Creekside Sewer Water Serv Agreement

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Dunn & McCuskey S�C W Charges Analysis April 13, 2009 Page 4 Possible Dirnn Ezpectations. There is potentiall�° an expectation by Dunn that no City of Orono connection fee will be due for her connections. Remember that Lazniarz had to purchase an easement from Dunn for access to the Creekside Development over a portion of Dunn's propertv (Tract G, RLS 3�2). In correspondence betw•een MPG and Dunn's attornev Jeremy Steiner in 2004, Steiner asked that the Developers Agreement include language stating that 1) two sewer and water stubs will be installed alon� Dunn's lot line and that 2) Dunn will not be assessed for City w°ater and sewer. My response was: l. The preliminary plat approval resolution acknowledges N'DD's (Henry Lazniarz's) intent to provide sewer and water service to the Dunn properh�, but does not require that WDD provide such service. Assuming that WDD agrees to `the installation of two water and two sewer service stubs to serve the Dunn pro�ert��' becoming a requirement, the City will not object to this being added as a condition of the Developer's Agreement. 2. In terms of assessment for the installation, the Cit3� of Orono will require that WDD bears the entire cost of construction of all improvements including sewer, water, road and utilities. WDD will upon acceptance b�� the Cit�-, turn over the sewer and water facilities to the City of Orono, and they will become part of the Orono utility system, to be operated b3�Orono. However, we are assumin; that the City of Long Lake will charge WDD (or wil} charge Orono) some form of `per unit connection charge' for the privilege of connecting into the Long Lake sewer and water systems. Our expectation, pending completion of a formal agreement between the two cities, is that WDD will pay Long Lake directh� for the connection charges for his seven units, but I have no knowledge of whether he «�ill �ay the connection charge(s) for Dunn. I don't kno�� when Dunn will make use of the two units. I don't know whether Long Lake will expect up-front payment of a connection char;e for all potential units (we think that there might be as man�� as 11 total units over the long term, including WDD's seven, Dunn's ri��o, and one each for the properties at 130 and 140 Brown Road), or whether Lone Lake will onl�� collect no�� for the 7 initial units and collect for future units as the�� are connected. And I don't know whether Long Lake would bill those in the future to the individual users or would eapect that Orono pa�� whatever connection charge is due (in w�hich case Orono would bill or assess this to the individual property beine connected at that time). It is clear that all the connection charge issues must be understood and conclusions reached before the Developer's Agreement is finalizecl. Greg Gappa, Orono's Director of Pubiic Se��ices, is workinb ��ith Lonb Lake to finafize a sewer and water agreement. Until the connection charge issue is resolved, I do not believe Orono can commit that "the Dunn property- will not be assessed for the Cit�- ��ater and sanitary sewer improvements for the Creel:side in Orono development". Ho�ve��er, if you conclude that `installation of the improvements' is a separate issue from `assessment for any connection charges that Long Lake may impose on Dunn or the Cit�- of Orono', then I believe�ti�e can craft fanguage that aives�-ou the desired confirmation. Langua�e clarifyin� the assessment issues ultimately was not included in the Developers A�reement The Final Plat Resolution conditions as well as the Developers A�reement contain only� the followin�� writh reQard to sewer and water s��stems: