06-08-2009 Council Work Session Packet

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�� MEMORANDUM To: Mayor and Council Bill Wells, City Administrator , �%�,Ef,'` From: Mike Gaffron, Asst. City Administrator��,,�� `�-, . ,�� Date: June 8, 2009 Subject: Sewer Connection Fee Policy - Commons Area Irrigation Systems Back r� The Sugar Woods Homeowners Association wants to install an irrigation system for their common areas and connect it to the City water system. It would be separately metered from any of the individual homes. The Orono Municipal Code does not address whether a separate water connection charge should be assessed for such use. There is no policy we are aware of regarding this topic. The municipal water lateral system serving the Sugar Woods neighborhood was constructed by the developer of Sugar Woods, Sid Rebers. Orono concurrently constructed a new well in 1989 and a water tower shortly thereafter to serve the general Highway 12 area. The Sugar Woods properties were not individually assessed for the costs of the well and tower projects; it is not clear from the records but it is assumed that Rebers also paid a share of the cost of these improvements. As homes were built in Sugar Woods during the 1990s they were not charged any additional connection charges and were considered as fully paid for S&W. The City subsequently established unit charges for the Highway 12 Water System improvements to be charged to any new properties coming into the system, which remained as unit charges unti12000. In 2001 these were converted to an acreage charge which would be charged to any developer based on acreage rather than the number of units being developed. Willow View, Stonebay, and the new Orono Middle School all paid on an acreage basis. Analysis Since the individual units within Sugar Woods were not charged connection fees, it is assumed that any payments by the developer covered the entire costs of the Highway 12 improvements that serve the Sugar Woods subdivision. Based on this assumption, no further water connection charge should be due for connecting the commons area irrigation system to the municipal water supply, as long as it is properly metered and billed for water used. Also note that if the neighborhood was to be charged the acreage charge, currently at $10,480/acre it would total about $97,000 for the 6 acres of open space outlots and 3-plus acres of road and boulevard. This would likely result in the neighborhood foregoing any such connection. Staff Recommendation Staff recommends that the Sugar Woods neighborhood not be charged a connection charge for connecting the common area irrigation system to the municipal water supply. This should not, however, be construed as establishing a policy for future new development, which will still pay fully for sewer and water units on a gross acreage basis (i.e. including commons areas, wetlands, etc.). il. i