Title
Resolution to Establish the Fixed Charges for the 2010 Water and Sanitary Sewer Improvement Charges
Memorandum
We recommend your approval of the attached resolution which establishes the 2010 water main and sanitary sewer improvement fixed charges as required by Section 1:274 of the City Code. These charges will also be used in construction of applicable special assessment projects.
The following charges are recommended for 2010:
· Water Main Improvement Fixed Charge: $14,129.00 per residential unit served
· Sanitary Sewer Improvement Fixed Charge: $21,930.00 per residential unit served
The previously established charges for 2009 were $12,559.00 for water main and $20,987.00 for sanitary sewer as established by Council on October 20, 2008 (R-08-445).
The water main improvement fixed charge was determined by an average cost per unit for the ten most recent water main projects constructed by Public Services. The sanitary sewer improvement fixed charge was determined using the same method with the ten most recently constructed sanitary sewer projects. For water main, the cost difference between 2009 and 2010 is due to cost forwarding using the Handy-Whitman Index, described below. For the sanitary sewer, the cost difference is due to cost forwarding using the Engineering News Record Index.
The actual cost of each water main project was cost forwarded using the most recently available published index number (July 2008) from the Handy-Whitman Index for "Distribution Plant - Mains, Average All Types". The same method was used for determining the Sanitary Sewer Improvement Fixed Charge except that the 2008 average annual index number from the Engineering News Record Construction Cost Index was used to cost forward the project costs.
Also attached for your reference is a table of credits used for first time connection of vacant City single- and two-family parcels connecting to historic (pre-2004) water and sanitary mains (in accordance with Chapter 13 of the City Code).
Staff
Prepared by: Homayoon Pirooz, P.E., Project Management Manager
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, Section 1:274 of Title I of the Code of the City of Ann Arbor requires City Council to annually establish the fixed charges for Water Main Improvement Charge and the Sanitary Sewer Improvement Charge for residential water main and residential sanitary sewer in accordance with prescribed methodology; and
Whereas, The Public Services Area used the ten most recent projects built by the City in each category, cost forwarded, as a baseline to establish the fixed charges for 2010;
RESOLVED, That the City Council establish the 2010 Water Main Improvement Charge Fixed Charge to be $14,129.00 per residential unit served;
RESOLVED, That the City Council establish the 2010 Sanitary Sewer Improvement Charge Fixed Charge to be $21,930.00 per residential unit served; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.