Approval Sheet

CITY OF GILLETTE
201 E. 5th Street
Phone (307)686-5200
CITY OF GILLETTE


www.gillettewy.gov

 
DATE: 12/17/2013 7:00:00 PM
SUBJECT:
Council Consideration of a Water Service Agreement with the Antelope Valley Business Park Improvement and Service District #1, District #2, and Doud Land Company, LLC.
BACKGROUND:
Rather than become a “Wholesale” Water Customer of the City’s Regional Water System in accordance with the Regional Water Joint Powers Agreement, the Antelope Valley Business Park (AVBP) would eventually like to receive City water service as an “outside city” retail water customer in accordance with Chapter Seventeen, Article III, of the Gillette City Code.

HISTORY
October 2009 - HDR Level I Gillette Regional (Water) Master Plan complete.

May 2010 - HDR (Level II) Regional System Potential Participants Connection Study complete. (Detailed Cost Estimates)

December 2010 - Gillette Regional Water Joint Powers Agreement executed.

May 2011 - Capital Facilities Tax approved ($20M established for Regional Extensions)

June/July 2011 - District Questionnaires and Support Resolutions received to accompany August 2011 WWDC Grant Funding Application.

July 2011 - City Council Resolution No. 2327 Concerning Rural Water System Extensions approved (priority given to exceptional emergency situations and non-consumptive uses such as fire protection, etc.)

August 2011 - WWDC Grant Funding Application for $40M to cover 67% of the $60M estimated project costs submitted.  Five (5) separate priority packages were identified within this initial application ranging in cost from $10M to $12M.  Design and Construction Funding for Priority I projects was initially requested.  (AVBP was included as a Priority I project.)

Oct/Nov 2011 - Wyoming Water Development Commission recommends Design Funding for Priority I projects.

March 2012 - Wyoming Legislature approves Design Funding for Priority I projects.

July 2012 - City Council approves WWDC Design Project Funding Agreement for Priority I projects.

September 2012 - City Council approves Professional Services Agreement with DOWL HKM.

September 2012 - City of Gillette requests WWDC Construction Grant Funding for Priority I projects.

Oct/Nov 2012 - Wyoming Water Development Commission recommends Construction Funding for Priority I projects.

March 2013 - Wyoming Legislature approves Construction Funding for Priority I projects.

June 2013 - City Council approves WWDC Construction Project Funding Agreement for Priority I projects.

July 2013 - DOWL HKM completes 90% Design Documents.  Easement negotiations continue.  Regional Water Panel members appointed.

August 2013 – City Staff presents the AVBP request to become an “outside city” retail water customer to the City Council during a regular workshop.  Based on feedback received during this workshop, City Staff continues negotiations with the AVBP.

October 2013 – Regional Water Panel conducts its initial “kick-off” meeting.

December 2013 - City Staff presents the "Draft" AVBP WSA to the City Council for comments during a regular work session.

WWDC PARTICIPATION
The Wyoming Water Development Commission Staff has indicated that they will participate in 67% of the total costs for the 8-inch connection between the City’s new 42-inch diameter pipeline in Union Chapel Road and the southern edge of the development as identified in the attached Figure 2 (labeled Figure 3.14) if the District members become “outside city” retail water customers (recommended at this time).  WWDC will participate in 67% of the total costs associated with the master meter control building at the existing well and pump station on Otto Road if the District is to remain “as-is” and the City provides water service to the district under a wholesale water service agreement (not recommended at this time).

CAP TAX
The Districts’ portion of the Cap Tax ($20M portion) is intended to fund the 33% match of the WWDC eligible items.

AGREEMENT SUMARY
Rather than become a “Wholesale” Water Customer of the City’s Regional Water System, the Antelope Valley Business Park (AVBP) has proposed the following:

 ~ AVBP has requested water service as an outside-City retail water customer.  (Similar to the businesses located in the Southern Industrial Business Park – i.e. Liebherr, Robertson Circle, etc.)

 ~ AVBP will pay for the cost(s) associated with upgrading its existing water system to City Standards.  (Refer to Figure 2, labeled Figure 3.14)

~ Businesses to the south of the AVBP have indicated a desire to pay for the incremental up-size cost to install a 12-inch or 16-inch water line instead of the 8-inch size water line to be funded by WWDC.

~ Each property will have its own meter and will be responsible for water service line maintenance between the curb-stop and the main, similar to other City water customers.

~ AVBP water customers will enter into a City agreement for Outside City retail water service – which may or may not include pre-annexation requirements.  (Most of the businesses have already signed pre-annexation agreements in exchange for sewer service.)

~ The City will design and construct the improvements identified within Figure 2 (labeled 3.14).

~ Until the new water supply is available from the new Madison system in 2016, the AVBP will continue to serve its customers from its existing well through the new pipeline system.  During this interim period, the AVBP will "lease" the new water system improvements constructed by the City.  There will be a connection to the City’s Madison waterline in Union Chapel.  This connection will be normally closed, but can be opened to accommodate extreme emergencies, if necessary.

The aforementioned items, among other items, are described further within the “Water Service Agreement” for the “Antelope Valley Business Park”.  City Staff recommends approval of this Agreement.
ACTUAL COST VS. BUDGET:
The anticipated construction cost to be absorbed by the City for the 8-inch diameter water line extension through the Antelope Valley Business Park is estimated to be $200,000 at this time.  The anticipated engineering cost for design and construction administration for this work are estimated to be $50,000 at this time.  The WWDC will pay for 67% of the eligible engineering and construction costs through our grant agreement we have with them.  The Districts’ portion of the Cap Tax ($20M portion) is intended to fund the 33% match of the WWDC eligible items.  In accordance with the terms and conditions within the attached "Water Service Agreement" the AVBP is responsible for all WWDC non-eligible costs associated with this project.

Project No. 12UT05
Budget Account No. 301-70-72-441-70-47414
SUGGESTED MOTION:
I Move to Approve a Water Service Agreement with the Antelope Valley Business Park Improvement and Service District #1, District #2 and Doud Land Company, LLC.
STAFF REFERENCE:
MAP
Kendall Glover, Utilities Director
Dustin Hamilton, PE, Development Services Director
Charlie Anderson, City Attorney
ATTACHMENTS:
Click to download
Figure 1 - District Location Map
Figure 2 - Proposed Improvements
AVBP Water Svc Agmt