DATE: August 11, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, Assistant City Administrator - Public Works
Paul Holzen, Director of Engineering/City Engineer
Michelle Hatcher, Director of Water Management
SUBJECT:
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Consideration of Sanitary Sewer Reimbursement Agreement (COF 2017-0132) Between the City of Franklin and Clayton Properties Group, Inc. with respect to the Shadow Green Subdivision PUD. (08-22-17 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a sanitary sewer reimbursement agreement.
Background
The Shadow Green PUD Subdivision Development Plan was submitted to the Franklin Municipal Planning Commission with a request to rezone the property from Light Industrial to SD-R (5.0). As part of the rezoning request the City evaluated the capacity of the downstream sanitary sewer infrastructure. During this evaluation, it was determined that the 10” Saw Mill Creek Interceptor would be over capacity with the additional density being added as part of this proposed development plan.
This issue is a direct result of multiple rezoning and developments to include Shadow Green Subdivision PUD, The Grove at Shadow Green Apartments, Shadow Green II and Through the Green PUD Subdivision. The estimated cost associated with upsizing the necessary infrastructure is $950,092.43 and will require offsite easement acquisition. It has been determined that the proposed development should be responsible for 27% of the overall project cost. In addition, Clayton properties Group, Inc. (Goodall Homes) also developed Through the Green PUD Subdivision and they should be responsible for 10% of the additional cost. Below are two options on how to proceed.
Option 1 - Require the Developer to pay 37% of the overall project cost as shown on Exhibit A and the City would pay 63% (Estimated at $597,684.26) of the overall project cost.
Option 2 - Require the Developer to pay 27% of the overall project cost as shown on Exhibit A and the City would pay 73% (Estimated at $693,539.28) of the overall project cost.
The developer shall be required to make these improvements prior to obtaining any building permits associated with the project.
Financial Impact
Option 1 - $597,684.26 - Payed out of the Sanitary Sewer annual budget.
Option 2 - $693,539.28 - Payed out of the Sanitary Sewer annual budget.
Recommendation
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Staff recommends approval of Option 1 and COF 2017-0132 contingent upon final review and approval from the City Administrator and City Attorney.