Public Works warns of rising costs to maintain $4 billion in city assets, asks for planning tools and equipment

Public Works Director Chris Gaub told the City Commission on April 20 that the department operates with 135 staff and spends over $70 million annually to maintain roughly $4 billion in city assets. He said regulatory compliance, rising construction material costs and power expenses are elevating operating pressures and emphasized the need for better planning tools.

"The department has 135 people and spends over $70 million annually to sustain a $4 billion asset base," Gaub said, describing major compliance initiatives such as lead service line replacement and recent EPA and DEQ inspections. He noted that projected increases in construction and equipment costs, specialized staffing needs and cybersecurity protections for critical infrastructure are constant concerns.

Gaub requested development of a rate model effective January 1 and an asset-management system to integrate utility planning with street projects, allowing coordinated scheduling and avoiding repeated excavations and inefficiencies. He also described operational priorities including the purchase of two trucks, dumpsters and a trailer to develop front-load service capability and reduce service risk caused by reliance on aging equipment.

The presentation outlined several cost drivers: landfill fees exceeding $1 million, a Veolia solid-waste contract around $3.9 million, water-related expenses of ~$670,000, and power costs for the water plant near $1.3 million. Commissioners asked clarifying questions about how internal service charges are allocated and about keeping streets in "fair" condition ahead of the FY28 construction season.

Gaub said some projects use State Revolving Fund loans for capital work and that the department would bring back more detailed rate and project modeling as the budget process continues. The session included no formal vote; staff asked for direction and data to support future rate and capital decisions.