04-20-1998 - info meeting re: sewer

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i 1. ON. OO CITY of ORONO 1 �E„ Municipal Offices �"F{I y,.- G Street Address: Mailing Address: JfEBHp 2750 Kelley Parkway P.O. Box 66 Orono, MN 55356 Crystal Bay, MN 55323-0066 April 20, 1998 Dear Project Area Residents; The City of Orono has scheduled a Neighborhood Informational Meeting to obtain resident comments on a proposed sanitary sewer project to serve the Orono Orchards Neighborhood. A project area map is included with this notice. This Neighborhood Meeting will be held at 7:00 P.M. Thursday, May 14th at the Orono City Council Chambers. Introduction This area was included in the recent MUSA expansion for sanitary sewer installation because of the smaller lot sizes and older septic systems with limited replacement sites available. Installation of new code compliant septic systems will be very difficult on some of the lots in this neighborhood. Approximately 25% of the septic systems in this area are currently failing, with an additional 15% in near failing condition. This area is one of ten neighborhoods included in the MUSA expansion. Sewer projects have already been completed in four areas with an additional two areas scheduled for completion this summer. We are beginning the planning process for possible 1999 projects. At this time, interest rates are low providing for more affordable projects. Project Assessments and Costs A feasibility study has been completed with an estimated project cost of $518,914 in 1998 dollars. This results in a proposed project assessment of$22,562 per unit payable over a fifteen year period. Options for prepayment of the assessment are available. Based on several projects recently completed, the estimated interest rate is 6.25%. Based on a 15-year assessment at 6.25% interest, the annual assessment payments will be approximately $2,350. These project costs and assessment payments may vary dependent on future construction costs and interest rates. Telephone (612) 473-7357 • FAX 473-0510