Staff recommends that the City Council authorize the Mayor to execute the Reimbursement Agreement for High Sierra II, Inc.

In order to obtain City water and sanitary sewer service for High Sierra Subdivision,14th Filing, the property owner, High Sierra II, Inc., constructed public water and sanitary sewer mains from Morocco Drive from Sierra Grande Boulevard to Mission Oaks Drive.  High Sierra II, Inc. does not own any of the properties fronting this water and sanitary sewer extension.  The adjacent properties will connect into these extensions in the future.  At such time that these adjacent properties request City water and sanitary sewer service from the subject mains, High Sierra II, Inc. desires to be reimbursed of their construction costs.  

Reimbursement agreements are consistent with the Rule and Regulations Governing Water and Sanitary Sewer Services.  

City 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.

Since the fee is paid by adjacent property owners, the City has no financial obligation with a Reimbursement Agreement.