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06112009CouncilMinutes CITY OF AMMON CITY COUNCIL MINUTES - WORK SESSION THURSDAY, JUNE 11, 2009 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA – WORK SESSION THURSDAY, JUNE 11, 2009 – 4:00 P.M. DISCUSSION ITEMS: 1.Ted Hendricks – Wastewater Equivalent Residential User Analysis* 2.Gerald Williams-Wastewater Facility Planning Presentation (Lance) 3.Bartender Exception for DUI Requirements (Ron)* st 4.Eagle Point Div. 6 Light at Intersection of 21 and Crowley Update (Ron) 5.Budget 2009-2010 Discussion (Council 6/4) 6.Misc. MINUTES City Officials Present: Mayor Bruce Ard Councilmember Dana Kirkham (left 6 p.m.) Councilmember Lee Bean Councilmember Randy Waite City Clerk Leslie Folsom City Engineer Lance Bates City Planner Ron Folsom City Officials Absent: Councilmember Brian Powell Councilmember Rex Thompson Councilmember Kirkham opened the meeting at 4:20 p.m. at the City Office Building located at 2135 South Ammon Road. DISCUSSION ITEMS: 1. Ted Hendricks – Wastewater Equivalent Residential User Analysis*: Ted Hendricks explained some of the points of ERU (Equivalent Residential Unit) rates. The formula is based on 320 gallons per ERU for wastewater. Ted explained that the rates need to be increased for the businesses that are quite a bit off. Husk from Forsgren Associates explained that they are now comfortable with the cost figures with Project 1. They are familiar with the Project 2 projections and are comfortable with the figures. Project 3 has two parts to it, one is the Eastern Interceptor; the second is the second phase of the treatment plant. Project 4 is part of Basalt. The Council and Mayor have changed in Basalt, so they have to go through the evaluation again. They want to be able to do the fees on a Regional basis. The fees need to be raised and Ammon and Shelley need to do an increase. Treatment plant capacity is 4 million a day divided by 320 gallons per ERU. That means we can serve 12,500 ERU’s. If you take a cost of $50 million divided by 12,500, this would be $4000 per unit to build the system. He suggested raising the connection rate to $4000. Melaleuka bought in at $1600 and Shelley is at $2600. In the past, they had been recommending $3600. Councilmember Bean asked what the Country Club fees are in the County. Husk said they have been charging $2600. There is a draft agreement stating $2600, if they buy now. They have to get the water squared away before he can proceed on his development. Six years ago they had us estimated at 3000 ERU’s and Shelley at 1500. Kevin Harris from Forsgren Associates showed the Council the figures for the ERU and how it reflects with the City’s utility rate structure. Councilmember Bean said we have to be cognizant of low income housing Council Minutes – Work Session 6-11-09 Page 1 of 3 units. Husk said the ERU’s are based on industry standards from EPA, State Statute and ECIPDA. They took the standards to City of Ammon’s figures to come up with their chart. Our metered rates are charging 1 penny per 4 gallons and it needs to be 1 penny per 3 gallons. This means the metered rates are lower than non-metered. City of Ammon is now charging the equivalent of 4107 but they recommend 4463. The judicial confirmation was based on 4500 ERU’s. Husk said we need some more money to pay for Phase 2 of the treatment plant. Phase 1 can contain Shelley and Ammon, but we need additional capacity for growth in the areas. Phase 2 can be packaged as an additional item but if we spend all of Ammon’s money, then we won’t have match money or we need IBSD participation. IBSD has 6400 users and Ammon/Shelley has 6200 users. If IBSD comes in, then the rate comes down to $36.50. This is the same user rate from the past and we can accomplish the project. Husk stated that the commissioners have talked with IBSD and Forsgren has a relationship with IBSD with various projects and IBSD is starting to gain confidence in the services provided by Forsgren. IBSD is still hung up on the $88 monthly fee that someone had quoted in the past. Mayor Ard asked if someone could approach them with this rate, then have IBSD see what rate Idaho Falls will be at. Councilmember Bean said the talks need to come from the Regional Authority not Ammon. Husk said also from the County. Councilmember Bean said there is also the other sewer line we have agreed to with IBSD. Mayor Ard said maybe if they see these numbers, they will see that the line doesn’t need to be built. Councilmember Kirkham said Kevin and Leslie have worked on the numbers and we will hear from them shortly. Husk said if you take the flow to Idaho Falls, Ammon is closer to the figures they are promoting. Ted stated that the debt service has to be 10% which is required by DEQ. Councilmember Bean asked if the Regional will be billing us or will we pay our own bonds. Ted stated Ammon will pay their own. Councilmember Bean recommended that Leslie participate in all the figures for the ERU’s. Leslie explained our commercial accounts have been underpaying and we need to boost the commercial faster than residential, so the residential won’t take as big of a hit. The people who are being under billed are restaurants, hotels, schools, churches, and theaters which have a higher volume of people in a given area which create a lot of wastewater. We will also need to raise our metered rate, which will catch some of the other areas that are being undercharged. We can do this in two different ways. One would be to change the basic fee, which can be done quickly and get those funds we need right away. Two would be to establish an ERU rate increase and fully restructure the billing in Caselle. Husk/Lance/Leslie and Kevin will meet to go over the rates. Husk wants to talk with the Congressional Delegation to see if we can get more funds and he will need City support. Mayor Ard said he has talked with Laurel Ard. Leslie asked if you use an ERU, per connection fee. Councilmember Bean said you have to look at that but we do have competition. Councilmember Kirkham said Idaho Falls will have to upgrade also, so this might have stalled growth for now. Ray Ellis asked if we charge $4000 in equity buying fee and the monthly rate, is he buying equity twice. Husk said it will be a buy-in fee and capacity fee to accommodate the people. This will be justifiable and they can have the numbers, so that existing customers aren’t paying for growth. Councilmember Bean said the Council needs to consider and have the County to approve the impact area. Ron said he has contacted the County but he hasn’t heard from them. Council asked Ron to get this approved by the end of July. 2. Gerald Williams-Wastewater Facility Planning Presentation (Lance ): Gerald Williams stated that they deal with other areas than floodplains. He wanted to give the Council an overview of their company services. They do a lot with collection systems that other companies don’t offer. They have been in operation since 1992 and have been in Idaho Falls for 4 years. They are used heavily as a water resources sub-consultant to other engineers. They also do sub-consulting on water recourses. They do storm water, wastewater, floodplain management, and water engineering. Councilmember Bean suggested to Gerald that this information should be presented to Lance not the Council. Gerald stated he wanted his hour’s worth and proceeded with his presentation of the above mentioned services. 3. Bartender Exception for DUI Requirements (Ron)*: Ron presented the documentation to the Council and mentioned that Scott Hall has asked why we license bartenders and the purpose. Ron said Scott wanted the Council to decide if a DUI is something relevant to a bartender’s license. Idaho Falls felt a DUI should be regulated via management not Council. Ron said it should be more examined if they are a felon or sex offender, than someone like Jason who was here the other night. Councilmember Bean asked how does a time frame show commitment. Councilmember Kirkham asked what if we put the responsibility on the employer. Ron said Scott will still say; what is the point. Councilmember Kirkham had to leave at 6 pm, however, she stated before leaving she is alright with striking this. Councilmember Bean stated he is not willing to take it out. Councilmember Bean Council Minutes – Work Session 6-11-09 Page 2 of 3 suggested two DUI’s in a five year rolling period of time would be allowed, but any more and he is gone. Ron stated he will still argue we are regulating a DUI, which doesn’t affect his job. st 4. Eagle Point Div. 6 Light at Intersection of 21 and Crowley Update (Ron): Ron said he contacted Alan to see if we had accepted it and found that the City has not accepted it. Ron stated that he has now contacted the developer to let him know that it needs to be done. 5. Budget 2009-2010 Discussion (Council 6/4): Councilmember Bean recommended that the Council not discuss this item, because the Treasurer was not present. 6. Misc.: Mayor Ard reported on the meeting with Idaho Falls concerning Hitt Road. He said Idaho Falls doesn’t feel the Memorandum of Understanding is worth anything and it would not stand up in court. Idaho Falls feels they have invested $1.3 million in Hitt Road. Mayor Ard stated that Ammon is talking lane miles not amounts spent due to the time differences in road construction. Idaho Falls started telling Dana that Hitt Road was developed for Ammon Town Center. Also when Wal-Mart came in and they refused access to Hitt Road, they were so gracious to give the access to Hitt Road. Councilmember Bean suggested that the Memorandum of Understanding needs to be cancelled, but there are a few portions that he likes, in that we won’t annex in each other’s areas, but we can wait for the County. Councilmember Bean said Hitt Road will then be ours, which he is ok with. Mayor Ard said yesterday he got a call from Glen Pond and he stated Ammon was supposed to call and move some power poles. Mayor Ard told Glen the poles were not in Ammon. Councilmember Bean said they weren’t going to give us the Memorandum of Understanding, unless they had control of Hitt Rd. It was always Ammon’s intentions that the developer would develop Hitt Road. Ron said that Ball Ventures has still not dedicated their frontage to Idaho Falls. Idaho Falls would have to give equal access to their side. Councilmember Bean said we could say we will pay $150,000 for the intersection with a condition that the Memorandum of Understanding is cancelled. Mayor Ard said their bid is at $2.7 million now for Hitt Road. Councilmember Bean asked Lance to figure what two lanes on First Street would cost with the traffic signal. Mayor Ard said Chad was supposed to be furnishing us the figures. Ron said John is on a septic system and he came to Ammon, but he is in the IBSD service area. IBSD has told him that Idaho Falls won’t allow him to connect to IBSD. Idaho Falls stated he would need to de-annex from Ammon. Lance said from a public health and safety standpoint, that they would have to allow him to connect to IBSD. Councilmember Bean said de-annexation would have been a direct violation of the Memorandum of Understanding. Councilmember Bean asked Husk to talk with Chad Stanger and find out what’s coming up in the future for their sewer lines. Mayor Ard said Mayor Fuhriman said it was well over $50 million for their sewer improvements. Husk stated in the mediation they have done a limited amount of scope of it with IBSD. Mayor Ard said they are hoping that IBSD does change and it is tied to the $4 ½ million project. Lance said Kevin and he have gone over several options. Husk said the planning task is all he wants to work on until Ammon Council says to go do it. Mayor Ard gave Leslie the contracts to hold until further notice. Council requested that Leslie create a policy for Council packets with deadlines for packet submittals and presentations. Councilmember Bean motioned to adjourn. Councilmember Waite seconded. Roll Call Vote: Councilmember Bean – Yes and Councilmember Waite – Yes. The motion passed. The meeting adjourned at 6:45 p.m. ________________________________________ C. Bruce Ard, Mayor ____________________________________ Leslie Folsom, City Clerk Council Minutes – Work Session 6-11-09 Page 3 of 3