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To date the construction cost of the watermain west of 66° Avenue to Indian River County Department of Utility Services (IRCDUS) is $207,332.69. The purpose of the subject memorandum is to present a cost recovery mechanism where both parties (Residents & IRCDUS) ultimately share in the cost of the project and have that mechanism approved by BCC. ANALYSIS Depending on the type of project, there are many cost allocation methods available. On an assessment project, 100% of the cost of installing the water or sewer line is borne by those properties that are benefitting from the project and the costs are typically calculated based on three (3) methods outlined below. 1. Square foot cost method: The square footage of the benefitting property as determined by the parcel boundaries is divided by the total square footage of all benefitting properties in order to determine a percentage of cost. The Pine Tree Park assessment is a good example. Residents were within the Urban Service Area and paid 100% of the cost for water in their subdivision and assessed varying amounts based on the square footage of their property. Cost to residents ranged from $1,500 to $22,000 depending on parcel size. For 33' Street, this type of cost determination would vary substantially as some of the lots that could benefit from the project are quite large. See Attachment No. 2. 2. Linear Foot Method: The linear foot of the resident's property line adjacent to the utility is divided by the total linear foot of all property owners and a percentage of cost is determined. This percentage is applied to the total cost. This method also has varying numbers. 3. Equal basis: A very straightforward method of taking the total cost of the project and dividing it by the number of properties which equates to an equal cost to all benefitting properties regardless of frontage size or square footage of the parcel. Staff does not recommend this method when the properties have varying future land use as is the situation with 33" street. Staff evaluated another method centered on the potential consumption computed based on the underlying future land use designation. This method is labeled Hydraulic Fair Share. Hydraulic Fair Share (HFS): This method is very similar to evaluating the number of Equivalent Residential Units (ERU's) required of a given property based on the underlying land use and zoning. An ERU is the amount of water used or wastewater produced by a typical residential unit, which water use ranges from zero to three hundred (300) gallons per day on a maximum day basis or zero to two hundred fifty (250) gallons per day on a maximum month basis. Staff feels that this method is fair and equitable to single family residents especially along the north side of the 33' Street corridor. The dividing line of the Urban Service Area (USA) is 33rd Street. The future land use will only allow 1 unit per 5 -acres for the properties located on the north side of 33rd Street and 3 units per 1 -acre for the properties located on the south side of 33' Street. On August 13, 2015 the Planning and Zoning Commission approved the Seapine development on the south side of 33' Street for 42 units within 20 -Acres. Although, the properties to the north are outside the USA, per the 2030 Comprehensive Plan Potable Water Sub -Element Policy 5.7, "Areas outside of the Urban Service Area where at least a portion of the site is contiguous to an Urban Service Area boundary as depicted on the Official Future Land Use Map" can connect to County water. F:\Utilities\UTILITY - Engineering\Projects - Utility Construction Permits\IRC - 66th Avenue from South of SR 60 to 57th St (FY 2011) UCP 4098\Admin\BCC Agenda -Capital Recovery 33rd Street-rev4.doc 314