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Principal City Engineer Olson explained the $40,000 comes from the amount of $319,000 <br />divided by eight. They have never talk. ed to the people about funding any portion of a storm <br />upgrade .from assessments. They are paying storm drainage utility like anyone else. <br /> <br />Chairperson Zimmerman expressed concern that if this were to go through and one of the <br />property owners were to sell off one of their lots, the purchaser could refuse to pay the $40,000 to <br />the City. <br /> <br />Principal City Engineer Olson responded the residents could not subdivide without hooking up to <br />sewer and water. At the time sewer and water go through they can subdivide into 'three lots and <br />sell off the other lots. <br /> <br />Councilmember Hendriksen stated when plats pay into these various fees, specifically Riley <br />Estates, they as a COuncil made a decision that they would allow them to spend the amount of <br />money they contribute in sewer and water trunk fees. If it costs more than what they were <br />contributing they had to pick up the difference..Now Principal City Engineer Olson is saying <br />these residents' contribution to the storm water utility fee will be used for $250,000 in sewer and <br />trunk fees. With a fee of $25 per year, that is their contribution for roughly 1,000 years. It is <br />obvious they cannot do this in ali the developments they have across the City, and people will be <br />asking for what they do for this development. <br /> <br />Mayor Gamec stated he sees some real benefit, but this area is very unique with their drainage <br />problems. One way or another something will have to be done in this area, whether'it is storm <br />sewer, now is the time to look at it or tell the people they are stuck. It comes down to dollars. <br />He asked why the figures are determined with eight lots. <br /> <br />Principal City Engineer Olson responded economically the residents may want to sell one off and <br />they can still maintain their two lots. <br /> <br />Mayor Gamec asked if the residents could sell off one of their lots if they could maintain the <br />septic system on one lot. <br /> <br />Principal City Engineer Olson responded they would have less than the allowable size for a lot <br />without sewer. He explained there are a couple of ways to do assessment projects. One is by a <br />front foot basis. That is equitable, however, people that live on a cul-de-sac sometimes receive <br />just as much of a benefit of improvements than someone on a corner lot and vice versa. With the <br />per lot basis everyone pays per lot. However, if that is equated to this situation the people that do <br />not have combined lots are going t-o subsidize some of the additional costs to bigger lots. They <br />also did not want to do this on a per lot basis in the feasibility for 02-22. There is such a variety <br />in lot sizes that someone with a 400-foot lot frontage and someone with a 75 foot lot frontage <br />would pay the same amount, which is not as equitable. <br /> <br />Councilmember Anderson asked if they have any idea of the residential interest i n doing t his <br />project. <br /> <br />Principal City Engineer Olson responded the intention here was to discuss the issue of whether <br />the City funds the installment of City sewer and water. They did not inform all the residents, as <br />this i s not a public h earing. T hey intend t o s end feasibility reports t o property owners to be <br /> <br />-37~ <br /> <br /> <br />