Pella Chronicle

August 15, 2013

Final payment authorized for compliance project

By Clint Brown The Chronicle
The Pella Chronicle

---- — During last Tuesday evening, the Pella City Council approved a resolution accepting Improvements and Authorizing Final Payment to for the Diesel Engine RICE NESHAP Compliance Project.

This resolution accepts the improvements and authorizes final payment of $78,332 to CSE Enterprises, LLC for work associated with the project known as Diesel Engine RICE NESHAP Compliance Project.

Council approved the contract with CSE Enterprises on November 5, 2012 in the amount of $456,000 for the work consisting of replacing the existing silencer with a combination silencer catalyst and installing a closed crankcase ventilation system. On March 5, 2013, Change Order No. 1 was approved for the installation of compliance monitoring equipment. Final documents have been reviewed and the Engineer’s Statement of Final Completion signed.

Council also approved a resolution Fixing Date for a Public Hearing on the Proposal to Enter into a Development Agreement with Mill Farm Partners, L.L.C.

This resolution establishes August 20, 2013 as the public hearing date for a proposed development agreement with Mill Farm Partners, LLC, and authorizes staff to provide the required public notices.

In December of 2012 the City Council approved a conditional resolution of support for the Overland Property Group’s proposed Section 42 Housing Development referred to as the Mill Farm Housing Development. This housing project will consist of a 32-unit affordable housing complex in the View Point subdivision in Pella, adjacent to the Sports Page Grill and across from the Ulrich dealership.

Since Council’s approval of the conditional resolution of support last December, the Iowa Finance Authority has awarded housing tax credits for the project, and the developer intends to proceed with constructing the project. However, the project is contingent upon receiving the community match as stated in the City’s conditional resolution of support.

The estimated valuation of the property is approximately $5.2 million and according to the Marion County Assessor, the property would be taxed based on a formula received by the State of Iowa, which takes into consideration the income generated by the property. For other Section 42 housing developments in Marion County, this rate ranges between 15 and 50 percent of what the property would pay for property taxes if it was not Section 42.

The key conditions of the proposed development agreement are:

1) The Development Agreement requires the Mill Farm Partners, L.L.C- to build a 32-unit affordable multi-family complex in the View Point subdivision in Pella with a construction investment of approximately $5.2m million. The units will be Section 42 Housing with half of the units ADA-accessible.

2) The Development Agreement requires the developer to maintain units as Section 42 Housing for at least 30 years. In addition, the agreement restricts the Mill Farm Partners from converting any of the units to

Section 8 Housing prior to the termination date of the agreement which is December 31, 2043.

3) The Development Agreement authorizes property tax: rebates through tax increment financing over a fifteen year period time up to a maximum of $290,000. In addition, the agreement also includes development fee waivers of up to $20,000 (i.e. building permit fee, engineering review fees, etc.).

In other business

-Council approved a resolution for Change Order No. 3 for the Sents Creek Equalization Basin and Lift Station No. 2 Improvements. This resolution approves Change Order No. 3 in the amount of $32,115.53 with C.L. Carroll Co. Change Order No, 3 contains 9 items that were design improvements made during construction and quantity adjustments that were not known prior to starting construction.

-Council approved a resolution accepting Professional Services Agreement between The City of Pella and DeWild Grant

Reckert and Associates Company (DGR) in Connection with the Supervisory Control and Data Acquisition (SCADA) Upgrades in the amount of $58,700 for the design of electrical relays and communication processors for the City’s 12.5kV distribution system to allow them to communicate with the City’s electrical SCADA system thru the electric utility’s fiber optic network. An electrical relay is a protective device that signals the electrical breaker when to open. The advantage of having the relays communicate across fiber is that it will provide enhanced protection and the ability to clear electrical faults and other problems on the system in more timely fashion than we are currently able to. Staff also believes by enhancing communication between the relays we will improve coordination, thereby improving system reliability.

As a part of the construction of the Southeast Switching Station (SESS), the City installed our fiber network optic between the new switching station and our electrical substations. Initially, the fiber optic network connected the 69 kV electrical transmission electrical relays to the City’s SCADA system. Now that Pella will have connected the transmission electrical relays to the SCADA system, City staff would like to proceed with connecting the distribution relays (12.5 kV) via the fiber network. In addition to engineering fees, the project will also involve the purchase of electrical relays and processors, which is estimated to cost $45,000. The tentative timeline for completion is January 1, 2014.