In order to obtain water, sanitary sewer and storm sewer service, the Developer, March Madness Apartments, LLC., will be extending 12-inch water main, 15-inch storm drain and 12-inch sanitary sewer main in 44th Street West, south of King Avenue West. The City owns the property on the east side of 44th Street West, and therefore is responsible for half of the cost of the construction of the utilities.  These extensions are not scheduled City Capital Improvements Projects, so the Developer is going to pay the entire cost of the project.

Since it is City policy for the adjacent property owners to pay for the cost of constructing utilities fronting their property and the City owns the property along this property, the Developer desires to be compensated for half of these costs; and, the Public Works Department (PWD) proposes that such compensation be accomplished through the attached Agreement.
 

The Council may:

• Approve an Agreement totaling $113,267.50 in sanitary sewer main, $51,296.50 in water main, and $32,591.50 in storm sewer for compensation from the City back to the Developer.

• Not approve an Agreement totaling $113,267.50 in sanitary sewer main, $51,296.50 in water main, and $32,591.50 in storm sewer for compensation from the City back to the Developer.  This would be inconsistent with current City policy of adjacent property owners paying for extensions of utilities.  

Based on review of the quantities to be installed on this private contract, the PWD has estimated that $113,267.50 of sanitary sewer main, $51,296.50 of water main, and $32,591.50 of storm sewer portions of the work will be 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 and based on actual quantities installed.

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