Creekside Sewer Water Serv Agreement

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Dunn & McCuske�• ScCW Charges Analysis April 13,2009 Page? BACKGROtiND Fox Rirlge Sewer Connection Option. As part of the Fo� Rid�e sewer project in ?000, a pressure sewer line �vas installed alon;the west side of Brown Road from Foa Rid�e Road to W atertow�n Road. Property owners alon� the west side of Brown Road were asked if they wanted to participate in the project. A few did, most did not. Some of those who did not were provided with a stub access point alon�� that pressure line for future connection, with the idea that the�- would pay the "�oin� rate" connection char�e at the time they connected. That rate has climbed to $21,140 per unit for 2009 for any new connections not previously assessed. This is the rate that Dunn or McCuskey would pa�� for a sewer connection to the Fox Rid�e svstem if the Creekside subdivision had not happened. Properties on the east side of Bro�rn Road were not pro��ided ��ith connection stubs; althou�h they were offered the opportunity to connect to the Fox Ridge project, they were also advised that a bravity line servin� the property east of them may be in the offin�, which would allow for future �ravity connection. To serve either the Dunn property or the McCuskey property from the Brown Road pressure line would require boring service lines under Brown Road and installation of individual "E-1" pump stations for each property. The total cost to the homeowner for connection charQes, SAC charae, permits, and actual pump station installation and connection to the sewer, would potentially exceed $30,000. Creekside Connection Option. The Dunn and iVlcCuske�- properties were subsequently� each provided connection stubs to the Creekside aravity sewer system. That �ravit�� system was completely paid for b�� the developer, and it dischar�es directly� to the Lona Lake sewer � s}�stem at the south end of Apple Glen Road at the north end of the subdivision. Municipal water is also provided b�- a parallel line from Long Lake. The Development Agreement between the City of Orono and Creekside in Orono LLC establishes that "upon completion b� the developer and acceptance b� the Cit�� of Orono, the sanitary se��er and water facilities within Outlot B and w�ithin the 30' utilit�r easement of Lot 7, shall become the propert� of the Cit�� of Orono and become part of the Cit� of Orono utilit�� svstem. to be operated and maintained b��the Cit�� of Orono." The Development A�reement also stated that "all applicable Cit}� of Lon� Lal:e connection fees and charges associated with the sewer and water s}�stem servina the development shall be paid to Lon� Lake by the Developer. Developer shall be responsible for an�� charges to the City� of Orono from the City of Lon� Lake in relation to the pro�isioil of municipal sewer and water from Lon� Lake." � On Februar�� 14, 200� Tom Goodrum on behalf of Creekside in Orono LLC paid the City of Lon� Lake ��ia check r108�� the amount of $37,800 for the seven sew�er R. w�ater units for the seven new lots within the Plat of Creekside in Orono, based on the follo��-inR rates: Water: Tap fee per unit �1600. � Hookup fee per unit $1100. Sewer: Tap fee per hookup $1�00. Hookup fee per unit $1200. Total S&:�' Fees per unit ��800.