12-13-1999 Council Packet - Laserfiche WebLink

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Request for Council Action continued Page 4 December 13, 1999 Policy on Cost Allocation for Sewer Projects the advantage that the City does not have any debt service costs. Any additional properties, with nonconforming septic systems, that decide to request sewer in the future would then pay a project connection fee. Another option could be for the City to include all of the properties along Brown Road that have nonconforming septic systems in the project cost split, and then bank these units for future connection. The owners would then pay a connection fee when they connect to sewer. With this option the City would have to finance the debt service costs for the banked sewer units. With this option the property owners could also be contacted to see if they are interested in obtaining sewer iiow. Any properties that agree to be assessed now would reduce the City's debt service costs. In the above options, all of the area residents would be charged the same cost for sewer. This seems to be a fair and equitable method. A different method could be to separate the costs for the Brown Road forcemain as trunk sewer costs and then charge a trunk sewer cost. This would result in varying costs for sewer in the area. The Fox Ridge residents would then pay for the sewer in the neighborhood plus a trunk sewer cost. The remaining trunk sewer cost would then be charged to the properties that connect into this trunk sewer. This can be a complicated system to determine the appropriate trunk sewer charges and to administrator. It is often used in bigger Cities that are planning to develop at urban densities in which all properties will be sewered. Orono is a unique community in regards to providing sanitary sewer. The City's plan has been to develop at a two or five acre density using septic systems for wastewater treatment. This makes it difficult to develop a trunk sewer system. The costs for sewer are very high, and there is no certainty that all properties will connect to sewer. This could result in the City incurring costs for the installation of trunk sewer lines with uncertainty in recouping these costs. Our staff recommendation is that a trunk sewer cost system is not very appropriate for Orono. A system where all residents in a certain project area pay the same amount for sewer is the most equitable system and easiest to administer. Staff Recommendation Because of the uncertainty regarding the potential and liming of properties connecting to sewer at some time in the future, str.ff recommends that only those properties with an imminent need to connect to sewer be added to a sewer project. StafTs recommendation is that the current policy, which requires the properties in the sewer project area to pay the full cost of the sewer, remain in place; with the addition of an option to add properties to an initial project area if they have an imminent need to connect to sewer. COUNCIL ACTION REQUESTED: Motion to clarify the sewer cost allocation policy, particularly in relation to the Fox Ridge sewer project.