HomeMy Public PortalAbout2023.12.01 Special Meeting MinutesMINUTES
McCall City Council
Special Meeting
McCall City Hall -- Legion Hall
VIA TEAMS Virtual
December 1, 2023
Call to Order and Roll Call
Work Session
Adjournment
CALL TO ORDER AND ROLL CALL
1
Mayor Giles called the Special meeting of the McCall City Council to order at 9:00 a.m.
Mayor Giles, Council Member Maciaszek, Council Member Nelson, and Council Member
Nielsen all answered roll call. Council Member Thrower was absent.
City staff members present were Linda Stokes, City Treasurer; Sarah Porter, Deputy Clerk; Erin
Greaves, Communications Manager; Nathan Stewart, Public Works Director; Sean Reilly,
Network Administrator; Sabrina Sims, Water Systems Manager; Rachel Santiago-Govier, Permit
Technician; Brian Parker, City Planner; Meredith Todd, Assistant City Planner, Sean Solis, Water
Operator, Levi Duke, Water Systems Operator; Duane, Water Department; Emily, Airport
Manager.
Also, in attendance were Michael Keith, Municipal Advisor from Zion's Bank; John McDevitt,
Bond Council Skinner Fawcett; Nate Weisenburger, AE2S Consultant; Ross Hanson, AE2S
Consultant; Eric Landsberg, Clear Solutions; Greg Loscher, Bowen Collins Consultant and Keith
Larson, Bowen Collins Consultant.
WORK SESSION
AB 23-230 Water Treatment Plant and Water Storage Expansion — Proiect Overview
Discussion and Direction to Staff
Public Works Director Nathan Stewart introduced the consultants and staff in attendance and gave
a brief overview of the project. The McCall Water System's current 5 to10-year capital
improvement plan (CIP) stipulates the need to complete major capacity upgrades to both the
system's water treatment plant (WTP) as well as additional system storage. Specifically, there are
two major project elements:
1. 2 -million -gallon water storage tank
2. Water Treatment Plant (WTP) capacity expansion
Both projects were identified in the Department of Environmental Quality (DEQ) approved 2018
Water Master Plan and need to be implemented in the next 5 years to ensure the City's system
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December 1, 2023 Special Meeting
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maintains DEQ's permit requirements to operate the system. Since 2021, staff has developed a
project consulting team including AE2S (lead project engineer), Clear Solutions (supporting
engineer), and Bowen Collins (water system and rate modeling engineer) to commence conceptual
and preliminary engineering designs. The project consultant team has established the preferred
storage tank location, the necessary filtration and associated WTP expansion components for both
projects. Staff presented the overall project implementation schedule and estimate costs as well as
the projected impact on water rates.
Eric Landsberg, principal engineer with Clear Solutions, presented to the City Council. Mr.
Landberg reviewed the current McCall Water System and noted that the system has a replacement
value of over 200 million dollars. Additionally, the City has a very high rating for fire suppression
capacity and in turn that helps reduce homeowner insurance rates. Mr. Landsberg also gave a
history of the current 2018 water master plan noting that growth and increased water use create
challenges in direct filtration, disinfectant contact time and water system storage.
Nate Weisenburger with AE2S reviewed improvement alternatives for the water system and
storage. Options included adding additional filtration capacity with two additional gravity filters,
submerged membranes, adding additional contact time with increased Clearwell volume, and
adding additional storage volume. Mr. Weisenburger also reviewed additional storage property
options noting coordination with the Nokes Property and developers working towards the Pine
Creek Ranch Development concept.
Council Member Nelson asked about how the new storage and upgrades to the plant would handle
an influx in population if the state 80 land was developed for local housing in the future. Director
Stewart noted that the location of the tank was chosen to use the gravity of the location to save
cost on pumping the water where it needs to go and with the tank size there would not be any
concern about future development in the City. Additionally, Council Member Nelson asked about
long-term operations cost and maintenance for submerged membranes. Mr. Weisenburger noted
that the cost of membrane operation requires additional energy costs as well as time for a more
robust cleaning cycle. Membranes also need to be replaced anywhere from 5 to 10 years depending
on the water quality.
Mr. Weisenburger reviewed filtration capacity expansion needs to add additional filter capacity
and redundancy by putting an addition onto the current plant to mirror the current filter footprint
and allow for 4 total filters as well as electrical upgrades, a roof replacement, and a storage facility.
Director Stewart noted that there is currently zero covered storage for equipment and vehicles
which can hinder emergency response time in the winter. There are also compliance requirements
for some equipment to be stored outside of the treatment facility. Mr. Weisenburger also reviewed
increased Clearwell volume which provides more contact time required by the DEQ as well as the
added benefit of flexibility for cleaning and maintenance of the Clearwell, project cost,
implementation schedule, and capital expense schedule.
Mayor Giles expressed appreciation for the detailed presentation and suggested a 5 -minute break.
The City Council took a 5 -minute break at 9:50 a.m. and returned at 9:55 a.m.
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December 1, 2023 Special Meeting
Kieth Larson and Greg Loscher presented to the City Council regarding the cost and funding of
the water treatment plant upgrades and the additional storage tank construction. Mr. Loscher
reviewed the three different funding options for water system upgrades including adjusting the
timing of projects, bonding and adopting new water rates. The water rates adopted in 2018 and
updated in 2022 have put the City on track and in good shape to have a steady and reliable funding
source overall. The issue at hand is the funding of the two large upcoming projects. There is a lot
of work to be done overall including water line improvements. Short term cash flow is needed for
treatment and storage deficiencies. A revenue bond is needed to ensure short-term cash flow
revenue is not in danger. Selecting the appropriate bond amount is selecting an adequate amount
to fund projects which can be challenging because construction costs have not been consistent.
Bond debt is serviced from water rate revenue and not property taxes. The alternative is to fund
the projects with a substantial increase in rates for three years. If the City goes to bond, then rate
payers will see rates similar to what the current rates are now with slight adjustments over the next
decade to pay for the projects and pay off the bond but without the bond, the rate payers will see a
100% increase in rates over three years.
Mayor Giles asked about the length of the bond term and Mr. Loscher noted that the model
presented to the City Council is for 20 years. Council Member Nielsen expressed concerns over
raising rates since the City Council felt confident in 2018 that a conservative decision was made
on the direction the City was going with funding projects. Director Stewart noted that back in 2018
there were significant rate increases proposed to play catch up from years of no increases to rates.
In 2021 staff came back to council with a request to increase rates and possibly bond because the
rate increases of 3% a year were not keeping up with inflation and the need to expand the plant
and storage for DEQ requirements. Mr. Larson explained the timeline update for projects to come
online sooner than originally thought in 2018 and the impact construction inflation has had on the
cost of the projects needed.
Michael Keith noted that there are record debts being issued to public agencies because of the large
growth spurts and the need to make infrastructure improvements. It is a common theme to consider
bonding as a funding source to play catch up and get ahead of the growth. Mayor Giles noted that
it is a challenge to stay ahead of growth, and the City maintains a solid credit rating and prefers
not to take on debt to complete capital projects. Council Member Nelson noted that the public will
ask the City about the frequency of rate increases and it seems like the water treatment plant
upgrade is based on the current population but not on the current growth projected. Mayor Giles
noted that if the City goes to bond, then current and future rate payers will be paying for the
improvements but if the City chooses to increase rates for three years instead, then the current rate
payers will be paying for the improvements needed for future growth. Director Stewart noted that
the existing facility is at its limits and if improvements are not made, the water system will not be
in compliance with DEQ regulations. The new tank is not specifically suited for any development
or region in the community and will provide water for 90% of the community. Council Member
Nielsen asked if the time frame for the storage facility has been moved up from the original
timeframe in the 2018 model and if there are any options to do the water treatment plant upgrades
overtime instead of all at once. Mr. Loscher noted that the project timeline has been pushed up due
to growth. Mr. Weisenburger noted that the current facility has two filters and that is not standard
practice. There is typically a minimum of three filters which gives the water operators more
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December 1, 2023 Special Meeting
flexibility to meet demands. The filter additions are critical to the water treatment upgrade. The
Clearwell capacity upgrade is regulation driven and the storage increase is a DEQ requirement.
Additionally, there are current hydraulic problems with the distribution system. The improvements
are solving near -term challenges as well as preparing the system for future growth.
AB 23-231 Water System Expansion - Water Revenue Bond Financing Discussion and
Direction to Staff
Michael Keith, Municipal Advisor with Zion's Bank and John McDevitt, Bond Council with
Skinner Fawcett presented to the City Council. 2024 is a presidential election year and may bring
higher voter turnout but also includes a lot more information for voters to consume for the election.
Mr. Keith reviewed the timelines for funds to be available with both the May and November
election dates as well as the difference between a revenue bond and a general obligation bond, and
municipal interest rates over a 10 -year period including current rates.
Council Member Nelson questioned if the election timeline is better in May or November and
Mayor Giles asked if Bond Council or staff can help the City Council make that decision in January
or if it needs to be made today. Mr. Keith noted that there are factors that may become clearer by
January including other local entities also making decisions about bonds in the next year. Director
Stewart noted that the timeline of the improvements needed to stay in compliance with DEQ should
be a driving factor when considering when to bond. Mr. Landsberg again reviewed the timeline
for the projects noting that in 2018 it was projected that the City would run out of water storage in
2026 but the most recent update projected that water storage will run out in 2027 and be out of
compliance with DEQ. Additionally, the construction duration and bidding process is roughly a 2 -
to -3 -year process from start to finish and the deadline to complete the improvements is fast
approaching. Council Member Nielsen asked if the City meets all the criteria for judicial
confirmation for a bond. Director Stewart noted that the time frame to get through judicial
confirmation can be six months to one year and there are more unknowns than going to the
ratepayers for bond approval. The City Council agreed that City staff and consultants are on the
right track and expects to see more information in January 2024.
Tour the New Library
The Mayor stated that after the library tour is completed the City Council will be adjourned.
ADJOURNMENT
Without further business, Mayor Giles adjourned the meeting at 11:30 a.m.
ATTEST:
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D A H O
MCCALL CITY COUNCIL
December 1, 2023 Special Meeting
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