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03-10 - 02-18 - Rescind Resolution 03-06 and Adopt Revised Feasibilty Study for Water Supply System Resolution 03-10 February 18, 2003 Member Johnson introduced the following resolution and moved its adoption: RESOLUTION RESCINDING RESOLUTION 03-6, AND ADOPTING A REVISED RESOLUTION AUTHORIZING THE JOINT WATER COMMISSION TO UNDERTAKE FEASIBILITY STUDIES REGARDING DEVELOPMENT OF A WATER SUPPLY SYSTEM WHEREAS, on February 4, 2003 the City Council adopted Resolution 03-6, Resolution Authorizing the Joint Water Commission to Undertake Feasibility Studies Regarding Development of a Water Supply System; and WHEREAS, said resolution applies to three cities participating i n t he J oint W ater Commission, and the City of Crystal has subsequently requested changes to the resolution to be adopted by the three participating cities; and WHEREAS, this revised resolution includes an additional provision (item 4) regarding the organization of the studies; NOW, THEREFORE, BE IT RESOLVED that the City Council rescind Resolution 03-6, Resolution Authorizing the Joint Water Commission to Undertake Feasibility Studies Regarding Development of a Water Supply System adopted on February 4, 2003; and WHEREAS, the Cities of Golden Valley, Crystal and New Hope, have created the Joint Water Commission ("JWC") which has, since 1963, purchased, stored and distributed water from the City of Minneapolis through a contract between the Cities of Minneapolis and Golden Valley pursuant to Minnesota Statute Section 471.59; and, WHEREAS, each City Council of the Cities of Golden Valley, New Hope and Crystal have appointed their City Manager as the representative to the JWC; and, WHEREAS, each city and its utility customers, through the JWC, have realized financial savings through the development, operation and maintenance of joint water storage and distribution systems; and, WHEREAS, the contract between the City of Golden Valley and the City of Minneapolis has expired and the JWC a nd t he C ity o f M inneapolis h ave a ntered i nto a Memorandum of Understanding Regarding a Water Purchase Agreement which is effective until December 31, 2003; and, WHEREAS, the JWC has undertaken feasibility level studies which indicate that it may b e m ore cost effective f or t he J WC to d evelop t heir own ground water supply and treatment system than to continue to purchase water from the City of Minneapolis under the terms and conditions currently being offered by Minneapolis officials; and, WHEREAS, in order to determine whether or not development of its ground water supply and treatment system is in the JWC's best interest, additional study is needed. WHEREAS, it is recognized that further study should be conducted in a specific critical path method in order to maximize benefit from expense and provide specific "go, no-go" milestones to be acted on by the Commission and/or the respective councils. Resolution 03-10 - Continued February 18, 2003 NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council for the City of Golden Valley that: 1. The JWC is hereby authorized to undertake a study that will determine whether or not a system owned and operated by the JWC is technically feasible. This study would investigate questions related to the reliability of the aquifer, governmental permitting requirements, water quality and taste in comparison to the current water supply, facility location and construction timeframes. 2. The JWC is hereby authorized to undertake a study that would determine whether or not a system owned by the JWC is financially feasible. This study would investigate issues such as 10 year projected rates, the capital needed to construct the system and the ability of the JWC or its member cities to issue debt to construct the system. 3. The J WC is hereby authorized to undertake a study that would investigate options for governance of a groundwater supply and treatment system owned and operated by the JWC. This study would examine the current JWC governance model, evaluate alternate public governance models to own and operate the system, evaluate public and private operations, specify the type and content of intergovernmental agreements between the three cities to implement such governance models and identify legal and/or legislative requirements of such governance models. 4. The studies should be organized in such a way that the following issues are researched and evaluated, prior to well field modeling and pilot plant development and testing: a. Evaluation of similar existing U.S. treatment facilities performing the same operations as proposed for the JWC facility, and the development of a "risk comfort level" by the JWC and councils. b. Development of a financing procurement plan including the who, how and when for sale of bonds, and the cash flow for how the bonds would be retired. I ncluded in this evaluation must be a schedule of anticipated water rates beyond the retirement of the bonds. C. Evaluation of the "reject/concentrate" water from the reverse osmosis process, including the volume, peak flow, discharge alignment and construction and operating costs of waste disposal. 5. The City Council of each member city will review and authorize funds to pay for the studies set forth above prior to the expenditure of such funds by the JWC. Resolution 03-10 - Continued February 18, 2003 S /�li-c.JC.✓ "in-da R. Loomis, Mayor ATTEST: Donald G. Taylor, lerk The motion for the adoption of the foregoing resolution was seconded by Member Grayson and upon a vote being taken thereon, the following voted in favor thereof: Grayson, Johnson, Loomis and Tremere; and the following was absent: LeSuer; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and her signature attested by the City Clerk.