#06 - Cardinal Ridge Watermain Alternatives

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OPTIONS: 1) OPTION 1: Construct the improvements in accordance with the approved Project Plans and approved Change Order No. 3. With no easement granted over Outlot C, install the water service stubs for the properties at 1545, 1571, and 1589 Ivy Avenue to the right-of-way boulevard on the west side of the center landscaped island (see attached Exhibit 1). Service stubs would be installed across Outlot C and stubbed to each property by the city contractor if the HOA grants the requested easement before the contractor has completed the watermain installation work in the immediate area of these services. At the time of adopting the Final Assessment Roll the properties at 1545, 1571, and 1589 Ivy Avenue would be removed from the watermain assessment roll, for each property that has not yet connected to city water, if the service stubs remain on the west side of the Outlot C median. The street and storm sewer assessments would remain for each property that has not connected to city water. The service stubs would be in place to allow for future connection by the property owner should an easement be granted at some point in the future, either to the city or to the individual property owner. This connection could be made with MPCA Grant reimbursement funds if completed prior to the connection deadline requirements, or the connection could be made at property owner’s cost if completed at a later date. 2) OPTION 2: Direct staff to revise the design to include a secondary watermain extension further east along 16th Street, then south along Ivy Avenue on the east side of the Outlot C median, with service stubs extended to 1545, 1571, and 1589 Ivy Avenue (see attached Exhibit 2). Furthermore, direct the city engineer to prepare a revised Feasibility Report and Preliminary Assessment Roll to assess the secondary watermain costs to the 17 Cardinal Ridge HOA properties (estimated unit assessment of $10,300). A design change order will be prepared for future council approval to include the secondary watermain improvements. A revised feasibility report will be prepared for council approval and a public improvement hearing will be scheduled and noticed for the purpose of adopting a revised preliminary assessment roll. The secondary watermain assessments would not be forgivable with the connection to city water as they would remain outside the scope of the MPCA Grant Agreement. 3) OPTION 3: Provide direction to staff to proceed with either OPTION 1 as amended by the City Council, or OPTION 2 as amended by the City Council. FISCAL IMPACT: OPTION 1 would have no fiscal impact to the city or grant agreement. Future water service costs may be incurred by the properties at 1545, 1571, and 1589 Ivy Avenue should they elect to connect to city water after the termination of the MPCA grant agreement. OPTION 2 would increase the total project costs in the estimated amount of $175,000 which would be assessed to the 17 Cardinal Ridge HOA properties.