City Council Minutes 2015 10 06 - Laserfiche WebLink

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City Council Meeting Minutes October 6, 2015 Page 3 of 26 REGULAR BUSINESS AWARD BID FOR LOUISVILLE AND SUPERIOR WATER INTERCONNECT CONSTRUCTION Mayor Muckle requested a staff presentation. Public Works Director Kowar explained before the Council is a construction contract to construct a potable water interconnect with the Town of Superior. The cost of construction will be split equally between the two communities and would provide redundancy for both. A study was conducted to explore ways to optimize the usage of each community's water systems. Louisville may need to expand their water plants, but under this system; there would be the ability to interconnect with a neighboring community on peak days during the summer months. The interconnect system would cost significantly less than expanding the City's water plants. The project has been through the bid and design process. The contract is in the amount of $536,435 with a staff controlled contingency of $63,565. Staff recommended awarding the contract in advance of the IGA to preserve bid pricing and enable construction starting during the fall weather season. Currently the communities have been working in good faith under a letter of commitment signed by the City and Town Managers. The Town of Superior determined in the final draft of the IGA, the cost of water would be $5.30 per 1,000 gallons of construction water. The Water Committee reviewed the IGA and did not approve the rate and felt there should be further discussion. He noted there has been discussion between the City and Town Managers and Public Works Directors of Louisville and Superior. Council member Lipton confirmed the Water Committee reviewed this matter very thoroughly at their last meeting and were unanimous in their concem for the negotiated price for 1,000 of usage. They advised staff the cost would have to be equalized with the Town of Superior. They supported going forward with the project because the cost is being split 50/50. He supported going forward, because if the project is delayed and has to be rebid, it may be self- defeating in cost of the project and the usage. He asked for clarification for the request for $450,000 instead of the $300,000. Public Works Director Kowar explained through the design process it has operated through reimbursement. He noted during peak demands, the current higher rates tiers are between $11.70 and $14.41 per 1,000 gallons, so the City still covers their costs. City Manager Fleming reported on his meeting with Superior Town Manager Matt Magley, who was very comfortable with the discussion coming back to the Joint Interest Committee. He recommended $3.00 per 1,000 gallon amount and was confident the Joint Interest Committee would be amenable to this amount.