Staff recommends that the City Council approve the Reimbursement Agreement with Development 55, LLC.

In order to obtain water and sanitary sewer service, Development 55, LLC, extended a water and sanitary sewer main west from East Lane to Parcel 11A of Certificate Survey 1391, where the new Coca-Cola Plant is being constructed along Harnish Boulevard.  The extension of the water and sanitary mains were completed, fronting properties that now have the opportunity to be served from the mains.  Since these properties do not desire connection to the City services at the present time, Development 55 paid for a portion of the project.  At such time that properties along the water and sanitary mains request City water and/or sanitary sewer service, Development 55 desires to be reimbursed for a portion of construction costs paid.  As outlined in BMCC, Article 26-500, Section 26-505, the developer can enter into a Reimbursement Agreement with the City for reimbursement in the future when other properties connect into the water and sanitary sewer mains. All reimbursement fees paid to the City are then paid annually 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.  

The Council may:

• Approve the Reimbursement Agreement with Development 55, LLC.; or
• Not approve the Reimbursement Agreement with Development 55, LLC. Rejecting the agreement would be contrary to City Code.

Based on a review of final costs, the Public Works Department has determined that $2,161,171.80 attributable to the water and sanitary sewer mains constructed as part of Private Contract 776, is eligible to be recovered by the developer.  Since this fee is paid by adjacent properties at the time of development, the City has no financial obligation with a Reimbursement Agreement.