Minutes - 1998 - City Council - 02/24/1998 - RegularEAGLE CITY COUNCIL MEETING
MINUTES
February 24, 1998
PRECOUNCIL: 6:30 pm - 7:30pm
1. Sheriff's Monthly Report - Lt. Cowles distributes the monthly report. General discussion.
2. ACHD representative Susan Eastlake will present information regarding the proposed fee
changes for APA. Susan Eastlake distributes a handout to Council and discusses the fee
structure for APA. Committee is recommending Alternative A. APA would like Councils'
input and recommendations. General discussion.
3. Discussion of proposed Skateboard Park. Deputy Justin Helm, Ada County Sheriff's Office,
discusses the skateboard park and the participation of the Sheriff's Office.
4. Mike McCurry, 694 Palmento Drive, discusses the skateboard park and the need for the
park. Thinks it will reduce crime and get kid's off the streets. Would like to have a
continued Sheriff patrol to help eliminate any problems. Will need lights, drinking fountain,
trash bins. Would like to help build the park and maintain security for the park.
Matt Chambers, 1471 Leslie Way, works for a skateboard shop in Boise, discusses the
skateboard park and the need for a park in Eagle. Skateboarders will keep the park clean,
orderly and will self police the park. General discussion.
4. Mayor and Council's Reports: End of Meeting.
5. City Clerk/Treasurer's Report: No report.
6. Zoning Administrator's Report: ACHD impact fees. Discussion of Comprehensive Plan
updates (transportation). Pat Dobie, 777 Halstone Drive, Boise. Discusses the ACHD impact
fee increases. Impact fees will be raised about 40%. I have worked with the City of Kurta on
negotiating a fee structure with ACHD specific to their City. The big change is with
commercial and large structures. General discussion. Mayor and Council would like Pat to
put together a proposal.
7. City Engineer's Report: No report.
8. City Attorney's Report: No report.
Mayor calls a recess at 7:25 p.m.
Mayor reconvenes meeting at 7:35 p.m.
COUNCIL: 7:30 p.m.
1. CALL TO ORDER:
2. ROLL CALL: Bastian, Merrill, Sedlacek, Guerber. A quorum is present.
3. PLEDGE OF ALLEGIANCE:
Mayor states, for the general publics information, that the applicant for Wintry River Subdivision
has requested that the matter be continued and there is a possibility that the public hearing will
not be heard tonight.
Page 1
F:\SHAKED\COUNCIL~t~UTES\ 1995~cc022498 rain.dec
4. CONSENT AGENDA:
· Consent Agenda items are considered to be routine and are acted on with one motion.
There will be no separate discussion on these items unless the Mayor, a Council
Member, member of City Staff, or a citizen requests an item to be removed from the
Consent Agenda for discussion. Items removed from the Consent Agenda will be
placed on the Regular Agenda in a sequence determined by the Rules of Order.
· Any item on the Consent Agenda which contains written Conditions of Approval
from the City of Eagle City Staff, Planning & Zoning Commission, or Design
Review Board shall be adopted as part of the City Council's Consent Agenda
approval motion unless specifically stated otherwise.
Guerber removes Item#4E from the consent agenda.
Merrill adds Item#7A to the Consent Agenda as Item#4F.
A. Minutes of February 5, 1998
B. Minutes of February 10, 1998
C. Claims Against the City
D. Clarification of Claim Against the City
E. Arbor Day Proclamation: June 12, 1998. Removed from the Consent Agenda.
F. #7A. The City Clerk is requesting Council to authorize the Mayor to submit the
application for the Certified Local Government Program, and sign the Certification
Agreement. (SKS)
Bastian moves to approve the Consent Agenda. Seconded by Sedlacek. Discussion. ALL
AYE: MOTION CARRIES .........
4E. Arbor Day Proclamation: General discussion on the date. Guerber feels that this should be
on June 13t~, the date for Eagle Fun Days.
Guerber moves that we celebrate Arbor Day in the City of Eagle on June 13, 1998.
Seconded by Merrffi. ALL AYE: MOTION CARRIES ...............
5. U1NFINISItED BUSINESS:
A. Resolution 97-18: City Council is to consider fees for water user charges for the Eagle City
water system which may exceed 105% of prior fees. (SKS). Note: Public comment will be
taken.
Mayor introduces the issue.
Sedlacek: We will be unable to use Bill Jarocki's software on utility rates because we do not
have the historical data needed. Bill would be willing to give the Council a mini lesson on rate
structure for approximately $200.00. General discussion.
Merrill moves to have the Mayor instruct Lynne to contact Bill Jarocki and setup a time
and date certain for special education of the Council and the public that would like to
attend of the Eagle Water System. Seconded by Bastian. Discussion. Bastian would like to
amend the motion to limit the cost of that presentation to $200.00. Merrill so amends the
motion, seconded concurs. ALL AYE: MOTION CARRIES AS AMENDED .............
Kathy Shifiet, EM2. Displays overheads with her presentation. Discusses the history of the
water system. Filing has been made for the water rights to become municipal water rights.
Dan Brown, Engineer United Water and EM2. Displays an overhead of the service area.
Discusses the fire protection capacity and the domestic usage area of the City system. General
discussion.
Kathy Shiflet: Continues with overhead displays and history and discussion on the fire protection
and domestic usage area. Old Contract was on a per hour basis and because there was no other
history the new contract is also based on a per hour basis. EM2 would-like to be included in the
mini lesson that will be provided by Bill Jarocki. Discusses the operating responsibility by EM2
in the old and new contract. Discusses the 1992 Water Service Contract and compares with the
1997 Amendment to Water Service Contract. Discussion on 1998 project annual revenues, fixed
and consumptive revenues. Discusses the 1998 projected annual operating costs, on an hourly
basis. Discussion on comparisons with other cities. Discussion on connection fees.
Mayor: We will take public input at this time.
Terry Miller, 1420 N. Echo Creek Way. Thanks Mayor and Council for collecting all of the
information. Unfortunate that we do not have any history that can be analyzed. You will need to
take your best shot at establishing a rate.
Mayor: You presented the Council with a letter at the beginning of the meeting. I have not had a
chance to review that letter but we will be doing that.
General discussion among the Council and questions for and answers from Dan Brown, Engineer
for United Water and EM2.
Bastian moves that we approve Resolution 97-18. Seconded by Merrill. 3 AYES: 1 NAY:
MOTION CARRIES .........
Mayor states that he has talked to Kathy Shiflet on a report from EM2 on the operation of the
water system and they have agreed that it would be at pre-council on the 2~d meeting of the
month.
Council discussion on the vote on the resolution and the water system.
6. PUBLIC HEARINGS:
A. Wintry River Subdivision's submittal of hydrological and bioloeic studies. On September
13, 1994, the City Council approved this preliminary plat with a condition that required
hydrological and biologic studies to be reviewed at a public hearing open for public comment.
Thc proposed subdivision consists of 89 residential lots, with 15 acres (approx.) of common area.
Portions of the proposed subdivision are located within thc Dry Creek Floodway. Thc 54.03-acre
(approx.) site is located at the southwest comer of Floating Feather Road and Eagle Road. (MLB)
This item was continued from the February 10, 1998 meeting.
Mayor states that the applicant has requested that this item be continued.
Butler: I received one letter to continue to March l0th and the applicant has now asked for a
continuance to March 24th. We plan on having new notices and publications.
Guerber moves to continue this matter to March 24, 1998. Seconded by Merrill.
Discussion to amend with new notification. Guerber moves to amend with new
notifications, seconded concurs. ALL AYE: MOTION AS AMENDED CARRIES ..........
Mayor calls a recess at 9:05 p.m.
Mayor reconvenes at 9:15 p.m.
B. V-2-97 - East Hills Development, LLC: Roylance and Associates, representing East Hills
Development, LLC., is requesting a variance to increase the length of two cul-de-sacs within
Lexington Hills East Subdivision to approximately 860-feet (500-feet is currently the maximum
allowed length). The 50.3-acre, 141-lot proposed residential subdivision is located on the
northwest comer of Floating Feather Road and new State Highway 55.
Mayor introduces the issue. No Member of Council has an ex parte contact to declare or a
potential or actual conflict of interest.
Dave Roylance, 391 W. State Street, one of the Developers as well as Lexington Hills. This
project is an extension of Lexington Hills. Displays a preliminary plat that was approved. We
filed an extension on this preliminary plat when became owners. Discussion on the variance
requested. General discussion.
Buffer: Displays an overhead of a vicinity map and discusses same and also the code sections
that need to be met. We have the hardship situations. I think that in both cases we have what is
in the best interest of the City and the Planning and Zoning agreed. Staff and Planning and
Zoning has recommended approval. General discussion.
Mayor opens the Public Hearing.
Bill Guhrke, 2255 Fawn Hill, Discusses the water line that services Trail Creek.
Mayor closes the public hearing.
Butler has received a written recommendation for approval on the variances.
Guerber moves that Council concur with the recommendations of approval of this project
with the additional specific conditions of approval that were recommended by the Planning
and Zoning Commission. Seconded by Merrill. Discussion. ALL AYE: MOTION
CARRIES ............
C. Lexington Hills East Subdivision (Formerly Echo Creek Phase 5, 6, & 7}: East Hills
Development, LLC, represented by Roylance and Associates, is requesting preliminary plat
approval for Lexington Hills East Subdivision (formerly Echo Creek Phases 5,6, & 7), a 50.3-
acre, 141-lot residential subdivision located on the northwest comer of Floating Feather Road and
new State Highway 55. The applicant is also requesting a variance to increase the length of two
cul-de-sacs within the proposed subdivision to approximately 860-feet (500-feet is currently the
maximum allowed length).
Mayor introduces the issue.
Dave Roylance, 391 W. State Street, one of the Developers. Displays the preliminary plat and
discusses the same. There will be a berm, landscaping and fence along new Highway 55.
General discussion. Discussion on a donation of land for a pedestrian bridge crossing new
Highway 55.
Butler: Displays an overhead of the Preliminary Plat and discusses same. Staffrecommended
approval with several conditions. Planning and Zoning recommended approval with conditions.
Discusses the conditions.
General discussion.
Mayor opens the Public Hearing
Bill Guhrke, 2255 Fawn Hill. Discusses the overpass over Highway 55.
Dennis Whitmore, 5606 Plymouth Street, Boise, one of the partners in the development.
Discusses the project.
General discussion.
Mayor closes the Public Hearing.
General Council discussion.
Merrill moves to approve PP-4-97, Lexington Hills East, preliminary plat, East Hills
Development with added conditions that we add to provide pressurized irrigation to all
homes and this will take precedence over Standard Condition Requirement No. 8 and
remove Item//8 of the Site Specific Conditions of Approval that deals with dedicating and
donating Lots No. 4 and 5. Seconded by Bastian. Discussion. Bastian moves to amend Site
Specific Conditions where it says in No. 2 berming, fencing, I would like to add berming,
sound barrier fencing, and then it would read on. On condition No. 3 where it says provide
berming, fencing, I would insert berming, sound barrier fencing. So that whatever fencing
the Developer comes up with it would have sound barrier quality. Seconded by Merrill to
amend the motion. Legal Counsel for clarification, limit the sound barrier language to
Paragraph 3 and to the fencing on Highway 55. Bastian so amends the motion to amend.
Second concurs. ALL AYE: MOTION TO AMEND CARRIES ............ Discussion.
Bastian moves to amend the Motion that noted on the Plat would be a requirement that a
notice be placed on the plat referring to the City of Eagle's Hillside regulations where
applicable, and the Zoning Administrator work with the Developer in placing this notice on
the plat for Councils' final review. Seconded by Merrill. ALL AYE: MOTION TO
AMEND CARRIES ............ ALL AYE: MOTION AS AMENDED CARRIES .........
D. Resolution # 98-4 - New fee for Parking in-lien Payments: The Zoning Administrator is
requesting Council approval of a new fee to provide for parking in-lieu payments from applicants
who propose off-site City parking in lieu of on-site private parking as permitted with Ordinance
#309.
Mayor introduces the issue.
Mayor opens the Public Hearing. No one has signed up to speak.
Mayor closes the Public Heating.
Bastian moves to approve Resolution 998-4. Seconded by Merrill. ALL AYE: MOTION
CARRIES ...........
E. Ordinance 311 - City initiated zoning ordinance amendment (ZOA-9-97}: Ordinance of
the City of Eagle, Ada County Idaho, amending Eagle City Code, Title 9 "Subdivisions", Chapter
4, "Required Improvements", Section 1, "Improvements Required", Paragraph 9, "Water Supply
And Sewer Systems".(MLB)
Mayor introduces the issue.
Butler: Discusses the changes that have been made.
Mayor opens the Public Hearing.
Mayor closes the Public Hearing.
Bastian moves to continue this item to the next regular session so we can review this matter.
Seconded by Sedlacek. ALL AYE: MOTION CARRIES .............
7. NEW BUSINESS:
A. The City Clerk is requesting Council to authorize the Mayor to submit the application for the
Certified Local Government Program, and sign the Certification Agreement. (SKS) Moved to
the Consent Agenda.
Mayor and Council Reports:
Merrill: Reports on the signage to go on the Downtown Park. Ground breading on March 2~d.
Discussion on the Downtown Park and selling bricks. Discusses the ITD Illumination
Agreement. Guerber would like the Mayor to write a letter addressing this intersection.
Discussion on legislation bills.
Sedlacek: Reports on the Eagle Fun Days meeting. Reports on the Economic Development
Committee meeting.
Guerber: Reports on APA meeting at City Hall on Monday.
Butler: Discussion of work on Eagle Road that concerns the trees. Issued stop work orders.
General discussion.
Mayor: Discusses the Eagle Farmer's Market. Discusses the two meetings tomorrow night.
Bashan: Sheriff's department is going to be reviewed by the University of Washington. Council
Members are going to be interviewed about the community policing. Bashan is going to go for a
ride with the officers.
Discussion on Email over the Intemet.
8. ADJOURNMENT:
Merrill moves to adjourn. Seconded by Guerber. ALL AYE: MOTION CARRIES...
Hearing no further business, the Council meeting adjourned at 11:00 pm.
Respectfully submitted:
CITY CLERK/TREASURER
APPROVED:
RICI~YZAG~R][,
MAYOR ~d '
CITY COUNCIL MEETING 2/24/98
SKATEBOARDERS ATTENDING MEETING
Nathan Barnes
2360 N. Equestriam Pl..
Eagle, Id
939-2147
Shane Ralph
390 Ranch Drive
Eagle, Id
939-9424
Jesse Beckwith
2260 Dicky Ct.
Eagle, Id
939-8936
Matt Chambers
1471 Leslie Way
Meridian, Id
887-1178
Parents: Sam & Addie Chambers
1471 Leslie
Meridian, Id
887-1178
Tyson Titus
216 S. Taylor Ave
Eagle, Id
939-8704
Brennan Conroy
1717 Interlachen Way
Meridian, Id
888-5846
Mike McCurry
694 Palmetto Dr.
Eagle, Id
939-6139
Tristan Faber
1358 Gosling Pl.
Eagle, Id
939-6163
.r. SPORTS
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6. Football (ouch)
7. Soccer
L. Roller Skiing
Baseball
10. Vollsybal (sand/beach.)
11. Football tackle)
12. Skateboarding
13. molter Hickey
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31.5 2. In -lino Skating
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213.4 4. Running/jogging
23.9 5. Volleyball (herd surfaceigrass)
19.4 6, Football (touch)
18 7. Roller Skating
15.3 8. Baseball
14.7 9. Softball (slow -pitch)
12.6 10. Football (tackle)
11.7 11. Skateboarding
F.8 12- Volleyball (sand/beachl
4.1 13. Roller Hockey
3.1 14. Cheerleading
2.9 16. Softball (fast- pitch)
2 16. Ice Hockey
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Seleeted' Activities
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2. Basketball
3, Soccer
4. Holier Skating
5. Baseball
6. Football (touch)
7. Softball (stow -pitch)
8. Running/Jogging
9. Volleyball (hard surface/grass)
10. Skateboarding
11. Football (tackle)
12. RoHor Hockey
13. Cheerleading
14. Voleyball'(sand/beach)
15. Ice Hockey
16, Softball (fast- pitch)
22.2
17.2
13.4
11.385
11.379
11.2
9.497
9.491
9.3
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5.8
3.7
3.1
2.3
1.7
1.2
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5.6
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Echo Creek Homeowners Association, Inc.
PO Box 256
Eagle, ID 83616-0256
February 24, 1998
The Honorable Mayor Yzaguirre
City of Eagle, Idaho
310 E. State
Eagle, ID 83616
Re: Municipal Water System
Mayor Yzaguirre:
As a result of my recent discussions with you, the City Council, and members of the City of Eagle
staff, I am making a formal written request for information regarding the City's management and
practices regarding the Municipal Water System that services Trail Creek Ranch. Due to current
activities with United Water/EM2, Lexington Hills, and Morning Meadows, I would like to
receive a written response to my questions, with supporting data, no later than Friday, March 20,
1998. Please inform me, in writing, if this date is unacceptable.
Question 1: Who is the City of Eagle Water Superintendent?
Question 2: When was the City of Eagle Water Superintendent appointed and by whom?
Question 3: What is the City of Eagle Water Superintendent term of office and reporting
relationship?
Question 4: Who in the City of Eagle grants water main extension permits?
Question 5: Was the water main extension from the EM2 Floating Feather well established under
a Cooperative Agreement as called in City of Eagle Code, 6.5.25.A, or was it
granted by City Council approval as described in City of Eagle Code 6.5.6.A?
Question 6: If the agreement with EM2 for the water main extension is a Cooperative Agreement,
is the City or EM2 providing the cost reimbursement to the Lexington Hills
developers out of the connection fees?
Question 7: If the agreement with EM2 for the water main extension is a Cooperative Agreement,
is the City of Eagle receiving the required Administrative Fee, 6.5.25.B.4?
Question 8: What size main extension and materials requirements did the City Council place on
the Developer of Morning Meadows before the water main extension was placed in
the ground? Was this requirement provided to the Developer verbally, or in
writing and by whom?
Question 9: What date did the City Council approve the water main extension for Morning
Meadows?
1
Mayor Yzaguirre
Re: Municipal Water System
February 24, 1998
Question 10: Was the contractor that installed the water main extension from Echo Creek
Subdivision to Morning Meadows approved by Em2/United Water in advance of
the installation? Who was the contractor that installed the extension?
Question 11: Did the City of Eagle Engineer inspect the water main extension to Morning
Meadows from Echo Creek Subdivision before the ditch was closed? What was
the date of that inspection?
Question 12: How much was the City of Eagle reimbursed by the Morning Meadows Developer
for the cost of the water main extension inspection?
Please provide the following City of Eagle documents:
> City of Eagle, Construction and Design Standards for Domestic Water Systems.
➢ Copy of the Water Main Extension Permit granted to Mr. Bill Webster for the
extension and connection from Echo Creek Subdivision #3.
• The following tariff schedules:
• Delinquent account late charge.
• Restoration of Service charge.
• Customer requested Meter Testing charge.
• Water Meter Removal charge.
• Water Main Shutoff charge.
• Rule Violation Restoration charge as stated in 6.5.14.
• Water Construction Equivalency fee schedule.
Thank you in advance for your response.
Sincerely,
,)).A. r) -t -,Le
Terry Miller
ECHOA, Director
CC: Eagle City Council
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MEMORANDUM
February 17, 1998
To: Mayor, council, and interested staff
Fro= Lynne Sedlaoek
Re: Water rate model, BILjanadd
EAGLE SEWER DISTRICT, PAGE 01
0-4
RECEIVED & FILED
CITY OF EAGLE
FEB 1 8 1998
File:
Route to: f'Y\ LJ
I spoke with Bill jarocki on Tuesday in regard to. his Ratemod Pro utility rate
software program.. We are .unable to get enough of the needed historical data
to produce the rate model. Therefore, I would request that this item be
removed .f om the February 24 agenda.
Bill reported that he met with EM2 representatives on Friday. Bill
that apparently in our previous management agreement with EM2'. several line -
item cost elements were not included, the cost was ..all calculated on an hourly
basis. Bill stated that the city contract with EM2 .needs to clearly .derme
exactly what services and costs are provided by EMZ, and the city needs to
budget rates (over and above the EM2 rates) for everything else.
Bill was sorry. that .he could not .do more for .us. He did offer to put .together a
"mini -lesson" in rate setting and fund management. He stated it
would take him about a day to pull the information together. He anticipated
approximately one hour for the presentation, and another 30 .to 60 minutes for
questions. He said he could do it for $200.
EAGLE CITY COUNCIL
PUBLIC HEARING SIGN -IN SHEET
Subject: V-2-97 East Hills Lexington Development
February 24, 1998
7:30 P.M.
PLEASE PRINT LEGIBLY
NAME ADDRESS TELEPHONE PRO? CON?
Page 1 of
Document3
.
EAGLE CITY COUNCIL
PUBLIC HEARING SIGN-IN SHEET
Subject: Wintry River hydrological & biological study
February 24, 1998
7:30 P.M.
PLEASE PRINT LEGIBLY
NAME ADDRESS TELEPHONE PRO? CON?
Page 1 of
Document3
cc
RECEIVED & FILED
CITY OF EAGLE
THE CITY OF EAGLE E FEB 2 3 AS
CITY COUNCIL MEETING
February 24, 1998 File:
Route to:
HISTORY OF EAGLE CITY WATER SYS' 'EM
Lexington Hills and Echo Creek Developers, through contracts with the City of Eagle, conveyed
their newly developed water system to the City of Eagle. This water system consisted of two
wells and a water distribution system with water rights designated to serve the build -out of these
two developments. This water right was approved with four points of diversion, two in the
Lexington Hills development and two on the Hormaechea property to the West of Lexington
Hills property. Even though the points of diversion are on the Hormaechea property, the water
right has been limited to the Lexington Hills and Echo Creek Developments.
In May of 1992, the City of Eagle contracted with EM2 for the operations and maintenance of
the City's water system. EM2 was owned and operated by South County Water Company and
the water rates for the City water system were set at the rates then approved for the South County
Water Company. After determining that EM2 was expanding beyond South County's ability to
provide adequate service, EM2 was sold to General Waterworks, now United Water.
Over the last four years, the City of Eagle has struggled with water issues. Some of the issues
addressed by the City include:
• Should the City of Eagle expand the water system and become the operating entity.
• With one well producing sand and lesser quality water, could this water system supply
the domestic demands as well as the fire flow requirements for the build -out of the
developments.
• Would the existing water system provide the fire flows required for the new elementary
school to be built within the approved water system boundaries?
• How should the City address the lack of redundant or backup supply for fire protection.
• Could the water system support future proposed developments.
• Does the City of Eagle have a viable water system.
CITY COUNCIL TAKES ACTION TO PROVIDE QUALITY WATER SYSTEM
The City of Eagle, as owner of the municipal, domestic water system, has the obligation of
safeguarding the public's health and providing their customers the security of having a
professionally operated and maintained water system that meets the increasingly stringent water
quality regulations and standards. After evaluating their options, the City Council proceeded to
implement a plan to insure their customers and the citizens of Eagle a water system that in every
way complies with or exceeds the mandated drinking water standards, improves the viability of
the water system, eliminates duplication of large capital expenditures, and sets the stage for well-
managed growth for Eagle.
Eagle's City Council has worked diligently to honor the public trust as they worked through the
complicated issues relating to the Eagle City Water System.
• The City Council requested presentations to be made by Eagle Water Company and EM2 that
would discuss their qualifications and what they could offer the City. On July 8, 1997, both
companies made presentations during the City Council meeting. (See attached presentation
notes presented to City Council at meeting.)
• That meeting lead to the up grade of the Water Service Contract with the First Amendment to
Water Service Contract. In this agreement, the City Council has asked EM2 to provide its
expertise and knowledge to operate and maintain Eagle's municipal system through a 15 -year
partnership agreement. The operations and maintenance of this water system is vastly more
complicated today than it was back in 1992 when Eagle entered into their first 0 & M
agreement with EM2.
• As stated in the contracts between the City of Eagle and Lexington 1111s/TVV, the
developers retained the responsibility to provide for adequate source of supply for the build
out of these two developments. To meet that responsibility, Lexington Hills, Inc., Treasure
Valley Village and EM2 entered into a Water Line Agreement that enabled EM2 to construct
a water line on behalf of Lexington and TVV from the Projects to the Floating Feather Well.
Lexington Hills, Inc. and TVV guarantee the costs for the inter -tie. No taxpayer or City
money is involved.
• With the Water Line in place, the City was then able to inter into an Agreement with United
Water Idaho to Provide Supplemental Water for Fire Flows. This agreement provides
supplemental fire flow for the City Water System allowing the existing two wells located in
the Lexington Hills Subdivision to supply the domestic water for the build out of the
developments. With this agreement the fire department requirement of minimum fire flows
can be met.
• A "to and through" partnership agreement between the City of Eagle and United Water Idaho
allows for United Water to install a water main to link the United Water's storage reservoir at
Hidden Hollow to its existing wells west of Eagle. The Agreement provides the Eagle City
Water System customers, including the new school, the long -needed benefit of a gravity -fed
backup and storage for fire flows. It allows the existing City of Eagle Wells to serve present
and future domestic demand, not fire protection, and provides redundant supplies that will
eliminate the need for backup power sources. The City received this service with no up front
cost and only has to allow United Water the right to transmit water through the City's water
main.
As directed in City of Eagle Code 6-5-9, the water user charges have been proposed to
reflect EM2's best estimate of actual costs to operate, maintain, repair and finance the city
water system and its facilities. As there is no history to reflect full operations of the system,
charges shall be reviewed as directed in code.
2
,. ,
The operations and maintenance of the city water system will be provided as directed by
City Code 6-5-10,11, and 12. This will include Notices to Customers, Meter Readings,
Rendering of Bills, Delinquent Accounts and Meter Accuracy.
The 1992 Water Service Contract was intended to address the field operations and everyday
maintenance of a small water system. At the signing of this contract, the water system,
consisting of newly developed wells and limited water mains and services, was just being
conveyed to the City. As the water system grew and became more complex, it became apparent
that the City required more services than the contract provided for. Some of the City's
challenges included: one well developed problems and adequate fire flows were questioned,
further development through long dead end water mains in the upper portion of the Echo Creek
Subdivision created pressure problems, and the Safe Drinking Water Act required additional
water sampling and reporting requirements. EM2 responded to the City's requests for additional
services, however, because of the evolving problems with the water system and the uncertainty
concerning the future of the system, EM2 was uncertain how to structure an amended contract.
It wasn't until the decisions were finalized regarding the fire protection issues, backup source of
supply and the ability to serve future proposed development that enough information was
available to structure an amended contract.
The City of Eagle water system has progressed beyond a simple per hour plus equipment
contract. EM2 can no longer provide the services requested by the City without a contract
designed as a full service agreement. EM2's experience in operating water systems provides a
through knowledge of the hours that will be required to operate and maintain the City's water
system as it is now designed; therefore, the hourly basis was used to develop the proposed rate
structure submitted to the City. What EM2 did not have and can not give the City is a line by
line planned rate structure because there is no history that would back up that type of planning.
The Amended Contract allows for review of records that will provide the opportunity for
oversight and analysis by the City.
Operating Responsibility by EM2
Old Contract New Contract
Leak Repair Yes Yes
Pump Repairs No Yes
Power Bills No Yes
Meter Reading Yes Yes
Turn On/Off Orders Yes Yes
Billing Yes Yes
Preventive Maintenance Inspection Yes
Line Location Yes Yes
Cross Connection Review No Yes
System Flushing No Yes
Sampling Routine Yes
Customer Service Limited Yes
Accounting No Yes
Administration No Yes
Operations Engineering No Yes
Capital Investment No No
Risk No Ye
The following comparison explains the 1992 Water Service Contract and the First
Amendment to Water Service Contract signed and dated the 2nd of December 1997.
1992 Water Service Contract
The Water Services Contract provided for the basic operations and maintenance services as
directed by the City. These services included checking the pumps, reading the pump meters and
preparing reports for the regulatory agencies, taking mandatory samples, reading the customer
meters and preparing and mailing the billings, accounting for the payments and depositing them
into the City's bank account, line locations to prevent construction dig -ins, accounting for the
services provided to the City and billing the City as outlined in the contract. Additional services
were provided at the City's request but the contract did not provide for the full range of services
required to adequately operate the growing water system to protect the health and welfare of the
customers and provide for the expanding requirements of the system.
Since the Water Service Contract was singed in May of 1992, there has not been a rate increase
or contract enhancements to account for increased labor, material, equipment, etc. costs and
additional operations and regulatory requirements.
1997 Average number of customers 408
1997 Average water bill —12 CCF $9.38 ($6.86 + 6ccf @ $.42)*
Total Revenues $41,624* $102.02/customer
Billed Operating Expenses 39.276 96.26/customer
Difference $ 2,348 $ 5.76/customer
*1992 Tariff $6.86 first 6 CCF + $0.42/CCF for each additional CCF
1997 Amendment to Water Service Contract
The First Amendment to Water Service Contract is a full services agreement authorizing EM2 to
provide the services required to comply with increasingly stringent water quality regulations,
heightened technical requirements and a growing water system that must safeguard the public's
health and welfare.
1998 Projected number of customers 460
1997 Projected average water bill —12 CCF $15.50 ($6.86 + 12ccf @ $.72/ccf)* *
Projected Revenues $75,969** $165.16/customer
Projected Expenses 72A55 157.51./customer
Difference $ 3,514 $ 7.64/customer
**1997 Tarif $6.86 customer charge + $0.72/CCF for all consumption
4
7 CCF
10 CCF
14 CCF
21 CCF
Typical Bill Comparison
Old Rate New Rate Increase
$ 7.28 $ 11.94 $ 4.66
$ 8.54 $ 14.06 $ 5.52
$ 10.22 $ 16.94 $ 6.72
$ 13.16 $ 21.98 $ 8.82
1998 PROJECTED ANNUAL REVENUE = $75,969
Fixed Revenue $37.867
($6.86 Customer Charge X 12 Months X 460 Customers)
Consumptive Revenue $38,102
(Previous year consumption (52,794 ccf X $.7217)
$75,969
Fixed revenue covers the expenses associated with operating and maintaining the water system at
a base level.
As customers consume water, there are additional costs associated with providing service to the
customers. Revenue to cover these costs is referred to as consumptive revenue.
1998 PROJECTED ANNUAL OPERATING COSTS = $72,455
EM2 planned the operating costs on an hourly basis. Because there is only limited history for
the City of Eagle water system, the documentation for line by line planning is not available.
1998 Projected hours
1998 Labor rate
1,325
$23.55
1,325 hours / 2,080 hours (work hours per year) = 64% of one person's time.
If hours exceed the 1,325 estimated, City will have no additional financial obligation.
For the cost of 64% of one person's time the City of Eagle will have the benefit of:
Customer Service Representatives
Meter Readers and Field Service Personnel
Accountants
Availability of Engineers with vast water experience
Availability of Hydro -geologist
Certified pump operators
Micro -biologists
Computer and advanced system specialists
Computer mapping digitizers
Certified Transmission and Distribution field personnel
Administrative/Community relations representatives.
5
This hourly rate includes all of the above personnel, plus the associated overheads;
preparing and mailing billings, billing equipment and programs; power bills; electronic
devise that provides continual monitoring of pump and well; transportation costs and all of
the services listed below.
1997
1992
Difference
Proiected Revenues Proiected Exnenses
$75,969 $72,455
Billed Revenues Billed Exnenses
$41,624 $39,276
$34,345 $33.179
The increase in expenses represents the following:
$ 4,910 Inflation for 5 years
6,325 Power bills now being paid by EM2 instead of City
13,660 400 hours of additional labor related costs
960 Maintenance on pump and well monitoring equipment
7324 Additional maintenance, transportation and operations costs
$33,179
Annual expense per customer for the Eagle City water system - $157.51
Annual expense per customer for the United Water Idaho system - $170.59
The expenses outlined are fairly standard 0 & M costs throughout the industry for well -operated
and maintained water systems. The expenses will vary depending on the level of service
expected/demanded by the customers, chemical expenses, the heightened technical requirements
of a growing water system and the commitment of the system owner to provide customer service
that will safeguard the public's health and welfare.
The revenue requirement or rates charged in the Eagle City water system reflect the projected
costs to operate and maintain the water system. These costs are less than many small water
systems throughout this area who bill a flat rate of $20 to $25 per month depending on the age
and condition of the water system. Small water systems that are not well maintained become a
homeowner's nightmare. Eagle City rates are also less than United Water Idaho rates for they
do not reflect the related expenses for capital expenditures, ie., return on equity, interest,
depreciation. Water rates throughout Idaho vary widely depending on their capital structure,
ground water or surface water system, developer rules for expansion of system, the accounting
for revenue and expenses as a stand alone system or as an integrated public works department,
etc. Every water system is unique; therefore, every rate structure must reflect the system's
unique features.
CUSTOMER SERVICE DEPARTMENT
Meter reading
Meter box maintenance
Meter sets
Turning meters on and off as required by customers
Prepare and mail water billings to customers
Customer service calls, order processing and leak checks
Payment processing and posting
Bank deposits, NSF check processing
Collection and processing of delinquent payments
ACCOUNTING DEPARTMENT
Accounts payable and receivable
Payroll processing and related reports
M & J billings
ENGINEERING DEPARTMENT
Availability for design and certification of water system
Availability for capital planning and forecasting for system additions
and/or replacements
Availability to provide assistance regarding regulatory approvals for well -sites,
well construction and water rights
Availability to inspect well construction in progress and related pump testing
PRODUCTION DEPARTMENT
Checking pumps and wells three times per week (every other day)
Read meter at each well to determine water pumped, check operations of pumps,
maintenance of pump houses, takes and process water samples
Work with DEQ to insure all water quality standards have been met
Repair pumps and maintain wells
Preventative maintenance of pumps and wells
Respond to customer calls -- water quality and pressure
Provide 24 hour a day monitoring and emergency call out
AUTOMATED SYSTEMS DEPARTMENT
Maintain RTU and related SCADA and communications equipment
Update and maintain water system maps
. Maintain databases as needed
TRANSMISSION AND DISTRIBUTION DEPARTMENT
Operations and maintenance of water mains and services
Repair leaks and main breaks
Disinfecting of system repairs to insure water quality
Response to line locations calls to prevent dig -ins during construction
Administer Eagle City's Cross Connection/Backflow ordinance
Pressure tests and related activities
Fire hydrant operations and flow tests
System flushing
ADMINISTRATION
Direct responsibility for the City of Eagle water contracts
Interface with City Mayor and City Council
Community relations
CITY OPERATED WATER SYSTEM
(Estimated costs for comparison purposes only)
One employee, wages & overheads ($17 + 35%) $47,736
(24 hour on call)
One truck and related expenses 7,000
Preparation and mailing of billings (.56/bill) 3,100
Power bills 6,325
Training and certification of employee 600
Water main/service locator and tools 1,000
Sampling supplies and sample processing 3,000
Office personnel, payment processing, customer
service, order processing, bank deposits,
office supplies, etc. 10.000
Total $78,761
This would not include such services as engineering, 24 hour electronic monitoring of wells and
pumps, well construction and water rights expertise, digital mapping service, repair and
maintenance costs (City would not have Backhoe, Dump Truck, Compressor), and experienced
oversight of water system.
2
CONNECTION FEES
$850.00 EACH RESIDENTIAL CONNECTION
$120 RESIDENTIAL METER
200 CITY OF EAGLE WATER FUND
530 LEXINGTON HILLS - WATER MAIN
INSTALLATION
$850
WATER MAIN EXTENSION AGREEMENT
DEVELOPER'S RESPONSIBILITY
• 6 YEAR PAYBACK AGREEMENT
• 775 LOTS @ $530 FROM CONNECTION FEE
• GUARANTEED BY DEVELOPERS
CITY OF EAGLE - NO FINANCIAL PAYBACK OBLIGATION
CITY OF EAGLE WATER FUND
• 775 LOTS @ $200 FROM CONNECTION FEE = $155,000
• CURRENT FUND +1- $40,000
EM2 STRENGTHS
EAGLE CITY WATER SYSTEM
Highly trained certified personnel with the expertise to assure efficient operations and
maintenance of City Water System.
Sufficient financial strength to fund necessary capital projects.
Updated knowledge of regulatory requirements, i.e., Safe Drinking Water Act, DEQ
regulations, Water Rights issues, Source of Supply protection, Cross Connection Control
Certification.
Reliable water supply to provide 1500 gallons per minute fire capacity, allowing for the
existing Floating Feather Well to meet current and future water demands.
Engineering of proposed water main and hydraulic analysis of existing water system to
guarantee required fire capacity.
Sufficient pressure to supply fire capacities for both existing (unlooped) and planned
(looped) water distribution systems.
SCADA control (communication link) through existing telemetry at Floating Feather Well
site and Lexington ICUs Well.
1. Immediate response to fire demands
2. Control of water supply from the operations center
Standby power at Floating Feather well site to assure uninterrupted water flow during
power outages.
ks.7-8-97
City of Eagle Proposal
EM2 Proposal
Annual Operating Cost:
Customers
5 YEAR
1998 1999 2000 2001 2002 SUMMARY
$ 72,563 $ 86,011 $ 100,216 $ 115,200 $ 131,002 $ 504,992
460 535 610 685 760
Services Provided:
Administrative,management, engineering service
Operation and maintenance Wells/Pumps/Motors
SCADA monitoring i
Meter reading services/Customer service
Maintenence of Mains/Services/Boxes, etc.
FlushingNalve exercise
Customer Service-quality/pressure,etc
Locations i Water Quality Compliance
Cost Breakdown:
Hours 1 1,325 1,520 1,720 1,910 2,100
Labor Rate $ 23.55 $ 24.40 $ 25.10 $ 26.00 $ 26.85
Payroll /Transportation/Material and Supply 72% 72% 72% 72% 72%
Administrative OH 1 35% 35% 35% 35% 35%
Total Cost $ 72,455 $ 86,118 $ 100,245 $ 115,311 $ 130,863 $ 504,992
Water Rates Design:
Customers 460 535 610 685 760
Customer Charge(Annual) $ 82.32 $ 82.32 $ 82.32 $ 82.32 $ 82.32
Fixed Revenue $ 37,867 $ 44,041 $ 50,215 $ 56,389 $ 62,563 $ 251,076
Usage in CCF 52,794 61,580 70,366 79,152 87,938,
Price per CCF $ 0.7217 $ 0.7217 $ 0.7217 $ 0.7217 $ 0.7217
Consumptive Revenue $ 38,101 $ 44,442 $ 50,783 $ 57,124 $ 63,465 $ 253,916
Total Revenue
$ 75,969 $ 88,483 $ 100,998 $ 113,513 $ 126,028 $ 504,992
EXHIBIT B
CITY OF EAGLE
GENERAL METERED SERVICE
Availability:
To all metered customers.
Customer Charges:
Monthly
Meter Size Per Meter Charge
5/8" $6.86
3/4" 6.86
1" 8.54
1-1/4" and 1-1/2" 12.74
2" or multiple meters of equivalent capacity 17.78
3" or multiple meters of equivalent capacity 31.22
4" or multiple meters of equivalent capacity 46.34
Volume Chane:
Metered water used per 100 cubic feet (CCF):
Conditions of Contract:
$ 0.72
The customer shall be billed monthly the customer charge plus the volume charge. 'The volume charge is
based on all metered water for the billing period. The customer charge will be prorated whenever the
customer has not been a customer for the entire billing period.
A Connection Fee shall be no less than $850.00 per residential lot or equivalent residential connection.
Issued: Commencement Date
Under authority of City of Eagle
WATER SERVICE AGREEMENT - 10
EM2\ainend.cln
Effective: Commencement Date
lz
IDAHO PUBLIC UTILITES COMMISSION
APPROVED EFFECTIVE
Ei' JUN 11'86 JUN 1-'86
•
I.P.U.C. NO.
ltd Revised Sheet No. 2
LEXIAJTOM HILLS
EC1-FO CRFEk
Availability:
To all metered custon ers.
?ates:'
X4 f d ra- SECRETARY
SCHEDULE NO. 2
METERED SERVICE
4i -ten -et /)20-vt14.-d—
Monthly
Etriyittel
First 600 cu. ft. or less $6.86
All Over OQ cu. ft. per 100 cu. ft. .42
Minimum Charges: Monthly Per Meter
Cu. Ft.
Meter Size., Allowed Charm
3/4" and smaller 600 $ 6.86
1" 1,000 8.54
1 1/4" and 1 1/2" 2,000 12.74
2" 3,200 17.78
3" or multiple meter of equivalent capacity 6,400 31.22
4" or multiple meter of equivalent capacity 10,000 46:34
conditions of Contract:
The customer shall pay the minimum charge only when the amount resultiing from
applying the rates to the quantity of water used is less than the minimum charge.
Issued: Per Order No. 20532
SOUTH COUNTY
13y
Keith Stokes
TER COMP NY
Effective: June 1, 1986
Title: President
13
UNITED WATER
FLOATING
FEATHER WELL
EAGLE ROAD
CITY OF EAGLE
LEXINGTON
WELL #2
LEXINGTON
HILLS
CITY OF EAGLE
LEXINGTON
WELL #1
FLOATING FEATHER ROAD
CITY OF EAGLE
12" WATER MAIN
DESCRIPTION OF A CHECK/ LEGEND
PRESSURE REDUCING VALVE
CITY OF EAGLE
A CHECK OR PRESSURE REDUCING VALVE WILL 12" WATER MAIN
ALLOW WATER TO FLOW FROM UNITED WATER'S
SYSTEM INTO LEXINGTON HILLS AND TRAIL CREEK
SUBDIVISIONS ONLY WATER FROM THE CITY OF
EAGLE'S SYSTEM (LEXINGTON HILLS) I5 NOT ABLE
TO FLOW INTO UNITED WATERS SYSTEM THROUGH
THESE VALVES, WHICH ARE THE ONLY TWO
CONNECTIONS BETWEEN THE TWO WATER SYSTEMS • CHECK / PRESSURE
REDUCING VALVE
UNITED WATER
16 WATER MAIN
EDGEW00D
x
TAIL DR v
16" WATER MAIN
W
UnitedWater
nit
CHECK / PRESSURE
REDUCING VALVES
UNITED WATER IDAHO
8248 W. VICTORY ROAD
8015E, IDAHO 83709
LEXINGTON HILLS
CHECK / PRESSURE REDUCING VALVE LOCATIONS
DESIGNED BY- TLF
DRAWN BY: DLS
CHECKED BY.
SCALE- 1"=1000'
DATE FEB 1998
REVISED -
SHEET 1
CEA NO. C97D102
UNITED WATER
FLOATING
1pFEATHER WELL
EAGLE ROAD
CITY OF EAGLE
LEXINGTON
WELL #2
LEXINGTON
HILLS
CITY OF EAGLE
LEXINGTON
WELL #1
FLOATING FEATHER ROAD
CITY OF EAGLE
12" WATER MAIN
DESCRIPTION OF A CHECK/ LEGEND
PRESSURE REDUCING VALVE
CITY OF EAGLE
A CHECK OR PRESSURE REDUCING VALVE WILL 12" WATER MAIN
ALLOW WATER TO FLOW FROM UNITED WATER "5
SYSTEM INTO LEXINGTON HILLS AND TRAIL CREEK
SUBDIVISIONS ONLY. WATER FROM THE CITY OF
EAGLE'S SYSTEM (LEXINGTON HILLS) IS NOT ABLE
TO FLOW INTO UNITED WATERS SYSTEM THROUGH
THESE VALVES, WHICH ARE THE ONLY TWO
CONNECTIONS BETWEEN THE TWO WATER SYSTEMS • CHECK / PRESSURE
REDUCING VALVE
UNITED WATER
16" WATER MAIN!
EDGEWOOD
x
TAR DR
W
J
UNITED Wc6ER
16" WATER MAIN
CHECK / PRESSURE
REDUCING VALVES
UnitedWater
LE)
UNITED WATER IDAHO
8248 W VICTORY ROAD
8015E. IDAHO 83709
LEXINGTON HILLS
CHECK / PRESSURE REDUCING VALVE LOCATIONS
DESIGNED BY: TLF DATE. FEB. 1998
DRAWN BY. DLS REVISED.
CHECKED BY: SHEET 1
SCALE 1"=1000'
CEA NO C97D102