1997-1007_THE HUNT CLUB_D8_Agenda Report AGENDA ITEM October 7, 1997
TO: George Scarborough, City Manager
FROM: William M. Huber, Director of Engineering & Building
SUBJECT: Consideration of Reimbursement Agreement and Budget Amendment-Hunt Club
Sewer Reconstruction
RECOMMENDATION
It is recommended that the City Council approve the Reimbursement Agreement for the Hunt Club
Sewer Reconstruction and the budget amendment.
SITUATION
A. Summary and Recommendation
The property owners of nine lots in the Hunt Club are currently regrading their sites because
of property slippage. Due to the slippage,the City was going to repair its damaged pipe lines.
The owners have requested that,since the grading necessitates replacement of these lines,the
City funds be applied instead to the replacement costs. Given the extent of this project and
the costs to the homeowners, staff believes that this is a good investment of City funds. The
new lines should provide years of service with little maintenance. The monies would be
reimbursed from the Sewer Enterprise Fund and would require Council approval of a budget
amendment. Therefore, staff recommends approval of the Agreement and the budget
amendment.
B. Background
There has been substantial hillside movement in a canyon area of the Hunt Club. The canyon
area is jointly owned by nine homeowners who are working cooperatively to repair the
damaged slopes. City sewer drains run through the area and are in need of substantial repair.
Initially, prior to the homeowners' developing the current repair strategy, the City was
prepared to expend funds to provide for repairs to and maintenance of the existing sewer
drains in the canyon area. The homeowners were preparing to regrade the canyon, and the
sewer drains would be replaced with the work. Therefore,the homeowners requested that
the City apply the repair monies to the replacement of the lines to help the homeowners defray
some of the costs to rebuild the slopes. Staff believes this to be an appropriate request and
of benefit to both the homeowners and the City.
To determine the costs, the lines were videotaped and reviewed for damages. Costs were
then assigned for the various repairs. There is one line which follows the canyon floor and
FOR CITY COUNCIL AGES" iTt"
AGENDA ITEM -2- October 7, 1997
a sewer line which drops into the canyon from Fox Run Lane. The repair costs are provided
as follows:
Canyon Line Repairs = $46,633
Fox Run Line Repairs = 28,900
TOTAL REPAIR COSTS = $75,533
The attached Reimbursement Agreement is typical of those we have used with previous
projects of this nature. In addition, the reimbursement was not provided for in the approved
1997-98 Operating Budget. Therefore, it is necessary for Council to approve an amendment
to the budget to include the reimbursement from Sewer Enterprise funds. Staff supports the
reimbursement and recommends approval of the Agreement and budget amendment.
FINANCIAL CONSIDERATIONS
The funds are proposed to be drawn from the City's Sewer Fund and will not impact the General
Fund revenues. There are adequate Sewer Fund revenues in reserve to cover this expense.
PUBLIC NOTIFICATION
Hunt Club Homeowners
Mr. Ken Friess
ALTERNATE ACTIONS
1. Approve the Reimbursement Agreement and budget amendment as recommended by staff.
2. Do not approve the Reimbursement Agreement and budget amendment.
3. Return to staff for additional information.
RECOMMENDATION
It is recommended that the City Council approve the Reimbursement Agreement for the Hunt Club
Sewer Reconstruction and the budget amendment.
Respectfully submitted,
"Ze--7-1.----Aa(..___
William M. Huber
Director of Engineering & Building
WMH:ch
Attachment: Reimbursement Agreement