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| DATE:
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7/19/2016 7:00:00 PM |
| SUBJECT: |
| Council Consideration of a Resolution Establishing Reimbursement Amounts for the Reimbursement Agreement with Liebherr Mining Equipment Newport News Company. |
| BACKGROUND: |
In August of 2011, Gillette approved an application for a Business Committed grant for Liebherr Mining Equipment ('Leibherr") to construct water mains to their support fire suppression system. They were awarded the grant which required a 10% local match which Liebherr paid. Water mains were constructed and have been conveyed to Gillette. The water mains will allow 20 existing lots to connect to the Gillette water system. As part of the grant and construction project, Gillette approved a Reimbursement Agreement with Leibherr, dated January 27, 2012, and agreed to charge a fee in addition to the Plant Investment Fee to the lots that can be served by the new water mains when they connected for domestic service, and then transmitting the collected fees to Leibherr. The fee, known as the PRO-RATA share, is calculated by dividing the amount of the local match paid by Leibherr by the number of lots that can be served by the water mains. When the Reimbursement Agreement was approved, the total project cost was not known so the PRO-RATA shares could not be calculated and those items were left blank in the approved Reimbursement Agreement. The project has been completed, the water main has been conveyed to the City of Gillette and all the final project costs are now available.
The total project cost was $1,012,692. The Local Contribution is 10% of that cost, or $101,269.20. The PRO-RATA share per lot for 20 lots, is $5063.46.The location of the water mains and the lots which could be served by the mains shown on the map of the service area, which was exhibit B to the Reimbursement Agreement. included with this Resolution as Exhibit B. |
| SUGGESTED MOTION: |
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I move for the Approval of a Resolution Establishing Reimbursement Amounts for the Reimbursement Agreement with Liebherr Mining Equipment Newport News Company
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| STAFF REFERENCE: |
| Charlie Anderson, City Attorney |
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