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Home My Public Portal About2020_08_11_R089 Water and Sanitary Sewer Service Extension Approval to Microsoft Phase II Project The Town of Leesburg, Virginia PRESENTED: August 11, 2020 RESOLUTION NO. 2020-089 ADOPTED: August 11, 2020 A RESOLUTION: CONDITIONAL APPROVAL OF WATER AND SANITARY SEWER EXTENSIONS TO SERVE A PORTION OF THE PROPERTY OF MICROSOFT CORPORATION (MICROSOFT PHASE II) WHEREAS, Microsoft Corporation (the "Applicant") requests approval of Town of Leesburg, Virginia ("Town") water and sanitary sewer extensions to a proposed project on a parcel (Parcel Identification Number 235-29-7431-000) (the "Microsoft Property"). The project involves the second phase of the development of the Microsoft Property ("Microsoft Phase II") for data centers and administrative uses; and WHEREAS, Microsoft Phase II is located outside the Town's corporate limits, but within the Town of Leesburg Joint Land Management Area("JLMA") and within the Town's water and sewer utility service area; and WHEREAS, existing and proposed Town water and sanitary sewer infrastructure are located in the vicinity of the Microsoft Property. A 16-inch water main is located approximately 1,600 feet north of the Microsoft Property and designed to extend south with approved Compass Creek Development plans. A revision is required on the Compass Creek Development plans to increase the approved 12-inch water main to 16 inches. A 14-inch lined gravity sewer main traverses the entire Microsoft Property; and WHEREAS, existing water and sewer pro-rata agreements under Town Code§§ 34-30 and 34-128 identify the Microsoft Property as a "benefitted parcel" and/or a "named property". The Applicant, therefore, is responsible for water and sewer pro-rata payments due under the agreement(s); and -2- A RESOLUTION: CONDITIONAL APPROVAL OF WATER AND SANITARY SEWER EXTENSIONS TO SERVE A PORTION OF THE PROPERTY OF MICROSOFT CORPORATION (MICROSOFT PHASE II) WHEREAS, the Town has entered into the Agreement for the Construction of Phase II Lower Sycolin Gravity Main with the Peterson Companies, dated as of March 24, 2015 (the "2015 Pro-rata Agreement"). This Pro-rata Agreement provides for the Town to share certain construction costs incurred in constructing sanitary sewer facilities to serve the "Crosstrail Southern" area, which includes the Microsoft Phase II area; and WHEREAS, the Town Council adopted Resolution No. 2015-039; dated March 24, 2015, which designates the Crosstrail (Southern) as a benefitted parcel and assigns certain costs to the Crosstrail (Southern) property for purposes of future pro-rata payments. The Microsoft Property is located in the area designated as Crosstrail(Southern); and WHEREAS, the Town has adopted resolutions establishing pro-rata payments for properties served by the Route 643 Water Storage Tank project; and WHEREAS„ the Town Council adopted resolution 2019-180 on November 26, 2019, approving the extensions of Town water and sanitary sewer services to Microsoft Phase I in accordance with §§ 34-25 and 34-123 of the Town Code, provided the Applicant satisfied certain conditions; and WHEREAS, the Town Council adopted resolution 2020-R-066 on May 26, 2019, approving the extensions of Town water and sanitary sewer services to Microsoft Phase II in accordance with §§ 34-25 and 34-123 of the Town Code, provided the Applicant satisfied certain conditions. Section I (11) of resolution 2020-R-055 provided that the approval of extensions of Town water and sanitary services to Microsoft Phase II was conditioned on and -3- A RESOLUTION: CONDITIONAL APPROVAL OF WATER AND SANITARY SEWER EXTENSIONS TO SERVE A PORTION OF THE PROPERTY OF MICROSOFT CORPORATION (MICROSOFT PHASE II) subject to Loudoun County's agreement to a Boundary Line Adjustment (BLA) bringing the entire Microsoft property into the Town boundaries as provided for in the Town Plan; and WHEREAS, the Town and the County are negotiating a proposed economic development and revenue sharing/joint exercise of powers agreement that would provide for the County to share certain personal property tax revenues from the Microsoft property with the Town; and WHEREAS, the Town wishes to remove the Boundary Line Adjustment condition stated in resolution 2020-R-066 to allow Microsoft to proceed with developing its property on Microsoft's schedule while allowing the Town and the County to continue the negotiation of the economic development and revenue sharing/joint exercise of powers agreement; and WHEREAS, the Director of Utilities recommends approval of the extensions of Town water and sewer services for Microsoft Phase II provided the Applicant satisfies the conditions stated in this Resolution. THEREFORE, RESOLVED, by the Council of the Town of Leesburg in Virginia as follows: SECTION I. The Town Council approves the extensions of Town water and sanitary sewer services to Microsoft Phase II in accordance with §§ 34-25 and 34-123 of the Town Code, provided the Applicant satisfies the following conditions: 1. Data center infrastructure design and development of the Microsoft Phase II shall not encroach upon the Town's existing or proposed water and sanitary sewer easements located within the boundaries of the Microsoft Property. 2. The Applicant shall pay the cost of constructing facilities and improvements needed to connect to the Town's water and sanitary sewer systems to serve Phase II. -4- A RESOLUTION: CONDITIONAL APPROVAL OF WATER AND SANITARY SEWER EXTENSIONS TO SERVE A PORTION OF THE PROPERTY OF MICROSOFT CORPORATION (MICROSOFT PHASE II) 3. All Town water and sewer connection fees, water and sewer availability fees, sanitary sewer and water pro-rata fees, and other applicable Public Facilities Permit (PFP) fees for water and sanitary sewer services shall be paid prior to the issuance of any Building Permit issued by Loudoun County. 4. For purposes of the water availability fee, the peak daily water demand to the Microsoft Phase II must not exceed the quantity stated by Microsoft in its table provided to the Town, dated May 14, 2020. 5. For purposes of the sewer availability fee, the peak daily sanitary sewer flow from the Microsoft Phase II must not exceed the quantity stated by Microsoft in its table provided to the Town, dated May 14, 2020. 6. The Town Council must approve or deny any subsequent request, via a Town Council Resolution, for increased water demand and/or sanitary sewer flow capacities over and above the quantities set forth in paragraphs 4 and 5 of this Resolution. 7. If at any time, the Town receives information that the water demand and/or sanitary sewer flow for Microsoft Phase II consistently exceeds the amounts set forth in paragraphs 4 and 5 above, the Applicant or developer shall: (a) seek Town Council approval for increased demand if directed by the Town's Director of Utilities; (b) pay all additional fees set forth in paragraph 3; and (c) if directed by the Town's Director of Utilities, obtain and pay for a comprehensive water and/or sewer model and study that analyzes and defines the impacts to the Town's utility system from the Town's utilities engineering consultant. 8. Previously, the Applicant paid the total sewer pro-rata share assigned to the Microsoft Property as a "benefitted parcel" in Resolution No. 2015-039 with the Phase I PFP. 9. The Applicant must pay the total water pro-rata share assigned to the Microsoft Property and as reflected on the final PFP issued by the Town. 10.The Applicant and the Town will enter into a water and wastewater service agreement that addresses the level of services provided to Microsoft's Phase I and Phase II project and the conditions of such service. This agreement may address: a. Average and peak demand for water. Peak water demand limit. b. Average and peak sanitary sewer flow. Peak sewer flow limit. c. Water demand and sewer equalization storage onsite was not required for Phase I. During the design of Phase II, the additional water demand and sewer flow for Phase II provided to the Town dated May 14, 2020 will be -5- A RESOLUTION: CONDITIONAL APPROVAL OF WATER AND SANITARY SEWER EXTENSIONS TO SERVE A PORTION OF THE PROPERTY OF MICROSOFT CORPORATION (MICROSOFT PHASE II) evaluated and determined if Phase II may require equalization storage onsite. d. The disposal of water used for commissioning data center facilities by pumping and hauling. e. The maximum discharge water temperature limit. f. Effluent water quality limits; which could trigger pretreatment requirements if exceeded. g. Planning for potential restrictions on water usage if drought restrictions are imposed on the Town's water withdrawal permit. h. Sanitary sewer discharge restrictions during wet weather is not required for Phase I. During the design of Phase II, the additional sewer flow for Phase II provided to the Town dated May 14, 2020 will be evaluated and determined if Phase II may require sewer discharge restrictions. i. Providing for real-time measurements of the sewer flow and Town access to this flow measurement data. j. The installation of a flushing device for water quality maintenance purposes near the end of the water transmission main. 11.Based on the extensions of Town water and sanitary sewer service to Microsoft Phase I and Phase II, the Town anticipates that the Microsoft Phase I and Phase II areas will be incorporated into the Town boundaries in the future, either by Boundary Line Agreement or Annexation, and as provided for in the Town Plan, or that the Town and the County will enter into an economic development and revenue sharing/joint exercise of powers agreement with respect to the Microsoft property. 12.Nothing herein shall be deemed a"holding out"by the Town as the sole, exclusive, or primary water and sanitary sewer service provider outside of its boundaries in this vicinity, nor shall it operate as a commitment to provide such services to any party other than the Applicant or for any purpose other than the purposes stated herein and subject to the conditions stated in this Resolution. All proposed extensions of water and sanitary sewer service are subject to the provisions of the Leesburg Town Code and the Leesburg Town Plan. SECTION II. The Town shall not provide water and sanitary sewer service to the Microsoft Project/Phase II until all conditions set forth in Section I are met. SECTION III. The approval of extensions of water and sewer sanitary services for a data center and administrative uses and accompanying conditions shall apply to any -6- A RESOLUTION: CONDITIONAL APPROVAL OF WATER AND SANITARY SEWER EXTENSIONS TO SERVE A PORTION OF THE PROPERTY OF MICROSOFT CORPORATION (MICROSOFT PHASE II) subsequent purchaser of the parcels listed in this Resolution, and/or successor or assignee of the Applicant, and this Resolution shall be recorded in the Loudoun County Circuit Court Land Records to ensure notice of the conditions to subsequent purchasers, successors or assignees of the Applicant. PASSED this 11th day of August, 2020. dArif _ f .. _ _ - Kelly B i rk, iror Town of Leesburg ATTEST: d•eedS VA 06 1:542.40 SD Clerk of Council COMMONWEALTH OF VIRIGINIA, COUNTY OF LOUDOUN, to wit: I, the undersigned Notary Public, in and for the jurisdiction aforesaid, do hereby certify that Kelly Burk, as Mayor of the Town of Leesburg, Virginia, whose name is signed to the foregoing Resolution, appeared before me and personally acknowledged the same in my jurisdiction aforesaid. GIVEN under my hand and seal this 13 day of AlUS f , 2020. ta 369eA No ary Public r �� ass �113� (c) ( . SN �i eta My commission expires: (2022.305 'ts� 'OPINES .Z s Registration Number: ..,,,..,.� , ALTH immonota'"�`a LF\LeesburgRMS\Town_Clerk\Resolutions\2020\0811 Water and Sanitary Sewer Service Extension Approval to Microsoft Phase II Project