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<br />~ <br />~HlLLS <br /> <br />. <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />October 20, 2004 <br /> <br />Agenda Item 3.D <br /> <br />TO: Honorable Mayor and City Council '""'\ S <br /> <br />FROM: Murtuza Siddiqui, Finance Director/Treasurer <br /> <br />SUBJECT: CIP/Pavement Management 2005 - 2009 <br /> <br />BACKGROUND: <br /> <br />At the July 19, 2004, September 20, 2004, and October 18, 2004 Work Session meetings, the <br />Council discussed the proposed CIP/Pavement Management projects for 2005 - 2009. A number <br />of issues were discussed at these meetings, including the merits of specific projects. At these . <br />meetings, staff also provided a cash flow analysis of under taking these projects and the impact it <br />has on various city funds. Two action items/outcomes resulted from the July's and September's <br />meetings. <br /> <br />One of the outcomes of these meetings was to conduct a Utility Rates Study. The city proceeded <br />to hire Abdo, Eick, and Meyers (consultant) to conduct the study. The study took a multi <br />pronged approach. First it reviewed the city's rate structure and compared it with a number of <br />surrounding communities of comparable size. The next approach was to determine the future <br />cash flow requirements in order to have adequate funds to support the undertaking of the <br />proposed projects, as well as maintaining a desirable fund balance in the enterprise (utility) <br />funds. A draft Utility Rate Study document was presented at the September 20,2004 Work <br />Session. The Council was not comfortable with the proposed rate structure and directed staff and <br />the consultant to revise the rate structure, using the most current CIP data. A final version of the <br />Utility Rate Study was presented at the October 18th Work Session. This version incorporated <br />the direction provided by the Council with regards to the CIP, as well as the suggested rate <br />changes. <br /> <br />The second outcome of these meetings was to review the feasibility of the future projects based <br />on the direction provided by the Council. The City staff has worked with the Greg Brown, City <br />Engineer (URS) to layout a proposed five year CIP plan, while taking into account the direction <br />provided by the Council. <br /> <br />. <br />