Utility Committee Agenda and Packet 2020 09 08

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City Council Utility Committee Meeting Minutes Tuesday, July 28, 2020 Page 5 of 6 Gap where it could have a major impact on rates and thought we need to take into consideration. Then asked what the other water rights we will be purchasing are. Mr. Peterson said the Master Plan is looking at 200 AF of water rights. Mr. Kowar added that we make more emphasis on water quality versus quantity. Page 18 — Pipeline Map, Mr. Peterson explained this is a map of the upper section of the Louisville Pipeline and it does tie into the overall CIP Budget. Currently there are two organizations, "State Park and Eldorado Springs Bottling Co." doing work that will involve paving all the way up into the Canyon. We are looking at replacement of the upper section of water line while they are doing their project as there will be a small cost savings to us. It gives us an opportunity to do now rather than wait 5 years and have to tear the pavement up. This is new information to us so it's not on the CIP List. Committee continued discussing this project, the easements, and the agreement with Eldorado Bottling Co. Mayor Stolzmann asked if the firms would be willing to cost share. Mr. Peterson stated that we are negotiating to hopefully cost share but when we approached them they both declined as they are struggling financially. Mr. Kowar stated we could do nothing as we are in a good position with no risk to us. Cory will continue to try and negotiate. VIII. Windy Gap Financing • Page 19 — Windy Gap, Mr. Peterson said this is an update and explained we got more funding scenarios from Northern District and wanted to share with you. • Page 21 — Windy Gap Timeline, This shows a rough time line so we can keep track where things are and where we are going. • Page 22 — Shows an increase but there was a contingency number that Northern was using that Mr. Peterson wasn't which is why the change in cost. • Page 23 — Shows combined rate is slightly cheaper than the City's scenarios that were provided last time. It's really coming down to interest rates and we won't know until we actually commit. Committee discussed the scenarios, debt, group financing and the Allotment Contract. Mr. Peterson continued with saying the biggest step is the Allotment Contract which will decide if we are in the pool of financing or not. The agreement also includes default clauses. Councilmember Lipton said that we need to pick a direction we want to go and agree on principles. IX. Draft 2021 Rates — Postponed to next meeting • Councilmember Lipton suggested setting a meeting before our next regular scheduled meeting for the Rates and CIP discussion. Mr. Kowar said that our rate and CIP information doesn't change and that we are ready to go and 7