8.1. SR 12-17-2012 - Laserfiche WebLink

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[:) tor River City of Elk River Item Number REQUEST FOR COUNCIL ACTION 5.11. Agenda Section Meeting Date Prepared by Engineering August 21,2006 Terry Maurer,City Engineer Item Description Reviewed by Highland Road Sanitary Sewer and Water Assessment Introduction The Highland Road Project is proceeding and will be substantially complete this fall. As you are aware,sanitary sewer and water are part of the construction. We have received a number of inquiries about the cost to hook up to the City sanitary sewer and water system. Discussion We have reviewed the costs for sanitary sewer installation and the costs for the modifications to the existing water system with the current bid. In addition,we have taken a look at the investment the Elk River Municipal Utilities have made in the trunk line connecting the two high pressure zones via the Highland Road corridor. We have measured that against the number of properties that could be served by it,keeping in mind that some of the properties will be able to be subdivided in the future with sanitary sewer and water available. Also,there is a larger area included in the City's Urban Service District which will be someday be served through these facilities. With this analysis as a backdrop,we are recommending that existing properties that want to hook up to sanitary sewer and water be charged a$15,000 assessment. This would be in addition to the already levied street assessment. Properties wanting to hook to sanitary sewer and water would have to sign a Petition and Waiver,accepting the$15,000 assessment. The assessment would be charged against their property at 5.5%interest,which was the interest rate used on the street assessment. In an effort to recover the City's time value of the money expended to place these facilities in 2006,we are recommending that each subsequent year,the$15,000 assessment value be increased by 3%. This is the same inflation factor that has been utilized for several years in the trunk sewer and water assessment rates. In addition to accepting the assessment,anyone wishing to hook up to sewer and water will need to pay a Sewer Availability Charge(SAC)and Water Availability Charge(WAC),as well as physically make the connection from the property line to their home. It would be staff's recommendation that once the City Council has had an opportunity to discuss and review this issue,that an informational mailing detailing all of these issues be sent to each of the property owners along Highland Road.