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fees. Ultimately, general fund monies might be needed to make up the difference and over a period of time the road maintenance funds could be reduced and not recaptured. • Additional incentives that had been studied included a waiver of the Towns $7,950 0 connection fee for developers and partners and/or an offer of a 50% discount for residents that connect within a one year period. Chiu explained that this would result in a reduction of new funds for the sewer fund and could necessitate an increase in sewer usage charges. Staff had reviewed other possible incentives to encourage early participation for sewer connections and was recommending the following: 1) a discount or waiver of some encroachment permit fees for property owners that connect at the time of main installation if work was to be done by the same contractor responsible for the installation of the main; 2) reduce the design submittal requirements which would reduce the owners' design fee if they used the same engineer- the design could be addressed by "as built drawings"; and, 3) staff could assist with public outreach notifying property owners that a connection at the time of the main installation could minimize construction costs for their lateral installation if the work was done by the contractor installing the main. The recommendations would provide a cost savings to residents by taking advantage of construction efficiencies. Staff had also investigated potential financing options for sewer installations. Chiu proceeded with a PowerPoint presentation on the formation of Mello-Roos Community Facilities Districts. Pursuant to the Mello-Roos Community Facilities Act of 1982, local • governments, special districts, and developers are authorized to create Community Facilities Districts to fund public improvements. Chiu reviewed the formation process and advantages of using a Community Facilities District for sewer expansion projects that would allow expansion through future annexations to the CF District on an as needed basis. Boundaries for an Assessment District are generally fixed once assessments are confirmed. Chiu reviewed a sewer map of the Town with Council and noted that only slightly more than 50% of town properties were connected to sewer. In response to Council inquires, he explained that the costs to extend the sewer infrastructure throughout Town was an unknown. The purpose of the discussion was to assess the Council's interest in forming a CFD. Council discussion ensued. There was a consensus that Council would like to continue the exploration of all incentives and financing options for sewers. It was noted that the goal of the current Ad Hoc Committee on Sewers of which Councilmember Larsen was the council liaison was to maximize sewer access in Town. Mayor Pro Tem Warshawsky commented that he believed it was critical to have a complete understanding of specific costs before the formation of any district that would levy assessments on residents. 1 Council provided direction to staff to continue the investigation process and return with recommendations. 5 City Council Regular Meeting Minutes May 14,2009