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BACKGROUND Tract 7815, Estates on Oak Ridge (Reznick Property), developed by Greg Remick, Threehand LP, consists of a 7-lot single-family detached custom residential subdivision. Tract 7815 is located on the south side of Old Vineyard Avenue (Vineyard Trail) opposite the future school site in the middle portion of the Vineyard Corridor. In addition to 7single-family detached custom residential lots, Tract 7815 also created a Parcel "A," the Vineyard Hills Water Reservoir site. This project represents a collaborative effort between the applicant and the City. Staff worked closely with Mr. Reznick and his consultants to ensure that the private road alignment was compatible with the City's access requirements to the water reservoir, as well as the proposed single-family development. Improvements (to be accepted) One new private street, Winding Oaks Drive, was constructed as part of Tract 7815 improvements. Winding Oaks Drive provides access to the 7 residential lots and the City water reservoir. Additionally, there is an emergency vehicle access road (EVA) that was constructed between Winding Oaks Drive and the neighbor's driveway to the east (Roberts) to provide a secondary emergency access to the project site. The sanitary sewer and water main within the street are public and will be accepted by the City for maintenance. The storm drain system and street improvements (including EVA) are private and will be maintained by the Maintenance Association. City Council will be accepting for normal maintenance the public improvements as described above. The developer has posted the required one-year warranty bond for these improvements. DISCUSSION As mentioned, this was a collaborative effort between the applicant and the City to design and construct the roadway that provides access and utilities to the City's water reservoir and the 7 residential lots. The City and applicant entered into agreements for the construction of the roadway and utilities in lieu of purchasing the land for the reservoir. After the City's contractor for the water reservoir rough-graded the roadway, the applicant's contractor constructed the retaining walls, utilities and roadway improvements. These improvements have now been completed. At this time, the applicant's costs for constructing the improvements were greater than originally estimated by the applicant's engineer by $425,065. When the City entered into the reimbursement agreement with the applicant, Council capped the City's obligation for the improvements at $1.88 million (see attachment #3). The applicant is asking the City to share some of the extra costs of installing the walls, utilities and roadway improvements for what are changed conditions from the original estimate that established the cost cap. As is typical of most public works projects, field conditions may require the redesign of infrastructure to accommodate ultimate improvements. In this case, several modifications were made to accommodate the City's design standards. Staff supported these changes during the construction phase to accommodate this need. These change orders are consistent with section 36 of the reimbursement agreement which enables unforeseen conditions to be evaluated and considered by the City. Both the applicant and staff acknowledge that these enhanced Page 2 of 3