Loading...
07142011CouncilMinutes-WS CITY OF AMMON CITY COUNCIL MINUTES – WORK SESSION THURSDAY, JULY 14, 2011 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA – WORK SESSION THURSDAY, JULY 14, 2011 DISCUSSION ITEMS: 1.Notice to Proceed EIRWWA Project 3 – Eastern Interceptor – Segment C & Change Order #1 (Lance/Forsgren) 2.Budget Management and Council 3.Investment Policy (Russell)* 4.Sewer & Water Rate Discussion (Dana) 5.Hitt Road – Current Project & Future Policy (Dana) MINUTES City Officials Present: Councilmember Dana Kirkham Councilmember Lee Bean Councilmember Rex Thompson Councilmember Sean Coletti Councilmember Russell Slack City Clerk, Administrator, Planning Director Ron Folsom City Treasurer Jennifer Belfield City Engineer Lance Bates City Officials Absent: City Councilmember Brian Powell DISCUSSION ITEMS: Mayor Fuhriman opened the meeting at 4:30 p.m. at 2135 South Ammon Road. 1. Notice to Proceed EIRWWA Project 3 – Eastern Interceptor – Segment C & Change Order #1 (Lance/Forsgren): Dave Noel, with Forsgren Associates, spoke to the Council regarding Segment C and the Notice to Proceed. He said he understood the City would be using the new State Revolving Fund (SRF) to pay for this portion of the project. The SRF fund package comes with the requirement of having Davis-Bacon wage decisions included in the contractors bid. Forsgren had a discussion with the contractor to determine what the impact might be in terms of cost. It is approximately a 2.5% increase in the project cost to include the Davis- Bacon wages. Dave explained that if you break the project into two components, you have the pipeline component and the building over the lift station component. The General Contractor is doing all the pipeline work, and he has sub-contracted out the building work. The General Contractor has prepared the price to include Davis-Bacon wages for all the pipeline work, but has not received the price from the Sub-Contractor for the work on the building. Dave hopes to have the cost information by next week. Dave asked Council if there was anything else he needed to address. Lance asked if Davis-Bacon wages need to be included in the contract before DEQ can concur with the award of the contracts. Dave said they can concur with the award of the contract, but cannot allow for any of the funding coming through the SRF. Councilmember Thompson asked if the City used the money from reserves, would it still be necessary to use Davis-Bacon wages. Dave said the City could be eligible for reimbursement through the SRF program, and would need to have everything paid for using the Davis-Bacon wage decisions. Ron informed Council of the need to complete the Judicial Confirmation, and at the next meeting there would be a resolution for the Judicial Confirmation to proceed. Councilmember Kirkham asked Council if they had spoken about the Woodland Hills line. Councilmember Bean said no, and asked Dave Noel to come back to the microphone. Councilmember Bean informed Dave that with Woodland Hills, the City is still in the process of getting the bids, or talking to the contractor relative to whether he can still do it under the unit price and the same contract. Dave said he has gone through the bids and there is one item included on the bid form that will be impacted by adding the Woodland Hills Interceptor portion that is not identified directly as a unit price bid item number 42. Bid item 42 will be impacted because, it includes bonds, insurance, and surface repairs for areas that are not actually in a road or street. Dave said he has already obtained a quote of $22,010 for adding 4,100 feet of Woodland Hills Interceptor. That amount represents 11.2% increase in cost on that specific bid item for a 30% increase in total length of pipe. All of the other bid items that will be impacted are unit price bid items, and the Contractor has agreed to extend his contract unit prices, and do it for the same prices that he bid, plus the Davis-Bacon wage impact. 13 Council Work Session Minutes 7-14-11 Page of Councilmember Kirkham asked for an update about IBSD as far as construction and design. Lance said he is looking at a slight th delay due to manholes not being fabricated as quickly as HK Construction would like. HK anticipates starting construction July 25. Councilmember Kirkham asked if that section will be complete before school starts. Lance said if they start with manhole 11, 12, and 13 it would get us across the school property. Councilmember Kirkham asked Ted Hendricks if he concurred with the information Dave Noel had said. Ted replied yes. Ted said that DEQ has indicated they will approve the change order; the City just needs to finish the Judicial Review process. 2. Budget Management and Council: Jennifer informed the Council she felt it would be better to transfer the Building Department fund into the General fund in this current fiscal year, instead of transferring it in fiscal year 2012. Jennifer confirmed with Council they would have the final salary information for the budgeting process. Councilmember Kirkham said yes, but she wanted to clarify employee’s shouldn’t assume they would see an increase in wages on a fiscal year basis. She said wage increases could be offered on the employee’s anniversary date if the increase is merited. Jennifer said the City will receive the property taxes at the beginning of August from the County. Councilmember Bean said that’s when we get our property values. Councilmember Kirkham asked if the Fire Department budget was down because of their grants. Jennifer said it was because the majority of the $2 million Communication Grant has been expended. Councilmember Bean inquired about the interdepartmental transfers to the IT and Broadband Departments. Jennifer said the total revenue for the Broadband Department was $148,000 and the total expenditures are $601,000 but we are using the money out of the reserves. Councilmember Bean told Jennifer, he felt she should show it as an intercompany transfer. Councilmember Bean asked Jennifer how she was funding the Building Department since it is in the negative. Jennifer said it is coming out of the General Fund. Councilmember Bean said he just wants the budget to be as clear as it can be for the constituents. Jennifer said at a later date when the Building has the funds available, it will pay back the General fund. 3. Investment Policy (Russell)*: Councilmember Slack said there are three main priorities with the City’s money. The first priority is to protect, preserve and maintain cash. The second priority is to maintain liquidity. The third is to get money out of the City’s investments. Councilmember Slack did an overview of the policy and informed Council of some of the key points. 4. Sewer & Water Rate Discussion (Dana): Councilmember Kirkham said she felt it was time to revisit the increase and said she felt it was time to have a public hearing and publish for the $9.50 water increase. Councilmember Bean asked about the sewer increase. Councilmember Kirkham said she felt there needed to be a 4% increase each year. Councilmember Powell said that is what he understood. Councilmember Bean said he isn’t willing to do that and he wanted Council to know that. He feels it would seem the City is just arbitrarily increasing the rate 4% to keep it under 5% and not have to pass it. Councilmember Kirkham said she felt there needed to be a 4% increase for the next 5 years. Councilmember Kirkham said until we hook onto the line, the City won’t know what the operations and maintenance will be. Councilmember Slack said he is ok with taking the 4% increase knowing that our expenditures are going to be more than our revenues, but next year when we know what the expenditures are going to be, we are going to make sure our rates match our expenditures. Councilmember Bean said the City is operating at a $2 million dollar deficit in the sewer department. Councilmember Kirkham said we need the 4% increase to put away for equipment. Councilmember Bean said he is okay with the sewer increase. Ron said there are other fees the City will need to have a public hearing for and asked Council if they wanted to do them all at the same time. Council said yes. 5. Hitt Road – Current Project & Future Policy (Dana): Councilmember Bean said Council needs to make a decision about the method of City’s participation on the Hitt Road project. He said Mike Leddo contacted him regarding a meeting time between the two Councils. Councilmember Slack asked if the City of Idaho Falls was ok with the City of Ammon at 25%. Councilmember Bean said he didn’t say, but he implied that his idea was sold to City of Idaho Falls’ Council and that was basically we all take ¼ of the intersection. Councilmember Kirkham said whether the City should participate in improving Hitt Road or not, specifically at Target. She said the Memorandum of Understanding (MOU) was specific about the maintenance of Hitt Road going specifically to the City of Idaho Falls, and she sees the project as maintenance. Councilmember Slack said he would consider it an improvement. Councilmember Bean said when he negotiated the MOU with the Mayor and the City of Idaho Falls; those types of items were not discussed. It was his understanding that improvements meant, on the City’s prospective side of the road, the City would do those improvements. Councilmember Kirkham said when she looks at the MOU; she sees it as Hitt Road belongs to the City of Idaho Falls. Councilmember Coletti stated this is why we need a new agreement. Discussion ensued regarding amending and defining the MOU. Councilmember Bean recommended someone from Council get together with Mayor Jared Fuhriman and figure this out. Councilmember Bean said this is a perfect example of the two Council’s needing to work together. Councilmember Kirkham said she would contact Mayor Jared Fuhriman. Councilmember Bean moved to adjourn. Councilmember Kirkham seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Thompson – Yes, Councilmember Slack – Yes, and Councilmember Coletti– Yes. The motion passed. 23 Council Work Session Minutes 7-14-11 Page of The meeting adjourned at 6:40 p.m. ___________________________________ Steve Fuhriman, Mayor __________________________________________ Ron Folsom, City Clerk 33 Council Work Session Minutes 7-14-11 Page of