City Council Special Meeting/Strategic Session

125 S. Center Street City of Collinsville Collinsville, IL 62234 Minutes - Final City Council Special Meeting/Strategic Session Councilman Nancy Moss Councilman Jeff Kypta Councilman Jeff Stehman Councilman Cheryl Brombolich Mayor John Miller City Manager Mitch Bair Corporate Counsel Steve Giacoletto City Clerk Kim Wasser Monday, August 22, 2016 6:00 PM City Hall Training Room A. CALL MEETING TO ORDER Mayor Miller called the meeting to order at 6:00 p.m. B. ROLL CALL Also present were City Manager Mitch Bair, Public Works Director Dennis Kress, Scott Hunt of Hurst-Roche Engineers, Inc. and City Clerk Kim Wasser. Present 5 - Councilman Jeff Kypta, Councilman Jeff Stehman, Councilman Cheryl Brombolich, Councilman Nancy Moss, and Mayor John Miller Absent 0 C. SPEAKERS FROM THE FLOOR Speakers may address the Council under the terms of Ordinance No. 4765. Time is limited to 4 minutes per speaker. Please refer to the last page of the agenda for specific rules governing input. Bob DesPain spoke of Firefighters living outside City limits. He also mentioned Commission members who are not Collinsville residents. He spoke of the Library board. He mentioned their TIF application for parking lot improvements and ADA requirements. D. CITY COUNCIL 1. New Water Treatment Plant Project Public Works Director Dennis Kress introduced Scott Hunt of Hurst-Roche and indicated he will address project schedule and layout of the new water treatment facility. He indicated a delay in the City of Collinsville Page 1 Printed on 10/5/2016 City Council Special Meeting/Strategic Minutes - Final August 22, 2016 Session project was due to a lawsuit filed by C.A.R.D. with regard to the Sports Complex. Despite delay and additional cost associated, the new site makes for a better project. He advised that the new site allows for property to install new wells in future and one well already on-site. He also indicated water quality improves when moving further north. The plant will be located on the back portion of the property so that the front portion may be sold for future development. He explained that the project price increase is a result of the delay, moving to new site, and additional items which were added to the scope of the project. Director Kress gave a brief overview and history of the former site. He explained it was going to be constructed at the existing water treatment site and would encompass one ball diamond field, which caused a lawsuit to be filed with C.A.R.D. He further explained that 3 acres of the site was purchased through an OSLAD (Open Space Lands Acquisition and Development) grant with the Illinois Department of Natural Resources. Stipulations in the grant requires property to be converted out and replaced with additional property that must be developed for outdoor recreational use. The replacement property must be equal to property value (appraised at $98,500) plus cost of improvements and development for recreational purposes. City Manager Bair elaborated on the C.A.R.D. lawsuit and indicated City was unable to receive financing for the project while the lawsuit was pending. Director Kress continued is overview regarding the new site. The City purchased an overgrown lot at 9525 Collinsville Rd. which is just east of Shop n Save and Rural King. This was the former site of the United Stores which burnt down in the late 1960's and has been vacant since. The site was extremely overgrown and covered with pavement (remnants of the old foundation and parking lot). The lot is 10 acres. Prior to the purchase, Hurst-Roche did a site survey for construction feasibility. City has received the necessary permits and approval from the Corp of Engineers for wetlands remediation (1/10 of 1 acre was considered wet lands) with no mitigation required and they signed off on endangered species paperwork. Permits were received from the Illinois Historic Preservation Agency and Environment Protection Agency. He further explained the new site is 10 acres and was purchased for $55,000. Site development costs include: Appraisal and Feasibility Study - $12,000 Clearing of vegetation - $38,570 (City labor and equipment) Removal of trees - $11,000 Dirt Hauling $12,600 (City labor) Councilman Kypta inquired of using road construction debris as backfill. Director Kress advised City of Collinsville Page 2 Printed on 10/5/2016 City Council Special Meeting/Strategic Minutes - Final August 22, 2016 Session clean dirt is being used to build up the pad and access road. He indicated construction debris is not compactible. Director Kress also advised that he received a price quote from a contractor for hauling of dirt only at $750 per cubic yard but doing the work in-house cost approximately $2.70 cubic yard. Councilman Moss inquired of a target date to complete the dirt hauling and Director Kress indicated within the next 30 days, weather permitting. Director Kress spoke of the complaint regarding standing water at the site and indicated standing water has been located on the site for quite some time but just was not seen due to the overwhelming amount of overgrowth and accumulation of trash and debris. He mentioned 70-80 tires and an abundance of trash that was hauled off the site. Scott Hunt explained and displayed the new site layout. City Manager Bair advised the new site location is further away from school than the current water treatment plant and provides for better security since it is off of the frontage of the property. Director Kress indicated a 900 foot access road will be constructed leading to the facility and the plant will be surrounded with decorative fencing. Councilman Moss inquired of set backs or green space between front of water treatment plant and future development and if the access road would be utilized by future development. Mr. Hunt indicated there would be approximately 3.5 acres remaining after the plant development. Director Kress advised that future developer on the frontage would have access to the road and would only require curb cuts. Director Kress addressed the only design change of plant is the head tank location. The tank will be located behind the building instead of inside the building. The large ground space allowed for this change which also means a smaller footprint of the building. This also allows for expansion in the future. New site will allow for 4 wells. He indicated a separate booster system will be installed to allow for water storage off site; however, this cannot be located at the new site due to the overwhelming cost associated with EPA restrictions. Preliminary estimates for the storage tank is $400,000 or more and are not included in the presentation. Director Kress spoke of the need for water storage in the Sugarloaf area but infrastructure lacking. Mr. Hunt spoke of high service pumps that will be used and recommends the same booster system that is on the existing tank. Councilman Brombolich inquired of what will remain at the old site. Director Kress indicated, above ground, the blue storage tank and maintenance garage will stay and underground wells will remain. Mr. Hunt of Hurst-Roche gave a budget update. He indicated the original budget was $18,198,000 and is currently $19,793,000, increase of $1,595,000 which was caused by engineering redesign and construction costs. City Manager Bair elaborated on the particulars of the increase to include a 3% construction over over a 3 year period. Mr. Hunt continued to explain the reasons for cost increase in 3 categories: 1. New site costs - pavement removal, excavation - site elevation is lower than expected, aggregate City of Collinsville Page 3 Printed on 10/5/2016 City Council Special Meeting/Strategic Minutes - Final August 22, 2016 Session base, asphalt circle drive at end for truck egress, piping - infrastructure improvements, boring, electrical - new service for well and emergency generator and communication - IT equipment = $1,315,000 (66.9% overall increase). 2. Delay costs (would have occurred regardless of new site location due to 2 year delay), precast concrete, CO2 feed (this increase should have been included in 2014 proposal but was not), lime, filters and cones = $265,000 (13.5% overall increase). 3. Change of scope - wells, aluminum fence (City doesn't allow chain link), curb and gutters for access road (required by City for all development) and additional MIOX unit = $387,000 (19.6% of overall increase). He noted Ameren may charge a fee for the new electrical service but amount is unknown. Director Kress addressed project funding and recommended borrowing $18,500,000 toward the project, do not seek reimbursement for engineering fees by adding it to the loan (already paid for by bond), pay all overage with revenues accumulated from rate increase, and first payment due 6 months after completion of project. He indicated water rates were increased in January 2014 with revenues to date of $2,900,000 but approximately $5,000,000 in revenues prior to the first loan payment. He further explained the interest rate reduction due to delay from 2.24% to 1.8% = decreasing total interest obligation by $765,715.18 over life of loan and may drop again October 1 to 1.66%. Mr. Hunt gave a project schedule update: - Advertisement occurred 8/15/16 - Pre-bid meeting scheduled for 9/7/16 - Bid opening slated for 10/416 - Execute contract within 60 days - Establish loan commitment 30 to 45 days - Notice to Proceed slated for February 2017 - Start construction anytime after Notice to Proceed (weather permitting) - Plant Start Up in late summer 2018 - Overall completion (time to phase out old treatment facility) - Project completion slated for late 2018 to early 2019 - Loan repayment - first payment 6 months after completion Councilman Stehman inquired of the bid documents and Mr. Hunt indicated they will be produced as a lump sum big for a general contractor and EPA spells out bid specifications and qualifications. City of Collinsville Page 4 Printed on 10/5/2016 City Council Special Meeting/Strategic Minutes - Final August 22, 2016 Session E. ADJOURNMENT A motion was made by Councilman Brombolich, seconded by Councilman Stehman to adjourn at 7:15 p.m. The motion carried by the following vote: Aye: 5 - Councilman Kypta, Councilman Stehman, Councilman Brombolich, Councilman Moss, and Mayor Miller Nay: 0 Absent: 0 Abstain: 0 City of Collinsville Page 5 Printed on 10/5/2016 City Council Special Meeting/Strategic Minutes - Final August 22, 2016 Session ADDRESSING THE COUNCIL DURING SPEAKERS FROM THE FLOOR Below are the rules for input during City Council meetings as set out in Ordinance No. 4765 entitled “Ordinance Governing Speakers From the Floor During Meetings of the City Council and the Commission, Boards, and Sub-Bodies of Collinsville, Illinois”. Speakers may address the Council during the time designated as Speakers From the Floor on the agenda. RULE 1: Speakers shall be allowed only during “Speakers from the Floor,” or at any other time if requested by a member of the City Council. RULE 2: Input must relate to a matter under the authority of the City of Collinsville. RULE 3: Upon request by the meeting Chairman for speakers from the floor, a prospective speaker shall express the desire to speak, be recognized by the meeting Chairman, approach the designated podium, and state their name and general subject matter to which they will address the City Council. RULE 4: After establishing their identity, prospective speakers shall immediately address only the City Council. RULE 5: Each speaker is limited to four (4) minutes to address the City Council. No extensions will be granted and no time shall be compensated to the speaker resulting from interruptions by or discussion with the City Council, City Manager, or any other City officer or employee. RULE 6: Speakers shall address only the City Council collectively or its members individually. Speakers shall speak to issues and shall refrain from personal attacks on City appointed officials and employees. Speakers may not address issues related to pending litigation in which the City or its subsidiary bodies, officers, agents, employees, boards or commissions is a party. RULE 7: Speakers shall not be permitted to advertise, solicit, request, urge, summon, or cajole the City Council or the general public, except as otherwise provided for herein, with regard to any products, goods, services, information, gains, losses, advantages, consequences, or any other similar matter, notwithstanding that there may or may not be any pecuniary, monetary, financial or property gain, loss, or benefit to the speaker or any other person or entity. RULE 8: Speakers shall act and speak with decorum and conform to conventional social manners in speech, writing, dress, and behavior. The audience shall refrain from conduct that disrupts the meeting in any way such as clapping, booing, loud talking or outbursts. A speaker may be immediately terminated at the meeting Chairman’s discretion. RULE 9: Determination of breaches of this Ordinance shall be made by the meeting Chairman. The meeting Chairman customarily will warn the speaker or members of the audience of inappropriate behavior through one warning use of the gavel. Subsequent inappropriate behavior shall result in the immediate removal of the responsible parties at the discretion of the meeting Chairman. City of Collinsville Page 6 Printed on 10/5/2016