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Home My WebLink About2016-06-20-J01O Bluestem Lift Station 14 Electric Service►,f- 4 Waukee I�1r THE KEY TO GOOD WING AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: June 20, 2016 AGENDA ITEM: Consideration of approval of a resolution approving proposal from MidAmerican Energy for Refundable Advance for Construction Overhead Electric Service Extension in the amount of $6,346.09 FORMAT: Resolution SYNOPSIS INCLUDING PRO & CON: Mid American Energy proposes to extend three-phase overhead electric line to the future Blue Stern Lift Station at a cost of $6,346.09. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $6,346.09. This amount will be refunded over a 6 year period at 50% of the annual lift station's metered electric serve bill. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Proposed Resolution PREPARED BY: Beth Richardson REVIEWED BY: John Gibson PUBLIC NOTICE INFORMATION — NAME OF PUBLICATION: DATE OF PUBLICATION: THE CITY OF WAUKEE, IOWA RESOLUTION 16- APPROVING MIDAMERICAN ENERGY COMPANY REFUNDABLE ADVANCE FOR CONSTRUCTION OVERHEAD ELECTRIC SERVICE EXTENSION PROPOSAL FOR SPECULATIVE USE [BLUESTEM LIFT STATION NO. 14 IMPROVEMENT PROJECT] IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, on March 17, 2016, the Waukee City Council approved plans, specifications, form of contract and estimate of cost for the Bluestein Lift Station No. 14 Improvement Project (Resolution # 16-065); AND, WHEREAS, MidAmerican Energy Company has provided a proposal in order to extend three- phase overhead electric lines to Bluestein Lift Station No. 14; NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session this 20th day of June, 2016, that it hereby approves the MidAmerican Energy Company Refundable Advance for Construction Overhead Electric Service Extension Proposal for Speculative Use [Bluestein Lift Station No. 14 Improvement Project]. William F. Peard, Mayor Attest: Rebecca D. Schuett, City Clerk ROLL CALL VOTE AYE NAY ABSENT ABSTAIN Brian Harrison Shelly Hughes Larry R. Lyon Rick Peterson VACANTSEAT MIDAMERICAN ENERGY COMPANY REFUNDABLE ADVANCE FOR CONSTRUCTION OVERHEAD ELECTRIC SERVICE EXTENSION PROPOSAL FOR SPECULATIVE USE MidAmerican Energy Company, an Iowa corporation and The City of Waukee ("Applicant"), agree as follows: 1. MidAmerican Energy Company will extend its three-phase electric lines overhead to 2748 SE LA Grant Pkwy, Waukee. 2. MidAmerican Energy Company will furnish the necessary labor and materials required to fulfill its undertaking, as specified above. Such work will commence by MidAmerican Energy Company as soon as reasonable and practicable after the execution of this Proposal and receipt of Applicant's cash deposit indicated below. MidAmerican Energy Company will prosecute such work to completion with reasonable diligence. 3. In consideration of the receipt of a payment in the amount of $6,346.09 from Applicant, which is an Advance for Construction subject to refund, MidAmerican Energy Company agrees to construct necessary electric facilities as set forth above. Please submit payment with Applicant's signed acceptance of this Proposal. If Applicant's acceptance and payment is not received by 12/31/2016, the amount may be subject to change. 4. The Advance for Construction shall be subject to refund by MidAmerican Energy Company to Applicant based upon the following terms and conditions: a. Advances shall not accrue interest and shall be subject to refund from the date of the original advance payment. This will span a six (6)-year period at the rate of fifty percent (50%) of the annual metered electric service bill of the above applicant. b. If additional single-phase customers are connected to the above described line extension, the above Applicant shall receive refunds equal to three times estimated base revenue for each additional new customer to the extent that such revenue exceeds the additional distribution construction costs incurred by the MidAmerican Energy Company. Base revenue shall be estimated annual revenue, less fuel expense costs, based on similarly situated customers. C. Refunds shall be made on the anniversary of the date of the original advance payment, or sooner at the option of the MidAmerican Energy Company. d. Revenue for un-metered private lighting shall not be included in any refund. e. No refunds shall be made for revenue received after six years from the date of the original advance payment. f. Never shall the total of refunds exceed the refundable portion of the payment stated above. g. No refunds shall be made for customers served from a further extension of the above described electric line extension. 5. Applicant shall provide, without cost to MidAmerican Energy Company, such easements as are necessary and incidental to such installation and use of MidAmerican Energy Company's facilities on private property within the area served. If a 3`a party easement is required any cost associated in obtaining the easement will be paid by the applicant. 6. Applicant shall be responsible for locating and marking all privately owned systems such as water services, culverts, irrigation systems, drain pipes, septic lines, and underground wiring before MidAmerican Energy Company's construction. 7. It is specifically understood and agreed that any distribution systems, or other facilities constructed or installed by MidAmerican Energy Company under terms of this Proposal shall remain the sole property of MidAmerican Energy Company and MidAmerican Energy Company shall determine, as its own judgement indicates, the manner and method of utilization thereof and to extend the same or connect other facilities thereto and serve other customers therefrom as it shall see fit, subject only to such obligations as MidAmerican Energy Company shall have assumed in this Proposal; and no other person shall have any right, title, interest or claim, in or to the said distribution system or other facilities by virtue of any provision of the Proposal. Proposed this Eighth day of June, 2016 MIDAMERICAN ENERGY COMPANY M. Accepted this day of 2016 APPLICANT Title: Mid -American ENERGY OBSESSIVELY, HKENTLESSLYAT YOUR SERVICE, 6/8/2016 City of Waukee Attn: Tim Royer 805 University Ave Waukee, IA 50263 MidAmerican Energy 10510 Douglas Ave, Urbandale, IA 50322 Reference: Electric service to serve 2748 SE LA Grant Pkwy — Bluestein Lift Station 14 Dear Mr. Royer: We are pleased to submit three (3) copies of the Refundable Advance for Construction Overhead Electric Service Extension Proposal for Speculative Use for the above project. This proposal is valid for 90 days and if MidAmerican Energy construction has not commenced within 12 months it may be voided. Please sign and return all three (3) copies of the proposal as soon as you are ready to commit to the work. You may withhold payment until 30 days before MidAmerican Energy Company is ready to start the work. In the meantime, please keep me informed of your schedule. 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