R97-124 AUTHORIZING WATER SERVICE AGREEMENTS

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ti O�.DFC� C v o0 ��i�' '/IIINO�Y August 12, 1997 PUBLIC WORKS MEMORANDUM NO. 97-81 MEMORANDUM TO: Honorable Mayor and City Council FROM: James L. Williams, Jr., City Manager �� Bruce A. McNabb, Director of Public Works � Stephen P. Swanson, City Enginee�C> SUBJECT: Tennison Addition Water Service Agreements The Engineering Division was contacted by property owners in the Tennison Addition (refer � to attached locale map) about a year ago requesting City water service. They were advised by staff that a water service district would be required because the area is outside of and not contiguous to the City's corporate limits. Following the request, the Division proceeded to determine the boundaries (refer to attached map) of the district and advise the property owners of the general requirements and process to form a district. The property owners were given copies of the City's water service agreement to distribute to property owners in the district to be signed and returned to the Division. They were informed that staff would not proceed with the district until at least 50 percent of the properties within the boundaries had returned signed agreements to the Division. When this criteria was met the Division would perform its economic analysis to determine if the City would realize a positive return on its investment to extend water service to this area. Signed agreements have been received from 7 of the 8 properties. The Division's economic analysis of the district determined that, based on preliminary estimates, the City will realize a positive return on its investment. The City's expenditure is for the installation of 644 feet of 6-inch watermain. The revenues to be realized from this e�ension include the tap fee to be paid by each property owner and the surcharge for water sales paid by . each of the properties over a ten year period. The surcharge is the e�ra paid by water service customers outside the City's corporate limit. This surcharge is twice the charges paid by a property of the same classification inside the corporate limits.