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<br />Item 5.1. <br /> <br /> <br /> <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, City Administrator <br /> <br />DATE: January 11, 2010 <br /> <br />SUBJECT: Sewer Service Availability Charge – Follow-up on Calculation <br />Method <br /> <br /> <br />At a previous meeting, the Council requested that staff report back with more detailed <br />information on how surrounding cities charge for connection to the sanitary sewer system. <br />Economic Development Director Catherine Mehelich and Building Official Bob Ruprecht <br />and I met to discuss the information that they gathered from surrounding cities. We found <br />that the method varies from city to city and because of the way some cities determine the fee <br />it is impossible to make an exact comparison. For that reason, instead of providing the <br />information in this memo staff will be prepared to discuss it in detail at Monday’s meeting. <br /> <br />Another factor that comes into play in reviewing the fee charged is whether the city is using <br />the fee as we use it, and as we believe it should be used which is to fully fund treatment plant <br />expansions required due to increased flow and additional customers. Some cities may <br />subsidize those plant expansions through increased user charges or other methods; <br />therefore, the SAC should not be reviewed in isolation, but must be reviewed in a broader <br />financial picture. It appears that in the City of Elk River’s case the fee charged is appropriate <br />as it generated the funds necessary to complete the recent expansion that was required due <br />to those new customers. And, it is being accumulated to fund a future expansion driven by <br />an increase in volume. <br /> <br />Finally, as I stated earlier, we will be prepared to discuss this issue in detail and address any <br />questions the Council may have about this issue at the work session. <br /> <br />