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Sanitary Sewer Interceptor FeesMEMORANDUM TO: FROM: August12,2003 The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager SUBJECT: Limiting Sanitary Sewer Interceptor Fees In the 1990s the City Council directed the City Engineering Division to extend intemeptor sewers to service newly-annexed property without City sanitary sewer. Under this direction, City Engineering extended sewers and determined a connection charge based on the cost of the project and the number of developable acres within the drainage basins. Over the last several years South Fork sanitary sewer was extended just south of North Cascade Road to the Dubuque Metropolitan Landfill. The County Farm sanitary sewer was extended from Nordstrom's to a location just west of Seippel Road. The Granger Creek sewer was extended from Catfish Creek to Dubuque's south side Technology Park. Assistant City Engineer Gus Psihoyos is recommending City Council approval to limit the maximum charge for interceptor fees for newly-constructed interceptor sewers for Granger Creek, South Fork Phase II and the County Farm at no more than $500 per acre. While this does not cover the full cost, it is believed that a higher rate might inhibit development. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gus Psihoyos, Assistant City Engineer Mike Koch, Public Works Director MEMORANDUM August 11, 2003 TO: FROM: SUBJECT: Michael C. Van Milligen, City Manager Gus Psihoyos, Assistant City Engineer ~.~ Limiting Sanitary Sewer Interceptor Fees The following is a proposal to limit the maximum charge for interceptor fees for newly- constructed interceptor sewers. BACKGROUND In the 1990s the City Council directed City Engineering Division to extend interceptor sewers to service newly-annexed property without City sanitary sewer. Under this direction, City Engineering extended sewers and determined a connection charge based on the cost of the project and the number of developable acres within the drainage basins. Over the last several years South Fork sanitary sewer was extended just south of North Cascade Road to the Dubuque Metropolitan Landfill. The County Farm sanitary sewer was extended from Nordstrom's to a location just west of Seippel Road. The Granger Creek sewer was extended from Catfish Creek to Dubuque's south side Technology Park. The Granger Creek sanitary and the County Farm sanitary sewer interceptor rates have not been determined. The process to calculate these connection fees is very timely due to the many properties located within each basin. During the course of determining the County Farm sanitary sewer interceptor fees, it was proposed that the connection fee for this basin could be as much as $970 per acre. Historic rates for interceptor fees have ranged from $465.41 to $602.90. Charging a fee of $970 per acre could inhibit future development to newly-annexed areas; therefore, the connection charge for interceptor sewers should be limited to a maximum of $500.00 per acre, the fee established for the South Fork Interceptor Sewer - Phase I. The shortfall would be made up by usage fees derived from increased development in these basins. RECOMMENDATION I recommend that the connection charge for interceptor fees for Granger Creek, South Fork Phase II, and the County Farm should be established at no more than $500.00 per acre. cc: Michael A. Koch, Public Works Director