07-30-2002 Council Work Session - Laserfiche WebLink

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TO: FROM: DATE: Mayor Peterson and Council Members Ron Moorse, City Administrator jB//^ 7 'July 30,2002 SUBJECT: Orono Ice Arena Sewer and Water Connection Charges There is a difference in understanding between the Orono Ice Arena and City staff regarding action taken by the Council related to the sewer and water connection charges for the Ice Arena. In 1998, the Ice Arena was charged $101,880 for its connection to the Highway 12 area sewer and water system. The City agreed to a payment schedule that allowed the charges to be paid over a four year period beginning in 1999, and ending in 2002. In February of2000, the Council changed the sewer and water connection charges from a per-unit fee to a per-acre fee. This substantially reduced the connection charges. The Council directed staff to recalculate the connection charges for the Ice Arena based on this change. Since the Ice Arena had already paid a portion of the connection charges, staff recalculated the charges based on the remaining unpaid balance. The Ice Arena understood the full original amount of the connection charges was to be recalculated. Although there was some discussion about this difference in understanding at some point after the Council’s action, it was not resolved at that time. This issue recently resurfaced when the City sent the final connection charge invoice to the Ice Arena. The Ice Arena believed it had already paid the recalculated charges in full. The unpaid amount is $7,245.58. In order to resolve this difference in understanding, the Council needs to clarify whether the full amount of the connection charges are to be recalculated, rather than recalculating the charges based on the year 2000 remaining balance. 1