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
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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
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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
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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
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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
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North Palm Springs Business Park—From Rick Pantele, Mery Kirschner to City Of Palm Springs,Councilman Kors
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