Weekly Register-Call/ Gilpin County News

Water system condition, 2009 audit report

Central City Council met the evening of July 20, 2010. They began at 6 p.m. with a work session to discuss potential incentives for new casinos; plans for hosting the Colorado Municipal League (CML), District 3 fall meeting; an update on the Russell Collection; bicycle racks; and the Comprehensive Plan. An hour later they began their business meeting. In addition to routine City business, Mayor Ron Slinger and Aldermen Ron Engels, Bob Giancola, Tom Reilly and Bob Spain received the 2009 audit report; listened to a developer’s presentation on the golf course community planned for the area between Central and Nevadaville; heard from their public relations consultant; and discovered how much work and expense will be needed to improve the City’s water system.

Democrats to Fundraise

Acting as the Liquor License Authority, the Councilmen approved a special event permit for the Gilpin County Democrats to hold a fundraiser at the Gilpin County Art Gallery on Eureka Street, August 8^th from 2 p.m. to 9 p.m.

Cable Television

Granting a franchise for cable television to CAP Cable LLC, doing business as USA Communications, was postponed to the August 3^rd meeting so that high speed internet and other services, promised by the USA representative at a prior meeting, can be written into the agreement.

Big T Parking Lot Project

Quality Paving, Incorporated was selected from the three companies bidding to do the work at the Big T parking lot. For $200,833 Quality Paving will reconfigure and resurface the lot plus the streetscape improvements to tie it in with the Main Street project. A contingency allowance of $20,000 and a not-to-exceed $220,000 clause were added by the Aldermen. Tentative project start date is August 1. Once started, Quality Paving must complete the project within 60 days or face daily penalties of $500. The project is being funded from the Historic Preservation Fund ($150,000) and the Public Property Trust ($71,448).

2009 Audit Report

Sandra Norikane and Michael Jenkins of McMahan & Associates, the City’s auditing firm, gave a clean and unqualified opinion of the 2009 financial statements. Norikane expressed concerns about the Water Fund which saw a decrease of $401,629. $316,208 of that was payment back to the General Fund, leaving the additional decrease at $85,421. Finance Manager Shannon Flowers said there had been additional expenditures from the Water Fund in 2009, for repairs of several water line breaks and erosion controls. Water Fund rates should cover current costs and contribute to a reserve for future needs, said the auditor. As to other funds, the auditors said the City’s financial health is better, but the City needs to rebuild reserves. They made recommendations regarding the bond account, credit card expenditure/ reimbursement documentation, the Promise Program, and Council’s monitoring of the bills. The full audit can be viewed at City Hall.

Promise Program Guidelines

The Aldermen approved the revised guidelines for the City’s “Promise” program which pays up to $20,000 for college or other secondary education for the City’s youth; up to $5,000 for adult education; and up to $5,000 for assistance to the City’s senior citizens. The requirements for each facet of the program differ. Applications are available at City Hall.

Promos and Public Relations

Meghan Dougherty (Dougherty Relations) provided an update on past and future City events. Dougherty said online banner ads with Westword and KUSA Metromix, along with ads in the Denver Post’s insert, “The Deal,” runs $1,500-$1,600 per event and is working. The July 3^rd Bike Day, recommended by the City Manager and Business Improvement District president, had been “uneventful as expected,” said Dougherty. Mayor Slinger responded the event had likely cost Central its maintenance agreement with Black Hawk, so differed with the “uneventful” descriptor. Dougherty moved on to outline upcoming events and working with casinos to host one day events for this year with the possibility of growing the events to two days in the future.

Marrone Ranch (aka Gold Mountain) Development

Liquor store, drug store, convenience store, boutiques, movie theater, bowling alley, spa, tennis courts, virtual golf, several swimming pools (at least one indoors), bunny ski slope, cross country ski and hiking trails, mini-golf, ice skating, tube slide, hot air balloon launch, helicopter pad, conference center, 111 residential golf-front townhomes, 26 villas, 78 patio homes, 80 terrace homes, 150 single family zero lot-line homes, 100 resort condominiums, 220 apartments and the golf course, of course – all on 330 acres between Central City and Nevadaville with a 3.5 mile gondola line for residents and guests who want to avoid the drive down to casinos. Projected cost of the Hilton Hotel associated project is $200 million (the gondola alone is $38 million).

Developer Richard Friedman told the Council the project, named “Gold Mountain,” will be the second full-blown Hilton Resort and Spa complex in Colorado and the culmination of more than eleven years of planning.  Friedman said there is an off-shore lender they’ve been working with for the past four months and he expects a final commitment in two months with another month after that to finalize funding. Then he will be back to start the process with the City to get approval of the Planned Unit Development (PUD). If all goes well, Friedman said they plan to break ground next spring. “We’re excited to see you get the funding,” avid golfer Mayor Slinger, enthused, “This will be fantastic!”

Water System Evaluation

Wayne Ramey of Ramey Environmental Compliance, Incorporated told the Aldermen it will take $321,200 to replace, repair and computerize the City’s raw water collection, pumping and storage system, the water treatment plant, and the treated water distribution system. Ramey had already replaced the small gravel used in the system filters. It was the original media installed 19 years ago, he said, and should be replaced every five to ten years. That greatly enhanced the performance of the water facility, he said. He described all of the components of the system and the work needed at each, and then prioritized tasks. The completed filter media replacement was first priority and cost $9,000. Number two on the list is computerizing the raw water on-line turbidimeter ($5,000), followed by evaluating the pumps ($1,530) and repairing the pumps ($25,000). These last three priorities, at a total cost of $31,530 should be done in the next 60 days, Ramey advised.

Ramey suggested several grant opportunities that he’ll investigate to help with future costs. He recommended the entire water system, including water lines, be repaired, replaced as needed, computerized and updated. The projected budget needed for all of that is $6,250,000. Ramey said the City had “come close” but had never failed to meet water quality standards. He cautioned the Council that August is the month when algae growth takes off and to watch for “bloom” in reservoirs. Berthoud’s water supply has recently been in the news with a similar problem. Ramey’s report states he doesn’t like to be considered an alarmist, however; “the type and size of some of these issues can and will overwhelm the City’s water treatment plant and lead to an uncomfortable situation with customers.” He noted the present water rate structure is “not conducive to protecting and preserving” the water system. Ramey, who had listened to the Gold Mountain presentation, said the planned development scares him because of the impact it will have on Central’s source water. The Aldermen will consider how best to proceed.

Public Comment

Two residents of Prospector’s Run commented on the City’s water system. One commended the Council for hiring Ramey and the plans to improve the water system. The other expressed dissatisfaction that repeated past reports have said everything is fine. He chided the Council for voting in raises and bonuses to employees who “aren’t doing their jobs.”

Executive Session

Following the public meeting, the Council met with City Attorney Linda Michow to discuss City Manager contract issues and the city management transition.

Heads Up

Central City’s Council meets next on August 3, 2010.