HomeMy Public PortalAboutMinutes_CCSpecialMeeting_05092016SPECIAL CITY COUNCIL MEETING
IONA COMMUNITY CENTER
MAY 9, 2016 — 7:00 P.M.
PRESENT: Mayor Brad Andersen, Council Member Rob Geray, Council President Dan Gubler,
Council Member Kathy McNamara, Public Works Director Zech Prouse, Chief of Police Karl
Bowcutt, and City Clerk Shara Roberts.
ABSENT: Council Member Dan Garren, Attorney Dale Storer
VISITORS: Lee Andersen, Clay Kappas, Bryce Contor, Ken Rose, Barbara Schreier, Donna
Pruett, Terry McNamara, Dennis Bateman, Dennis McArthur, Curtis Bateman, and Susan
Gardner,
Mayor Andersen welcomed everyone and Clerk Roberts led with the Pledge of Allegiance. A
roll call was taken to open the meeting.
Items of Business:
Approval of Water Rights Lease Agreement: Mayor Andersen explained the purpose of the
agreement would be for the City to lease water rights from the City of Pocatello. The document
outlines a total of 70 acre feet, costing $20.00 per acre foot, and would cost the City a total of
$1,400. Mayor Andersen reported City Attorney Dale Storer reviewed and recommended the
City Council sign the agreement.
Mayor Andersen requested citizen Bryce Contor explain his understanding of the agreement.
Bryce Contor resident of 5223 Steele Avenue explained the vulnerability lies with the 1910
water right the City has. He explained every year the director of the Association of Idaho Cities
(AIC) calculates what the curtailment cut will be, and for this year it is 1989. The City of
Pocatello has agreed to lease enough water to cover the potential depletion. The City doesn't
have to pay on all pumping capacity just the portion they have calculated could cause harm to the
southern lower cities.
Mayor Andersen entertained a motion. Council President Gubler moved to approve the Water
Rights Lease Agreement. Council Member McNamara seconded the motion. Approval of the
agreement, Exhibit "A" was taken by a roll call vote:
Council Member Geray: Yes Council Member Gubler: Yes
Council Member Garren: Absent Council Member McNamara: Yes
Rockwell Development: Mayor Andersen explained he would like to discuss the new Rockwell
Development which is being proposed north of Rushton Circle. He suggested requesting the
developer to change the name of the subdivision before it is platted to something more applicable
to Iona such as Sandcreek or Willowcreek opposed to Thomasville Estates if the City were to
annex it into city limits. Additionally, he suggested requesting the developer to name some of the
streets after the first pioneers of City of Iona. He also suggested the access roads be one through
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Olsen Street and then two off of Telford Road. He requested the City Council to have ideas by
the next City Council meeting for discussion.
Council Member Geray commented relating to the development he feels the City Council needs
to get to a place on deciding how big they want the City of Iona to be.
Mayor Andersen acknowledged Council Member Geray's point and commented these are all just
conversations on what could happen based on if the City Council decides they want to annex the
development into the City's limits or not. He further commented the City can't stop the growth,
but they can try to manage it based on what they would like to see in the future.
Council President Gubler commented the main question is how involved does the City want to
be in the growth forming around us. If the City chooses not to annex the new subdivision
Rockwell Development will go in there with smaller lots and high density housing based on what
is allowed in the Area of Impact Agreement with the County and could affect the City that way
in regards to property values down the road.
Water Issues: Mayor Andersen turned the meeting over to City Engineer Paul Scoresby to
provide information regarding the City's water system and the potential new development.
Mr. Scoresby provided a list of questions for reference purposes and explained it was prepared at
the request of Council Member Garren. Mr. Scoresby explained he studied the scada system
outputs and trend lines to gather most of the information. The list of questions were walked
through individually and can be found in Exhibit B.
Mr. Scoresby first reported the City's total water rights are 2,590 gallons a minute or 5.77 cfs
(cubic feet per second), and explained they are measured manually by volume and need to be
reported to Water District #120 what the annual volume is. Public Works Director Zech Prouse
reported the City's newest water right from 1993 is housed in Well #1 and cannot be used to
water parks or large green spaces. Mr. Scoresby explained every time the City turns on all three
wells it is violating the pumping rate allowance for the water rights. Council McNamara asked
how often it was in which all three wells were on. Mr. Scoresby reported every hot day of the
summer the City is in violation of their water rights from approximately 9:00 p.m. to 4:00 a.m.
He explained the system is not stressed during the winter time, but is June through August.
Mr. Scoresby further reported the City has three pumps and no booster pump stations are
currently in the system. If the City chose to build more wells, they would need to acquire
additional water rights because currently the City pumps more than their allocated water right
and estimated the City needs another 1.13 cfs right now. Additionally, he estimated another 0.54
cfs would need to be acquired if the Rockwell Development was annexed into the City. Council
Member Geray inquired how many cfs were included in the potential purchase which has been
discussed during recent City Council meetings. Mayor Andersen reported 1.58 cfs.
Mr. Scoresby commented the City's volume is fine it's the instantaneous rate which is the
problem. In his experience with the City of Ucon, they had an instantaneous rate water right
issue which they decided to apply for a new water right, and successfully gained one. However,
the City didn't gain any more volume with the establishment of the new water right. The window
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of opportunity to obtain a water right in this fashion is now closed. He further explained all of
the City of Iona's needs are during the summer time and the volume needs are a lot less than
what the City's water rights allow.
Council President Gubler inquired how many wells have VFDs (Variable Frequency Drives).
Public Works Director Prouse reported the City has the capability to turn Well #1 down. He
reported Well #2 pumps directly into the tank so there is no benefit for a VFD. Well #3 is small
enough that a VFD is not justified.
Mr. Scoresby addressed the question what is the maximum demand the City sees and when does
it occur. He reported the average daily demand is 783 gallons a minute taken from 2015 actual
data from the well pumps last year during end of June and beginning of July. Mr. Scoresby
explained the peak hour demand was 2,770 gallons a minute. These numbers were derived from
a limited data set.
Mr. Scoresby reported the capacity of the storage tank is 475,000 gallons. He addressed the
question does the City need more storage, and he reported it depends on how the City wants to
expand their water delivery system. He explained there are basically two main choices when it
comes to the supply infrastructure: 1) a combination of another storage tank, a large transmission
line, and a smaller well or 2) drill two wells at the size of existing well#1 or bigger which would
give the City the capacity to meet all the demands for everything the City has now, plus 110 lots
with the potential new Rockwell Development. Additionally, it would satisfy the redundancy
requirements, and allow for pumping max day flow while fighting a fire at 2,500 gallons a
minute. He commented the City's tank is a good tank. However, the tank is limited because of
the 10 inch diameter 1 mile transmission line which restricts the amount of water that will flow
through it. Council Member Geray inquired how big of a transmission line the City needs to
actually get everything out of it that they could. Mr. Scoresby suggested a 16 inch line and
citizen Bryce Contor commented it would be plenty for the City's needs.
Mayor Andersen commented there was a lot of scenarios and options to look at and discuss. He
commented Rockwell did offer to pay all of the City's water hook up connection fees at once to
help with the expense of establishing another well. Additionally, there is still the possibility of
purchasing water rights at the cost of $6,000 per inch. Council President Gubler inquired what
the age of the water right was. Mayor Andersen reported it was his understanding it was
established in 1977.
Council Member Geray commented clearly from the discussion the City has some immediate
water issues which need to be addressed. In his opinion, it still comes back to how everyone
views the growth of the City and he has heard a lot of discussion on keeping the City of Iona
small.
It was discussed the possibility of bringing in the potential new subdivision on a metered rate vs.
a flat rate. Mayor Andersen commented the City has voiced to them they do not want meters put
it. Public Works Director expressed if the new subdivision was annexed into the City he sees it
as separate from the existing City of Iona and should be treated as such. Council President
Gubler commented the City needs to look into the legality of that.
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Mayor Andersen expressed in his view the biggest priority was to move forward in pursuing
water rights. Council President Gubler commented in his view point the City Council's biggest
responsibilities to the City are 1) water and 2) streets. He agreed it is important to pursue
purchasing the water rights based on the discussion because it fixes the City's needs now and
going forward into the future. Council President Gubler commented the amount the City has in
savings is predominantly from growth. He asked Mr. Scoresby the estimated cost of a new well.
Mr. Scoresby reported he would estimate it at approximately $500,000. Council President Gubler
estimated the amount to purchase the potential water rights at approximately $474,000, and
including the pending water tank rehab at an estimated cost of $125,000 - $150,000 the City is at
a total cost of approximately $1,100,000 to accomplish all three objectives. He walked through a
scenario if the City was to annex the new subdivision in and receive the $330,000 in water hook
up connection fees, plus the approximately $600,000 in savings that would leave the City
needing to come up with $200,000 which they can.
Mayor Andersen suggested doing the improvements to the City's water system in a two or three
phase tier. He suggested rehabbing the water tank and purchasing the water rights this year, and
then the next year look at a new well. Mayor Andersen opened up the discussion for comments
from the public.
Citizen Dennis McArthur suggested increasing the water hookup connection fee. Mayor
Andersen explained City Engineer Paul Scoresby did a study, and reported the City of Iona is
potentially already over what the legal limit is. Mr. McArthur further commented if the City is
going to be impacted by the growth around us there is a big difference between having larger lots
vs. high density smaller lots and it is important to maintain the quality of lifestyle.
Citizen Terry McNamara commented the opportunity to purchase water rights doesn't happen
very often because water rights aren't out there and available anymore. He expressed favor in the
City moving forward with purchasing the water rights because it benefits the City no matter what
is decided regarding new development.
City Engineer Paul Scoresby expressed support in moving forward with purchasing the water
rights because as it stands the City already has a problem and it needs to be taken care of.
Citizen and Chairman of the Water Committee Lee Andersen commented he doesn't believe the
City is going to look back in 30 years and regret purchasing water rights, but they will look back
and regret not doing it when they had the chance to.
Citizen Bryce Contor commented during the last Water Committee it was a recommendation the
City Council's high priority be moving forward with the purchase of the water rights.
Council President Gubler commented whether the City allows any more growth or not he views
it as a separate issue given the City has the problem it has., and he sees this benefiting the City
for years to come.
Mayor Andersen reported during the last discussion he had with the seller he offered to sell them
for $6,000 per inch. Council President Gubler was assigned an action item to have a conversation
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with the seller to offer between $6,000 - $6,150 per inch to leave room for negotiations at a total
cost of approximately $474,000 - $485,000. City Council reviewed the financial statements and
discussed the possibility of doing two payment installments if the seller would be agreeable.
Council President Gubler inquired if there was anyone in attendance who had concerns with the
City Council moving forward with the purchase of water rights. No comments were made by the
public.
Mayor Andersen entertained a motion. Council President Gubler moved to present an offer to the
seller in the amount of $6,000 or up to $6,150 per inch for the procurement of 1.58 cfs. Council
Member McNamara second. Approval to move forward with negotiations on purchasing water
rights was taken by a roll call vote:
Council Member Geray: Yes
Council Member Gubler: Yes
Council Member Garren: Absent Council Member McNamara: Yes
Meeting adjourned at 8:35 p.m.
COUNCIL APPROVED: May 18, 2016
ATTEST:
Shara Roberts, City Clerk
Brad Andersen, Mayor
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WATER RIGHTS LEASE AGREEMENT
This Lease Agreement is made and entered into between the CITY OF POCATELLO, a
municipal corporation of Idaho ("Pocatello"), whose address is P.O. Box 4169, Pocatello, Idaho
83205, hereinafter referred to as "Pocatello" or "Lessor", and the CITY OF IONA, a municipal
corporation of Idaho, whose address is PO Box 487, Iona, ID 83427 , hereinafter
referred to as "Lessee":
WHEREAS, Lessor has equitable title and contractual rights under the contract it entered
into with the U.S. Bureau of Reclamation under Contract No. 14-06-100-1825 dated January 8,
1960 (hereinafter "Contract") and later confirmed by decree in Aberdeen -Springfield Canal Co.
et. al v. Henry Eagle (7th Jud. Dist. 03/12/1969). Under the Contract, Pocatello is entitled to
4.1667% of the reservoir capacity of Palisades Reservoir, which is 50,000 acre-feet at the
estimated active capacity of 1,200,000 acre-feet; and
WHEREAS, the U.S. Bureau of Reclamation holds Idaho Department of Water
Resources water right license O 1-2068 for Palisades Reservoir and IDWR has recommended 01-
2068 for decree in the SRBA, which has a priority date of July 28, 1939; and
WHEREAS, on March 9, 2007 the Idaho Supreme Court in United States of America v.
Pioneer Irrigation District, et al., Docket No. 31790 (In Re SRBA Case No. 39576 (Subcase 91-
63), affirmed the equitable title of those who make beneficial use of storage water in U.S. Bureau
of Reclamation facilities; and
WHEREAS, Lessor covenants and represents that it is the true and lawful owner of the
equitable title and contractual rights of the portion of water right 01-2068 represented by
Contract No. 14-06-100-1825 dated January 8, 1960, and that this water right has not lapsed,
been abandoned, or forfeited, either in whole or in part; and
WHEREAS, Lessor acquired this storage water for various municipal purposes, recharge,
and mitigation, in accordance with applicable law; and
WHEREAS, subject to any mitigation or municipal needs, and to the extent Lessor's fill
for its Palisades Reservoir storage water right is in excess of the amount necessary to meet the
above -named purposes, the Lessor desires to rent its Palisades Reservoir water to other users for
irrigation, power, domestic, municipal, industrial, commercial, mitigation, and recharge
purposes; and
WHEREAS, pursuant to an Interim Mitigation Agreement dated March 15, 2016
("Interim Mitigation Agreement") (attached as Exhibit A), certain municipalities have agreed to
provide 2,600 acre-feet of storage water to the SWC in order to mitigate any injury to the SWC
water rights in 2016 in order to avoid potential curtailment in the SWC Delivery Call; and
WHEREAS, the Interim Mitigation Agreement allows additional municipalities
("Additional Municipalities") to participate in the Interim Mitigation Agreement under certain
conditions; and
LEASE OF WATER RIGHTS
Exhibit "A"
1
WHEREAS, Lessee desires to lease storage water from Lessor for the purposes of
mitigation, which will be delivered to members of the Surface Water Coalition so that Lessee can
participate in the Interim Mitigation Agreement;
NOW, THEREFORE, the parties agree as follows:
1. Leased Property. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor
70 acre-feet of Lessor's storage water right under Contract No. 14-06-100-1825.
2. Term. The term of this Lease shall be for a term of one (1) water accounting year,
commencing upon execution of this Lease Agreement, and terminating on October 31,
2016.
3. Rent. The rent for the leased water is $20.00 per acre-foot, together with any
administrative fees charged by the Committee of Nine, Water District 01, the Bureau of
Reclamation, or the Idaho Department of Water Resources in relation to the lease.
a. Payment from Lessee shall be received by Lessor on or before October 15, 2016.
b. Any administrative fees are to be paid on or before October 15, 2016 or as
otherwise required by the Committee of Nine, Water District 01, the Bureau of
Reclamation, or the Idaho Department of Water Resources.
c. Any rent or administrative fees not paid by October 16, 2016 shall bear interest at
the rate of 12% per annum until paid. In addition to the rent and administrative
fees, the Lessee shall pay 50% of any impact fees assessed in connection with the
leased water.
4. Conditions of Lease. This Lease shall be subject to the following conditions:
a. No water shall be available for lease by the Lessee from the Lessor until Lessor
has accrued 35,000 acre-feet to its 2016 Palisades allotment, which shall be
reserved for the Lessor's own uses. The next 1,965 acre-feet of water which
accrues toward the Lessor's 2016 Palisades allotment shall then be earmarked for
use by municipalities like the City of Iona that have entered into leases with
Pocatello in order to participate in the Interim Mitigation Agreement.
b. In the event Lessor does not accrue at least 35,000 acre-feet of water in its annual
Palisades allotment during the term of this lease, Lessor and Lessee agree to meet
and pursue additional negotiations to amend this Agreement in furtherance of the
principles and agreements identified herein. If no agreement is reached from those
negotiations, this Lease Agreement shall be deemed to be null and void, and each
party shall hold the other harmless.
LEASE OF WATER RIGHTS
2
c. In the event the City's annual Palisades allotment exceeds 35,000 acre-feet, but is
less than 36,965 acre-feet in 2016, Lessor and Lessee agree to meet and pursue
additional negotiations to amend this Agreement for an amount less than or equal
to 70 acre-feet.
d. Lessee shall pay the annual agreed upon price to Lessor for the leased water.
e. The Lessee is responsible for obtaining approval of the Lease Agreement from the
U.S. Secretary of the Interior, the State of Idaho and/or the Committee of Nine, or
any other entity as is required.
f. This Lease Agreement shall be contingent upon all necessary lease approvals
being obtained from the U.S. Secretary of the Interior, State of Idaho, the
Committee of Nine, or any other entity as is required.
5. Non -Use by Lessor. Lessor covenants that it will not divert or utilize the water leased to
Lessee pursuant to this Agreement during the term of this Lease.
6. Use by Lessee. During the term of this Lease, Lessee will not divert or utilize the leased
water except for mitigation purposes to be provided to the SWC.
7. Representations by Lessor. Lessor covenants and represents that it is the true and lawful
owner of the water right which is the subject of this Lease, that this water right has not
lapsed, been abandoned, or forfeited, either in whole or in part and that nothing restricts
or precludes Lessor from entering into this Lease and Lessee utilizing the described water
right.
8. Breach. In the event either party breaches this Lease and such defaults are not cured
within thirty (30) days after receipt of written notice thereof, the non -breaching party, at
their option, may elect any or all of the following cumulative remedies:
a. To terminate this Lease Agreement;
b. To seek specific performance of this Lease Agreement;
c. To recover any damages arising out of the breach;
d. To pursue any and all other remedies under Idaho law by reason of such breach.
9. Assignment. This Agreement may not be assigned by Lessee without the express
written consent of Lessor.
10. Choice of Law. The terms and provisions of this Agreement shall be construed in
accordance with the laws of the State of Idaho. Any required mediation and arbitration
shall occur in Bannock County Idaho. Jurisdiction and venue for any litigation shall be
in the District Court of the State of Idaho in Bannock County.
LEASE OF WATER RIGHTS 3
11. Attorney Fees. In the event of any arbitration or litigation over this Lease the prevailing
party shall be entitled to recover reasonable attorney fees and costs.
12. Binding Effect. This Agreement shall be binding upon the respective heirs, successors
and assigns of the parties.
13. Notice. All notices under this Agreement shall be deemed to be properly served if sent
by certified mail to the last address previously furnished by the parties hereto. Until
hereafter changed by written notice, said addresses shall be as follows:
LESSOR: City of Pocatello
Attn: Legal Dept.
P.O. Box 4169
Pocatello, ID 83205
LESSEE: City of Iona
[PO Box 487, Iona, ID 83427]
Notice shall be complete upon receipt, unless the recipient ignores or refuses to sign for
the certified letter, in which event notice shall be deemed to have been completed on the first
attempted delivery by the United State Post Office.
DATED this 94-day of May, 2016.
LESSEE:
CITY OF IONA, IDAHO
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By:
) ✓�� �1.�'`�' .t,
Brad Andersen, Mayor
Atte
Shara Roberts, City Clerk
LESSOR:
CITY OF POCATELLO, IDAHO
By:
Attest:
Brian C. Blad, Mayor
R th . Whitworth, City Clerk
LEASE OF WATER RIGHTS
4
City Water Supply Questions and Answers
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1. What is the total of the City's water rights?
2,590 gpm or 5.77 cfs
2. How are these rights measured?
Annually by volume, instantaneously by pumping rate
3. Have we ever exceeded our water rights?
Yes, every time all three well pumps run, the water rights are exceeded by 505 gpm or 1.13 cfs.
4. What is the max we have used based on how the water rights are measured?
By volume, the water rights have never been exceeded. By instantaneous rate, the City runs all
three wells simultaneously for several hours a day during the summer months. Exceedance
amount is given in Item 3 above.
5. How many pumps do we have?
Three, one for each well
6. How many pumps run at any given time?
All three well pumps run at a time during the summer months. See Item 4 above.
7. What is the capacity of our pumps?
Well 1-1,375 gpm
Well —1,100 gpm
Well 3 — 620 gpm
Total = 3.095 gpm
8. If we develop more pumps, do they need additional water rights or will existing rights suffice?
The City should make up an existing water rights shortage of 1.13 cfs of instantaneous water
right to match existing pumping conditions. The City should then pursue additional water rights
of 0.54 cfs to satisfy any operating condition needed to satisfy demand from new homes that
would be built in the proposed Rockwell Development.
9. What is the max demand we see and when does it occur?
Current average day demand = 783 gpm
Current maximum day demand = 2,060 gpm
Current peak hour demand = 2,770 gpm
The peak hour demand typically occurs from about 9 pm to 4 am during the hot periods of the
summer.
10. What is the capacity of the storage tank?
The storage tank holds about 475,000 gallons.
11. Does the City need more storage?
It depends on how the City wants to expand its water delivery system. See attached handouts.
12. Where is the bottleneck in the system?
A backup well. Also Well 2 can't help meet summer demands because it is located by the Tank
and pumps to the tank.
13. Given the speed of growth in and around us, what is the future of our water issues look like?
See attached handout on the options available to the City. These options do not include
conservation, which could be part of the solution as well.
14. How does the curtailment issue affect the City?
The City at the last council meeting signed onto the City Attorney recommendation to go with
the option prepared by AIC. The end result will likely be no actual curtailment but cost the City
$1,000 - $2,000 in 2016.
How does this relate to new development in the City?
This will likely be assessed to all City residents equally.
Prepared by Schiess & Associates, May 9, 2016
Exhibit "B"
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