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Council Minutes 09/05/2002 CITY OF AMMON September 5, 2002 Minutes of the Public Hearing and Regular Meeting of the Mayor and City Council: The meeting was called to order by Mayor C. Bruce Ard at 7:30 p.m. in the City Building, 2135 South Ammon Road, Ammon, Idaho, with the following City Officials present: Mayor C. Bruce Ard Councilmember Karen Anderson Councilmember leslie Folsom Councilmember Randy Waite Engineer Bill Manwill (arrived near the end of the meeting) Attorney Scott Hall Public Works Director David Wadsworth Fire Chief Clarence Nelson City Clerk Aleen C. Jensen others Present: Kortney Rolston, Post Register Gerald B. Cheney, 3225 Central Avenue, Ammon Russell N. Swensen, 2660 Central Avenue, Ammon Larry Hoffman, 2495 South Ammon Road No.3, Ammon Everett E. Nichols, 2495 South Ammon Road No.1, Ammon Roland L. Wilson, 2495 South Ammon Road No.2, Ammon Wauline Miller, 2981 Courtyard Circle, Ammon Esther Bramwell, 2983 Courtyard Circle, Ammon Melvin Harris, 2942 Stonehaven Circle, Ammon M. Delynn Hansen, 3165 Western Avenue, Ammon Orland Bailey, 2810 Salmon Street, Ammon Larry R. Fullmer, 3380 Rich lane, Ammon Jeff Miller, 390 Advantage lane, Ammon Tom lenderink, 4105 Wanda, Ammon Jim and Delores Fennern, 3769 Wasatch Circle, Ammon David and Sheri Brasier, 3954 Milestone Circle, Ammon Bryce and Pam Dixon, 2215 Cabellaro Drive, Ammon Rodney B. Allen, 2971 Stonewood Circle, Ammon Cade and Michelle Jensen, 3914 S. Bridgegate Circle, Ammon Bud langerak, 1311 Windsor Drive, Ammon Jerrold and Ruth Stallings, 2030 Avocet, Ammon HildaTorres, 3405 East Sunnyside Road, Ammon Sherill Newman, 3600 Rich lane, Ammon Christina Casper, 3655 Rich lane, Ammon Andrea Sweeney, 3005 Ross Avenue, Ammon George Randall, 3610 Ross Avenue, Ammon City Council Meeting, September 5,2002 - Page 2 Martha Haslam, 2936 Oakhaven Circle, Ammon Bernice Shirley, 2934 Oakhaven, Ammon Ann Gray, 2909 Oakhaven, Ammon Geraldine Mortensen, 3560 Stonehaven, Ammon Donna Welch, 2932 Courtyard Circle, Ammon Judy Young, 2935 Oakhaven, Ammon Eric, Linda, and Aaron Bodily, 2720 Ross Avenue, Ammon Mr. and Mrs. Eric Gravatt, 2830 Ross Circle, Ammon Ray Hardy, 3745 Georgia Lane, Ammon Arlene and Wayne Cooper, 1575 Windsor Drive, Ammon Aaron and Lori Anglin, 1775 Avocet Drive, Ammon Steve Fuhriman, 1810 Avocet Drive, Ammon Doug Hansen, 2215 Curlew Drive, Ammon Von Crofts, 4310 Mason Street, Ammon Tricia Workman, 3425 Owen Street, Ammon Lorna Erickson, 2935 Meadow Lane, Ammon Alyce Clegg, 2955 Carolyn Lane, Ammon Susan Roberts, 705 Match Point, Ammon Marcia Snowden, 805 Match Point, Ammon Steve and Jennifer Bohrer, 3850 Stonehaven, Ammon Philip Affleck, 3645 Georgia Lane, Ammon Victor L. and Darlene Wenczel, 3720 Georgia Lane, Ammon C. Wayne Jemmett, 3040 Talmage Street, Ammon Amy Kaser, 2600 Salmon, Ammon Dennis 1. and Ann C. Earl, 3089 Stoneridge Circle, Ammon Jerry Mitchell, 3751 Marlene Street, Ammon Kip Nelson, 3740 South Hidden Haven, Ammon Eric Burke, 3882 Taylorview Lane, Ammon Terry Merrill, 3884 Taylorview Lane, Ammon Mauna Walker, 3721 Wasatch Circle, Ammon Marcia Pratt, 2926 Stonehaven Circle Joe Filutze, 3085 Willowwood Circle, Ammon Absent: Councilmember W. Lee Bean Council member Anderson led the Pledge of Allegiance to the Flag and Council member Waite offered a prayer. Sheri Brasier, 3954 Milestone Circle, requested a home occupation permit for a beauty salon, dba Modern Image. She added a room on the back of her garage. The room is 200 square feet, and the area of her home is about 2031 or 2051 square feet on one level. She will only have one station with no employees. She can comply with the home occupation permit requirements of C.C.10-7-8. Councilmember Folsom moved to approve a home occupation City Council Meeting, September 5,2002 - Page 3 permit for Sheri Brasier. Councilmember Anderson seconded the motion. Roll call vote: Folsom - Yes; Anderson - Yes; Waite - Yes. The motion carried. Von D. Crofts, 4310 Mason Street, requested a home occupation permit for medical transcription, dba Digital Transcription Services LLC. In his home he will just have the office. He will go to doctor' offices to use digital recorders and help the doctors to set up to transcribe their files to the Internet and send them to a transcription center. Crotts subcontracts with the transcription center. The only thing done in his home is an office to create invoices and send bills. His office is 12' x 12'. His home is 2200 square feet. He has some partners, but no employees. The partners work in different areas. The address of the company will be Crofts' house, and he will be doing the billings. The actual work will be done in the doctors' offices and other places. Councilmember Anderson moved to approve the home occupation permit for Von Crofts. Council member Waite seconded the motion. Roll call vote: Anderson - Yes; Waite - Yes; Folsom - Yes. The motion carried. Cade and Michelle Jensen, 3914 Bridgegate Circle, requested a home occupation permit for furniture sales. Basically they will use the home occupation permit to set up a dealership status with a furniture company in California. The Jensens would be doing consultation work and sending furniture directly to the client out of their office. There is no showroom. It is all done on line through catalogs. They have a small office of about 110 square feet, and the main floor of their house is about 1000 square feet. Some people will come to the Jensen home to review catalogs and other information from the company. Also, Jensens will visit clients' homes. The client is responsible for the furniture with the manufacturer out of California. The client and the manufacturer will handle any problems. There will be no transactions of furniture through the house. They do not anticipate much traffic to the home. Maybe there will be one client per week. Cade and his wife will be the "middle men." This is the first step. The second step is to advertise through newspapers, word-of-mouth and business cards. Councilmember Anderson moved to approve the home occupation permit for Cade and Michelle Jensen. Councilmember Waite seconded the motion. Roll call vote: Anderson - yes; Waite - Yes; Folsom - Yes. The motion carried. Hilda Torres, 3405 East Sunnyside Road, applied for a mobile vendor license. They have a large truck that she wants to sell clothes, shoes, etc. from. She wants to be everywhere, on comers, and go to houses. She will go to houses to show merchandise. All the merchandise will be in the truck and not in the home. She wants to start as soon as she gets a license. This is a first time experience for the applicant. She has never been convicted of a crime except minor traffic violations. Hilda's husband, Domingo Munoz, will work with her. She City Council Meeting, September 5,2002 - Page 4 will ask property owners for permission to set up for truck sales. The truck will be parked at their home on Sunnyside Road at night. The attorney advised that a background check is needed before the application is complete. The Council would also like to see the truck. This is a new kind of application for the City Council to consider. The applicant was asked to contact owners of possible sales locations to get their approval. Councilmember Anderson moved to table the request of Hilda Torres for a mobile vendor license (aka itinerant merchant license) pending a background check, looking at the truck at the next meeting, and business liability insurance and bonding. The applicant received a copy of C.C. Title 4, Chapter 9. Councilmember Folsom seconded the motion. Roll call vote: Anderson - Yes; Folsom - Yes; Waite - Yes. The motion to table carried. Tom Hunsaker reported on the Planning and Zoning Commission Meeting of September 3, 2002. The Commission reviewed the Preliminary Plat for Eagle Pointe. Previously they had seen a Preliminary Plat of the area north of the park and on the west side. The plat presented at their meeting showed the rest of the development. The Commission recommended approval subject to two modifications. The long cul-de-sac south of the park and east of Division No 4 is about 500 feet. The recommendation was to take the street (cul-de-sac) the rest of the way north or do something so it comes within the 400 feet cul-de-sac limit. The other recommendation was to have an entrance to the park on the south. Alan Cunningham of Mountain River Engineering provided some explanation. He heard the Planning and Zoning Commission request for modifications. So he prepared a map to show the cul-de-sac changed to a street. However, the original Preliminary Plat for Eagle Pointe was approved about two years ago with the long cul-de-sac on the plat. Alan Cunningham, as a representative of the developer, does not have a problem with the street going through, but Lee Gagner, the developer, may request to keep the cul-de-sac in place. Councilmember Folsom asked if there was any time limitation on Preliminary Plats. Tom Hunsaker explained that Title 10 puts a one-year limit on the Final Plat, but we do not currently have any limit on the Preliminary Plat. Between the time the Final Plat is approved and development takes place the developer has one year. Alan Cunningham wanted to make sure the City was okay with the basic layout and the configuration of the future development. The changes and concerns have no bearing on what Lee Gagner, developer, wants in order to proceed with in Division NO.4. The Preliminary Plat comes prior to any Final Plat. The City Council approves the general configuration. A Final Plat is a calculated version of what the Council has seen as a sketch. Eagle Pointe has been approved as a Preliminary Plat. City Council Meeting, September 5,2002 - Page 5 Councilmember Waite asked Alan Cunningham to go over the accesses to the park. When the plat was recorded for Division No.3, the park lot was its own separate lot. The park lot has frontage on the east and west sides plus there is a little aisle that is part of the original park lot that comes out on the cul-de-sac on the north. If the City requires another entrance to the park on the south side, the engineer would recommend a little lot that is a non-buildable lot, which is deeded to the City instead of an easement on a residential lot. Another item of business before the Planning and zoning Commission was to consider the request of the City Council to create a new residential/agricultural zone. The purpose was to accommodate the large lots involved in the proposed annexation of the County Islands. At first the consensus of the Commission was why not zone the lots RP with and animal overlay and let the owners put restrictions on with protective covenants. After discussion, the mood changed. Maybe the RA zone of ten or more years ago should be brought back. Tom Hunsaker plans to work with some of the property owners to obtain input and come up with a recommendation. The Planning and Zoning Commission has just signed off on a building permit for a large, corrugated metal building on Carolyn Lane. Before proceeding with the issuance of the permit, Tom Hunsaker requested Council input to determine if we need to back off. It is a Quonset Hut. No one was worried about the shape, but it is made out of corrugated metal that is typically found in an agricultural setting. The dimensions are 12' high, 18' wide, and 30' long. Plans are to place the building on the back of a residential lot. The Commission discussed whether or not the building was in harmony with the residential neighborhood. They did not make a recommendation, but left it up to the City Council. The City Council discussed the issue. The conclusion was that there wasn't anything to do about it if the building meets the requirements in the zoning ordinance. It would be good if the adjacent property owners were given consideration. Alan Cunningham of Mountain River Engineering requested City Council approval of the Preliminary Plat for Eagle Pointe and approval of the Final Plat for Eagle Pointe Division No.4. Councilmember Folsom moved to accept the Preliminary Plat of Eagle Pointe and the Final Plat of Eagle Pointe Division NO.4. Council member Waite seconded the motion. Roll call vote: Folsom - Yes; Waite - Yes; Anderson - Yes. The motion carried. George McDaniel reported on the Quail Ridge well (Well No. 9 on Bit Q'Heaven lot). The pump house and well are finally on schedule. The pump house will be complete September 6 except the insulation. It is necessary to wait until the electrical is in. The tank is installed. The pump is installed. The booster pumps and in-line valves have to be installed. The installer will be on the job on Monday, and it should be complete in a week or ten days. Hopefully the well will be ready City Council Meeting, September 5,2002 - Page 6 to test in two weeks. Attorney Scott Hall reminded that there needs to be a sit down session with the City Engineer, the developer of The Cottages, the developer of Quail Ridge, and other interested parties regarding the amendment to the Development Agreement pertaining to reimbursement for costs. Mayor Ard opened the Public Hearing to consider a fee increase for utilities. Notice of the hearing was published in the Post Register on August 22, August 29, and September 5,2002. The Mayor swore in all parties who were interested in presenting testimony. Councilmember Anderson explained the proposed fee increase and the reasons to justify an increase. There was a misconception about the way the hearing notice was published in the newspaper. Residents thought there would be 105% increase. That was the legal wording from the State of Idaho. If the proposed rates for 2003 are 105% of the rates for 2002, a public hearing is required. A simpler way to say 105% of last year would be a 5% increase. Since the City is proposing more than a 5% increase, we are conducting the public hearing for public input. The City Council is actually proposing a 58% increase on sewer only. The water and garbage are not affected. An informational sheet entitled "Sewer Costs and Proposed Residential Rate Justification" was prepared and distributed to the audience. (Copy is attached as Exhibit A) The current residential sewer rate is $16.75 per month, and the proposed rate is $26.50. Council member Anderson explained and followed through the informational sheet. Mayor Ard explained the retroactive flow charges. To cover the sewer costs it takes an estimated $23.50 per month per household and $3.00 per month has been added to help build our capital improvement reserves. Currently we are tied to City of Idaho Falls. All of our sewage goes to their system for treatment. For about a year, Mayor Ard has been working with a group on a Regional Sewer Feasibility Study. The group includes City of Shelley, Bonneville County, Bingham County, City of Ammon, and lona Bonneville Sewer District. A steering committee has been formed. The study will be finished in October. The study is looking at the feasibility of a regional sewer plant at Shelley. All the sewage from Beeches corner would go south to Shelley. City of Idaho Falls has some environmental problems coming up. The Department of Environmental Quality (DEQ) is supporting the study. They would really like to see the regional sewer go. There will be public hearings and citizens should plan to come to the hearings. Grants are available, but in order to take advantage of them, it is necessary to have matching funds. We are trying to build our capital improvement resources. A map of the regional sewer service area was shown. The system would be a gravity system featuring new technology to eliminate environmental problems. The numbers are preliminary at this time. City Council Meeting, September 5,2002 - Page 7 Councilmember Folsom stated that in 2013 our sewer contract with the City of Idaho Falls would run out. They have made us aware that they are not willing to extend the contract. We need to plan ahead and to be prepared. Council member Anderson said it is a choice with coming up with reserves or bonding. Bonding generates interest and the reserves make it possible to apply for grants. Dennis T. Earl, 3089 Stoneridge Circle, asked: Is City of Ammon locked into the contract with City of Idaho Falls until 2013? We have to give some notice, but we can opt out before 2013. The Mayor believed the notice time to be less than a year. In terms of what you know about the plan at this point, are they contemplating doing something before 2013? What might the time frame be? The study looks promising. The increased sewer rate would easily make it possible to get funding for the project. When the study is finished, we will have a better idea. The time frame is probably four to five years. Dennis T. Earl asked if homes in the lona Bonneville Sewer District are paying for sewer at the same rate as residents of City of Ammon. IBSD is on contract with City of Idaho Falls. They pay their flow charge to Idaho Falls, and they do their own billing. They pay a fee to the City of Ammon for flow that goes through Ammon lines below the IBSD meter station. All the parties that go into the new regional system will have to come up to the $26.50 rate. The retro amount covers the period July 1, 1999 to April 30, 2001. Dennis Earl expressed appreciation to the City Officials for working towards a better system. Jeff Miller, 390 Advantage Lane, asked for clarification of the proposed rate. It is proposed to be $26.50 per month total and not in addition to the present rate. Water, sewer, and sanitation funds are enterprise funds to be used only for water, sewer, and sanitation. Joseph Filutze, 3085 Willowwood Circle, asked about the amount of the reserve fund for sewer. According to the audit, there was $652,403 in the Sewer Improvement Fund as of September 30, 2001. Some has been used and we have added some from sewer connections and interest. After we pay for the Hitt Road Sewer improvements, it is estimated we will have about $300,000 in the Sewer Improvement Fund. Joe calculated that in a two-year period the Ammon residents will see a 68% increase. This is a big difference from what City of Idaho Falls residents pay for utilities. He doesn't think that too many families in Ammon can absorb those types of costs. We pay the highest rate for water. We pay the highest rate for sewer and probably for garbage. He thinks it is unfair. Maybe it is time to think about floating a bond. Russell Swensen, 2660 Central Avenue, expressed appreciation for the information passed out. What was the reason for the under-billing? When the City Council Meeting, September 5, 2002 - Page 8 City of Idaho Falls came to us with a big increase, we opposed it. We asked for justification. When was the last time the City lines were checked for leaks of irrigation water? Some lines were checked a year ago. Also, we dug up the lines and corrected an irrigation leak on Ammon Road. If there are irrigation leaks going into the sewer system that affects the cost. For information, he reported on City service rates charged by City of Rigby, City of Shelley, City of Rexburg, and City of St. Anthony. He expressed concern for widows and those on fixed incomes. He complimented the Eagle Scout who brought around information on conserving water. The Mayor and City Council has a big job ahead. He likes to take things in smaller bites. The commercial rate is also proposed for an increase of 58%. Steve Fuhriman, 1810 Avocet, asked what is the major cause for the increase? We have not increased the sewer rate when we needed to increase. Now we are looking at a larger increase. The retroactive flow charges are a temporary problem. Another factor is the new treatment plant. We need to plan ahead. We need to decide if we want to anticipate and try to save money or to ignore it and be forced into bonding. The probability of having to face this within the next ten years is almost 100%. It has nothing to do with the growth? No. How much is the present connection fee for a new home? The water connection fee for a one- inch line is $600. We are looking at changing the sewer connection fee from $600 to $900. The Fuhriman family is using less of the services than they used five years ago yet they are charged almost twice as much. It is hard to understand. Am I mandated to use the garbage service? Can I do my own garbage removal? According to the ordinance a resident has to pay for the service whether he uses it or not. Tom Lenderink, 4105 Wanda Street, asked about the affect Wal-Mart will have on the City of Ammon. We are dealing with flow and Wal-Mart is not likely to be a big user. City of Ammon has a low tax levy rate. Sales tax is apportioned by the State based on population. Jerry Mitchell, 3751 Marlene, stated it is important to realize how difficult a big increase is on those on a fixed income, but the City Council has to juggle items to make things balance. The low property tax in Ammon is an asset. It is a bargain dollar and cents-wise to live in Ammon. Jeff Miller said it seemed to him that things are a little premature. Do we know we won't have to bond even if we raise the rates now? There is no guarantee that we will not have to have some bonding. If we do not have some reserves, there is no way to get the grants. Grants do not have to be paid back. Bonds have to be paid back with interest. The estimates presented are conservative. The reserves have been accumulated from connection fees, savings, and interest. The reserves are only used for capital expenses. We can't wait until City Council Meeting, September 5,2002 - Page 9 2012 and know we have to do something about the sewer by 2013. Jeff said it seems like we should know in a couple of months if the regional project is going to happen and how many dollars for it. Councilmember Waite said new homeowners are paying a share. Six years ago the sewer connection fee was $300. Now it is $600, and we are looking at $900. Kip Nelson, 3740 South Hidden Haven, said it is a difficult situation as the City continues to grow with residential and with commercial. Everything grows. He wondered about a mix between bonding and building a reserve. Has there been any research about a step increase? The Mayor said it looks like it may take both grants and bonding. Kip was concerned about a 58% increase for sewer and what about other increases for other services. Water rates were raised last year and the sanitation funds are good. The new well on the hill is going to benefit the whole City. The well is coming on line at the expense of the developer and it will save the City from drilling a well. It is hoped that the figures will hold, but we do not know. The commercial growth has helped both the City and the School District. Esther Bramwell, 2983 Courtyard Circle, said she wished there were a more equal way to assess those with only one in a family. When she looks at a 58% increase, she wishes her Social Security check would increase 58%. She wishes when she goes to the drugstore to get her prescriptions that they would lower them 58%. For a widow it is rough. When you take 58% from a fixed income, that is a lot of nickels and dimes. Alyce Clegg, 2955 Carolyn Lane, asked if there was any way the people working on the budget can call other cities and compare to see why others are so low. What are they doing right to make it happen? What are the other communities doing? We have checked with other communities. Other communities are struggling. Every governing body chooses how to fund. Ammon is pro-active. We could set back and wait for things to happen. We try to make it so we do not pay interest. We use the interest to help us save money. The commercial pays their share. Joe Filutze asked when does the increase go into effect? (October 1, 2002) Does the City have a breakdown on water like the sewer information figures? Joe argued that City of Idaho Falls residents pay so much less for utilities than Ammon residents. He suggested decreasing the water charge and adding it to sewer to keep the rate the same. People can't afford all the increases. It is not fair. Sometimes it pays to sharpen your pencil to help other people. He would like to see the figures to see what it costs for water. It does not cost $18.25 per month to maintain a water system. City Council Meeting, September 5,2002 - Page 10 Councilmember Anderson stated her opinion. Every service ought to pay for itself, and the users ought to pay for the service. Lorna Erickson, 2935Meadow Lane does not see the logic in not being able to transfer money between funds. She has to in her household budget. City funds have to be used for the fund collected. When we say we have a strong water fund, we expect to have some money left over that we can put in the reserves. A medium water fund means it is paying for itself. A bad water fund means we are taking money out of reserves to pay expenses. In our sewer fund we are dipping into reserves to pay expenses. We cannot continue to do this. Lorna was in favor of increasing a little at a time. Aaron Anglin, 1710 Avocet, is a new homeowner. He got a rude awakening. Newlyweds have a tough time budgeting to buy a home. He wished there were some other way to solve the problem besides the big increase. The City's choice now is whether to put money into a reserve fund so we can get grants or to keep the rates low. He wasted his evening to come talk. The City Council has already decided. Engineer Manwill explained that those working on the sewer feasibility study are encouraging two things for the participants. One is to have the reserves because that affects what interest you pay if you do bond. If you don't have reserves, you pay a higher interest rate. Also, on the eligibility for the grants they look at the City's solvency. If you have reserves, you are more likely to qualify for a grant. The fastest the construction on the new sewer could happen would be within three years. That is extremely optimistic. Another thing they look at on grants is rate structure. Grants are given to the most responsible. Jeff Miller asked how much reserve we need. He wondered if there was some goal. Engineer Manwill said the estimates that have been done on the feasibility study say that if there are no grants, the debt service, the operation and maintenance of the facility would be some where in the $26.50 per month range in today's dollars. Grants should minimize future increases. The two factors, which are critical on bonding and obtaining grants, are the reserves and the fees. On the reserves, they like to see nine months, but they prefer 18 months operating costs. You can't build the reserves too fast. You need both the reserves and the rate structure when they evaluate the City. There was a discussion on building reserves. Wayne Jemmett, 3040 Talmage Street, asked about feed back from other entities participating in the regional sewer study. lona Bonneville Sewer District is in about the same situation as Ammon. City of Shelley is in trouble now. Bonneville County and Bingham County would like to eliminate the septic systems. DEQ is strongly supporting. Mayor Ard named the members of the City Council Meeting, September 5,2002 - Page 11 steering committee. The other entities are looking at the same proposed rate. Some may have an existing indebtedness to include. Some may choose to do the increase in steps. Renee Ries, 3575 Samuel Street, asked what becomes of the $4.64 being collected for the retroactive charge after it is paid. At that point there would be an option to put the funds in the reserve or to adjust the rate. Attorney Scott Hall said something that has not been said, that people do not seem to realize is a City Council is elected every two years by vote. Any City Council has no ability to bind a future City Council. It is an independent decision by each Council during the term of their office. Mayor Ard closed the Public Hearing and opened the meeting for City Council discussion on the proposed increase. Councilmember Anderson said they had talked before about smaller rate increases more often versus a larger rate increase less often. She would be willing to go with a rate of $23.50 per month. She does not feel good about a lower increase because she does not feel good about taking money out of the improvement fund. If we go with $23.50 we are looking at a 5% increase every year. By the time the sewer comes on line a 40% increase this year ($23.50) and 5%increase every year would be approximately at the rate we should be. We can increase 5% a year without going to public hearing. Councilmember Folsom said we are walking a fine line. If we go on board in five years, we are looking at applying for grants in three years. She does not feel good about not putting something in reserves. An increase of $24.50 would at least provide us some for capital improvements. We have lots of things coming up. For example, there is upsizing of lines for development and major update to the Ross Avenue lift station. We are jeopardizing the stability of the City by not taking the jump. A lesser amount would not include reserve for only one year. Attorney Hall and Engineer Manwill provided input. The discussion continued. The Council preferred to do the one increase now and not to have to increase every year. The residents appear to prefer to do with smaller increases and have the Council revisit it when the numbers are more solid. Councilmember Waite stated his first inclination was to go with the total increase of $26.50 or $26.00 per month. If we can compromise a little that would be okay. We need to have a reserve. It covers us better. The discussion continued. City Council Meeting, September 5,2002 - Page 12 Mayor Ard thought that we could make it work either way. A lot of our building permits are on property served by the lona Bonneville Sewer District. The sewer connection fee is paid to IBSD for those permits. There are lots of variables that we do not know about. Councilmember Folsom moved to approve Resolution No. 2003-01, a resolution establishing rates to be charged for water, sewer, and garbage as printed, except on the RP/RPA zones and all other zones under the single family section and the apartment buildings the $26.50 rate in all three of those sections will be changed to $25.00 per month. Councilmember Waite seconded the motion. Roll call vote: Folsom - Yes; Waite - Yes; Anderson - Yes. The motion carried. Jay Johnson talked about the parks. Regarding the park in Eagle Pointe, Jay decided to lend a little influence and, as a result, Kirt Schwieder seeded the whole park. He requested a letter of thanks from the City to acknowledge Kirt's help. During development, we have talked about parks in the Briarwood Addition. A park in Briarwood has not materialized so Jay Johnson came to make a donation from Rockwell Homes. A check was presented to the Mayor for $20,000 for the Parks and Recreation Department to be used for playground equipment. Jay suggested a tag be placed on the equipment to say thanks to Lawrence and Zola Ricks for all the years that they have been part of Ammon. It was also suggested that we encourage use of the park by the community and not just the residents of Eagle Pointe. Alyce Clegg, 2965 Carolyn Lane, just moved from Central Avenue. She came to the meeting to complain about 3385 Owen Street. A complaint has been filed and the City Office has been called but nothing gets done about it. She wanted to tell the City Council about the problem. Two neighbors helped Alyce tell the Council. Jesse Sandoval lives there, and his father is George Sandoval. They do derby cars and they currently have fifteen junk cars on the property. The house is old and rundown. It is a major fire hazard. The house also has termites, which are infesting the other homes in the neighborhood. Their radios blare at late hours. There are beer bottles and old car parts all over. David Wadsworth interpreted that if the car is runable it is not a junk car. It would be advisable to have a professional look at the termite situation to make a determination. A report would be helpful before the City takes action on the termites. This is the place that we have asked the owners to move the cars by September 15, 2002. If the cars are not gone by September 15, we will file a nuisance complaint and ask the Sandovals to come in. The City Council will act as an arbitration board. If the cars are determined to be a nuisance, the City can have someone tow the cars away and bill the owner. The individuals who filed the complaint can come to the City Office and read the ordinances. Alyce and her neighbors also pointed City Council Meeting, September 5,2002 - Page 13 out that another neighbor is operating a commercial business selling cars at his residence. Attorney Hall recommended that they get a business card, letterhead or something to establish the neighbor has a business. Then the City Council has some latitude to do something about it. Attorney Hall stated we seem to have two issues going. One is on the lot with all the cars and we are working to get the cars moved. As soon as the cars are moved, we should send out a letter to Sandovals indicating that we are not going to put up with these conditions in the future. This may help to abate it from happening each year. On the second problem we need documentation to establish a commercial business. Alyce and her neighbors were given a copy of the general nuisance ordinance. They will plan to come to the next City Council meeting. There is some language in Title 8 of the City Code that needs to be changed to agree with the Resolution No. 2003-01. Attorney Hall recommended that the City Council read through a copy of the City Code to edit it. It is not an emergency but it is something we should try to clean up. A new tree ordinance has been passed, but the old section of the Code needs to be reviewed to see if anything was left out. Alan Cunningham reported on the amendment to the Quail Ridge Development Agreement regarding reimbursement for the water lines. Mark Johnson has reimbursed the developer for Cottonwood Hills Estates. Brad Pickett and George McDaniel will have to settle the reimbursement costs. The concern of the attorney was the way it is coming down the City is going to be caught between the two developers. That is what we are trying to avoid. The amendment was necessary because the waterline reimbursement was completely left out of the Development Agreement. We need the agreement of both developers to protect the City. Reports: David Wadsworth reported for Public Works. The well up on the hill has a building over it with part of a roof on. Attorney Scott Hall reported that he had not been able to find a signed and recorded copy of the Wal-Mart Development Agreement. The City Clerk plans to track down the agreement. A contract is needed with Falls Water for a back- up operator. The agreement is getting worked on. There is a question on transfer of a liquor license for Texas Roadhouse. Forms are available from Alcohol Beverage Control. In C.C. 4-2-10 there is a problem with the way the language was corrected. The correction appears to be in error. Coucilmember Waite has had conversations with the City Office about enforcing the parking ordinance for boats and RVs in Stonehaven. Jay Glick has been City Council Meeting, September 5,2002 - Page 14 giving warning tickets. Some have been given on Sunnyside Road and Falcon Drive. If the vehicle does not get moved, Sgt. Black has been putting on a tow ticket. We should be enforcing the law so people do not have to complain. Councilmember Folsom reported on the parks. Engineer Manwill reported that the signal system is going in on Curlew and 17th Street. We originally asked for video detection, but the designers told us that it would not work at that location. The signal was designed differently. When the contractor started work, we talked about video and he said it should work. After discussions, it is going back to a video detection system. The signal system maintenance problem has been solved. The contractor who is doing the installation will maintain it. Any expenditure that is to be paid out of the 2002 Fiscal Year Budget needs to be turned in as early as possible in September. Cell phones were discussed. Mayor Ard is working on a contract. Claims were approved. Councilmember Anderson moved to adjourn the meeting to an Executive Session to discuss personnel matters, and Councilmember Folsom seconded the motion. The Regular Meeting was adjourned at 11 :25 P.M. Mayor Attest City Clerk City Council Meeting, September 5, 2002 - Exhibit A City of Ammon Sewer Costs and Proposed Residential Rate Justification Current rate: $16.75 Proposed Rate: $26.50 (58% increase) Estimated Costs for 200212003 Fiscal Year: 90% Monthly Costl Residential Household 1 Flow Charges to Idaho Falls 2 $395,000 $355,500 $17.17 Retroactive flow charges 3 106,668 96,001 4.64 Salaries 20,800 18,720 0.90 Benefits 8,000 7,200 0.35 Engineer 5,000 4,500 0.22 Legal 3,500 3,150 0.15 Electricity 2,750 2,475 0.12 Postage & Mailing 2,000 1,800 0.09 Operations & Maintenance 500 450 0.02 Chemicals 300 270 0.01 ISBD payments & fees -3,989 -3,590 -0.17 Total $540,529 $486,476 $23.50 Capital Improvement Reserves 4 $70,000 $63,000 $3.04 Total with Reserves $610,529 $549,476 $26.54 1 Estimated residential connections: 1,725 2 Flow Charges to Idaho Falls are based on total flows through metering stations since individual connections are not metered. 3 The city has currently paid 15 months on a 30 month agreement with Idaho Falls for underbilling of previous year's flow charges. The city proposes to increase the amount of Capital Improvement Reserves by this amount when the contract is paid. 4 The sewer improvement fund is money set aside for capital expenditures. The Hitt Road . sewer improvements will come from this fund and will be about $237,000. In addition, this year the amount residents paid for sewer was lower than the actual expenses, so the amount is made up from this fund. This fund started the year with about $650,000 and will only be about $300,000 after this year's sewer expenses and the Hitt Road sewer improvements. Ammon's contract with Idaho Falls expires in a few years. Any major sewer improvements the city undertakes would either have to be funded with this reserve or else would have to be bonded for. Having reserves allows a city to apply for grants that require matching funds. On the other hand, bonding carries with it additional interest costs.