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Advisory committee urges rate study to consider redistributing $12.2M Substation 4 cost
Summary
Boulder City's utilities advisory committee recommended that the rate study evaluate spreading the estimated $12.2 million Substation 4 rebuild over 2028'031 and examine partial design funding in 2027 to avoid steep rate spikes; the motion passed unanimously.
Carol Lelis, the city's CIP coordinator, reviewed the utilities five-year capital improvement plan for fiscal years 2027'031, saying the plan "includes 20 projects for a combined cost of 50.7 million," with seven projects totaling $6.8 million in fiscal 2027. The plan lists electric, water and wastewater projects and is intended as a living document that staff revisit annually.
Committee discussion focused on timing for a multi-year Substation 4 rebuild that staff estimated at roughly $12.2 million for 2029'031. Members said accelerating or redistributing the work would smooth the conversion from 4 kV to 12 kV and reduce the risk of a large rate increase in outer years. Committee members noted procurement lead times for transformers and breakers and that cash-flow limits might constrain moving work earlier.
After discussion, a member moved that the committee advise council and staff to "distribute the total cost for Substation 4 rebuild over a four-year period of 2028 through 2031 and also consider a funding partial design during 2027." Another member seconded; the motion passed unanimously.
Staff said the rate study now under procurement will evaluate revenue requirements and cash-flow implications that would be needed to implement any schedule adjustments. Members asked that the rate-study scope explicitly consider spreading Substation 4 costs across additional years where feasible so rates can be levelized and large year-over-year jumps avoided.
The committee did not bind council or staff to a construction schedule; instead the motion advises that the rate study model scenarios that include redistributed cash flow and, where feasible, partial design work in 2027. The committee will monitor the rate-study scoping and results through its liaison and via future agenda updates.
