2016.04.18 CC Packet - Laserfiche WebLink

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Table 10.1 Revised cost estimate WITHOUT the City of Columbus Storage Supply Contingency Centerville $0 $0 $0 Circle Pines $0 $0 $0 Hugo $0 $0 $0 Lexington $0 $0 $0 Lino Lakes $0 $0 $0 Joint Utility Cost without Columbus $6,100000 15,476,000 $3472,800 Total $6,100,000 $5,476,000 $3,472,800 Legal and Engineering $0 $0 $0 $0 $0 $3.009.760 $3,009,760 • Negotiate initial buy -in for asset and capital sharing between cities Combined Infrastructure Costs $0 $0 $0 $0 $0 $18,058,560 $18,000,000 The final financial terms of a Joint Utility are open for negotiation. But assuming that all parties are interested in making it happen the benefits are straight forward. The fully developed communities have existing assets (wells and water towers) that are needed by the growing communities. The growing communities can either build them new on their own or purchase use of the existing assets from the fully developed communities as part of the formation of the Joint Utility. In this transaction, the assets would be valued at some fraction of the cost it would take to build them new. The "purchase price" paid by the Joint Utility to the fully developed communities would be based on remaining useful life and acknowledge the fact that the existing fully developed community still needs and uses the asset. In this way the growing communities get to access supply and storage at a fraction of the cost of buying new and the fully developed communities get an influx of capitol to either pay off bonds or use as they see fit. Once joined as a utility the costs of maintenance would be shared by a larger group. In addition to this fewer total items would need to be maintained. • Refine cost estimates based on new comprehensive planning, other studies The formation of a joint utility appears to be beneficial as long as the cost of new trunk watermain does not outweigh the benefits to one municipality over another. As the costs reported in this study are considered high-level preliminary estimates, they should only be used for comparison purposes. Future work should include a more in-depth cost analysis using future 2018 Comprehensive Plans and other studies. 10.1 Future Studies As this study included only a high-level preliminary analysis, several subsequent studies are recommended to move the project forward. Each recommended future study should use revised 2018 City Comprehensive Plans through 2040 that use the new population projections. Studies are shown in the order in which they should occur. The first two studies shown address if the water systems should be joined at all and if so which ones should actually be combined. The remaining studies provide guidance related to better defining the details of how city water systems would join together. Joint Water Utility Feasibility Study 36