MEMORANDUM 06-98

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: May 17, 2006

Subject: East End Road Water & Sewer Extension LID

Final Acceptance and Cost Determination

The East End Road Water and Sewer Extension LID is complete and Public Works has accepted the project. Below is an overview of the costs of the project: (Final Assessments will be verified by the Homer City Clerk and Finance Department)

Total Combined Water & Sewer Extension Costs $904,301.49

Includes Kachemak & Homer Shares

Total Combined W&S Extension Original Estimate $1,104,386.27

Includes Kachemak & Homer Shares

City of Homer Water LID Improvements $269,213.74

Plus 5% Admin on Property Owner Share $ 10,095.52

City of Homer Sewer LID Improvements 255,061.69

Plus 5% Admin on Property Owner Share $ 9564.82

Kachemak Share Water Extension $252,447.50

Plus 5% Admin $ 12,622.38

Kachemak Share Sewer Extension $127,240.23

Plus 5% Admin $ 6362.02

Determination of Assessments

City of Homer Water LID Assessments

The total cost of water improvements associated with the City of Homer LID is $269,213.74. The City (HAWSP) is responsible for 25% of the cost of the improvements. The cost to the property owners is $212,005.83 (75% plus 5% admin) . There are 17 lots in the water LID (see attached water LID map). The estimated per lot assessment is $12,470.94. The original estimated assessment was $15,689.97.

City of Homer Sewer LID Assessments

The total cost of sewer improvements associated with the LID is $255,061.69 The City (HAWSP) is responsible for 25% of the cost of the improvements. The cost to the property owners is $200,861.09 There are 12 lots in the sewer LID (see attached sewer LID map). The estimated per lot assessment is $16,738.43. The original estimated assessment was $20,721.26.

Kachemak City Share of East Road Water Extension Improvements

The original estimate for Kachemak City was .484% of the total of water improvements based on the area and lots potentially served. The total amount due is .484% of the total plus the standard 5% admin fee, for a total of $265,069.88. Assessments will be created for the affected lots to be collected in some fashion at such time as connections are permitted. Estimated property owner assessments are $16,566.87, based on 16 existing lots.

Kachemak City Share of East Road Sewer Extension Improvements

The original estimate for Kachemak City was .333% of the total of sewer improvements based on the area and lots potentially served. The total amount due is .333% of the total plus the standard 5% admin fee, for a total of $133,602.25. Kachemak City will assess their own residents and pay Homer the entire amount.

Recommendation: The Council schedule public hearings and create the assessments for this project.