11102011CouncilMinutes-WS
CITY OF AMMON
CITY COUNCIL MINUTES – WORK SESSION
THURSDAY, NOVEMBER 10, 2011
AGENDA:
CITY OF AMMON
2135 SOUTH AMMON ROAD
CITY COUNCIL – AGENDA WORK SESSION
THURSDAY, NOVEMBER 10, 2011 – 4:30 P.M.
DISCUSSION ITEMS:
1.
Ted Hendricks – Sewer Organization and Payments of Bonds
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 (arrived at 4:47 p.m.)
Councilmember Bean (left at 5:45 p.m.)
Councilmember Brian Powell
Councilmember Rex Thompson
Councilmember Sean Coletti (left at 6:22 p.m.)
Councilmember Russell Slack
Deputy City Clerk Rachael Brown
City Treasurer Jennifer Belfield
City Engineer Lance Bates
Public Works Director Ray Ellis
City Officials Absent:
City Administrator/City Clerk/Planning Director Ron Folsom
DISCUSSION ITEMS:
Mayor Steve Fuhriman opened the meeting at 4:34 p.m. at 2135 South Ammon Road.
1. Ted Hendricks – Sewer Organization and Payments of Bonds:
Ted Hendricks, 299 East 4th North, with The
Development Company, said he is here to discuss options with some of the bonds. Ted said as for the bonds for the water projects, the
City can do what it wants with the proceeds. Ted said the DEQ (Department of Environmental Quality) likes to see a semiannual
payment, but once you sign up, you are in. Ted said this flexibility is because it is simple interest, it is not compounded.
Councilmember Powell said it’s in the City’s best interest to pay quarterly, or monthly. Councilmember Powell asked if the City has
begun paying on it. Jennifer said the City has made one interest payment. Councilmember Powell asked if the City has closed the
bond. Ted said no the bond has not been closed. Councilmember Kirkham said the water bond should be closed and asked why it
wasn’t. Lance said there is one more invoice to come in from Keller. Councilmember Slack asked, if the contract says semi- annual
and the City pays monthly, are the payments held until the semi-annual date. Ted said no. Councilmember Powell asked who closes
the bond. Ted said they would work with the bond company and the attorney to close the bond out. Discussion ensued regarding the
closing of the bond. Jennifer said to keep in mind that the interest at closing is going to be $830,000. Jennifer said the total drawn on
the loan at this time is $14, 251,000. Ted said there is approximately a half a million dollars that is not obligated. Councilmember
Bean said as long as they are going into reserves; why not buy the bond down. Councilmember Thompson said that would be his
suggestion. Ray said within five years the City is looking at a major project in the original town site. Councilmember Bean said he
isn’t opposed to taking a million dollars out of reserves to pay down the bond. Discussion ensued regarding reserve funds.
Ted said as for the sewer payment, The Development Company has closed Shelley’s bond, and said the EPA & the DEQ did
not grant them the same terms and conditions that the City of Ammon received. Councilmember Kirkham said they got a better deal.
Ted explained that each municipality can pay off its own bond, or have the Regional Authority pay off the bonds. Ted said the City
would make its payment to the Regional Authority every six months and the Region would pay off the bonds. Councilmember
Kirkham said after the Judicial Confirmation, the Council talked about having the Region pay the bond and that option sounded like a
good idea, but the bills are being paid here and it seems the payment would pass through two sets of hands that it didn’t need to.
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Councilmember Kirkham feels the City should be paying it directly, especially because the Region doesn’t even have an
administrative staff. Ted said every user is paying the same amount for the same service. Councilmember Bean suggested Ted look
into that because he doesn’t think that is correct. Councilmember Kirkham said Melaleuca put a million up front, but they would not
pay the bond because the million dollars was their portion of the bond. Ted said any user on the system has been set up the same.
Ted said when Melaleuca paid the million dollars, they prepaid hookups. Ted said the Region also signed a developer’s agreement
with Melaleuca, so that when other people hook up on the line, Melaleuca gets a portion. Councilmember Bean said his
recommendation was the City of Ammon and the City of Shelley each pay its own bond. Discussion ensued regarding the agreement
with Melaleuca. Councilmember Bean asked Ted to get him a report that shows how many connection fees the City has had come in
and how much has been paid to Melaleuca and any outstanding balance owing to Melaleuca. Ted said he would. Discussion ensued
about the requirements for a manager at the sewer plant and the difficulty in finding someone that is qualified. Councilmember
Kirkham said the City wants to manage its own bond and have the Region pay the City a check semi-annually for any money they
collect in the County. Councilmember Kirkham said as for the water bond, the City wants to close the bond out.
Councilmember Powell spoke about the meeting he attended today with IBSD (Iona Bonneville Sewer District).
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 Slack moved to adjourn. Councilmember Kirkham seconded. Roll Call Vote: Councilmember Slack – Yes,
Councilmember Kirkham – Yes, Councilmember Thompson – Yes, and Councilmember Powell – Yes. The motion passed.
The meeting adjourned at 6:23 p.m.
___________________________________________
Steve Fuhriman, Mayor
_______________________________________________
Ron Folsom, City Clerk
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