Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Utility Impact Fee Credit Agreement for the Construction of an Oversized Water Main, with Cross Development, LLC, for the Caliber Collision Northwest Addition, Generally Located on the East Side of Custer Road and Approximately 500 Feet North of U.S. Highway 380
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
MEETING DATE: May 16, 2017
DEPARTMENT: Development Services
CONTACT: Brandon Opiela, Development Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution
ITEM SUMMARY:
• This item authorizes the City Manager to enter into a Utility Impact Fee Credit Agreement with Cross Development, LLC (“Developer”) for the construction of an oversized water main being extended to the Caliber Collision Northwest Addition.
• Typically, a utility impact fee credit agreement can be approved administratively, so long as it follows the approved standard template for the City. However, the proposed agreement states that the anticipated balance of utility impact fee credits generated by the oversized construction may be reimbursed to the Developer, thus requiring approval by the City Council.
• The City’s Water Master Plan requires the extension of an 18” diameter water main, which is larger than the City’s standard twelve-inch (12”) diameter water main, and which is also larger than the water main required to serve the property. The location of the proposed 18” diameter water main is shown on the attached utility project map location exhibit and will extend a total of 765 linear feet.
• The price of the items associated with the 18” diameter water main and related appurtenances is $163,517.50.
• Developer will receive utility impact fee credits for the difference in the cost associated with constructing an 18” diameter water line instead of the standard 12” diameter water line ($81,322.50), calculated in accordance with the Ordinance and totaling 62.81 Service Unit Equivalents.
• The Caliber Collision Northwest Addition contains a total of two non-residential lots. Following construction and acceptance of the 18” water main, the total number of Service Unit Equivalents (62.81) to be credited will exceed the estimated 4.4 service unit equivalents utilized by Lot 1, Block A (4.4), leaving a balance of utility impact fee credits (58.41 Service Unit Equivalents).
• The proposed agreement states that the City may reimburse the Developer for the anticipated unused impact fee credits (58.41 Service Unit Equivalents), in an amount not to exceed $75,625.82.
• The proposed agreement also states that if the developer has paid the impact fees due on Lot 1, Block A (for the estimated 1” diameter water meter, ¾” diameter water meter, and 1” diameter irrigation meter) prior to earning the impact fee credits described in the proposed agreement, the City may also refund the Developer for these impact fees (not to exceed $5,696.68).
• In no circumstances shall the City’s participation with impact fee credits and reimbursements exceed the difference between the cost to construct the standard 12” diameter line and the cost to construct the 18” diameter oversized main.
BACKGROUND INFORMATION:
• The associated record plat for Lot 1, Block A of the Caliber Collision Northwest Addition has been approved by Staff.
• A new ethics law enacted by H.B. 1295, prohibits a governmental entity or state agency from entering into certain contracts with a business entity unless the business entity submits a disclosure of interested parties (Form 1295). This completed and acknowledged Form 1295 has been attached.
FINANCIAL SUMMARY:
• The impact fee credits that shall attach to the property under the proposed agreement are 62.81 Service Unit Equivalents. Following the City’s acceptance of the 18” water main, the City may reimburse the Developer for any unused Service Unit Equivalents, in an amount not to exceed $75,625.82. Impact fees paid by the Developer for Lot 1, Block A, prior to earning impact fee credits described in the associated agreement, may be refunded by the City, in an amount not to exceed $5,696.68.
• The City Council hereby authorizes using funds from WA4337 (Undesignated Oversize Participation) to fulfill the obligations of the oversize reimbursement, in an amount not to exceed $75,625.82.
BOARD OR COMMISSION RECOMMENDATION:
• N/A