Departments of Finance and Utilities
Reference: Water Treatment Plant Ordinances and Resolutions
To: Mayor Gregory Mills and Members of City Council
Through: Michael Martinez, City Manager
Prepared By: Catrina Asher, Finance Director
Marc Johns, Interim Utilities Director
Date Prepared: June 14, 2022
PURPOSE
To provide City Council with recommendations on actions necessary for the construction of an expanded Water Treatment Plant. This staff report includes 1) a water rate ordinance; 2) two contract resolutions; and 3) one resolution approving reimbursement of costs from bond proceeds.
STRATEGIC FOCUS AREAS
Financially Responsible
Supportive, Sustainable Infrastructure
WATER TREATMENT PLANT BACKGROUND
On January 25, 2022, Staff presented City Council with an update on the water needs of the City and possible solutions to address summer peak demand as well as continued growth in the City. At this meeting, Staff presented options for a Water Treatment Plant project which included two proposals with similar costs but different impacts on capacity. Through that discussion, it was determined that Staff would move forward with the Water Treatment Plant option summarized below:
Original Capacity 10 MGD
Capacity Increase: 10 MGD
New Capacity 20 MGD
Growth Outlook: 25 Years
Cost: $155 million
Processing Update: Discontinuation of RO process which removes brine discharge
PROJECT MILESTONES
The project is moving forward with the following major milestones ahead.
Groundbreaking: July 26, 2022
Design Completion: September 2023
Project Completion: July 2025
ITEM #1 - WATER RATE ORDINANCE
The proposed ordinance includes a July 1, 2022 rate reset, a January 2023 water treatment plant fee, and proposed enhancements to the water assistance program. Each of these items are discussed here separately.
WATER RATE RESET
BACKGROUND
In 2018 and 2019, City Council and Staff identified concerns regarding the rates charged to customers and the growing...
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