, 1.7, or even 2.0 times the Village citizen's rate.
No Direct. Significant Adverse Impact on the Village: There is no adverse impact on the Village by the Kendal development on State Route 16 as there was in the case of the School's proposed site on Burg Street, North of the Village. In the case of the schools, there is only one major route to bring the students -- who largely live to the South and East of the Village --to the area North of the Village where the new school is being planned. This will create additional, significant traffic burdens on the Village with no promises from the Township or the Schools to remedy the situation. As such, I was opposed to the School's proposed site on Burg Street. In contrast, the new Kendal site is located on State Route 16, so no significant new traffic will be going through the Village, and the State, not the Village, will have responsibility for the safety and maintenance of the road.
In the case of Kendal, most of the direct traffic burden is on State Route 16, and thus there will be no direct, significant adverse impact on the Village itself. Additionally, the Kendal development has one other benefit - -the traffic from senior citizens will be distributed evenly throughout the day, as opposed to traffic from a school or certain businesses (e.g., Wendv's) whose traffic is concentrated in narrow bands of time called "peak hours".
It should be noted that I and other members of Village Council were willing to provide water and sewer to the Schools despite our grave concerns about the feasibility of the proposed site on Burg Street. We were willing to consider this QQl¥ because the School Board was the party requesting the water. Before such an extension of utilities took place, however, we felt it imperative that the new school join the Village --that is, that the new school site be annexed to the Village. An annexation would have brought the Village's staff and Planning Commission into the planning process, thereby allowing Village input into ways to alleviate the inevitable traffic and safety problems, while also allowing an income to the Village for the burden which it primarily was due to suffer. Consistency with the Comprehensive Plan
There is nothing in the Comprehensive Plan, to my knowledge, which is in conflict with senior housing at that site on State Route 16. Additionally, the 1998 Comprehensive Plan contained a survey in which local residents felt that senior housing was an important, needed addition to the Village.
To my knowledge, the proposed Kendal site on State Route 16 has not been a major location for farming. In sharp contrast, Kendal's original planned site at Burg Street and New Burg Street (near the new school that is being built) is one of the few major, remaining farming locations.
Because our local farmland is an important historical component of what makes Granville the community it is, and because farmland preservation is one of the most important goals stated in the Comprehensive Plan, we need to consider this during all major decisions. Because Kendal took a very community-minded position and moved away from the farmland North of the Village, it was easier to reward Kendal with water at its new site.
Maintaining Discretion of Council
At all times, the Village must maintain the discretion to accept or deny requests for water and sewer outside the Village. Thus, I view our recent decision to provide water to Kendal more as being done on a trial basis --a decision which, in future years, can be evaluated as being either good or bad. It should not be considered an attempt to reformulate Village policy. With rare exception, I continue to believe that valuable Village resources, such as water and/or sewer, should only be reserved for the citizens residing within the Village borders.
A couple provisions were added to the proposed contract with Kendal which I find disturbing.
First, the period of the contract is for an exceptionally long period. In these unusually volatile and dynamic times, a standing Village Council should avoid making decisions that will impact the Village, in a binding manner, for more than 20 years.
Secondly, the Village accepted with little analysis the concept that part of our payment in lieu of income taxes should be abated. This is a potentially dangerous step to take, and one that could lead us in directions we have no intention of heading. I hope that we will not make that same mistake again.