In order to obtain sanitary sewer service, the developer, Stock Development, extended 153 feet of 18" sanitary sewer main and 1,217 feet of 15" sanitary sewer main in South 44th Street West between King Avenue West and Monad Road.  This extension was not a planned project in the CIP so the developer will pay the entire cost of the project.

The City's Rules and Regulations for Water and Sanitary Sewer include compensation to developers for the entire cost of constructing sanitary sewer mains over 12 inches in size.  As such, the developer desires to be compensated for these costs in full and the Public Works Department proposes that such compensation be accomplished through the attached agreement.  The annual budget includes $300,000 for compensation agreements.

The Council may:

•  Accept the compensation agreement; or
•  Do not accept the compensation agreement.  Rejecting the agreement would be contrary to the City's policy which compensates developers who install large diameter public mains as part of their development. 

Based on the lowest bid price for the installation of the sanitary sewer mains, it has been determined that the cost eligible to be recovered by the developer is $187,408.50.  The timing of the City's participation in the project cost is determined in conformance with the budget approved by City Council.

Staff recommends that Council authorize the Mayor to execute the attached agreement. Compensation shall be based on the final sanitary sewer utility construction costs.