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EVERETT CITY COUNCIL AGENDA ITE4 COVER SHEET 1 1 <br /> - PROJECT TITLE: <br /> Consent COUNCIL BILL# <br /> Authorize the Utility X Action Originating Department Public Works <br /> Department to submit a First Reading Contact Person Mark Sadler <br /> binding proposal to own, Second Reading Phone Number 257-8967 <br /> operate, and maintain the water Third Reading FOR AGENDA OF May 11,2005 <br /> and wastewater utilities at Public Hearing <br /> Navy Base Everett. Initialed by: <br /> Department Head <br /> CAA <br /> Council President <br /> Location Preceding Action Attachments Department(s)Approval <br /> Naval Station Everett None Map; Executive Public Works <br /> Summary, and memo Legal <br /> Amount Budgeted $100,000 <br /> Expenditure Required 0 Account Number(s): UT-3196 <br /> Budget Remaining $13,500 <br /> Additional Required 0 <br /> DETAILED SUMMARY STATEMENT: <br /> As a nationwide program,the Dept. of Defense is privatizing utilities at defense facilities to save costs and make bases <br /> more efficient. In 2004 the Navy requested that the City prepare a proposal to assume the water and wastewater <br /> utilities at Naval Station Everett(NSE). Subsequently the Utilities Department has performed due diligence efforts at <br /> NSE to understand their utility systems and to accurately cost their operations and maintenance needs.NSE and <br /> Everett representatives have had on-going negotiations regarding costs and base utility issues over the past year. <br /> These efforts have resulted in a binding cost proposal to own,operate,and maintain the water and wastewater utilities <br /> for a 20-year term that is due to the Navy by May 20,2005. Once submitted,the Navy will review the cost proposal <br /> and determine if the City's proposal is cost effective compared to their current practices. Should the City's proposal <br /> be accepted,a final contract(Legal has completed a review of the draft contract)will be negotiated for congressional <br /> authorization;implementation would begin soon after the new Federal fiscal year(October 1,2005). <br /> The proposal is to continue to charge the NSE full ordinance rates for water and wastewater with added charges to <br /> operate and maintain the NSE utilities.Added charges include additional utility staff(3.5 FTEs), supplies,equipment, <br /> and vehicles,and the capital improvements necessary to bring the utilities to city standards. <br /> RECOMMENDATION (Exact action requested of Council): <br /> Authorize the submittal of a Binding Proposal to the Navy for the assumption of the water and wastewater utilities at <br /> Naval Station Everett. <br /> 5 7 <br /> S:\PCornish\WORD\Counci Agenda\MS-Navy 5-11-05 DOC <br />