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Minutes - 1997 - City Council - 12/02/1997 - SpecialEAGLE CITY COUNCIL SPECIAL MEETING MINUTES December 2, 1997 ORIGINAL COUNCIL: 7:00 p.m. 1. CALL TO ORDER: 2. ROLL CALL: Bastian, Masner, Merrill, Sedlacek. Masner, Merrill, Sedlacek present, Bastian absent. A quorum is present. 3. NEW BUSINESS: A. Ordinance 314 - Bond Election: The City Clerk is requesting approval of Ordinance 314 ordering a bond election to be held on the question of the issuance of general obligation bond of the City to provide funds for the purpose of financing the costs of Library facilities. (SKS) Mayor introduces the issue. Merrill moves Item A is continued to next council meeting. Seconded by Masner. ALL AYE, MOTION CARRIES. B. Discussion and Action on the United Water Agreement Mayor introduces the issue. United Water representative, Bill Linam gives information concerning (1) Hidden Springs Development, approval of certificated area would need to be granted by the Idaho PublicUtilities Commission before United Water could serve Hidden Springs Development. No agreement has been made at this time. (2) Two million gallon water storage tank in Hidden Hollow. This tank is in service and is being served by up to six wells. Hidden Hollow tank serviced by can be transported and we could also get water from Garden City. (3) 12' line from Floating Feather well down to the existing Eagle water system is in service. Fire Flow tests have been conducted in the presence of the City Engineer and the flow was 1425 gallons per minutes at Seven Oaks Elementary School. Which was deemed to be adequate. Elevation questions, overflow of elevation of the Hidden Hollow tank is 2820 ft. Elevation of the Seven Oaks School and that is 2665 fi., and elevation of Floating Feather Well is 2600 ft. Water would flow back toward Seven Oaks School, pressure is adequate. Clarification of error in newspaper article should be 72 cents per 100 cubic foot. Sedlacek asks for elevation of Trail Creek. Morgan moves to accept the agreement outlined on our document as 3A. Merrill seconds motion for discussion. Merrill discusses Item 1. has concerns about 30 yr. term. John explains item is a business decision on both parts. (water tank agreement) General discussion. Merrill asks United Water if they would consider a Five year instead of 30 year contract for an O & M agreement, or agree to a way of amendment. United Water suggest five is too short. Masner asks to consider 20 year. United Water would consider 20 year. Masner asks if term is shortened would the rate increase? Bill Linam responds that the figures are reflective of 30 years if we go with less years it would need to be refigured. Mayor would like to see term adjusted, however he feels we need the service. Sedlacek suggests waiting for United Water to respond to questions posed by Public Utilities Commission. Masher withdraws his motion, Merrill Seconds. Masher moves that we accept the agreement shown as Item 3A with an amendment to a 15 year period. Merrill seconds. Discussion. MASNER AND MERRILL AYE. SEDLACEK NAY. MOTION CARRIES. Bill Johnson of Holladay Engineering speaks to approve the "to and through agreement'. Since there are two agreements Bill wants all individuals to make certain they are aware of which issue they are discussing. It would be wise to discuss each issue separately. C. Discussion and Action on the First Amendment to Water Service Contract (EM2) Mayor introduces the issue. John Mcfadden discusses water amendment. General Discussion. Bill Linam explains overhead of figures for income & expenditures Bill Johnson discusses costs. Merrill discusses labor rate comparing previous years and 1997. Cost comparison is explained by Bill Linam. For first 600 cubic feet people pay $6.80 over pay 42 cents per 100 cubic feet and is effected by size of meter. The rates have been the same since 1986, at the time of acquisition. EM2 has budgeted 1325 hours for 1998, if exceeded it is EM2 problem. If there is a major breakdown it is EM2 problem, replacement is a capital expenditure not included and would need to renegotiate rate. With increase of connection fee Eagle could get an increase in capital contribution. Merrill asks to have Item 3A Rates~ specifically 'the product of such previously adopted rates and fees multiplied by two percent per annam plus an additional five percent of the last previously adopted fees and charges' explained. Merrill states "Chart shows what rates have been since 1986 and what they will be for the next five years then after that they will increase?" John Mcfadden explains that the rate has been the same since the acquisition in 1986. Bill Linam explains item 3A. Translation---rates stay same for the next 5 years then 15% increase every 5 years. Discussion of sinking funds and fees, present and future options. Merrill, 'the rate increase you are asking for from the PUC for the rest of your system, I guess its the Boise system or situation, what is request for that increase? Linam, 'the current request is 15 percent in round numbers.' Merrill, 'are they also on a 5 year?' Linam, 'no, they are not' Merrill, 'so if you wanted to go back in three years and our raise rates you couldn't because you are bound by this agreement?' Linman, 'that is correct' Bill Linam mentions old agreement EM2 had no risk, new agreement includes parts, labor, mileage, etc. City will receive no billing on these items in the future. Sedlacek discusses term (30 year). Does this have an effect on the consolidation of Eagle Sewer and Eagle Water? If the water tank were to become contaminated it would be the responsibility of United Water. The tank is not considered a source of supply. Item 4, second paragraph, liability would fall on the City. The City is required to carry insurance. Amendments function is to bring rates current for United Water. Masner moves to accept the first amendment to water service contract Item 3B on the agenda with the amendment of the term to 15 years. Merrill seconds. MASNER AND MERRILL AYE. SEDLACEK NAY. MOTION CARRIES. 4. ADJOURNMENT: Masner moves to adjourn. Seconded by Sedlacek. ALL AYE: MOTION CARRIES... Hearing no further business, the Council meeting adjourned at 8:50 pm. Respectfully submitted: CI~ CLE~ASU~R APPROVED: