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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Public Works Committee Item: Twite Sewer Rebate Agreement Date: November 6, 2009 Prepared by: Jessica Miller Initiated by: Steve King Action Required: Approve and authorize the Mayor to sign an agreement with Lloyd A. Twite Family Partnership for Miller Creek Sanitary Sewer System Improvements. Recommended Motion: The committee recommends the City Council approve and authorize the Mayor to sign an agreement with Lloyd A. Twite Family Partnership for Miller Creek Sanitary Sewer System Improvements. Timeline: Referral to committee: November 9, 2009 Committee discussion: November 18, 2009 Background and Alternatives Explored: The current City of Missoula Sanitary Sewer System Main that serves the properties in the Miller Creek area is at or near capacity and must be expanded to serve any proposed development. Through the extension of the proposed new sewer main to Miller Creek, the City can convert existing areas of STEP sewer service to conventional gravity sewer service, thereby saving the City operation and maintenance costs from the waste water treatment budget. Twite has approached the City expressing a proposed willingness to finance and construct sanitary sewer mains to serve existing and future developments within the Teton Addition Service Area. The City has the authority to collect fees from the property owners at the time of connection to the sanitary sewer system. The extension of the sewer system to the Miller Creek area is necessary to facilitate developer contributions for street improvements to Miller Creek Road. Upon completion of construction and acceptance by the City of the improvements, Twite will convey all right, title and interest to the City. Financial Implications: The City will collect $2,300 for each residential or commercial unit in the Teton Addition service area. A payment of $2,202 shall be made to Twite and the City shall retain $98 for each sanitary sewer connection for administrative costs. Potential revenue to the City is $78,400. Attachments: Sanitary Sewer Rebate Agreement