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03.07.2019CouncilAgenda - Packet 2135 SOUTH AMMON ROAD CITY COUNCIL-AGENDA THURSDAY, MARCH 7, 20197:00 P.M. CALL TO ORDER: Mayor Sean Colettiat 7:00 p.m. Pledge of Allegiance CouncilmemberSlack Prayer CouncilmemberTibbitts ITEMS FROM MAYOR: CONSENT AGENDA: AccountsPayable Exhibit A Minutes: January 17, 2019, &January 24, 2019 PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA:(5 Minute Limitation): PUBLIC HEARINGS:None ACTION ITEMS: 1.Resolution 2019-004R Fee Resolution -Water Meter Rates, Late Fees for Accounts Receivable 2.Resolution 2019-005RMeter Installation Plan and Policies DISCUSSION ITEMS: 1.RFP Water Meter Vault Upgrade, Repair, and/or Installation Presentation of Findings 2.Misc. EXECUTIVE SESSION: 1.Personnel Evaluations -Idaho Code 74-206 (1) (b) 2.Pending Litigation -Idaho Code 74-206 (1) (f) INDIVIDUALS NEEDING ACCOMODATION DUE TO DISABILITY MUST CONTACT CITY HALL NO LATER THAN 1:00 P.M. THE DAY BEFORE THE SCHEDULED MEETING TO ARRANGE ASSISTANCE 1 of 52 2135 SOUTH AMMON ROAD CITY COUNCIL MINUTES THURSDAY, JANUARY 17, 2019 AGENDA: CITY OF AMMON CITY COUNCIL-AGENDA THURSDAY, JANUARY 17, 20197:00 P.M. CALL TO ORDER: Mayor Sean Colettiat 7:00 p.m. Pledge of Allegiance CouncilmemberWiscombe Prayer CouncilmemberWessel MINUTES:December 13, 2018 ITEMS FROM MAYOR:PROCLAMATION: Martin Luther King, Jr. Day of Service CONSENT AGENDA:Accounts Payable Exhibit A Planning and Zoning Commission Appointment of Jay Danielson Term Expiration of December 31, 2019 PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA:(5 Minute Limitation): PUBLIC HEARINGS:2019-005 Residential Water Service Fees for Metered and Unmetered Locations ACTION ITEMS: 1.Ordinance 616 & Summary Creation of Fiber Optic Local Improvement District No. 3 2.Godfrey Subdivision Final Plat 3.Godfrey Subdivision Development Agreement DISCUSSION ITEMS: 1.Misc. MINUTES City Officials Present:Mayor Sean Coletti Council President Brian Powell Councilmember Rex Thompson Councilmember Russell Slack Councilmember Byron Wiscombe Councilmember Craig Tibbitts Councilmember Scott Wessel City Attorney Scott Hall City Administrator Micah Austin City Clerk Rachael Sanders City Engineer Tracy Bono IT Director Bruce Patterson Public Works Director Ray Ellis City Planner Cindy Donovan City Treasurer Jennifer Belfield Building Official Charlie Allen City Officials Absent:None CALL TO ORDER:Mayor Sean Coletti opened the meeting at 7:00 p.m.at the Ammon City Hall Building located at 2135 South Ammon Road. Councilmember Wiscombe led the Pledge of Allegiance. Councilmember Wessel offered a prayer. MINUTES:December 13, 2018:CouncilmemberSlackmoved to approve the minutes, as presented. CouncilmemberPowellseconded. Roll Call Vote: Councilmember Slack Yes, Councilmember Powell Yes, Councilmember Wessel Yes, Councilmember Thompson Yes, Councilmember Wiscombe Yes, and Councilmember Tibbitts Abstain (absent). The motion passed. ITEMS FROM MAYOR:PROCLAMATION: Martin Luther King, Jr. Day of Service Whereas, Dr. Martin Luther King Jr. devoted his life to advancing equality, social justice, and opportunity for all, and challenged all Americans to participate in the never-ending work of building a more perfect union; and City Council Minutes 01.17.2019Page 1of 7 2 of 52 Whereas, Whereas, the King Holiday and Service Act, enacted in 1994, designated the King Holiday as a national day of volunteer service; and Whereas, since 1994 millions of Americans have been inspired by the life and work of Dr. Martin Luther King Jr. to serve their neighbors and communities on the Martin Luther King Day; and Whereas, serving on the Martin Luther King Jr. Day is an appropriate way to honor the principals of Dr. King, meet local and national needs, bring our citizens together, and strengthen our communities and nation; and Whereas, the Martin Luther King Jr. Day of Service is the only federal holiday commemorated as a national day of service, and offers an opportunity for Americans to give back to their communities on the holiday and make an ongoing commitment to service throughout the year; and Whereas, Day of Service projects are being organized by a wide range of nonprofit and community organizations, educational institutions, public agencies, private businesses, and other organizations across the nation; and Whereas, each of us can and must contribute to making our communities better with increased opportunity for all of our citizens; and Whereas, residents and businesses in Ammon, Idaho have the opportunity to participate in community service projects and events throughout our city on the Martin Luther King Jr. Day of Service, January 21, 2019, as they identify the need; NOW THEREFORE, I, Sean Coletti, Mayor of Ammon, Idaho, Proclaim the Martin Luther King, Jr. Holiday as a Day of Service in Ammon, and call upon the people and businesses of Ammon, Idaho to pay tribute to the life and works of Dr. Martin Luther King, Jr. through participation in community service projects on the Martin Luther King Jr. Day of Service, January 21, 2019, and throughout the year. CONSENT AGENDA: Accounts Payable Exhibit A Planning and Zoning Commission Appointment of Jay Danielson TermExpiration of December 31, 2019 CouncilmemberSlackmoved to approve the Consent Agenda, as presented. CouncilmemberWessel seconded. Roll Call Vote: Councilmember Slack Yes, Councilmember Wessel Yes, Councilmember Thompson Yes, Councilmember Powell Yes, Councilmember Wiscombe Yes, and CouncilmemberTibbitts Yes. The motion passed. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: (5 Minute Limitation): Leslie Folsom,2750Sawtooth said that there are two things that shewould like to address to the Council. Ms. Folsomstated that the firstitemis that the City is no longer plowing the driveways, and the comments made to residents abouthelping each other,; some neighborhoods have a lot of seniors, elderly, single women, people who work two jobs, and when they come home hard for them to get into their driveways. Ms. Folsomunderstands the budget limitations, butthe City of Idaho Falls has a blade that attaches to the plow that cleans the driveway.Ms. Folsom feltthat the Cityshould purchase an attachment like that for the City plows. Ms. Folsom said that there is asecond optionof hiring temporary staff through an employment agency during the snow plowingseason, and the temporary staffcould go in behind the plows to clean out the driveways.Ms. Folsom feels that clearing the driveways is a minimal service thatmakes a huge impact for our community. Ms. Folsom said the second item she wants to address is thatin the past the City offered two days per year for acitywide cleanupwhere the community can put unwanted items on the curb and City staff would pick it up and haul it away for them. This was a great service, and in turn, itwould clean up our community. Ms. Folsom stated that not many people have trucks to haul larger items, and she feels that our City is in need of a cleanup. Greg Monic 1980 Eagle Drive stated that he agrees with the comments that Ms. Folsom made, and thanked her for her comments. Mr. Monic thanked the Council, and said that he respectsthe Council, but stated thatwe still have some differences of opinion.Mr. Monic said he wantedto thank the Councilfor allowingthe double and triple axel trucks that go up and down Eagle Drive every day.Mr. Monic stated that it has made hisstreet safer,because the road is so damagedwith dips, bumps, and humpsfrom those trucks; the more trucks you allow,the greater the destruction on Eagle Drive.Mr. Monic stated that theS, and the double and triple axelt.Mr. Monic asked if the Council planned on replacing Eagle Drive.He feels thatwe need to protect our streets,and work on improving them. Mr. Monic thanked the Council for the trash pickupservice,and said that the drivers are doing a great job. Nick Torman,3026Silver Circle stated that he gets asked every day about when something is going to get st done on 1Street.Mr. Torman stated that the Cityof Idaho Falls is growing,and hethinksthatit istime that the Ammon City Council consider zones or districts foreach CityCouncilmemberto serve on,so that theycan better serve the needs of the community.School representatives and School Districts have districts,and it works very well for them because they are able to reach out to theirzone or districtand theyare better able to understand the needs st of the citizens in their district.Mayor Coletti stated that 1Street has been one of main discussions. City Council Minutes 01.17.2019Page 2of 7 3 of 52 Mayor Coletti explained that the City is trying to dotwo things. The first is funding for the improvements,and the second is that we are actively lookingat some creative solutions. Phyllis Ker, 1810Dove Drive saidwe have somereally diverse areas,and population increases.Ms. Ker, like Mr. Torman,also feels that it would be great to have districtsfor the Council, with representatives,and sub- committees on a volunteer basis.She would like to have assigned Council members to listen to the problems and concerns of the community can feel like they are being heard regarding problems in their area. PUBLIC HEARINGS:2019-005 Residential Water Service Fees for Metered and Unmetered Locations: Mayor Coletti explained the hearing process to the audience. There were three written comments received. Mayor Coletti said that this is a time when the City Council wants to listen, but we have a team of staff that can answer any questions. There is no decision being made on this hearing tonight. Austin introduced himself and staff to the audience,andthe stated that the Counciland the professional staffare here tonight to talk about the proposed water rates, and the reasons behind those water rates. Austin reiterated the public hearing procedures. Austin stated that the Cityhad received 14requests from individuals to testifyat the hearing. Austin reported what staffare proposing; water rates for our metered customers, and water rates for unmetered customers. The water rates for metered customers would apply to residential customers only. Commercial customers already pay metered rates. What we are proposing is a baserate of $30, whether it is used or not. In addition to that base rate, there is a usage rate of $1 per 1000 gallons. The base rate includes a $19 water bond payment. The usage rate of $1 per 1000 gallonsis for the water that is used, butany water you will only be charged$30. Water usage would go up in the summer, depending on your landscaping needs and/or preferencesfor your lawn. As for unmetered water rates, they are broken down into two different rates; a rate for small lots,and arate for big lots. Small lots are defined as lots that are 10,000 square feetorless. The rate would increasefrom $38.25to a $50 level pay; thiscomes from a12-month average usage for small lots that are metered. The same $19 bond applies as well. Forlarger lotsthat are10,000 square feetorlarger, the average usage rate calculatedover a 12-month period, would be $70, and the $19 bond still applies. Austin went over the reasons behind theproposed water rates, and informed the citizens present that all of the reasons are included in the packetthat he distributed. The first reason is that the proposed rates provides for the long-term stability ofthe water system; thecurrent rates do not, and are bad for our water stabilityplacing them at risk.The second reason is that going to a metered system is recommended by the Water FacilityPlanning Study. A few years ago,the Mayor and the City Council contracted with Keller and Associates to conduct a comprehensive analysis of our water system. Kellerand Associates looked at all of our wells, pumps, and all of the waterlines. Based on their analysis, they concluded that that city must move to a metered water rate systemto sustain the long- term viability of our water systems. The third reason is we have an engineering basis for these metered rates, and the rates are in compliance with the Water Facilities Planning study. The fourth reason is that the proposed rates provide an equitable rate structure. Our current flat rate structure is not an equitable rate structure, because the consumer does not pay for what they consume. Our usage-basedrate is amore equitable way of charging for potable water than our current flat ratebased system. The rates we are purposing tonight arethe result of years of review, research, and public outreach.The sixthreason is Ground Water Rights and system capacity.The seventh is the Proprietary Fund; what that meansis,the funds/fees collected from the water system rates and utility rates, if consumers pay the water system rate it goes directly to the water departmentto use thesefundsonly for the operation and maintenance of the system. The last reason on the list is that we have a meter installation plan that the Mayor and Council adoptedrecently.Thefeedback that we have heard from the residents is that the metered water rate system is not something that they want, but they accept it. There are 1360 unmetered customers on the water rate system,and 2780 metered. On Dec 20, 2018 the Mayor and Council adopted a plan that would install meters in unmetered areas within the next 6 years. The resources that we have relied on for our proposal fortonight are the Ammon Water Facilities Planning Study. Austin distributed copies of the proposal, and let everyone know where to find it on the City website. Mayor Coletti stated that they started putting in meters in residential areas 1976 with aplan to meter the entire city. Mayor Coletti opened Public Hearing 2019-005Residential Water Service Feesfor Metered and Unmetered Locations. Leslie Folsom, 2750 Sawtooth Street, said she understands the needfor everything the Council hasdone, because she was once on the Water Meter Planning board.She hasdone more research since then, and there have been a lot of changes since she was on the board.The Council set up a test plan fortheir water rates, with a $30base rate that included 7,000 gallonsand a $1.25 per 1,000gallons over the 7,000.Ms. Folsom said after the hearing, the ratechanged fromwhat was in the original test period to $30, with no included gallons, and a $1 per 1,000gallons used.Ms. Folsomstated that it was not fair to the peoplewho were on the test period. Ms. Folsom said she feels that those citizens still believethat themetered rate will be the same as it was duringthe test period. Ms. Folsom said the second item she wanted to bring up is thattcorrect, so when consumers were looking on the website, they saw the old water rates.Ms. Folsom said she thinksthe Council should set up a meeting again and let the citizens know what haschanged. Ms. Folsom saidthat she understands that the City is still using the Post Register, the City website, andFacebook to publish public notifications.Ms. Folsom said she means nooffense to thePost Register,but not everyone receives the paper or has access to all of theonline information.Ms. Folsom feels that when the City is planning something this major, there needsto be an individual mailing to all of the citizens.Ms. Folsom stated that in all fairness to the citizens,shefeels that there should be an additional public hearing. Ms. Folsom explained that Utah, Colorado, Idaho, and California all use tiered rates. Ms. Folsom said if there are water usersthat areusing less water and arepaying the same rate as the people that are abusing the system, is not fair.Ms. Folsom feels that the City should punish thosewho use more water; the tiered water rates are going City Council Minutes 01.17.2019Page 3of 7 4 of 52 to be needed, especially for those who abuse it,andbecause the water pumps can onlyhandle so much.Ms. Folsom stated that the costs have to increase for those that are abusingthe system.Ms. Folsom explained that lower income families paymore out of pocket for water than people who can afford it,and use more water. Ms. Folsom explained that when shewason the water commission,theywere discussingoption #3,which wasa$30base rate, with 7,000 gallons, then if water usage wasfrom 20,000 to 35,000 gallons the rate went up to $1.20per 1,000 gallons, and 35,000 gallons and up increased to $1.40per 1,000 gallons. These rates are fixed to give the City the same revenue as is being presented tonight.Ms. Folsom said the next item is that there areseveral leaks in the water lines in the older sectionof town.She knows the Council isworking hard on this, and she also knowsthat the repairs are projected to be done in fouryears. She is excited for this, and shefeels thatfixing the road and replacing the water lineswill help withwater conservation. Ms. Folsomstated thatof Ammon,but we need to because those citizens that live there were promoting the new sections.When thenew developmentscame in, the older section of Ammondid what they could to help withthe developments.Ms. Folsom said that the people in the older section of Ammon are having to help out the newer developmentswith booster stations, andin turn, the newer subdivisionsneed to help them.Ms. Folsom stated that another problem with the older section of Ammon has been the deteriorationaround that area;our sewer and water lines are bad,which reflects poorly on the whole City. Shefeels that once theyget the street fixed,the citizens will take more pride in their community. Ms. Folsomsaid she is scared that the City will have the highest rates in the area, and if we are going to have the highestrates, we need to be the best.Ms. Folsom stated that she would also like for the City to implementmeter watpromotion. th Andreas Burke, 2880 E. 17Street said he is very excited to be here. He is a certified arborist and has a landscape industry accreditation, from the National Associates of Landscaping Professionals, and a four-year degree inlandscape management,so he knows what he is talking about when he talks about irrigating. Irrigationis major source of water wasteduring the summer time. Mr. Burkemoved here from New Mexico, where they only get11 inches of rain a year, but he thinks that theyhandle it better there.Mr. Burkesaid for manypeople that are in dire situation,these rates are going to impact their finances. He believes in incentivizing people instead of punishing them. He believes inpenalizing water wasters to the max,and it really upsets him when he sees people waste water. th Albuquerque they have a$20fine for the first water violation, and up to $1,000 fine for the 8violation, which includes water running into the gutter. Mr. Burkewould love to lend some of his expertiseto the City if the Council would likehim to.He is very passionate about this issue, butthat this is the right way to go about it. He thinks there should be incentives for smart water systems; people can set atimer for 2 hours a day, waste water.Itis infuriating when he sees aneighbor with their water on all day.Mr. Burkewants the City to have an irrigation police, whichis another way of fundingfrom water wasters. Councilmember Powell asked how much the water bill was in Albuquerque. Mr. Burke said he could not remember, but said there were incentives for using smart meters. Robert Johnston, 2040 Curlew said he has lived in Ammonsince 1959. He would like to know where the Citycame up with the 10,000 square feet break point.The reason he asks is the break point for 10,000 square feet is .222 acre, and in his neighborhood in the older section of Ammon the lots are quarter acres.He would like to point outthat there are a lot of single senior citizensand areon alimited income, and for some people the water rateis going to hurtthem.Mr. Johnson askedwhatthe cost is for the meter installation,and how that works.He would like to know if he pays the $70 a month for water use, if the city is going to reimburse him for the overage that he will be paying.Mr. Johnsonsaid he uses a lot less than $70 per month worthof water, and he would like to see a level pay like he hason his electricity bill. Mr. Johnson asked if there is a city ordinanceagainst planting sagebrush and cheek grass.Austin responded tofirst question about the10,000 square feet break point, and saidthat it was either the 10,000 square feetor the zonefor the area he lives in. The zone Mr. Johnson is in is a zonewith lots that are larger than 10,000sq. ft.Austin said to answer your second question,the cost of a meter is $401,but the City pays$700 for the meter vault,and at any timea citizen can request to install a meter.Austin explained that the alternative is plan to havethe city metered in 6 years. The first phase of the plan would be Ross, Brookfield, Maureen, Wanda. The second phase is Hillview and the original town site, targeting 916 locations on the first phase,and receive meters in the next two years. The second phase will move on in the next three years. The reason we are doing the original town site and Hillview last is in need of street, curb & gutter, water lines, sewer lines, and much more. Phyllis Kerr, 1810 Dove Drive said she speaks as a proud resident.She haslived in her homein Hillview for over 30 years, and haswatched the growth of Ammon.Ms. Ker saidshe is not willing to put in a meter until the City getsthe broken pipes fixed. Her commentto the Councilis,this is an area that isdynamically different than other areasof Ammon,because it is older, and it has older people living in it. This area has starterhomes, there are widows, retirees, people who have lived in their homes for 40plusyears, and we have watched this utility bill go up and up.She is These are the citizens that live in this part of the town, that have lived here for a long time, and havesupported Ammon. Ms. Ker asked why not wait to do this increase until the roads and pipes are fixed, then install themeters; she feelsthat would be the bestthing to do. She said the increase could potentially be taking away peoples medicine.Ms. Ker said that the Councilaredivesting that particular selling pointof Ammon. We as citizens need to be represented, and you need to serve all of the citizens in the City of Ammon; be fair,just,and equitable. Ms. Ker asked who would pay for the meters if they break.Ellis said oncethemetersare installed,they are the City, and they are repairedat the expense of the City, which would include, concrete, sod, and etc.? Greg Monic, 1900 Eagle Drivesaid he and his wife lived on an Indian reservation for over a year, and that iswhen they learned more about water conservation. They had friends over for dinner once, and he and hiswife were doing the dishes andrunning water as they were washing the dishes. Mr. Monic saidtheir friends asked them City Council Minutes 01.17.2019Page 4of 7 5 of 52 why they run the water whendoing the dishes.That is when they learned the importance of water conservation. They learned from their friends on the reservationhad to haul their water every weekto service their home. He feels very gifted to live in Ammon and not have to haul water. Mr. Monic said that he has a few questions toask the Council.The first question iswhy the website hasnot been updated?Mr. Monicstated that printed documents from the website, but that information.Mr. Monic asked for an explanation of loops, how many meters will be on small lots or are they big lots, what is the average meter reading, andwhy does the City no longer use revenue bonds to finance this construction for repairs and installation?Ellis address the question regardingloops, and said as part of construction in 2008 and 2009, the Coped together; in other words, you can get water from more than one section of town. For Hillview,Hillsdale, and the Originaltown site, well #6 has collapsed and is no longer functional. The motor has failed in the wellbehind Sawtooth, and because of the construction on that lot, we are unable to get service trucks in there to fix it. Ellis went on to explain that on well#3the meter does not meet qualifications. So we have three wells that are in that location that the CitycEllis explained that if the system were not looped, w keepingourwater on loops helps with the water quality.Mr. Monic asked what size of meters were being used on residences.Austin said the City is using a 3/4-inch meter, most of the lines in our communityare¾inch, and we largerthan a1inchmeter.Austin said to answer the question regardingsmall lots,there are 1,913 that havemeterscurrently installed, and 865 of the larger lots on meters. Scott Hall discussed revenue bonds, and said that revenue bonds are a tax. The constitution of the State of Idahoprohibits the City from going out and invoking a tax on a bond against its citizens without avote of the people. In order to build a better community, we need to do a revenuebond.What is the cost to operate,maintain, replace broken pieces, and the cost ofbond structure, and would need to start a new one. Most of thefeeis construction, and if you do a bond,it will stretch out the funds.If we need to raise funds for something,we ended up raising the interestfor those things.Mr. Monic asked what the $19inthe water bill is for.Austin stated that the last $15million dollar bond we did was for wells, tanks, boosters, and looping. Mr. Monicaskedwhy it wbeing done like it was before? Austin answered that we are doing it the same way as before; between the water and sewer lines we have already paid nearlya million dollars in interest.The city istrying to self-fund these projects,so we have to payinterest. For instance, if we hadthat st million dollars a year, after three years we couldrebuild 1Street. Mayor Coletti answered a question from earlierabout why the City chose to not allow the 7,000 gallons for $30.Austinstated that this was the most debatable topic that the Council hasdiscussed.The City Council and staff started meetings in April thatwent all through November, and the one common commentthat we got back was that people should pay for what they use.Austin explained that the Council debated the gallon threshold, but in the end, it always came back to people paying for what they use. Councilmember Powell statedwhen you start giving a certain numberof gallons, on a flat fee, you are onshaky ground. Hall saidConstitution and Statutewhich is somewhat unique;a couple of hisneighbors thatuse twice as much water as he does,would love to have the gallon threshold, but therate has to be related to the cost of generating the water, moving the water, getting it to the homes, deprecation, wear and tear, and,etc.Austinsaidthis is why the City ismoving to the metered system, so people pay for what they useand byremovingthe threshold, and that iswhy the $1.25 per 1,000, was reducedto a $1 per 1,000. When calculating the rate, the engineers calculatethe costof operatingthe system,the costto move the water,and the cost to obtainwater. Nick Torman, 3026Silver Circle said a lot of what has been said he agrees with, and thanked the Council for the clarification regardingthe zoning with regard to the cost. Mr. Torman said understands that the City has a need to go to meteringsystem. His mainconcern is with the rate being increasedto $50 for possibly over 5-6 years, the offset is $846,and to him.He would prefer that the rate is not implemented until all the meters are installed for everyone. Dan Freckleton, 3165 E. Sunnyside Road said we are talking aboutwasted resources. Mr. Freckleton asked whythe City continues to send him a bill every monthwith 2 envelopes,which he feels is a waste of money; especially since he pays his bill online.Mr. Freckleton asked why there is a need to send him a bill when he doesnt havea meter, and the City doesnt know how much water he is currently using. Mr. Freckleton asked why the City hasnt updated the website, and said the City should conserve the paper used for sending statements. Austin explained that he would addressthe issues,staff has beenmaking some changesto the website,and are waiting for the results. Mr. Freckleton stated that he has lived in Ammonsince 1977, and conserves as much as he can. He also has a water system that he runs at night from 12-5. Mr. Freckletonwants everyone to conserve all around. Norman Rhodehouse, 3250 Midway said the City installed meters in his neighborhood, and also repaired the meter vault for him.Mr. Rhodehouse said there are a lot of times we do dumb little things that cost the City money. Mr. Rhodehousebelieves that most of the citizensrealizethatif they hurting.Mr. Rhodehouse stated that he has worked at the INL Site,and they wouldrunthings until the end of its life oruntil destruction,andhe doesntwant that to happen here. Mr. Rhodehouse said he came into the office and spent a few minutes with staff, and received a printout of his meter readings from the last year so he couldcalculate what his usagehas been,and said he calculated that it will cost him 30 percent more.He feels the Council needsto be fair,and he thinks there should be an average in the winter months.He would also like to see everybody on a meter. Mr. Rhodehousemeteringis bad, but it is not fun. Rateincreasesarenevergood. Riley Bradshaw, of Keller and Associates explained thatthere have been a couplecommentsregarding once the rates go into effect,Ammon will be one ofhighest rates in the area. Bradshaw explained that he sampled eightother cities in Idaho,cityneighbors ofsimilarsize, Blackfoot, Burley, Chubbuck, Falls Water, Pocatello, Rexburg, Rigby, and Idaho Falls. Bradshaw said heran small and large lot rates through their rate structures, and he stated that the City of Ammon would not be the highest, but sometimes we come in a little close. The rates might be higher on our end, but they are not the highest rates being paid to other cities. City Council Minutes 01.17.2019Page 5of 7 6 of 52 Belfield stated that the City of Ammon is in transitionwith theonline bill pay, and will be moving to nd XpressPill Pay. The new online bill pay site will go liveon Tuesday January 22.Jennifer explained that when a citizen logs in online, the new bill pay site will have a graph of water usage available to view.The new online experience is very user friendly, and the citizensof Ammon will be notified by mail, and email. Jennifer said to answer a question earlier about billing statements going outin the mail when you pay your billing online. The new Xpress Bill Pay will have a box to check online if you do not want to receive a paper billing statement. TroyClary,2780 Sawtootht use a lot of water, and is not home a lot during the summer. Mr. Clarysaid heunderstandsthat metered water will help a lot of people, but lowerincome people are going to be hurt with the rates.He used to live in Bonneville County, and in the winter he paid $30, butin the summer the water bill would go up to$150-200,because he was watering his lawn.Mr. Clary said he understands that the metered system will help, but he wants to see some help for people with low income,and a program for the elderly. Tom Hunsaker, 2925 Carolyn Lane said when he lived in Pennsylvania,and the water had harmful organisms in it, so he feels blessed to live in Ammon.Mr. Hunsaker said Ammon hasthe best water, and thesource is the best. Mr. Hunsaker said heis curious aboutwhat the statestatutesays about private party versus what the City does?Hegrew up with metered water, billing for usageis the way to go, and heis comfortable with the route the Council is taking. Steve Fuhriman,1860 Dove Drive said he was around when the Councildiscussedthe tiered levels, and that is how hethought it would turn out.The rates discussed when he was the Mayor is arate structure that penalizes high water usersMr. Fuhriman said he is disappointed that that rate structure is not being used. Mr. Fuhriman spoke aboutstates in the westwherewater isextremely valuable. His son lived in California for a few years,and his water bill was only $20 per month, but now he now lives in Las Vegas and pays $25;here we think water is the most expensive comedy.Mr. Fuhriman said his daughter has a family of 8, and uses less than 5,000 gallons per month.Mr. Fuhriman saidhefeels bad for people that because they are being penalizedand are being charged more for water than someone who has a meter. CouncilmemberSlack stated thatLas Vegashasa water estimator, and it goes up to50,000 gallons on their tiered system.Mayor Coletti explained, andshe goes out and looks for water abusedaily.Councilmember Powellsaid that consumerswater their lawn between 2-5am when Avery is not at work. Mayor Coletti asked Ellis to repormetered customers.Ellis reported that the City has two zones, one for big lots and one for small lots.Ellis reported that over the years of water usage data gathered, small lots are using 19,682 gallons on average, and big lots average 38,474 gallons per month.The small lots rates will go up $137.19peryear,and the large lots would be a$272.69increase per year.The only thing staffhave to go by are theaverages, and we average them monthly. Ellis stated that these calculations are a conservative average. Mayor Coletti encouraged the citizens in the audienceto reach out to all of the professional staff that have addressed themtoday, and those staffwill be able to answer your questions or share your thoughtswith the Council. Mayor Coletti closed the public hearing and opened up for Council discussion. ACTION ITEMS: 1.Ordinance 616 & Summary Creation of Fiber Optic Local Improvement District No. 3: CouncilmemberPowell read: Ordinance 616 & Summary: FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 2An Ordinance approving and confirming the assessment roll of Fiber Optic Local Improvement District No.2 installation of certain fiber optic system improvements and related appurtenances within the boundaries of Fiber LID No. 2; levying assessments and prescribing details thereof; providing for certification of the assessment roll for Fiber LID No. 2 and for the filing of notice of this Ordinance with the Recorder of Bonneville County, Idaho; making a final determination of the regularity, validity and correctness of the assessment roll and finding and providing for the appeal procedure; providing for the publication of a summary of this Ordinance; and providing for other matters properly relating thereto.I move that the City Council dispense with the rule requiring the reading of the ordinance on three different days and that the three readings be waived. CouncilmemberSlackseconded. Roll Call Vote: Councilmember Powell Yes, Councilmember Slack Yes, Councilmember Wessel Yes, Councilmember Thompson Yes, Councilmember Wiscombe Yes, and Councilmember Tibbitts Yes. The motion passed. CouncilmemberPowell read: Ordinance 616 & Summary: FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 2.An Ordinance approving andconfirming the assessment roll of Fiber Optic Local Improvement construction and installation of certain fiber optic system improvements and related appurtenances within the boundaries of Fiber LID No. 2; levying assessments and prescribing details thereof; providing for certification of the assessment roll for Fiber LID No. 2 and for the filing of notice of this Ordinance with the Recorder of Bonneville County, Idaho; making a final determination of the regularity, validity and correctness of the assessment roll and finding and providing for the appeal procedure; providing for the publication of a summary of this Ordinance; and providing for other matters properly relating thereto. I move the adoption of Ordinance 616 & Summary as an ordinance of the City of Ammon on its third and final reading. CouncilmemberSlackseconded. Roll Call Vote: Councilmember Powell Yes, Councilmember Slack Yes, Councilmember Wessel Yes, Councilmember Thompson Yes, Councilmember Wiscombe Yes, and Councilmember Tibbitts Yes. The motion passed. City Council Minutes 01.17.2019Page 6of 7 7 of 52 2.Godfrey Subdivision Final Plat:CouncilmemberThompsonmoved to Tablethe Godfrey Subdivision Final Plat, and bringit back with the Final Plat and Development Agreement at the same time. CouncilmemberWesselseconded. Roll Call Vote: Councilmember Thompson Yes, Councilmember Wessel Yes, Councilmember Slack Yes, Councilmember Powell Yes, Councilmember Wiscombe Yes, and Councilmember Tibbitts Yes. The motion passed. 3.Godfrey Subdivision Development Agreement: CouncilmemberThompsonmoved to Tablethe Godfrey Subdivision Development Agreement, for further review. CouncilmemberWesselseconded. Roll Call Vote: Councilmember Thompson Yes, Councilmember Wessel Yes, Councilmember Slack Yes, Councilmember Powell Yes, Councilmember Wiscombe Yes, and Councilmember Tibbitts Yes. The motion passed. DISCUSSION ITEMS: 1.Misc.:Bono reported the rankings came out for the program we put in for Sunnyside, and we th came back as 18on the list. As long as legislature approves it, we should receive money for that project. The meeting adjourned at9:58p.m. ___________________________________ SeanColetti, Mayor ____________________________ Rachael Sanders, City Clerk City Council Minutes 01.17.2019Page 7of 7 8 of 52 2135 SOUTH AMMON ROAD CITY COUNCIL MINUTES THURSDAY, JANUARY 24, 2019 CITY OF AMMON: CITY OF AMMON SPECIAL MEETING THURSDAY, JANUARY 24, 20197:00P.M. ACTION ITEMS: 1.Ordinance 617 & Summary Authorizing the Issuance and Confirming the Sale of Fiber Optic Local Improvement District No. 2 Bond, Series 2019, in the principal amount of $570,000 and authorizing the execution and delivery of the Placement Agent and first purchase agreement between Fiber Optic Local Improvement District No. 2 and Neighborly Securities, Inc., as Purchaser, with respect to the Bond. 2.Ordinance 618 & Summary Providing for the Issuance and Sale of a Warrant for the purpose of providing interim financing for certain fiber optic system improvements and related appurtenances within Fiber Optic Local Improvement District No. 3. 3.Godfrey Subdivision Final Plat 4.Godfrey Subdivision Development Agreement DISCUSSION ITEMS: 1.Misc. MINUTES City Officials Present:Mayor Sean Coletti (reached by phone) Council President Brian Powell Councilmember Rex Thompson Councilmember Russell Slack Councilmember Byron Wiscombe(reached by phone at 7:10 p.m.) Councilmember Scott Wessel City Attorney Scott Hall City Administrator Micah Austin City Engineer Tracy Bono City Planner Cindy Donovan City Clerk Rachael Sanders City Treasurer Jennifer Belfield City Officials Absent:Councilmember Craig Tibbitts Mayor Coletti opened the meetingat 7:00 p.m. at the Ammon City Hall building located at 2135 South Ammon Road. ACTION ITEMS: 1.Ordinance 617 & Summary Authorizing the Issuance and Confirming the Sale of Fiber Optic Local Improvement District No. 2 Bond, Series 2019, in the principal amount of $570,000 and authorizing the execution and delivery of the Placement Agent and first purchase agreement between Fiber Optic Local Improvement District No. 2 and Neighborly Securities, Inc., as Purchaser, with respect to the Bond: CouncilmemberSlackread: ORDINANCE 617 & SUMMARY; AN ORDINANCE AUTHORIZING THE ISSUANCE AND CONFIRMING THE SALE OF THE FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 2 BOND, SERIES 2019, IN THE PRINCIPAL AMOUNT OF $570,000; APPROVING THE SALE OF THE BOND TO NEIGHBORLY SECURITIES, INC., AS PURCHASER; PROVIDING FOR THE USE OF PROCEEDS THEREOF; CREATING THE BOND FUND AND INTEREST FUND FOR PAYMENT OF THE BOND; PROVIDING FOR EXECUTION, AUTHENTICATION, REGISTRATION AND TRANSFER OF THE BOND; PROVIDING FOR A SYSTEM OF REGISTRATION THEREFOR; PLEDGING FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 2 FOR AMMON, IDAHO, ASSESSMENTS FOR PAYMENT OF THE BOND; PROVIDING FOR CERTAIN FEDERAL TAX COVENANTS AND SPECIAL DESIGNATIONS WITH RESPECT TO THE BOND; PRESCRIBING RELATED DETAILS AND PROVISIONS CONCERNING THE FOREGOING; REPEALING CONFLICTING PROCEEDINGS; PROVIDING IRREPEALABILITY; PROVIDING SEVERABILITY; AND PROVIDING FOR PUBLICATION AND EFFECTIVE DATE.I move that the City Council dispense with the rule requiring the reading of the ordinance on three different days and that the three readings be waived. CouncilmemberPowellseconded: Roll Call Vote; Councilmember Slack Yes, Councilmember Powell Yes, Councilmember Thompson Yes, and Councilmember WesselYes. The motion passed. CouncilmemberSlackread: ORDINANCE 617 & SUMMARY; AN ORDINANCE AUTHORIZING THE ISSUANCE AND CONFIRMING THE SALE OF THE FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 2 BOND, SERIES 2019, IN THE PRINCIPAL AMOUNT OF $570,000; APPROVING THE SALE OF THE City Council Minutes 01.24.2019Page 1of 2 9 of 52 BOND TO NEIGHBORLY SECURITIES, INC., AS PURCHASER; PROVIDING FOR THE USE OF PROCEEDS THEREOF; CREATING THE BOND FUND AND INTEREST FUND FOR PAYMENT OF THE BOND; PROVIDING FOR EXECUTION, AUTHENTICATION, REGISTRATION AND TRANSFER OF THE BOND; PROVIDING FOR A SYSTEM OF REGISTRATION THEREFOR; PLEDGING FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 2 FOR AMMON, IDAHO, ASSESSMENTS FOR PAYMENT OF THE BOND; PROVIDING FOR CERTAIN FEDERAL TAX COVENANTS AND SPECIAL DESIGNATIONS WITH RESPECT TO THE BOND;PRESCRIBING RELATED DETAILS AND PROVISIONS CONCERNING THE FOREGOING; REPEALING CONFLICTING PROCEEDINGS; PROVIDING IRREPEALABILITY; PROVIDING SEVERABILITY; AND PROVIDING FOR PUBLICATION AND EFFECTIVE DATE.I move the adoption of Ordinance 617 & Summary asan ordinance of the City of Ammon on its third and final reading. CouncilmemberPowellseconded: Roll Call Vote; Councilmember Slack Yes, Councilmember Powell Yes, Councilmember Thompson Yes, and Councilmember Wessel Yes. The motion passed. Ћ͵Ordinance 618 & Summary Providing for the Issuance and Sale of a Warrant for the purpose of providing interim financing for certain fiber optic system improvements and related appurtenances within Fiber Optic Local Improvement District No. 3: CouncilmemberPowellread: ORDINANCE 618 & SUMMARY; AN ORDINANCE OF THE CITY OF AMMON, BONNEVILLE COUNTY, IDAHO, PROVIDING FOR THE ISSUANCE AND SALE OF A WARRANT FOR THE PURPOSE OF PROVIDING INTERIM FINANCING FOR CERTAIN FIBER OPTIC SYSTEM IMPROVEMENTS AND RELATED APPURTENANCES WITHIN FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3 FOR AMMON, IDAHO IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,500,000; PROVIDING THE FORM, TERMS AND MATURITY OF THE WARRANT; AND APPROVING THE SALE OF THE WARRANT. I move that the City Council dispense with the rule requiring the reading of the ordinance on three different days and that the three readings be waived. CouncilmemberSlackseconded: Roll Call Vote; Councilmember Powell Yes, Councilmember Slack Yes, Councilmember Wessel Yes, and Councilmember Thompson Yes. The motion passed͵ CouncilmemberPowellread: ORDINANCE 618 & SUMMARY; AN ORDINANCE OF THE CITY OF AMMON, BONNEVILLE COUNTY, IDAHO, PROVIDING FOR THE ISSUANCE AND SALE OF A WARRANT FOR THE PURPOSE OF PROVIDING INTERIM FINANCING FOR CERTAIN FIBER OPTIC SYSTEM IMPROVEMENTS AND RELATED APPURTENANCES WITHIN FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3 FOR AMMON, IDAHO IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,500,000; PROVIDING THE FORM, TERMS AND MATURITY OF THE WARRANT; AND APPROVING THE SALE OF THE WARRANT.I move the adoption of Ordinance 618 & Summary as an ordinance of the City of Ammon on its third and final reading. CouncilmemberSlackseconded: Roll Call Vote; Councilmember Powell Yes, Councilmember Slack Yes, Councilmember Wessel Yes, and Councilmember Thompson Yes. The motion passed. 3.Godfrey Subdivision Final Plat:CouncilmemberThompsonmoved to approve the final plat for will serve the future needs ofthe community. Subject to technical review. CouncilmemberWesselseconded: Roll Call Vote; Councilmember Thompson Yes, Councilmember Wessel Yes, Councilmember Slack Yes, Councilmember Powell Yes, and Councilmember Wiscombe Yes. The motion passed. 4.Godfrey Subdivision Development Agreement:Councilmember Thompsonmovedto approve the Godfrey Subdivision Development Agreement, as presented with the change of adding the special condition as discussed, subject to technical review. CouncilmemberWesselseconded: Roll Call Vote; Councilmember Thompson Yes, Councilmember Wessel Yes, Councilmember Slack make the parking spaces that enter Sunnyside Road east of their property, and he feels that it is a little overreaching to make them move that driveway the driveway. He does feel that the driveway needs to be moved.),Councilmember PowellYes, and Councilmember Wiscombe Yes. The motion passed. DISCUSSION ITEMS: 1.Misc.:Mayor Coletti said that there has been some discussion about what happened at our meeting last week, focused primarily on the unmetered properties. He and Councilmember Powell havediscussed some ideas andhe is comfortable with what has been suggested, but there is an alternative; we could say to unmetered properties that they could keep their current rate during the winter months, but during the summer watering months the higher rate would apply. Councilmember a level pay.Discussion ensued. The meeting adjourned at 8:17p.m. _________________________________ Sean Coletti, Mayor ____________________________ Rachael Sanders, City Clerk City Council Minutes 01.24.2019Page 2of 2 10 of 52 Ammon City Council Meeting March 7, 2019 Mayor Coletti and City Councilmembers: Discussion of Resolution 2019-004R, adopting water rates Staff Presenting Micah Austin, City Administrator Recommendation - Staff recommends approval of Resolution 2019-004R as presented, including water rates and the other revised fees and fee policies, according to the following options: o Option 1: Establish Effective Date for water rates of April 1 (see analysis below) o Option 2: Establish Effective Date for water rates no later than August 1 (see analysis below) - All department heads and hired consultants relevant to this issue recommend approval of the water rates as presented. Summary of Analysis - Option 1: Financial impact of Adopting Water Rates with an effective date of April 1 o Adopting water rates effective April would result in a deficit of -$376,386.00 compared to the budget projection for Fiscal Year 2019. The budget projection was based on the presumption that water rates would be adopted with an effective date of October 1, 2018. - Option 2: Financial impact of Adopting Water Rates with an effective date of August 1 o Adopting water rates effective no later than August 1 would result in an additional deficit of -$250,924.00 for total deficit of -$752,772.00 compared to the Fiscal Year 2019 budget. - Resolution 2019-004R would adopt new fees and amend the following fees by the amount listed in Table 1 below: TABLE 1: Summary of new fees or fees increased by 5% or more New Fee or Fees Increased by 5% or more: Amended New Fee or Section of Fee Amount Percentage Fee Increase Resolution Section 5-C Metered Water Service (Residential) $30.00 base rate New Fee 2135 South Ammon Rd., Ammon, Idaho 83406 City Hall: (208) 612-4000 www.ci.ammon.id.us Page | 1 11 of 52 $1.00/1,000 gallons usage rate Section 5-C Unmetered Water Service for locations in $70.00 New Fee RP/RPA/RE Zones (larger lots) Section 5-C Unmetered Water Service for locations in all $50.00 New Fee other zones and in RP/RPA locations less than 10,000 square feet. (smaller lots) Section 5-F Condominium or Apartment Buildings with $40.00 18.75% 3 or more units per building increase Section 7-G Late Fee for Invoiced Billings (General) $5.00 or 18% of total New Fee amount invoiced Section 7-G Refunds (General) $10.00 New Fee Section 2-A Lighting District $1,100 New Fee - The amendments to Sections 5-C and 5-F address water service fees and a more detailed summary of the analysis of the recommendation for these fees follows in the section below. - Section 7-G amendments address administrative costs required for returned checks, late payments, and refunds. - Section 2-A sets a flat fee for setting up a lighting district. In the past, the City of Ammon has not charged for establishing lighting districts. The fee recommended is anticipated to cover staff costs related to establishing a lighting district. Proposed Monthly Water Rates - Metered Water Rates for all residential metered customers o Base Rate: $30.00 Includes $19.00 for the Water Bond o Usage Rate: $1.00 per 1,000 gallons of usage - Unmetered Water Rates for all residential unmetered customers o Small Lots (Less than 10,000 square feet): $50.00 level pay until meter is installed Includes $19.00 for the water bond Based on the average usage in small lots over the prior 12-month period o Large Lots (10,000 square feet and larger): $70.00 level pay until meter is installed Includes $19.00 for the water bond Based on the average usage in large lots over the prior 12-month period Reasons for Proposed Metered Water Rate 1.Provide for Long-term Stability of Water System. The current rates do not sustain the system on a long-term basis and place the water system at risk. The proposed rates will provide long-term sustainability of the water system. 2.Recommended by Water Facilities Planning Study. The City of Ammon hired a civil engineering firm, Keller Associates, to complete a Water Facilities Planning Study that identifies the ordinary and 2135 South Ammon Rd., Ammon, Idaho 83406 City Hall: (208) 612-4000 www.ci.ammon.id.us Page | 2 12 of 52 necessary changes required for the long-term sustainability of the water system. The study provided a list of measures (see attachment) that bring the water system into compliance with state code, improve emergency response resiliency, replace aging infrastructure, and address other essential water system needs. The proposed rates will provide necessary funding for the operations, maintenance, depreciation, replacement of system components, and necessary improvements that are required by the Water Facilities Planning Study. 3.Engineering Basis for Proposed Rates. Keller Associates, in compliance with the Water Facilities Planning Study, has confirmed that the proposed rates meet the requirements of the engineering (see attached memo) and to comply with state and federal water quality requirements. 4.Equitable Rate Structure. A usage-based rate is a more equitable way of charging for potable water 5.Public Outreach and Research. The proposed water rate is the result of years of review and hundreds of hours of research, engineering, financial modeling, public outreach, and discussions on the part of city officials and professionals in the field. In addition, a citizen-based committee reviewed and analyzed the engineering study, conclusions, and water usage and recommended the City transition to a metered rate system. 6.Groundwater Rights and System Capacity. Water rights and system capacity are strained during the summer irrigation months. Charging customers based on actual usage encourages water conservation. Water rights are becoming much more difficult to obtain than in the past and conservation is an important part of helping to stretch water rights and system capacity. 7.Proprietary Fund. Water fees collected are maintained in a separate fund for operation, maintenance, and the ordinary and necessary expenses of the water system. These funds must be used for the water system. 8.Meter Installation Plan. On December 20, 2018, the Ammon City Council adopted a meter installation plan to finish installation of water meters in all remaining unmetered locations within the next six years. Financial Impact - The proposed water rates are adequate to maintain the operational needs of the Ammon City Water System. Motion approve Resolution 2019-004R, thereby approving the new fees and fees increased by 5% or Section 3: Attachments (Resources for Proposed Water Rates) 1. Resolution 2019-004R 2. Published notice for fee amendments in the Post Register. 3. Memorandum from Keller Associates providing an engineering basis for proposed water rates. 4. Table 8.1 from the Water Facilities Planning Study. 2135 South Ammon Rd., Ammon, Idaho 83406 City Hall: (208) 612-4000 www.ci.ammon.id.us Page | 3 13 of 52 14 of 52 15 of 52 16 of 52 17 of 52 18 of 52 19 of 52 20 of 52 21 of 52 22 of 52 23 of 52 24 of 52 25 of 52 26 of 52 27 of 52 28 of 52 29 of 52 30 of 52 31 of 52 32 of 52 33 of 52 34 of 52 35 of 52 36 of 52 37 of 52 38 of 52 39 of 52 40 of 52 41 of 52 2.0ADEQUACY OF RATE TO MEET CURRENT SYSTEM NEEDS The first question addresses whether the new user rate affects ability to meet its expenses of operation, maintenance, replacement, depreciation, rehabilitation, payment of bonds and interest, and operational needs.The Ammon maintenance needs were coordinated between Econics and City of Ammon staff and it is assumed thatthese needs are met through the budgets in the WaterWorth model.The budgets in the WaterWorth model were based on input provided by City staff in regards to service life and replacement of existing infrastructure. They also considers additional infrastructure projects identified in the Water Facilities Planning Study (WFPS) to bring the City more into compliance with the Idaho Drinking Water Rules and toaddress other water system needs. While a detailed rate study was beyond the scope requested for the WFPS, Keller Associates did include a high-level look at rate impacts in Chapter 9 of the study. To evaluate whether the proposed rate can meet the needs identified in the WFPS, we compared the rate and funding effects of the WaterWorth model to the rate evaluation performed in the WFPS (updated to provide a more accurate comparison): WFPS RateProposed Rate Total Funds Generated in Base Year:$3.40 Million$3.37 Million Average User Increase:$16.77 per month$16.18 per month Highest Priority System Needs Met By:20252021 2037 Projected System Needs Met By:20382032 The table above shows that the funding effects of the WFPS rate and the WaterWorth rate are very similar. The proposed rate completes needed system infrastructure projects faster than the WFPS rate as a result of utilizing available reserve funds. This comparison provides additional context for the work with Econics to develop a usage-based rate structure. This analysis does not dive into the more detailed cash balance strategy used by WaterWorth, which includes the effects of conservation, reserve funds, fund sources, and operations and maintenance costs. It simply assumes that the money budgeted for these categories in the model is available for use and calculates how quickly projects can be completed. The closeness of the Total Funds Generated and the Average User Increase of the two rate scenarios compared suggests that the net effect of the WaterWorth plan is similar to that contemplated by the study and that completion of projects to address system needs is likely to happen within the planning horizon (year 2037) used for the WFPS. This analysis assumes that the budgets in the WaterWorth model are used solely for completing infrastructure projects identified in the WFPS. In reality, the system may have other replacement needs that occur during this time frame. Any use of these funds for purposes not currently identified in the WFPS would have the effect of delaying project completion from what is shown in the table above. Ѵ 216102-000 42 of 52 3.0RATES FOR UNMETERED CUSTOMERS While the City is working towards having every residential customer on a meter, completing this process will take several years. A non-metered rate will need to be implemented for those customers without a meter until one is installed. The City has approached this need by considering what the proposed usage-based rate would be if applied to the average usage of the metered customers in the two existing billing categories: Small Lot (less than 10,000 SF) and Large Lot (10,000 SF or greater).Based on the average monthly usage in these two user categories of 20,000 gallons/month and 38,000 gallons/month, respectively (based on historical City meter data), the City has proposed a new levelized rate of $50/month for Small Lots and $70/month for Large Lots. While these rates are based on broad user categories, usage in these categories is easily obtainable and the categories depend on lot size, which directly correlates with water usage. If these users were to be left unmetered for a longer period of time, Keller Associates would recommend taking a more user specific approach. As these rates will only be used over the next several years, we feel that this is a valid approach for this situation. The Water Facilities Planning Study (WFPS) proposed an average (system-wide) user rate increase of $16.77/account/month. As was noted previously, this number is very close to the increase associated with the proposed usage-based rate. The proposed non-metered rate for Small Lots and Large Lots results in an increase to non-metered customers of $11.75/month and $24.25/month, respectively. Since the increase proposed in the WFPS falls between these two rates, the proposed non-metered rates are justified in the larger financial picture. 4.0UNDER AND OVER CHARGING CUSTOMERS The last two questions posed by the City ask whether the proposed rate is at risk of over- or under-charging drinking water customers. The City does not want to increase rates frequently, but also wishes to avoid excess funds.funding sources using the WaterWorth model, the City can have greater confidence in rate stability over the planning horizon used. Based on the observations noted above, it appears that the net increase in funds is in line with the funding needed to complete the projects identified in the Water Facilities Planning Study (WFPS).The City also has the tools now to determine whether lowering a rate would be appropriate in the future when debt service is retired or if infrastructure needs have been met for the near future. We recommend that the WFPS be updated every five years in order to identify changing system needs. It is possible that additional projects will be identified at that time to maintain compliance with the Drinking Water Rules-evaluated and adjusted periodically. The first few years of implementing a usage-based rate in particular may change user behavior in unexpected ways. While the demands used in the WaterWorth model have been adjusted to account for 20 percent less usage due to conservation, only time will tell what the long-term conservation impacts of the new rate will be. may also look very different by the end of the planning horizon. Just as it is recommended that ѵ 216102-000 43 of 52 the WFPS be updated regularly, so should the WaterWorth model be updated regularly in order to see if desired funding keeps pace with expenditures. 5.0ORDINARY AND NECESSARY NATURE OF SYSTEM OPERATION Regarding the the rate increase, every project recommended by the study addressesanexisting system need.We consider these improvements to be ordinary and necessary expenditures. The City is considered to be doing only what is necessary to continue providing essential existing services to its customers. The infrastructure projects found in the WFPS all address system needs. Creating a dedicated Infrastructure Renewal budget puts a funding mechanism in place to allow the City to address its own infrastructure needs and makes the City more capable of responding quickly to problems impacting its customers. By moving to a usage-based rate, the City of Ammon is promoting a sustainable and equitably-funded water system. 6.0RECOMMENDATIONS While Keller Associates involvement during the WaterWorth rate development was relatively limited, we feel that the premise behind the proposed rates is sound. If model assumptions and inputs have been thoroughly vetted, then the resulting funds will be sufficient to fund necessary system infrastructure projects. proposed funding. While the WaterWorth infrastructure project budgets are justified as necessary expenditures, they should be revisited regularly to ensure that budgets meet forecasted needs. Keller Associates recommends that the City of Ammon adopt a usage-based rate structure. It is our opinion that basing user rates on actual consumption is the most equitable means of charging customers for the water provided to them by the City. Regardless of the type of rate used, water rates need to be increased from where they currently stand in order to fund current system needs identified in the Water Facilities Planning Study and Keller Associates does not recommend leaving rates as presently constituted. We recommend adopting themetered and non-metered rates as proposed as a means of not only basing user charges on consumption, but also to set in place an adequate funding mechanism that will allow the City to maintain drinking water services that are safe and reliable. Ѷ 216102-000 44 of 52 ID#ItemCostNeed Addressed (Start in 2018) 2.0 MG Tank and 3,000 GPM Booster Station$ 3,849,000 WH TANK AND BSStorage and Delivery Split Zone 2 into lower and upper subzones$ 632,000 ZONE 2 SPLITLow Pressure, Fire Flow 8-inch loop from Foothill Rd to Sharptail Rd$69,000 QL RDG LOOPLow Pressure, Fire Flow Replace undersized and failing water lines$ 5,951,000 ORIGINAL TOWNSITEUndersized and Leaking Lines Well, Tank, and Booster Station Improvements$ 1,015,000 WELL 6*Supply, Storage, and Delivery Additional 0.5 MG Storage at Well 6$ 1,457,000 W6 STORAGE*Storage TotalContracted $ 12,973,000 ID#ItemCostNeed Addressed Replace 2-inch line with new 8-inch line and hydrant$63,000 ASPEN LNUndersized Line 12-inch loop from Curlew to 1st St.$ 294,000 1st ST LOOPLooping and Fire Flow 8-inch loop to Crowley Rd$80,000 LDY HK LOOPLooping and Fire Flow 16-inch loop from Sunnyside to Township $ 888,000 SOUTH LOOPLooping to South Side 12-inch connection from Sunnyside to Tildy Ln$ 183,000 COTTAGES LOOP**Low Pressure, Fire Flow Total$ 1,508,000 ID#ItemCostNeed Addressed Developer $ 257,000 WH WELL16-inch dia. X 350-foot, 2,600 gpm WellSupplyonouthide $ 777,000 WH WELLHOUSE15' X 30' Wellhouse w/generatorSupplyonouthide FOX HLW LOOP**8-inch loop in Fox Hollow SubdivisionLooping and Fire Flow $ 149,000 TotalDeveloper$ 1,183,000 15,664,000 $ TotalAll *Improvements at Well 6 are not required to meet immediate deficiencies but should be pursued as system demands warrant. **To be completed only if developer activities (Fox Hollow) or optimization efforts (The Cottages) do not address these distribution issues. The cost estimate herein is based on our perception of current conditions at the project location. This estimate reflects our opinion of probable costs at this time and is subject to change as the project design matures. Keller Associates has no control over variances in the cost of labor, materials, equipment, services provided by others, contractor's methods of determining prices, competitive bidding or market conditions, practices or bidding strategies. Keller Associates cannot and does not warrant or guarantee that proposals, bids, or actual construction costs will not vary from the cost presented herein. 45 of 52 Y:\\Projects\\__Projects 2016\\216102-000 Ammon WFPS\\b_PLAN\\7_CIP_RATES\\Ammon CIP 6-5-2018.xlsx Ammon City Council Meeting March 7, 2019 Mayor Coletti and City Councilmembers: Discussion and Approval of Resolution 2019-005R, Water Meter Installation Plan for Unmetered Locations Staff Presenting: Micah Austin, City Administrator Recommendation - Staff recommends approval of Resolution 2019-005R, thereby adopting the phased water meter installation plan. Summary of Analysis - The meter installation plan was first officially presented and discussed at the December 13, 2019 work session of the city council. Based on that discussion, staff prepared Resolution 2018-019R for consideration at the December 20, 2019 meeting. - On December 20, 2019, Resolution 2018-019R was adopted, thereby approving the meter installation plan with two phases, spanning 2019-2025. - Revisions since Resolution 2018-019R: o Since adopting Resolution 2018-019R, the Mayor and City Council members have determined that additional flexibility is necessary in the plan for residential property owners to request a meter installation on their property. This revision is in direct response to concerns raised by members of the public concerning the proposed unmetered water rates. o The revised language in the meter installation plan now allows property owners to request a meter to be installed at any time. The revised language is found on page 3 of the plan, in section 2, 3, and 4. No other changes were made to the plan. - Phase I of the Plan proposes the following: o Timeline: March 2019 to September 31, 2020 o Unmetered Services: 916 locations (410 within Phase I boundaries, 506 throughout the City) Estimated Cost: $1,562 per location or $1,430,792 total over two years. - Phase II of the Plan proposed the following: o Timeline: October 1, 2020 to September 31, 2024 o Unmetered Services: 444 locations o Estimated Cost: $2500 per location or $1,110,000 total cost. - The entire plan and map of the phases is attached as Exhibit A to the resolution. Financial Impact 2135 South Ammon Rd., Ammon, Idaho 83406 City Hall: (208) 612-4000 www.b.ci.ammon.id.us Page | 1 46 of 52 - Phase I: o Estimated Cost: $1,562 per location or $1,430,792 total over two years. o Fiscal Year 2019: Funding will be drawn from the Water Fund GL#: 61-610-700. This line item is for Capital Outlay. For FY 2019, this line item includes $725,000 that can be dedicated for this purpose. This will accomplish approximately 464 meter installations in this fiscal year. o Fiscal Year 2020: Funding will be drawn from Water Fund GL# 61-610-700. The amount necessary will depend on the progress made in FY2019 but will be approximately $705,792. This will be funded through water fund reserves and through revenue received from the new water rates dedicated to capital improvements. - Phase II: o Estimated Cost: $2500 per location or $1,110,000 total cost. o Anticipated funding for meter installation will come from Water Fund GL# 61-610-700 from revenues dedicated to capital improvements. Funding will be drawn from capital reserves generated from new water rates. o This phase of the project will rely on implementation of the Community Master Plan and will involve other funding sources in addition to the Water Fund. Streets, Wastewater, and Water funds will be involved in completion of this phase, which will include new curbs, sidewalks, gutters, streets, water lines, sewer lines, and other new infrastructure. - In addition to the meter installation plan, city staff is applying for a grant through the Bureau of Reclamation to assist with the meter installation costs for Phase I. Motion Resolution 2019-005R, thereby replacing Resolution 2018-019R and adopting the revised Water Meter Installation Plan for Unmetered Locations and meter installation policies Attachments: 1. Resolution 2019-005R with Exhibit A (Water Meter Installation Plan with Meter Installation Policies) 2135 South Ammon Rd., Ammon, Idaho 83406 City Hall: (208) 612-4000 www.b.ci.ammon.id.us Page | 2 47 of 52 48 of 52 p p p p p p p p p 49 of 52 50 of 52 51 of 52 52 of 52