Departments of Finance & Utilities
Reference: Utility Rates & Construction GMP Presentation
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Director of Finance
Scott Olsen, Director of Utilities
Date Prepared: January 23, 2024
PURPOSE
To provide Council with information on the Water and Wastewater funds, including project updates, 2024-2025 proposed rate and fee changes, and on the next phase of the Water Treatment Plant which includes a contract amendment for construction based on 100% design.
PART I - PROJECT UPDATES
BACKGROUND
Water Fund
Since 2021, the water fund has completed approximately $77.7 million in projects, including capital improvements, capacity expansions, and repairs and maintenance to the existing system. Projects completed include:
- South Adams Interconnect pump station which allowed for the purchase of supplemental treated water from the South Adams County Water & Sanitation District;
- Completion of the 2MG Elevated Water Storage Tank;
- Design of the Lutz Reservoir, which will allow for storage of non-potable water;
- Design for the replacement of more than 20,000 linear feet of water lines in future years;
- Design for the installation of more than 1,000 linear feet of new water lines in future years;
- Construction of more than 1,000 linear feet of new water lines throughout the City.
- Acquisition of water rights;
- Design and construction of portions of the new Water Treatment Plant, including foundation work and ordering of long lead items (materials and equipment that require extended time to receive);
Wastewater Fund
In 2023, the City restructured the buy in agreement with Metro Water Recovery by using a combination of reserve funding and financing to pay off the Metro buy in agreement at 2023 rates. This action saved the City and its wastewater customers an estimated $68M over 42 years.
This restructuring and payoff occurred in June 2023 and flo...
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