02-24-2003 Council Packet - Laserfiche WebLink

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A preliminary cost estimate has been prepared for the installation of a pressure sewer system across area A. The estimated cost for this project is $16,000 per unit. At the January 27, 2003 Council meeting, the extension of sewer was approved for 1405 Sixth Avenue North, this is the westernmost property in Area A. The property agreed to pay a connection fee of $ 16,000 and provide an easement at no cost for the extension of pressure sewer system across his property. Request for Sewer Service We have now received a request for sewer from John Mackay 1145 Sixth Avenue North which is the easternmost property in Area A. Sewering of this property would require installation of sewer across the entire area A. The property has a nonconforming four bedroom septic system and does not have suitable replacement septic sites, because of steep topography and wetlands. Financing Options Mr. Mackay has contacted tlie owners of the three properties between his property and 1405 Sixth Avenue North, and these owners have agreed to grant a sewer easement across their property. At an estimated unit cost of $16,000, the cost to extend sewer to Mr. Mackay's property is $64,000. He has stated that he is willing to pay for the cost to extend sewer to his property with the understanding that any sewer connection fees collected by the City for the three properties are refunded to him as they are collected. At this time, two of these property owners have not expressed any interest in an immediate connection to the sewer. The third property owner is experiencing problems with the septic system and may be interested in connection to the sewer this summer. • .Another option may be for Mr. Mackay to pay a '116,000 connection fee and the City would then finance the remaining $48,000 in costs until the middle properties connect to sewer. This would eliminate the need to refund Mr. Mackay's cost in the future. City financing of these sewer costs w ould not be unprecedented as on several of the recent sewer expansion projects the City is holding these costs until future connection of properties with conforming septic systems. With the current low interest rate climate, the holding cost for these units is minimal and there is an adequate balance in the Sewer Utility Fund to cover these costs. There is no requir.”nent that these three properties have to connect to sewer, but it is likely that the owners will connect to sewer in the future because the replacement of their nonconforming septic systems will require the removal of many trees as these lots are all heavily wooded. The one property owner that is interested in possible connection to sewer this sewer has already stated that she does not want to lose trees for a new septic system. The plans for this project arc substantially complete, so bids can be obtained soon and the project constructed as soon as the weather allows this spring. Page 2 of 3