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REQUEST FOR COUNCIL ACTION <br />COUNCIL MEETING <br />DEC 1 3 1999 <br />ClT Y Ul- UhUNO <br />DATE: December 13,1999 <br />ITEM NO.: J Q <br />Department Approval: <br />Name Gregory A. Gappa <br />Title Director of Public Services <br />Administratoi^eviewed:Agenda Section: <br />Engineer’s Report <br />Item Description: Policy on Cost Allocation for Sewer Projects <br />Background Information <br />Recent sanitary sewer projects have resulted in questions regarding the policy for cost allocations <br />for sewer projects. The last group of sewer expansion projects has included several projects that <br />required substantial lengths of sewer to connect the neighborhoods to the existing sewer system. <br />This is the result of MUSA expansions into existing neighborhoods that are not directly adjacent to <br />existing sewer facilities. In the past, sewer projects were adjacent to existing sewer facilities, so long <br />sections of connecting lines, through unsewered areas, were not required. Ten MUSA expansion <br />areas were included in this last group of projects. Over the past several years seven of these ten <br />projects have been completed. <br />There are three projects ♦hat require substantial lengths of sewer forcemain, through unsewered <br />areas, to connect to existing facilities. These projects are the North Long Lake/ Long Lake Country <br />Club Addition project, Webber Hills project, and the Fox Ridge project. The other seven projects <br />w ere relatively close to existing sewer facilities. Of the three projects listed above, only the North <br />Long Lake project has been completed. <br />Another item for consideration is that along with the ten MUSA expansion areas, the City was <br />provided with 50 additional sewer units. These units can be used to connect existing developed <br />properties that are outside the MUSA line to sewer. Three criteria need to be met for connection of <br />these properties to sewer. They must be existing developed properties, have nonconforming septic <br />systems, and be without adequate replacement sites for a new' septic system. The provision of these <br />additional sewer units was a substantial change in policy for the Metropolitan Council. Historically, <br />a Comprehensive Plan Amendment had to be approved to include any additional properties in the <br />MUSA. This was a very time consuming and difficult process and was seldom done tor individual <br />properties. <br />The City’s policy on assessments for sewer projects has also recently changed. Historically, all of the <br />sewer pioject costs were assessed to the property owners. A change in the Minnesota State Statues <br />resulted in a change in assessment policies. The State Statues limit a project assessment to the <br />benefits received from the project. Because of the relatively low urban densities, some of the sewer <br />projects were quite expensive resulting in assessm-;nt appeals. The City's assessment policy was <br />changed to limit the project assessments to the benefits received from the project. The City then pays <br />the debt ser\ ice on the remaining project costs.