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Council approves updated regional water agreement with Randall and Bridal; staff says deal reduces Mitchell's monthly minimum
Summary
City approves updated water-supply agreement (A2024-442) with Bridal Community Water District and Randall Rural Water that adjusts participant shares, transfers ownership of new infrastructure to Bridal, and reduces the city's minimum monthly payment in the contract. Randall project representatives outlined timeline and a $34,000/month reduction noted in the meeting.
The Mitchell City Council approved an updated water-supply agreement (A2024-442) with Bridal Community Water District and Randall Rural Water that refines participant shares and project responsibilities for a regional water system.
Staff explained the agreement was narrowed to remain a contract between the City of Mitchell and Bridal while Randall retains capacity for other prospective users. Under the agreement, Mitchell would buy into existing infrastructure (noted in the appendix as a 35% share of existing upgrades) and is projected to take 3,500 gallons per minute in an early design phase, which staff said yields a roughly 70% share during phase 1 of the project. The city's monthly minimum payment in the staff summary was shown as reduced (from $2.83 in the previous draft to $2.49 in the updated agreement); staff characterized this as a roughly $34,000-per-month reduction across participants achieved by bringing additional users into the project.
Ron Gillan, a retired engineer working with the project team, said the design-build selection interviews are scheduled and the team hopes to have pipe in the ground by mid next year with a targeted system test and contract completion by mid-2027. He said most easements are secured (phase 1 reported as 46 of 47 easements signed); the project team described mitigation steps for construction impacts and crop-damage payments set at $1,000 per acre (one-time).
Staff and project representatives told the council the contract includes provisions to protect the city's share of water if future improvements increase capacity (for example, adding booster stations) and that grant funding (shown in appendix A) reduced the net project cost; staff reported roughly $21,200,000 in grant funds included in appendix material.
Council voted to approve the updated agreement. Staff cautioned that future rate increases and fee adjustments will be required through 2027 to fund the city's monthly payment commitment.
Next steps: Staff will finalize contract execution and the design-build procurement process continues with interviews and anticipated award in late October.
