Pub Hearing Notice Sanitary Sewer & Water Main

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Myrtlewood Neighborhood Sanitary Sewer and Water Main Project February 10, 2009 Page 2 The Study also looked into the possibility of providing sewer and/or municipal water to serve properties located at 850 Wayzata Boulevard West and 875 Wayzata Boulevard West. The estimated project cost to provide sewer and water to the Wayzata Boulevard addresses is $350,000. For Myrtlewood residents the project cost can be assessed over a 15-year time period at a 6.25% annual interest rate. In addition to the sewer cost, there is a SAC fee of$2,000. This SAC fee increases on an annual basis and is payment for the additional costs of the future downstream capacity in the Metropolitan Council Sewer System. Also, the estimated property owner costs for the grinder pump station, service connection, and septic tank abandonment can range from $10,000 to $13,000 depending on the length of the service connection required. The City is currently negotiating sanitary sewer and water charges with the city of Wayzata. The agreed upon rates will be passed on to the properties served by the new sewer system. For properties with a conforming septic system, City policy allows continued use of the septic system as long it remains conforming. Connection to the sewer is required when the system becomes nonconforming, or requires major repairs or expansion. Property owners with conforming septic systems can choose not to be assessed for the project costs at this time, and then pay a lump-sum project connection fee at the time they want to connect to the sewer. The connection fee is based on the project assessment amount updated annually for inflation. The property owner can also be assessed for the project costs and continue to use the septic system as long as it remains conforming. If there is sufficient interest in the project after the Public Hearing is held, plans and specifications will be prepared and sealed bids solicited. An assessment hearing will then be held, the project assessments approved, and a contract for project construction this summer will be awarded. The City of Orono has a Special Assessment Deferral Program available for property owners 65 years of age or older that meet specified income and assets criteria. Information on this program is available from the City upon request. The City Council shall discuss specifics related to sewer and water extensions to serve 850 Wayzata Boulevard West and 875 Wayzata Boulevard West at the public hearing. The estimated project cost of$350,000 to provide sewer and water to these two properties will be assessed to 850 and 875 Wayzata Boulevard West. Please contact me at 651-604-4863 if you have any questions. Sincerely, Tom Kello Orono City Engineer