Title
Consider and take action on a resolution authorizing sanitary sewer line extension agreements with four property owners to serve residential properties located on or adjacent to the 2500 Block of Leisure Lane (Interim City Engineer)
Background:
Approval of this resolution will authorize sanitary sewer line extension agreements with four property owners to serve residential properties located on or adjacent to the 2500 Block Leisure Lane.
The City has been approached by residential property owners in the 2500 Block of Leisure Lane requesting that the City extend a public sanitary sewer line to serve their properties. Currently they are all on septic systems that are subject to losing some measure of functionality when the ground is saturated or during heavy rainfall events.
The City’s utility extension policy under Section 114-91 of the Code of Ordinances of the City of League City allows the City to administer and coordinate the engineering design, surveying, construction bidding and award, construction contract administration, construction inspections, and deed preparation and recordation for a municipal sanitary sewer line extension. The Ordinance also allows for the City to assess the property owners equitable shares of up to 90 percent of the project cost for design and construction cost of $91,417, which in this case is estimated at $82,275.30, or $20,568.83 per property owner. The property owners are also requesting that the City: (i) include the cost of connection fees and recovery fees in their equitable shares in the amount of $2,669 for each property owner, for a total of $10,676; (ii) upfront the cost of the project; and (iii) to allow them to pay the City back through a monthly payment plan over 10 years at 3 percent interest. The total cost to property owners is $92,951.32, or $23,237.83 per property plus 3% interest, for a total of $26,873.39 per property owner. The agreement includes provisions declaring their equitable project cost share as an assessment levied and taxed against their benefitting property and against the owners personally, with a lien against their benefitting property. The agreement would be filed in the County Clerk’s office to monument the assessment and lien provisions.
Property owners estimated payouts, with 3% interest, for their 10-year monthly installments would be $223.95 per month for 119 months and a final monthly payment of $223.34. Total estimated equitable shares payouts would be $26,873.39, ($23,237.83 principal plus $3,635.50 in interest). The actual equitable share amounts and installment plans would be adjusted up or down, based on the actual project cost.
This activity will be funded and reimbursed through the Miscellaneous Capital Project Fund. An addition of the WW1706 Leisure Lane Sanitary Sewer Line Extension project will be added to the FY2017 Capital Budget in the amount of $102,093 and will be included in the 4th QTR budget amendment for Council approval. This amount is for 100% of the total project cost for design and construction in the amount of $91,417 and the total connection and recovery fees in the amount of $10,676 for all 4 property owners.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Master Agreement Document
4. Exhibit “A” to Agreement (location sketch)
5. Exhibit “B” to Agreement (list of property owners and benefitted properties)
6. Exhibit “C” to Agreement (project cost estimate)
7. Exhibit “D” to Agreement (10-year at 3% installment payout calculation spreadsheet)
8. Aerial Map
CONTRACT ORIGINATION: The resolution and agreement have been reviewed and approved as to form by the City Attorney
FUNDING
{ } NOT APPLICABLE
{X} Funding is available from Misc Capital Projects Fund 1055 with expenses charged to WW1706 - CONSTRUCT - CONSTRUCT - RS CASH in the amount of $102,093
Funds received from homeowners will be deposited to Misc Capital Projects Fund 1055
{ } Requires Budget Amendment to transfer from Account #____________to Account # ____________
{ } Requires Budget Amendment to transfer from Account # __________ to Account # __________