In September 2017, the City of Gillette submitted a Grant Funding Request to the Wyoming Water Development Commission (WWDC) for Priority 3 and Priority 4 Regional Extension Projects.

In December 2017, the WWDC recommended Grant Funding Approval for the following Gillette Regional Water Extension Projects:

$1,809,000 for Engineering Design, Permitting and Right-of-Way Acquisition and Construction Funding for:

(1) Fox Ridge I&SD,

(2) Rozet Ranchettes I&SD,

(3) Buckskin I&SD; and

$2,391,000 for Construction Funding for:

(1) Crestview I&SD,

(2) Freedom Hills I&SD,

(3) American Road I&SD, and

(4) Meadow Springs I&SD.

The 2018 Wyoming State Legislature approved and the Wyoming Governor signed House Bill 0078 which included the above recommended Grant Funding Appropriations.  Section 99-3-2303 and Section 99-3-2203 of the 2018 Wyoming State House Bill 0078 also included the following Amendment as a Condition Precedent to receive Grant Funding:

“(B) The sponsor shall:

(I)  Agree to allow for domestic, livestock and miscellaneous water use as provided in this subdivision for applicants in Crook County applying for taps from existing eight (8) inch transmission lines. The eight (8) inch transmission line may be extended by Crook County or by water districts in Crook County to allow for taps. Not more than two hundred (200) taps shall be allowed. Taps shall be installed within one hundred eighty (180) days of receipt of a complete application and fees which shall not exceed the residential rate for tap fees. Taps shall be billed at a rate equal to the local base residential rate charged by the regional water system regardless of use or location plus the local consumption rate. The maximum consumption from any one (1) tap shall not exceed one million (1,000,000) gallons per year; and

(II)  Apply for all necessary permits to allow for domestic, livestock and miscellaneous use of Gillette Madison pipeline water in Crook County.”

The City of Gillette declined to execute the WWDC Project Grant Funding Agreement with the aforementioned Condition, per correspondence submitted to the WWDC in June 2018, and testimony provided to the WWDC in August 2018.

In August 2018, the Wyoming State Engineer and the WWDC Director provided written confirmation to the City of Gillette stating that “Stock Uses” are “Municipal Uses” under Wyoming Water Law. The City of Gillette has relied upon the correspondence from the Wyoming State Engineer and the WWDC Director, in preparing the attached Resolution for action by the Gillette City Council.

During their November 2018 meeting, the WWDC requested the City of Gillette propose amended language to replace the conflicting language included within House Bill 0078, and to otherwise confirm the offers tendered by the City of Gillette during the August 2018 testimony to the WWDC.

Attached is a Resolution proposing amended language to replace the conflicting language within the 2018 Wyoming State House Bill 0078.

Staff recommends approval of this Resolution.