Consideration and Approval of Contract:  Approval of Amended and Restated Permanent Easement for Wells, Drainage, Sewer, and Water Pipelines (for Fort Tuthill Park and surrounding area development).

1. Approve the agreement with Coconino County;
2. Authorize the City Manager to execute the necessary documents

Approval of this agreement acknowledges existing easements granted by the County and acknowledges existing utility infrastructure built by the City on County property under the previous agreement.  This agreement also will provide the City with additional permanent and temporary easements necessary to operate and maintain wells, drainage, sewer, and water lines within city limits and to improve utility service in the Ft. Tuthill County Park. In addition, the agreement provides that Coconino County will construct new sewer lines necessary to serve the Park, and the City will pay for the incremental cost of oversizing the sewer line from 8” up to 18” to meet future development needs in the area.

The County Board of Supervisors approved this agreement at their meeting on March 24.

The Water Services Division has $760,000 budgeted in the FY2019-20 Water Services Enterprise Fund in account #203-08-375-3412-0-4463 for reimbursing Coconino County for upsizing and installing this public sewer infrastructure.

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. 

On March 17, 2009, City Council meeting, the City Council approved the original "Permanent Easement Agreement" for wells, drainage, sewer and water at Fort Tuthill Park.  In November 2009 the agreement was amended to clarify the bidding and construction obligations of the parties.

1. Approve agreement and (confirm) reimbursement payment
2. Approve the agreement with any City Council approved amendments
3. Not approve the revised agreement and have staff continue negotiations.

The City and County entered into a Temporary Easement Agreement in 2006 for the exploration of a well within Fort Tuthill County Park. The City was successful in drilling a well, which is a very productive water source of water for the City of Flagstaff. The City and County then entered into a Permanent Easement Agreement in 2009, that allowed for the design, construction and cost-sharing of a sewer main, wells and well houses (existing and future), water transmission and distribution mains and their easements, within Fort Tuthill County Park.  The first phase of the Project was completed in December 2010.  The City’s cost for the improvements for the well, wellhouse, infrastructure improvements inside the Ft Tuthill Park and the transmission main across Interstate 17 that connects to our water distribution system was $4,858,279.  The County share of that amount for the sewer main was $300,695. In 2019, the County approached the City to amend and update the original agreement prepared in 2009. Many of the sections of the original agreement were obsolete and no longer needed. Since September 2019, staff from both the City and County have worked together to prepare this agreement.

This new agreement replaces and updates the original 2009 agreement and the 2009 amendment. The new agreement again provides that the County grants a permanent easement necessary to operate and maintain the existing and future water wells, drainage, sewer lines and waterlines located at Fort Tuthill.  Under the original agreement, the City was to construct the sewer line, however, this project is not programmed by the City to occur at this time. The County wishes to proceed now with redevelopment efforts at the Park. Under the new agreement the County will construct sewer lines necessary to provide sewer service to the Park, and the City will pay the incremental costs of upsizing the offsite sewer line in order to provide capacity for future development in the area.  The new agreement includes updated provisions related to the bidding and construction of the project.  The County will transfer the sewer line improvements to the City for ongoing operations after construction is complete.

The substantive revisions in this amended agreement are as follows:

• Added Phase III language stipulating that the county will be responsible for constructing the sewer line and City will pay for the upsizing of this sewer line using capacity fees; 
• Added language for recapture agreement, stating the City is willing to consider a 20-year recapture agreement instead of an existing 10-year term (a longer period of time for County to recapture a portion of its costs from future developments in the area);
• Added language specifying the requirement to install sound abatement materials at future pump house #2, similar to what was installed for pump house #1.

At the County's request, a provision has been added stating that the City Council "may" waive applicable water services capacity fees related to the sewer line project for the County.  Past practice and current recommendation of staff is to not waive said fees.  Should the Council want to do this an in-depth look at existing ordinances would need to occur.

 

The Water Services Division has $760,000 budgeted in the FY2019-20 Water Services Enterprise Fund in account #203-08-375-3412-0-4463 for reimbursing Coconino County for upsizing and installing this public sewer infrastructure. The contract will be awarded to the lowest responsible and responsive bidder for the project including upsizing. The actual cost of upsizing will be determined during the public bidding process and reconciliation of final project costs. Water Services anticipates the upsizing cost to be less than the $760,000 budgeted amount with the remaining funds to be returned to the sewer enterprise fund.

By approving this agreement, citizens will receive additional potable water resources and an improved water and sewer system for Fort Tuthill Park. The existing well at Ft Tuthill produces 1200 gallons per minute. An additional future well, currently being developed in this proven area, will be an additional water asset for the City.

Inform/Consult
The development of multiple water resources at Fort Tuthill has been discussed in various public forums over the years. In 2004 voters approved a bond election for four new water wells after numerous public meetings.

The Fort Tuthill Sewer Oversizing Reimbursement to Coconino County was discussed during the FY2019-20 proposed budget and Capital Improvement program meetings with City Council members and Water Commission Board members.