HomeMy WebLinkAbout36. 15-518NOVEMBER 24, 2015 15-518 RESOLUTION
(CARRIED__7-0____LOST______LAID OVER______WITHDRAWN______)
PURPOSE: APPROVE AGREEMENT WITH WISCONSIN PUBLIC SERVICE
FOR SOUTHWEST INDUSTRIAL PARK EXPANSION (TID #23)
($331,300.00)
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached
agreement with Wisconsin Public Service to install backbone infrastructure of electrical
and gas for future development within the Southwest Industrial Park, is hereby approved
and the proper City officials are hereby authorized to execute and deliver the agreement in
substantially the same form as attached hereto, any changes in the execution copy being
deemed approved by their respective signatures, and said City officials are authorized and
directed to take those steps necessary to implement the terms and conditions of the
Agreement.
Acct. No. 540-1040-6401-00000 TIF #23 Southwest Industrial Park – Contractual
Services
�
OlHKOlH
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the C on Council
FROM: James Rabe, Director of Public Works
DATE: November 19, 2015
RE: Wisconsin Public Service Agreement for Southwest Industrial Park Expansion (TID #23)
($331, 300)
BACKGROUND
The Common Council awarded a contract for construction of Grading/Graveling and Utility Construction in
the Southwest Industrial Park (TID #23) on October 14, 2014 to Dorner, Inc. of Luxemburg, Wisconsin.
Funding from TID #23 and State Trust Fund borrowing totaling $4,006,455 was available at that time for
construction of the project. The estimated construction costs, with engineering fees, were $3,881,176.
These construction costs and engineering fees were for the construction of the public (City-owned)
utilities, storm water management, and street grading and graveling, in addition to the work to grade the
site into development-ready parcels.
ANALYSIS
In addition to the work that Dorner, Inc. completed, it is necessary for Wisconsin Public Service
Corporation (WPS) to install backbone infrastructure to provide electrical and natural gas for the future
development within the Southwest Industrial Park. Without the backbone infrastructure in place, the City
will be unable to effectively market the industrial lots in this portion of the industrial park. WPS charges
developers for the cost of installation of this backbone infrastructure. In this case, the developer is the
City of Oshkosh. WPS has estimated the cost of installing this backbone infrastructure at $331,300.
FISCAL IMPACT
Funds are available in the Tax Increment Financing (TIF) portion of the 2016 Capital Improvement
Program.
RECOMMENDATIONS
Chapter 12 of the Municipal Code of the City of Oshkosh provides that services, materials, supplies or
equipment available only from a sole source may be procured without the use of formal, sealed quotes.
WPS is the sole provider of electrical power and natural gas to properties within the City of Oshkosh. I
have reviewed the agreement and in accordance with Section 12-11 of the Code, I am hereby
recommending that the Common Council approve this agreement.
Approved,
�.-�z
Mark A. Rohloff
City Manager
J E R/tlt
I:\Engineering�2014 CONTRACTS\14-10 SW Ind Prk Exp (TID #23) Ph 3& 4 Util\Project_Information\Correspondence\Memo\14-10 WPS Agreement Memo_11-19-15.docx
Wisconsin Public Service
DISTRIBUTION FACILITIES INSTALLATION AGREEMENT
District: 40 Project No: 0052015128
This contract is for the installation of Electric and Gas facilities entered into on September 21, 2015 (Contract Date) between CITY
OF OSHKOSH (Customer) and Wisconsin Public Service Corporation (WPSC).
Site Address / Description / Location : OSHKOSH SW INDUSTRIAL PARK in the CITY OF OSHKOSH, County of
WINNEBAGO, State of WI.
WPSC agrees to install facilities and provide service in accordance with all appropriate regulations and tariffs as filed with the Public
Service Commission of Wisconsin (PSCW) and /or Michigan Public Service Commission (MPSC). WPSC furthermore agrees to
render service to the Customer at such point on the premise as has been mutually determined and agreed upon. The Customer agrees
to comply with all terms and conditions as stated on Page 2 of this contract, including the commencement date of Minimum Charges,
and all appropriate WPSC tariffs on file with PSCW and /or MPSC.
Type of Electric Service:
Standard System Facility Costs (Refundable)
Allowances
Special System Facilities Costs (Refundable)
Refundable Sub Total
Special Facilities Costs Non Refundable:
System
Service*
Temporary Service
Non Refundable Sub Total
Electric and Gas Total:
Total Cost
-Electric-
$108,406.08
$0.00
$154,278.93
$262,685.01
$0.00
$0.00
$0.00
$0.00
$262,685.01
-Gas-
$68,528.86
$0.00
$0.00
$68,528.86
$331,213.87
$0.00
$0.00
$68,528.86
*This agreement ❑does �does not inciude the cost of the service(s) to the meter. When it does not, additional charges may be forthcoming.
Applicable refunds will be made to: �Contracting Developer ❑Property Owner ❑Other
Special Provisions: This extension was installed under the Area Expansion Program (AEP). The AEP charge is based on the
economics of the extension. The charge is subject to reduction if more customers are attached to this extension than the number used
in the economic evaluation of this extension. Applicable AEP information for this extension is:
The AEP charge is per month.
Allowances and refunds are determined by WPSC's extension rule policies that have been approved by the PSCW and /or MPSC.
These rules are subject to change pending approval by the PSCW or MPSC. A 5 year development period will begin from the date this
facility/project is energized for the elecri-ic facility and pressurized for gas facility. Applicable refunds will be made during this time
period.
Refund amounts shall equal the allowance applicable to customer additions based on the current extension allowance or the
allowances in effect when the addition occurs, whichever is greater, less the added investment in distribution system facilities
required. After the development period, the Customer agrees to reimburse WPSC for all allowances received on this contract that did
not result in customers taking service by the expiration of the development period.
A tabulation of said allowance(s) is as follows:
� Customer Name / Lot #
Address / Plat
I have read, understand and agree to the terms and conditions of this contract
Customer Signature: Date:
Mailing Address: PO BOX 1130 OSHKOSH, WI 54903-1130
WPSC Signature:
Date:
Work RequesURevision: 1821188-1
Account# Energized Date CIS Order # 434718085
Ext. Allowance Amount
ADDITIONAL TERMS AND CONDITIONS
1. This Contract is not effective until signed by both Company and the Customer. If the Customer fails to return the Contract to Company within
sixty days of the Company signature date or contract date, the Contract offer is null and void.
2. The payment calculation of this Contract is subject to change if the Customer causes a construction delay, there is change in scope, or actions by
governmental authorities cause a calculation change. Any change shall be reviewed with the Customer prior to construction and a new Contract
shall be eYecuted. Adjustment of customer payment requirements (refunds or additional payment) to reflect actual changes in the size or number
of units installed, major rock or frost removal, and similar items affecting the scope of the project, shall be made if adjustment is greater than $20.
This adjustment, if applicable, will normally occur within six months of completion of construction. Any changes will be reviewed with the
Customer.
3. As a condition of receiving service, the Customer agrees to grant the Company, at no cost, an easement for the necessary construction, operation,
and maintenance including tree trimming of any portion of the extension necessary to serve the Customer.
4. The Customer further understands that their structure must comply with the applicable PSCW / MPSC Conservation Code and any other
applicable codes and that any noncompliance in future inspections by the Company may be grounds for disconnection of service.
5. If the service to the Customer is part of a project designed to serve several customers from one extension, it is understood that this Contract will
be binding on the parties hereto only when and if the Company secures sufficient contracts to warrant, in Company's sole discretion, the
construction of the project.
6. All the terms and conditions of this Contract shall extend to and be binding upon the heirs, executors, administrators, successors, and assigns of
the parties hereto. If the Customer leases, sells, or otherwise disposes of the property herein described, he shall complete the payments according
to this Contract unless he shall have secured an assumption of his remaining obligations under this Contract, satisfactory to and approved by the
Company.
7. Whether stated or not, a special facilities charge will be applied during the Winter Construction period, as stated in the Company's approved
tariffs.
8. Any lmvn restoralion or surfaee repair on privale properlV as a result of this instal/ation shall be the Customer's resnonsibilitv.
9. The Customer, irrespective of subsequent change of ownership, shall provide at no expense to the Company, soil graded within six inches of the
finished grade prior to installation of facilities. Survey stakes indicating property lines shall be installed by the Customer at no erpense to the
Company prior to installation of facilities. The Company shall be notified in advance of any change in grade levels. Any and all costs incurred as
a result of such grade changes shall be at the eYpense of the Customer.
70. The Cuslomer a�rees to vrovide the Corrtpanv or i1s authorized corttractor the location within 78", oi' all underQround facilities such as
tl:ose for tlie trnnsmission o1'electricitv water cable TV sewer, televhone, Qas or fue/ whieh are owned hv the Customer on the premises, nnd
which may be encountered by the Company or its authorized contractor durin� the proposed installation of the facileties. If the Customer is
unable to locate an under�round facilitv or /luls to provide the location of anv under�round itecilitv or if'the underQround (acility in queslion
is encountered more tlian 18" frorrl the location identired bv the Customer, the Customer shall defen�l indemnifv, and hold the Companv
harm/ess as we[/ as its a�ents emnloyees assi�ns afTliates officers administrators predecessors, successors, subsidiaries, members an�l
mana�ers from and a�ainst anv clairn action proceedin� liabi[itv. /oss, damaQe, cost or expense includin2, without limitation attornevs' fees,
arisin� oiit o1'or in connection with the Customer's use o1'service.
1 L In no event sha/! the Customer p[aee anv decorative e/ement on the pole wiihout the vrior written approva! o1'the Comnanv. Such approval
wi/! be t�nder the terms of the Pole Attachment Policv and Procedure in e/'fect at the time of such request A copv of the Po/e Attachment
Policv will be iurnished by the Companv to the Customer upon request.
12. In no event ercept ror a breach bv the Customer of section 11 above sha!l eiiher nartv be responsible to the other for anv consenuential.
incidenta/ special or punitive dar�za�es whatsoever whether arisin� from breach of warrantv or other breach of contraM, ne�liQence or other
tort or anv other t/:eorv of law 7n a case o/'a breach bv the Custorraer of'section ll above, the Customer sha/! be liable 1'or consequentia/.
incidental, special and punitive damapes.
13. If any provision of this Contract is found to be invalid or unenforceable by any court, such provision shall be ineffective only to the extent that it
is in contravention of applicable laws without invalidating the remaining provision of the Contract.
14. This Contract shall be governed by and construed in accordance with the internal laws of the State of Wisconsin and/or Michigan.
1�. The Customer and the Company hereby agree to abide by and be subject to the rules, regulations, and schedules of the Company as filed with and
approved by the PSCW and/or MPSC from time to time, as well as the rules and regulations of the Wisconsin Administrative Code and the rules
and guidelines of the State of Michigan.
16. In the event of a conflict between this Contract and the Company's approved tariffs, the tariffs shall prevail.
17. Beginning the date the gas meter serving the Customer is installed, or 180 days after the gas service line serving the Customer is installed,
whichever is earlier, the Customer will be billed the applicable Minimum Charge and AEP Charge (if any) associated with the rate schedule the
Customer is e�pected to take service under, regardless if the Customer is actualiy using gas or taking gas service. The determination of the rate
schedule the Customer is espected to take service under shall be in Company's sole discretion.
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