Finance Committee Agenda and Packet 2014 09 15

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Cityof NEN Louisville COLORADO - SINCE 1878 CITY COUNCIL COMMUNICATION AGENDA ITEM SUBJECT: DAVIDSON HIGHLINE DITCH COMPANY, PERMIT FEE WRITE - OFF DATE: SEPTEMBER 15, 2014 PRESENTED BY: TROY RUSS, AICP, PLANNING AND BUILDING SAFETY SUMMARY: Louisville entered into the Steel Ranch South Subdivision Agreement August 14, 2012. The Subdivision Agreement established the contract between the developer of the property and the City to construct the public improvements required in Steel Ranch South Planned Unit Development (PUD). The Subdivision Agreement included a special provision where the developer agreed to construct a City owned regional trailhead (including piping of the Davidson Highline Ditch) on Outlots 1 and 2 of the Subdivision with City reimbursement in an amount not to exceed one hundred and fifty thousand dollars ($150,000.00). The trailhead improvements — referred to as the "City Improvements" in the Agreement —were constructed to City standards and financed in compliance with the recorded Subdivision Agreement. The Davidson Highline Ditch runs along the entire north boundary and was also piped by the developer in the area east and outside of the City Improvements. In closing the project, the Public Works Department received an invoice from the Davidson Highline Ditch Company for $32,338.00. The invoice received was for the permitting of the Ditch's piping. The costs included a capitalized maintenance fee and pipe replacement cost ($29,000) and Ditch Company legal fees ($3,338). The invoice was forwarded to the developer, which has declined to pay Ditch Company's bill. After reviewing the Subdivision Agreement and the City's Agreement with the Ditch Company related to the City Improvements with the City Attorney, staff is recommending the Finance Committee direct the Finance Department to write -off the requested reimbursement of invoice as an unanticipated City cost. Section 2.1 (Rights -of -way, Easements and Permits) of the Subdivision Agreement states the Subdivider is responsible for acquiring common use agreements with affected ditch companies for improvements related to the Subdivision but also includes more specific language regarding the City Improvements. Specifically, it states "the City shall be responsible for negotiating in good faith an agreement with the Davidson Highline Ditch Company regarding piping of the Davidson Highline Ditch as required for the City Improvements. The Subdivider shall be responsible at its expenses [sic] for obtaining any other easements or permissions necessary for any modifications to any existing ditches or laterals to be modified as part of the subdivision development... ". CITY COUNCIL COMMUNICATION 6