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HomeMy WebLinkAbout9A Outstanding Utility Connections Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: AUGUST 21, 2017 AGENDA #: 9A PREPARED BY: LARRY POPPLER, ASSISTANT PUBLIC WORKS DIRECTOR / CITY ENGINEER PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A REPORT REGARDING OUTSTANDING CONNECTIONS TO MUNICIPAL WATER AND SEWER PURSUANT TO CITY CODE DISCUSSION: Introduction Three properties on have not yet connected to City sewer and water services associated with the Mushtown Road Improvement Project and the Welcome Avenue Improvement Project. Some of these properties are requesting more time while one property may wish to enter into an agreement with the City for connection. History In May of 2014, the City completed the extension of water and sewer to 14 properties on Welcome Avenue. In September of 2015 the City completed the extension of water and sewer to 41 properties in the Mushtown Road, Maple Lane, and Panama Avenue area. Since the extension of municipal services, all other individual properties have connected, are vacant, or provide compliance certifications for their septic systems. City Code Section 705 provides that properties must connect to municipal services no longer than one year of its availability unless the septic system is compliant with current standards. This extension may be renewed every 3 years as long as the system remains compliant. Current Circumstances Our records show that there are 2 properties with the Mushtown Road area and 1 property on Welcome Avenue which have not yet connected to municipal services nor have provided compliance certifications for their septic systems. 17151 Maple Lane – The property owner has expressed that cash flow has been the issue with connection and may desire to enter into an agreement for connection. Through the agreement, the City would pay the costs for the connection and would assess the property for the work over a five-year period. The agreement includes language which the owner consents to the assessment amounts. The assessment amount includes payment amounts for staff and legal time associated in creating and administering 2 the agreement. The City entered into a similar agreement for a property owner on Shoreline Boulevard. 17079 Mushtown Road – This property has very recently changed ownership since the original project was completed. The new owners are planning for connection this fall. 16860 Welcome Avenue – This is a commercial property which will involve multiple SAC charges which adds complication. An agreement may be necessary for connection. Through the agreement, the City would pay the costs for the connection and would assess the property for the work over a five-year period. The agreement includes language which the owner consents to the assessment amounts. The assessment amount includes payment amounts for staff and legal time associated in creating and administering the agreement. The City entered into a similar agreement for a property owner on Shoreline Boulevard. There are several options to proceed with these properties. 1. Attempt to negotiate an agreement for connection 2. Provide a further extension for connection 3. Issue citations or file a civil suit against property owners because they are not in compliance with City Code. Conclusion Staff recommend that the City Council work with property owners on an agreement for connection as previously established on a similar project. The agreement would come before the City Council for approval. ISSUES: Projects which include extension of sewer and water to existing neighborhoods involve an enormous amount of City Staff time in coordinating the connection of water and sewer services. Each property has their own unique circumstances and challenges. If the City does not desire to enter into the agreement but wishes that these properties connect, citations could be issued and Scott County District Court could order the property owner to connect. Another option would be to ask the District Court to allow the City to install the improvements and assess the improvements. The process for both these options could take significant time before the work is physically performed. FINANCIAL IMPACT: If the City Council enters into agreements for connection costs for the administration would be included to cover staff time. Funding from the General Fund would be utilized to pay for the connection and would be reimbursed through the assessments over a five-year period. ALTERNATIVES: 1. Direct staff to contact the 3 remaining properties which have not yet connected and return to the city council with negotiated agreements within 120 days. 3 2. Direct staff to provide an extension for connections for 120 days (remaining construction season). 3. Direct staff to immediately issue citations or file a civil suit against properties which have not yet connected. 4. Take no action and direct staff to research other alternatives. RECOMMENDED MOTION: A motion and a second for approval of alternative #1