Laserfiche WebLink
MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, July 13, 2009 <br />7:00 o’clock p.m. <br />_____________________________________________________________________________________ <br /> <br />PAGE 9 <br />(Myrtlewood Utility Improvements Extension Project Assessment, Continued) <br /> <br />Murphy moved, Bremer seconded, to adopt RESOLUTION NO. 5851, a Resolution Adopting the <br />Public Improvement and Special Assessment Agreement for 850 Wayzata Boulevard and to adopt <br />RESOLUTION NO. 5852, a Resolution Adopting the Public Improvement and Special Assessment <br />Agreement for 875 Wayzata Boulevard. VOTE: Ayes 5, Nays 0. <br /> <br /> <br />9. CHANGE ORDER NO. 1 – MYRTLEWOOD UTILITY IMPROVEMENTS PROJECT <br /> <br />McMillan moved, Franchot seconded, to approve Change Order No. 1 for the Myrtlewood Utility <br />Improvements Project to GM Contracting, Inc., in the amount of $52,266.26 for a total revised <br />contract amount of $268,040.29, subject to the City’s receipt of executed agreements with the <br />property owners at 850 and 875 Wayzata Boulevard West accepting responsibility for all costs <br />associated with Change Order No 1 including legal, engineering and administrative costs. VOTE: <br />Ayes 5, Nays 0. <br /> <br /> <br />10. REQUEST FOR ASSESSMENT OF SEWER CONNECTIONS <br /> <br />Gaffron stated Mike Kuruvilla from the Montessori School has requested that he be allowed to pay for the <br />City’s connection costs over a period of 15 years. The Orono Montesorri School could be charged <br />anywhere from three to seven units based on Metropolitan SAC charges and there is a potential that the <br />Montesorri School will be charged between $15,000 to $20,000 for those one time fees at the time of <br />connection. Mr. Kuruvilla is requesting that there be an assessment of those over 15 years. <br /> <br />Gaffron stated the City Council may want to take the following factors into consideration: <br /> <br />1. The City would be obligated to pay the connection charges to Wayzata at the time the property is <br /> connected to water or sewer. <br /> <br />2. The exact number of SAC units has not been determined by Metropolitan Council. <br /> <br />3. While specially assessing the connection charges would be somewhat unusual, it is also unusual <br /> that we are retrofitting existing developed properties with sewer and water that is subject to <br /> another city’s connection charges. This causes somewhat of a double-whammy on the property <br /> owner who is paying for the costs of constructing the project as well as for the use of another <br /> City’s existing system, plus his actual costs of hiring a contractor to make the physical <br /> connections. <br /> <br />4. The up-front costs to Orono are not excessive and the special assessment interest rate being <br /> charged is favorable to the property owner as well as to the City. <br /> <br />5. The Metropolitan Council Environmental Services SAC Charge of $2,000 per unit would not be <br /> specially assessed. From Staff’s perspective that is setting a dangerous precedent and the City <br /> has not allowed the MCES SAC charges to become part of a special assessment in any past <br /> project. <br /> <br /> <br />Item #02 - CC Agenda - 07/27/09 <br />Approval of Council Minutes 07/13/09 <br />[Page 9 of 12]