In order to obtain sanitary sewer service the developer, Copper Ridge Development Corp., extended 892 feet of 18" sanitary sewer main in Rimrock Road between Cove Creek Parkway and West Copper Ridge Loop.  The extension was not a planned project in the CIP, so the developer will pay the entire cost of the sanitary sewer installation.  The City's Rules and Regulations for Water and Sanitary Sewer include compensation to developers for the entire cost of constructing mains over 12" 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 Council may:

• Accept the compensation agreement; or
• 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 main, it has been determined that the eligible cost recovery by the developer is $73,999.00.  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 the Council authorize the Mayor to execute the attached compensation agreement. Compensation shall be based on the final sanitary sewer utility costs.