In order to obtain water and sanitary sewer service, the Developer, Trails West Development, LLC., desires to extend 406 feet of 20-inch water main and 461 feet of 18-inch sanitary sewer main west in Grand Avenue from 58th Street West to the future intersection at Wilderness Drive. These extensions are not scheduled City Capital Improvement Projects, so the Developer will pay the entire cost of the work.

Since it is currently City policy to pay for the entire cost of constructing water and sanitary sewer mains over 12 inches in size (local mains), the Developer desires to be compensated for these costs in full; and, the Public Works Department (PWD) proposes that such compensation be accomplished through the attached Agreement.

The Council may:
• Approve the Compensation Agreement with Trails West Development, LLC; or
• Do not approve the Compensation Agreement with Trails West Development, LLC.

Based on review of the bids for this private contract, the PWD has determined that $52,418.00 of water main construction and $176,941.90 of sanitary sewer main construction is eligible to be recovered by Trails West Development, LLC. The extent and timing of the City’s participation in the project costs are determined in conformance with the CIP approved by City Council. Compensation will be based on the applicable actual final project costs rather than bid quantities.  The FY 11 budget has $500,000 included for water compensation agreements and $500,000 for sanitary sewer agreements.

Staff recommends that Council authorize the Mayor to execute the Compensation Agreement with Trails West Development, LLC.