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8.f)2) Gammelgarden Sewer Connection Meeting Date: 10/18/2011 Agenda Item: �� � �� <J City Council Agenda Report City of Scandia 14727 209`�' St. North Scandia, MN 550�3 (651) 433-2274 Action Requested: Review letter sent to Gammelgarden Museum in December, 2010. Deadline/Timeline: N/A Background: • The city's records indicate that Gammelgarden Museum never paid a connection fee for the City's Uptown sewer system. The previous City Council directed that a connection fee be calculated based on the fee paid last year for the Edward Jones building, and that the museum be requested to pay a fee unless they could demonstrate that the city's records were incorrect. • Gammelgarden has never responded to the letter. • The Council, while discussing the Uptown system at its October 11, 2011 work session meeting, asked staff to provide a copy of the letter for discussion at the regular Council meeting. Recommendation: I recommend that the Council discuss the letter, and give direction for additional communications with Gammelgarden. Attachments/ • Letter from the City of Scandia to Gammelgarden Museum dated Materials provided: December 30, 2010 Contact(s): Prepared by: Anne Hurlburt, Administrator (Gammelg$rden uptown connection fee) Page 1 of 1 10/12/11 �B � ;� �� � i r �� � i r s � December 30,2010 Kevin Nickelson, President Gammelgarden Museum 20880 Olinda Trail N. Scandia, Mimiesota 55073 Dear Kevin: This letter is in follow-up to the discussion at the December 21, 2010 Scandia City Council meeting regarding the Museum's connection to the City's "Uptown" sewer system. For your rc;c�rds and,eference, I'm en�losing a copy ofthe report they discussed. Thanks for being at the me�tin�. "1'he eiire��tic�r. recei�e�t frott�iL� CUu.ncil was to calculate a proposed connection fee for the ;�uset7zii has�d o:�ti3� ;'�e J�aid for�he Edward Jones building,which was connected to the system in 2010. We were to take into account relative quantity of water used and the remaining life of the system when the connection occurred. We were also to consider 25%of the fee paid to be a fixed or base hook-up fee, and the remainder to be based on water use/sewage volume generated. Using these parameters, I have calculated a proposed connection fee of$5,606.25. I will explain n�y calculation as fcllows: 'I'he cunnection fee paid for the Edward Jones building was $500 in 2010. The fee assumed that the system still had about 25% of its life left wtien the connection was made. Therefore; if the system would have had 100%of its useful life, the fee would have been$2,000. The base hook- up fee would have been$500, or 25%of the total amount. The remainder($1,500)would have been based on volume. Since the metered water use for the building has been an average of 12 gallons per day,this works out to $125 per gallon. The City's records of Gammelgarden's water meter readings show an average water use of 65 gallons per da}� (based on meter readings over about a 5-year period.) The volume-based fee would therefore be $8,125 �65 gal. X $125.) Adding the base hook-up fee of$500 brings the � 1-#727 209'''' St. N . Scanaia. Mini�esota 5�U7; ���onc (G��) a��-22."'-� Fax (<Slj -1,+-�112 htip�/�����v��,•.ci.scandia.inn.us December 30, 2010 Page 2 total to $8,625. When the museum was hooked up in 2003,the system had about 65%of its useful life remaining: $8,625 X 65%_ $5,606.25, the proposed fee. Please let me know if you have any questions about the proposed fee. As you know,this is subject to negotiation, and the Council may be willing to consider an installment plan if requested by the Museum. You indicated that Gammelgarden staff is searching the Museum's records to determine if there was a connection fee paid at the time of construction. The City has already conducted a thorough records search and found no evidence of a payment, or for that matter of any zoning or building permit approvals. This is curious, as at the time Washington CounTy would have been involved in the zoning approvals but there were also no records in their files (which were transferred to the City after the incorporation.) So, if you do locate records of any of these matters, we would appreciate the opportunity to review them and make copies of items that should be permanent records of the City of Scandia. I look forward to your response to the city's proposal. Please give me a call at 651 433-2274 at any time if you wish to discuss it. Sincerely, ��%�'�� -� Anne Hurlburt City Administrator cc: Mayor and City Council Kevin Nickelson(e-mail) Enc. Calculation of Gammelgarden Sewer Access Charge 12/29/2010 Avg Gal/Day Edward Jones Building 12 Gammelgarden 65 Edward Jones Fee $500.00 Total Fee Paid 25% System Life Remaining $2,000.00 Fee adjusted to 100%of System Life 259�0 $500.00 Base Hook-up Fee 759�0 $1,500.00 Fee Based on Volume 12 Avg Gal/Day $125.00 Fee per Gallon Gammelgarden Fee $125.00 Fee per Gallon 65 Avg Gal/Day $8,125.00 Fee Based on Volume $500.00 Base Hook-up Fee $8,625.00 Total 65% System Life Remaining $5,606.25 Proposed Fee