5.11. SR 08-21-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
En · eerin Au st 21, 2006
Item Description
HigWand Road Sanitaty Sewer and Water Assessment
Item Number
Introduction
The Highland Road Project is proceeding and will be substantially complete this fall. As you are
aware, sanitaty sewer and water are part of the construction. We have received a number of
inquiries about the cost to hook up to the City sanitaty sewer and water system.
Discussion
We have reviewed the costs for sanitaty sewer installation and the costs for the modifications to
the existing water system with the current bid. In addition, we have taken a look at the
investment the Elk River Mnnicipal Utilities have made in the trunk line connecting the two high
pressure zones via the Highland Road corridor. We have measured that against the number of
properties that could be served by it, keeping in mind that some of the properties will be able to
be subdivided in the future with sanitaty sewer and water available. Also, there is a larger area
included in the City's Urban Service District which will be someday be served through these
facilities.
With this analysis as a backdrop, we are recommending that existing properties that want to hook
up to sanitaty sewer and water be charged a $15,000 assessment. This would be in addition to the
already levied street assessment. Properties wanting to hook to sanitaty sewer and water would
have to sign a Petition and Waiver, accepting the $15,000 assessment. The assessment would be
charged against their property at 5.50/0 interest, which was the interest rate used on the street
assessment. In an effort to recover the City's time value of the money expended to place these
facilities in 2006, we are recommending that each subsequent year, the $15,000 assessment value
be increased by 30/0. This is the same inflation factor that has been utilized for several years in the
trunk sewer and water assessment rates.
In addition to accepting the assessment, anyone wishing to hook up to sewer and water will need
to pay a Sewer Availability Charge (SAC) and Water Availability Charge \WAC), as well as
physically make the connection from the property line to their home.
It would be staff's recommendation that once the City Council has had an opportunity to discuss
and review this issue, that an informational mailing detailing all of these issues be sent to each of
the property owners along Highland Road.
Financial Impact
There is no financial impact as the City Council and Elk River Municipal Utilities have made the
decision to expend the monies to extend sanitary sewer and modify the existing water systems
along Highland Road. Any financial impact would be in a positive direction if residents decide to
hook up and agree to begin paying an assessment for the sanitary sewer and water system.
Attachments - None
Action Requested
Discussion of this issue at a Council level and direction to staff to send an informational mailing
to Highland Road residents.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\EngineerImprovProj\2006 Improvement Projects\Highland Road\08 21 06 cc memo. doc