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08072008CouncilMinutes CITY OF AMMON CITY COUNCILAGENDA MINUTES AMENDED THURSDAY, AUGUST 7, 2008 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AMENDED AGENDA THURSDAY, AUGUST 7, 2008 - 7:30 P.M. CALL TO ORDER: Mayor Bruce Ard at 7:30 p.m. Pledge of Allegiance – Councilmember Bean Prayer – Councilmember Powell MINUTES: None ITEMS FROM MAYOR: CONSENT AGENDA: Business License Accounts Payable – Exhibit A PUBLIC HEARINGS: Parking Fee Violations 2008-024 PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: ACTION ITEMS: 1. Motion on Hearing - Parking Fee Violations 2. Request for Modification of Conditional Use Permit – Lennis Terrill - Sunnyside Auto (Ron) 3.Firehouse Contract Approval (Ray) 4.Ord. 463 Intermountain Gas Franchise Agreement 5.School Dist. 93 Request for Additional Crosswalks Painting (Lance) 6.Ord. 457 Amend Title 4, Section 2, Chapter 3 and 4 – Beer & Wine Exempting Idaho Liquor Dispensary – Third Reading 7.Budget Preliminary & Hearing Date Confirmation (Lee) DISCUSSION ITEMS: 1.Work Session Time Schedule (Leslie/Lance) 2.Bonneville County Landfill Issues (Lance) 3.Swales - Enforcement Direction (Brian/Shawna) 4.Misc. EXECUTIVE SESSION: 1.Litigation Issues (Scott/Leslie/Ron ) MINUTES City Officials Present: Mayor Bruce Ard Councilmember Lee Bean Councilmember Brian Powell Councilmember Randy Waite Councilmember Rex Thompson Councilmember D. Ray Ellis City Attorney Scott Hall City Clerk Leslie Folsom City Planning Director Ron Folsom City Engineer Lance Bates City Officials Absent: Councilmember Dana Kirkham Mayor Ard opened the meeting at 7:30 p.m. at the City Office Building located at 2135 South Ammon Road. Councilmember Bean led the Pledge of Allegiance and Councilmember Powell offered a prayer. MINUTES: None 8-7-2008 City Council Minutes Page 1 of 7 ITEMS FROM MAYOR: None CONSENT AGENDA: CITY OF AMMON BUSINESS LICENSE CONSENT AGENDA Thursday August 7, 2008 License applications, carrying the required documents, pending approval of the City Council: GENERAL BUSINESS LICENSE 2008: 1.NEWGENERAL BUSINESS LICENSE APPLICATION: th A.TechTime Rentals, Inc. – Electronics Rentals – 939 S. 25 E. Ste. #103 2.RENEWALBUSINESS LICENSE APPLICATION: A.Back to Beck Chiropractic – Chiropractic – 1490 Midway HOME OCCUPATION PERMITS 2008: 1.NEW HOME OCCUPATION PERMITS: A.Ellis Health – Retail Sales – 5608 Veil Drive B.Jewels by Park Lane – Retail Sales – 1883 Eagle’s Homestead C.NP Building Maintenance – Marco Antonio Aguayo – 4346 High Desert Drive 2.RENEWAL HOME OCCUPATION PERMITS: A.Perfect Perfections – Retail Sales – 5046 Vintage Lane B.Marv’s Barber Shop – Barber Shop- 2955 Central Business License:Councilmember Waite inquired about Ellis Health Retail Sales and Jewels by Park Lane. Leslie stated Ellis Health was a wholesale essential oil business and Jewels is direct jewelry sales. Leslie will change the terminology on these. Perfect Perfections is a beautician. Councilmember Waite motioned to approve the consent agenda as presented. Councilmember Ellis seconded. Roll call vote: Councilmember Waite – Yes, Councilmember Ellis – Yes, Councilmember Bean – Yes, Councilmember Powell – Yes, and Councilmember Thompson – Yes. The motion passed. Accounts Payable – Exhibit A: Councilmember Bean inquired concerning the Fire Dept. Grant to be sure that the funds have been received for the communications system. Leslie confirmed that the separate checking account has been closed and the funds are coming directly into the City checking account. Councilmember Powell explained that Stacy requests the funds for the grant and when the funds are received, the bills are paid out of the City checking account. Councilmember Waite motioned to approve Accounts Payable – Exhibit A as presented. Councilmember Powell seconded. Roll call vote: Councilmember Waite – Yes, Councilmember Powell – Yes, Councilmember Bean – Yes, Councilmember Ellis – Yes, and Councilmember Thompson – Yes. The motion passed. PUBLIC HEARINGS: Parking Fee Violations 2008-024 : Mayor Ard opened the parking fee violations hearing. Ron talked with Brian and he explained our ordinance says violations are an infraction and we can set the fees up to the infraction fees amount. Councilmember Powell stated that we needed to get Shawna’s ticket redesigned so she can just tag the vehicle instead of having to have a driver’s license holder present. Scott said it becomes a violation against the vehicle not the driver which is subject to bond forfeiture instead of appearing in magistrate court. Councilmember Powell stated the fees are similar to Idaho Falls. Scott questioned if somebody was parking a vehicle in the street right-of-way and it’s been there for 6 months are we citing under this or other provision. Ron stated she has been citing under the ordinance but she would like to cite in this new direction. Scott stated unless it falls under “9 other”, that he feels this should be added. Scott said it’s essentially a junk car sitting in the City right-of-way, which we should potentially look at cleaning up by getting rid of it or getting it running. Ron said Shawna can’t find where we can have it towed; however, she thinks the State Code might have something. Councilmember Powell stated her main issue was not being able to cite on the spot and if she did cite, they had to go to the court house instead of coming to the City. Councilmember Bean asked what the provision is, if they don’t pay on time. Scott stated this is treating it like a bond forfeiture and the citation needs to include ordinance section 9-4-22 language stating that if not paid in 14 days then it will be incited as a regular infraction in Magistrate Court. If they pay at the city within 14 days, they do not have to go to court. Ron explained part of this language is right out of the Idaho Falls ordinance. Brian Tucker would be the one to work on any disputes. No public comment was made. Mayor Ard closed the public hearing. 8-7-2008 City Council Minutes Page 2 of 7 PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: Robert Taylor, 4279 Mirinda Lane, Centennial Ranch requested an update on the water line. Lance stated the Hill Tank transmission lines are coming along well. The line is th in Sunnyside up to the cemetery and the entire mile of 60 East is done and getting ready to turn down 21st street in the next week, which is a little ahead of schedule. Councilmember Ellis expects Well 10, Well 11 and the Hill Tank in late May and early June. Robert also asked about the railroad crossing on John Adams? Lance explained it is a County sponsored project and he can’t get a direct answer from the County. Lance stated the person who was in charge of it has left the County. Robert inquired as to the status of the sewer project. Lance stated there was a groundbreaking last week. It’s an 18 month project for the first phase and the design of the interceptor line has been started. Councilmember Bean explained we are going to get $500,000 to $1.2 million from the federal government which will bring the line close to the Country Club. Robert asked if all the people close to the line have to tap into it. Lance stated they will have a choice until their septic tank ceases to work properly, then they will need to connect and all new ones will have to connect. Mayor Ard stated DEQ is involved with the whole project. Robert asked what the status of the IBSD lawsuit is. Councilmember Bean stated its ongoing with the court date set for next April. Scott stated it has been changed to next July. th Robert asked why the railroad crossing on 17 is a mess. Is there anything happening on it? Mayor Ard stated only the railroad can do anything with it. Robert stated the City website is not up to date and is not user friendly. Councilmember Powell announced its being reformatted. ACTION ITEMS: 1. Motion on Hearing – Parking Fee Violations: Councilmember Bean motioned to approve the parking fee violations as presented. Councilmember Powell seconded. Roll call vote: Councilmember Bean – Yes, Councilmember Powell – Yes, Councilmember Ellis – Yes, Councilmember Thompson – Yes, and Councilmember Waite – Yes. The motion passed. 2. Request for Modification of Conditional Use Permit – Lennis Terrill – Sunnyside Auto (Ron):Ron explained Lennis’s concern for the stoplight commitment. He feels committing him to this through the site plan doesn’t make sense since all he has to do is let it expire. Ron recommends dropping Item #6 and when he comes in to develop the property we will look at it like we did Maverik. This is basically the only way we can get asphalt on that land. He can’t afford $91,000. Scott stated the rest of the area has a significant impact on the stoplight and should be picking up a significant part of the stoplight. The future development behind Maverik will have more impact than this area. Councilmember Thompson suggested assigning a fee to the property that is not adjacent to the light. Scott stated we can always do exaction in the development area. Ron stated the realty is once the flood plain goes away then the manufactured housing area will create major housing and this could become a portion of the cost for the stoplight. Lance said we can require another traffic impact study and as a result of it, most of these questions should be answered. Tom Hunsaker stated exactions don’t have to be right on the corner, they just have to impact the corner. Councilmember Thompson asked are we saying he doesn’t have to pay anything for the stoplight. Ron answered no. We would have him plat it and then we would address it. Lance mentioned the most recent traffic study mentioned a stop light was not warranted at this time. Councilmember Ellis stated for now he would pave the lot and if at some time he puts a building on the property, we would address it at that time. Ron stated we will now be getting asphalt, landscaping and fences out of this. Councilmember Powell asked if 3 years are normal for conditional permits. Ron answered we vary between 2 – 3 years. Scott stated this is a small enough lot that by the time the landscaping and parking is put in, there isn’t much left. Councilmember Powell motioned to approve the modification of the conditional use permit for Lennis Terrill – Sunnyside Auto. Councilmember Waite seconded. Roll call vote: Councilmember Powell – Yes, Councilmember Waite – Yes, Councilmember Bean – Yes, Councilmember Ellis – Yes, and Councilmember Thompson – Yes. The motion passed. 3. Firehouse Contract Approval (Ray): Councilmember Powell feels that things are worked out between Councilmember Ellis, Doug and Scott and it’s good to go. He took ICRMP and Councilmember Ellis’s input and combined them. It covers all of Councilmember Ellis elements. Councilmember Ellis stated that there was a problem which forced the floor to be raised 6 inches to get the ceiling height. Councilmember Bean asked who will pay for it. Councilmember Ellis stated the contractor. Councilmember Ellis stated the plans were fine but the contractor messed up. 8-7-2008 City Council Minutes Page 3 of 7 Councilmember Powell motioned to approve the firehouse contract between the City of Ammon and JJ Enterprises LLC. Councilmember Ellis seconded. Roll call vote: Councilmember Powell – Yes, Councilmember Ellis – Yes, Councilmember Bean – Yes, Councilmember Thompson – Yes and Councilmember Waite – Yes. The motion passed. 3. Ord. 463 Intermountain Gas Franchise Agreement: Councilmember Bean talked with Lynn Davis who advised Lee of the “me too” clause and he is OK with it. Councilmember Bean read Ordinance 463 AN ORDINANCE OF THE CITY OF AMMON, IDAHO, GRANTING TO INTERMOUNTAIN GAS COMPANY A TWENTY (20) YEAR EXTENSION TO ITS FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE A GAS TRANSMISSION AND DISTRIBUTIONS SYSTEM; PROVIDING FOR USE OF STREETS AND ALLEYS, AND RULES GOVERNING THE SAME; SUBJECTING THE GRANTEE TO ALL POWERS OF THE CITY; SETTING FORTH THE RULES GOVERNING REPAIRS AND RECONSTRUCTION OF THE STREETS; PROVIDING FOR THE TERM OF THE FRANCHISE AND GRANT; PROVIDING FOR THE RIGHT OF INSPECTION BY THE CITY OF GRANTEE'S PLANS, ACCOUNTS, AND BOOKS; REQUIRING GRANTEE TO FURNISH CERTAIN MAPS; SETTING FORTH THE ANNUAL PAYMENT TO THE CITY, AND THE FILING OF ANNUAL REPORTS WITH THE CITY; REQUIRING GRANTEE TO INDEMNIFY CITY, AND FILE EVIDENCE OF INSURANCE; REQUIRING COMPLIANCE WITH SAFETY REGULATIONS; SETTING FORTH AN AGREEMENT NOT TO COMPETE , RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR SURRENDER OF FRANCHISE; GRANTING RIGHT TO SALVAGE; REQUIRING WRITTEN ACCEPTANCE; PROVIDING FOR CONSENT TO SALE, ASSIGNMENT OR LEASE; PROVIDING FOR CITY'S CONSENT TO GAS STORAGE FACILITIES; PROVIDING FOR PAYMENT OF PUBLICATION COST; SETTING FORTH Councilmember Bean motioned that the City council dispense with PENALTIES AND FORFEITURES, SEPARABILITY AND REPEAL. the rule requiring the reading of the ordinance on three different days and that the three readings be waived. Councilmember Waite seconded. Roll call vote: Councilmember Bean - Yes, Councilmember Waite – Yes, Councilmember Powell – Yes, Councilmember Ellis – Yes, and Councilmember Thompson – Yes. The motion passed. Councilmember Bean read Ordinance 463 AN ORDINANCE OF THE CITY OF AMMON, IDAHO, GRANTING TO INTERMOUNTAIN GAS COMPANY A TWENTY (20) YEAR EXTENSION TO ITS FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE A GAS TRANSMISSION AND DISTRIBUTIONS SYSTEM; PROVIDING FOR USE OF STREETS AND ALLEYS, AND RULES GOVERNING THE SAME; SUBJECTING THE GRANTEE TO ALL POWERS OF THE CITY; SETTING FORTH THE RULES GOVERNING REPAIRS AND RECONSTRUCTION OF THE STREETS; PROVIDING FOR THE TERM OF THE FRANCHISE AND GRANT; PROVIDING FOR THE RIGHT OF INSPECTION BY THE CITY OF GRANTEE'S PLANS, ACCOUNTS, AND BOOKS; REQUIRING GRANTEE TO FURNISH CERTAIN MAPS; SETTING FORTH THE ANNUAL PAYMENT TO THE CITY, AND THE FILING OF ANNUAL REPORTS WITH THE CITY; REQUIRING GRANTEE TO INDEMNIFY CITY, AND FILE EVIDENCE OF INSURANCE; REQUIRING COMPLIANCE WITH SAFETY REGULATIONS; SETTING FORTH AN AGREEMENT NOT TO COMPETE , RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR SURRENDER OF FRANCHISE; GRANTING RIGHT TO SALVAGE; REQUIRING WRITTEN ACCEPTANCE; PROVIDING FOR CONSENT TO SALE, ASSIGNMENT OR LEASE; PROVIDING FOR CITY'S CONSENT TO GAS STORAGE FACILITIES; PROVIDING FOR PAYMENT OF PUBLICATION COST; SETTING FORTH Councilmember Bean moved the adoption of Ordinance 463 as an PENALTIES AND FORFEITURES, SEPARABILITY AND REPEAL. ordinance of the City of Ammon on this third and final reading. Councilmember Waite seconded. Roll call vote: Councilmember Bean - Yes, Councilmember Waite – Yes, Councilmember Powell – Yes, Councilmember Ellis – Yes, and Councilmember Thompson – Yes. The motion passed. Councilmember Bean inquired about a couple of items in the contract. One is the annual report from Intermountain Gas and their insurance. Leslie stated that she receives once a year an annual report from their stock filings and we do get insurance reports from them. Councilmember Bean would like a system set up so we will know when the franchise comes in and when we can expect it. Scott Hall asked if they provide us certification when they pay us. Ron stated that there is a certification. 4. School Dist. 93 Request for Additional Crosswalks Painting (Lance): Guy Blisner, School Dist 93 Health and Safety Coordinator for the District stated the State has caused them to review their safety busing practices. The area directly South of Tiebreaker and on the Southside of John Adams no longer qualifies for safety busing. The State requirement is a 1 ½ mile radius from the school. They are removing the First Street crosswalk and putting a manned crosswalk to John Adams on the Westside of Tiebreaker and asking for crossings on both the North and Southside of Tiebreaker, so it’s basically a horseshoe. Later they are asking for a crosswalk at the entrance of the Tiebreaker driveway. Councilmember Thompson st inquired if there will be a crosswalk across from 1 Street. Councilmember Bean can see no reason for a crosswalk there but we could have the same argument with Stonebrook for the park. Scott asked Lance what happens if the Tiebreaker crosswalk gets moved back to the North side of the cul-de-sac. Lance replied that only gains two car lengths. Scott said it helps some. Guy mentioned the parent drop off is a right turn only and hopefully will lower the congestion. Councilmember Thompson used to drive around the parking lot and out to go home. He feels this is the safe way. Guy disagrees. The problem is that people won’t wait and are dropping children off in the parking lot, which is the most dangerous place for the child. He is hoping to get them out of the parking lot. Councilmember Bean stated it makes sense to reverse the flow. Guy is willing to look at any solution that makes sense. Guy said we still need crosswalks at John Adams and Tiebreaker. Councilmember Bean suggested Lance, Guy, Rex and Ron get together to help find a solution. Mayor Ard mentioned that the crosswalk can only be so many feet from a school to justify it. Councilmember Bean stated we have one more council meeting and doesn’t feel council should decide this. Councilmember Thompson has a problem with the one on the left side crossing John Adams. Guy has asked for a crosswalk on the east side of the intersection, with one or two legs to be manned. Randy stated kids coming from the southwest corner will have to cross John Adams, then cross Tiebreaker, then cross back on John Adams and 8-7-2008 City Council Minutes Page 4 of 7 they won’t do it. Guy said most of them live on the Westside. Guy stated they are trying to avoid two crosswalks on John Adams. Scott asked why John Adams is not considered a main road. Lance stated because it’s not a mile road. Robert Taylor said they should probably look at a four way stop there. Councilmember Thompson responded then that would be alright. Guy stated it is high foot traffic but expects a lot of people will transport their children which creates the congestion issue we are dealing with. White Pines starts earlier. Scott asked if there is a way to get the schools to have 30 minutes spread. Guy replied it would be very difficult based on bus specifics. Councilmember Bean motioned that we table the crosswalk that is proposed across Tiebreaker by the southeast entrance of the parking lot, pending the review of Lance, Councilmember Thompson and Guy Blisner from School Dist 93 and approve the crosswalks on Tiebreaker on the Southside of John Adams and on the Westside of Tiebreaker on John Adams, conditioned that it is a manned crosswalk. Councilmember Ellis seconded. Roll call vote: Councilmember Bean – Yes, Councilmember Ellis – Yes, Councilmember Powell – Yes, Councilmember Thompson – Yes and Councilmember Waite – Yes. The motion passed. 6.Ord. 457 Amend Title 4, Section 2, Chapter 3 and 4 – Beer & Wine Exempting Idaho Liquor Dispensary – Third Reading: Councilmember Bean read Ordinance 457 AN ORDINANCE OF THE CITY OF AMMON, OF THE STATE OF IDAHO, AMENDING TITLE 4, CHAPTER 3, SECTION 2 AND TITLE 4, CHAPTER 4, SECTION 2, OF THE CITY OF AMMON, EXCEPTING THE STATE OF IDAHO LIQUOR DISPENSARY IN REGARDS TO LICENSING FOR RETAIL SALE OF BEER AND WINE, PROVIDING FOR Councilmember Bean SEVERABILITY; REPEALING CONFLICTING ORDINANCES AND PROVIDING AN EFFECTIVE DATE. moved the adoption of Ordinance 457 as an ordinance of the City of Ammon on this third and final reading. Councilmember Waite seconded. Roll call vote: Councilmember Bean – Yes, Councilmember Waite – Yes, Councilmember Powell – Yes, Councilmember Thompson – No for philosophical reasons, and Councilmember Ellis – No for philosophical reasons. The motion passed. 7. Budget Preliminary & Hearing Date Confirmation (Lee): Councilmember Bean explained the budget has been a real challenge this year and Bruce Patterson has helped work out a completely different format than we have had in the past. We have notified the County that our public hearing will be held on Aug. 21 but there is no way we can meet this. We are rdth now moving the public hearing to September 3 due to the fact that the County’s final deadline is September 4. thrd Councilmember Bean motioned to move our first meeting in September from September 4 to September 3 and strd approve the movement of our budget hearing from August 21 to September 3. Councilmember Powell seconded. Roll call vote: Councilmember Bean – Yes, Councilmember Powell – Yes, Councilmember Ellis – Yes, Councilmember Thompson – Yes, and Councilmember Waite – Yes. The motion passed. Councilmember Bean has requested a work session next week to meet with the department heads. Councilmember Bean discussed allocation. The general government will fund everything and there will be portions allocated to the individual funds. He explained the procedure for this year’s budget and went through all the funds. The Fire Dept. proposal includes a training officer, laundry, and secretary. It needs to be determined if we have the funding to cover these items. Councilmember Powell will discuss the items with Stacy. Councilmember Bean explained that there will be a decrease in liquor apportionment, State revenue sharing is down $44,000, and fuel is higher. Councilmember Powell inquired about the carry over funds which are the City’s reserves. Councilmember Bean explained Ken is a great parks director and is a great visionary. Ken has virtually no revenues for his department. Ken wants a new pickup, dump trailer, and new shelter but we need to take a serious look at these. The council has to determine where they want their resources to go. Councilmember Bean asked the council to look at IT and streets. The department heads have to buy off on IT and this is our first year. This has helped identify our true costs in IT. The department heads have to agree on the apportionment from IT. Councilmember Bean explained that the street department does have highway user fees and now have an interest earnings line. Lance stated to buy a street sweeper the cost is approx. $140,000 and we can pay for this in 10 years. We are paying $10,000 for this year. Councilmember Bean asked is there enough in snow removal? Lance explained this is for overtime but there are other areas of snow removal in fuel and oil. Councilmember Ellis asked if the snow lease is for the heavier equipment. Lance answered yes. Line item 385 is strictly maintenance except LID. Lance wants a rotating schedule so that everything is seal coated in 5 – 8 years. In the last couple of years, we have spent more to catch up. The sidewalk line item is to help with the areas we have to go in and redo and try to collect from the homeowner. We still have areas in Tiebreaker, Cottages, Eagle Point and different areas throughout the city to take care of. Councilmember Bean wants the council to get with their department heads and question the staff on their budgets. Councilmember Bean asked how we balance the budget with the growth stopping; we will have less this year. Councilmember Bean told the council we have to trim $1 million dollars of expenses. Councilmember Powell would like to see more emphasis on the streets. What projects do we do? Do we engineer some of these projects? The police contract has taken every bit of our tax revenue increase. Councilmember Ellis stated that whatever we get from growth would go into the reserves for major projects so when you don’t have growth it won’t kill you. Councilmember Bean stated the fact is that our 8-7-2008 City Council Minutes Page 5 of 7 levy rate isn’t there. Eagle, Idaho has a lower levy than us but an assessed value ten times higher than us. The City of Ammon is hampered with low levy and valuations. Councilmember Ellis stated here’s the argument for frontage fees which recoups the cost of the street and the contractor becomes the bank for the project. Councilmember Bean stated this is where LID’s become so important. We have already committed to a street light for Sunnyside. Councilmember Ellis inquired how many millions of dollars we have in savings.Councilmember Bean stated we have about $17 million in the bank. Mayor Ard explained that we have major projects in water and sewer. Councilmember Bean stated the money is earning 5%. Councilmember Ellis argued construction projects are going up 10% - 15% so if we put the money into projects we will gain 8-9%. Councilmember Bean stated the Building Department is behind approx. $150,000 for this year and will have to go into its reserves. We are here because there was an employee hired we shouldn’t have but we won’t let him go. If Charlie can’t balance his budget then he has to do what he has to. He will have to increase his revenues to increase his shortfall or decrease his expenses. If not right by Dec/Jan, we will have to make a serious change. Ron mentioned if it all turns out with Hawks Landing and it is all sold, those permits will probably go out this Dec. and Charlie didn’t take this into consideration. Councilmember Bean turned to the water department. We have a hefty amount in the professional services but there is a water model, well investigation and utility rate study. Councilmember Powell asked Lance if we were going to get another person certified for water. Lance is trying to get another individual certified this year. Councilmember Bean asked what Wonderware is? Lance explained it’s the new SCADA software. Councilmember Bean inquired if there is value into holding the water rights and if there is, how do we take advantage of it. Mayor Ard explained Shelley is trying to transfer surface water to ground water and this could make it quite valuable. Lance explained the generator welder is off estimates he has. Councilmember Ellis asked if we can we buy a used dump truck. Can government do this without bids? Doug Andrus is buying used, cuts the frame, lengthens it and puts a dump on it. How do we do this? Councilmember Bean stated that with Pearl House there are some concerns the $500,000 might have to be paid back. Mayor Ard feels there might be a good argument for this since we did our portion. Councilmember Bean explained the cash carryovers definition is reserves. Councilmember Bean threw in what a bond payment would be. With a $15 million bond for 20 years, there would be $750,000 a year in principal payment and $450,000 in interest at basically a 3% interest rate. In order to meet this bond payment, we will have to come up with $103,000. Water would have to be increased by $19 per month because we passed a bond. Do we try to meter before this? Do we need to propose raising rates this year? Do we do it in increments or do in one shot? At some point, we have to make the decision. Leslie suggested looking at high water users and make sure all of these meters are being read. Councilmember Bean feels we need a utility rate study. Councilmember Bean turned to the sewer department expenses. He put $1.5 million for the Regional Sewer Project in; in case we need it but it should all be going directly to Ted Hendricks. Councilmember Bean inquired if we will have any oversize expenses for the Sunnyside line. Ron thought there was a reimbursement portion. Lance won’t know a number until they go to bid next spring. Councilmember Bean asked Ron and Lance to check with Maverik to be sure there isn’t any money needed for that line. Councilmember Bean explained that we are short on the sewer bond by $776,460 which is what we will have to make up in user fees, this equates to an $18.22 increase. Councilmember Ellis reaffirmed on water and sewer, a portion pays the bond and a portion is operation and maintenance. How are we dealing with capital and operations and repairs? Do we need to segregate our payment? There are two legal firms asking if connection fees will be used for capital improvements. He expects there will be a local issue. Councilmember Bean stated remember those connection fees are not being spent out of this budget. If the courts say it’s illegal, he feels the legislature will come in. At this time, we don’t have built into our rates a capital improvement portion. Councilmember Powell asked if you are paying a portion for the use of the transmission line. Councilmember Bean stated user fees don’t include a bond payment. The user fees contain a portion of your budget that is used for that. You won’t bill them so much for user fees and so much for bond repayment. The question is did you control your expenses. Can you control your expenses well enough to make your payment? Mayor Ard stated the Region will buy the major equipment. Mayor Ard stated the Regional’s estimate is $40 per month which includes the bond repayment. Scott we had two problems with Idaho Falls: we can’t control the costs and they could cut off because they don’t have the available sewer. Councilmember Bean stated Chad already put us on notice. Councilmember Thompson mentioned this doesn’t include growth. Scott stated it doesn’t include the growth in the County and the money from their connections. Councilmember Bean moved to sanitation. We will have a $161,000 shortfall to go to the automated system which equates to approx. a $3 increase per month. Leslie advised we need to separate out the rental fee on dumpsters for taxation. Councilmember Ellis inquired if we should be buying our diesel because we can run off-road diesel which is 20 cents per gallon cheaper. Ron stated we have all of next week but it has to get to the Post Register the Wednesday of the following week. We have to publish two times in 7 days and they have to have it 14 days in advance. Councilmember Bean asked when the council wants to meet and do we need the department heads? Councilmember Bean inquired concerning the Christmas hams and a Christmas luncheon. Leslie suggested not doing the dinner and hams and giving a $50 Christmas bonus. Councilmember Ellis said it is such a small thing in the whole of things and it pays dividends. Bruce Patterson suggested letting the management try to balance it as a group. The management feels that Lance needs the most help. Scott said allow the management to cut the $1.2 million and come back. Ron, Lee and Bruce will suggest having the management 8-7-2008 City Council Minutes Page 6 of 7 meet next Tuesday morning. Mayor Ard said that would be great if the management can do it. Councilmember Ellis stated he could support the building department if the department is fully staffed and functional and he can operate at 30% more and not increase staff and we need to increase the rates to maintain that level Councilmember Ellis would buy off on this. Councilmember Powell mentioned we could adopt a resolution to go into the County Fire District; it would also help solve the budget. Scott said but our service will be worse. Bruce, Ron and Lance think the department heads will try for Monday morning and then Tuesday, if necessary. Councilmember Bean asked the council when they are getting together. It will be scheduled for 2 pm Thursday. DISCUSSION ITEMS: 1.Work Session Time Schedule (Leslie/Lance): Councilmember Bean inquired as to the meeting date. Councilmember Thursday, it is. Thompson is trying to arrange for Thursday, 2 pm. 2. Bonneville County Landfill Issues (Lance): Issue was skipped. 3. Swales - Enforcement Direction (Brian/Shawna): Councilmember Powell presented the letter from Shawna. Leslie asked what we do when they ignore her. Lance has told them to present a written plan when they can make the payments. Shawna has sent out 40 – 45 letters. Ron explained some people don’t realize it is their responsibility to maintain it. Scott stated it’s always going to be a problem since in 15 years the swales will be full and they will have to dig it again. Due to the lateness of the hour, Councilmember Bean asked if we could hold this discussion at another meeting. 4. Misc. Lance talked about the bid award for the Hill Tank and booster station with the low bid coming in at $4,234,000. Councilmember Waite briefly discussed his Nampa Recreational meeting. He would like some time in the future to discuss it with everyone. Leslie showed the council the new utility tags she had created to put on the faucets. Leslie passed out the new employment application that Rachael has created and Scott has looked it over and approved it. Leslie told the council that Jane has suggested putting on a locking gas cap (approx. $5 each) on the City vehicles. Mayor Ard said if they tear them up then it would cost us more. The council declined doing this. Ron advised the Council when Arave presented his plat on Oakridge 2 there were four residential lots facing Curlew and they have submitted plans to build groups homes. Councilmember Thompson asked if it was for people unable to take care of themselves. Ron stated it can be for physically, mentally or elderly handicapped who can live there. EXECUTIVE SESSION: 1. Litigation Issues (Scott/Leslie/Ron): Councilmember Powell moved to enter into executive session pursuant to provision of Idaho Code 67-2345, subsection 1 (f). Councilmember Bean seconded. Roll call vote: Councilmember Powell – Yes, Councilmember Bean – Yes, Councilmember Ellis – Yes, Councilmember Thompson – Yes, and Councilmember Waite – Yes. The motion passed. The meeting adjourned at 11:59 pm. ______________________________________ C. Bruce Ard, Mayor ____________________________________ Leslie Folsom, City Clerk 8-7-2008 City Council Minutes Page 7 of 7