Item 11

COMMISSION FILE NO: 10-125-9 DATE INTRODUCED: September 13, 2010

INTRODUCED BY: Executive Director Signature on File in Office of the Commission

REFERRED BY COMMISSION CHAIRPERSON TO: Policy, Finance, and Personnel Committee

RELATING TO: Amend the 2010 Capital Budget, Create Project C02006 in the 2010
Capital Budget and Approval of Intergovernmental Cooperation Agreement
with the City of Franklin for the Ryan Creek Interceptor Project

SUMMARY:

The Commission is requested to amend the 2010 Capital Budget and create Project C02006,
Ryan Creek Interceptor, with a total project cost of $1,428,405. This amount represents the
project management costs agreed to by the District, including the costs for resident
engineering, resident inspection, and other project expenditures. The District will be
reimbursed by Franklin for this amount. The Commission is further requested to decrease the
total project cost of Project M99001, Allowance for Cost and Schedule Changes, by
$1,428,405, for a total project cost of $11,719,903. In addition to the project costs noted under
the Intergovernmental Cooperation Agreement (ICA), described in more detail below, the
District will reimburse the City of Franklin $41.1 million, which is the estimated cost (principal
and interest) to construct the interceptor and includes the $1,428,405. Payments to Franklin
will be over a period of eyars beginning 2015 and ending in 2031

ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION

FISCAL NOTE S/W/MBE OTHER
PFP_JHP_ICA_Franklin_legislative_file.doc
08_30_10

COMMITTEE ACTION: DATE:

COMMISSION ACTION: DATE:

 SUMMARY (Cont’d)

Amend the 2010 Capital Budget, Create Project C02006 in the 2010 Capital Budget and
Approval of Intergovernmental Cooperation Agreement with the City of Franklin for the
Ryan Creek Interceptor Project

The Commission is requested to authorize the Executive Director to enter into an

Intergovernmental Cooperation Agreement (ICA) with the City of Franklin that provides
for Franklin to design and construct the Ryan Creek Interceptor and for the District to
purchase the interceptor sewer from the City of Franklin beginning in 2015. This
interceptor sewer will provide the infrastructure needed to provide sewerage service to
the remaining portion of the City of Franklin and a portion of the City of Muskego
(although Muskego must construct facilities within the City of Muskego to make
connection to the Ryan Creek Interceptor) and is likely to be in service during 2014.
The project has a qualifying Wisconsin Clean Water Fund Program loan priority; the
interceptor has been adopted by this Commission as Amendment Addendum 2 to the
District’s 2020 Facilities Plan with the timing of implementation to be based on review of
population growth; and the project Facility Plan Addendum 2 has been approved by the
Southeastern Wisconsin Regional Planning Commission (SEWRPC) and the Wisconsin
Department of Natural Resources.

The ICA addresses several significant matters. From the District’s perspective, the
most critical matter is that all of the City of Franklin be included within the District
immediately following completion of statutorily required hearings. The City of Franklin
will apply for the Clean Water Fund Program loan and use the loan to finance design
and construction of the Ryan Creek Interceptor, which the parties agree will be
designed and constructed to District standards. The District will make payments to the
City of Franklin, beginning in 2015, equal to Franklin’s annual payments toward
repaying its Clean Water Fund Program loan. On January 3, 2017, the District is to
make an additional lump sum payment to reimburse Franklin for the sums Franklin has
paid toward the Clean Water Fund Program loan through 2014. The amount of
reimbursement by the District to the city of Franklin for the cost to construct and finance
this interceptor shall be the principal amount of Franklin’s Clean Water Fund Loan, plus
interested calculated using the actual rate, with the total amount estimated at this time
to be $41.1 million.

With construction of this interceptor sewer, the District will have all the facilities needed
to provide sanitary sewerage service to all of the projected growth in the City of
Franklin.

A two-thirds affirmative vote of the Commission is required for approval.

2
 RESOLUTION

Amend the 2010 Capital Budget, Create Project C02006 in the 2010 Capital Budget and
Approval of Intergovernmental Cooperation Agreement with the City of Franklin for the
Ryan Creek Interceptor Project

RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the 2010

Capital Budget is amended and Project C02006, Ryan Creek Interceptor, is created with
a total project cost of $1,428,405.

FURTHER RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that

the total project costs of Project M99001, Allowance for Cost and Schedule Changes, is
decreased by $1,428,405, for a total project cost of $11,719,903.

FURTHER RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that

the Executive Director is authorized on behalf of the District to enter into an
Intergovernmental Cooperation Agreement with the City of Franklin for design and
construction of the Ryan Creek Interceptor project consistent with the recommendations
in Addendum 2 to the MMSD 2020 Facilities Plan and its purchase amount shall be the
principal amount of Franklin’s Clean Water Fund Loan, plus interest calculated using the
actual interest rate, with the total amount estimated at this time to be $41.1 million, with
payments by the District commencing in 2015.