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situation. <br />DISCUSSION - <br />IT Project Layout - The original project layout that had been <br />developed in 1983 was the basis for an update done by the <br />Engineer during the summer of 1988. Following discussions during <br />the fall of 1988 he has a revised layout to minimize as much as <br />possible the cost of service. This revision does provide the <br />necessary neighborhood hookups in the two primary areas of <br />concern, that being Stubbs Bay Northweaw and Stubbs Bay Northeast <br />with availability of the project to abutting properties in each <br />of the areas. The project does leave open the option as <br />decisions are made of including "neighborhood hookups" in the <br />other three areas at an additional cost provided the neighbors <br />are in agreement to undertake that. Those construction costs can <br />either be done individually or as part of the overall project. <br />As noted above the original layout was looking at costs of $12- <br />18,000 per unit. The intent of this is to reduce these down to a <br />range of $10-15,000. <br />2. Financing Costs - In addition to attempting to minimize the <br />cost per unit for this, staff has looked at various ways of <br />financing it. As you may recall in previous memos the primary <br />means were: <br />- A''.sessment <br />- Connection Charge <br />- User Fees <br />- Reserve Charge <br />It may be appropriate that the actual bonding be done in 1989 to <br />avoid issues related to arbitrage limits. <br />A. Assessments - The obvious concern of the City is to avoid a <br />situation in assessing the entire pro-*ect as was done in the last <br />sewer project. In order to avoid this a four pronged approach is <br />proposed. These include: <br />1. Market rate appraisal by an accredited appraiser. <br />2. Having a specific percentage of residents submit a <br />petition prior to bids and specs indicating their <br />willingness to pay the estimated costs. <br />3. Use of an Administrative Law Judge to allow the <br />"appeals" prior to the ordering of the project in order <br />to fix an assessment on each property. <br />4. Requiring assessment waivers be signed by a specif, <br />minimum percentage of residents prior to ordering * <br />project. <br />B. Connection Charges - Connection charges are ones that the City <br />can impose for a reasonable amount over and above assessments