11-10-2003 Council Minutes - Laserfiche WebLink

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ORONO CITY COUNCIL MEETING MONDAY, NOVEMBER 10, 2003 • (3. Homestead Neighborhood (Brown Road North) Sanitary Sewer Project, Continued) Mr. Schultz asked about a SAC fee. Gappa stated that it would be a one -time fee of $1,275 in addition to the assessment. The monthly sewer bill, or usage fee, would be billed quarterly and run about $90 each quarter. Mr. Greg Hanson of 776 Homestead Road stated that he understood lakefront properties were required to be on sewer by 2006. He asked if the current project wasn't approved, what would happen then. Gappa stated that by 2007 they would have to replace the septic. Because of the topography, there is not much suitable area for building new septic, and they would have to go to a mound system. The mound system would require tearing out trees and using a pump system anyway. He stated that sewer is the only long -term solution to that area's problem. Murphy stated that the total cost would be almost $20,000 after the interest was added to the assessed fee. In addition there would be the SAC fee and connection costs. He asked if the $11,570 could be paid up front. Gappa stated that people could prepay and there would always be the option to pay the balance at any point in the assessment. Sansevere asked if 6.25% interest was the going rate. Gappa stated that the City has used 6.25% interest for the last five or six projects. Sansevere stated that rates have come down recently. Gappa stated that they charge slightly more than the City borrows the • money at to cover administrative costs. He stated they could reconsider the interest rate for this project. Having announced 6.25 %, they could possibly lower it, but not raise it. • Mr. Hutter of 770 Homestead Road asked what made the septic systems non - conforming now, when they conformed three years ago. Gappa replied there was a change in the state law concerning the determination of the separation of groundwater. If they found seasonal groundwater less than 3' below the surface, a system was no longer conforming. Mr. Hutter asked why their systems had not been grandfathered in. Gappa stated that the state wanted systems fixed right away, but Orono has been pushing the deadline back. Mr. Hutter asked what the benefit would be doing it now vs. in 2007. Gappa stated that most people begin paying on the assessment right away, even though they don't hook up right away, because they need time to save up for the additional cost of hookup. Costs go up every year. Also, it would be difficult to sell a house with a non - conforming system. Kellogg stated that the City didn't force the project. Five of six property owners petitioned the City to consider the project. Mr. Rick Rice, Park Commissioner, asked if having sewer would increase the property value. Mayor Peterson stated that it would increase some, but not as much as the cost of installing sewer. 3of16