6.2. SR 12-10-2012 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 6.2 AGENDA SECTION MEETING DATE PREPARED BY Administration December 10, 2012 Justin Femrite,P.E., City Engineer ITEM DESCRIPTION REVIEWED By Review Private Utility Connections and Financing Cal Portner, City Administrator REVIEWED BY ACTION REQUESTED 1) Discuss draft ordinance amendment to allow financing of costs, for private properties with sanitary sewer and water services available, to make the connection as required by city ordinance. 2) Discuss draft ordinance amendments for requiring sewer and water connections to be made at time of failure or sale of property. BACKGROUND/DISCUSSION Financing of Private Sewer and Water Costs Ordinance 12-06 was adopted on April 2, 2012. The ordinance allows property owners already connected to the city sewer and water system the option to have costs associated with repairs or modifications to their privatly-owned service lines assessed against their properties. The adoption of the ordinance was instrumental in successful completion of the River Line Sewer Abandonment project. It provided a needed tool to help those affected property owners cover the costs associated with the required service modifications at their properties. To build on the success of this ordinance, staff is asking the City Council to consider expanding the use of this ordinance. Staff recommends modifying this ordinance to allow for the program to be used by property owners who have public services available to their property,but are still on private systems. Expansion would assist owners required by ordinance to connect to sewer and water with the costs of the connections and associated fees. The recommendation is a result of recent cases where the city-levied sewer and water fees are far in excess of what property owners are able to afford or finance on their own. The city and the utilities benefit by having properties on city services and will improve the potential value of residential properties. The following shows an example of the costs associated with connection of one property to city services, which is currently on private septic and well. The property owner is responsible for the following costs: $17,915 Trunk/Lateral assessment -This fee covers the cost of the city-installed sewer and water mains and services to the property line. Current policy developed around this charge would allow for this cost to be assessed to the property over a term of 15 years at an interest rate of 5.5%. P a w E A E a 9 Y NA UR