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HomeMy WebLinkAbout3/15/2017 - STAFF REPORTS - 1.D. 66575 Second Street,Desert Hot Springs,CA 92240 • www,mswd.org • p 760.329.6448 • f 760.329.2482 Mission Springs Water District January 25, 2017 �, MANAGER FEB 0 9 2016 City of Palm Springs SPRINGS Attn: David Ready,City Manager CITY OF PALM 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 RE: UPDATE 1-10/INDIAN CANYON COMMERCIAL CORRIDOR WASTEWATER FACILITIES Dear Mr. Ready: Following is an update on Mission Springs Water District's (MSWD) progress on construction of wastewater facilities and development of collection facilities in the 1-10/Indian Canyon business corridor. We hereby request that this correspondence be included in your City Council agenda packet for the next regular meeting. As of this correspondence,significant progress has been made.The MSWD Board has approved a capital budget allocation in the amount of$17.3 million to construct the 1MGD wastewater treatment plant (WWTP) located about one mile south of Dillon Road on Little Morongo Road. MSWD has completed and issued a bid package for Design Engineering with proposals due by February 17, 2017. CEQA preparation is underway.The plant is scheduled for completion in summer of 2018. The WWTP, programmed to ultimately receive 20 MGD in flows and provide recycled return flows to the basin,will serve as the central treatment facility for the MSWD service area.This area includes the commercial areas on the north and south sides of interstate 10, respectively, and east and west of Indian Canyon. MSWD is prepared to ardently oppose any and all exportation of water—in the form of wastewater or otherwise—from its jurisdictional boundaries. The 1-10/Indian commercial corridor has been the subject of much discussion between our agencies over the past few years.Some have asserted erroneously that MSWD has delayed construction of wastewater collection facilities.To the contrary, MSWD has been the primary investor in both infrastructure as well as effort to form a financing district for construction of water and wastewater facilities since the 1990s.The District has spent hundreds of thousands to date in planning, outreach and construction of some facilities (a conduit under the 1-10) in anticipation of property owners agreeing to form a financing district for a wastewater collections system to facilitate development of their respective properties. After dozens of meetings, mailings and surveys, support of property owners(66%) required to form a community facilities district(CFD) has yet to emerge.This support is required under CA Proposition 218 if a public agency intends to recover the costs of such infrastructure projects from the benefited parcel ITEM NO. •� MSWD is a Groundwater Guardian Affiliate owners.The MSWD Board is, and has been willing to move forward as soon as property owners indicate a desire to do so by an affirmative vote for their fair share of the costs of those facilities. In recent weeks MSWD met with a few property owners who speculated that there may be renewed interest in funding the construction of these needed facilities. In response MSWD is proposing yet another survey that will put forward various financing scenarios to property owners in an effort to get confirmation of this interest. MSWD believes it is incumbent upon the cities of Palm Springs and Desert Hot Springs—both of which will receive direct benefit from development in the project area—to partner with MSWD and demonstrate support for this,the most cost effective proposal available. MSWD is well aware that there are a number of owners who have expressed frustration about both the lack of wastewater infrastructure as well as the time it has taken to construct such infrastructure since bringing projects to your city for entitlement.This is understandable. MSWD has explained time and time again to these same owners that their peers hold the key to approving the needed improvements. As we prepare to launch another round of information mailings, we would like assurance that the city of Palm Springs is supportive of this effort.We welcome your participation in meetings and the contribution of resources that may serve to elevate the value proposition to secure the needed majority vote of affected property owners. Sincerely, I Kal Arden Wallum General Manager 02 North Palm Springs Business Park—From Rick Pantele, Mery Kirschner to City Of Palm Springs, Councilman Kors Dear Rick, A small group met with the Mission Springs Water District on 1 -11-17 to be updated on the Sewer situation facing the Palm Springs area both north and south of 1-10 at Indian Avenue. The leader of the meeting was John Soulliere , Admin officer/ Public relations for Mission Springs Water District. In attendance was the Director of Engineering and Operations, Danny Friend and their Financial Director, Matt McCue. There were 5 other interested parties with 4 from NPS Business Park and Chris Lucker, representing Noble interests. The Plan for the MSWD is to have the advanced treatment facility ready early Summer 2018. That cost is in excess of $20,000,000 and is paid for by MSWD. They are going to proceed and not let the Collection system be the driver as this facility will serve the entire area for a long period of time. We were provided some names of parties to talk to about the system. In June of 2014, MSWD met with the City of Palm Springs to discuss the City's participation in the project. The desire was for $3-5 million that could be committed over a period of time or at the inception. The commitment from the City has to be permanent and not funds that can be terminated. A commitment from the City was unavailable. A later comment from John was that "a couple of million would get us going." John is going to try to meet with the City in the next month or so. Every time Danny Friend is at Council meetings he goes up to Marcus Fuller and asks about the project and there is not any commitment from the City to participate. If the Collection system goes forward, it will cost about $11,000,000 and result in a fee to property owners of $850-$895 per acre per year plus connection fees. If money is contributed by the City that amount can decrease to $650-$680 per acre, which John believes, will make the project move ahead. A 51% vote is required but they MSWD, are looking for a 2/3 participation. The collection system will take 12-18 months to complete. According to Danny Friend, the Collection System i North Palm Springs Business Park—From Rick Pantele, Mery Kirschner to City Of Palm Springs, Councilman Kors The total acreage in the assessment district had been reduced from 1009 to 855 acres. The collection system design is 90% completed per Danny Friend. There will be a report to the Palm Springs City Council next month. The District will not only serve North Palm Springs but the area to the south in Palm Springs and a large portion of Desert Hot Springs. It will enable commercial development on the South side of the Freeway, which will bring tax revenue to the City of Palm Springs We welcome your assistance with this sewer problem. A solution will be a win- win for the City of Palm Springs and the property owners who have been put on hold due to the lack of sewer availability. Sincerely Mery Mervyn L.Kirshner.SIOR mkirshner@dc.rr.com mkirshnerl@gmail.com (alternate e-mail) 760/408-9814(mobile) BRE #00254315 2 North Palm Springs Business Park—From Rick Pantele, Mery Kirschner to City Of Palm Springs, Councilman Kors Mr. Kors, Attached is the proposed collection system for the Area of Palm Springs not served by sewer as supplied tome by John Soulliere of Mission Springs Water District The District is going to construct the Disposal System on land they own at their cost. I have been working with them for more than 5 years and am working for the members of the North Palm Springs Business Park, of which I am one, to enable development of the balance of the land. I attended a meeting that was held at Palm Springs City Hall on 8/24/16 with Marcus Fuller and Savat Khamphu and other owners to review the lack of sewer problem. If the City of Palm Springs will participate in the assessment district being proposed by Mission Springs Water, John Soulliere believes that will enable the project to proceed. He and members of the Water district have tried to get the City to participate unsuccessfully. I am interested as a property owner and would appreciate your assistance and guidance as to how to move this project and problem forward. Solving this problem will be a great benefit to the City of Palm Springs as well as the property owners. Thank you. Sincerely Mery Mervyn E. Kirshner, SIOR mkirshner@dc.rr.com mkirshnerlOgmail.com (alternate e-mail) 760/408-9814 (mobile) BRE #00254315 From: John Soulliere [mailto:jsoulliere@mswd.org] Sent: Monday, January 23, 2017 7:16 AM To: lrsanders@ngkf.com; mkirshner@dc.rr.com Subject: FW: Map exhibit See attached High Res map: I-10/Indian, as requested. John M. Soulliere Conservation and Public Affairs Officer 3 North Palm Springs Business Park—From Rick Pantele, Mery Kirschner to City Of Palm Springs, Councilman Kors Mission Springs Water District 66575 Second Street Desert Hot Springs, CA 92240 Direct: 760/329-5169 x 144 Cell: 760/275-2296 4 North Palm Springs Business Park—From Rick Pantele, Mery Kirschner to City Of Palm Springs, Councilman Kors North Palm Springs Business Park • The Industrial Business Park developed 25 years ago. • About 1/3 developed and the balance unimproved. • The buildings that are developed are on Septic Tanks. • The Regional Water Quality control board will no longer allow Septic tank as the water table is too high. • Mission Valley Water has tried to form an assessment district a few years ago and it did not proceed. • They were hopeful that the City of Palm Springs would, be part of the assessment district and provide $3-5,000,000 towards the project • They do not need all the funds upfront but a non—cancellable commitment for the funds over a long period. • Even $2,000,000 in commitment would make the project very viable and allow it to proceed • Mission Water would like to meet with the City of Palm Springs and see how to make this project move forward. • This a is a win/win situation and will be very positive for the City of Palm Springs if it moves ahead development will take place at Indian and The 1-10 that will bring significant Tax income to the City of Palm Springs. • I am the President of the North Palm Springs Business Park and we would greatly appreciate your assistance and the Cities meeting with the Mission Springs Water District. Mery Kirshner —SIOR 5 North Palm Springs Business Park—From Rick Pantele, Mery Kirschner to City Of Palm Springs,Councilman Kors j •� c �ppZ G � OEM_ n .. . r; — p ✓7i�9j,z m /// (( � 1� E rY • 1 g �� e _ r f d 5 - r ' i _t7S _. AA„ ,a i ,g a Ellie °-i 6