11-28-2016 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 28, 2016 7:00 o'clock p.m. 3. 2017 FEE SCHEDULE — ORDINANCE NO. 6697 Replacement of residential fixture or appliance fee has been removed. Olson stated this fee was rarely collected because homeowners generally do not come in for a permit when replacing appliances. Other changes being recommended by Staff include the following: Elimination of the current water and sewer connection charge. That section will be replaced with new language contained on Pages 17-18. This is being done to simplify the fee schedule and remove fees that are rarely if ever charged. 2. The fence viewer fee will also be eliminated as well as the fee for street or traffic signs since that is an outdated fee that is not being collected. The Wayzata connection fees for water and sewer are being adjusted to reflect Wayzata's 2017 connection fee. 4. A simplified connection fee for new water and sewer connections into an existing utility line is being proposed. The amount will be calculated using the net infrastructure value divided by the current number of connections. The water meter and horn fees are proposed to be changed to "current cost" instead of an identified amount since the cost of the meters is not known until after the 1 st of the year. 6. A non-resident rate of 15 percent to 60 percent is being proposed for golf rates. The rational for this is based on the fact that Orono taxpayers are subsidizing the course through their property taxes. Staff is requesting the City Council make a decision on whether there should be a resident fee and a non-resident fee for the golf rates. Council Member Walsh asked if. the City had more maintenance and infrastructure needs than had been planned on or whether the money will be added to the City's reserves. Olson indicated in 2008, when the original rate study was performed, the City was not attempting to cover depreciation of the infrastructure. At that time a decision was made to cover the depreciation. Olson noted the City bonded for the new well but did not assess for it. That cost is paid for out of the water fund revenues. Olson stated when he started at Orono in 1997, the City actually did a special assessment to fund half of the project in Navarre. Olson stated it is a philosophical discussion, and that these types of projects can easily exceed $1 million. The decision that needs to be made is whether the City wants to pay for them out of the fund or assess the residents to pay for the projects. Walsh stated the City is making sure that they are covering the depreciation or replacement costs. Olson indicated that is correct. Page 4 of 11