Details of Recoupment Agreement Presented to City Council

City of Sheridan Utilities Director Dan Roberts at a recent City Council study session, presented the Council and Mayor Rich Bridger with details of a recoupment agreement for the Olive Street sanitary sewer line that was installed by SSR Construction, Inc. for the Cottonwood Subdivision. Roberts said recoupment agreements were first established in 1974 and have been used as a cost recovery mechanism for a developer that builds a water and/or sewer system that has the additional capacity and ability to serve adjacent properties outside of their own development.

Roberts said the owners of any lots or parcels of the lands adjacent to the sewer main extension, as described in the recoupment agreement that wish to tap into or extend the sewer main shall be required to pay a connection fee to the developer as outlined in schedule A of the agreement. The proportionate fee calculates to $1,975 per sewer tap, based on the total cost of $138,250 to install approximately 920 lineal feet of sewer line with 58 total residences in the Cottonwood subdivision and 12 potential adjacent landowners benefiting from the sewer extension. The agreement has a 15 year term from the date executed or until all interested property owners have connected to the services, whichever comes first. The Council is expected to formally consider the recoupment agreement at an upcoming regularly scheduled business meeting.