Posted: November 01, 2016
Rapid City
Agenda Item Summary

Agenda Item Ref. #: PW110116-23

Agenda Item Title:

Authorize Mayor and Finance Officer to Sign Agreement Concerning Transfer of Water System Between Rainbow Water Company, Inc. and City of Rapid City

Origination Group:
Public Works Committee
Origination Meeting Date:
11/01/2016
City Council Hearing Date:
11/07/2016
Staff Contact:
Stacey Titus, P.E. & Wade Nyberg
Location:
Valley View Subdivision/Radar Hill Rd.
Agenda Item Summary:
This Agreement contains the terms and conditions under which the City agrees to purchase the water system that serves the Valley View Estates Subdivision, Paradise Estates Subdivision, and adjoining parcels along Radar Hill Road. The system is currently owned and operated by a private water company (Rainbow Water Company, Inc.). The system’s current water source has water quality issues and needs to be replaced. The SD Department of Environment and Natural Resources urged Rapid City to serve this area with its new airport water line. Partial loan forgiveness and a Consolidated Water Grant are included in the SRF loan funding package from the state to offset a portion of the costs involved in serving this area. Purchasing the existing water system will provide a significant cost savings over construction of all new infrastructure. The purchase price as shown in the Agreement is $295,000.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Water Enterprise Fund
SRF Consolidated Water Program Loan Funds

Recommendations:

Origination Recommendation Action:
Approve
City Council Recommendation Action:
Approve

Attachments & Links to Download:

  pdf Purchase Agreement

  pdf Exhibit A - Rainbow Water System

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