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HomeMy WebLinkAbout2003-07-08 WSB MINUTES"\O • • • • WATER AND SEWER BOARD MINUTES JULY 8, 2003 The meeting was called to order at 5:12 p .m . Members present: Members absent: Also present: Wolosyn, Moore, Higday, Cassidy, Bradshaw, Habenicht Clark, Otis , Kasson Stewart Fonda, Director of Utilities 1. MINUTES OF THE JUNE 10, 2003 MEETING. The Englewood Water and Sewer Board approved the minutes from the June 10, 2003 meeting. Ms . Wolosyn moved; Mr. Habenicht seconded: Ayes: Nays: Members absent: Motion carried . To approve the Minutes from the June 10, 2003 Englewood Water and Sewer Board Meeting. Wolosyn, Moore, Higday, Cassidy, Bradshaw, Habenicht None Clark, Otis , Kasson • • • 2. ENGLEWOOD'S WATERING RESTRICTIONS. Mr. Fonda reviewed the existing lawn watering policy for Englewood residents. The Utilities Department will continue to recommend residents voluntarily follow Denver's lawn watering schedule, which has been increased to three times per week. 3. ILLEGAL DISCHARGE INCIDENT-LONDON MOTEL AT 3325 S. SANTA FEDR. The Board received a letter dated June 26, 2003 from the State of Colorado regarding an incident of an untreated sewage discharge from a lift station located on the property of the London Motel, 3325 S. Santa Fe Dr. The lift station ceased operation and approximately 500 to 600 gallons of raw sewage was discharged on the ground and flowed onto the adjacent property, the Cinderella Drive-In in Sheridan, Colorado. The owners, Mr. Gale Medlin and Ms. Carol Petrash, are required to clean up the site of the discharge, including removal of any remaining raw sewage and soils contaminated by the raw sewage. Clean fill is to be placed and compacted where the contaminated soils are removed. All excavation and fill is to be completed to the satisfaction of the City of Englewood, the Cinderella Drive-In and the City of Sheridan. Enforcement action by the Colorado Department of Public Health and Environment can include penalties of up to $10,000 per day. 4. MOSQUITO CONTROL. The Board received a letter dated June 25, 2003 from Tri-County Health Department discussing the potential for stormwater quality facilities to breed mosquitoes that may carry the West Nile Virus. Stu noted measures are already being taken to eliminate unnecessary standing areas of water. 5. SEWER AND WATER RATE INCREASE. Mr. Fonda reviewed the background for the proposed water and sewer rate increases. City Council also received the following information: • • • The Littleton/Englewood Wastewater Treatment Plant will require a major expansion of the existing facilities and construction of additional treatment processes. The proposed rate increase will pay for increased costs resulting from these requirements. The new construction is necessary to accommodate recent denitrification requirements imposed by the State Health Department. Additionally, the South Platte River has recently been reclassified as a Recreational Class I river, which requires increased pathogen destruction. The plant expansion portion of the project is the result of rapid growth in the area served by the plant. Growth has been nearly double the projections used in planning the last expansion. The project is currently being designed by Brown & Caldwell Consulting Engineers. It is estimated that the total cost of the project will be $110 million, of which Englewood will be responsible for 50%. Design should be completed by the first quarter of 2004, and at that time bids should be received for construction. Construction is expected to take about three years to complete. Administration fees paid by the Littleton/Englewood Wastewater Treatment Plant were reviewed by a consultant and it was determined that an increase was appropriate. The City of Englewood Finance Department therefore recommends an increase in the existing administration fees. The additional administration fees result in an increase of 14% in 2008 instead of an increase of 10%. In order to finance this construction, the firm of Black & Veatch was retained to analyze financing alternatives. Bond covenants require that the City of Englewood maintain a certain minimum debt ratio. In 2002 Englewood fell below the minimum requirement. The rate increase presented should insure that bond covenants are met through 2008 unless there are unanticipated shortfalls in revenues or unanticipated expenses. The Sewer Fund increases are necessary to fund Englewood's share of the upgrade and expansion of the Bi-City Wastewater Treatment Plant. Sewer rates were raised 20% January 1, 2003 and the last rate increase before that was in 1982. It was determined that a bond issue in the range of $55 to 60 million dollars would need to be issued. It is proposed that this issue be concurrent with the receipt of the bid. Sewer rates will need to be increased to pay the principal and interest on the new bonds. The proposed rate increases would be 15% January 1, 2004, 15% January 1, 2005, 15% January 1, 2006, 15% January 1, 2007 and 14% January 1, 2008 to meet coverage requirements of the bond issue . The proposed water rate increase is deemed necessary to cover increasing expenses due to inflation and capital improvements. Capital items include additional deep wells for a stable water supply in drought conditions, a powdered activated carbon system to improve water quality, City Ditch piping and ditch improvements for providing an • • • improved water supply on a year-round basis and an emergency generator for more frequently occurring power outages. The two 3-million gallon overhead storage tanks located at Clarkson and Belleview are 50 years old and resulting cracks and repairs are indicating these tanks are approaching the end of their projected service life. Major renovations to these tanks will be necessary in the near future. Funds are included to repair these tanks, but not to replace them in the next five years. In addition, major mechanical equipment at the Allen Plant is 20 plus years old and may require replacement due to obsolescence. Administration fees paid by the Utilities Department were reviewed by a consultant and it was determined that an increase was appropriate. The City of Englewood Finance Department therefore recommends an increase in the Utilities' administration fees . The increased administration fees result in an increase of 16% in October 2003 instead of an increase of 8%. In order to finance these capital improvements and the administration fee increase, the firm of Black & Veatch was retained to analyze financing alternatives. It was determined that no additional bonding is required in the Water Fund, but increases are necessary to meet bond coverage requirements and adjust revenues for inflation. It is proposed that a rate increase of 16% be made effective October 1, 2003 and another increase of 6% be made effective on January 1, 2005 . Bond covenants require that the City of Englewood maintain a certain minimum debt ratio. In 2002 Englewood fell below the minimum requirement. The rate increases presented are projected to insure bond covenants are met until 2008 unless there are unexpected revenue shortfalls or unanticipated expenses. Mr. Higday moved; Mr. Habenicht seconded: Ayes: Nays: Members absent: Motion carried . To recommend Council approval of the water and sewer rate increases. W olosyn, Moore, Higday, Cassidy, Bradshaw, Habenicht None Clark, Otis, Kasson • • 6. ALLEN PLANT GENERATOR. Stu discussed purchasing a stand-by generator for the Zone II pump for the Allen Filter Plant. Plant personnel feel that in the event of a power outage, which appears to be occurring with greater frequency, the overhead tank would partially drain, lowering the pressure in Zone II. An adequate generator is estimated at $100,000. The Board agreed to the generator purchase for Zone II 7. KENT VILLAGE. Kent Village is in the process of installing a blow-off valve to flush a dead-end service line. The meeting adjourned at 6:52 p .m . The next Water and Sewer Board meeting will be Tuesday, August 19, 2003 in the Community Development Conference Room. Respectfully submitted, Cathy Burrage Recording Secretary