HomeMy Public PortalAboutMinutes_CCPublicInformationMeeting_10122017CITY COUNCIL SPECIAL PUBLIC INFORMATION MEETING
WATER SYSTEM IMPROVEMENT PROJECT
OCTOBER 12, 2017 — 7:00 P.M.
IONA COMMUNITY CENTER
PRESENT: Mayor Brad Andersen, Council President Dan Gubler, Council Member Rob Geray,
Council Member Dan Gauen, Council Member Kathy McNamara, City Clerk Shara Roberts,
Public Works Director Zech Prouse, Public Works Laborer Bryce Stucki, and Officer Dustin
Mathie.
ABSENT: Chief of Police Karl Bowcutt.
VISITORS: Dana Andersen, Shane Williams, Deb Sorenson, Dee Johnson, Dennis & Linda
McArthur, Rod & Susan Gardner, Reid Hymas, Pam Theriault, Mike Thompson, Bruce &
Merodene Case, Dale & Janet Steele, Susan Moon, John Burnham, Dustin Haderlie, Devin
Rowley, Brent Terry, Sally Price, Jacob Goss, Ron & Sue Ulbrich, Mike & Louise Bryan, Emily
Downey, Darla Reed, and Steven Reed.
Discussion of Water System Improvement Project: Mayor Andersen expressed the purpose of
the meeting is to discuss needed improvements to the City's water system.
Engineer Paul Scoresby explained that the City has been considering improvements to the City's
water system since approximately 2004 when an engineer firm was hired to do an evaluation of
the overall condition and performance of the system. In 2008 a second study was initiated, and a
capital improvements plan was developed.
The City has done some of these improvements through the years using capital improvement
funds out of the water fund. Two of the major improvements accomplished were
recommissioning well #3 and rehabilitating the existing storage tank on the hill. Mayor Andersen
noted smaller improvements which have also been done include the installation of a backup
diesel generator and initiating a fire hydrant replacement program throughout the City. He
explained previous engineering studies expressed concerns that the hydrants were so outdated
there could be a potential to have difficulty connecting to them to access water in case of a fire
emergency.
He further expressed in terms of capacity the water system is at times exceeding daily demand
limits contained in the City's water rights. During the hot summer months all the wells are being
used at full capacity and if one was to go down residents wouldn't be able to water their lawns as
they have been accustomed to doing. The Council would have to potentially look at a mandatory
watering schedule as other jurisdictions have had to implement. The City has reached a point
where they have done what they can with the funds available, but now they are looking for
approval for a revenue bond to resolve these concerns and set the City up for many more years of
service.
Council President Gubler asked Engineer Paul Scoresby to discuss in more detail the scope of
work the City Council is proposing.
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Mr. Scoresby reviewed question #2 and question#3 in the informational handout, "Exhibit A"
which outlines a breakdown of the scope of work. He explained this project would consist of
constructing a new 1 million gallon storage tank and upgrading the transmission line to 16
inches. He also mentioned that the proposed project scope includes the construction of a new
well and a generator that would improve redundancy in case one of the other wells goes down.
Ted Hendricks with East-Central Idaho Planning & Development Association (ECIPDA) next
addressed the financing of the project. He explained his role is to analyze similar communities
with similar projects and determine what the project will cost to considering current trends in
constructions costs.
He reported the City of Iona qualifies for funding assistance in the form of a 30 year low interest
3% loan through the Department of Environmental Quality (DEQ). The citizens have the
opportunity to vote during the revenue bond election which is scheduled for Tuesday, November
7th, 2017 to either authorize or disallow the City to borrow the money to fund this project. This
would require a simple majority vote to pass.
He further explained if the bond passes, it would result in an estimated increase of $19.00 per
household in the monthly water bill. As more homes or users come into the community the rate
could go down. The other thing that may impact the overall cost of the project depends is
whether the construction bid comes in lower than they are anticipating.
Mr. Hendricks reported additional funding could become available through the Army Corps of
Engineers. For example, the City of Driggs is in the middle of a similar water system
improvement project and just received $600,000 to go towards funding their project. If such
additional funds are acquired, the monthly increase would likely go down.
Mayor Andersen explained that when the scope of work was considered, the cost was based upon
a worst case scenario and didn't take into consideration any other additional funding that could
lower the overall cost of the project and thereby decrease the monthly impact upon each
resident's water bill.
Council Member Garren noted that over the course of the last few years the Council has
discussed potential solutions to the City's water system problems and that the Water Committee
at one point suggested water meters to curb consumption. He believes it's worth noting this
project doesn't include water meters, and the reason the Council put together this particular
scope of work was based on the water studies conducted and feedback received from a city-wide
survey conducted this last Spring. He further expressed this option appeared to be the most
popular course of action based on the responses they received.
Mayor Andersen expressed the City has done what they were able to do within the yearly budget,
but when it comes to the big ticket items, such as the ones they are discussing tonight, there is
not enough funding to get the water system where it should be. He then opened up the meeting
for questions and comments from the public.
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Citizen Michael Thompson inquired how much backup would the generator provide in the case
of a power outage. Mr. Scoresby explained the minimum requirement from the State is you have
to have 8 hours of backup plus fire flow. The new tank would ensure the City would have all the
fire flow needed.
Mr. Thompson also inquired how many homes the water system currently services. Director
Prouse estimated the number of connections to be approximately 850. He further inquired how
many homes would be able to be to added to the system and asked if the proposed expansion
would serve the City for another 20 years. Mr. Scoresby expressed in terms of storage capacity
the City may have to add another well in roughly 30 years based on past and present growth
rates. However, this project will set the City's water system up for quite some time.
Council President Gubler expressed when the City Council established the scope of work for this
project they didn't look at it from an aspect of how long it would allow the City to grow, but
rather from a point of fixing the problem which already exists in the system and to allow citizens
to continue enjoying what they have. The major focus comes down to pump capacity because
during the summer months during peak hour demand the City is exceeding the legal amount they
are allowed to pump. The construction of a new storage tank will help alleviate this issue going
forward.
Citizen Emily Downey expressed the Council has spent a lot of time putting together this project,
and she is interested to know which members of the Council and Mayor support the passing of
this bond.
Mayor Andersen responded they are unanimously behind moving forward with this project, and
wouldn't have made decisions to pursue it further if they hadn't been in agreement. However, the
citizens of this community will have the opportunity to make the final decision.
Council Member McNamara expressed she believes there are things that will come into play
which will allow the City to pay off the loan faster and she hopes people will realize these are
improvements that need to be accomplished and further expressed she was supportive of the
bond.
Council Member Garren explained this project has been in the works since about 2004 and had
the City elected to take care of it earlier the construction costs would have been lower than they
are now. If the City elects to push this off for a few more years constructions costs will continue
to rise.
Council President Gubler reported about 4 years ago the City missed an opportunity for a 0%
interest loan, but at the time there wasn't support for completing the project. As a result the City
will pay 3% on top of the increased construction costs. He further expressed it's one of those
situations where the sooner the project is completed the less it's going to cost in the overall
scheme of things.
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Citizen Jon Burnham expressed he would like to know a breakdown of the costs of each item
under the scope of work. Specifically what is the estimated cost of the new storage tank. Council
Member Geray responded it is estimated in the scope of work at approximately $1,000,000. Mr.
Burnham inquired what the approximate cost of the construction of the new well and generator
is. Mr. Scoresby responded it is roughly estimated at $500,000.
Mayor Andersen noted when the scope of work was designed they planned for a worst case
scenario so they factored in costs for constructing under lava rock, under the railroad tracks, and
canals so the numbers are estimated on the higher end.
Council President Gubler informed Mr. Burnham they would make this document available in
the City office and on the City website which would help answer some of Mr. Burnham's
questions.
Mr. Burnham shared concerns with the Council metaphorically recommending they consider
buying the fully loaded Chevy instead of a $60,000 Cadillac, meaning he hopes the Council will
take into consideration getting the project done without unnecessary frills to ultimately lower the
cost of the revenue bond and the impact that will have on monthly water bills.
Council Member Geray explained the City Council is certainly not trying to buy the Cadillac of
anything. They have always done business conservatively in each department and across the
board when it comes to managing the City's budget and they are taking the same approach when
it comes to this particular project. He further broke down the summary page of the scope of work
for Mr. Burnham to help answer his concerns and questions.
Council President Gubler explained the only thing they have included in the scope of work as a
"frill" so to speak is increasing the diameter of the transmission line to hopefully offset potential
future growth. He further explained the cost to install a pipe in the ground is the same regardless
of the size of pipe chosen. However, the City Council opted to pay for the larger diameter pipe of
16 inches instead of 10 inch pipe which currently exists. This will attach to the City's water
system in three different locations and collectively add a lot more volume and pressure to the
existing system.
Citizen Dennis McArthur expressed his gratitude to the City Council and the Mayor for
scheduling this meeting to hear what the project consists of and what it will cost.
Citizen Ron Ulbrich inquired if the Council has considered only adding more pump capacity and
the transmission line without building the tank.
Council President Gubler responded they did consider that option, but collectively they agreed
the tank would provide better performance for fire flow in the future.
Council Member Geray further explained the project is also about reserve capacity and concerns
with high demand times in the summer months where the City may exceed its allotted cubic feet
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per second (cfs). The new tank would allow the City's system to use that storage to supplement
the consumption so they ultimately wouldn't be exceeding the allotted cfs, and would allow the
City to be more compliant with state regulations.
Mayor Andersen explained the concept of senior water rights and junior water rights. The City's
main well is a junior water right and was built after 1990 so if the City continues to exceed their
allotted flow requirements the State could require the City to reduce the flow drawn from the
main well. This project will also provide redundancy and more storage so the City doesn't
exceed its peak hour demand limits.
Citizen Bruce Case expressed that an increase from $30 a month to $49 a month is a big pill to
swallow for a lot of individuals in this community who are on fixed incomes. He further inquired
if this was an all or nothing project, or if it could be done in stages as more revenues come in. In
closing, he explained they have heard the worst case scenario but not information on a better
case scenario if additional money was utilized such as city reserves or grant money.
Mayor Andersen expressed the City does try to consider individuals who are on a fixed income
and they could potentially look at things on an individual basis. In regards to being an all or
nothing project he explained these needed improvements have been identified for many years
and outlined in these water planning studies. The City is already behind the 8 ball so to speak
when it comes to their water system. He expressed they can no longer piece meal together these
deficiencies.
Council President Gubler explained the Council will not know total project costs until the project
is put out to bid and has considered whether there are other options to reduce costs. The Council
is asking for the potential maximum with the hope there will be reduced costs and additional
funds to lower the overall cost of this project.
Citizen Bruce Case inquired how much the Council is willing to take from the city reserves to
help fund this project. Council President Gubler explained to this date the Council has not yet
had that discussion. Mayor Andersen further explained the Council would like to keep some
money in reserves if there was an opportunity to purchase additional water rights, or if there was
a major break in one of the transmission lines. He estimated the number could be in the range of
$200,000 to $300,000 but they would need to discuss that further.
Mr. Hendricks explained the City is requesting authority to bond up to $3,900,000, but they do
not have to issue that amount. There are going to be things that potentially transpire to help save
money on this project.
Citizen Reid Hymas inquired if there is any indication of how much reserve water would be
available in the new tank.
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Council Member Geray explained it is 1 million gallon tank but will depend entirely on
consumption. During peak hour demand in the summer there may not be a lot of progress storing
water until the draw on the system declines.
Mr. Hymas further inquired if the City has technology that indicates at all times how much water
is available in the tank. Mayor Andersen explained the City updated to a SCADA system which
provides data acquisition for the water system. Mr. Hymas expressed he moved here about 4
years ago and where he previously lived they paid about $200 a month for water and it was
undrinkable. He stated that he didn't mind the increase because he enjoys the water here and that
it tastes good.
Council Member McNamara expressed this project is for the entire community to continue to
enjoy the water service that is provided by the system and that she hopes the water system will
continue working for years to come.
Citizen Dennis McArthur expressed his gratitude for previous councils who spent the money all
those years ago for the system the citizens are able to enjoy now. In closing, he believes the City
has an opportunity to improve this system now and for future generations.
Meeting adjourned 8:13 p.m.
COUNCIL APPROVED: November 21st, 2017 �� % i'l ‘LJ- jA
Brad Andersen, Mayor
ATTEST:
Shara Roberts, City Clerk
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