Minutes - Public Works Committee - 07/16/2002

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Councilmember Hendriksen stated someone will always have just replaced their septic system and may not want to incur that cost. However, Principal City Engineer Olson comes at it from the side sewer and water is good and they should bring to the people, however, not everyone shares that opinion. Mayor Gamec noted the total cost of the project is $319,210, which comes out to about $40,000 per property owner. Principal City Engineer Olson explained that is not the way they proposed it to the residents. They proposed the City install sewer and water and the residents decide if and when they want to hook up. There is a cost to waiting to hook up, as the schedule of rates and fees will go up every year by inflation. The report is written that each one of these people would be responsible for a portion of street and curb costs, the assessment for each one of the eight individual lots would be just under $7,000. Councilmember Anderson asked if the individual would not be paying $40,000 because the storm water utility would be paying a portion, of the cost. Principal City Engineer Olson explained there have been lot combinations of the original 24 lots that were platted, each one had three owners. Some of them combined their lots to put a garage on it, etc. So some of them only have two lots. Assessments can be done by a front foot basis or by a per lot basis. Staff's feeling was that each one of these people had three lots and to do it on a per lot basis and charge some two and some three was not as equitable as to divide the cost amongst the eight property owners. Councilmember Anderson clarified the residents could get sewer and water in the street for $6,973. Principal City Engineer Olson responded in the affirmative and explained if they decided to hook up the scheduled rates and fees currently shows that the lateral charges are $3,118 for water hook up and the trunk fee is $562. The sewer hook up for lateral charge is $6,939 and the trunk fee is $1,252. The total charge for lateral and trunk charges they would pay upon hook up is $10,057. That does not include SAC and WAC charges. These people all have a storm drainage system, staff is proposing the storm drainage system be modified and enhanced to bring it up to standards that they impose on all the new developments. There is almost $40,000 to come out of the storm drainage utility. The cost for construction of water and sanitary sewer is a little over $100,000 and the street construction is $83,000. Councilmember Hendriksen stated they would be taking exorbitant amounts of money from the funds, which could only go on for a short time, and they could never roll this out across the City. Principal City Engineer Olson responded that would be an issue for discussion as to how far they would go with this. Obviously it would be based on the availability of funds. Public Works Committee/July 16, 2002 Page 7 of 28