Council accepts developer-built 660-zone reservoir and booster station; certified construction cost $8.42 million

Port Orchard City Council accepted ownership of a developer-built 660-zone water reservoir and a 580-to-660-zone booster pump station that McCormick Communities LLC constructed under a development agreement, establishing the projects' total certified construction cost at $8,421,718.35.

City staff said construction was completed, certified cost documentation and a bill of sale have been submitted, and the developer is eligible for capital facility charge credits as specified in the development agreement. Staff reported the certified construction costs at $6,172,094.68 for the 660-zone reservoir and $2,249,623.67 for the 580-to-660 booster station.

Under the credit provisions in the negotiated agreement, the maximum allowable credit for the 660-zone reservoir is $2,850,000 and the maximum for the booster station is $750,000. Staff told council the total credits available to McCormick Communities LLC will therefore be capped at those amounts; the city receives the infrastructure and the difference in construction cost benefits the city financially compared with building the asset itself.

Councilmember Wharton moved the resolution to accept the projects and establish the certified construction cost; Councilmember Rosa Pepe seconded. Council approved the resolution by voice vote with no recorded opposition. Councilmembers and the mayor described the developer agreement approach as a way to accelerate infrastructure delivery and noted the project addresses previously raised firefighting flow concerns and capital-plan timing constraints.

Staff said they will offer a site tour for council members to see the new infrastructure.