Policy Bulletin 315 - Procurement or Lease of Existing Water System
Adopted 2007/12
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An existing water supply system that desires to have Southern Black Hills Water System assume responsibility for operations, maintenance, administration, billing, capital improvements and/or debt service may be required to satisfy the following conditions prior to entering negotiations for procurement and/or lease by Southern Black Hills Water System. The following conditions generally apply to those instances where Southern Black Hills is being asked to assume ALL RESPONSIBILITY for the system including, but not necessarily limited to the costs associated with major repairs, replacement capital improvements and/or debt service. The following conditions are not intended to preclude Southern Black Hills from negotiating acceptable terms when asked to consider a lease agreement with an existing system: by way of example, a municipal system that desires to lease its system to Southern Black Hills but has agreed to contractual provisions whereby the existing system agrees to fund (or partially fund) major repairs, replacements and/or existing debt:

1. The existing water supply system must have and provide Southern Black Hills with a satisfactory set of plans and specifications prepared by a professional engineer and, if required by the funding authority, approved by the State o f South Dakota and/or the Federal Government.
2. The existing water supply system must have and provide Southern Black Hills with satisfactory set(s) of record drawings, including all valve ties and construction material submittals, and present Southern Black Hills with data (or sufficient means to collect data) regarding pipeline and appurtenance locations of an accuracy to assimilate the locations nto Southern Black Hills Global Positioning System (GPS) and Geographic Information System (GIS).
3. With a few exceptions, Southern Black Hills will only consider requests for procurement and/or lease of an existing system in which the primary method of pipeline construction is the utiliz.ation of gasketed joints for pipeline joint connections. Consideration of existing water supply systems that utilized other construction methods for the emplacement and connection of pipeline will be at the sole and exclusive discretion of Southern Black Hills.
4. The existing water supply system in cooperation with Southern Black Hills must perform and pass (within allowable parameters established by Southern Black Hills) a pressure test and/or other tests deemed necessary by Southern Black Hills. Any cost associated with the pressure and/or other tests will be the responsibility of the existing water supply system.
5. The existing water supply system must make suitable arrangements for the emplacement of meters, meter remotes and meter pits approved by Southern Black Hills.
6. The existing water supply system at the request of Southern Black Hills and/or its agents or consultants will supply any and all pertinent records relating to operations, maintenance, administration, billing, capital improvements and/or debt service for review by Southern Black Hills. Failure to provide sufficient data requested by Southern Black Hills may cause rejection of the proposed procurement and/or lease of the existing water supply system.
7. Nothing in this policy obligates Southern Black Hills to negotiate for, procure, or lease any existing water supply system.