Consideration and Approval of (Confirming) Payment:  Reimbursement payment to W.L. Gore and Associates for oversizing of new public waterline.  (Waterline reimbursement as agreed in pre-annexation agreement with W.L. Gore and Associates).

In accordance with pre-annexation agreement with W.L. Gore and Associates the City agreed to reimburse W.L. Gore for the oversizing of a new regional waterline extending west along Route 66 and south on Flagstaff Ranch Road. The installation of this water main will allow the City to provide adequate fire flow service to the W.L. Gore manufacturing facilities located at 2400 Kiltie Lane. The new waterline was designed and installed by W.L. Gore to City specifications in fiscal year 2014 and was accepted into the City of Flagstaff municipal water system on December 16, 2014. Connection to City utilities for the Woody Mountain Campus benefits both Gore and the City because it allows the completion of a regional system loop, provide improved water quality to the area residents, and provides improved water pressures and flows in the event of a fire. The total reimbursement cost for oversizing the new water main amounted to $356,440.53. The reimbursement for this project was budgeted in the Utilities Enterprise Fund in FY14 in the amount of $450,000.00.

The Utilities Division has $450,000 budgeted in the Utilities Enterprise Fund in account # 202-08-370-3164-0-4463 for reimbursing W.L. Gore for oversizing of this regional waterline. The remaining unused funding will be returned to the Utilities fund balance.

City's participation in the upsizing of this waterline supports the Council Goals in the following areas;

COUNCIL GOALS:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics

REGIONAL PLAN:
This project supports the policies and goals of the Regional Plan as outlined below;
Policy LU.7. Required Incorporated properties to be annexed prior to the provision of City services, or that a pre-annexation agreement is executed when deem appropriate. A pre-annexation agreement for these properties was approved by the City Council in January 2014. In order to complete the final components of the new water system infrastructure, the City has requested that W.L.Gore complete the annexation process.
Goal LU.8 Balance future growth with available water resources.
Water resources were evaluated for this annexation as part of the water system improvements constructed by W.L. Gore.
Goal ED.3. Regional economic development partners support the start-up, retention, and expansion of existing business enterprises.
This annexation allows for the expansion of Flagstaff's largest commercial employer.

A pre-annexation agreement with W.L. Gore for properties located at their Woody Mountain campus facility was approved by Council in January 2014 . This pre-annexation agreement included approval for the upgrade and construction of a new regional waterline along Route 66 and Flagstaff Ranch road to improve fire flows and provide for future growth in this area.

The Public Hearing and first reading of the annexation ordinance occurred at the April 7, 2015, Council meeting. The Final reading of the annexation ordinance was approved by Council on the May 5, 2015 meeting.

Approve (confirm) payment.
Not approve (deny) payment.

W.L. Gore and Associates requested out-of city water and sewer service for the Woody Mountain Campus located a 4100 W.Kiltie Lane (APN's 116-04-003Y, 116-04-007F). The properties are located outside the City's service area boundary in Coconino County and do not pay City property taxes. In 2014, the Water Commission and City Council approved W.L. Goes request for out of City water and sewer service contingent upon the owner executing an annexation agreement with the City of Flagstaff. The annexation agreement was adopted by City Council on May 5, 2015.

W.L Gore and Associates currently receives City water and sewer service to it's manufacturing facility located on Kiltie Lane. The existing Woody Mountain campus, with buildings and parcels inside and outside the City's service area boundary, is located at the end of a municipal water line, does not have adequate fire flows and sewer capacity is limited. W.L. Gore requested a second looped connection in order to provide adequate onsite fire protection and allow for future expansion of the Woody Mountain campus. Connection to city utilities for the Woody Mountain Campus benefits both Gore and the City because it allows the City to complete regional system loops, provide improved water quality to the area residents, and provides improved water pressures and flows which is useful in the event of a fire.

W.L. Gore and Associates handled all design, procurement project management and construction of this new water line. Minimum sizing of both water and sewer lines are 8 inches in diameter. The City requested that the line be over-sized to18 inches in diameter in order to address future regional needs and improve fire flows in this area of the municipal  system.  While W.L. Gore handled the procurement process,the City provided oversight to ensure that the bid and award of the project complied with City and State rules and regulations for public bidding.

 

The total reimbursement cost for oversizing the new water main amounted to $356,440.53. A copy of the reimbursement cost allocation prepared by Turner Engineering was reviewed and approved by Utilities staff and is attached.

Funding for reimbursing W.L. Gore for oversizing of this water line is available n Account # 202-08-370-3164-0-4463. Project funding is budgeted in FY15.

City procurement  staff oversaw and ensured that the bid and award of the construction project complied with City of Flagstaff and State of Arizona rules and regulations for public bid.

A pre-annexation agreement approved in January 2014 allowed W.L. Gore to move forward with extending a public water main along Route 66 from Woody Mountain Road , along Flagstaff Ranch Road to Kiltie Lane. The completion of this waterline created a looped water system infrastructure necessary to provide adequate fire flows at the existing W.L. Gore facilities as well as for future development of their properties included in this annexation.

Annexing of W.L Gore properties and extension of the public water system also provides for extended development opportunities to the largest private employer in the City of Flagstaff. The growth of their manufacturing campus will allow for the expansion and retention o a significant employee base.

Inform/Consult

The Water Commission conducted a public hearing on January 17, 2013 a 4 p.m. The extension and oversize reimbursement of this waterline was discussed a this meeting. In addition the reimbursement to W.L. Gore and Associates for oversizing of this water line was discussed during FY14 proposed budget and Capital Improvement program meetings with City Council members.

Public hearings before Water Commission, Planning and Zoning and City Council are conducted in conjunction with any annexation request. The extension of this water line and City reimbursement was disused at each meeting In accordance with Arizona Revised Statutes, notice of the public hearing was provided by placing an ad in the Arizona Daily Sun, posting a notice on the public hearing on the public hearings on the City Website, and posting a public meeting notice in City Hall.