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03172011CouncilMinutes CITY OF AMMON CITY COUNCIL AMENDED MINUTES THURSDAY, MARCH 17, 2011 AGENDA: CITY OF AMMON 2135 SOUTH AMMON ROAD AMENDED CITY COUNCIL AGENDA THURSDAY, MARCH 17, 2011 – 7:00 P.M. CALL TO ORDER: Mayor Steven Fuhriman at 7:00 p.m. Pledge of Allegiance – Councilmember Powell Prayer – Councilmember Slack MINUTES: None ITEMS FROM MAYOR: CONSENT AGENDA: Business License* Accounts Payable – Exhibit A ITEMS FOR/FROM TREASURER: PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: (5 Minute Limitation) PUBLIC HEARINGS: None ACTION ITEMS: 1. Bodiford Pay Application Approval* 2.Dist 93 IBSD Easement Approval 3.Ord 498 – Business Licenses - Third and Final Reading* 4.Jetter Truck - Sewer Purchase (Lance)* 5.Backup EIRWWA Representative (Leslie) 6.Resolution 2011-001 Destruction of Records (Leslie)* DISCUSSION ITEMS: 1.Sewer Bond Figure Breakdowns (Lance)* 2.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) MINUTES City Officials Present: Mayor Steve Fuhriman Councilmember Dana Kirkham Councilmember Brian Powell (via phone – departed at 7:35 p.m.) Councilmember Rex Thompson Councilmember Sean Coletti City Attorney Scott Hall City Clerk Leslie Folsom City Engineer Lance Bates City Planner Ron Folsom City Treasurer Jennifer Belfield Council Minutes 3-17-11 Page 1 of 7 City Officials Absent: Councilmember Lee Bean Councilmember Russell Slack CALL TO ORDER: Mayor Fuhriman opened the meeting at 7:00 p.m. at City Hall located at 2135 South Ammon Road. Spencer Clegg from the Boy Scouts led the Pledge of Allegiance. Councilmember Coletti gave the prayer. Councilmember Powell was reached by phone to assist in the Council Quorum. Councilmember Kirkham motioned to amend the current agenda to add Action Item 1- Bodiford Pay Application to review the circumstances on the billing, which the City was notified of after the original agenda had been posted and it is of a time sensitive nature. Councilmember Thompson seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Thompson – Yes, Councilmember Coletti – Yes, and Councilmember Powell – Yes. The motion passed. MINUTES: None ITEMS FROM MAYOR: None CONSENT AGENDA: CITY OF AMMON BUSINESS LICENSE CONSENT AGENDA March 17, 2011 License applications, carrying the required documents, pending approval of the City Council: GENERAL BUSINESS LICENSE: 1.RENEWAL GENERALBUSINESS LICENSE APPLICATION: A.Claymore Tactical, LLC – Retail Sales – 1488 Midway Avenue th B.Ecowater of S.E. Idaho/Mountain Fresh – Water Treatment & Purification – 3300 E. 17 Street C.Verizon Wireless – Cell Tower – 4020 E. Sunnyside Rd. D.Gables of Ammon – Assisted Living – 1405 Curlew Drive E.Peak Village – Assisted Living - 1061, 1087, 1009, 1035, 983 Curlew, 1020, 994 Diamond th F.Dollar Cuts – Salon – 1791 S. 25 E. th G.Big O Tire – Retail Sales – 3193 E. 17 Street th H.Kohl’s #1086 – Retail Sales – 3175 S. 25 E. HOME OCCUPATION PERMITS: 1.RENEWAL HOME OCCUPATION PERMITS: A.Right Step, LLC – Cleaning & Restoration – 4353 Mason St. LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: 1.RENEWAL LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE: th A.Wilson, Brandee – Bartender/The Cellar – 3520 E. 17 Street th B.Café Rio Mexican Grill – Restaurant – 2537 S. 25 E. Business License*: Councilmember Kirkham motioned to approve the business licenses, as presented. Councilmember Coletti seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Powell – Yes, and Councilmember Thompson – Yes. The motion passed. Accounts Payable – Exhibit A: Councilmember Kirkham motioned to approve Accounts Payable, Exhibit A, as presented. Councilmember Thompson seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Thompson – Yes, Councilmember Coletti – Yes, and Councilmember Powell – Yes. The motion passed. Council Minutes 3-17-11 Page 2 of 7 ITEMS FOR/FROM TREASURER: Jennifer notified the Council that the February Financials are available on SharePoint now. Councilmember Kirkham, Councilmember Thompson, Jennifer and Leslie has recommended st Semon’s Financial Group to be our new Group Health Broker, effective May 1, 2011. Councilmember Kirkham said they were fine with that and requested Jennifer notify our current broker of the change. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: (5 Minute Limitation): None PUBLIC HEARINGS: None ACTION ITEMS: 1. Bodiford Pay Application Approval*: Jennifer stated that this is the amount retained on the Bodiford Construction account from December, due to the issues with Change Order 4. She is requesting the City to pay Bodiford ahead of receiving the DEQ funds. The portion Ammon will be requesting from DEQ is a small portion of the invoice. Councilmember Kirkham said she will talk to Husk concerning this delay. Lance said th Forsgren will say change order # 4 was not properly executed until March 7. That means that Bodiford th Construction didn’t sign the final change order to make this effective until March 7. Councilmember Kirkham motioned to pay Bodiford for $111,690.84 and authorize the Mayor to sign it. Councilmember Coletti seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Thompson – Yes, Councilmember Powell – Yes. The motion passed. 2. Dist 93 IBSD Easement Approval: Councilmember Kirkham said the School District has agreed to grant the easement for the Iona Bonneville Sewer District (IBSD), contingent on the School District and the City of Ammon reaching an agreement on the drainage area pumping system, the District retains control of the easement’s surface, the ground to be restored to a usable state by the time it is needed for fall sports in August and if this deadline cannot be met then continuous safe access across this area to the ball fields on the north will be provided for the players and the public and if either IBSD or the City ever needs to take any action that would damage any part of the easement surface, that the same entity is also fully responsible for putting the ground back to original specs and there will be no walking paths or access roads. The estimation for the pump has been $60,000. Lance said they do have a bid that looks like $60,000 plus. Scott said the record needs to be clear that IBSD has all the same responsibilities and obligations for the portion of their line that runs through the School District’s property and the portion that runs through the City of Ammon’s property. We need to make sure the line and its flow is true from the time it intersects to the time it dumps out. Scott told Lance that the drainage area pumping systems needs to be a specific item in the sewer line installation project. Councilmember Kirkham said the other stipulation was that it is to be done before school starts. If the City doesn’t accept the School District’s terms, then the cost would be $600,000 to bypass the School District. Councilmember Powell said he would like a cap on the dollar amount. Todd Hicks, 3065 John Adams, Representative for School District 93 stated that they have a pre-quote from Precision Pumping Service that they used at Mountain Valley. The preliminary quote is $57,305 which doesn’t include the site prep or the main line connection to the drainage pond project. He doesn’t see it going above this cost, if the City takes care of the site prep with the overall sewer line project. Council asked Lance if this is possible. Lance said they can make sure it is part of the project, but it will cost more. Councilmember Thompson asked if the site prep would require pouring concrete. Lance said a concrete pad would be likely. Todd Hicks said there will be several feet of mainline and they would tap into the northwest corner of the drainage pond, which would save money by using fewer pipes. Councilmember Kirkham asked if he had any guess at the cost of the prep work. Lance said it could be a few thousand dollars and to install the pipeline could make it more and Councilmember Bean was pretty adamant that the pumping station was just that and the City’s obligation would not include the line. Councilmember Coletti asked what the exact language of the motion was, if it was just the pump or the entire line. Todd Hicks understands, as a representative of the School District, it would be to connect the drainage pond system to an alternate system and take it completely away from the domestic water system, which would require additional pipe to connect to the pumping station. Councilmember Kirkham said that was basically what the motion stated with the caveat that the experts would figure it out. Lance has talked with Roger Hill and he said that most of the main lines are existing, and the City could tap into those lines without running an entire new Council Minutes 3-17-11 Page 3 of 7 line. Todd Hicks would come up across the back side of Sandcreek Middle School between the track and the building and cross somewhere near the seminary with a small trench to the west side of the parking lot and make the connection there to the existing line. Council agreed to a cost limit of $70,000. Todd Hicks said if this were a stand-alone project it would cost $73,305, but he feels we could get some of the work at much less, if we include the water pump system in the entire project and feels $70,000 would be accurate. Lance said the water pump system would be a separate line item in the overall project. Councilmember Kirkham motioned to move forward with the District 93 IBSD easement, agreeing to the terms set forth by the School District, but not to exceed $70,000 for the total water pump system project. Councilmember Coletti seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Powell – Yes, and Councilmember Thompson – Yes. The motion passed. Ordinance 498 – Business Licenses - Third and Final Reading*: Councilmember Coletti read 3. Ordinance 498 AN ORDINANCE OF THE CITY OF AMMON, OF THE STATE OF IDAHO, AMENDING THE CITY CODE TITLE 4, BUSINESS REGULATIONS, CHAPTER 1, BUSINESS LICENSES, SECTION 1, LICENSE REQUIRED; TITLE 7, BUILDING REGULATIONS, CHAPTER 7, INTERNATIONAL FIRE CODE, SECTION 6, FEES; PROVIDING EXCEPTION TO BUSINESS LICENSING AND FIRE INSPECTION FEES FOR STATE AND FEDERAL OFFICES AND BUSINESSES; PROVIDING SEVERABILITY; PROVIDING REPEAL OF CONFLICTING ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF AMMON, IDAHO THAT: Section 1. Title 4, Business Regulations, Chapter 1, Business License Section 4-1-1 shall be amended to read as follows: LICENSE REQUIRED: No person shall operate, conduct, or engage in any industry, vocation, occupation, trade, or other business subject to the provisions of this Title without first obtaining an appropriate license from the City. Licenses shall be issued upon payment of the fees, which shall be determined by a schedule of fees adopted by the City Council by resolution which may be amended from time to time and upon the applicant's compliance with the applicable provisions of this Title and upon approval of the City Council. All licenses shall be a personal privilege of the holder. Except as expressly provided in this Title, a license shall become null and void if the holder ceases to personally supervise, conduct, and operate the trade or business for which the license has been issued. Unless otherwise provided in this Title, no license fee or any part thereof may be refunded even though the licensee does not operate for the period or any portion of the period for which the license was issued. Prior to the issuance of a business license the City Clerk shall provide the application to the following departments for review; Building Department, Fire Department, Public Works Department and Zoning Department. No license shall be issued to any business or location that is out of compliance with any City Code. Under criteria following adopted policy which shall be approved by resolution, business license fees may be waived for certain not for profit organizations. EXCEPTION: Offices or businesses operated by the State of Idaho or the Federal Government shall be exempt from the business license fee. These businesses shall continue to be licensed and provide all required information required of a business license to the City Clerk. Section 2. Title 7, Building Regulations, Chapter 7, International Fire Code Section 7-7-6 shall be amended to read as follows: FEES: Fees for building permits and services related to this chapter shall be established by resolution of the City Council, which may be amended and modified from time to time by resolution. EXCEPTION: Offices or businesses operated by the State of Idaho or the Federal Government shall be exempt from the fire inspection fee. Fire inspections shall continue to be provided by the Fire Department. Section 3. Repeal of Conflicting Provisions. All provisions of the current Code or ordinances of the City of Ammon which conflict with the provisions of this ordinance are hereby repealed to the extent of such conflict. Section 4. Severability. This ordinance is hereby declared to be severable. Should any portion of this ordinance be declared invalid by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect and shall be read to carry out the purpose(s) of the ordinance before the declaration of partial invalidity. Section 5. Effective Date. This ordinance shall be effective upon its passage and publication as provided by law. Enacted by the City Council as an ordinance of the City of Ammon on the 17th day of March, 2011. Approved by the Mayor on the 17th day of March, 2011. Councilmember Coletti motioned the adoption of Ordinance 498 and Summary as an ordinance of the City of Ammon on its third and final reading. Councilmember Kirkham seconded. Roll Call Vote: Councilmember Coletti – Yes, Councilmember Kirkham – Yes, Councilmember Thompson – Yes, and Councilmember Powell – No (he doesn’t have a problem with State and Federal Agencies having a business license at no charge, but doesn’t believe the City should have to pay for the fire inspections of those buildings). 4. Jetter Truck - Sewer Purchase (Lance)* Lance said he received a quote from Metro Quip for the sewer line maintenance truck of $352,115. It is more than the quote for the Ida County Highway District truck by approximately $11,000 with $7000 being due to new emission standards that went into effect between last year and this year and there is a different lighting package, a different passenger seat, and increased water capacity to suit the Cities needs. Metro Quip is comfortable with two payment installments with one in this fiscal year and the balance Council Minutes 3-17-11 Page 4 of 7 in the next fiscal year. Scott said it is a piggy back purchase. Lance said it will be late August before we can take delivery. Councilmember Kirkham said to match the lettering color with the City logo of green. Councilmember Kirkham motioned to approve the purchase of the Sewer Jetter Truck Purchase for $352,115 with a split payment over this fiscal year and next fiscal year. Councilmember Coletti seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Powell – Yes, and Councilmember Thompson – Yes. The motion passed. 5. Backup EIRWWA Representative (Leslie): Leslie said the City needs a backup representative for the Region when Councilmember Bean is not able to attend. Councilmember Kirkham stated she would like to be the backup for this, because she has worked so much with it and is vested in the project. Councilmember Coletti motioned for Councilmember Kirkham to be the backup EIRWWA Representative for the City of Ammon and to act in all respects as Councilmember Bean would in his capacity. Councilmember Powell seconded. Roll Call Vote: Councilmember Coletti – Yes, Councilmember Powell – Yes, Councilmember Thompson – Yes, and Councilmember Kirkham – Yes. The motion passed. 6. Resolution 2011-001 Destruction of Records (Leslie)*: Leslie informed the Council the City is running out of room for records storage and she has attached a list of the records to be destroyed for their approval. Councilmember Kirkham motioned to approve Resolution 2011-001 authorizing the Destruction of Records. Councilmember Coletti seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Coletti – Yes, Councilmember Thompson – Yes, and Councilmember Powell – Yes. The motion passed. Councilmember Powell left the meeting at 7:35 p.m. DISCUSSION ITEMS: 1. Sewer Bond Figure Breakdowns (Lance)*: Lance said in trying to determine how this will go forward, he has tried several formulas. Councilmember Kirkham said she talked to Ted Hendricks and in talking to the bond attorney; he was pretty positive they would extend the loan to 30 years and leave the interest at 2%, due to the Cities hardship. Lance said he had several bond amounts and interest rates and has a spreadsheet available, if Council wants to go over it. Discussion ensued. Leslie said that Stephanie Bonnie’s email said “The determination from the judge that an expense is an ordinary and necessary expense is not dependent on the term or details of the debt itself and not at all dependent on the rates that your citizens pay, it authorizes the incurrence of the debt. The use of the draft promissory note shows standing, but is not material to the findings. For example; there have been times when we did a judicial confirmation with a DEQ promissory note and then the entity decided to borrow from the USDA on different terms. We can still give a bond opinion based on the judicial confirmation, thus Mike, Elmore and I are comfortable with signing a bond opinion for a longer term”. Lance said the monthly user rate, in order to pay all of the expenses needed, is $47.47. Councilmember Thompson said he thought it would drop $5, if we went from 20 years to 30 years. Lance said the sewer-jetter truck won’t last 30 years and eventually will need replacement. Lance said the City’s $29 O&M is pretty comparable to other Cities and it is the bond amount that pushes the rate. Councilmember Kirkham said we have based this whole ideology on a reduction of $5 that we are going to be able to bank to help pay down the debt at the end, so that we don’t have to borrow more and what we have done here is actually increase it and there won’t be any saving. She is worried about paying for the project. Lance told Dana he would like to sit down with her and go over this. Dana said according to Ted and Husk, the DEQ will start to issue the violations to the City of Idaho Falls in the next month. Lance said Rick has a different figure for the operating budget of our sewer system and Lance told him to change that operating budget to be close to what he has. So the numbers that he comes up with should be very close to what he has. Councilmember Kirkham said she will be glad to do this when she gets the letter from DEQ. Lance said he is still unclear on the bond reserve. Jennifer sent off an email to the DEQ representative in Boise and the response didn’t make it appear that there was a clear percentage. The DEQ is just looking for a good faith effort. The water project is fine at 5%, but there is no set percentage on the sewer. Council Minutes 3-17-11 Page 5 of 7 2. Misc.: Lance said Mountain River is going out of business and has some equipment they are trying to liquidate. They have a large-format flat file folder cabinet that is fire proof that they purchased for $4500 in 2008 and are offering for sale for $2,500. He would like to purchase it to be used at the new SCADA Building to store large format drawings and would like Council’s input about the purchase. Councilmember Kirkham is going to talk about garbage, which will reduce his budget considerably. Lance said it could come from office supplies from several different departments to cover the cost. Councilmember Thompson said it’s hard to budget for a good deal. Lance said they would like to know in the next few weeks. Lance said the folder would hold the water and sewer maps and all the improvement drawings they can get in there with room for 800 – 900 sheets. Council concurred Lance can make the decision and they are ok with it. Ron said the Census numbers came out and the City went from an official count in the year 2000 of 6,187 to an official count in 2010 of 13,816, which is a 123.3% increase. Kuna was the only City with a higher growth rate than Ammon. He covered the other surrounding Cities and their ratings in the State. Councilmember Kirkham has received the bill for the facilitator for the meeting with the City of Idaho Falls, which was $3,700 for four hours including travel expenses. She has asked Mayor Jared Fuhriman for the invoice and the City will pay half of the invoice amount to Idaho Falls and Idaho Falls will pay the full amount to the facilitator. Councilmember Coletti said there won’t be a facilitator at the next meeting. Councilmember th Kirkham said the next meeting won’t occur until after April 17. Councilmember Kirkham said Ray has put some figures together for garbage and what it costs to dump a dumpster. It’s about $55.60 to dump a dumpster and part of this goes into reserves to obtain a new garbage truck. There have been two years where the City collected $250,000, but we have not bought a truck and have rolled that money into reserves. We budgeted for a new truck again this year, but will probably not buy the truck and will roll the money collected for it into the reserves. If we choose to collect no additional funds for a truck, we could take that $250,000 total and reduce it to $65,000, then we could reduce the dump rate to $18.53. We could cut the commercial rate in half. Councilmember Thompson said you always need to be saving. Ray is trying to firm up the numbers. The cost of our services is very expensive and this is one area where we could potentially save the business owners some money. Councilmember Kirkham said if this change is made in this fiscal year it might be a problem, so we could start to do it in October. Councilmember Coletti is fine waiting until October and this is a huge step. Councilmember Kirkham said there is some gray area on the apartment buildings as to whether they are commercial or residential. She said if they are residential, do we charge them at $10 per unit, which can be more than it costs to dump a dumpster. Leslie said the reality is if we did it at the $10 rather than the $12, they actually are right in line. Councilmember Kirkham said they would need to put it on the next Work Session. Leslie stated she called Bill Manwill regarding the easements. He mentioned that he hopes to see the Ball Ventures easement in 2 weeks and Tana at Ball Ventures has the ball rolling. He also mentioned Larsen Farms still has 2 out there, but he believes it will be cleared up soon. Ball Ventures has been managing the land for Larsen Farms. Lance said they have probably 6000 lineal feet of pipe left to install across the hold from Shelley at the Rocky Mountain Power area. Councilmember Thompson asked if they are going out around the hill by the golf course. Lance said it will cut east before you get to the sand hills and then go around. Segment C will go around. Councilmember Coletti was in the legislative committee meeting at the Chamber of Commerce. He said Eric Simpson was explaining there are 4 urban renewal bills that are up for consideration. There are two bills off the table that AIC would tend to support. If they don’t support the minor Urban Renewal changes, then something more drastic could come in and change it. Councilmember Coletti feels the committee has made some pretty impressive changes. 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) Council Minutes 3-17-11 Page 6 of 7 Councilmember Kirkham made the motion to move into executive session pursuant to Idaho Code 67- 2345 (1-b). Councilmember Coletti seconded. Roll Call Vote: Councilmember Kirkham – Yes, Councilmember Coletti – Yes, and Councilmember Thompson – Yes. The motion passed. The meeting adjourned at 8:10 p.m. _____________________________________ Steve Fuhriman, Mayor __________________________________ Leslie Folsom, City Clerk Council Minutes 3-17-11 Page 7 of 7