Utility Committee Agenda and Packet 2019 04 12

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City Council Utility Committee Meeting Minutes Friday, March 15, 2019 Page 3 of 4 the next meeting. The Committee continued discussing project costs and how construction wages are driving the costs up. Water Line Break — The Second project discussed was related to the water line break at Eisenhower. The current estimate for this work will increase the cost of the waterline replacement program by an additional $1.5 million. Mr. Kowar explained that the cause of the break appears to be corrosion resulting from soil conditions. To mitigate the corrosive soils, the City has utilizes PVC pipe in the waterline replacement program for many years. Mr. Kowar continued discussing where the lines will be replaced and what is included in the scope of work. SCWTP Disinfection Evaluation - Mr. Peterson presented the two main factors that are driving up the cost for this project. Mr. Kowar added the intent of the project is to improve the safety and functionality of the water plant. Given the higher cost, Mr. Kowar has directed staff to reevaluate the alternatives and confirm the appropriate direction forward. The existing chlorine system has been noted as part of the sanitary survey inspections performed by the Colorado Department of Public Health and Environment as requiring future improvements to maintain compliance. Mr. Peterson stated that it is highly likely that the City will either need to make the switch as currently recommended or design improvements to the existing system within the next two years. SCWTP Upgrades — Mr. Peterson explained the needs and desires for the renovation of the administration building. He went on to illustrate the two options of renovating approximately 500 square feet of existing space or/and the expansion of around 750 square feet of new space. Councilmember Stolzmann stated that this project should be integrated with the disinfection project and should be decided together. Windy Gap — Mr. Peterson described the ongoing delay and the impacts to the overall project budget. Operating and Maintenance Budget - Mr. Peterson went on to explain that a couple items got inappropriately accounted for in the operating line items during the budget process. The largest two being the lead and copper sampling and the ground penetrating radar for the Eisenhower waterline break. Mr. Peterson stated that several of budget items approved for 2019 were below the 2018 expenditures. These operational budget items are included in the proposed budget amendment for an upcoming Council meeting. NCWCD Pump Station — Mr. Peterson outlined that NCWCD (Northern Water) as updated their last estimate of $93,000 in 2019 to $150,000 in 2020. This work is tied to the City's prorate of the shared costs for these facilities. Committee discussed time lines of design, bidding and construction. Tap Fees — Mr. Peterson summarized the shortages on tap fees revenue for 2018. In discussion, it was determined the shortage was related more to timing of projects not developing as quickly as estimated. Mr. Peterson reminded the Committee that that rate model utilizes a delayed mechanism for the tap fees and 2018 revenue are shown in the 2019 model year. This delay mutes the model response to tap fee revenue and provides for greater time for adjustments or response. Mr. Peterson explained how the tap fees are tied to the population projection. 5