STAFF REPORT
Operations Committee,
August 2, 2006
Utility Service to the Mills Farm Subdivision
(EN07-008)
Consideration of a request to enter into a
reimbursement contract with Toll Brothers, Inc. for offsite water lines to serve
the Mills Farm Subdivision
Speaker:
Steve Brown
From: Tim
Bailey, P.E., Director of Engineering
Prepared by: Steve Brown, P.E., Associate Director of Engineering
Approved by: William B. Coleman, Jr., Town Manager
Approved by: Benjamin T. Shivar, Assistant Town Manager
Mr. David J. Neill of Smith Moore LLP requested that the Town enter into a reimbursement contract with Toll Brothers, Inc. for an offsite water line for the Mills Farm Subdivision. The portion of the request eligible for reimbursement is approximately 918 linear feet of 16” diameter water line along Green Level Church Road, with an estimated value of approximately $86,428. This offsite water line is located along Green Level Church Road north of the northern property limit of the proposed development.
Policy Statement 23 allows developers to enter into reimbursement contracts for regional offsite utilities since these systems serve much more than the development. Reimbursement contracts allow developer to receive fee credits for the construction cost of regional utilities. In this case, the developer will receive fee credits towards the water development fee. When building permits are obtained, the developer may use these credits instead of paying the impact fee. Soft costs such as design, surveying, permitting and construction administration are paid by the developer and are not eligible for fee credit. The developer is responsible for the payment of all other fees and charges, as well as any amount of water development fees that exceed fee credits.
Fiscal Impact: The Town has no direct cost and all the risk is covered by the developer. The Town does forfeit collection of some impact fees which are intended to cover line cost as one component of the fee.
Staff Recommendation: Staff recommends entering into a reimbursement contract with Toll Brothers, Inc. for construction of the offsite water lines serving the Mills Subdivision.