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Home My WebLink About6.l. EvermoorPayment Method for Trunk Water and Sewer FeesCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: June 20, 2000 AGENDA ITEM: Evermoor Payment Method for Trunk AGENDA SECTION: Water and Sewer Fees Consent PREPARED BY: Dan Fick, City Engineer /Public Works Director AGEN .6 L ATTACHMENTS: None APPROVED BY: With the adoption of the Comprehensive Utility Rate Study in December 1999, the collection of trunk sanitary sewer and watermain area charges was initiated. The development of those fees was based on anticipated expenditures for the City trunk system and was balanced against revenues from development and other sources. The trunk fees were established at $3,300 /acre and $900 /acre for watermain and sanitary sewer, respectively. The report specified that all zoning districts were responsible for an equal share of the trunk system costs. Therefore, these costs were deemed to be allocated on an acreage basis. The revenue model used an average residential absorption of three units per acre when both single and multiple family units are considered. The City established this density in the Comprehensive Plan as a target for this type of development. The development of the Evermoor subdivision has been occurring for the past two years. Consequently, when the developer initially requested development cost information, the City did not have the watermain and sanitary sewer trunk area charges in place. When the developer was informed of the subsequent addition of sanitary sewer and water trunk charges, they expressed a hardship, not with the amount, but with the time frame in which the fees were to be collected. They have therefore requested that the trunk fees (watermain and sanitary sewer) be charged on a unit basis (3 units per acre), at the current year's rate at the time the building permit is received. The trunk fee program was intended to be collected up front from the developer, however in this case, the developer has agreed to property sales and the additional cost is not recoverable from the buyers. The developer will provide the City with a letter of understanding that these fees will be collected from the individual builders and will also notify all of his builders. The Utility Commission discussed this issue at the June 12, 2000 meeting and a motion approving this policy modification was passed allowing the Evermoor project trunk sanitary sewer and watermain charges to be collected on a unit basis at the time the building permit is received. RECOMMENDED ACTION: MOTION TO APPROVE THE DESCRIBED MODIFICATION TO THE TRUNK SANITARY SEWER AND WATERMAIN CHARGE PAYMENT POLICY FOR THE EVERMOOR DEVELOPMENT AS PER UTILITY COMMISSION RECOMMENDATION. COUNCIL ACTION: