HomeMy WebLinkAboutA001 - Council Action form dated September 26, 1995 Item #
Date: September 26, 1995
6
COUNCIL ACTION FORM
SUBJECT: SETTING HEARING DATE FOR ONTARIO STREET SANITARY SEWER
AND WATERMAIN CONNECTION FEE ORDINANCE.
BACKGROUND:
Due to excessively high bids received for installing utilities on Ontario Street, it was
necessary to delete this project from the 1995 Sanitary Sewer and Water Program No.
1 assessment project. This was done so that fees charged against the benefiting
properties could be adjusted to reflect bids received.
In this case an ordinance will be used to establish sanitary sewer and water main
connection fees that will be collected at the time these services are needed for
development of the abutting properties. The connection fee process is being used
since the surrounding properties are not within the corporate limits. This utility project is
necessary to install the pipes below the new paving on Ontario Street that is to be
undertaken by Story County, the City of Ames, and area developers.
The first step in this procedure is scheduling a hearing date to receive comments for
and against the project.
In an effort to lower the bid price, staff has extended the project completion date until
May 1 , 1996 and included a bid item for incorporating fly ash into the wet soils
anticipated to be on the project. The contractors bidding the project indicated that the
wet soils were a risk and the City had made no provisions to compensate for extra costs
if the soils had to be dried or replaced prior to backfilling the excavation. If it is not
necessary to use the fly ash the bid item will not be paid and the total project cost will
be that much less.
The construction of the Ontario Street watermain extension and sanitary sewer
extension is estimated to cost $94,947.50. The total project cost is $104,020.87. The
assessed cost of the project is $83,445.26, which is $74,371 .89 for the construction
cost plus 10% engineering and 2% default fee. This $83,445.26 will be assigned to
benefiting properties and connection fees as follows:
Water Main Sanitary Sewer
Owner Connection Fee Connection Fee
Erb Hunziker et al $10,269.60 $ 31 ,453.03
McDorman & Sands 10,269.60 31 ,453.03
CAF - Set Hearing Ontario Street Sewer/Water
September 26, 1995
Page 2
The connection fees would be collected at the time utility service is needed to develop
the properties abutting Ontario Street. It is a possibility that none of these connection
fees would be recovered if developing in this area of Ames ceased.
The unassessed construction costs of $20,575.61 are the additional expenses
associated with installing oversized watermain which is normally a City cost.
The total budgeted amount for sanitary sewer and watermain for the Ontario Street
Improvements project was $104,020.87. This included $10,000 from the Water Utility
fund for oversized watermain costs. Also included was $20,000 from the Sanitary
Sewer Utility fund for anticipated City costs to install the sanitary sewer. The budget
also lists developers as contributing $158,000 for street paving, water main, and
sanitary sewer of which $74,000 was assigned to utilities construction.
In order to cover the project costs, the Water Utility fund would need to contribute
$41 ,114.81 and the Sewer Utility fund would need to contribute $62,906.06. Again, the
water and sewer utility funds would be reimbursed $20,539.20 and $62,906.06
respectively when the connection fees are paid.
ALTERNATIVES:
1 . Reject the project.
2. Adopt the project.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council set the hearing date
for the Ontario Street Sanitary Sewer and Watermain connection fee ordinance, as
November 14, 1995.
COUNCIL ACTION:
NOTICE TO PROPERTY OWNERS OF A PROPOSEDU`"
ORDINANCE TO ESTABLISH A WATER AND SEWER
CONNECTION FEE WITH RESPECT TO CERTAIN \ �V
PROPERTY ABUTTING ON ONTARIO STREET, AO O
AMES,IOWA Notice is given hereby that the City Council
of the City of Ames has ordered construction of an extension 0
of the water and sanitary sewer mains on Ontario Street,and
has proposed the establishment of a connection fee district in `0 I
which all future users of said utility services would be charged `
a scheduled fee for connection. A plat showing the location of
the proposed district is attached. The proposed fee for o
connection to the water utility is$2,323.20 per acre. The
proposed fee for connection to the sanitary sewer is$7,115.34
per acre. Information on the estimated total cost of the
construction of the said utilities to serve the district described,
is available from the Engineering Division of the Ames
Department of Public Works. A public hearing on this matter
shall be held in conjunction with the Ames City Council
meeting of November 14, 1995,which shall begin at 7:00 p.m.
in the Council Chambers,City Hall, 515 Clark Street,Ames,
Iowa. I /
Sandra L. Ryan,City Clerk f