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| DATE:
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10/7/2014 7:00:00 PM |
| SUBJECT: |
| Council Consideration of a Resolution to Approve the Form of the Water Service Agreement for Improvement and Service Districts and Other Water Systems Within the Designated Service Area Around the City of Gillette and to Approve a Wholesale Water Rate. |
| BACKGROUND: |
Gillette and Campbell County approved the Gillette Regional Water Supply System Joint Powers Agreement, (the JPA) to describe how the new Gillette Regional Water Supply System would be financed and how new water from the project would be delivered to County Districts and subdivisions. The JPA provides that each Wholesale Customer shall enter into a Water Service Agreement with the City prior to receiving supply from the Project. A Water Service Agreement has been prepared as a form to be used to establish the service terms for the delivery of water to Campbell County rural water districts and subdivisions.
The JPA also provides that Monthly rates calculated for the Project’s wholesale supply shall be developed by the City, submitted to the Regional Water panel for approval and if approved by the Panel, the City shall adopt and enact the rates according to its appropriate legislative action. Wholesale rates have been prepared and submitted to and approved by the Regional Panel. A Resolution has been prepared to approve the Water Service Agreement and to approve the Wholesale Water rates. Upon approval of the WSA and the Wholesale Water rates, staff will contact the rural districts identified in the JPA to secure their approval of the WSA for their district at the water rates approved by the Council and the Regional Water Panel. Once those WSAs are approved, staff will be able to complete work with the State of Wyoming and secure approval of and final funding for the construction projects necessary to connect the rural districts to the Gillette Regional Water Supply System.
The Resolution also directs staff to complete a draft ordinance to add the wholesale water rate to Section 17-47. Once new water is available from the Gillette Regional Water Supply System to supply all the customers of the system, that ordinance will have to be updated to adjust all the current city rates. All customers of the system will pay the Wholesale rate as well as an additional rate to cover the distribution expenses of the water system. Since the current city rates are not broken down into Wholesale and Distribution components, the current in-city rates will need to be revised to develop the new overall rate for Gillette’s retail customers. |
| SUGGESTED MOTION: |
| I move for the Approval of a Resolution to Approve the Form of the Water Service Agreement For Improvement and Service Districts and Other Water Systems Within the Designated Service Area Around the City of Gillette and to Approve a Wholesale Water Rate. |
| STAFF REFERENCE: |
| Charlie Anderson, City Attorney |
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