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Finley, Hartig, DB & T - Detention Basin D~~~E ~YN--~ MEMORANDUM February 27,2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: The Finley Hospital, Hartig Drug, Dubuque Bank & Trust - Detention Basin Requirements at University and North Grandview City Engineer Gus Psihoyos recommends City Council approval of the proposed Stormwater Facilities Fee Agreement with the development group of The Finley Hospital, Hartig Drug, and Dubuque Bank and Trust, whereby the City will provide detention basin services so the Finley, Hartig, DB&T development at University Avenue and North Grandview meets the City detention basin requirements. Per the terms of the agreement, the City will receive a payment of $26,451. Beginning in 2007, the City will receive an annual payment of $300, which will increase by 2.5% each year thereafter. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi,.~ ~,/; MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer . i Dl:i~~E ~c/k-~ MEMORANDUM February 27,2006 FROM: Michael C. Van Milligen, City Manager Gus Psihoyos, City Engineer ..9G TO: SUBJECT: The Finley Hospital, Hartig Drug, Dubuque Bank & Trust - Detention Basin Requirements at University and N. Grandview INTRODUCTION The purpose of this memo is to seek the City Council's approval of the proposed STORMWATER FACILITIES FEE AGREEMENT between The Finley Hospital, Hartig Drug, and Dubuque Bank & Trust - the owners of the development at the intersection of University Ave. and N. Grandview - and the City of Dubuque. BACKGROUND The proposed Finley-Hartig development at the intersection of University Ave. and N. Grandview exceeds an acre; Per City policy, stormwater detention is required. The site is upstream of the City's Allison-Henderson Detention Basin. All drainage from the Finley-Hartig site flows to the basin. In 2003, the City entered into a Stormwater Facility Agreement with Arbor Glenn Properties, a multi-family residential apartment complex just west of the Carter Road Detention Basin. The City's cost to construct the Carter Road Detention Basin was calculated to be $1,950 per acre of service area. Arbor Glenn Properties made a one-time payment to the City of $15,000 for the 7.77 acres associated with the apartment complex. Beginning in 2004, they have been paying an annual maintenance fee. The fee was established at $600 and starting in 2010 it will escalate at 2.5% each year thereafter. In 2004, with the approval of the City Council, the City entered into a Stormwater Facilities Agreement with QHQ, the developer of Holliday 3rd Addition just north of the City's NW Arterial Detention Basin. QHQ's development totaled 40.9 acres, making up twelve and three tenths percent (12.3%) of the 332.8 acres that contribute stormwater runoff to the NW Arterial detention basin. Therefore, QHQ made a one-time payment to the City of $62,250.00, 12.3% of the City's cost to construct the basin. Beginning in 2005, the City receives an annual payment starting at $4,120.00 and increasing by 2.5% each year thereafter to cover annual maintenance costs associated with the detention basin. DISCUSSION To meet detention basin requirements, the development group for the Finley, Hartig, DB&T site asked City Engineering about the possibility of utilizing the City's detention basin instead of constructing a new detention basin of their own. The proposed Allison-Henderson Detention Basin, located just north of the Finley, Hartig, DB&T site, will be fully functional in the summer of 2006. A hydrologic and hydraulic analysis indicates that the proposed Allison-Henderson Detention Basin can provide the detention required for the Finley, Hartig, DB&T development. The basic premise of the agreement is that the City will provide detention (a service) and the owners of the Finley, Hartig, DB&T will reimburse the City for the cost of the service. The service fee has three components. 1) Cost to Construct the Detention Basin The City's estimated cost to construct the improvements to the detention basin is $6,201 per acre that it serves. At the time of execution of this agreement, the owners of the 2.93 acre Finley, Hartig, DB&T site will make a one-time payment to the City of $18,169.00 as a detention basin construction service fee. 2) Cost to Upsize Storm Sewer to the Detention Basin Because the City planned and budgeted to replace the storm sewer, the developers of the Finley, Hartig, DB&T site need only reimburse the City's cost to upsize the City's storm sewer from a 24-inch diameter sewer to a 30- inch diameter sewer. This cost increase is estimated to be $8,282. At the time of execution of this agreement, the owners of the Finley, Hartig, DB&T site will make a one-time payment to the City of $8,282.00 as a storm sewer construction service fee. 3) Cost of Detention Basin Maintenance Finally, the owners of the Finley, Hartig, DB&T site will be responsible for covering a portion of the City's cost to maintain the Allison-Henderson Detention Basin. The first annual service fee payment of $300 will be due on January 1, 2007 and it will increase by 2.5% each year thereafter. The cost on item #1 to construct the detention basin and #2 the cost up upsize storm sewer to the detention basin were based on engineering's estimate to construct these two items. These costs are subject to change based on final construction costs. In addition to these above mentioned costs for the Finley/Hartig/DB& T participation in the Allison-Henderson detention basin, the developers must construct a storm sewer from their site across University Avenue to the City's storm sewer on Grandview Avenue to accommodate the increased stormwater from their site. RECOMMENDATION I recommend that the City enter into the agreement with The Finley Hospital, Hartig Drug, and Dubuque Bank & Trust. BUDGET IMPACT Per the terms of the agreement, the City will receive a payment of $26,451.00. Beginning in 2007, the City will receive an annual payment of $300 to increase by 2.5% each year thereafter. ACTION REQUESTED I respectfully request that the City Council authorize City staff to enter into the service agreement with the development group of the Finley Hospital, Hartig Drug, and Dubuque Bank and Trust whereas the City will provide detention basin services so that the Finley, Hartig, DB&T development at University Ave. and N. Grandview meets the City's detention basin requirements. attachments Prepared by Deron Muehring cc: Dawn Lang, Budget Director Laura Carstens, Planning Services Manager Kyle Kritz Associate Planner Deron Muehring, Civil Engineer II CITY OF DUBUQUE STORMWATER FACILITIES FEE AGREEMENT THIS AGREEMENT made and entered into this _day of 2006, by and between the City of Dubuque (City) and Owner consisting of: The Finley Hospital 350 N. Grandview Avenue Dubuque, IA Hartig Drug Co., Inc., 703 Main Street Dubuque, IA Dubuque Bank & Trust, Inc. 703 Main Street Dubuque, IA WHEREAS, Owner is proposing to construct the following development (the Project): Description of Project Address of Project and WHEREAS, City policy requires that a development such as the Project include the construction of a private stormwater detention facility to mitigate the increased flow of stormwater runoff caused by the Project; and WHEREAS, City has budgeted funds to construct the Allison-Henderson Detention Basin; and WHEREAS, City has budgeted funds to reconstruct the storm sewer between the project and the Allison-Henderson Detention Basin; and WHEREAS, Owner desires to have the benefit of the service of the Allison- Henderson Detention Basin and the storm sewer and agrees to pay City for the cost of such service. NOW, THEREFORE, in consideration of the terms, conditions, covenants and performances contained herein, the parties hereto agree as follows: 1. City agrees to construct, operate and maintain the Allison-Henderson Detention Basin and the storm sewer immediately downstream of the Project to detain stormwater runoff from the Project and other upstream F-H-DB&T Stormwater Facility Fee Agreement Page 1 of 4 properties that total 43.2 acres. City's cost to construct the Allison- Henderson Detention Basin is estimated to be $267,867.45, or approximately $6,201 per acre. Actual cost will be determined based on final project cost. 2. Owner shall pay the City at the time of execution of this Agreement a detention basin construction service fee in the amount of Eighteen Thousand One Hundred Sixty Nine Dollars ($18,169), based on $6,201 per acre for the 2.93 acres associated with the Project. Service fee will be established based on the City's cost to construct the Allison- Henderson Detention Basin. 3. Owner shall pay the City at the time of execution of this Agreement a storm sewer construction service fee in the amount of Eight Thousand Two Hundred Eighty Two Dollars ($8,282) based on the material and labor costs to upsize 310 linear feet of 24-inch diameter RCP to 30-inch diameter RCP. 4. Commencing January 1, 2007, and on January 1 of each year thereafter, Owner shall pay to City an annual detention basin maintenance fee for the maintenance of the Allison-Henderson Detention Basin. The annual fee for 2007, shall be Three Hundred Dollars ($300.00). The annual fee for 2008 and for each year thereafter shall be calculated by adding 2.5% to the fee for the previous year. [Fee for year 2008 = $300 + (2.5% x $300) = $307.50; fee for year 2009 = $307.50 + (2.5% x $307.50) = $315.19; and so on]. 5. Owner shall design and construct, at Owner's cost, an 18-inch diameter storm sewer from the Project, across University Ave. to a manhole in Allison-Henderson Park. 6. City shall not require Owner to provide on-site drainage detention facilities for the Project so long as City is providing the detention basin service for the Project as provided in this Agreement. 7. Owner agrees that nothing contained herein shall relieve Owner of the responsibility for providing adequate private drainage facilities on the Project site or the responsibility for discharging stormwater to a public drainage facility in accordance with plans therefore approved by the City. Owner shall prepare plans for and construct such drainage facilities in accordance with City's design standards and practices. F-H-DB&T Stormwater Facility Fee Agreement Page 2 of 4 8. This Agreement shall be binding upon City and Owner and their successors, executors, administrators and assigns. 9. It is understood that the Owner will assign, sublet, or transfer its interests in this Agreement, but not without prior written consent of City, which consent shall not be unreasonably withheld. 10. Nothing herein shall be construed as giving any rights or benefits hereunder to anyone other than City and Owner. 11. This Agreement supercedes all previous agreements, oral or written, between City and Owner and represents the whole and entire Agreement between the parties regarding this matter. This Agreement may not be altered, modified or amended except in writing, properly executed by an authorized representative of City and Owner. 12. If any section, clause or provision of this Agreement shall be held invalid, such invalidity shall not affect the validity of any other section, clause, paragraph, portion or provision of this Agreement. 13. The construction, interpretation and performance of this Agreement shall be governed by and construed in accordance with the laws of the state of Iowa. Any action at law, suit in equity or judicial proceeding for the enforcement of this Agreement or any provision thereof shall be instituted and maintained in a court of competent jurisdiction located in the County of Dubuque, State of Iowa. IN WITNESS THEREOF, the parties hereto have made and executed this Agreement the day, month, and year first above written. OWNERS (3) CITY OF DUBUQUE The Finley Hospital Gus Psihoyos Printed Name Title Citv EnQineer Title F-H-DB&T Stormwater Facility Fee Agreement Page 3 of 4 Hartig Drug Co., Inc. Printed Name Title Dubuque Bank & Trust, Inc Printed Name Title F-H-DB&T Stormwater Facility Fee Agreement Page 4 of 4