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Date
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July 14, 2008
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Agenda
Item No. 60 Roll
Call No. 08- Communication No. 08-414 Submitted by:
William G. Stowe, Assistant City Manager/Public Works/Engineering |
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AGENDA
HEADING:
Hearing on and Approval of the plans and specifications, form of contract
and engineer’s estimate for the construction of a Metropolitan Salt Storage
Facility; Hearing on and Approval of a 28E Agreement for the Lease-Purchase of
a Metropolitan Salt Storage Facility on Metro Waste Authority (MWA) Property,
and Approval of a 28E Agreement for Operation and Maintenance of the
Metropolitan Salt Storage Facility by and between the Cities of Des Moines,
West Des Moines, Urbandale, Johnston, Clive, Windsor Heights, Waukee, Grimes
and Pleasant Hill.
SYNOPSIS:
To insure on
site availability of adequate salt supplies for snow and ice control, staff
recommends approval of the plans and specifications, form of contract and
engineer’s estimate for the construction of a Metropolitan Salt Storage Facility, approval of a 28E Agreement
for the Lease-Purchase of a Metropolitan Salt Storage Facility on MWA property
between the Cities of Des Moines, West
Des Moines, Urbandale, Johnston, Clive, Windsor Heights, Waukee, Grimes,
Pleasant Hill and the MWA. This agreement
will ensure on-site availability of adequate salt supplies for snow and
ice control. This agreement is for a five-year period with
FISCAL
IMPACT:
Amount: $671,926.69 ($134,385.33 annually
for five years) to cover the construction and financing costs of the salt
storage facility. $295,400 (estimated)
the first year for additional salt to fill the City of
Funding Source: FY 2009
through FY 2013 Public Works Department Operating Budget; 2008-2009 Operating
Budget, Fund SP360, Org PWK040400, Street Maintenance Fund, page 314.
ADDITIONAL
INFORMATION:
The proposed 28E Agreement is a five-year lease-purchase agreement with
the MWA for a Metropolitan Salt Storage Facility on property owned by the MWA
located at
The facility will be utilized by the City of Des Moines Public Works
Department and the cities of West Des Moines, Urbandale, Johnston, Clive,
Windsor Heights, Waukee, Grimes and Pleasant Hill for the storage of road salt
required for winter snow and ice control operations. The MWA agrees to finance and construct the
facility, and the participating cities agree to lease-purchase from the MWA,
the salt storage facility by each city paying its proportionate share of the
costs based on each city’s allocated salt storage capacity. The cities are lease-purchasing the salt
storage buildings and leasing the property.
There will be two buildings; one 10,000-ton storage facility exclusively
for the City of
In the fall of 2007, the City of
Discussions were held with both the Wastewater Reclamation Authority
(WRA) and the MWA to ascertain if either of these regional entities would have
available property to site the facility and also the capability of financing
the construction of the site and storage buildings. After numerous meetings and discussions, an
agreement has been developed with the MWA and nine cities including the City of
Clive (5%) 1,000 tons
Grimes (3%) 750 tons
Pleasant Hill
(2%) 500 tons
Waukee (5%) 1,100 tons
The MWA intends to enter into a contract with
Prostruct Construction, Inc. in the amount of $1,161,986.84 for the
construction of the facility, if the cities approve the 28E Lease-Purchase
Agreement. The cities are
lease-purchasing the salt storage buildings and leasing the property. The City of
The total cost of construction is estimated to be
$1,240,720.84, which includes facility construction costs of $1,161,986.84,
architectural and engineering costs of $50,250.00, and permit fees and other
costs of $28,484.00. The maximum price
for constructing the improvements, architectural and engineering costs, permit
fees, etc. is $1,280,000 without written amendment. The City of
The proposed 28E Agreement for operation and maintenance of the
Metropolitan Salt Storage Facility with the aforementioned cities establishes
the terms and conditions for the operation and maintenance of the Metropolitan
Salt Storage Facility. Maintenance
responsibilities of the cities include mowing of the property, sweeping of
paved areas, patching of paved areas, snow removal, and repair and maintenance
of the buildings.
During the first five years of the agreement, any maintenance that is
necessary and requires outside forces shall be accomplished by the West Des
Moines Public Works Superintendent and costs allocated to the cities according
to each city’s proportionate share of the salt storage capacity in the Facility
(Des Moines’ share is 46 percent).
Beginning on June 30, 2013, each city shall pay a maintenance fee of
$1.00 per ton of each city’s storage capacity for each remaining year of the
agreement. The fee will be placed in a
maintenance account to be used for the repair and maintenance of the
facility. The City of
PREVIOUS
COUNCIL ACTION(S):
Date: June 23, 2008
Roll Call
Number: 08-1101
Action: Set date of hearing on
items regarding the Metropolitan Salt Storage Facility, (7-14-08): (Council
Communication No. 08-385) Moved by Vlassis to adopt. Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,