LaVerkin City Council Special Meeting Agenda Amended

Tuesday, January 19, 2010 6:00 p.m.

Council Chambers, 111 S. Main, LaVerkin, Utah

Tuesday, January 19, 2010 6:00 p.m.

A. Resolution R-2010____: Discussion and possible approval of a Resolution to adopt an update to the LaVerkin City Water Management and Conservation Plan.

B. Water Project Resolution R-2010___: Consideration for and adoption of a Bond Resolution authorizing the issuance of a $720,000 Parity Water Revenue Bond, Series 2010 of LaVerkin City, Washington County, Utah.

C. Bid Award for State Street Water Project: Possible Bid award and approval of contract for LaVerkin State Street Water Project.

D. Adjourn:

In compliance with the American with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify June Jeffery, City Recorder, (435) 635-2581, at least 48 hours in advance.

Certificate of Posting

The undersigned City Recorder does hereby certify that the agenda was sent to each member of the governing body, sent to the Spectrum newspaper,  posted on the State website at http://pmn.utah.gov, posted on the LaVerkin City website at www.laverkin.org

and in the following public places within LaVerkin City limits on this January 15, 2010.

These public places being: 1) LaVerkin City office building 111 S. Main; 2) LaVerkin City office building 435 N. Main;

June Jeffery, CMC

City Recorder

LaVerkin City Council Special Meeting Minutes

Tuesday, January 19, 2010 6:00 p.m.

Council Chambers, 111 S. Main, LaVerkin, Utah

Present: Mayor Karl Wilson; Councilmembers Ray Justice, Doug Beecher, Phil Jensen, Hugh Howard, Scott Stratton; Staff: Kyle Gubler, Attorney Kevin Bennett, June Jeffery, Derek Imlay, Troylinn Benson; Public: Russell Funk - Sunrise Engineering, Dave Kent - Ferguson Enterprises, Sam Jerman - Hawker Enterprises, Richard Chamberlain- Bond Counsel

Call to Order: Mayor Wilson called the meeting to order at 6:00 p.m. Prayer and Pledge of Allegiance - Karl Wilson.

Mayor Wilson stated that the special meeting was held because originally closing for the bond had been scheduled for the 20^th. That closing has since been moved to the 25^th, but preparations had been put in motion for this meeting. Rather than cancel, reschedule and cause possible confusion, the meeting was held.

Resolution R-2010-03: A Resolution to adopt an update to the LaVerkin City Water Management and Conservation Plan. Discussion that this update to the City's Water Management and Conservation Plan was made to meet State approval prior to the adoption to the Bond Resolution. Attorney Bennett has reviewed it and approved it to move forward with the LaVerkin City Culinary Water Improvements Project, 2010. Some of the goals that are included in the plan have already been met; the rest will be completed with the Water Project.

Hugh Howard wondered about the Emergency Conservation Plan referred to on page 6. The city has already adopted a plan for emergencies and will continue to update as it is needed. There is also a time-of-day ordinance and ordinances to promote the use of irrigation water. By using the secondary system, residents help to conserve the more costly culinary water.

Howard wondered about penalties. There were no penalties for the time-of-day or the stand-by fee ordinances. They were put in place as a "carrot" and not a "stick". When the time-of-day ordinance was passed, the city didn't own the irrigation system. Jensen clarified that at the time of passage, consideration was made that watering for crops is different than watering lawns. The council didn't want to penalize because of the difference in watering needs. There was discussion about metering irrigation water. Wilson doesn't see that happening in the near future. Next year the council would like to put a filtering system in place for the irrigation water. As long as there is no overage on the irrigation resource, and as long as the residents are wise in the use, there should be no reason to meter the irrigation.

Motion by Councilmember Beecher to approve Resolution R-2010-03 to adopt an update to the LaVerkin City Water Management and Conservation Plan, second by Councilmember Justice. Roll Call Vote: Stratton-yes, Beecher-yes, Justice-yes, Jensen-yes, Howard-yes. Motion carried unanimously.

Water Project Resolution R-2010-04: Consideration for and adoption of a Bond Resolution authorizing the issuance of a $720,000 Parity Water Revenue Bond, Series 2010 of LaVerkin City, Washington County, Utah.

Richard Chamberlain, bond counsel, appreciated the accommodations of the City Council to hold the special meeting to meet the original 20^th closing date. The closing was moved to the 25^th to meet the needs of State Officials. Chamberlain stated that the city approved a parameter resolution in early December that allowed the issuance of the bond for more than $700,000, which is more than required for the project. The State requires the resolution to allow for more than required in case bids come in above the projections and to allow for change orders. The parameter resolution allowed the city to publish the possible acceptance of a bond and it allowed for a 30-day window for any protest, before closure. Everything is in line to close with this bond. The resolution before the council now, is to issue the bond. This is a low-interest bond at 2.9%. It sets up an escrow account held by the State Treasurer, where the city's money will go. The account accrues some interest. Pay requests will go through the Department of Drinking Water and will draw from the escrow account to the city to pay invoices. Mayor and Treasurer will sign for the funds. The bond also creates a reserve account within the first 10 years. The city pledges revenue from its water system to pay back the bond.

Scott Stratton wondered what would happen if there is unused money. Chamberlain stated that the State expects the money to be used. He referred to using grant money in any way that will improve or maintain the system. Russ Funk clarified that since the money is all loan money, it can be used to extend the project. Chamberlain stated that since there is no grant money involved, extra funds could be given back at the end of the loan, but will not be used to reduce annual payments.

Ray Justice wondered about a "typo" in the amortization table. Chamberlain stated that 2019 and 2020 had printed on the same line, but that had been fixed in the final copy of the resolution.

Motion by Councilmember Howard to approve Resolution 2010-04 for adoption of a Bond Resolution authorizing the issuance of a $720,000 Parity Water Revenue Bond, Series 2010 of LaVerkin City, Washington County, Utah, second by Councilmember Beecher. Roll Call Vote: Howard-yes, Justice-yes, Jensen-yes, Stratton-yes, Beecher-yes. Motion carried unanimously.

Mayor Wilson stated that he, June and Troylinn would be in Richfield on the 25^th for a noon closing.

Bid Award for State Street Water Project: Russ Funk presented the Mayor and Council with a letter of "Notice of Award" for Hawker Enterprises for the LaVerkin City Culinary Water Improvement Project, 2010. Funk clarified that the original construction estimate was for a smaller project than what actually came about. As Derek Imlay and Doug Gubler met over the project, there were other things that figured into the work. The total is for the expanded scope of the project. The original estimate was for $580,000 and included some contingency. Bids were analyzed with the scope and prioritization of inclusions. Two cul-de-sacs have been removed from the project. They were located at 250 W. and 290 W. There is not sufficient need to upgrade these lines unless a hydrant was installed. 500 N. has also been removed from the project scope. It is possible at the end of the project, should funds provide, the items can be added back in with a change order. The State Street project will be completed first.

Items that were added into the project include three highway trenchless crossings with 10" lines. These crossings brought in the bids higher than expected. Hawker bid was $560,922.04. There was discussion from Scott Stratton about the crossing. There were two prices listed for the crossing. One allowed for a casing to be placed in a bore. The line would then run through the casing. It is more expensive, but is easier to replace if the need arises. The Hawker bid is for the lower-cost method. There is no casing, but HDPE pipe is place in the bore. The casing method would cost about $15,000 more.

Phil Jensen asked about Hawker Enterprises. They are located in St. George and have been in operation for about 6 years. Kyle Hawker is the owner/president of the company and worked for about 20 years with Bud Mahas construction. Sunrise has worked with Hawker and have been pleased with the work they do. Their forte is not streets, but underground, as much of this project will be. Questions about on-time project completion were answered as positive. There was also discussion about other projects the company may have under contract that could distract from completion of the LaVerkin project. The Hawker representative said that this is the only project on their books.

Karl Wilson stated that Sunrise Engineering would monitor this project. Funk said that there would be a full-time observer on-site. Notes will be taken as to installation specs, daily diary, weather conditions, quantity of pipe installed, and similar. The process has saved money by staying on top of projects. Budget can be tracked as well as completion. A weekly project meeting will be held as well as monthly reports to council. The project is for 75 days.

Motion by Councilmember Hugh Howard to approve the bid award to Hawker Enterprises for the LaVerkin Culinary Water Improvements Project, 2010, second by Councilmember Jensen. Discussion on the motion included that verbiage from a hand-out from the attorney be included in the motion. That verbiage is as follows: "(A) Consistent with and in accordance with the provisions of Section 34-30-1, Utah Code Annotated (1953, as amended) ("UCA"), CONTRACTOR agrees as follows: (1) that in employing workmen in the construction of the PROJECT, preference shall be given to citizens of the United States or those having declared their intention of becoming citizens; and (2) that if the provisions of the section are not complied with, this Contract shall be void. (B) The provisions of Title 43, Chapter 43, UCA, as applicable to municipal public works contracts, are (1) hereby incorporated as though fully set forth herein, and (2) binding upon the parties hereto."

Motion amended to include the approval of the following three provisions: the bid award to Hawker Enterprises, the provisions and specifications of the contract and contract documents, and the pre-stated verbiage as prepared by the city attorney. Amended Motion approved by Councilmember Howard, second approved by Councilmember Jensen. Roll Call Vote: Stratton-yes, Beecher-yes, Jensen-yes, Justice-yes, Howard-yes. Motion carried unanimously.

Adjourn: Motion by Councilmember Jensen, second by Councilmember Beecher. Motion carried unanimously.  6:37 p.m.

Minutes taken by June Jeffery

Date Approved, February 3, 2010

Signed: Mayor, Karl Wilson

ATTEST:

June Jeffery, CMC

City Recorder