R2002-146 AUTHORIZING EXECUTION OF AGREEMENT

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� The cost share arrangement is that the City and Heritage split the cost, fifty-fifty, for the approximately 1,550 feet of new 10-inch sewer from its connection with the existing 12-inch sewer to the northwest corner of the Heritage property. The cost for the first segment is $129,250 of which the City's share is $64,275. The City will pay 100 percent of the cost for the second and third segments of the sewer which will be $50,432. The engineering cost of $15,600 is split based on each parties percentage of the construction cost. The City's share of the engineering cost is 64 percent or $9,989. This method results in the City's total cost being $125,046. These costs are based on the proposal from Bodine Services, Inc. received by Heritage to construct the new sewer. Heritage solicited proposals from three contractors, but Bodine was the only contractor to submit a proposal. City staff reviewed the unit prices submitted for the work and found the unit prices to be consistent with those experienced by the City for comparable work. Heritage has obtained the necessary permanent and temporary easements from Decatur School District No. 61 for the sewer to be built on the DistricYs property. In exchange for the easements, the City agrees that it will waive any sanitary sewer tapping charges for connections to the new sewer by the District and that the City will improve the intersection of Charles Street and Running Reds Drive. The value associated with waiving the fee cannot be estimated at this time. The standard connection fee is $40 per front foot unless a property is in an assessment district. The District's property is not within an assessment district, but because it is a large, acreage type parcel it would be subject to an adjusted frontage for fee determination. Adjustment to the chargeable frontage for large parcels is essentially done to correlate the use of the property to the benefit it obtains by its connection to the sewer. There is no planned use by the District at this time from which to estimate the connection fee. The value of the City making the improvements to the intersection has not been estimated, but should be less than $5,000. A study is planned for Charles Street in response to citizen comments made at the City Council hearing on the Heritage project about the condition and use of this street. The study will determine whether this street should or should not intersect with Running Reds Drive and what improvements are necessary to the street. Funding for this project is not in the City's FY 2002 - 2003 Capital Improvement Fund. A review ' of this fund by City staff determined that an estimated $70,000 can be expected to be available � for this project. It is relatively early in the current fiscal year to estimate whether any additional funds can be found for this project. Heritage, when advised of this, offered to let the City reimburse Heritage $70,000 this current fiscal year and the remainder of $59,046 in FY 2003 - 2004. This arrangement is considered acceptable to City staff. An agreement (copy attached) befinreen the City and Heritage has been prepared for the cost sharing arrangement. The agreement is acceptable to the City's Corporation Counsel. City staff does recommend that the proposed cost share agreement for the new sewer be approved. Installing the sewer at this time will enable the sewer to be installed prior to any improvements being made to Charles Street and avoid having to cut a newly paved street. The sewer also provides the opportunity to extend sanitary sewer service to a non-sewered area of the City. POTENTIAL OBJECTION: There are no known objectors to this action. However, concerns have been raised by area residents about the development of the Heritage property and the traffic on Charles Street. These residents may ask about any mandatory requirements by the City to connect as soon as Page 2 ''I