CC MEETING: February 21, 2017
DATE: February 13, 2017
TO: Erin Reinhart, City Manager
FROM: Cesar J. Molina, Jr., P.E., Director of Engineering
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Development Agreement With Castle Hills Phase 11 (CH PH 11) LLC To Replace A Development Agreement Approved On November 1, 2016 Related To The Costs Of Extending Approximately 1,260 Linear Feet Of Off-Site Sanitary Sewer Line; And Providing An Effective Date.
Body
BACKGROUND:
On November 1, 2016, City Council approved a development agreement with Castle Hills Phase 11 LLC for the construction of an off-site sanitary sewer line. Under the terms of the agreement the City would credit $142,987 from the projected development fees to be paid by Castle Hills towards the sewer line construction costs. After the agreement was approved, construction cost estimates continued to rise in spite of the efforts from staff, Castle Hills LLC and Bright Realty to mitigate the costs. At this time, Castle Hills has received bids for the work that now total $219,647, which represents an increase of $76,660. Because of the higher construction cost estimates the agreement was not executed by either party.
To continue the partnership with Castle Hills, staff recommends that a new development agreement be approved that increases the city’s development fee credits by $38,330 (50 percent of the increase), to a total of $181,317.
FINANCIAL IMPLICATIONS:
The cost of the 1,260 linear feet of 12-inch sanitary sewer line is $219,647. The development agreement will credit $181,317 in development fees that will be collected by the City during the construction phase of the project.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends that the City Council approve a resolution authorizing the City Manager to execute a new development agreement with CH PH 11 LLC related to the costs of extending approximately 1,260 linear feet of off-site sanitary sewer line.