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Staff was not able to follow-up with Mr. Drayton until August 2 to ask what, if any, changes he was <br /> willing to consider in the agreement first presented to the City Council. <br /> Mr. Drayton commented that he was agreeable to doubling the rate of the City's Sewer User Charge <br /> rate as suggested by staff. Doubling the rate is consistent with the current City requirement for <br /> water rates to customers outside the City. This increased rate would continue until the subdivision <br /> is annexed into the City. This partially responds to the issue of the shared risk raised by Council <br /> members. Whether the amount of revenue received by the City would offset the cost of a major <br /> repair relates to time frame in which the subdivision is built out and the City's sewer charges paid. <br /> The City does have an option to terminate the agreement and may consider exercising this option in <br /> the event of a major sewer failure. Although this option exists, it is reasonable to anticipate this <br /> would be a very difficult situation for all parties involved. Whether the City would take such action <br /> is highly dependent on the circumstances at that time. <br /> The option also exists far the City to agree to allow annexation of the subdivision when and if it <br /> becomes contiguous to the City's corporate limits and the sewers have been built and maintained to <br /> City Standards. This option would require the developer and homeowners to make arrangements <br /> for any maintenance or repairs, at their expense, to the sewer. I <br /> The agreement forwarded to the City Council with this memorandum has been revised to include <br /> the increase to the City Sewer User Charge. This is the only change to the agreement. Mr. Drayton <br /> is expected to be in attendance at the City Council meeting to answer questions of the City Council. <br /> The Director of Engineering and Infrastructure, Steve Swanson, will be in attendance at the City <br /> Council meeting to answer any questions of the Council on this item. <br /> Attach: 4 <br /> cc: John Smith, Asst. City Manager for Public Services <br /> Matt Newell, City Engineer <br /> John Drayton <br />