Mayor Pizzillo called the Work Session to order at 5:00 p.m.

Barbara Chappell, Water Services Director, presented the proposed Water Resource Allocation Policy, outlining its purpose and scope, with emphasis on the city's planning areas. Ms. Chappell explained how water allocations will be established for both developed and undeveloped parcels and introduced a GIS tracking tool that enables city staff to view water allocations by property. She highlighted large water users and discussed potential strategies, such as utilizing alternative properties or water resources. She added that the proposed policy includes guidance on annexations, zoning and rezoning actions, and discouraging self-service properties within the city’s service area, as well as establishing water service agreements with customers.

Council expressed support for the proposed policy, highlighting its alignment with the Strategic Plan and the value of establishing a clear decision-making structure. Council also emphasized the importance of flexibility, particularly in rezoning situations, and raised questions about market rates, obligations to high water users, and whether similar policies exist in other cities. Council supported the GIS mapping tool, and also recommended strengthening the language around self-service areas, addressing illegal well drilling, and placing an emphasis on water conservation.

In response to Council inquiry, Ms. Chappell explained that rezoning a property will not change its allocation of water; the developer will need to purchase additional water to service the site for its intended use. She added that the proposed policy is guiding document for staff to reference when discussing future developments.

Jared Askelson, Finance Director, presented an overview of the proposed updates to the city's procurement code, including current processes and governing guidelines. He highlighted key updates which included process clarification and updated expenditure authority and limits. He introduced Kevin Custer, Deputy Finance Director, to discuss the procurement process and Job-Order-Contracting (JOC) thresholds. 

Mr. Custer outlined recommended changes to the formal procurement threshold, proposing an increase from $50,000 to $100,000. He also addressed the JOC process, noting that while state statute sets a $1 million limit, staff recommends increasing the city’s maximum job order limit to $5 million, with any further increases requiring Council approval.

Mr. Askelson also discussed the establishment of expenditure authority through the annual budget process, including authority for purchases of $500,000 or more. He added that additional updates included clarifying language around surplus property disposition to ensure alignment with other sections of the city code.

Council expressed support for the proposed procurement code updates, recognizing the need to increase thresholds and streamline processes. Council discussed the importance of internal policies, controls and oversight, and expressed some concerns about the proposed increase of the Job-Order-Contracting (JOC) limit.

In response to Council inquiry, he explained that the proposed Job-Order-Contract (JOC) change would allow budgeted projects ranging from $1 million to $5 million to be delivered through a JOC, providing an additional procurement tool for project delivery.