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06102010CouncilMinutesCITY OF AMMON CITY COUNCIL MINUTES – REGULAR SESSION THURSDAY, JUNE 10, 2010 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD CITY COUNCIL AGENDA – REGULAR SESSION THURSDAY, JUNE 10, 2010 – 7:30 P.M. CALL TO ORDER: Councilmember Kirkham at 7:30 p.m. Pledge of Allegiance – Councilmember Bean Prayer – Councilmember Powell MINUTES: April 14, 2010* ITEMS FROM MAYOR: CONSENT AGENDA: Business License* Accounts Payable – Exhibit A ITEMS FOR/FROM TREASURER: PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: PUBLIC HEARINGS: None ACTION ITEMS: 1.Well 8 Tank & Booster Station Change Order #2 (Lance/Keller)* 2.Swimming Pool Policy Direction (Ken/Jennifer) 3.Contract Amendment - Comprehensive Water Model and Mapping Functions (Lance)* DISCUSSION ITEMS: 1.Water Bond Repayment Procedure (Lance/Leslie/Ron) 2.Formation of New City Communication Utility (Powell/Patterson/Scott)* 3.Warranty Repair Founder’s Pointe Tank and Booster Station (Scott/Ray) 4.Quail Ridge Park Proposal (Slack)* 5.Water Proclamation Applicable to Falls Water City Residents (Leslie/Scott) 6.Indoor Shooting Range (Ron) 7.AIC Conference Attendance and Voting Delegate (Leslie)* 8.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 Dana Kirkham Councilmember Lee Bean 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 Council Minutes 6-10-10Page 1 of 8 City Officials Absent: Councilmember Rex Thompson City Treasurer Jennifer Belfield CALL TO ORDER: Mayor Steve Fuhriman opened the meeting at 7:33 p.m. at City Hall building located at 2135 South Ammon Road. Councilmember Bean led the Pledge of Allegiance. Councilmember Powell offered the prayer. MINUTES: April 14, 2010*: Councilmember Bean motioned to approve the minutes, as presented. 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. ITEMS FROM MAYOR: Mayor Fuhriman thanked everyone who created the City newsletter. CONSENT AGENDA: CITY OF AMMON BUSINESS LICENSE CONSENT AGENDA Thursday June 10, 2010 License applications, carrying the required documents, pending approval of the City Council: GENERAL BUSINESS LICENSE: 1.NEWGENERAL BUSINESS LICENSE APPLICATION: A.Peak Village – Assisted Living – 983-1087 Curlew & 994-1020 Diamond th B.Sno – Time – Shaved Ice – 939 S. 25 E. 2.RENEWALBUSINESS LICENSE APPLICATION: A.Aspen Ridge Chiropractic P.C. – Chiropractic – 3526 Briar Creek Lane th B.Stacci Lache’s Ice Cream – Mobile Vendor – 495 E. 17 Street th C.B&L Properties – Real Estate – 3456 E. 17 Street, Suite 285 th D.Inspired Living Home Décor – Retail Sales – 3160 E. 17 Street, Suite 120 st E.Nana’s Daycare – Daycare & Preschool – 2660 E. 1 Street th F.Five Guys / Burgermeister – Restaurant – 2541 S. 25 E. HOME OCCUPATION PERMITS: 1.RENEWAL HOME OCCUPATION PERMITS: A.Faux Masters Plus – Painting – 3801 Orchard Circle MISC: MASSAGE ESTABLISHMENT 1.NEW MASSAGE THERAPIST BUSINESS LICENSE: th A. Juarez, Lineth – Massage Therapist/Massage Envy – 3039 E. 17 Street 2.RENEWAL MASSAGE BUSINESS LICENSE: th A.Massage Envy – Massage Establishment – 3047 S. 25 E. Business License*: Councilmember Bean motioned to approve the business licenses, as presented. Councilmember Slack seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Slack – Yes, Councilmember Kirkham – Yes, Councilmember Powell – Yes and Councilmember Coletti – Yes. The motion passed. Accounts Payable – Exhibit A: Councilmember Kirkham advised the Council that she has pulled a Heath Engineering bill of $95,000 (from Page 7) and some others to Heath Engineering from approval tonight. She also pulled the invoices to the City of Shelley in the amounts of $54,000; $724,000; $12,000, $271,000 and $18,000. She is unsure as to what they are for and if they are included in the projected costs or for overages. Everything adds Council Minutes 6-10-10Page 2 of 8 up to almost a million dollars and she wants to be clear as to what the bills are for. She will be meeting with Forsgren next week to discuss the items. She hopes to have it cleared by next time Council meets, which will be next week. Leslie noted some of the bills are from January, but Forsgren did not sign them until April. Councilmember Kirkham motioned to approve accounts payable, exempting the last six payments under the sewer department, 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: None PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: None PUBLIC HEARINGS: None ACTION ITEMS: 1. Well 8 Tank & Booster Station Change Order #2 (Lance/Keller)*: City Engineer Lance Bates explained that this order will increase the time allowed to complete the contract, due to the inability to achieve acceptable results during wet weather conditions this spring. It will extend it to July 2, 2010 for final completion. Councilmember Kirkham asked for information concerning the chlorine. Lance stated the chlorine has been shut off, at this time, due to a technicality. Ray said it would be turned back on tomorrow. Lance said they are trying to meet the breakpoint for chlorination. Councilmember Kirkham inquired how long it will take to reach the breakpoint. Lance said he is unsure as to how long this will take. We have a large tank and DEQ wants to see some chlorine residual. Councilmember Kirkham inquired what will happen when we reach the breakpoint and why are we chlorinating now when we haven’t for years. Lance explained we have larger tanks with a lower capability than that offered by smaller tanks to ward off harmful microorganisms, so DEQ requires it now. Councilmember Bean motioned to approve the Well 8 Tank & Booster Station Change Order #2, as presented. Councilmember Slack seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Slack– Yes, Councilmember Kirkham– Yes, Councilmember Powell – Yes and Councilmember Coletti – Yes. The motion passed. 2. Swimming Pool Policy Direction (Ken/Jennifer): Councilmember Kirkham motioned to table this item to executive session. Councilmember Bean seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Coletti – Yes, Councilmember Powell – Yes and Councilmember Slack – Yes. The motion passed. 3. Contract Amendment - Comprehensive Water Model and Mapping Functions (Lance)*: City Engineer Lance Bates stated he has been talking with Keller. They discussed what was remaining on the contract and about obtaining a water model for the entire new system. Councilmember Kirkham observed that she thought we already had a water model done. Lance stated that in the beginning Schiess and Assoc. created a water model, but the information is no longer usable. Keller would take this study from Schiess and Assoc. and build from there. Keller feels they can wrap it within their current contract scope without additional funds by reallocating some of the money from another item. They would like Council to know up front what is going on. He presented a copy of the contract to Council. Councilmember Bean motioned to approve the Contract Amendment – Comprehensive Water Model and Mapping Functions, as presented. Councilmember Kirkham seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Powell – Yes and Councilmember Slack – Yes. The motion passed. DISCUSSION ITEMS: 1. Water Bond Repayment Procedure (Lance/Leslie/Ron): Councilmember Kirkham showed the Council the water rate projection to pay off the $15 million bond debt. She stated they used the same formula that Council Minutes 6-10-10Page 3 of 8 was used for the sewer bond repayment, with an annual payment of $913,000. City Engineer Lance Bates said this is based on two payments per year. The number of customers is 3,851, so the debt repayment calculates to $19.77 per customer. In addition, DEQ requires the reserve 5% in reserve, which brings the grand total to $46.07. Lance said zone-based water rates for R1 and less restrictive residential zones would be $18.25 and for RP, RE, and RPA residential zones would be $25.75. The rates would be increased by the amount of the loan repayment. Councilmember Bean asked if we are proposing to go to one standard rate for everyone at $46.07. Lance said no and discussed various options. If you keep the same percentage basis for all residential zones, it would be somewhere around $39 for smaller lot-size zones and $46 for the RP, RE, and RPA zones (the preceding rate adjustments do not include commercial customers). He explained the $46 and $39 should cover the residential portion of the debt. Councilmember Bean inquired if we will increase our commercial meter rates. Lance stated he has tried to approach this where every connection would pay $20.76, per month, for bond repayment. Councilmember Bean said then we are keeping the rates where they are, but adding the bond repayment. Lance said yes. Councilmember Bean said this is still a good rate, since we don’t meter. Lance said he assumed each home used 15,000 gallons a month and the repayment is based on that. Councilmember Bean said a while ago we had a summer and winter rate and wondered if the Council would like to consider it again. Councilmember Kirkham said maybe now is the time to look at when we will switch to meters. She stated this is an economical time to obtain and install meters. Ray said the City has approximately 100 residential meters. Councilmember Bean inquired how many meter pits we have that we could set meters in right now. Lance said there are probably three thousand meter pits. Ray said at one point, it was determined that there were approx. 1000 without pits. A meter costs approx. $375 right now, per Lance. Councilmember Powell commented we still have the fixed cost of the bond repayment. You would have to separate the bill according to that. Councilmember Powell asked when the first payment is due. Lance said DEQ will tell us, but he anticipates the first quarter of next year with the first payment at $456,833.97. Councilmember Bean stated this assumes that all the interest has been current and that the loan amount is exactly $15 million. th Council agreed to move forward with the publication of the increase for July 29. Councilmember Kirkham inquired when the actual number needs to be published. City Planner Ron Folsom stated 15 days prior to the hearing. Councilmember Kirkham doesn’t feel we have time to have two public meetings, and the reality is we have to start paying for the bond. She stated the only discussion would be if we needed to take money out of reserves. It was discussed to put a public hearing notice in the next utility bill. It was also discussed that the bond will need to be paid and the figures are clear. City Attorney Scott Hall talked about the ability to pay bills without a gap in our meetings of 4 weeks. Leslie stated we could double stack the meetings and combine the work and regular st session, in order to approve payment of the bills. It was discussed to cancel the July 1 meeting and to schedule the ththth meetings for the 8 (including a work session) and the 29. She also talked about August 5 and possible non- quorum issues, but no decision was made by the Council. Formation of New City Communication Utility (Powell/Patterson/Scott)*: 2. City IT Technician Bruce Pattersonaddressed the Council requesting clarification on their policies. He stated in late 2008, the City formed a policy for broadband services and it was unanimously approved and signed by the Mayor. It was determined we needed to look at the cost to provide broadband. In 2009, we applied for a grant from the recovery act for a high level design. The City requested approx. $17 million, which required a 20% match bringing the total to approx. $20 million. We received a rejection letter, but they encouraged us to apply for the second round. In rd round two, we applied for $6 million with the Google option and on May 3 the governor endorsed three projects and the City’s project was one of them. We went from $17 million to $6 million, since the rules changed with what we felt we could obtain. If you are a rural entity and you are served with certain speeds, then they wouldn’t pay for the last mile or at least a significant portion – this “mile” goes from the street to the home. The last mile is a pretty substantial expense. The only customers we would have are ourselves and other major entities like the schools, because we have no “last mile”. The least expensive way to get the last mile would be wireless. It’s not necessarily the best but it’s the only way for us. Now that we have the letter, we would need to prove our 20% match, which would be $1.2 million for the portion from the City. He would like to ask the Council if this is something we can consider, so we can put it into the budget. Council discussed it would be nice to have the grant, but asked is this the right time. Leslie stated it would also allow the City to have savings in the future. Lance said this would be extremely beneficial for the water department to tie the well sites together. The water department would like to support this as much as they are able to. It was discussed we would be able to remotely read the meters on another Council Minutes 6-10-10Page 4 of 8 system, but the backhaul from the other system’s tower location to the water facility would be handled by broadband. Councilmember Slack asked how much it would cost annually to run the networks. Councilmember Bean said he originally didn’t support this in the beginning, due to the cost of operation and he will still contend we shouldn’t compete against private companies. Councilmember Kirkham stated we have $5 million in reserve in general government. She stated the only way to fund this would be out of reserves and we need to decide if that is something we want to do. Bruce said we can be pretty solvent with five cell towers, which would give about $1000 per month from every cell tower from the day we start. He believes this is the right choice, but it is a risk. Councilmember Slack stated he would be cautious in using our reserves, but he loves the idea. He would like to see the actual cost to be self sustaining. Councilmember Bean said he does believe this is the right thing to do, but the problem is the City is raising the water and sewer rates. Councilmember Coletti feels the same way as Councilmember Slack and needs more information as to how we can afford it. Councilmember Powell said he has always been proactive in investing in the community and even if something tragic happened, the network could be sold and we would still be solvent. Councilmember Powell said any telecom would buy it. Councilmember Powell feels it would be a good investment. Councilmember Slack said this would attract some high tech businesses. Councilmember Bean asked about Idaho Falls. Councilmember Powell said they don’t light their system. Councilmember Slack said a large portion isn’t being used. Bruce said their model is different than ours. Ours would be a virtual fiber. Bruce said the City would be the biggest user. School District 93 has a contract (outsourced data connection), which starts at $7000 per month and ends at $9000 per month. School Dist 91 uses Idaho Falls fiber and they charge $1800 per month. Councilmember Powell asked what about pulling the match from the general fund and we pay it back from user rates – paying 5% interest on a ten year note. Bruce said when we had the last mile; he was fine with the loan. If we play the cards right, we can do this and feels it can support itself in three years. Councilmember Bean said it’s purely speculation. Bruce said the business model is tried and true. Bruce was contacted by BYU Idaho and has received a letter of support addressed to the Council. It was discussed it would cost about an average of $3400 for the last mile to get into a household. Ron said we have two developments that have shown interest in fiber optics and would build conduits, as they progress in their development, to support the fiber optics. Ron stated the developer would most likely put in the infrastructure and we would put in the fiber. Councilmember Powell said you look at INL and the campuses and if you offered this, it would be a very attractive way to jump-start this community with jobs. It was discussed that Idaho Falls has formed a separate utility to run theirs. Councilmember Bean asked if they offer connections to their lines. Bruce said they only directly serve businesses, with connections to homes handled through a third party. The City of Ammon would connect residences and there would be multiple service providers for the constituents to choose from. Councilmember Powell said you would look at being an Internet Service Provider. Bruce said originally we were not going to offer service, just connectivity. He would like the long range goal to be turned over to a private entity and the City of Ammon would have the infrastructure. Councilmember Bean asked what the grant provides. Bruce said to put electronics and fiber in. Bruce said because of Ammon’s bedroom community nature, if you want this to be solvent, then we have to offer it to the residents. Council seems to be on board, as long as the reserves work. Councilmember Powell said he can create a model with the fees. Councilmember Slack would like to maintain a certain amount of reserves, with all the projects we already have going on. Councilmember Bean talked about the top ten priorities the City has. Scott talked about loaning from one department to another. Councilmember Powell said a lot of items the City does has no return on investment, but this one can with new business, tax benefits in commercial and residential tax rates. Bruce said the cost is based on hard figures for the match. Councilmember Powell said they are pretty comfortable with the figure. Bruce said it will generate revenue, but the question is when. Councilmember Bean said somewhere we have to figure how we will take care of the roads. Bruce will come back next week with the final numbers. Councilmember Powell said we want to know if we can get the match and not take six weeks for the decision. Council discussed that they need to understand numbers, before they can really look at this as an option. Bruce is unsure of the time frame for the grant. Councilmember Kirkham said she feels that everyone is on board, if we can get the costs in line. Bruce talked about the City’s needs for the service. He stated the City spent around $15,000 per year for connectivity, but we are going to add another building and put a tower on the hill that will read all the water meters sometime in the next couple of years. He wonders how we will get the meter readings from one building to another. We will need this when the meter reading system goes in. We have improvement ahead and we will need to support the SCADA System, which is currently done through Teton Communications, and it does not provide everything we need. Their cost is $50 - $100 for each well, per month. He thinks the water department will want to Council Minutes 6-10-10Page 5 of 8 access Clarity and will need relevant data. He needs to have connection to both buildings to pass data back and forth. We will fiber up Sunnyside to the tower and to this building. We could do wireless, but it will need a lot of updating. Bruce talked about the cost to put the fiber in from Sunnyside and to the building, which is not included with the grant. He would like to talk to Council about the plans for the future two years. Lance feels the grant would cover the fiber from this building and to the tower. Bruce explained it would not include the servers and equipment in the building for internal operations. Lance said this would also support the water dept. Councilmember Powell said it would run the lines to all the buildings, but not the servers. Councilmember Bean inquired what the additional costs would be. Bruce explained that even if we get the grant, there will still be extra costs he wants Council to be aware of. Councilmember Bean asked Bruce what the cost would be if we do not include the water tower, because he is not sure where that is going. Bruce spoke about a possible SCADA system building and its needs. Councilmember Kirkham explained the water tower is a done deal, as it is part of the water project. Councilmember Powell asked what it would cost, if we did it on our own. Bruce stated he is not sure. He feels you could have a customer base and be operational within three years. Bruce explained that for $400,000- $500,000 he could do it on our own. Councilmember Powell said we need spreadsheets and articles that will help explain all of this. Councilmember Bean asked Bruce to help support his figures. Bruce said he will do his best, based on today’s figures, with what we know today. Councilmember Powell asked Ron if there were businesses that would have come to Ammon, if we had fiber. Ron said there are businesses that haven’t come into the area, since there wasn’t any fiber in the area. Councilmember Slack asked Bruce to check with Ball Ventures and see what he thinks he could pull in, if he had fiber optic. Councilmember Powell said he is looking at tax revenue and job creation more than customers. Bruce has approached Cable One and they are developing a quote for the City to run the fiber. Councilmember Bean asked if they would joint venture the project for running the infrastructure. Bruce said no. Ron said this would lock other businesses out, if that happened. Bruce stated we need to attract a service provider first. The grant specifics were discussed and Bruce said it will be key on how we respond to determine whether we get the money or not. Scott said this would create a separate utility. Council discussed whether it would be a utility or a department. Councilmember Kirkham said she thought it would be a utility. Scott said he only knows one attorney qualified for utilities. Councilmember Bean asked if he would come to a work session. Bruce showed an article that fiber was like electricity, in the past, and now everyone needs it. 3. Warranty Repair Founder’s Pointe Tank and Booster Station (Scott/Ray): Ray stated that the chain-link fence at Founder’s Point is collapsing. We do not have a contractor to fall back on, since Sommer’s Construction is out of business. The subcontractor has been fully paid and should warranty it. He has been contacted numerous times. He would like to have Scott write a letter to respond within 10 days, as to when he will fix the fence. Council agreed with Ray to write the letter. Scott said we may want to send notice to the surety, also. Quail Ridge Park Proposal (Slack)*: 4. Councilmember Slack stated Ken is concerned about the park and showed Ken’s “for discussion purposes” design. Councilmember Powell said the City’s obligation is only to put in sprinklers and grass and it won’t happen this year. He explained it is not a park, it is a retention area for water runoff. Councilmember Slack said a soccer field is shown on the design, to show how big the retention area is. Ken’s priority is the pool and the building needs to be rebuilt, with an area for concessions. Ken is concerned about the disrepair of the pool building. It was discussed the sprinklers, etc would cost about $25,000. The pool building is in such disrepair that it simply cannot last much longer and the $50,000 the City was targeting for the Quail Ridge retention area would go some way towards the rebuilding of pool building. Councilmember Powell said if the homeowners want to add play equipment, etc. that would be up to them. Ray said from a retention pond point-of- view, it is not configured as per Ken’s drawing. Councilmember Kirkham explained that Ken has refigured this for possible future use. Ron said Ken has been working with Alan to be sure the retention pond is maintained. Councilmember Kirkham said the homeowners can add to it according to Ken’s design. It was discussed to finish the Quail Ridge park sprinklers next year. It was discussed it would not entirely come out of Ken’s budget. Councilmember Bean would like to have him get the grading done this year, with grass being done next spring. Scott said we gave an acknowledgement of thanks for those who have signed their water rights over. 5. Water Proclamation Applicable to Falls Water City Residents (Leslie/Scott): Ron said there is an issue with the water conservation enforcement on Falls Water. Councilmember Kirkham said she is unsure if we can enforce the water proclamation, since we aren’t providing the water. Lance stated since its conservation, he Council Minutes 6-10-10Page 6 of 8 feels we can. Councilmember Kirkham disagreed. It was discussed they are already metered. Council stated that Falls Water residents will not be enforced with the Ammon water conservation rules. 6. Indoor Shooting Range (Ron): Ron stated this would be located on a portion of Dean Mortimer’s property. He explained what our ordinance contains and stated P&Z would feel comfortable with an indoor shooting range in a CC-1 zone, which is one zone more restrictive than the GC-1 zone required for an outdoor shooting range. He wanted to ask the Council, if they were okay with it. Council concurred they are ok. 7. AIC Conference Attendance and Voting Delegate (Leslie)*: Leslie explained the voting member has to be a Councilmember or Mayor. It will be next week and she needs to know who the voting delegate will be. If you go to more than 2 classes, then we need to pay, but she needs to know who wants to register. Councilmember Kirkham stated Council needs to let her know by tomorrow morning, which classes they plan to attend. Leslie explained the knowledge gained from this would be exceptional. Councilmember Kirkham stated to register the Mayor and have him designated as the voting delegate. Council discussed which classes they would be interested in attending. Leslie will schedule. 8. Misc.: Lance said Walgreens has Landon Excavating scheduled to do their drainage when the weather clears up. Ron said they are planning on holding another water meeting July 12th with Quail Ridge. Leslie stated to please let everyone know they will need their ID’s for notarization. Ron said the State of Idaho made a change on the liquor laws that now allows selling liquor on an election day. He explained we have had a couple of calls. You can buy in Idaho Falls, but not Ammon. Council is ok changing Ammon’s ordinance to match the new State language. Councilmember Slack said there was damage to Woodland Hills Park, because someone took a dump truck across it to fill their garden. The cost to repair the damage was around $675. Scott has approved the letter and Leslie is ready to mail it to the resident tomorrow. Council concurred. Councilmember Bean said BMPO has a gentleman (outside consultant) hired to do an alternative transportation study. Councilmember Bean has been to one meeting and they would like to know our transportation needs. Lance said in STP Urban funds there is $5 million a year to put in design. In order for any of our projects to get listed, you first have to be listed on this transportation study. We did not submit a project last year, so the Pancheri project has taken all the money for this year. We need to be listed on the plan, so we can get some money. Lance said the consultant will be updating the long term plans. Councilmember Kirkham advised Lee to put First thst Street, 17 Street, Sunnyside, 21, bike paths, etc. Ray said three months ago there was a state funded grant to perform a condition assessment of every road we had. He began down this path, but because we are part of BMPO we were excluded. Ron said we need to talk about buses. TRIPTA’s vision is to have a drop off area when a shopping area is built. If a developer would dedicate a strip of land, then they would get the grant. Councilmember Bean will try to contact the gentleman. Councilmember Coletti stated the next newsletter is in September and would like all input by July. Councilmember Kirkham will write the Council piece for the front page. Scott suggested putting a reminder in the bills about “Ammon Days”. th Leslie stated the EIRWWA luncheon is noon on June 16. 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 Kirkham motioned to move into executive session pursuant to Idaho Code 67-2345 (l-b and 1-c). Councilmember Slack seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Slack – Yes, Councilmember Coletti – Yes, Councilmember Powell – Yes, and Councilmember Bean – Yes. The motion passed. The meeting adjourned at 9:32 p.m. Council Minutes 6-10-10Page 7 of 8 The meeting came back into regular session at 9:59 p.m. Councilmember Slack went over the budget with Ken and had Jennifer sit with him. He feels the department is ok, but he is over on some areas by small dollars. There is a section on grant expenditures where the match was not in the initial budget process. Councilmember Bean recommended Ken come in and sees how he can make it up. Councilmember Slack said he is cutting as much as he can out of salaries, etc. He feels we are $45,000 short. Councilmember Slack said the initial budget wasn’t done properly. The shortfall with the fire dept is because of the new tax/IRS changes; however, he believes he can absorb it. Councilmember Kirkham asked about IBSD letter and if they have contacted anyone. Everyone said no. Councilmember Kirkham feels they are never going to join the region and wants to move forward on the design th phase for separation. Councilmember Bean would like to know how they are going to get the flows from 17 Street back into the line. It was discussed they will be de-annexing some customers. At this time, there is talk of de- annexing some areas or Ammon will bill the Ammon rate and IBSD will pay us. Scott said he would prefer we split the sheets. We can’t service some areas and they can’t service some areas. Councilmember Bean would like to work with them on this. They have been talking about a smoke test to see where the gravity feed is. Leslie cautioned not to have three Councilmembers meet at the same time. Councilmember Bean is concerned they can’t de-annex without their customers’ permission. Councilmember Powell said you will have to do a LID to put in the lift station or de-annex to Ammon. Scott recommends that the City get moving forward with a letter or we won’t make the date. There has been some concern about the EIRWWA board and having Mayor Ard as our representative. Councilmember Kirkham said personally she doesn’t have the guts to un-appoint him. She is concerned he might be more loyal to the Region, than the City of Ammon. Councilmember Bean said do we really want an at large person on the board with financial decision making power. He would like to see a Councilmember or Mayor appointed. Councilmember Kirkham said two of the members don’t have any financial responsibility and Mayor Ard hasn’t been to the last two meetings. Councilmember Bean said to take him that is, take Councilmember Bean off BMPO and assign him to the EIRWWA. Councilmember Kirkham stated she would like to get a policy created and then take the steps per policy. Councilmember Powell motioned to adjourn. Councilmember Kirkham seconded. Roll Call Vote: Councilmember Powell – Yes, Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Slack – Yes, and Councilmember Bean – Yes. The motion passed. The meeting adjourned at 10:21 p.m. _____________________________________ Steve Fuhriman, Mayor __________________________________ Leslie Folsom, City Clerk Council Minutes 6-10-10Page 8 of 8