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HomeMy WebLinkAbout15.B.5. Proposal of Gonyea Land/Pulte Homes regarding sanitary sewer for plat of Park Meadows East I S13. s-: CITY OF SHAKO PEE Memorandum TO: Honorable Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Proposal of Gonyea Land/Pulte Homes regarding sanitary sewer for plat of Park Meadows East MEETING DATE: April 19, 2005 INTRODUCTION: In February ofthis year the City Council approved the request of Centex Homes for preliminary plat approval of Park Meadows East. Centex Homes has since abandoned the project, and Gonyea has been in discussion with Pulte Homes about Pulte taking over the project. GonyealPulte have asked that the Council consider their proposal for funding needed sewer improvements (see resolution prepared by Pulte, a copy of which is attached to this report. At its April 12, 2005 workshop the Council directed that this item be brought back for further discussion on April 19th. DISCUSSION: Only a portion ofthe Park Meadows plat can be served by existing sanitary sewer lines. The majority of these lots can only be served if either 1) a sanitary sewer trunk line is extended along CR 83 from CR 16 to about Valley View Road, or 2) the plat is allowed to be served by a lift station. When both the Park Meadows East and RADS proposals for development were being considered by the City, staff believed that it would be possible for the two developers to negotiate a cost sharing agreement for the sewer extension. However, with the recent acquisition of the RADS property by the Shakopee Mdewakanton Sioux Community (SMSC) only the Park Meadows East property remains to bear the costs. At this time staff does not know the likely cost of the sewer extension, and a feasibility report would need to be completed to better estimate the cost. At this time, staff resources would not be availability to complete a feasibility report, and a proposal for the preparation would need to be sought from the City's engineering consultants. That proposal would be brought back for actual Council approval. In any event, it is highly unlikely that a sewer extension project could be completed in 2005. At this time easements in which the sewer would be located on the east side of CR 83 have not been secured by Scott County. If the sewer line could not be located on the G:\CC\2005\04-19\ParkMeadowsEast.doc 1 east side of CR 83, easements would have to be. secured on the west side of CR 83, which would require additional time. The alternative is to allow the plat of Park Meadows East to be served by a lift station. This option does not, of course, provide sewer capacity in the long run for the development of properties to the south and southwest of Valley View Road. ACTION REQUESTED: Provide direction to staff regarding whether to develop and bring back a proposal for a feasibility study for the sanitary sewer extension along CR 83. Provide direction to Gonyea/Pulte direction regarding whether the Park Meadows East plat can be served in the near-term by a lift station. ~d;~~ R. Michael Leek Community Development Director G:\CC\2005\04-19\ParkMeadowsEast.doc 2 CITY OF SHAKOPEE Memorandum TO: Michael Leek, Community Development Director FROM: Bruce Loney, Public Works Director SUBJECT: Park Meadows East Proposal from Pulte Homes of Minnesota Corporation DATE: April 14, 2005 Attached to this memo is a proposal from Pulte Homes of Minnesota Corporation in regard to the extension of the sewer to their property. Park Meadows East did receive preliminary plat approval and the developer, at that time, was Centex Homes. They were working with Ames Construction, who owned the 40 acres on the east side of C.R. 83, to . extend the trunk sewer line to this area. Ames Construction has sold their property to the Mdewakanton Sioux Community and Centex Homes has pulled out of the Park Meadows East development. The following are comments that I have in regard to the Pulte Homes proposal: 1. The cost share of the sewer is only for the cost of the lift station and forcemain, which is what the developer would have to pay in order to have sewer service to this property if the City allowed a temporary lift station. City staff has calculated that approximately $175,000.00 of trunk sanitary sewer fees could be generated on properties north of Valley View Road and on the west side of C.R. 83 upon development. Staff has offered these dollars for the extension of trunk sanitary sewer to the developer. The exact cost of the trunk sewer extension is not known, due to the difficulties in obtaining right-of-way and/or dealing with existing utilities, and a limited construction workspace. Council should provide staff with some direction on cost sharing which they believe is appropriate. One. suggestion may be that the developer pay $150,000.00 plus trunk sanitary sewer fees and 50% of the cost of the trunk sewer line extension to and through their property above $325,000.00. The City of Shakopee would pay the other 50% above $325,000.00 of the cost from the Trunk Sanitary Sewer Fund. 2. A detailed cost estimate, either through a feasibility report by City staff or City consultant, or a detailed cost estimate by the developer's engineer with review by City staff needs to be done to determine a cost for this project. This cost estimate should look at constructing the sewer line on either side of C.R. 83, due to the right-of-way situation for extending the sewer. The cost of the feasibility report or the detailed cost estimate should be paid for by the developer. 3. Timing of the improvements would need to be determined based on right-of-way acquisition and a detailed schedule, which could be accomplished through the detailed cost estimate report. The proposed completion of the sewer line by September 1, 2005 is simply not realistic. The City Council could discuss the option of allowing a temporary lift station and not extending gravity sewer, with the developer paying a certain dollar amount toward future gravity sewer extension and trunk fees in order to expedite the right-of-way for Valley View Road for that segment to be completed. This concludes my review on the Pulte Homes of Minnesota Corporation proposal on sanitary sewer extension for the Park Meadows East plat. If you have any questions in regard to this memo, please feel free to contact me in my office. ~Lone Public Wor BUpmp ENGRlEMPLOYEEFOLDERlPPENNlNGTONIWORDIPULTEHOMES CITY OF SHAKOPEE, MINNESOTA RESOLUTION At a duly called meeting of the City Council of the City of Shako pee (the "City"), the City Council adopted the following resolution: WHEREAS, Pulte Homes of Minnesota Corporation ("Pulte") is the contract purchaser of the real property platted as Park Meadows East (the "Property"); WHEREAS, sewer extension or installation of a lift station is necessary to provide sanitary services to the Property; WHEREAS, the City desires to extend sewer to the Property and have PuIte share in the expense of such extension; WHEREAS, Pulte has agreed to contribute $150,000.00 to the cost of the sewer extension to the Property and to pay any trunk fees applicable to such extension, provided that the sewer extension is completed by September 1, 2005 and, if the extension is not completed by September 1,2005, Pulte will install a lift station on the Property at its expense; NOW', THEREFORE, BE IT RESOLVED, that the City shall extend sewer to the Property and Pulte shall contribute $150,000.00 to the cost of the sewer extension and pay any trunk fees applicable to such extension, provided that if the sewer extension is not completed by September 1, 2005, the City hereby consents to PuIte's installation of a lift station on the Property at Pulte's expense and Pulte shall not bear any cost of extension of sanitary services to the Property. Adopted this _ day of April, 2005 by the Shakopee City Council. ATTEST: City Clerk M:\DOCS\KRS\24009 Pulte-BJ One\City Council Resolution.doc