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Item No: 7B Meeting Date: April 12, 2010 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Public Works Director Item Title/Subject: Resolution 7603 Approving the Schedule of Costs and Schedule of Payment for Private Improvements in the 2010 Street and Utility Improvement Project - Area B/C Background: The City Council adopted a Private Improvement Program (PIP) on February 23, 2009 (Res. 7415) which established the components in which property owners can have their driveway and utility services improved as part of the Street and Utility Improvement Program. The PIP came to be during Area A development because of the private property issues that would be encountered from the City’s street and utility construction. A majority of these issues had to do with driveways and private water and sanitary sewer services. Without existing barrier curbing on streets to be reconstructed, many properties had multiple driveways or had driveways that were too wide or too close to the side property line and did not comply with the Municipal Code. Since the new street standards include concrete barrier curb, this was an opportunity to bring many properties into compliance. Residential properties are allowed one driveway access and business properties may have more than one depending on street frontage. The Code allows driveway widths up to 24 feet and driveways must be setback from the side property line at least five feet. In some cases, these requirements may be waived depending on when the driveway was constructed or site specific instances. In most cases, the sanitary sewer and water service lines lie beneath the streets. The property owners own and maintain services from the building served to the water main or sewer trunk line, which often is in the middle of the street. Many sanitary sewer services are aging and property owners may have to clean the pipe frequently to rid the service of roots to avoid a backup of sewage into their homes. The City wanted to encourage those property owners to replace the sanitary service services so the new street did not have to be dug up and repaired. Similarly, property owners thinking of lot splits that did not have existing services were also encouraged to have the water and sanitary services installed. Individual bid items were included on the Area A project bid form to solicit prices from Contractor’s to perform these driveway and utility improvements. The prices were converted to a simple formula for private improvements and included in a Schedule of Costs. The PIP also included a reimbursement plan that allowed private improvements to be paid either upfront or allowed the costs to be assessed against the property. These two options are included in a Schedule of Payment includes repayment schedules, interest rates, and minimum costs. The City Attorney worked with Staff to develop a PIP Agreement form to use for the various private improvements. Discussion: The PIP had good participation during last year’s project in Area A. The bid form for the Area B/C project included bid prices to be used for private driveway improvement and sanitary sewer replacements. Prices for new water and sanitary sewer services were not included since there is only one eligible property for a lot split and that resident is not interested. The Schedule of