HomeMy Public PortalAboutMinutes_CCSpecialMeeting_07112017CITY COUNCIL SPECIAL MEETI NG
JULY 11, 2017 — 6:00 P.M.
IONA COMMUNITY CENTER
PRESENT: Mayor Brad Andersen, Council President Dan Gubler, Council Member Rob Geray,
Council Member Dan Garren, City Clerk Shara Roberts, Public Works Director Zech Prouse,
Treasurer Amy Sullivan, and Chief of Police Karl Bowcutt.
ABSENT: Council Member Kathy McNamara, and Attorney Dale Storer.
VISITORS: Paul Scoresby and Ted Hendricks.
Mayor Andersen welcomed everyone and Treasurer Sullivan led with the Pledge of Allegiance.
A roll call was taken to open the meeting.
Approval of City Wide Survey Invoice: Mayor Andersen presented the invoice submitted by
the team who was contracted to conduct the city wide survey which captured the additional time
and effort put in relative to what was originally contracted for.
He further explained when the Council first started this project the intention was for the survey to
be & to 10 yes/no questions. However, it evolved into a 16 question survey with a mixture of
yes/no and open ended questions. As a result of this, it ended up taking a lot more time to
complete and quantify the data.
Mayor Andersen entertained a motion. Council Member Geray moved to approve the payment to
Full House Productions LLC. in the amount of $6,500 for services rendered for the City Wide
Survey. Council Member Garren seconded the motion. The payment of the invoice was approved
by a roll call vote:
Council Member Geray: Yes Council Member Gubler: Yes
Council Member Garren: Yes Council Member McNamara: Absent
General Water System Discussion: Engineer Paul Scoresby began the discussion by passing
around a detailed cost analysis, "Exhibit A" and a map "Exhibit B" outlining the potential water
system improvement project. Mr. Scoresby then discussed the water system improvements and
cost analysis in detail with the Council.
Ted Hendricks with East-Central Idaho Planning & Development Association (ECIPDA)
reported he spoke with a bond attorney who indicated the City was well within their time limit to
have a bond election in November, and with the schedule they have outlined would still allow for
construction to begin in 2019.
Mr. Scoresby expressed it would be wise for the City to get moving on some items right away
such as moving forward with putting a work order in with the power company to set a pole with
a transformer, as well as, starting the process for railroad permitting, and have a cost on these
items before it goes out for bid. Director Prouse was assigned these actions items.
1
Council President Gubler agreed to move forward on conversations with Progressive Irrigation in
regards to the two (2) canals which will need to be crossed in order to complete this project.
Mr. Hendricks further explained both the Department of Environmental Quality (DEQ) and the
Army Corps of Engineers are federal funding sources which require more scrutiny by an auditor
so there will be some increased costs which have been outlined in the handouts provided.
Additionally, Mr. Hendricks reported DEQ will want to see an addendum completed on the
previous water study to include new cost estimates and any revisions to the scope of work.
Council Member Geray inquired if the Council as a whole is in agreement on moving forward
with this project.
Council President Gubler expressed he was.
Council President Garren expressed it is inevitable there is no getting around this because the
system requires the infrastructure, and it's the Council's responsibility to ensure the long term
health of the water system.
Council Member Geray expressed increasing the water connection fee is of parallel priority.
Mr. Scoresby reported they are getting extremely close to having the documents ready for the
Council's review. There are a few calculations and an assessment of the value of the City's water
rights which need to be completed.
Council President Gubler inquired if this could be accomplished by the next meeting. Mr.
Scoresby indicated it could be done. The Council directed Mr. Scoresby to continue to work with
Attorney Storer to meet that goal, and requested it be added to the next meeting agenda for
discussion.
Mr. Hendricks reported ECIPDA will have a development contract prepared for the Council's
review for the next meeting, as well as a price estimate from a bond attorney. Additionally, Mr.
Scoresby will need to move forward on updating the water study for DEQ and he will have a
document which outlines the fees associated with that prepared for the next meeting.
Mayor Andersen also requested Mr. Scoresby prepare an outline for a secondary water irrigation
system, and instructed Clerk Roberts to include it as an item of discussion for the next meeting.
Fiscal Year 2018 Preliminary Budget Discussion: Mayor Andersen opened up the discussion
by explaining the different options available to the Council on what percentage increases they
would like to take on property tax, if any.
After further discussion, the Council did not support making an increase in the property tax levy
rate this year.
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Mayor Andersen then opened up discussion for the line item relating to building inspection fees
by explaining there is very little future development in the City at this time so that number could
be reduced. After further discussion, it was estimated there are two dozen undeveloped lots
spread throughout the City limits which could potentially be developed this next fiscal year.
He then provided a handout from Treasurer Sullivan which itemizes what makes up
Miscellaneous Revenue as it tends to be a catch all.
Council Member Geray inquired why Equipment Reserves was increased so high this year.
Treasurer Sullivan explained it was increased to cover the cost of the new dump truck, half
would come from general and half would come from water.
Treasurer Sullivan explained Maintenance was increased this year to cover the costs of chip
sealing the roads and walking path, resurfacing the tennis court, and city parking lot.
Mayor Andersen expressed the importance of leaving a cushion because when unexpected
expenses do comes up it shows bad planning on the Council's part if they have to open up the
budget. He further explained just because they increase some of the line items doesn't mean the
City has to spend the full amount. He pointed out the Council is very conservative.
Council Member Geray expressed from his perspective the cushion already exists to cover
unexpected expenses or projects which may come up this next fiscal year.
Council Gubler inquired why there was a $32,000 increase for Capital Improvements. Treasurer
Sullivan explained that is there for the Council to decide whether or not they want to replace the
bathrooms in the Iona Square or keep up the maintenance on the current bathrooms.
Director Prouse reminded the Council if they are still considering the purchase of a street
sweeper to keep that in mind while they review these numbers.
Treasurer Sullivan reported Council Member McNamara did discuss with her putting a request in
to increase the Iona Historical Museum to $2,000. After further discussion, the Council did not
support making an increase at this time.
Treasurer Sullivan inquired if they want include the new construction of $7,757. After further
discussion, the Council decided they would take the new construction with no property tax levy
rate increase.
Council Member Geray agreed to continue to work with Treasurer Sullivan to make sure the
changes discussed tonight are updated on the spreadsheet accurately in preparation for the next
meeting.
Eclipse Planning: Council President Gubler asked Director Prouse if he had received a price
estimate yet for a 500 gallon fuel reserve from Leonard Petroleum.
Director Prouse reported he made contact, but has not heard anything back yet. However, the
company did indicate they have everything in stock so putting it in place prior to the solar eclipse
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should be doable. Additionally, after the solar eclipse this would become a permanent fueling
reserve for the City.
He further explained worst case scenario if they can't get this in place in time Conrad and
Bischoff informed Director Prouse they could provide 55 gallon drums and gas could be
manually pumped out as a second option for the solar eclipse.
Mayor Andersen is going to try to identify someone with a mobile ham radio as requested by
Council President Gubler.
Chief Bowcutt inquired how many two way radios should be purchased. The Council directed
him to price out a dozen two way radios. Additionally, they asked him to look into purchasing a
couple defibrillators.
Chief Bowcutt inquired if camping in the park during this event would be allowed. The Council
expressed there would be no special exemptions for this event, and to enforce city code as
outlined.
Council President Gubler asked for authorization from the Council to move forward with the
purchase of the 500 gallon fuel reserve.
Mayor Andersen expressed if the fuel reserve was to be located near the well house the
requirements by Department of Environmental Quality (DEQ) needed to be checked into before
any placement decisions were made, and asked to find something in writing.
Mayor Andersen entertained a motion. Council President Gubler moved to approve authorization
to move forward on purchasing a 500 gallon fuel reserve tank not to exceed $10,000. Council
Member Garren seconded the motion. All in favor, motion carried.
Meeting adjourned 8:37 p.m.
COUNCIL APPROVED: August 15th, 2017
ATTEST:
Shara Roberts,y Clerk
Brad Andersen, Mayor
4
City of Iona
Water System Improvements Project
Scope
1.0 million gallon water storage tank
$1,523,313
Well, well house & generator
$521,953
Transmission line to connect to distribution system
$916,928
Total Including Contingency
Costs
2,962,185
Construction
$2,962,185
Engineering
$429,000
Utilities & permitting
$40,500
Administration, bond attorney, city attorney, single act audit & interest
$151,000
Total
Funding Plan
3,582,685
Total project cost
$3,582,685
DEQ principle forgiveness
$0
USCOE 595 grant
$700,000
City cash
$200,000
Amount of Loan
Estimated Increase to Monthly Home Water Rate
2,682,685
$15.52
Prepared by Schiess & Associates, 7/11/2017
Exhibit "A"
3
Rate Impact to Each Home (EDU)
a Total project cost
$3,582,685
b Amount of projected DEQ principal forgiveness
c Amount of USCOE 595 program grant funds
d Amount of city capital improvement reserves applied to project
e DEQ loan amount
f Loan interest rate (%)
=a-b-c-d
$0
$700,000
$200,000
$2,682,685
2.75
g Payback period (years)
30
h Estimated annual loan payment
$132,483
i Existing 0&M costs from 2016 audit & accounting $250,370
j Projected additional 0&M costs of this project $14,004
k Total estimated annual costs =h+i+j $396,857
I Amount of users (EDU's) at start of loan payback from connection fee calculations 891
m Estimated monthly rate per home for loan payback=h/I/12 $12.39
n Estimated monthly rate per home for 0&M after project is complete=(i+j)/1 $24.73
Estimated monthly loan reserve per home (collect 20% of annual loan payment until 10% loan reserve is=h*.20/I/12 $2.48
° achieved)
Estimated monthly capital reserve per home (collect 1.2% of water system asset value annually - this funds=.012*$5,276,003/1/12
depreciation of current auditor kept assets) from connection fee calculations
p
q New monthly rate of each home after project is complete
r Current monthly rate of each home
s Estimated rate increase per home to fund project
=m+n+o+p
=q-r
$5.92
$45.52
$30.00
$15.52
Prepared by Schiess Associates, 7/11/2017
Estimate of Probable Cost for New Concrete Tank, Well and Well House at Heuer -Smith Property above Tefford Road and Transmission
Line on Tefford Road From Tank Site to 1,200 Feet West of 55th East
Construction
uan
Unit Cost Extended Cost
"� •1 v
Stripping and grubbing of tank site
1
Lump Sum
$4,500
$4,500
2
Rock excavation for tank
1,200
Cubic Yard
$40
$48,000
3
Smoothing course of crushed 3/4" gravel
420
Ton
$2o
$8,4o0
4
1,000,000 gallon prestressed concrete tank & foundation (DN Tanks type with appurtenances)
1
Lump Sum
$1,150,000
$1,150,000
5
Rock excavation for tank site piping
200
Lineal Foot
$80
$16,000
6
Site piping (inlet, outlet, overflow, drain)
200
Lineal Foot
$24
$14,800
7
SCADA link at tank
1
Lump Sum
$12,003
$12,000
8
Single phase power, breakers for lighting, depth sensor and control box
1
Lump Sum
$10,000
$10,000
9
14" valves w/box on tank site
3
Each
$7,000
$21,000
10
14" DI fittings on tank site (elbows)
6
Each
$2,000
$12,000
11
Overflow discharge structure
1
Lump Sum
$15,000
$15,000
12
Tank mixer
1
Lump Sum
$35,000
$35,000
13
Erosion control measures and seeding
1
Lump Sum
$4,000
$4,000
14
Rock excavation for transmission line from tank to Hillside Canal
1,100
Lineal Foot
$80
$88,000
15
Asphalt removal on Telford Rd preparatory to pipe lay
4,060
Square Yard
$5
$20,300
16
Hydrants along transmission line
8
Each
$4,500
$36,000
17
14" DI Class 50 water pipe from tank site to 55th East on 49th N
3,875
Lineal Foot
$67
$259,625
18
14" DI Class 50 water pipe from 55th East to East Side of Thomasville Estates on 49th N.
1,200
Lineal Foot
$67
$80,400
19
Upsize of waterline in Thomasville Estates from 8" to 12" (PVC)
3,120
Lineal Foot
$12
$37,440
20
14" gate valves w/box
5
Each
$7,000
$35,000
21
14" DI fittings (tees, elbows & cross)
5
Each
$2,000
$10,000
22
Water service connections near tank site (saddle, corp. stop, meter box and service line)
2
Each
$2,500
$5,000
23
Bore & casing under Hillside Canal
100
Lineal Foot
$400
$40,000
24
Assume half the bore distance at Hillside Canal to be bored through lava bedrock
50
Lineal Foot
$650
$32,500
25
Bore & casing under East Center Canal
60
Lineal Foot
$400
$24,000
26
Bore & casing under railroad ROW
100
Lineal Foot
$400
$40,000
27
Connection to piping at 55th east (gate valves, tee and reducer, extension of 6"' line)
1
Lump Sum
$6,000
$6,000
28
Pitrun restoration on Telford Rd
2,030
Ton
$15
$30,450
29
Roadbase restoration on Telford Rd
720
Ton
$20
$14,400
30
Asphalt restoration on Telford Rd
450
Ton
$90
$40,500
31
New well producing 1,375 gpm to match existing Well 1(365' deep)
1
LS
$180,000
$180,000
32
Well house for new well (20x24 masonry block building)
480
SF
$90
$43,200
33
Electrical & ventilation for new well house
1
LS
$30,000
$30,000
34
New well pump system including 150 Hp vertical turbine motor/pump with water lube column and shaft
1
LS
$65,000
$65,000
35
Piping and valves in well house
1
LS
$35,000
$35,000
36
Diesel generator and automatic transfer switch for new well pump
1
LS
$80,000
$80,000
37
Construction staking
1
Lump Sum
$4,000
$4,000
38
Mobilization
1
Lump Sum
$155,250
' $155.250
Subtotal construction
Contingency at 8%
Total construction cost
Engineering
$219.420
$2,962,185
Est Amount
1
ae,,,
Addendum to Planning Study
$10,000
2
Environmental Review
$20,000
3
Funding support
$10,000
4
Design survey
$5,000
5
Geotechnical engineering report for storage tank
$15,000
6
Drilling for bedrock along waterline alignment and on a grid at tank site (+/-50 holes), survey and brief letter report
$7,000
7
Well/tank site and well design submittal with bid boilerplate to DEQ
$20,000
8
Preliminary engineering report to DEQ (less well site and well design approval)
$40,000
9
Final design engineering of well house, tank and water transmission line and submittal to DEQ with bid boilerplate
$140,000
10
Green Project Reserve (GPR) justification to DEQ
$5,000
11
Bk1 services (bid well first, then everything else in a second bid)
$25,000
12
Construction engineering
$60,000
13
Field observation and inspections
$50,000
14
O&M manual
$15,000
1S
Record drawings and closeout
$7.000
e.g. con
Subtotal engineering
Utilities & Permitting
Est Amount
r[em no.
1
s-
Railroad permitting (application fee, documentary fee and license agreement fee)
$4•000
2
County roadway permitting (fee to obtain permit accomplished by bonded contractor for two bores and a street asphalt cut)
$200
3
Building permitting (tank & well house accomplished by contractor)
$3,000
4
Well drilling permit ($200 plus fill out paperwork accomplished by Driller)
$300
5
Water right transfer to new well site to add new point of diversion
$3,030
6
Water quality testing of new well water
$3,000
7
Three phase primary power to meter (may include power pole, primary conductor to transformer and meter)
$25,000
8
Canal permitting with Progressive Irrigation District (estimate of labor to fill out permit form and attend meeting)
$2.000
e.n enn
Subtotal utilities and permitting
Other Soft Costs
Psi Amount
rzem no.
1
gem
Administration
$80,000
2
Bond attomey
$12,500
3
City attomey
$6,030
4
Single act audit
$12,500
5
Construction period interest
$40.000
e.c. con
Subtotal other soft costs
Total Estimated Project Cost
$3,582,685
Prepared by Schless Associates, 7/11/2017
Milestone
City of Iona Water Project Schedule
Start - Completion Dates
Addendum to 2009 Water Facility Planning Study
Aug - Oct 2017
Bond Election
Nov
Select Design Engineer
Nov - Dec
Select Project Adminstrator
Nov - Dec
Secure Funding
Dec - Feb 2018
Environmental Review
Mar - May
Preliminary Engineering
Jan - April
Canal and Railroad Permitting
Mar - Aug
Final Design & DEQ Approval
Apr - Dec
Well Site and Well Design & Approval from DEQ
May -June
Bidding of Well
July
Bid Award for Well
Aug
Well Construction
Sept - Nov
Bidding of Tank, Well House & Transmission Line
Jan - Feb 2019
Bid Award
Mar 2019
Construction
Apr - Oct
Closeout
Dec
Prepared by Schiess & Associates, 7/11/2017
City of Iona Current Annual Water System O&M Costs
Item No. Item
Amount
1
Power & natural gas
$51,000
2
Office expense & administration
$42,600
3
Payroll, payroll taxes, retirement, health insurance
$121,000
4
Liability insurance
$5,770
5
Maintenance & repairs
$17,000
6
Professional services
$10,000
7
Miscellaneous expenses
$3,000
Total
$250,370
City of Iona Projected Additional Annual Water System O&M Costs
Item No. Item
Amount
1
Power & natural gas
$5,100
2
Office expense & administration
$0
3
Payroll, payroll taxes, retirement, health insurance
$6,050
4
Liability insurance
$1,154
5
Maintenance & repairs
$1,700
6
Professional services
$0
7
Miscellaneous expenses
Total
14,004
Prepared by Schiess & Associates, 7/11/2017
too
City of Iona
Revenue Based EDU Calculation for 2016
Users Connections Monthly Rate EDU's
Homes & businesses assessed the same rate 856 $30 856.0
Elementary school on Iona Rd 1 $600 20.0 --*
LDS church building on Iona Rd 1 $160 5.3
LDS church building on Denning Ave 1 $160 5.3
6-12 Store on Iona Rd 1 $40 1.3
Diane's Early Care on N Main St 1 $40 1.3
Granary 1 $184/yr 1.0
Seasonal livestock connection 1 $184/yr 1_0
Total Connections 863
Total Revenue Based EDU's (rounded to nearest whole number) 891
*City parks not included because the City does not charge itself for water
Prepared by Schiess & Associates 7/10/2017