9.C.
City Council Draft Agenda
- Meeting Date:
- 04/04/2023
- From:
- Gary Miller, Water Services Engineering Section Director
TITLE:
Consideration and Approval of Contract: Reimbursement Agreement with Coconino County for a sewer main extension from the University Heights neighborhood to Ft. Tuthill.
STAFF RECOMMENDED ACTION:
Approve the Reimbursement Agreement and authorize the City Manager to execute on behalf of the City of Flagstaff.
Executive Summary:
In 2021 Coconino County completed the construction of a sewer main that connects Ft. Tuthill Park to the City of Flagstaff's sewer collection system in University Heights. As part of this project the City also paid for an upsizing of the sewer line that will serve as a regional benefit to the area. In constructing this line the County provided a significant benefit to the area by providing sewer service where it did not previously exist. In accordance with City Code section 7-08, Extension and Reimbursement Agreement for the Construction of Water and Sewer Line, any developer (in this case Coconino County) may request a reimbursement agreement be put in place to recapture a proportional share of the cost of the sewer line that benefits the properties in the area. This Reimbursement Agreement between the City of Flagstaff and Coconino County allows the City to collect the calculated proportional shares from individual properties when they tie into this system, and convey those payments to the County.
Financial Impact:
When a reimbursement agreement is established the beneficiary (Coconino County) is responsible to pay a fee established by code. This fee is intended to cover the City's cost to administer the agreement. For this agreement the City will collect $10,000 from the County. No direct budget impact is expected from entering into this agreement.
Policy Impact:
There is no expected policy impact expected with the approval of this agreement. This agreement is in accordance with existing codes, policies, and past council decisions as listed below.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Carbon Neutrality Plan
Regional Plan
Sustainable, Innovative Infrastructure
- Deliver Outstanding services to residents through a healthy, well maintained infrastructure system
- Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs
- Support the development of attainable and accessible housing
Carbon Neutrality Plan
CR-1: Ensure all mitigation actions improve Flagstaff's ability to adapt to the future.
Regional Plan
WR.2.2. Maintain and develop facilities to provide reliable, safe, and cost-effective water, wastewater, and reclaimed water services.
Has There Been Previous Council Decision on This:
In March of 2020 the City of Flagstaff entered into an agreement with Coconino County entitled "AMENDED AND RESTATED PERMANENT EASEMENT FOR WELLS, DRAINAGE, SEWER, AND WATER PIPELINES (Fort Tuthill)". This agreement expressed the County's intent to request a reimbursement agreement in accordance with City Code. Additionally, within this agreement the City agreed that "The City Council at a public meeting will consider amending the code to allow a recapture period of up to 20 years." The County has since completed the sewer main extension contemplated in this agreement. On December 6th, 2022 City Council approved a code revision adopting the change to the recapture period, which is included in the agreement.
Community Benefits and Considerations:
Coconino County has invested $1,702,464.31 in eligible reimbursement costs related to extending a city sewer line to Fort Tuthill. The County requested using the reimbursement agreement to recover cost from properties that benefit from this extension. As future development asks to connect to this sewer line, they will need to pay their proportional share. The City will collect these funds and then forward to Coconino County.