Utility Committee Agenda and Packet 2018 11 09

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City Council Utility Committee Meeting Minutes Friday, June 22, 2018 Page 6 of 7 Mrs. Balser reiterated that based on the discussion, the CIP sheets were sufficient for the July 12th Council Budget meeting and the requested supplemental information would be provide before this date. Mr. Kowar went on to say that he was pleased with this rate process, appreciated the feedback and noted that the rate process was essentially complete barring changes from July 12th meeting. Mr. Peterson said the Financial Model is up to date as possible and will have a minor adjustment as the operations budgets are finalized. IX. Water Supply Update Mr. Peterson provided an update on the City's water supply, highlighting that the Water Supply Index has increased indicating an improvement in the City's supply and summer drought restrictions are not recommended. Marshall Lake storage levels are starting to lower which allows for the backfill of the reservoir with the running of the Baseline Exchange. In addition, Northern has started pumping Windy Gap water with the last pumping operation about 6 years ago. In general, water supply storages are within typical ranges and no problems are anticipated for the reminder of 2018. Windy Gap Mr. Peterson explained the recent activities of the Windy Gap Firming Project. One of the items noted at the last meeting was the results of the geotechnical analysis which indicate that the soil characteristics under the dam abutment are insufficient. The projected remedy is to over excavate this area and replace with select fill ensuring a better base. This additional work is estimated to add $4 to $5 million to the total project cost. Water Rights Decree and Case Mr. Peterson said the water rights decree is still progressing. In regards to the federal lawsuit, briefings are scheduled for October. As result it is more likely that project financing will be delayed until early 2019. Mrs. Balser asked for schedule for updating Council. Mr. Peterson stated the pervious schedule had the Final costs and recommendation for January. The schedule will be updated and presented at the fall Utility Committee in September. Mr. Peterson went on to explain the case for timing purposes. With the pending delay likely, an additional interim payment to cover project costs is expected for 2019 and anticipated to be within range of the current budget. Financial Review Councilmember Stolzmann asked how the City was on our tap fees. Mr. Peterson stated revenues from tap fees are within a reasonable range of projections and will continue to be monitored throughout the year. Councilmember Stolzmann sought verification that the user fee line item was lagging as a result of corresponding demand. Mr. Peterson confirmed that this statement was correct and the summer charges were not yet included in the financial statement. Mr. Peterson highlighted that the current CIPs are mostly under construction and a large rollovers should not be expected for 2019. 8