04-14-1993 Council Agenda - Laserfiche WebLink

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Mayor & City Council April 9, 1993 Page 2 Regarding the second matter of City participation in the project costs, the following factors should be considered: * The cost of the water main as proposed by the Engineer today would appear to exceed benefits received. ($12,063 per lot for an eight inch water main. See attached sheet.) * Typically, the City participates when the costs of the water main exceeds six inches in size due to the trunk line benefit. However, in this case an eight inch water main is being proposed not for trunk line benefit; but rather to provide fire flows for the area to be served. No other benefit is gained by having an over sized water main in this case. * With the Edgerton water main project from Little Canada Road to LaBore, the City has assisted those property owners in achieving a lower cost project than what it would have cost them had they paid 100% of the cost. In this case, the rationale for our assistance was that there was system -wide benefit by having a needed loop provided to the City's system. Without cost participation this loop would not have occurred. No looping benefit exists on Viking Drive. * When the City initially installed much of the water main in the community, a flat rate of $6.50 per lineal foot was used. Obviously, this was a blended rate considering the cost factors of all the projects which provided a subsidy to properties where single frontage existed. Because we do not have "easy" water main projects to do at this time, a blended rate with a combination of other projects will not achieve dramatic cost savings. * If we offered the Viking Drive water main based on the same costs as proposed on the Edgerton project for approximately $3,800 per lot, the property owners would pick up $38,400 of project costs while the City would absorb $66,100. (Please note these are based on initial Engineer estimates. The actual costs could be lower.) Page 2