Department of Utilities
Reference: CONSTRUCTION AND REIMBURSEMENT AGREEMENT REGARDING THE SABLE OUTFALL CHANNEL
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Director of Utilities
Date Prepared: November 1, 2025
PURPOSE
Requesting City Council’s approval of a resolution authorizing the City Manager, or designee, to execute a reimbursement agreement between the City and Farmlore, LTD. for construction costs related to a portion of the Sable Outfall regional stormwater system.
BACKGROUND
The Sable Outfall system will serve existing and future development in the City, including the Sable Boulevard improvements, Farmlore Development and approximately 500 acres of the Prairie Center Development.
The City has already designed the piped portion of the Sable Outfall that will carry flow under the Fulton Ditch as part of the Sable Boulevard improvements project and Farmlore has designed the regional sanitary sewer interceptor required for their development. In order to realize potential cost savings and reduce the impact to the traveling public in the vicinity, the City and Farmlore, LTD. wish to enter into a reimbursement agreement. Farmlore’s contractor will construct the piped portion of the Sable Outfall concurrent with the installation of the sanitary sewer interceptor.
Construction of both utilities was publicly bid and Three Sons Construction was selected as the contractor. City staff and consultants have reviewed the anticipated construction costs proposed by Three Sons Construction and concur with said costs.
The City and Mile High Flood District have partnered to finalize design of the remainder of the Sable Outfall and construction is anticipated next year. The Sable Outfall will flow to the north adjacent to Sable Boulevard and connect with the existing South Outfall at the 148th Avenue alignment.
FINANCIAL IMPACT
Sufficient appropriation exists in the 2025 and 2026 budget for reimbursement of the construction costs.
STAFF RECOMMENDATION
City staff recommend approval of the resolution as drafted, authorizing the City Manager, or designee, to execute the reimbursement agreement.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve resolution as drafted
• Approve a modified resolution
• Deny resolution
• Provide further direction to staff
ATTACHMENTS
• Resolution
• Partially-executed Reimbursement Agreement
• PowerPoint presentation