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20 - AIRPORT UTILITIES STATUS UPDATEItem No. 20 memorandum TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: AIRPORT UTILITIES STATUS UPDATE DATE: May 29, 2015 BACKGROUND: In February 2014 the city council approved a professional services agreement with Neel- Schaffer in the amount of $797,085 to study, design, and manage the construction of new water and sewer utilities to the airport and surrounding residential properties. This was a somewhat unusual engineering contract in that the scope included a preliminary study to examine actual and projected water and sewer flow. These flows are important in determining which area customers can and cannot be served, the need for and location of one or more sewer lift stations, possible connections to and /or purchases from other utility providers, the efficacy of continuing an improved septic system, line sizing, etc. This project also necessarily involves easement acquisitions. Because of the uniqueness of the project, we broke it into three phases each for water and sewer. STATUS OF ISSUE: Overall layout and sizing has been completed, and we are proceeding with easement creation and acquisition. Phase 1 water, which we plan to bid this calendar year, is the portion of the water main from Dawn Drive south along the loop to just southeast of the Optimist Club ball fields and the veterinary clinic on 271 S. The remainder of the line is impractical to build at this time due to low flows. On the sewer part of the project, Phase 1 would simply be an upgrade to septic systems at the actual airport; current flows will not allow a sewer main to function properly or safely. Another option might be to reach an agreement with the City of Reno to service this area after 2019. In addition to extensions towards the airport, we have identified opportunities to provide wastewater service to the Margraves Addition (Paradise Estates). This area has been in the city for many years and although they do have city water, they do not have city sewer service. By providing service into this area, we will also be able to take three existing sewer lift stations out of service, significantly improving our efficiency over time. We plan for this construction to begin in 2016. BUDGET: Funds are available from 2013 bond sale proceeds. RECOMMENDATION: Discussion only.