Consider Recommending City Council Authorization to Prepare Plans and Specifications for Puma Street Utility Extensions, Improvement Project #17-10

Purpose:
The purpose of this case is to consider recommending City Council authorization to prepare plans and specifications for Puma Street Utility Extensions, Improvement Project #17-10.

Background:
Two official development proposals currently exist for the Future Business Park area.
 
Capstone Homes is proposing a residential development consisting of 293 single-family homes west of Puma Street.  This development, known as Riverstone, is located within the area bordered by the Northfork golf course, Alpine Drive, Puma Street, and Highway 10.  This development is in the City’s MUSA area and as such is proposed to be served by City water and sanitary sewer.  
 
PSD LLC is proposing a new business park development.  This development proposal, currently at concept stage, is located on 45 acres of land between Bunker Lake Boulevard and Highway 10, east of Puma Street.
 
When Bunker Lake Boulevard and Puma Street were constructed in 2006 only a portion of Bunker Lake Boulevard was constructed to a permanent condition.  The remainder of Bunker Lake Boulevard, and all of Puma Street, were constructed with temporary pavement sections and no utilities.  The trunk sanitary sewer and watermain utilities under Bunker Lake Boulevard terminated approximately 1,400 feet east of Puma Street.  The existing watermain is 16-inch DIP.  The existing sanitary sewer is 18-inch PVC.  These utilities were intended to be extended along Bunker Lake Boulevard and Puma Street, and the streets constructed to a permanent condition, as abutting parcels developed.
 
Plans are currently being advertised for bids to extend existing utilities along Bunker Lake Boulevard to Puma Street as part of City Improvement Project #17-09.  This will allow the south third or so of the Riverstone development to be served by utilities.  Phase 1A in the attached Future Business Park Proposal addresses this.
 
Utilities must be extended north along Puma Street to serve additional homes in the Riverstone development.  Phase 1B in the attached Future Business Park Proposal addresses this work.  These are the utilities Staff proposes to prepare final design plans and specifications for with City Improvement Project #17-10.
 
All costs to extend utilities are proposed to be paid through City sewer and water funds.  The developer’s share of these public infrastructure costs will be recovered through their trunk utility fees at the time of development. This will account for the vast majority of the costs for Improvement Project #17-10.  However, some costs are required to remove existing pavement and replace it with temporary aggregate surfacing.  This work would otherwise not be required if Capstone were not developing Riverstone at this time.  Forty percent of these costs will be recovered from Capstone via an assessment agreement.
 
City staff is currently working with Capstone Homes to develop this agreement.  This will allow the City to construct the necessary street, storm sewer, and trail infrastructure in phases 1A and 1B to support the Riverstone development while assessing Capstone for forty-percent of the costs.  This assessment agreement will be presented to the City Council for consideration of approval at a later date.

In order for the City to issue Certificates of Occupancy for homes in Rivestone they must first be served by City sewer and water.  This will require the existing trunk utilities to be extended along Bunker Lake Boulevard and Puma Street.  Extending utilities along Puma Street as a City improvement project will allow Capstone Homes to be able to connect more homes in the Riverstone development to City sewer and water in late 2017 or early 2018.

Staff estimates this case will take 10 minutes to present and respond to questions.

Observations:
City Staff proposes to utilize Bolton & Menk to prepare plans and specifications for this work.  An estimate of their proposed engineering fees will be available at the meeting.
 
City staff proposes to administer the project and to inspect construction.
 
Staff will work with property owners along Puma Street during development of plans and specifications to properly design utility service stubs.
 
Staff proposes to use aggregate base as a temporary street surface on Puma Street over the winter months since the street typically has low traffic volumes and is proposed to be reconstructed next spring/summer.
 
Alternatives:
Alternative #1 – Motion to recommend City Council authorization to prepare plans and specifications for Puma Street Utility Extensions, Improvement Project #17-10.
 
Alternative #2 – Motion of other.

A reasonable estimate of costs to extend utilities along Puma Street was not available when this case was prepared.  However, an estimate will be presented to the Public Works Committee during their meeting.
 
All costs required to extend utilities are proposed to be paid through City sewer and water funds. Forty percent of the costs required to remove the temporary bituminous pavement and replace it with a temporary aggregate surface will be paid by Capstone via their assessment agreement.

Staff recommends that the Public Works Committee recommend Council authorization to prepare plans and specifications for Puma Street Utility Extensions, Improvement Project #17-10, as this will support development of the Future Business Park.

Motion to recommend City Council authorization to prepare plans and specifications for Puma Street Utility Extensions, Improvement Project #17-10.