Agenda - Public Works Committee - 05/20/2003

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PW CASE # ] CONSIDER SEWER AND WATER TRUNK CHARGES ASSOCIATED WITH ALPINE ACRES SUBDIV/SION By: Steven J. Jankowski, City Engineer Background: The City has had a policy for collecting sewer 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 oversizing, 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 charges 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 will exceed the trunk revenues from this development by $426,760. Attached is a copy of the engineer's report. 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 ora 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). Recommendation: 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 recommends the following: (1) (2) 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)