8.f)2) Gammelgarden Sewer Connection Meeting Date: 10/18/2011
Agenda Item: �� � ��
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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
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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
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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