Central Iowa Water Association (CIWA) - Barrington Lakes Agreement Copyright 2014
City of Dubuque Consent Items # 10.
ITEM TITLE: Central Iowa Water Association (CIWA)- Barrington Lakes
Agreement
SUMMARY: Assistant City Attorney providing information on the
Barrington Lakes water distribution system and service
related to the CIWA Settlement Agreement.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Staff Memo Staff Memo
Supporting Documentation Supporting Documentation
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
MAUREEN A. QUANN, ESQ.
ASSISTANT CITY ATTORNEY
To: Mayor Roy D. Buol and
Members of the City Council
DATE: December 29, 2016
RE: Central Iowa Water Association Settlement Agreement: Barrington Lakes
City staff held an informational meeting with Barrington Lakes residents Tuesday,
December 27, 2016 at the 911 Training Center. Over the course of approximately two
hours, staff answered questions related to the transfer of ownership between CIWA and
the City, the City's water distribution system and service, and the City's utility billing
practices and procedures.
On Wednesday, December 28, 2016, Mike Wilson, president of the Barrington Lakes
Property Owner's Association notified the City verbally and in writing that Barrington
Lakes elected to receive City water. A copy of the written notification is attached for
your reference.
Consequently, CIWA will assign to the City its agreement, all applicable permits,
licenses, easements and other documents related to Barrington Lakes. The City owns,
operates, and maintains the Barrington Lakes water system immediately and will
connect that system to the City's water distribution system on or before December 31,
2017. The City also owns the parcel of land within Barrington Lakes on which the
60,000 gallon reservoir sits.
Two other parcels in Barrington Lakes are owned by CIWA and were set aside for
potential future CIWA use. These parcels would someday have served as a back-up
well site and a treatment plant site. The City will never own these parcels because
connection to the City's water distribution system eliminates the long term need for a
treatment plant or back-up well. However, the City will have access and permission to
use the two parcels until the connection to the City water system occurs. After
connection, the City will not need to access or use these sites and agrees not to do so.
The City will pay CIWA $6,110,000.00 total, in the following installments:
1 . $1,110,000.00: Paid Wednesday, December 22, 2016
2. $1 ,000,000.00 plus interest on December 1, 2017
3. $1,000,000.00 plus interest on December 1, 2018
4. $1,000,000.00 plus interest on December 1, 2019
5. $1,000,000.00 plus interest on December 1, 2020
6. $1,000,000.00 plus interest on December 1, 2021
Interest accrues at 3% annually.
While we do not know CIWA's cost to install improvements it made to the CIWA water
systems, the City believes the value of the assets, based on City costs, exceeds the
amount of the agreed upon payment. With this $6.1 million CIWA water systems
purchase, the estimated value of the assets is $6.3 million.
In addition to these assets, the City will gain more than 300 new water customers
immediately and the ability to serve countless more in the future, enhance water quality
for City residents living in the third, fourth, and other water pressure zones, and ensure
fire protection and water quality throughout the Southwest Arterial and affected
customer areas.
MAQ:jmg
Attachments
cc: Barry Lindahl, Senior Counsel
Crenna Brumwell, City Attorney
Michael Van Milligen, City Manager
Gus Psihoyos, City Engineer
Todd Irwin, Engineering Technician
Laura Carstens, Planning Services Manager
Kyle Kritz, Associate Planner
Bob Green, Water Department Manager
Brant Schueller, Water Distribution Supervisor
Denise Ihrig, Water Plant Manager
Jenny Larson, Budget Director
Alexis Steger, Senior Budget Analyst
Ivan Webber, Ahlers & Cooney
James Wainwright, Ahlers & Cooney
2
TO: City of Dubuque
FROM: Barrington Lakes Property Owner's Association (BLPOA)
Date: December 28, 2016
TO WHOM IT MAY CONCERN:
With this document, the Board of Directors of the BLPOA acknowledges that a resolution to
opt in to the settlement agreement between the City of Dubuque and the Iowa Regional Utilities
Association, dba: Central Iowa Water Association, as relates to the control and operation of the
water system resident in Barrington Lakes, was passed and approved by a vote of 7 to 0.
The Board also acknowledges that the City of Dubuque owns the water system resident in
Barrington Lakes and is responsible for all maintenance, repairs and upgrades to this system.
2$,Lit
Michael D. Wilson Date
President - BLPOA