Agenda - 03-03-1999 - 9c - Laserfiche WebLink

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Z OWASA's cost estimates for sewers in Chapel Igill and neighborhoods in future annexation areas total about $14 million (See Attachment B). Sewer costs for neighborhoods currently in Town limits total approximately $5.7 million. Xn terms of future annexation areas, there is no State law. which requires us to annex Say or all of the potential annexation leads and clearly no requirement to do so when it would be financially unfeasible. It is likely that many non-municipal systems in the neighborhoods wfil be able to continue with their existing systems for several years. This means that the Town would not need to have all of the potential contrsbution money on hand immediately, but could acccmulate it .over a decade oz more. Rcsnonse to the O WASA Board of I}irectors We are appreciative of the OWASA Board's request for fcedba,ck on the discussion paper on sewer assessments and for the opportunity to make suggestions. We also appreciate the amount of time and thought Board members are giving to this complex issue. Our specific recommendations . follow. Reinstate the past policy of absorbing eugineering,and Legal costs tip to the f5% and 5% limits noted above. Rationale OWASA's enginecrin~ costs for the 5 projects to which the policy was applied came to roughly 8%, well within the 15% limit; and 4% for legal costs. If OWASA continues its 15% and 5% policy fo,~ engineering and legal costs, there is the potential for approximate. parity with the Town if a 20% policy is adopted. We believe that that the OWASA Board has the airthority to make its service affordable, a service that is critical when septic systems fail and the public health andlor the cnvironmcnt is threatened. We think that accountability to the electorate is present, because Board members arc appointed by elected officials. Board members arc called upon routinely to make financial decisions, e.g. setting . fees, approving budgets . Proride preliminary cost estimates so that residents signing a petition lmow what to expect. Rationale The request for sewer is initiated by a neighborhood whose residMtC must sign a petition for that service. The petition must contain signatures from at least 50% of the property owners, the majority of whom are must likely not experiencing problems. Revising OWASA's petition form to allow a place to show as estimated cost per lot would be helpful in persuading people to sign the petition. -