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C. Proposed mains are located within <br />the paved roadway. <br />D. Engineering, administrative fees of <br />25%. <br />E. Exclusion of abutting properties <br />served by project mains e.g. Art <br />Center. <br />TABLE 1 <br />C. 1. This increases road replacement <br />costs and pipe installation costs. <br />2. This is unnecessary in many cases <br />since the 16 ft wide (average) <br />roads lie on 40-60 foot wide <br />rights -of -way. <br />3. The reasons presented for this <br />plan is that sewer accesses are <br />"easier to find in the winter" and <br />"will not require acquisition of <br />easements." <br />D. 1. Other cities, eg. Victoria pay 15% <br />fees. <br />E. 1. Raises per unit costs <br />2. MUS.A line immaterial, ref. Old <br />Crystal Bay Road. <br />F. Other issues: 12 dead end pipes F. 1. We need a qualified review to <br />(is this excessive?); double piping reduce costs. <br />in front of Council Chambers (Is <br />this necessary?); accuracy of cost <br />estimate (recent bidding has exceeded <br />engineering estimates.) <br />3. Farrell Appraisal "Theory" <br />While substantial issue may be taken with the absolute numbers provided <br />and his choice of comparable properties is at the very least seriously <br />flawed, Mr. Farrell has used a "Theory" to arrive at his conclusions <br />that has no basis in fact, reason, or real estate appraisal practice. <br />";he value conclusion estimate for the subject system is based on _theory <br />that a property with a private system would sell in the lowest range <br />t►*. estimates. Conversely, a residence with a public sanitary, sY6ttm <br />and'new road ways sell in the higher end of the range." (Emphasa6,,� <br />added.) <br />In practice he concludes that if his three questionable private system <br />comparable properties have "values" of, for example, S50,000, S52,000 <br />and S54,000 an the public system comparable properties have "values" cf <br />S56,000, $58,000, and S60,000; the before and after values are S50,000 <br />and S60,000. This is fallacious logic, has no basis in fact or practice <br />and is a self -admitted "theory." <br />An equally reasonahle (or unreasonable) theory would be to conclude; <br />based on housing demand in Orono both with and without public systems <br />that the private system property would sell in the highest range because <br />it is located near to Lake Minnetonka, the School District, and City of <br />Orono, with its excellent septic systcm administration, while the public <br />property would sell in the lowest part of the range since it really <br />offers no practical additional benefit. In practice, properties in the <br />11')sowered parts of Orono; the Farm at Long Lake, Green Trees, Webber <br />Hills, the developnents along Old Crystal gay Road and Willow Drive, <br />