Title
Authorize Additional Connect Free Program funding for the GRACE Marketplace One Stop Homeless Assistance Center (B)
This item proposes to request City Commission approval to provide additional Connect Free Program funding in the amount of $201,500 to cover the revised total cost to install the water/wastewater extension and services for the GRACE Marketplace One Stop Homeless Assistance Center.
Explanation
Effective October 1, 2001, GRU began collection of a 25 percent surcharge on connection charges for customer connections to the water and wastewater system outside of the city limits. On July 28, 2003, the City Commission passed Resolution #030223 specifying that one-half of the surcharge monies from this source would be used to extend water, wastewater and reclaimed water services within the City. The resolution specified that the program funding to be allocated address water and wastewater needs as follows: 1) 20% Public Health, Safety and Environmental; 2) 20% Affordable Housing; and 3) 60% Programmed Water/Wastewater Extensions. Program funding not expended in the Public Health and Affordable Housing set-asides by the end of each fiscal year is rolled over to the Programmed Extensions set-aside.
On April 1, 2010, the City Commission approved Connect Free Program Funding in the amount of $423,500 to cover the water/wastewater extension and services for the GRACE Marketplace One Stop Homeless Assistance Center, which includes the installation of a lift station, force main, and water services for the project and surrounding area.
Over the last several months, staff have been working with the engineering firm Causseaux, Hewitt & Walpole (CHW), who were contracted to design the utility infrastructure for the GRACE Marketplace & adjacent roadway. As part of this process, CHW reviewed and evaluated the estimated costs for the water/wastewater infrastructure installation for the project. As part of CHW's review and evaluation, a final cost estimate of $625,000 was established for the water/wastewater infrastructure installation. As a result, the final cost estimate is $201,500 higher than the preliminary cost estimate of $423,500 to cover the water/wastewater infrastructure costs. In December 2010, the City's Connect Free Committee (CFC), comprised of General Government and GRU staff, reviewed and evaluated the requirement for the additional funds to ensure that the needed connections and services were being provided to the project. Therefore, the project will need additional funding in the amount of $201,500 from the Connect Free Program to cover the difference between the preliminary and final cost estimates to install the required connections and services.
The Connect Free funds will assist in covering the estimated cost of the water and wastewater systems for the GRACE Marketplace project. Any upsizing of the water lines in order to allow service to other properties will be the responsibility of the neighboring property owner. ADC will also pay for the pipe system that runs from the meter location on the site to their property.
The lift station will be designed to GRU's design standards and will be owned and maintained by GRU. Future connections to the lift station and force main will be subject to GRU's standard extension and connection policies. Under the GRU lift station and force main rebate policy any developments that connect to the lift station and/or force main within the next 10 years must pay a rebate based on the amount of lift station and force main capacity they will utilize. Any rebates obtained from surrounding property owners would be refunded to the Connect Free Program to fund on-going projects. The rebate period expires after 10 years.
In reviewing the FY 2010 budget for the ConnectFree fund (Fund 117), a total of unexpended funds in the amount of $188,721 were rolled from Public Safety ($91,546) and Affordable Housing ($97,175) into Programmed Extensions. Therefore, staff recommends allocating the additional funding from Public Services and Affordable Housing rollover of $188,721 plus $12,779 from Programmed Extensions to cover the total installation costs, which equates to $201,500. This would provide a total of $625,000 to cover the water/wastewater installation costs as estimated by CHW for the projects. The additional Connect Free Program funding will reduce the funding gap by providing the additional revenue needed to continue moving the project forward.
Fiscal Note
Funds are available in the Connect Free Program, Programmed Extensions set-aside allocation to fund the additional project costs of $201,500.
Recommendation
The City Commission: 1) approve the allocation of additional Connect Free Program funds in the amount of $201,500 to cover the cost to provide water/wastewater connection and services for GRACE Marketplace One Stop Homeless Assistance Center.