Staff lays out $25.8 million water line and well plan behind bond; consultants pitch downtown revitalization
July 21, 2020, 4:00 p.m. · Held electronically (COVID-19 emergency)
Finance Officer Anna Montoya walked the council through the $25.8 million water transmission line and south-side well project to be financed mostly through a state Board of Water Resources loan, with about $4.7 million paid from cash and impact-fee reserves and roughly $22 million financed; staff said no water rate increase is needed. Consultants Randy Sant, Todd Brightwell and Nick Dall presented a downtown revitalization plan calling for a project manager, a redevelopment area and use of the Opportunity Zone, and staff presented the state auditor's fraud risk assessment (310 of 395, moderate risk).
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| Water infrastructure bond presentation | Discussed |
Agenda, item by item
Item 1 · Roads and utilities
Water infrastructure bond presentation
Discussed
Montoya presented a $25.8 million project combining a large culinary water transmission line (including 700 North and 600 East, Main Street and 200 South) and a new well south of the freeway, needed to lift the building moratorium there. The Board of Water Resources recommended financing 85%; the city would pay 15% from reserves and also pay off its 2013 water revenue bonds. Total out-of-pocket about $4.7 million and financing about $22 million, within the $29.5 million bond parameters. Estimates were by Horrocks Engineering (with PEPG on one segment); Horrocks recommended bidding segments separately and staff expected three or four bids. Bunker said about 90% of the work is impact-fee eligible, but the 600 East/Main Street pipe replacement is not. Staff said no rate increase is needed and the debt is repaid from culinary water revenues, not property taxes. Barnes and Carroll worried development could outpace the line when the moratorium is lifted; Barnes asked to discuss the bids when received.
- Bond$22.0 million to Utah Board of Water Resources
- Budget$4.70 million
- Project estimate: $25.8 million (transmission line and well)
- Financed about $22 million; out-of-pocket about $4.7 million from reserves and impact fees
- Board of Water Resources charges about 1%
- Estimates by Horrocks Engineering, with PEPG on one segment; well siting study by Bowen Collins
- Five active wells; well on the south side would feed the system directly, no storage tank
- Impact fee adoption set for an Aug. 18 work session
Item 2 · Presentation
Downtown revitalization plan
Discussed
Consultants Randy Sant, Todd Brightwell and Nick Dall presented a draft plan built from a SWOT analysis with the Chamber of Commerce. It recommends hiring a dedicated downtown project manager, a five-year work plan, form-based code, and tools including a downtown redevelopment area (tax increment), the federal Opportunity Zone, a revolving loan fund, a business improvement district, bonds, a MAG-funded parking study and a public infrastructure district. Shelton said the effort had taken over a year and pressed for a faster timeline; Taylor said he was trying to buy a downtown building and would like to use the Opportunity Zone.
- Council Member Taylor disclosed he was trying to buy a building downtown and would like to use the Opportunity Zone
Item 3 · Presentation
Fraud risk assessment
Discussed
Montoya presented the state auditor's fraud risk self-assessment: 310 of 395 points, a moderate risk level. The city scored well on separation of duties, written policies and training. The auditor recommends an audit committee that meets with the council at least yearly and a fraud hotline.
What residents said
Who pays for the water bondLive public comment at the bond hearingPace of downtown revitalization