Town of Sundre officials are proposing an amendment to the water and wastewater connection fee bylaw, after hearing numerous concerns from developers since it was passed in October.
The bylaw establishes a connection fee of $15,000 for residential parcels and $25,000 for commercial regardless of who pays to initially install the service in the area. The amendment however, proposes that the fee only be paid when the Town of Sundre pays to install the services.
“The concerns were, where a developer was installing his own services he would also have to pay a connection fee,” said Erin O'Neill, the town's manager of planning and development.
“So the intent of the connection fee was, where the town put in the services they'd pay to connect so we could gain some money back from the money we paid out to put the services in,” she explained.
“But in the typical development a developer puts in his own water and wastewater services so he shouldn't have to pay to connect when he has paid to install the services.”
The bylaw is also being amended so the fee only applies to properties within town limits, as well as Tall Timber.
“When we did the connection fee bylaw, it was anybody that connected to services, whether they paid to install them or not, was going to have to pay that connection fee. So the amendment is just to when the town installs the services they only pay then.”
Council passed first reading of the amendment to the bylaw during the Feb. 18 meeting. A public hearing is scheduled for March 17.
Coun. Myron Thompson said he was happy with the amendment and recommended second reading, which was passed.
He then suggested third reading, but administration officials explained that if third reading were passed there would be no opportunity for public input.
Thompson was then made aware that a public hearing cannot take place after second reading has been passed.
Coun. Verna McFadden rescinded the motion that Thompson recommended, so officials could still go through with a public hearing. It was passed, but Thompson was opposed.
The proposed amendment to the bylaw is consistent with the process in other municipalities, according to O'Neill.
“Upon the completion and passing of the Offsite Levy Bylaw in April 2014, administration will be determining a more appropriate connection fee for county properties,” she reported to council.
The bylaw states that each property owner is responsible for any costs associated with the connection from the service to the property line and from the property line to their building.
When the current bylaw was passed, it was noted that the fee is reflective of the current costs associated with the services which include administration, contingency, engineering and GST.
As well, if a lot is subdivided after the service has been provided, the new lot will require a new service to be installed and the connection fee will apply to the newly titled lot.
A memorandum of agreement was signed in the fall by the town and Mountain View County for the option of county residents to connect. This is why administration officials felt it was necessary to create a bylaw that established connection fees for the entire town.
