01-10-2000 Council Packet - Laserfiche WebLink

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.4 . . Request for Council Action continmd Page 5 January 5,2000 Sewer Assessment/Cost Allocation Policy Applying the City’s sewer assessment policy to the Fox Ridge project provides three assessment options: Option 1: Fox Ridge MUSA Expansion Area Assessed for All Project Costs This option is brsed on the premise that all of the sewer lines are necessary to sewer this neighborhood. This is basically the historical city policy, that residents pay for the full cost of sewer to serve their neighborhoods. In the future, if additional properties connect to this sewer they would pay a connection fee to the City based on the project assessments adjusted for inflation. The advantage of this option is that the entire cost could be assessed now and the City would not have any debt service costs. There are nine units in the Fox Ridge MUSA expansion area and the estimated assessment is $23,600 for a pressure sewer system. The Fox Ridge neighborhood residents have expressed concerns about the fairness of this option because the City will collect connection fees above and beyond the actual cost to construct the project if future properties are connected to the sewer. Potion 2 :Fox Ridue MUSA Expansion Area Plus Eligible Property Owners Along South Brown Requesting Sewer at This Time be Assessed an Equal Amount This option would be to contact the five property owners, with nonconforming septic systems, along South Brown Road to find out if they are interested in obtaining sewer at this time. The total project costs could then be evenly split among all participating properly owners which seems to be a fair and equitable cost allocation method Any additional properties, with nonconforming septic systems, that decide to request sewer in the future would then pay a project connection fee based on the project assessments adjusted for inflation. The project assessments will var>’, from $23,600 to $ 17,400 per unit depending on the number of participating properties. The City would not incur any debt service costs for this option. The Fox Ridge neighborhood residents may still have concerns about the City collecting connection fees above and beyond the actual cost to construct the project. Another disadvantage of this option is the project assessments are unknown when we contact the residents along South Brown Road, with nonconforming septic systems, regarding sewer connection. Option 3: Fox Ridge MUSA Expansion Area Plus All Five Filigible Property Owners Along South Brown Road With Units for Pronertics That Decide Not to Request Sewer Now Banked bv CiW For this option the City would contact the five properly owners, with nonconforming septic systems, along South Brown Road to find out if they are interested in obtaining sewer at this time. The properly owners that want sewer now would be included in the project assessment. Units would be banked for the remaining properties with nonconforming septic systems. These property owners would then pay a connection charge when they connect to sewer. With this option the City would have to finance the debt service costs for the banked sewer units. The project costs for this option would be evenly split among the fourteen properties, that could benefit from sewer, which seems to