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10112012CouncilMinutes CITY OF AMMON CITY COUNCIL MINUTES – WORK SESSION THURSDAY, OCTOBER 11, 2012 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA – WORK SESSION THURSDAY, OCTOBER 11, 2012 – 4:30 P.M. DISCUSSION ITEMS: 1. Zion’s Bank Quarterly Investment Report 2. The Development Company/Ted Hendricks – Water Meters 3. EIRWWA Sewer Plant Screen System 4. Fiber Language for State Statutes 5. City Property/3575 Brookfield Lane – Shop Use 6. Misc. MINUTES City Officials Present: Mayor Steve Fuhriman Councilmember Dana Kirkham Councilmember Rex Thompson Councilmember Brian Powell Councilmember Sean Coletti Councilmember Russell Slack Councilmember Brad Christensen City Clerk/Administrator/Planning Director Ron Folsom Deputy Clerk Rachael Brown City Treasurer Jennifer Belfield City Engineer Lance Bates Public Works Director Ray Ellis City Officials Absent: None DISCUSSION ITEMS: Mayor Fuhriman opened the meeting at 4:30 p.m. at the City building located at 2135 South Ammon Road. 1. Zion’s Bank Quarterly Investment Report: Craig Tibbitts, of Zion’s Bank distributed the quarterly investment report to the Councilmembers. Craig said the City’s purchase yield is 1.296% and that is the amount received for invested assets. Craig said as the investments mature Zion’s will roll them into longer term investments. Craig reported the financial activity to the Council for the previous quarter. Craig said Zion’s is sticking to the investment policy the City outlined for them. Discussion ensued regarding the investments. 2. The Development Company/Ted Hendricks – Water Meters: Ted Hendricks of the Development Company reported to the Council information he received regarding block grants for installing meters and meter pits. Ted explained there was a meeting in July and the DEQ has changed a lot of its program and is focusing more on job creation type projects, and has lowered the amount that can be applied for to $350,000. Councilmember Kirkham asked if the City received the grant, could it be used in the original town site because of the economic basis. Ted said the only way to be competitive with it, is to do a direct benefit; so it wouldn’t matter where the home is. If the homeowner qualified under income, they could get the meter installed, but they would also require the City to instigate a meter billing system throughout the City immediately. Discussion ensued regardingthe requirements of the grant for metering. Councilmember Kirkham asked if the $350,000 grant could only be used for the meter, and not the meter pit. Ted said the grant can be used for both the meter and the meter pit, and even the stub out all the way to the house. Ted said the grant can only be applied for one time. Ted said the grant money can only go to those households that have qualified based on their income, and they would be required to bring in their tax forms. Ted said the income would need to be verified, and it has to be a single home dwelling. 13 Council Minutes 10-11-2012 Page of Councilmember Kirkham said even if the City receives the grant, we are still looking at approximately $800,000 to finish installing the meters. Ray said $320,000 to buy another 800 meters does not include the meter pits or installation. Councilmember Kirkham asked Ray what the costs is per home for a complete installation with the vault, pit and meter. Ray said $3,500. Councilmember Kirkham said from a conservation standpoint, meters are definitely the way to go. Councilmember Kirkham said the dilemma the City is faced with is if there is over $3 million up front cost, how long before the City is able to pay it off. Councilmember Christensen said with having to replace the meters every twenty years, the $3 million would never be paid off. Ted said when the City hired Keller and Associates to perform a meter study, the payback was five years to pay back $5 million. Councilmember Thompson said it’s much cheaper for the City to purchase a water right than to install meters. Councilmember Powell asked if Ted had seen communities that have part residential metered and part not metered. Ted said no, because you open yourself up to litigation. Councilmember Slack would like to take data from the installed meters and adjust the rates accordingly. Councilmember Kirkham said for six years the Development Company has been telling the City it needs to be metered. Ted said it creates a fair and equitable billing system, and the City will conserve a 30 year resource. Councilmember Kirkham said the Development Company and Forsgren have been saying that it is just a matter of time before the DEQ will mandate the City be metered. Ted said water resources will do that. Ray said that is only in the case of the City wanting to obtain DEQ monies. Ted explained that by installing the meters as a big project would save money versus individual installation. Councilmember Kirkham said the City is at a point where the Council needs to decide what they are going to do as far as metering. Councilmember Kirkham feels that the Council is on the cusp of deciding what the future of the City is; either we install the meters, or water is going to become a limited resource in the future. Councilmember Thompson said he feels the City should move forward with installing meters on any new construction, and grandfather those that are so old the cost is prohibitive; because it doesn’t make sense to spend that much money on lots that are so small and don’t use that much water. Councilmember Christensen said he feels there are three courses of action; go with the meters, go with a prorated summer surcharge according to lot size, or go with a higher water fee based on lot size, and increased enforcement. Councilmember Kirkham said the amount the City is collecting is enough to cover expenses, but not enough to put anything in reserve. Councilmember Powell said he feels there should be a summer surcharge. Ray said staff has had a number of residents call that can’t believe the amount of water they are using, and have asked how they can conserve. Councilmember Kirkham said metering the water produces accountability. Discussion ensued regarding water line issues and the cost of meter installation. Councilmember Kirkham said the Council is a board of people that live on half-acre or larger lots, and asked if they are really being objective because they will be paying more for their water. Councilmember Christensen asked if the cost of installing the meters merit the good that it will do. Lance said he thinks it will, long term. Jennifer said there are very few cities that are not metered. Ted said the water study the City had done several years ago is probably still valid. Lance said he has never seen the water study. Councilmember Slack said he was not willing to get a bond for meters. Councilmember Kirkham polled the Council to see how they felt about continuing installing meters. Councilmember Thompson said yes, Councilmember Coletti yes, Councilmember Powell yes, Councilmember Slack no, Councilmember Christensen no. Councilmember Kirkham’s said that one suggestion was that the City increases the fees three to five percent each year; the other suggestion was to make the improvements now, raise the rate $15.00 and use the meters. The third option would be to do nothing and follow the example of Council’s before us, and let this be someone else’s problem in the future. Councilmember Thompson said it has always been the City of Ammon’s policy to save ahead, but we haven’t saved enough. Discussion ensued regarding the reserve funds. Councilmember Kirkham would like the Council to consider the three options and revisit this issue at the next work session. 3. EIRWWA Sewer Plant Screen System: Dave Noel, Forsgren Associates said the screens he is talking about are the screens that were originally designed for the Edwards building and the new screens were taken out during the initial phases of the treatment plant not knowing whether we needed them, or if we had the money to put them back in the end. Dave explained the reason we need the screen right now, is because there is enough oil, grease, rags and debris coming down the line that we are unable to get out of the wet well and into the Edwards Building. Dave said about once a week we are spending ten hours with two guys draining the wet well using a rented water truck and at least two loads of four thousand gallons of water to spray that all down. Dave said the screen will capture all of the raggy debris which will have the majority of the grease attached to it; that will get pulled out with the screen, rinsed off and dewatered, and we end up with a very low solids liquid that the pumps can pump to the head works. We will be able to operate the lift station in such a way we are not going to have pump clogging, and this is the appropriate action to get rid of the odors. Dave said they have spent some time trying to track down where the odors are coming from, and we discovered there were significant odors right where the City of Ammon is discharging to the region near Kohl’s. Councilmember Slack asked how long it takes for things to become septic. Dave said 24 hours is a safe bet. Discussion ensued regarding the odor issues along the sewer line. Councilmember Thompson confirmed that the City of Shelley and exit 113 do not flow through the lift station. Dave said that was correct. Councilmember Thompson asked how is putting the screen in front of the lift station going to help them. Dave said the plan is for both of those entities to be connected. Councilmember Thompson asked Dave, if they are gravity flowing, why you would want to connect them to the lift station. Dave said the only reason to connect them to the lift station is because, that is where the screen is and you would want to screen everything before you run it into the plant. Councilmember Kirkham asked why the screens wouldn’t go on 23 Council Minutes 10-11-2012 Page of the head gate at the plant where it was originally designed to go. Dave said the reason they would put them at the lift station is, because the influent pumps at the lift station are the problem. Discussion ensued regarding the lift station. Councilmember Thompson said he feels the City could pay two of its own staff to go in every week for the next forty years for less than $600,000 and doesn’t know why we are going automated. Dave said you can pay your guys to do that, but it doesn’t get rid of the debris that is causing the odors, and in order to get rid of the odors you would have to pay someone to do it every day. Councilmember Thompson said he built his own house, and before he started he spent two years and drew up seven sets of plans; when he built it there were no change orders, he came in 15% under budget, and two months ahead of schedule. Councilmember Thompson said he doesn’t feel that Forsgren has the City’s best interest in mind, and thinks that Forsgren knows the City has more money set aside and wants to get their hands on it. Dave apologized and said that really isn’t the case, but there is an odor problem that needs to be taken care of. Councilmember Thompson said this project has been one thing after another and continues to cost more and more, and feels that better planning on Forsgren’s part would have gone a long way. Councilmember Kirkham said this project has seemed very haphazard, and some of these costs could have been foreseen. Discussion ensued regarding a solution for the odor at the sewer plant. Lance said the public works staff has been monitoring the fats and grease at the restaurants in the City, but wants to know what is causing the odors at the lift station. Dave said the odor has gotten better because both the City of Shelley and the City of Ammon are monitoring the grease problem better. Councilmember Coletti explained that Husk Crowther said that the City of Shelley would be paying for 25% of the screens, so the cost to the City of Ammon would be $450,000 and not $600,000. Dave confirmed that the City of Shelley was a 25% partner and had committed to pay 25% of the screen cost. 4. Fiber Language for State Statutes: No discussion at this time. 5. City Property/3575 Brookfield Lane – Shop Use: Ron Folsom addressed the Council about how they would like to determine which departments would be using the shop at the Brookfield Lane property. The Council agreed that Ron has the authority to determine which departments can utilize the shop. 6. Misc.: Jennifer reported that at the III-A meeting today it was explained there are three additional large claims. Jennifer said the III-A is considering three alternatives; one is to be able to continue being self-funded, getting insured possibly through Blue Shield, or dissolution of the III-A. The III-A had significant claims right out of the chute, and they are doing more analysis on the pool. Jennifer said the Board is optimistic, but also needs to be realistic. Councilmember Kirkham said because we are locked in for three years, we are stuck with this. Jennifer asked the Council what they would like to do. Councilmember Kirkham said the City should get out. Councilmember Slack said the City should stay with the III-A. Councilmember Kirkham asked if the members of the III-A can shop as a group for another insurance company. The Mayor asked if the Council wants to stay with the status quo and ride it out another year or do we want to vote for a major company coming in. Jennifer explained that the III-A is looking at applying for funding for the incurred, but not received claims; all claims that have been received have been processed. There is talk there will be an addition significant increase if we are not are not able to get the financing. Councilmember Kirkham asked what addition significant increase means. Jennifer said 36%. Jennifer said our premium is $26,547.00. Jennifer requested the Council share their general feelings and trust her and the Mayor to make the best decision with the new information provided at the meeting. Discussion was tabled until the next meeting. The meeting adjourned at 7:08 p.m. _____________________________________________________ Steve Fuhriman, Mayor __________________________________________________ Ron Folsom, City Clerk 33 Council Minutes 10-11-2012 Page of