In order to obtain City water and sanitary sewer service for Western Sky Subdivision, the developer, Cal Kunkel, constructed public water and sanitary sewer mains across his property's frontage and within South 44th Street West. Sharptail Subdivision is located adjacent to Western Sky Subdivision on the east side of South 44th Street West. Since Sharptail Subdivision does not desire connection to the city services at the present time, the Developer of Western Sky Subdivision paid for the entire cost of the project. At such time that properties within Sharptail Subdivision request city water and/or sanitary sewer service from South 44th Street West, the Developer of Western Sky Subdivision desires to be reimbursed a portion of his construction costs. Under the above-described conditions, established Public Works Department policy calls for reimbursement to be accomplished through the attached Reimbursement Agreement.

The Council may:

• Accept the reimbursement agreement; or
• Do not accept the reimbursement agreement. Rejecting the agreement would be contrary to the City's policy in which the Public Works Department collects reimbursement fees paid to the City and are accumulated and paid to the developer annually on each November 1st following acceptance of the constructed utilities.  Payments are limited to reimbursement fees paid to the City on or before the tenth anniversary of the date of acceptance.  

Based on the cost of the final pay estimate for P-645, the Public Works Department has determined that half of the cost attributable to the utilities portion of the contract, $87,383.50, is eligible to be recovered by the developer.  Since this fee is paid by adjacent properties, the City has no financial obligation with a Reimbursement Agreement.     

Staff recommends that the City Council authorize the Mayor to execute the attached Reimbursement Agreement.