Sewer Water Connection Memo_Gaffron

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Dunn & McCuskey S&W Charges Analysis April 13,2009 Page 4 Possible Dunn Ezpectations. There is potentiall}� an eapectation by Dunn that no City of Orono connection fee will be due for her connections. Remember that Lazniarz had to purchase an easement from Dunn for access to the Creekside Development over a portion of Dunn's property (Tract G, RLS 352). In correspondence between MPG and Dunn's attorney Jeremy Steiner in 2004, Steiner asked that the Developers Agreement include language stating that 1) two sewer and water stubs will be installed along Dunn's lot line and that 2) Dunn will not be assessed for City water and sewer. My response was: L The preliminary plat approval resolution acknowiedges WDD's (FIenry Lazniarz's) intent to provide sewer and water service to the Dunn property, but does not require that WDD provide such service. Assuming that WDD agrees to `the installation of two water and rivo sewer service stubs to serve the Dunn property' becoming a requirement, the Citv will not object to this being added as a condition of the Developer's Agreement. 2. In terms of assessment for the installation, the City of Orono will require that WDD bears the entire cost of construction of all improvements including sewer, water, road and utilities. WDD will upon acceptance by the Cit��, turn over the sewer and water facilities to the City of Orono, and they will become part of the Orono utility system, to be operated by Orono. However, we are assuming that the City of Long Lake will charge WDD (or will etcarge Orono) some form of `per unit connection charge' for the privilege of connecting into the Long Lake sewer and water systems. Our expectation, pending completion of a formal agreement between the two cities, is that WDD will pay Long Lake directly for the connection charges for his seven units, but I have no knowledge of whether he will pay the connection charge(s) for Dunn. I dou't know when Dunn will make use of the two units. I don't know whether Long Lake will expect up-front payment of a connection charge for all potential units (we think that there might be as many as ll total units over the long term,including WDD's seven,Dunn's two,and one each for the properties at 130 and 140 Brown Road), or whether Long Lake will only collect now for the 7 initial units and collect for future units as thev are connected. And I don't know whether Long Lake would bill those in the future to the individual users or would expect that Orono pay whatever connection charge is due (in which case Orono would bill or assess this to the individual property being connected at that time). It is clear that all the connection charge issues must be understood and conclusions reached before the Developer's Agreement is finalized. Greg Gappa, Orono's Director of Public Services, is working with Long Lake to finalize a sewer and water agreement. tintil the connection charge issue is resolved, I do not believe Orono can commit that "the Dunn property will not be assessed for the City water and sanitary sewer improvements for the Creekside in Orono development". However, if you conclude that `installation of the improvements' is a separate issue from `assessment for any connection charges that Long Lake may impose on Dunn or the City of Orono', then I believe we can craft language that gives you the desired confirmation. Language clarifying the assessment issues ultimately was not included in the Developers Agreement. The Final Plat Resolution conditions as well as the Developers Agreement contain only the following with regard to sewer and water s��stems: