City Council Spending

From: David Mumford

Have you heard how the city council is spending our tax dollars this time? FedEx is building a new distribution center on Hesper Road between Shilo and Gable. The City Council not only rezoned the site so FedEx could get a permit to build there, but now they are going to be stuck paying to install new sewer service to the site as well. See the city council meeting agenda from 9-9-13 below. To us it would have made sense to not change the zoning, not pay for the new sewer service and not invite truck traffic on what is likely to be a very busy exit with all the development happening on Shilo and West. Couldn’t they find some property south of the interstate if the city was not willing to cave into them?

Compensation Agreement for P-656, Certificate of Survey 3329, Tract 1B (Fed Ex distribution facility property)

	Public Works	David Mumford
	In order to obtain sanitary sewer service, the developer of the FedEx Ground property, SunCap Property Group, is extending 1,150' of 18" sanitary sewer main in Hesper Road between Gabel Road and Shiloh Road. The extension was not a planned project in the CIP so the developer will pay the entire cost of the project. The City's Rules and Regulations for Water and Sanitary Sewer include compensation to developers for the entire cost of constructing sanitary sewer mains over 12" in size. As such, the developer desires to be compensated for these costs in full and the Public Works Department proposes that such compensation be accomplished through the attached agreement.
	The Council may: Accept the compensation agreement; or Do not accept the compensation agreement. Rejecting the agreement would be contrary to the City's policy which compensates developers who install large diameter public mains as part of their development.
	Based on the lowest bid price for the installation of the sanitary sewer mains, it has been determined that the eligible cost recovery by the developer is $348,722.60. The timing of the City's participation in the project cost is determined in conformance with the budget approved by City Council.
	Staff recommends that the Council authorize the Mayor to execute the attached compensation agreement. Compensation shall be based on the final sanitary sewer utility costs.

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