Palmer's plans for new utilities begin to gel

PALMER -- Residents and retail establishments along the route of Palmer's new water and sewer line to the incipient Mat-Su Valley Medical Center could receive service from the city's system, but only if they want it.

The most likely route for the new water and sewer line runs through the Alaska Railroad right of way near the Glenn Highway southwest of Palmer. Palmer City Manager Tom Healy said he couldn't be sure about a definite route for the utilities until the engineering was completed, but said following the course of the Glenn Highway with the line would probably be the most feasible option.

"We would like to use an existing access corridor," said Healy, referring to the city's reluctance to follow the highly unpopular proposed northern route for the line, which would cut across park and trail land, in favor of running it next to the Glenn.

Putting the line along the highway is a little complicated, since the Glenn is going to be widened over the next couple of years, and the utility lines could get in the way of these plans. However, the Alaska Railroad runs alongside the Glenn for much of the proposed southern route, and using the right of way granted to the railroad is an option under consideration by the city.

Tim Thompson, spokesman for the railroad, said corporation officials were generally receptive about the possibility of letting Palmer put the lines in its right of way, but that they weren't entirely sold yet. "We're always cautious when it comes to our right of way," he said.

Thompson said that the railroad had recently sent a letter to Scott Hattenburg, manager of the project, with "some key provisions that would have to be adhered to," if the construction were to proceed near the tracks.

"There's a lot of issues that would have to be dealt with before we agree," said Thompson.

The railroad would lease its land to the city if the water and sewer lines went in nearby, meaning that the corporation has something to gain from the project as well.

However, a partnership with the railroad is by no means a certainty. Healy said that the city and its associates were "still polishing up the preliminary engineering," and that a report would be available soon. More should be known about the route at that time.

Rich Koch, Palmer Public Works superintendent, said the line's biggest customer would certainly be the hospital, but the city was looking at adding numerous commercial customers in the area. In fact, Koch said, the line's new users will be primarily commercial.

Healy said that the number of commercial versus residential users who are anticipated to connect to the line is still uncertain, but that commercial users generally demand higher volume than residential users.

Commercial use of the line is something of a chicken-and-egg dilemma, since Healy said the city is in contact with a number of developers who would be interested in moving into the area, but won't do so unless the area has water and sewer service.

"We'd had some strong expressions of interest in the line," he said. "A utility line makes development much more feasible."

The cost of the line is the primary motivation for connecting new users. Though a federal grant is paying 75 percent of the cost of construction, the city is still left with the remaining 25 percent, a bill that, from initial estimates, looks to be in the neighborhood of $2 million.

Selling bonds would allow the city to come up with the money quickly, but Palmer still has to recoup these expenses, ideally by using money made off the line itself.

A Local Improvement District (LID) is often used to share costs of public works improvements with residents in the improved area. Under an LID, the city determines both the cost of the project and a specific dollar amount that residents who benefit from the improvement must pay. The recent N. Eagle / N. Denali street paving project in Palmer used this system of expense division.

However, it doesn't seem as if a LID is a viable option for the new water and sewer lines.

"The city only has the authority to establish an LID within its own limits," said Healy. LID establishment, he added, is determined through a process involving tax information, and since Palmer doesn't have the authority to levy taxes outside of its borders, a LID isn't possible.

Koch said that when the city extends utility service to customers within its city limits, it has certain rights and regulations it can exercise and must adhere to. This project, which is primarily oriented toward lands outside of Palmer, is a special case.

"This line is a little bit different from the ways we're accustomed to running [our water and sewer service]," said Koch. "It's definitely not the norm."

The city will possibly charge connection fees and/or increased rates for new users on the line. How high these fees and rates will run will be determined once some more cost estimates are completed. However, the agreement that granted Palmer the authority to provide service to the area also stipulated that the rates be reasonable.

Koch said that individual cases of people wanting to connect to the line will likely be considered separately, and a change to the city's code dealing with utility connections may be in order as well.

What is certain, however, is that connecting to the new line will be optional.

Healy said that the only case in which a user along the line would be compelled to switch from their own private well and septic tank to the standardized city system is if the private system was an environmental hazard designated as such by the Department of Environmental Conservation.

The timeline is tight for the first stages of planning, but Koch said that the project is in no trouble right now. "We're starting to get it nailed down," he said. "It's looking good right now."

The Palmer City Council will consider the issue of placing a bond issue proposition on the October ballot during its next meeting on Tuesday, July 27.

Contact Daniel Spoth at daniel.spoth@frontiersman.com.