In order to obtain water, sanitary sewer and storm sewer service, the Developer, M&K Blue One, LLC., extended 24-inch water main, 60-inch storm drain and 27-inch sanitary sewer main in King Avenue West from approximately Montana Sapphire Drive to 44th Street West. These extensions are not scheduled City Capital Improvements Projects, so the Developer paid the entire cost of the project.

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.

Through the subdivision process, it was also agreed that the City would compensate the Developers to oversize the storm drain. The City will pay the difference between installing a 36-inch and a 60-inch storm drain.

The Council may:

• Approve an Agreement totaling $127,655.50 in sanitary sewer main, $63,519.00 in water main, and $40,660.00 in storm sewer for compensation from the City back to the Developer.

• Do not approve an Agreement totaling $127,655.50 in sanitary sewer main, $63,519.00 in water main, and $40,660.00 in storm sewer for compensation from the City back to the Developer.

Based on review of the final quantities installed on this private contract, the PWD has determined that $127,655.50 of sanitary sewer, $63,519.00 of water and $40,660.00 of storm sewer portions of the work are eligible to be recovered by the Developer. The extent and timing of the City’s participation in the project costs is determined in conformance with the CIP approved by City Council.

Staff recommends that Council authorize the Mayor to execute the attached Agreement. Compensation is based on final utility construction costs.