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CITY COUNCIL SPECIAL
WORKSHOP MEETING AGENDA
Tuesday, February 08, 2011 at 6:00 PM
6:15 PM
1. Roll -Call Attendance
O David Zaremba X Brad Hoaglun
X Charlie Rountree X Keith Bird
X Mayor Tammy de Weerd
2. Pledge of Allegiance
3. Adoption of the Agenda Adopted
4. Consent Agenda Approved
A. Approve Minutes of January 25, 2011 City Council Regular
Meeting
B. NHS Lending Community Development Block Grant (CDBG)
PY2010 Sub -Recipient Agreement
C. Ada County Housing Authority Community Development Block
Grant (CDBG) PY2010 Sub -Recipient Agreement
5. Community Items/Presentations
A. Presentation Regarding Dynamis/Ada County Renewable
Energy by Commissioner Sharon Ullman and Lloyd Mahaffy
6. Items Moved From Consent Agenda
7. Department Reports
A. Public Works: Source Water Protection Update
B. Public Works: Discussion on Backflow Testing Program
Meridian City Council Meeting Agenda —Tuesday, February 08, 2011 Page 1 of 2
All materials presented at public meetings shall become property of the City of Meridian.
Anyone desiring accommodation for disabilities related to documents and/or hearing,
please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting.
Amended onto the Agenda
8. Executive Session per Idaho State Code 67-2345 (1) (f) - To Consider
and Advise its Legal Representatives in Pending Litigation
Into Executive Session at 8:03 PM
Out of Executive Session at 8:20 PM
Meeting Adjourned at 8:20 PM
Meridian City Council Meeting Agenda —Tuesday, February 08, 2011 Page 2 of 2
All materials presented at public meetings shall become property of the City of Meridian.
Anyone desiring accommodation for disabilities related to documents and/or hearing,
please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting.
Meridian City Council Workshop Meeting February 8 2011
A meeting of the Meridian City Council was called to order at 6:15 p.m., Tuesday,
February 8, 2011, by Mayor Tammy de Weerd.
Members Present: Mayor Tammy de Weerd, Keith Bird, Brad Hoaglun, and Charlie
Rountree.
Members Absent: David Zaremba.
Others Present: Bill Nary, Jacy Jones, Mike de St. Germain, Mark Niemeyer, Tom
Barry, Kyle Radek, and Rich Dees.
Item 1: Roll -call Attendance:
Roll call.
David Zaremba X Brad Hoaglun
X Charlie Rountree X Keith Bird
X Mayor Tammy de Weerd
De Weerd: I will go ahead and call this meeting to order. I'd like to thank you for your
patience for getting this meeting started. For the record it is Tuesday, February 8th. It's
almost 6:15. 1 will start tonight's meeting with roll call attendance. Madam Clerk.
Item 2: Pledge of Allegiance
De Weerd: Thank you. Item 2 is the Pledge of Allegiance. If you will all rise and join us
in the pledge.
(Pledge of Allegiance recite.)
Item 3: Adoption of the Agenda
De Weerd: Okay. Item No. 3 is our adoption of the agenda.
Hoaglun: Madam Mayor?
De Weerd: Mr. Hoaglun.
Hoaglun: I have one item that we need to add to the printed agenda. It could be Item 8,
the last item for the agenda for tonight will be an Executive Session as per Idaho Code
67-2345(1)(f). So, we will add that to the agenda and with that I move adoption of
tonight's agenda.
Bird: Second.
Meridian City Council Workshop Meeting
February 8, 2011
Page 2 of 33
De Weerd: I have a motion and a second to adopt the agenda as amended. All those
in favor say aye. All ayes. Motion carried.
MOTION CARRIED: THREE AYES. ONE ABSENT.
Item 4: Consent Agenda
A. Approve Minutes of January 24, 2011 City Council Regular
Meeting
B. NHS Lending Community Development Block Grant (CDBG)
PY2010 Sub -Recipient Agreement.
C. Ada County Housing Authority Community Development Block
Grant (CDBG) PY2010 Sub -Recipient Agreement
De Weerd: Item 4 is our Consent Agenda.
Hoaglun: Madam Mayor?
De Weerd: Mr. Hoaglun.
Hoaglun: There are no changes to our Consent Agenda, so I move approval of the
Consent Agenda and the Mayor be authorized to sign and Clerk to attest.
Bird: Second.
De Weerd: I have a motion and a second to approve the Consent Agenda. If there is
no discussion by Council, Madam Clerk.
Roll -Call: Bird, yea; Rountree, yea; Zaremba, absent; Hoaglun, yea.
De Weerd: All ayes. Motion carried.
MOTION CARRIED: THREE AYES. ONE ABSENT.
Item 5: Community Items/Presentations
A. Presentation Regarding Dynamis/Ada County Renewable
Energy by Commissioner Sharon Ullman and Lloyd Mahaffy
De Weerd: Item No. 5, we have our Community Presentation this evening. We have
Commissioner Ullman with us and also Lloyd Mahaffy. We appreciate you being here.
We also have members from our SWAC committee. Thank you all for being here as
well. And, Mayor Corrie, it's nice to see you. I will go ahead and turn this over to Mr.
Mahaffy.
Meridian City Council Workshop Meeting
February 8, 2011
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Mahaffy: Thank you. Good evening. Lloyd Mahaffy, 776 East Riverside Drive, Eagle,
Idaho. I am the chairman and chief executive officer of Dynamis Energy and we are
involved in a waste energy project, which Mayor de Weerd heard about a week ago and
wanted me to present to you, so I'm delighted to be here tonight.
De Weerd: Thank you.
Mahaffy: What I want to do is just walk you through a brief presentation and, Jacy, do I
use a mouse or what do I do here? I'm an Apple guy, so this is a Windows platform.
Just click this? Great. I'm not driving well. Okay. So, just a brief overview of what we
are doing. The concept of waste energy has been around for a long time. It's about a
20 to 25 year old concept, but the technology has evolved pretty dramatically since
then. We define sort of the first generation as mass burn technology, which is really just
destroying the waste. That was a really bad idea and so they came along with new
technologies to both destroy the -- destroy the waste at a higher temperature, but they
still had lots of problems with both the residue of the waste that's left over, as well as the
emissions and we are really a third generation technology called thermal oxidation. And
I will tell you that one of the neat things about this company is it was invented by an MIT
engineer and it's a technology that he patented and he happens to live in Meridian and
we had a chance to see this technology almost two years ago. Part of the team was in
Idaho, part of the team was in Iowa, we actually bought the company and relocated it to
Idaho. So, our world headquarters for Dynamis Energy is now based in Idaho. But we
are involved in all of the aspects from design, build, own and operate the plant. I just
want to give you -- I'm trying to get this thing to work well, but it's not -- okay. This kind
of gives you a sense of what the world is looking like. Countries around the world are
burying their waste. I have to tell you that burying our waste is probably the second
dumbest thing that humans do. I can't really define the first, but this probably comes to
be a close second, because all we are doing is leaving the trash and all of the methane
gas and things that go with it for a future generation. So, this kind of gives you a sense
of what's going on around the world. You can see that in the US we are about 60
percent landfill, but look at China, 95 percent of China, with 1.2 billion people, is burying
their waste. That's a really bad idea. So, we are trying to make a difference in the
world the way the waste is destroyed. And, Jacy, I'm not having much luck.
De Weerd: Don't worry, even those of us that use that kind of system can't.
Mahaffy: Okay. So, there are a couple of key features about this technology. Most of
the systems around the world today will -- can only manage a certain -- different types
of waste streams. Dynamis Energy can process a much larger, wider spectrum of
different types of waste, everything from municipal solid waste to tars, to medical waste,
to oily rags, just a range of different waste streams that we can process. The
benchmark for destruction today is about 70 percent. We actually destroy 95 percent of
what goes in, with only a five percent residual and all of the residue coming out is either
glass, metal, or sort of a bottom ash that is nonhazardous. So, we have got a whole
new benchmark in destruction. We generate a lot of power per ton going in. A 250 ton
Meridian City Council Workshop Meeting
February 8, 2011
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plant will produce somewhere in the ten to 12 megawatts per hour, so it's a very, very
efficient system. And we have very low emissions. In fact, some of the plants we have
built are in nonattainment zones. Just to give you a sense of the different types of
waste we can process, here are some examples. Industrial packaging, tires, sewage
sludge, a lot of different things can go in the system, but, again, it has a very efficient
outcome. We are not an incinerator. We are no type of incinerator whatsoever. We --
we are a gasification process. And if you remember basic chemistry you can gasify any
organic compound at 800 degrees and so it's almost like a slow charcoal cooking device
that slowly turns the organic waste into a gas. We take that gas, clean it up, and, then,
send it to a boiler, the boiler makes steam, the steam turns a turbine, the turbine makes
electricity. So, it's a very, very simple system, but it's a very complex process, using
digital control technology to make it operate. One of the things that we focus very
carefully on is exactly how these plants are built. One of the challenges in building
these kind of plants is they are not scalable. They are usually custom designed, custom
engineered and, then, custom operated. One of the things that Dynamis does, which is
making us very successful around the world, is we have built a standard design of our
plant and it scales at 125 ton increments. So, if a community buys an initial plant of 125
tons, we can grow up to 250 to 375 and so forth. The plant plan for Ada County right
now is initially a 250 ton plant, which we can grow in increments of 125 over time. One
of the things that people say is what does a plant look like and this is, actually, the
design of the building and this holds 250 tons a day. It all happens inside the building,
And the trucks go in, off load their waste, the waste is processed, turned into electricity
and at the end of the day the glass and the metal is sent to different recyclable
companies and, actually, the ash itself can go to asphalt or concrete plants. So, pretty
much a hundred percent of what's going in has got some benefits, either turning it into
electricity or going out to some residual recyclable. This also seems like a good idea,
but are there any plants running. This is an actual plant that we built. It's actually in
Alaska. These are 15 ton chambers, so you get a sense of the size of the internal
chamber with an individual standing there and so there are about ten of these chambers
this size in a plant that we are talking and we can see some of the other pictures of the
plant that was built. I think the last thing -- which probably the most exciting to me, is
this is the actual air testing results from the plant that's on line in Alaska and you can
see the EPA standards for air quality emissions and you can see the performance of the
plant right next door. So, what we are doing is building a plant like this in Ada County.
We also have plants unfolding in other parts of the world, not just in the United States,
but in Europe and in the Caribbean and South America. We have also been able to
design a mobile platform, which is a very small scale version of this, which is designed
for the US military forward operating bases, FEMA, as well as small islands in the
Caribbean and the Pacific. So, it's the same technology, it's scaled down to about five
or ten tons a day. So, this technology is proprietary, it is patented, it is held by the
company in Eagle. We can manage these plants anywhere in the world from Idaho and
that's one of the plans is to have a network operations centered here to run everything.
So, we approached Ada County about building a show plant up at the landfill. We have
people flying in from all over the world to look at this. We had the Brazilians in last
week, we had the Italians the week before that and so they want to come see us and,
then, they want to see our plants. We wanted one in our own backyard. So, we are
Meridian City Council Workshop Meeting
February 8, 2011
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delighted to team with Ada County on the landfill. They have a number of different
renewable energy technologies unfolding up there. I'll let Commission Ullman talk about
that. But this is what Dynamis Energy is doing, we are really proud to be an Idaho
company and we look forward to turning a lot of waste into electricity.
De Weerd: Thank you. Council, do you have any questions at this point?
Bird: I have none.
Rountree: I have a list, but not at this point.
De Weerd: Okay. Okay. Staff, any questions? Thank you. That's an exciting project.
Mahaffy: Thank you. You're welcome. I'll defer to Commissioner Ullman to see if she
has any comments or questions.
De Weerd: Good evening. We appreciate you joining us.
Ullman: Thank you, Madam Mayor and Members of the Council. It's a pleasure to be
here this evening. You have seen our Dynamis project. Lloyd Mahaffy and some of his
colleagues came and gave a presentation, tried to sell my board on this concept and it's
-- we are a hard sell, I have got to admit. But after answering all of our questions and
after they corrected their math, we decided to move forward. And I think it was just
Lloyd who made the mathematical error, it wasn't their engineers. In any event, we
decided to move forward with this project because 250 tons a day of waste can be
taken out of the waste stream and, as Lloyd says, burying it in the landfill up in the
foothills is the worst thing to do with it. To us we are going to be able to take
somewhere between 1/8th and 1/6th of the waste out of the waste stream at the landfill
for time being, once the first -- the first phase of this project goes in. As Lloyd pointed
out, they can also build additional phases and one of the benefits that I didn't even
recognize up front -- he's pointed out that these additional phases can be built fairly
quickly, somewhere between 12 and 18 months and generate an enormous amount of
power. So, where we are trying to promote economic development in this area to
stimulate the economy, once we have this first phase up and running, if we have
employers interested in coming to the area that are looking for a source of power to be
provided quickly, we can outcompete most of the rest of the country in that regard. He
also didn't mention the fact that once the plant is up and running I believe they will be
employing 47 people full time. During the build phase they will be employing 750
industrial construction workers, which, obviously, a positive impact on the community.
This is not our first project at the landfill as far as renewable energy technology. Back
when I was in office the first time in 2001 and '2, the county started talking about doing a
gas -to -energy project. That project is up and running. We are partnering with Fordistar
right now; they have two engines that are pulling the methane gas out the landfill. We
are accomplishing a number of different things. We are cutting down on the odors,
making DEQ, EPA and our neighbors somewhat happier and we are simultaneously
generating power and generating dollars for the county -- I will say property taxpayers,
Meridian City Council Workshop Meeting
February 8, 2011
Page 6 of 33
although the landfill is an enterprise fund, we are not -- these are not property tax
dollars, but, of course, when you pay to take trash to the landfill and when you pay for
your trash collection service a piece of that also goes to supporting the landfill
operation. Right now Fordistar is generating about a quarter of a million dollars a year
for the county and we are -- they are going to be adding two more engines and so we
will -- we are going to be doubling that income, that revenue stream for the county,
while, again, simultaneously cleaning that methane out of that -- out of the landfill. So,
think we are doing a good thing as far as best utilization of resources. The fact that we
have Fordistar already up there operating and, then, Dynamis came along and our
board was also bought up to speed on the project that Micron has going on right now,
they have partnered with a company out of Australia that they are using their clean
rooms that were sitting idle and have now created an off -shoot, if you will, that is
creating solar panels. They have got some interesting and fairly unique technology and
will be employing somewhere between 700 and 800 employees over the next five years.
So, I started thinking about the fact that we have got a number of renewal energy
technology companies and projects going in the area and Lloyd and I have actually met
with a number of people from various state and local agencies and have started talking
about doing more in that regard. At the county level we are trying to promote our landfill
as a place to put these type of projects. We are calling it the Ada Renewable
Technology Industrial Complex, ARTIC, and, no, it doesn't have the other C in it, it's not
cold up there, but it's a simple acronym, easy to remember, and, again, the concept of
promoting renewable energy technology. We have an ongoing request for information
out in various publications and we will be putting that out periodically looking -- you
know, if people want to come do a solar project up there or wind power, there is a
problem, if you will, with solar and wind energy in that it's not consistently generated.
When the sun is not out, when the wind is not blowing. The beauty of the gas -to -energy
project and in this case with Dynamis waste to energy, they can generate power around
the clock and in a steady stream. Dynamis can actually ramp up and down as needed
according to Idaho Power's needs, which is a huge benefit. But we are opening the
landfill to these renewable energy technology projects. And again -- so, we are
promoting that concept at the county facility. But in a broader sense would like to use
the whole concept of renewable energy technology to brand and market this area that,
again, we have got a number of private companies, even downtown where we have got
geothermal energy -- or geothermal heat, excuse me. We have so many resources in
this area that to the extent that we can use that and market the area, we are going to be
doing we hope an inventory in the area of companies, projects, and so forth and hope to
get that off the ground here in the near future. And with that I would stand for questions
and I'm sure Lloyd would as well.
De Weerd: Thank you, Commissioner Ullman. Councilmen, any questions?
Rountree: Madam Mayor?
De Weerd: Councilman Rountree.
Meridian City Council Workshop Meeting
February 8, 2011
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Rountree: Commissioner Ullman, you mentioned income stream from the existing
activity up there. Theoretically this concept is going to generate power. I assume that
the rate payers are going to have to pay for it, both the consumers of electricity, as well
as the folks that pay rates to get -- pay the tipping fees. Is that income steam going to
go back into the landfill, so we can keep the rates low for tippage fees?
Ullman: It's a combination. The agreement that we have with Dynamis at this point is
that the first five years they will -- they will take our waste with no fee. We put just under
two million dollars into the project up front to help develop the plans for our site and,
then, we will ultimately get that two million dollars back, plus the five years for free.
Ultimately we also hope that Dynamis will be able to get the necessary permitting to
take our household -- or our hazardous waste, which is now costing us a million dollars
a year, if they are able to get the permitting in place, we will be saving a million dollars a
year, because we will be putting our hazardous waste through Dynamis, rather than
sending it out of the area for processing or disposal. We have not negotiated the final
agreement with regard to how exactly the financial arrangements will work between
Dynamis and Ada County. Lloyd isn't aware, but I am going to try to get a piece of their
power generation sales. At this time, you know, that has not been worked out, but we
do know that for the first five years there would be no cost for the disposal of the 250
tons of waste which, actually, is beneficial to our rate payers in two regards. Not only
are we not paying to bury that waste, but it costs -- the last landfill expansion we had in
this construction environment -- meaning it's relatively low cost -- was eight million
dollars. So, the concept of pulling, as I say, somewhere between 1/8th and 1/6th of our
waste out of the waste stream will save us big dollars down the road by not having to
expand our landfill as quickly for burying trash. And maybe Lloyd can talk a little bit
about what it costs for them to process the waste. There will be a cost, but it will not be
higher than what we are already -- costs that we are already incurring. I guess the
simple answer is rate payers will save money in the long run.
Rountree: So, I guess the answer I'm wanting to hear is that there won't be any rate
changes in tippage fees for at least five years?
Ullman: Correct. That is certainly the plan with regard to Dynamis, yes.
Hoaglun: Madam Mayor?
De Weerd: Yes, Mr. Hoaglun.
Hoaglun: Question, Commissioner. This is not going to be an inexpensive plant. I
mean these types of things typically are a major investment. What -- how does that
initial investment happen? Is that coming from the county? Is it coming from Dynamis?
What type of arrangement is that going to be to get that plant up and operating?
Ullman: And the county put 1.9875 million dollars into the project up front, which we will
be getting back somewhere within I believe the next six months or so. We paid for the
development of the plans for the project and, then, Dynamis will be paying us back --
Meridian City Council Workshop Meeting
February 8, 2011
Page 8 of 33
basically purchasing those plans back from us and is using that arrangement to have
qualified for additional funding. And maybe, Lloyd, you can take it from there.
De Weerd: Lloyd, if you could -- yes. Thank you.
Mahaffy: Dynamis is providing all the private financing for the plant.
Ullman: But there was -- additionally there was stimulus money that was going into the
project as well. Perhaps you can --
Mahaffy: QKBE, as well as others.
Rountree: Madam Mayor?
De Weerd: Mr. Rountree.
Rountree: Beyond five years has he done the math to determine what kind of revenue
stream you will be generating and what your operation and maintenance costs are
going to be and our concern is that if the rates go up, the county is just going to pass
those on and we get to pass them on and the rate payers are paying for this. I don't
care what you think, they are paying for it. So, what's going to happen in the future?
Mahaffy: We are -- when the waste comes into the landfill it's going to go one of two
places. It either gets buried or it goes to our plant. We are accepting whatever waste
comes to us. The economics of tipping fees between the county and the cities --
between the county and anybody coming in are defined by the county. We are a
recipient of waste coming in once it enters the landfill. So, whatever our transaction is
between us -- we have agreed for no tipping fees for five years and so beyond that point
it's a negotiation between Dynamis and the county, but it's really a decision -- the county
is going to define what their tipping fees are. We don't work with them with economics.
We don't define that.
Ullman: Madam Mayor, if I might clarify. My colleagues and I for the last couple of
years have been fighting the prospect of a landfill tipping fee rate increase. Because of
EPA regulations we have to put a huge amount of money aside for future -- well, we
have daily cover, but we have ultimate, you know, final closure and we are doing
everything in our power to postpone that -- actually having to put out those huge sums
of money. And we feel that Dynamis is actually going to help us to extend the life of the
landfill considerably and actually put off having to pay those closure fees. So,
ultimately, I believe that rate payers will be saving money. I am very sensitive to the
concept of increased costs. In the '90s actually was an intervener in the water cases
with Boise Water and United Water. We are very, very conscious of what this project
means and we did evaluate it. I didn't bring figures with me. But at the time that it was
being proposed to us, as I say, we went through with a fine tooth comb to make sure
this was not going to be detrimental to our rate payers. It's not that Dynamis proposed
some new technology and, oh, good, we are going to go throw a whole bunch of money
Meridian City Council Workshop Meeting
February 8, 2011
Page 9 of 33
at them and our rate payers would be paying more money. On the contrary, we view
the Dynamis project as making better use of resources, generating power, generating
jobs and economic development and ultimately saving us money.
Rountree: Madam Mayor?
De Weerd: Yes.
Rountree: How close are you to getting discharge permits for air quality?
Mahaffy: We are in the -- we are in the final stage of air quality permit with DEQ. We
are a minor air quality permit, so we are not a major, but I'll defer to DEQ on exactly
where they say they are in the process, but our sense on the dialogue with them is we
are approaching the end of the process. That's a key point. Our emissions are so low;
we are about the same as one Chevy diesel truck operating for a year. So, it's a very,
very low emission standard. It's been verified by them. Naturally what's important
about next generation technology is you can destroy more waste, you can make more
power, the residuals have recyclable value and your emissions are very low and that's
been the problem with the plants in the past and that's the brilliance of what these
engineers developed.
De Weerd: And you can see that in your table.
Mahaffy: Right.
De Weerd: That was impressive.
Mahaffy: That's the actual operating results from a plant. That's not -- that's not an
average. That's real data. The other thing I think is -- you know, we are taking in 250
tons a day. I think the average daily waste stream going to the landfill is somewhere
between 1,500 and 2,000. Our goal over time is to -- we would like to be intercepting
somewhere between a third and a half of the daily waste stream. You know, one of the
challenges, as the Mayor knows -- I was the chairman of the Economic Advisory
Council for the state of Idaho and one of the challenges in recruiting companies to this
area, big data centers, is the ability to have enough additional capacity for power. If
you're Idaho Power you don't want to build in advance of the demand. One of the nice
things about Dynamis Energy is we can actually double our output every 12 months,
because there is enough waste stream. So, now the community can go about and
recruit a data center. Nothing bothered me more than when Apple Computer selected
North Carolina for a data center. They spent three billion dollars. We should have had
a shot at that. So, now we have some flexibility to how we recruit companies, because
we can double the power output every 12 months.
Hoaglun: Madam Mayor?
De Weerd: Mr. Hoaglun.
Meridian City Council Workshop Meeting
February 8, 2011
Page 10 of 33
Hoaglun: Lloyd, what -- you have an operation in Alaska that's up and going right now?
Where is that located?
Mahaffy: It's in Barrow.
Hoaglun: In Barrow. Okay. And what was the -- how much per ton is that one? That
was a smaller one --
Mahaffy: That's about 40 tons a day.
Hoaglun: Forty tons.
Mahaffy: Yeah.
Hoaglun: Okay. Thank you.
Rountree: Madam Mayor?
De Weerd: Mr. Rountree.
Rountree: Is the existing landfill itself a potential resource? In other words, can you
mine what's there and utilize it in your system or is that --
Mahaffy: That's a great question. We get asked that all the time. It's really tough to
mine a landfill, because as soon as you start doing that you start releasing methane
gas. So, our view on landfills is leave them alone, keep them covered. If there is a
methane capture system, like Fortistar, that's a potential fuel source for us. But we only
use about three minutes of fuel per eight hour cycle, so it's a very low fuel demand,
which means our net power output is very high. So, any chance we can tap into
methane capture that's a good thing. What we are really trying to do is to intercept the
daily waste stream, so you don't have to spend money on landfill expansion. You know,
cell expansion is very expensive, so if you can intercept that and extend the life of the
landfill that makes it better.
De Weerd: Mr. Barry, did you have a question?
Barry: Madam Mayor, I'd like to yield a few moments to one of the SWAC -- Solid
Waste Advisory Committee members, our environmental manager for the city of
Meridian, if you want to take it away.
De Weerd: Mollie.
Mangerich: Thank you. I so appreciative meeting you this evening and you coming
tonight and telling us about the proposed project up at the Ada County Landfill. Our
Solid Waste Advisory Commission has been briefed on this subject and so we have got
Meridian City Council Workshop Meeting
February 8, 2011
Page 11 of 33
some questions to ask and if I may I will proceed. My understanding through the
professional services agreement is that the Dynamis facility would be taking household
hazardous waste or hazardous waste as a fuel source as a feed stock. Can you explain
what materials you're looking at impact on the household hazardous waste program as
it exists?
Mahaffy: Well, we are taking -- we are taking --
De Weerd: Lloyd, if you could get closer to the mike. Thank you.
Mahaffy: Okay. We are taking -- we will be taking residential MSW coming in on the
different trucks. We are working with DEQ to understand what the hazards waste
definition is for the stuff coming in on the trucks. The reality is residential MSW has very
little hazardous waste in it as a percentage of the total outcome. But we have a
intercept process when the trucks come in we will be running a tipping floor where we
intercept a lot of this on the front end and, then, we inspect on the back end as well.
So, we will be working with the hazardous waste unit at the landfill on site to process
anything that we have to intercept coming in. So, we intercept it on the front end and if
something like a battery or a thermometer gets through we have got a mercury
detection system on the back side looking for mercury and, then, we have visual
inspection and sniffers again to look for batteries.
Mangerich: Thank you for that. I am hoping that as more questions will be generated
as we learn more about the process and we become educated in this technology, our
SWAC is interested to know if we may -- or this will be open, the design for the facilities,
so that we can have public comments and workshops on this, so that we understand the
technology impact on us and our rate payers. That's a statement. We are hoping that
that will be made available. The City of Meridian and the city of Kuna provide -- I think
we are the second largest waste -- we are the second largest waste provider to your
landfill and as such we generate tip fees for Ada County. However, we are not under
flow control at this point. We understand that through Clark county Dynamis has
developed and worked with the development of an eastern regional solid waste disposal
district by which flow control and waste will be mandated to go to the Dynamis facility or
transfer stations. Is that something that is being looked at here for Idaho and for Ada
County?
Ullman: I'm not sure I understand the question.
Mangerich: To set up a solid waste district to insure that you have the waste flow at the
Dynamis plant.
Ullman: No. Not at this time. I am not foreseeing any difficulty at this point in the
waste --
De Weerd: Commissioner Ullman, I'm sorry.
Meridian City Council Workshop Meeting
February 8, 2011
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Ullman: Sorry. As you know, we have the trash hauling contract with -- for
unincorporated Ada County and Allied Waste brings trash from Boise city and so forth.
At this point we are not contemplating that anybody else is going to provide landfill
disposal services at such a significantly reduced rate, either in this area or, for example,
in Elmore county that all of a sudden our waste stream is going to go to nothing.
Mangerich: Thank you. And, then, a third comment that came up within our Solid
Waste Advisory Commission was that we are knowledgeable that our Ada County
Landfill is installing scales and we will soon be moving from a volume based tip fee to a
tonnage based tip fee and most likely there will be a reassignment of how much
residents will pay, versus commercial accounts. So, there will be changes and perhaps
increases to a certain target sector and understandably so. So, I would just caution that
the statement that the waste energy would not increase our solid waste tip fees, that
there are changes coming operationally that will provide some possible rate changes in
the future.
Ullman: Madam Mayor -- and I hope I made that very clear that the Dynamis project --
the impact of the Dynamis project is not expected to impact tipping fees. We were
required and mandated by EPA to implement scales at a cost of two million dollars,
scales that we on the local level didn't feel were necessary. We are in the process of
installing those scales now and initially when they are installed we will be still assessing
fees on the basis of the volume, as we have been historically, but we will also be
weighing the waste and looking for the correlation between the two and we will
ultimately come up with a new rate structure and it's my goal to have no impact -- no net
impact on rate payers. It will not be possible, and I'm sure you are aware, to make it
exactly equal. But to the extent that we can, we are not going to try to bury an increase
in cost in that conversion to using scales. At the point in time when we are adopting
new landfill rates that there will certainly, I believe, be a public hearing involved in that
process and, you know, again, it's our hope to keep those as revenue neutral as
possible. We do, on an ongoing basis, have to be looking at our expenses at the
landfill. We are not looking to Dynamis to increase our costs. Again, our landfill director
last year came to us four or five times asking us for a rate increase and each time we
said, no, go back and figure out a different way of doing things. So, my -- at least two of
the members of my board were there, then, and I know were very, very conscientious
about trying to hold our rates down to the lowest possible level. We also need to be
able to operate the landfill and at this point in time if somebody comes to us and can
justify a rate increase, because it's absolutely necessary for the continued operation and
necessary to satisfy our ultimate requirements from the EPA, we might be forced to
increase rates, but, again, not because of the Dynamis project and we are going to do
everything in our power to keep rates at either the current level or as low as we possibly
can.
De Weerd: Well, I would just like to say this sounds like a very exciting project and it's --
it's always the new projects that cause questions and the better understanding of
business relationships and how it works to the advantage, too, of the rate payer, which
we all are. But I think as you're successful in creating this industry cluster out at the
Meridian City Council Workshop Meeting
February 8, 2011
Page 13 of 33
waste or -- out at the wastewater treatment plant -- you're always welcome to partner at
our wastewater treatment plant as well. But as you create more partnership I think it
can, in the long run, benefit the rate payers, as mentioned in slowing the need to open
up new cells and maybe not have to open them at all. But, certainly, I appreciate
SWAC and their continuous concern of impact. I don't think it's something we brag
about that we are the highest waste producer -- or whatever it was you said. I kind of
cringed with that. Second. But we are trying to look at our recycling programs and do
our part to reducing the flows. So, whatever Dynamis cannot utilize.
Ullman: Madam Mayor -- and, again, our board is sensitive to that concept as well. We
only control trash collection in unincorporated Ada County, obviously, but when we
looked at our contract last year and put it out to bid, we did make the choice to go to the
single stream recycling for the very purpose you're talking about. The more people who
-- the simpler we make recycling the more people will do it and the more waste we will
pull out of that waste stream. So, obviously, that's a piece of the puzzle as well.
De Weerd: Well -- and I don't know, maybe Mollie might correct me, but I'll go ahead
and go out on a limb and say this. When we went to the automated collection system it
really did force people to look at what they were throwing away and in their regular trash
and looking at how better they can manage their waste with the commingled recycling
program and so I would imagine our commingled recycling program has increased in its
popularity. Steve, has it? So, we are, again, trying to look at what we can do on our
end to reduce that.
Mahaffy: Well, I think there are three stories here. One is we are building a plant in
Ada County. Two is we are I think an exciting younger company that's going to be
hiring a lot more people for both our manufacturing and we are committed to build most
of our components in Idaho and preferably the Treasure Valley. So, there are a number
of companies right now that are bidding on components. That's for both the fixed
platform and the mobile platform. I can tell you some of those companies are in
Meridian. So, I think besides just the plant, as we build plants around the world, you're
going to see economic benefit there. The last thing is you have all seen a lot of the
wind coming on line, okay? One of the challenges of wind, as Idaho Power will tell you,
is it's uncontrollable, unshapable power. It's pure energy. So, when the wind blows you
have power, when it doesn't you don't. One of the nice things about base load biomass
like we have, is we are the match against wind. Okay? We sort of smooth that out, so
it's a combination of wind variable biomass base load let's them better plan the grid and
so that's one of the things that's becoming so popular about our technology is we flatten
that out and --
De Weerd: Even the solar end, too.
Mahaffy: Right. Solar same thing. Right.
De Weerd: Sun doesn't always shine.
Meridian City Council Workshop Meeting
February 8, 2011
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Mahaffy: That's right. But the waste comes in.
De Weerd: Yeah. Maybe that's unfortunate.
Mahaffy: We thank you for the opportunity to present tonight.
De Weerd: Council, any other questions?
Bird: It's a great concept.
De Weerd: Mollie.
Mangerich: I guess just a closing comment. Excuse me. Again, thank you for coming
and I'm hoping that in the future that we will be invited to open meetings as part of a
stakeholder group towards this technology where waste goes for our rate payers and
our citizens and that those can all be opened up and we can have discussions about
this.
Ullman: Madam Chairman, it is our responsibility as Ada County Commissioners to run
the landfill. We certain welcome public participation, participation by the city, by your
SWAC group as well. I don't believe that we have done any of this in secret.
Everything that we have done we have made open to the public. Ultimately, the
decision with regard to what we do, how we operate the landfill, what we do with regard
to rates, we make those decisions and we are held accountable for those decisions.
But certainly welcome the input and the feedback. At anytime you are all welcome to
provide that.
De Weerd: Well -- and as we move forward with this we can get questions from SWAC
to yourselves and see, Commissioner, if we could get response and notification of the
public hearings. We will keep an eye on it and -- and I appreciate your time this evening
for sharing with us some very exciting news on many different fronts. Certainly
appreciate our SWAC members who are in the audience today as well and encourage
you to follow these people out and the answer -- offer any questions that you might
have as well. But thank you for being here.
Ullman: Thank you very much.
Mahaffy: Thank you very much
Item 6: Items Moved from Consent Agenda
De Weerd: Okay. There were no items moved from the Consent Agenda
Item 7: Department Reports
A. Public Works: Source Water Protection Update
Meridian City Council Workshop Meeting
February 8, 2011
Page 15 of 33
De Weerd: So, we will move to Item 7-A and turn this over to Kyle. So, what's his
name over there?
Radek: Madam Mayor, Council Members, tonight we would like to present some
information to you about source water protection. When we talk about source water thal
means the water that we use to supply our distribution system to serve our community.
The majority of the presentation and discussion tonight will be done by Ed Squires, who
has worked as a consulting hydro geologist for Meridian for several years and has
considerable knowledge and experience on the subject matter. Additionally, Rob
Whitney from the Idaho Department of Water Resources has joined us for a second
time. He visited us -- you may remember about, I don't know, four or five months ago
and he just -- he didn't have enough, he wants to come back and talk to the City Council
again, so we really appreciate him making himself available for this presentation,
though. Our agenda is briefly give an overview of what Meridian's water source is like.
Very simplified. We are going to talk about source water quality threats and protection
strategies for those threats, to mitigate those threats, and we are going to recommend a
course of action for Council and, then, we are going to open it up for discussion and
Council direction. Now, here is a simplified picture of what the -- what our source water
looks like, our aquifer in Meridian. If you take a look at the -- the first water level there,
what I have got labeled as the shallow aquifer, starts anywhere from, you know, one
hundred feet down to five feet down when you start digging a hole in the ground. We
have a lot of water around here. And, then, somewhere in the neighborhood of 400 to
maybe 600 feet you have a layer of blue clays that tend to separate the shallow aquifer
from the deep aquifer and the -- there are several sources of contaminants out there,
both natural and introduced. There is all kinds of things that people put on the ground
and different industries and there is natural contaminants as well and so -- and there is
natural contaminants in the aquifer. Most of the contaminants contributed by human
activity come from the surface and you can see in this diagram how some of those
contaminants might migrate through. Like, for example, if you take this -- let me get the
pen. If you take this source right here -- there we go. This source right here might
indicate that this contaminant is going to move through the aquifer and -- and intercept
the place where we have some sealed wells and since they are sealed wells that
contaminant is going to move past those wells and continue on its path in the aquifer. It
could take years for this contaminant to ever reach a level of where the well extracts
water from the aquifer or it could never reach that level. On the other hand, we have
another path that is shown here where this contaminant moved down into the aquifer
over to what we have labeled as an unsealed well and the unsealed well is a well where
the casing -- the area between the casing and the native soils have not been -- has not
been sealed, so there is a conduit for the contaminant to move up and/or down through
the aquifer and can move -- and can take that years or possible -- possibly the
contaminant wouldn't have gotten there, but it could take years and make that days or
weeks to get down to places where -- where it naturally wouldn't get to and we feel like
this is the -- one of the main -- or the main threats to our source of water quality. And
poor well construction is -- is the main threat. Poor city well construction would be one
threat, but we -- we don't build city wells that are unsealed. So, we are mainly
concerned with poor private well construction as the major threat to our water quality.
Meridian City Council Workshop Meeting
February 8, 2011
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And with that I'm going to leave this slide up in case Ed has any -- any additional
comments on this slide or wants to correct something I have said, but I'm going to leave
-- I'm going to open it up to Ed to continue about the threats, how we have -- how we
have discovered and documented those threats in our city and what our options to deal
with those threats are.
De Weerd: Hi, Ed.
Squires: Hi, there. Madam Mayor, Members of the Council. Thanks for having me out.
I'm glad Kyle left this slide up here, because I don't want to take credit for that dinosaur I
see down there. Though we do find mammoth remains in some of the sands of the
Boise foothills, so it's kind of interesting. I have been instructed to be very brief. I will.
About 1992 1 started working for the city and we drilled our first test well, Well No. 14,
and now test wells have become a standard and what we have discovered in drilling all
these test wells is that we find that the -- this is the Well 28 test well, our most recent
test well, drilled to 1,300 feet, by the way. What we find is the aquifer consists of
alternating layers of clay and sand. Pretty much. There is some gravel layers in there
and -- but for the most part it's alternating layers and we find when we drill these test
wells -- and the motivation behind drilling the test wells was really to -- because we
wanted to pick the best water quality in the whole depth of the section that we could get,
so that we didn't have to treat water, that we got the best possible quality that the drilled
section has to offer and the way we did that is we would drill a single bore and, then, we
would put a series of small two inch tube wells, just like a big well, only they are just two
inches, with a completion screen at various depths of the aquifer. And so this is a
cross-sectional diagram of Well No. 20 test well, drilled out at the Ustick reservoir site
and the lithology that we drilled, the rocks that we drilled, is over on the left, from zero to
1,000 feet and you can see the sands represented and the clays represented. That's
the alternating geologic section that we find underneath the City of Meridian, which, as a
point of interest, has some of the most prolific aquifers in this entire valley by far. And
no need to pay much attention, really, to these fancy squiggly lines, the geophysical
logs, but you can see pretty easily that they correspond to the sands and the clays and
that's how we pick the zones to test. But if you look now on the right you will see that
there is four zones that we tested in this section and now we have two very productive
wells in zone one and two, both of them capable of 2,000 gallons a minute at the Ustick
reservoir site and we have two untapped reservoirs down below. What we learned from
this testing -- and isolating each of these individual layers, is that the -- each aquifer --
each sub aquifer level has a different pressure head and each aquifer has a different
water chemistry and, for example, Well 19 -- Well 19, the supply well -- and it's only
maybe 50 feet from the test well, it has water level -- it had when we drilled it of 40 feet
above ground. If you put it in a pipe, which we did, the water level would stand in that
well 40 feet above ground and it would flow 1,500 gallons a minute just out of the casing
if it was cut off at ground level. Well, the nearby test well only has an above ground
head of about six feet above ground level and it's completed shallower. So, that gives
you an idea of the stark differences in pressure that are in these aquifers underneath
the ground. Now, if we -- and you will see in this diagram that the green zones on the
left -- on the right there, that's the clays that we put between the zones in the test that
Meridian City Council Workshop Meeting
February 8, 2011
Page 17 of 33
match the clays that are in the natural formations, so that we don't commingle those
heads and so that we don't commingle those chemistries, because if we were to do that
they would certainly move between each other, because of the different pressures that
they have. So, that was in an open bore hole or in a well that was -- that was
completed, water would move in one zone, up the well, and out into another zone. And
in the case of Well 19, that could be an exchange of several hundred to a thousand
gallons per minute of every second of every day. This is pretty significant. This is a
view of each of those tube wells that we talked about we develop and air lift and we
clean them up just like a regular well until they are all clear and they are sand free and,
then, we sample them for water chemistry and water -- and head. But we also have
these wells as a long-term asset for the long-term monitoring for the city and retesting
the aquifer chemistry over time. This is a picture of the newly completed well head at
Meridian Test Well No. 28, which we put six zones -- six separate zones in that and, by
the way, completed the -- the new supply well, it's just ready -- on the verge of coming
online into the best aquifer quality of the whole 1,300 foot section. And there it is in its
secure lockable instrument shelter for the long term. Well, back in 1992 we used drill
and drive methods to -- cable tool, air rotary, et cetera, to drill wells. These are the old
percussion wells that, basically, just beat a hole into the ground and beat a casing into
the ground and we tried like the dickens -- this is actually Well No. 14. The city looked a
lot different in 1992. But we tried really hard to find a way to seal those types of wells
and we just couldn't do it and also before 1992 the wells were pretty much drilled or
driven and the records that we got from the drilling exercises were very poor and
uneven and incomplete. Now we get very good technical records of the drilled geologic
section. Another type of well that used to be drilled in this area and many of the older
city wells are drilled this way, is a reverse rotary well and this -- this is a cross-sectional
diagram of such a well and I think I can do something here -- this is the casing of the
well, of course. Here is the water level in the well. The pumping water level. This is
where the water level stands when it's not pumping. So, I believe this is -- this is a 16
inch casing -- 16 inch diameter casing and a 28 inch diameter hole. So, it's a big 28
inch round whole drilled in the earth and, then, a 16 inch casing put in the middle of it.
So, that means that 16 or 28 minus 16 is -- you have a six inch annular space all around
the well if it's centralized and in those days that annular space got filled with gravel, just
rounded, clean, washed gravel. And so now that we know that these aquifers are under
differing pressure head and different chemistry, we know that in these types of well
construction that water was exchanging all the time and shallow contaminated
groundwater could move in, as Kyle's slide showed, and move down that and out into
the aquifers that we rely upon for municipal supply. The department doesn't allow wells
to be drilled like this anymore, thank heavens, but they are still out there. The old ones
are out there and will be around with us for some time. And another aspect of well
construction is, you know, the city's wells since about 2001 have all been plastic cased
wells, plastic and stainless steel, which are noncorrodible, but we have found that the
groundwater conditions under the Treasure Valley are quite corrosive and in the upper
right-hand photo here at 709 feet below ground that casing is completely rotted out and
corroded through and as I'm sure some of you are aware, we have had to rebuild some
of the city's old wells, including Well No. 14, that corroded out like this after only nine
years in the ground. I mean -- and that's not just -- not acceptable. We believe the
Meridian City Council Workshop Meeting
February 8, 2011
Page 18 of 33
wells that we are building nowadays are hundred year wells. And we found that using
mild steel between the stainless steel causes the mild steel to also -- or the -- to corrode
out prematurely, because of galvanic corrosion of dissimilar metals. This is a schematic
of the type of well that the city drills nowadays and we have, again, the casing and we
have a drilled hole, not as big as I had pointed out previously, but the real significant
feature about -- in terms of protection of the resource in the city's new wells is what I call
of full depth surface seal and that means that the annular space between the drilled
hole and the casing is completely filled from ground level all the way down to the top of
the completion aquifer with a Bentonite or cement based seal and the advantage of that
is that whatever the confining layers are in the lithology, whether it's a buried soil
horizon, a cemented layer, a fine sand or a clay, we cover every possible thing that
separates -- that separates those layers and maintains the stratigraphic protection that
we have in the natural system. That's what we strive to do. And all the city's wells
since Well No. 15 have been completed in that fashion. Full depth surface seals. And
the city uses noncorrodible materials. On the left this of picture is the plastic casing.
The black metal is the centralizer to make sure it gets in the center of the hole so the
Bentonite seal and the cement seal goes all the way around it when it's in the ground
and on the right side we have the stainless steel well screens, that's where the water
gets to come in to the well, and it's also centralized, because it's enveloped with a
special sand, a filter sand that goes around it, like the seal goes around the upper
casing. And the water enters through these -- these wound screen wires. There is slots
between the wires and that's how the water gets into the well. Now, going back to these
drill and drive wells, which you must understand that 90 percent of wells that are getting
drilled in the City of Meridian are drill and drive domestic wells. They far exceed the
number of -- of municipal supply wells. By my last calculation I think there is just shy of
about 1,600 domestic drill and drive wells in the city's area of impact. That's a lot of
wells and they are all -- they all have 18 foot surface seals in them at the surface, which
doesn't even go through the shallow gravels that Kyle showed on his slide, which is
typically 60 feet thick in the City of Meridian. So, they are, essentially unsealed. And
this slide shows a well that we worked, a domestic well, and I will draw your attention to
the well construction again and as you look down there you will see that this annular
space is quite irregular and I measured that annular space, because -- I measured it
with a special caliper tool that we raise up and down the wells and that's the caliper log
right here on the left side of these squiggly lines. And so this is actually the shape of
the -- of the -- the drilled hole outside the casing that is an open conduit for
contaminants, shallow groundwater and surficial land use activities, to be able to move
down unsealed annular space and you can see, again, in the lithology that there is
plenty of clay that would naturally prevent the contaminants from moving down, but it
can move down as it moves along as in Kyle's slide, along the top of one of these clays
in the formation, it can, then, move directly down into the aquifer system we rely upon
through these unsealed spaces. Here is another domestic well that we worked on and
-- or we -- I won't say we worked on it, but we observed it and this well was drilled by
drill and drive cable tool technique and when the owner went to drill the water line to
connect -- to dig the ditch for the water line to connect to the well, he -- he discovered
this giant hole down there that was caused by the drilling that was not evident at the
Meridian City Council Workshop Meeting
February 8, 2011
Page 19 of 33
surface and we believe -- and this whole is much larger than this crazy guy who got
down in that hole would let on. I have one photo of --
De Weerd: That's not you, is it?
Squires: No. -- all you can see is his feet sticking out and he's off somewhere in the
void. But I threw this slide in here, because right underneath this building, the old
creamery, we abandoned -- we discovered and abandoned four old municipal supply
wells that I'm sure you heard about and probably lamented, based on the amount of
money it took to abandon those wells and this was one of the smaller ones probably
one of the original ones, it was just a little four inch casing, and we -- you can calculate
very easily the amount of grout that would just filled that casing and I think in this case it
was somewhere in the amount of one cubic yard of space. But we pumped almost ten
cubic yards into the well to seal it and that's -- here is the casing, okay? This line here.
These red marks are where we perforated the casing, we poked holes in it, so that
when we filled it full of grout and pressurized it, the grout would come outside and fill
any voids and after we pumped in ten times the volume of the casing, the grout squirted
out at the top. So, it's a testimony to how -- how these unsealed wells remain as
legacies in the ground. This is one of the larger wells. It took a hundred yards of grout
and the amount of grout to fill the casing was just a tenth of that. Less than ten yards.
mean -- yeah. Less than ten yards and we pumped a hundred yards of grout down to
fill the voids in this well. So, it is a -- it is a serious problem. It's fortunate that of those
1,600 wells that I mentioned in the city, they are still pretty shallow. You know, 1,500 of
them are probably less than 200 feet. That's a good thing. But our fear is that as these
contamination issues that Kyle talked about, both anthropogenic and the naturally
occurring stuff, as those become understood that will drive the depth of these wells
deeper and that will bring the contamination that they are in now downward into the
aquifers that we rely upon.
De Weerd: And don't we have a pollution cloud that's coming from west Boise slowly
migrating this way? Is that Perc?
Squires: Yes. There is a -- a company that had -- a chemical company that's now
under -- that was at the site that is now the Westpark Mall, jettison some
Perch loroethylene, which was a solvent, back in the '80s when they were moving their
tanks and it was just an ignorant dump. They wanted to move the tank and so they
pumped it out on the ground and that plume now is over three and a half miles long in
the subsurface and it is knocking on Meridian's door. And it's interesting that you bring
that up, because that is one of the first places -- I think it's maybe the second only in the
state where an area of drilling concern was declared by the Department of Water
Resources, so that any wells that get drilled in that area have special construction
requirements, so that they don't propagate the Perchloroethylene into the deeper
system and, you know, people have to hook up to municipal supplies, rather than drill
wells and the responsible party has to abandon the existing wells properly, et cetera, et
cetera. But we also -- another example that I would use is the Meridian Heights
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February 8, 2011
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Subdivision. It's a 300 home subdivision within the city's area of impact; it's out on --
near the intersection --
De Weerd: We know where it is.
Squires: -- of Stoddard and -- you know where it is.
De Weerd: Yes, we do.
Squires: And, you know, they had -- were signed into a consent order, because they
had radionuclide's in their -- elevated concentrations of radionuclides in their wells that
were three times the NCL. Not a little bit over, but three times the NCL for uranium is
30 micrograms per liter and they had 90. It was almost minable for production. And
what I discovered in working on that -- that project was that there are 300 of these
domestic wells that we have been talking about right in the vicinity around that
subdivision and all those wells are completed to the same depth. So, all those domestic
wells are also drinking the radionuclide water, but there is no regulations on those wells.
They are not tested, because they are not a public drinking water supply. And I think
that as it becomes known that those contaminant plumes are out there, a young family
is not going to want to continue to have their water -- you know, drinking that kind of
water, so they are going to drill another well down -- or deepen that well down and if it's
an unsealed well that can allow those -- that contaminated water to move down to
another level and that's what we are more concerned about for the future. The options
that we have distilled this down to are -- and let me -- let me also say that on behalf of
the city I attended almost -- I think it went on almost two years -- negotiated rule making
with the Department of Water Resources and it wasn't the first one that we have been
through. Rob and I, 1 think have been through three of those in our careers and the
rules were changed recently. They went into effect in July of 2010 and there wasn't a
great improvement I will say in those rules. But there are -- you must remember that
they are a set of rules that are designed to be a blanket rule for the entire state and
there are so many different hydro geologic settings in our state that you can't really get
down to the nitty-gritty for each one. For example, if you drill a well in Mountain Home
you will drill a thousand basalt flow rocks that are completely different and the water
levels may be 500 feet below ground. If you drill a well in the City of Meridian you're
likely to have those high artesian pressures that we are talking about and we are drilling
only sediments. So, the rules are different. They need to be more specialized and as
we went through the drilling rules negotiations, even the drillers brought up the idea
that, okay, let's -- let's leave that out of this plan, let's leave that out of this set of rules
and, then, we can address those on a case-by-case basis for various hydro geologic
settings and I think that's what we are suggesting here in Meridian. I personally believe
that the general set of rules is not adequate to protect the city's water supplies and so
how do you -- how do you do that, how do you protect yourself, how do you protect the
city's water supply and to create a more stringent set of rules and one way would be to
create an ordinance and, you know, that's something that's within the city's power to do,
but the Department of Water Resources, which has primacy over all things water in the
state and that's well described in the statutes, they have the mechanism, but just -- this
Meridian City Council Workshop Meeting
February 8, 2011
Page 21 of 33
area of drilling concern that you asked about that's the Perc plume in west Boise. They
have the ability and the authority certainly to create this area of drilling concern that has
it's own special requirements and extra considerations for well construction and I think
because of the precedent you set on the city's doorstep in the Westpark area, that for
the very same reasons, to prevent migration of contaminants across the geologic
section to prevent wastage of heads and pressures, that that area of drilling concern
could be expanded or built upon. It sort of sets a precedent I think and clearly we have
these other anthropogenic plumes of radiology, arsenic, and we don't want to mix those
around, because it makes it hard for us to figure it out later when we pump it. I won't get
too windy about this, but when we were working on the Meridian Heights system, they
had one well that didn't have radiology in it. All three wells were the same depth, but
one didn't have radiology. Why? Because it was a well they didn't use and when it was
sitting idle water from the shallow aquifer moved into that and moved down and pushed
the radionuclide water aside. So, when they tested it they turned it on for a few minutes
and tested it, they didn't get any radiology, but we put a pump in it and pumped it for a
week and it had 90 micrograms per liter of uranium. It definitely happens. I think you --
you have read these in your pre -- in the stuff that Kyle passed out to you previously.
Our -- my recommendation -- and I think the recommendation of the Public Works as
well, is that we think that the city should partner with the Department of Water
Resources and approach the Department of Water Resources with the studies that the
city's been engaged in since 1992, these hydro geologic framework studies, and they
are really starting to come to fruition now in the last few years and that is the science
that the -- we have met with the director of the Department of Water Resources, these
things have to be supported with science, you have to show that there is a threat, a
need, et cetera, and it has to be based in science. Well, the city has gone 90 percent
toward that. We are very close to having the studies that can show the need for this
and present it to the Department of Water Resources. The department has indicated
that it will consider such an application and if the department agrees with the threat and
the danger and the solution, then, they will enact that. I think that having gone through
the drilling rules -- negotiated rule making for the city, I have observed firsthand the
opposition to these kinds of things by the drilling community and others and I think that
the city will lay itself open for a great deal of controversy, perhaps lawsuits, and I also
think that the department has the ability to enforce already. They have the
enforcement, they have the authority to be able to enforce such a new set of drilling
rules and the city really doesn't and I believe that the drilling community will challenge
that authority. So, my recommendation is to pursue the -- pursue the area of drilling
concern idea, contemporaneously -- I mean with developing its own ordinance. I mean
the city still needs to develop its own set of specific drilling rules that apply to its hydro
geologic environment. Now, that is pretty well done. We have been working on that for
a couple years now and we have a very strong first draft -- I won't even call it a first
draft, it's been an iterative process and it's gone back and forth between my office and
the Public Works office and it's pretty well there, but this enables the department to
have a set of rules and if the area of drilling concern can be enacted, then, when
somebody wants to drill a well in the City of Meridian a flag goes up at the department
and they are now able to say, okay, you must drill a well this way. And as a closing
comment, I would say that the city will spend easily tens of thousands of dollars on each
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February 8, 2011
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individual well to seal it in the fashion that I described, but 50 feet away an air rotary
domestic well can be drilled to the same depth as the supply well with very little seal in it
and I think that is not right. So, certainly stand for any questions.
Radek: And I'm going to interrupt you for a second, even though you are done. I would
like to go back -- I would like to go back, because I think it is important to see the one
slide that you -- that you assumed that City Council had seen. I'm not so sure, so I just
want to go over that. We wanted to talk about the pros and cons of the city ordinance
option here and we feel like the pros are -- Ed, I was already there.
Squires: Oh, you were already there. Okay.
Radek: Okay. The pros are that it would be quick, something that we know how to do,
we know how to write ordinances and we can enact it quickly and we can put what we
want in it. We feel like the cons to it are that it has a potential conflict with state law and
the Idaho Department of Water Resources as the prime agency for administering this
kind of well construction in Idaho. We have to think about enforcing the rules and
administering the rules. We don't have the in-house expertise that it would take to, for
example, review permits and go out and inspect well construction, so we'd have to --
we'd have to consider those costs. One of the biggest limitations, I believe, is that the
jurisdiction of a city ordinance would be limited to city limits and as Ed said, there is
maybe 1,600 domestic wells in the City of Meridian impact area, but the wells that are
being drilled, with the exception of maybe one a year, they are going to be drilled in the
county and that would be in areas that Meridian is concerned about, but not necessarily
in the City of Meridian, and the drilling community is likely to -- as Ed indicated, to react
negatively to this kind of an ordinance. And just in brief, the area of drilling concern
pros were that there would be no apparent conflict with the primacy of IDWR state law.
They do have the authority to do it. It would apply to areas based on scientific --
scientific facts and data that we would show that Meridian has a reasonable concern
about wells drilled in this area. So, it would not be limited to city limits, it would extend
to an area that makes sense scientifically and there would be no enforcement cost to
the city. The cons -- essentially, the only con that we have listed is that it would take
more time to get that done and as Ed indicated, we have already done significant
studies to kind of prepare us for that kind of a petition. So, with that I would like to open
it for discussion and just remind City Council that we do have Rob Whitney here from
IDWR. If we don't have any questions for him, I will probably ask him to come up
anyway just to -- just so he didn't make this trip for nothing. And I will turn it over to City
Council at this point.
De Weerd: Rob, would you care to make any comment? Could you, please, make
comment, so we make your time worthwhile. We appreciate that you're here to listen to
the presentation and also to share any of your impressions and thoughts with us.
Whitney: Madam Mayor, Members of the Council, thank you for having me. That's a
tough act to follow. I have worked with Mr. Squires for 20 some years and we have kind
of grown to know well construction and the different issues that he has explained to you
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February 8, 2011
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briefly tonight, but, actually, in great detail. I applaud his presentation. I guess I didn't --
I didn't come tonight prepared to present anything specific. I can tell you that what was
presented and what I saw I completely agree with that, having the firsthand field
experience. While I don't personally and the department doesn't posses the kind of
data that Mr. Squires and the city have gathered over lots of years of verification
through geophysical methods and documentation of these things, I spend most of my
time out in the field trying to make sure that these kinds of things don't occur, at least
within the scope of what our well construction standards say. One thing I might mention
-- and Ed alluded to the fact that we did have approved and implemented new well
construction standards that intend to prohibit the commingling and mixing of waters that
was suggested on some of these pictures. The biggest challenge for us as regulators
or myself -- there is only four of us through the whole state that oversee well
construction, so we are spread pretty thin, and a lot of different hydro geologic settings
that we have to keep track of and Ed mentioned the -- the issue of a blanket rule. We
did what we could with these standards in order to get a better standard approved that
includes different hydro geologic settings in it. In other words, there are different
requirements for different subsurface conditions, however, you can't possibly in one rule
book cover every specific geologic setting. So, we have to group them into more
general categories. Consolidated formations, unconsolidated sedimentary formations,
that we can deal with and I won't disagree with Mr. Squires' argument about these
sealed wells and the best way to insure the highest level of protection and we achieve
this -- gosh, more than 90 percent of the time, if not a hundred percent of the time, in
the larger diameter wells that are drilled with an open hole method where you can place
a casing, a filter pack across from the production zone and, then, seal that back to land
surface. All of the questions that -- that I would ask we -- our rules require placement of
seals across from or through these confining layers to prevent the mixture of waters of
unlike temperature, pressure, and quality. What we depend on is the well drillers'
reports and Ed showed you an example of a well driller's report that was -- it seemed
like it was over 400 feet, maybe 500 feet deep and had three or four entries. Well, that's
not a whole lot of information, but that's how we base our decisions, does that well
comply with the standards based on that geology that is reported to us. When you run
geophysical logs in a test whole you can verify that information and, obviously, we can't
do that on every domestic well, you know, the costs would be too great. So, I am
dependent, as the regulator, on the information I have in the form of well drillers' reports,
what I know from having been in the field in specific areas and if I'm not physically on
the drill rig watching the well constructed, which I can't be on every -- every well, I'm at a
disadvantage to determine whether or not that well meets the standard that's required,
because that information is subject to the interpretation by the drilling contractor and the
fact that they know what's required in the rules, so what we -- we potentially can end up
with is a situation where the well log is tailored to the requirements, rather than the well
being tailored to the actual conditions. That being said, this notion of full depth seals --
if we get an inaccurate report and we have a well that has a full depth seal from the
aquifer, the target zone, back to the surface, if the information we get from that target
zone back to the surface is inaccurate, it doesn't matter, because it's sealed. The step
we can take to go a step further in places where we determine it's necessary or the
director does to implement more stringent standards, this more positive type of
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February 8, 2011
Page 24 of 33
construction, more easily verifiable that it is completely protected can be implemented
through that area of drilling concern process, which to some extent we have done with
the area of drilling concern with the Town Square Mall Perc plume. Do you have any
questions for me or --
De Weerd: Council? Mr. Hoaglun.
Hoaglun: Madam Mayor. Rob, thank you coming tonight. Appreciate it. You said
something there that kind of made me want to follow the train of thought a little bit more.
So, the current standards for well drilling right now -- your thinking is that 90 percent of
those wells are sealed, it's -- and it would prevent the contaminations from migrating,
but your concern is the fact that you're relying on the well drillers to report that they did it
right or what they found was correct and you guys just don't have the resources to verify
everything. Did I understand that correctly?
Whitney: Madam Mayor, Members of the Council, when I alluded to 90 percent of -- or
better of the municipal wells, irrigation wells, larger scale wells that are drilled with what
would refer to as open hole drilling techniques, rather than drilling and drive
techniques, which are advancing casing with the drilling process, the beauty for me as a
regulator in these open hole techniques is even if the driller is as honest as the day is
long, which most of them are, if they miss something in the process, which is -- maybe
didn't seem significant, but what we think very small lenses of confinement can be
significant in certain cases, little lenses like that that might not even be noticed in some
of the drilling processes, including an open hole technique, short of running geophysics
and, you know, that gives some verification to the sampling that was done during the
drilling process, if that well is sealed from the source to the surface, if you miss
something it's covered with seal. So, the majority of the municipal wells and your wells
-- at least in my area, this concept of filter packing them from the source to the surface,
which used to occur, it doesn't anymore. So, we have much more positive results,
verifiable results from these open hole drilling methods in that we seal everything we
are not going to use, so there is no questions.
Hoaglun: So, Madam Mayor, just to be sure, then, the drill and drive is the one that
you're concerned about the most, because that -- that technique is different and that's --
and that's more household wells?
Whitney: That's correct. Madam Mayor and Members of the Council. The standard
has been speed and volume and these air rotary and the cable tool methods, while they
are similar, they, in general, don't employ -- well, they can be very destructive if the
person isn't paying attention to the sub surface, as you saw this big crater several feet
below the ground, well, that can occur all the way down if you -- and with -- with their
rotary construction which is tailored to -- you know, there are years when I know
particular -- one drilling company in this valley may drill upwards of 200 of those wells in
a year, so multiply that by 30 companies, you know, that's a lot of wells and our
standards ask them to place seals across from confining layers that they penetrate
through that drilling process. One of the things that I have discovered and -- from being
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February 8, 2011
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out on these sites is if the operator of that equipment isn't using some finesse as he's
drilling, techniques that will disturb those confining layers, some of them are very lens
like and thin, maybe one or two feet, but they still could be protective, they tend to get
beat up pretty badly or even destroyed unrepairably in those types of drilling processes.
As they mine the sand below, those clay layers collapse. So, once that's done the
damage is kind of done. What we are requiring them to do is to place seals across from
those layers. Unfortunately, when we promulgated these new rules, one of the things
we were told to stay out of is the drillers' business on how to do the job, we were
supposed to say here is the rules, here is how you need to build the well, but short of
dictating the processes that they have to use in order to do that, so -- so the rules do
require seals at each confining layer or a full depth seal. The problem is in -- it's not like
a building inspector that can see every nail that got driven into a stud where it requires,
you know, so many nails per joist hanger that you can inspect. All this stuff is done
below the ground and so, once again, the beauty of what Mr. Squires talked about in full
depth seals is it takes a lot of the questions out of -- is it right and is it protective.
Hoaglun: Okay. One other question, Madam Mayor. Rob -- and I don't know if you can
answer this, but up there on the area of drilling concern, it would be determined on the
-- how big of a threat -- the science and how big of a threat and my question was going
to be -- and this might be, Ed, for you, but we know in the one area of Meridian we have
radionuclide's, so that would be an area of drilling concern, because of that migration,
but yet maybe in another part of town we don't have any threats that are known and all
the layers are good. Does that area of drilling concern -- can we do a blanket one or is
it only where there are actually verifiable threats based on the science? How does that
work?
Whitney: Madam Mayor and Council Members, I -- I think there are a multitude of areas
around the Treasure Valley where there are different constituents sub surface that are
undesirable from nitrates to uranium, to arsenic, pesticides, herbicides, that kind of stuff
that's showing up in nitrate, nitrites, you know. So, I think the more data that we get if --
obviously, hydrogeology and groundwater resources don't recognize political
boundaries and Ed alluded to that fact, if you establish a city ordinance, well, that's a
political boundary when, really, the interest in is the hydrogeology. So, I believe that's
just dependent on how much and what type of information we can get and if those --
because there may be an area that the groundwater quality is great. Well, that doesn't
necessarily mean that that same standard shouldn't be implemented there as well to
keep it that way. So, I think in having visited with the director today about the process --
and I just wanted to feel him out where he was at at the time about an area of drilling
concern and, obviously, what he can do -- the authorities he has to establish this area of
drilling concern by the state law, will have to be supported with information and data that
allows us to establish a boundary based on hydrogeology and so I think that -- that
question just depends on how much information we can get.
Hoaglun: And, Madam Mayor, I hope you don't mind, I have got one more question,
but, hopefully, it's my last one and this has to do with well abandonment. Heard the
explanation what needs to be done and what was done with wells here. My thinking on
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February S, 2011
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it is, well, if you're going to park -- put a building over it or a parking lot, isn't the well
capped? Does that work? If this -- the creamery well that he talked about, we filled it
with grout, but yet if you're putting a building on it and there is not going to be anything
allowed -- I mean this is how my simple mind works -- well, if you're going to put a
building over it isn't it capped? Do you have to fill it with grout?
Whitney: Madam Mayor, Council Members, that's a good question, but the -- it's easy
to take care of surface impacts along side that well. Pave right over the top and put a
little concrete cap or weld a plate on it and you have taken care of that. Those are --
yeah. Those are the easy things. But what's occurring on the sub surface -- or we
suspect is occurring -- in certain cases we know and Mr. Squires, obviously, has -- he's
put his whole career into this and I have followed that myself. One thing I can tell you
about these recently adopted rules is they have gone much further in describing what is
required for abandonment of wells and it, basically, suggests that if -- if a well wasn't
sealed in the first place -- in other words, there isn't a seal on the outside of the casing
as it exists now, as far as we can determine, then, when it is abandoned, which we have
changed that term to decommission, those seals have to be put in place after the fact.
The beauty of a well that's sealed full depth today, abandonment of that well is as
simple as filling it with dry Bentonite chips and putting a cap over it. So, pay me now,
pay me later on the well abandonment.
De Weerd: Any other questions? Thank you for being with us.
Whitney: Thank you.
Radek: Madam Mayor, Council, just a reminder, we are asking for some direction from
Council on whether to proceed with a stand alone ordinance or proceed with application
for area of drilling concern or some combination of those options.
De Weerd: I don't think there is a choice. I think a city ordinance would not cover what
we need, from the sounds of it. Council?
Rountree: Madam Mayor?
De Weerd: Mr. Rountree.
Rountree: I think we need to continue the effort to identify the science that we need to
move forward with the agency.
Hoaglun: Madam Mayor, I agree with Councilman Rountree's assessment.
De Weerd: Thank you. Appreciate the level of detail and that we still were able to
follow you, Ed. You have trained us well. But I think, you know, the quick fix is not
going to be the right fix. It needs to be greater than that and you -- you have seen how
the plume from the Town Square area has continued to move and I think we need to be
Meridian City Council Workshop Meeting
February 8, 2011
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concerned, so -- Ed, any -- you would need to make it on the record. There is no final
comment in this room.
Squires: Ed Squires again. I just want to say that I think it's not too late to do this. We
have a chance to keep the aquifer from becoming contaminated because of the
shallowness of the existing wells. So, it's not too late to make this happen and the city
is also very lucky in the number of wells that it has, because I know that just in a nine
square mile area of the city of Eagle that grew up, essentially, without a municipal
supply, there is over 3,000 of these domestic wells.
De Weerd: I think our elected officials and Public Works people before us protected the
city quite well. Okay. So, we know the direction we are going; right?
Radek: Madam Mayor, thank you very much.
B. Public Works: Discussion on Backflow Testing Program
De Weerd: Thank you. Rob and Ed, we won't make you stay. Mr. Dees.
Dees: Madam Mayor, Members of the Council, I'll try to make this not quite a deep as
that last one was. That's a joke. Come on. It's late. I would like to introduce someone
to you. He is our new water superintendent. It's Dennis Teller. Dennis, where are you
at?
De Weerd: Welcome, Dennis, we appreciate you being here.
Dees: Comes to us from Arizona and we are awfully glad he's here, because maybe I
can not do this anymore for awhile. I don't know. In any case --
De Weerd: I don't know. I think you're having too much fun, Rich.
Dees: Too much fun. Uh-huh. Thank you. This is an update on the backflow or
disconnect cycle, particularly backflow notices that we -- you passed on the 21st of
December. We are trying to proceed in a methodical way to make sure we do the
proper notifications and get the word out to all those who have to have the word gotten
to, if you will. And we also want to make sure that we do it properly, so that we don't --
we don't miss any steps and can get the thing done smartly. There is a packet that you
have in front of you there someplace and it's several sheets of paper and I will refer to a
few of those pages as we go along. So far we have sent out a letter to our testers and
we have told them what we are up to. And we have also asked them to respond.
These are the testers that we know about. We have asked them to respond by filling
out a form and also to tell us -- in that form to tell us how much they are going to charge
for their services. We received a majority of those back. Some did not reply. What we
have also done is on the 14th of this month we are going to send a letter to all of our
known backflow assembly customers, letting them know what's happening, so that they
can be informed citizens as well. And, then, finally, we are going to send out the first
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February 8, 2011
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letters of tests due under the new program. So, we kind of have a date of the 1st of
March is when we are going to start off our new program, as it will. Before, then, we are
onto the old program. That means that any tests that were done up until the 1st of
March we will go ahead and honor the commitments that we made prior to the -- prior to
the change in December. We needed time -- actually, the reason we did that is
because we needed time to notify everybody, as I mentioned. Our testing program, if
you will look at the long sheet of paper that kind of looks like this. Okay? Our testing
program is about 75 days long. Or not testing program, our testing cycle. Every testing
cycle has about that many days in it, but just imagine this thing moving down through
the year, okay? So, we will start it out the first of the month. So, we said 1/1. That's
when we will send notices to -- to all the customers that are due on that particular
month. In this case we will say March 1 st. So, we send them notices and we give them
30 days to get their systems tested. Now, they can use anybody they want who is a
licensed tester in the state. They can also refer to the list that we are going to send
them of testers that we have had -- we have accumulated and we are going to show
them some representative prices. The idea is that the customer calls one of these folks,
they come out, they test their backflow assembly device and the tester, then, sends us
evidence that that device has had the test and it passed and, then, we give them a ten
dollar rebate on their water bill. So, that's kind of what the program is in a nutshell. The
problem comes up what happens if they don't do that or what happens if they miss the
test. That's what the rest of the -- rest of the cycle was about. At the end of the first 30
days if we haven't received a notice from a tester that the backflow assembly has been
tested on a particular customer's home, we will give them about 15 days, because
maybe the tester didn't send in the batch that month or something like that or that day
and, then, on the 15th of the month past the day, that's where the 2/15 there in the -- on
the chart, we are going to send them a final notice saying we haven't received your test,
you need to contact your tester and, please, let us know what you're on about. This is
the last letter that they are going to get before we will turn their water off and they will be
notified at that time if we don't receive a test their water will be shut off and we are going
to give them a date certain when that's going to happen. We, then, kind of wait a little
while and you see where it says 3/1, well, at that point we should have all the
information back from any tester that would have run out -- if the homeowner called and
says, oh, please, hurry, Meridian is going to shut my water off, come and test my
backflow assembly. So, we give them that length of time to send that information in. If
we haven't received that information by -- in this case 3/1, 15 days later we will
terminate their water service. That's kind of the cycle that will happen each and every
month -- or each and every month is when it -- when it will happen. So, we are going to
start our first one the 1 st of March. By April -- by -- let's see. March -- 75 days later we
will, then, be turning our first folks off if they haven't had their systems tested. We
intend to give them a ten dollar rebate if they have had it done within the -- within the
period of time that we allot them. If they haven't we won't give them a rebate. So, if we
-- if they are outside the thing and we have to turn their water off and, then, come back
and turn it back on again, we are not going to give them a ten dollar rebate, rather, we
are going to -- we are going to charge them for a turn off fee to reconnect them. The
customers will be eligible for the ten dollar credit, as I said, if they submit their report
prior to the final date for submission of the test. The initial letters for the customer
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February 8, 2011
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providing the test date are in your packet. We have sent you sample letters, so that you
can see what they look like. The first letter just says, hey, you're due. Please contact a
tester of your choice. Attached is a list of testers. Now, there is a couple of ways we
can do that tester list. One way we have done it is -- in the case that you had before
you is we have listed the prices that they gave us and we listed it by the lowest to the
highest of single -- of folks who provided us as a single price. The next group are the
folks who provided us multiple prices, like this one individual that said I will go from 18
dollars to 150 bucks. So, that's in the next group. The third group are those folks who
didn't give us a price. So, that's how we have arranged the list. Now, we can arrange
the list any way we'd like. That just seems like it was a logical way for us. We could
arrange it by group. For example, these testers offer a test somewhere between 25 and
40 bucks and, then, group them that way. That's sort of a choice that we have -- we can
make. Again, the other letter that you have in your packet is the letter we will send as a
final notice. It says, okay, indeed, it's time to shut your water off if you don't comply with
the -- with the -- with the testing requirements and this is the date that will happen if we
don't receive something from you. If you have, call us, we will work it out. So, we have
left them a lot of options. And that's pretty much the program in a nutshell. It's -- also
includes in that first letter we will send to the customers that we have in our system
there will be a flyer that will describe the backflow program in general and why backflow
is important. The other thing that we are going to do is send that same flyer in all the
bills that you get for every customer in the city, so they will understand what the water --
what the backflow program is about. So, those are some of the education pieces we
will be doing and, finally, we are going to do one of the little TV spots that were on the
web showing people what a backflow assembly is. We have discovered that some
people don't even know what they look like and so we are going to educate them by
showing a picture of the things and to look for in their backyard or where ever they may
be and this is the requirements for it. With that that brings you, I think, up to date on
what we -- what we are planning on doing. We have some 400 letters that are going to
go out for the March and April test and we are posed to do that. Those letters are
before you, if there is any final changes you would like to make we can certainly do
those, and apart from that we are on the road. Do you have any questions for me,
Ma'am?
De Weerd: Thank you, Rich. Questions from Council?
Bird: I have none.
Rountree: Madam Mayor?
De Weerd: Mr. Rountree.
Rountree: My preference would be not to show the prices. I don't know that we
necessarily need to be in the marketing for these testers. If they are licensed testers,
we give them a list of the licensed testers and let them shop at will or go to the one they
are familiar with.
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February 8, 2011
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De Weerd: I guess, Mr. Rountree, I will -- we had some people taking advantage of
pricing and certainly by giving just a ten dollar credit it does kind of bring it back into --
it's probably more of a market rate. But most of the testers stepped forward and weren't
concerned with sharing what their -- the cost of their testing was.
Bird: Madam Mayor?
De Weerd: Mr. Bird.
Bird: I see nothing wrong with putting the price out there myself. I think it's -- I mean it's
no knowledge -- I have a feeling that people are going to use the same ones they have
used through the year, regardless of the cost, you know, because they know where the
backflow is and everything about it. At least I would.
Dees: Madam Mayor, Members of the Council, leave the prices? Take the prices out?
What would you like me to --
Rountree: The Mayor is the administrative voice.
Dees: In that case, the prices will remain in.
Hoaglun: Madam Mayor, just to throw my two cents in. You guys have hashed this out
and worked through it and gone back and forth on this and I think you have hit a good
middle ground on it, so if you want to do that, that's fine.
De Weerd: Council, any other comments about the process and moving forward? I
guess, Rich, the only question I would have is because our testers do know that there is
that looming deadline out there of March 1st, that you're going to have someone --
someone's unit being tested that is not due until this summer, so how are you
addressing that?
Dees: I'm sorry, I didn't understand your question. You mean someone who we don't
know that's a tester or --
De Weerd: Well, no, let's say my address has a backflow device and I am not -- my
annual testing date is in July and I know about this program, because I read my water
bill and the letter that you had sent out and I decided I'm going to call one of these
testers, so they will -- the city will pay for my entire bill --
Dees: No.
De Weerd: -- instead of just ten dollars they will pay for it all, even though my test is not
due until July.
Dees: Madam Mayor, Members of the Council, we, actually, had that happen already
and what we have done is we called all the testers and we have told them that as of the
Meridian City Council Workshop Meeting
February 8, 2011
Page 31 of 33
1 st of March -- if your test is due after the 1 st of March you're on the ten dollar rebate
program, if it's due before the 1st of March you will get -- you will get the rebate as it
was before we changed it. So, March 1 st is sort of the deadline or the line in the sand.
If your test is not due -- it was due in February, we will pay the rebate as we always
have. If your test is due in June you're under the ten dollar rebate program, not the full
rebate program, no matter what happens. So, they have already been informed of that.
The testers have. And, then, the notification to the folks -- that's what they are going to
see when they get their letters.
De Weerd: Okay.
Bird: Already thought about that.
Dees: Are you in June -- no.
De Weerd: No, I don't have one. I don't have a backflow device.
Bird: Better check that out, Rich.
De Weerd: You can come out and look. I did in my last house. And I never -- when I
lived in it I had it tested before the city started covering them, so it was all on my
expense.
Dees: We thank you.
De Weerd: Hey, protecting the city's water source. Any further comments or questions
from Council?
Bird: I have none.
De Weerd: I guess I would like to thank Mr. Teller for being here tonight and inheriting
this. We appreciate you coming on board. But I do want to assure -- can we get a
summary report in a year to see how this is going? I still -- just like Mr. Squires has
educated me on drill -- the drilling practices and why we should protect our source of
water, I have a pretty firm opinion still on the backflow devices and one of the reasons
the city went in the direction that we did, because there were concerns people wouldn't
do the backflow device testing and so I would just appreciate maybe coming back to
Council, talking about this process and give us assurance that we are still protecting our
source of water.
Dees: Madam Mayor, Members of the Council, I will be happy to do that. Perhaps
maybe a semi-annual report or an annual report just to you in a brief Council memo or
something like that, does that -- does that work?
Meridian City Council Workshop Meeting
February 8, 2011
Page 32 of 33
De Weerd: Well, I think you will probably need to give some kind of summary, because
as we set that budget line item we will be needing to know some recommendations in
moving forward.
Dees: Or perhaps during the budget cycle.
De Weerd: If that's enough time to get a good indication of how things are going. Okay.
Dees: We will do that.
De Weerd: Good. Well, thank you. We appreciate shall you being here. Thank you
for our water staff. I think you guys are going to be the men on the front line on this;
right? Well, thank you for being here.
Item 8: Executive Session per Idaho State Code 67-2345 (1) (f) - To Consider
and Advise its Legal Representatives in Pending Litigation
De Weerd: Okay. Council, we have one item that was added to the end of our agenda.
Item 8, Executive Session. Do I have a motion?
Hoaglun: Madam Mayor?
De Weerd: Mr. Hoaglun.
Hoaglun: I move that we go into Executive Session per Idaho Code Section 67-
2345(1)(f).
Bird: Second.
De Weerd: I have a motion and a second to adjourn into Executive Session. Madam
Clerk, will you call roll.
Roll -Call: Bird, yea; Rountree, yea; Zaremba, absent; Hoaglun, yea.
De Weerd: All ayes. Motion carried.
MOTION CARRIED: THREE AYES. ONE ABSENT.
EXECUTIVE SESSION: (8:03 p.m. to 8:20 p.m.)
Rountree: -- Executive Session.
Hoaglun: Second.
De Weerd: All those in favor say aye. All ayes. Motion carried.
Meridian City Council Workshop Meeting
February 8, 2011
Page 33 of 33
MOTION CARRIED: THREE AYES. ONE ABSENT.
Rountree: Move to adjourn.
Hoaglun: Second.
Bird: Second.
De Weerd: All those in favor? All ayes.
MOTION CARRIED: THREE AYES. ONE ABSENT.
MEETING ADJOURNED AT 8:20 P.M.
(AUDIO RECORDING ON FILE OF THESE PROCEEDINGS)
MAYOR T Y De WEERD DATE APPROVED
OF MRZ ,
A �-4
ATS
EE LK4AN, CI Y CLERK
SEAL -
COUNT`t \
Meridian City Council Meeting
DATE: February 8, 2011 ITEM NUMBER: 4A
PROJECT NUMBER:
ITEM TITLE: January 25, 2011 City Council Regular Meeting
MEETING NOTES
f b� �Ytx-eA-
CLERKS OFFICE FINAL ACTION
DATE:
E-MAILED TO
STAFF
SENT TO
AGENCY
SENT TO
APPLICANT
NOTES
INITIALS
Meridian City Council Meeting
DATE: February 8, 2011 ITEM NUMBER:
PROJECT NUMBER:
ITEM TITLE: Sub -Recipient Agreement
NHS Lending Community Development Block Grant (CDBG) PY 2010
MEETING NOTES
A -R nor ed
CLERKS OFFICE FINAL ACTION
DATE:
&MAILED TO
STAFF
SENT TO
AGENCY
SENT TO
APPLICANT
NOTES
INITIALS
/
I oricttna.l 4b Lori in
SUBRECIPIENT AGREEMENT BETWEEN CITY OF MERIDIAN
AND NHS LENDING, INC.
FOR PY 2010 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
This Agreement is entered into this�-�da of, 20 b and between the City of
Meridian, a municipal corporation organized under the laws of the to of I aho ("City") and NHS Lending,
Inc., a nonprofit organization organized under the laws of the state of Idaho ("Subrecipient").
WHEREAS, City is an entitlement community, and as such has applied for and received funds from the
United States Government under Title I of the Housing and Community Development Act of 1974, Public Law
93-383, i.e. Community Development Block Grant ("CDBG") funds; and
WHEREAS, Subrecipient assists families in obtaining decent, safe, and affordable housing solutions,
which activity complements the objectives of the CDBG program; and
WHEREAS, City and Subrecipient wish to enter into a cooperative agreement for the investment of
CDBG funds from Program Year 2010 (PY 10);
NOW, THEREFORE, in consideration of the mutual covenants of the parties, the Parties agree as
follows:
I. SCOPE OF SERVICE
A. Activities. Subrecipient shall use City's PY10 CDBG funds in the amount of twenty thousand dollars
($20,000) to provide direct homeownership assistance to help low/moderate income ("LMI") persons
Ao"61%, purchase homes. Specifically, Subrecipient shall undertake the following activities:
1. Subsidize mortgage principal amounts;
2. Pay any or all of the reasonable closing costs; and
3. Pay up to 50% of the down payment required by the mortgagee.
B. National Objective. Subrecipient certifies that the activities carried out City's PY10 CDBG funds
provided by City under this Agreement will meet one or more of the CDBG program's National
Objectives as defined in 24 CFR § 570.208. Specifically, Subrecipient's activities under this agreement
shall benefit LMI persons (24 CFR § 570.208(a)(2)(C)).
C. Levels of accomplishment.
1. Goals. Subrecipient shall undertake activities pursuant to this Agreement to serve two (2) Units of
Service. For the purposes of this Agreement, "Units of Service" shall be defined as households
assisted in the purchase of a home.
2. Performance measures. This project will provide direct homeownership assistance to LMI
persons. In addition to the normal administrative services required as part of this Agreement,
Subrecipient agrees to document and report on each and all of the following outcomes:
a. Number of households assisted and number of persons in each household;
b. Income level and ethnicity of persons provided housing;
c. Number of persons assisted who are first-time homebuyers and the number thereof receiving
,•� housing counseling;
d. Number of persons receiving down payment assistance and/or closing costs; and
e. Amount of funding received by each household.
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 1 OF 13
D. Staffing not funded. Subrecipient agrees that no CDBG funds will be utilized for staffing.
E. Performance monitoring. City will monitor the performance of Subrecipient against goals and
performance measures as set forth herein. Performance monitoring shall include City's review of
Subrecipients' submitted documents for accuracy and completion, as well as an on-site visit from City's
CDBG Administrator to review the completeness and accuracy of records maintained. Substandard
performance as determined by City shall constitute noncompliance with this Agreement. If action to
correct such substandard performance is not taken by Subrecipient within fourteen days(14) after being
notified by City, Agreement suspension or termination procedures will be initiated.
F. Time of performance. Services of Subrecipient shall start on or before December 28, 2010 and end on
September 30, 2011. The term of this Agreement and the provisions herein shall be extended to cover
any additional time period during which Subrecipient remains in control of CDBG funds or other CDBG
assets, including program income.
G. Progress Reports. Subrecipient shall submit a regular Progress Report, in the form and content as
required by City, with every draw request. If Progress Reports are delinquent, draw requests will not be
processed until the delinquency is cured. Progress Reports must contain information on outcome -based
measurements as outlined in this Agreement.
II. ADMINISTRATIVE REQUIREMENTS
A. Uniform administrative requirements. Subrecipient shall comply with applicable uniform
administrative requirements, as described in 24 CFR § 570.506.
B. Financial Management.
1. Budget. Subrecipient agrees that it shall use City's PY10 CDBG funds in the amount of twenty
thousand dollars ($20,000) to provide direct homeownership assistance to LMI persons. City may
require a detailed budget breakdown, and Subrecipient shall provide such information in a timely
fashion, and in the form and content prescribed by City.
2. Supplementation of other funds. Subrecipient agrees to utilize funds available under this
Agreement to supplement, rather than supplant, funds otherwise available.
3. Accounting Standards. Subrecipient agrees to comply with 24 CFR §§ 84.21 through 84.28, and
further agrees to: adhere to the accounting principles and procedures required therein, utilize
adequate internal controls, and maintain necessary source documentation for all costs incurred.
4. Cost Principles. Subrecipient shall administer its program in conformance with OMB Circular A-
122, "Cost Principles for Non -Profit Organizations." These principles shall be applied for all costs
incurred, whether charged on a direct or indirect basis.
5. Certification of financial management system. Payments shall be contingent upon HUD's
certification of Subrecipient's financial management system in accordance with 24 CFR § 84.21.
6. Subrecipient Orientation Workshop. Subrecipient agrees to meet with City's CDBG Program
Administrator prior to submitting the first draw request to City. City will not process draw requests
unless and until Subrecipient attends this meeting.
7. Client Data. Subrecipient shall maintain client data demonstrating client eligibility for services
PYIO SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 2 OF 13
provided. Such data shall include, but not be limited to: client name, address, income level or other
basis for determining eligibility, and description of service provided. Such information shall be
made available for review upon City's request.
8. Disclosures. Subrecipient understands that client information collected under this Agreement is
private and the use or disclosure of such information, when not directly connected with the
administration of City or Subrecipient's responsibilities under this Agreement, is prohibited by the
Financial Privacy Act unless written consent is obtained from such person receiving service and, in
the case of a minor, that of a responsible parent/guardian.
9. Property Records. Subrecipient shall maintain real property inventory records that clearly identify
properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria.
10. Closeout. Subrecipient's obligation to City shall not end until all closeout requirements are
completed. Activities during this closeout period shall include, but shall not be limited to: making
final payments, disposing of program assets (including the return of all unused materials, equipment,
unspent cash advances, program income balances, and accounts receivable to City), and determining
the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall
remain in effect during any period that Subrecipient has control over CDBG funds, including
program income.
11. Audits and inspections. All Subrecipient records with respect to any matters covered by this
Agreement shall be made available to City, HUD or its agent, or other authorized federal officials, at
any time during normal business hours, as often as deemed necessary, to audit, examine, and make
excerpts or transcripts of all relevant data for purposes of investigation to ascertain compliance with
the rules, regulations and provisions stated herein. Any deficiencies noted in audit reports must be
fully repaired by Subrecipient within thirty (30) days after receipt of such report by Subrecipient.
Failure of Subrecipient to comply with the above audit requirements will constitute a violation of
this Agreement and may result in the withholding of future payments. Subrecipient hereby agrees to
have an annual agency audit conducted in accordance with current City policy concerning audits and
as applicable, OMB Circular A-133.
C. Payment Procedures.
1. Program Income. The activities governed by this agreement are not anticipated to generate
program income as Subrecipient shall not charge its members for the service. Any change to the
activities described herein that will generate program income shall require an amendment to this
agreement.
2. Indirect Costs. Indirect costs are not eligible for CDBG funding.
3. Payment Procedures. City will pay to Subrecipient funds available under this Agreement based
upon information submitted by Subrecipient and consistent with any approved budget and City
policy concerning payments. With the exception of certain advances, payments will be made for
eligible expenses actually incurred by Subrecipient, and not to exceed actual cash requirements.
Payments will be adjusted by City in accordance with advance fund and program income balances
available in Subrecipient's accounts. In addition, City reserves the right to liquidate funds available
under this Agreement for costs incurred by City on behalf of Subrecipient.
4. Documentation required prior to transactions. As early as practicable, and not less than two (2)
weeks prior to the completion of each transaction, Subrecipient shall provide the address of the
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 3 OF 13
housing unit under consideration to City for floodplain and related environmental review. Failure to
provide the address of the housing unit under consideration in advance of the anticipated close date
may result in added expenses for the beneficiary or Subrecipient, or refusal of reimbursement by
City.
5. Draw requests. It is expressly agreed and understood that the total amount to be paid by City under
this Agreement shall not exceed $20,000. Draw downs for the payment of eligible expenses shall be
made against the activity specified, in accordance with performance and as expenses are incurred by
Subrecipient. Draw requests shall only be accepted on official City and/or HUD forms and must be
completed in full to be processed. All draw requests are to be submitted monthly, no later than
twenty-one (2 1) days after the end of the month for which reimbursement is being submitted. Draw
requests shall include the following: draw request form; progress report; beneficiary income
eligibility documentation; transaction detail, HUD -1, and related summary information; and proof of
payment by Subrecipient. Final draw under this Agreement will be submitted by Subrecipient no
later than September 20, 2011 unless otherwise agreed in writing.
6. Funds transfer. Pursuant to 24 CFR § 570.503(b)(7), upon expiration of this Agreement,
Subrecipient shall transfer to City any CDBG funds on hand at the time of expiration and any
accounts receivable attributable to the use of CDBG funds.
7. DUNS number. Subrecipient shall comply with requirements established by the Office of
Management and Budget ("OMB") concerning the Dun and Bradstreet Data Universal Numbering
System ("DUNS"), the Central Contractor Registration database, and the Federal Funding
Accountability and Transparency Act, including Appendix A to Part 25 of the Financial Assistance
Use of Universal Identifier and Central Contractor Registration, 75 Fed. Reg. 55671 (Sept. 14, 2010)
(to be codified at 2 CFR part 25) and Appendix A to Part 170 of the Requirements for Federal
Funding Accountability and Transparency Act Implementation, 75 Fed. Reg. 55663 (Sept. 14, 2010)
(to be codified at 2 CFR part 170).
D. Procurement.
1. Compliance with policies. Subrecipient shall comply with current Federal and City policies
concerning the purchase of equipment and shall maintain inventory records of all non -expendable
personal property as defined by such policy as may be procured with funds provided hereunder.
2. OMB Standards. Subrecipient shall procure all materials in accordance with the requirements of
24 CFR §§ 84.40 to 84.48.
3. Travel. Subrecipient shall obtain written approval from City prior to any travel outside the Boise
metropolitan area with funds provided under this Agreement.
E. Use and Reversion of Assets. The use and disposition of real property and equipment under the
Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR §§ 570.502
through 570.504, as applicable, which include, but are not limited to, the following:
1. Records. Subrecipient shall maintain real property inventory records, which clearly identify
properties purchased, improved or sold.
2. National Objectives met for five (5) years. Pursuant to 24 CFR § 570.503(b)(7)(i), real property
that is acquired or improved, in whole or in part, with funds under this Agreement in excess of
$25,000 shall be used to meet one of the CDBG National Objectives until five (5) years after
PYIO SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 4 OF 13
expiration of this Agreement. If the use of the CDBG-assisted real property fails to meet a CDBG
National Objective for this prescribed period of time, Subrecipient shall pay City an amount equal to
the current market value of the property, less any portion of the value attributed to expenditures of
non-CDBG funds for acquisition of or improvement to the property. Such payment shall constitute
program income to City. Subrecipient may retain real property acquired or improved under this
Agreement after the expiration of the five-year period.
3. Sale of equipment. In all cases in which equipment acquired in whole or in part with funds under
this Agreement is sold, the proceeds shall be program income, prorated to reflect the extent to that
funds received under this Agreement were used to acquire the equipment. Equipment purchased
with funds received under this Agreement but not needed by the Subrecipient for activities under this
Agreement shall be (a) transferred to City for the CDBG program or (b) retained after compensating
City an amount equal to the current fair market value of the equipment less the percentage of non-
CDBG funds used to acquire the equipment.
F. Records and reports.
1. Records to be maintained. In addition to specific records mentioned in this Agreement,
Subrecipient shall maintain all records that are pertinent to the activities to be funded under this
Agreement, including, but not limited to, those required by the Federal regulations specified in 24
CFR § 570.506, and:
a. Full descriptions and records of each activity undertaken;
b. Records related to activities meeting the National Objectives;
c. Records required to determine the eligibility of activities for CDBG funding;
d. Records required to document the acquisition, improvement, use or disposition of real property
acquired or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and equal opportunity components of the
CDBG Program;
f. Financial records, as required by 24 CFR §§ 84.21 through 84.28 and 570.502;
g. Other records necessary to document compliance with 24 CFR Part 570, Subpart K, except that
Subrecipient does not assume City's responsibilities under 24 CFR § 570.604 and part 52.
2. Records retention. Subrecipient shall retain all records pertinent to the expenditures incurred under
this Agreement for a period of five (5) years after the termination of all activities funded under this
Agreement, defined as the date of the submission of City's final annual performance and evaluation
report to HUD. Records for non -expendable property acquired with funds under this Agreement
shall be retained for five (5) years after final disposition of such property. If, prior to the expiration
of the five-year period, any litigation, claims, audits, negotiations or other actions begin that involve
any of the records cited, such records shall be retained until completion of the actions and
resolutions of all issues, or the expiration of the five-year period, whichever occurs later.
III. EMPLOYMENT AND LABOR CONDITION REQUIREMENTS
A. Civil Rights Act. Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as
amended, Title VII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title
I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of
1974, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive
Order 11063, the Executive Order 11246 as amended by Executive Order 11375 and 12086, and 24 CFR
570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved
with assistance provided under this contract, Subrecipient shall cause or require a covenant running with
the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined,
PYIO SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 5 OF 13
in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to
be erected thereon, providing that City and the United States are beneficiaries of and entitled to enforce
such covenants. Subrecipient, in undertaking its obligation to carry out the program assisted hereunder,
agrees to take such measures as are necessary to enforce such covenant, and will not itself so
discriminate.
B. Nondiscrimination. Subrecipient agrees to comply with the non-discrimination in employment and
contracting opportunities laws, regulations, and executive orders referenced in 24 CFR § 570.607, as
revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the
HCDA are also applicable. Subrecipient will not discriminate against any employee or applicant for
employment or services because of race, color, creed, religion, ancestry, national origin, sex, disability
or other handicap, age, marital status or status with regard to public assistance. Subrecipient will take
affirmative action to insure that all employment practices are free from such discrimination. Such
employment practices include but are not limited to the following: hiring, upgrading, demotion,
transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of
compensation, and selection for training, including apprenticeship.
C. ADA section 504. Subrecipient agrees to comply with Federal regulations pursuant to compliance with
Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 706) which prohibits discrimination against
the handicapped in any Federally -assisted program. City shall provide Subrecipient with any guidelines
necessary for compliance with that portion of the regulations in force during the term of this Agreement.
D. Affirmative Action.
1. Approved Plan. Subrecipient agrees that it shall be committed to carry out pursuant to City's
specifications an Affirmative Action Program in keeping with the principles as provided in
President's Executive Order 11246 of September 24, 1966. City shall provide Affirmative Action
guidelines to Subrecipient to assist in the formulation of such program. Subrecipient shall submit a
plan for an Affirmative Action Program for approval prior to the award of funds.
2. Women- and Minority -Owned Businesses. Subrecipient shall use its best efforts to afford small
businesses, minority business enterprises, and women's business enterprises the maximum
practicable opportunity to participate in the performance of this contract. As used in this contract, the
terms "small business" means a business that meets the criteria set forth in section 3(a) of the Small
Business Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means
a business at least fifty-one (5 1) percent owned and controlled by minority group members or
women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-
speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and American
Indians. Subrecipient may rely on written representations by businesses regarding their status as
minority and female business enterprises in lieu of an independent investigation.
E. Notifications.
1. Notice to workers. Subrecipient will send to each labor union or representative of workers with
which it has a collective bargaining agreement or other agreement or understanding, a notice, to be
provided by the agency contracting officer, advising the labor union or workers' representative of
Subrecipient's commitments hereunder, and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
2. Solicitations for employment. Subrecipient will, in all solicitations or advertisements for
employees placed by or on behalf of Subrecipient, state that it is an Equal Opportunity or
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 6 OF 13
Affirmative Action employer.
F. Prohibited Activity. Subrecipient is prohibited from using funds provided herein or personnel
employed in the administration of the program for political activities; sectarian, or religious activities;
lobbying, political patronage, and nepotism activities.
1. Political activities. Subrecipient agrees that no funds provided, nor personnel employed under this
Agreement, shall be in any way or to any extent engage in the conduct of political activities in
violation of the Hatch Act (Title V, Chapter 15, U.S.C.).
2. Religious activities. Subrecipient agrees that funds provided under this Agreement will not be
utilized for religious activities, to promote religious interests, or for the benefit of a religious
organization in accordance with the Federal regulations specified in 24 CFR § 570.2000).
G. Labor standards. Subrecipient agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis -Bacon Act as amended; the provisions of Agreement Work Hours and Safety
Standards Act; the Copeland "Anti -Kickback" Act (40 U.S.C. §§ 276a, 276c, and 327); and all other
applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts
apply to the performance of this Agreement. Subrecipient shall maintain documentation which
demonstrates compliance with the hour and wage requirements of this part. Such documentation shall
be made available to City for review upon request. Subrecipient further agrees that all Contractors
engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or
work financed in whole or in part with assistance provided under this Agreement shall comply with
Federal requirements pertaining to such Agreements and with the applicable requirements of the
regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of
wages and ratio of apprentices and trainees to journey workers; provided, that if wage rates higher than
those required under the regulations are imposed by state or local law, nothing hereunder is intended to
relieve Subrecipient of its obligation, if any, to require payment of the higher wage.
H. Section 3 of the Housing and Urban Development Act of 1968.
1. Compliance. Compliance with Section 3 of the Housing and Urban Development Act of 1968, as
amended (12 U.S.C. § 1701) ("Section 3"), the regulations set forth in 24 CFR Part 135, and all
applicable rules and orders issued thereunder prior to the execution of this Agreement, shall be a
condition of the Federal financial assistance provided under this Agreement and shall be binding
upon City, Subrecipient and any of Subrecipient's subrecipients and/or subcontractors. Failure to
fulfill these requirements shall subject City, Subrecipient and any of Subrecipient's subrecipients
and subcontractors, their successors and assigns, to those sanctions specified by the Agreement
through which Federal assistance is provided. Subrecipient certifies and agrees that no contractual or
other disability exists that would prevent compliance with these requirements.
2. Subcontract language. Subrecipient further agrees to include the following language in all
subcontracts executed under this Agreement: "The work to be performed under this Agreement is a
project assisted under a program providing direct Federal financial assistance from HUD and is
subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as
amended (12 U.S.C. § 1701). Section 3 requires that to the greatest extent feasible opportunities for
training and employment be given to low and very low income residents of the project area and
Agreements for work in connection with the project be awarded to business concerns that provide
economic opportunities for low and very low income persons residing in the metropolitan area in
which the project is located."
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 7 OF 13
3. Employment of low- and very -low-income persons. Subrecipient further agrees to ensure that
opportunities for training and employment arising in connections with a housing rehabilitation
(including reduction and abatement of lead-based paint hazards), housing construction, or other
public construction projects are given to low and very -low income person residing within the
metropolitan area in which the CDBG-funded project is located; where feasible, priority should be
given to low and very low income persons within the service area of the project or the neighborhood
in which the project is located, and to low and very low income participants in other HUD programs;
and award contracts for work undertaken in connection with a housing rehabilitation (including
reduction and abatement of lead-based paint hazards), housing construction, or other public
construction project are given to business concerns that provide economic opportunities for low and
very low income persons residing within the metropolitan area in which the CDBG-funded project is
located; where feasible, priority should be given to business concerns which provide economic
opportunities to low and very low income residents within the service area of the neighborhood in
which the project is located, and to low and very low income participants in other HUD programs.
Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would
prevent compliance with these requirements.
4. Notifications. Subrecipient agrees to send to each labor organization or representative of workers
with which it has a collective bargaining agreement or other contract or understanding, if any, a
notice advising said labor organization or worker's representative of its commitments under this
Section 3 clause and shall post copies of the notice in conspicuous places available to employees and
applicants for employment or training.
5. Subcontracts. Subrecipient will include this Section 3 clause in every subcontract and will take
appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of
regulations issued by the grantor agency. Subrecipient will not subcontract with any entity where it
has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part
135 and will not let any subcontract unless the entity has first provided it with a preliminary
statement of ability to comply with the requirements of these regulations.
I. Conflicts of Interest. Subrecipient agrees to abide by the provisions of 24 CFR §§ 84.42 and
570.611m, which include, but are not limited to, the following:
1. Code of Conduct. Subrecipient shall maintain a written code or standards of conduct that shall
govern the performance of its officers, employees or agents engaged in the award and administration
of Agreements supported by Federal funds.
2. Contract selection. No employee, officer or agent of the Subrecipient shall participate in the
selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of
interest, real or apparent, would be involved.
3. Self-interested contracts and nepotism. No persons who exercises or have exercised any functions
or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in
a decision-making process or gain inside information with regard to such activities, may obtain a
financial interest in any Agreement, or have a financial interest in any contract, subcontract, or
agreement with respect to the CDBG-assisted activity, either for themselves or those with who they
have business or immediate family ties, during their tenure or for a period of one (1) year thereafter.
For purposes of this paragraph, a "covered person" includes any person who is an employee, agent,
consultant, officer, or elected or appointed official of City, the Subrecipient, or any designated public
agency.
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 8 OF 13
J. Lobbying. The following certification is a material representation of fact upon which reliance was
placed when this transaction was made or entered into. Submission of this certification is a prerequisite
for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Subrecipient
hereby certifies that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with the
awarding of any Federal Agreement, the making of any Federal grant, the making of any Federal
loan, the entering into of any cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any Federal Agreement, grant, loan, or cooperative agreement;
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing attempting to influence an officer or employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of Congress in connection with this
Federal Agreement, grant, loan, or cooperative agreement, it will complete and submit Standard
Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions;
3. Subrecipient will require that the following language be included in the award documents for all sub -
awards at all tiers (including subcontracts, sub -grants, and contracts under grants, loans, and
cooperative agreements) and that all subrecipients shall certify and disclose accordingly: "This
certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering
into this transaction imposed by 31 U.S.C. § 1352. Any person who fails to file the required
certification shall be subject to a civil penalty of not let less that $10,000 and not more than
$100,000 for each such failure."
IV. ENVIRONMENTAL CONDITIONS
A. Air and Water. Subrecipient specifically agrees to comply with the following regulations insofar as
they apply to the performance of this Agreement:
1. Clean Air Act, 42 U.S.C. §§ 7401, et seq.
2. Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251, et seq., relating to inspection,
monitoring, entry reports, and information, as well as other requirements specified in said Act, and
all regulations and guidelines issued thereunder.
3. Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R. Part 50.
B. Flood Disaster Protection. In accordance with the requirements of the Flood Disaster Protection Act of
1973 (42 U.S.C. § 4001), Subrecipient shall assure that for activities located in an area identified by
FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is
obtained and maintained as a condition of financial assistance for acquisition or construction purposes
(including rehabilitation).
C. Lead -Based Paint. Subrecipient agrees that any construction or rehabilitation of residential structures
with assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Regulations,
24 CFR Part 35, implementing Title X of the Housing and Community Development Act of 1992.
These regulations revise the CDBG lead based paint requirements under 24 CFR § 570.608. Such
regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 9 OF 13
tenants of properties constructed prior to 1978 be properly notified that such properties may include
lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the
symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning
and the advisability and availability of blood level screening for children under seven. The notice must
also point out that if lead-based paint is found on the property, abatement measures may be undertaken.
The regulations further require that, depending on the amount of Federal funds applied to a property,
paint testing, risk assessment, treatment and/or abatement may be conducted.
D. Historic Preservation. Subrecipient agrees to comply with the Historic Preservation requirements set
forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. § 470) and the
procedures set forth in 36 CFR Part 800, Advisor Council on Historic Preservation Procedures for
Protection of Properties, insofar as they apply to the performance of this Agreement. In general, this
requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of
historic properties that are fifty years or older or that are included on a Federal, state or local historic
property list.
V. GENERAL CONDITIONS
A. Notices. All notices required to be given by either of the parties hereto shall be in writing and be
deemed communicated when personally served, or mailed in the United States mail, addressed as
follows:
City of Meridian NHS Lending, Inc.
Attn: Lori Den Hortog Attn: Joe Swenson
CDBG Program Administrator CEO, Neighborhood Housing Services, Inc.
33 E. Broadway Avenue 1401 Shoreline Drive
Meridian, Idaho 83642 Boise, Idaho 83707
Either party may change its authorized representative and/or address for the purpose of this paragraph by
giving written notice of such change to the other party in the manner herein provided.
B. Compliance with laws. Subrecipient agrees to comply with HUD regulations concerning CDBG funds,
including, but not limited to, 24 CFR Part 570 and subpart K of such regulations. Subrecipient also
agrees to comply with all other applicable Federal, state and local laws, regulations, and policies
governing the funds provided under this Agreement, except that: (1) Subrecipient does not assume the
recipient's environmental responsibilities described in 24 CFR 570.604, and (2) Subrecipient does not
assume the recipient's responsibility for initiating the review process under the provisions.of 24 CFR
Part 52.
C. Copyright. Contracts of agreements for the performance of experimental developmental or research
work shall provide for the rights of the Federal Government and the recipient in any resulting invention
in accordance with 37 CFR Part 401, "Rights to Inventions Made by Nonprofit Organizations and Small
Business Firms Under Government Grants Contracts and Cooperative Agreements."
D. Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in
any manner, as creating or establishing the relationship of employer/employee between the parties.
Subrecipient shall at all times remain an independent Contractor with respect to the services to be
performed under this Agreement. City shall provide no benefits or insurance coverage whatsoever to
Subrecipient and/or to its agents.
E. Indemnity. Subrecipient, and each and all of its employees, agents, contractors, officials, officers,
servants, guests, and/or invitees, and all participants in Subrecipient's programming, shall hold
harmless, defend and indemnify City from and for all such losses, claims, actions, and/or judgments for
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 10 OF 13
damages or injury to persons or property and/or losses and expenses caused or incurred by Subrecipient
and/or its employees, agents, contractors, officials, officers, servants, guests, and/or invitees, and
participants in its programming, and other costs, including litigation costs and attorneys' fees, arising
out of, resulting from, or in connection with the performance of this Agreement by Subrecipient and/or
Subrecipient's employees, agents, contractors, subcontractors, officials, officers, servants, guests,
invitees, participants, and/or volunteers and resulting in and/or attributable to personal injury, death,
and/or damage and/or destruction to tangible or intangible property.
F. Workers' Compensation. Subrecipient shall provide Workers' Compensation Insurance coverage for
all employees involved in the performance of this Agreement.
G. Insurance and bonding. Subrecipient shall carry sufficient insurance coverage to protect Agreement
assets from loss due to theft, fraud and/or undue physical damage. Further, Subrecipient shall comply
with the bonding and insurance requirements of 24 CFR §§ 84.31 and 84.48.
H. Grantor Recognition. Subrecipient shall publically recognize the role of City in providing services
under this Agreement. In addition, Subrecipient will include a reference to the support provided herein
in all publications made possible with funds made available under this Agreement.
I. Amendments. The parties hereto may amend this Agreement at any time provided that such
amendments make specific reference to this Agreement, and are executed in writing, signed by a duly
authorized representative of each party, and approved by City's governing body. Such amendments
shall not invalidate this Agreement, nor relieve or release either party from its obligations under this
Agreement. City may, in its discretion, amend this Agreement to conform with Federal, state or local
governmental guidelines, policies and available funding amounts, or for other reasons. If such
amendments result in a change in the funding, the scope of services, or schedule of the activities to be
undertaken as part of this Agreement, such modifications will be incorporated only by written
amendment signed by both parties.
J. Termination.
1. Notice of termination. Either party may terminate this Agreement by, at least 30 days before the
effective date of such termination, giving written notice to the other party of such termination and
specifying the effective date thereof.
2. Partial termination. Partial terminations of the Scope of Service as set forth herein may only be
undertaken with the prior approval of City.
3. Work completed. In the event of any termination for convenience, all finished or unfinished
documents, data, studies, surveys, maps, models, photographs, reports of other materials prepared by
Subrecipient under this Agreement shall, at the option of City, become the property of City, and
Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work
completed on such documents or materials prior to the termination.
4. Termination for convenience. In accordance with 24 CFR § 85.44, suspension or termination of the
Agreement, in whole or in part, may occur for convenience.
5. Termination for material noncompliance. In accordance with 24 CFR § 85.43, suspension or
termination of the Agreement, in whole or in part, may occur if Subrecipient materially fails to
comply with any term of this Agreement, which shall include, but shall not be limited to, the
following:
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 11 OF 13
a. Failure to comply with any of the rules, regulations or provisions referred to herein, or such
statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become
applicable at any time;
b. Failure by Subrecipient to fulfill in a timely and proper manner its obligations under this
Agreement;
c. Ineffective or improper use of funds provided under this Agreement; or
d. Submission by the Subrecipient to City reports that are incorrect or incomplete in any material
respect.
6. Penalty for material noncompliance. In addition to suspension or termination of this Agreement
and/or any other remedies as provided by law, upon a finding of material noncompliance, City may
declare Subrecipient ineligible for any further participation in City CDBG programming. In the
event there is probable cause to believe Subrecipient is in noncompliance with any applicable rules
or regulations, City may withhold up to fifteen (15) percent of said Agreement funds until such time
as Subrecipient is found to be in compliance by City, or is otherwise adjudicated to be in
compliance.
K. Assignment. Subrecipient shall not assign or transfer any interest in this agreement without prior
written consent of City; provided, however, that claims for money due or to become due to Subrecipient
from City under this Agreement may be assigned to a bank, trust company, or other financial institution
without such approval. Notice of any assignment or transfer shall be furnished promptly to City.
L. Subcontractors.
1. City must approve. Subrecipient shall not enter into any subcontracts with any agency or
individual in the performance of this Agreement without the prior written consent of City. All
subcontracts entered into in the performance of this Agreement shall be awarded pursuant to any
applicable provisions of the City Purchasing Policy and/or local, state, or federal laws.
2. Monitoring. Subrecipient shall monitor all subcontracted services on a regular basis to assure
contract compliance. Results of monitoring efforts shall be summarized in written reports and
supported with documented evidence of follow-up actions taken to correct areas of noncompliance.
Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all
information and reports required hereunder and will permit access to its books, records and accounts
by City, HUD or its agent, or other authorized Federal officials for purposes of investigation to
ascertain compliance with the rules, regulations and provisions stated herein.
3. Subcontract content. Subrecipient shall cause all provisions of this Agreement in their entirety to
be included in and made a part of any subcontract executed in the performance of this Agreement.
Specifically, without limitation, Subrecipient shall include the provisions of this Agreement
regarding Civil Rights and Affirmative Action in every subcontract or purchase order, specifically or
by reference, to ensure that such provisions will be binding upon all subcontractors.
4. Documentation. Executed copies of all subcontracts shall be forwarded to City along with
documentation concerning the selection process.
M. Relocation, real property acquisition, and one-for-one housing replacement. Subrecipient agrees
specifically, without limitation, to comply with:
1. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended
(URA), and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606(b);
PY10 SUBRECIPIENTAGREEMENT -NHS LENDING, INC. PAGE 12 OF 13
2. The requirements of 24 CFR 570.606(c) governing the Residential Anti -displacement and
Relocation Assistance Plan under section 104(d) of the HCD Act; and
3. The requirements in 24 CFR 570.606(d) governing optional relocation policies.
Subrecipient shall provide relocation assistance to displaced persons as defined by 24 CFR
570.606(b)(2) that are displaced as a direct result of acquisition, rehabilitation, demolition or conversion
for a CDBG-assisted project.
N. No contractual impediments. Subrecipient certifies and agrees that no contractual or other disability
exists which would prevent compliance with these requirements.
O. Severability. If any provision of this Agreement is held invalid, the reminder of the Agreement shall
not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and
effect.
P. Entire Agreement. This Agreement contains the entire agreement of the parties and supersedes any
and all other agreements or understandings, oral or written, whether previous to the execution hereof or
contemporaneous herewith.
Q. Non -waiver. Failure of either party to promptly enforce the strict performance of any term of this
Agreement shall not constitute a waiver or relinquishment of any party's right to thereafter enforce such
term, and any right or remedy hereunder may be asserted at any time after the governing body of either
party becomes entitled to the benefit thereof, notwithstanding delay in enforcement.
R. Approval required. This Agreement shall not become effective or binding until approved by the
respective governing bodies of both City and Subrecipient.
IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by their duly
authorized officers to be effective as of the day and year first above written.
SUBRECIPIENT:
Lending, Inc.
y. Joe Swenson,
CEO Neighborhood Housing Services
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CITY:
City of Meridian
'�4 6
By: Tamle Weerd, Mayor
STATE OF IDAHO
) ss:
County of / ` )
I HEREBY CERTIFY that on this z Aday of
before the undersigned, a Notary Public in the State of Idaho,lkrsonally
appeared Joe Swenson, proven to me to be the person who executed the said
instrument, and acknowledged to me that such person executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, „ nd year in this certificate first above written.
N TuJAc for Idaho ,
Residing at , Idaho
My Commission Expires:
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Attest:'
PY10 SUBRECIPIENT AGREEMENT -NHS LENDING, INC. PAGE 13 OF 13
Meridian City Council Meeting
DATE: February 8, 2011 ITEM NUMBER: 4
PROJECT NUMBER:
ITEM TITLE: Sub -Recipient Agreement
Ada County Housing Authority Community Development Block Grant (CDBG) PY 2010
MEETING NOTES
P—R Vvv eco,
CLERKS OFFICE FINAL ACTION
DATE:
E-MAILED TO
STAFF
SENT TO
AGENCY
SENT TO
APPLICANT
NOTES
INITIALS
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SUBRECIPIENT AGREEMENT BETWEEN CITY OF MERIDIAN
AND ADA COUNTY HOUSING AUTHORITY
FOR PY 2010 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
This Agreement is entered into this 0 day of , 20 /( by and between the City of
Meridian, a municipal corporation organized under the laws of the ate of Idaho ("City") and the Ada County
Housing Authority, a public body corporate and politic established under the laws of the state of Idaho
("Subrecipient").
WHEREAS, City is an entitlement community, and as such has applied for and received funds from the
United States Government under Title I of the Housing and Community Development Act of 1974, Public Law
93-383, i.e. Community Development Block Grant ("CDBG") funds; and
WHEREAS, Subrecipient assists families in obtaining decent, safe, and affordable housing solutions,
which activity complements the objectives of the CDBG program; and
WHEREAS, City and Subrecipient wish to enter into a cooperative agreement for the investment of
CDBG funds from Program Year 2010 (PY10);
NOW, THEREFORE, in consideration of the mutual covenants of the parties, the Parties agree as
follows:
I. SCOPE OF SERVICE
A. Activities. Subrecipient shall use City's PY10 CDBG funds in the amount of forty thousand dollars
($40,000) to provide direct homeownership assistance to help low/moderate income ("LMI") persons
purchase homes. Specifically, Subrecipient shall undertake the following activities:
1. Subsidize mortgage principal amounts;
2. Pay any or all of the reasonable closing costs; and
3. Pay up to 50% of the down payment required by the mortgagee.
B. National Objective. Subrecipient certifies that the activities carried out City's PY10 CDBG funds
provided by City under this Agreement will meet one or more of the CDBG program's National
Objectives as defined in 24 CFR § 570.208. Specifically, Subrecipient's activities under this agreement
shall benefit LMI persons (24 CFR § 570.208(a)(2)(C)).
C. Levels of accomplishment.
1. Goals. Subrecipient shall undertake activities pursuant to this Agreement to serve four (4) Units of
Service. For the purposes of this Agreement, "Units of Service" shall be defined as households
assisted in the purchase of a home.
2. Performance measures. This project will provide direct homeownership assistance to LMI
persons. In addition to the normal administrative services required as part of this Agreement,
Subrecipient agrees to document and report on each and all of the following outcomes:
a. Number of households assisted and number of persons in each household;
b. Income level and ethnicity of persons provided housing;
101� c. Number of persons assisted who are first-time homebuyers and the number thereof receiving
housing counseling;
d. Number of persons receiving down payment assistance and/or closing costs; and
e. Amount of funding received by each household.
PY10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 1 OF 13
D. Staffing not funded. Subrecipient agrees that no CDBG funds will be utilized for staffing.
E. Performance monitoring. City will monitor the performance of Subrecipient against goals and
performance measures as set forth herein. Performance monitoring shall include City's review of
Subrecipients' submitted documents for accuracy and completion, as well as an on-site visit from City's
CDBG Administrator to review the completeness and accuracy of records maintained. Substandard
performance as determined by City shall constitute noncompliance with this Agreement. If action to
correct such substandard performance is not taken by Subrecipient within fourteen days(14) after being
notified by City, Agreement suspension or termination procedures will be initiated.
F. Time of performance. Services of Subrecipient shall start on or before December 28, 2010 and end on
September 30, 2011. The term of this Agreement and the provisions herein shall be extended to cover
any additional time period during which Subrecipient remains in control of CDBG funds or other CDBG
assets, including program income.
G. Progress Reports. Subrecipient shall submit a regular Progress Report, in the form and content as
required by City, with every draw request. If Progress Reports are delinquent, draw requests will not be
processed until the delinquency is cured. Progress Reports must contain information on outcome -based
measurements as outlined in this Agreement.
II. ADMINISTRATIVE REQUIREMENTS
A. Uniform administrative requirements. Subrecipient shall comply with applicable uniform
administrative requirements, as described in 24 CFR § 570.506.
B. Financial Management.
1. Budget. Subrecipient agrees that it shall use City's PY10 CDBG funds in the amount of forty
thousand dollars ($40,000) to provide direct homeownership assistance to LMI persons. City may
require a detailed budget breakdown, and Subrecipient shall provide such information in a timely
fashion, and in the form and content prescribed by City.
2. Supplementation of other funds. Subrecipient agrees to utilize funds available under this
Agreement to supplement, rather than supplant, funds otherwise available.
3. Accounting Standards. Subrecipient agrees to comply with 24 CFR §§ 84.21 through 84.28, and
further agrees to: adhere to the accounting principles and procedures required therein, utilize
adequate internal controls, and maintain necessary source documentation for all costs incurred.
4. Cost Principles. Subrecipient shall administer its program in conformance with OMB Circular A-
122, "Cost Principles for Non -Profit Organizations." These principles shall be applied for all costs
incurred, whether charged on a direct or indirect basis.
5. Certification of financial management system. Payments shall be contingent upon HUD's
certification of Subrecipient's financial management system in accordance with 24 CFR § 84.21.
6. Subrecipient Orientation Workshop. Subrecipient agrees to meet with City's CDBG Program
Administrator prior to submitting the first draw request to City. City will not process draw requests
unless and until Subrecipient attends this meeting.
PY10 SUBRECIPIENT AGREEMENT ADA COUNTY HOUSING AUTHORITY PAGE 2 OF 13
7. Client Data. Subrecipient shall maintain client data demonstrating client eligibility for services
provided. Such data shall include, but not be limited to: client name, address, income level or other
basis for determining eligibility, and description of service provided. Such information shall be
made available for review upon City's request.
8. Disclosures. Subrecipient understands that client information collected under this Agreement is
private and the use or disclosure of such information, when not directly connected with the
administration of City or Subrecipient's responsibilities under this Agreement, is prohibited by the
Financial Privacy Act unless written consent is obtained from such person receiving service and, in
the case of a minor, that of a responsible parent/guardian.
9. Property Records. Subrecipient shall maintain real property inventory records that clearly identify
properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria.
10. Closeout. Subrecipient's obligation to City shall not end until all closeout requirements are
completed. Activities during this closeout period shall include, but shall not be limited to: making
final payments, disposing of program assets (including the return of all unused materials, equipment,
unspent cash advances, program income balances, and accounts receivable to City), and determining
the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall
remain in effect during any period that Subrecipient has control over CDBG funds, including
program income.
11. Audits and inspections. All Subrecipient records with respect to any matters covered by this
Agreement shall be made available to City, HUD or its agent, or other authorized federal officials, at
any time during normal business hours, as often as deemed necessary, to audit, examine, and make
excerpts or transcripts of all relevant data for purposes of investigation to ascertain compliance with
the rules, regulations and provisions stated herein. Any deficiencies noted in audit reports must be
fully repaired by Subrecipient within thirty (30) days after receipt of such report by Subrecipient.
Failure of Subrecipient to comply with the above audit requirements will constitute a violation of
this Agreement and may result in the withholding of future payments. Subrecipient hereby agrees to
have an annual agency audit conducted in accordance with current City policy concerning audits and
as applicable, OMB Circular A-133.
C. Payment Procedures.
1. Program Income. The activities governed by this agreement are not anticipated to generate
program income as Subrecipient shall not charge its members for the service. Any change to the
activities described herein that will generate program income shall require an amendment to this
agreement.
2. Indirect Costs. Indirect costs are not eligible for CDBG funding.
3. Payment Procedures. City will pay to Subrecipient funds available under this Agreement based
upon information submitted by Subrecipient and consistent with any approved budget and City
policy concerning payments. With the exception of certain advances, payments will be made for
eligible expenses actually incurred by Subrecipient, and not to exceed actual cash requirements.
Payments will be adjusted by City in accordance with advance fund and program income balances
available in Subrecipient's accounts. In addition, City reserves the right to liquidate funds available
under this Agreement for costs incurred by City on behalf of Subrecipient.
4. Documentation required prior to transactions. As early as practicable, and not less than two (2)
PYl 0 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 3 OF 13
weeks prior to the completion of each transaction, Subrecipient shall provide the address of the
housing unit under consideration to City for floodplain and related environmental review. Failure to
provide the address of the housing unit under consideration in advance of the anticipated close date
may result in added expenses for the beneficiary or Subrecipient, or refusal of reimbursement by
City.
5. Draw requests. It is expressly agreed and understood that the total amount to be paid by City under
this Agreement shall not exceed $40,000. Drawdowns for the payment of eligible expenses shall be
made against the activity specified, in accordance with performance and as expenses are incurred by
Subrecipient. Draw requests shall only be accepted on official City and/or HUD forms and must be
completed in full to be processed. All draw requests are to be submitted monthly, no later than
twenty-one (2 1) days after the end of the month for which reimbursement is being submitted. Draw
requests shall include the following: draw request form; progress report; beneficiary income
eligibility documentation; transaction detail, HUD -1, and related summary information; and proof of
payment by Subrecipient. Final draw under this Agreement will be submitted by Subrecipient no
later than September 20, 2011 unless otherwise agreed in writing.
6. Funds transfer. Pursuant to 24 CFR § 570.503(b)(7), upon expiration of this Agreement,
Subrecipient shall transfer to City any CDBG funds on hand at the time of expiration and any
accounts receivable attributable to the use of CDBG funds.
7. DUNS number. Subrecipient shall comply with requirements established by the Office of
Management and Budget ("OMB") concerning the Dun and Bradstreet Data Universal Numbering
System ("DUNS"), the Central Contractor Registration database, and the Federal Funding
Accountability and Transparency Act, including Appendix A to Part 25 of the Financial Assistance
Use of Universal Identifier and Central Contractor Registration, 75 Fed. Reg. 55671 (Sept. 14, 2010)
(to be codified at 2 CFR part 25) and Appendix A to Part 170 of the Requirements for Federal
Funding Accountability and Transparency Act Implementation, 75 Fed. Reg. 55663 (Sept. 14, 2010)
(to be codified at 2 CFR part 170).
D. Procurement.
1. Compliance with policies. Subrecipient shall comply with current Federal and City policies
concerning the purchase of equipment and shall maintain inventory records of all non -expendable
personal property as defined by such policy as may be procured with funds provided hereunder.
2. OMB Standards. Subrecipient shall procure all materials in accordance with the requirements of
24 CFR §§ 84.40 to 84.48.
3. Travel. Subrecipient shall obtain written approval from City prior to any travel outside the Boise
metropolitan area with funds provided under this Agreement.
E. Use and Reversion of Assets. The use and disposition of real property and equipment under the
Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR §§ 570.502
through 570.504, as applicable, which include, but are not limited to, the following:
1. Records. Subrecipient shall maintain real property inventory records, which clearly identify
properties purchased, improved or sold.
2. National Objectives met for five (5) years. Pursuant to 24 CFR § 570.503(b)(7)(i), real property
that is acquired or improved, in whole or in part, with funds under this Agreement in excess of
PY10 SUBRECIPIENT AGREEMENT ADA COUNTY HOUSING AUTHORITY PAGE 4 OF 13
$25,000 shall be used to meet one of the CDBG National Objectives until five (5) years after
expiration of this Agreement. If the use of the CDBG-assisted real property fails to meet a CDBG
National Objective for this prescribed period of time, Subrecipient shall pay City an amount equal to
the current market value of the property, less any portion of the value attributed to expenditures of
non-CDBG funds for acquisition of or improvement to the property. Such payment shall constitute
program income to City. Subrecipient may retain real property acquired or improved under this
Agreement after the expiration of the five-year period.
3. Sale of equipment. In all cases in which equipment acquired in whole or in part with funds under
this Agreement is sold, the proceeds shall be program income, prorated to reflect the extent to that
funds received under this Agreement were used to acquire the equipment. Equipment purchased
with funds received under this Agreement but not needed by the Subrecipient for activities under this
Agreement shall be (a) transferred to City for the CDBG program or (b) retained after compensating
City an amount equal to the current fair market value of the equipment less the percentage of non-
CDBG funds used to acquire the equipment.
F. Records and reports.
1. Records to be maintained. In addition to specific records mentioned in this Agreement,
Subrecipient shall maintain all records that are pertinent to the activities to be funded under this
Agreement, including, but not limited to, those required by the Federal regulations specified in 24
CFR § 570.506, and:
a. Full descriptions and records of each activity undertaken;
b. Records related to activities meeting the National Objectives;
c. Records required to determine the eligibility of activities for CDBG funding;
d. Records required to document the acquisition, improvement, use or disposition of real property
acquired or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and equal opportunity components of the
CDBG Program;
f. Financial records, as required by 24 CFR §§ 84.21 through 84.28 and 570.502;
g. Other records necessary to document compliance with 24 CFR Part 570, Subpart K, except that
Subrecipient does not assume City's responsibilities under 24 CFR § 570.604 and part 52.
2. Records retention. Subrecipient shall retain all records pertinent to the expenditures incurred under
this Agreement for a period of five (5) years after the termination of all activities funded under this
Agreement, defined as the date of the submission of City's final annual performance and evaluation
report to HUD. Records for non -expendable property acquired with funds under this Agreement
shall be retained for five (5) years after final disposition of such property. If, prior to the expiration
of the five-year period, any litigation, claims, audits, negotiations or other actions begin that involve
any of the records cited, such records shall be retained until completion of the actions and
resolutions of all issues, or the expiration of the five-year period, whichever occurs later.
III. EMPLOYMENT AND LABOR CONDITION REQUIREMENTS
A. Civil Rights Act. Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as
amended, Title VII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title
I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of
1974, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive
Order 11063, the Executive Order 11246 as amended by Executive Order 11375 and 12086, and 24 CFR
570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved
with assistance provided under this contract, Subrecipient shall cause or require a covenant running with
PY 10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 5 OF 13
the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined,
in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to
be erected thereon, providing that City and the United States are beneficiaries of and entitled to enforce
such covenants. Subrecipient, in undertaking its obligation to carry out the program assisted hereunder,
agrees to take such measures as are necessary to enforce such covenant, and will not itself so
discriminate.
B. Nondiscrimination. Subrecipient agrees to comply with the non-discrimination in employment and
contracting opportunities laws, regulations, and executive orders referenced in 24 CFR § 570.607, as
revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the
HCDA are also applicable. Subrecipient will not discriminate against any employee or applicant for
employment or services because of race, color, creed, religion, ancestry, national origin, sex, disability
or other handicap, age, marital status or status with regard to public assistance. Subrecipient will take
affirmative action to insure that all employment practices are free from such discrimination. Such
employment practices include but are not limited to the following: hiring, upgrading, demotion,
transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of
compensation, and selection for training, including apprenticeship.
C. ADA section 504. Subrecipient agrees to comply with Federal regulations pursuant to compliance with
Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 706) which prohibits discrimination against
the handicapped in any Federally -assisted program. City shall provide Subrecipient with any guidelines
necessary for compliance with that portion of the regulations in force during the term of this Agreement.
D. Affirmative Action.
1. Approved Plan. Subrecipient agrees that it shall be committed to carry out pursuant to City's
specifications an Affirmative Action Program in keeping with the principles as provided in
President's Executive Order 11246 of September 24, 1966. City shall provide Affirmative Action
guidelines to Subrecipient to assist in the formulation of such program. Subrecipient shall submit a
plan for an Affirmative Action Program for approval prior to the award of funds.
2. Women- and Minority -Owned Businesses. Subrecipient shall use its best efforts to afford small
businesses, minority business enterprises, and women's business enterprises the maximum
practicable opportunity to participate in the performance of this contract. As used in this contract, the
terms "small business" means a business that meets the criteria set forth in section 3(a) of the Small
Business Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means
a business at least fifty-one (5 1) percent owned and controlled by minority group members or
women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-
speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and American
Indians. Subrecipient may rely on written representations by businesses regarding their status as
minority and female business enterprises in lieu of an independent investigation.
E. Notifications.
1. Notice to workers. Subrecipient will send to each labor union or representative of workers with
which it has a collective bargaining agreement or other agreement or understanding, a notice, to be
provided by the agency contracting officer, advising the labor union or workers' representative of
Subrecipient's commitments hereunder, and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
2. Solicitations for employment. Subrecipient will, in all solicitations or advertisements for
PY 1 o SUBRECIPIENT AGREEMENT —ADA COUNTY HOUSING AUTHORITY PAGE 6 OF 13
employees placed by or on behalf of Subrecipient, state that it is an Equal Opportunity or
Affirmative Action employer.
F. Prohibited Activity. Subrecipient is prohibited from using funds provided herein or personnel
employed in the administration of the program for political activities; sectarian, or religious activities;
lobbying, political patronage, and nepotism activities.
1. Political activities. Subrecipient agrees that no funds provided, nor personnel employed under this
Agreement, shall be in any way or to any extent engage in the conduct of political activities in
violation of the Hatch Act (Title V, Chapter 15, U.S.C.).
2. Religious activities. Subrecipient agrees that funds provided under this Agreement will not be
utilized for religious activities, to promote religious interests, or for the benefit of a religious
organization in accordance with the Federal regulations specified in 24 CFR § 570.2000).
G. Labor standards. Subrecipient agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis -Bacon Act as amended; the provisions of Agreement Work Hours and Safety
Standards Act; the Copeland "Anti -Kickback" Act (40 U.S.C. §§ 276a, 276c, and 327); and all other
applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts
apply to the performance of this Agreement. Subrecipient shall maintain documentation which
demonstrates compliance with the hour and wage requirements of this part. Such documentation shall
be made available to City for review upon request. Subrecipient further agrees that all Contractors
engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or
work financed in whole or in part with assistance provided under this Agreement shall comply with
Federal requirements pertaining to such Agreements and with the applicable requirements of the
regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of
wages and ratio of apprentices and trainees to journey workers; provided, that if wage rates higher than
those required under the regulations are imposed by state or local law, nothing hereunder is intended to
relieve Subrecipient of its obligation, if any, to require payment of the higher wage.
H. Section 3 of the Housing and Urban Development Act of 1968.
1. Compliance. Compliance with Section 3 of the Housing and Urban Development Act of 1968, as
amended (12 U.S.C. § 1701) ("Section 3"), the regulations set forth in 24 CFR Part 135, and all
applicable rules and orders issued thereunder prior to the execution of this Agreement, shall be a
condition of the Federal financial assistance provided under this Agreement and shall be binding
upon City, Subrecipient and any of Subrecipient's subrecipients and/or subcontractors. Failure to
fulfill these requirements shall subject City, Subrecipient and any of Subrecipient's subrecipients
and subcontractors, their successors and assigns, to those sanctions specified by the Agreement
through which Federal assistance is provided. Subrecipient certifies and agrees that no contractual or
other disability exists that would prevent compliance with these requirements.
2. Subcontract language. Subrecipient further agrees to include the following language in all
subcontracts executed under this Agreement: "The work to be performed under this Agreement is a
project assisted under a program providing direct Federal financial assistance from HUD and is
subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as
amended (12 U.S.C. § 1701). Section 3 requires that to the greatest extent feasible opportunities for
training and employment be given to low and very low income residents of the project area and
Agreements for work in connection with the project be awarded to business concerns that provide
economic opportunities for low and very low income persons residing in the metropolitan area in
which the project is located."
PY 10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 7 OF 13
3. Employment of low- and very -low-income persons. Subrecipient further agrees to ensure that
opportunities for training and employment arising in connections with a housing rehabilitation
(including reduction and abatement of lead-based paint hazards), housing construction, or other
public construction projects are given to low and very -low income person residing within the
metropolitan area in which the CDBG-funded project is located; where feasible, priority should be
given to low and very low income persons within the service area of the project or the neighborhood
in which the project is located, and to low and very low income participants in other HUD programs;
and award contracts for work undertaken in connection with a housing rehabilitation (including
reduction and abatement of lead-based paint hazards), housing construction, or other public
construction project are given to business concerns that provide economic opportunities for low and
very low income persons residing within the metropolitan area in which the CDBG-funded project is
located; where feasible, priority should be given to business concerns which provide economic
opportunities to low and very low income residents within the service area of the neighborhood in
which the project is located, and to low and very low income participants in other HUD programs.
Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would
prevent compliance with these requirements.
4. Notifications. Subrecipient agrees to send to each labor organization or representative of workers
with which it has a collective bargaining agreement or other contract or understanding, if any, a
notice advising said labor organization or worker's representative of its commitments under this
Section 3 clause and shall post copies of the notice in conspicuous places available to employees and
applicants for employment or training.
5. Subcontracts. Subrecipient will include this Section 3 clause in every subcontract and will take
appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of
regulations issued by the grantor agency. Subrecipient will not subcontract with any entity where it
has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part
135 and will not let any subcontract unless the entity has first provided it with a preliminary
statement of ability to comply with the requirements of these regulations.
I. Conflicts of Interest. Subrecipient agrees to abide by the provisions of 24 CFR §§ 84.42 and
570.611m, which include, but are not limited to, the following:
1. Code of Conduct. Subrecipient shall maintain a written code or standards of conduct that shall
govern the performance of its officers, employees or agents engaged in the award and administration
of Agreements supported by Federal funds.
2. Contract selection. No employee, officer or agent of the Subrecipient shall participate in the
selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of
interest, real or apparent, would be involved.
3. Self-interested contracts and nepotism. No persons who exercises or have exercised any functions
or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in
a decision-making process or gain inside information with regard to such activities, may obtain a
financial interest in any Agreement, or have a financial interest in any contract, subcontract, or
agreement with respect to the CDBG-assisted activity, either for themselves or those with who they
have business or immediate family ties, during their tenure or for a period of one (1) year thereafter.
For purposes of this paragraph, a "covered person" includes any person who is an employee, agent,
consultant, officer, or elected or appointed official of City, the Subrecipient, or any designated public
agency.
PY10 SUBRECIPIENT AGREEMENT ADA COUNTY HOUSING AUTHORITY PAGE 8 OF 13
J. Lobbying. The following certification is a material representation of fact upon which reliance was
placed when this transaction was made or entered into. Submission of this certification is a prerequisite
for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Subrecipient
hereby certifies that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with the
awarding of any Federal Agreement, the making of any Federal grant, the making of any Federal
loan, the entering into of any cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any Federal Agreement, grant, loan, or cooperative agreement;
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing attempting to influence an officer or employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of Congress in connection with this
Federal Agreement, grant, loan, or cooperative agreement, it will complete and submit Standard
Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions;
3. Subrecipient will require that the following language be included in the award documents for all sub -
awards at all tiers (including subcontracts, sub -grants, and contracts under grants, loans, and
cooperative agreements) and that all subrecipients shall certify and disclose accordingly: "This
certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering
into this transaction imposed by 31 U.S.C. § 1352. Any person who fails to file the required
certification shall be subject to a civil penalty of not let less that $10,000 and not more than
$100,000 for each such failure."
IV. ENVIRONMENTAL CONDITIONS
A. Air and Water. Subrecipient specifically agrees to comply with the following regulations insofar as
they apply to the performance of this Agreement:
1. Clean Air Act, 42 U.S.C. §§ 7401, et seq.
2. Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251, et seq., relating to inspection,
monitoring, entry reports, and information, as well as other requirements specified in said Act, and
all regulations and guidelines issued thereunder.
3. Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R. Part 50.
B. Flood Disaster Protection. In accordance with the requirements of the Flood Disaster Protection Act of
1973 (42 U.S.C. § 4001), Subrecipient shall assure that for activities located in an area identified by
FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is
obtained and maintained as a condition of financial assistance for acquisition or construction purposes
(including rehabilitation).
C. Lead -Based Paint. Subrecipient agrees that any construction or rehabilitation of residential structures
with assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Regulations,
24 CFR Part 35, implementing Title X of the Housing and Community Development Act of 1992.
These regulations revise the CDBG lead based paint requirements under 24 CFR § 570.608. Such
PY10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 9 OF 13
regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and
tenants of properties constructed prior to 1978 be properly notified that such properties may include
lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the
symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning
and the advisability and availability of blood level screening for children under seven. The notice must
also point out that if lead-based paint is found on the property, abatement measures may be undertaken.
The regulations further require that, depending on the amount of Federal funds applied to a property,
paint testing, risk assessment, treatment and/or abatement may be conducted.
D. Historic Preservation. Subrecipient agrees to comply with the Historic Preservation requirements set
forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. § 470) and the
procedures set forth in 36 CFR Part 800, Advisor Council on Historic Preservation Procedures for
Protection of Properties, insofar as they apply to the performance of this Agreement. In general, this
requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of
historic properties that are fifty years or older or that are included on a Federal, state or local historic
property list.
V. GENERAL CONDITIONS
A. Notices. All notices required to be given by either of the parties hereto shall be in writing and be
deemed communicated when personally served, or mailed in the United States mail, addressed as
follows:
City of Meridian Ada County Housing Authority
Attn: Lori Den Hortog Attn: Jillian Patterson
CDBG Program Administrator CDBG Grant Administrator
33 E. Broadway Avenue 1276 W. River Street
Meridian, Idaho 83642 Boise, Idaho 83702
Either party may change its authorized representative and/or address for the purpose of this paragraph by
giving written notice of such change to the other party in the manner herein provided.
B. Compliance with laws. Subrecipient agrees to comply with HUD regulations concerning CDBG funds,
including, but not limited to, 24 CFR Part 570 and subpart K of such regulations. Subrecipient also
agrees to comply with all other applicable Federal, state and local laws, regulations, and policies
governing the funds provided under this Agreement, except that: (1) Subrecipient does not assume the
recipient's environmental responsibilities described in 24 CFR 570.604, and (2) Subrecipient does not
assume the recipient's responsibility for initiating the review process under the provisions of 24 CFR
Part 52.
C. Copyright. Contracts of agreements for the performance of experimental developmental or research
work shall provide for the rights of the Federal Government and the recipient in any resulting invention
in accordance with 37 CFR Part 401, "Rights to Inventions Made by Nonprofit Organizations and Small
Business Firms Under Government Grants Contracts and Cooperative Agreements."
D. Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in
any manner, as creating or establishing the relationship of employer/employee between the parties.
Subrecipient shall at all times remain an independent Contractor with respect to the services to be
performed under this Agreement. City shall provide no benefits or insurance coverage whatsoever to
Subrecipient and/or to its agents.
E. Indemnity. Subrecipient, and each and all of its employees, agents, contractors, officials, officers,
servants, guests, and/or invitees, and all participants in Subrecipient's programming, shall hold
PY 10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 10 OF 13
harmless, defend and indemnify City from and for all such losses, claims, actions, and/or judgments for
damages or injury to persons or property and/or losses and expenses caused or incurred by Subrecipient
and/or its employees, agents, contractors, officials, officers, servants, guests, and/or invitees, and
participants in its programming, and other costs, including litigation costs and attorneys' fees, arising
out of, resulting from, or in connection with the performance of this Agreement by Subrecipient and/or
Subrecipient's employees, agents, contractors, subcontractors, officials, officers, servants, guests,
invitees, participants, and/or volunteers and resulting in and/or attributable to personal injury, death,
and/or damage and/or destruction to tangible or intangible property.
F. Workers' Compensation. Subrecipient shall provide Workers' Compensation Insurance coverage for
all employees involved in the performance of this Agreement.
G. Insurance and bonding. Subrecipient shall carry sufficient insurance coverage to protect Agreement
assets from loss due to theft, fraud and/or undue physical damage. Further, Subrecipient shall comply
with the bonding and insurance requirements of 24 CFR §§ 84.31 and 84.48.
H. Grantor Recognition. Subrecipient shall publically recognize the role of City in providing services
under this Agreement. In addition, Subrecipient will include a reference to the support provided herein
in all publications made possible with funds made available under this Agreement.
I. Amendments. The parties hereto may amend this Agreement at any time provided that such
amendments make specific reference to this Agreement, and are executed in writing, signed by a duly
authorized representative of each party, and approved by City's governing body. Such amendments
shall not invalidate this Agreement, nor relieve or release either party from its obligations under this
Agreement. City may, in its discretion, amend this Agreement to conform with Federal, state or local
governmental guidelines, policies and available funding amounts, or for other reasons. If such
amendments result in a change in the funding, the scope of services, or schedule of the activities to be
undertaken as part of this Agreement, such modifications will be incorporated only by written
amendment signed by both parties.
J. Termination.
1. Notice of termination. Either party may terminate this Agreement by, at least 30 days before the
effective date of such termination, giving written notice to the other party of such termination and
specifying the effective date thereof.
2. Partial termination. Partial terminations of the Scope of Service as set forth herein may only be
undertaken with the prior approval of City.
3. Work completed. In the event of any termination for convenience, all finished or unfinished
documents, data, studies, surveys, maps, models, photographs, reports of other materials prepared by
Subrecipient under this Agreement shall, at the option of City, become the property of City, and
Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work
completed on such documents or materials prior to the termination.
4. Termination for convenience. In accordance with 24 CFR § 85.44, suspension or termination of the
Agreement, in whole or in part, may occur for convenience.
5. Termination for material noncompliance. In accordance with 24 CFR § 85.43, suspension or
termination of the Agreement, in whole or in part, may occur if Subrecipient materially fails to
comply with any term of this Agreement, which shall include, but shall not be limited to, the
PY10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 11 OF 13
following:
a. Failure to comply with any of the rules, regulations or provisions referred to herein, or such
statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become
applicable at any time;
b. Failure by Subrecipient to fulfill in a timely and proper manner its obligations under this
Agreement;
c. Ineffective or improper use of funds provided under this Agreement; or
d. Submission by the Subrecipient to City reports that are incorrect or incomplete in any material
respect.
6. Penalty for material noncompliance. In addition to suspension or termination of this Agreement
and/or any other remedies as provided by law, upon a finding of material noncompliance, City may
declare Subrecipient ineligible for any further participation in City CDBG programming. In the
event there is probable cause to believe Subrecipient is in noncompliance with any applicable rules
or regulations, City may withhold up to fifteen (15) percent of said Agreement funds until such time
as Subrecipient is found to be in compliance by City, or is otherwise adjudicated to be in
compliance.
K. Assignment. Subrecipient shall not assign or transfer any interest in this agreement without prior
written consent of City; provided, however, that claims for money due or to become due to Subrecipient
from City under this Agreement may be assigned to a bank, trust company, or other financial institution
without such approval. Notice of any assignment or transfer shall be furnished promptly to City.
L. Subcontractors.
1. City must approve. Subrecipient shall not enter into any subcontracts with any agency or
individual in the performance of this Agreement without the prior written consent of City. All
subcontracts entered into in the performance of this Agreement shall be awarded pursuant to any
applicable provisions of the City Purchasing Policy and/or local, state, or federal laws.
2. Monitoring. Subrecipient shall monitor all subcontracted services on a regular basis to assure
contract compliance. Results of monitoring efforts shall be summarized in written reports and
supported with documented evidence of follow-up actions taken to correct areas of noncompliance.
Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all
information and reports required hereunder and will permit access to its books, records and accounts
by City, HUD or its agent, or other authorized Federal officials for purposes of investigation to
ascertain compliance with the rules, regulations and provisions stated herein.
3. Subcontract content. Subrecipient shall cause all provisions of this Agreement in their entirety to
be included in and made a part of any subcontract executed in the performance of this Agreement.
Specifically, without limitation, Subrecipient shall include the provisions of this Agreement
regarding Civil Rights and Affirmative Action in every subcontract or purchase order, specifically or
by reference, to ensure that such provisions will be binding upon all subcontractors.
4. Documentation. Executed copies of all subcontracts shall be forwarded to City along with
documentation concerning the selection process.
M. Relocation, real property acquisition, and one-for-one housing replacement. Subrecipient agrees
specifically, without limitation, to comply with:
1. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended
(URA), and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606(b);
PY 10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 12 OF 13
2. The requirements of 24 CFR 570.606(c) governing the Residential Anti -displacement and
Relocation Assistance Plan under section 104(d) of the HCD Act; and
3. The requirements in 24 CFR 570.606(d) governing optional relocation policies.
Subrecipient shall provide relocation assistance to displaced persons as defined by 24 CFR
570.606(b)(2) that are displaced as a direct result of acquisition, rehabilitation, demolition or conversion
for a CDBG-assisted project.
N. No contractual impediments. Subrecipient certifies and agrees that no contractual or other disability
exists which would prevent compliance with these requirements.
O. Severability. If any provision of this Agreement is held invalid, the reminder of the Agreement shall
not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and
effect.
P. Entire Agreement. This Agreement contains the entire agreement of the parties and supersedes any
and all other agreements or understandings, oral or written, whether previous to the execution hereof or
contemporaneous herewith.
Q. Non -waiver. Failure of either party to promptly enforce the strict performance of any term of this
Agreement shall not constitute a waiver or relinquishment of any party's right to thereafter enforce such
term, and any right or remedy hereunder may be asserted at any time after the governing body of either
party becomes entitled to the benefit thereof, notwithstanding delay in enforcement.
R. Approval required. This Agreement shall not become effective or binding until approved by the
respective governing bodies of both City and Subrecipient.
IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by their duly
authorized officers to be effective as of the day and year first above written.
SUBRECIPIENT:
Ad,a County Housing Authority
By: Deanna Watson, Executive Director
CITY:
City of Meridian
4 t1�TARY
RU84��
%Z Ire of.
4
111—N\By,
Tamr,91
eerd, Mayor
STATE OF IDAHO
� ss:
County of Ada- ) r�
I HEREBY CERTIFY that on this 9-7 4-h day of ' .D01 �
before the undersigned, a Notary Public in the State of Idaho, personally
appeared Deanna Watson, proven to me to be the person who executed the said
instrument, and acknowledged to me that such person executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
S he day and year in this certificate fust above written.
Notary Public dor Idaho nn�
Residing at D..[ 0� _max Idaho
My Commission Expires:
/550713,
t
Attest:
J`e Ci Clerk.-
PY10 SUBRECIPIENT AGREEMENT -ADA COUNTY HOUSING AUTHORITY PAGE 13 OF 13
Meridian City Council Meeting
DATE: February 8, 2011 ITEM NUMBER: 5A
PROJECT NUMBER:
ITEM TITLE: Presentation Regarding Dynamis/Ada County F
by Commissioner Sharon Ullman and Lloyd Mahaffy
MEETING NOTES
CLERKS OFFICE FINAL ACTION
DATE:
E-MAILED TO
STAFF
SENT TO
AGENCY
SENT TO
APPLICANT
NOTES
INITIALS
Meridian City Council Meeting
DATE: February 8, 2011 ITEM NUMBER:
PROJECT NUMBER:
ITEM TITLE: Department Report: Public Works
Source Water Protection Update
MEETING NOTES
�- ( i f- 0A f-y-
C'd ✓-(s
CLERKS OFFICE FINAL ACTION
DATE:
E-MAILED TO
STAFF
SENT TO
AGENCY
SENT TO
APPLICANT
NOTES
INITIALS
E I DIAtO�-
F11�111C ID AH
ft
Works Department
TO: Mayor Tammy de Weerd
Members of the City Council
FROM: Kyle Radek, PE
Assistant City Engineer
DATE: January 26, 2011
SUBJECT: SOURCE WATER PROTECTION UPDATE
(JANUARY 8, 2011 PUBLIC WORKS DEPARTMENT REPORTS)
Mayor Tammy de Weerd
City Council Members:
Keith Bird
Brad Hoaglun
Charles Rountree
David Zaremba
A. Back rg ound
The City of Meridian is fortunate to have a plentiful supply of quality
groundwater as the single source of potable water for our residents. The City has
taken measures to protect this Source Water through construction practices and is
currently engaged in proactive projects such as a formal Source Water Protection
Plan and a Source Water Protection Ordinance to advance to ensure that this
resource is protected for long term.
This presentation by Kyle Radek, Assistant City Engineer and Ed Squires,
contracted Hydrogeologist, will focus on the Source Water Protection Code that
has been drafted to address one of the main threats to Source Water quality:
unsealed wells. Discussion will cover background of the problem, options for
solutions, and recommendation for proceeding.
Approved for Council Agenda: / i
arren Stewart, Engineering Manager D e
Page I of I
RECEIVED
FEB 0 8 2011 SOURCE WATER PROTECTION ORDINANCE
QTY
ER O� NWRMATION FOR FEBRUARY 8, 2011 CITY COUNCIL MEETING PUBLIC WORKS
DEPARTMENT REPORT
1) OVERVIEW:
a. The City of Meridian has gained increasing understanding of its underground water
supply through on-going hydrogeologic studies and water well drilling projects.
b. These studies have documented different aquifer pressures and radically different
ground water geochemistry with depth within sub -aquifer units beneath the Meridian
area.
c. Through its own well abandonment operations, the City has also become aware of
the dangers of unsealed wells with respect to allowing these differing ground water
chemistries and pressure heads to continuously commingle.
d. Of major concern to the City is for the potential of the existing domestic well field,
and also wells to be drilled in the future, to serve as conduits for shallow subsurface
contamination to move downwards into the aquifers relied upon for municipal water
supply.
e. Meridian was a major supporter and proponent in the recent two-year long
negotiated rulemaking to improve the administrative rules for well drilling at the
Department of Water Resources. Although some gains were made to improve the
existing state rules, the City believes that the new rules remain inadequate to protect
the ground water resources within its area of impact.
f. As a result, the City intends to be proactive in the protection of its ground water
resources and to develop a City ordinance governing the drilling and construction of
wells within its AOI.
g. The City has asked Hydro Logic, Inc., who represented the City at the IDWR
negotiated rulemaking for drilling rules, to draw from the insight gained during that
process and from 17 years of hands on experience with the City's ground water
wells, to assist in the development of the supporting technical specifications to
support such an ordinance.
2) DESCRIPTION OF THE PROBLEM:
a. 90% of the wells getting drilled within the City's area of impact are unsealed, drill -
and -drive domestic wells.
b. State regulations require only a 38 -foot surface seal in wells ranging from 38 feet -to -
1,000 feet deep.
c. The aquifer system has different ground water geochemistry and pressure head at
different depths.
d. Unsealed annular space between the well casing and drilled hole allow surface and
shallow ground water to move upward or downward between aquifers.
e. Many existing unsealed wells have no surface seal or a State -approved 18 -foot deep
surface seal.
f. Existing wells being replaced are not required to be abandoned and associated costs
mean that many are not abandoned.
g. There is a different standard for large bore irrigation and commercial wells with
respect to lower quality materials and seals.
h. Allowed casing materials are inadequate for the long term and corrosion will shorten
well life and cause more wells to be drilled.
i. Knowledge by drillers of shallow ground water contamination results in deeper wells
that are unsealed; allowing contamination to go deeper.
j. Domestic wells are unsupervised by IDWR and can be completed before IDWR
even is aware they are being drilled.
k. Many old wells uncovered by construction projects and/or developers are simply
bladed off and are unreported to save money and time.
3) SHORTCOMINGS OF THE NEW (7-2009) STATE OF IDAHO ADMINISTRATIVE RULES FOR
WELL DRILLING:
a. Still allows the drill -and -drive drilling techniques of cable -tool and air -rotary that
both cause large voids outside of the casing that serve as direct open hole conduits
from 38 -feet to total depth commingling the entire drilled geologic section. In other
words, a 500 -foot domestic well drilled on a property adjoining one of the City's
wells would be allowed with only a 38 -foot seal at the surface (inadequate to even
penetrate the shallow terrace gravel) with the entire saturated section unsealed from
38 feet to 500 feet. This is best imagined as a direct pipeline from the shallow river
gravels to total depth of the well.
b. Driller's may continue to use the "Start Card" program where a driller can simply
send in a drilling permit by U.S. Mail and start drilling the well as soon as the start
card is in the mail slot. Typically, the well will be drilled before the start card
reaches IDWR so there is no possibility for IDWR inspection and no possibility for
the City to be able to have a say.
c. The new rules still allow 1/4 -inch wall thickness for steel well casings. As the City
knows, even the 3/8 -inch thick steel casings the City used prior to switching to PVC
are prone to corrosive break -through within 9 years (Well # 17). When a well casing
fails, it may not even be possible to properly abandon the well.
d. Domestic wells being replaced still do not require abandonment of the well being
replaced (so it is not done because it costs money).
4) IMMEDIATE URGENT THREATS TO THE CITY'S GROUND WATER SUPPLY FROM
DOMESTIC WELLS:
a. Known subsurface contaminant plumes from human activity.
i. Westpark perchlorethylene in West Boise.
ii. Nitrate and pesticides from past agricultural practices.
b. A developing understanding and increased USEPA regulation of naturally -occurring
contaminants.
i. USEPA Arsenic Rule.
ii. USEPA Radionuclide Rule.
5) CONCLUSIONS:
a. The updated administrative rules for well drilling (2009) remain inadequate to
protect the ground water resources of the Meridian area.
b. The greatest threats to the aquifer system relied upon for the City's water supply are
the existence and proliferation of unsealed wells and lack of requirement for proper
well abandonment.
c. Aquifers that are allowed to become contaminated can be difficult and extremely
costly to remediate.
d. All wells to be replaced, wells to be decommissioned, and "discovered" old wells
must be properly abandoned without exception.
In order to protect the City's water supply, well drilling and well abandonment must
be more stringently regulated.
6) POTENTIAL DIFFICULTIES WITH A CITY ORDINANCE:
a. Enforcement and inspection of well seals and materials by a qualified professional
are difficult issues for the City in terms of funding and staff expertise.
b. A City ordinance would not apply to County properties where most domestic wells
are drilled.
c. Resistance and even lawsuits by the drilling community objecting to increased
regulation.
d. Perceived pre-emptive conflict with the primacy of IDWR as the regulator of drilling
practices in Idaho.
7) RECOMMENDATIONS:
a. Develop a set of Meridian -specific supplemental drilling rules
b. Separately, work with the State Department of Water Resources to declare the Citv's
Impact Area an "Area of Drilling Concern" (ADC) under state law.
i. This can be accomplished by "annexing" on to an existing ADC in the West
Boise area and by showing the problems with naturally -occurring arsenic and
radionuclides present in many ground waters beneath the City that could be
spread and/or allowed to migrate though unsealed wells.
As -Abandoned Diagram of Meridian Heights Water and Sewer District
Supply Well #3-A ("Kentucky Ridge")
T. 3 N. R. 1 W. Section 25, SE'/4, NEr/4, NW'/4 - Latitude 43° 34124.711 Longitude 116° 241 19.5"
Abandonment Completed February 4, 2010
Lithology
Lithologic log is drann from IDWR Driller's
Report by Stevens & Sons Well Drilling
topsoil
Gravel and sand
3
CS
Brown clay CD
_. o
r
As -Abandoned Well Construction
(horizontal scale 0.1 "-1 " and vertical scale 1 "=50
all measurements to ground level
�E—IV,
-�
De th 8" x 0.375" Thick r Concrete Seal
l� Steel Cap
(feet baton (ctrl off Ileo jeer below(Pou ed with the installation of crew
ground level} l concrete floor in pttntphouse)
arnwid. welded coninletellO
—0 $
'T2 --inch Cable Cable --To(
Drilled Hole
Existing Bentonfie (
sacks =1,200# x
40'
------ u- - - - - -- 50' -------
Clay
Sau)- clay
8" 10.250" Wall Steel Casing��
:(drilled -and -driven cable -tool and
_pulled back to expose screens} i
F 8 -Inch Cable -Tool -ti-
Drilled Hole
------100'-------
121,
Sand and pea gravel
Clay
v
'
Reddish -brown
cemented sated
�
.Sand and cFtnentedsand
— ti
c'
Clay
`
an sandy clay
e
Y�
Dirt3'sand
Clay
Sau)- clay
8" 10.250" Wall Steel Casing��
:(drilled -and -driven cable -tool and
_pulled back to expose screens} i
F 8 -Inch Cable -Tool -ti-
Drilled Hole
------100'-------
121,
Sand and pea gravel
Clay
_
Vi
.Sand and cFtnentedsand
— ti
c'
Clay
Sand and clay streaks
e
CD
clap
:11._"
sapid
DreRtd Falxu4ry 1010
eytt,•.atoa• t•�.
Loren Pettron
1S0'-------
rQculated Bole YolomeT6at
All Grout Used tYould,Fdl
t_ MOON or
and-Infill.=20T ; —
Removable 6"LCS Steel
Packer Seal
(3 feet long; driven onto
6 -inch headpipe)
— — — 250"-
#8412
S0'
#8-#12 Colorado Silica
Graded Filter Sand 240
(from 242' to 285')
(28 sacks -1,A00# 14 ft�
Houston #304 Stainless Steel (SS) Wlre-Wrap Screen
and Low -Carbon Steel (LCS Pipe Assembly
6" x 0.250" Wali LCS Pipe (242' to 260')
16" x 0.025" Slot SS Screen ..................•••• (260' to 280')
6" x 0.250" Wall LCS Pipe ....................... (280' to 285')
(43 feet long)
High -Solids
(>65% By Weight)
Cement Grout Seal
**Lquif »fore grout than is
required to flll a 8.0" LD.
_ casing was forced outside the
8" Cosliog into the range 0' -
to -121'.
(Grout was puurped by U envie
front the bottoin-rip until frill,
then front the top-down until
refusal at 150 PSI.)
(10.4 yd or 2,110 gal.)
Knife -Cut Perforations
3/4" Wide x 5" Long
8 -to -the -round
+42' (Description of perforations
from camera survey by:
hydro 1Ssic. Tec. on 2-1-201qLj
163'
CETCO High -Solids
148, (>_33.3% -By -Weight)
Bentonite Grout Seal
**2.2 yao more grout than
'02 is required to fill a 8.0" LD.
casing was forced outside
the 8" casing Into the range
228'121' -to -207'.
278•
(Forced outside original 8"
casing by the weight of the
- _ bentonite grout. Grout is -as
pumped by trende front the
bottom-up to the nest level
of pertforations. j
241' (3.3 yd. or 660 gal.)
T_n 1
Sand Infill
(!i f lled from
"orations at 162.)
➢Well abandonment design, camera survey, and onsite inspection by 11y3n to#- lrc, Boise, ID.
IWI13 J -03c, IY . ➢Nell abandonment by h4cl-eran Well Drilling, LLC, Fruitland, ID.
Boise, Idaho ➢Original cable -tool drilling and well construction by Stevens & Sons Well Drilling, Inc., Boise, ID. Figure s
M YDR Q LOGIC, INC. CALCULATIONS AHD DESIGN DATA
JIV )F x,T
ADA COUNTY (DAIRYMAN'S r_.REAMERY WELD111—
A'.� ABANDONV C.)W LL CON51111.11 QN_—
WELL CONSTRUCI10N
PROM WATER RIGHT FILE6 OFTNE
OEPT.OF WATERRE50URCES CAAERA
SURVEYS,GEOPHYSICAL LO AND
DIRECT ON SITE OBS@RVATION
tDEPTH.�.i.7
GCR�CU
OiJ l l%SF�"U Np
t"4uc F [1,4
50
ABANDONED BYI
PICLERAN W ELL DRILLING ANC)
HYDRA LOGIC. 2NC,
-a�-anon
--- 150 — --- ----,
xHIFE-GUT PFRFOt2A3101J5
MINIMUM OF FOUR CUrS
PER ROU11D
EACH GUT GREATER T1iAtlOf%
EQUAL TO 1/'1'' W10E BV
5" LONG
— a00 —.-_ �►
SCALE
VERTICAL
HORIZONTAL 0.1'a I'
___300___,_ .
f "f ) !_xi c. T ,c.
1002 West Franklin St.
Boise, ID 83702-5431
350..x_ — .__
SIEEt. CAP
Z4y
,,
.0t E R
®i
!*K
W1
�I'MPGRFORATIONS
,y`®�&
MnnVJW
1416H-So1.Ius(� aq�s)
BENrOMITE 6ROOT
IsYD36FGPtut uSE03
8 TTM 0 10
70P^ AND ROM
TNEu
t- APP"
WITH 1105E
FITTING AND PRF,
UAU�E.
GROUTING CONTTMUE0LJM13t.
REFUSAL OtURBFD.
140'
ALL HOLESAND
NERFORAITPIN5 VERIFIED
WTTH DOWN HOLE CAhMA
INSPECTIO145 EXLFPT
NO, 196, AND dill, DUE TO
190, CLOUDY WATER,
D31'
&34'
GROUT VOLUME CALCULATEt)
F TANK VOLLtjME AND THE.
NUMBER OF BAIC){E5 U5ED,
rLF a{F Ai'17l1 6Y
_.. ___.
_._._ . L. PEAR�ON___
F„TF II -30-0'7
tirf7 F I
GEOPHYSICAL LOG
MARCH 19i a0 t)'1
aturalGammoRa
lcounts/sec 12U”
II
ORIGINAL UkILLEU
II• <>�
KNOWN
(NOPLOGIH S NAVAILALit. E)
rLF a{F Ai'17l1 6Y
_.. ___.
_._._ . L. PEAR�ON___
F„TF II -30-0'7
tirf7 F I
GEOPHYSICAL LOG
MARCH 19i a0 t)'1
aturalGammoRa
lcounts/sec 12U”
..
Ln
....
......... .. . ........
CLO,
+rc
j�
CLff
...j"`,
.
W
� i
o
Ll_
N
L
LOn
aY• HYDR0 LOGIC INC,.
GEOPHYSICAL LOGS FROM WSIDE OF
CASLE-TOOL DRILLED WELL. INORECORDS MOND)
CLAY STRATA INFERRED FROh1 ELEVATED
GAMMA RE5P011SE AND LITHOLOGIC /
GEOPWYSTCAL LOG DATA ic*A0MNFAMY
rATY TEST WELL MOJECT.
VOLUME0+4 MPAR150 ;/ELI. LOCATION
• 4- PIPE K 310 FEET LONG R 1.0 CUSIG YARD VDIj N43°36 34.71' W 11V a3 35.51"
BY03U5BA - I YOU 4 -INCH PIPET ct?Yo OUT'sm E915TING PIPE 13 N RIE GEC. 17 SwJi NWJSlO
7 YO/ B1Q FT R D,oa3 YOs/RT WHICH 15 EOUIVAtEmr TO'THE VOLUME OF AN II-IW14 SORE 810 FELT LONGI
1 Rrp/.RE=D OY _.-.......... ____....
HYDRO LOG7C, INC. _.1 _CALCULATIONS AIIoDESIGN DATA L. PEAT 505
ADACOUNT`( CAIRYMANa CRIAMEM '+ICILii4 . _ 1-8-08 -
AS-AIWINODNEU WUL C.OW-J RUCK 10N _ _ _ �t1EFr 4 ��� _4 _.
WELL. CONSTRUCTION GEDPHY ICAL L0ro APRIL. a,ao09
FROM WATER R7GHT FILES OFTHE DEPT. OF WATER RESOURCES, CAMERA 1
tI Llro ommoRo
�SURYEYS, GFOPHY5If4L LOG5, AND DIRECT ONSITE' ORSERVAIION. rkincoups sec U
++
DEPTH
(feat b.9.1.)
KNIFE -CUT PERFOF
M1N11111P0f FOURCUT
ROUND. EACH CUT 15 AT L
VN" so
OE ESY__
AU HOLES
,/1
ABANUONEU bY,'
LLGrnn Wt 11 Drillin4
Hydro Logic, rne,
if -la-O'l X -
LARGE HOLES DUE 10 — /`
CORROSION ALLOWED 69001'
TO TRRVEL OMIDECASING
----- X50
B"STEEL CASING/'
SCREEN WITH LEAD
5YIE06E PACKER V
LpL G
—4W
Rlw toole, k.
1002 West FraLlklin St.
Boise, ID 83702-5431
510EL CAP
1?,"PIf E x379'LOW = ILOCUSIC YAR0+0
44.1 YOUSEV^11.OYD'lIN I5° PIPE r
X 83.4 YO OUTSIDE PIPE
e 63.q YDI/399 FT a O -DQ YDS/FT
WHICHI5 EQUIVALENT TO THE
VOLUME OFA 39 -INCH BORE
377 pF[7 1Ofl(l!
KNIFE -QUI PEKF:'AATION5
HINIMUMOF FOURC015 PER
Rom. EACHCUT TSAT LEAS?
1/4 "WIDE BY 5" LONG,
CETCO ANDTEAGUE
H1611-93LID5 ( t a4Yo 1 BENTONITE
y/ '/'%GROUT
PUMPE D BY TREMIE IN IWO 5TA'.E
a6weR E UPPER ZONE51 FROM
B0770M TOTOP. LOWERZONE WA
'RESSURIZED BY 106TALLING
ANNULAR SEAL AROUND TREMI E.
UPPER 2ONF W& PrUlifE:O FROM
aS4' TO SURFACE THEN FROATHE
TOP�00WN UNTIL REFUSAL.
5�
'\//LOWERMIVE a 3b.OYON
� _ =•= - ="� T.D.=?Y
ORIGINAL DRILLED UEPTHGS
UNKNOUN Cho LOAVAILABLE)
GRC)UT VOLUME CALCULATED
FR0MI(NO4JNGkOUT BATCHIH6
VOLUME AND N1MBE K OF
�,.OATCHES USE 0-
'
c�
,:
.4`��
c}
:..
4
........... ...
oj
..
W
: .er
`.1
L/.
• • • I '
LA`i` w
Iy.4
.
. t`
1.
W
Ln
G?
i.
GEOPHY5ICAL 1065 FROMIN51DE r-�1BLE-105%1,A
DRILLED WELL. (NO RR FQUND) CLAY
INFERRED FR6h FLEVATEO GAMMA RESIONSE AND
Ll THOLOGIC / GE0P9Y5� JjA DATA MM NEARBY
CITY TEST WELL
39-126.DUTIES OF STATE AND LOCAL UNITS OF GOVERNMENT. (1) All state
agencies shall incorporate the adopted ground water quality protection
plan in the administration of their programs and shall have such
additional authority to promulgate rules to protect ground water
quality as necessary to administer such programs which shall be in
conformity with the ground water quality protection plan. Cities,
counties and other political subdivisions of the state shall
incorporate the ground water quality protection plan in their programs
and are also authorized and encouraged to implement ground water
quality protection policies within their respective jurisdictions,
provided that the implementation is consistent with and not preempted
by the laws of the state, the ground water quality protection plan and
any rules promulgated thereunder. All state agencies, cities, counties
and other political subdivisions shall cooperate with the department
of environmental quality, the department of agriculture and the
department of water resources in disseminating public information and
education materials concerning the use and protection of ground water
quality, in collecting ground water quality management data, and in
conducting research on technologies to prevent or remedy contamination
of ground water.
TITLE 50
MUNICIPAL CORPORATIONS
CHAPTER 3
POWERS
50-323.DOMESTIC WATER SYSTEMS. Cities are hereby empowered to
establish, create, develop, maintain and operate domestic water
systems; provide for domestic water from wells, streams, water sheds
or any other source; provide for storage, treatment and transmission
of the same to the inhabitants of the city; and to do all things
necessary to protect the source of water from contamination. The term
"domestic water systems" and "domestic water" includes by way of
example but not by way of limitation, a public water system providing
water at any temperature for space heating or cooling, culinary,
sanitary, recreational or therapeutic uses.
1
If
t
d
a
n
s
e
e
s
d
�1.
n
e
;o
r,
11
..e
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ie
it
it
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to
93 PERMITS, CERTIFICATES, AND LICENSES 42-238
form of an order to the director. The hearing shall be conducted in
accordance with chapter 52, title 67, Idaho Code, and rules of practice and
procedure adopted by the water resource board. Any party to the hearing
may seek judicial review of any final order of the water resource board
pursuant to chapter 52, title 67, Idaho Code.
(15) Drilling in a designated "area of drilling concern." The director of the
department of water resources may designate as he determines necessary,
"areas of drilling concern" on an aquifer by aquifer basis within which
drillers must comply with the additional requirements of this section. The
director shall designate "areas of drilling concern" to protect public health
and to prevent waste or contamination of ground or surface water because
of factors such as aquifer pressure, vertical depth of the aquifer, waren or hot
ground water, or contaminated ground or surface waters. It is unlawful for
any person not meeting the requirements of this subsection to drill a well for
any purpose in a designated "area of drilling concern." Any person drilling a
new well or deepening or modifying an existing well for any purpose in an
"area of drilling concern" as designated by the director as herein provided
shall comply with the following additional requirements:
(a) Additional bonding requirements, as determined by the director, to
insure that the well is constructed or abandoned in compliance with the
adopted standards for well construction.
(b) Additional experience and knowledge in drilling wells encountering
warm water or pressurized aquifers as required by rules adopted by the
water resource board.
(c) Document that specialized equipment needed to drill wells in "areas of
drilling concern," as determined by the director, is or will be available to
the driller.
(d) Provide a notice of intent to drill, deepen or modify a well, submit
plans and specifications for the well and a description of the drilling
methods that will be used, as required by the director, and receive the
written approval of the director before commencing to drill, deepen, or
modify any well in a designated "area of drilling concern."
Prior to designating an "area of drilling concern," the director shall
conduct a public hearing in or near the area to determine the public interest
concerning the designation. Notice of the hearing shall be published in two
(2) consecutive weekly issues of a newspaper of general circulation in the
area prior to the date set for hearing.
In the event an area has been designated as an "area of drilling concern"
and the director of the department of water resources desires to remove such
designation or modify the boundaries thereof, he shall likewise conduct a
public hearing following similar publication of notice prior to taking such
action. [I.C., § 42-238, as reen. by 1967, ch. 339, § 1, p. 977; am. 1970, ch.
187, § 4, p. 541; am. 1971, ch. 149, § 2, p. 730; am. 1974, ch. 20, § 1, p. 533;
am. 1980, ch. 238, § 9, p. 526; am. 1987, ch. 347, § 8, p. 741; am. 1990, ch.
366, § 1, p. 999; am. 1993, ch. 216, § 33, p. 587; am. 1997, ch. 361, § 1, p.
1062; am. 1998, ch. 173, § 2, p. 595.1
SOURCE WATER PROTECTION ORDINANCE
BACKGROUND INFORMATION FOR FEBRUARY 8, 2011 CITY COUNCIL MEETING PUBLIC WORKS
DEPARTMENT REPORT
1) OVERVIEW:
a. The City of Meridian has gained increasing understanding of its underground water
supply through on-going hydrogeologic studies and water well drilling projects.
b. These studies have documented different aquifer pressures and radically different
ground water geochemistry with depth within sub -aquifer units beneath the Meridian
area.
c. Through its own well abandonment operations, the City has also become aware of
the dangers of unsealed wells with respect to allowing these differing ground water
chemistries and pressure heads to continuously commingle.
d. Of major concern to the City is for the potential of the existing domestic well field,
and also wells to be drilled in the future, to serve as conduits for shallow subsurface
contamination to move downwards into the aquifers relied upon for municipal water
supply.
e. Meridian was a major supporter and proponent in the recent two-year long
negotiated rulemaking to improve the administrative rules for well drilling at the
Department of Water Resources. Although some gains were made to improve the
existing state rules, the City believes that the new rules remain inadequate to protect
the ground water resources within its area of impact.
f. As a result, the City intends to be proactive in the protection of its ground water
resources and to develop a City ordinance governing the drilling and construction of
wells within its AOI.
g. The City has asked Hydro Logic, Inc., who represented the City at the IDWR
negotiated rulemaking for drilling rules, to draw from the insight gained during that
process and from 17 years of hands on experience with the City's ground water
wells, to assist in the development of the supporting technical specifications to
support such an ordinance.
2) DESCRIPTION OF THE PROBLEM:
a. 90% of the wells getting drilled within the City's area of impact are unsealed, drill -
and -drive domestic wells.
b. State regulations require only a 38 -foot surface seal in wells ranging from 38 feet -to -
1,000 feet deep.
c. The aquifer system has different ground water geochemistry and pressure head at
different depths.
d. Unsealed annular space between the well casing and drilled hole allow surface and
shallow ground water to move upward or downward between aquifers.
e. Many existing unsealed wells have no surface seal or a State -approved 18 -foot deep
surface seal.
£ Existing wells being replaced are not required to be abandoned and associated costs
mean that many are not abandoned.
g. There is a different standard for large bore irrigation and commercial wells with
respect to lower quality materials and seals.
h. Allowed casing materials are inadequate for the long term and corrosion will shorten
well life and cause more wells to be drilled.
i. Knowledge by drillers of shallow ground water contamination results in deeper wells
that are unsealed; allowing contamination to go deeper.
j. Domestic wells are unsupervised by IDWR and can be completed before IDWR
even is aware they are being drilled.
k. Many old wells uncovered by construction projects and/or developers are simply
bladed off and are unreported to save money and time.
3) SHORTCOMINGS OF THE NEW (7-2009) STATE OF IDAHO ADMINISTRATIVE RULES FOR
WELL DRILLING:
a. Still allows the drill -and -drive drilling techniques of cable -tool and air -rotary that
both cause large voids outside of the casing that serve as direct open hole conduits
from 38 -feet to total depth commingling the entire drilled geologic section. In other
words, a 500 -foot domestic well drilled on a property adjoining one of the City's
wells would be allowed with only a 38 -foot seal at the surface (inadequate to even
penetrate the shallow terrace gravel) with the entire saturated section unsealed from
38 feet to 500 feet. This is best imagined as a direct pipeline from the shallow river
gravels to total depth of the well.
b. Driller's may continue to use the "Start Card" program where a driller can simply
send in a drilling permit by U.S. Mail and start drilling the well as soon as the start
card is in the mail slot. Typically, the well will be drilled before the start card
reaches IDWR so there is no possibility for IDWR inspection and no possibility for
the City to be able to have a say.
c. The new rules still allow'/4-inch wall thickness for steel well casings. As the City
knows, even the 3/8 -inch thick steel casings the City used prior to switching to PVC
are prone to corrosive break -through within 9 years (Well #17). When a well casing
fails, it may not even be possible to properly abandon the well.
d. Domestic wells being replaced still do not require abandonment of the well being
replaced (so it is not done because it costs money).
4) IMMEDIATE URGENT THREATS TO THE CITY'S GROUND WATER SUPPLY FROM
DOMESTIC WELLS:
a. Known subsurface contaminant plumes from human activity.
i. Westpark perchlorethylene in West Boise.
ii. Nitrate and pesticides from past agricultural practices.
b. A developing understanding and increased USEPA regulation of naturally -occurring
contaminants.
i. USEPA Arsenic Rule.
ii. USEPA Radionuclide Rule.
5) CONCLUSIONS:
a. The updated administrative rules for well drilling (2009) remain inadequate to
protect the ground water resources of the Meridian area.
b. The greatest threats to the aquifer system relied upon for the City's water supply are
the existence and proliferation of unsealed wells and lack of requirement for proper
well abandonment.
c. Aquifers that are allowed to become contaminated can be difficult and extremely
costly to remediate.
d. All wells to be replaced, wells to be decommissioned, and "discovered" old wells
must be properly abandoned without exception.
e. In order to protect the City's water supply, well drilling and well abandonment must
be more stringently regulated.
6) POTENTIAL DIFFICULTIES WITH A CITY ORDINANCE:
a. Enforcement and inspection of well seals and materials by a qualified professional
are difficult issues for the City in terms of funding and staff expertise.
b. A City ordinance would not apply to County properties where most domestic wells
are drilled.
c. Resistance and even lawsuits by the drilling community objecting to increased
regulation.
d. Perceived pre-emptive conflict with the primacy of IDWR as the regulator of drilling
practices in Idaho.
7) RECOMMENDATIONS:
a. Develop a set of Meridian -specific supplemental drilling rules.
b. Separately, work with the State Department of Water Resources to declare the Citv's
Impact Area an "Area of Drilling Concern" (ADC) under state law.
i. This can be accomplished by "annexing" on to an existing ADC in the West
Boise area and by showing the problems with naturally -occurring arsenic and
radionuclides present in many ground waters beneath the City that could be
spread and/or allowed to migrate though unsealed wells.
Meridian City Council Meeting
DATE: February 8, 2011 ITEM NUMBER: 7
PROJECT NUMBER:
ITEM TITLE: Department Report: Public Works
Discussion on Backflow Testing Program
MEETING NOTES
CLERKS OFFICE FINAL ACTION
DATE:
E-MAILED TO
STAFF
SENT TO
AGENCY
SENT TO
APPLICANT
NOTES
INITIALS
Mayor Tammy de Weerd
City Council Members:
E
I DIAN�- KeithBird
Brad Hoa lun
Charles Rountree
1! D AHO David Zaremba
February 8, 2011 F C E I V ED
FEB 0 8 2011
Name ","I TY OFC L
Account Number CITY CLERKS OFFICE
Street
City, State, Zip
NOTICE TO TEST BACFLOW PREVENTION ASSEMBLY
TEST DUE DATE: XX-XX-XXXX
According to our records it is again time for the annual testing of your backflow prevention
assembly. The assembly which is located on your private plumbing system requires annual testing
per City Ordinance and State Law.
A completed test form, showing your assembly is operating properly, must be provided and
completed by a Certified Backflow Prevention Tester. The results of this test must be submitted
to the Meridian Water Division by the TEST DUE date provided above. For your convenience,
we have enclosed a short list of certified Backflow Testers in the area who can perform your test;
however, you may choose any certified backflow tester. This ordinance will be enforced, and the
penalty for non-compliance is termination of water service until the test is passed and imposition
of associated water turn-off fees.
As a reminder to our February letter sent out regarding changes to the testing process of backflow
assemblies, you will now be responsible to pay the backflow tester directly for your assembly
testing. To help you with transitioning to this new payment process, the City of Meridian will be
applying a $10.00 credit, in 2011, to customer accounts that have their backflow assemblies
tested by the scheduled TEST DUE date. The backflow tester, after completion, must then submit
the results of performed test to the City Water Division within thirty (30) Calendar days of the
above DUE DATE.
As always, we appreciate your cooperation in this matter by assisting us in our continued
commitment to provide the safest drinking water possible to customers. If you have any further
questions regarding testing or these changes to our program, please feel free to contact the City of
Meridian Water Division directly at 208-888-5242 or by e-mail at backflowLa)meridiancit .ororg
Sincerely,
Dennis M. Teller
Water Superintendent
City of Meridian Water Division
Enclosures:
List of Certified Testers
Water Division - 2235 N.W. 8th Street, Meridian, ID 83642
Phone 208-888-5242 . Fax 208-884-1159 - www.meridiancity.org
EIDIANRh--
IDAHO /
February 8, 2011
Name
Account Number
Street
City, State, Zip
Mayor Tammy de Weerd
City Council Members:
Keith Bird
Brad Hoaglun
Charles Rountree
David Zaremba
FINAL NOTICE TO TEST BACKFLOW PREVENTION ASSEMBLY
TO AVOID SERVICE TERMINATION TESTING MUST
BE COMPLETED AND SUBMITTED BY:
XX-XX-XXXX
According to our records we have not yet received test results for your backflow prevention
assembly. However, if you have already had your backflow preventer tested and we have not yet
received the test report, please contact the Meridian Water Division at the below contact info.
Approximately thirty (30) days ago a Notice to Test Backflow Prevention Assembly was mailed
to you requesting that the testing of your backflow prevention assembly. A Test Report was to be
completed and returned by the date shown on the Notice to Test letter. To date, your Test Report
has not been received and is now PAST DUE; the $10.00 credit for testing on time will not be
applicable for your account. Enclosed is a copy of the original Notice to Test letter.
City Ordinance requires that a successful test of the assembly must be completed annually by a
Certified Backflow Prevention Tester and the results submitted to the Meridian Water Division.
You may choose any certified backflow tester. However, to assist you in your selection a list of
Certified Backflow Testers can be accessed by visiting City of Meridian Water Division's web
page at www.meridiancity.org. Also, as an important reminder to our February letter regarding
changes to the testing process of backflow assemblies, please note that you are now responsible to
pay the backflow tester directly for your assembly testing.
To avoid disruption of your water service and imposition of the associated turn-off fee, the
test results on a completed Test Report form (provided by your tester) must be received by
our office by TEST DUE DATE above. Failure to provide completed Test Report may
result in termination of water service to your property without further notice.
As always, we appreciate your cooperation in this matter by assisting us in our continued
commitment to provide the safest drinking water possible to customers. If you have any further
questions regarding testing or these changes to our program, please feel free to contact the City of
Meridian Water Division directly at 208-888-5242 or by e-mail at backflow(a)meridiancity.org
Water Division . 2235 N.W. 8th Street, Meridian, ID 83642
Phone 208-888-5242 . Fax 208-884-1159 . www.meridiancity.org
Sincerely,
Dennis A Teller
Water Superintendent
City of Meridian Water Division
Enclosures:
Copy of Original Test Notice
DIANA--
� A H O
LICENSED BACKFLOW TESTERS LIST
COMPANY
PRICE
PHONE #
BUCK'S BACKFLOW
$25.00
939-1646
PRO VISION BACKFLOW
$25.00
888-5497
BACKFLOW NORTHWEST
$27.00
440-1243
BENNETT'S BACKFLOW
$27.00
608-2762
ASSURED QUALITY LAWN
$30.00
377-9000
CRAIG'S BACKFLOW
$30.00
343-3793
E&J BACKFLOW
$30.00
989-2883
HAWKINS BACKFLOW
$30.00
888-1920
R & S SPRINKLER
$30.00
288-0057
V-4 PLUMBING
$30.00
571-8596
TOP DOG PLUMBING
$32.00
473-8389
AA SPRINKLER & BACKFLOW
$35.00
954-4800
ABSOLUTE IRRIGATION MAINT.
$35.00
658-1483
JBL FIRE PROTECTION LLC
$35.00
573-2104
MERIDIAN PLUMBING
$45.00
888-7555
NIELSEN BACKFLOW SERVICES
$45.00
695-6681
DRAKE MECHANICAL
$75.00
362-6200
ABSOLUTE FIRE PROTECTION
$25.00 & UP
631-9934
BACKFLOW PROS
$18.00 - $180.00
249-1293
CLOVERDALE PLUMBING
$75.00 & UP
376-1901
DE BEST PLUMBING
$25.00 - $75.00
322-4844
IDAHO BACKFLOW
$30.00 - $45.00
514-9595
PROTEX LLC
$35.00 + $65.00 PER HOUR
429-1637
TAYLOR BROTHERS FIRE & SAFETY
$25.00 PRICE MAY VARY
898-9379
VALLEY HYDRO INC
$35.00 - $65.00
941-5989
HUDSON BACKFLOW
CALL FOR QUOTE
938-2023
PAIGE MECHANICAL GROUP
CALL FOR QUOTE
331-9000
TODD'S PLUMBING
CALL FOR QUOTE
850-5086
*CUSTOMER RESPONSIBLE TO VERIFY PRICING
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