Council Minutes 11/02/2006
CITY OF AMMON
CITY COUNCIL MINUTES
THURSDAY NOVEMBER 2, 2006
AGENDA:
CITY OF AMMON
2135 soum AMMON ROAD
CITY COUNCIL
THURSDAY, NOVEMBER 2, 2006
CALL TO ORDER: Mayor Bruce Ard at 7:30 p.m.
A
B.
Pledge of Allegiance - Councilmember Kirkham
Prayer - Councilmember Waite
MINUTES:
October 19,2006
ITEMS FROM MAYOR: None
CONSENT AGENDA: None
PUBLIC HEARINGS: None
PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA:
ACTION ITEMS:
A RatifY Consulting Agreement - Bond Election - The Development Company (Documents Pending)
B. Approve Bond Counsel- Bond Election (Documents Pending)
C. Ordinance # - Scheduling Election for Bond (Documents Pending)
D. Citizens Petition - Walker Produce
E. Ordinance # 408 1"'" St./frailwood Rezone
F. Ordinance # 409 I"'" St./Circle Vacation
DISCUSSION ITEMS:
A Records Retention Schedule
B. Six person Council
C. Misc.
EXECUTIVE SESSION: Personnel
MINUTES
The meeting was called to order by Mayor Ard at 7:30 p.m. in the City Building, 2135 South Ammon Road, Ammon, Idaho,
with the following City Officials present:
City Officials Present: Mayor Bruce Ard
Councilmember tee Bean
Councilmember Randy Waite
Councilmember Dana Kirkham
City Planning Director Ron Folsom
City Administrator Bruce Rose
City Engineer Bill Manwill
City Attorney Scott Hall
Acting City Clerk Leslie Folsom
City Officials Absent: Councilmember Rex Thompson
Councilmember Kirkham led the Plede:e of AUee:iance to tbe Flae: and, Councilmember Waite offered the ~.
MINUTES October 19. 2006: Acting City Clerk Leslie Folsom presented a new format for the minutes allowing the Agenda
to be included with the minutes and allowing us to have one combined record. Councilmember Kirkham stated that she liked
the new more comprehensive format. Councilmember Waite and Bean agreed. Councilmember Waite motioned to approve
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the October 19, 2006 as presented. Councilmember Kirkham seconded. Roll call vote: Councilmember Waite - Yes,
Councilmember Kirkham - Yes, Councilmember Bean - abstained due to his absence 10/19. The motion carried.
ITEMS FROM MAYOR: None
CONSENT AGENDA: None
PUBLIC HEARINGS: None
PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: None
ACTION ITEMS:
A. Ratify Consultinl! Al!reement - Bond Election - The Develooment Companv: Ted Hendricks of The Development
Company presented the reason for the bonding. City undertook the water study with Falls Water and through that study it
determined the cities water systems needs. This study identified several things that the city needs to do in a series of phased
projects. Ammon is sitting on DEQ's loan priority list for up to 13 million dollars for the first phase project. Paul Scoresby
presented the Council with the mapping concerning the first phase project for the water.
Councilmember Kirkham questioned Well 9 being shut down when the system was fully functional. Paul at Schiess
Engineering explained that it would not be a primary well and would only be used during peak times.
Paul said the mayor indicated that some of our projects piggyback on each other like the ED Project to run the
waterline to Family Care Center and to do that Well. We could include the $500,000 cost of this project instead of using our
cash reserves. The City might want to keep the funds readily available for future expansion needs without having to do further
bonding. We can still borrow from DEQ at .a fixed-rate of 3.25 %. Councilmember Bean stated that the City is currently
getting 5.25% on the majority of our investment money. _
Councilmember Bean questioned the 20 year bonding. Ted explained the breakdown for the $11 million in the bond.
It breaks down as follows: Annualdebt of $750,000, O&M $525.000 which is $1.3 million divided by 4000 equivalent users.
This comes up with estimated O&M $11.00, debt $16.00 and then the debt and capital improvement reserve $3.15 so the total
monthly bill of just under $30. Councilmember Bean questioned money for administrative overhead or capital improvement.
Ted explained that he had 20% reserve for capital improvement which is 10% for capital and 10% for debt. Ted explained
with our growth the connection fees could probably cover our capital improvements and expansion, if we desired. For every
million dollars that we borrow it has a $1.45 effect on our user rate.
The bond attorney's generally want 60-70 days to set up a bond election and we are pushing this envelope. Ted has
talked with Mike Moore who helped us on the sewer bond. The next step is to pass the bond and, at this time, we will move
up on the priority list. Ifwe do the election later than February, it will move us into the year 2008 before we can get the
money from DEQ.
Councilmember Kirkham isn't concerned with the date but the amount of the bonding. Ted stated that everything
that's showed on the mapping is included in the bond. Councilmember Kirkham said that Well 10 and 11 are already taken
care of to some extent so we could drop them out of the bond. The line that runs up Sunnyside and the booster pump, she
thought the developers would come to the table on this. Ted stated by doing the bond as presented, this enables the City to
have a multitude of ways to recapture the costs but the bond would allow these improvements to be City driven not developer
driven.
Scott Hall stated the water line will dictate where the growth is going to go. Just because we bond for $11 million
does not mean we have borrow the full amount. Councilmember Kirkham understands this but is concerned with the
marketing of the bond. The higher the bond the more we need to justify the amount that we are asking for and the greater the
risk of getting this passed.
Ted stated that this is an aggressive way to quit playing catch up. A $30 fixed rate is extremely low in Southeastern
Idaho compared with any metered City.
Councilmember Bean said that the hookup fees will pay for future growth. This plan really does play catch up. We
have to have a methodology in place to repay the City for the infrastructure that will be put in. This City has traditionally
asked the developers to fund that infrastructure growth or at least pay their portion of the cost.
Ted came up with this knowing there would be some challenges to marketing the bond.
Councilmember Bean would like one member of the council involved in the bond proceedings so they can be kept
abreast of what is going on. He wants to have some meetings concerning the dollar amount before approving the amount.
Bean inquired that with the cities current growth whether we could lower the rate or payoff the bond early with the expansion
of the equivalent users. Ted agreed that either option would be available there are no prepayment penalties with DEQ.
Ted presented their contract with a range from $9 - $11 million. His fees aren't going to change between this range.
City Administrator Bruce Rose had the previous contract in the $5 - $7 million range. The services will include the selection
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of the bond attorney, working with the bond attorney on documents and publication requirements, advertising, two public
information meetings, working with city staff and engineer to develop and coordinate the technical aspects of the project,
working with the best financial institutions to secure the best financing to issue the bonds and prepare applications for that
funding assistance. The contract goes from now until July 200S, in case, we didn't get the funding then they will continue to
work with Ammon for another year to secure funding. Ted agreed to draft a brochure included in the price. Revenue bonds
only fail because of lack of information to the public. He will do due diligence in providing information to the residents.
Councilmember Kirkham inquired if the school bond election in December would hurt us.
Councilmember Bean said that it will important to get out that development is not what is driving this. We went into
this study 2 ~ years ago way before the significant development on the hill and this needs to be portrayed to the public. This
ptoject will bring us into the 21 st century and is the result of us moving forward as a city. The tank on the hill is not for the
developers, it's for pressuring and storing for the city.
Ted said that this fIrst phase includes one tank only. The two other tanks are second phase elements.
Councilmember Kirkham requested a special work session for Wednesday, November Sth at 4 pm. Ted and Paul will
be here.
Councilmember Bean made the motion to ratify the consulting agreement between The Development Company and
the City of Ammon conditioned upon our attorney reviewing it and making sure it's in the proper form. Councilmember
Kirkham seconded. Roll call vote: Councilmember Bean - Yes, Councilmember Kirkham - Yes, Councilmember Waite-
Yes. The motion carried.
B. Approve Bond Counsel- Bond Election: Council had further discussions on the dollar figure of the bond. Scott Hall
advised that we can approve the ordinance after the work session; however, we will need to approve the contract for Mike to
prepare the ordinance for the next meeting.
Councilmember Waite made the motion to approve the contract with Michael Moore for the purpose of bonding for
water infrastructure. Councilmember Bean seconded. Roll call vote: Councilmember Waite - Yes, Councilmember Bean-
Yes, Councilmember Kirkham - Yes. The motion carried.
C. Ordinance #
- Schedulinl! Election for Bond: Tabled
Citizens Petition - Walker Produce: Galm Reid, 3235 Ross Avenue, presented and explained the petition that had 51
signatures, of which, 90% of the neighbors signed the petition - some on the West of Ross but mainly the people who border
the manufacturing zone. He has lived on Ross Avenue since 1993. The last 3 years they have had trouble with Walker
Produce with the noise and the smell. He read through the INM (Industrial Manufacturing) Ordinance that Walker Produce is
in - noise, etc. He started to read Walker's rebuttal letter in full and Councilmember Bean advised him the council had the
letter and it wasn't necessary. He read a letter from the Dept. of Environmental Quality to Walker Produce on July 16,2004.
They talked with Mr. Keith Walker concerning the odors. Mr. Walker stated that he would remove the culls on a weekly basis
but again this summer the problem has reoccurred. Mary McCormick on Georgia Lane acknowledged that are affected by the
noise, even into the midnight hours.
Councilmember Bean questioned how the noise has deteriorated the area. Galm said it has affected their quality of
life. Councilmember Bean complimented Galm will his efforts but questioned why he didn't meet with Walker's before
coming to council. Galm has tried to talk with them personally several times.
Mary McCormick, 3950 Georgia Lane, bought her home 3 years ago and there has been no noise until this sunnner
and it has been extremely loud. Her concern is the undeveloped field between her property and Walker Produce and if some
other industrial business should go in there what can the city do to enforce the ordinances. Councilmember Bean questioned
where the increased noise is coming from? This summer she noticed a horrible clanking noise and she's not sure what
equipment was causing the almost intolerable noise.
Walker's were present. They stated that they started operations in the mid SO's and before that it was Larsen's. City
Planner Ron Folsom stated that it was zoned INM since 19S2 and before that it was GC.
Mike Meyer with Walker Produce produced a DVD recorded on November 1 st for the council to view. It presented
the current environment of the area with the plant in operation from the neighboring areas. The North end of the California
property is usually their unloading area. It is dangerous to unload on the sunny side of the building. They were closed and
quarantined by the USDA, for the nematode, from April 19 to July lOth. They process approx. 50 trucks a week with a total
trip count of 100 in and out.
Councilmember Waite and Attorney Scott Hall inquired concerning the mud on the road. Mike states that there is
gravel on their lot which helps deter the problem. They take their trucks onto the main roads on the East. This year was
interesting, in that, they had to protect the dirt from leaving the property with the nematode so they placed barrels on their
entrance to prevent people from driving on the lot. The traffic to the West of the lot is from recreational vehicles.
Mary questioned whether the burned building, which is in the city, should be condemned. Ron Folsom stated that it's
on the West side of the tracks. Walker's own the graveled area only.
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Councilmember Kirkham feels the truth probably lies in the middle but the council put the Walker's on notice. She
asked Gahn and Mary to let the city know when the noise and smell is a disturbance so the city can verify it and take action.
Terry Trip commented that the noise at night is horrible. Gahn talked to the Walker's that they don't want to shut
them down but they would like some cooperation.
Councilmember Bean asked Mike for his policy on transferring the culls. Mike stated they haul approx. two to three
dump truck loads once a month out to a location in the Shelley area.
Gahn said he would like to see the noise brought down, trucks shut down at night, clean up the lot, cull piles
processed into trucks and dumped on a weekly basis, restrict compression brakes and don't have the guys sleep in the trucks.
Scott Hall mentioned to call OSHA if noise is above a certain level and OSHA will shut them down. Councilmember
Kirkham said Walker's is on notice to get control of the noise, smell and clean up the lot.
Mike Meyer keeps this piece of equipment in operation. The trucks are actually louder than the equipment and the
unloading bin equipment reduces the amount of the time the trucks are on the lot. They have no plans for expansion only
enclosing the area where the trucks backup into. Mike said if the city would furnish the trees and shrubs they will contribute
the labor to plant them with first class fertilizer.
E. Ordinance #408 17th St.lTrailwood Rezone: Councilmember Bean requested to be brought up-to-date so he
could vote and enable them to have a quorum since he was absent when this was submitted. Mayor Ard and City
Planning Director Ron Folsom brought him up-ta-date.
Councilmember Waite read Ordinance #408, AN ORDINANCE TO AMEND THE ZONING
CLASSIFICATION AND THE ZONING MAP FOR CERTAIN LANDS LOCATED WITHIN THE CITY OF
AMMON; PARTICULARLY DESCRIBING SAID LANDS AND DECLARING THE CLASSIFICATION OF
ZONING FOR EACH SUCH PARCEL OF LAND; PROVIDING FOR AN EFFECTIVE DATE. (Rezoning the
Chamber Addition and portions of Trailwood Division 1 Subdivision) by title and motioned that the City Council
dispense with the rule requiring the reading of the ordinance on three different days and that the three readings be
waived. Councilmember Kirkham seconded. Roll call vote: Councilmember Waite - Yes, councilmember Kirkham
- Yes, Councilmember Bean - Yes. The motion carried.
Councilmember Waite read Ordinance #408, AN ORDINANCE TO AMEND THE ZONING
CLASSIFICATION AND THE ZONING MAP FOR CERTAIN LANDS LOCATED WITHIN THE CITY OF
AMMON; PARTICULARLY DESCRIBING SAID LANDS AND DECLARING THE CLASSIFICATION OF
ZONING FOR EACH SUCH PARCEL OF LAND; PROVIDING FOR AN EFFECTIVE DATE. (Rezoning the
Chamber Addition and portions of Trailwood Division 1 Subdivision) by title and motioned that the City Council
adopt Ordinance #408 as an ordinance of the City of Ammon on its third and final reading. Councilmember Kirkham
seconded. Roll call vote: Councilmember Waite - Yes, councilmember Kirkham - Yes, Councilmember Bean-
Yes. The motion carried.
F. Ordinance #409 17th St./Circle Vacation: Councilmember Waite read Ordinance #409, AN ORDINANCE TO
VACATE RIGHT OF WAY FOR CERTAIN LANDS LOCATED WITHIN THE CITY OF AMMON; PARTICULARLY
DESCRIBING SAID LANDS AND; PROVIDING FOR AN EFFECTIVE DATE (Right-of-Way 17th Street Circle) by title
and motioned that the City Council dispense with the rule requiring the reading of the ordinance on three different days and
that the three readings be waived. Councilmember Bean seconded. Roll call vote: Councilmember Waite - Yes,
councilmember Bean - Yes, Councilmember Kirkham - Yes. The motion carried.
Councilmember Waite read Ordinance #409, AN ORDINANCE TO VACATE RIGHT OF WAY FOR
CERTAINLANDS LOCATED WITHIN THE CITY OF AMMON; PARTICULARLY DESCRIBING SAID LANDS AND;
PROVIDING FOR AN EFFECTIVE DATE (Right-of-Way 17th Street Circle )by title and motioned that the City Council
adopt Ordinance #409 as an ordinance ofthe City of Ammon on its third and fmal reading. Councilmember Bean seconded.
Roll call vote: Councilmember Waite - Yes, councilmember Bean - Yes, Councilmember Kirkham - Yes. The motion
carried.
DISCUSSION ITEMS:
A. Records Retention Schedule: Acting City Clerk Leslie Folsom presented a new records retention schedule that would
need to be adopted by Jan. 2007. The AlC created a basic plan that they are trying to get the whole state to adopt it. Scott
Hall has looked it over in reference to the state codes and general guidelines and he has approved of it. We could do this by
resolution if the council so approves. Council was in favor of proceeding.
B. Six Person Council: Councilmember Kirkham just wanted to discuss the timing of the election for the expansion of the
council from four to six. Acting City Clerk Leslie Folsom mentioned that it won't cost the city extra to do it with the bond
election in Feb. 2007. Ifwe do the election in Feb. then in Nov. there would be four seats open - three for 4 year terms and
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one for a 2 year term. There is concern that we will have enough viable candidates to fill all the positions. Councilmember
Kirkham and Bean expressed their desire to move it to November 2007.
Miscellaneous: Mayor Ard could not get the second pickup for the same price as the first pickup. The best price he can find
within 500 miles is $23,000. The one pickup will be from Erickson Pontiac and the other one is St. Anthony Motors. The
council agreed to the change.
Councilmember Kirkham inquired of Bill Manwill about the sewer on the master plan. Bill not yet but will probably
have it soon. Rick where is he on the metering numbers. He hasn't done the individual houses yet. Sid Poole representing the
Montessori School on First Street called her concerning the flashing school light. They mentioned they contacted Bruce Rose
and was told that it could not be moved. Bill Manwill said there wasn't any power to move it. Bruce Rose said most school
zones are for cross walks; however, Montessori School does not have a cross walk and they want a slowing of the traffic for
the people in the parking lot. Councilmember Bean would not support the movement of the light since it would be only to
accommodate parents and employees in their vehicles not for the children. Bruce Rose mentioned they were told that if they
came up with the money, the city wouldn't oppose to moving it. Councilmember Kirkham will advise them of the decision.
Councilmember Kirkham talked about the new logo phase in program. The city has received a very favorable price to phase it
all in for $851.36. This will do new letterhead, envelopes, business cards, etc. The logos will go on the new trucks only.
Council OK'd the purchase of the business materials for the new logo.
EXECUTIVE SESSION: Personnel
Councilmember Kirkham motioned to adjourn to executive session for legal personnel reasons. Councilmember
Waite seconded. All in favor, the motion carried.
The meeting adjourned at 10:30 p.m.
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