06022011CouncilMinutes
CITY OF AMMON
CITY COUNCIL MINUTES
THURSDAY, JUNE 2, 2011
AGENDA:
CITY OF AMMON
2135 SOUTH AMMON ROAD
CITY COUNCIL AGENDA
THURSDAY, JUNE 2, 2011 – 7:00 P.M.
CALL TO ORDER:
Mayor Steven Fuhriman at 7:00 p.m.
Pledge of Allegiance – Councilmember Slack
Prayer – Councilmember Coletti
MINUTES:
None
ITEMS FROM MAYOR:
CONSENT AGENDA:
Business License*
Accounts Payable – Exhibit A
AMMON LIGHTING DISTRICT #1 (City Council acting as Lighting District Board):
CONSENT AGENDA:
Accounts Payable – Exhibit A
ITEMS FOR/FROM TREASURER:
PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: (5 Minute Limitation)
PUBLIC HEARINGS:
None
ACTION ITEMS:
1.Grant Application – Weekend Baseball Tournament – Jeremy Ferguson*
2.Revised Preliminary Plat – The Villas (Ron)*
3.Ord 502 Summary Authorization (Ron)*
4.4060 E Sunnyside – Proposed Annexation Agreement (Ron)*
5.Ord 503 & Summary – Annexation 4060 E Sunnyside*
6.Stephanie Bonnie Attorney - Authorization for Judicial Confirmation*
7.Syringa Contract and Rate Structure (Patterson)*
8.Notice of Award – Authorization of Midway/Eagle Interceptor Line (Lance)*
9.Change Order #1 – EIRWWA Segment B (Lance)*
DISCUSSION ITEMS:
1.Single Family Dwelling Definition and Business Licensure (Ron)
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 Lee Bean
Councilmember Brian Powell
Councilmember Rex Thompson
Councilmember Sean Coletti
City Clerk Leslie Folsom
City Planner Ron Folsom
City Engineer Lance Bates
City Treasurer Jennifer Belfield
City Officials Absent:
Councilmember Russell Slack
Council Minutes 6-2-11 Page 1 of 8
Councilmember Dana Kirkham
City Attorney Scott Hall
CALL TO ORDER:
Mayor Steven Fuhriman opened the meeting at 7:00 p.m. at the City Hall building located at 2135 South
Ammon Road. Mathew Ames, Boy Scouts of America Troop #445 presented the Pledge of Allegiance. Councilmember Coletti
offered the prayer.
MINUTES:
None
ITEMS FROM MAYOR:
None
CONSENT AGENDA:
CITY OF AMMON
BUSINESS LICENSE CONSENT AGENDA
June 2, 2011
License applications, carrying the required documents, pending approval of the City Council:
GENERAL BUSINESS LICENSE:
1.NEWGENERAL BUSINESS LICENSE APPLICATION:
A.Youngbloods, LLC – Snow Shack/Concessions – 1975 Spencer Lane
th
B.Peak Restaurant Partners – IHOP – Restaurant – 2463 S. 25 E.
2.RENEWAL GENERALBUSINESS LICENSE APPLICATION:
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A.B.J. Alan Company – Fireworks Stand/Wal-Mart Parking Lot – 939 S. 25 E.
th
B.Inspired Living Home Décor – Retail Sales – 3160 E. 17 Street, Suite #120
CHILDCARE/CHILDCARE WORKER LICENSES:
1.RENEWAL CHILDCARE LICENSES:
st
A.Roth, Laurie – Childcare Employee/Lighthouse Montessori – 2664 E. 1 Street
B.Park, Riki – Childcare Employee – 1619 Curlew, Suite #2
LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE:
1. RENEWAL LIQUOR/BEER/WINE WITH GENERAL BUSINESS LICENSE:
th
A.Endow, Fred – Bartender/Sol Rio – 2635 S. 25 E.
MASSAGE LICENSE:
1.NEW MASSAGE LICENSE:
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A.Aldous, Hailey L. – Massage Therapist/Massage Envy – 3047 S. 25 E.
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B.Hubbard, Rachel Kristine - Massage Therapist/Massage Envy – 3047 S. 25 E.
Business License*: Councilmember Bean inquired concerning Peak Restaurant Partners (IHOP) and asked if they had
had a license before. Leslie said yes, they just changed management companies. Councilmember Coletti moved to approve the
Business Licenses, as presented. Councilmember Powell seconded. Roll Call Vote: Councilmember Coletti – Yes, Councilmember
Powell - Yes, Councilmember Bean – Yes, and Councilmember Thompson –Yes. The motion passed.
Accounts Payable – Exhibit A: Councilmember Powell talked about the check for the utility easement last week.
Councilmember Bean inquired about a check to Keller and Associates. Lance said there are still design costs and this is part of it, and
it covers work that’s already been done. Councilmember Bean moved to approve Accounts Payable, as presented. Councilmember
Coletti seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Coletti – Yes, Councilmember Thompson – Yes, and
Councilmember Powell – Yes. The motion passed.
AMMON LIGHTING DISTRICT #1 (City Council acting as Lighting District Board):
Mayor Fuhriman moved the Council meeting into the Lighting District Board session.
Council Minutes 6-2-11 Page 2 of 8
CONSENT AGENDA:
Accounts Payable – Exhibit A: Councilmember Powell moved to approve Accounts Payable Exhibit A
for Ammon Lighting District #1, as presented. Councilmember Coletti seconded. Roll Call Vote: Councilmember Powell – Yes,
Councilmember Coletti – Yes, Councilmember Thompson – Yes, and Councilmember Bean – Yes. The motion passed.
Council requested Leslie add an item to the next agent to consider requiring no formal approval for an amount up to $50, but
to require Board review of anything above $50.
Mayor Fuhriman moved the meeting back into regular City of Ammon Council session.
ITEMS FOR/FROM TREASURER:
City TreasurerJennifer Belfield showed the Council the flyer for special guests for the
Grand Opening of the C. Bruce Ard Public Works Building.Ray said he has sent out 30-40 invitations. It was discussed to leave
some extra flyers in the office for Council to take to anyone they feel should be personally invited.
PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA: (5 Minute Limitation):
None
PUBLIC HEARINGS:
None
ACTION ITEMS:
1. Grant Application – Weekend Baseball Tournament – Jeremy Ferguson*:
Jeremy was not present to speak.
2. Revised Preliminary Plat – The Villas (Ron)*:
City Planner Ron Folsom stated the location is north of the Cottages
nd
and west of 52East. He explained which parts are being revised and they are being requested by staff. A cul-de-sac and a street did
not meet the current Bonneville Metropolitan Planning Organization’s access management plan. Mitch from RMES worked with the
developer and revised the plan to accommodate it. They did gain one lot in the revision and eliminated some roadways, as well.
Lance, staff and Planning and Zoning have reviewed it and recommend approval.
Councilmember Powell moved to accept the Revised Preliminary Plat for The Villas. Councilmember Coletti seconded.
Roll Call Vote: Councilmember Powell – Yes, Councilmember Coletti – Yes, Councilmember Bean – Yes, and Councilmember
Thompson – Yes. The motion passed.
3. Ordinance 502 Summary Authorization (Ron)*:
Ron stated at the last meeting Council approved an ordinance that
annexed Dove’s Landing, due to its not being on the State map. The Council adopted the ordinance, but Scott suggested having a
summary for publication, because the ordinance is 7 pages long.
Councilmember Coletti read Ordinance 502 Summary,
AN ORDINANCE CORRECTING THE LEGAL DESCRIPTION CONTAINED
TH
WITHIN ORDINANCE #403 RECORDED ON SEPTEMBER 13, 2006, INSTRUMENT #1237289 ANNEXING CERTAIN LANDS TO THE CITY OF AMMON,
BONNEVILLE COUNTY, IDAHO, DESCRIBING WITH PARTICULARITY SAID LANDS TO BE ANNEXED, HEREBY ANNEXED, AND DECLARING SAID
LANDS AS PART OF THE CITY OF AMMON, BONNEVILLE COUNTY, IDAHO, DETERMINING THE PROPER ZONING FOR CLASSIFICATION OF THE
ANNEXED LANDS AND TERRITORY UNDER THE ZONING ORDINANCE OF THE CITY OF AMMON, IDAHO PROVIDING FOR AN EFFECTIVE DATE
Councilmember Coletti moved that the City Council dispense with the
FOR THIS ORDINANCE AND OF THE ANNEXATION OF SAID LANDS.
rule requiring the reading of the ordinance on three different days and that the three readings be waived. Councilmember Powell
seconded. Roll Call Vote: Councilmember Coletti – Yes, Councilmember Powell – Yes, Councilmember Thompson – Yes, and
Councilmember Bean – Yes. The motion passed.
Councilmember Coletti read Ordinance 502 Summary,
AN ORDINANCE CORRECTING THE LEGAL DESCRIPTION CONTAINED
TH
WITHIN ORDINANCE #403 RECORDED ON SEPTEMBER 13, 2006, INSTRUMENT #1237289 ANNEXING CERTAIN LANDS TO THE CITY OF AMMON,
BONNEVILLE COUNTY, IDAHO, DESCRIBING WITH PARTICULARITY SAID LANDS TO BE ANNEXED, HEREBY ANNEXED, AND DECLARING SAID
LANDS AS PART OF THE CITY OF AMMON, BONNEVILLE COUNTY, IDAHO, DETERMINING THE PROPER ZONING FOR CLASSIFICATION OF THE
ANNEXED LANDS AND TERRITORY UNDER THE ZONING ORDINANCE OF THE CITY OF AMMON, IDAHO PROVIDING FOR AN EFFECTIVE DATE
Councilmember Coletti moved the adoption of Ordinance 502
FOR THIS ORDINANCE AND OF THE ANNEXATION OF SAID LANDS.
Summary as an ordinance of the City of Ammon on its third and final reading. Councilmember Powell seconded. Roll Call Vote:
Councilmember Coletti – Yes, Councilmember Powell – Yes, Councilmember Thompson – Yes, Councilmember Bean – Yes. The
motion passed.
Councilmember Thompson inquired if a preliminary plat will need to be done again. Ron explained the preliminary plat has
expired. He explained the zones have been approved.
4. 4060 E Sunnyside – Proposed Annexation Agreement (Ron)*:
Ron stated the City has reached an agreement with
the owner. The owner is not here to address the Council and Ron would prefer he was. Ron advised the Council about what is being
proposed. Section 1 was calculated at $1.799 per square foot for the frontage that the City needs, which came out to $19,537.14,
which the City agreed to purchase from him as part of the annexation. Councilmember Thompson asked if this was a right-of-way or
Council Minutes 6-2-11 Page 3 of 8
an easement. Ron stated it is a right-of-way. Ron explained Section 2 was for the frontage fees for asphalt, curb, gutter, etc. which
came out to $17,195 to be put in escrow, until Sunnyside is done. He explained Item 3, the frontage fees in front of Ard Lane, was
determined to be $21,930. He explained Item 4, total calculated frontage fees, amounted to $39,125. Special Condition 1 credits the
City’s purchase of right-of-way for future expansion of Sunnyside Road in the amount of $19,537.14 to the developer, leaving a total
balance of $19,587.86 due for payment of frontage fees from the developer. The City agrees to take payment for the balance of the
frontage fees from the developer upon the following conditions. Ron read the three items in the agreements that are exceptions for the
developer. Ron explained originally he wanted to produce a site plan for the entire property, but he would then be required to plat it.
The rest of the items are the boiler plate items. Councilmember Thompson asked about water rights and the ditch. Ron stated the
ditch is on the City of Ammon property from what we can see from an aerial view. Ron recommended tabling the two items, until the
owner can come to the meeting to agree.
Councilmember Thompson moved to table items 4 & 5 until a future time when the developer is present. Councilmember
Powell seconded. Roll Call Vote: Councilmember Thompson – Yes, Councilmember Powell – Yes, Councilmember Bean – Yes, and
Councilmember Coletti – Yes. The motion passed.
Ord 503 & Summary – Annexation 4060 E Sunnyside*:
5. Councilmember Thompson moved to table items 4 & 5
until a future time when the developer is present. Councilmember Powell seconded. Roll Call Vote: Councilmember Thompson –
Yes, Councilmember Powell – Yes, Councilmember Bean – Yes, and Councilmember Coletti – Yes. The motion passed.
6. Stephanie Bonnie Attorney - Authorization for Judicial Confirmation*:
Leslie explained she put the information in
the Councils’ files. It is very close to what it was last time and maybe a little less. She will not proceed further, until she receives
authorization from Council. Councilmember Powell asked if Scott looked at it. Leslie stated yes. They are at a minimum of 44 days
out, due to the publication requirements. This will get everything started and the date for a public hearing could be set. Ron stated the
Council should move for him to set the date and he will get it set after he talks to the attorney.
Councilmember Powell moved to accept Stephanie Bonnie Attorney letter for Authorization for Judicial Confirmation and
allow Ron Folsom to confer with her to set a time, date and place for the public hearing and authorize the Mayor to sign the letter.
Councilmember Coletti seconded. Roll Call Vote: Councilmember Powell – Yes, Councilmember Coletti – Yes, Councilmember
Thompson – Yes, and Councilmember Bean – Yes. The motion passed.
7. Syringa Contract and Rate Structure (Patterson)*:
Bruce Patterson presented the Council with the dark fiber lease
agreement. He explained Scott has looked at it and approved it. Councilmember Thompson asked how much of the fiber is being
rented. Bruce explained it is 2 of the 48 count. They have access to 24, at this point. He asked what the rate is per fiber. Bruce
Patterson said $750 per month. Councilmember Thompson asked if this will be the going rate. Patterson said yes, as of today.
Councilmember Powell talked Syringa wanted 5 years, but the City wanted 2 years. Bruce explained with the signing of this contract,
the City will be in the fiber business. He has worked through all of the details and feels it is manageable. Bruce showed the Council
the location of the currently lit fiber on the map. The map used blue to show what needed to be done to get to the cell tower behind
the high school. Syringa is paying to install fiber from the building on Molen to behind the theatre. He talked about the wireless
capabilities from the pool and how it will help alleviate a lot of problems for the IT department. He showed the Council the red stars
on the map indicate 10 pending requests for services. He explained latency issues. Total packet stream may be good, but latency
decreases throughout.
Bruce talked about wireless routers and oversubscription. Councilmember Thompson asked about the end user rates.
Bruce said he feels that they will be able to deliver 20 meg for $50. Councilmember Powell said at that point you can have voice over
IP, internet, TV, etc. A lot of requestors are considering 100 meg for $60 - $70 per month. He is trying to cater to what the
constituents want and would like this to be a proving ground. It needs to be 100% reliable. The Sheriff’s Department is currently
requesting service, but the City doesn’t have a published rate and he will be moving toward the creation of this rate.
Page 4 shows lines he would like to move to, within a budget. This is a work in progress with what is the most reasonable
path. It goes to Well 7 and the Booster Station, which is the most reasonable and logical route. Leslie explained that the North section
goes to John Adams and the potential to finally get the road completed might happen with the fiber in the area, so even if it costs the
City it would probably benefit the City since the road actually will be going in. Bruce said he is trying to accommodate the schools
and would like to see the City get closer to their buildings. The schools have to go through a Request for Proposal (RFP) process.
The school has stated that there will be a RFP in 2012 and it will give the City a window of time to accommodate them.
The final screen showed if a grant comes through as to the lines he could complete. Councilmember Thompson asked what
the grant portion was. Bruce said it was $1.2 million (match portion) and half of it has been transferred. He explained there is a
budget meeting on Tuesday and asked the Council what they would like him to budget for. Other than some electrical, there are no
expenses other than a portion of his salary. He feels that the City has to continue to build to keep the system from being stagnant. He
would like direction, from the Council, as to how to budget for next year. His goal would be to make it self-sustaining. Jennifer
explained that out of the $1.2 million, $600,000 has already been transferred, half from the general government and half from the
Council Minutes 6-2-11 Page 4 of 8
water department. She would like to transfer the remaining half, as well. Councilmember Thompson asked if there is change for
getting the grant in the future. Councilmember Powell said we have a better chance with what we have done now.
Ron said the City has a request from Grow Idaho Falls of a data center and they are looking at Ammon, since fiber can be
given to them and fiber is a make or break requirement. The City can provide everything they require. Bruce said the data center
would have 175 full-time employees. They are looking for 50 – 75 acres. The property they are looking at already has the fiber by it.
Salary ranges go from $8.75 up to $39 an hour. They are looking at a property in Ammon and one in Idaho Falls. The flood plain
issue is Ron’s concern. The lease would be good for 20 years. We are not committing to a rate. Councilmember Powell asked how
many strands. Bruce said 2, but they do want a string. Bruce talked about a node. Councilmember Powell said there is a low tax rate,
good work force, good access to roads, new water, new sewer, and new fiber. Leslie said all of the employees would probably look at
housing close to their job. Bruce said due to the costs, now is the time. Bruce stated the first stage is done. Councilmember Bean
advised Bruce to work with Councilmember Powell as to how it can be funded. Councilmember Bean would like to know how much
we have in reserves. Councilmember Powell said let’s get a best guess in each segment and the Council could look at what they
would want to pick. Councilmember Coletti stated they would all like it to expand, but we need to know what we can budget for.
Lance said at last year’s budget the $1.2 million was felt to be acceptable. Leslie talked about considering the grant. Lance stated this
year’s budget has the $1.2 million allocated. Councilmember Powell thought we were looking at $600,000 this year and $600,000
next year. Bruce advised the Council that they aren’t paying an engineer, but with the oil prices everything went up 10%, such as
fiber and duct. Bruce would like the Council to allow him to work within the budget and leave the money, until he needs it for the
areas that makes sense. It will still be in reserve; however, it will be in the broadband budget. Bruce said the numbers he feels he can
support are the numbers he is giving the people making the requests. He told the Council he would come before them with each
segment to show them what can be accomplished. He would like to see how far he can get on the orange sections and then go to the
purple section. He wants to make the department self-sustaining. Mayor Fuhriman asked if the businesses will help put the model
into place. Bruce said they are used to doing business that way. He stated the fiber has to be within a reasonable distance for the
companies to connect to it. The rate table needs to stick. Syringa is going to the cell tower whom we have a 5 year contract with. If
we increase rates by 10%, we will tip them over and they will leave as soon as they can. We need to be sensitive to who the customer
is. He feels government needs to be the enabler, not the provider of the services. He feels we need to add some functionality and
clarity and the City needs the software in place to do that. The key to our success is separating the bill cost from the service cost.
Council talked about a water/sewer connection fee and if it would work the same for a fiber connect fee. Jennifer talked about how
the fees work. It was discussed that we may have to use manual invoices at first. Bruce talked about the difficulty of handling them
manually. Bruce stated this will officially put them in the business. Councilmember Thompson asked if Scott has been through this.
Bruce stated yes. Council discussed the $9.50 per foot, which is better than the going national rate. Councilmember Powell talked
about a severability clause that is discussed in Section 3.
Councilmember Powell moved to approve the Syringa contract and authorize the Mayor to sign. Councilmember Coletti
seconded. Roll Call Vote: Councilmember Powell – Yes, Councilmember Coletti – Yes, Councilmember Bean – Yes, and
Councilmember Thompson – Yes. The motion passed.
Bruce discussed the rate structure. He explained he has talked to the service providers and has received different answers.
He has talked to Syringa, Silverstar, Microserv, Fairpoint, and Quiknet and recommends the City go with the MECA (national
association) tables. They have 3 tiers of service and we can copy from that. Bruce wants to get rid of the low bit rate and not adopt it,
until someone asks for it. This is with QOS guaranteed, which means it is not oversubscribed. He recommends getting rid of anything
under 20 meg, so this will guarantee 20 meg all the time. The provider will pay the City $30 for every client they put on our system.
The City will be billing the service provider. If there was an internet only provider, there would be a best effort rate, which allows the
City to oversubscribe and reduces the Cities cost. He recommends doing away with the educational rate and instead offer a percentage
discount. Council agreed.
Discussion ensued as to what would be considered educational. He suggested only adopting what we need to. The first
customer is $300, plus each additional customer at a rate of $30. Bruce wants to keep his rates reasonable to help get growth.
He feels there is a lot of value with the MECA table. We will be competitive with Qwest, if they get fiber the City is the same price
and they see the City as friendly. Qwest doesn’t want the competition. Bruce asked if he would like to adopt the rates and wants to
make sure Council is comfortable with the rates, so the City can stick with those rates. Council is comfortable with Bruce’s
recommendations for the rates and staying with those rates for a while. Councilmember Powell asked how often MECA revises their
rates. Bruce mentioned when price drops, service improves. He suggests only offering the lower end for now and then adjusting the
rates, as needed. Council agreed it is smart to go with national rates and to move forward.
8. Notice of Award – Authorization of Midway/Eagle Interceptor Line (Lance)*:
Lance said the bid opening was last
Friday and HK submitted the apparent low bid in the amount of $2,120,569. Forsgren has analyzed the bids and they recommend
awarding the contract to HK. Lance wanted Council to be sure that the total project cost is $2.9 million dollars for the IBSD line. The
stipulated agreement (the mitigation) with IBSD is that they will pay $2.4 million. He feels the issue of award is when IBSD needs to
pay the $2.4 million. Councilmember Powell asked about Change Orders. Lance said there will be Change Orders, due to changes of
Council Minutes 6-2-11 Page 5 of 8
depth, rock, a little deeper or shallower, maybe unusual conditions, etc. and maybe the need to replace more or less asphalt, but no one
knows what it might be.
Dave Nowell, Forsgren Associates, said there is an $80,000 account built in for issues that Lance has discussed. Dave
anticipates a change order to solidify the number of units built into the ground. If everything goes perfect, your number will be less.
There are contingency’s built into these numbers for unknown situations. He commented that we are less than the $4.5 million
originally estimated. Councilmember Powell inquired about the time frame. Lance said probably the end of October for completion.
Kevin Harris, Forsgren Associates, said the final is 30 days after the 120 days allotted to reach substantial completion and
they will have to coordinate with Segment C, so it will be 30 days after substantial completion or they can wait for a letter from the
Regional Authority that Segment C is complete so they can reroute manholes, etc.
Councilmember Bean asked about the easement. Dave said the easement is holding up the concurrence from DEQ and
the good news is Councilmember Slack said he would be willing to help coordinate the easements. They passed a long a statement to
Tana Barney saying the City needed to move forward and this is the last chance for their acceptance or Ammon would be getting
involved, instead of the Region. Dave thinks somehow this was beneficial, because the next week they were able to get us the
signature blocks with the correct signing people, so they could get the easement document finalized. It is now in their hands and they
are supposed to sign it tomorrow morning, followed by the developer the next week and then it will get to Willie for concurrence.
Councilmember Bean asked if we have delivery of the pipe. Dave said the pipe has been ordered. Councilmember Bean
asked if the contractor is going to take delivery on it. Dave stated it will be $4,000 - $5,000 added on for him to accept it, unload it,
take liability, etc. It is not in his bid, but he will do it.
Lance stated we need to authorize the Mayor to sign the award, and then the contract will be issued. Lance asked the
Council how they would like him to talk with IBSD. Council told Lance to have Scott issue the letter to Tony to request the money.
Councilmember Bean moved to approve the notice of award to HK Contractors in the amount of $2,125,569 and authorize
the Mayor to sign it. Councilmember Powell seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Powell – Yes,
Councilmember Thompson – Yes, and Councilmember Coletti – Yes. The motion passed.
Councilmember Bean asked Lance to give Scott a call to get the letter out. Lance will double check the language on the
award, as well.
9. Change Order #1 – EIRWWA Segment B (Lance)*:
Lance said the Regional Board already authorized this Change
Order last week. It is the first Change Order on Segment B, which is a deduct Change Order to finalize the amount of pipe installed.
We stopped HK from finishing, so there were some differences in quantities and pipe amounts. The actual decrease change amount is
$133,528.28. Councilmember Powell asked what happened with the pipe.
Dave Nowell, Forsgren Associates said it will be used in Segment C. He explained there are four components and the first
one is a deduct. It simply says we are adjusting to the correct units installed. Councilmember Powell asked if all the units were
preordered, then what happened with the surplus. Dave said that only happened in some things. The way the contract is written, we
only pay for material that is in the ground. Because you had a contract and you are in construction for the last 300 feet, that material
was on site. We did say we will go ahead and pay for the materials only, but they were stock piled. So the materials were paid for,
but not the labor. These materials will be used on Segment C and there was a quantity adjustment. The quantities did not increase,
because they were already there. The second component was an increase in quantity for the chip seal. When they talked about
finalizing the roads, Bingham and Bonneville County both required that we replace to the center line. However, they became more
lenient and in a trade off the road were widened by 2 feet, but the net was less asphalt than was originally in the contract.
Councilmember Bean asked if the Counties paid for the extra 2 feet. Dave said they are a partner, so it was in the project.
Councilmember Bean said the County may be a partner, but they aren’t providing any funding. Dave said the trade off was to replace
the asphalt to the center of the road, however, the County said we will go to the center of the lane, if you will make the paved portion
of the road 2 feet wider. The result is less asphalt had to be installed and resulted in less cost. The third component has to do with the
Lazy Eights subdivision, which was the Merrill Blake’s subdivision. The assumption was that we would be done with his obligations
to the County with his chipseal, etc. by the time we got there. Merrill didn’t have the chipseal done. He asked to have the pipe moved
to the edge of the right-of-way, but they didn’t feel it would save any money. Merrill was successful in getting it moved and it did
save $50,000. He explained the budget had $90,000 and we ended up using $40,000. The money they did not spend is, because the
contract says it will be replaced to what was already there. He stated Merrill does not agree and we may receive calls from him.
Forsgren’s recommendation is that the obligation for the authority was for us to replace what was there and they did that. Merrill’s
obligation is to the County. The last component was at the end of the job HK was told to stop short, because of rock excavation.
There was some rock exploration done, but it was not in the contract, which they used a force account to pay for. There were parts
and pieces already ordered, etc. and there were some costs associated with them. The end result is out of the $130,000 we reduced the
contract by $50,000 that we just didn’t spend, and the other $80,000 was reusing the scope of the work.
Councilmember Bean moved to approve Change Order #1 – EIRWWA Segment B. Councilmember Powell seconded. Roll
Call Vote: Councilmember Bean – Yes, Councilmember Powell – Yes, Councilmember Coletti – Yes, and Councilmember
Thompson – Yes. The motion passed.
Council Minutes 6-2-11 Page 6 of 8
DISCUSSION ITEMS:
1. Single Family Dwelling Definition and Business Licensure (Ron)
: This item was tabled to a future date.
2. Misc.
Jennifer reminded the Council of the Special Work Session next Tuesday at 4:30 p.m. for the budget.
Councilmember Bean stated he will only be able to be there for the first hour. Leslie said we can have his session at the first.
Ron stated he needs a County Representative for Planning and Zoning.
Councilmember Bean gave a Regional Authority update on the board meeting. They set a policy that will have the City
update the Equivalent Residential Units (ERU) to them quarterly. They would also like the residential and commercial building
permits. Ray said they want their connection fees. They have no way of capturing those, unless they have the permits. In reality, it is
one connection fee and each participating entity gets a portion. Ron advised Councilmember Bean that he has a report to show what
he believes is the information they need. Councilmember Bean stated the Counties will also need to present their permits. It was
discussed some people connected illegally; however, they do not have any bylaws in place. It was discussed the Region will be doing
something concerning those illegally connected. It was discussed it was easier to have an illegal connection in the County, rather than
the City. Leslie stated if the City writes a regulation, the Region can mimic it. Lance inquired about the ERU count and if we have
the number of connections on the report, as well. Councilmember Bean stated that is what they want. It was asked if our connection
fee covers both the City’s portion and the Region’s. Councilmember Bean said he doesn’t know. Leslie stated that Councilmember
Kirkham was going to get together with the developers to discuss the issue and Leslie is unsure where it stands. Councilmember
Powell stated the developers didn’t like the additional fee above the $1300. Leslie asked if the Region wants $2600 and the City is
charging $1300, is the City going to have to cover the other $1300. Council discussed this needs to be figured out. The City is not
raising our fees and wondered if the City will have to collect the $2600. Councilmember Bean commented that the Board’s rate
structure is to the City, ours is to the customer. The Region will bill the City for the connections. Councilmember Powell asked if the
connection is based on the ERU. Councilmember Bean said no. Lance explained it is based on ERUs, however, the City of Ammon
currently doesn’t do that. It was discussed Shelley has a set fee. Councilmember Bean commented it is a “Capacity Replacement”
fee. He wonders if we really have a capacity replacement fee, if it is for the County. Councilmember Powell commented there are
two ways the fees are structured. He said with the capacity replacement fee, you have it for pipe for additional connections, and then
there is the monthly user fee. There should be a portion to replace old aging pipes. Councilmember Bean doesn’t like the capacity
replacement fee, because our pipes are designed to last. He feels it is more a buy-in to the capacity to the pipe. He wonders if you are
going to price developers out of the City with the $2600. Lance stated it is designed to expand to a certain portion. It was discussed
the City pays for oversizing. Lance talked about the Operation and Maintenance (O&M) budget to cover future pipe problems. Ron
commented that the capacity replacement fee was to be used for capital improvements. Councilmember Bean feels it needs to be
imperative for the treasurer to move $5 per ERU from each month’s billing into a capital improvement fund to be set aside on an
annual basis.
Ray talked about a depreciation fund. Councilmember Bean said he has tried for years to have a fund for depreciation in the
capital improvement fund equal to the depreciation of the vehicles, etc. The City has to have depreciation plus an additional amount
to cover changes in prices. Ray said the issue with the connection fee is it has to be used for O&M to maintain and replace, not
expansion. Councilmember Bean talked about the water study we did and wondered if we should do a sewer study, as well. He feels
we are okay for capacity. Lance feels in some areas we would be fine, but others he is not sure.
Councilmember Bean said hopefully the bids will be signed soon.
Councilmember Bean found out the plant was built on the City of Shelley property and there isn’t a lease on the
property. The City of Shelley is talking with their Councilmember’s as to what they want to do. Councilmember Bean is disturbed
that there is no lease agreement on the property. He feels the City of Shelley could hold us hostage. Leslie asked if the City of
Shelley could donate the land. Councilmember Bean said yes. Dave said part of the confusion is the agreement has long been that the
plant would just take care of the grounds and the City will pay for taking care of everything else and at some point they would work
out a low cost rate for the lease. It’s been brought up several times, but nothing has been done. Councilmember Bean asked Dave to
put it on the Regional agenda for the next meeting. It’s a good old boy board, but it needs to be tightened up. Councilmember Bean
asked about the manager. Dave said the one they were talking to is not interested anymore. They are waiting for direction from the
board. Councilmember Bean stated the management needs to be addressed.
Councilmember Powell said he talked to Ryan, since Ken hasn’t returned his calls concerning the ball park fields. Ryan
said he was instructed to prepare the fields twice a week. Councilmember Powell wants the City to refund at least two weeks of the
fee. He understands part of the fees were to reserve the diamonds. There were five weeks of usage. Ray said this year the weather
hasn’t allowed for the proper maintenance of the grounds. Councilmember Powell said there are other issues. He’s still unsure about
the restrooms not being opened. He said there is no port-a-potty at Lions field, even though they were there last year. It was
discussed that it needs be taken care of. Leslie stated we need to put it as an action item. Council feels it needs to be fixed. It was
Council Minutes 6-2-11 Page 7 of 8
discussed Councilmember Slack has tried to contact Ken. Council asked to have Ken come to the next meeting. Leslie will let Ken
know.
Leslie stated we got a bill from Bonneville Jefferson Groundwater District for $27,000 for four years. She called Ralph
Isom and asked him to assist in getting this bill taken care of. Ralph stated he will take all the finance charges off. She asked him to
refund a few years, etc., but he was going to check and see what the District could do. Ralph is sending someone to explain what the
bill entails and what they are willing to do on the billing. They will be here at the next work session. Leslie explained this group
helps the City defend our water rights and will pay the legal costs, including purchasing water to fulfill the water needs of the City
until the legal issue is solved, if needed. Councilmember Bean feels there is no benefit to this. Ron inquired if the City has actually
joined this organization. It was discussed we are not sure how we became a part of it. Council agreed to have the District attend the
next work session.
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)
Councilmember Bean moved to adjourn into executive session pursuant to Idaho Code 67-2345 (1-b) for personnel
reasons. Councilmember Powell seconded. Roll Call Vote: Councilmember Bean – Yes, Councilmember Powell - Yes,
Councilmember Coletti – Yes, and Councilmember Thompson – Yes. The motion passed.
The meeting adjourned at 9:37 p.m.
_______________________________________
Steve Fuhriman, Mayor
_________________________________________
Leslie Folsom, City Clerk
Council Minutes 6-2-11 Page 8 of 8