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A resolution approving a participation agreement between the Metropolitan Government, by and through the Department of Water and Sewerage Services, and Campus Operations, LLC (“Oracle”) for the design and construction of a sewage pump station and associated lines and equipment (Proposal No. 2026M-067AG-001).
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WHEREAS, Oracle is developing an approximately 78-acre campus (the “Property”) on the east bank of the Cumberland River to serve as Oracle’s corporate headquarters; and,
WHEREAS, conveyance of sewage flows from the new Oracle campus to the Metropolitan Government’s Central Wastewater Treatment Plant will require construction of a new pumping station (the “Project”), which upon completion will also serve a substantial collection area in East Nashville; and,
WHEREAS, Oracle and the Metropolitan Government estimate the cost of design and construction of the Project at approximately $77,555,000, and the cost or design and construction of a new pumping station sized to serve only the Oracle campus at approximately $12,000,000; and,
WHEREAS, pursuant to the Agreement attached as Exhibit 1, Oracle proposes to design and construct the Project and contribute $12,000,000 towards the cost thereof, with the Metropolitan Government funding the balance of Project costs; and,
WHEREAS, BL2022-1214 authorizes the Metropolitan Department of Water and Sewerage Services to enter into participation agreements funding infrastructure with developers by resolution of the Metropolitan Council; and,
WHEREAS, approval of the Agreement is in the best interest of the Metropolitan Government.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Agreement is approved, and its execution and delivery by the Director of the Department of Water and Sewerage Services or the Director’s designee is authorized.
Section 2. This resolution shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance approves a participation agreement between the Department of Water and sewerage services (“Metro”) and Campus Operations, LLC (“Oracle”), for the design and construction of a sewage pump station and associated lines and equipment.
Oracle is developing an approximately 78-acre campus (the “Property”) on the east bank of the Cumberland River that the existing sanitary sewer system is not adequate to serve. For that reason, this resolution proposes constructing a new pumping station that would serve a substantial area of East Nashville upon completion.
Pursuant to the terms of the participation agreement, it is anticipated that the total cost of the pump station project would be approximately $77,550,000. Oracle would be responsible for $12,000,000, which represents the cost of design and construction of a new pumping station sized to serve only the Oracle campus.
Oracle would agree to engage a qualified contractor to construct the pump station project by written contract. The contract for the pump station project is subject to approval by the Metropolitan Department of Law and must include certain provisions required by the participation agreement, including, but not limited to, requirements that the contract provide a fixed price for the pump station project in an amount approved by the Metro Water Director, that Metro Water is not responsible for costs associated with errors or omissions in the final plans, and that Metro Water is indemnified by the contractor.
Oracle would also agree to pursue the completion of the pump station on or before September 30, 2029. Upon completion, the pump station would be transferred to Metro Water. The Metropolitan Government would be responsible for ongoing maintenance and operation of the project.
The participating agreement also requires Metro Water to decommission and demolish the existing pumping station at 805 Cowan Street after the new pump station is complete. The Metropolitan Government is solely responsible for the decommissioning and demolition costs. Separately, Oracle would agree to acquire easements from Pinnacle 4th and Peabody LLC, and Metro Water would abandon easements across the property of Pinnacle 4th and Peabody LLC upon completion of the project.
The participation agreement becomes effective upon approval of the Council and upon the date of its filing with the Metropolitan Clerk.
Ordinance No. BL2022-1214 authorizes the Metropolitan Department of Water and Sewerage Services to enter into participation agreements funding infrastructure with developers by resolution of the Metropolitan Council.
Fiscal Note: The estimated cost of the new pumping station is $77,555,000. Campus Operations, LLC (“Oracle”) will contribute $12,000,000, representing its share of the costs associated with serving the Oracle development, towards the design, and construction of a new sewage pumping station to accommodate the additional sewage flow generated by the Oracle development. The Metropolitan Government will pay the difference between the actual project design and construction costs and Oracle’s contribution and will not be responsible for costs associated with any change order associated with errors or omissions in the final plans. The Metropolitan Government will be responsible for the cost of decommissioning and demolishing the existing pump station. Oracle will be exempt from any sewage infrastructure cost recovery charges imposed by the Metropolitan Government. The Metropolitan Government will abandon, and Oracle will acquire the easements across the property of Pinnacle 4th and Peabody LLC. Oracle will convey ownership of all completed improvements at no cost to the Metropolitan Government. The Metropolitan Government will be responsible for ongoing maintenance and operation of the project.