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07292010CouncilMinutes CITY OF AMMON CITY COUNCIL MINUTES THURSDAY, JULY 29, 2010 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA THURSDAY, JULY 29, 2010 – 7:30 P.M. CALL TO ORDER: Mayor Steven Fuhriman at 7:30 p.m. Pledge of Allegiance – Councilmember Coletti Prayer – Councilmember Thompson MINUTES: May 6, May 20, and June 10, 2010* ITEMS FROM MAYOR: CONSENT AGENDA: Business License* Accounts Payable – Exhibit A ITEMS FOR/FROM TREASURER: Reminder of Budget Review PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: PUBLIC HEARINGS: 2010-008 – Proposed Water Rate Increase* ACTION ITEMS: 1.Action - Public Hearing 2.Text Wire Proposal (Kirkham/Patterson)* 3.SCADA Control – Barry Hayes Construction Bid Approval (Lance)* DISCUSSION ITEMS: 1.DARE 2011 Contract (Bean) 2.Road Right-of-Way Weeds – Parks (Leslie)* 3.Ammon Days - Possible Philosophy Change (Slack)* 4.Ammon Days – Raffle (Jennifer/Leslie) th 5.August 5 Council Session Change of Date (Leslie) EXECUTIVE SESSION: 1.Personnel Evaluations - Idaho Code 67-2345 (1-b) 2.Real Property Acquisitions - Idaho Code 67-2345 (1-c) 3.Pending Litigation - Idaho Code 67-2345 (1-f) MINUTES City Officials Present: Mayor Steve Fuhriman Councilmember Dana Kirkham Councilmember Lee Bean Councilmember Rex Thompson Councilmember Brian Powell Councilmember Sean Coletti Councilmember Russell Slack City Clerk Leslie Folsom City Engineer Lance Bates City Planner Ron Folsom City Treasurer Jennifer Belfield Council Minutes 7-29-10 Page 1 of 11 City Officials Absent: City Attorney Scott Hall Mayor Fuhriman opened the meeting at 7:30 p.m. at the City Hall Building located at 2135 South Ammon Road. Councilmember Coletti led the Pledge of Allegiance. Councilmember Thompson led the prayer. Mayor Fuhriman stated that Ammon is our home and a great place to live. He feels we can come together and work through this challenge. We will honor and respect the constituents’ comments. MINUTES: May 6: Councilmember Kirkham motioned to approve the minutes, as presented. Councilmember Coletti seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Bean – Yes, Councilmember Powell – Yes, Councilmember Slack – Yes, and Councilmember Thompson – Yes. The motion passed. May 20: Councilmember Kirkham motioned to approve the minutes, as presented. Councilmember Slack seconded. Roll Call Vote: Councilmember Kirkham - Yes, Councilmember Slack – Yes, Councilmember Coletti – Yes, Councilmember Bean – Yes, Councilmember Powell – Yes, and Councilmember Thompson – Yes. The motion passed. June 10: Councilmember Kirkham motioned to approve the minutes, as presented. Councilmember Slack seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Slack – Yes, Councilmember Thompson – Yes, Councilmember Powell – Yes, Councilmember Bean - Yes, and Councilmember Coletti – Yes. The motion passed. Mayor Fuhriman read the procedurals for the public hearing. ITEMS FROM MAYOR: None CONSENT AGENDA: CITY OF AMMON BUSINESS LICENSE CONSENT AGENDA Thursday July 29, 2010 License applications, carrying the required documents, pending approval of the City Council: GENERAL BUSINESS LICENSE: 1.NEWGENERAL BUSINESS LICENSE APPLICATION: th A.Soapy’s Auto Detail – Auto Detail – 2525 E. 17 Street B.Fullmer, Annette L – Daycare Employee/Acorn Children’s Academy – 1619 Curlew Suite 2 th C.Promontory Point Rehabilitation, LLC – Skilled Nursing Facility – 3909 S. 25 E. th D.Gem Inc. dba Direct Automotive Distributing – Auto Parts Distributing – 2770 E. 14 N. th E.Crandall & Co. – Accounting – 3456 E. 17 Street, Suite 140 F.Acorn Children’s Academy – Commercial Daycare (13 or more children) – 1619 Curlew, Suite 2 th G.Valued Merchant Services – Credit Card Processing – 3544 E. 17 Street, Suite #207 2.RENEWALBUSINESS LICENSE APPLICATION: st A.Shoff, Nona – Daycare Employee/Nana’s Daycare – 2660 E. 1 Street th B.Parkinson Financial – Finance – 3456 E. 17 Street, Suite 270 C.Nature’s Path – Holistic Health – 1615 Curlew th D.Crackleberry Boutique – Retail Sales – 3160 E. 17 Street, Suite 170 th E.World Gym – Fitness Center – 939 S. 25 E., Suite 107 th F.Simpli Nature – Retail Sales – 3160 E. 17 Street, Suite #170 th G.S2M Developments, LLC – Property Development – 1546 N. 25 E. H.Club, Inc. – Supported Living – 1904, 1925 & 1930 Dakota th I.Intermountain Erectors, Inc. – Steel Erection – 1546 N. 25 E. th J.S2M Steel Detailing, LLC – Steel Detailing – 1546 N. 25 E. th K.TRC Fabrication, LLC – Steel Fabrication – 1552 N. 25 E. th L.East Idaho Credit Union – Finance – 3255 E. 17 Street M.Mountain Valley Assisted Living – Assisted Living – 3840 E. Sunnyside Road Council Minutes 7-29-10 Page 2 of 11 HOME OCCUPATION PERMITS: 1.NEW HOME OCCUPATION PERMITS: A.Creative Catering/Harris, Janae – Catering & Party Services – 3460 Owen Street B.Aspirations of the Spirit – E- Commerce – 1252 Ashland Drive C.Hobo Busters, Inc. – Pest Control – 3697 Windmill Drive 1.RENEWAL HOME OCCUPATION PERMITS: A.Marv’s Barber Shop – Barber Shop – 2955 Central B.K. Murdock Construction, LLC – Construction – 4029 Eastwood Circle C.Hotwire Electric, LLC – Electrical – 3000 Meadow Lane MISC: MASSAGE ESTABLISHMENT 1.RENEWAL MASSAGE THERAPIST BUSINESS LICENSE: th A.Thomas, Katelyn – Massage Therapist/Massage Envy – 3047 S. 25 E. th B.Anderson, Sara Nicole - Massage Therapist/Massage Envy – 3047 S. 25 E. Business License*: Councilmember Bean motioned to approve the business licenses, as presented. Councilmember Kirkham seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Slack – Yes, Councilmember Thompson – Yes, and Councilmember Powell – Yes. The motion passed. Accounts Payable – Exhibit A: Councilmember Kirkham asked about McAlvain Construction and if Tank 8 is still behind in scheduling. Lance said he is ok with the payment. Councilmember Kirkham motioned to approve accounts payable, as presented. Councilmember Slack seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Slack – Yes, Councilmember Bean – Yes, Councilmember Thompson – Yes, Councilmember Powell – Yes and Councilmember Coletti – Yes. The motion passed. ITEMS FOR/FROM TREASURER: Reminder of Budget Review: City Treasure Jennifer Belfield reminded the Council that the proposed budget will be on Sharepoint and she requested any comments and changes be submitted to her before the budget is to be approved. Councilmember Kirkham inquired about the vending at Peterson Park. Jennifer stated she is still working on it. Mayor Fuhriman advised the constituents that they must fill out a signup sheet, in order; to testify at tonight’s hearing. Each constituent will be allowed 3 minutes to speak, with 10 minutes for representatives. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: Karen Bradley, 2195 Quail Ridge Drive asked about the water testing date that was missed, per the flyer that was enclosed with the statements. Lance said yes, it was missed and it should have been tested once within the missed time period. Mayor Fuhriman again read the procedural for the Public Hearing. PUBLIC HEARINGS: 2010-008 – Proposed Water Rate Increase*: Councilmember Kirkham thanked everyone for attending the meeting. She reassured the public that no decisions have been made at this point. She stated she would like to bring everyone up to speed, on the subject, first. She stated that in 2005, the City of Ammon contracted with Schiess and Associates to conduct a water study, which revealed the City’s water system was aging, inadequate, and in need of repairs. It was suggested that the improvements would cost somewhere in the neighborhood of $15 million dollars, which was far more than the City had in reserves. In 2007, the City began a series of public information meetings. In February 2007, we had a special election asking for the community to support funding of the water project through a municipal bond. She stated the bond passed by 89% of the vote, upon which, the bond was secured for $15 million from DEQ at 3% simple interest over 20 years. At that time, the Council Minutes 7-29-10 Page 3 of 11 design and construction began. The project is now nearing completion and the bond will need to be paid starting October 2011. She asked City Engineer Lance Bates to go over the information. Lance went over the slide with all the water improvements of the water facility. The City has gone from a 3/4 million gallon storage capacity to a 4 million gallon storage capacity for general use, as well as, emergency situations. He explained the drinking water enhancements. In an emergency situation, the City can still pump water. The system has been looped throughout the City, which provides backup to areas that used to only have one way to receive water. He specifically mentioned how Woodland Hills is benefitting from the looping system. Councilmember Kirkham stated the City will have a payment $1,053,958 due October 1, 2011. The flyer that was distributed in the statements, explained the bond repayment. She explained the cost of the bond was divided by the number of users, which ends up at $19.27 per month JUST for bond payment. The blue sheet that has been published by law required we publish high rate increases, so we can adjust them down, because time is tight and adjusting them up would require another hearing. The rates shown helped ensure that we could make the bond repayment, as well as, the Operation and Maintenance. She explained Councilmember Powell will explain the proposed rates. Councilmember Powell asked how many of the constituents, which are present, have good water pressure today. There were several constituents that are still having issues. He asked as part of their testimony for the constituents to let the Council know which zone they are in, if they are testifying this evening. He showed the green sheet that showed the lots that are zoned RE, RP-A, and RP are the larger lots and, R1, R2 and other residential lots are the smaller lots. He explained how the fees were calculated. The only way to be fair and equitable would be to have a metering system. Councilmember Kirkham said Shelley, Idaho Falls, Rigby and American Falls are not metering, however the rest of the cities in the state are being metered. She talked about Ashton’s flat rate. The utility billing in Blackfoot said the average use in summer is between 20,000 – 30,000 gallons per month on a quarter acre lot. A half acre lot would be between 50,000- 60,000 gallons. The national average inside a home, for a family of four, is 6500 gallons. Most cities base their rate on 6500 gallons being used. She explained if you lived on a half acre lot in Blackfoot, you would be paying $71.49 per month for water. The City is putting meters throughout the neighborhoods to receive data for future decisions. She would like to hear the public’s comment regarding meters. Mayor Fuhriman opened the hearing. Jason Lance, 5020 Brendon Bend said he has concerns that the rates are not promoting conservation. He wonders if it is equitable for smaller families, singles or those on fixed incomes. Councilmember Slack said there are people with fixed incomes, but the difficulty is the City is not metered. There is no way for the City to individually pick out individuals, without metering. He talked about conservation and that we have an officer enforcing conservation and asked constituents to turn people in. Keith Morris, 125 Red Fox Drive read a statement, to which, the paper stated the water increase would be a $10 increase in the citizens rates. He was concerned from what was promised and what was delivered. With the economy, why wasn’t there more savings. He requested to have a citizen advisory committee to look into this project and let the citizens know within 90 days. Councilmember Coletti asked Lance to review Slide 6 showing how the increases should have been implemented since 2007. Lance said the flyer in 2007 talked about raising the rates every year, which never occurred. If they had raised it $5.25 in 2007, $4.75 in 2008 and continued in the same direction, we would have gathered up to date close to $1 million to be able to pay down the bond. Councilmember Coletti said this would have made our rate $38.25, if we had taken the raises incrementally and today we requesting $38.00. Robert Taylor passed. Lauri Ard passed. Elaine McGary, 3255 Meadow Lane said she is a senior citizen living on a fixed income and she is concerned on being able to afford the increase. She wanted to know if there is any break for seniors, especially a widow or widower who is living on a much smaller income. Councilmember Kirkham said they will take this into consideration; however when you give a break to anyone, then someone else has to pick up the difference. Council Minutes 7-29-10 Page 4 of 11 Judy Young, 2935 Oakhaven Circle said she met with the Mayor last week concerning her concerns. She supports the Council if they go with the rates posted in the paper, but not the flyer. The smaller units are raised more than the larger groups. Don’t raise one group more than the other. Councilmember Powell said the green sheet has tried to be more fair and equitable. Councilmember Powell asked Judy to clarify her statement. Judy said the single residences were raised more than 100% and the RP’s are not raised 100% and all requests should be raised equitably. Lorna Erickson, 2935 Meadow Lane has lived in Ammon her whole life and is a stay at home mom. She is against metering and has a growing family of six. Her water pressure is bad. She talked about the new homes and the use of the water system. She explained she has lived in the same house for the past 16 years. Councilmember Kirkham talked about metering and the Council wants to know what the citizens think. She explained Ammon still has a great rate. Lorna explained she is upset that they have to pay so much for a broken down system. Councilmember Kirkham explained we have a great system and it may just need to be tweaked in areas. Lorna talked about giving options to people when building, so they can have a well. Council explained it is not a City decision; it is a state statute which is out of their hands. Lorna inquired how far the City goes up on the hill. Council advised where the boundary lines are for the City. Councilmember Bean asked Lance to keep track of the low water pressure. Lance Walker, 3820 Ross Avenue said he has a bigger lot, but he has secondary water rights to water his lot. He is concerned about affording the water needed to keep his lawn weed free. Mayor Fuhriman asked if metering wouldn’t help him. Mr. Walker said yes, it would. He prefers not to be metered, because he would prefer to pay a fee to be able to use the water he wants. He is against the high rates just because Council didn’t start raising it incrementally each year. Councilmember Slack said wells don’t affect our drought or non-drought years. They are not being used as a reserve for a drought year, they are for City usage. One of the functions of the tanks is to provide water during emergency power outages. Lance said they have 4 million gallons of storage, but in the month of June the City pumped 175 million gallons. He explained if you went without water for a month, the tank reserves would not go far. Norma Anderson, 3450 Del Rio Circle asked why Idaho Falls was not listed on the chart. The rate in Idaho Falls for sewer, garbage and water is a total of $696 per year and Ammon would be $1080 per year. Councilmember Kirkham said the City of Idaho Falls has not made their upgrades. She has talked with Mayor Jared Fuhriman and he has stated they have to be looking at their sewer. There is an additional statement fee and electricity that helps subsidize the rates. Councilmember Powell said they also have critical mass, which helps disburse the rates. He explained if Idaho Falls made this water improvement, it would only have cost them $3.00 extra per month. Councilmember Kirkham stated we still have a bill to pay and each City Councilmember is each paying the increase as well. Councilmember Thompson said the tax rates are higher in Idaho Falls. Councilmember Kirkham said it is 4 times higher. Ammon taxes cannot be raised, as long as the populace doesn’t vote for it. Sherrie Walker, 2525 Hillam Drive said she didn’t want the new garbage cans or the new statements. She commented about Ameritel in the neighborhood and that our population has doubled. She would like to know what the commercial business are paying and would like to be it on public record. She asked about the current census and if the City has the new numbers. Councilmember Kirkham stated the numbers for the rate are based on users, not population and we have not received the new census numbers. Councilmember Kirkham said all commercial is metered. Sherrie stated she is also having water pressure issues and believes it is due to the houses on the hill. She stated she had a neighbor come over last week and asked her to turn off her water, so his wife could have pressure to take a shower. She complained that her garbage is never picked up on time. Councilmember Powell said the issue concerning the garbage cans was a matter of workmen’s compensation expenses and we had to go to an automated system to help with this. He explained we are trying to save on workmen’s comp and keeping our employees safe. Sherrie said it would have been nice to know. Councilmember Slack said you couldn’t put it on a postage card. It was discussed that the new statements have to meet privacy requirements by law, they cannot send out the postcards anymore. Jennifer said it is 1.75 cents for the paper, 2.3 cents for the return envelope, and 2.4 cents for the envelope. There have been several comments appreciating the return envelopes that are included with the statements. Councilmember Coletti talked about using online bill payment to help save the City money, as well. Leslie said the statement also allowed the City to increase the font size for the seniors to be able to read them. Council Minutes 7-29-10 Page 5 of 11 James Savage, 4340 Island Circle said his water pressure has stayed the same. He has a secondary water system. He asked about what the foreclosure houses are paying for. He thinks he has a meter on his system. It was discussed it is not being read yet. Leslie said the City is collecting the bills from the foreclosure companies. Leroy Hope, 1977 Ross Avenue said he has over an acre, uses the secondary water system and has to pay irrigation fees and City water. He would still rather be on the City system, than have his own well. His pressure is great on Ross and he is very happy with it. Jessica Lewis, 3270 Circle S said most of her concerns has been addressed and is feeling much better. She feels usage dictates payment. She would like to know how much it would cost to put meters in. Councilmember Kirkham stated we would have to do an estimate to get an amount. She explained throughout the City that any construction since the 1980’s includes meter pits, which simply require the meters to be added. She talked about a grant that had been proposed to get meters in, which at that time the total cost was estimated at $2-3 million. Jessica stated she appreciates the improvements the City is making, but would like to see them at minimal cost. Pamela Kirby, 1277 Shoreline Lane, Boise ID said she manages 64 units on Falcon Lane with restricted income. Councilmember Kirkham stated that this issue has come to their attention and the Council needs to address that situation. The rent is set and it can’t be raised. Councilmember Kirkham asked to speak with her after the meeting for more information. th Rick Hill, St. Anthony stated he owns a business in Ammon on 17 Street. He stated he has six units and is being billed as commercial and is not metered. It was discussed his tenants are professional usage. Leslie had advised him that he could look at rezoning to Professional Business. He pays $928 per month and the increase will be another $124 per month. This will be more than his taxes on the building. He has to pay the bill and the City won’t bill his tenants. He explained in 2003 he paid $375, in 2007 this went to $595, and now $928 in June. He stated he has offered to buy the meters. Councilmember Kirkham and Councilmember Powell would like to talk with him tomorrow at 9:00am. th Scott Gray, Soapy’s Car Wash 2525 E. 17 Street said he has seen improved water capacity. He would like to make sure how his sewer rates are figured. He uses 250,000 gallons a month, however, a house only pays $247.50 and he would pay $650.00. Commercial users pay substantially more than residential. He would like to see water meters, as quick as he can, to help conserve water. He had a conversation with Schiess and Associates who stated when meters are installed it immediately cuts 35% of the usage. Councilmember Coletti said meters are probably the answer for conservation. Emily Costelleci, 5397 Willowcreek Lane said her water pressure is poor. She lives on a half acre lot, where she just put in grass that conserves water with rocks in the park strip area. She will pay the same as those who don’t conserve. She stated commercial passes their increases onto the consumer. She talked about the option to have a statement, but not a return envelope. She explained Arizona has a seasonal rate. Councilmember Powell asked about her rate in Arizona. She used less, since her yard was hard landscaped. She stated she supports meters. Mel Richardson, 3725 Brookfield said he use to be the Mayor of Ammon. He talked about problems they had at that time with sand in the water and pollution in the home which affected the water and how much better the system is now. However, citizens have reached the end of what they can afford. He wanted to know if the Council had taken all the steps necessary to keep the rate down and if we are paying too much money for the houses on the hill. He waters a ½ acre of his 2 acre lot. Councilmember Kirkham said the City is trying to renegotiate the rate of interest for the water and also the sewer. She asked Mr. Richardson to call DEQ, as well, to assist with the City’s request. Councilmember Powell asked the audience how many people would be in favor of the meter system. Council stated it looked like a little over half. Then those not in favor raised their hand. Council stated it looked that “not in favor” was about a tenth of them. It was discussed meter expenses would be taken out of the reserves. It would not be an additional cost. Jill Miller, 390 Advantage Lane said she works with Snake River Montessori School and the increase in water will affect them. She would like to see a database created to handle homes with sprinklers, swimming pools, water rights, etc. to figure a rate for approximate usage. She wanted to know where the money goes from hookup fees from the growth and why hasn’t it been applied to the bond. She stated 89% of the vote passed the Council Minutes 7-29-10 Page 6 of 11 bond, but less than 12% voted. The economy is affecting everyone and this decision was made when the economy was booming and if the businesses go out of business, then who will pay the bill. She stated she has bad water pressure. Councilmember Powell addressed the hookup fees. He said the water connection fees are in their own fund and the hookup fees are in another fund. The State won’t allow the two to mix. This would probably be used to put in the meters. If you want fees to be fair and equitable, it would be through meters. If not, then you will leave the rate open and suggestive. Randy Gates, 2620 Stafford Cove said his water pressure fluctuates and feels Ammon is getting too expensive to live in. He would like to opt out of the garbage pickup. Council stated it is not an option, according to the ordinance. He has been laid off for 16 months and is living off his army retirement. He stated people are worried. He stated he feels government promises, but doesn’t live up to the promises. He suggested cutting pay increases. James Elg, 2912 Glen Cove Court said water is a necessity. He owns properties in Idaho Falls and he bought in Ammon, because it was less expensive. He feels Idaho Falls takes better care of the water, way better than Ammon. He wants to know why the improvements weren’t paid by new construction. He stated meters are a tax and what guarantee is there that it will lower the rate. Council said there is not a guarantee and you will pay for what you use. Councilmember Slack said there is a cost for water, with meters some people would go down and some would go up. James feels that would be fair. He talked about Ammon being unaffordable. He stated Hitt Road looks good on the Idaho Falls side, but not Ammon. Councilmember Bean said both sides belong to Idaho Falls, except for the portion (also on both sides) owned by EITC. Councilmember Slack stated that the developers do put in the costs for their improvements. Lance said they put in curb/gutter/sidewalks, water/sewer lines, and roads, etc. They pay for their development and the infrastructure to serve their development. Councilmember Slack said the hookup fees go into a reserve to pay for increased capacity. He stated the City increased connection fees, as well. Alan Obrey, 3195 Fennec Lane said the City did promise $10 a month. He expects the Council to be efficient and collect the money. He likes the idea of a citizen advisory board and would like to serve on it. The disadvantage to meters is that it is costly with maintenance and he is unsure if it is worth the cost. Councilmember Powell said the City should have started to collect the money back then. He explained the fees we have collected were not enough. Alan said you knew what your bond was and you should have projected it. Bryce Anderson was not present. Marsha Yeary, 2279 Princess Drive said she has lived here for 11 years and moved here, instead of Jackson Hole, since it was much less expensive. Jackson decided they needed meters and the costs keep rising. She is not in favor of meters. She stated she has an extra garbage can and it is $10.00 extra a month. Councilmember Kirkham said the cost is for the dumping of the garbage and we are metered by the County. Paula Loveland, 2795 Romrell Lane said she understands this was voted for. She is concerned in the lapse of accountability of the rates not being raised. She is in favor of an advisory committee, as well. She would like to see us bump the payments out. She is not in favor of metered water, since she feels it will go up and up and up. This increase is a double whammy with the sewer increase last month. She inquired about the promised grant money. Councilmember Kirkham stated we did receive the grant money, but we have had increases in construction. The grant money was applied to the sewer. Paula asked about if we were on budget for these projects. Councilmember Kirkham stated we are on budget with the water bond, but sewer was not and they have been addressing that. The Council is looking at applying for additional Army Corp. funds. Bruce Brooks, 4320 Mirinda said he understood the City had gone out for a water study. Councilmember Kirkham said Schiess and Associates conducted the water study, and constituents are welcome to look at it, and it is about 3000 pages. Bruce asked if it includes the subject of water meters. Councilmember Kirkham said it was paid for in 2005 and was budgeted for. Lance stated that Keller and Associates made a small meter study this year. Bruce asked if the water increase is supporting the sewer. Council said no, the two shall never meet. He is not in favor of meters. He regrets the increases didn’t happen every year and hopes the increase Council Minutes 7-29-10 Page 7 of 11 will be as minimal as possible. He inquired if the Council knew if there was a plan from previous members. Council explained this is the fruition of the plan. Karen Anderson, 755 Tiebreaker said when she was on Council – the Councilmember’s did not pay for water. Council said today they all pay. She was in favor of the bond and thought the Council agreed it would be $10 with a cost of living increase. She didn’t understand that it was to be the same every year. Councilmember Kirkham stated that this was new to them and would like to understand what Karen was saying. Karen stated she thought the plan was to have an increase of $10 over a couple of years and then small incremental cost of living increases, thereafter. She thinks the Council should cut areas, since they slacked off. She supported the correction to the water system, since we had several issues. Karen asked what is in reserves. Council said $6 million dollars. Karen asked why aren’t we using this to pay it back? Council pulled up the slide showing what $1 million would do to pay back on the rates. Councilmember Coletti said it would amount to $6 per month to spend the entire $6 million reserves. Councilmember Powell said the Council is trying to be fair and equitable to those on fixed incomes, versus those who have a half acre lot – metering is the way to do it. It doesn’t mean it would reduce the rate, but it would be fair and equitable. To use up all of the reserves, is it worth $6? The Council can cut costs by reducing pickup trucks, equipment and personnel in the City. Councilmember Slack asked Karen how the Council came up with the $10 fee. She didn’t know. Councilmember Kirkham said the flyer they put out said it would continue every year. Councilmember Slack said with 3500 users to cover $15 million, which was listed on the flyer, the equation doesn’t work out to $10 per month. Karen stated she did support the bond at the time, but was not on Council at the time the flyer was written. Teresa Hancock, Eastridge Apts., 1378 Curlew said she is supporting metering, which is a more equitable method. The units are one bedroom, studio apartments. Pepperwood has two bedroom apartments and pays the same rates. The sewer increase was $792 per month and now the water increase will be the same or more. They are trying to save up for retirements with the apartments and might have to lay off their manager. This increase will increase their vacancy. They live in Ucon with meters and feels it is fairer. They have secondary water rights there. She didn’t get to vote on this, since she lives in Ucon. Brad Christensen, 3600 S. Founders Point said he is in support of meters, but he is against the proposed metered rate. He is also representing Founders Point Homeowners Association. They are blessed and cursed with a beautiful landscape section. Their bill for the summer is close to $4000.00. They will be forced to find ways to irrigate differently, if this rate goes through. The Association might have to let the summer sun destroy the landscape. He wants to consider amending Ammon City Code #8327 which enables the Superintendent to begin metered service on an entity or individual, at will, by adding language that accounts for a fair and equitable way to bill constituents. Councilmember Powell stated we are working on the situation of other subdivisions being metered. Council hopes to have a resolution within 10 days on these landscaping strips. Brad made a last comment that he feels Ammon water users should share the cost of capital improvements proportionately by connection, and share the ongoing cost of operation and maintenance proportionately by usage. Bryce Anderson was still not present. Mayor Fuhriman closed the public hearing. ACTION ITEMS: 1. Action - Public Hearing: Councilmember Kirkham motioned to table action on the public hearing until Council can meet at a work session to discuss the comments that have been made and look at the numbers a little closer. Councilmember Bean seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Slack – Yes, Councilmember Coletti – Yes, Councilmember Thompson – Yes, and Councilmember Powell – Yes. The motion passed. A 10 minute recess was taken. Session resumed at 10:12 p.m. Councilmember Kirkham asked about th making the August 12 meeting a regular session and August 19 a work session. It was discussed to have a work session meeting on August 9 at 5:30 p.m. Leslie cautioned about holding the meeting on another day of the week besides Thursday. It was discussed that Monday, August 9 will be a work session for water only at 5:30 p.m., August 12 a regular meeting at 7:30 p.m. with an action item to change the time from 7:30 p.m. to 7:00 p.m. for all Council Minutes 7-29-10 Page 8 of 11 meetings, and August 19 will be a regular session. Councilmember Bean asked all the Councilmembers to bring their best thoughts. He asked the Council to remember the low income apartments for Eastridge. Councilmember Kirkham stated the lady said there is a possibility of the City getting a tax break for low-income subsidies. She will find out more from the contacts given to her. 2. Text Wire Proposal (Kirkham/Patterson)*: Councilmember Kirkham said we have the opportunity to pay half this cycle and half next cycle. When the pump was down, Councilmember Kirkham came back with many messages concerning the issue. They can hit the entire City with a phone call to handle positive issues like Ammon Days or the urgency issues like water is out in this area. It is the same thing that the school uses. Lance said there are 100,000 calls under the contract. Councilmember Bean asked what the cost was. Bruce Patterson said it was $7000 per the 100,000 voice messages with the set up fee of $750. Councilmember Kirkham said the calls don’t expire. Councilmember Bean asked if now, is the time to pay for it. Councilmember Kirkham said the savings are on manpower. Council said it really wasn’t a cost in manpower. Ray said it cost him an additional 30 minutes in phone calls. Councilmember Kirkham motioned to deny the text wire proposal. Councilmember Bean seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Coletti – Yes, Councilmember Thompson – Yes, Councilmember Slack – Yes, and Councilmember Powell – Yes. The motion passed to deny text wire, at this time. 3. SCADA Control – Barry Hayes Construction Bid Approval (Lance)*: Lance said we have received the bids for the SCADA building with Barry Hayes Construction as the low bid. He explained the alternates - #1 included a storm drain pond, rough grading and fill for the road (road would not be paved). Alternate #2 curb and gutter, striping/signing. The base bid included the building, alternate 1 included the base with gravel, alternate 2 added the parking lot for the building itself. Lance received a price for the hard road that we would request of other developers. The total bid would be $1.5 million. Lance said it is now a private road, but it will be a public road and it will improve as Rockwell develops. Lance said the money came from SRF loan and a large portion from this year’s budget and some of next year’s budget. Councilmember Bean asked what about the revenue shortfall. Lance said that will hurt us, but he is not sure how it will come out. Lance stated it was close to $500,000 from this year’s budget out of multiple lines on the budget. Councilmember Bean stated he is okay with it, as long as, we do not go over budget. Ray said it’s not only from on line; it is also from water/sewer/sanitation/streets of this year’s budget and next year’s budget. Councilmember Kirkham said she struggles with making an exception for the requirements of development for the City and not the developers. We have been committed to this building and we need to do it right. Councilmember Bean asked if we appropriated reserves, as well. Jennifer stated she believes we did. It was discussed it was appropriated for. Councilmember Bean asked when we will know we need the excess property for Justesen’s. Councilmember Kirkham said Lance is concerned that giving away the footage would hurt a future building. Councilmember Kirkham motioned to approve the SCADA Control bid for Barry Hayes Construction and authorize the Mayor to sign it, Alternate 1 and 2 and the final road for an approximate total of $1.5 million. Councilmember Bean seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Slack– Yes, Councilmember Coletti – Yes, Councilmember Thompson – Yes, and Councilmember Powell – Yes. The motion passed. DISCUSSION ITEMS: 1. DARE 2011 Contract (Bean): Councilmember Kirkham said she is opposed to the City paying for DARE. Councilmember Bean is also against it. Councilmember Kirkham feels it is a school district program that should be paid by the district. Council discussed that the budget cuts are forcing this issue. Councilmember Powell wondered how the City benefits from it. Councilmember Coletti said it’s not the City’s decision to get rid of DARE, just that we can’t fund it. Councilmember Bean will go back to Sam and advise him. 2. Road Right-of-Way Weeds – Parks (Leslie)*: Leslie stated this issue needs to be decided, if this is a Parks issue or a Public Works issue. Ken has certification to be able to spray the weeds; however, Lance doesn’t Council Minutes 7-29-10 Page 9 of 11 have the certification to spray. She talked about the cost from the County, which was $15 an acre to handle this matter. If we have the County spray, then Public Works could handle them. If Parks does it, we will need more equipment and we will still have to pay for the chemical. Council discussed Ken had been doing it in the past with current equipment. Lance stated Ken did not have the amount for the chemicals. Councilmember Powell said he doesn’t feel the City can get it cheaper than $15 per acre. Councilmember Slack said Ken doesn’t want to do it, since he doesn’t think it is a Parks issue. Ron said Ken brought to the Council a document for this issue, but he feels Council told him no. Council said to have Ken, Lance and Ray work it out and put it in the budget. 3. Ammon Days - Possible Philosophy Change (Slack)*: Councilmember Slack asked if the Council received his email concerning raising additional funds, or the City will have to shrink Ammon Days to just breakfast. We need to bring in additional revenue and he proposes to have non-food vendors be allowed to sell t- shirts, bags, art, etc. Councilmember Kirkham would like to have an event where if the constituents don’t want to spend money they don’t have to, but if they do then they can. Councilmember Slack said we could get rid of snow cones and allows booths. Council discussed about providing just breakfast and dinner. Councilmember Coletti said maybe just provide the entertainment and allow food vendors to come in for a cost. Councilmember Slack said Rigby or Ririe had an event and nothing was free. Leslie said this is what set us apart. Councilmember Slack said free food and entertainment can possibly be sustained. Councilmember Bean asked how much the charge was for booths. Councilmember Slack said $100 for an informational only booth and $250 for a booth that sells products. Councilmember Bean said this might counteract the mobile vendor license, which will need to be waived during this event. Ron suggested that the Ammon Day booth fee include the mobile vendor fee. Jennifer said last year the booths were $25, $50 and $100 and this year we upped the costs and with that level advertising was included. Council said we would have two costs – with and without food. Jennifer said you can’t change it this year. Mayor Fuhriman said you will make a lot of businesses unhappy with this last minute change. Councilmember Slack said he can field this. Jennifer said we are only $1100 short and she doesn’t feel the change is worth it. The City will need the sales tax permits. Jennifer asked about a few items for the budget. Councilmember Kirkham said to take off the Museum of Idaho. Jennifer asked about adding items for Ammon Days that normally would have been rented, but Ken would like to purchase it. Councilmember Coletti said the equipment won’t be purchased this year. Council said Ken can’t add this late into the budget, since there hasn’t been time to analyze it. Jennifer said the concessions will make a profit. Councilmember Bean said if he has offsetting revenues, then he doesn’t have a problem. Councilmember Slack said Ken will have to look mid-year to see that this is done or cut it. Councilmember Bean asked if now is the time to step out and buy a new truck, or hire an additional employee for the technology department. Jennifer said we absolutely need the help and there have also been other options for the truck. In the building department they have vehicles, so we would use one of the building trucks for technology. The technology value would be what was on the City’s books, but Charlie wanted it based on blue book. Councilmember Bean said a non-cash entry. Jennifer said the City doesn’t buy at retail, which is where the NADA is valued. Ray said Charlie wants it to pay for part of his IT costs. Councilmember Powell said there’s a truck that’s not being used and it belongs to the City of Ammon. Councilmember Slack said Council gave Charlie the money to buy the truck. Councilmember Powell said a lot of the money was from the building permits. Bruce said the larger issue is if you want to invest in fiber or broadband. Councilmember Bean said its total budget and he knows he fought him on this. Councilmember Bean will work with Jennifer on this. He might look at putting it into the reserve budget. Bruce said we can buy a new truck for $16,000 and Charlie wants to sell it for $12,000 and it’s a 2006. He said tonight was painful for the staff also. These services won’t happen, if he can’t increase the staff. He needs help. Jennifer needs a policy decision on the value transfer. Jennifer recommends that the transfer is at the depreciated value from the City asset books. Council agreed to take Jennifer’s opinion. Council complimented Jennifer, Lance, Bruce, Ron, Leslie and Ray on how much they do for the City in a sometimes thankless job. Leslie thanked the Council for their compliment to the staff. 4. Ammon Days – Raffle (Jennifer/Leslie): Jennifer said there will be a punch card to go to all of the booths and the completed punch card will win a 50” screen TV. Councilmember Slack said they are wondering if the employees can participate in the raffle. Council said no for the employees, nor immediate families. Ron said they aren’t making a contribution, so he thinks it’s not gambling. Councilmember Kirkham said please make sure it says donated by Biolife. Council Minutes 7-29-10 Page 10 of 11 Jill Miller, 398 Advantage Lane said they hold raffles every year. Basically, if you buy a chance to win, it falls under sales tax on the amount. Since there is not a charge, it doesn’t fall into the same category as gambling. She thinks you have to do a 1099 and if it is more than 600 times the wager (W2G) to send to the federal government and state. Mayor Fuhriman asked about the employees working at this event. He asked if there are any problems giving the employees’ time off on another day. Council discussed that employees that are required to be there, will need to be paid overtime. Those employees just coming to enjoy the day will be doing so voluntarily. th 5. August 5 Council Session Change of Date (Leslie): This was discussed earlier. th 6. Misc.: Councilmember Kirkham said IBSD would like to meet August 5. Council said they won’t be able to make this date. Mayor Fuhriman will write John Price back, since most of the Council is gone. st Council discussed September 1 at 4:30 pm at the IBSD office. Councilmember Powell said it has been communicated that the City is behind schedule with the regional. Mayor Fuhriman will take care of this. Councilmember Coletti said he is going to meet with the folk dance festival to see about joining Ammon Days. Their festival always ends on the Ammon Days schedule. He will find out more information and let the Council know. Jennifer said the dunk tank is coming. Councilmember Slack and Councilmember Coletti will be willing to be in it. Scott said the only people who can be in it are City employees or sponsors, since they know what they are getting into. Please wear a name tag for this event. She asked the Council to stop by to get their t-shirts. EXECUTIVE SESSION: 1. Personnel Evaluations - Idaho Code 67-2345 (1-b) 2. Real Property Acquisitions - Idaho Code 67-2345 (1-c) 3. Pending Litigation - Idaho Code 67-2345 (1-f) Councilmember Coletti motioned to adjourn the meeting. Councilmember Slack seconded. Roll Call Vote: Councilmember Coletti – Yes, Councilmember Slack – Yes, Councilmember Thompson – Yes, Councilmember Powell – Yes, Councilmember Kirkham – Yes, and Councilmember Bean – Yes. The motion passed. The meeting adjourned at 11:23 p.m. _____________________________________ Steve Fuhriman, Mayor __________________________________ Leslie Folsom, City Clerk Council Minutes 7-29-10 Page 11 of 11