Minutes - Public Works Committee - 05/20/2003

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Case #1: Consider Sewer and Water Trunk Charges Associated with Alpine Acres Subdivision City Engineer Ja nkowski stated t hat t he City h as h ad a policy for collecting s ewer and water trunk charges since the time these utilities were first installed in the mid 1980's. All developers contributed on a equal basis to this trunk fund which was utilized to pay for pipe over sizing, pipe extensions to the development property, highway borings and lift stations. In some cases, the amount of trunk charges collected exceeds the amount of trunk funds spent on a particular development, while in others the reverse is true. The unit charge to be collected for the trunk charge was determined based on the 1990 sanitary sewer study and has been adjusted annually for inflation. The estimates prepared by the developer's engineer projects that the net cost of the trunk improvements for this development would exceed the trunk revenues from this development by $426,760. Only $391,020 will be generated as a result of the 210 units in this development. Previously, (Villas of Meadow Point) the total trunk costs were estimated to be $657,789. The current estimated costs are now estimated at $817,780. The increase in cost is due in part to an addition of a segment of 30-inch sanitary sewer across CR 57. Previously the City had agreed to finance $150,000 of these costs from its trunk fund, while the developer agreed to finance all of the remaining costs. In return the developer would have received sewer and water trunk credit for up to 195 units with the "triangle" area currently the subject property. This represents a value of $363,090 (195 x $1862). The current trunk costs have increased due to the desire on the part of the City to prepare for anticipated trunk extension west of CR 57. It is also important to note that the previous developer was unable to successfully execute the project in part due to excessive commitments. Staff hereby recommended the following: (1) (2) (3) That the City pay for the construction cost of extending the sanitary sewer north to Alpine Drive ($150,000) That the City pay for the difference between the previous trunk estimate and the current trunk estimate (817,780 - 657,789 = $159,991) That the Developer will be reimbursed any trunk charges collected by the City for any development within the "triangle" bounded by CR 57, CSAH5, and Alpine Drive that occurs through January 1, 2010. Councihnember Zimmerman inquired as to the amount of funds currently in the trunk fund. Principal City Engineer Olson replied approximately 2 million dollars. Councihnember Zimmerman inquired if the sewer lines being proposed will be sufficient for long range planning. Principal City Engineer Olson replied yes. Councihnember Elvig inquired if the developer would pay for everything going through the development, but because the City is asking the developers to install the deeper and larger than is necessary for the development the developer is contesting the $159,000. Public Works Committee/May 20, 2003 Page 4 of 20