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10082009CouncilMinutes-WS CITY OF AMMON CITY COUNCIL MINUTES – SPECIAL MEETING AND WORK SESSION THURSDAY, OCTOBER 8, 2009 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA – SPECIAL AND WORK SESSION THURSDAY, OCTOBER 8, 2009 – 4:30 P.M. ACTION ITEMS: 1.Award Contract Eastern Interceptor Line – Bodiford Construction (Ted)* DISCUSSION ITEMS: 1.Park/Recreation Commission Proposal (Ken)* 2.City Projects – Building Dept. (Charlie)* 3.Misc. MINUTES City Officials Present: Mayor Bruce Ard Councilmember Dana Kirkham Councilmember Lee Bean (via phone until 6 p.m.) Councilmember Randy Waite (arrived at 6 p.m.) Councilmember Rex Thompson Councilmember Brian Powell City Clerk Leslie Folsom City Engineer Lance Bates City Officials Absent: City Planning Director Ron Folsom Mayor Ard opened the special/work session meeting at 5:05 p.m. at the City Office Building located at 2135 South Ammon Road. ACTION ITEMS: 1. Award Contract Eastern Interceptor Line – Bodiford Construction (Ted)*: Husk Fowler, nd Forsgren and Associates, 350 N. 2 E. addressed the Council. Husk presented the bidders evaluation table. He explained the Eastern Interceptor has been separated into three segments. The original six contractors severely imbalanced their bids. Five contractors were $16, $18, $20, $68 and $70 per foot. The other contractor quoted $90 to install 42” pipe and $40 to install 48” pipe. They chose the more reasonable number for each line item. By using the reasonable numbers, the estimate would be approx. $4.9 - $5 million. He took segment C under the current design and came up with $4.6 million, which is because the line gets shallower and there is no lift station in it. Segment B has a lift station at the crossing on Highway 91. Segment A has a lift station dropping off the hill. He looked to see if we could do this without a lift station and we can, but with a few caveats. The easement situation is the reason we were looking at a lift station. They started to look how far up the road they would need to keep with the gravity system; however, it wasn’t as deep as they wanted, so they needed another lift station. Husk covered the user rate worksheet. He showed if IBSD comes back in, how it would affect the project costs. They are showing the current rate for the City of Ammon would be $43.53 per ERU, so we can cover the cost of this project, but if IBSD comes back in it would make it $39.76. Forsgren has gone back and looked at the costs and if they raise the line approximately 8 feet, this would cause more lift stations to come into the line rather than one on the main line and it would lower the ERU by $1.25. However, not raising the line allows a deeper more ideal line in the long run, which is the best line. They looked at a cost saving measure on Segment A, which is a postponement of cost, which was to take the lift station at the bottom of the hill, move it up to the canal off the hill and eliminate a 48” diameter gravity 10-8-09 City Council Minutes Page 1 of 4 pipe. This design would then use the existing gravity line that Shelley currently has, to get to the line. However, in the future, we will need more capacity and we would be forced to run a main line to handle the capacity. This change would save $900,000 in segment A, so we would be at $3.4 million, however, the $900,000 will get spent in the future to fix these temporary changes. They looked at the diameter for Segment A and B at the same $40.00 per foot, which is for pipe material for 30 and 36” pipe. The 42” pipe then becomes $47.57 with the 48” at $54.06, so there is a savings by using a reduced pipe size. When you look at the overall impact, times 13 miles, it will bring the price down. Councilmember Thompson asked Forsgren to explain the difference in pipe sizes for capacity. Dave Noell stated you need 42” for Ammon and Shelley; however, you will need 48” if IBSD comes in. Husk said IBSD has twice the flow of Ammon and Shelley combined. Councilmember Kirkham asked what the likelihood of IBSD coming in is and are we any closer to accomplishing this. Husk said we are a lot closer, but we are still far apart. IBSD is asking questions and wants to tour the treatment plant. Councilmember Kirkham said we need to move forward, as if they aren’t. Mayor Ard asked if we cut IBSD clear out, does it cost $1 million. Husk said yes. Husk said it is approx. $1 per ERU. Councilmember Kirkham said she would like someone to be more assertive and she doesn’t think the City should be the ones to make contact. Husk said he thinks Forsgren needs to approach them. Segment A doesn’t affect this issue, at this time. Husk is more comfortable now, since we have the true costs. Councilmember Thompson asked what the original bid was on the interceptor. Husk said it was between $15 – 16 million. Councilmember Powell asked about the operation and maintenance on the line. Husk said line 12 shows O&M for Ammon. Ted said Willie will be meeting with DEQ on this project. He strongly encourages bringing the ERU rates in now, since every month the City is losing revenue. There was quite a discrepancy in the bids and we need to get the other section bid, so we can take immediate advantage. Mayor Christensen has already adopted the ERU’s and with the exception of one of the schools, it is pretty accurate. He feels they can come up with a fair figure. This line will last 75 years. Swede said the easement problem would necessitate having to build the lift station or having to rebuild the line, if IBSD comes on board. Councilmember Thompson said originally it was all gravity fed, but now we are using lift stations. What are the costs to maintain them? Husk said he doesn’t have an exact number, at this time. Mayor Ard asked about the three lines. The red line is with the lift station, the green line is how it is currently designed with a lift station and the blue line is the gravity system that was originally conceived. Lance said the green line would probably allow Woodland Hills to be gravity fed all the way down. The red line would probably not allow that to happen, because there is 8 feet of vertical distance between the red and the green. Leslie said at the conference in Boise, the majority of clerks stated their rates were approx. $75 - $80 a month for water/sewer/garbage, with one at $68. Idaho Falls is the anomaly, which was $36 and now it is $41. Lance is concerned with the operations and maintenance of the City of Ammon’s portion being at $7 per ERU. He would like to know where this number came from and the backup for the figure. Husk said it was an estimate. Lance is concerned about the capital outlay to get the equipment. Husk said that is not included. Mayor Ard said that is why we have to be careful with the capital reserves. Lance said it will probably be three vehicles and six people and a sewer jet truck, possibly a camera truck, a service truck with two more people per vehicle for maintenance. Mayor Ard said whether it’s done by the Region or Ammon the cost will still be there. Husk said the figure reflects the average City out there. Husk said Rexburg’s is 20% of the collection expense. Lance said he has talked with John and this really isn’t representative of actual costs. Dave Noell said right now we have two lift stations proposed and unless we can find a way to get property, we have to have the lift stations. Councilmember Thompson asked this late of the game, why we didn’t have the easements. Dave said at about 90% of design the County approved the zoning change and the owner sold the property to a developer. Councilmember Thompson asked why the County didn’t go along with this. They don’t feel the lift station is that bad of an idea, because they want to be able to expand to the west and to the south. Councilmember Thompson said regarding Woodland Hills he recalls there is already a stubbed out line there that comes out between the church property and the park and even if we were to go with a higher rate, you could put a lift station there just for Woodland Hills and get rid of the one that is on the pressure grade. If Woodland Hills is going to gravity flow, it is going to go out the line between the church and the park. If it was to go right to the main line and you put in a lift station that would raise it 4 feet, but it would cost a lot less. Lance said no you 10-8-09 City Council Minutes Page 2 of 4 would use the same lift station and re-pipe it. Mayor Ard said that today we lift it from Woodland Hills to Ross and then lift it again. Councilmember Bean closed on the phone at 6 p.m. and Councilmember Waite came in at 6 p.m. Husk presented a pie chart with the ERU distribution. The project costs $3 million more, however, this doesn’t account for the pipe savings. With IBSD, the plant would have to be expanded. Councilmember Powell asked how long it takes to add a phase. Husk said it would take 2 ½ years. Ted said DEQ felt IBSD could get loan money, as well. It would still be $40 with a brand new plant. IBSD would have to bond also. Councilmember Powell asked if IBSD would have to pass a bond. Ted said yes. Ted said we have close to 24 months to obtain the required funds. If you increase current rates, you will collect the needed amount. Leslie said we did raise the rate from $25 to $31 to help build the reserves. Councilmember Thompson asked if the bid from Bodiford includes the lift station at the bottom of the hill and added that getting the 18” line is not solving anything. Mayor Ard said nothing truly matters on this vote today, what will matter is the next section. Ted said as the lines go in, there will be opportunities for economic development projects. We were able to get a million dollars to assist on the other interceptor line, but some of that went to help with the developers. Mayor Ard said we need to take the bid with the lift station and fix the pipe problem. We are talking less than $1 million and we are going to spend more than that at some point anyway. Lance said it needs to be evaluated for two different reasons, which are, Woodland Hills and the two inch line coming up Ammon Road and tying in with the 30” line we just put in down to Ammon Road. We would need to make sure if we shallow it up to the red line, will we still make the Ammon/Sunnyside intersection. Mayor Ard said we need to know that. Husk will get this information. Mayor Ard said we need to reward the bid to A or B. Lance said it will still be subject to the board in Shelley. Councilmember Kirkham motioned to award the contract for the Eastern Interceptor line to Bodiford Construction for $4,293,926, subject to approval of the Regional Board. Councilmember Powell seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Powell – Yes, Councilmember Waite – Yes, and Councilmember Thompson – Yes. The motion passed. Mayor Ard emphasized that we really do need to look at and make sure it will tie in correctly at Ammon Road and Sunnyside. Dave said with the green line, a lift station will go away but not with the red line. Mayor Swede Christensen, City of Shelley said what you have just done is paramount with what Mayor Ard and I have been working on for years. In approving the lift station rather than having to rework the whole project, it completes the regional concept, in that had we moved that lift station and somebody to the west of Shelley had decided to hook up to it, we would have been forced right back to square one. He appreciates what the City of Ammon has done. The facility is named the way it is because it is located in the Oxbow River. The administrative offices and the lab are great facilities. There will be a 12 by 8 foot fish tank that will be serviced with water coming from the plant. Dave Noell said the way the bids are, if you decide to go with the green line and it comes in higher than we had hoped for, there is an opportunity, at that point, to simply raise the line, and they can modify the bid form and award from there. Ted said he was asked if we could use some of the water revenue bond money for meters then we could possibly talk about the reserve funds, but you can’t take DEQ money for this. Lance asked about the reading equipment and tower. Ted said the bond money would probably be usable on anything to do with meters. The City could maybe replenish the reserves from funds that have already been spent, in order to enable the City to pay for the meters. DISCUSSION ITEMS: 1. Park/Recreation Commission Proposal (Ken)*: Tabled until a later date. 2. City Projects – Building Dept. (Charlie)*: Tabled until a later date. 3. Misc.: Nothing to report. 10-8-09 City Council Minutes Page 3 of 4 Councilmember Kirkham motioned to adjourn. Councilmember Powell seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Powell – Yes, Councilmember Thompson – Yes, and Councilmember Waite – Yes. The motion passed. The meeting adjourned at 6:30 p.m. ________________________________________ C. Bruce Ard, Mayor ________________________________ Leslie Folsom, City Clerk 10-8-09 City Council Minutes Page 4 of 4