Oleander Investments, LLC - c/o Lang Partners, LLC, has executed a Community Facilities Agreement (CFA) (City Secretary Contract No. 47712) for construction of public infrastructure, including water, sewer, paving, storm drain and street light improvements, to serve the Lang Oleander development with a total construction cost of $654,834.77. The CFA with Oleander Investments, LLC, must be amended to add the construction of an off-site water line to the project and City participation in the amount of $20,737.00 for upsizing the water line from a four-inch line to an eight-inch line to serve anticipated future growth in the area, as shown on the table below. Construction | Developer Cost | City Cost | Total Cost | Water | $5,972.00 | $15,951.00 | $21,923.00 | Contingency (25 percent) | $1,493.00 | $ 3,988.00 | $ 5,481.00 | Construction Subtotal | $7,465.00 | $19,939.00 | $27,404.00 | Construction Fees | Material Testing (2 percent) | $ 149.00 | $ 399.00 | $ 548.00 | Inspection (2 percent) | $ 149.00 | $ 399.00 | $ 548.00 | Construction Fees Subtotal | $ 298.00 | $ 798.00 | $ 1,096.00 | Total Project Cost | $7,763.00 | $20,737.00 | $28,500.00 |
The City's participation, including inspection and material testing fees, is not a lump-sum amount and may be less than the stated amount depending upon the actual quantities and unit prices from the Notice of Final Completion package, commonly referred to as the green sheet package.
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund. Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation authority authorized under the Direct Purchase Note (DPN) Program will be used to provide interim financing for this project until debt is issued. To the extent resources other than the Water and Sewer portfolio are used to provide interim financing, the Water and Sewer Funds will be charged interest that is equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-percent annually). Should the City's portfolio not support the liquidity needed to provide and interim short-term financing source, another funding source will be required, which could mean issuance of securities under the DPN Program or earlier issuance of Water and Sewer revenue bonds than is currently planned. Once debt associated with this project is sold, bond proceeds will be used to reimburse the Water and Sewer portfolio and the City's portfolio in accordance with the attached Reimbursement Resolution.
The City Council adopted the Water Department's Fiscal Year 2016 - 2020 Five-Year Capital Improvement Plan on February 2, 2016 (M&C G-18662). This City Council adopted plan includes this specific project, with funding identified through the DPN Program to be reimbursed with future revenue bonds. In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates presenting revenue-supported debt issuances to the City Council for consideration within the next three years. This debt must be issued within approximately three years to provide reimbursement for these expenses. If that does not occur, the costs will no longer be reimbursable by issuing tax-exempt debt and the funding source will have to be made whole through other budgetary methods. Adoption of this resolution does not obligate the City to sell bonds, but preserves the ability to reimburse the City from tax-exempt bond proceeds.
The project is located in COUNCIL DISTRICT 9, Mapsco 76L.
This M&C does not request approval of a contract with a business entity. |
