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Council Minutes 07/11/2002 CITY OF AMMON July 10 and July 11, 2002 A Special Work Meeting of the Mayor and City Council was held on July 10, 2002 in the City Building, 2135 South Ammon Road, Ammon, Idaho, at 12 Noon. The purpose of the meeting was budget preparation for the fiscal period October 1, 2002 to September 30, 2003. The City Council reviewed the "want lists" of various departments, the actual revenues and expenditures of the current fiscal year and worked on projections for revenues and expenses of the new fiscal year. Minutes of the Public Hearing and Regular Meeting of the Mayor and City Council held July 11, 2002: 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 Council member Karen Y. Anderson Council member W. Lee Bean Councilmember Leslie Folsom Council member Randy G. Waite Attorney W. Joe Anderson Engineer Bill Manwill Public Works Director David Wadsworth Fire Chief Clarence Nelson City Clerk Aleen C. Jensen Others Present: Alan Cunningham, Mountain River Engineering George McDaniel, Quail Ridge Developer Brad Pickett, The Cottages Developer Tom Hunsaker, 2925 Carolyn Lane, Ammon Maxine Hardy, 3745 Georgia Lane, Ammon Kurt and Pamela Zorn, 5127 Brennan Bend, Ammon Ryan and Dana Kirkham, 2395 S. Fieldstone Court, Ammon Lee Gagner, Homestead Realty Councilmemeber Folsom led the Pledge of Allegiance to the Flag and Council member Bean offered a prayer. Maxine Hardy reported on the Planning and Zoning Commission Meeting held July 2, 2002. A public hearing was held to consider revisions to the zoning ordinance C.C. 10-5-23, Required Parking and Loading Areas and C.C.10-29-13, City Council Meeting, July 11, 2002 - Page 2 Site Plan Review. There was no public input. The Commission discussed the revisions and will discuss them further before recommending the revisions to the City Council. The Final Plat for Cottonwood Hills Estates was recommended for approval subject to the right-of-way on Crowley Road. George McDaniel gave a progress report on the well for Quail Ridge and The Cottages. All the parts have been ordered for the system and shipment is scheduled for July 21, 2002. Attorney Anderson prepared a Construction Contract for review and signature so that the insurance company can complete the performance bond. The contract is an agreement between the City of Ammon and Hillpoint Properties, a limited liability company by George McDaniel, managing member and Monopoly Properties, a limited liability company with Brad Pickett as managing member. A couple of changes were recommended by the City Council. Item No. 3 should read "performance bond to be issued in the amount of $215,000." Item No. 1 reads fine, but Council member Bean recommended an addition on the end "to cause the system to be connected to the water system of the City of Ammon in an operable state". Action on the Construction Contract was delayed until later in the meeting to allow the developer and the Council members time to read it. The City Office has not been withholding the issuance of the building permits in either Quail Ridge or The Cottages. George McDaniel inquired about the request for power service for the new well. Utah Power would like the service to be in the City of Ammon's name rather than the developer because the service will continue after development is complete. George McDaniel had an order number, which he left with the City Clerk to call in the request to Utah Power. The City Council requested a copy of the well bid and a letter from the builder to say he will honor his bid to the City, if the City has to take over. Fire Chief Nelson reported for the Fire Department. The grant from The Bureau of Land Management is supposed to be coming in any day. It is a 90%-10% grant. The grant is for $8412. BLM pays 100% and the City of Ammon does four hours of BLM training to pay their 10%. The radios have been purchased from Teton Communications and they will wait for payment until the grant funds are received. Chief Nelson reviewed the latest Fire Incident Report for the City Council. Councilmember Anderson raised an interesting question with Attorney Anderson about the tracking of the 911 funds that are paid on the telephone bill. He did not know where the funds go and how they are dispersed. Attorney Anderson called Judy Brower, our accountant, and she agreed to find out as part of her auditing trail. City Council Meeting, July 11, 2002 - Page 3 As far as the FBI background checks, Attorney Anderson has not heard back from Idaho State Police as to our request for approval of the redrafted ordinance. Alan Cunningham of Mountain River Engineering discussed the Final Plat for Cottonwood Hills Estates. The subdivision is planned for development by Mark Johnson. It is east of Crowley Road. The Planning and Zoning Commission recommended it for approval with the condition that the developer showed Engineer Manwill that adequate right-of-way is provided for Crowley Road. The concern was about the intersection of Chamberlain and Crowley Road. The plat provides for fifty (50) feet from the centerline of Crowley Road, which would ultimately become the full right-of-way once the other side is developed. Based on Mark Johnson's legal description and deed, he owns to the section line. The development agreement was sent to Attorney Anderson and Engineer Manwill on this meeting day. The development agreement follows the standard form. Alan Cunningham explained Lot 1 A, which is a non-buildable lot but it is a platted lot to clean up the development. Engineer Manwill has the improvement drawings and the development agreement for approval. The final plat is to be scheduled on the City Council meeting agenda for July 25,2002. George McDaniel reported that he is agreeable with the Construction Contract as amended. Councilmemb~r Bean moved to accept the Construction Contract with the changes designated and to authorize Mayor Ard to sign the contract on behalf of the City of Ammon. Council member Folsom seconded the motion. Roll call vote: Bean - Yes; Folsom - Yes; Waite - Yes; Anderson - Yes. The motion carried unanimously. The developer agreed to sign the agreement in the attorney's office on July 12, 2002. Mayor Ard attended a meeting with the Department of Environmental Quality (DEQ) on the regional sewer study. DEQ is really behind the project. They want to see it work. One concern was about the rates and how everyone felt about them. It is estimated the rate will be $26 per month. The feasibility study is scheduled for completion in October or November. At that point in time, the entities will decide what to do. Everyone wanted it fair and equal. When the study is complete, there should be some good numbers as far as cost and, if it is decided to go forward, they will start working on funding. Good work has been done in the preliminary plan as far as environmental. This will be a benefit when it comes to planning and the actual design. It was a positive meeting. Kurt Zorn, lives at 5127 Brennan Bend in The Cottages. He attended the meeting to get an explanation on the progress with the water situation and an update on the road situation in The Cottages. The developer is responsible for developing the roads and then to give them to the City for maintenance when they are finished. Brad Pickett reported it would be 2% to 3 weeks before asphalt is complete. Mayor Ard explained that we are looking at September 15 for City Council Meeting, July 11, 2002 - Page 4 completion of the well. The developers have installed a variable speed pump to take care of the immediate water problems. The City has requested the Performance Bond to assure the completion of the new well. If the well is not completed by September 15, the City can exercise their rights and complete the well. The contractor and pump company have agreed to honor the bid prices to the City. The power will be put in the City's name immediately. Brad Pickett is responsible for The Cottages and George McDaniel is responsible for Quail Ridge. Both developers need to make sure the system works. They will keep the City posted. A number of problems have been experienced with the development. The water system and pressure problems were discussed. The variable speed pump should regulate good pressure for The Cottages and Quail Ridge until the new well is in. Mayor Ard opened the Public Hearing to consider the request of Lee Gagner for a rezone from R-1 to C-1 of property located on the southwest corner of Crowley Road and East 17th Street which is in the Eagle Pointe addition. Notice of the Hearing was published in the Post Register on June 25 and July 2, 2002. Also notices of the hearing were mailed to property owners within 500 feet and to other interested parties. Alan Cunningham of Mountain River Engineering was sworn in to give testimony. Alan Cunningham explained the history of the request. The Planning and Zoning Commission held a Public Hearing and they made a recommendation to City Council. Lee Gagner wants to rezone a piece that is currently R-1 to C-1. The City Council discussed whether or not to have a second public hearing. There were concerns about generating more commercial property. Alan talked to Lee Gagner about some of the concerns, and they have addressed some of them. Maps of the property were distributed to the Council members and the existing zones of the Eagle Pointe addition were pointed out. They would still like a square piece behind the Anderson homestead to be zoned C-1. When Planning and Zoning considered annexation of the County Islands, they recommended that the Anderson homestead be zoned C-1. If this were approved, it would make a large commercial square on the corner. A piece of property to the south of the proposed C-1 has all ready been advertised for rezone to R-3A. If this were approved, the developer would come back to request the rest of the property along Crowley Road to 21 st Street to be rezoned to R-3A. This would serve as a buffer to the residential zone on the south and the commercial property on the north. The property requested for rezone is presently annexed to the City of Ammon. There is a lot of lava on the property and it is hard to build homes with basements. The Council discussed what could go in an R-3A zone. The proposed commercial would be within harmony of the Comprehensive Plan. Councilmember Bean stated he did not want to see a lot of commercial development east of Ammon Road. The property can not be developed into City Council Meeting, July 11, 2002 - Page 5 residential housing so it probably makes sense to move the commercial area to the south. It appears the developer is willing to stop the commercial at a point and transition it with R-3A. The development agreement can include limitations. Lee Gagner, property owner, arrived at the meeting. He provided additional input. The corner is currently zone C-1. Plans are to develop some of it with four-plexes. As plans were discussed and there were concerns about extending the C-1 along the major roadway, it was suggested a rezone to R-3A. This would provide a buffer from the street that will come out on to 21st to the R-1. There was concern that the R-3A would allow more uses than the City favors. The intent is to buffer with four-plexes so an R-3A is not more important than an R- 2A. Either zone gives the developer the ability to put in apartments. Lee Gagner agreed to accept an R-2 zone. He will come back for a public hearing to consider the rezone of the additional strip of property along Crowley Road that was not part of this request. The apartments are intended to be rentals, but they are engineered as townhouses so that eventually they can be sold as single units. There was no objection from adjacent property owners. Regarding the Eagle Pointe subdivision, Council member Folsom moved to change the existing R-1 zone on the northwest parcel adjacent to the Anderson property to be C-1 and the small elongated section on the south to be rezoned from R-1 to R-2 Council member Anderson seconded the motion. Roll call vote: Folsom - Yes: Anderson - Yes; Bean - Yes; Waite - Yes. The motion carried unanimously. The City Council has been considering annexation of County Islands. Mayor Ard asked Lee Gagner for input on annexations. Lee Gagner explained that he was the sponsor of annexation legislature. The issue that came to light concerned County Islands in a city and what could be done with those. At first the discussion involved any island in the city, but the legislation was modified because there were a number of industrial companies that might qualify. There was opposition to that. There was also opposition to bringing in large sections of undeveloped land. Therefore, they used the language residential islands. At this point, residential islands in a city can be annexed without even taking it through a public hearing process. There are three designations of how annexations are to be handled. The legislation was effective as of July 1, 2002. The island has to be totally surrounded unless it rests on the impact area of another city. There is no requirement to provide services. Lee Gagner thanked the Mayor and City Council for the cooperative efforts to develop the park in Eagle Point. The new Parks Director Ken Knoch and Public Works Director David Wadsworth have been good to work with. Mayor Ard explained that when the City Council made the motion to approve the rezone of the parcel in Eagle Pointe, we technically had not closed the Public City Council Meeting, July 11, 2002 - Page 6 Hearing. He inquired of Attorney Anderson what to do about correcting the problem. Attorney Anderson advised to adjourn the Public Hearing and to adopt the motion by reference. Mayor Ard closed the Public Hearing on the Eagle Pointe rezone and adopted the motion by reference. Council member Bean had a question about annexing the County Islands. "What have we offered to let them hook up to without charge?" Councilmember Folsom responded "water and sewer". Engineer Manwill stated that we have to charge the connection fee on sewer because the contract with Idaho Falls requires it. The City can only waive the water connection fee. The next question was have we set up a public hearing for annexing the County Islands or do we want to continue to have a public hearing. Council member Folsom said she does want to continue to have a public hearing and we have not set up a public hearing. She was unsure, since the new annexation law came in, if we wanted to take on the properties that are not totally surrounded. There was discussion at to whether or not all of the properties qualify as islands. Lee Gagner advised, if the property does not qualify as an island, the City would go to a step two annexation. Step two is a public hearing process with notice. It is more difficult to force the issue with one side open. All the properties that City of Ammon advertised for annexation in the County Island notice are within the City's impact area. However, some of them are only bounded on three sides by City. All of them can still be annexed with the hearing process. The Council favored still considering all the properties for annexation and to make a decision on each one individually. Discussion continued on which properties could be annexed without public hearing. It was decided to hold an informational meeting with the owners of the properties being considered for annexation. A meeting was scheduled for Thursday, August 8th at 7:30pm. Following the informational meeting the City Council will decide what to do about scheduling a public hearing to consider annexation. Councilmember Bean asked about the status of the Final Plat for Briarwood Division No.6. Engineer Manwill said he did not sign the plat because he wanted to see the Improvement Drawings first. The Final Plat was approved on June 6, 2002. The Development Agreement makes provision for Adam Lane to go through, but there will be an unplatted strip between McDonald Farm and Briarwood. The unplatted strip leaves the irrigation ditch in. The Development Agreement has been recorded. Another question from Councilmember Bean concerned development within our impact area. The impact agreement says that the County ordinance will be as close to Ammon's as possible. Development will be to Ammon's standards City Council Meeting, July 11, 2002 - Page 7 and Ammon's ordinance. Bonneville County Planning and Zoning sends notice to City of Ammon of the zoning matters that come before them. Bonneville County's Comprehensive Plan states that residential development has to be on community water and sewer. Quail Ridge came to Ammon because Bonneville County required them to have a community sewer system. The only time the County Commissioners are allowing a septic system is if there is not a community system available, and they can show that it is not economical to develop a community system. There was a discussion on an outside the city utility contract. Councilmember Folsom encouraged considering higher rates for outside City service if the City decided to offer services. Engineer Manwill advised EPA policies regarding sewer say you can only charge the actual additional cost beyond what it would cost to service City residents. Costs for outside City sewer services are documentable. If the City offers water, the City can do what they want provided they funded their own system. Reports: David Wadsworth reported for Public Works. The crew has been working on waterline repair. There is one more waterline to do and they will begin road patching. Councilmember Folsom asked about the water leak on Meadow Lane. It was a water valve that had been leaking for about three months. It needed to be jiggled a little and it will shut down without digging it up for repair. It will seal itself off. Councilmember Anderson asked if there were any roads in Ammon that were beyond patching and needed to be redone. Public Works Director Wadsworth responded there are a few that are pretty close. Meadow Lane is one of them. It is pretty well passed the prime. A scrub coat on top of it should make it last for four or five years. There is not a list of roads the City is planning on redoing in the next five years. Some of the roads need seal coat and crack sealing. Some of them will be done this year. Councilmember Anderson stated the Fire Department wanted to consider imposing a 1 % fee of the cost of commercial construction for fire protection. She wanted to know if that would require a public hearing. Attorney Anderson asked how it would be imposed and if it is a tax. It is more like a fee with a building permit. It is understood that City of Idaho Falls charges 1.2% on commercial construction. That money is given to the Fire Department to upgrade their equipment. When Wal-Mart comes in, the City will have to upgrade equipment. Eventually, when enough commercial building comes in, there would be funds set aside to do the upgrade. There was a discussion on whether it would be a tax or fee and how to impose it. A public hearing would be in order for a fee if it represented a 5% increase. Another concern was what type of commercial construction would be included. Apartment units have greater demands on fire protection. Any units built in a zone greater than R-2 should be included. The City Council Meeting, July 11, 2002 - Page 8 time to consider imposing a fee would be during the budget process. The building permit fee charged to Wal-Mart was reviewed. Engineer Manwill commented that he thought a fire protection fee sounded like an impact fee. Anytime you anticipate capital expenditures that an entity has to make and the entity collects from a developer for those capital expenditures it is a definition of an impact fee. You have to go through a process to establish an impact fee. Wal-Mart has requested us to go to a 5" hose for fire protection. There is no other place in the City that requires a 5" hose. Although we could utilize a 5" hose in other places. The fire department included money in the new budget for a 5" hose. There was discussion at to whether we need a 5" hose or we are doing it just because Wal-Mart has asked. The department needs to be able to put out a fire in Wal-Mart. Fire Chief Clarence Nelson explained they need it for the water to get to the trucks from the hydrant. Council member Bean suggested that the 5" line is not a requirement. It is a benefit. We need to go back to Wal- Mart to tell them we do not have the budget to pay for it. If Wal-Mart wants a 5" line, they need to step up and pay for it. A business can agree to pay anything they want but if the City requires them to and it is for future capitol expenditures it sounds like an impact fee. Every state has an impact fee statute. An impact fee has to stay with the fund for which it was imposed. Attorney Anderson agreed to research types of fees, impact fees and how to impose fees and how to set up dedicated funds. Tom Hunsaker provided input from his experience with impact fees and dedicated funds. Council member Bean stated that when the 911 was set up it was dedicated funds for bond reduction and capitol improvements. The 911 fund was not for any type of operation costs. Ron Longmore, County Clerk/Recorder, can probably supply information on the 911 funds. The Sunnyside Road update meeting is supposed to be Wednesday, August 17th at 9:00 a.m. Details of the project were discussed. The meeting agenda packet contained information on zoning ordinance changes for parking and loading zones and site plan review. The Council was asked to study them for the next meeting. Councilmember Anderson recommended that the Council consider whether a commercial business has enough parking for their customers plus parking for their employees. The City Clerk explained Homestead Construction has applied for a building permit for a four-plex in Eagle Pointe in a C-1 zone. Bonneville County has completed the plan check for the permit. They insist the construction plans are City Council Meeting, July 11, 2002 - Page 9 not for apartment construction. They are to be townhouse construction. This requires four separate connections for water and sewer. If the four-plexes are to be apartments, different plans are required. Homestead wants to build as single family units but to rent them until such time as it may be feasible to sell as individual units. They provided a Declaration of Covenants. Attorney Anderson was asked to review the declaration. There was a question about whether the lot was big enough for four units. Tom Hunsaker was of the opinion that the lot size was adequate. The cell phone contract is up on August 20, 2002. It was recommended that the Council review the contract to consider renewal and the addition of another telephone for the Parks Director. Cell phone costs were discussed but no decision was reached. Tom Hunsaker reported that, when Wal-Mart's building permit was issued, it was issued contingent upon increasing the landscaping in two areas. It was noted on the building permit "This permit granted subject to adjusting landscape buffer between Falcon Street and parking lot." It was recommended that Planning and Zoning send a letter to Wal-Mart representatives to make sure they are aware of the landscape conditions. Claims were approved. Council member Bean moved to adjourn to an Executive Session to discuss personnel matters. The Council was unanimous in favor. The regular meeting was adjourned at 10:15 p.m. Mayor Attest: City Clerk