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06-01-88 Public Works Comm Minutes1, 1988 PUBLIC WORKS/PUBLIC SAFETY 4:00 Y.M. SEWER AND WATER COMMITTEE MINUTES Attendance: Chairman Gunnerson, Councilwoman Hafferman and Councilman Schindler. Others Present: City Attorney Neier, DPW Hammer, Community Development Director Gallagher, Police Chief Clark, Fire Chief Waggener, City Clerk/Treasurer Halver, City Accountant Robertson, Susan Moyer, Community Development, Surveyor Zavodny, Street Supt. Brady, W/S Supt. Hyde, Jay Billmayer, Billmayer Engineering, Jim Lynch, Nu-Pac, Dana Christensen, Murphy, Robinson, Heckathorn & Phillips, Dave Miller, McElroy & Wilken. Vice Chairwoman Hafferman opened the meeting with the following first agenda item. PARKHILL ROAD Surveyor Zavodny gave a brief description of the parking problem on Parkhill Road resulting from traffic for the Montessouri School. He stated the Police Department and the school have worked out an educational solution to the problem. The parents of the students will be informed to not park on the adjacent properties' lawn. DR. MADSEN - SITE PLAN Surveyor Zavodny stated Dr. Madsen, who has a dental office on 1st Ave. W.N., has been into the Public Works Office on many occasions with several concepts that he is working on. The Public Works Department will continue to work with Dr. Madsen until there is a plan designed that is satisfactory to everyone and will make a recommendation at that time. STREET MAINTENANCE DPW Hammer stated, for informational purposes, the Street Department has begun the street maintenance program. Street reconstruction is not going on at present due to the uncertainty of funding for other relating projects. He stated that street maintenance is more difficult than most people realize. Curbing, drainage problems, raising sewer lids or gate valves all have to be addressed when conducting . street maintenance. ALLEYS DPW Hammer questioned the Committee if the Public Works Department should continue to work under past/present policy in regard to the paving of alleys. There are people willing to pay for their alley to be paved. The Committee agreed to continue with the current policy until further notice. DPW Hammer stated that each year the Public Works Department oils the alleys and the cost is approximately $43,000. With the paving of these alleys, a portion of the cost for oiling is eliminated. RECOMMENDATION - AWARD OF BIDS: DPW Hammer stated the recommendation of the Public Works Staff to award the bids as follows: 1) Pipe Bedding: Nu-Pac and Co., $3.00/ton, 2) Crushed Base: Nu-Pac and Co., $3.00/ton, 3) General Excavation: Nu-Pac and Co., $50.00/hour, 4) Hot Mix: A-1 Paving, $16.60, 5) Truck Rental: Nu-Pac and Co., $34.00/hour, 6 & 7) Uncrushed Sub -base 6" and Uncrushed Sub -base 12": The Public Works Staff would recommend the low bid of $ .85/ton for 6" and $ .70/ton for 12" be awarded to Nu-Pac and Co. with concerns. The concern of the Public Works Staff in relation to 6" and 12" uncrushed sub -base is based on past experience between the City of Kalispell and Nu-Pac and Co. DPW Hammer stated that he wants everyone to understand the rejection of materials. C. Schindler stated the City can reject the material if it does not meet the specifications and the vendor should bear the expense to remove the material. C. Gunnerson stated he was in agreement as long as the contract is prepared with this statement included. Discussion then took place in regard to definitions of the specifications for 6" Uncrushed Sub -base. .i;Sne 1, 1988 PUBLIC WORKS/PUBLIC SAFETY SEWER AND WATER COMMITTEE MINUTES Page 2 0 City Attorney Neier stated that if a load is received that is larger than 6", the City can reject the load and require the contractor to bear the expense. DPW Hammer stated that the specifications stated only that the City could reject the load. The specifications did not address who will bear the expense of hauling. He questioned who would be responsible for returning the load. C. Schindler pointed out that it costs the City a lot of money to run the loads back to the pit. Mr. Lynch stated he couldn't control a few rocks over 8" - 12" being loaded into trucks. He went on to state that the 6" uncrushed sub -base is not run through a screen. There is a specified area within the pit where the gravel is larger. DPW Hammer agreed that not every rock can be controlled, but only as far as 3%. He pointed out the City has received full truck loads of large rocks. C. Schindler requested Nu-Pac and Co. to tighten their specifications so the City would not receive this type of load. Mr. Lynch stated some oversized rocks are still going to be received. His pit is not any different for this type of sub -base than any other pit. C. Schindler questioned whether Nu-Pac could keep the load within 3%. Mr. Lynch responded yes. Surveyor Zavodny questioned if the City orders 6" sub -base and the load that arrives is 40 basically all over 6", what happens next? Mr. Lynch stated that if a load arrives that is all bigger than 6", he will remove the load. Surveyor Zavodny questioned what if the load is only 50%, 30%, etc., filled with rocks over 6"9 Mr. Lynch stated he is allowed 3% over the specifications before removing the load. C. Gunnerson stated the City will adhere to the 3% as long as the specifications are adhered as well. DPW Hammer stated that cooperation is all the staff is requesting. C. Gunnerson stated he was in agreement with DPW Hammer and this can be brought as a motion to the Council floor and would address the situation in order to obtain cooperation from both sides. C. Gunnerson asked if there were more questions or comments. DPW Hammer stated if for some reason the contractor who is awarded the bid could not furnish materials or trucks, the City would need to go to the next lowest bidder. City Attorney Neier stated that the right for the City to go to the next lowest bidder could be accomplished by inclusion in the contract. Motion: C vote C. to Council to ac ALARM SYSTEM Police Chief Clark stated he had prepared a memo which states that the Police Department does not have a problem monitoring the existing alarms in the dispatch office. The Police Department would prefer that the present "dedicated loop" circuitry be updated to a total digital alarm system which provides various advantages. There would only be a cost to the City for the existing City alarms for sewer and water at the sending units. 3µne 1, 1988 PUBLIC WORKS/PUBLIC SAFETY SEWER AND WATER COMMITTEE MINUTES Page 3 Motion: C. Schindler moved the Committee recommend to Council the recommendation of the Police Chief. • Police Chief Clark stated that the recommendation is from the Police Department and deferred any legality to City Attorney Neier. City Attorney Meier stated he did not have a memo prepared at this time, but reiterated a statement he made in an earlier meeting. He stated the City is assuming some liability in having the alarms located in the Police Department that the City doesn't have to assume. C. Gunnerson stated this issue could be brought to the Coundil floor on Monday, June 6, 1988. He then called for a second to the motion made by C. Schindler. C. Hafferman seconded. The motion carried in favor upon roll call vote. FIRST ALLEY WEST FUNDING DPW Hammer presented the Committee with a prepared packet in regard to Capital Improvement Projects & Funding and a recommendation on the First Alley West Project. (copy attached) He then stated a brief history from the origination of the project to date. DPW Hammer recommends the project be constructed during the budget year of 1988-89, and possibly borrow the funds or register warrants. In addition, DPW Hammer suggested the project be constructed in two phases. A detailed discussion of the available funding and the possibilities of borrowing money for the First Alley West project took place. There are contingencies based upon what the Tax Increment Budget will be. The Tax Increment Budget has to be fixed and then a decision of priorities has to be made before tying down any funding for the various requested projects, which includes requests by the Public Works Department, Parking Commission and Police Department. City Accountant Robertson stated the concern of the First Alley West project is the Tax Increment money. In order to do the project, a contribution of $448,000 for Tax Increment must be received. She stated that she will prepare a loan request for a Cash Anticipation Program the State of Montana has available. There is a low interest rate of approximately 3%. She stressed that in order to obtain the loan, the City has to prepare a budget based upon actual collections, not what the county bills out, and the money has to be paid back by June of 1989. There is no carry forward. Director Gallagher stated of the Tax Increment funds he will bring the information gained from the Public Works Committee meeting and meet with the Tax Increment Committee to reach a recommendation for the Council to review. He stressed that the Tax Increment Committee is only an advisory committee. C. Schindler suggested the City install only the sewer at this time. Mr. Billmayer stated the alley surface is gone, the cost is in the surface replacement. DPW Hammer stated the original estimate before the decision to go underground was for $179,000 to replace the sewer. C. Gunnerson requested City Accountant Robertson to make a recommendation for First Alley West and funding. City Accountant Robertson stated she did not have an opinion on the construction or the need for the project. The financing can be arranged by loan for what would be needed to borrow, provided the money is paid back in the specified time period. Jyne 1, 1988 PUBLIC WORKS/PUBLIC SAFETY Page 4 SEWER AND WATER COMMITTEE MINUTES meet, • to the t on Monday. June is hav Committee t WOODLAND SEWER EXTENSION - SCOREBOARD W/S Supt. Hyde presented a memo of recommendation to award the construction bid of the Woodland Sewer Extension to LHC, Inc., based upon the engineer's estimate and recommendation. LHC, Inc.'s bid is for $16,866.88. The funds to pay for the job will come out of the budget for fiscal year 1988-89. C. G unperson stated his concern for the Scoreboard Bar not owning a portion of their property. DPW Hammer stated the Scoreboard has lost two of the lots and will only affect the project by not extending the sewer line as far as was originally planned. This does not alter the recommendation by the Public Works Staff. Motion: C. Schindler moved the Committee recommend to Council to award the bid to ie in favor upon roll call vote. SOUTHWEST KALISPELL - GRANT APPLICATION W/S Supt. Hyde stated Thomas, Dean 6 Hoskins have prepared the application for the EPA Grant portion of the Southwest Kalispell Sewer Project. W/S Supt. Hyde requested the Committee to recommend to Council to authorize Mayor Kennedy to sign the Southwest Kalispell Grant Application. tion: ant application. C. Gunnerson seconded. The motion carried upon roll call to wi •W/S Supt. Hyde stated, for information purposes, there will be a neighborhood meeting for the Southwest Kalispell project on June 15, 1988, 7:30 P.M., City Hall. Adjourned: 5:45 P.M. PW70044. 88 • P. ` a CITY Of John "Ed" Kennedy, Jr - _ i, tll:ll B// Drc cr 1997 Mayor Kalispell, Monlpnu 59903-1997 DATE: June 1, 1988 TO: Mayor Kennedy & All Council Members FROM: Ken Hammer, Director of Public Works, and Amy Robertson, City Accountant SUBJECT: Capital Improvement Projects & Funding As requested by the City Council, I have prepared a summary of the Capital Improvement Projects & Funding for your review. ECT EST. COST = SEWER + WATER + STORM + STREET + TAX INC + CDBG + EPA 1st Alley W. $ 711,042 = $262,500 $448,542 SW Kalispell 968,745 = 43,000 $145,000 $ 47,745 $338,000 $ 395,000 SW Kalispell 63,000 = 28,350 34,650 (In City) WWTP (Phos) 4,230,000 = 634,500 Streets-Recon. 812,485 = Maintenance Woodland Ext. 16,000 = 16,000 217,289 28,000 279,196 288,000 3,595,500 TOTAL $6,801,272 $984,350 $362,289 $28,000 $326,941 $736,542 $338,000 $4,025,150 oI.D. 337; Estimated cost: $354,808; Funds: Sewer - $133,000, Street - $24,161, EPA - $87,647, Bond - $110,000. • n U PW-0044-88 Mayor Kennedy & All Council Members June 1, 1988 Page 2 6/1/88 Cash, operating $ 345,069.12 Cash, R & D 105,810.23 $ 450,879.35 anticipated June revenue + 62,597.00 June expenses operating'' - 36,759.00 materials - 130,000.00 6/30/88 Cash $ 346,707.00 Crnmitted SW Kalispell - 145,000.00 Cash carryover $ 201,?0?.35 FY 89 Revenue + 751,202.00 fy88 actual Cperating expenses - 706,238.00 fy88 actual ($975,250) budget Amt.Available for other projects $ 246,671.35 or operating reserve. �• s 6/1/88 Cash, operating Cash, Capital Improvment anticipated June revenue June expenses June bond requirement 6/30/88 Cash Committed for 1st Alley Cash carryover FY 89 Revenue hook up-CIP fund Operating expenses bond requirements Amt. Available for other projects or operating reserve. $ 190,735.01 197,404.62 $ 388,139.63 + 65,314.00 - 51,361.00 - 25,863.00 $ 376,229-.-93 - 200,000.00 $ 176,229.63 + 800,666.00 t 25,000.00 - 506,339.00 fy88 actual - 310,356.00 $ 185,200.63 - P),, ($657,753) budget PW-0044-88 Maydr Kennedy & All June 1, 1988 Page 2A Council Members 6/l/88 cash balance $ 45,786.03 anticipated June Revenue + 1,000.00 June expenses - 15,000.00 bond transfers - 7,244.89 6/30/88 $ 24,541.14 FY 89 Revenue levied +173,847.26 delinquent 8% (13,900.00) Budget-100,500.00 debt service - 92,050.00 amt. Available for other projects $ 8,061.60 or operating reserve. • PW-0044-88 Mayor Kennedy & All Council Members June 1, 1988 Page 3 • FIRST ALLEY WEST Before reviewing the budget and funding for First Alley West, a brief history of this project is in order. Prior to 1984, the past Director of Public Works felt that a Sanitary Trunkline should be constructed from the east north area of Kalispell to the WWTP as an "express route" for the transportation of sewage. A trunkline is not a collection line. Collection lines collect sewage from specific areas and empty into the trunkline. The trunkline is the major sewage conveyance line. It is the pipeline that transports all the collected sewage to the WWTP. (IE: Expressway vs Alleyway) Prior to the installation of the trunkline in Fifth Ave. W. the collection system in First Alley West was also functioning as a trunkline. The T.V. inspection of this line conducted in 1981 revealed that the condition of the sewer line in First Alley West was deplorable. The potential for failure is quite apparent through viewing the videotape. If this sewer line failed, the entire East North Area of town would be backed up with no means to transport the sewage to the Wastewater Treatment Plant. Numerous structures and basements would be subjected to raw sewage until repairs could be made. Public Works Director Hammer and staff initiated the construction of the Sanitary Trunkline along Fifth Avenue West as the means in which to solve the problem. The trunkline was engineered with adequate capacities and strategic locations to serve the City well into the future. With this in mind, the sewer line in First Alley West was abandoned as a trunkline and was only needed to run the sewer from the buildings along First Alley West to the east -west collection line. It was this sewer line that created the need for the Sanitary Trunkline and thus the creation of the project "First Alley West". Initially, the replacement of the sewer line along First • Alley West was estimated at $179,000. It was at this time that the past City Council decided that other improvements were needed while the reconstruction of the sewer line was being considered. Those improvements were replacing the overhead wires and going underground. This concept has been approved by the past City Council. With all of the additional improvements, the project has recently been bid at approximately $648,542, with another $63,000 already paid to the consulting engineer for the design. The total costs will be approximately $738,542 if there are no change orders. This concludes the brief history of "First Alley West". IS THE PROJECT NECESSARY AND DOES THE CITY OF KALISPELL HAVE THE FUNDS AVAILABLE TO MAKE THE IMPROVEMENTS ALONG FIRST ALLEY WEST? Hopefully, this report will provide insight as to the Funds available and assist in the decision making process. Is the project necessary? YES, the sanitary sewer lines must be replaced. The past council as well as the present council is well aware of the project for going underground with the overhead wiring. Therefore, it is apparent that the major question is "Does the City of Kalispell have the Funds", and, if not, "How will this project be financed"? Does The City Of Kalispell Have Available Funds? If the City has available funds to proceed with the project, we should award the bid to the low bidder of Brown for $464,000 and proceed with the project. This answer depends upon the priorities of the City Council in consultation with the City Accountant and Mayor and the 1988-1989 Budget. If the City of Kalispell does not have all of the necessary funds available at this time, how do we proceed with the project? We have the following options: 1) The costs for the improvements along First Alley West will never be any lower than the bid by Brown for $464,000. We could borrow the money. 2) The project could be done in two phases consisting of installation of appurtenances for underground wiring, with the second phase being completed in the following budget year. 3) With the low bid of $464,000, it appears that it would be cheaper to borrow the money at an interest of 10% by doing the project now, rather than to rebid the project the following year and expect a bid of over $600,000. �_ rPW-0044-88 Mayor Kennedy & All Council Members June 1, 1988 Page 4 40 Recommendation: The Director of Public Works would recommend that the project be constructed during the budget year of 1988-89, and possibly borrowing the funds, or registering warrants. To attempt to sell bonds would delay the project, and in essence, probably rebid the project forcing the costs to rise to a predicted $600,000 plus. e