Minutes - Public Works Committee - 05/20/2003

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Principal City Engineer Olson explained that previously the City Council had agreed to contribute $150,000 to extend City services to the border of the property, but since that time the development plma has changed and there additional costs of $159,000. He noted that the proposed agreement was not substantially different other than the number change because of the change in the plan. Councihnember Cook inquired if the developer is required to pay for the City services through their property even if the City requires that the pipe be oversized. Principal City Engineer Olson replied not necessarily, explaining that it is not fair for the developer to have to pay a trunk charge and then not receive credit for the trunk charge if the City is requiring something more than what is needed for the development. Councilmember Elvig stated that Allstate Development was the initial developer proposing to develop the property and they were not able to proceed with the project. He inquired if the developer paid too much for the property and then was not able to come forward with the project. Principal City Engineer Olson replied that he could not state whether or not Allstate Development had enough financial backing when they looked at all the necessary improvements. Councilmember Elvig inquired if staff was comfortable with the agreement. Principal City Engineer Olson replied yes. Motion by Councilmember Cook, seconded by Councilmember Elvig, to recommend the following: (1) That the City pay for the construction cost of extending the sanitary sewer north to Alpine Drive ($150,000) (2) That the City pay for the difference between the previous trunk estimate and the current trunk estimate (817,780 - 657,789 = $159,991) (3) 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. Further discussion: Councilmember Zimmerman inquired if the agreement sets a precedent that the City will be paying trunk charges for a development. Principal City Engineer Olson replied that precedent was set last year when the initial agreement was agreed to, but staff hopes to draft a policy regarding the issue in the near future. Motion carried. Voting Yes: Councilmembers Cook, and Elvig. Voting No: Chairperson Zimmerman. Public Works Committee/May 20, 2003 Page 5 of 20