Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to execute a reimbursement agreement with R&N Property Holdings, LLC (R&N) to reimburse R&N for the construction of a sanitary sewer constructed along Chambers Road and to settle claims related to R&N’s construction of the sewer. The sewer will provide sanitary sewer service to a property related to R&N and to other properties currently served by home sewage treatment systems (HSTS) along Chambers Road. The sewer was constructed under the provisions of City Code Chapter 1141, which provides that the entity constructing the sewer can recover a proportionate share of its construction costs from abutting properties that connect to the sanitary sewer based on the front footage of the property connected. The total cost of construction was $450,152.00, which corresponds to a proportional cost of $586.55 per foot of frontage. This cost exceeds the $45.00 per foot fee that the City charges for connection to a sewer constructed by the City through its Capital Improvements Program (CIP), and a disagreement arose regarding the front footage fee recoverable by R&N under the provisions of City Code Chapter 1141. In an effort to improve the environment and address health issues associated with HSTS, the Department of Public Utilities (DPU) has implemented through its CIP a program to eliminate HSTS and provide centralized sewers to unsewered areas throughout the city, and under this program DPU would have eventually constructed a sewer in this area had R&N not done so. In consideration of this effort and to limit the cost for abutting properties to connect to the sewer, DPU agreed to reimburse R&N $335,870.26, which corresponds to the cost of construction of the sewer less the proportionate front footage fee attributable to the R&N property connected to the sewer. As part of the agreement, the City will take over ownership of the sewer and R&N will agree to release the City from any re...
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