08-24-1998 Council Packet - Laserfiche WebLink

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COUNCIL MESTINQ REQUEST FOR COUNCIL ACTION AUG 2 4 1998 C <J\ or ORONO DATE: August 24, 1998 ITEM NO, Department Approval: Name Gregory A. Gappa Title Director of Public Services Administrator Reviewed:Agenda Section: Engineer's Report Item Description: Schedule Public Hearing for Orono Orchards Sanitary Sewer Project A preliminary feasibility study was prepared for this project and was presented to the residents at a neighborhood meeting on May 14th. All of the septic systems in this area are nonconforming to the 3-foot separation rule, with several systems failing because of surface discharges. This area is predominately 1/4 to 1/2 acre lot sizes with very limited possibilities for septic system replacements. Approximately one half of the homes could require holding tanks if sewer is not available. In the analysis for the recent MUSA line expansions, the Orono Orchards neighborhood was listed as the second priority after North Long Lake for municipal sewer. This project has 23 units and the feasibility study estimated assessment is $23,690 per unit. The majority of the residents have submitted a petition requesting that this project move forward. They have indicated that the project costs seem quite prohibitive and are interested in pursuing a possible City subsidy for this project. Below is a tabulation of the assessed value of the homes in the neighborhood from the Hennepin County tax records. •nilLess than $150, $150,000 to $200, $200,000 to $300, Greater than $300, mil mil mil 4 homes 6 homes 6 homes 6 homes 19% 27% 27% 27% The assessment of the full cost of the project could cause financial difficulty to at least the 10 lowest valued properties. Before holding the public hearing, the Council may want to determine if it would consider City funding of some of the costs, and if so, what level of funding would be reasonable. Staff hasn't discussed with the neighborhood the cost level at which they would support a project. If the Council would like to move the project forward, the next step is to formally order and accept the feasibility study and then schedule a public hearing. The ideal schedule for 1999 construction would be to complete the plans and specifications before the end of this year and then bid the project early this winter. Early bidding of projects usually results in better bid prices as contractors are interested in securing work for the upcoming construction season.