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6.2. SR 08-13-2012City of Elk -�- River REQUEST FOR ACTION TO ITEM NUMBER Mayor and City Council 6.2 AGENDA SECTION MEETING DATE PREPARED BY Work Session August 13, 2012 ustin Femrite, P.E., City Engineer ITEM DESCRIPTION REVIEWED By Private Utility Service Connection Options John Cunningham, Fire Chief REVIEWED BY Cal Portner, City Administrator ACTION REQUESTED Discuss options to get private properties with city services currently available connected to the public sewer and water systems. BACKGROUND /DISCUSSION At the April 2, 2012, meeting, the Council approved an ordinance to allow existing users of the public sewer system the ability to have repairs to their service lines, which are deemed a public safety hazard according to our policy, assessed against their property. The ordinance was adopted to assist property owners with the costs of unplanned/ emergency service line repairs. Since its adoption, five property owners have already taken advantage of the new program. The ordinance was intended to assist property owners that are already connected to the public sewer system. Staff was further directed to seek options to connect all properties to available public utility services. There are currently about 90 properties that have both sewer and water available but are not connected. There are also about 105 properties that are connected to either sewer or water but not both. Sections 78 -21 and 78 -97(d) of the Elk River City Code require all properties with access to sewer and water services to be connected to the public systems within 2 -years of said utility availability. There are about 195 properties in violation of this ordinance. After an option is chosen, the code should also be amended to specifically state that any property required to be connected to water and sewer which seeks to connect to one utility shall be required to connect to both utilities at the same time. Staff has developed the following list of options to bring these properties into compliance. Option 1: City Installation Section 78 -22 of the City Code authorizes the city, after 90 days written notice, to make connections and assess the cost to the property as a special assessment. Parallel language in Sec. 78- 97(d), authorizes the city to also make sewer connections and assess the costs. The city would send notices to the unconnected properties and if the connections are not made within 90 days, the city would make the connections for the property owners and assess the costs. This option raises a number of issues, including potential liability related to the city entering private property, digging N Y trenches to install water and sewer lines, and punching holes through basement walls to connect the lines. It is very likely that enforcement of the code, per this option, would not be received favorably by any of the property owners. A better alternative would be to allow the property owner to contract for the work and have the cost assessed to the property. This option was suggested earlier this year when Council authorized the assessment of repair costs. The Council declined to amend the code to allow initial connection costs to be assessed. However, this issue could, perhaps, be reconsidered as a better alternative than the city hiring contractors to make private utility connections. Option 2: Charge /Levy Availability and User Charges to Unconnected Properties Section 78 -42 of the City Code authorizes the city to charge unconnected properties which are required to be connected the applicable water availability/ connection charge and a monthly user charge in an amount established by the City Council or the Public Utilities Commission. There is no parallel provision for sewer connections. We recommend adopting parallel language authorizing sewer availability/ connection charges and user fees charged to unconnected properties which are required to be connected to sewer. The action steps for Option 2 would be: (a) Amend the City Code to authorize sewer charges be levied to unconnected properties; (b) send a letter to all unconnected properties required to be connected advising them that water and sewer availability/ connection charges and assumed usage charges will be levied beginning in 90 days; and (c) levy and collect the charges and fees. Option 3: Combination of Options 1 and 2 A combined approach would be to amend the City Code to authorize sewer availability and user charges to unconnected properties and once that is in place: (a) Send a letter to all unconnected properties required to be connected advising them that the applicable water and sewer connection charges will be levied beginning 90 days from the date of the letter unless arrangements are made within that time period to connect the property to water and sewer; and (b) if an ordinance amendment is adopted to allow the assessment of costs for private water and sewer connections, the letter could offer that alternative; and, (c) the letter could go on to state that if the connection is not made the city will make the connection and assess the costs to the property. Option 4: Utility Connection on Property Sale Approve a code amendment mandating that any property required to be connected to public utilities is connected prior to sale of the property. To make such an ordinance effective, the city would record a Notice of the Ordinance against all unconnected properties requiring connections so buyers and lenders are on notice of the requirement and the connections are therefore made at the time of sale. Option 5: Continue Past Practice Eliminate the section of the code requiring properties to connect to sewer and water within two years of service availability. Those not connected would remain on their own septic or well until one or both fail. At that time, they would be required to connect to public sewer and water. This option requires the least amount of enforcement and staff time. N Y FINANCIAL IMPACT There is no financial impact associated with the discussion of this item. ATTACHMENTS None Action Motion by Second by Vote Follow Up N