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<br />.. <br />."HIEES <br /> <br />MEMORANDUM <br /> <br />DATE: December 3, 2008 <br /> <br />TO: Honorable Mayor and City Council <br />Ron Moorse, City Administrator <br /> <br />FROM: Sue Iverson, Finance Director <br /> <br />SUBJECT: Water and Sewer Availability and Connection Charges <br /> <br />Back2round: <br />The City of Arden Hills currently does not charge an availability charges for new water and sewer users. <br />These new users typically are allowed to connect into the existing system with out a fee except a $300 <br />sewer connection fee. Typically cities charge a fee to new users for accessing the system and are <br />collected with the building permit fees. These fees are structured to cover the cost of infrastructure <br />replacement and maintenance as current users have already paid for the system. <br /> <br />Discussion: <br />During rate study discussions, the Council expressed interest in establishing such a fee. When TCAAP <br />develops an in depth study will be performed for that area, but staff strongly feels that the current <br />undeveloped property in the City needs to be addressed. We have asked our financial consultants to take <br />a look at the surrounding areas to see what fees are being charge in conjunction with our rate study. <br /> <br />Attached is their report for Council review. Since there is a wide range of charges, staff feels that a <br />conservative approach similar to Shoreview would be best to establish the fees at this time. Further <br />analysis can be done when the TCAAP analysis is done. <br /> <br />Recommended Action: <br />Motion to adopt the Water Connection Fee at $300 per unit, Water Availability Fee at $800 per acre, <br />Sewer Connection Fee at $300 per unit, and Sewer Availability Fee at $800 per acre. <br /> <br />Attachment <br />