Tuesday, May 1, 2012

News Items April 30, 2012


1.     PICKARD PARK: Glen indicated new stools have been installed in the restrooms and the sewer pipes cleaned out. Some debris was found in the pipes and possibly the cause for the backup problems. Staff will perform consistent monitoring and cleaning out of the sewer pipes to see if this will alleviate the backup issues. Glen will also work with an engineer regarding ADA compliance issues. A report will be forthcoming in the next couple months and an improvement project possibly part of the city’s next CIP. 

2.     FRANCHISE FEES:  As you know, I have been working with Ivan Webber, Ahlers Law Firm and he strongly advises we implement the same natural gas franchise fee amount for all classes of property. I therefore am recommending the city implement a 2% across the board fee September 1, 2012 and 3% September 1, 2013. Our first street project bond payment is a lower principal and interest payment in FY13 (very typical). The second year (FY13-14) the payments increase and could be offset by the phased in 3%. The 2%/3% would generate the following based on a full year:
                                                                 
2%             $  96,500                    
3%             $144,750        

The 4%/2% would have generated $171,650 which is approximately a .05 cent debt service tax rate difference. The public hearing will be set June 4 for June 18. I felt the 2/3 phased in approach could be a good compromise to the 4/2. Most agree with the phased in approach although one person has indicated a desire to start and remain at 3%.

A question of fairness was raised regarding those who do not pay natural gas to heat their homes. The city does receive (and has for many years) a payment-in-lieu-of-tax (PILOT) from IMU equal to 5% of electric gross sales. Therefore, those properties that use electric heat pay through their electric bill instead of a gas bill.


3.     EAST GIRARD: Attached is V&K’s response to Gina Seymour’s e-mails. Staff will perform televising as recommended. Soil Tek will be hired to provide the turf-reinforcing mat. Removal of the lower vertical bars will be performed by the Street Department and just to clarify the opening would be similar to what you see on a street (stormsewer drain).

4.     WELLNESS CENTER: Phase 1 of the sitework is complete according to Vanderpool. Design of the project will be available to potential bidders this week with bids due May 24, 2:00 p.m. city hall.

Just a reminder for your calendars, a special council meeting will be held Tuesday, May 29 (day after Memorial Day) at 6:00 p.m. to accept project bids and award a contract. Also, a Groundbreaking ceremony is tentatively scheduled for Tuesday, June 5. Details will be forthcoming.

5.     I&I: Greg Marchant and Eric Mathieu received complaints regarding the city’s I&I program and implementation from some individuals from Iowa Realty. See attached e-mails. I had Dan Miers, Wastewater Supt review each of these properties individually and attached his response as well. Copies of the city’s I&I and shared sewer service policies, the Iowa Dept of Natural Resources (IDNR) consent order and the city’s use of public sewer ordinance are all included for your review.

I&I is probably one of the most difficult programs the city has had to implement because it is such an expensive endeavor. The city issued $9 million in bonds in 2009 to repair/replace all public sewers and manholes by 2013 (consent order IDNR). The consent order indicates 300 properties per year shall be inspected for I&I and if found shall be removed by the property owner. Some fixes are more costly than others and can cost as much as $10,000. The city does provide low interest (4%) loans up to 10 years or a reimbursement up to $875 if paid in full. Repairs are not a one size fits all and the sewer dept only provides televising outside the home unless invited to do more extensive testing inside. I’m guessing buyers are requesting more testing before they make a purchase. Also, the rain events of the last few years have created many flooding and backup issues beyond anyone’s control.

Let me know if you believe discussion of the I&I process needs to be reviewed.