A G E N D A. Delta City Council May 1, F. Consideration to Approve the Delta Area Chamber of Commerce s Request
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1 Council may take formal action on any item appearing on this Agenda. However, formal action WILL NOT be taken at this meeting on any item of business first identified during the course of the meeting as a change to the Agenda, other business, or Citizen, Councilmember and Staff Comments. A G E N D A Delta City Council May 1, 2018 Regular Meeting 7:00 p.m. A. Pledge of Allegiance B. Changes to the Agenda C. Minutes D. Citizen Comments E. Election of Mayor Pro Tem F. Consideration to Approve the Delta Area Chamber of Commerce s Request G. Consideration to Approve a System Impact Study Funding Agreement with Municipal Energy Agency of Nebraska (MEAN) and the City of Delta H. Consideration to Waive a Sewer Improvement Fee for 253 King Street I. City Attorney Comments J. City Manager Comments K. Councilmember Comments L. Executive Session To discuss the purchase, acquisition, lease, transfer, or sale of real, personal, or other property interest under CRS Section (4)(a).
2 Item A: Pledge of Allegiance
3 Item B: Changes to the Agenda
4 Regular Meeting Delta City Council April 17, 2018 Mayor Ed Sisson called the meeting to order at 7:00 p.m. Also present were Councilmembers Bill Raley, Ron Austin, Christopher Ryan, Gerald Roberts and Councilmember Elect Kevin Carlson along with City Manager David Torgler and City Attorney David McConaughy. A meeting notice was posted in the south window at City Hall at least twenty-four hours prior to the meeting. Pledge of Allegiance The Mayor led everyone present in the Pledge of Allegiance. Minutes It was moved by Councilmember Austin and seconded by Councilmember Roberts to approve the minutes of the April 3, 2018 regular meeting, as submitted by the Clerk. All in favor, motion carried. Oath of Office The Clerk administered the Oath of Office for Kevin Carlson. The oath was stated as Councilmember District C. That oath has been corrected to Councilmember At Large. Councilmember Carlson took his seat at the dais. Election of Mayor and Mayor Pro Tem A call for nominations for Mayor was called. It was moved by Councilmember Roberts and seconded by Councilmember Carlson to appoint Ron Austin as Mayor for the City of Delta. There were no other nominations presented. Roll call vote: Councilmember Carlson, aye; Roberts, aye; Ryan, nay and Austin, aye. Motion carried. Mayor Austin took his seat at the dais. Mayor Austin then called for nomination for Mayor Pro Tem. It was moved by Mayor Austin and seconded by Councilmember Roberts to appoint Gerald Roberts as Mayor Pro Tem. It was moved by Councilmember Carlson and seconded by Councilmember Ryan to appoint Christopher Ryan as Mayor Pro Tem. Mayor Austin called for a vote.
5 Regular Meeting, Delta City Council, April 17, 2018 (cont.) Election of Mayor and Mayor Pro Tem (cont.) Councilmember Carlson and Ryan voted for Christopher Ryan and Councilmember Roberts and Mayor Austin voted for Gerald Roberts. Motion failed. City Attorney David McConaughy explained Council s options. Council can either continue with nominations, which appears there may be none, or they can table the vote until the next regular meeting. It was moved by Councilmember Roberts and seconded by Councilmember Ryan to table the voting of the Mayor Pro Tem until the regular City Council meeting on May 1, All in favor, motion carried. Changes to the Agenda There were none. Citizen Comments There were none. City Council Board & committee Appointments The Council discussed the various boards that the City has representation. The appointments were made for each board and is available at the City Clerk s office. Presentation to Edward Sisson and William Raley Mayor Austin presented plaques of appreciation to Ed Sisson ad Bill Raley for their time on Council. Arbor Day Proclamation The Mayor Austin read the proclamation and proclaimed April 27, 2018 as Arbor Day. City Attorney Comments City Attorney David McConaughy stated that he was approached by Councilmember Roberts regarding receiving an update on any litigation matters the city may be dealing with. He prepared a summary of the litigation the City is currently involved with and asked Council how they would like to receive that information. He cautioned the Council that all litigation matters are confidential and should not be shared. There was a consensus amongst Council to have a confidential memo ed to each member of the Council. City Manager Comments There were none.
6 Regular Meeting, Delta City Council, April 17, 2018 (cont.) Councilmember Comments Councilmember Carlson stated he is looking forward to working with staff and Council. Councilmember Roberts welcomed Kevin Carlson and Nathan Clay to Council. Councilmember Ryan also welcomed Mr. Carlson and Mr. Clay. He thanked Ed Sisson and Bill Raley for their time on Council. Mayor Austin read prepared statement accepting his appointment of Mayor. Executive Session It was moved by Councilmember Ryan and seconded by Councilmember Roberts to convene an Executive Session to discuss the purchase, acquisition, lease, transfer, or sale of real, personal, or other property interest under CRS Section (4)(a). All in favor, motion carried. At 7:32 p.m., Mayor Austin recessed the Regular Meeting and convened the Executive Session. At 8:28 p.m., the Mayor reconvened the Regular Meeting and announced that the Executive Session had been concluded. He stated that in addition to himself, the participants in the Executive Session were Kevin Carlson, Gerald Roberts, Christopher Ryan, along with City Manager David Torgler, Community Development Glen Black, City Clerk Jolene Nelson and City Attorney David McConaughy. For the record, the Mayor asked any person participating in the Executive Session who believed that any substantial discussion of any matters not included in the motion to go into Executive Session occurred during the Executive Session in violation of the Open Meetings Law, to state his or her concerns for the record. No concerns were stated. The meeting was immediately adjourned. Jolene E. Nelson, CMC, City Clerk
7 Item D: Citizen Comments
8 Item E: Election of Mayor Pro Tem
9 April 25, 2018 TO: FROM: RE: Mayor and City Councilmembers David Torgler, City Manager Chamber of Commerce funding request Background: The Delta Chamber of Commerce is requesting funding from the City for specific marketing of three Chamber sponsored events, e.g. Deltarado Days, DeltaFest events and the Small Business Saturday and Kick-off to Christmas/Parade of Lights event. The City Council did include $3,000 in the 2018 City Budget for Chamber related expenses. In 2017 the City Council did donate this same amount to the Chamber for these same marketing purposes. Cost: The Chamber is requesting to receive the $3,000 approved for Chamber related expenses in the 2018 City Budget. Alignment with Strategic Plan: In alignment with Strategic Plan the stated core priorities applicable to this request include: 1. To work with public and private funding partners. 2. Delta Pride and encouragement of community involvement. 3. Business and Builder Friendly through a strong Chamber of Commerce. 4. Marketing, selling and promoting Delta. These core priorities are being worked on in part through the activities cited in the Chamber s request for City funding. Recommendations: To favorably consider the Chamber of Commerce s funding request.
10 April 24, 2018 City of Delta 360 Main St. Delta, CO Dear David and Delta City Council Members: I hope this finds you well. I am writing to respectfully request the opportunity to meet with you, and the City Council, in an upcoming Council work session and / or City Council meeting. I would like to discuss is the potential disbursement of the monies set aside for the Delta Area Chamber of Commerce, in the amount of $3000. The Chamber would like to utilize these funds to assist in the advertising effort of: Deltarado Days July DeltaFest Events on June 28 and August 30 th Small Business Saturday and Kick-off to Christmas/Parade of Lights event on November 24 As you know these community events bring a great deal of people into Delta who subsequently spend money in our retail establishments, in restaurants, and in the case of Deltarado Days: heads in beds! Thank you in advance for your consideration; I look forward to hearing back from you; have a great day! Sincerely, Darnell Place-Wise Executive Director Delta Area Chamber of Commerce
11 Date: April 26, 2018 To: City Council for May 1 regular meeting agenda From: Betsy Suerth, Public Works and Utilities Director Cc: David Torgler, City Manager Subject: System Impact Study Funding Agreement between the Municipal Energy Agency of Nebraska (MEAN) and the City of Delta Recommendation: Staff recommends the Council approve the System Impact Study Funding Agreement between MEAN and the City of Delta and authorize the Mayor to sign the agreement. Background: Over the past several years, the City has been analyzing our long term power needs. Through this analysis, it has been determined that there is a need for the development of a new power source to serve growing demand, as well as to provide redundancy in the case of a major power outage. Additionally, the City has been contacted by several large companies who are interested in locating new facilities in Delta, all of which will have significant power demands. To assist with determining the optimum approach to additional power development, the 2018 budget includes funds for the completion of a long term power plan. This plan can be completed using economies of scale: We can explore additional power source alternatives that could serve both the city s redundancy needs as well as to assure adequate power for future growth, including the opportunity to support economic development by serving larger commercial, agricultural and industrial businesses. The first step in this process is to complete a System Impact Study (Study). Through the City s Electrical Resource Pooling agreement with MEAN, they have recently negotiated terms with Tri-State Generation and Transmission Associates, Inc. (Tri-State) to complete the Study. Further, MEAN has presented staff with a funding agreement to assure City s financial participation. That agreement is attached. Cost to City: When staff discussed this with council on March 20, a deposit of $5000 was expected for the initiation of this study. That fee had since been waived. We have a verbal estimate of $30,000 for the cost of the study. MEAN will invoice the City as they are invoiced by Tri-State. These funds are allotted in 2018 for professional services in the Transmission and Distribution sub-fund of the Municipal Power and Light Enterprise Fund. Alignment with Strategic Plan: This analysis will address two core priorities of the September 20, 2016 Strategic Plan by analyzing the City's ML&P service to help the City be business and builder friendly and to keep and improve the quality of life.
12 FUNDING AGREEMENT BETWEEN MUNICIPAL ENERGY AGENCY OF NEBRASKA AND CITY OF DELTA, COLORADO This Funding Agreement ( Agreement ) is made and entered into this day of, 20, by and between Municipal Energy Agency of Nebraska, a political subdivision of the State of Nebraska ( MEAN ), and the City of Delta, Colorado ( City ), with MEAN and City being sometimes hereinafter referred to individually as a Party and collectively as Parties. RECITALS: The City and MEAN entered into the Electrical Resources Pooling Agreement and Service Schedule M, Total Power Requirements Power Purchase Agreement, under which the City purchases from MEAN the City s total electrical requirements in excess of its firm electric service allocation from the Western Area Power Administration; and The City is exploring options to add a new customer that could substantially increase the City s electrical needs; and A system impact study and/or delivery point transfer study, as well as additional iterations of the original study, may be required by Tri-State Generation and Transmission Association, Inc. ( Tri-State ) to determine the feasibility of transmitting energy using the Tri- State transmission system for MEAN to serve the City s increased electrical load for the term of the Power Supply Agreement (collectively the Study ); and MEAN has contracted or intends to contract with Tri-State to complete the necessary Study; and The Parties desire to set forth the terms and conditions under which the City will pay MEAN for all of the costs associated with the Study. NOW THEREFORE, in consideration of the promises and agreements contained herein, the Parties do mutually agree as follows: 1. MEAN is hereby authorized by the City to enter into agreements for the Study and, if necessary, forward a deposit to Tri-State. It is understood by the Parties that this deposit is a deposit toward the costs of the Study. The full cost of the Study will be determined upon completion of the Study and the City is responsible for the entire cost. 2. MEAN shall keep an accounting of all costs, charges and expenses incurred by MEAN in furtherance of the Study ( Study Costs ). Upon
13 completion of the Study (or termination of the Study if the Study is not completed for any reason), the total amount of such Study Costs shall be billed to City by MEAN, and City shall pay to MEAN. 3. Such amount(s) shall be due and payable by City to MEAN within thirty (30) days from the date the invoice is rendered. In the event City fails to make a payment of a billing when due and payable for any reason, City shall pay interest thereupon to MEAN. Such interest shall accrue and be compounded daily on any unpaid amount, from the date due until the date upon which payment is made, at the rate of one percent (1%) per month or fraction thereof. The Parties agree that this paragraph shall not be a defense to any action to compel payment of a billing. 4. Provided payment is received by MEAN from City as set forth above, and to the extent MEAN is permitted by Tri-State to disclose the results of the Study, MEAN and City shall jointly use the Study results to satisfy the requirements of Tri-State and its Open Access Transmission Tariff, to the extent such Study results are the product of services for which City reimbursed MEAN pursuant to Section 2 above. 5. MEAN shall have no liability to City in the event the Study is not completed by reason of termination of the agreement(s) between MEAN and Tri-State for the Study. Also, MEAN shall have no liability and makes no covenants to City in the event the Study, including additional iterations of the original Study, is not completed by the date the City intends to add the new electrical load customer. 6. This Agreement shall not obligate either Party to enter into any further agreement or negotiation with the other. 7. City and MEAN shall consider all reports, information and data shared or obtained as a result of the Study to be confidential information unless such information is available from public sources. The Parties shall not publish or disclose confidential information, except as required by law, for any purpose other than in furtherance of the Study without the prior written authorization of the other Party. Similarly, neither Party may use any confidential information provided as part of the Study or otherwise obtained through this Agreement to give any Party a competitive advantage over the other Party. Notwithstanding the foregoing, the Parties may exchange confidential information with their consultant(s) in furtherance of the Study. 8. EACH PARTY ACKNOWLEDGES THAT NEITHER IT NOR ANY OF ITS REPRESENTATIVES MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY AS TO THE OUTCOME, THE ACCURACY OR COMPLETENESS OF THE RESULTS OF THE STUDY OR ANY CONFIDENTIAL INFORMATION SHARED AS PART OF THE STUDY, EXCEPT AS MAY BE OTHERWISE AGREED IN WRITING BETWEEN THE PARTIES. Neither Party or its representatives shall have any liability to the other Party, any such other Party s representatives, or any other person, relating to or arising from the use of the confidential information or for any errors therein or omissions
14 therefrom, and each Party assumes full responsibility for all conclusions such Party derives from the results of the Study and the confidential information, except as may be otherwise agreed in writing between the Parties. 9. City agrees to indemnify, defend and hold harmless MEAN, its officers, employees, and agents from and against any liability, loss, cost, expense, attorney fees, court costs and damage because of claims or actions that arise as part of the results of the Study described in this Agreement or from the performance of MEAN s services hereunder. 10. It is not the intention of the Parties to create, nor shall this Agreement be construed as creating, a joint venture or other partnership or association or render the Parties liable as joint venturers or partners. 11. This Agreement is not intended to be for the benefit of, and shall not be enforceable by, any person or entity who or which is not a party hereto. 12. This Agreement is not assignable without the written consent of the other Party to this Agreement. In the event of an assignment, the assignee shall assume all duties and obligations arising from and after the time of assignment by the assignor hereunder, but such assignment shall not release the assignor from said duties and obligations unless specifically provided in the other Party s written consent to the assignment. All duties and obligations arising prior to the assignment shall remain the duties and obligations of the assignor unless the Parties hereto specifically agree otherwise. 13. This Agreement may not be modified or altered except by a written instrument duly executed by an authorized representative of both Parties. 14. This Agreement and the rights and duties of the Parties shall be governed by and construed, enforced and performed in accordance with the laws of the State of Nebraska, without regard to principles of conflicts of law. 15. This Agreement constitutes the entire agreement between the Parties with respect to the project contemplated herein and supersedes all prior oral or written agreements, commitments, understandings or information otherwise furnished by the Parties with respect to such matters. [SIGNATURE PAGE FOLLOWING.]
15 IN WITNESS WHEREOF, the Parties have caused this Funding Agreement to be executed as of the date set forth below: ATTEST: CITY OF DELTA, COLORADO By: Printed Name: Title: Date: By: Printed Name: Title: Date: ATTEST: MUNICIPAL ENERGY AGENCY OF NEBRASKA By: Printed Name: Title: Date: By: Printed Name: Title: Date: K:\Legal\K\MEAN\DeltaCOFundingAgmtSystemImpactStudyCostsTriStateFinal docx
16 Date: April 24, 2018 To: City Council for May 1 Council Meeting From: Betsy Suerth, Public Works and Utilities Director Cc: David Torgler, City Manager Subject: Consideration of Sewer Improvement Fee Waiver for 253 King Street Recommendation: Staff is recommending approval from Council of a waiver of the sewer improvement fee of $ for 253 King Street. Background: After owning the 253 King property for many years, Lon Brouse is partnering with the City to improve the City sewer system at the same time that he builds a home on his lot. The existing sewer collection pipeline was built substandard with a 4 line (Municipal Code The minimum diameter for sanitary sewer mains shall be 8-inches ) and has been problematic for adjacent property owners. Brouse intends to upgrade the system to city standards which would be beneficial to all the property owners associated with the sewer line as well as the City. The City is working with Brouse to share that cost of the public infrastructure improvement by supplying some materials and labor to the project. It is expected that Brouse s share of the cost will be just under $20,000 (including some costs associated with his private taps) and the City will contribute approximately $7300 for the construction of the sewer line and pavement patch, along with some costs associated with inspection and assuring the existing services are reconnected to the new line. The $5450 fee waiver would be an additional cost should the council accept the staff recommendation. There is a venue for the council to customize projects and allow fee waivers and cost share arrangements such as this through the city municipal code: B. The City may, at its own expense, extend its water or sewer mains and electric lines as deemed feasible or necessary. The City may provide for such extensions in accordance with its Subdivision Regulations or by contract with any person desiring such extensions or by improvement district. Any such contract shall be on terms approved by the City and may provide for the size of the mains or lines to be extended, the apportionment of the costs of the extensions, reimbursement provisions for subsequent taps onto such extension, or such other provisions as the City Council deems in the public interest. Further, the city sewer system improvement fee is intended to provide the sewer enterprise fund with reserves to invest in system improvements when the City deems necessary. In this case, the improvement is inherent to the project.
17 Cost: The 2018 water fund includes $15,000 for construction materials and supplies and for professional services. The Street fund also has an asphalt patching budget with a balance of $28,000. Alignment with Strategic Planning: By partnering with a resident to improve neighborhood infrastructure, the city is enhancing our community through collaborative efforts that improve quality of life.
18 Items: I, J & K Attorney Comments City Manager Comments Councilmember Comments
19 Executive Session:
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