CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the Water Utilities Capital Improvement Program presentation
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Naperville Water Utilities provide high quality, reliable, and critical services to the community. Serving more than 43,500 customers with a population over 145,000, the infrastructure associated with these services is vast, complex, and needs to be carefully coordinated across several City departments. Adequate annual capital investment is necessary to ensure these services are maintained and public health is not compromised.
In 2020, the City engaged consultants to assist in the preparation of updated capital asset evaluations for the water distribution and supply systems as well as the wastewater treatment facility at Springbrook. These asset evaluations have identified the need for additional investment in the infrastructure associated with these services.
DISCUSSION:
Staff will make several presentations to the City Council to provide a clear picture of the capital improvement needs identified for the Water Utilities in the asset evaluations.
The first presentation will cover the capital program for the Wastewater Collection & Pumping System. This section was chosen first as it is the most mature, reflective of data-driven decision making, and effective in the achievement of desired service levels. It is a roadmap for success for the other operational sections.
In the following months, staff will give presentations on the other two major capital components (Water Distribution & Supply and Wastewater Treatment). All three presentations are also being shared at the Public Utilities Advisory Board meetings.
The discussions and outcome of this process will have a significant impact on upcoming utility planning and decision-making. Specifically, the City has hired a consultant to prepare a new rate study as the current study ends in 2021. Every rate study involves a complex set of assumptions that need to be reviewed to ensure enough revenues for operations along with the achievement of important policy goals. One of the major assumptions to be reviewed is the necessary level of capital investment. The City Council will be asked to give direction on capital spending levels for the future rate model.
FISCAL IMPACT:
N/A