12032009CouncilMinutes
CITY OF AMMON
CITY COUNCIL MINUTES
THURSDAY, DECEMBER 3, 2009 – 7:30 P.M.
AGENDA:
CITY OF AMMON
2135 SOUTH AMMON ROAD
CITY COUNCIL AGENDA
THURSDAY, DECEMBER 3, 2009 – 7:30 P.M.
CALL TO ORDER:
Mayor Bruce Ard at 7:30 p.m.
Pledge of Allegiance – Councilmember Bean
Prayer – Councilmember Powell
MINUTES:
Nov. 9, and Nov. 19, 2009*
ITEMS FROM MAYOR:
CONSENT AGENDA:
Business License*
Accounts Payable – Exhibit A
ITEMS FOR/FROM TREASURER:
Statement Updates (Leslie to present)
PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA:
PUBLIC HEARINGS:
None
ACTION ITEMS:
1.Ratification of Appointed Positions (Mayor)*
2.Exhaust System Fire Dept - Fireman’s Supply - Authorize Mayor to Sign Contract (Stacy)*
3.Resolution 2009-024 Snow Proclamation Procedure and Approval (Ron/Lance)*
4.Eastern Idaho Regional Sewer Appointments Mayor Ard/Councilmember Bean (Leslie)*
5.Eastern Interceptor Depth Decision (Lance)*
6.Planning and Zoning Re-Appointments (Ron)*
7.Policy 10-005 Business Grant Application Policy and Procedures (Ron)*
8.Resolution 2009-023 Business License Application Policy and Procedures (Ron)*
9.City of Idaho Falls Area of Impact Letter (Kirkham/Powell)*
10.City of Idaho Falls Sewer Charges Letter (Bean)*
11.Lease Agreements for Snow Removal Equipment - Authorize Mayor to Sign* (Scott/Lance)
DISCUSSION ITEMS:
1.Modification Request Hawks Landing Planned Unit Development - Jeff Hawks*
2.Rocky Mountain Power Bills – Eastern Interceptor (Leslie/Lance)*
3.Forsgren – Idaho Falls Sewer Study (Mayor)
4.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) (Scott)
MINUTES
City Officials Present:
Mayor Bruce Ard
Councilmember Dana Kirkham (arrived 7:38 p.m.)
Councilmember Lee Bean
Councilmember Rex Thompson
Councilmember Randy Waite
Councilmember Brian Powell
City Attorney Scott Hall (arrived 7:39 p.m.)
City Clerk Leslie Folsom
Council Minutes 12-3-09 Page 1 of 9
City Planning Director Ron Folsom
City Officials Absent:
City Engineer Lance Bates
City Treasurer Jennifer Belfield
CALL TO ORDER: 7:32
Mayor Bruce Ard opened the meeting at 7:30 p.m. at City Hall located at 2135
South Ammon Road. Councilmember Bean led the Pledge of Allegiance. Council Powell gave the prayer.
MINUTES: 7:33
Nov. 9: Councilmember Thompson inquired concerning Hitt Roads location and if it
had been verified. Ron stated yes it was verified. Hitt Road only went to Sunnyside Road and Hackman Road is
south of Sunnyside. He stated that on the City of Idaho Falls website Sandcreek Golf Course is listed with a
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Hackman Road address. Councilmember Bean motioned to approve the minutes for Nov. 9, as presented.
Councilmember Powell seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Powell – Yes,
Councilmember Thompson – Yes, and Councilmember Waite – Yes. The motion passed.
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Nov. 19, 2009: Councilmember Bean motioned to approve the minutes for Nov. 19, as presented.
Councilmember Waite seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Waite – Yes,
Councilmember Thompson – Yes, and Councilmember Powell – Yes. The motion passed.
ITEMS FROM MAYOR:
CONSENT AGENDA:
CITY OF AMMON
BUSINESS LICENSE CONSENT AGENDA
Thursday December 3, 2009
License applications, carrying the required documents, pending approval of the City Council:
GENERAL BUSINESS LICENSE:
1.NEWGENERAL BUSINESS LICENSE APPLICATION:
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A.Masovi – E-Commerce – 3456 E. 17 Street, Suite #250
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B.Ameriprise Financial – Finance – 3456 E. 17 Street, Suite #290
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C.Security Finance dba Maverick Finance – Finance – 3045 E. 17 Street
2.RENEWALBUSINESS LICENSE APPLICATION:
A.Zion’s Bank – Banking – 2540 E. Sunnyside Rd.
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B.Born, Sandy – Daycare Employee/Sunny Days Daycare – 4366 E. 17 Street
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C.Snake River Montessori School – Commercial Daycare – 2970 E. 1 Street
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D.IHOP – Restaurant – 2463 S. 25 E.
E.Edward Jones – Stockbroker/Dealer – 1498 Midway, Suite #1
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F.Edward D. Jones & Co. – Finance – 2677 E. 17 Street, Suite #200
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G.Mutual of Enumclaw – Insurance – 3456 E. 17 Street, Suite #180
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H.Coldstone Creamery – Food Service – 2019 S. 25 E.
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I.Peak Performance Therapy Services – Physical Therapy – 3456 E. 17 Street, Suite #130
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J.Phase 4 Stereo – Retail Sales – 3135 E. 17 Street
HOME OCCUPATION PERMITS:
1.NEW HOME OCCUPATION PERMITS:
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A.Ashley’s Daycare & Montessori Preschool – Daycare maximum children (5) – 3890 E. 17 Street
2.RENEWAL HOME OCCUPATION PERMITS:
A.Devonwood Castle Daycare – Daycare/Maximum Children (12) – 2965 Devonwood
B.Roxy’s Hair Design – Salon – 2901 Brettonwood
C.Delightful Days Child Care & Learning Center – Daycare Maximum Children (12) – 2876 Hidden Hutch Drive
LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE:
1.NEW LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE:
Council Minutes 12-3-09 Page 2 of 9
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A.Walgreen’s #10603 – Retail Sales/Beer & Wine off Premise – 3475 E. 17 Street
2.RENEWAL LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE:
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A.Oh Management, Inc. – Retail Sales/Beer & Wine off Premise – 125 S. 25 E.
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B.Cellar – Restaurant/Liquor by the drink/beer/wine on premise – 3520 E. 17 Street
MISC: MASSAGE ESTABLISHMENT
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1.
A. Kunsaitis, Meghan – Massage Therapist/Massage Envy – 3047 S. 25 E.
7:38
Business License*: Councilmember Bean motioned to approve the business licenses, as
presented. Councilmember Waite seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Waite –
Yes, Councilmember Thompson – Yes, Councilmember Powell – Yes and Councilmember Kirkham - Yes. The
motion passed.
7:39
Accounts Payable – Exhibit A: Councilmember Bean motioned to approve accounts payable,
as presented. Councilmember Powell seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember
Powell – Yes, Councilmember Kirkham – Yes, Councilmember Thompson – Yes, and Councilmember Waite – Yes.
The motion passed.
ITEMS FOR/FROM TREASURER: 7:40
Statement Updates (Leslie to present): Leslie presented
Jennifer’s information, since she was out of town. Jennifer has five companies that have turned in the submittals (to
mail out the City’s utility bills) and two have not. There is enough difference between all of them with no
consistency, that a spreadsheet will be created to help make a comparison. It will take the companies approx. 45
days, once the decision is made, to implement the procedure. This will make the snow proclamation a separate
mailing. The credit card processors have all submitted proposals, except one. Jennifer will be creating a
spreadsheet for their comparison.
PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA:
None
PUBLIC HEARINGS:
None
ACTION ITEMS:
1. Ratification of Appointed Positions (Mayor)*: 7:43
Mayor Ard explained these are the ratifications
for the City’s appointed positions, which are Charlie Allen, Building Official; Scott Hall, City Attorney; Leslie
Folsom, City Clerk; Lance Bates, City Engineer; Jennifer Belfield, City Treasurer; Stacy Hyde, Fire Chief; Bruce
Patterson, IT Director; Ken Knoch, Parks Director; and Ron Folsom, Planning Director.
Councilmember Kirkham motioned to appoint the list of officials, as presented. Councilmember Bean
seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Bean – Yes, Councilmember Waite –
Yes, Councilmember Powell – Yes, and Councilmember Thompson – Yes. The motion passed.
2. Exhaust System Fire Dept - Fireman’s Supply - Authorize Mayor to Sign Contract (Stacy)*:
7:44
Stacy Hyde, Fire Chief advised the Council that Fireman’s Supply wants a signed contract before they start.
Councilmember Powell motioned to accept the contract to perform the work on the exhaust system with
Fireman’s Supply and authorize the Mayor to sign. Councilmember Kirkham seconded. Roll Call Vote:
Councilmember Powell – Yes, Councilmember Kirkham – Yes, Councilmember Thompson – Yes, Councilmember
Waite – Yes, and Councilmember Bean – Yes. The motion passed.
3. Resolution 2009-024 Snow Proclamation Procedure and Approval (Ron/Lance)*: 7:45
Ron
explained this is the final version for approval. It includes not putting the garbage to the curb until after 7 a.m. if the
City has three or more inches of snow. Councilmember Thompson asked what if people go to work before 7 a.m.
Councilmember Waite said the garbage truck can reach approx. 8 feet. Ray stated the issue will be the height plus
the volume of snow. Leslie stated they might have to coordinate with their neighbors.
Council Minutes 12-3-09 Page 3 of 9
Councilmember Kirkham motioned to approve Resolution 2009-024 Snow Proclamation Procedure and
Approval. Councilmember Waite seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember
Waite – Yes, Councilmember Thompson – Yes, Councilmember Powell – Yes, and Councilmember Bean – Yes.
The motion passed.
4. Eastern Idaho Regional Sewer Appointments Mayor Ard/Councilmember Bean (Leslie)*: 7:47
Leslie explained that Councilmember Bean had recommended himself to be appointed but it wasn’t in form of a
motion. Councilmember Bean stated he found out that you do not need an elected official on the board. If the City
chooses, they could have two at large. He recommends Mayor Ard is the primary to attend all meetings and the
secondary position would be he to attend only, if Mayor Ard couldn’t. Councilmember Kirkham asked how the
Council would be kept up to date. Mayor Ard stated he would come and report to the Council.
Councilmember Kirkham motioned to appoint Mayor Bruce Ard as the primary to the Eastern Idaho
Regional Sewer board and Councilmember Bean as the secondary. Councilmember Powell seconded. Roll Call
Vote: Councilmember Kirkham – Yes, Councilmember Powell – Yes, Councilmember Waite – Yes,
Councilmember Thompson – Yes, and Councilmember Bean – Yes. The motion passed.
5. Eastern Interceptor Depth Decision (Lance)*: 7:49
Husk Crowther, Forsgren Assoc., Rexburg,
Idaho stated that Forsgren and Lance have had several conversations concerning the depth of the sewer versus the
cost. He stated that they will be going with the gravity system. Councilmember Kirkham wanted clarification if
there would be lift stations. Husk stated there is one at the end of the line, which will help with the easement and
access into the plant. They will be going gravity fed under Highway 91 and the railroad. This will eliminate the
Woodland Hills lift station. Husk said they went back and found the line can be gravity fed. They will bring lines
from the foothills and to the north. There are a couple of difficult areas – one is north of the country club and
another one approx. halfway across the country club east/west line. They have to go quite a bit deeper to alleviate
the problem. Going five feet deeper only gets us ¼ mile further to the south on gravity, so when country club gets
served there will be another line.
Leslie stated that Lance wanted Husk to go over the easements. Husk said easements in segment A, which
are from the treatment plant to County Club New Sweden intersections are signed and recorded. The easements
through the old railroad all the way to York and Hackman Road are all signed and recorded. Concerns have been
brought up over the easements, but they are all ok and recorded. They had a survey done with a potential sale of
property, but there was no question to the validity of the easements. For the section from the York and Hackman
intersection north to Sunnyside they do not have signed and recorded easements. There are four possible paths to
get there. Ball Development is the biggest property owner and they are anxious to have the sewer and they expect
the easements in the next few weeks. They want us to go up and around their parcel rather than continuing through
the old railroad. This can be accommodated in the design and hydraulic profile to meet the depth requirements to
meet Sunnyside. Once this piece is received, then we will be tied back into the old railroad.
They are getting their seed sludge schedules to actually start up the treatment plant equipment. They will
be bringing bacteria in from another plant. This should happen at the end of December with final completion around
the end of March or first of April.
Segment A has been bid and had a preconstruction meeting today. They are planning to start as soon as
possible. Councilmember Powell asked about expanding the facility in Shelley and how long it would take to add
another basin. Husk stated it will take 8 – 10 months to design and 12 – 16 months to build. Councilmember
Thompson asked what the total capacity of build out would be. Husk said maybe they could discuss this at a later
date. Shelley is not operating the plant, at this time. This is what the seed sludge is for. They are importing bacteria
from Idaho Falls. Kevin’s perspective is the ERU meetings with staff are doing well. Leslie said there are more
meetings needed, but they are making progress. Councilmember Powell said just to be clear that we are going with
the depth versus the lift station. Council said yes. Husk said we are going with the blue line which is neither the
shallowest line nor the deepest line. The deepest line doesn’t buy anything. Councilmember Powell said towards
the end by Shelley there will be a lift station.
Councilmember Kirkham motioned to accept the Eastern Interceptor as a depth gravity fed system instead
of lift stations. Councilmember Bean seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember
Bean – Yes, Councilmember Powell – Yes, Councilmember Waite – Yes, and Councilmember Thompson – Yes.
The motion passed.
Council Minutes 12-3-09 Page 4 of 9
6. Planning and Zoning Re-Appointments (Ron)*:7:42
Mayor Ard went over the appointed
positions. Quinn Simmons was appointed in 2007 from the County, Richard Butler was also appointed in 2007.
Mayor Ard recommended that we appoint both positions.
Councilmember Bean motioned to approve the re-appointments for Planning and Zoning, as presented.
Councilmember Waite seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Waite – Yes,
Councilmember Thompson – Yes, Councilmember Powell – Yes, and Councilmember Kirkham – Yes. The motion
passed.
7. Policy 10-005 Business Grant Application Policy and Procedures (Ron)*: 8:57
Ron explained this
came into play last year and this is the grant the Council requested. They have to submit what type of organization
they are, they do not have to be a 501C3, they do have to be non-profit, all members are non paid volunteers and the
organization charges nothing for their services. Councilmember Thompson asked why we are doing a grant, instead
of a fee waived. Leslie stated she thinks it was, because it offered the City more control. Scott said his concern with
an exception is it applies to all organizations who meet the minimum standards, and what you do with certain non-
taxable entities such as: Communist party of the United States or an Organization for the Advancement of
Pornography. Ron said there was a 120 day time limit. Scott said it is just for the business license fees, not utilities.
Councilmember Kirkham said there are non profit entities that make a profit and they pay members and this would
not qualify. Ron said this is really for temporary entities.
Councilmember Kirkham motioned to approve Policy 10-005 Business Grant Application Policy and
Procedures. Councilmember Bean seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember
Bean – Yes, Councilmember Thompson – Yes, Councilmember Waite – Yes, and Councilmember Powell – Yes.
The motion passed.
8. Resolution 2009-023 Business License Application Policy and Procedures (Ron)*: 9:07
Councilmember Kirkham motioned to approve Resolution 2009-023 Business License Application Policy and
Procedures. Councilmember Bean seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember
Bean – Yes, Councilmember Thompson – Yes, Councilmember Waite – Yes, and Councilmember Powell – Yes.
The motion passed.
9. City of Idaho Falls Area of Impact Letter (Kirkham/Powell)*: 9:07
Councilmember Kirkham
asked the Council if they want to move forward with the impact letter. She explained that the letter was sent to the
County Commissioners to withdraw our request to increase the area of impact. Councilmember Kirkham said she
wants to send the letter to the City of Idaho Falls indicating this is what we have done and we are waiting to hear
from them as to how to proceed. The accusation has been that we are difficult to communicate with or that we
ignore the situations. She wants all dialogue from the City of Idaho Falls and the City of Ammon to be in writing.
She stated if the Council is contacted by the City of Idaho Falls outside of a meeting tell them to put it in writing and
come have an open meeting. Idaho Falls will state that it’s not effective to have the whole group, but this is the only
way we can be effective. Councilmember Powell recommended sending a copy of the County retraction letter to the
City of Idaho Falls. Scott advised he wanted it put in as Exhibit A. Councilmember Kirkham said we will negotiate
the area of impact and memorandum of understanding, but not the sewer. The sewer is not ours it is the Eastern
Idaho Regional Sewers Authority’s.
Councilmember Kirkham motioned to authorize Mayor Ard to sign the City of Idaho Falls Area of Impact
Letter. Councilmember Waite seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Waite –
Yes, Councilmember Bean – Yes, Councilmember Powell – Yes, and Councilmember Thompson – Yes. The
motion passed.
10. City of Idaho Falls Sewer Charges Letter (Bean)*: 9:20
Councilmember Bean explained this
letter is requesting information, in order to review the contract. It was discussed that this isn’t a public records
information request, but it is part of the contract agreement and should be at no charge.
Councilmember Bean motioned to approve the letter to Mayor Fuhriman of Idaho Falls based upon the
changes that have been discussed and authorize Mayor Ard to sign. Councilmember Kirkham seconded. Roll Call
Vote: Councilmember Bean – Yes, Councilmember Kirkham – Yes, Councilmember Thompson – Yes,
Councilmember Powell – Yes, and Councilmember Waite – Yes. The motion passed.
Council Minutes 12-3-09 Page 5 of 9
11. Lease Agreements for Snow Removal Equipment - Authorize Mayor to Sign* (Scott/Lance):
9:26
Councilmember Bean stated that there are two contracts that were approved at a prior meeting, but the Mayor
needs to sign them. Scott asked if the managers are doing something inside their budget, do they have to come back
to Council for the Mayor to sign the contract. Councilmember Bean said we approved their budgets so it’s ok to
spend it, but at the end they have to live within their budgets. Councilmember Powell said the Council will see it
with the payment approvals. Scott said this is the example they want clarity on. Leslie stated that as management if
we have to keep bringing everything back it jams the system, but we have been called back on some and now we
just need clarity. Councilmember Powell agreed if it’s in the budget then it is ok to go forward. Councilmember
Bean said he brought this back in, but he never stopped to consider that this was part of the snow budget. He
doesn’t have a problem with short term leases. Councilmember Bean said if it is in the budget and it doesn’t carry
over into another fiscal year then he is fine with it. Councilmember Powell said the Council’s responsibility is to
appropriate the funds and set the budget, and then it’s up to management to stay within the budget. The
management needs to determine how to best carry out their job in their department with those set of funds. Scott
said it all depends on how much you want to micromanage the departments. If you want to give them authority to
do this, then you give it to them. Council agreed to give management the authority.
Councilmember Bean motioned to approve the short term lease agreements for the compact loader and skid
steer loader and authorize the Mayor to sign. Councilmember Kirkham seconded. Roll Call Vote: Councilmember
Bean – Yes, Councilmember Kirkham – Yes, Councilmember Waite – Yes, Councilmember Thompson – Yes, and
Councilmember Powell – Yes. The motion passed.
DISCUSSION ITEMS:
1. Modification Request Hawks Landing Planned Unit Development - Jeff Hawks*: 9:33
Jeff
Hawks presented his proposal for changes on Hawks Landing lot sizes, which would be between 7 - 10% reduction
in sizes. Councilmember Kirkham said there was extensive discussion during the original time and the City is
concerned about ending up with small homes. It is hard for her to even consider it. Councilmember Powell asked
are you trying to reduce your costs or go to what you think the market will bear. Jeff said both – it’s a lot about
price. The improvements have been costly and none of that matters to the buyer today. They are trying to become
more competitive.
Ron stated the entire development is zoned RP with the exception of the mansion homes and the
commercial section. The cluster homes are close to the standard for the R1 zone. R1 is 1000 sq ft and they
currently have a 900 sq ft footprint. Mansion homes would compare to R1A which is 1000 and theirs is currently
1100. Jeff Hawks would like to propose dropping it to 1000 sq ft. We have left the medium and large the same.
Councilmember Bean said this Planned Unit Development was an exercise in establishing zoning regulations for a
PUD. If a developer came in to change the lot size or required home size in R1, we would tell them no. This is
where we compromised and he doesn’t feel it is fair to offer him something we wouldn’t offer others.
Councilmember Kirkham said it’s hard to compare the two, because this is a PUD and there have already been
concessions. Councilmember Kirkham said if we open this up, it would have to have another public hearing. The
last public hearing’s main concern was the size of the homes. Councilmember Bean said as long as there are
foreclosed homes out there, it will be a struggle. Councilmember Powell stated construction costs are down approx.
20%. Councilmember Kirkham said they are pleased with the neighborhood. Jeff said ok he thought that’s where
the Council would be. Jeff asked about the lights, which aren’t on yet. Ron said he will call on it tomorrow.
Councilmember Kirkham said people are looking at his area due to the low maintenance. Ray said Rocky Mountain
has not signed off on the punch list.
2. Rocky Mountain Power Bills – Eastern Interceptor (Leslie/Lan 9:49
ce)*: Leslie stated that there
was a bill in their files and Lance is concerned, since it was not budgeted. It is showing approx. $1320 per month.
Mayor Ard said he was given the bill to show how the breakout is. He feels that they will be expecting the $36,000.
Mayor Ard said we will have to start paying. Councilmember Bean asked why we are seeing these bills, if the plant
isn’t operating. Mayor Ard stated that they will have to start hiring people to run the plant. Leslie stated that the
auditors are saying that it needs to be run as a separate entity. Sandy in Shelley has been doing most of the work,
but it will need to be separated. Mayor Ard said he will check on this and see what they are expecting to be paid and
when. This will be coming soon. Councilmember Bean said to tell Lance there are funds to cover this.
Council Minutes 12-3-09 Page 6 of 9
Councilmember Powell said we need a time frame and actual start-up costs. Councilmember Bean said hopefully
this entity will be set up to properly run a monthly profit and loss. The City should see a monthly and year to year
profit and loss. Mayor Ard said they don’t have a budget. Councilmember Powell will be happy to help set up their
budgets.
3. Forsgren – Idaho Falls Sewer Study (Mayor): 8:04
Husk said they looked at a summary analysis of
the sewer rate study made in 1998. The City of Ammon signed their cooperative agreement in Dec. 21, 1972 and
IBSD March 13, 1975. In 1976, CH2M Hill established the formula for determining the sewage treatment costs. In
1980 Idaho Falls assumed responsibility for maintenance of sewer mains and utilities within the jurisdictional
boundaries of Ammon and IBSD, who in turn agreed to reimburse Idaho Falls for maintenance costs on a per service
connection basis. Councilmember Powell said that was only maintenance costs. Husk said according to the rate
study Idaho Falls had done in 1998, that Idaho Falls operated the sewer utility at a deficit of approx. $4 million in
1997. They identified three major capital improvements that needed to be financed from rates estimated at $12.85
million, per the 1998 study. Rates were proposed for customer classes and a statement was made “these rates reflect
both some shifting of revenue responsibility across customer classes and a significant increase in overall system
revenue requirements occasioned by financing the City’s planned capital improvements program. The shifting of
revenue across customer classes includes shifting costs previously not charged to wholesale customers to those
customers. Those charges include non-treatment in heat, light and utilities, the minimal general fund transfer and
storm drain”. Ammon agreed in 1998 to reimburse Idaho Falls for maintenance costs. Councilmember Bean said he
was on the Council when the City agreed to pay for maintenance, but not capital improvements.
The 2008 rate study is applicable through 2012. As of 2006, Ammon and IBSD accounted for 17.6% of
annual average daily flow and 19.5% of maximum month of average daily flow. Our maximum per month is higher
than the average daily flow. Their industrial customers are not having a peak. Idaho Falls has 25 – 35% inflow
from rain and snow through manholes. Their industrial customers are charged based on flow rates and
concentrations, but Ammon, IBSD and Ucon are charged based only on flow rates. Operating costs are projected to
increase from $5.5 million in 2006 to $9.9 million in 2012. Councilmember Bean said they will have an increase of
over $4 million in 6 years. In 2008, it was $12.85 million for capital improvements, but with inflation it is now
$14.5 million. Idaho Falls’ last large project was the head works project in 2001. The annual transfers projected to
start in 2008 ranged from $2.5 to $2.8 million per year from their utility fund to their capital improvement fund.
Husk doesn’t know if they have done this. Councilmember Kirkham said if they have done this, then we can ask for
reimbursement, because we are only paying for maintenance. Based on discussions from Idaho Falls city staff it
was assumed that the capital improvement fund would not have any reserves available after fiscal year 2007,
therefore, this analysis assumed no reserves were available from the capital improvement fund from 2008.
Councilmember Bean asked Husk if the study shows that Ammon has been paying for capital
improvement costs. Husk shook his head yes. In 2005 there was a rate increase of $4. Between 1998 and 2005
there was not an increase. You have to go through the formula to calculate Ammon’s increase, which is $1.58 per
1000 gallons since 2005. There was a delay of seven years from the recommended increase and when they actually
implemented it from 1998 to 2005. So the 2008 study is showing a recommended rate increase of 25% in 2008,
11% in 2010 and 3% in 2012 from the consultant. This would be a $2.40 increase. It is now $18.90 for residential
customers. Ammon was increased to $1.93 per 1000 gallon from $1.58. Councilmember Bean asked for the
formula. You determine an average monthly cost of $16.50 and divide average monthly flow from Idaho Falls
accounts costs by average flow – this generates a cost per gallon. You then subtract the items for which they do not
charge IBSD and Ammon. We are not charged for storm drains maintenance, billing, capital expenditures for the
Idaho Falls collection system and the GIS transfer. They charge Ammon for a cost per 1000 which is less than
theirs since the above gets removed. He doesn’t know what goes into billing and collection, since they don’t have
all the details. Husk said Idaho Falls does charge us for capital improvements, since the $16.50 they charge their
residential customer includes a capital improvement charge. They deduct for the collection system, but not
treatment.
8:22
Councilmember Powell asked what the City’s average flow is. Husk said it is one million
gallons per day. IBSD has more customers, but the flows are the same for both Ammon and IBSD. Leslie said that
she has a chart that shows the flows Ammon has been charged in the previous years. Councilmember Powell said
Ammon is not charged by ERU’s, but by flow. Husk said this is the fairest way.
The facility planning study submitted to DEQ in July 2009 intended for a 20 year planning period.
This study only applies to treatment. This includes a 2015 land use map that extends ½ mile South of York Road
Council Minutes 12-3-09 Page 7 of 9
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from the Yellowstone Highway to Sandy Downs then along York to 25 East. It references the 2001 study where
the flows were reported at 12 million gallons per day. Their treatment capacity is 17 million the maximum month
daily flow is 12.8 million gallons. Of the 12 million gallons, 10 million is attributed to residential and unmetered
commercial with the rest being industrial customers. Since the build out of the Gem State River Dam was
constructed after the wastewater treatment plant was installed, hydraulic improvements are necessary to prevent
accidental discharge during peak flow flood events. Because of the Dam they don’t have the previous elevation, so
the plant no longer has a 17 million gallon capacity. He doesn’t know what it is, since the study didn’t cover this.
8:31
Councilmember Thompson asked again what our capacity is. Husk said the head work facility
is built for 4 million gallons, but the screens are only built for 2 million. We only have to add screens and pumps to
get to 4 million gallons. The aeration basins are built for 2 million per day on phase one. The membrane basins are
sized for 2 million, but phase one has only 1 million because we will buy the next million in phase two. Phase two
will have three million gallons for membranes. The building is built for 8 million gallons per day, but an additional
belt press will be needed to accomplish this. They are trying to plan for the future. Husk said we used to think we
needed to build three stations to accommodate the Region and IBSD, but we would only need to build two. This
would help lower the monthly rate down to the low 30’s.
8:32
The Idaho Falls treatment plant violates the current NPDS permit for total ammonia. They are
operating under an administrative extension of the permit. This is common. The new permit can take 2 – 4 – 6
years. Idaho Falls contends that ammonia limits were incorrectly assessed and has disputed. This plant wasn’t
designed to remove ammonia and now it is hard to make something perform for something it wasn’t designed for.
The 2009 study states that it would need $59,000,620 million dollars to improve their plant. Councilmember
Kirkham asked why they are denying this. $30 million of this is scheduled over the next 6 years. Husk stated they
are thinking they won’t have to deal with ammonia or phosphorus in the near term, because they are disputing the
permit. DEQ has responded they are required to address the ammonia and phosphorus in the current improvement
plans, rather than spreading them out over the next 20 years. Idaho Falls approved a rate increase in 2008 from
$16.50 to $18.90 based on an estimated $14.5 million for capital improvements over 5 years, but now they are
looking at $60 million. A $4 increase was needed to pay for a $14.5 million project with $10 million for treatment
and $4.5 is for collection. Now, it is $60 million for treatment, and we don’t know the new number for collection.
8:39
Leslie asked if this included Ammon dropping out. Husk said no. Husk thinks they will be at
$32.50 before adding the cost of losing Ammon’s 10% of their flow rates, increases in O&M, the collection system,
any reserve, etc. In 2009 Idaho Falls applied for a 20 year low interest loan of $18 million. Councilmember
Kirkham said so that’s what’s in reserves. Mayor Ard said you have to have matching funds lined up. Husk said
they ranked so low, they didn’t get the loan. Councilmember Bean asked if they will have to apply for a bond.
Husk said yes. Because Idaho Falls has made the study, they have started the process. The study has been done by
reputable firms. Farmer Engineering and Murray Smith and Assoc came from CH2M Hill. Farmer’s background is
in industrial treatment, which uses less expensive materials. Husk stated he thinks the costs will come in a lot higher
than the study shows. Councilmember Kirkham said it could. Kevin said the figures could be as high as plus 50%
and as low as minus 30%. Councilmember Powell asked how long they can go without doing the improvements.
Husk said they are compelled to do something now, since they violate ammonia on a regular basis.
8:48
Mayor Ard asked Husk to address the difference in the homes, between the two cities. Husk
stated between 2005 and 2008 the number of customers went down for Idaho Falls by 700, but Ammon was
growing. If you are dividing gallons by customers and customers go lower, the costs per gallons goes up.
Councilmember Kirkham asked if the required improvements would require them to build a new treatment plant,
rather than improve what they have. Husk said there was a facility in Caribou County that was doing a retrofit for
$4 million and the bids came in at $10 million – it is now recommended to go to a new facility for $10.5 million.
8:52
Husk said he is putting in for money for a facility planning study to start to run our own
collection system. This year they ranked at 13, but the grants stopped at 12. They will be reapplying again this
year. They will be adjusting the application to get more points and doing the same thing for IBSD. There is another
funding opportunity through the Energy Efficiency Conservation Grant. There is approx. $100,000 per entity for
energy efficiency strategies. We could look at energy audits for the public, street lights upgrades, building
insulation, energy efficiency pumps in lift stations and the best place for the money to be used. Ron said this might
be the same program Charlie applied for. He will research it and get with Husk, since there is only one application
allowed per entity.
Council Minutes 12-3-09 Page 8 of 9
4. Misc.: 9:58
Ron said that there are further proposed changes to the City Code and wants the Council
to review them and advise him before the next work meeting, after which it will written in ordinance form for the
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Council’s approval on December 17.
Councilmember Powell advised the Council that he is in the process of creating a City CD-ROM, which
will explain snow removal, the water proclamation and basic information. It will be no cost to the City, except the
mailing. Councilmember Kirkham said this is a good thing and a step in the right direction.
Leslie asked the Council when they would be able to hold the Founder’s Point ribbon cutting for the new
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well house and water tank. It was decided to hold it December 11 at 2 p.m. She will let Jeff at Keller Associates
know and the media.
Leslie said that Rocky Mountain sent out invitations for the Council and if they can make it, to please
contact them at the number listed. Glen Pond requested that all the Council receive the flyer.
Leslie stated that Hometown Productions called and will be making a map with Idaho Falls on one side and
Ammon on the other. They will be giving the City the maps for free to have at the front counter and a small ad for
our use. Council liked the idea and the Mayor signed the agreement.
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) (Scott)
10:06
Leslie advised the Council that Scott has requested these executive session items to be on the
agenda for the near future, since these items are being reviewed, at this time. When she knows that one of them will
be used, there will be a name after the item.
Councilmember Kirkham motioned to go into executive session pursuant to Idaho Code 67-2345 (1-f) for
pending litigation. Councilmember Thompson seconded. Roll Call Vote: Councilmember Kirkham – Yes,
Councilmember Thompson – Yes, Councilmember Powell – Yes, Councilmember Waite – Yes, and
Councilmember Bean – Yes. The motion passed.
The meeting adjourned at 10:07 p.m.
________________________________________
C. Bruce Ard, Mayor
________________________________
Leslie Folsom, City Clerk
Council Minutes 12-3-09 Page 9 of 9