Title
Resolution authorizing interim City funding, at an expected cost of $240,000, of the special assessment portion of the Private Lead Water Service Replacement Project being done in conjunction with a DNR Grant.
Body
WHEREAS, the City of West Allis has approximately 10,000 properties that have private lead water services which run from the curb stop next to the sidewalk/curb to the water meter inside the property, and approximately 1,500 of these services have had the lead replaced with copper on the public utility portion of the service which runs from the water main in the street to the curb stop; and
WHEREAS, lead water services are obsolete and the American Water Works Association has recommended the removal of all lead services nationwide when possible; and
WHEREAS, the Department of Natural Resources has awarded the City of West Allis a $500,000 grant to assist in replacing private lead water laterals; and
WHEREAS, the City of West Allis Common Council approved Ordinance O-2017-0010 relating to changes under Wisconsin Statutes 66.0911 and authorizing the City Engineer to charge for construction, purchase, acquisition, development, improvement, operation, and maintenance of water, heat, sewer, and gas laterals, and charge the cost thereof to the lot or parcel served; and
WHEREAS, the City of West Allis Common Council approved Resolution R-2017-0029 adopting Section 66.0911 of the Wisconsin Statutes and requiring that when water, heat, sewer, and gas laterals or service pipes are constructed, the property owner is charged and it becomes a lien against the parcel served; and
WHEREAS, the City of West Allis Common Council approved Resolution R-2017-0034 authorizing the execution of the DNR Principal Forgiveness Financial Assistance Agreement in coordination with the voluntary lead water lateral replacement initiative; and
WHEREAS, the plan to execute the voluntary private lead water service replacement program includes replacing approximately 150 services at an estimated cost of $4,500 - $5,000 per service, with the grant covering up to $3,400 of the cost and a special assessment of $1,600 being charged per service; and
WHEREAS, the expected $240,000 cost of the special assessment portion of the project is a temporary cash outlay that will need to be paid to the contractor upon completion of the work but will be paid back over time by the property owners; and
WHEREAS, the amount of funds needed in the short term does not warrant borrowing in the public bond market, and City reserves are sufficient to cover the cash flow until the funds are paid back by forgoing other investment earnings.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of West Allis that the interim City funding, through reserves, of the special assessment portion of the private lead water service replacement project being done in conjunction with the DNR Grant be and hereby is approved.
BE IT FURTHER RESOLVED that the Finance Director is authorized and directed to create a special fund to record and account for these financial transactions.
ADM\ORDRES\ADMR2017.15