Agenda - Council - 09/22/1992 - Laserfiche WebLink

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CASE # 7 POLI~CY FOR ASSISTING INDIVIDUALS WITH HOOKUP ~ ~t2HARGES TO WATER AND SEWER UTILITIES RECEIVI~NG AVAILABILITY FROM SUBDIVISION EXTENSIONS By: Steven J. Jankowski, City Engineer Background: At the June 23, 19' water service i~ the a pro, peny out~ide City s Urban Servl themselves Will nol required to hOOk 72 City Council meeting, it was pointed out that the extension of sewer and Ramsey Meadows Addition would provide availability of municipal services to that plat. It was acknowledged that similar occurrences will be likely as the ce Area subdivisions continue to increase. Although the cost of utilities : be assessed to the parties receiving availability, such parties nonetheless are p within two years of when the utilities become available. Consequently, normal hookup thai ges would be due at the time of mandatory connection. The City Council felt it would be imP0rtant to establish a policy to assist such individuals with these charges. In the case of the RamSe~y Meadows subdivision, an existing duplex could realize a charge in the neighborhood Of $9 000. A policy for as. sistiag such individuals was discussed at the July 14, 1992 City Council meeting. At that meet'_~lg, th: Council focused discussion on the rationale for the mandatory hookup and directed Staff fO in, testigate possible alternatives to the two year period. At the August 11, 1992 meeting, Staff repbrted the summary of its discussions with the Metropolitan Council and Metropolitan iWaste Control Commission. Although the Me~'opolitan Waste Control Commission has not aggressive .y enforced its mandatory two year connection rule, the vast majority of communities wtthir, the Me~o Area are complying with this rule. Additionally, it was pointed out that the Metr0P°lita n Council would view the lack of enforcement negatively with respect to future MUSA extension v:quests. City Council then suggested the possibility of allowing a 12 month extension of ille tv!o year hookup period for individuals that had recently invested significant amounts of mogey into repairing or replacing their on-site system. With regard to this suggestion, Staff has amended its proposed policy to allow a one year extension to individuals who have replaced either the[ septic tank or drainfield within a period of 12 months prior to the sewer becoming avai~blei It is Staff's feeling that this exception is reasonable and does not subvert the overall intent of the ~andatory hookup policy. A second issue' rais[ed at the August 11, 1992 meeting regarding this policy was the interest rate which would be ch~ged. The new policy wording allows the interest rate to be set by mutual agreement batwee~ tfae property owner and the Finance Officer. In the event that a mutually agreeable interest ra!e cannot be negotiated, the interest rate will be determined by the City Council. RecommendationS: Staff recommends 6doption of the policy for assisting individuals with hookup charges to water and sewer utitifi'.es receiving availability from subdivision extensions. Reviewed byl City Engineer City Adminisn'ator CC:09/22/92 Finance Officer City Attorney