01-0282R

RESOLUTION AUTHORIZING AN AGREEMENT WITH THE CITY OF HERMANTOWN FOR THE EQUITABLE DISTRIBUTION OF SEWER USER FEES IN THE HAINES ROAD AREA.

BY COUNCILOR FENA:

        RESOLVED, that the proper city officials are hereby authorized and directed to execute an agreement with the city of Hermantown authorizing the reimbursement to Hermantown of a portion of the sewer user charges collected by the city of Duluth from the Pine Grove and Gramercy Park apartment complexes; said agreement attached hereto and filed as Public Document No. ______________.



STATEMENT OF PURPOSE:  In 1988, the cities of Duluth and Hermantown entered into an agreement with St. Louis county to have a new sanitary sewer installed in Haines Road (which is the boundary between the cities) as a part of a St. Louis county highway project. Under the terms of the agreement, Duluth was to own, maintain, and collect monthly user fees for the sewer. The sewer actually flowed into a sewer system that was metered as a Hermantown sewer with Hermantown paying the WLSSD service charges. In 1988, the wastewater flow from the light commercial and single family residential uses was looked at as inconsequential. Since then, however, Pine Grove and Gramercy Park apartment complexes have been constructed along the sewer line. The city of Duluth, under Chapter 43 of the City Code and the 1988 contract, collects all the monthly sewer user fees from these properties, but Hermantown pays the WLSSD service fee for these flows. The user fee Duluth collects covers both the WLSSD fee and an additional sum for sewer maintenance. This agreement corrects the inequity in the situation by reimbursing Hermantown for the WLSSD charges for the sewage flows from the two apartment complexes.