01-10-2022 Special Council Packet - Improvement Hearings- Ryan Drive and Woodlynn Ave

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Prepared by: Bolton & Menk, Inc. RYAN DRIVE – MODIFIED SANITARY SEWER COST ALLOCATION 2022 Street & Utility Improvements (Woodlynn Ave, Ryan Dr) ǀ 0N1.125241 Page 3 IV.RYAN DRIVE – MODIFIED SANITARY SEWER COST ALLOCATION The original Feasibility Report recommended installation of a new sanitary sewer forcemain to provide sanitary sewer service to three parcels along Ryan Drive that are currently on private septic systems. These are the last three commercial/industrial properties within the City that are not connected to a city sewer main. One property owner has independently been investigating connection to the City’s system in Ryan Lane due to an upcoming building expansion. The original Feasibility Report apportioned the sanitary sewer costs as 100% assessable to the benefitting properties in accordance with the City’s Special Assessment Policy. This allocation resulted in proposed assessment for each property of approximately $20,000 for public improvements plus an additional $20,000 - $25,000 for the cost to install a private grinder pump and service line to the public system. The net cost for each parcel would be $40,000 - $45,000. It is important that sanitary sewer main be extended in the public right-of-way at this time, or the City will be dealing with the same problem in 20 years. After speaking with each of the three property owners, project staff understands the financial burden that installation of a sanitary sewer force main places on existing property owners. The current policy of 100% assessment for sanitary sewer infrastructure is typically enforced at the time of development. When an existing street must be retrofitted to meet standards, it is much more costly to work within the constraints of existing infrastructure. As such, staff is recommending a deviation from the Assessment Policy to make this project financially viable. Based on the modified cost allocation below, the City of Little Canada would be responsible for $32,246 of the sanitary sewer extension. Modified Cost Allocation Project staff is recommending that the Infrastructure Capital Improvement Fund (ICI Fund) be used to fund: •All non-sewer related project items (pavement restoration, traffic control, engineering, testing, etc.). •One-fourth of all sewer items (piping, valves, manholes, etc.) so that the City is an equal contributor to the sewer improvements. Under this allocation, the City becomes the predominant payer of total project costs while the three property owners would split three-fourths of the sanitary sewer costs. The recommended deferment options of these assessments is unchanged from the Feasibility Report. Table 2 – Updated Sanitary Sewer Cost Allocation – Ryan Drive The City’s contributions towards this work will help promote connections to the city’s sanitary sewer system, reduce risks of environmental contamination with the City, and maintain marketability of industrial properties within the City. Location Assessments Original Report ICI Fund Original Report Assessments Amended ICI Fund Amended Public Forcemain $60,746 $0 $28,500 $32,246 Per Parcel: $20,250 $9,500 Private Service Fut. Private Cost Fut. Private Cost Est. Per Parcel: $23,500 $23,500 Net Cost Per Parcel $43,750 $33,000