Annual Meeting Draft Documents
2019-01-18 Commissioners Public Hearing
VILLAGE DISTRICT OF EIDELWEISS
Public Hearing on the Budget
January 18, 2019
The Board of Commissioners held a public hearing on the 2019 budget at 7:00 pm on Friday, January 18, 2019. In attendance were Commissioners Mike Smith, Ralph Lutjen and Ron Sandstrom.
At 7:00 pm the meeting was called to order by Chairman Mike Smith.
Ralph Lutjen makes a motion to open the public hearing. Ron Sandstrom seconds. Motion passed 2-0.
Mike Smith outlines the rules for the meeting. All comments and questions are to be related to the article discussed.
Commissioners overview of the 2019 Warrant is highlighted by Ralph Lutjen.
At 7:07 pm Ron Sandstrom makes a motion to open the bond hearing on the proposed bond for a new truck. Ralph Lutjen seconds. Motion passed 3-0.
Review of need for new truck. F-550 at end of useful life.
Question on outfitting of new truck. Included in quote.
Question on repairing the truck instead of replacing.
Question on warranty for new truck – 3 years.
Discussion on increase in ability with purchase of heavier duty truck.
Concern stated for cost of truck.
Discussion on running equipment into the ground prior to replacing is held. Need for reliable equipment during a snow storm is outlined.
Wear and tear on the truck is outlined.
Number of days out of service are questioned – will be looked into.
At 7:31 pm Ralph Lutjen makes a motion to close the hearing on truck bond for Article 2. Ron Sandstrom seconds. Motion passed 3-0.
At 7:31 pm Ralph Lutjen makes a motion to open the bond hearing on the proposed bond for replacing the Reinach tanks. Ron Sandstrom seconds. Motion passed 3-0.
Review of need for replacing two 30,000-gallon tanks at Reinach; both tanks failed inspection in 2018 and are not candidates for lining.
Highlight and review of replacement plan with one 90,000-gallon concrete tank. Storage needs outlined. Inclusion of Reinach Pressure Zone with this project is outlined.
Discussion on cost is held.
Highlight of lack of approval of funding as an impact on bid process.
Question on Board having faith in Fluet Engineering. Outline that financing was major hold up for contractors.
Outline that Paul Fluet will be at Annual Meeting.
Discussion on engineering for the District and possible use of other engineers going forward.
Question on access to Reinach Place during construction. Will be open. Steel tanks will be removed after construction of the new tank.
Discussion on re-opening bid process prior to proposing project is held.
At 7:56 pm Mike Smith makes a motion to close the hearing on water bond for Article 3. Ralph Lutjen seconds. Motion passed 3-0.
Article 4 – DPW electrical upgrades
Review of need for upgrading electrical system at DPW and correct code violations.
Discussion on code violations.
Discussion on need for upgrades.
Highlight of importance of DPW well reliability for proper functioning of the water system.
Review of electrical upgrades including lightening protection, meters, VFD addition and code corrections including proper grounding and surge protection.
Question on funding. Discussion on use of approved bond funds from last year.
Article 5 – Summit pump house electrical upgrades
Review of need for upgrading electrical system at Summit Pump House.
Discussion on code violations.
Discussion on need for upgrades.
Highlight of impact to the water system users should this pump house go down for electrical issues.
Question on funding. Discussion on use of approved bond funds from last year.
Article 6 – Chocorua Pump House upgrades
Review of need for project to be completed.
Discussion on code violations.
Discussion on need for upgrades.
Highlight of impact to the water system users should this pump house be out of service.
Question on funding. Discussion on use of approved bond funds from last year.
Article 7 – Highway/Operation budget reviewed and discussed. Operational budget for the water system is also reviewed.
Line items reviewed and discussed.
Ralph Lutjen outlines self-insurance of deductible/full exposure is budgeted.
Discussion on impact of bonds on the budget.
Question on self-insuring the deductible and savings it has created.
Questions reviewed.
Discussion on capital reserve fund expenditures.
Article 8 – York Rake Replacement
Review of article.
Current rake is not operational. Rake is used regularly during spring and summer by the DPW to smooth roads. Rake is also used after road grading to remove rocks brought to surface during grading.
Article 9 – Asphalt road repairs
Review of need to keep roads in travelable condition until rebuilt.
Specific work to be done through this article includes Aspen, Klausen, Chocorua View and Eidelweiss Drive from entrance to DPW II.
Discussion on putting these articles into the budget is held
Article 10 – Gravel road repairs
Review of need to keep roads in travelable condition.
Specific work to be done through this article includes Klausen, Upper Lakeview and Aspen.
Article 11 – Thusis culvert replacement
Review of work to be completed, project to maintain 100% on VDOE property.
Discussion on amendment to proposed project at 2018 Annual Meeting. Project was not able to be completed as amended. Engineering required to review the amendment and then to amend the project.
Comment on project cost versus engineering costs is made.
Reduced construction cost with DPW doing the work is outlined.
Article 12 – Grandval and Burgdorf engineering
Review of article and engineering needed to update the roads to Class V standards.
Discussion on Class V standard for VDOE. Document is available on the website.
Recommendation for removal of this article is made.
Article 13 – Water Budget
Line items reviewed and discussed.
Article 14 – Muddy Beach Tank Replacement
Article reviewed.
Replacement of 5,000-gallon tank for water storage.
Comment that concrete 5,000-gallon tank available for $10,000 less than this quote is made.
Article 15 – Upper Lakeview/Rigi
Article reviewed.
Question on if this project was included in proposed updates under Article 2 – this will be checked.
Article 16 – Water tank CRF deposit
Statement on funding CRF.
Comment on use of fund for Article 14
Article 17 – Water System Pipe CRF deposit
Statement on funding CRF
Article 18 – Water System CRF withdrawal
Replacing the $42,000 withdrawn during the 2017 audit process.
Commissioners intent to re-deposit the funds in 2018 was denied by the NH Department of Revenue (DRA) as voter approval is required for deposits to a CRF.
Received petition articles are reviewed.
Petition to appropriate $6 for executive salaries. This is a budget line item and should be addressed during the operational budget discussion.
Petition to have employees pay 10% of health insurance premiums in 2019 and 20% in all subsequent years. Petition is advisory as employee matters are under control of the Commissioners; not the Legislative Body.
Petition to transfer unspent $141,695.14 from 2018 Article #2 to the water system CRF. Petition will require a 2/3 majority to pass.
Petition to limit number of Commissioners as voting members of any committee to not greater than 1/3 of committee. Petition is advisory as committee size and members are determined by the Commissioners, not the Legislative Body.
Petition to name voters as agents to expend on all CRF except Water Line Extension Fund.
Petition to place $42,000 in the Water System CRF from Unassigned Fund Balance. Petition is a duplicate of Article 18.
Petition to have draft minutes posted within 5 days of a meeting and approved minutes posted within 24 hours. Petition is advisory as no requirement exists to post minutes.
Petition to place $250,000 in the Water System CRF with funds to be raised by taxation. Outline that this petition will add more than $2.50 per thousand valuation to the tax rate is made; the 2018 tax rate would have been over $8.60 per thousand with this petition.
Ralph Lutjen makes a motion to close the public hearing and adjourn the meeting. Ron Sandstrom seconds. Motion passed 3-0.
Respectfully submitted,
Nancy E. Cole
Administrator
6 – Grandval and Burgdorf Engineering 1/25/19
Engineering for upgrading Grandval and Burgdorf to Class V standards 01/25/19
Project Description and Cost Detail
Scope Described
Engineering to design needed upgrades to Grandval Way and Burgdorf Drive from Grandval to Konstanz to bring the newly adopted roads to Class V standards. Area currently does not have proper drainage, is only 10-feet wide in places vs the VDOE 18-foot standard and has boulders in the travel surface.
The DPW crew is not able to design a full road upgrade; engineering is required for protection of the District.
Cost Detail
$25,000
Figure from estimate of cost by Dubois & King Engineering.
5 – Thusis Culvert Replacement 1/25/19
Thusis culvert replacement 01/25/19
Project Description and Cost Detail
Scope Described
Project incorporates new engineered design. Project revised so project is 100% on VDOE property. Project consists of the total replacement of malfunctioning culvert under Eidelweiss Drive and directs the water flow onto VDOE property at Thusis Beach. Construction cost of project is reduced as the result of all work being done by the VDOE DPW.
Cost Detail
24-inch Culvert $614.00
Culvert header $800.00
2 18-inch culverts for outlet $500.00
Gravel and erosion stone $500.00
Excavator rental $540.00 per day
Total costs $2,854.00
Contingency $571.00
Total $3,425.00
Remaining balance 2018 article* -$2,010.00
Total to be raised $1,415.00
*Of the $7,000 approved at 2018 Annual Meeting, $4,990 was spent in 2018 on updating the engineering.
All figures based on current prices and equipment rental price from the supplier
4 – Asphalt Road Preservation 1/25/19
Asphalt road shimming 01/25/19
Project Description and Cost Detail
Scope Described
To place a shim coat on the following asphalt roads for protection and extended useful life of the road:
Aspen $6,000 82 Ton from Grachen access to summit
Chocorua View $4,000 55 Ton at curve above berm
Klausen $5,000 68 Ton all
Eidelweiss Drive $3,000 41 Ton from entrance to DPW II
Current road conditions vary between these roads, but all need protection to increase useful life and reduce further damage.
Application of a shim coat will delay the need for complete reclamation of these roads, improve the travel surface for residents and visitors as well as reduce wear & tear on highway equipment caused by uneven asphalt.
Cost Detail
Aspen $6,000 82 Ton
Chocorua View $4,000 55 Ton
Klausen $5,000 68 Ton
Eidelweiss Drive $3,000 41 Ton
1-week roller rental $1,750
Total $19,750
Contingency $2,000
Total to be raised $21,750
All figures are based on current cost per ton of asphalt and equipment rental price from supplier
3 – Gravel Road Preservation 1/25/19
Gravel road repairs 01/25/19
Project Description and Cost Detail
Scope Described
Project proposed to complete specific projects for road work that cannot be completed within the annual budget for all roads. The three roads proposed are in very poor condition. Upgrades will allow residents to have a proper road and reduce wear & tear on highway equipment.
To maintain and repair gravel roads with grading and ditch work for protection and extended useful life of the road:
Klausen – 1,195 feet at 18 feet width and 3 inches gravel plus one culvert
Upper Lakeview – 677 feet at 18 feet width and 6 inches of gravel plus one culvert
Aspen – 1,095 feet at 18 feet width and 3 inches gravel
Cost Detail
Klausen $2,550 300 ton plus one culvert at $300
Upper Lakeview $2,850 340 ton plus one culvert at $300
Aspen $1,875 250 ton
Total $7,275
All figures are based on current price per ton of gravel and current price for culverts
2 – York Rake Replacement 1/25/19
Front runner rake 01/25/19
Project Description and Cost Detail
Scope Described
This warrant article proposes to replace the existing York rake used for gravel road maintenance. The existing unit is no longer operable and replacement parts are no longer available. The new proposed front runner rake will be front mounted for better control and to allow more accurate sculpting of the road crown and sides.
Proposed replacement is a front mount York rake with 8-foot standard rake head and 3-foot extension complete with Fisher A-frame Minute Mount 2.
Cost Detail
$4,180.00
Equipment price from the supplier
1 – F-550 Replacement 1/25/19
F-550 replacement 01/25/19
Project Description and Cost Detail
Scope Described
This warrant article proposes to replace the existing 2012 Ford F-550 with a Dodge Ram 5500 chassis and to be up-fitted with a dump body, plow and associated equipment to include a hydraulic sander. The existing Ford F-550 has reached the end of its useful life and has seen significant increase in maintenance costs. Truck is a safety issue for the crew. As well the existing plow is not considered commercial grade and has experienced extensive repairs, the replacement equipment is commercial and rated for municipal operations and verified through recent best practices with similar municipal operations. The existing sander is electric and the replacement will be hydraulic with all operations coordinated through the new Dodge Ram 5500 cab.
Keeping the existing plow and equipment with the old Ford F-550 insures the Village District of Eidelweiss will receive the highest value on outright sale or trade-in for the existing vehicle to lower the replacement cost of the F-550.
2019 F-550 MSRP is $52,000 to $58,170 depending on model. As this cost difference between the base trucks is nominal, purchase of the heavier duty Dodge 5500 is recommended. The 5500 will carry a larger sander and will support a wing plow, both of which are extremely beneficial for snow plow operations.
Failure to replace truck will be detrimental to winter plow operations as only one sander would be in service for all roads at both summits. It is very high risk to place plow equipment in a run to failure mode as it increases risk to the safety of both the road traveling public and the DPW crew.
Cost Detail
truck $56,935
outfitting $43,680
Total $100,615
Use $15,000 CRF -$15,000
Total to be raised $85,615*
Funding to be raised from a 5-year bank loan at 3.5% interest with a first year’s payment of $19,000.00
Proceeds from Trade or sale of F-550 truck, plow and sander will be placed into the Highway Equipment CRF.
All figures are from dealer quotation and equipment price from the supplier
6 – Upper Lakeview/Rigi Pressure Reducing Valve pit 1/25/19
Upper Lakeview/Rigi Pressure Reducing Valve (PRV) 01/25/19
Project Description and Cost Detail
Scope Described
Update PRV set up by separating the lines between the zones covered by this PRV. This project is a high priority as customers are negatively impacted by water pressures in this zone. Separating the lines will allow for reduction of pressure to customers on Lakeview and Oak Ridge while maintaining and supplying adequate pressure to customers on Upper Lakeview.
Separation of lines into 3 segments complies with the 2005 Water System Master Plan as well as allows for improved metering of zone to aid in leak detection and updates valve access when reading meter. Also allows for improved access when an adjustment is needed to the PRV for pressure stabilizing within zone.
Cost Detail
$36,140 for PRV pit #1
Excavation (3 days) $9,500
Vault with ladder $7,600
Meters $1,150
Piping $7,700
Ledge removal (if needed) $5,000
Contingency $5,190
PRV pit #1 proposed for 2019; remaining work to be proposed for future years.
Remaining work for this zone:
$34,700 for PRV pit #2
$34,700 for PRV pit #3
Funding will be from water usage fees.
All figures are from contractor quotation and equipment price from the supplier; ledge blasting is estimated. If the $5,000 for ledge removal is not used, the funds will be placed into the water system Capital Reserve Fund.
5 – Muddy Beach Tank Replacement 1/25/19
Muddy Beach 5,000-gallon tank replacement 01/25/19
Project Description and Cost Detail
Scope Described
This warrant article proposes to replace the existing Muddy Beach 5,000-gallon tank in 2019. Muddy Beach is the secondary source of water for the District and supplies 15 to 20% of the water needs for the Village District.
The tank at Muddy beach is not a water storage tank by today’s standards, it is actually a WW II marine buoy modified years ago for the Village District water supply. The existing modified vessel does not have an access panel for inspection and cannot be re-lined. State recommendations (regulations do not apply to tanks under 10,000 today) recommend all water tanks be inspected this cannot be accomplished with the existing unit. Replacing this vessel with a new tank is a Village District priority to secure water from a secondary source prior to completing work on other water system components to insure minimal impact on the district residents.
Expending funds on old equipment that has not been inspected is not viewed to be in the best interest of the District, therefore, replacement with a known entity that will be properly maintained for maximum life expectancy is recommended.
Capital Improvements completed at Muddy Beach well in the last few years allowed Muddy Beach to supply the District with water during the recent 4-day DPW well outage which included two of the highest water usage days annually.
Cost Detail
$35,000
5,000-gallon tank & materials $19,100
Labor $11,300
Contingency $2,730
Funding will be from the Water Tank Capital Reserve Fund
All figures are from contractor quotation and equipment price from the supplier