Sewer Water Connection Memo_Gaffron

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• Dunn& McCuskey S&W Charges Analysis April 13,2009 Page 7 Dunn & McCuskey - Water Connection Fee Formula: 1) Water Main Improvements: $38,906 $38,906 2) 1/2 of Base maintenance roadway costs: $ 2,000 Mobilization 14,000 common excavation 16,800 Class IV and V Base 2,250 fabric $35,050 35,050 3) Restoration $10,000 10,000 $83,956 Water Connection Fee = $83,956 / 10 base dwelling units = $8,396 / unit (Base units=7 in subdiv. Plus i McCuskey and 2 Dunn) Note: It is unclear whether the old Long Lake S&W fees (paid for the seven Creekside lots in 2005) apply, or some yet-to-be-agreed-upon new fees apply per the "Sewer and Water Hook-up and Connection Charge" established in the (still pending) "Municipal Utility Service Agreement by and between the Cities of Long Lake and Orono". Those fees are $1,600 per unit for each SAC-equivalent sewer connection and $1,500 for each water connection (and will there also be "tap fees" of$1100 for water and $1200 for sewer as there �aa�re in 2005?). Orono would collect these at the time of connection permit issuance along with the standard Met Council SAC charge for sewer connection. The Long Lake connection fees collected by Orono will be a pass-through to Long Lake. The MCES SAC charge will continue to be a pass-through to Met Council. To summarize, the connection charges for each of the Dunn & McCuskey properties for 2009 would be: Sewer: Water. $ 9,421 Orono Sewer Connection Charge $ 8,396 Orono Water Connection Charge 1,600 L. L. Sewer Conn. Charge 1,500 L. L. Water Conn. Charge 2,000 MCES SAC (2009) $ 9,896 (???Plus $1100 LL Hookup?) $ 13,021 (???Plus $1200 LL Hookup?) (Due with application for sewer or water connection permit) Questions for Discussion 1. What connection fees will Long Lake will be charging for these connections? Given the lack of a joint S&W Agreement with Long Lake after 5 years of negotiations, what is the best way to approach this without causing an undesirable outcome? 2. Does Council concur with staff regarding the method being used to determine a fair connection charge, or the applicability of the charge in this or similar situations? 3. What are the expectations of Dunn regarding these fees?