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MOTION SECONDED AND CARRIED: Moved by Fenwick, seconded by O'Malley and passed by the following vote to approve payment of the final billing from John Goldman Architects in the amount of $27,749.37. Funds for this payment were appropriated in the fiscal year 2002-2003 budget. AYES: Mayor Cheng, Mayor Pro Tem O'Malley, Councilmember Fenwick and Councilmember Warshawsky NOES: Councilmember Kerr ABSENT: None ABSTAIN: None Mayor Cheng noted that it would be helpful to know how much information from the reports performed for the previous project could be used. City Manager Cassingham explained that Peter Duxbury would be providing this information to the New Town Hall Committee at their next meeting. 5.3 Update on Sewer Master Plan—HDR Engineering City Engineer Mintze Cheng introduced this item to Council. She explained that in August, 2002, Council had approved an agreement with HDR Engineering for the preparation of the Sanitary Sewer Master Plan that will serve as the strategic planning guide for upgrading, improving and expansion of the Town's sanitary sewer infrastructure. Cheng noted that the preparation of a sanitary sewer master plan consists of three main tasks: 1) to collect recorded system information; 2) conduct flow monitoring and project the needs of the existing sewer infrastructure; and 3) to develop a capital improvement plan that will enable the Town to provide reliable and cost-effective sewer services. Cheng introduced Christina Hartinger and John Larson, HDR Engineering, to present an overview of their preliminary findings. Larson and Hartinger addressed Council. Since the project started in August 2002, Tasks 1 and 2 have been completed on time and within budget and Task 3 is currently in progress. Based on the work completed to date, the major findings were being presented in a technical memorandum that Council had before them. HDR proceeded with a power point presentation of key factors in their work to date, notably; there are 51 miles of sewers in Los Altos Hills with 24 miles discharging to the City of Palo Alto and 27 miles discharging to the City of Los Altos; approximately 50% of the Town's residences are not connected to sewers and rely on septic systems; HDR has video inspected 6.5 miles of sewer and a majority are in satisfactory condition; periodic maintenance of our sewer system is recommended; $4-7 million will be needed to meet future facility needs and HDR anticipates that Town will require increased effort for permit compliance for NPDES regulatory requirements. In response to Council's questions regarding funding for sewer projects, Cheng explained that at the conclusion of Fiscal Year 2003-2004 the Sewer Enterprise Fund will have approximately $2 million in reserve. Cheng added that the final report from HDR will be • 5 City Council Meeting Minutes August 7,2003