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01202011CouncilMinutes CITY OF AMMON CITY COUNCIL MINUTES THURSDAY, JANUARY 20, 2011 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY OUNCIL AGENDA C THURSDAY, JANUARY 20, 2011 – 7:00 P.M. CALL TO ORDER: Mayor Steven Fuhriman at 7:00 p.m. Pledge of Allegiance – Councilmember Kirkham Prayer – Councilmember Bean MINUTES: Jan 6, 2011* ITEMS FROM MAYOR: CONSENT AGENDA: Business License* Accounts Payable – Exhibit A ITEMS FOR/FROM TREASURER: PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: (5 Minute Limitation)* PUBLIC HEARINGS: None ACTION ITEMS: 1.Change Order #4 – SCADA Building (Lance)* 2.Forsgren Report – IBSD Liabilities for Line 3.Concession Approval – McCowin Park (Leslie)* DISCUSSION ITEMS: 1.Fiber Ordinance (Powell/Patterson)* 2.City Code Changes (Ron)* 3.Easements EIRWWA Update (Lance) 4.Water Right Transfer Update (Lance)* 5.Misc. 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 Lee Bean Councilmember Dana Kirkham Councilmember Brian Powell Councilmember Sean Coletti Councilmember Russell Slack City Attorney Scott Hall City Clerk Leslie Folsom City Engineer Lance Bates City Planner Ron Folsom City Treasurer Jennifer Belfield City Officials Absent: Councilmember Rex Thompson Council Minutes 1-20-11 Page 1 of 10 CALL TO ORDER: Mayor Steven Fuhriman opened the meeting at 7:03 p.m. at the City Hall building located at 2135 South Ammon Road. Councilmember Kirkham led the Pledge of Allegiance. Councilmember Bean gave the prayer. MINUTES: Jan 6, 2011*: Councilmember Kirkham motioned to approve the minutes for Jan. 6, 2011, as presented. Councilmember Powell seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Powell – Yes, Councilmember Slack – Yes, Councilmember Coletti – Yes, and Councilmember Bean – Yes. The motion passed. ITEMS FROM MAYOR: Mayor Steve Fuhriman advised the Council of the meetings he will be attending this month, which are Jan 27 in Boise for the AIC Day on the Hill, Feb 9 in Boise for the group health insurance thth meeting and the Bonneville County Centennial Group will be starting their 100 year on Feb 7 at the Courthouse at 7 p.m. He has talked with Mayor Jared Fuhriman and they have given two options for the meeting on the Hitt Road thrd Memorandum of Understanding. He asked the City Council if either Feb. 16 or Feb. 23 would work. The rd Council decided Feb. 23 would work best at 6:30 p.m. at the City of Ammon office with participation by Councilmembers only. This is an open meeting, but the only participants will be the Councilmembers of both Cities. Mayor Steve has discussed the Target issue with Jarin – attorney for the flood control and Chris Fredrickson, the City of Idaho Falls engineer and asked if he can meet with them. Councilmember Slack wants to be at the meeting also, since he has been talking with the Woodbury Corp., as well as, Target’s corporate executives. th Mayor Steve asked Councilmember Slack if he could meet Jan. 24 at 1 p.m. at Jarin’s office. Councilmember Slack concurred. Councilmember Bean asked if the City would want our attorney there with the flood control attorney. Council decided that it would be alright to not have the City attorney there, since it is a brainstorming meeting only. Mayor Steve said he will have Lance there to help discuss the options and a proposal for an exit point from the shopping mall. Council agreed to the meeting. CONSENT AGENDA: CITY OF AMMON BUSINESS LICENSE CONSENT AGENDA January 20, 2011 License applications, carrying the required documents, pending approval of the City Council: GENERAL BUSINESS LICENSE: 1.RENEWAL GENERALBUSINESS LICENSE APPLICATION: th A.Aspen Ridge Eye Care – Optometry – 3456 E. 17 Street, Suite #150 B.Liberty Square Beauty Salon – Salon – 2475 S. Ammon Rd. C.Liberty Square Retirement – Retirement Living – 2475 S. Ammon Rd. D.Idaho Desperado’s, LLC – Retail Commercial Gun Shop – 3890 E. Sunnyside Rd. th E.Ammon Medical and Urgent Care, PLLC – Medical Office – 3456 E. 17 Street, Suite #125 th F.Floyd Insurance Group – Insurance – 3380 E. 17 Street th G.Carpet Mart – Retail Sales – 1572 S. 25 E. th H.Sundae’s Eats and Treats – Restaurant – 2489 S. 25 E. th I.Frito Lay – Retail Sales – 2582 E. 14 N. J.Vance, Dr. Carol M.D. – Pediatric Neurology-Medical Center – 1619 Curlew, Suite 6 HOME OCCUPATION PERMITS: 1.RENEWAL HOME OCCUPATION PERMITS: A.Treasure Denture & Ortho Lab – Dental Lab – 725 Tie Breaker B.Henriksen, Butler Design Group – Design – 3560 Rich Lane C.American Yellowstone Claims Service – Collection Services – 3897 Taylorview Lane D.C & G Classic Mustang – E-Commerce – 3155 Owen Street E.Eagle Mountain Marketing – E-Commerce – 2855 Sawtooth F.B & L Flags – E-Commerce – 3075 Devonwood Council Minutes 1-20-11 Page 2 of 10 CHILDCARE/CHILDCARE WORKER LICENSES: 1.NEW CHILDCARE LICENSES: A.Martin, Kari Ann – Childcare Employee/Acorn Children’s Academy – 1619 Curlew, Suite 2 st B.Ficarra, Hannah – Childcare Employee/Lighthouse Montessori – 2664 E. 1 Street C.Bukar-Sakan, Ladi Lynn – Childcare Employee/Acorn Children’s Academy – 1619 Curlew, Suite 2 st D.Pierson, Elizabeth – Childcare Employee/Snake River Montessori School – 2970 E. 1 Street 2.RENEWAL CHILDCARE LICENSES: st A.Ferguson, Afton – Childcare Employee/Snake River Montessori – 2970 E. 1 Street st B.Stewart, Nichole Marie – Childcare Employee/Nana’s Daycare – 2660 E. 1 Street st C.Imberi, Emily – Childcare Employee/Lighthouse Montessori – 2664 E. 1 Street LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: 1.NEW LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: th A.Young, Roni Lyn – Bartender/Firehouse Grill – 2891 S. 25 E. 2.RENEWAL LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: th A.Jet Mart #2 – Retail Sales / Beer & Wine Sales off Premise - 125 S. 25 E. th B.Anderson, Scott Wade – Bartender / Firehouse Grill – 2891 S. 25 E. th C.VanLeuven, Lacy – Bartender/Firehouse Grill – 2891 S. 25 E. MASSAGE LICENSE: 1.NEW MASSAGE LICENSE: th A.McDonald, Teagan – 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 Slack – Yes, Councilmember Powell – Yes, and Councilmember Coletti – Yes. The motion passed. Accounts Payable – Exhibit A: Councilmember Powell asked about the Rocky Mountain Power Environmental bill and if there were enough water rights to offset the cost. Ron said if the City had purchased them, the cost would have been more. Lance said it is approx. $10,000 per CSF and he doesn’t feel it is too far off. Councilmember Bean asked about the flow charges from the City of Idaho Falls and why the cost is up. Jennifer said the sewer rate raised approx. 20 cents per 1000 gallons. Councilmember Kirkham motioned to accept the accounts payable, as presented. Councilmember Slack seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Slack – Yes, Councilmember Coletti – Yes, Councilmember Bean – Yes, and Councilmember Powell – Yes. The motion passed. ITEMS FOR/FROM TREASURER: Jennifer said a draft has been received from the job study and inquired who they would like to be present at the meeting where the results are explained. Councilmember Kirkham said the Mayor and one Councilmember, which will be either Councilmember Thompson or Councilmember Kirkham. Jennifer said the staff will also be there. It is scheduled for February 3rd after 11:30 a.m. She has put the financials in the Council’s files. Councilmember Powell said we are heavy on the State Diversified Bond Fund and asked how she proceeds when they expire. Jennifer said she calls and checks the rates and if the accounts are collateralized, then she decides where to put the money. Councilmember Bean said half of it is being pulled this week. Jennifer said Dec. was at 3.018%. She asked Council when they wanted to discuss the financials. Council said have it ready and distributed for the work session and if it is a month behind, that is fine. Councilmember Bean asked Jennifer why the salaries are higher for the quarter. Jennifer said it is because the City pays bi-weekly, which makes 26 pay periods and it is heavier in the first quarter. Councilmember Bean asked about the flow charges posted on November and wondered where Octobers were. Jennifer said it was put into the prior year. Councilmember Powell asked if it was an accrual or cash basis. Jennifer said through 9/30 we accrued everything and then we switched and it has been a cash basis since then. Council Minutes 1-20-11 Page 3 of 10 PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: (5 Minute Limitation)*: None Mayor Steve realized that Dale Sommer had missed this section and asked if he had an item to enter into record. Dale Sommer, 3320 Molen, said he built a house in 1971. At that time, the guy that was over the water was named “Williams” and he had him bring the water into the house. Four years later he added a shop addition and the Mayor, at that time, told him he could not put a wall up, because a curb will go in there. Mr. Sommer said he told the Mayor they can take it down when they put the curb up. He stated he got water to come into the shop via a second line, because the Mayor at the time told him he could. He has not ever paid one thing for hooking into the water system in more than one location for forty some odd years and now he has a bill and wants to know why. Councilmember Bean asked if he has two water lines. Mr. Sommer said yes. Councilmember Bean stated to look at it as he got 40 years free. Leslie advised that he has been paying for two lines since 2007, because he has had tenants and now he has just taken over the bill so he is now paying it. He stated he hooked on in the middle of the street and all those years he has not paid anything additional for it. He stated the water was shut off in November and all it ever serves now is his lawn. It was discussed he shut it off himself. Councilmember Powell asked if he plans on turning it back on in April or May. Mr. Sommer stated “yes”. Councilmember Powell stated he has two connections in the City and everyone in the City pays a fee for every single access to the line. He would like to know why Mr. Sommer feels he shouldn’t have to pay for two connections when everyone else does. Mr. Sommer stated he hasn’t paid for it before. Councilmember Powell stated there are errors that get corrected over time. Mr. Sommer stated he would like to know anyone else it has happened to. Councilmember Powell stated they have had a few. Mr. Sommer used some semi-vulgar language. Councilmember Bean said if Mr. Sommer wants to speak this way, he will be requested to sit down as the conversation will be over. Mr. Sommer asked what Council plans to do about his situation. Councilmember Bean stated the answer is he will be charged for two water lines like everyone else. The Council suggested removing the second water line. Councilmember Bean said the Council can permanently shut off the line. Mr. Sommer stated he has already shut it off. Council stated it does not have a permanent shut off, if he can turn it off and on himself. Mr. Sommer spoke about the church across the street and a new line put in and it had to be dug up a few times. Councilmember Bean stated that is another issue for another time. Councilmember Bean clarified that he won’t be able to use the line any longer, if the City shut’s it off. Mr. Sommer said that is great. He also talked about the people now parking improperly at the old City Building. Councilmember Bean asked Lance to take care of that. He stated some of the equipment trucks run from 7:30 in the morning until noon. Councilmember Bean stated it does not affect him, at this point and time. He told Mr. Sommer to take it up with Lance and that the Council meeting is not the appropriate time to do this. Mr. Sommer said he can’t hear the Council when he is sitting in the front row. Councilmember Bean clarified again the City will put in a permanent shut off and he won’t have access to it in April to water his lawn. Mr. Sommer said you didn’t understand me. Mr. Sommer showed where the line is. He stated he paid for the hookup and everything. He talked about what “Williams” had told them. Council stated they cannot speak for the Mayor at the time or Mr. Williams, everyone is new here. Councilmember Bean said here’s the whole thing, you have one line for your culinary and another for your sprinklers and asked if that is correct. Mr. Sommer said correct. Councilmember Bean said you will have two charges, until such time as you ask for a permanent shut off. He told Mr. Sommer he will have to sprinkle from his culinary line and does he understand that. Mr. Sommer stated yes. Council stated to let the record show that he requested the sprinkler line to be shut off. Mr. Sommer said he has given permission to permanently shut off his line. Council gave Lance permission to shut off the line, as soon as possible. Council wants to make sure Mr. Sommer understands what is happening by presenting it to him in writing. Lance will prepare a letter reiterating the discussion and having the Mayor sign it and hand deliver it to him. Council stated to reiterate in the letter what Mr. Sommer requested and to still give him the option to pay for two lines. Councilmember Kirkham suggested sending Ray to deliver the letter. PUBLIC HEARINGS: None ACTION ITEMS: 1. Change Order #4 – SCADA Building (Lance)*: Lance said part of the change is the pipe bollards that surround the roll up doors for $454.33 and they changed the fascia board for $1463.96. They decided to drill holes in L brackets so they could mount the fascia to the concrete, which cost $674.22 for approx. 400 holes. The bat insulation was changed to a “blow in” in the ceiling and walls, which added $476.24, and the contract time was Council Minutes 1-20-11 Page 4 of 10 increased. Lance said originally they requested 27 days, but Lance went back and had them take several days off so now it is 19 days. The change order increases the contract amount by $3068.75 and the contract time by 19 days. Councilmember Powell motioned to approve the Change Order #4 and authorize the Mayor to sign it. Councilmember Kirkham seconded. Councilmember Powell – Yes, Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Bean – Yes, and Councilmember Slack – Yes. The motion passed. 2. Forsgren Report – IBSD Liabilities for Line: Husk Crowther, Forsgren Assoc, Rexburg, said he would be happy to answer the Council’s questions. Councilmember Kirkham asked about the invoice with the Duramax pipe and wondered if it was paid before. Husk said no, they just locked in the price. Councilmember Kirkham asked about an update on the easements. Husk said all are done, but one. He stated next week the last document should be signed and delivered to Leslie. Councilmember Kirkham asked about an update on Segment C. Husk said Segment A is essentially complete, except for a change order that Bingham County is handling. Segment B is approximately 73% complete and the 42 inch pipe is approximately 50% installed. Husk asked if Segment B has any change orders yet. Lance said they talked about a number of them, but they have not been processed yet. He stated Segment C has the design documents. He stated they have had some clarification in regards to timing on the project. The message they received today was to go ahead and get it bid and then start on construction. Husk said they should get the bid, but not close out the loan until towards the end of the year. Councilmember Kirkham said the Council needs to decide, if we increase the loan or not and get it finalized. She stated they need to decide whether to pay it off in 20 or 30 years. Scott Hall said the vote approved 30 years and the Council hasn’t decided which way to go. Husk said that Willie said that DEQ moved forward with the legislature that would allow 30-year loans this session. Councilmember Powell asked about the $9 per month O&M that is going to the region and if it is enough to cover it so far. Husk said when we started operating the plant last April the construction dollars ran out and we had to use operation dollars until November. That was covering the expenses to that point. Husk said there are extraordinary expenses, i.e. ICRMP, and it is more than was anticipated from the budget. He talked about other items on the budget they haven’t touched. Councilmember Powell asked if the City of Ammon is footing the entire bill. Husk said no – it may look that way, but Shelley has been paying since January. Councilmember Bean said the region uses the $9 to pay the expenses and the City of Ammon pays everything left over, but this will not equate to the $9 right now. Leslie said Shelley’s participation is approximately $13,000 to $14,000. Councilmember Slack is concerned about our ERUs and what we pay. Councilmember Bean said we know our ERUs are 4600, which is about $41,400. Jennifer said the concern is we aren’t even paying for the sewage. Councilmember Powell said if we subtract our ICRMP bill we would be paying approximately $36,000. It was discussed what portion of the ICRMP bill was paid by Ammon. Councilmember Bean said this is a very good question and if we are paying more than our share, then we will need a credit next month. Councilmember Powell said it’s not prorated every month, but in a lump sum. Councilmember Powell said it depends on how the ICRMP bill is billed. Husk explained the differences in payments. Husk stated there is no overage. He talked about postponing the bill with ICRMP. Councilmember Slack asked how we got to this point. Councilmember Bean said this is the first time this has happened. Jennifer said they might be stocking up on items, such as 3000 gloves. Leslie said the propane was a lump sum. Councilmember Powell asked if the bills are coming into the Region and split between Shelley and Ammon and asked what the Counties are contributing to be a member on the board. Husk said it is run off a revenue stream, not a tax. The County doesn’t have any customers, except the ones at Exit 113. There is about $2000 per month that comes into the Regional Authority. Councilmember Powell stated he does not see the contribution on the statement reflecting that. It was discussed “Janice” is handling it. Councilmember Bean asked Jennifer if she has received any financials for the Region. Jennifer said no. Husk stated Janice has emailed those statements out. Councilmember Bean said the City can pay the flat ERU rates. Councilmember Kirkham said what if the Region doesn’t have enough funds. Councilmember Bean said they would have to come back. Councilmember Bean said he didn’t want to begin paying the ERUs, since we would be paying more than what the bills have been. He talked about the $38,000 being a one-time occurrence. Council asked Councilmember Bean to go to the Region and state Ammon will be paying our portion of the ERUs. Councilmember Slack said it would be nice to build up your savings account a bit, but the City could build up their own savings account and only pay what was necessary. Jennifer said ICRMP will accept payments, instead of a lump sum. Councilmember Kirkham said the City doesn’t mind paying the overages, except for areas paid in one lump sum. Councilmember Powell said we need to keep in mind we are still paying Idaho Falls for the flow charges increase. He stated it should be allocated as a budget item for around $2500 for a month. Councilmember Bean asked if the Council wants the Region to prorate it the next month. Council agreed. Council Minutes 1-20-11 Page 5 of 10 Councilmember Bean feels it needs to be pro-rated. Husk said there wasn’t an insurance figure in the year old chart. It is in there now however. We need to take our percentage over a year’s period of time. Councilmember Bean said the City could be going online in December 2011 and we will be paying our $9 per month. Husk said the budget items that were affected were wages, power and gas. Councilmember Bean asked the treasurer to call Janice to see when the bills were sent out. Councilmember Kirkham asked about the County customers. She wants to know why they are not showing. Councilmember Powell asked if the County customers started using the system the same time as Shelley. Husk said yes. Councilmember Coletti said insurance was $31,000 for the year and he wonders since we are covering the overage, if we go back to the Region, what would happen over a 12 month period. The City of Ammon would have to pay it anyway since we are covering everything in excess, so he’s not sure if going back would accomplish anything. He wonders if it is really worth going back. Councilmember Powell asked Councilmember Bean if the Region was going to go back to the customers and ask for an increase. Councilmember Bean said he’s only been on the board for a few months and he is not sure it has ever been discussed. Councilmember Powell said the propane and power have increased. Councilmember Bean said the City has always been hesitant that the $9 amount was ever going to be met. Councilmember Bean said he wants the management moved over to Karl and pushed Forsgren to get this accomplished. Councilmember Bean said this month there was $8500 in expenses in managing EIRWWA and Karl had overtime. There will need to have another individual hired to handle the plant. Councilmember Powell said if you take the December payroll (subtracting Ammon and Forsgren for example) and power for $17,000 with Shelley paying $13,600, there aren’t enough funds since the power and payroll will increase. He would like Councilmember Bean to go back and request an increase. Councilmember Bean would like to wait a year and determine what the expenses will be. Councilmember Powell asked what the cost for ICRMP was. Jennifer said ICRMP would be roughly $46,000 per year. It was discussed that in 4 months we would break even. Councilmember Powell stated he sees the cost increase each month with Ammon picking up the bill. Council discussed Shelley not having to change their rates. Councilmember Slack said we don’t want to be paying more than the annual expense. Councilmember Powell asked Lance when we go to the Regional who will pay the electricity on the lift stations. Lance said the City of Ammon. Councilmember Powell asked why are we covering Shelley’s lift station. Husk said the Region has three lift stations. A lot of the bills have been coming in the name of the City of Shelley, which has caused some confusion. Husk said there are two lift stations that aren’t necessarily associated with the system. In theory, the customers from Exit 113 are paying for that. Councilmember Kirkham said she would like to see these funds reflected. Councilmember Slack asked if we should verify the ERUs and the revenue being brought in. Council concurred. Councilmember Bean will do this. Kevin Harris, Forsgren Associates, said the proposal was given to IBSD last month and they were cordial and polite, but not receptive. Their opinion was they could come to the Region when they wanted. Husk said don’t look to them as a customer, since they would need to pay the mortgage with the rest of the citizens. If IBSD came in, the rate would drop to about $27.56 per month. They are currently paying approximately $10 per month, per connection, to Idaho Falls and $18 per month for O&M. Their bill would be $35.56. Councilmember Bean said that Forsgren has been told to tell them this offer is not indefinite. EIRWWA has been advised to say this is a finite time offer, only valid until the line is built to separate the groups. Ammon would like to put a splitter in, rather than a line and move this direction. Councilmember Bean feels they want the City of Ammon to buy them a new line. They will be put on notice it will cost more, if they come later. If they wait, they will at least have to reimburse the City of Ammon for the line. Councilmember Powell asked Husk if he factored in the sewer plant’s Train #2, if IBSD came in. Husk said yes. Councilmember Bean stated his understanding is that they have $10 million in reserves. th Kevin said the design for the separation line will begin at 17 and Ammon and go to Midway based on the alignment if School Dist 93 gives the easement across Hillcrest, we are really close and then it could go out to bid fairly quickly. Kevin said no matter which way it goes there will be a separation, whether it’s a splitter box or a separation box. There are two different configurations. The design is going forward and if easement is obtained, then it can go out for bid relatively close to the time Segment C goes out. Councilmember Slack asked how the conversation has been with the High School. Councilmember Kirkham said we should know next Thursday. Councilmember Slack asked about some bills we received and the level of detail in the bills. Council discussed it has been taken care of. Councilmember Powell asked if it has been officially addressed for a splitter box with Idaho Falls. Council explained why it has not. Councilmember Bean said if IBSD separates from Council Minutes 1-20-11 Page 6 of 10 Ammon’s lines, then he will not allow them into the Region if the separation line goes in without reimbursement to Ammon. Council discussed IBSD wants a clean split from Ammon. Councilmember Bean stated they can have a separate line, but if they come into the region they will have to reimburse Ammon. Kevin talked about the separation of customers’ issue, as well. Scott said how do you swap customers? Councilmember Powell said he thinks they have to de-annex and it needs to be a super majority for a re-annex. Husk said it will cost the customers a lot, so they will be swayed. Lance talked about the options presented to them only dealt with physically separating the customers, not the legalities. Councilmember Kirkham stated they want to be divorced from us. Councilmember Bean asked Kevin to go back to IBSD and say the City of Ammon is waiting for their decision. 3. Concession Approval – McCowin Park (Leslie)*: Council discussed this is the same as last year. Leslie stated Roger Scheehy is taking it over from the Walkers. It was discussed whether the Council wanted to change the rent. It would need to be by resolution, unless it is under a certain percentage. Councilmember Slack feels it is a really good deal for the concession stands and the Council should think about increasing it. Councilmember Kirkham mentioned she likes the consistency with the $1000. Councilmember Kirkham motioned to approve the Concession Stand Contract for McCowin Park. Councilmember Slack seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Slack – Yes, Councilmember Coletti – Yes, Councilmember Powell – No, because he feels it should be increased for cost of living reasons and Councilmember Bean – Yes. The motion passed. DISCUSSION ITEMS: 1. Fiber Ordinance (Powell/Patterson)*: Councilmember Powell advised the Council that Scott has read the fiber ordinance and recommended one change regarding a misdemeanor issue. He stated Ron will correct it and then after it has passed, the fees will be discussed. Bruce stated he already has some fees established. He believes there will be a need for discussion as to how the fees were figured. He would be available for a work session to go over the fees or any questions the Council might have. The fees will be established by resolution. Councilmember Kirkham stated she would like to see them in a work session, but they cannot do it in February, so she wondered if they could push it off until March. Councilmember Powell stated we probably won’t want to do that, because of the rates that needed to be negotiated for schools, etc. Council asked Bruce to go over it now. Ron said he has talked with Scott and we can establish all the fees for the City at one time. Scott said the ordinance could read, subject to the fees. Scott said it is a new fee, which will require a public hearing. Bruce stated our goal is to keep the rates down for the benefit of the community and to attract businesses. He talked about a pay as you go concept with the development of the fiber. We are meeting our needs as a City now. He talked about using the NECA (National Exchange Carriers Association) rates and presented a slide showing the NECA rates for DSL. We are basically given competing companies infrastructure and they will provide service over that infrastructure. The key piece that translates to the Ammon offering are the NECA rates for DSL. There are 3 pieces to the NECA rate structure. The first is the piece from the central office (main facility) to the home – there is a rate charged for that. Then the service provider will plug into our network to deliver the service at the central office. NECA charges for two pieces – one charge for porting and the other for channel termination. We would combine these 2 rates into one bandwidth aggregation charge. Councilmember Powell said the service provider can be TV, Cable, DSL, etc. Councilmember Bean asked if this is a public utility. Bruce Patterson said that there are individuals looking into this in other locales. Councilmember Powell said they talked with Jerry Mason and asked about the public utility route or to keep it as a department. He said the City could go either way. Bruce Patterson recommends there will be two ways to get service. One is the fiber option only, which they can lease the fiber with an automatic renewal per year, until one party or the other decides to change the agreement. The second option is lit transport service. Councilmember Slack said it is like a soda straw analogy. If the City doesn’t have the infrastructure in place to offer service to a specific site, then we require money to build out to that site. Councilmember Bean asked if the phone company wanted to plug into it, would they have a flat monthly fee or would we base it on the customers they have. Bruce Patterson said they are leasing the infrastructure and using our ability to provide service. If the telephone company wants to plug into the City, then we will light it. This is our standard Ethernet and it leaves as the same IP frame. We will need to know what size of pipe they need and charge on that. Based on that, he explained the rates for this. He stated the non-recurring fee is the piece that pays a tech to plug someone in. Councilmember Slack said it is like a shut off and turn on. Bruce Patterson said yes. Council Minutes 1-20-11 Page 7 of 10 Bruce showed proposed rate tables where he grayed out the 1 – 10 meg baud rates, because there are other providers for this. Councilmember Powell said just offer the 20 meg rate. You don’t want to compete with what is already there. He stated security companies will take 5 meg for a security camera. He talked about the installation one time charge. These rates assume that the fiber is already there. If not, the city will look at it and give an amount to connect. He stated it looks steep up front, but over time it will generate business. He stated 9 out of 10 carriers will use this table and they will double or triple the rate, which would be 20 meg at $60 per month. Councilmember Bean asked what the schools would use. Bruce Patterson said the schools would use 1 gig to each school and there is an education table. You can put as many ports as you want on it. They will have aggregation, because they are their own service provider. Councilmember Slack said the reduction is huge. Bruce Patterson said he has actual cost, plus the installation. He does not know how to do it any other way. There are City’s that will go out and find the areas, which will be better served and sometimes they will do a LID. Brigham City and Lehi did it in Utah. If the school can’t be handled by 1 gig aggregation, then they will have to go to 10 gig. We would show them the up-front costs and go from there. The schools will most likely want to have the ownership of that. Councilmember Slack said the internet is going to become much more important, especially with Mr. Luna’s announcement for education technology requests. Bruce Patterson passed out another chart and discussed Band 9, which is one customer per square mile (the maximum) and this chart has the numbers that they say you have to charge, much like the Metcalf and Eddy with the sewer. This NECA chart showed retail on the top far left for DSL voice and data. Data alone is more expensive, but it is what is relevant (the data only) to the City. On the far right column, the WPP 3year option B, they can agree for a 3 year option when they go to a carrier. This would be their cheapest rate. Councilmember Slack said you have reduced the rate that would be charged by the City by approximately 2/3, so service providers can charge what they need. Bruce Patterson said the problem is it is not symmetrical. It should compare with the non-QOS rate table. On this table he also grayed out the rates that don’t apply. The 5 meg is $43.74 –what they would charge the carrier. We would charge $14 for the 5 meg. He has tried to use the same formulas for them. He has tried to create the figures so the service providers can say this is what they expect. Within the tables, the acronym NRC = non-recurring charge. Scott asked how this is different from Idaho Falls. Bruce Patterson said they only lease fiber and they lease it in a ring. They charge the customer, such as Microserv, $1200 per month for the ring and “x” amount for each lateral. Scott said so they get a strand or two around the City. Bruce Patterson said yes. Most of their fiber is above ground. Microserv’s central office would need a “drop” – they run a fiber in and a fiber out. Idaho Falls is only providing dark fiber where Ammon would, unless asked otherwise, actually light it. The City could do what Idaho Falls has done and it is great for businesses, but doesn’t work for homes. Bruce Patterson said you are leasing a line or buying a commodity. He stated bandwidth is really a commodity. He is trying to turn bandwidth into a commodity. They buy a certain amount of our product. Scott said the City isn’t providing service to anyone, we are only allowing them to use some of our bandwidth. Councilmember Bean said Idaho Falls doesn’t have the switching products. Bruce Patterson stated Ammon is a residential community, not a business community. Hopefully this might change some of that, if that is our desire. We are reselling them bandwidth. Bruce Patterson gave an example where School Districts 93 and 91 want to talk together and don’t want to do it over the Internet. They want a “highway” between the two of them or a local connection. The City of Ammon is in their discussion, as well as EITC. It is an education entity that has its own network and they want to talk to each other by using a “jumper” to plug into each other with an agreement. District 91 uses the City of Idaho Falls fiber, at the point of interconnect, they will be required to buy a switch and have IF splice the line on the pole and bring two fibers in, separate their ring and get an active presence. That is their only option. For the City of Ammon we don’t have to have a piece of equipment, because we “light” it. Every time Microserv gets a customer, they have to put in a significant piece of equipment; we won’t have to do that. It will make it cheaper to connect in Ammon. The scalability is the issue for us. We could choose to do only dark fiber, if we wanted. Councilmember Bean asked who our first potential customers will be. Bruce Patterson said Syringa. Councilmember Bean said let’s move on. Councilmember Coletti said he would like to know why we won’t be a public utility and to ask ICRMP more about this. Scott said the City would recommend a formal opinion. Councilmember Powell said Jerry Mason asked if the City was going to be touching the customers themselves and where we are acting as a middle man, it does not qualify. Councilmember Bean inquired if the school district is an individual consumer. Councilmember Coletti will look into a formal opinion attorney concerning the public utility issue and have them call Bruce. Bruce Patterson asked the Council how to handle the rates. Bruce Patterson stated we need to publish the rates soon. Councilmember Powell said we could do this on a contract basis. Bruce Patterson said he will be happy to wait, but Syringa would like to proceed and they will have an issue of waiting for several months. Ron could publish it in a month, but there will be a cost of $500 approximately, since it would not be with the rest of the fees. If we wait for Council Minutes 1-20-11 Page 8 of 10 the rest of the fees, then it would be April. Ron said it could be done by the second regular meeting in February. Councilmember Coletti will have them call Bruce by tomorrow. Councilmember Slack asked if the City would have both light and dark fiber. Bruce Patterson said yes. He stated the key is to be extremely flexible. Bruce Patterson said he is in the process of getting some easements and he has approached East Idaho Railroad. They have stated they want an annual lease and he has some solutions. It costs $2500 every time you go under the railroad. He had some discussion with the gentleman that approves those and that it is not in our costs. He stated it wouldn’t be supportable. He recommended drafting a letter. He has talked to them about a letter from the Mayor and the possibility of waiving the fees. He has drafted similar letters to irrigation companies, etc. Council agreed. 2. City Code Changes (Ron)*: Councilmember Slack asked about the dog license being a permit. Ron said commercial boarding facilities will be exempt, but must obtain a general business license. Puppies will be included in a kennel permit, if you have more than 12 in a year. The puppies will need to be gone by 3 months or they need a kennel license. We don’t allow commercial kennels in residential areas. Council advised him to move forward. 3. Easements EIRWWA Update (Lance): Lance said this was discussed earlier. Councilmember Kirkham said the Council needs to make a decision on the bond. There are two questions to answer: First, do we want to collect the money and pay the bond ourselves or do we want the Region to collect the funds and reimburse us. Councilmember Bean said the Counties will be collecting the money from county residents and will pay the bonds off early, however, he thinks any excess funds might need to be used for future growth. Councilmember Kirkham said regarding County customers, this is talking about a new user who will be paying a certain amount for bond repayment. She wonders if we can use that money legally, if they were not part of the bond. Councilmember Kirkham said the people didn’t vote for the bond, so it would need to be used for future growth. It was discussed we don’t need to make the decision, until we close the bond. Councilmember Powell stated either they pay the fee or not, or in order to connect or not connect. Councilmember Kirkham asked does the City want to go to 20 years, rather than 30 years. She stated if we leave the terms at 20 then the estimated user rate would be $43.21; if we extend it to 30, it would go to $38.32. She talked about being able to recoup some money to help pay for equipment. Councilmember Bean stated that if we go to 30 years, we need to put some money back on an annual basis to help pay it off. Councilmember Powell would like to see the rate change to compensate for changes and not have to make a big jump like we did. Councilmember Kirkham stated everywhere we thought we had extra, we do not. This is a way to recoup that. Councilmember Slack would like to see it extended. Council thinks they want to go 30 years. Councilmember Kirkham said we need to wait on the legislature and DEQ to see if the statute will change. Scott said the people voted on going 30 years. Councilmember Bean said we need to look at how to pay the costs for the line and we may address it at the strategic budget meeting. He talked about the options, whether by reserves or judicial confirmation. Councilmember Kirkham said she agrees. She isn’t sure how much the City will have by the time they pay for the separation of IBSD and the equipment. Scott said it makes more sense to do the judicial confirmation on the back end. 4. Water Right Transfer Update (Lance)*: Lance updated the Council that the City has received a letter from the Idaho Dept of Water Resources. They have issued a preliminary order and hopefully we will hear soon. Lance explained it is not exact as of yet. Councilmember Bean asked if we have any other water available. Lance stated it depends on what time of year. We really need more capacity, but this depends on the time of year. Councilmember Bean asked how many CSF does it takes to drill a well. Lance said 3 CFS or 4 CFS. st Councilmember Kirkham asked what 21 street was. Lance said he thinks 7 CFS or something like that. 5. Misc.: Councilmember Kirkham said she talked with Glen Pond concerning the franchise fee for Rocky Mountain Power and we need to adopt it by ordinance. Glen Pond has a boiler plate to work off of. Ron, Glen and Dana will be having a meeting tomorrow at 8:30 a.m. to discuss how to proceed. th Councilmember Coletti said the deadline for the newsletter article is coming up Feb 11. He needs an update on Ammon Days. Councilmember Coletti spoke with Mayor Jared and he mentioned his “Mayor Business Day” at Idaho Falls High School with businesses throughout the area and would like the City to participate in the future. He wondered if Mayor Steve could contact Mayor Jared to see what they can do. Ron wondered if it could Council Minutes 1-20-11 Page 9 of 10 be coordinated through Grow Idaho Falls. Leslie asked about holding this same event with District 93 and the City of Ammon. Council stated it is something to think about for next year. Stacy Hyde asked the Council if a crew could spend the night at the station. Council was concerned about ICRMP and workmen’s compensation. It was discussed they want to provide 24 hour service and keep the same pay. Leslie will have Stacy come in tomorrow and they will call ICRMP and workmen’s compensation. He inquired about the Fireman’s Ball invitation he sent to Council, as well, and asked that they let him know which Councilmembers will be attending. 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 Bean motioned to move into Executive Session pursuant to Idaho Code Section 67- 2345 (1b and 1f). Councilmember Coletti seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Coletti – Yes, Councilmember Slack – Yes, Councilmember Powell – Yes, and Councilmember Kirkham – Yes. The motion passed. The meeting adjourned at 9:58 p.m. _____________________________________ Steve Fuhriman, Mayor __________________________________ Leslie Folsom, City Clerk Council Minutes 1-20-11 Page 10 of 10