Pella Chronicle

July 28, 2013

Council adopts banner ordinance, makes amendment to loan and disbursement agreements


The Chronicle

Pella —

The Pella City Council approved and adopted, following waiving for second and third readings, an ordinance amendment for street right-of-way banners.

On February 19, 2013, the City Council adopted Resolution No. 5314 which is the City's Policy for Banners in the Public Right-of-Way (street banners). However, when the City adopted this resolution, they did not update City Code section 165.33 which contains provisions for both private property banners such as business temporary banners as well as the right-of-way banners. As a result, the right-of-way banner provisions in the City Code are not consistent with the Policy for Banners in the Public Right-of-Way and have not been updated.

The Community Development Committee reviewed and recommended approval of the proposed ordinance amendment at their May 8, 2013 meeting. The Planning and Zoning Commission approved the ordinance amendment at their June 24,2013 meeting.

The council then proceeded to approve a resolution approving and authorizing an amendment to Loan and Disbursement Agreements by and between the City of Pella and the Iowa Finance Authority, and Authorizing and providing for the reissuance of the $2,111,000 Sewer Revenue Capital Loan Note, R-1, Series 2000, the $1,604,000 Sewer Revenue Capital Loan Note, R-2, Series 2000, and the $2,800,000 Sewer Revenue Capital Loan Notes, Series 1999, of the City.

On December 20, 2000, the City issued two Sewer Revenue Capital Loan Notes with the Iowa Finance Authority for sewer improvement projects. One note was for $1,604,000 and one was for $2,111,000 of which only $641,000 was used and the remaining $1,470,000 was returned to the Iowa Finance Authority. The total amount authorized for those notes was $3,715,000 and only $2,245,000 was used. Prior to that, on December 21, 1999, the City issued Sewer Revenue Capital Loan Notes in the amount of $2,800,000 for sewer improvement projects.

Previously, the Iowa Finance Authority authorized a reduction in the interest rate on the 2000 Notes from 4.3% to 3% as of June 1, 2011 and the 1999 Notes from 3.92% to 3% as of June 1, 2010. The Iowa Finance Authority has reduced interest rates again from 3% to 1.75% due to growth in the program and careful financial management. Over the remaining 8 years of the Notes, the interest rate reductions will save the City $144,612.

This resolution approves an amendment to the Loan and Disbursement Agreements entered into as of December 28,2000 (Nos. R-l and R-2) and December 21,1999, between the City of Pella and the Iowa Finance Authority and authorizes the reissuance of the Sewer Revenue Capital Loan Notes to reflect the interest rate reduction to 1.75% per annum on the outstanding principal amounts starting June 1, 2013.

 

In other business

-Council approved a resolution Ordering Specifications, Form of Contract, Notice to Bidders, Setting Date for Public Hearing, Authorizing the Taking of Bids and Authorizing Bid Opening in Connection with the West Generating Plant Control System Upgrade Project. 

This resolution sets the date for the public hearing on August 20, 2013 for the project and authorizes the taking of bids.

The West Diesel Plant was constructed in 2002 and is comprised of fourteen 2 MW generator sets and associated switchgear. Each generator has a programmable logic controller (PLC) to automate operations, which are beginning to fail and are now obsolete. The Control System Upgrade Project will modernize the existing control system by replacing the system, which is to include fully automated plant-wide synchronization and load sharing capabilities. In addition, the upgrade involves reconfiguring how the units operate. When constructed in 2002, the plant was configured to provide black start capability to the coal plant if it were to go off-line. This configuration is no longer applicable and presents several operating restrictions that need be corrected. Additionally, the upgrades will allow the City to meet the requirements of the Dedicated Capacity Agreement with Missouri River Energy Services for connection, to their Wide Area Network for dispatching and scheduling of member owned generating units.

The Engineer's estimate for this project is $500,000

-Council approved a resolution Ordering the Preparation of Plans and Specifications, Form of Contract, Notice of Hearing and Letting, Setting Date for Public Hearing, Authorizing the Taking of Bids and Authorizing Bid Opening for the Street Overlay and Repair Project 2013. This resolution sets the date for the public hearing on August 6, 2013 and authorizes the taking of bids. 

Public Works staff continually monitors the condition of our streets. With the harsh winter this past several years and the many freeze/thaw cycles that we experienced, staff believes that is it critical to place a 2" asphalt overlay on the streets listed below as soon as possible. This overlay project will seal these streets and prevent water/ice from causing continued damage thereby prolonging the life of the entire street structure an estimated 10 to 15 years. The streets identified for FY 13/14 consist of the following;

-East 3rd St from Franklin to Washington 

-West 3rd St from Franklin to Washington 

-West 3rd St from University to Peace 

-Broadway St From Adams to Park Lane 

-Broadway St From University to Oskaloosa 

-Post Office Alley from Broadway to W. 1st

 

This project will include removing/milling 2" of old asphalt off and replacing with a new 2" asphalt overlay, m addition to the proposed contracted portion of the project, staff will be completing some curb replacement and repair and also correcting two large Portland Cement Concrete patches on Broadway. One will be lowering the old railroad bed just north of Huber Street and the other location will be north of Sunset where we plan to raise the low point and intakes. All of this in-house work will be completed prior to the 2" overlay.

Estimated project costs are $219,403 for the contracted portion of the project and an additional out-of-pocket cost of approximately $15,000 for a total project cost of $234,403.

-Approved a pair of resolution setting dates for a proposed amending No. 5 to the Pella Business Corridor Urban Renewal Plan and setting dates for the Mill Farm Housing Urban Renewal Plan. Public hearings will be held on Aug. 20 for on both issues.

On December 4, 2012, Council approved a conditional resolution of support for the Overland Property Group' s proposed Section 42 Housing Development referred to as the Mills 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. The estimated cost of the development is $5.2 million. A copy of the staff memo and resolution of support is included for Council' s review. 

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. Therefore, in order to comply with the previously approved conditional resolution of support, the City will need to create a new urban renewal area for the project. The reason a new urban renewal area is needed is because the proposed property tax rebates for the project are projected to occur over a fifteen year period of time which exceeds the remaining years left in the Pella Business Corridor Urban Renewal Plan. As a result,  the Pella Business Corridor Urban Renewal Plan will need to be amended to remove the proposed housing development from its boundaries. Likewise, the City Council will also need to create a new urban renewal area for the proposed housing development.