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Parker council approves engineering agreement for second water tower, discusses funding options
Summary
Council approved an engineering services agreement for a second elevated water storage tank and discussed funding sources and timing, but did not authorize construction spending at the July 1 meeting.
The Parker City Council on July 1 approved an engineering services agreement to design a second elevated water storage tank and authorized the mayor to execute the contract with the selected engineering firm.
Council approved a resolution to engage Burkhoff Hendrick Carter LLP (as recorded in the meeting packet) to provide design, bidding and construction administration services for the elevated storage tank project. Mayor Pro Tem Betty Pilgrim made the motion to approve the resolution; Council Member Sharp seconded and the resolution carried on the council floor.
Council members and staff spent substantial time discussing how the project would be funded if the tank moves from design to construction. Grant Savage, the city’s director of finance and human resources, told the council that as of the date in the packet the city had roughly $4.4 million in its water/wastewater fund, about $2.6 million in the utility impact fee fund and roughly $800,000 in the utility construction fund, for a combined total of about $8 million available for water capital projects. Savage said staff’s current capital plan shows planned projects totaling approximately $9.6 million, leaving a near-term shortfall of roughly $1.7 million that would be covered over time by annual water fund increases and planned rate adjustments.
Savage told council the utility is projecting roughly $700,000 of additional fund balance each year and that a planned 7% water-rate increase scheduled for October 2025 was intended to help cash-fund capital projects rather than issue debt.
Craig, representing the engineering team, explained the agreement’s billing structure: design, bidding and construction administration are lump-sum items while some tasks (survey, geotechnical work) are billed as needed but the contract contains an overall not-to-exceed amount for the full scope. Craig stated, “the whole amount will not exceed that overall that we gave you.” Council members asked for additional funding options to be presented before the city commits to construction; staff said the engineering contract would produce the firm cost estimate needed to trigger that discussion.
The council’s vote at the meeting authorized only the engineering agreement and the mayor’s execution of that contract; councilors did not yet authorize construction spending on the tank.
