MINUTES OF THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SODA SPRINGS, CARIBOU COUNTY, IDAHO HELD JUNE 14TH, 2012.

MEETING CALLED TO ORDER AT 8:45AM BY KIRK L. HANSEN, MAYOR.

ROLL CALL SHOWED THE FOLLOWING PRESENT: KIRK L. HANSEN, MAYOR

MITCHELL J. HART

LYNDA LEE

TODD B. SMITH

EXCUSED: Randall E. Prescott, Pres.

Attorney Clyde Nelson

ALSO PRESENT: Alan Skinner, Director

Tausha Vorwaller, Clerk

Mayor Hansen requested to add to the agenda an item of business regarding the Gem

Community grant program and also a question about the Rocky Mountain Power

maintenance contract.

Director Skinner reported on the re-bid opening for the final phases of the wastewater treatment plant upgrade that was held on June 11th. The three bids that were received were from; COP Construction, Edstrom Construction, Inc. and RSCI. The low bid came in at $6,157,530 from Edstrom Construction. Director Skinner explained that a complaint was filed stating that one of Edstrom’s sub-contractor’s public works licenses were not sufficient. After review with Forsgren and DEQ it was determined that the licenses could be attained before the contract signing. The sub-contractor has already filed for the increased license with the State and received confirmation that the application had been received. The Mayor and Council discussed the progress of the headwork’s portion of the project and Edstrom’s performance. Director Skinner explained that the end result of Edstrom’s work has been good and all EPA deadlines were met for the headwork’s project even though other completion dates set in the contract were not. The estimated total cost of the project was discussed and Director Skinner reviewed with the Council the final equipment items that will need to be purchased to operate the new plant. In agreement with Forsgren Associates, Director Skinner recommended acceptance of the bid from Edstrom Construction contingent on all sub-contractors attaining the proper public works licenses. Councilmember Smith moved to approve accepting the bid from Edstrom Construction, Inc. contingent on attainment of the proper public works licenses by July 1st. Councilmember Hart seconded the motion. All in favor, motion carried.

Clerk Vorwaller reviewed with the Mayor and Council a refinancing option for one of the wastewater treatment plant loans the City currently has through the Department of Environmental Quality (DEQ). Mayor Hansen was made aware that Zion’s Bank was working to refinance several cities loans through the Idaho Bond Bank. Clerk Vorwaller explained that in order to benefit from the refinance offer the current 20 year term would have to be shortened to 10 years increasing the City’s annual payment making it necessary

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to raise customers rates approximately 71% to cover the payments. After detailed review of the options the Mayor and City Council agreed not to pursue refinancing at this time.

Mayor Hansen mentioned to the Council that he met with Kathy Ray, the Four County Economic Development Director (4CASI) and Robert Lau of Soda Springs True Value about an opportunity for a Gem Community grant. Mr. Lau would like to build a new store which will include a costly relocation of a power line and a phone line. Mr. Lau would like the City to sponsor a grant through the Gem Community program to help offset his expenses to move these utilities. The Council considered the situation and Mayor Hansen stated that more information will be presented at the next meeting.

Also regarding the movement of the power line for a new Soda Springs True Value store, Mayor Hansen asked Director Skinner to have Attorney Nelson review the maintenance contract with Rocky Mountain Power to determine if the City or landowner can get bids for the work from other contractors.

Councilmember Hart moved to adjourn the meeting at 9:20am. All in favor, motion carried.

PASSED AND APPROVED BY THE MAYOR AND CITY COUNCIL THIS 27TH DAY OF JUNE, 2012.

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Kirk L. Hansen, Mayor

ATTEST:

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Tausha Vorwaller, Clerk