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HomeMy WebLinkAbout1995-150 Agrmt - Water IntertieINTERGOVERNMENTAL COOPERATION AGREEMENT MEDFORD WATER INTERTIE PROJECT THIS AGREEMENT, made and entered into on the last set forth date by and among the undersigned cities of Ashland, Phoenix and Talent, all municipal corporations of the State of Oregon (all parties hereafter referred to as "units of local government" or "Party(ies)"). This Agreement is made pursuant to ORS 190.003 to ORS 190.110, the general laws and constitution of the State of Oregon, and the laws and charters of the units of local government. Section 1. ~. To form, pursuant to the authority set forth in ORS 190.003 through ORS 190.110 as well as local charters and ordinances, a joint body, consisting of representatives from certain units of local government to carry out the following purposes: A. To prox4de a common means of addressing requests to extend a water distribution system from the water distribution system operated by the Medford Water Commission. B. To provide for the parties a means of requesting assistance from the Rogue Valley Council of Governments in the preparation of a request for proposals (RFP) for a preliminary feasibility and engineers report on the extension of a water distribution system, to serve each unit of local government, from the water distribution system operated by the Medford Water Commission. C. To provide an organization to study the recommendations obtained from the request for proposals and to recommend to the individual governing bodies of the units of local goven~ment a method for proceeding with the provision of such an extension of a water distribution system. D To provide a forum for intercommunication and consultation among the parties and to provide an opportunity for a joint and cooperative sharing of the expenses, data, expertise, experiences and plans of each unit of local government. Section 2. Men~. Each governing body may designate not more than three members to serve on this intergovernmental agreement project board. Section 3. Apportionm~osts/Financing RFP: The parties agree to develop and recommend to the respective governing body, prior to authorizing the RFP, a method for determining the apportionment of cost of the RFP and any other costs anticipated by the parties. Such method shall be adopted as an amendment or addendum to this agreement. Section 4. rT~enniaation: A party may withdraw from this agreement by giving thirty days written notice to the participating parties, provided the award for the RFP for the preliminary engineering study has not been made. If the award has been made, a party may withdraw after receipt of the final report of the consultant has been received, accepted and each party has paid their appropriate share of the cost of the RFP. Subscribed to and entered into in triplicate original the day of 1995, by the appropriate officer(s) who are duly authorized by resolution to execute this Agreement on behalf of the governing board of the below named unit of local government. CITY OF ASHLAND: ~or City Recorder CITY OF PHOENIX: Mayor ATTEST: '~- City Reco/!C2ter CITY OF TALENT: Mayor City R~'~order Intergovernmental Cooperative Agreement Water Intertie Project Page 2 September I1, 1995 Brian Almquist, City Administrator ~1 Susan Reid, City Councilor and Stev~<~all, Public Works Director Agreement - Medford Water Intertie Project ACTION REQUESTED City Council authorize Mayor to sign the attached intergovernmental agreement with the Cities of Talent and Phoenix to pursue the feasibil/ty of a water intertie with the Medford Water Commission to serve Talent and Phoenix, and in the future the City of Ashland. BACKGROUND The initial meeting to discuss lhe project was held on July 10, 1995, at the Talent City Hall Council Chambers. Steve Hall attended that meeting. At the Council meeting of luly 18, 1995 Council: · Authorized participation in the Medford Water Inter-tie Steering Committee to evaluate a potential water line to ultimately serve Phoenix, Talent and Ashland. · Appointed Susan Reid as Council liaison to serve on Steering Committee. · Appointed Public Works Director as technical representative to Steering Committee. Councilor Reid and Steve Hall attended the first meeting on August 22, 1995, at the City of Taient Council Chambers. In attendance were representatives from the cities of Talent and Phoenix, and the Medford Water Commission. After discussion, each representative agreed that the staff of the 3 cities should draft an agreement for consideration by each City Council at their September 1995 meetings. The attached agreement prepared by Talent's City Administrator, Tony Paxton, reiterates the essence of those issues agreed upon by the lmrficipating cities. PAGE DISCUSSION In our evaluation, the cities of Talent and Phoenix will be pursuing this option with, or without, the City of Ashland's participation. The proposed project is an excellent opportunity for the City of Ashland to provide for long term future needs of the City of Ashland. By a very small increase in pipe size, the line would be of adequate size to serve all three cities. The project was one of the recommended alternatives in the 1989 Water Supply Report prepared by R.W. Beck and Associates. The estimated cost of an "Ashland only" water line was $7.7 million in 1989 dollars for i3 miles of 24" water main and two pump stations. The facility was designed to provide 2.6 million gallons per day. The preliminary study by the Medford Water Commission indicates a need, for Talent and Phoenix of 2.5 million gallons per day. The construction of that line would provide approximately 40% of the total facility required to reach Ashland's distribution system. The cost estimate for five miles of 18" water main and one pump station at a cost of approximately $2. I million. A rough estimate of pipe size for ail three cities needs would be 24-inch. The capacity of a pressure pipeline is not linear. As an example, a 24" line has almost 60% more capacity than an 18" line. The design is more complex than that but, it gives you an example of the potential cost savings to all three cities if ail would participate in this project. Cost sharing has been discussed and the most reasonable option would be on the basis of percentage of capacity of the system. FINANCING As noted in my previous memorandum, the Rural Economic and Community Development Department (formerly Farmers Home Administration) has extended their grant and loan programs to cities of under 25,000 until September 30, 1998. The cities of Jacksonville and Eagle Point have received loans and grants for similar projects in the last year. RECOMMENDATION We recommend the Council authorize the Mayor to sign the attached agreement. Tony Paxton, City Administrator, City of Talent Jim Ware, Public Works Director, City of Phoenix Ed Olson, Manager, Medford Water Commission Jim Olson, Assistant City Engineer Dennis Barnts, Water Quality Superintendent Enc: Intergovernmental Cooperation Agreement PAGE 2-¢:pwXmfrh20.Mcm)