05-25-2010 Council Work Session Packet

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. / ��a��'� , �� 2. Capacitv in the Water Svstem. You have indicated in your comments regarding Orono's Comprehensive Plan (your letter of April 26, 2010), that providing water service to Orono is contingent upon the City of Long Lake determining that it has sufficient capacity in its water system. First, this contingency on capacity only applies to selected properties as set forth in Paragraph 5 of the Utility Agreement. Those properties include the East side of Willow Drive between Watertown Road and the new Highway 12, the properties in the Hackberry neighborhood and the properties on Woodhaven Drive. Second, with respect to Outlot A, Willowfire Addition, Paragraph 5 of the Utility Agreement, provides that the water line constructed by MnDot is available to serve Outlot A. The Utility Agreement further states that Long Lake agrees to provide water service to Outlot A. Therefore, it appears that the capacity issue is not relevant to the providing of water service to Outlot A, Willowfire Addition. It is true that prov�din� water service to the other selected properties mentioned in the preceding paragraph is contingent upon sufficient capacity in the Long Lake water system. However, the Utility Agreement is silent on the question of how the decision is made on the question of capacity. In the event there is future development in any of the selected areas, and a request for water services made, the two cities would have to come to agreement that capacity is lacking. Since this is largely a technical and engineering matter, a release of the pertinent information by both cities would be a step in the right direction. 3. Sewer Connection Charqes. The Utility Agreement is straight forward in that it provides a sewer connection charge of $3,450.00 which includes the metro SAC charge of $1,200.00. There is no escalator clause for the 350 units of sewer capacity covered by the Agreement. Any change in the connection charge of $3,450.00 would require further negotiations between the two Cities. 4. Water Connection Charqe. Paragraph 5 of the Utility Agreement provides that the connection charge for properties in Outlot A, Willowfire Addition is set at $2,700.00 per residential property. Again, there is no escalator clause and any change in that fee would be subject to further negotiations between the two Cities. The water connection charge provisions for the several selected prcperti�s outside of Outlot A mentioned in Paragraph 5 of the Agreement for water service, contain an escalator clause in that the water connection charge for those properties would be the charge in effect at the time the water connection is made. Certainly, CommonBond Communities and the City of Long Lake have the right to negotiate agreements for water and sewer availability for the current proposed project, if they wish to do so. However, to the extent such agreements vary from the terms of the Utility Agreement between Long Lake and Orono, they do not set a precedent for future development of land which may benefit from the Utility Agreement.