Item Coversheet

*4.D.3.


Shakopee City Council
November 7, 2017


FROM:Steve Lillehaug, Public Works Director/City Engineer
TO:Mayor and Council Members
Subject:
Establish a flat sanitary sewer fee for 8600 Horizon Drive.
Policy/Action Requested:
Adopt Resolution 7935, establishing a flat sanitary sewer fee for 8600 Horizon Drive in the amount of $325 per month.
Recommendation:
Adopt Resolution 7935.
Discussion:

A lateral sanitary sewer line was recently constructed along Horizon Drive, and 8600 Horizon Drive connected to the new system. Public water service is not currently available to the property. Typically, a sanitary sewer user is billed for sewage based on their water usage, per City Code Chapter 52.06. With water service not available or metering of the water supply is impracticable, City Code allows Council to establish a flat sanitary sewer charge per month based on the estimated water usage.

 

The proposed fee of $325 per month is based on the number of Sewer Availability Charge (SAC) units due, as calculated by Metropolitan Council Environmental Services (MCES). The MCES SAC determination showed 13 SAC units due for 8600 Horizon Drive. For residential flat fee consumers, Shakopee charges a sanitary sewer rate of $25 per SAC which equals $325 per month for 8600 Horizon Drive. The flat fee will be reviewed annually and adjusted according to the current fee schedule.

 

The city has given the property owner the option of installing a water meter on their private well and the property owner is currently reviewing that option. Should the property owner opt to install a water meter in the future, the property would then be billed for sewage based on the actual water usage per the current fee schedule.

Budget Impact:
This is a new sanitary sewer account and there will be additional expenses that will be billed out and collected accordingly within the Sanitary Sewer Fund operating budget.
ATTACHMENTS:
Description
MCES SAC Review
Resolution 7935