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HomeMy WebLinkAbout2021-07-06-J01I Memorandum of Understanding_LP Moon Pumping StationAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: July 6, 2021 AGENDA ITEM:Consideration of approval of a resolution approving Memorandum of Understanding and Agreement, LP Moon Pumping Station, Addition of 4th Pump to Clive-Waukee-West Des Moines Side of Station FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: The LP Moon Pump Station (LPMPS) was designed to allow a fourth pump to be integrated into the Clive-Waukee-West Des Moines Section of the station. Recent evaluations of the performance of the LPMPS indicate that it is common for all three of the existing pumps for the Clive-Waukee-West Des Moines Section to operate concurrently for extended periods of time. This typically happens annually during the summer months when higher water demands are experienced. The integration of a fourth pump will provide beneficial redundancy should one of the existing three pumps experience a failure or need to be taken out of service in a period of high demand. The parties agree that DMWW shall proceed with the design, construction, and commissioning of the LPMPS 4th Pump Project. DMWW shall be the owner of the new 4th pump upon its installation and thereafter, subject to the terms of the LPMPS related Agreements. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: In October of 2020, DMWW provided a cost estimate of $410,000 for the fourth pump. DMWW shall advance and pay the full costs of the pump, but shall be reimbursed by the other parties for the full actual direct and indirect costs thereof, which shall include both out of pocket costs and DMWW’s internal costs of design, contract letting, construction supervision, and other services. The shares of the other parties shall be as follows: 25% to West Des Moines ($102,500.00) 37.5% to Clive ($153,750.00) 37.5% to Waukee ($153,750.00) COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff recommends approval of the memorandum of understanding and agreement, LP Moon Pumping Station, Addition of 4th Pump to Clive-Waukee- West Des Moines Side of Station RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Resolution II. Memorandum of Understanding PREPARED BY: Beth Richardson REVIEWED BY: Rudy Koester RK J1I THE CITY OF WAUKEE, IOWA RESOLUTION 2021- APPROVING MEMORANDUM OF UNDERSTANDING AND AGREEMENT, LP MOON PUMPING STATION, ADDITION OF 4TH PUMP TO CLIVE-WAUKEE-WEST DES MOINES SIDE OF STATION IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Iowa is a duly organized municipality within Dallas County; AND, WHEREAS, the LP Moon Pumping Station (LPMPS) is a joint-use facility that is owned and operated by the Board of Water Works Trustees of the City of Des Moines, Iowa (DMWW) for the joint benefit of its own operations and separate operation of the water utilities of Clive, Waukee, West Des Moines Water Works, Urbandale, and Xenia. ; AND, WHEREAS, a specific portion of the LPMPS is dedicated to service for Clive, Waukee, and West Des Moines; AND, WHEREAS, the participants in the facility have funded the construction of its various portions and by agreement share the costs for the on-going operations and maintenance expenses associated with the facility; AND, WHEREAS, DMWW, as Owner, is responsible for replacement of assets when they reach the end of their useful life; AND, WHEREAS, the LPMPS was designed to allow a fourth pump to be integrated into the Clive- Waukee-West Des Moines Section of the station. Recent evaluations of the performance of the LPMPS indicate that it is common for all three of the existing pups for the Clive-Waukee-West Des Moines Section to operate concurrently for extended periods of time; AND WHEREAS, the parties agree that DMWW shall proceed with the design, construction, and commissioning of the LPMPS 4th Pump Project; AND, WHEREAS, DMWW shall advance and pay the full costs of the LPMPS 4th Pump Project, but shall be reimbursed by the other parties for the full actual direct and indirect costs thereof. The shares of the other parties in such reimbursement shall be as follows: 25% to West Des Moines 37.5% to Clive 37.5 to Waukee NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session this 6th day of July, 2021, that it hereby approves a Memorandum of Understanding between the Board of Water Works Trustees of the City of Des Moines, IA and the City of Waukee [LP Moon Pumping Station Addition of 4th Pump to the Clive-Waukee-West Des Moines Side of Station]. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman Pierce R. Charles Bottenberg Chris Crone Larry R. Lyon Ben Sinclair X Memorandum of Understanding and Agreement LP Moon Pumping Station Addition of 4th Pump to the Clive-Waukee-West Des Moines Side of Station The undersigned parties agree as follows: 1. The LP Moon Pumping Station (“LPMPS”) is a joint-use facility that is owned and operated by the Board of Water Works Trustees of the City of Des Moines, Iowa (“DMWW”) for the joint benefit of its own operations and the separate operations of the water utilities of Clive, Waukee, West Des Moines Water Works, Urbandale, and Xenia. A specific portion of the LPMPS is dedicated to service for Clive, Waukee, and West Des Moines, and is referred to herein as the “Clive-Waukee-West Des Moines Section” of the LPMPS. The participants in the facility have funded the construction of its various portions and by agreement share the costs for the on-going operations and maintenance expenses associated with the facility. DMWW, as Owner, is responsible for replacement of assets when they reach the end of their useful life. 2. The existing agreements that define or reference the LPMPS are as follows: a. Wholesale Water Service Master Agreement (June 10th, 2005). b. Water Service Enhancement Master Agreement (May 26th, 1992): i. Memorandum of Understanding (September 7th, 1993) between Board of Water Works Trustees of the City of Des Moines, Iowa and the Board of Water Works Trustees of the City of West Des Moines, Iowa in regard to the Water Service Enhancement Master Agreement. ii. Amendment to Water Service Enhancement Agreement: 1. January 26th, 1995 for City of Clive. 2. February 28th, 1995 for Board of Water Works Trustees for West Des Moines. iii. Second Amendment to Water Service Enhancement Agreement (May 3rd, 2001). iv. Third Clive Amendment to Water Service Enhancement Agreement (September 6th, 2001). v. Fourth Amendment to Water Service Enhancement Agreement (November 20th, 2003). c. Agreement for Shared Use of Water Tower Capacity (November 20, 2003). (the “LPMPS- Related Agreements”) 3. The LPMPS was designed to allow a fourth pump to be integrated into the Clive-Waukee-West Des Moines Section of the station. Recent evaluations of the performance of the LPMPS indicate that it is common for all three of the existing pumps for the Clive-Waukee-West Des Moines Section to operate concurrently for extended periods of time. This typically happens annually during the summer months when higher water demands are experienced. 4. The addition of a fourth pump will not allow any extra capacity to be pumped from the station, but the integration of a fourth pump will provide beneficial redundancy should one of the existing three pumps experience a failure or need to be taken out of service in a period of high demand. 5. In October of 2020, DMWW staff provided a cost estimate of $410,000 for integration of a fourth pump to the Clive, Waukee, and West Des Moines Section of the LPMPS. The estimate represents a good faith effort to include all necessary direct and indirect costs to be incurred by DMWW to design, construct, and commission a project that results in a functioning fourth pump to aid in station reliability (the “LPMPS 4th Pump Project”). The estimate provided by DMWW is not a guaranteed or fixed amount, and the actual costs incurred will govern reimbursement hereunder. DMWW will not, however, incur reimbursable costs in excess of 115% of this estimate without conferring with project participants in advance and obtaining their approval. 6. The parties agree that DMWW shall procced with the design, construction, and commissioning of the LPMPS 4th Pump Project and shall take the steps it deems appropriate and required to initiate and complete such project and to place the new 4th pump into service, except that if costs in excess of those reimbursable under Section 5 will be incurred, then DMWW may elect not to proceed. DMWW shall be the owner of the new 4th pump upon its installation and thereafter, subject to the terms of the LPMPS-Related Agreements. 7. DMWW shall advance and pay the full costs of the LPMPS 4th Pump Project, but shall be reimbursed by the other parties for the full actual direct and indirect costs thereof, which shall include both out of pocket costs and DMMW’s internal costs of design, contract letting, construction supervision, and other services. The shares of the other parties in such reimbursement shall be as follows: a. 25% to West Des Moines. b. 37.5% to Clive. c. 37.5% to Waukee. 8. DMWW shall invoice the other parties for their respective shares of the LPMPS 4th Pump Project as costs are paid or otherwise incurred by DMWW, but no more frequently than once a month. All such invoices shall be paid within thirty days of issuance. 9. The parties agree that the costs of operation and maintenance of the new LPMPS 4th Pump after it is placed in service shall be invoiced as currently provided by the LPMPS-Related Agreements. 10. The parties agree that this Memorandum of Understanding and Agreement and the cost-share defined herein shall be deemed to supplement, but not to otherwise amend or replace, any of the LPMPS-Related Agreements which shall all remain in full force and effect, including without limitation the Water Service Enhancement Master Agreement. SIGNATURE PAGES TO FOLLOW Dated: _________________, 2021. BOARD OF WATER WORKS TRUSTEES OF THE CITY OF DES MOINES, IOWA By: ________________________________ By: __________________________________ Dated: _________________, 2021. BOARD OF WATER WORKS TRUSTEES OF THE CITY OF WEST DES MOINES, IOWA By: ________________________________ By: __________________________________ Dated: _________________, 2021. CITY OF CLIVE, IOWA By: ________________________________ By: __________________________________ Dated: _________________, 2021. CITY OF WAUKEE, IOWA By: ________________________________ By: __________________________________