Title
Receive an update regarding the Oakbrook Water Meter Project.
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REQUESTER:
Councilmember 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 developer's request, 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.
This is a one-of-a-kind project because the only major bid item is the water meter installation. 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, the bidding process, and project management, which will be completed by City staff.
Once the project has been approved, Public Works will allocate 156 water meters from the City’s stockpile inventory. The City 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.
Staff solicited bids for the project, ranging from $264,074 to $471,515. This range includes a built-in contingency fund of $30,000. If the project incurs no cost overruns, the actual cost will range from $234,074 to $441,515.
City funds have been allocated in the amount of $90,000 for this project. The HOA proposes a 50/50 cost split with the City, with its not-to-exceed contribution capped at $200,000.
At the request of the City Council, research is underway to explore the feasibility of establishing a Public Improvement District (PID) or Tax Increment Reinvestment Zone (TIRZ) for the Oakbrook Community. City staff is coordinating with the City’s legal team on this matter.
The HOA’s legal team is reviewing the Participation Agreement draft. The HOA does not have a timeline for completing that review. This agreement will not be finalized until the City Council awards the project.
DISTRICT:
District 5
ATTACHMENT(S):
1. March 4, 2025 Presentation
2. January 7, 2025 Memo
3. February 7, 2023 Council Meeting Minutes
4. January 31, 2023, Memo and Supplemental Info
5. January 2023 Presentation
6. Oakbrook Timeline
7. Financial Document HOA