To: Mark R. Hafner, City Manager
From: Alonzo Liñán, P.E., Director of Public Works
Subject:
Title
Consider a resolution approving a Developer’s Agreement with representatives of the Walker Addition to install sanitary sewer and authorizing the City Manager to execute all documents related thereto on behalf of the City of Keller, Texas.
Background:
The Walker Addition is located at the intersection of Brenda Lane and Marvin Drive, just north of Florence Road and west of Randol Mill/Davis Blvd. Brenda Lane is a gravel street with shallow bar ditches and aged manufactured housing. For over a year, separate property owners have approached the city for direction regarding how to develop and sewer 9 properties along Brenda Lane (Exhibit A). Based on these discussions, the individual property owners chose to combine their individual development sites into one cohesive application and take advantage of the existing 2004 Sanitary Sewer Extension Policy to provide sanitary sewer to this area (Resolution 2184).
The 2004 Sanitary Sewer Extension Policy’s intent is to make available sanitary sewer to developed property or existing subdivisions consistent with the 1993 Sanitary Sewer Extension Plan. For the policy to be effective, 70% of the benefiting properties must support a petition to install the sewers and contribute $6,000 toward the cost of sewer installation. If the cost of the sewer installation exceeds the amount of funds collected, then it falls to the city to cover the difference. In this case, each of the nine supporting properties contributed for a total of $54,000. However, the construction bids for the installation of the sanitary sewer came in at $202,172.74. This commits the city to pay the $146,172.80 difference.
The attached Developer’s Agreement outlines the costs expected to be covered by both the city and the developer. Based on the construction contracts secured for this development, it will cost $738,222.74 to install water, sanitary sewer, stormwater control, streets and sidewalks. Of this, the developer is covering $592,049.94 or 80% of costs.
Staff believes this to be in the best interest of the city as the resulting product will improve property values and install public assets to current standards.
Financial Impact:
80% of the development costs will be covered by the developer. The remaining $146,172.80 will be taken from the Water & Waste Water Utility Fund.
Citizen Input/Board Review:
Not applicable
Legal Review:
The resolution has been reviewed by the City Attorney.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Staff recommends approval of the proposed resolution as presented.