A troublesome annexation of 80 acres in west Layton and a $115,000 bid to extend a waterline to the area have been approved by the Layton City Council.
The council two weeks ago approved annexing the property along 22nd West and last week awarded the waterline construction project to low bidder Eddy Shaw Construction Co., for $115,024.Property owners along the road last fall petitioned the council for annexation, saying many of their wells were failing and they wanted to join the city to obtain city water and other services.
Under Layton's annexation policy, the property owners will have to pay for the cost of improvements, apportioning the construction costs among themselves and paying a hookup fee.
That policy, along with the engineer's estimated cost of $125,000, discouraged some of the property owners, who asked that their names be taken off the annexation petition.
As names were added and deleted from the petition, and further cost studies of the waterline and its financing were conducted, the annexation bid was tabled for several months.
At the council's Feb. 2 meeting and public hearing on the annexation, some of the 54 property owners still expressed opposition.
But more than half the property owners in the affected area favor annexation and at least 20 signed the financing agreement to pay for the waterline, so the council approved the annexation.
Under the development agreement, according to City Manager Bruce Barton, with 20 participants the cost per property owner will be about $6,250. Participants will be required to pay 10 percent of that up front as a down payment, Barton said, in addition to a one-time $685 connection fee.
The rest will be financed over 10 years, at 10 percent interest, with the city putting a lien on the affected property to ensure repayment. Barton estimated the yearly assessment over the next decade, with interest, at $977.
People hooking up to the line in the next 10 years, or before the project is fully repaid, will be required to also pay a full share, Barton said. Extra money collected above the project's cost within the 10 years will be refunded to the original participants.