2004-24 AMENDING CITY CODE - CHAPTER 74 - SEWER CONNECTIONS

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. �� • . COUNCIL COMMUNICATION FORM Engineering & Infrastructure Memorandum NO. 2004-22 i March 4, 2004 �I TO: Honorable Mayor Osborne and City Council FROM: Steve Garman, City Manager � Stephen Swanson,P.E.,Director of Engineering & Infrastructure� SUBJECT: Chapter 74, Sewer Connections SUMMARY RECOMMENDATION: City staff is recommending that the City Council approve an amendment to Chapter 74, Sewer Connections, of the City Code to revise the method by which sewer connection charges are paid to the City by property owners through installment payments. BACKGROUND: The City Council at its study session of March 1, 2004, agreed with staffs recommendation that Chapter 74, Section 4 of Chapter Code be amended to revise the installment payment plan for property owners to pay the City's sewer connection charge. The basic reason for the revisions is to lessen the upfront costs that a property owner currently has in connecting to a City sewer. These costs include the payment to the City for its sewer connection charge and the payment to a private contractor for the installation of a sewer service and the abandonment of a private sewage treatment system. This can become burdensome for a property owner depending on their financial situation. The proposed revisions to the installment payment plan may partially reduce the objections of some property owners to connect to a City sewer for reasons of cost. However, it is reasonable to expect that owners will continue to object, especially in instances when the connection charge may cost considerably more than the continued operation or replacement of their private system whether in fact or in the mind of an owner. The revised plan may cost the property owner more because the repayment period has been extended from 6 years up to as long as 15 years. This has been partially offset by the reduction in the interest rate based on the current Wall Street Journal prime rate. The table following this memorandum summarizes the proposed revisions to the existing City Code and upfront cost savings to property owners. It is recommended by City staff that the proposed revisions to Chapter 74, Section 4 be approved by the City Council. POTENTIAL OBJECTION: There are no known objectors.