HomeMy WebLinkAboutAgenda Statement 1984/09/11 Item 9 COUNCIL AGENDA STATEMENT
Item 9
Meeting Date 9/11/84
ITEM TITLE: Resolution 4/7,..4W- agreement for perpetual
maintenance and o ration of a sewage lift station in Rancho
Robinhood III subdivision
SUBMITTED BY: Director of Public Works/
City Engineer (4/5ths Vote: Yes No X )
REVIEWED BY: City Manager 1
Ponderosa Homes Inc. , successors in interest to Robinhood Homes, Inc. , the
original developers of the Rancho Robinhood III subdivision, have requested
that the City agree to maintain and operate the subdivision's sewage lift
station in perpetuity.
We have estimated an amount required to assure that sufficient funds will be
available to cover the anticipated annual maintenance/operation expenses and
have prepared an enabling agreement.
RECOMMENDATION: That Council approve agreement for the perpetual operation
and maintenance of the sewage lift station in Rancho Robinhood III subdivision.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
On May 13, 1977, Robinhood Homes, Inc. , original builders of the Rancho
Robinhood III subdivision, entered into an agreement with the City whereby we
agreed to operate and maintain the subdivision's sewage lift station and the
developer agreed to pay the cost thereof. Subsequently, the City Council , by
Resolution No. 9092, agreed to the assignment of the maintenance agreement to
Ponderosa Homes, Inc. , the new owners of the subdivision.
The maintenance agreement obligated the City to maintain and operate the lift
station and the developer to reimburse the City on a quarterly basis for the
cost we incurred. Since the development is now sold out, the developer wants
to be relieved of this quarterly obligation.
We have reviewed the cost of operating and maintaining the facility and
estimate that a lump sum payment of $34,000 creates a fund that would generate
adequate income to cover our perpetual annual costs. This is assuming that
these funds are invested and the interest earned goes towards maintenance and
replacement costs. The developer has paid this amount and has executed an
agreement whereby we relieve the developer of the ongoing responsibility.
FISCAL IMPACT: The $34,000 lump sum payment by the developer will generate
adequate annual income to cover the expected operation and maintenance costs.
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