Memorandum

City of Lawrence

Utilities Department

TO:	Diane Stoddard – Interim City Manager Casey Toomay – Assistant City Manager
FROM:	Mike Lawless – Deputy Director of Utilities
CC:	Dave Wagner – Director of Utilities Philip Ciesielski – Assistant Director of Utilities Beth Krishtalka – Assistant to Director
DATE:	May 11, 2015
RE:	Revision to the West Baldwin Creek Gravity Sewer Line Connection Fee to Reflect Actual Construction Cost

Background

On June 12, 2007, the City Commission adopted Ordinance 8118 establishing the West Baldwin Creek Gravity Sewer Connection Fee. The connection fee was established for five (5) tracts of land (see attached map) that flowed to Pump Station 45 (PS 45). The development proposed by these five (5) tracts was above the capacity of PS 45. The location and capacity of the West Baldwin Creek Interceptor Sewer (WBCIS) was such that the additional sewer capacity requested by these tracts could be accommodated in the design.

The WBCIS was just in the planning stages for design and development of these tracts was believed to be ready to proceed before the WBCIS was constructed. In order to allow development to proceed, the fee for each tract in Ordinance No. 8118, was developed using sanitary sewer flows for the proposed developments and project cost estimates and capacities for the WBCIS from the 2003 Wastewater Master Plan. Development on these tracts could proceed once the connection fee was paid.

A recent inquiry questioned the appropriateness of the estimated project cost in the ordinance when compared to the final cost of the project. A review by staff found the final project cost of $311 per gallon per minute was less than the $665 per gallon per minute used to calculate the fees in the ordinance. Staff has prepared Ordinance No. 9112 that revised the fee for each tract to reflect the final project cost for the WBCIS.

Tracts 4 and 5 have paid the fee as outlined in Ordinance No. 8118 and would be refunded $28,700 and $19,842 respectively. Tract 3 has paid the fee as outlined in the proposed Ordinance No. 9112 but would be billed the difference if the proposed ordinance is not adopted.

Action

Adopt on first reading, Ordinance No. 9112, revising the West Baldwin Creek Gravity Sewer Line Connection Fee.