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VI. Windy Gap Firming Project <br />Councilmember Lipton commented that staff attended a meeting this morning that <br />determined if there were any appeals filed or not and asked Mr. Kowar for an <br />update. Mr. Kowar stated that an appeal was filed and additional delays are <br />anticipated. Mr. Peterson provided a brief overview of the appeal process and the <br />updated timeline. Councilmember Lipton stated that he is disappointing in this <br />news but it was not unexpected. He expressed concern on the construction delays. <br />Mr. Peterson said that Northern is having discussions with the contractor and an <br />update will be provided later. Mr. Kowar continued saying that once the lawsuit is <br />resolved there will be a need to move quickly. Mr. Kowar, gave an overview of the <br />City's preliminarily commitment and staff recommendation on participating in the <br />group financing at the 20 year term. Mr. Kowar requested that the Committee <br />provide direction for any remaining analysis or what outstanding information is <br />needed. Mayor Pro Tern Maloney said he is in favor of the current recommendation <br />and is not prepared to make any changes. He went on to say that he appreciates <br />all the work staff put into this and thinks the City should stay the course and when <br />we get closer to final decision then we can review. Councilmember Fehey agreed <br />saying it doesn't make sense to put a lot of effort into this now and we should wait <br />until we get through the appeal process. Councilmember Lipton stated that we <br />have a good foundation for making decisions in the future and that we should add <br />a discussion to the April Agenda for an update and maybe every two months in <br />terms of legal process or any other changes we need to know about. The <br />Committee agreed to this addition. <br />VII. 2021 Utility Rates <br />Tap Fees — Mr. Peterson started by saying this is a culmination of the discussions <br />on tap fees and how it impacts the rate model. Staff developed and proposed the <br />implementation of a new a minimum target for the water tap fees at $168,000 <br />based on the prior 4 year average. The new minimum has been incorporated into <br />the existing rate model and will be used that going forward. Staff will also review <br />and update periodically to make sure the minimum target remains appropriate. <br />Mr. Peterson went on to say that this adjustment improves the accuracy of the <br />model and provides for better model results. Mr. Kowar confirmed that staff will <br />review annually to make sure the model stays true. Mayor Pro Tern Maloney <br />said he really appreciates the work staff has put into this and thanked them. He <br />went on to ask for clarification on how future development projects could impact <br />this analysis. Mr. Peterson said that a change in vacant properties to a <br />development area would impact these minimum requirements. As a comparison, <br />the last several years the City collected between $1.5 million to $3 million in water <br />tap fees driven mostly by new developments. It is conceivable we would see <br />similar revenues if new development areas became active making the minimum <br />of $168,000 no longer relevant as projections would be updated with the new <br />potential. Mr. Kowar stated the importance of continuing to review this process <br />