With the construction of the new middle school in the Heights, the construction of Barrett Road fronting the school property is necessary.  This includes the construction of water, storm drain, street, curb and gutter, and sidewalk improvements.  The School District is responsible for 100% of the cost of the water main and 50% of the cost of the street and storm drain improvements.  Typically the property owners on the other side of the street are responsible for the other half of the improvements.  In this case, none of the property owners are addressed off of Barrett Road.  In this case, the City typically pays the cost of the improvements for non-addressed property owners.  $350,000 in Gas Tax was budgeted in FY '15 and approved in the CIP for these improvements.  The School District will pay 100% of the costs and the City will reimburse the School District for their costs.  Attached is a compensation agreement for these costs.  The City's portion of the project is estimated to be $294,280.83.

The Council may:

• Accept the compensation agreement which would be in keeping with typical policy and the approved CIP; or
• Not accept the compensation agreement which will adversely affect this project.

Based on the lowest bid price for the installation of the improvements, it has been determined that the eligible cost recovery by the School District is $294,280.83. 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.