Contract with Intermountain Gas Co. - North Black Cat Lift Station Natural GasE IDIANt�--
Public IDAHO
Works Department
TO: Keith Watts
FROM: Garrick Nelson
Staff Engineer
Mayor Tammy de Weerd
City Council Meenberte
Keith Bird
Joe Borton
Luke Cavener
Genesis Milam
Anne Little Roberts
Ty Palmer
DATE: May 3rd, 2017
SUBJECT: NORTH BLACK CAT LIFT STATION NATURAL GAS SERVICE —
CONTRACT WITH INTERMOUNTAIN GAS COMPANY FOR
$30,209.54.
I. DEPARTMENT CONTACT PERSONS
Garrick Nelson, Staff Engineer 489-0358
Clint Dolsby, Assistant City Engineer 489-0341
Warren Stewart, City Engineer 489-0350
Dale Bolthouse, PW Director 489-0372
II. DESCRIPTION
A. Background
When the North Black Cat Lift Station was constructed there were not natural gas
service lines in the vicinity of this lift station. At that time it was not fiscally
reasonable to bring a natural gas service line to the lift station and propane service
was installed. The Wastewater Division currently spends $18,000 per year on
propane to heat this lift station throughout the winter and its estimated the
Division would spend approximately $3,800 per year on natural gas.
Development has occurred in the area of this lift station over the last few years
bringing natural gas lines closer to this lift station. Connecting natural gas service
to this lift station would eliminate the annual cost of propane to heat this lift
station with a payback period of less than three years.
B. Proposed Project
This project would extend a 4 inch natural gas main south approximately 1460
feet along N Black Cat Road from W Quintale Street to the North Black Cat Lift
Page I of 2
Station site at 4300 N Black Cat Road. Intermountain Gas will construct the gas
main extension per the agreement. The agreement also includes a 5 year
reimbursement clause should any development occur that connects to this new
extension. They City would be responsible for notifying Intermountain Gas if any
connections for new service occur on an annual basis, and the agreement
stipulates the calculation for refund.
III. IMPACT
A. Fiscal Impacts
Funding is available in the North Black Cat Lift Station Gas Service enhancement
for this contract.
Project Costs:
Fiscal Year 2017
Construction Contract
Project Funding
Fiscal Year 2017
Available Funding
Total Funding Requested
B. Alternatives
Account Code / Codes
3590-96144
$30,209.54
$40,000.00
$30,209.54
Continue utilizing the propane service at the lift station at an annual cost to the
City of $18,000.
C. Time Constraints
Construction of this project is incorporated in the enhancement for FYI 7.
Approval of this construction contract in a timely manner will ensure the project
remains on schedule for completion prior to the end of FYI 7.
Departmental Approval: C-., �- - 0 -W—�
Page 2 of 2
INTERMOUNTAIN GAS COMPANY
MAIN EXTENSION CONTRACT
TYPE A
Intermountain Gas Company (hereafter referred to as "Intermountain") and the following person(s): CITY OF
MERIDIAN (hereafter referred to as "Applicant") mutually agree to the terms of this contract.
I. Applicant hereby applies for a gas main extension, Project #413-1584 WO#238637 (hereafter referred to as the "Project")
to be constructed in accordance with Intermountain's General Service Provisions, at the following location:
Installing 1460' of 4" Y Main into NORTH BLACK CAT LIFT STATION to serve 4300 N Black Cat..
To serve 1 lot.
2. Intermountain's calculated cost of constructing the Project (hereafter referred to as the "Total Estimated Investment") is
$33,796.93.
3. Intermountain agrees to construct the Project.
4. Applicant agrees to pay Intermountain $30,209.54, which is the difference between the amount allowable for the expected
revenue from the Project pursuant to Intermountain's General Service Provisions and the "Total Estimated Investment".
Such amount shall be paid prior to commencement of construction of the Project.
5. Intermountain shall, at the end of each of the first five (5) twelve (12) month periods following the month in which the
Project was completed, calculate the estimated annual revenue from those new services not used to calculate the amount
described in paragraph 4 hereof, and not considered in a previous refund calculation. One and a half (1 1/2) times each
such amount shall be refunded by intermountain to Applicant provided that the total refund to Applicant during the term
of this agreement shall not exceed the amount paid by Applicant pursuant to paragraph 4 hereof.
6. Applicant must notify Intermountain in writing of each new service Applicant wishes to be included in calculating
refunds pursuant to paragraph 5 hereof. No new service will be included in such calculation unless Applicant so notifies
Intermountain prior to the end of any twelve-month period.
7. No refunds will be made for services initiated after five years from the month in which the Project is completed.
8. Intermountain shall retain all ownership in the Project.
9. While an Applicant may consist of several persons, such a group of persons shall be treated as a single applicant herein
for all purposes.
10. This agreement is entered into pursuant to and subject to Intermountain's General Service Provisions in effect and on file
with the Idaho Public Utilities Commission. All service rendered by Intermountain shall be in accordance with the rates,
rules and regulations promulgated by the Idaho Public Utilities Commission,
Dated: May 2, 2017
Applic
i ��
City eridian
Mayor Tammy de Weerd
33 E Broadway Ave
Meridian, ID 83642
208-898-5500
IGC Form 515
Intermountain Ga pany
555 S Cole Rd
PO Box 7608
Boise, ID 83707-9928
Fax: (208) 377-6867
UNIVERSAL INVOICE
INTERMOUNTAIN GAS COMPANY
P.O. Box 7608, Boise, ID 83707
SERVICE ADDRESS:
INVOICE #: 408086
GAS ACCOUNT NUMBER ` SPECIAL BILLING NUMBER
CURRENT
DATE
CYCLE
TOWN
FOLIO
SEQ TOWN
FOLIO' BILL
413
5/2/17
BUSINESS NAME: City of Meridian
ITEM CODE: 17
FIRST NAME
INITIAL
LAST NAME
CASH
CHECK
B/C
OTHER
Mayor Tammy
de Weerd
XX
ADDRESS: 33 E Broadway Ave
EMPLOYEE #: 539832
CITY: Meridian
STATE: Idaho
ZIP CODE: 83642
PHONE: 208-898-5500
RETURN THIS PORTION WITH YOUR PAYMENT
RESPONSIBILITY
AREA
ITEM
CODE
L'
B '
R
O
H
R
PART CODE
QTY
DESCRIPTION OF CHARGES
PRICE
48.2520.38201
17
❑
❑
Type A Contract
$30,209.54
Project #413-1584
North Black Cat Lift Station
1460' of 4" Y Main
- REMARKS AND SERVICE PERFORMED
APPLIANCE
S
SUMMARY OF CHARGES r
CENT HEAT
1
TOTAL
PARTS
SPACE
HEAT
21
TOTAL
OTHER
WTR HEAT
3
SALES
TAX
DRYER
4
TOTAL
LABOR
COOK
5
I TOTAL
DUE $
$30,209.54
Year 2017
BBQ GRILL
6
SIGNATURE BELOW CONSTITUTES ACCEPTANCE OF ABOVE SERVICE PERFORMED AS BEING SATISFACTORY
FIREPLACE
7
SIGNATURE:
I OTHER
8
IGC 123 (09/99)