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Louisville City Council Meeting October 2, 2001 Page 4 beneficial to the homeowner and the City not to have a separate septic system located in an enclave within the City. Howard stated that Mr. Mundelein did not answer his question of how the granting of this sewer service would benefit the citizens of the City of Louisville. Mundelein stated that the City would benefit by not having a septic system within an enclave in the City. Davidson stated that he recalled there was an ordinance on water and sewer in place, which requires that anyone who receives water and sewer services be annexed when eligible. Davidson asked Phare if, by that ordinance, the City is prevented from granting services to someone who is eligible for annexation. City Attorney, Sam Light, stated that the ordinance refers to outside water service, and that this is a unique situation in that the request is only for sewer service. Light stated that the standard in Title 16, relating to City water requests, requires that requests for out of city water services not be granted unless the property is not eligible for annexation, and other conditions are met. Mayer stated that he had spoken with the applicant in the past on this matter. He stated that it needs to be understood, that everyone on Council had to pay for the streets and related infrastructure when their homes were built. Mayer stated that the applicant is requesting that they be exempted based on the large costs, unlike the rest of the City's residents. Mayer stated that granting such a request would be very unfair to the citizens, and would set a precedent for the other enclaves located within the City. Davidson recalled a similar situation many years ago which involving an enclave that wanted to annex, and for which the City negotiated the fees. Davidson stated that providing services is a means to encourage annexation, and if the services are merely given for free, there is no longer the need to annex. Davidson stated that whoever occupies this particular home already benefits from the use of City services such as the police department and recreation center simply based on their address within the City. He recommended that staff negotiate fees with the new homeowners. Mayer agreed that there should be no service expansion fee unless there were plans for a major expansion; however there may be a contractual agreement with Treehaven Developers. Phare stated that in addition to the tap fees, there would be a recovery fee back to the Treehaven Developers, regardless of whether it is in City or out of City services. Phare noted that Paul Wood, Director of Planning reminded him of a similar situation a year ago, with the Dart Annexation, in which a $10,000 impact fee was negotiated. Mayer stated that he would recommend a negotiated fee. 4