Sewer Water Connection Memo_Gaffron

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, ' , Dunn & McCuskey S&W Charges Analysis April l3,2009 Page� 6. Sanitan� Sewer and Water Svstems. All applicable Cit3� of Long Lake connection fees and charges associated with the sewer and water system serving the development shall be paid to Long Lake by the Developer. Developer shall be responsible for any charges to the City of Orono from the City of Long Lake in relation to the provision of municipal sewer and water from Long Lake. Upon completion by the Developer and acceptance by the CiTy of Orono, the sanitary sewer and water faci►ities within Outlot B and within the 30' utility easement of Lot 7, shall become part of the City of Orono utility system, to be operated and maintained by the City of Orono. As part of the installation of sanitary sewer and water improvements per the approved plans, Developer shall install two sewer and two water stubs for future service to the Dunn propertp and 1 sewer and 1 water stub for future service to the McCuskey property. No discussion was included about what fees Dunn or McCuskey might be charged by Orono. Williamson Analysis. There is one recent instance where staff did determine a connection fee for an existing house that was part of the new subdivision by virtue of having sold part of its land to create the subdivision. That property is the Williamson house at 190 N. Willow, which became part of the Glendale Cove subdivision. The Williamsons initially requested a sewer connection to the Hackberry sewer in 2004, prior to the Glendale Cove application. At that time the City advised them that their actual costs of connection would likely be reduced by waiting until the adjoining property on the east side of Willow Drive was developed. This would avoid a long connection route and�crossinb of Willow with an individual service. Shortly thereafter they sold a portion of their property to Steve Bohl who as part of the development of Glendale Cove in 2006-2007 installed sewer and water lines as well as a road, stormwater facilities and other improvements to serve 8 new homes. Those sewer and water lines became the property of the City, and the City maintains them as part of its system. As part of that project, Bohl installed municipal sewer and water stubs to serve the Williamson property. In 2004 we had advised the Williamsons that a sewer connection fee based on the 1973-1 Hackberry project would be due. Because the Glendale Cove project subsequently included extension of sewer laterals and water mains that the City would then own. staff determined it would be most consistent with City policy to establish sewer and water connection charges for the Williamson property (and any other existing homes that would connect to the Glendale Cove lateral system) based solely on the costs of the Glendale Cove project, disregarding the Hackberry project. The 8 new lots in the subdivision would not be subject to the Orono connection charge because their developer paid the entire costs of installation of that system. Per discussio�s with City Engineer Tom Kellogg and City Administrator Ron Moorse in late 2007, a formula was established in for assigning connection fees for the Glendale Cove sewer and water system, based on the prorated line item costs of sewer or water facilities installation plus 1/2 the cost of providing basic access for utility maintenance. Cost figures