minpws-fin 07-19-21 - Laserfiche WebLink

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Lou McMahon, the city's lead attorney/consultant on the IWWIP, demonstrated how the use of ARPA funds could serve as an enduring benefit for water/sewer customers over the next decade, with savings going to all classes of users. Mr. McMahon projected just under $52 million in total community savings. The sewer investments would allow further borrowing capacity for the city in the future, which could prove to be valuable if the country faces a period of serious inflation in the future. City Planner Milius reviewed how Lakewood's ERU compares with other communities and public perception of it. She also provided details on how stormwater/tree planting credit programs work and the rates of public participation in these programs. Typically 1-5% of the public participates in these programs, resulting in a great amount of work for low participation. It was also noted that the implementation of green infrastructure to keep water out of the sewer system must be done very carefully, as it can cause basement flooding and other negative impacts on homeowners if done incorrectly. It was estimated that 75% of the homes in Lakewood have at least 1 downspout tied into their sanitary sewers. Analysis of a tree canopy credit program was shared, which showed the need for high private homeowner participation with little financial incentive to do so. Co-Chair Rader made a motion, seconded by Co-Chair Bullock to recommend Ordinance 24- 2021. All in favor. Motion passed. RESOLUTION 2021-33 -A RESOLUTION to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force after the earliest period allowed by law, authorizing the Mayor and/or Director of Finance or Director of Law to allocate Twenty-Five Million Dollars ($25,000,000) to effectuate the modernization and construction of the City of Lakewood's sewer system with such funds allocated from the American Rescue Plan ("ARP") and Coronavirus State and Local Fiscal Recovery Funds ("CSLFRF"). (Referred to Finance Committee 6/21/21) Councilmember Kepple inquired how the proposed investments would get Lakewood closer to a 98% capture and treat rate for its wet weather. Mr. McMahon noted how the use of$25 million in ARPA money would help fund projects that would get the city up to 88%-95% of wet weather controlled, noting it has not received a specific mandate on the percentage it must achieve. The remaining projects needed to get the city up to 98% look to be more expensive. The city is looking to approach the IWWIP in 5-year increments with $25 million expenditures. Mr. McMahon reviewed details of the larger projects that would help Lakewood achieve EPA compliance with its IWWIP. These projects would help prevent contamination of the Rocky River and one of the biggest overflows on the lake. Councilmembers discussed making larger expenditures toward the sewer infrastructure, but there would be significant administrative hurdles to managing multiple large scale infrastructure projects. Discussion ensued regarding the need for work on private property due to the high frequency of integrated stormwater and sewer lines on private property in the city. The administration stated it