City of Des Moines and Water District 54 continue to work toward an agreement for downtown project
Wed, 05/26/2010
Water District 54 is not trying to back out of the project to improve water flow in Downtown Des Moines, they are simply continuing to negotiate how much of the project the District will pay for, Water District 54 Superintendent Eric Clarke said.
Loren Reinhold, assistant director of utilities and environmental engineering for Des Moines confirmed the City was still working with the Water District to come to an agreement on who will pay for what parts of the project.
“As far as I am aware both parties are still interested in doing this project,” Reinhold said. He predicted it might take three to six months to iron out the details but he believes the City and the District will come to an agreement and move forward with the project.
Clarke said the Water District is in now way trying to back out of the project.
“It is discouraging the Mayor gets from our letter we are trying to renege on the project,” Clarke said.
The project being looked at would connect water lines east to west from 8th Ave. to 7 Ave. at each intersection along Marine View Drive as well as install a 12 inch water line down Marine View Drive.
Currently there are water lines going east to on either side of Marine View Drive that do not connect and a six inch water main going along 8 Ave. serves the downtown area.
Clarke said the letter from the Water Commissioners to the City was only to clarify what the Water District was willing to pay for. The letter effectively divides the project into two parts, payment-wise. The Water District would pay for the work on the connections from 8 Ave. to 7 Ave. and the City would pay for the work to put in a 12-inch water main down Marine View Drive.
The connections between 8 Ave. and 7 Ave. are the Water Districts priority, Clarke said. Not a 12 inch water main going down Marine View Drive. He said the 12-inch water main would have no benefit to the District’s ratepayers.
The project would cost nearly $2 million. Des Moines received a $486,000 Federal grant to improve the water system in the City. This money requires local matching funds of $398,000, which the Interlocal Agreement (ILA), written up by the City, said the matching funds would come from the Water District and City Funds. But it is not specified in the ILA how much the City and the District would pay of those matching funds.
The ILA had the Water District covering everything, Clarke Said.
The Water District has already spent $30,000 designing the project, which includes the 12-inch water main along Marine View Drive. Clarke said the design was just over 50 percent completed.
The ILA states the District will reimburse the City for all of the construction, including permits and construction management, on the side-street projects- connecting water lines between 7 Ave. and 8 Ave.
Connecting the water lines between 7 Ave. and 8 Ave. is estimated to cost approximately $500,000, which, including the local matching funds, is available right now.
It is estimated putting a 12 inch pipe down Marine View Drive will cost another approximately $1.2 million. At a meeting between the Water District and the City it was agreed the City would take out $1 million in bonds to cover the rest of the project.
The ILA set up a payment plan where 50 percent of the revenue to the Water District from new development would go to the City to help repay the debt service. In addition, the Water District would pay $25,000 a year, beginning in 2012, until the principal and any interest on the debt service for the Marine View Drive project was completely repaid.
The Water Districts response, in their May 4 letter to Reinhold, said they are willing to pay for the connections at the intersections on Marine View Drive, but are not willing to pay for, or reimburse the City for debt service for the water main down Marine View Drive.
A meeting will be held next Thursday, June 3, at 7:30 at the Des Moines City Hall, to discuss the project. Des Moines Mayor Bob Sheckler has said he is disappointed by the response from the Water District, and has said the City taking over the Water District is a possibility that could come up at the meeting on June 3.