The Pella City Council held its last regular meeting of 2013 on Dec. 17. First on the agenda was discussion and a public hearing regarding Electric Revenue Capital Loan Notes.
A resolution was approved following the public hearing that institutes proceedings to take additional action for the authorization of a loan agreement and the issuance of not to exceed $4,000,000 Electric Revenue Capital Loan Notes and approves electronic bidding procedures and the official statement. The proceeds from the Notes will be used to provide funds to pay the costs of improvement and extensions to the municipal electric utility. This includes demolition of the existing power plant, acquisition and installation of control systems upgrade for the diesel plant, conversion of a portion of the electrical overhead distribution system to an underground distribution system, construction of the underground distribution system, and related site improvements.
The City, in conjunction with our Financial Advisor, Public Financial Management, Inc., has prepared a preliminary Official Statement outlining the details of the proposed sale of the Notes. Subject to revisions from bond counsel, Ahlers & Cooney, and Public Financial Management, Inc., this Official Statement will be distributed in connection with the offering of the Notes for sale.
The bidding for the Notes is scheduled for January 7, 2014. The terms of the sale include language to permit the use of electronic bidding. Per Iowa Code, Council needs to approve that the recommended procedure for bidding will provide reasonable security and maintain the integrity of the competitive bidding process and facilitate the delivery of bids by interested parties.
While the bond issue limit is listed as not to exceed $4.0 million, the proposed Electric Revenue Notes will be for $3.5 million with a ten year term to assist in funding for the following:
These Notes will be payable from the net earnings of the Municipal Electric Utility and shall not constitute general obligations or be payable in any manner by taxation by the City of Pella.
Council then proceeded to approved the first reading, waive second and third readings and adopt an ordinance for a right-of-way vacation request by U & Jean Properties.
U & Jean Properties, LLC requested the partial vacation of West 6th Street right-of-way immediately adjacent their property at 1400 Washington Street. The request was for the vacation of the west 20 feet of West 6th Street. Currently, part of their existing building encroaches into this right-of-way area.
The Comprehensive Plan identifies the street location in question as existing local street. As the existing right-of-way is 100 feet, the reduction to 80 foot width would still meet local street minimum requirements under the City's Subdivision Regulations, and the Public Works Department has no objection to the proposed vacation.
A public utility easement was proposed as part of the vacation ordinance to account for existing water and gas infrastructure in the north 60 feet of the area in question as per utility comments received.
The Planning and Zoning Commission at their November 25, 2013 regular meeting unanimously (10 to 0) recommended approval of the right-of-way vacation request subject to provision of public utility easement for the north 60 feet of the area to be vacated.
The purpose of this ordinance is to vacate the right of the general public use of the west 20 feet of West 6th Street, thereby relieving the City of responsibility for any maintenance and supervision, and allow for its exclusive use by U & Jean Properties, LLC. A public utility easement will be maintained along the north 60 feet. U & Jean Properties is considering a building expansion next spring.
Following another public hearing, council approved a resolution Approving Plans, Specifications, Form of Contract, Estimate of Costs, Receiving Bids and Making Award of Construction Contract for Indoor Pool Renovation Project.
The project consists of repairs and improvements to the mechanical system, boiler, air handling system, pool deck and basin, sprinkler system, exterior sealing, locker rooms, meeting room/public spaces and office area. The engineer's opinion of probable construction costs for this project is $3,024,173.
The City's engineer, Shive-Hattery, recommended awarding the contract to the lowest responsible bidder, Garling Construction of Belle Plain, Iowa, for $2,719,500.
Construction is scheduled to start in April 2014 with work scheduled to be completed by November 3, 2014. This resolution also gives the Community Services Director, Jeanette Vaughan, authorization to issue the notice to proceed once the contract, bonds, insurance certificates and appropriate permits are in proper order and fully executed.
Funding for the project will be from local option sales tax and bond issue that is currently planned for the spring of 2014.
A pair of resolutions, following public hearings, were also approved during the regular meeting, which approved easement agreements with Leighton State Bank and the City of Pella.
Leighton State Bank presented development plans for a proposed 4,961 square foot addition to the north of the existing main branch facility at 900 Washington and a new drive up facility located at 840 Washington Street. The estimated cost of these new facilities is over $3.0 million. In order for the facilities to be constructed, Leighton State Bank informed Council they would need easements from the City of Pella for additional parking and a conduit data line. After discussing the Leighton request, Council directed staff to prepare the necessary easement agreements to facilitate the construction of the new facilities. Listed below is a summary of the two easement requests:
Parking Easement Agreement - Resolution #5408
In order to construct the proposed 4,961 square foot addition to the north side of Leighton State Bank's main branch facility at 900 Washington Street, additional parking would need to be constructed. In order to construct the necessary parking, Leighton State Bank needs an easement to encroach into the West 1st Street Right-Of-Way (ROW). This resolution approves a parking easement agreement between the City of Pella and Leighton State Bank and includes the following:
-A permanent easement for construction, maintenance and repair of concrete paved parking for the area over and across the west eleven (11) feet of the West 1st Street right-of-way. It should be noted, this easement grant is expressly contingent upon the construction of a new main office addition on Grantee's property by December 31, 2016.
-The City reserves the sole and exclusive rights to the area below the surface of the Parking Easement area following completion of the improvements.
-The parking improvements shall be installed and constructed in such a manner as to not interfere with the public utilities which are or may be installed below the surface of the Parking Easement area, including but not limited to storm sewer, sanitary sewer, water, telephone and electricity.
-Leighton State Bank shall bear and promptly pay all costs and expenses of construction and maintenance of the improvements and the exercise of any easement rights granted under this Agreement.
-Indemnification/hold harmless provisions to protect the City against claims as a result of the Bank, their employees, agents or contractors.
Conduit Data Line Easement Agreement — Resolution #5409
This resolution approves a communication/data line easement agreement between the City of Pella and Leighton State Bank. As background, at the December 3, 2013 Policy and Planning meeting, Leighton requested they would like to establish a conduit data link between their new drive-up facility at 840 Washington Street, which is currently under construction, and their existing bank at 900 Washington Street. In order to establish a conduit data link between the two bank buildings, the new communication line would need to go through the West 1st Street right-of-way. In considering this request by Leighton State Bank, it is important to note, the estimated cost of Leighton State Bank's proposed addition to the north side of the current facility and the new drive-up facility located at the former Braafhart's Amoco Station is approximately $3.0 million. After considering the investment by Leighton State Bank in the community, Council directed staff to proceed with an easement agreement that would provide for the proposed conduit data line.
The proposed Communication/Data Line Easement Agreement includes the following:
-The City grants Leighton State Bank a permanent communications/data line easement across West 1st Street right-of-way (10 foot on either side of the line as legally described in the agreement). It is important to note, this easement grant is expressly contingent upon the construction of a new drive-up facility on Grantee's property by December 31, 2015.
-Leighton State Bank would need a temporary construction easement across West 1st Street right-of-way (30 feet on either side of the line as legally described in the agreement) that would automatically terminate and expire upon the earlier of (a) the date construction of the improvements is completed, or (b) December 31, 2014.
-The new conduit line would be placed at a depth requirement of 36 inches below the surface of West 1st Street.
-Leighton State Bank would bear and promptly pay all costs and expenses of construction and maintenance of the data communication link.
-If the City would allow Leighton State Bank an easement for the communications data line, they would be willing to provide the City with the necessary indemnification/hold harmless provisions to protect the City's interest in the West 1st Street ROW.
Leighton State Bank's current plans are to start construction on the main building addition after completion of the new drive up facility on the east side of West 1st Street in June of 2014.
In other council business
-Approved a resolution Authorizing the Submittal of the Five Year Capital Improvement Program for the Pella Municipal Airport for Possible FY 2015 Through 2019 Federal Aviation Administration (FAA).
Annually, the City receives $150,000 in entitlement funds from the federal government. To receive federal assistance at the airport, the City must submit to the Federal Aviation Administration (FAA) a projected five year Capital Improvement Program (CIP) and Long Range Needs Assessment.
The five year CIP can change annually with the needs and priorities of the facility, and the City is not obligated to undertake any of the projects. Rather, this plan will be used as a guide in drafting the capital improvement plan for the City's annual budget process. Major items included in the plan are:
FY 2016 pavement repairs and joint sealing to the airport runway for an estimated cost of $330,151.
Funding for the CIP projects will be 90% from federal funds with a 10% local match.
Currently, staff is working with the FAA on a pavement repair project for the construction season of 2014. Staff has received a go letter from the FAA on this project for a similar amount to the proposed 2016 project above and will be seeking engineering services through an individual project RFP process in the near future. Within the 2014 contract, staff plans to predominantly concentrate on pavement replacement and minimal joint sealing and then follow-up again in 2016 with additional pavement replacement and extensive joint sealing for the entire runway/apron.
-Approved a resolution approving Change Order No. 1 for the Pella Sports Park, Phase 1 Improvements in the amount of $42,851 with Todd Hackett Construction Co. for the Pella Sports Park..
Change Order Summary
1. Culvert Reinforcement $6,600: The Pella Sports Park includes installation of a 5' by 10' box culvert to be under the entrance road for project, which will then serve as an outlet for the irrigation pond. The plans and specifications for the street pavement for this area included a 6" rock subbase and 7" non-reinforced Portland cement concrete (PCC). However, based on subsequent reviews, staff believes additional reinforcement is necessary for this area to avoid concrete settlement failures over the box culver area. As a result, this change order would thicken the concrete over the box culvert area from 6" to 8" for a total cost of $6,600.
2. Extension of Water Main $5,283: In order to extend City water to the Sports Complex, it was necessary to extend an 8" inch water by an additional 50 feet over what was identified in the original plans and specifications. The total cost for the extension was $5,283. The original plans showed the existing 8" water main along Old Highway 163 to be located 50 feet, more or less further to the east that would have allowed a simple tapping tee to start north to the complex. Instead, the 8" pipe had to be extended approximately 50 feet east including moving the cap, thrust block and installing an in-line 8"x 8" x 8" tee in lieu of a tapping tee. Total cost $5,283.
3. Soil Replacement $30,971: Soil testing at the Sports Complex indicated potential compaction issues for the concession building, restroom facility, and maintenance building. As a result, it was necessary to replace approximately two feet of soil under the floor slabs of these facilities with 3/4 inch road stone.
Previously, the City Council has approved a total of $2,650,000 for the Pella Sports Park. Since the City desired to upgrade the maintenance facility to a size 50' X 80' to allow the Parks Department to relocate to the Pella Sports Park, staff believes 50 percent of the soil replacement for the maintenance building should be provided by the City. The City's total financial contribution for the project would increase to $2,657,000.
-Approved a resolution approving the Demolition Contract and Performance Bond for the Power Plant Deconstruction Project.
On December 3, 2013, Council identified NCM Demolition as the lowest responsible bidder for the City's Power Plant Deconstruction Project. The contractor has now secured the necessary performance bond and insurance certificate in accordance with the terms and conditions of the bid documents.
As a result, the City's power plant is no longer supplying energy for the City. Over the last several months, Bums and McDonnell has been working with City staff to develop plans and specifications and contract documents for the removal of the City's power plant from its current site and restoration of the area to green space.
This resolution approves the contract, performance bond, and insurance certificate with NCM Demolition for the Power Plant Deconstruction Project. Major contract provisions include the following:
Base Contract Price: The base contract price for the project is $1,388,000.
Boiler Abatement: If asbestos abatement is necessary for boilers at the power plant, the following lump sum pricing will be utilized: Boiler No. 6 - 136,000, Boiler No. 7 - $149,900, Boiler No. 8 - $41,300.
Substantial Completion: The project's substantial completion date is scheduled to be on or before July 7, 2014.
Funding for the project will be from the proposed $3,500,000 Electric Revenue Capital Note that is tentatively scheduled for Council approval in January of 2014.