Sewer Water Connection Memo_Gaffron

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Dunn & McCuskey S&W Charges Analysis April 13,2009 Page 2 - BACKGROUND Fox Ridge Sewer Conneetion Option. As part of the Fox Rid�e sewer project in 2000, a pressure sewer line was installed alonb the west side of Brown Road from Fox Ridge Road to Watertown Road. Property owners along the west side of Brown Road were asked if they wanted to participate in the project. A few did, most did not. Some of those who did not were provided with a stub access point along that pressure line for future connection, with the idea that they would pay the ``going rate" connection charge at the time they connected. That rate has climbed to $21,140 per unit for 2009 for any new connections not previously assessed. This is the rate that Dunn or McCuskey would pay for a sewer connection to the Fox Ridge system if the Creekside subdivision had not happened. Properties on the east side of Brown Road were not provided with connection stubs; although they were offered the opportunity to connect to the Fox Ridge project, they were also advised that a gravity line serving the property east of them may be in the offinb, which would allow for future gravity connection. To serve either the Dunn property or the McCuskey property from the Brown Road pressure line would require boring service lines under Brown Road and installation of individual "E-1" pump stations for each property. The total cost to the homeowner for connection charges, SAC charge, permits, and actual pump station installation and connection to the sewer, would potentially exceed $30,000. Creekside Connection Option. The Dunn and McCuskey properties were subsequently each provided connection stubs to the Creekside gravity sewer system. That gravity system was completely paid for by the developer, and it discharges directly to the Lon� Lake sewer � system at the south end of Apple Glen Road at the north end of the subdivision. Municipal water is also provided by a parallel line from Long Lake. The Development Agreement between the City of Orono and Creekside in Orono LLC establishes that "upon completion by the developer and acceptance by the City of Orono, the sanitary sewer and water facilities within Outlot B and within the 30' utility easement of Lot 7, shall become the property of the City of Orono and become part of the City of Orono utility system, to be operated and maintained by the City of Orono." The Development Agreement also stated that `'all applicable City of Long Lake connection fees and char�es associated with the sewer and water system serving the development shall be paid to Lona Lake by the Developer. Developer shall be responsible for any charbes to the City of Orono from the City of Long Lake in relation to the provision of municipal sewer and water from Lon� Lake." On February 14, 2005 Tom Goodrum on behalf of Creekside in Orono LLC paid the City of Lonb Lake via check #10855 the amount of�37,800 for the seven sewer & water units for the seven new lots within the Plat of Creekside in Orono, based on the followinb rates: Water: Tap fee per unit �1600. Hookup fee per unit $1100. Sewer: Tap fee per hookup $1500. Hookup fee per unit $1200. Total S&W Fees per unit $5800.