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<br />these systems. In Sherburne County, they felt it was a good way to increase tax value but they <br />were concerned about how it could be managed. They did not want to have homeowner's <br />associations doing that management. He noted that with the high price of land, people want a <br />more efficient way to develop their properties. He stated that he gets a number of telephone calls <br />from people interested in building a home in clustered wastewater systems. They are also <br />interested in how it can be managed. <br /> <br />Mr. Morton reviewed the difference with cluster development and how it provides <br />neighborhoods, smaller lot sizes, and preserves open spaces. He then presented a graph <br />depicting different types of zoning and lot sizes, noting that cluster zoning provides much more <br />open space for parks and trails. <br /> <br />Mr. Morton stated that Connexus WaterWay Systems does not accept every system that comes <br />their way because it may not be in the best interest if their owners and the risks may be greater <br />liabilities than they want to take on. They also have to assure proper installation, construction, <br />and management of the system. <br /> <br />Mr. Morton explained that a farmer may be ready to retire, want to develop, and ask Connexus to <br />take over the process. In that situation, they act as the liaison, bring in different engineering <br />firms, and help with the construction process to select contractors. At that point, they transfer <br />the wastewater to Connexus. Mr. Morton explained that Connexus does not pay for the <br />infrastructure, that system is just like installation of the streets. It is installed and the developer <br />recoups the costs in the sale of the lots. If the property owner already has an engineer or <br />developer, they send the design to two other firms for review. <br /> <br />Mr. Morton reviewed the steps they take to determine the City's ordinances, select an engineer <br />with MPCA experience, soil work, system analysis on the design of treatment that would work <br />best for the soils, financial review of the project to assure it makes sense, and then preliminary <br />and final design review process with MPCA. He explained that if there are 20 homes or more, <br />MPCA review is required, after that it goes out for construction. During the process the legal <br />work defines, in the declaration of covenants, the responsibilities of the homeowners and <br />Connexus. <br /> <br />Mr. Morton presented the management options that can be considered and managerial <br />components. He explained that with MPCA permitted systems and the standards of design, you <br />almost need 20 homes or greater to make the numbers work out. Otherwise, with the capital <br />investment, the monthly fees can be cost prohibitive. Once it is an MPCA permitted project, it <br />must abide by those regulations. <br /> <br />Mr. Morton presented financial components to collect fees through billing and fiscal <br />responsibilities. He explained that most times the developer can find an operator and can <br />establish a rate design, but the component most often times missed is capital replacement. He <br />explained when a system starts to fail in the future, money is needed in the reserve account to <br />take care of that. <br /> <br />City Council Work Session / April 4, 2006 <br />Page 2 of 19 <br />