Staff recommends that Council approves the attached Compensation Agreement with Torgerson's Real Estate Holdings, LLC.

In order to obtain water service, Torgerson's Real Estate Holdings, LLC will be extending a 12-inch water main along the South Frontage Road frontage of Tracts 2 and 3 of Certificate of Survey No. 2394.  There are no property owners along the north side of the South Frontage Road due to Interstate 90.  This water extension, in combination with the KSKC Properties, LLC water main extension, will complete a water main loop along the South Frontage Road that not only benefits these properties, but also provides additional water service reliability and redundancy for properties further west and north. Past practice has been to compensate the Developer for one-half of the cost of the construction of the water mains where there are no property owners fronting the street. Compensation for the water main is estimated to be $99,226.50.   


 

The Council may:

• Approve an Agreement for compensation from the City back to the Developer. 
• Not approve an Agreement for compensation from the City back to the Developer.  This would be inconsistent with current City practice of compensating for utility extensions that have no developable land fronting the main on one side.

Based on review of the quantities to be installed and cost information provided by the Developer's agent, staff estimated the water main to be $99,226.50. The extent and timing of the City’s participation in the project costs is determined in conformance with the budget approved by City Council and based on actual quantities installed. The project is included in the approved FY23-FY27 CIP and will be included in the proposed FY23 budget.