The council discussed whether to allow properties outside Dundee’s city limits to connect to the city’s sewer and water system, responding to a request from a property owner who wants to tie a new home into city sewer across the road from the Morris building.

City staff said Oregon law permits the city to contract with properties outside city limits for water and sewer service. Staff described options used elsewhere: require connection to both water and sewer (to avoid unbilled sewer service), require construction to city standards, require an agreement to annex when the city is ready, and charge a higher rate for outside‑city service. Staff said the city currently bills sewer through the water bill and that offering sewer without water complicates billing and enforcement.

Councilors raised several practical considerations:
- Whether the city would be responsible for building new pipeline or whether the property owner would construct a lateral to existing city pipe. Staff said owners would be responsible for paying to connect from their property to the nearest city main where feasible.
- Annexation timing and legal requirements: staff and councilors discussed examples from other cities that require annexation with service connections (Portland example cited generally) and noted annexation is usually area‑based rather than lot‑by‑lot. A councilor suggested requiring owners who connect to agree in writing to annex at a future date and to construct lines to city standards.
- System capacity: several councilors said the city’s sewer treatment work remains under stress and adding new connections, even a single household, could increase load; some councilors preferred to delay allowing new out‑of‑city connections until treatment upgrades are resolved.

Councilors also discussed administrative workload for staff to draft a connection policy, with estimates that developing rules and procedures could take several months of staff time. The council gave direction, not a formal vote: staff should contact the property owner to determine the owner’s timeline and hardship status, assess proximity to city mains and whether a pump station would be needed, and prepare draft guidelines modeled on the city’s water service rules.

Staff will return with proposed language and options that could include (1) requiring both water and sewer connections, (2) requiring construction to city standards, (3) requiring a written annexation agreement or commitment to annex when the city is ready, and (4) establishing fees or surcharges for outside‑city service. No final decision to permit the specific connection was made at the meeting.