The Interstate Industrial Park Subdivision, Gillette, Wyoming was originally platted in 1977 under the jurisdiction of Campbell County. The subdivision is generally located west of Garner Lake Road, immediately south of Interstate 90. The County subdivision was provided water service via Interstate Industrial Park Improvement and Service District. In 2002, the subdivision was annexed into the corporate limits of the City of Gillette as part of a larger annexation. The subdivision elected to remain on its water system/well upon annexation and still remains on the system today. The system is aged, under-sized, provides no redundancy, the well is nearing the need of major rehabilitation, and the system is not individually metered. The leaders of the private system approached the City about facilitating City provided water service. The City has since been working with the leadership team to gain support for the formation of a Local Improvement District (LID) to finance the replacement of the water system. The City has received written support from 60% of the landowners to begin the formation of the LID.
The overall project is proposed to be a partnership between the City and the LID. The City will fund the street improvements for 2nd Street and Conestoga Drive and the LID will be responsible for the re-payment of the water system improvements, initially financed through the DWSRF loan obtained by the City.
Water system improvements will consist of the installation of approximately 7,200 lineal feet of 12” PVC and 450 lineal feet of 6” PVC water mains; connections to the City’s existing water system in four separate locations; the installation of approximately 2,500 lineal feet of 4” water service line, with approximately 1,100 feet being installed by horizontal directional drilling; near the property line the 4” service line will be reduced to a 1” service line and connected to the existing service; installation of 44 meter pits, one for each lot; and the installation of 17 fire hydrants. The water system improvements will also include all incidental work, including, but not limited to, pipe bedding, utility crossings, and the installation of tees, reducers, elbows, gate valves, test stations, fire hydrant bollards, curb stops, pressure reducing valves, insulation board, and splash pans. The water system improvements will also include the abandonment and the removal of portions of the existing water system facilities, including, but not limited to, water mains, service lines, curb stops, valves, fittings, fire hydrants, the well, the pump station and the water storage tank.
The City of Gillette will reconstruct 2nd Street and Conestoga Drive outside the costs of the water system improvements and these expenses will not be included in the assessment for the local improvement district, however, there will be some minor surface restorations included with the water system improvements. This would include areas disturbed by water service installations, such as repairs to driveways and drainage ditches, grading and revegetation over the water main along Conestoga Drive (this water line is located outside the pavement for the street), rehabilitation to the various surfaces disturbed (mainly patching asphalt or concrete driveways) along Commerce Drive and Industrial Drive and would also include temporary asphalt patching of trenches if needed before the roadway is reconstructed.
Each property owner will also need to pay a Plant Investment Fee ($1,287.50, for a 1” meter) and install a back flow preventer (estimated to be $1,000) on their water service line. The costs will be incurred outside of the assessment and would be due from each property owner once the project is completed.
The City applied to the SLIB in January of 2017 for a State Revolving Fund Drinking Water Loan (DWSRF) to aide in financing the water system improvements on behalf of the proposed Local Improvement District (LID). In February, the SLIB conditionally approved the loan upon completion of Part 2 of the Loan Process. Staff submitted the information required in Part 2 of the application process in late May and has recently received the Loan Agreement, Promissory Note, and Assignment and Pledge of Revenues from the State of Wyoming. The SLIB awarded approximately 25% Principle Forgiveness (Grant) up to an amount not to exceed $501,802.00. The term of the loan is 15 years with a 2.5% per annum interest rate. The 15 year term will coincide with the term of the proposed Local Improvement District.
The Loan Agreement and Assignment and Pledge of Revenues are being amended by the SLIB staff to further clarify that the revenues pledged by the City will be "Water Distribution System" revenues in lieu of the currently written "all revenues" received from the City's Water Fund. The amended documents will be sent to the City via US Mail for execution.
Upon execution of the loan documents, the City will then begin the LID formation process. Ultimately, the LID proceeds will be utilized by the City annually to fund the loan payments. |