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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 27, 2015 7:00 o’clock p.m. __________________________________________________________________________________ Page 21 of 29 13. NORTHERN UTILITIES BUILD OUT – RESOLUTION NO. 6530 (continued) Gaffron stated if the City bases its units on the full capacity of the parcel but the units are not all built, the City would not recoup all of the money that it anticipates. Gaffron stated the proposed formula allows a developer to know what the fees are no matter how many units he builds. Walsh stated the developer will want to know what their costs are up front. Mattick stated the City Council will need to discuss special assessments versus a connection fee a little further. Printup asked if this is a mechanism to hold those costs down by limiting it to a certain number of units. Printup asked if this formula will pull the numbers down if there is pressure to push the density numbers back down with a future Comprehensive Plan. Gaffron stated if the City is building for a certain capacity, it will cost X amount of dollars, and that the City will need to recoup those costs. Walsh stated if the City sizes the pipes for 400 units and then the Metropolitan Council requests 800 units, the City’s argument could be that they sized it according to what it was guided for. Edwards stated the capacity has been based on what it is guided for today. If the densities go way up and the City is under capacity, they will need to look at whether they should replace the lines or place parallel pipes in. Martini stated the project is currently planned with an 8-inch sewer main, which will still allow some flexibility for some increased units. A 12-inch water main is also planned due to the long stretch out to the far west property, but that 12-inch pipe would also have some flexibility. McMillan asked if the property owners are aware of this formula. Edwards indicated he has only spoken with some developers. McMillan asked if the City Council should approve this tonight. Edwards stated if there are some adjustments in the methodology that the Council would like Staff to look at, he would be happy to look into that, but that there are some developers asking about this. McMillan stated to her understanding it is the parcel on the far west that potentially could be developed in the near future.