Title
Resolution to Approve Agreement with Scio Township Regarding Cost Allocation for the West High Services Pump Station Project
Memorandum
This memorandum and resolution requests your approval of an Agreement with Scio Township regarding cost allocation for the West High Service Pump Station Project.
The West High Service Pump Station project is included as a high priority project for 2012 through 2014 in the City’s approved Capital Improvement Plan. This project includes construction of a new pump station to feed the west side of Ann Arbor as well as Scio Township. In the City’s water services agreement with Scio Township these pumps were scheduled to be upgraded once Scio Township reached a daily demand of 2.5 million gallons per day. This target was reached several years ago. Since that time the City has been working with Scio Township on cost allocation, financing and schedule for this work.
The cost allocation agreement is a result of negotiations between City staff and Scio Township officials based on the City’s Water Services Agreement with Scio Township from 1994 and an evaluation of the realized benefit to each party of the improvements.
The total project cost is estimated to be $11,122,438.00. The project will be financed by the City through a low interest loan and green funding through the State of Michigan’s Drinking Water Revolving Fund Program. The green funding results in $1,690,000.00 of loan forgiveness.
Scio Township’s estimated portion of these costs is $4,465,630.00. The City’s estimated portion of these costs is $4,966,808.00. The actual cost share will be calculated upon receipt of a final schedule of values from the General Contractor.
Staff
Prepared by: Brian Steglitz, P.E., Sr. Utilities Engineer, WTP
Reviewed by: Craig Hupy, Interim Public Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, It is necessary to complete the West High Service Pump Improvements Project to meet ex...
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