Agenda - Public Works Committee - 04/18/2017

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Public Works Committee 5. 6. Meeting Date: 04/18/2017 By: Bruce Westby, Engineering/Public Works Title: Consider Recommending City Council Authorization to Prepare Plans and Specifications for Improvement Project #17-09, Bunker Lake Blvd Utilities Extension Purpose/Background: Two development proposals currently exist for the Future Business Park area. The first development is proposed by Capstone Homes who wants to construct around 300 single family homes. This development, known as Riverstone, is proposed to be 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. The second development is proposed by PSD LLC who wants to construct a new business park. This concept stage proposal was presented to the City Council at their March 28th Work Session. This development is proposed to be located on 45 acres of land between Bunker Lake Boulevard and Highway 10, east of Puma Street. PSD has a letter of intent to purchase the land from Hageman Holdings. The PSD LLC proposal includes getting all building sites "pad ready" in anticipation of future construction. This work would include mass site grading, storm water pond grading, and installation of utility stubs. While this development proposal is at concept stage only at this time, PSD LLC appears to be committed to this proposal. When Bunker Lake Boulevard and Puma Street were constructed in 2006, only a portion of Bunker Lake Boulevard was constructed to its proposed permanent condition, including utilities and the street. 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 were terminated approximately 1,400 feet east of Puma Street as depicted in Figure 1 (attached). The existing watermain is 16-inch DIP. The existing sanitary sewer is 18-inch PVC. These utilities were intended to be extended, and the streets constructed to their permanent condition, at the time the abutting parcels were developed. The utilities are currently located 3 or more feet south of the edge of the existing pavement section so extending the utilities can be accomplished by closing one lane of traffic on Bunker Lake Boulevard. Therefore, access to the existing home in the northeast corner of the intersection of Bunker Lake Boulevard and Puma Street will be maintained at all times. In March 2017, Bolton Menk updated their Future Business Park report to include estimated costs for extending trunk utilities to Puma Street. Their estimated cost to extend the 16-inch trunk watermain line 1,400 feet to Puma Street, including fire hydrants and service stubs to abutting properties to the north and south, is $154,000. Their estimated cost to extend the 18-inch trunk sanitary sewer line 1,400 feet to Puma Street, including manholes and service stubs to abutting properties to the north and south, is $179,000. These costs include 30% contingency and indirect costs. All costs to extend the utilities are proposed to be paid through City sewer and water funds. The developer's share of these costs will be recovered through their trunk utility fees at the time of development. City staff is currently working with Capstone Homes to develop an assessment agreement that will allow the City to construct the remaining public infrastructure in phases IA (streets only) and 1B (streets and utilities) as necessary to support their development. The assessment agreement will allow the City to assess the developer for a portion of the costs. The assessment agreement will be presented to the City Council for consideration of approval at a later date.