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BACKGROUND The Nevada Street water and sewer main extension projects were included in the City's 1990 Water Master Plan, CIP No. 941015; and the City's 1993 Vineyard Sewer Master Plan, CIP No. 902028, respectively. The utility extension alignments would be located within the Plan Line that the City adopted for Nevada Street in 1996, which extends from its current terminus near California Avenue and continues southwest to the intersection of Stanley Boulevard and First Street. Construction documents have been completed for these projects, which are described in the following paragraphs. The Water Main Extension Project includes a 16 inch diameter line that will follow the proposed roadway alignment described previously, and then continue easterly to the existing water turnout facility at the intersection of Bernal Avenue and Nevada Street. The purpose of this project is to improve water distribution and pressures in southeast portion of the City. The Sewer Line Extension Project includes an 18 inch diameter gravity sewer main and has two phases of construction. The first phase was completed in 2004 and included the installation of an 18 inch sewer main in Vineyard Avenue from the intersection of Bernal Avenue and Clara Lane then continuing north in Bernal Avenue to Nevada Court. The second phase of the sewer project would install the remaining 18 inch gravity sewer main from the end of the Phase One improvements to the intersection of Stanley Boulevard and First Street. The purpose of this project is to eliminate sewer capacity problems associated with 10 year and greater rainfall recurrence interval events identified in the 1993 Vineyard Sewer Master Plan, and to accommodate development in the Vineyard Corridor. In order to install both the water and sewer mains from their ends at Bernal Avenue and Nevada Street to the intersection of Stanley Boulevard and First Street, the City needs to acquire utility easements within the future right -of -way for the Nevada Street Extension from three property owners: Irby, Zia, and Kaplan. The City obtained a professional appraisal for these easements and the right -of -way in 2006; however, the valuations were unacceptable to the property owners at that time. All other necessary easements have been acquired or agreements are in place for their acquisition. City Staff has explored alternative water and sewer alignments within existing public rights -of -way on California Avenue and Wyoming Street. Construction costs for these alternatives are significantly higher than the proposed Nevada Street alignment due to greater distance, lack of available depth for trench cover, existing hardscape street improvements and conflicts with existing utilities. Of particular concern is that the greater length of the sewer main required for the alternative alignment, combined with existing shallow grades along the alignment would require either a modified trench with a concrete cap or a sewer pump station and force main, as opposed to the simpler and less expensive gravity sewer installation. Although this issue does not affect the water main installation, construction affecting existing improvements is always more expensive than placing the new utilities in undeveloped areas. Page 2 of 3