In order to obtain City sanitary sewer service for Lot 31A of the Panoramic Heights Subdivision, the property owner Jim Powell, constructed approximately 560 feet of public sanitary sewer main from an existing sanitary sewer main to his property and within Mountain View Boulevard.  There are three additional lots adjacent to Lot 31A that have the potential to connect to this sanitary sewer main but do not desire to connect to the main at the present time.  At such time that these three adjacent properties request City sanitary sewer service from the subject sewer main, the developer of Lot 31A desires to be reimbursed a portion of his construction costs.  Under the above described conditions the established Public Works Department policy calls for reimbursement to be accomplished through the attached Reimbursement Agreement.

The Council may:

• Accept the reimbursement agreement; or
• Do not accept the reimbursement agreement.  Rejecting the agreement would be contrary to the City's policy in which the Public Works Department collects reimbursement fees paid to the City and are accumulated and paid to the developer annually on each November 1st following acceptance of the constructed utilities.  Payments are limited to reimbursement fees paid to the City on or before the tenth anniversary of the date of acceptance.

Based on the final cost of the construction, the Public Works Department has determined that the cost attributable to the utilities portion of the contract is $19,916.91 and is the amount eligible to be recovered by the developer.  The reimbursable fee is based on the total square footage of the lots involved and equates to $0.5996 per square foot.  Since the fee is paid by adjacent property owners, the City has no financial obligation with a Reimbursement Agreement.

Staff recommends that the City Council authorize the Mayor to execute the attached Reimbursement Agreement.