HomeMy WebLinkAbout04 24 2018 CMCITY OF CHUBBUCK
SPECIAL COUNCIL MEETING MINUTES
APRIL 24, 2018 — 5:30PM
CALL TO ORDER: Mayor England
COUNCIL PRESENT: Roger Hernandez, Annette Baumeister, Ryan Lewis and Melanie Evans.
STAFF MEMBERS PRESENT: Mayor Kevin England, Public Works Director Rodney Burch,
Planning and Development Director Devin Hillam, City Attorney Tom Holmes, Police Chief Bill
Guiberson, City Engineer Bridger Morrison, Fire Chief Merlin Miller, Human Resource Director
Scott Gummersall, City Clerk Rich Morgan, and Deputy Clerk Joey Bowers.
CHUBBUCK DEVELOPMENT AUTHORITY PRESENT: Mecinna Price, Rick Keller, Steve Brown,
Deloy Stuart, Daniel Heiner, and Thomas Nield
GENERAL BUSINESS:
1. Siphon Road Extension Phase 1 & 2 — Contract Award
City Engineer Bridger Morrison presented the contract results and Mickelsen
Construction Inc. was the lowest bid at $3,658,455.14. Mr. Morrison stated that including
this bid, the canal crossing structure at $484,900, and the right-of-way acquisition of
$1,147,000, the total invested cost is $5,290,355.14. Mr. Morrison also stated that there is
still some expenditures that need to be completed. The City is looking at all its options
and feels comfortable it will meet its obligations on time.
Councilmember Lewis wanted to know how the City was going to fund the project.
Mayor England thanked this Council and the previous Councils for their hard
decisions that have put the City in a good position to move this project forward.
Councilmember Lewis motioned for the Mayor to enter into a contract with Mickelsen
Construction Inc.to award the Siphon Road extension phase 1 and 2 for $3,658,455.14.
Councilmember Baumeister seconded motion for approval.
Roll Call: Hernandez -yes, Evans -yes, Baumeister -yes, Lewis -yes, motion passed
2. Combine with Chubbuck Development Authority — Zions Public Finance
Mayor England excused himself from the meeting at 6:30.
Christian Anderson from Zions Public Finance presented information for bonding and
financing options available to cities. Mr. Anderson stated that there are three options;
general bonds, water/sewer revenue bonds, and lease purchase agreements. He also
compared the positives and negatives for each of these options. Mr. Anderson presented
the purpose of recreation districts, how to get one started, and how these districts are
funded. Mr. Anderson stated that Urban Renewal funding must be less than 51 % of total
project costs for municipal buildings, unless approved in an election by 60% of
participating voters.
General Bonds: up to 30 years and becomes part of the property taxes, takes 2/3 super
majority vote to pass, lowest interest rates, any capital projects, and funds can only be
used for the bonded purpose.
Water/Sewer Revenue Bonds: recommended term under 30 years, takes 50% plus 1 of
the votes, interest depends on financial strength of system, and only water and sewer
capital projects.
Lease Purchase Agreement: recommended term under 15 years, no vote required but
does not create new revenue, any capital projects, and a year to year lease until paid.
Recreation Districts: takes 50% plus 1 of the votes to create, requires signatures of
20% of registered voters within the boundary, creates new revenue and a new board of
directors, and is added to property taxes within the boundary. After a district is formed, it
takes a separate bond and a 2/3 vote to pass for funding.
ADJOURN: Chubbuck Development Authority Chairman Daniel Heiner adjourned at 6:50.
KEVIN ENGL -MAYOR