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IF Michael Kuruvilla April 3,2009 Page 2 for this extension is approximately $64,000 with again some undetermined portion of the cost to be attributed to the property at 875 Wayzata Boulevard. We will in the next 4-6 weeks be providing the Council with information to assist them in determining the appropriate apportioning of costs. Cost Assessment and Additional Costs. The City normally assesses the costs of retrofitting neighborhoods with sewer and water utilities over a period of 15 years. We expect that to be the case with your extensions. Also remember that the costs of actually connecting your building to the municipal sewer or water system are not assessed, and it is the responsibility of the property owner to hire a contractor to make those connections. You should contact sewer and water contractors to determine what your connection costs will be. Additional costs that you will incur at the time of making the connections are: Sewer: Metropolitan Council Sewer Availability Charge (SAC): $2,000.00 x No. of SAC Units' City of Orono Connection Permit: $ 50.00 City of Wayzata Sewer Connection Charge2: $ 525.00 x No. of SAC Units' Water: City of Orono Connection Permit: $ 50.00 City of Orono Water Meter(1"): $ 477.70 (est.) City of Wayzata Water Connection Charge2: $1,920.00 x No. of SAC Units' ' The number of SAC units is based on expected usage and is calculated for non-residential uses by the Metropolitan Council. For Daycare uses, the property is charged 1 SAC unit for each 14 licensed students. For Church uses 1 SAC unit is charged foe each 275 seats. Under your stated potential use of approximately 100 students,the property might be charged as many as 7 SAC units. 2 The sewer and water systems serving your property will be an extension of the City of Wayzata utility system, and are therefore subject to Wayzata's connection charges Schedule. The tentative schedule for the Myrtlewood sewer and water project is to call for bids in early April; open bids in late April; hold an assessment hearing in mid-May; award a contract on May 25, 2009; construction to commence in June/July with substantial completion in September, 2009. Under this scenario, you would likely have the ability to connect to the water system in October/November of 2009. This schedule is subject to change. Please feel free to contact me at 952-249-4622 if you have any questions. Sincerely, Michael P. Gaffr(),‘( -,7/ Asst. City Administrator cc: City Engineer Tom Kellogg Sewer & Water Supervisor Scott Oberaigner Finance Director Ron Olson