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Receive an update regarding the Oakbrook Water Meter Project.
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REQUESTER:
Councilman Roger Neal
BACKGROUND:
The Oakbrook Community, established in 1972, is a private subdivision with eight shared water meters serving 156 residential units and three HOA properties. In 1973, at the request of the developer, the City approved privately constructed streets, assigning responsibility for maintaining streets, open spaces, utilities, and amenities to the Developer and, ultimately, the HOA under the original Declarations of Covenants and Restrictions.
During the July 11, 2023, Budget Retreat, the City allocated $90,000 from the Neighborhood Investment Program to assist with funding Oakbrook HOA's water meter project, with any costs exceeding this amount being the responsibility of the HOA.
In the summer of 2024, the City began transitioning from shared water meters to individual meters for each unit. According to the City Attorney, right of entry (ROE) agreements are required from 100% of property owners before moving forward. Following the City Attorney’s legal advice, the City has received all 156 ROE agreements. The estimated construction cost for the project is $390,000 with the cost per meter to roughly $2,500 per unit (156 residential water meters). The HOA contribution will likely be around $300,000 after the City’s contribution of $90K.
This is a one-of-a-kind project due to the only major bid item being the installation of the water meters. The selected Contractor will still need to saw-cut the existing pavement, cut the existing waterline service, install the new water meter, and repour the pavement material back to its original condition. While a relatively small project, it will require substantial construction work. The project budget does not account for engineering plan preparation, bidding process, and project management that will be completed by City staff.
If the City Council approves the project to move forward, Public Works will allocate 156 water meters from the City’s stockpile inventory. We will replenish the stockpile once the project is near completion. The expectation for overrun is minimal since the only major bid item is the water meter. The Public Works operations crew will be available to assist should staff have any conflicts during the installation of meters.
The City has determined that $300,000 above the City’s $90,000 contribution is needed to complete the project. Public Works staff sent an email to HOA stakeholders requesting the HOA’s not-to-exceed budget on January 8, 2025. The HOA Treasurer shared in their response that they were unsure about the not-to-exceed budget but mentioned budgeting $150,000 based on discussions with previous City staff from a few years ago. They also expressed a belief that there is flexibility for both sides to increase, though the specific amount remains unclear.
On January 26, 2025, the HOA submitted their financial documentation. The financial document is attached for your review along with the corresponding email from the Treasurer of the HOA, Steve Stremel. The HOA is requesting for a 50/50 split with the City for this project. This would allow for a not to exceed budget of $200,000 from the HOA and $200,000 from the City for a total project budget of $400,000.
Additionally, staff asked for an update on the HOA legal team’s review and feedback on the Participation Agreement draft. The HOA is still processing the agreement with their Attorney. This agreement does not need to be finalized until the project is awarded by City Council.
DISTRICT:
District 5
ATTACHMENT(S):
1. January 7, 2025, Memo
2. February 4, 2025, Presentation
3. February 7, 2023, Presentation and Council Meeting Minutes
4. January 31, 2023, Memo and Supplemental Info
5. Oakbrook Timeline
6. Financial Document HOA