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04022009CouncilMinutes CITY OF AMMON CITY COUNCIL MINUTES THURSDAY, APRIL 2, 2009 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA THURSDAY, APRIL 2, 2009 – 7:30 P.M. CALL TO ORDER: Mayor Bruce Ard at 7:30 p.m. Pledge of Allegiance – Councilmember Bean Prayer – Councilmember Ellis MINUTES: March 5, March 12, and March 19, 2009 ITEMS FROM MAYOR: CONSENT AGENDA: Business License Accounts Payable – Exhibit A ITEMS FOR/FROM TREASURER: PUBLIC HEARINGS: None PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: ACTION ITEMS: 1.Change Order Well 11 (Lance) 2.Change Order #1 Well 10 (Lance) 3.Change Order #2 Well 10 (Lance) 4.Award Contract - Sunnyside Sewer Extension (Lance/RMES) 5.Award Contract - Well 9 Booster Station (Lance/Keller Assoc) 6.Under $5 - Public Works Tractor Requesting Destruction (Lance) Public Works Mower Requesting Destruction (Lance) DISCUSSION ITEMS: 1.Bank Request for Proposal (Dana) 2.Misc. MINUTES City Officials Present: Mayor Bruce Ard Councilmember Dana Kirkham Councilmember Lee Bean Councilmember Randy Waite Councilmember D. Ray Ellis City Attorney Scott Hall City Assistant Rachael Eldridge City Planning Director Ron Folsom City Engineer Lance Bates City Officials Absent: Councilmember Brian Powell Councilmember Rex Thompson City Clerk Leslie Folsom City Treasurer Jennifer Belfield 4-2-09 Council Minutes Page 1 of 7 Mayor Ard opened the meeting at 7:35 p.m. at the City Office Building located at 2135 South Ammon Road. Councilmember Bean led the Pledge of Allegiance and Councilmember Ellis offered a prayer. MINUTES: March 5, 2009: Councilmember Kirkham motioned to accept the minutes for March 5, 2009 as presented. Councilmember Ellis seconded the motion. Roll call vote: Councilmember Kirkham – Yes, Councilmember Ellis – Yes, Councilmember Bean – Yes, and Councilmember Waite – Yes. The motion passed. March 12, 2009: Councilmember Kirkham made the motion to accept the minutes of March 12, 2009 as presented. Councilmember Waite seconded the motion. Roll call vote: Councilmember Kirkham – Yes, Councilmember Waite – Yes, Councilmember Bean – Yes, and Councilmember Ellis – Yes. The motion passed. March 19, 2009: Councilmember Ellis stated that paragraph 2 where it says he stated there was no reason to put the item on the shelf – should have there was no reason NOT to put the item on the shelf. Councilmember Kirkham motioned to accept the minutes for March 19, 2009 with the above stated changes. Councilmember Bean seconded the motion. Roll call vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Ellis – Yes, and Councilmember Waite – Yes. The motion passed. ITEMS FROM MAYOR: None CONSENT AGENDA: CITY OF AMMON BUSINESS LICENSE CONSENT AGENDA Thursday April 2, 2009 License applications, carrying the required documents, pending approval of the City Council: GENERAL BUSINESS LICENSE: 1.NEWGENERAL BUSINESS LICENSE APPLICATION: A.Cheeseburger Factory – Restaurant – 2523 E. Sunnyside Rd. th B.Wanstrom, Ashley – Daycare Employee/Sunny Days Daycare – 4366 E. 17 Street 2.RENEWALBUSINESS LICENSE APPLICATION: th A.Wally’s Auto Care – Automotive Repair – 3193 E. 17 Street th B.Aspen Ridge Eye Care – Optometry – 3456 E. 17 Street, Suite #150 th C.Urban Chic – Retail Sales – 2797 S. 25 E. HOME OCCUPATION PERMITS: 1.RENEWAL HOME OCCUPATION PERMITS: A.Window Elegance – E-Commerce – 4251 Willow Canyon Drive LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: 1.NEW LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: th A.Dial, Kenneth Bryce – Bartender/T.G.I. Friday’s – 2265 S. 25 E. 2.RENEWAL LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: th A.Loftus, Cali B. – Bartender/T.G.I. Friday’s – 2665 S. 25 E. Business License: Councilmember Bean motioned to accept the consent agenda as presented. Councilmember Ellis seconded the motion. Roll call vote: Councilmember Bean – Yes, Councilmember Ellis – Yes, Councilmember Kirkham – Yes, and Councilmember Waite – Yes. The motion passed. Accounts Payable – Exhibit A: Councilmember Bean motioned to accept the accounts payable as presented. Councilmember Kirkham seconded the motion. Roll call vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Ellis – Yes, and Councilmember Waite – Yes. The motion passed. 4-2-09 Council Minutes Page 2 of 7 Scott Hall said we have filed suit on the flood plain study against Foothill Properties. He is being told by the Foothill’s attorney that they are probably a bankrupt entity. Scott also wanted the Council to know that there is a contract the City is paying on with Williams Engineering and one of the partners the City may never see anything out of. Councilmember Ellis asked what their share was. Ron said $50,000. Councilmember Ellis asked if we got any of it. Councilmember Kirkham said when the land develops we could recoup some then. Ron said there are other areas that will be taken out of the flood plain. He would think, at some time once we know what it costs to do the project, we will know how much an acre is worth. Scott said at some point we may want to go back to the other two partners, the County and Rockwell and see if they want to share an equal portion of that. ITEMS FOR/FROM TREASURER: Councilmember Ellis said Jennifer prints him an overtime report for Public Works but on the financial statements there is never any money allocated to overtime. Lance said right now it just goes to salaries and he hasn’t received a definitive answer to why it goes to salaries and he wants to be able to track it.Councilmember Kirkham stated she will bring this to Jennifer’s attention. PUBLIC HEARINGS: None PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: None ACTION ITEMS: 1. Change Order Well 11: Lance said the price has come back as amended. The engineer of record, Keller and Associates, wants to go back to the contractor and get more information to see why he felt it needed to be amended from the first numbers. It’s not compatible with the other change order on the other well house. This appears to be a lot higher and they are essentially the same kind of upgrade on the electrical and the pumps. Lance stated he wants to get a better idea of why the number is so high. Councilmember Bean made the motion to table the change order for Well #11. Councilmember Kirkham seconded the motion. Roll call vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Ellis – abstained, and Councilmember Waite – Yes. The motion passed. 2. Change Order #1 Well 10: Lance said this change order was because when the pipes were put in a couple years back by HK there was a T placed to tie into the future well, but in a location other than where the well actually ended up being located. This is incidental piping to increase the length of piping and some fittings to get lined up with where the well is actually located. It is for $4,197. Councilmember Waite motioned to accept change order #1 for Well #10 as presented. Councilmember Kirkham seconded the motion. Roll call vote: Councilmember Waite - Yes, Councilmember Kirkham – Yes, Councilmember Bean – Yes, and Councilmember Ellis – abstained. The motion passed. 3. Change Order #2 Well 10: Lance said this involves a couple different tanks. One is the result of the agreement with Rockwell for architectural control and out of the $244,000 increase there is approximately $140,000 tied to the building increase. The other part is the electrical pump and upgrade which is roughly $105,000. Lance stated he and Jared Bragg met with Vern Clark and carefully went through the numbers. It’s a lot of money but he doesn’t feel it’s out of range. Mayor Ard asked Lance how come our design is off so far off on both of them. Lance replied part of the reason is due to Tom Woods’s design of the well. He had to make an assumption based on what he thought we could get out of the well, which was about 2500 gallons per minute which is what was bid out. We have gotten more out of the wells, which is a good thing, but there are upgrade costs associated with that. Councilmember Bean asked Lance if this was being funded out of our bond. Lance said no it is not. It is coming out of our reserve funds. Councilmember Ellis said there were a couple things that concerned him. They are showing $31.00 per square foot for masonry work. He made some calls and said the cost of block is about $2.15 sq. ft. with contractors installing this split face block, with the mortar excluding the rebar. He just can’t justify the cost. Councilmember Kirkham said it’s a significant amount of money. Lance said they could go back to them and have them get 3 more bids. 4-2-09 Council Minutes Page 3 of 7 Councilmember Kirkham motioned to deny the Change Order #2 for Well #10. Councilmember Waite seconded the motion. Roll call vote: Councilmember Kirkham – Yes, Councilmember Waite – Yes, Councilmember Bean – Yes, and Councilmember Ellis – abstained. The motion passed. Councilmember Bean asked Lance to pull up the financials for the end of February and our capital outlay right now is $3,437,000 but he would like a breakdown at the next work session to find out what that entails. He said that is a substantial amount of money and is probably intended to be offset by the revenues. If you take a look at the revenues by our bond revenues, this is not going to be. We are not going to have DEQ funding coming through here. Everything that has DEQ funding should not be coming through the budget then going elsewhere. If anything is in there, that should be coming out of DEQ funding, we should pull it out of there. Otherwise, we are going to end up pulling it out of reserves at the end of the year and $3,000,000 will eat up the reserves. 4. Award Contract - Sunnyside Sewer Extension: Lance said last Friday they bid out 2 projects, the first of which was the Sunnyside sewer at Hawks’ Landing. This is the 30 inch line from Majestic, down Crowley Road, down Sunnyside Road to Ammon Road. We had 15 bidders but one of the bidders did not have the entire addendum acknowledged, so we did not read his bid. The price range went from the high of $1,013,624 to the low bid of $531,978. The apparent low bid, Edstrom Construction, had called back within 2 hours of the bid opening to say they had made a mistake in the bid. There is a letter from Edstrom Construction in the packet that talks about what the mistake was. The packet also contained instructions from Title 54 of Idaho State Code dealing with mistakes that are made, and a handout from the Purchasing Department of the State of Idaho and how they deal with mistakes. Lance and Mitch Greer with RMES recommend pulling the bid, to not consider it a valid bid and to award the bid to the next lowest bid which is Sommer Construction at $667,099.50. The error was made at $1.05 per cubic yard instead of $105.00 per cubic yard which is a difference of about $99,000. Scott reviewed the statute, noting that there must be 5 day notice, a clerical or mathematical mistake made, and the mistake has to be material. Scott said if they meet Item C then we can acknowledge that a mathematical mistake was made and the mistake was material. The City would then allow them to withdraw their bid and go to the next low bidder or the City can reject all bids and rebid. If the City finds they don’t meet Item C and they choose not to go forward, they forfeit the bid bond. Mitchell Greer RMES said if you look at the bid summary, you can see how you can correct a bid summary and make minor adjustments according to the code. This would not fall under this category because it is fairly substantial. RMES was contacted as soon as they got back to the office, that there was a problem. He asked what the error was but he wasn’t talking to the actual person who did the bid. Mitchell feels that Edstrom should tell the Council how they arrived at the bid. Mitchell stated the guy that was bidding the project fell ill and was out of the project. Some of the other people picked up while he was gone and that’s how the mistake was made. They did submit a letter and it seems like a logical mistake, but you would not be able to tell from their bid documents that there was a mistake because they didn’t break out the item of flowable fill as a separate item. It was incidental to the sewer pipe installation. Their sewer pipe is substantially different. th Councilmember Bean said the letter indicated that they had a conversation on March 30, is that the first time he had heard from them? Mitchell replied that yes he had tried to contact them, but couldn’t get anyone in the office, but they contacted him later that afternoon. He requested they send a written analysis of their mistake. Councilmember Bean asked Mark Deneau when they first realized they had a mistake on the bid. Mark Deneau of Edstrom Construction said he was working from home on the bid because he had been sick. They had been waiting on the pipe prices to come down. The bid had gone back and forth between the main office and his office at home. At that point when the bids were read, he knew immediately he had a problem. Councilmember Bean asked if that was the first time he noticed there was a problem with the bid. Mark replied yes that by the time the bid switched from his hands back to Edstrom the mistake had been made. Mark said he was so sick he shouldn’t have been looking at the bid. Mayor Ard asked Mark did he realize that the problem was there after they got the call saying they had the bid at that number. Mark said yes, Edstrom had called and told him he was $100,000 off. Scott Hall stated the vendor submitted timely proof and clearly demonstrates that a mistake was made of nearly $104 a lineal foot error, and the request was submitted March 30, and has complied with Idaho Code 54- 1904C. Councilmember Kirkham made the motion the Council finds they have met the qualification of C-2, submitted timely proof of evidentiary value that clearly and convincingly demonstrates a mistake was made with an item of $1.05 that should have been $105 which meets the requirements of 54-1904C and they have requested to 4-2-09 Council Minutes Page 4 of 7 withdraw their bid and we accept relieving them of their bond. Councilmember Bean seconded the motion. Roll call vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Ellis – abstained, and Councilmember Waite – Yes. The motion passed. Scott said he would recommend before you move to the second low bid, because there is an underlying obligation by Hawks’ Landing, that you get Hawks’ consent because to accept the second low bid, because it’s going to be a financial responsibility to him versus the low bid. Lance stated he has an email from Jeff Hawk, to that effect, agreeing with the award to the next lowest bidder. Councilmember Bean said if we accept the bid from Sommer at $667,000, what would you estimate for the total cost of that project? Lance said there is roughly $50,000 to $55,000 worth of design. The overall cost would be a little less than 3 million dollars. Councilmember Ellis asked how much could we potentially save by rebidding and do we have the time frame to rebid. Mitchell said there is a potential to rebid but they wouldn’t allow Edstrom to rebid, but all the contractors know the bid now. The other issue is the timing because it will take at least another month to rebid. Sommer was at $667,000.00. Jerome Bowen was at $697,000, and Depatco was at $725,000. Councilmember Bean made the motion to approve Sommer Constructions bid of $667,099.50 and award the contract to them for the Sunnyside Sewer extension and authorize the mayor to sign the notice of award when it’s prepared. Councilmember Kirkham seconded the motion. Roll call vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Waite – Yes, and Councilmember Ellis – abstained. The motion passed. 5. Award Contract - Well 9 Booster Station: Scott said he has only seen this happen five times. Lance said they opened the bid for Well #9 booster station on Friday. The apparent low bidder was J&S Construction for $ 534,500 with the range going up to $737,501. Shortly after the bid, they were notified, there was an error for the apparent low bid. They had notified us within the 5 days that there was a problem. They left out a VFD control on the pump that was within their electrical price. This is not on the face of the document and is not evident from looking at the bids that there would be a problem. Mayor Ard asked why the VFD was left off. Lance said there seemed to be a discrepancy on the plan. Jeff Freiberg 356 W. Sunnyside stated after the bid opening when they saw the difference in bid quotes, they reviewed their price again. It was, at that time, that the note at the bottom of the Arco Electric quote was noticed. The note said VFDs to be supplied by others but J&S thought the VFDs were going to be provided by Arco Electric. There was $49,000 worth of VFDs that wasn’t in the bid price. Councilmember Bean asked who discovered the error. Jeff said it was J&S that discovered the error and called him Monday morning. Councilmember Bean asked what caused J&S to believe that there was an error. Sherry Hawk with J&S Construction stated Jerry Scott is the owner and he is the one that does the bids. They received bids for the electrical through the bid service in Boise and they reviewed the electrical. At the top it lists electrical sections and lists all of the sections that are in the bid document in the spec book. Jerry reviewed it and saw that they did not circle or slash any of those, looked at their price, reviewed 11 or 12 other electrical bids and felt confident it was there. They always go back in after a bid to make sure there are no mistakes. During the review they discovered the VFD’s were provided by Pump Tech. He started to review the same day after the bid since they were so low. Scott asked Lance if we are going to get the same error from Depatco. Lance replied Depatco was contacted and asked whether their price included VFD’s. Depatco said yes but regardless they would stand behind their bid. Councilmember Kirkham said this is a very similar situation. Councilmember Kirkham motioned that they meet the requirements for C-2, statute 54-1904C, they have requested to withdraw their bid, and we accept their withdrawal and release the bid bond. Councilmember Bean seconded the motion. Roll call vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Waite – Yes, and Councilmember Ellis – abstained. The motion passed. Councilmember Bean asked if Lance was comfortable with the $50,000 difference between J&S and Depatco. Lance said he asked Jeff to contact them. He thinks that if Jeff is comfortable with it, he would be comfortable with it too. Councilmember Kirkham said J&S said there was a $50,000 error, however, there is actually only a $10,000 difference in their bids and she is concerned because we are at a point where we could reject the bids and re-bid it. Jeff Freiberg said we have had lots of discussions and there is really no way to know what they have got in their numbers as they go down the bid form. The only way to move forward is we have contacted them and the VFD’s are in the plan. If they signed the notice of award and the contract, then they have to put the 4-2-09 Council Minutes Page 5 of 7 VFD’s in for the price here so there aren’t going to be any change orders for that. J&S didn’t think they could do it for $534,000 but Depatco thinks they can do it for $543,000. Scott said a good strong message needs to be made to the contractors by the Engineers that this is not acceptable and it needs to stop. Councilmember Bean made the motion to award the contract for Well #9 booster station to Depatco for $543,250 and authorize the Mayor to sign the notice of award when it is prepared. Councilmember Waite seconded the motion. Roll call vote: Councilmember Bean – Yes, Councilmember Waite – Yes, Councilmember Kirkham – Yes, and Councilmember Ellis – abstained. The motion passed. 6. Under $5 - Public Works Tractor Requesting Destruction: Public Works Mower Requesting Destruction: Councilmember Bean motioned to declare the equipment that is described in the agenda to be declared as valueless and allow it to be disposed of. Councilmember Kirkham seconded the motion. Roll call vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Waite – Yes, and Councilmember Ellis – abstained. The motion passed. DISCUSSION ITEMS: 1. Bank Request for Proposal: Councilmember Kirkham has some questions with the RFP’s regarding how fair it is to allow one bank to make adjustments and not giving the other banks the same options. Scott said now that we understand what we really want from the banks why couldn’t we just go back and tell them what we want. 2. Misc: Lance stated he had some updates on the projects for the water line extension. They have most of Crowley Road done with the walls on Well #11 starting to go up. There have been more delays on Well #10. The walls have not started to go up yet, they had a problem with the floors and they have been out of town on a scheduled vacation. Ron said he has been working on getting the lot transfer for Tank 8 lots. We have to transfer some lots with Riverbend Manor. We agreed that we needed a title search and wanted a title policy for Lot 7 and Lot 5. Riverbend told Ron Lot 5 belonged to the City and we didn’t need a title policy for that lot. Council needs to decide if they want to do a title policy on Lot 5. Councilmember Bean asked what we were doing with Lot 5. Ron said we are giving Lot 5 to Ben in exchange for Lot 7. Scott said we own Lots 5 and 6 but we need Lots 6 and 7. We are giving Lot 5 away and receiving Lot 7. Lot 7 will have a title policy so we know it’s clear. The question is we bought a title policy on Lot 5 when we took it 2 years ago, do you want to do an additional title policy now as you convey it. Mayor Ard advised Scott to talk to the owner and see if they want it. It’s not that big of a thing, if not fine. Ron said the ordinance on door to door sales is there but you have to post it on your home “no solicitors.” The Council decided that the ordinance need reworked. Scott inquired about the kids who try to sell oranges for the Baseball Clubs, etc. Scott stated he is concerned where the City will draw the line. Scott stated he wondered if there was a way to limit it to only the residents in Ammon. Councilmember Bean said he will get the Green River Ordinance to Ron for him to try and work on with Scott. Ron presented a Farmers Market draft policy to the Council. Ron advised the Council that he would like to adopt a policy so the Council would be able to find that it’s compatible with the zone and follows the suggested criteria. Councilmember Bean stated his concern is having farmers markets here, there and everywhere. Ron stated that’s why he’s recommending this as a policy. The City would license each individual vendor, as well as, the promoter. Ron suggested charging $20 for the vendor licenses. Council recommended that Ron come up with the policy. Councilmember Bean stated that he has only received two Councilmember’s suggestions for the public safety committee. He advised the Council if he doesn’t get the names, he will select up to 9 members. 4-2-09 Council Minutes Page 6 of 7 Councilmember Ellis motioned to adjourn. Councilmember Waite seconded. Roll call vote: Councilmember Ellis – Yes, Councilmember Waite – Yes, Councilmember Bean – Yes, and Councilmember Kirkham – Yes. The motion passed. The meeting adjourned at 9:28 p.m. ________________________________________ C. Bruce Ard, Mayor ________________________________ Leslie Folsom, City Clerk 4-2-09 Council Minutes Page 7 of 7