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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