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 Off-Site Sanitary Sewer Main, with GFB McKinney II, LLC, for The Vineyards Ph. 1 Addition and Vineyards Phase II Addition, Generally Located on the South Side of Collin McKinney Parkway and Approximately 300 Feet East of Stacy Road
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
MEETING DATE: February 21, 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 GFB McKinney II, LLC (“Developer”) for the construction of an oversized off-site sanitary sewer main being extended to The Vineyards Ph. 1 Addition and Vineyards Phase II 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 Wastewater Collection System Master Plan requires the extension of a 21” diameter wastewater main, which is larger than the City’s standard twelve-inch (12”) diameter wastewater mains, and which is also larger than the wastewater main required to serve the Subdivision. The location of the proposed 21” diameter off-site sanitary sewer main is shown on the attached utility map location exhibit and will extend a total of 2,256 linear feet.
• The price of the items associated with the 21” diameter oversized main and related appurtenances is $300,068.10.
• Developer will receive utility impact fee credits for the difference in the cost associated with constructing a 21” diameter sanitary sewer line instead of the standard 12” diameter sanitary sewer line ($81,975.66), calculated in accordance with the Ordinance and totaling 471.04 Service Unit Equivalents.
• The Vineyards Ph. 1 Addition and Vineyards Phase II Addition contains a total of 281 single family residential lots. Following the issuance of the last building permit on the property, the total number of Service Unit Equivalents (471.04) will exceed the total number of single family residential lots (281) credited per the agreement, leaving a balance of utility impact fee credits (190.04 Service Unit Equivalents).
• The proposed agreement states that the City may reimburse the Developer for the anticipated unused impact fee credits (191.04 Service Unit Equivalents), in an amount not to exceed $33,073.23
• 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 21” diameter oversized main.
BACKGROUND INFORMATION:
• The associated record plat for The Vineyards Ph. 1 Addition has been approved by Staff, and the associated record plat for Vineyards Phase II Addition is currently under review 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 471.04 Service Unit Equivalents. Following the issuance of the last building permit on the property, the City may reimburse the Developer for any unused Service Unit Equivalents, in an amount not to exceed $33,073.23.
• The City Council hereby authorizes using funds from WW4354 (Undesignated Oversize Participation) to fulfill the obligations of this agreement.
BOARD OR COMMISSION RECOMMENDATION:
• N/A