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<br />Activity Estimated Cost <br />Engineering and Construction Services $ 9,820 <br />Geotechnical Engineering (Soil Borings) $ 3,500 <br />Legal Support and Staff Time $ 1,000 <br />Sewer Main Installation $ 55,000 (GMH Quote +30%) <br />TOTAL $ 69,320 <br /> <br />d. Funding Mechanism. It is City policy that the cost of sewer extensions be primarily borne by <br />the property owners served. Past practices include: <br /> <br />(1). Assessing all of the property owners serviced by the sewer improvement normally through <br />a voluntary assessment / payment. In this case that cost would be approximately $23,000 <br />per property. To date only one of the three property owners has indicated a willingness to <br />be assessed for what would be their portion of the project. <br /> <br />(2). Assessing those who are connecting at the time of completion and then charging a <br />connection fee to any property owner that connect in the future. In this case the City bears <br />the cost of the installation for those residents not initially connecting. In this case the cost <br />born by the City would be approximately $ 46,000. If and when residents did connect <br />they would pay their share plus interest. <br /> <br />(3). The project is completed by a private entity and then accepted by the City upon <br />completion. This is the method normally used for developments where the cost is then <br />passed on as part of the lot purchase price or when the extension will service one <br />additional home. <br /> <br />e. Impact on Cities Sewer Density Calculation. Although all of the properties are included in <br />the MUSA Met Council guidelines call for extensions to service area with a minimum of 3 <br />connections per acre. This extension would provide potential service to 3 connections in a 17.4 <br />Acres or 0.17 connection per acre which is well below the standard. <br /> <br />4. Way Forward. If the council approves of the project and authorizes Bolton and Menk to initiate <br />engineering the follow steps would follow: <br />Engineering feasibility and Design (Surveying, Soils Testing) <br />Easement preparation <br />Assessment Process <br />Permit process (MPCA, MCES, MCWD) <br />Solicitation of Bids <br />Award <br />Construction <br /> <br />5. Staff Recommendation. After consideration of the proposed project, it is my recommendation <br />that the City not undertake the sewer extension. If in the future any of the properties in the service <br />area are deemed to have failing septic systems with no alternatives or if all of the properties <br />petitioned the City the project should be reconsidered. At present time the costs of the project <br />appear to outweigh the benefits. <br /> <br /> <br /> <br />COUNCIL ACTION REQUESTED: