The first draft of a new Utility Latecomers Agreement between the city of Bonney Lake and the Eastown landowners estimates the total cost of the “backbone” system to be $2,471,790.
The total cost of construction, however, is estimated at $1,814,100. At that estimate, the 5 percent to be contributed by the landowners comes to $90,705.
Public Works Director Dan Grigsby said the difference between the two numbers, $566,985, comes primarily from design work and purchases of land and easements for the projects. By city code only the ULA partner’s contribution is 5 percent of construction costs.
The council earlier this year voted down a ULA agreement that called for a larger, $4 million system to be installed and the issue seemed dead, but this fall Councilman Randy McKibbin and Deputy Mayor Dan Swatman revived the issue, cutting the size of the system in half.
The new version unanimously passed the council, several members of whom were concerned the initial ULA was too large and risky.
Under a latecomer agreement, a municipality and a partner agree to pay the up front costs for the installation of a piece of infrastructure, but can make their money back as developers attach to the system and pay their fees over a 20-year period.
According to city calculations, the rate each party would be paid back by developers as they connect would be $16,104 per acre to the city and $591 per acre to the Eastown Sewer Development Association LLC.
There may also be additional costs to run pipes to the “backbone” system the city would install.
According to the documents, the system would consist of a new sewer lift station at a cost of $834,800, downstream sewer lines from the lift station to 214th Avenue and upstream sewer lines from the loft station to 226th Avenue at a cost of $929,300.
Though it is not the entire Eastown system originally designed, Grigsby said it would still be a “huge thing” to get the pipes extended that far and should encourage more development in that section of the city.
Grigsby said the council will begin the process in early January, including announcements and a public hearing, followed by a vote on the finalized ULA in early February.
Should everything go as planned, Grigsby said construction will start int he spring with a completion date of fall 2013.