HomeMy WebLinkAbout02-06-2012 cnvoF_ =��* � Public Works Committee
February 6, 2012 - 3:30 PM
Annex Room 2
- WASHINGTON MINUTES
I. CALL TO ORDER
Chairman Rich Wagner called the meeting to order at 3:30 p.m. in Conference
Room #2, located on the second floor of Auburn City Hall, One East Main Street,
Auburn, Washington, 98002.
A. Roll Cali
Chairman Wagner, Vice-Chair Bill Peloza, and Member Osborne were
present. Also present during the meeting were: Counciimember John
Holman, Public Works Director Dennis Dowdy, City Engineer/Assistant
Director Dennis Selle, Ass'istant City Engineer Ingrid Gaub, lJtilities
Engineer Dan Repp, Water Utility Engineer Cynthia Lamothe, Storm
Drainage Engineer Tim Carlaw, Projeot Engineer Jacob Sweeting, Project
Engineer Ryan Vondrak, Street Systems Engineer Seth Wickstrom, Finance
Director Shelley Coleman, Financial Planning Manager Martin Chaw,
Planning Director Kevin Snyder, Planning Manager Elizabeth Chamberlain,
Environmental Protection Manager CHris Andersen, Planning Intern Gary
Yao, Citizen Nick Perrius, and Public Works Secretary Jennifer Rigsby
B. Announcements
There were no accouncements.
C. Agenda Modifications
There were no agenda modifications.
II. CONSENT AGENDA
A. Approval of Minutes
Councilmember Peloza moved and Councilmember
Osborne seconded to approve Public Works Committee Meeting minutes for
date, January 17, 2012.
Motion Carried Unanimously 3-0.
B. Right-of-Way Use Permit No. 11-35 (Mund)
Councilmember Peloza moved and Councilmember
Osborne seconded to approve Right-of-Way Use Permit No. 11-35 for the
Auburn School District for Communications Conduit Facilities in 4th Street
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NE and J Street NE.
Engineering Aide Mund explained that the School District applied for a
renewal of a five-year Right-of-Way Use Permit for existing conduit facilities
under 4th Street NE and J Street NE which connects their administrative
building to Auburn High School.
Vice-Chair Peloza asked if the construction of the new school facility will
affect the conduit if the school bond is approved. Assistant Director/City
Engineer Selle stated that staff does not know if the School District is
planning to relocate or change the existing conduit connection.
Motion Carried Unanimously 3-0.
C. Right-of-Way Use Permit No. 12-02 (Mund)
Councilmember Peloza moved and Councilmember
Osborne seconded to apprbve Right-of-Way Use Permit No. 12-02 for the
City of Auburn Parks, Arts, anci Recreation's Petpalooza Dog Trot Fun Run.
Engineering Aide Mund stated that the permit is the same as the previous
year Using the vicinity map, Mund reviewed the run route with the
Committee.
Motion Carried Unanimously 3-0.
D Right-of-Way Use Permit No. 12-03 (Mund)
Councilmember Peloza moved and Councilmember
Osborne seconded to approve Right-of-UVay Use Permit No. 12-03 for
Cenex HarvesUFarallon Consulting LLC Monitoring Wells.
Engineering Aide Mund stated that Cenex HarvesUFarallon Consulting is
monitoring for the CHS site off of H Street and the reports are sent to Water
Quality Coordinator Thorn who reviews the data/information.
Motion Carried Unanimously 3-0. '
E. Public Works Project No. CP1004 (Sweeting)
Councilmember Peloza moved and Councilmember
Osborne seconded to recommed that the City Council approve Final Pay
Estimate No. 6 to Contract No. 10-21 with Prime Electric in the Amount of
$0.00 for a Total Contract Price of $676,565.51 and Accept Final
Construction of Project No. CP1004, South Auburn ITS Expansion.
Vice-Chair Peloza recommended that the schedule show a zero amount
instead of a dash.
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Motion Carried Unanimously 3-0.
F Public Works Project No. CP1101 (Wickstrom)
Councilmember Peloza moved and Councilmember
Osborne seconded to recommend that the City Council approve Final Pay
Estimate No. 5 to Contract No. 11-09 with ICON Materials in the Amount of
$0.00 for a Total Contract Price of$1,491,705.10 and Accept Final
Construction of Project No. CP1101, 2011 Local Street Pavement
Preservation — Phase 1
Street Systems Engineer Wickstrom stated that a thin overlay is less than 2
inches and a thick overlay is 2 inches and greater, in response to a question
asked by Chairman Wagner Street Systems Engineer Wickstrom explained
that a thin overlay is specified to be 1 Y2 inch thick in the middle, tapering off
toward the edges to 3/a inch in thickness and a thick overlay is placed 2
inches or more thick all the way across the roadway and typically involves
grinding the existing pavement at the gutter line.
Vice-Chair Peloza recommended that the schedule show a zero amount
instead of a dash.
Motion Carried Unanimously 3-0.
G. Public Works Project No. CP1102 (Wickstrom )
Councilmember Peloza moved and Councilmember
Osborne seconded to recommend that the City Council approve Final Pay
Estimate No. 5 to Contract No. 11-10 with Puget Paving & Construction in tfie
Amount of$4,972.10 for a Total Contract Price of $1,117,030.63 and Accept Final
Construction of Project No. CP1102, 2011 Arterial/Collector Street Pavement
Preservation Project.
Chairman Wagner spoke about the cost for pavement patching per square yard of
total centerline miles compared to the cost of a thin overlay
Motion Carried Unanimously 3-0.
III. RESOLUTIONS
A. Resolution No. 4795 (Mayor Lewis)
A Resolution of tHe City Council of the City of Aubum, Washington,
Expressing Thanks For and Appreciation of the Contributions of the Many
Citizens and Businesses Who Worked, Individually and/o.r in Cooperation
with Others to Address the Safety Needs and Damage Resulting from the
January 2012 Storm
Councilmember Peloza moved and Councilmember
Osborne seconded to recommend that the City Council adopt Resolution
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No. 4795, as modified.
Chairman Wagner noted a Scrivener's error in Section 1
Vice-Chair Peloza proposed that CenturyLink be recognized in the
Resolution along with Puget Sound Energy and Comcast. Chairman
Wagner and Member Osborne concurred.
Motion Carried Unanimously 3-0.
IV DISCUSSION ITEMS
A. Reid Middleton Agreement (Coleman)
Finance Director Coleman explained that the Auburn Municipal Airport has
requirements that need to be met in order for it to be in compliance with
NPDES. The airport currently has a basic Storm Water Pollution Prevention
Plan (SWPPP) which needs to be updated as part of the
requirements. Finance Director Coleman stated that it was recommended
by Environmental Protection Manager Andersen and Storm Drainage
Engineer Carlaw that the City contract with Reid Middleton to prepare the
SWPPP for the airport.
Chairman Wagner suggested that a "not to exceed" amount be included
with Item II, of the conditions of the agreement, Additional
Services. Coleman stated that she will work with the Public Works
Department to determine a "not to exceed" amount.
Finance Director Coleman suggested that the Storm Fund also participate is
some of the cost of the project. Coleman recommended a 50/5D cost
split. The Committee discussed the storm drainage circumstances that
support the funding approach.
Vice-Chair Peloza asked why the City is reimbursing local mileage
expenses at $0.65/mile when the City normally pays $0.555/mile. Finance
Director Coleman asked what the standard mileage rate is in Public Works
contracts. Assistant City Engineer Gaub answered that Public Works uses
the Federal miieage rate of $0.555/mile. Finance Director Coleman stated
that the consultant will be asked to use the Federal rate.
Vice-Chair Peloza referenced Section VI, Item B, of the Conditions of
Agreement and asked why the consultant is requesting that any dispute
mediation be in Snohomish County when the work being performed 'is in
King County Finance Director Coleman stated that the Legal Department
still needs to review the agreement and she will ask them.
Vice-Chair Peloza suggested a termination clause also be included.
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B. Resolution No. 4798 (Mayor Lewis)
A Resolution of the City Councii of the City of Auburn, Washington,
Supporting the Creation of a Youth Reengagement Program at the Green
River Community College
Vice-Chair Peloza noted a Scrivener's error on the agenda bill.
The Committee supported adoption of Resolution No. 4798.
C. Resolution No. 4799 (Mayor Lewis)
A Resolution of the City Council of the City of Auburn, Washington,
Supporting Legislative Efforts to Esfabiish a Stable Revenue Source for the
Green River Community College
The Committee supported adoption of Resolution No. 4799.
D Utility Rate Study Update (Coleman)
Finance Director Coleman prefaced the utility rate study discussion, st_ating
that staff and the Committee have been ciiscussing, for almost a year, the
fact that water revenue has been declining due to various
reasons. Coleman explained that at the end of 2010 the City issued bonds
and the existing rate increases have been found to be insufficient to meet
the City's debt service requirements.
Chairman Wagner commented that staff had told the Committee that the
Build America bonds were not going to accelerate the utility rate increases,
but the bonds have been issued and now the situation must now be dealt
with.
Chairman Wagner spoke about past conversations regarding the affect of
ihe Build America bonds and increases to the utility rates. Chairman
Wagner noted that utility rates would have to have been raised anyway due
to the declining revenues; however the increase wili now need to be more.
Finance Director Coleman explained that the rate study the City completed
in 20D9 contemplated approximately $40M in bond funding be utilized about
2 years ago. The City has actually used a little over $20M in bond funding
as staff moved forward to figure out how to complete critical utility
projects. Coleman stated that at the time staff was preparing the bond
package, it was believed that there would be enough revenue under the
current rate scenario, but afterwards we discovered we would lose a
wholesale customer
Finance Director Coleman and the Committee discussed the current market
for municipal bonds.
The Committee and staff reviewed the Water, Sewer, and Stormwater Rate
Study Update.
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Finance Director Coleman reviewed the rate study objectives. Coleman
noted that phasing in the system reinvestment is probably the least
important objective because of more critical issues such as having
operating cash and debt service coverage and supporting critical utility
capital program projects.
Staff and the Committee reviewed the Water Utility CIP graph which
demonstrates the planned capital projects over the financial planning
period. Finance Director Colman spoke about the Water Utility Rate
Revenue Requirements. The Committee and staff discussed the water
purchase cost. Finance Director Coleman and Utilities Engineer Repp
answered questions asked by Chairman Wagner regarding the comparative
cost of water purchase and operating expenses, as represented on the
graph on page 83 of 131
Mayor Lewis and Chairman Wagner cliscussed the watec purchase cost as
opposed to operating expenses as depicted on the graph and whether or
not the data can be used to make a determination about purchasing
additional water from Tacoma.
Finance Director Coleman and Financial Planning Manager Chaw
responded to questions asked by Chairman Wagner regarding what
assumptions are included in the increase in operating expenses from 2012-
2017 Chaw stated that the operating expenses include forecasts of the
increased cost of doing business for commodities.
The Committee and staff reviewed the assumptions outlined on page 99 of
131
Chairman Wagner stated that he believed that the debt service taken on
was not going to result in early utility rate increases, but it has. Chairman
Wagner stated that he is not uncomfortable with the total increase over the
next five years but is uncomfortable with the large increases recommended
for 2012, 2013, and 2014 Chairman Wagner commented that the objective
should be to see if there is a way to distribute the rate increases more
evenly over five years. The Committee discuss,ed the possibility of delaying
some of the capitai projects to meet that objective.
The Committee and staff reviewed the list of Water Utility Capital
Improvement Projects.
Utilities Engineer Repp answered questions asked by Chairman Wagner
regarding the discrepancy between the funding need for water supply
purchase listed and the amount in the CFP Director powdy explained that
the $3M in the CFP was based on tfie amount staff thought would have to
be purchase prior to knowing there were wells failing. Dowdy stated now, in
order to get above the supply curoe, with the wells that are currently out of
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operation, staff believes a full 1.8 MGD wiil need to be purchased. The
Committee, staff and the Mayor discussed the pro and cons of scaling back
the purchase of water
Utilities Engineer Repp explained that the total for Fulmer Well Field
Improvements is the revised cost estimate, in response to a question asked
by Chairman Wagner
Chairman Wagner asked why the amount listed for Street Utility
Improvements is more that tfie amount in the CFP Assistant Director/City
Engineer Selle stated that it is becoming more likely than not that water
lines need to be replaced during rebuild projects. Mayor Lewis spoke about
the need to move on to repairing the older streets in the Ciry Chairman
Wagner stated that the projects may need to be delayed in order to lower
the immediate utility rate increase. Director powdy poirrted out that the
estimated $3.1 M costs over the next six-years will be needed for SOS
repairs.
Chairman Wagner and staff discussed how much money needs to be saved
on the capital projects to avoid a double-digit rate increase in 2012. Mem6er
Osborne made the point that the work will need to be done eventually and
suggested moving forward with the proposed rate increases. Vice-Chair
Peloza agreed that it may be necessary to increase the rates as
recommended and suggested more pubiic outreach to educate the citizens
as to the reasons behind the increase.
Finance Director Coleman reviewed the Sewer Utility CIP Funding Plan with
the Committee. Coleman discussed the effect the increase in Metro rates
has had on the Sewer Utiliry
The Committee and staff reviewed the Sewer Utility Rate Revenue
Requirements graph. Chairman Wagner asked for a more detailed
breakdown of components of the identified 33% rate increase shown in
2012. Chairman Wagner stated that he would be unable to recommend the
proposed rate increase until staff provides the breakdown. The Committee
agreed.
Mayor Lewis spoke about the benefit of having a planned programmed rate
increase every year regardless of how healthy the utility appears
financially The Committee agreed.
Finance Director Coleman reviewed the Stormwater Utility CIP Funding
Plan with the Committee. Chairman Wagner stated that he supports the
recommended rate increase for the stormwater utility The Committee
agreed.
The Committee and staff discussed the combined Utility System Debt
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Service Coverage. Finance Director Coleman answered questions asked by
Chairman Wagner regarding the bond market coverage requirements.
The Committee and staff discussed the SFR Monthly Utility Billings Inter-
jurisdictional Comparison, noting that comparably the City still has one of
the lowest combined utility charges in the area even after the proposed rate
increases.
The Committee will continue discussion regarding utility rate increases at
future meetings.
E. Ordinance No. 6397 (Yao)
An Ordinance of the City Council of the City of Auburn, Washington,
Amending Chapter 18.56 of the Auburn City Code and Ordinance No. 6353
as to the Effective Dates of Said Ordinance Amendments to Chapter 18.56
of the Auburn City Code Relating to Temporary Signs
Planning Manager Chamberlain introduced Planning Intern Yao to the
Committee.
Planning Intern Yao explained that draft Ordinance No. 6397 proposed to
extend the temporary sign provisions in the sign code for a period of two
years at the recommendation of the Planning and Community Development
Committee.
Chairman Wagner asked that staff make sure that individuals do not violate
the code by displaying portable reader boards.
The Committee supports the introduction and adoption of Ordinance No.
6397
F 2011 Save Our Streets (SOS) Year End Report (Wickstrom)
This discussion item was postponed until the next meeting.
G. 2012 Arterial/Collector Pavement Preservation Proposed Streets
(Wickstrom)
The Committee and staff briefly reviewed the proposed streets for the 2012
Arterial/Collector Pavement Preservation Project. The Committee was
satisfied with the street selection being proposed.
Chairman Wagner asked if there were any long term plans for additional
pavement treatments for the road leading to the cemetery Staff stated that
there were no plans at this time.
The Committee and staff reviewed the map of the proposed future Save
Our Streets (SOS) projects. Chairman Wagner compared the number of
arterial streets that remain to the number of future SOS streets.
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Mayor Lewis requested a map showing SOS streets in need of work at the
time the program was started, 2005, in one color and a second map that
shows the streets that currently remaining that need work. Mayor Lewis also
requested a map showing the remaining arterial and collector street work, a
map showing what would remain 5 years after the bond is passed, if the
bond is passed, and 10 years after the bond is passed. Mayor Lewis would
like the maps in slide/presentation format.
H. M Street Underpass Project -Traffic Detour Plan (Sweeting)
This discussion item was postponed until the next meeting.
I. Capital Project Status Report (Gaub)
This discussion item was postponed until the next meeting.
J. Activities Matrix (Dowdy)
This discussion item was postponed until the next meeting.
V ADJOURNMENT
Chairman Wagner stated that the Council Operations Committee Meetings are
scheduled at 5:00 p.m. the first Monday of every monih and the Public Works
Committee Meetings will need to adjourn by 5:00 p.m. on those days.
There being no further business to come before the Public Works Committee,
the meeting was adjourned at 4:59 p.m.
Approved this 21 st day of February, 2012.
C..�/J _
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Rich Wagner, Chairman enni igsby, ent Secretary
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