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55 Regular Meeting June 10, 1996 - Page 5 discharge permit. Mr. Gilley stated the City staff has been working towards a design for the wastewater treatment plant upgrade and this amendment would extend the date for completion of the project by six months. Mr. Ray Longoria, Freese & Nichols, stated there were two dates to keep in mind, October 1996 -in which time the award contract to start construction of liquid treatment plant expansion as well as the enhancements would begin, and the second date would be the substantial completion date, which means all the processing units for the plant to operate were in order. He stated we were slightly past the 60% completion phase, which means the cost estimate from contractors was compressed. Due to the compressed construction schedule, bids are projected to be from $500,000 to $600,000 higher than if an additional three to six months were provided for construction. Mr. Longoria stated the beginning construction would be January 1997 and the completion would be May 1998 as opposed to December 1997. Mr. Guerra asked if the City set its own compressed schedule. Mr. Longoria stated that was incorrect, that the compressed schedule was set by the discharge permit. Mr. Guerra asked if anyone knew there was a possibility the City would have to ask for an extension. Mr. Longoria explained the two ? reasons for requesting the extension were greater cost and multiple construction contracts. Mr. Hart asked about the public hearing process. Mr. Gilley stated once the Permit was issued, ? TNRCC could have given the full three years for construction, however they must have included that process in their three year program. Discussion ensued. Mr. Guerra questioned the financial constraint the City was having to face. Mr. Gilley stated it was a S 10 million cap on the ability to issue additional debt, which is a requirement of banks that bid on our bonds= He stated we could exceed the S 10 million cap, however we need to be aware of what that could do to our bond cost. Mr. Guerra asked if it was an option to borrow money from the electric utility fund. Mr. Gilley stated that could be a possible option. Ms. Hughson questioned the proposed completion date as being September 1997. Mr. Longoria stated that was correct, they had suggested the City allow them some breathing room for completion. Ms. Hughson stated she wanted to make sure the two issues of compressed and non-compressed time frame for the $500,000 savings and the issue of how soon the construction could be bid did not get confused as one. Discussion ensued. The Council came to the consensus to move forward with the application amendment to extend the contract for six months. In addition, the Council directed staff to research the S 10 million cap issue or alternate funding, and determine the cost estimate for the application. The Council requested Mr. Gilley bring Council the information and formal approval to proceed with the understanding they could pull the application at any time, based on costs or type of permit opposition. The Council also requested the City continue to design the treatment plant in case we need to move forward with the compressed schedule. Mayor Moore introduced for discussion funding for a low-flow toilet rebate program. -Mr. Gilley stated ninety-nine residents received funding under the rebate program last year and the City's portion was 55,000.00, however the City would solely fund the program this year and the staff recommends beginning the program with the 55,000.00 and be brought to Council to be taken from contingency funds. Mayor Moore suggested asking bankers, plumbers, etc., to assist with the program for senior citizens. Mr. Guerra asked if the consumers could be reimbursed for the actual cost of a plain white toilet that is water efficient. Mr. Gilley stated that could be an option. Diane Wassenich stated the cost savings on your water bill for a family of four would pay for the toilet and the installation if you got a rebate within six months. Mr. Hernandez suggested an incentive of 5100 rebate and the Council agreed to cap it at 5100 allowing for only one toilet per household. Mayor Moore introduced the City Manager's Report. Mr. Gilley stated the budget workshops had been tentatively set for July 22-23, 1996, but he felt they should not coincide with a regular scheduled meeting. The Council agreed to hold the budget workshops July 15-16, 1996. Mayor Moore introduced the City Attorney's Report. Mr. Taylor had no report at this meeting. Mayor Moore introduced the City Council's Report. The Council had no report at this meeting. Mayor Moore introduced an Executive Session pursuant to the Government Code, Section 551.071, to discuss pending litigation (Public Utility Commission transmission facilities filing, Rocket Water Company CCM Amendment), contemplated litigation (Edwards Aquifer Regulation), and matters where the City Attorney's ethical duty clearly conflicts with Government