Sewer Water Connection Memo_Gaffron

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,, MEMORANDLTM C.Work Session 4-14-09 To: Mayor & Council Bill Wells, City Administrator From: Mike Gaffron, Asst. City Administrator Date: April 13, 2009 Subject: Sewer and Water Connection Charges: Dunn, 20 Brown Road South & McCuskey, 130 Brown Road South SYNOPSIS As part of the municipal sanitary sewer constructed by the developer of the Creekside In Orono residential subdivision, sewer stubs were install�d to serve the properties of Mary Dunn (20 Brown South, 2 stubs) and David McCuskey (130 Brown Road South, 1 stub) at their individual requests. To our knowledge, neither Dunn nar McCuskey paid the developer (Henry Lazniarz) for these future connection points. However, Dunn may have concluded that her stubs were at no cost, in partial payment for the road easement she granted Lazniarz. We don't know the specifics of her agreement with Lazniarz. The sewer system serving Creekside (7 lots) as well as Dunn & McCuskey, discharges to the Long Lake sewer system at Apple Glen Road. Lazniarz paid Long Lake the Long Lake sewer and water connection charges of$5800 per unit for each of his 7 lots, but did not pay such connection charges for the Dunn & McCuskey stubs. Although the Creekside development is not yet complete or ready for construction of new homes, Mrs. Dunn is requesting that Orono provide her with the dollar amount of the � connection charges she must pay to connect to the sewer and water. In order to establish an appropriate amount for such charges, staff has come up with a formula that seems fair and reasonable, but requires Council input. The formula takes into account: 1) the estimated per unit cos�to the developer of installing the sewer and water systems and access to them; 2) the additional costs of connection fees that Long Lake will expect to collect from Orono for these additional connections. There are a number of questions that need to be answered in relation to this issue: L What connection fees will Long Lake will be chargin� for these connections? Given the lack of a joint S&W Agreement with Long Lake after 5 years of negotiations, what is the best way to approach this without causing an undesirable outcome? 2. Does Council concur with staff regarding the method being used to determine a fair connection charge, or the applicability of the charge in this or similar situations? 3. What are the expectations of Dunn regarding these fees? Additional background on the following pages may provide some insight as to why this is not as simple as we'd like it to be.