Connection Fee $ 13,800

Transcription

1 TO: Mayor & Council FROM: Public Works Administration BY: Mike Cherry MEETING: January 15, 2007 Regular Session PREPARED: January 9, 2007 Connection Fee Waiver for Central Iowa Water Association Summary: On November 20, 2006, the City of Waverly entered into an agreement with Central Iowa Water Association (CIWA) for connection onto the City's water supply. This connection is within the 10 th Avenue Water Main Connection Fee District that was established in CIWA is requesting the City to waive this connection fee. The basis for the waiver is that the connection is deemed mutually beneficial allowing either party to receive assistance in the event of an emergency. Additionally, CIWA is supplying and installing all necessary equipment and meters for this proposed interconnection. Attachments: Financing: â CIWA Letter Requesting Waiver of Connection Fee â CIWA/City Interconnect Agreement â Ordinance 764 Creating Connection Fee District â Site Map Connection Fee $ 13,800 Important Dates: August 6, 2001 Connection Fee District Approved November 20, 2006 Approve Interconnect Agreement with CIWA January 15, 2007 CIWA Request Waiver of Connection Fee Requested Council Action: â Waive the connection fee. K:\Water\CIWA\4 staff summary - CIWA connect fee.doc

2 pentral Iowa W ter ssociation 3801 Iowa Speedway Drive Newton, IA Phone (641) Toll Free (800) Fax (641) Equal Opportunity Employer and Provider December 1, 2006 Mr. Mike Cherry, P.E. City of Waverly 200 First Street NE P.O. Box 616 Waverly, Iowa Dear Mike: I have enclosed a fully executed copy of the "Interconnection Agreement" prepared for a temporary tap to the Waverly water system at the NE corner of our treatment plant site. Thank you for your prompt attention to this request. Mike, concerning the connection fee, we respectfully request that such fee be waived due to the following considerations: This is a temporary backup supply that we are not planning to use on a full-time basis. Upon completion of our treatment plant, we proposed that this interconnection be replaced with larger piping and meters that will allow emergency service either way, The city of Waverly and CIWA would equally benefit by such a connection. Please let us know if the connection fee can be waived for this temporary back-up connection. We will put this construction on hold until we hear from you. Thank you for consideration of this request. Sincerely, CENTRAL IOWA WATER ASSOCIATION Jim LaPlant, CEO JL/cl

3 Resolution A Resolution Approving an IOWA REGIONAL UTILITY ASSOCIATION AND CITY OF WAVERLY WATER INTERCONNECTION AGREEMENT THIS AGREEMENT is made this 20th day of November 20 06, by and between Iowa Regional Utilities Association, d/b/a, Central Iowa Water Association, an Iowa nonprofit corporation having its principal place of business in Newton, Jasper County, Iowa (the "Association"), and the City of Waverly, Iowa, an Iowa Municipal Corporation (the "City"), and PROVIDES AS FOLLOWS: 1. TERM. This is a temporary agreement designed to allow the Association to serve water to Heartland Hills and additional users along the Association's transmission main using the City of Waverly as the source of supply. This agreement shall be valid for three (3) years from the date of signing. At such time that the Association is able to serve Heartland Hills and additional users along the Association's transmission main from another source, this contract shall be terminated. Once this agreement is terminated, the interconnection pipe, meter and appurtenances shall remain in place and be used as an emergency interconnection between the Association and the City. 2. CONSTRUCTION. The Association shall construct a water pipeline to the point of interconnection with the existing City water distribution system located in the southwest corner of the City corporate boundary. Pipeline, meter, interconnection equipment and all necessary appurtenances shall be supplied and installed by the Association in accord with good engineering practice and all applicable rules, regulations and laws. The remote will be located on a pole at the nearest point to the connection and corporate limits. 3. OWNERSHIP AND MAINTENANCE. All portions of the proposed water pipeline, meter, interconnection equipment and necessary appurtenances located within the City corporate limits shall at all times be and remain the sole property of the City and the City shall at all times be solely responsible for all expenses of ownership, repairs, maintenance, modifications or replacements thereof as needed in accordance with good engineering practices and all applicable rules, regulations and laws. All portions of the proposed water pipeline, meter, interconnection equipment and necessary appurtenances located outside the City corporate limits shall at all times be and remain the sole property of the Association and the Association shall at all times be solely responsible for all expenses of ownership, repairs, maintenance, modifications or replacements thereof as needed in accordance with good engineering practices and all applicable rules, regulations and laws. 4. POINT OF DELIVERY. Delivery of all water from the City to the Association shall be deemed completed at that point on the subject water distribution system of the Association located immediately outside the corporate limits of the City. 5. SUPPLY OF WATER BY THE CITY. A. Testing. The City shall supply to the Association through said interconnection a quantity of potable water fit for human consumption meeting all applicable local, state and federal standards, rules, regulations -1-

4 and laws for purposes of testing the Association's proposed water - distribution system; provided, however, that at no time shall the City be obligated under this sub-paragraph to supply during any 24-hour period more than 50,000 gallons of water. Demand Basis. The City shall, upon demand by the Association, supply to the Association through said interconnection potable water fit for human consumption meeting all applicable local, state and federal standards, rules, regulations and laws such quantity of water as may be available from the City's then-existing reserve capacity; provided, however, that the City shall at all times be obligated hereunder to provide the Association during any 24-hour period only such quantity of water as that does not exceed 50,000 gallons. The City may, but need not, supply water to the Association through said interconnection in excess of the quantity limitations set forth. C. Rates and Payment. On or before the 25th day of each month, the Association shall pay the City for its use of City's water hereunder during the last preceding month. Rates therefore shall be based upon and equal to the standard rates applicable for all City residential consumers in effect during the month of use. 6. DELIVERY AND PRESSURE. The water to be supplied through the subject. interconnection shall be delivered at a pressure of not less than thirty pounds per square inch. If a greater pressure than normally available at the point of delivery is required, the cost of providing such greater pressure shall be solely born by the Association. Emergency failures of pressure or supply due to main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe, shall also excuse the respective parties from delivery under this Interconnection Agreement for such reasonable period of time as may be necessary to restore water services. 7. METERING EQUIPMENT. Metering equipment placed at the corporate limits of the City shall be of standard type for properly measuring the quantity of water delivered hereunder, and such metering equipment may be tested and calibrated upon the request of the City, but not more frequently than once every 12 months. A meter registering not more than 2% (two percent) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for three (3) months previous to such test in accordance with the percentage of inaccuracy found by such test. If any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water delivered in the corresponding period immediately prior to the failure, respectively, unless the parties shall agree upon a different amount. The City shall read the metering equipment on the 21st day of each month. An appropriate official or employee of the Association shall at all times have reasonable access to the meter for the purpose of verifying its readings. 8. BILLING PROCEDURE. The City shall be solely responsible for preparing the appropriate billing each month for the water sales under this interconnection agreement. The -2-

5 aand: City shall, on or before the 5 th day of the following month, submit to the Association an itemized statement of the amount of water furnished by the City to the Association during the preceding calendar month. The City shall endeavor to notify the Association at least thirty (30) days in advance of any modification in and to the applicable rate schedules. 9. NOTICE OF USE. The Association shall notify the City in a reasonable manner of any intended use or substantial increase in use of water through the subject interconnection at least 24-hours prior thereto. "Substantial increase in use" shall mean any increase anticipated to exceed 110% of the actual use of water during the preceding 24-hour period, -- subject to the respective maximum use provisions of paragraph 5B above. 10. USDA-RURAL DEVELOPMENT APPROVAL. The construction of the Association water supply and distribution system and the subject interconnection are being financed by a loan or loans made or insured by, and/or a grant or grants from, the United States of America, acting through USDA-Rural Development; and, the provisions, of this Interconnection Agreement pertaining to the undertakings of the Association are subject to and at all times conditioned upon the approval, in writing, of the State Director of USDA-Rural Development for the State of Iowa. 11. SUCCESSORS AND ASSIGNS. This Interconnection Agreement shall be binding upon the successors and assigns of the parties. Any subordination of interests hereunder shall require express prior written approval. IN WITNESS WHEREOF, the parties hereto, acting under the authority of their respective governing bodies, have caused this Contract to be duly executed in three (3) counterparts, each of which shall be deemed to be an original. CITY OF WAVERLY, IOWA IOWA REGIONAL UTILITIES ASSOCIATION, D/B/A CENTRAL IOWA WATER ASSOCIATION By: Ivan J. AcIterman, its Mayor And: C112,/,, itecity Clerk ye,m_p By: Ronald Dunsbergen, its Pr 4A-Z Delwyn Van Zante, its Sec ary 3

6 Ordinance 764 An Ordinance to Establish the 10 th Avenue Water Main Extension District and imposing connection fee on all properties within said district whose owners hereafter apply to make connection to the municipal water utility. Be It Ordained by the City Council of the City of Waverly, Iowa: FEE FOR CONNECTION TO THE WATER UTILITIES Section 1. The 10 th Avenue Water Main Extension District is hereby established for the purpose of collection within said district of a fee from those property owners who shall make application to connect their properties to the water utility of the City. (a) District Boundary. The boundary of the 10 th Avenue Water Main Extension Connection District shall be as follows: The Connection Fee Boundary includes all the following parcels: E 1/2 of the SW % of Section 4 T91N R14N of the 5th P. M. NW % of the SE 1/4 of Section 4 T91 N R14N of the 5th P. M. S 1/2 of the SE 1/4 of Section 4 T91N R14N of the 5th P. M. SW 1/4 of the SW 1/4 of Section 3 T91 N R14N of the 5th P. M. NE % of the NW1/4 of Section 9 T91 N R14N of the 5 th P. M. N 1/2 of the NE '/4 of Section 9 T91N R14N of the 5 th P. M. NW % of the NW % of Section 10 T91N R14N of the 5 th P. M. (b) Water Utility Connection Fee. The connection fee for the water utility shall be based on each connection to the 10 th Avenue Water Main Extension determined to be within the connection district boundary. The minimum connection fee for each water connection shall be $4, and said fee shall increase based on the diameter of the water pipe connecting to said main as shown in the following connection fee schedule: Diameter less than or equal to 1" Greater than 1" and less than or equal to 2" Greater than 2" and less than or equal to 4" Greater than 4" and less than or equal to 6" Greater than 6" diameter 1.0 Connection Fee Units = $4, Connection Fee Units = $6, Connection Fee Units = $9, Connection Fee Units = $11, Connection Fee Units = $13, The connection fee shall be due and payable in full at the time a plumbing permit is obtained from the City by the property owner to connect to the water, main. Section 2. This ordinance shall be in full force and effect from and after its passage and publication as provided by law. PASSED AND ADOPTED THIS 6 th DAY OF August 2001.

7 Oth Avenue Water Main Extension District Ordinance 764 August 6, " rxr 1"/Al / 11)/ /11:1 ZẠ rtifterd