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06132013CouncilMinutes CITY OF AMMON CITY COUNCIL MINUTES – WORK SESSION THURSDAY, JUNE 13, 2013 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA – WORK SESSION THURSDAY, JUNE 13, 2012 – 4:30 P.M. DISCUSSION ITEMS: 1.Wastewater Facility Planning Study Presentation 2.Misc. EXECUTIVE SESSION: 1.Personnel Evaluations - Idaho Code 67-2345 (1-b) 2.Real Property Acquisitions - Idaho Code 67-2345 (1-c) 3.Pending Litigation - Idaho Code 67-2345 (1-f) MINUTES City Officials Present: Mayor Steve Fuhriman Councilmember Dana Kirkham (left at 5:50 p.m.) Councilmember Rex Thompson (arrived at 4:50 p.m.) Councilmember Brian Powell Councilmember Sean Coletti Councilmember Russell Slack Councilmember Christensen Deputy City Clerk Rachael Brown City Treasurer Jennifer Belfield City Engineer Lance Bates Public Works Director Ray Ellis City Officials Absent: City Clerk/Administrator/Planning Director Ron Folsom DISCUSSION ITEMS: Mayor Fuhriman opened the meeting at 4:34 p.m. at the City building located at 2135 South Ammon Road. 1. Wastewater Facility Planning Study Presentation: Kye Kreusel of Keller Associates was reached by phone and directed a spreadsheet presentation. Jim Mullen distributed a spreadsheet that Keller & Associates put together to be used as a tool to justify rates or rate increases to meet the City’s wastewater goals for the future. Keller & Associates has worked with the City staff to incorporate the different budgets and wastewater expenses. The spreadsheet is a 25-30 year projection of future budgets based on goals, spending, priorities etc. Jim covered the information contained in the Wastewater Rate Recommendation Summary worksheet. Councilmember Kirkham asked if the study anticipates costs Ammon has to integrate from the Region. Jim said no. Now that the spreadsheet is established the costs you are expecting can be entered in and we will know what we need to do to adjust rates to meet them. Councilmember Slack asked how many ERU’s go through a new train. Lance said the treatment train now is set up for somewhat close to 6500 ERUs. A second treatment train would double that. Councilmember Powell said we not only need a new train we also have to upgrade some pumps. Lance said there are some pump upgrades included in the wastewater plan study. The new train would cost 12 million dollars, and some of that cost will go to Shelley. Councilmember Powell asked how many ERU’s are flowing through the train with us, City of Shelley and Bingham and Bonneville Counties. Lance said we are probably close to the 6500 ERU’s now. Councilmember Christianson said he thought we could grow by 50% before we would need a new train. Councilmember Kirkham said that is our own collection system. Councilmember Powell asked if the City is set at four MGD (millions of gallons per day) right now, and how much is flowing. Lance said we are set for two MGD and Ammon is flowing at 1.1 million gallons per day. Discussion ensued regarding the wastewater flows. Jim directed the Council to the revenues and expenses chart and said based on the rate assumption of four percent per year and the expenses that have been allocated, the revenues are outpacing the expenses. 13 Council Minutes 06.13.2013Page of Councilmember Powell asked why the expenses are projected to increase in 2014. Jennifer explained the expenses will increase because the City was saving for the bond payments, and now we are disbursing the bond payments. Councilmember Kirkham said there will also be several upgrades in 2014. Discussion ensued regarding other projected expenses. Jim’s assessment of the wastewater project is that the City is in good shape based on the limited amount of expenses that have been budgeted or anticipated. Councilmember Kirkham asked if Keller & Associates agreed that the City needed to perform the upgrades to the Original Town Site. Jim said the study is not complete, and if the City does have additional expenses it will change the spreadsheet. Jim demonstrated how different scenarios affected the spreadsheets outcome. Jim said the spreadsheet is the best way to use the numbers to see different scenarios. Councilmember Kirkham said yes, this spreadsheet information is the best thing the Council has ever had to see the different scenarios. Councilmember Powell said he thinks new users need to pay a more substantial portion of the capacity replacement at the wastewater plant. He does not think it is fair for current customers on the system that have already paid into the system via bond, while the new users have not. Councilmember Christensen asked is there is a separate fund being accumulated at a rate of $3,500 per new ERU for the purpose of expanding the sewer train, because theoretically that should pay for the new sewer train. The fees should be about operations and maintenance, and the replacement fees should be about replacing capacity. Councilmember Powell said the problem is the connection fee would become too large and people would not want to connect. They would go somewhere else and the City is still stuck with the replacement tab at the end. Discussion ensued regarding the connection and replacement fee. The Council studied the spreadsheet in more detail discussing different scenarios and outcomes. 2. Misc.: Councilmember Kirkham explained that yesterday she attended the IBSD (Iona Bonneville Sewer District) special meeting to go over proposals. They are leaning toward putting in the force main, which would be a $500,000 investment on their part, separating from us entirely and putting in the lift station. It doesn’t give us money but provides capacity. Jason Glendell called the meeting because of Councilmember Kirkham’s email saying we are willing to work with them and do what’s best for those patrons. They will prepare a survey because of the hang up in their proposals concerning the idea of annexation and de-annexation and whether or not 60% of the existing patrons in that area will agree. They are offering a $1,000 incentive if they’re annexed into the City of Ammon, understanding that their monthly sewer rate will increase. If there is an interest in the survey, the City of Ammon will take over the lift station and IBSD willde-annex the 254 residents and the City of Ammon will annex them into the city sewer system. They mentioned their Wildwood lift station is in need of $144,000 worth of repairs. IBSD offered two proposals; IBSD would pay for repairs, and then turn it over to the City of Ammon, or the City of Ammon would pay for 100 percent of the repairs. Councilmember Kirkham’s proposal is to consider splitting the cost 50/50. Councilmember Powell said he doesn’t want to pay anymore. He said it’s fine if the IBSD customers want to de-annex, but he doesn’t want the lift station. Councilmember Kirkham said if the City takes the 254 customers we take the lift station, because it is there to serve those customers. Councilmember Slack said he thinks the payback on keeping the people would out weight putting money into the lift station. Discussion ensued regarding the possible gain of 254 ERU’s. Councilmember Christensen said he would like to resell at a higher price. Ray said he would like to prepare our own independent evaluation of the lift station. Discussion ensued regarding the lift station. Councilmember Kirkham polled the Council, because IBSD needs an answer. Discussion ensued regarding the $1,000 incentive and possible 254 ERU’s. Councilmember Kirkham said she will contact Jason and tell him the Council needs more time to discuss. Councilmember Powell said IBSD will have an answer by June 27th. Discussion ensued regarding costs of 254 ERU’s versus the cost of the sewer train. Councilmember Powell will let Councilmember Kirkham know that Ray wants to inspect the lines and to obtain written permission from IBSD to do so. Councilmember Christensen said he would take the ERUs, Councilmember Slack is 50/50, Councilmember Thompson 50/50, Mayor Fuhriman said let them go, Councilmember Powell said to let them go, Councilmember Coletti said to let them go. Jennifer said she would like to recommend an EAP (Employee Assistance Program) program to our employees. The medical insurance is set up with a $2,000 deductable and $1,500 maximum out of pocket before the insurance pays one hundred percent. There is also the same amount for mental wellness with a separate deductible. An EAP would provide counseling, costing the City $1.25 per employee, per month for all full time employees and without offering full benefit we can offer the EAP to the paid call firefighters. This year the City has had two employees dealing with divorces, one employee dealing with the death of a child. Management has received several requests for an EAP from the staff. Jennifer feels there have been enough requests that she feels an EAP would be beneficial. The III-A would administer the EAP, and the cost would be included in the medical coverage statements. Discussion ensued regarding the EAP coverage and expenses. The Council was fine with adding the EAP program cost to the budget. Ray Ellis explained that there is a resident building a home outside of the Ammon City limits on the east side of 60th. They are requesting to connect to City water and are aware that it will be at a cost of one and one half times the normal rate. Lance and Ray discussed it and they will not allow them to connect to the high pressure or low pressure transmission lines. The owner will have to install a meter vault, and stop at the curb. He would be responsible for the 300 feet to his house. Ray is requesting that since the 23 Council Minutes 06.13.2013Page of property is out of the City, he would like to install a meter and charge the meter rate. The lot size is close to an acre. The Council approved Ray’s request. Councilmember Coletti asked about the public being informed about the re-routing of traffic for the 17th street construction. Ray said he plans to put the information on the utility statement. The meeting adjourned at 6:26 p.m. _______________________________________________ Steve Fuhriman, Mayor _______________________________________________ Ron Folsom, City Clerk 33 Council Minutes 06.13.2013Page of