04/28/1997 Council Minutes - Laserfiche WebLink

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• COUNCIL MINUTES APRIL 28, 1997 and the Surface Water Management charge for a lot of 10,800 square feet is $1,004 for a total of $4,275. Mr. Powell reviewed the anticipated time table indicating the project could be ordered on July 14, 1997, advertisement for bids on August 25, 1997, opening of bids on September 19, 1997, award of contract on September 22, 1997, completion of final street restoration by May 15, 1998, with the assessment hearing held in October of 1998. Council Member Neal stated a resident asked if they would be charged if they do not want to connect to this improvement. Mr. Ahrens explained without the MUSA you must demonstrate failure of the septic system to connect. If utilities and MUSA are in place, it is at the property owner's discretion of when to connect. However, some mortgage companies do require connection during the sale of the property. Per the City's current ordinance, connection to one utility requires connection to the other. Mr. Ahrens advised the residents can maintain connection to their water well for irrigation purposes. Council Member Kuether stated her impression that this policy had been changed to not require connection to both sanitary sewer and watermain. Mr. Ahrens stated while this had been discussed by the Council, the policy was not formally changed. Council Member Neal inquired regarding the term for payment. Mr. Ahrens explained assessments are proposed to be assessed over a 15 -year term and assuming an interest rate of 7.5%, the annual assessment amount is approximately $1,530 per year. Council Member Kuether asked if MUSA can be extended to allow residents to sell their extra lot to cover the assessment costs on both lots. Mr. Ahrens stated this is an option if MUSA is extended into this area. Council Member Kuether asked if the 30% added for engineering administration and contingency is an estimate. Mr. Powell explained it is common practice to add 30% to the estimate. Mr. Powell noted one factor which will affect these properties is the location of the house and how far it is set back from the property line. He advised the cost for this connection is over and beyond the assessment to the property. Mr. Ahrens reported he did reach one contractor who indicated the cost is $16.50 per foot to install two service lines. Mr. Powell reported that water and sewer permits (about $110 each) are also required as well as a Met Council SAC charge of $900 plus $50 per year after this point in time. Mr. Ahrens reported on one property where a SAC charge was previously paid and may not have been reimbursed. If not reimbursed, he recommended the SAC charge be waived for that property. Council Member Lyden inquired regarding the time frame for MUSA extension. Mr. Ahrens estimated late 1998 or 1999. Council Member Lyden asked if the administrative fees are for in- house work. Mr. Powell stated it is mostly in-house cost for administration of the assessment, PAGE 3