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Ji <br />Elk River <br />Municip al Utilitie s <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />June 6, 2007 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: Residential Connection Fees <br />phone: 763.441.2020 <br />Fax: 763.441.8089 <br />We have two residential developments under construction in Otsego that require an underground <br />electric system. The developer of one of these developments feels our connect charges are too <br />high. Our connect charges are as follows. <br />Developer Cost -Water & Sewer Lots $420/Living Unit <br />Developer Cost - No Water or Sewer Lots $520/Living Unit <br />Builder Cost $800/Living Unit <br />Between the developer and builder, we will receive $1220 to $1320 per living unit. Depending <br />upon how fast the development is built out, it may take years to collect the $800 from the <br />builder. <br />In an effort to satisfy ourselves and the developer that our fees are appropriate, we did an <br />estimate of costs vs. connect fees for both of these developments. The results are as follows. <br />Development Name Wild Flower Mississippi Cove <br />Sewer & Water Yes No <br />Number of Living Units <br />Single Family 112 18 <br />Townhouses 70 0 <br />Re-do existing 0 3 <br />ERMU Distribution and Se condary Services in <br />Development... $300,000 $35,500 <br />Cost per living unit $1648/ea $1972/ea <br />Revenue $1220/ea $1320/ea <br />