07-13-2009 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 13, 2009 7:00 o'clock p.m. ( Myrtlewood Utility Improvements Extension Project Assessment, Continued) Murphy moved, Bremer seconded, to adopt RESOLUTION NO. 5851, a Resolution Adopting the Public Improvement and Special Assessment Agreement for 850 Wayzata Boulevard and to adopt RESOLUTION NO. 5852, a Resolution Adopting the Public Improvement and Special Assessment Agreement for 875 Wayzata Boulevard. VOTE: Ayes 5, Nays 0. 9. CHANGE ORDER NO. 1— MYRTLEWOOD UTILITY IMPROVEMENTS PROJECT McMillan moved, Franchot seconded, to approve Change Order No. 1 for the Myrtlewood Utility Improvements Project to GM Contracting, Inc., in the amount of $52,266.26 for a total revised contract amount of $268,040.29, subject to the City's receipt of executed agreements with the property owners at 850 and 875 Wayzata Boulevard West accepting responsibility for all costs associated with Change Order No 1 including legal, engineering and administrative costs. VOTE: Ayes 5, Nays 0. 10. REQUEST FOR ASSESSMENT OF SEWER CONNECTIONS Gaffron stated Mike Kuruvilla from the Montessori School has requested that he be allowed to pay for the City's connection costs over a period of 15 years. The Orono Montesorri School could be charged anywhere from three to seven units based on Metropolitan SAC charges and there is a potential that the Montesorri School will be charged between $15,000 to $20,000 for those one time fees at the time of connection. Mr. Kuruvilla is requesting that there be an assessment of those over 15 years. Gaffron stated the City Council may want to take the following factors into consideration: The City would be obligated to pay the connection charges to Wayzata at the time the property is connected to water or sewer. 2. The exact number of SAC units has not been determined by Metropolitan Council. While specially assessing the connection charges would be somewhat unusual, it is also unusual that we are retrofitting existing developed properties with sewer and water that is subject to another city's connection charges. This causes somewhat of a double - whammy on the property owner who is paying for the costs of constructing the project as well as for the use of another City's existing system, plus his actual costs of hiring a contractor to make the physical connections. 4. The up -front costs to Orono are not excessive and the special assessment interest rate being charged is favorable to the property owner as well as to the City. 5. The Metropolitan Council Environmental Services SAC Charge of $2,000 per unit would not be specially assessed. From Staff's perspective that is setting a dangerous precedent and the City has not allowed the MCES SAC charges to become part of a special assessment in any past • project. PAGE 9