Consent 1.D.
Regular City Council Meeting
- Meeting Date:
- 03/14/2016
- TITLE
- Reimbursement Agreement; W.O. 14-13, Schedule 2; Elysian School
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
In order to obtain sanitary sewer service, School District #23 (Elysian School) paid the City to extend approximately 334 feet of 8-inch public sanitary sewer main in East Lane under Schedule 2 of City W.O. 14-13, Elysian Area Water and Sanitary Sewer Extension Project. Since other property is owned on either side of East Lane adjacent to the 8-inch sewer main, School District #23 desires to be reimbursed a portion of their construction costs should either of these properties desire sewer service from the sewer main in the future. Billings City Code calls for special benefit facility reimbursements such as this 8-inch sanitary sewer main to be accomplished through reimbursement agreements.
ALTERNATIVES ANALYZED
City Council may:
- Approve the Reimbursement Agreement, or;
- Disapprove the Reimbursement Agreement. Disapproving the Agreement is not in keeping with City Ordinance and Public Works Department policy which collects reimbursement fees paid to and accumulated by the City for annual reimbursement to the constructing developer.
FINANCIAL IMPACT
Based on the final cost of the project engineering and construction, staff has determined that $124,592.04 is attributable to the 8-inch sanitary sewer main and that 2/3 of that total, or $83,061.36, is reimbursable and eligible to be recovered by School District #23. Since there is one property on each side of East Lane adjacent to the sewer main, each would be assessed a fee equal to half of the reimbursable total, or $41,530.68, should they desire to connect to the sewer main. Since the fee is paid by the adjacent property owners, the City has no financial obligation in a Reimbursement Agreement.
Reimbursement fees paid to and accumulated by the City are paid back to the developer annually on November 1. Payments are limited to reimbursement fees paid to the City on or before the 10th anniversary of the date of acceptance of the sanitary sewer main, which in this case would be September 2, 2025.
Reimbursement fees paid to and accumulated by the City are paid back to the developer annually on November 1. Payments are limited to reimbursement fees paid to the City on or before the 10th anniversary of the date of acceptance of the sanitary sewer main, which in this case would be September 2, 2025.
RECOMMENDATION
Staff recommends that City Council authorize the Mayor to execute the attached Reimbursement Agreement.