Creekside Sewer Water Serv Agreement

Home Browse Search

MEMORANDIJM C. Worl:Session 4-14-09 To: Mavor& Council Bill Wells, City Administrator From: Mike Gaffron, Asst. City Administrator Date: April li, ?009 Subject: Sewer and Water Connection Charaes: Dunn, 20 Brown Road South& McCuskey, 130 Brown Road South SYNOPSIS As part of the municipal sanitary sewer constructed by the developer of the Creekside In Orono residential subdivision, sewer stubs were installed to serve the properties of Mary Durm (20 Brown South, 2 stubs) and David McCuskey (130 Brown Road South, 1 stub) at their individual requests. To our knowledge, neither Dunn nor McCuskey paid the developer (Henry Lazniarz) for these future connection points. However, Dunn may have concluded that her stubs were at no cost, in partial payment for the road easement she granted Lazniarz. We don't know the specifics of her agreement with Lazniarz. The sewer system serving Creekside (7 lots) as well as Dunn & McCuskey, discharges to the Lona Lake sewer system at Apple Glen Road. Lazniarz paid Lon� Lake the LonQ Lake sewer and water connection char�es of$�800 per unit for each of his 7 lots, but did not pay such connection char�es for the Dunn &: McCuskey stubs. Althouah the Creekside development is not yet complete or ready for construction of new homes�Mrs. Dunn is requestiny that Orono provide her with the dollar amount of the connection char�es she must pay to connect to the sewer and ��ater. In order to establish an appropriate amount for such charaes, staff has come up with a formula that seems fair and reasonable, but requires Council input. The formula takes into account: 1) the estimated per unit cost to the developer of installin� the sewer and w�ater sy�stems and access to them; 2) the additional costs of connection fees that Lona Lake �vill expect to collect from Orono for these additional connections. � There are a number of questions that need to be ans�vered in relation to this issue: l. What connection fees will Lona Lake will be charaina for these connections? Given the lack of a joint S&W Agreement with Lon� Lake after � vears of negotiations, what is the best wa5� to approach this without causin� an undesirable outcome? 2. Does Council concur with staff reaarding the method bein� used to determine a fair connection char�e, or the applicabilit� of the charge iii this or similar situations? 3. What are the expectations of Durul reQardin�these fees? Additional back�round on the followin� pages may provide some insight as to why this is not as simple as we'd like it to be.