05.21.2020CouncilAgendaPacket
AMMON CITY COUNCIL MEETING
THURSDAY, MAY21, 2020 7:00 P.M.
2135 SOUTH AMMON ROAD
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AGENDA
A. CALL TO ORDER: Mayor Sean Coletti at 7:00 p.m.
Pledge of Allegiance Councilmember Wheeler
Prayer Councilmember Thompson
B. CONSENT AGENDA:
1. Accounts Payable Report: Exhibit A
2. Minutes:
i. May 7, Regular Meeting
ii. May 14, Work Session
C. PROCLAMATIONS AND ANNOUNCEMENTS
D. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit)
E. PUBLIC HEARINGS: 2020-016 Bonneville County Fire District
F. ACTION ITEMS:
1. Ordinance 637 and Summary LID #3 (Micah Austin, City Administrator)
2. Comprehensive Plan Land Use Map Amendment (Cindy Donovan, City Planner)
3. Rezone of Kartchner Property C-1 to R2-A (Cindy Donovan, City Planner)
4. Ordinance 638 Annexation of Stierle Property (Cindy Donovan, City Planner)
G. DISCUSSION ITEMS:
1. Staff Reports
i. Summer Projects Update
ii. Ammon Days Update
2. City Council Reports
3. Report
H. EXECUTIVE SESSION:
1. Real Property Acquisition Idaho Code 74-206 (1) (c)
I. ACTION ITEM:
th
1. Purchase of Real Property at Intersection of Ammon Rd and 49 St to Expand Woodland Hills Park
J. ADJOURN
INDIVIDUALS NEEDING ACCOMODATION DUE TO DISABILITY MUST CONTACT CITY HALL NO
Next Resolution Number: 2020-006R
Ammon City Council 05/19/2020Page 1 of 68
LATER THAN 1:00 P.M. THE DAY BEFORE THE SCHEDULED MEETING TO ARRANGE ASSISTANCE
Next Ordinance Number: 639
AMMON CITY COUNCIL MEETING
THURSDAY, MAY 7, 2020 7:00 P.M.
2135 SOUTH AMMON ROAD
AGENDA
A. CALL TO ORDER: Mayor Sean Coletti at 7:00 p.m.
Pledge of Allegiance Councilmember Thompson
Prayer Councilmember Wessel
B. CONSENT AGENDA:
1. Accounts Payable Report: Exhibit A
2. Minutes:
i. April 16, Regular Meeting
C. PROCLAMATIONS AND ANNOUNCEMENTS
Support Local Ammon Businesses Week
D. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit)
E. PUBLIC HEARINGS: 2020-015 Bonneville County Fire District
F. ACTION ITEMS:
1. Conditional Use Permit Extension Hillcrest High School for Modular Classrooms (Cindy Donovan, City Planner)
2. Conditional Use Permit Rimrock Elementary School for Modular Classrooms (Cindy Donovan, City Planner)
3. Conditional Use Permit Extension Woodland Hills Elementary School for Modular Classrooms (Cindy Donovan, City Planner)
4. Variance Request Leask (Cindy Donovan, City Planner)
5. Final Plat Ammon Park Center Division 3 (Cindy Donovan, City Planner)
6. Development Agreement Deer Valley Subdivision (Cindy Donovan, City Planner)
7. Final Plat Deer Valley Subdivision (Cindy Donovan, City Planner)
8. Development Agreement South Commercial Park (Cindy Donovan, City Planner)
9. Final Plat South Commercial Park (Cindy Donovan, City Planner)
10. Ordinance 636 and Summary Parameters for Financing of 2012 Water Bond (Micah Austin, City Administrator)
G. DISCUSSION ITEMS:
1. Staff Reports
i. Bonneville County Unified Command Update
ii. Recreation Activities and Ammon Pool
iii. Ammon Days 2020
2. City Council Reports
3.
H. EXECUTIVE SESSION:
1. Real Property Acquisition Idaho Code 74-206 (1) (c)
I. ACTION ITEM:
th
1. Purchase of Real Property at Intersection of Ammon Rd and 49 St to Expand Woodland Hills Park
J. ADJOURN
MINUTES
City Officials Present: Mayor Sean Coletti (via Zoom)
Council President Russell Slack (via Zoom)
Councilmember Rex Thompson (in person)
Councilmember Scott Wessel (in person)
Councilmember Craig Tibbitts (via Zoom)
Councilmember Josh Wheeler (via Zoom)
Councilmember Byron Wiscombe (via Zoom)
City Attorney Scott Hall (in person)
City Administrator Micah Austin (in person)
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Ammon City Council 05/19/2020Page 2 of 68
City Planner Cindy Donovan (via Zoom)
Fire Chief Stacy Hyde (in person)
Parks and Recreation Director Ken Knoch (in person)
Tracy Bono (via Zoom)
City Clerk Kristina Buchan (in person)
A. CALL TO ORDER: Mayor Coletti opened the meeting at 7:00 p.m. at the Ammon City Hall building located
at 2135 South Ammon Road, the meeting was conducted via a Zoom conference call. Council Member
Thompson led the Pledge of Allegiance and Council Member Wessel offered a prayer.
B. CONSENT AGENDA:
a. Accounts Payable Report: Exhibit A
b. Minutes:
i. April 16, Regular Meeting
It was moved by Council Member Tibbitts and seconded by Council Member Thompson to approve the
consent agenda. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
C. PROCLAMATIONS AND ANNOUNCEMENTS
rdth
Mayor Coletti read the Proclamation for Support Ammon Businesses Week, declaring May 3 through 9
as Support Ammon Businesses Week.
Whereas, the city of AMMON, IDAHO, celebrates our local small businesses in Ammon and the
contributions they make to our local economy and community; and
Whereas, small businesses employ 64 percent of new employees in the private sector in the United
States; and
Whereas, there exists 30.7 million small businesses in the United States; and
Whereas, the success of our Ammon businesses depends on market demand; and
Whereas, the most reported reason for consumers to shop and dine at local, independently owned
businesses was to support their community (64%); and
Whereas, AMMON, IDAHO supports our local businesses that create jobs, boost our local economy and
preserve our communities; and
Whereas, residents can get involved by shopping at Ammon businesses while maintaining safety
protocols, purchasing gift cards for future use or for loved ones, and ordering take-out or delivery from
local restaurants.
Now, Therefore, I, SEAN COLETTI, Mayor of AMMON, IDAHO do hereby proclaim, May 3rd through
May 9th, 2020 as: SUPPORT AMMON BUSINESSES WEEK
And urge the residents of our community to support Ammon businesses and merchants this week and
throughout the year.
D. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit)
There was no public comment
E. PUBLIC HEARINGS: 2020-015 Bonneville County Fire District
Administrator Austin detailed the guidelines for involvement in the hearing. Mayor Coletti provided a
brief introduction to the hearing and read the letter sent to Ammon residents. Coletti added that Council
hoped a mutual aid agreement would be implemented with City of Idaho Falls should the transition take
place and that the paid-call model currently used by City of Ammon would only be implemented in
Ammon City limits and that no plans existed to transition the entire district to the same model. Mayor
Coletti added clarification on a few questions that had been brought forward:
Q. How will this affect EMS?
A. There will be no effect to EMS at all.
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Q. Will Ammon be called to fires in the county?
A. Not unless Idaho Falls (which manages the County contract) requests assistance.
Q. What if there are two fires in Ammon? Who will handle them?
A. Ammon firefighters will handle both, just as they always have.
Q. What does this have to do with the Idaho Falls contract with the Fire District?
A. Nothing. This is only a question of whether joining the Fire District benefits Ammon residents and
businesses. Plain and simple. It has nothing to do with the Idaho Falls contract with the Fire District for
the rest of the county.
Q.
A. We have considered that. But at the end of the day, we were concerned with ongoing expected and
unsustainable cost increases and a change in fire department culture. Not necessarily that it was a
change for the worse, but it was a change that we did not want to see occur, because we want to
preserve the culture that currently exists with Ammon Fire.
Q. If Ammon joined the Fire District, would Ammon firefighters become employees of the Fire District?
A. Yes.
Q. But the Fire District does not have any employees.
A. But obviously that would be different if Ammon joined the Fire District. Ammon firefighters currently
stationed at the Ammon station would continue to handle fires in the City of Ammon, but would be
employees of the Fire District.
Q If Ammon joined the Fire District, since Idaho Falls Fire handles the Fire District contract, would IF Fire
then fight fires in Ammon?
A No, IF Fire would continue to fight fires in the remaining county areas. Ammon firefighters would fight
fires in Ammon.
Mayor Coletti then opened the public hearing for input.
th
Nolan Getsinger, 2840 E 17 Street, introduced himself to Council adding that he was a career firefighter
for City of Idaho Falls and expressed his support regarding Ammon joining the Fire District and added that
his son is currently training for the Ammon Resident Firefighter program. Council President Slack and
Mayor Coletti both thanked Mr. Getsinger for his unique perspective and input.
Tom Hunsaker, 2925 Carolyn Lane, noted that he trusted Fire Chief Stacy Hyde completely in his opinion
and detailed the importance and effectiveness of the paid-call model of firefighting. Hunsaker asked for
clarification on if the contract was severable and what benefits would be offered to current Ammon
firefighters. Mayor Coletti and Chief Hyde spoke to the benefits being offered to current employees,
adding that the commission has agreed to offer same, if not better, benefits than currently offered.
Coletti then invited Attorney Scott Hall to review severability who reviewed the appropriate statute in
Idaho Code considering the ability for City of Ammon to leave the Fire District should it no longer be a
beneficial relationship.
A commenter on Zoom asked for clarification on the two stations surrounding the City and how they
would be staffed. Hyde reviewed the plans for a mutual aid agreement and the impact they would have
on services.
Seeing no other comments, Mayor Coletti closed the hearing and returned toe regular business.
F. ACTION ITEMS:
a. Conditional Use Permit Extension Hillcrest High School for Modular Classrooms (Cindy Donovan,
City Planner)
City Planner Cindy Donovan reviewed the current permit, noting that there are now 4 modular
units, the proposed extension would remove two units and extend the permit for 5 years.
Donovan noted that there was no comment at either noticed hearing dates. Donovan invited Don
Trauntvein from District 93 reviewed the map of the high school and discussed how the locations
would be used.
Recommendation
- Staff recommends: approval
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Summary of Analysis
- Currently 4 Modular Units on the property
- Will be removing 2 of the modular units
Parcel Characteristics
- Requesting 5-year extension for remaining 2 modular units
- Property is located north of Sunnyside Road, east of Eagle Drive, south of Owen, west of Carolyn
Lane
- Request being presented by Don Trauntvein, Bonneville County School District #93
- Requesting 5-year extension for 2 modular units on the north side of the building
Notice
- Letters were mailed out to 91 property owners and 18 public entities on March 13, 2020 and
April 8, 2020
- Published in the Post Register on March 13, 2020 and April 8, 2020
- Property was posted on March 19, 2020 and April 14, 2020
- Public comment: no written testimony for either public hearing date
Planning and Zoning Commission
- Public hearing held on April 29, 2020, original hearing on April 1, 2020 was cancelled
- Commission recommends approval of the 5-year extension
- There was no written testimony for either hearing date and no verbal testimony
- Modular classroom units are still needed at this time
- School district needs to play shell game with modular classrooms due to growth
Compliance with Zoning Ordinance
- 10-27-3: CONDITIONAL USE PERMIT OVERLAY (CUP-):
A. GENERAL OBJECTIVES AND CHARACTERISTICS OF THE CONDITIONAL USE
PERMIT OVERLAY (CUP-): The objectives in establishing the conditional use permit overlay
is to provide for location of permanently issued conditional use permits. Normally the CUP
Overlay designation will show the location and existing zoning for churches and schools.
Compliance with Subdivision Ordinance
- NA
It was moved by Council Member Wessel and seconded by Council President Slack to the 5-year
extension of the Conditional Use Permit for two (2) modular classroom units at Hillcrest High School
finding it is in compliance with the City Ordinance. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
b. Conditional Use Permit Rimrock Elementary School for Modular Classrooms (Cindy Donovan, City
Planner)
Donovan reviewed the proposed permit request to add two units to the elementary school to
avoid bond expansion. The school is requesting a five-year permit. Donovan noted that there was
no comment at either noticed hearing dates. Mr. Trauntvein reviewed layout and planning for
Council. Council discussed the location and plan of installation.
Recommendation
- Staff recommends: approval
Summary of Analysis
- Currently no modular classroom units on the property
- District 93 is making boundary changes to delay bonding for elementary school
- One unit will be placed summer 2020, second unit will be placed summer 2021
Parcel Characteristics
- Rimrock Elementary is located in the Cottages subdivision
- Property is located north of Brennan Bend, east of S 45 th East (Crowley Road), south of East 21 st
South, west of Stafford Drive
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- Request being presented by Don Trauntvein, Bonneville County School District #93
- Requesting 5-year Conditional Use Permit for two (2) modular classroom units
Notice
- Letters were mailed out to 37 property owners and 18 public entities on March 13, 2020 and
April 8, 2020
- Published in the Post Register on March 13, 2020 and April 8, 2020
- Property was posted on March 19, 2020 and April 14, 2020
- Public comment: no written testimony received for either of the public hearings
Planning and Zoning Commission
- Public hearing held on April 29, 2020, original hearing on April 1, was cancelled
- Commission recommends approval for a 5-year conditional use permit
- There was no written testimony for either hearing and no verbal testimony
- Modular classrooms are needed at this time
- Growing population creates the need for modular units
Compliance with Zoning Ordinance
- 10-27-3: CONDITIONAL USE PERMIT OVERLAY (CUP-):
GENERAL OBJECTIVES AND CHARACTERISTICS OF THE CONDITIONAL USE
PERMIT OVERLAY (CUP-): The objectives in establishing the conditional use permit overlay is to provide for
location of permanently issued conditional use permits. Normally the CUP Overlay designation will show the
location and existing zoning for churches and schools.
Compliance with Subdivision Ordinance
- NA
It was moved by Council Member Wheeler and seconded by Council President Slack to approve the
Conditional Use Permit for a period of 5 years for placement of two (2) modular classroom units at
Rimrock Elementary School finding it is in compliance with the City Ordinance. aƚƷźƚƓ ƦğƭƭĻƭ
ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
c. Conditional Use Permit Extension Woodland Hills Elementary School for Modular Classrooms
(Cindy Donovan, City Planner)
Donovan reviewed the proposed extension for three modular units in an effort to delay bonding
for a new elementary school. Donovan noted that there was no comment at either noticed
hearing dates.
Recommendation
- Staff recommends: approval
Summary of Analysis
- Currently 3 modular classroom units on the property
- District is making boundary changes to delay bonding for an elementary school
Parcel Characteristics
- Requesting 5-year extension for 3 modular classroom units
- Property is located north of 49 th South (Township Road), east of 35 th East (Ammon Road), south
of Sunnyside Road, west of 45 th East (Crowley Road)
- Request being presented by Don Trauntvein, Bonneville County School District #93
- Requesting 5-year extension for 3 modular classroom units
Notice
- Letters were mailed out to 24 property owners and 18 public entities on March 13, 2020 and on
April 8, 2020
- Published in the Post Register on March 13, 2020 and April 8, 2020
- Property was posted on March 19, 2020 and April 14, 2020
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Ammon City Council 05/19/2020Page 6 of 68
- Public comment: no written testimony received for either of the public hearings
Planning and Zoning Commission
- Public hearing held on April 29, 2020, original hearing April 1, 2020 was cancelled
- Commission recommends approval of the 5-year extension
- No written testimony was received for either hearing and no verbal testimony
- Modular units are needed at this time
- Due to growth the modular units will need to remain
- Existing units will remain for 5 years
Compliance with Zoning Ordinance
- 10-27-3: CONDITIONAL USE PERMIT OVERLAY (CUP-):
GENERAL OBJECTIVES AND CHARACTERISTICS OF THE CONDITIONAL USE
PERMIT OVERLAY (CUP-): The objectives in establishing the conditional use permit overlay is to provide for
location of permanently issued conditional use permits. Normally the CUP Overlay designation will show the
location and existing zoning for churches and schools.
Compliance with Subdivision Ordinance
- NA
It was moved by Council Member Wiscombe and seconded by Council Member Wessel to approve the
5-year extension of the Conditional Use Permit for three (3) modular classroom units at Woodland Hills
Elementary School finding it is in compliance with the City Ordinance. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ
ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
d. Variance Request Leask (Cindy Donovan, City Planner)
Donovan reviewed the request brought forward to Council regarding the request for variance for
the Leask residence. Donovan noted that staff recommended denial of the request as it differs
from BMPO standards. Administrator Austin reviewed the reasoning for hearing a non-variance
request, Austin added that future requests would be heard by the City Engineer and the decision
could be brought to Council if there was an appeal. City Engineer Tracy Bono reviewed his
concerns with the request for circular driveways and detailed the BMPO standards in question.
Council discussed the request and the staff recommendations considering previous decisions and
presented standards and reports.
Recommendation
- Staff recommends: denial based on BMPO standards
Summary of Analysis
- Parcel contains a single-family detached dwelling
- New construction
- Current BMPO standards allow for a single access from residence to street
Parcel Characteristics
- Current zoning: RP-A
- Lot size: 1.16 acres
- Property is located on the east side of Sage Hen Lane
- Request being presented by Jonathan Leask
- To allow a second access to the street from the property
History
- Any request for a variance from code in the past has used the format from 10-9-8, included in this staff
report. This same format was used for the public hearing before planning and zoning on April 29, 2020 for the
request for a circular driveway in the Quail Ridge subdivision. However, State Statute 67-6516, included in
this staff report, shows that this is not the case, and items such as this application, do not qualify as a
Ammon City Council Regular Meeting 05.07.2020 Page 6 of 14
Ammon City Council 05/19/2020Page 7 of 68
variance request. This was brought forward during the public hearing, and the Planning and Zoning
Commission agreed to hear the matter.
Notice
- Letters mailed on April 8, 2020
- Published in the Post Register on April 8, 2020
- Property posted on April 21, 2020
- Written testimony letters included in packet, all in favor of request
Planning and Zoning Commission
- Public Hearing held on April 29, 2020
- Public Comment: Received 8 letters, included in this packet and 1 person testified in favor of the variance at
the hearing
- Commission recommends approval with a vote of 6 in favor and 2 against
- Commission stated the requirements for a variance were met because of the following:
- Bend in road creates a blind spot
- Community mailbox is located adjacent to the property
- Presence of multiple circular driveways in this neighborhood
- This is a unique neighborhood with larger lots
- Allows for safer access
- No on-street parking
- Not caused by property owner
-
Compliance with Zoning Ordinance
- 10-13-1: GENERAL OBJECTIVES AND CHARACTERISTICS OF ZONE: The objectives in establishing the RP-A
Residence Zone is to provide a residential environment within the City which is characterized by smaller lots
and somewhat denser residential environment than is characteristic of the RP Residence Zone. Nevertheless,
this zone is characterized by spacious yards and other residential amenities adequate to maintain desirable
single-family residential conditions. The principal uses permitted in this zone shall be single-family dwelling
units and certain other public facilities needed to promote and maintain stable residential neighborhoods.
No single lot, regardless of the status of platting in the RP-A Residence Zone shall contain more than one
dwelling unit, except as specifically allowed by this Title. This zone falls under the low density designation and
does not allow density that will exceed 2.5 living units per acre.
- 10-9-8: POWERS AND DUTIES OF THE BOARD OF ADJUSTMENT: The Board of Adjustment shall have the
following powers and duties:
A. Alleged Error. The Board of Adjustment shall hear and decide appeals wherein it is alleged that there is
error in any order, requirement, decision, or determination made by the Zoning Administrator, or other
administrative officers, in the enforcement of this ordinance and shall decide questions involving
interpretation and determination of zone boundary lines, subject to review and approval by the City Council.
B. Variance. The Board of Adjustment may grant variances from the strict letter of this ordinance where a
property owner can show that:
1. Because of exceptional narrowness, shallowness or shape of a specific lot or parcel of land, or
2. By reason of peculiar topographical features or other special circumstances peculiar to the particular lot or
parcel of land, the strict application of the terms of this ordinance would deprive him of privileges commonly
enjoyed by other properties in the same zone.
Before a variance can be granted, the Board of Adjustment must find upon the evidence before it that:
1. Special circumstances do actually attach to the particular property which do not apply generally to the
other properties in the same zone.
2. Because of some special circumstances the appellant's property is deprived of privileges possessed by
other properties in the same zone.
3. The granting of such variance will not adversely affect the comprehensive plan of zoning in the City.
4. Adherence to the strict letter of the ordinance will cause difficulties and hardships, the imposition of which
is unnecessary in order to carry out the purposes of the zoning plan.
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Ammon City Council 05/19/2020Page 8 of 68
5. The hardship has not been caused by an action of the property owner taken after the effective date of this
ordinance.
Compliance with Subdivision Ordinance
- NA
It was moved by Council Member Wessel and seconded by Council Member Tibbitts to deny the
variance request for 1761 Sage Hen Lane, finding it does not meet the requirements for a variance.
Wessel ǤĻƭͲ ĭƚǒƓĭźƌ ğƦƦƩƚǝźƓŭ ƷŷĻ ƩĻƨǒĻƭƷ Ǟźƌƌ ƚƦĻƓ ǒƦ ƌźğĬźƌźƷǤ ǞźƷŷ ķĻĭźƭźƚƓ ƓƚƷ ĬğƭĻķ ƚƓ BMPO
ŷƚƒƦƭƚƓ
{ƌğĭƉ ǤĻƭͲ BMPO ƭğǤƭ Ɠƚ ĬǒƷ ƷŷĻƩĻ źƭ ƓƚƷ ƚƓĻ ƭƚƌǒƷźƚƓ Ʒƚ ğƌƌ ƭźƷǒğƷźƚƓƭ
ŷĻĻƌĻƩ ƓƚͲ BMPO źƭ ƓƚƷ ğƦƦƌźĭğĬƌĻ źƓ ğƌƌ ĭğƭĻƭ
źĬĬźƷƷƭ Ώ ǤĻƭ
źƭĭƚƒĬĻ Ώ ƓƚͲ BMPO źƭ Ʒƚƚ ƩĻƭƷƩźĭƷźǝĻ ğƓķ ķƚĻƭ ƓƚƷ ğƌǞğǤƭ ƒğƉĻ ƭĻƓƭĻ
{ĻĻźƓŭ ğ ƷźĻķ ǝƚƷĻͲ ağǤƚƩ /ƚƌĻƷƷź ǝƚƷĻķ Ʒƚ ĬƩĻğƉ ƷŷĻ ƷźĻʹ
/ƚƌĻƷƷź Ώ ƓƚͲ ĻƒƦŷğƭźǩĻķ ƩĻƭƦĻĭƷ ŅƚƩ ƩğĭǤ ƚƦźƓźƚƓƭ ğƓķ ĻǣƦĻƩƷźƭĻ
aƚƷźƚƓ Ņğźƌƭ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
It was moved by Council Member Wiscombe and seconded by Council Member Thompson to approve
the variance request for 1761 Sage Hen Lane finding it meets the requirements for a variance.
źƭĭƚƒĬĻ ǤĻƭ
ŷƚƒƦƭƚƓ ǤĻƭ
ĻƭƭĻƌ Ɠƚ
ŷĻĻƌĻƩ ǤĻƭ
{ƌğĭƉ Ɠƚ
źĬĬźƷƷƭ Ɠƚ
{ĻĻźƓŭ ğ ƷźĻķ ǝƚƷĻͲ ağǤƚƩ /ƚƌĻƷƷź ǝƚƷĻķ Ʒƚ ĬƩĻğƉ ƷŷĻ ƷźĻʹ
/ƚƌĻƷƷźͲ ǤĻƭ
aƚƷźƚƓ ƦğƭƭĻƭ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
*Council Member Wiscombe exited the meeting at this time and was not present for any further votes
e. Final Plat Ammon Park Center Division 3 (Cindy Donovan, City Planner)
Donovan reviewed the plan noting that the development agreement had been signed in 2008.
Donovan invited the developers to comment and council discussed the site plans, particularly the
roads and planned accesses, and possible businesses.
Recommendation
- Staff recommends: approval
Summary of Analysis
- Parcel will be built out as commercial/office space
- Property is zoned CC-1
- Development Agreement for Division 3 was signed on December 18, 2008
Parcel Characteristics
- Current zoning: CC-1
- Total acreage: 1.948 acres
- This is a portion of Division 3
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- Property is located north of 17 th Street, east of Midway Avenue, south of Briar Creek Lane, west of Ammon
Road.
- Request being presented by Kurt Roland, Eagle Rock Engineering
- Approval of final plat showing commercial lots
Planning and Zoning Commission
- Presented to the commission on April 29, 2020
- Was presented with the title of Division 5, this has been changed it is actually a portion of
Division 3
- Recommend approval subject to technical review
Compliance with Zoning Ordinance
- 10-22-1: OBJECTIVES AND CHARACTERISTICS OF ZONE: The objectives in establishing the CC-1 Central
Commercial Zone is to create and maintain a dominant shopping and financial center. For this reason, the
zone has been located where the street pattern makes the business buildings readily accessible to all parts of
the City and surrounding region, and where business and shopping activities can be carried on with maximum
convenience. The CC-1 Central Commercial Zone is characterized by clean, well-lighted streets, ample
pedestrian ways and vehicular parking lots for the convenience and safety of the public. Attractive, inviting
and well-maintained shops, stores, offices and other buildings are also characteristic of this zone.
Compliance with Subdivision Ordinance
- Title 10 Chapter 29 Section 8 this section details the requirements of a final plat
It was moved by Council Member Tibbitts and seconded by Council Member Wessel to approve the
Ammon Park Center Division 3 1st Amended Final Plat, finding it is in compliance with the
Comprehensive Plan and meets the City ordinance, subject to technical review. aƚƷźƚƓ ƦğƭƭĻƭ
ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
a. Final Plat Deer Valley Subdivision (Cindy Donovan, City Planner)
Council discussed the plans for the final plat as presented, again reviewing the increase in multi-
family homes within the City.
Recommendation
- Staff recommends: approval
Summary of Analysis
- Parcel will be built out as single-family attached dwellings
- Parcel will be divided into 9 lots - 8 lots will contain 4 single-family attached dwelling units and 1 lot will be
non-buildable (storm water retention area)
Parcel Characteristics
- Current zoning: R-2
- Total acreage: 6.837 acres
- Average lot size: .30 acres
- Property was annexed on April 20, 2006
- Property was rezoned to R-2 on August 15, 2019
- Preliminary Plat was approved on September 19, 2019
- Property is located north of 49 th South (Township Road), east of Rich Lane, south of Sunnyside
Road, and west of 35 th East (Ammon Road)
- Development will allow for connectivity from east to west
Applic
- Request being presented by Kurt Roland, Eagle Rock Engineering
- To approve the plat that will connect Judy Street for east/west access and allow for 32 single-family
attached dwellings
Planning and Zoning Commission
Ammon City Council Regular Meeting 05.07.2020 Page 9 of 14
Ammon City Council 05/19/2020Page 10 of 68
- Recommended approval subject to technical review
- Good transition from residential to west and commercial on east
- Storm retention pond will create green space for R-2 zone
Development Agreement
- Requires culvert/bridge to connect to Olsen Park to the west
- Requires walking path along canal easement
- Includes fiber installation to homes
Compliance with Zoning Ordinance
- 10-15-1: GENERAL OBJECTIVES AND CHARACTERISTICS OF ZONE: The objective in establishing the R-2
Residence Zone is to encourage the creation and maintenance of residential areas within the City which are
characterized by smaller dwellings, somewhat more compact and denser residential development. This zone
falls under the medium high density designation, no more than eight (8.0) dwelling units shall be permitted
per acres. The principal permitted uses in the R-2 Residence Zone shall be single-family detached dwelling
units, buildings containing two (2), three (3), or four (4) zero lot line single-family attached dwelling units, and
certain other public facilities which are necessary to promote and maintain stable residential areas.
Compliance with Subdivision Ordinance
- Title 10 Chapter 29 Section 8 this section details the requirements of a final plat
It was moved by Council Member Tibbitts and seconded by Council Member Wheeler to the Deer
Valley Final Plat, finding it is in compliance with the Comprehensive Plan and meets the City ordinance,
subject to technical review. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
b. Development Agreement Deer Valley Subdivision (Cindy Donovan, City Planner)
Donovan reviewed the presented development agreement for the subdivision detailing the
specifics of the location. Donovan added that the property would add to East West access in the
city. Donovan also added the developers have opted for the option to purchase ground water
rights for the area in lieu of installing a pressurized irrigation system, per the City of Ammon
ordinance and standards. Council discussed the increase in multi-family dwellings in the City.
It was moved by Council Member Wessel and seconded by Council Member Tibbitts to the Deer Valley
Development Agreement, finding it is in compliance with the Comprehensive Plan and meets the City
ordinance, subject to technical review. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
c. Development Agreement South Commercial Park (Cindy Donovan, City Planner)
Donovan reviewed the conditions within the development agreement, noting that it would
include a fiber hut to provide fiber to all businesses in the area as well as plans to install a
pressurized irrigation system.
Recommendation
- Staff recommends: approval
Summary of Analysis
- Parcel will be built out as commercial buildings
- Parcel will be divided into 10 lots
Parcel Characteristics
- Current zoning: HC-1
- Total acreage: 13.878 acres
- Property was annexed in April 2006
- Preliminary Plat was approved on September 19, 2019
- Property is located north of 49 th South (Township Road), east of Rich Lane, south of Sunnyside
Road, and west of 35 th East (Ammon Road)
- Development will allow for connectivity from east to west
Ammon City Council Regular Meeting 05.07.2020 Page 10 of 14
Ammon City Council 05/19/2020Page 11 of 68
- Request being presented by Kurt Roland, Eagle Rock Engineering
- Approval of final plat showing access to Ammon Road
Planning and Zoning Commission
- Recommended approval subject to technical review
- There will be a sight-obscuring fence between commercial and residential properties
Development Agreement
- Requires improvements to Ammon Road along the frontage of the property
- Requires Right of Way and easement for installation of fiber hut
- Includes fiber access to all businesses
Compliance with Zoning Ordinance
- 10-21-1: GENERAL OBJECTIVES AND CHARACTERISTICS OF ZONE: The HC-1 Highway Commercial
Zone has been established as a district in which the primary use of the land is for retail stores and service
establishments to serve the traveling public. This zone is usually located at specific locations along arterial
roadways throughout the City, and is characterized by buildings set back from the right-of-way line and
having a wide variety of architectural forms and shapes.
Compliance with Subdivision Ordinance
- Title 10 Chapter 29 Section 8 this section details the requirements of a final plat
It was moved by Council Member Wheeler and seconded by Council President Slack to approve the
South Commercial Park Development Agreement, finding it is in compliance with the Comprehensive
Plan and meets the City ordinance, subject to technical review. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ
ĬǤ Ʃƚƌƌ ĭğƌƌ
d. Final Plat South Commercial Park (Cindy Donovan, City Planner
Donovan reviewed the final plat for the development including planned locations of easements
and fiber huts to service businesses. Council asked the location of the fiber hut be added to the
plat, the streets be named correctly.
st
It was moved by Council Member Wessel to table until May 21 with no second, the motion died on
the floor.
It was moved by Council Member Tibbitts and seconded by Council President Slack to approve the
South Commercial Park Final Plat, finding it is in compliance with the Comprehensive Plan and meets
the City ordinance, subject to amendments to include the location of the fiber hut, accurate street
names, and subject to technical review. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ͵
e. Ordinance 636 and Summary Parameters for Financing of 2012 Water Bond (Micah Austin, City
Administrator)
Administrator Austin reviewed the proposed ordinance to allow for refinancing of the original
bond adding that as rates have changed there is opportunity for better rates to finance the bond.
Austin reviewed possible scenarios available for payment and detailed his recommendation to
Council. Council discussed the potential savings and changes to interest rates and potential
savings for residents.
Recommendation
Staff recommends adoption of Ordinance 636 and Summary
Summary of Analysis
1. On January 5, 2012, the City of Ammon issued a water revenue bond (Series 2012) in the amount of
$14,287,000. The principal amount remaining is $8,802,634.
Ammon City Council Regular Meeting 05.07.2020 Page 11 of 14
Ammon City Council 05/19/2020Page 12 of 68
2. Interest rates are now at an all-time low. Refinancing the bond now will create significant interest
savings over the remaining years of the bond.
3. The cost of refinancing the bond is $80,000.
4. The following firms are involved in the refinancing of this bond:
a. Lewis Young Robertson & Burningham (David Robertson), Financial Advisor
b. Piper Sandler (Eric Heringer), Placement Agent
c. MSBT (Stephanie Bonney), Bond Counsel
5. Our current annual payment is $955,302.
6. After refinancing, our annual payment will be approximately $815,000. There are four scenarios for
refinancing that may influence this number.
7. The recommended scenario (referred to as Scenario 3 below) is to pay semi-annual principal and
interest payments and release $65,000 from the debt service reserve fund (DSRF) to pay down
principal.
8. Under Scenario 3, the gross savings from refinancing is $572,057. The net present value savings from
refinancing is $601,269
The table below summarizes the scenarios analyzed by staff:
Scenario 1 Scenario 2 Scenario 3 Scenario 4
Par Amount of
Bonds $8,908,000 $8,908,000 $8,017,000 $8,017,000
Net Present Value
Savings - $$ $427,654 $431,055 $601,269 $604,454
Net Present Value
Savings - %% 4.84% 4.88% 6.80% 6.84%
Gross Savings $472,459 $428,749 $572,057 $532,764
Semi-Annual
Savings $24,401 N/A $69,411 N/A
Annual Savings $48,802 $44,865 $138,811 $135,273
Old DSRF $955,302 $955,302 $955,302 $955,302
New DSRF $890,800 $890,800 $0 $0
9. Piper Sandler and LYRB are working on term sheet to go to potential investors if the Ordinance is
approved. If approved, this term sheet will go out next week. We expect bids back in 2-3 weeks at which
time everything will be locked, especially the interest rate.
Ammon City Council Regular Meeting 05.07.2020 Page 12 of 14
Ammon City Council 05/19/2020Page 13 of 68
10. Considering the above scenarios and recommendation from our consultant, staff recommends approval
of Ordinance 635 and Summary and to waive the three readings.
Financial Impact
- Refinancing the bond will cost $80,000 in administrative, legal, and underwriting fees. These will be paid
from the Water Fund, GL# 61-610-610- PROFESSIONAL SERVICES
- If refinanced, the total savings over the remaining life of the bond will be $572,057.
It was moved by Council Member Tibbitts and seconded by Council Member Wessel that the City
Council dispense with the rule requiring the reading of the ordinance on three different days and that
the three readings be waived aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
It was moved by Council Member Tibbitts and seconded by Council Member Wessel to adopt
Ordinance No. 636 and Summary as an ordinance of the City of Ammon on its third and final reading.
aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ
G. DISCUSSION ITEMS:
a. Staff Reports
i. Recreation Activities and Ammon Pool
Ken Knoch and Randal Miller reviewed profitability of the Ammon Pool and Splash Pad
considering the closedowns related to COVID-19. Knoch outlined the change of
profitability due to delayed openings and hiring difficulties. Miller discussed the proposed
options for opening the pool and how income might play out. Council discussed the
options for opening and costs associated with each option. Council recommended that
the Pool move forward with its normal opening timeline and make plans to allow for
proper distancing and safety.
ii. Ammon Days 2020
Administrator Austin reviewed plans for Ammon Days 2020, planning is moving forward
amongst department heads to plan for a safe and productive event. Department heads
are working through options for distancing and activities. Council discussed funding and
fee options to encourage participation.
b.
Coletti reviewed research into funding of new playground equipment in Woodland Hills.
Austin discussed options for funding and sought guidance from Council on timeframe for
budgeting.
H. EXECUTIVE SESSION:
a. Real Property Acquisition Idaho Code 74-206 (1) (c)
It was moved by Council Member Thompson and seconded by Council President Slack to enter into
Executive Session pursuant to Idaho Code 74-206(1)(c). aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ
ĭğƌƌ
Council entered into Executive Session at 10:38pm
Council exited Executive Session at 10:48pm
I. ACTION ITEM:
th
a. Purchase of Real Property at Intersection of Ammon Rd and 49 St to Expand Woodland Hills
Park
No Action was taken
Ammon City Council Regular Meeting 05.07.2020 Page 13 of 14
Ammon City Council 05/19/2020Page 14 of 68
J. ADJOURN The meeting was adjourned at 10:51pm
__________________________________
Sean Coletti, Mayor
_____________________________
Kristina Buchan, City Clerk
Ammon City Council Regular Meeting 05.07.2020 Page 14 of 14
Ammon City Council 05/19/2020Page 15 of 68
2135 SOUTH AMMON ROAD
CITY COUNCIL WORK SESSION
THURSDAY, MAY 14, 2020 4:30 P.M.
AGENDA
A. CALL TO ORDER: Mayor Sean Coletti at 4:30 p.m.
B. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit)
C. DISCUSSION ITEMS:
1. Northwest Natural Discussion
2. Area of Impact Agreement
3. Automated Accounts Payable Procedure
D. EXECUTIVE SESSION:
1. Real Property Acquisition Idaho Code 74-206 (1) (c)
E. ADJOURN
MINUTES
City Officials Present: Mayor Sean Coletti (via Zoom)
Council President Russell Slack (via Zoom)
Councilmember Rex Thompson (in person)
Councilmember Scott Wessel (in person)
Councilmember Craig Tibbitts (in person)
Councilmember Josh Wheeler (via Zoom)
City Attorney Scott Hall (in person)
City Administrator Micah Austin (in person)
Finance Director Jennifer Belfield (via Zoom)
City Planner Cindy Donovan (via Zoom)
Technology Director Bruce Patterson (via Zoom)
City Engineer Tracy Bono (via Zoom)
City Clerk Kristina Buchan (in person)
City Officials Absent: Councilmember Byron Wiscombe
A. CALL TO ORDER: Mayor Coletti opened the meeting at 4:30 p.m. at the Ammon City Hall building located at
2135 South Ammon Road, the meeting was conducted via a Zoom conference call.
B. PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit)
There was no public comment
C. DISCUSSION ITEMS:
1. Northwest Natural Discussion
Steve Green and Scott Bruce from Northwest Natural presented to Council regarding potential
opportunities for transitioning EIRWWA to Northwest Natural. Green presented a brief PowerPoint
Ammon City Council Work Session 05.14.2020 Page 1 of 2
Ammon City Council 05/19/2020Page 16 of 68
for Council and answered questions to facilitate the discussion. Scott Bruce updated Council on the
connection with Falls Water in eastern Idaho and its relationship with Northwest Natural. Green
reviewed what changes would take place should EIRWWA choose to move forward with the proposal
and assured Council that all existing employees would maintain their position as a transition took
place. Green detailed a potential timeline for continued discussion and next steps as well as possible
technological improvements that could be made to the system. Council will continue to discuss the
potential opportunities presented by Northwest Natural.
2. Area of Impact Agreement
City Administrator Micah Austin reviewed the potential to update the current Area of Impact
Agreement with Bonneville County. Austin explained that agreements must be exactly similar when
adopted and that the timing was right to move forward with an update to the agreement. Austin
reviewed the proposed changes to the agreement to include plans for annexing contiguous
subdivisions into City limits. Council discussed the implications of the updates and the impact it
would have on current and future residents. Austin will move forward with the agreement process.
3. Automated Accounts Payable Procedure
Technology Director Bruce Patterson discussed software available to the City to automate internal
processes. The first area to be impacted would be the accounts payable system, a submission would
be made and then moved through the approval process, ultimately ending up at Council for approval.
Council and Patterson discussed how the process would be implemented and records maintained.
Patterson will move forward with the contracting process.
4. Other
Austin updated Council on the renewal of contract with Bonneville County Sherriff Office. The
contract includes a slight increase in cost but Austin noted that the County was covering much of the
increased costs associated with dispatch numbers.
Austin updated Council on the installation of meters only 22% of the City remains non-metered of
which many are on smaller lots.
Austin reported on the installation of power lines in the City by Rocky Mountain Power. RMP is
working to upgrade poles in the area to upgrade existing infrastructure and provide better access to
future developments.
Austin also updated Council on projects in the works during the summer and the potential for a
$300,000 DOE grant to be used for water conservation initiatives.
D. EXECUTIVE SESSION:
1. Real Property Acquisition Idaho Code 74-206 (1) (c)
It was moved by Council Member Wessel and seconded by Council Member Thompson to enter into executive
session pursuant to Idaho Code 74-206 (1) (c) aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ͵
Council entered into executive session at 7:23
Council exited executive session at 7:32
E. ADJOURN The meeting was adjourned at 7:33
__________________________________
Sean Coletti, Mayor
_____________________________
Kristina Buchan, City Clerk
Ammon City Council Work Session 05.14.2020 Page 2 of 2
Ammon City Council 05/19/2020Page 17 of 68
Ammon City Council 05/19/2020Page 18 of 68
PROCEDURES
PROCEDURE TO ADOPT AN ORDINANCE
Ordinance No. 637 introduced and read by title.
AN ORDINANCE AUTHORIZING THE ISSUANCE AND CONFIRMING THE
SALE OF THE FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3 BOND,
SERIES 2020, IN THE PRINCIPAL AMOUNT OF $783,195.93; APPROVING THE SALE
OF THE BOND TO WASHINGTON FEDERAL BANK , NATIONAL ASSOCIATION
DBA WAFD BANK, AS PURCHASER; PROVIDING FOR THE USE OF PROCEEDS
THEREOF; CREATING THE BOND FUND AND INTEREST FUND FOR PAYMENT
OF THE BOND; CREATING AND ESTABLISHING A RESERVE FUND TO SECURE
PAYMENT OF THE BOND; PROVIDING FOR EXECUTION, AUTHENTICATION,
REGISTRATION AND TRANSFER OF THE BOND; PROVIDING FOR A SYSTEM OF
REGISTRATION THEREFOR; PLEDGING FIBER OPTIC LOCAL IMPROVEMENT
DISTRICT NO. 3 FOR AMMON, IDAHO ASSESSMENTS FOR PAYMENT OF THE
BOND; PROVIDING FOR CERTAIN FEDERAL TAX COVENANTS AND SPECIAL
DESIGNATIONS WITH RESPECT TO THE BOND; PRESCRIBING RELATED
DETAILS AND PROVISIONS CONCERNING THE FOREGOING; REPEALING
CONFLICTING PROCEEDINGS; PROVIDING IRREPEALABILITY; PROVIDING
SEVERABILITY; AND PROVIDING FOR PUBLICATION AND EFFECTIVE DATE.
Councilperson moves:
rule requiring the reading of the ordinance on
three different days and that the three readings
Councilperson seconds:
Roll call vote on motion.
Ordinance again read by title and read in full.
TITLE AND FULL
Councilperson moves:
option of ordinance No. 637
and Summary as an ordinance of the City of
Councilperson seconds:
Roll call vote.
Ammon City Council 05/19/2020Page 19 of 68
CITY OF AMMON
BONNEVILLE COUNTY, IDAHO
ORDINANCE NO. 637
FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3
AN ORDINANCE AUTHORIZING THE ISSUANCE AND CONFIRMING
THE SALE OF THE FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO.
3 BOND, SERIES 2020, IN THE PRINCIPAL AMOUNT OF $783,195.93;
APPROVING THE SALE OF THE BOND TO WASHINGTON FEDERAL
BANK , NATIONAL ASSOCIATION DBA WAFD BANK, AS PURCHASER;
PROVIDING FOR THE USE OF PROCEEDS THEREOF; CREATING THE
BOND FUND AND INTEREST FUND FOR PAYMENT OF THE BOND;
CREATING AND ESTABLISHING A RESERVE FUND TO SECURE
PAYMENT OF THE BOND; PROVIDING FOR EXECUTION,
AUTHENTICATION, REGISTRATION AND TRANSFER OF THE BOND;
PROVIDING FOR A SYSTEM OF REGISTRATION THEREFOR; PLEDGING
FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3 FOR AMMON,
IDAHO ASSESSMENTS FOR PAYMENT OF THE BOND; PROVIDING FOR
CERTAIN FEDERAL TAX COVENANTS AND SPECIAL DESIGNATIONS
WITH RESPECT TO THE BOND; PRESCRIBING RELATED DETAILS AND
PROVISIONS CONCERNING THE FOREGOING; REPEALING
CONFLICTING PROCEEDINGS; PROVIDING IRREPEALABILITY;
PROVIDING SEVERABILITY; AND PROVIDING FOR PUBLICATION AND
EFFECTIVE DATE.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF AMMON,
BONNEVILLE COUNTY, IDAHO, AS FOLLOWS:
WHEREAS, the City of Ammon, Bonneville County, Idaho (the City), is a municipal
corporation operating and existing under and pursuant to the provisions of the Constitution and
laws of the State of Idaho, and as such is authorized and empowered to create local improvement
districts and to construct improvements pursuant to Idaho Code, Title 50, Chapter 17 (the LID
Code);
WHEREAS, the City Council of the City (the City Council), by Ordinance No. 616,
adopted on January 17, 2019, duly created Fiber Optic Local Improvement District No. 3 for
Ammon, Idaho (Fiber LID No. 3) for the purpose of financing the costs and expenses of
design, acquisition, construction and installation of certain fiber optic system improvements and
related appurtenances (collectively, the Improvements) within Fiber LID No. 3 to benefit
those certain properties within the boundaries of Fiber LID No. 3 whose owners have
ORDINANCE NO. 637, P. 1
47773.0005.12727353.8
Ammon City Council 05/19/2020Page 20 of 68
affirmatively elected to be benefited by the Improvements and to incur the related assessment
necessary to pay for the same;
WHEREAS, on or around January 24, 2019, the City Council, by adoption of Ordinance
No. 618, authorized the City to provide interim financing to Fiber LID No. 3 by issuance of its
Fiber Optic Local Improvement District No. 3 Warrant, 2019 (Federally Taxable) in an amount
not to exceed $1,500,000 at an interest rate of 2.00% for the purpose of paying certain costs and
expenses of the Improvements incurred in advance of issuance of the Bond (as defined herein)
(the Prior Loan);
WHEREAS, pursuant to the LID Code, by passage and approval by the City Council of
Ordinance No. 634 on April 2, 2020, the City Council has levied valid special assessments on the
real property in Fiber LID No. 3 as described in the Assessment Roll for Fiber LID No. 3
attached thereto to defray the cost and expenses of the Improvements (Ordinance No. 616 and
Ordinance No. 634, are hereinafter collectively referred to as the Prior Ordinances);
WHEREAS, the properties assessed within Fiber LID No. 3 pursuant to the Prior
Ordinances shall be benefitted by the Improvements within Fiber LID No. 3;
WHEREAS, the time for prepayment of assessments in Fiber LID No. 3 has expired;
WHEREAS, the total estimated cost and expenses of the Improvements, together with the
amount of said estimated total cost and expenses to be paid from the proceeds of the levy of the
special assessments in Fiber LID No. 3, the amount of special assessments which have been paid
in full, and the amount of assessments yet to be paid are as follows:
TOTAL COST AND AMOUNT OF AMOUNT OF
EXPENSES OF TOTAL AMOUNT ASSESSMENTS ASSESSMENTS
IMPROVEMENTS OF ASSESSMENTS PAID IN FULL UNPAID
$955,364.28 $955,364.28 $172,168.35 $783,195.93
WHEREAS, under the provisions of the LID Code, the City is authorized to pledge the
unpaid portion of the aforementioned special assessments in Fiber LID No. 3 for the payment of
the Bonds hereinafter authorized, and, after thirty (30) days from the levy of the assessments, to
provide for the payment of unpaid special assessments in installments;
WHEREAS, the City has negotiated for the sale of the Bond to Washington Federal
Bank, National Association dba WaFd Bank, Seattle, Washington (the Purchaser);
WHEREAS, the City Council desires to authorize the issuance of the Bond to refinance
the Improvements by payment of the Prior Loan, and to pay costs of issuance of the Bond, and
desires to approve the sale of the Bond to the Purchaser, with repayment thereof to be paid from
Fiber LID No. 3 assessments;
ORDINANCE NO. 637, P. 2
47773.0005.12727353.8
Ammon City Council 05/19/2020Page 21 of 68
WHEREAS, pursuant to Section 57-215, Idaho Code, the Notice of Negotiated Private
Bond Sale with respect to the issuance and sale of the Bond pursuant to this Bond Ordinance was
published on May 13, 2020, in T HE P OST R EGISTER, a newspaper of general distribution in the
City; and
WHEREAS, all references to the duties of the Clerk and Treasurer in the LID Code shall
be carried out by the Citys Clerk and Treasurer.
NOW, THEREFORE, BE IT FURTHER ORDAINED BY THE CITY COUNCIL OF
THE CITY OF AMMON, BONNEVILLE COUNTY, IDAHO, AS FOLLOWS:
Section 1. Definitions. As used in this Bond Ordinance, in addition to the definitions
included in the WHEREAS clauses hereto and unless the context shall otherwise require, the
following terms shall have the following meanings:
Annual Debt Service means the amount required in a Fiscal Year for the payment of the
principal of and interest on the Bond.
Bond or Bonds mean the $783,195.93 Fiber Optic Local Improvement District No. 3
Bond, Series 2020, of the City authorized by this Bond Ordinance, and issued and sold to the
Purchaser, the proceeds of which shall be used to refinance Improvements by payment of the
Prior Loan, and to pay costs of the issuance of the Bond.
Bond Counsel means Hawley Troxell Ennis & Hawley LLP, or another attorney at law
or a firm of attorneys of nationally recognized standing in matters pertaining to the tax-exempt
status of interest on obligations issued by states and their political subdivisions, duly admitted to
the practice of law before the highest court of any state of the United States.
Bond Fund shall mean the Bond Fund established in Section 8 of this Bond Ordinance
for the purpose of paying and securing the Bond.
Bondholder or Holder means the Registered Owner of any Bond as shown in the Bond
Register of the City kept by the Bond Registrar for such purpose.
Bond Ordinance means this Ordinance No. 637, adopted by the City Council on May
21, 2020, authorizing the issuance and confirming the sale of the Bond.
Bond Register means the registration books showing the name and address of each
Registered Owner of the Bond, maintained pursuant to Section 149(a) of the Code.
Bond Registrar/Paying Agent means each Person appointed by the City as bond
registrar and agent for the purposes of registering and authenticating the Bond, maintaining the
Bond Register, effecting transfer of ownership of the Bond and paying interest on and principal
of the Bond. The initial Bond Registrar/Paying Agent shall be the City Treasurer.
ORDINANCE NO. 637, P. 3
47773.0005.12727353.8
Ammon City Council 05/19/2020Page 22 of 68
City means the City of Ammon, Bonneville County, Idaho.
City Clerk or Clerk means the duly appointed Clerk of the City, or his/her successor in
function, if any, who is the custodian of the records of the proceedings of the City.
City Treasurer or Treasurer means the duly appointed Treasurer of the City, or his/her
successor in function, if any.
Code means the Internal Revenue Code of 1986, as amended, together with
corresponding and applicable regulations and revenue rulings issued with respect thereto by the
Treasury Department or the Internal Revenue Service of the United States.
Date of Issue means the date of issuance and delivery of the Bond to the Purchaser,
anticipated to be June 4, 2020.
Fiscal Year means that period adopted by the City as its annual accounting period,
October 1 through September 30.
Interest Fund shall mean the Interest Fund established in Section 8 of this Bond
Ordinance, and maintained for the purpose of paying interest on the Bond.
Mayor means the Mayor of the City, or any presiding officer or titular head of the City,
or his/her successor in functions, if any.
Maximum Annual Debt Service means, at the time of calculation, the maximum
amount of Annual Debt Service that will be payable in the current Fiscal Year or any future
Fiscal Year on the Bond.
Payment Date(s) shall mean interest and principal payment dates on each anniversary of
the Date of Issue, commencing in 2021, until payment of the Bond upon maturity or prior
redemption thereof. It is anticipated that the Payment Date(s) will be June 4 of each year,
commencing June 4, 2021.
Person means natural persons, firms, partnerships, associations, corporations, trusts,
public bodies and other entities.
Prepayment Premium means the additional interest to be paid on the principal amount
of prepaid assessments in full (in addition to the accrued interest due thereon when paid) at the
rate of interest on the Bond from the date of the last installment of assessments due through the
Payment Date which is one (1) year after the next Payment Date on the Bond from the date of
prepayment, as set forth in Section 50-1715, Idaho Code, as amended.
Registered Owner or Registered Owners mean the person or persons whose names and
addresses shall appear on the Bond Register maintained by the Bond Registrar in accordance
with the terms of this Bond Ordinance, as the owner or owners of the Bond.
ORDINANCE NO. 637, P. 4
47773.0005.12727353.8
Ammon City Council 05/19/2020Page 23 of 68
Reserve Fund shall mean the Reserve Fund established in Section 9 of this Bond
Ordinance pursuant to the LID Code for the purpose of securing the payment of principal and
interest on the Bond.
Reserve Fund Requirement means the least of: (i) ten percent (10%) of the outstanding
principal amount of the Bond; (ii) an amount equal to the Maximum Annual Debt Service; or
(iii) 125% of average annual debt service on the Bond, calculated as of the date of issuance of
the Bond.
Tax Certificate means any agreement or certificate executed on behalf of Fiber LID No.
3 in order to establish and assure the tax-exempt status of interest received on the Bond.
The terms hereby, hereof, hereto, herein, hereunder, and any similar terms as
used in this Bond Ordinance refer to this Bond Ordinance.
Section 2. Authorization and Sale of the Bond; Use of Proceeds. Pursuant to the LID
Code, for the purpose of financing or refinancing all or a portion of the costs of the
Improvements in Fiber LID No. 3, there shall be issued the City of Ammon, Bonneville County,
Idaho, Fiber Optic Local Improvement District No. 3 Bond, Series 2020, in the aggregate
principal amount of $783,195.93, which Bond shall be dated the Date of Issue. The Bond herein
authorized, when executed, shall be issued, sold and delivered to the Purchaser pursuant to the
terms of this Bond Ordinance.
The proceeds of the Bond will be used to refinance the costs of the Improvements by
payment of the Prior Loan, and to pay costs of issuance of the Bond. Any proceeds not required
for the foregoing purposes shall be transferred to the Bond Fund for payment of the Bond.
Section 3. Bond Details. The Bond shall initially be issued as a single fully registered
term bond maturing fifteen years from the Date of Issue, numbered R-1, in substantially the
form attached as Exhibit A hereto.
Section 4. Installments; Interest Rate. The Bond shall bear interest on the unpaid
principal balance at the rate of 2.88% per annum, computed on the basis of the actual number of
days elapsed over a year of 360 days, and interest shall accrue from the Date of Issue. Amortized
installments of principal and interest thereon shall be payable on the Payment Dates until
maturity, or prior redemption thereof, pursuant to the amortization schedule attached to Exhibit
A, the form of bond.
Section 5. Sale of Bond. The Bond authorized to be issued herein is hereby sold to the
Purchaser at an aggregate purchase price equal to $783,195.93, representing the par amount of
the Bond. The City, on behalf of LID No. 3, shall pay to Purchaser the amount of $5,000,
representing Purchasers legal fees.
Section 6. Paying Agent and Bond Registrar; Payment of Bond. The City Treasurer is
hereby appointed the Paying Agent and Bond Registrar for the Bond. The City may in its
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discretion remove any Paying Agent and any Bond Registrar, and any successor thereto, and
appoint a successor or successors thereto.
The principal of and interest on the Bond shall be payable in any coin or currency of the
United States of America which, at the respective dates of payment thereof, is legal tender for the
payment of public and private debts. Principal of and interest on the Bond shall be payable when
due to the Registered Owner thereof. Payment of principal and/or interest on the Bond shall be
made by check or draft mailed to the Person who is the Registered Owner of the Bond of record
on the 15th day preceding each Payment Date, at the address of such Registered Owner as it
appears on the Bond Register kept by the Bond Registrar or at such other address as is furnished
to the Bond Registrar in writing by such Registered Owner on or prior to the Record Date.
Section 7. Prepayment of Assessments; Redemption. In accordance with Section 50-
1715, Idaho Code, as amended, property owners may prepay their assessments in full at any
time. Prepaid installments of assessments made after May 4, 2020, which date is the next
business day following thirty (30) days after adoption of City Ordinance No. 634, must include
the full principal amount of the unpaid assessments plus any applicable penalties and all accrued
interest through the date of payment of the same, plus the Prepayment Premium. Based on the
amounts of principal and interest received from property owners upon prepayment of
assessments, principal installments of the Bond, in the amounts determined by the Bond
Registrar, are, upon fifteen (15) days notice to Purchaser, subject to redemption prior to maturity
in whole or in part, on the applicable Payment Date, in the amounts of principal, Prepayment
Premium, if any, and accrued interest thereon, to the extent there is sufficient money in the Bond
Fund and Interest Fund to pay such amounts. Except as to property owner prepayments as
provided above, the Bond shall be noncallable by the City.
Pursuant to Section 50-1724, Idaho Code, as amended, principal installment amounts of
the Bond, or portions thereof, to be redeemed shall be selected by the Bond Registrar by lot and
shall, in the event less than all of the outstanding Bond is to be redeemed, insofar as can be done
taking into consideration the unpaid principal installment amounts of the outstanding Bond,
represent an equal amount of principal from each principal installment outstanding at the time of
the redemption. When so called for redemption, such portion of the Bond shall cease to accrue
interest on the specified redemption date, provided funds for redemption are on deposit at the
place of payment at that time, and such Bond shall not be deemed to be outstanding as of such
redemption date.
Section 8. Creation of Bond Fund and Interest Fund; Pledge of Funds; Transfer of Funds
to Paying Agent. There are hereby created the Bond Fund and Interest Fund for Fiber LID No. 3
to be held by the City, as more fully described hereinafter. For the purposes of securing the
payment of the Bond, all installment payments of assessments levied within Fiber LID No. 3,
including all principal of and interest on such assessments shall be collected by the City
Treasurer and deposited in the Bond Fund and Interest Fund, as applicable. All monies in the
Bond Fund and Interest Fund are hereby irrevocably pledged for the payment of principal and
interest on the Bond. Money in the Bond Fund and Interest Fund shall be kept separate and apart
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from the bond funds of other local improvement districts of the City, and from any other funds of
the City, and shall from time to time, as received, be deposited in such bank or banks as are
designated as depositories of public monies for the funds of the City under the depository laws of
the State of Idaho for deposit or invested as provided by law; provided, however, the City shall,
no less often than quarear) and at least thirty (30) days prior to
each Payment Date, deposit all moneys received by the City from installment payments of
assessments within Fiber LID No. 3 to a discrete account of the City at Purchaser, which account
shall be separate and apart from any other funds, including the Reserve Fund. Interest received
on such funds so deposited or invested shall be placed to the credit of the fund from which it is
earned.
Section 9. Creation of Reserve Fund; Deposits to and Application of Reserve Fund. As
authorized pursuant to Section 50-1771 of the LID Code, to secure payment of the Bond, there is
hereby created the Reserve Fund for Fiber LID No. 3 to be held by the City in a discrete account
at the Purchaser separate and apart from any other funds. Any money held in the Reserve Fund
shall be held in trust for the payment, when due, of the Debt Service on the Bond, and shall be
used and applied only as hereinafter provided in this Section 9. All investments, if any, in the
Reserve Fund shall be valued at cost if maturity is less than one (1) year and shall be valued at
the lower of cost or market value marked to market semiannually if maturity is greater than one
(1) year. No investments in the Reserve Fund shall have maturities of more than two (2) years.
(a) The City initially shall deposit to the credit of the Reserve Fund from legally
available money of the City the amount of $65,037.53, representing the initial Reserve Fund
Requirement.
(b) On, or before, if such day is not a Business Day, the 5th day preceding each
Payment Date, the City shall, transfer from the Reserve Fund to the Bond Fund and the Interest
Fund the difference between the amount in the Bond Fund and the Interest Fund on such date
and the amount necessary to pay the principal of and interest, respectively, on the Bond on the
succeeding Payment Date.
(c) If, after a Reserve Fund withdrawal, the Reserve Fund is less than the Reserve
Fund Requirement, the City shall reimburse the Reserve Fund, to the extent moneys are realized,
from either: (i) the proceeds from the collection and foreclosure of delinquent assessments,
which are conducted in the manner described in this Bond Ordinance and in the LID Code; or (ii)
from all future installment payments on the assessments, provided, however, only to the extent
that such portion of such installment payments is not required for the timely payment of Debt
Service.
(d) Any investment profits realized from the investment of moneys in the Reserve
Fund shall remain in and be part of the Reserve Fund; provided, however, if moneys in the
Reserve Fund are in excess of the Reserve Fund Requirement, such excess amount shall be
transferred to the Interest Fund and applied from time to time pursuant to Section 8.
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(e) Whenever the Reserve Fund is insufficient to meet claims for payment of
principal and interest against the Reserve Fund, the City may appropriate funds from such other
legally available sources as may be determined by the City Council at that time.
(f) To the extent moneys remain in the Reserve Fund at such time as the Bond is paid
in full, said moneys shall be returned to the City and the Reserve Fund shall thereafter be closed.
Section 10. Delinquent Assessments; Distribution of Collections. If any assessment
installment is not paid within twenty (20) days from the date it is due, the same shall become
delinquent and the Treasurer shall add a penalty of two per cent (2%) thereto. The Treasurer
shall thereafter proceed to collect the delinquency in any manner now or hereafter provided by
the LID Code including, the issuance of delinquent certificates. Said delinquent certificate(s)
shall draw interest at the rate of ten per cent (10%) per annum from the date of delinquency until
the end of the month in which it is paid (Default Interest). Amounts received for penalties
and Default Interest shall first be applied to the reasonable expenses of the Treasurer to collect
such delinquency, to the extent permitted by law.
Section 11. Execution and Authentication of the Bond. The Bond shall be executed on
behalf of the City by the Mayor, countersigned by the City Treasurer and attested to by the
Clerk. The certificate of authentication attached to the Bond shall be signed by the Bond
Registrar. The officials and each of them are hereby authorized and instructed to execute the
Bond accordingly.
Upon authentication, the Bond shall be valid or obligatory for any purpose or entitled to
the benefits of this Bond Ordinance, and such certificate of the Bond Registrar shall be
conclusive evidence that the Bond so authenticated has been duly authenticated and delivered
under, and is entitled to the benefits of, this Bond Ordinance and that the Holders thereof are
entitled to the benefits of this Bond Ordinance. The certificate of authentication of the Bond
Registrar on the Bond shall be deemed to have been executed by it if, upon execution, the date of
registration and authentication of the Bond is inserted in the place provided therefor on the
certificate of authentication.
Section 12. Registration and Transfer of the Bond. The City Treasurer shall act as Bond
Registrar with respect to the Bond and shall keep, or cause to be kept the Bond Register to record
the registration and transfer of the Bond, which shall be open to inspection by the City. The
Bond shall be transferable by the Purchaser, in whole only, to (i) an affiliate of Purchaser; (ii) a
trust or other custodial arrangement established by Purchaser or one of its affiliates, the owners
of any beneficial interest in which are limited to s
Rule 144A under the Securities Act of 1933 QIBsor o
term is defined in Section 3(a)(2) of the Securities Act of 1933.
The Mayor, Clerk and Treasurer of the City are authorized to execute, countersign and
seal from time to time, in the manner described in Section 11 above, Bond(s) to be issued and
delivered for the purpose of effecting transfers and exchanges of the Bond. The execution,
countersigning and sealing by the City and delivery to the Bond Registrar of any exchange bond
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shall constitute full and due authorization of such Bond containing such payee, principal amount,
maturity and interest rate as the Bond Registrar shall cause to be inserted, and the Bond Registrar
shall thereby be authorized to authenticate and deliver such Bonds.
Section 13. Bond Registration Books. This Bond Ordinance shall constitute a system of
registration within the meaning and for all purposes of the Registered Public Obligations Act of
Idaho, chapter 9 of Title 57, Idaho Code. The Bond Registrar shall keep or cause to be kept at its
principal corporate trust office sufficient books for the registration and transfer of the Bond,
which shall at all times be open to inspection by the City; and, upon presentation for such
purpose, the Bond Registrar, under such reasonable regulations as it may prescribe, shall register
or transfer or cause to be registered or transferred on said books the Bond as herein provided.
Section 14. Assessment Lien. The assessments and the interest thereon have been and
shall continue to constitute, and are hereby declared to be, a lien in the amounts assessed against
each lot or tract of land within Fiber LID No. 3 hereinbefore specified, which lien shall be
superior to the lien of any mortgage or other encumbrance, whether prior in time or not, and shall
constitute such lien until paid. The liens are effective as to the lots or tracts in the City as of
April 16, 2020, the date of recordation of notice of adoption of the Citys Ordinance No. 634.
Section 15. Rights of Bond Owner. Pursuant to Section 50-1726, Idaho Code, as
amended, when issued, the Bond shall transfer to the Registered Owner, or designee thereof, all
the rights and interest of the City in and with respect to every assessment against the property
within Fiber LID No. 3 and the liens thereby created against the property of each owner assessed
as shall not have availed himself of the provisions of law in regard to the redemption of his
property from the lien or such assessment, and shall authorize the Registered Owner or designee
thereof to receive and have collected the assessment or assessments to pay the Bond through any
of the methods provided by law for the collection of assessments for local improvements.
Section 16. Reassessment. Pursuant to Section 50-1720, Idaho Code, as amended, the
City hereby covenants with the Purchaser and with all subsequent owners of the Bond that if ever
the assessments within Fiber LID No. 3 have failed to be valid in whole or in part for want of
form or sufficiency, informality, irregularity or nonconformance with the laws governing such
assessments, the City Council shall, to the extent permitted by law, reassess such assessments
and enforce their collection in accordance with the provisions of the law existing at the time the
reassessment is made. The City further covenants that when for any cause, mistake or
inadvertence the amounts heretofore assessed shall not be sufficient to pay the cost and expenses
of the Improvements made and enjoyed by owners of property in Fiber LID No. 3, the City
Council shall make reassessments on all property in Fiber LID No. 3 sufficient to pay for such
Improvements. Such reassessment to be made and collected in accordance with the provisions of
the law existing at the time of its levy.
Section 17. Reissuance of Bonds. The City additionally covenants with the Purchaser and
the subsequent owners of the Bond, pursuant to Section 50-1725, Idaho Code, as amended, that
if the Bond shall ever be declared invalid or void by order or decree of court, the City shall, to
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the extent permitted by law, reissue the Bonds at the same rate of interest and in such amount as
will cover the principal and interest due on the Bonds, and that the Bonds upon which there has
been default or which have been declared invalid or void shall thereupon be surrendered and
cancelled. The lien created by the levy of assessments heretofore made for Fiber LID No. 3 shall
remain in full force and effect.
Section 18. Tax Covenants and Special Designations.
(a) The City covenants with the Registered Owner(s) of the Bond that,
notwithstanding any other provision of this Bond Ordinance or any other instrument, it will take
no action which would adversely affect the tax exempt status of Bond issued hereunder under
Sections 103 or 148 of the Code pertaining to the exclusion of interest on the Bond from gross
income for federal income tax purposes. The foregoing covenant shall extend throughout the
term of the Bond. The City will execute a Tax Certificate dated the date of issuance and closing
of the Bond hereunder with respect to such federal tax matters.
(b) The City further covenants that it will not take any action or permit any action to
be taken that would cause the Bond to constitute a private activity bond under Section 141 of
the Code.
(c) The City hereby designates the Bond as a Qualified Tax-Exempt Obligation
within the meaning and for the purposes of Section 265(b)(3) of the Code, and the City does not
reasonably anticipate that it will designate more than $10,000,000, including the Bond, as
Qualified Tax-Exempt Obligations during the calendar year in which the Bond is issued
Section 19. Additional Bonds. As long as the Bond issued hereunder is outstanding, the
City hereby covenants and agrees that it will not issue any additional bonds or other indebtedness
on behalf of Fiber LID No. 3 without the written consent of the Registered Owner.
Section 20. Reporting Requirements. Financial information for Fiber LID No. 3 shall be
provided to the Purchaser on an annual basis. Said requirement may be satisfied by providing the
complete audited financial statements of the City within 270 days after the close of each Fiscal
Year.
Section 21. General Authorization. The officials of the City are hereby authorized to do
and perform from time to time any and all acts and things consistent with this Bond Ordinance
necessary or appropriate to carry the same into effect.
Section 22. Conflicting Actions Repealed. All ordinances, resolutions and parts thereof
in conflict with the provisions of this Bond Ordinance, to the extent of such conflict, are hereby
repealed.
Section 23. Ordinance Irrepealable. After the Bond is issued, this Bond Ordinance shall
be and remain irrepealable until the Bond and the interest thereon shall be fully paid and
discharged, as herein provided.
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Section 24. Severability. If any section, paragraph, clause or provision of this Bond
Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph, clause or provision shall in no manner affect any
remaining provision of this Bond Ordinance.
Section 25. Ordinance to Constitute Contract. In consideration of the purchase and
acceptance of any Bonds authorized to be issued hereunder by the Purchaser, this Bond
Ordinance shall be deemed to be and shall constitute a contract between the City and the
Purchaser, and the covenants and agreements set forth in this Bond Ordinance to be performed
on behalf of the City shall be for the equal benefit, protection and security of the Purchaser of the
Bonds.
Section 26. Publication and Effective Date. After its passage and adoption, a summary of
this Bond Ordinance, substantially in the form attached hereto as Exhibit B, shall be published
once in the official newspaper of the City, under the provisions of the Idaho Code, and upon such
publication shall be in full force and effect. Upon personal request, the City Clerk shall promptly
provide the full text of the Bond Ordinance to any citizen.
st
PASSED at a regular meeting of the City Council of the City held on the 21 day of
May, 2020.
CITY OF AMMON, BONNEVILLE
COUNTY, IDAHO
Sean Coletti, Mayor
ATTEST:
Kristina Buchan, City Clerk
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I, the undersigned, City Clerk of the City of Ammon, Bonneville County, Idaho, hereby
certify that the foregoing Ordinance No. 637 is a full, true, and correct copy of an Ordinance
duly adopted at a regular meeting of the City Council of the City of Ammon (the City
Council); the meeting was duly and regularly held at the regular meeting place of the City
Council on May 21, 2020; all members of the City Council had due notice thereof; a majority of
the members were present; and that at said meeting said Ordinance was adopted by the following
vote:
Council members voting Yes:
Council members voting No:
Council members abstaining:
Council members absent:
I further certify that I have carefully compared the same with the original Ordinance No.
637 on file and of record in my office; that said Ordinance is a full, true, and correct copy of the
original Ordinance adopted at said meeting; and that said Ordinance has not been amended,
modified, or rescinded since the date of its adoption, and is now in full force and effect.
I have set my hand on May 21, 2020.
CITY OF AMMON,
BONNEVILLE COUNTY, IDAHO
Kristina Buchan, City Clerk
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EXHIBIT A
FORM OF BOND
In compliance with Section 50-1723, Idaho Code:
LIABILITY OF MUNICIPALITY. -- The holder of any bond, issued under the authority of this code, shall have no
claim therefor against the municipality by which the same is issued, except to the extent of the funds created and
received by assessments against the property within any local improvement district as herein provided and to the extent
of the local improvement guarantee fund which may be established by any such municipality under the provisions of
this code, but the municipality shall be held responsible for the lawful levy of all special taxes or assessments herein
provided and for the faithful accounting of settlements and payments of the special taxes and assessments levied for
the payment of the bonds as herein provided. The owners and holders of such bonds shall be entitled to complete
enforcement of all assessments made for the payment for such bonds. A copy of this section shall be plainly written,
printed or engraved on the face of each bond so issued.
UNITED STATES OF AMERICA
No. R-1 $783,195.93
CITY OF AMMON, BONNEVILLE COUNTY, IDAHO
FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3 BOND, SERIES 2020
INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP NO:
2.88% 06/04/2035 06/04/2020 N/A
REGISTERED OWNER: WASHINGTON FEDERAL BANK, NATIONAL
ASSOCIATION DBA WAFD BANK
PRINCIPAL AMOUNT: SEVEN HUNDRED EIGHTY-THREE THOUSAND ONE
HUNDRED NINETY-FIVE AND 93/100 DOLLARS
KNOW ALL MEN BY THESE PRESENTS that the City of Ammon, Bonneville
County, State of Idaho (the City), acknowledges itself indebted and for value received hereby
promises to pay, but only from the sources and as hereinafter provided, to the Registered Owner
identified above, or registered assigns, the above Principal Amount plus interest accruing on the
outstanding principal at the above Interest Rate, computed on the basis of the actual number of
days elapsed over a year of 360 days. Annual payments of principal and accrued interest hereon
are payable pursuant to Schedule 1 attached hereto, based on the outstanding principal amortized
over fifteen (15) years, with interest accruing on the outstanding principal amount from the date
hereof, and with the final payment of the outstanding principal and accrued interest thereon due
and payable on the Maturity Date above, subject to prior redemption as hereinafter provided.
EXHIBIT A TO ORDINANCE NO. 637, P. 1
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The City Treasurer is the initial bond registrar and paying agent of the City with respect
to this Bond. Said bond registrar and paying agent, together with any successor bond registrar or
paying agent, respectively, is referred to herein as the Bond Registrar and the Paying Agent.
Principal of and Prepayment Premium, as defined below, if any, on this Bond shall be
payable to the Registered Owner on Payment Date(s), as hereinafter defined, in any coin or
currency of the United States of America which at the time of payment is legal tender for the
payment of public and private debts; and payment of interest hereon shall be made to the
Registered Owner hereof and shall be paid on the Payment Date by check or draft mailed to the
person who is the Registered Owner of record on the 15th day preceding each Payment Date, and
if not a business day of the Paying Agent, the next preceding day that is a business day for the
Paying Agent, at the address of such Registered Owner as it appears on the registration books
kept by the Bond Registrar or at such other address as is furnished in writing by such Registered
Owner to the Bond Registrar, as provided in the hereinafter defined Bond Ordinance.
shall mean the date of payment of the principal installments and interest reflected on the
attached Schedule 1.
This Bond is issued in conformity with and after full compliance with the Constitution of
the State of Idaho and pursuant to the provisions of the Local Improvement District Code,
chapter 17, Title 50, Idaho Code, as amended, and all acts of the Legislature of the State of Idaho
amendatory thereof and supplementary thereto (collectively, the Act), and all other laws
applicable thereto. It is hereby expressly certified and recited that all acts and conditions
requisite and precedent to the validity of this issue have been properly done and performed in
regular and due time, form and manner, as required by law.
This Bond shall not be valid until the Certificate of Authentication hereon shall have been
manually signed by the Bond Registrar.
This Bond is the Citys Fiber Optic Local Improvement District No. 3 Bond, Series 2020
(the Bond) initially issued as a fully registered term bond in the aggregate principal amount of
$783,195.93, dated as of the Dated Date and issued in conformity with and after full compliance
with the LID Code, and under and pursuant to Ordinance No. 637 of the City adopted on May
21, 2020 (the Bond Ordinance), for the purpose of providing for the financing or refinancing
of the costs and expenses of design, acquisition, construction and installation of certain fiber
optic system improvements and related appurtenances (collectively, the Improvements),
benefitting certain property within Fiber Optic Local Improvement District No. 3 (Fiber LID
No. 3) pursuant to the LID Code. Except as otherwise provided herein and unless the context
clearly indicates otherwise, words and phrases used herein shall have the same meanings as such
words and phrases in the Bond Ordinance.
This Bond is payable as to principal, Prepayment Premium, if any, and interest, and is
secured by the irrevocable pledge and dedication of the funds to be derived from the collection of
special assessments on real property within Fiber LID No. 3, which special assessments were
levied by Ordinance No. 634 passed and approved by the City Council of the City on April 2,
2020, and the unpaid portions of special assessments within Fiber LID No. 3 which have been
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pledged to the payment of this Bond, pursuant to the Bond Ordinance. The assessments made
and levied to pay the costs and expenses of the work or Improvements authorized by the
provisions of the LID Code, or any law of the State of Idaho, are by statute made a lien upon and
against the property within Fiber LID No. 3 upon which such assessment or assessments were
made and levied from and after April 16, 2020, which lien is superior to the lien of any mortgage
or other encumbrance, whether prior in time or not, and shall constitute such lien until paid. This
Bond is further secured by the Reserve Fund established by the City Council in accordance with
Idaho Code § 50-1771. The City hereby obligates itself, and is bound under the terms and
provisions of said law, to cause said assessments to be properly collected, and to apply the
proceeds of said assessments to no other purpose than to pay when due the principal of,
Prepayment Premium, if any, and interest on this Bond. Such collected assessments, including
interest on unpaid assessments, shall be deposited into the Bond Fund and Interest Fund, as
applicable, created under the Bond Ordinance, until used to pay debt service on this Bond, and
pursuant to the Bond Ordinance, such monies are pledged by the City for payment of principal
and interest on the Bond.
In accordance with Section 50-1715, Idaho Code, as amended, property owners may
prepay their assessments in full at any time. Prepaid installments of assessments made after May
4, 2020, which is the next business day following thirty (30) days after adoption of City
Ordinance No. 634, must include the full principal amount of the unpaid assessments plus any
applicable penalties and all accrued interest through the date of payment of the same, plus the
Prepayment Premium. The Prepayment Premium is the amount of additional interest to be paid
on the principal amount of prepaid assessments in full (in addition to the accrued interest due
thereon when paid) at the rate of interest on the Bond from the date of the last installment of
assessments due through the Payment Date which is one (1) year after the next Payment Date on
the Bond from the date of prepayment.
Based on the amounts of principal and interest received from property owners upon
prepayment of assessments, principal installment of the Bond, in the amounts determined by the
Bond Registrar, are, upon fifteen (15) days notice to Registered Owner, subject to redemption
prior to maturity in whole or in part, on the applicable Payment Date, in the amounts of principal,
Prepayment Premium, if any, and accrued interest thereon, to the extent there is sufficient money
in the Bond Fund and Interest Fund to pay such amounts. Except as to property owner
prepayments as provided above, the Bond shall be noncallable by the City.
Upon notice given as provided in the Bond Ordinance, principal installment amounts of
the Bond, or portions thereof, to be redeemed shall be selected by the Bond Registrar by lot and
shall, in the event less than all of the outstanding Bond is to be redeemed, insofar as can be done
taking into consideration the unpaid principal installment amounts of the outstanding Bond,
represent an equal amount of principal from each principal installment outstanding at the time of
the redemption. Provided that funds for the redemption price, together with interest to the
redemption date, are on deposit at the place of payment at such time, such portion of the Bond
shall cease to accrue interest on the specified redemption date and shall not be deemed to be
outstanding as of such redemption date.
EXHIBIT A TO ORDINANCE NO. 637, P. 3
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The City has designated this Bond as Qualified Tax-Exempt Obligations pursuant to
Section 265(b)(3) of the Internal Revenue Code of 1986.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall
have been manually signed by the Bond Registrar.
It is hereby certified that all acts, conditions, and things required by the Constitution and
statutes of the State of Idaho to exist, to have happened, been done, and performed precedent to
and in the issuance of this Bond have happened, been done, and performed, and that the
aforesaid special assessments have been legally levied by the City.
IN WITNESS WHEREOF, the City has caused this Bond to be signed by the manual
signatures of the Mayor and City Treasurer thereof, and both signatures attested by the manual
signature of the Clerk, all as of 4th day of June, 2020.
CITY OF AMMON, BONNEVILLE
COUNTY, IDAHO
By:
Mayor
By:
City Treasurer
ATTEST:
By:
Clerk
EXHIBIT A TO ORDINANCE NO. 637, P. 4
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BOND REGISTRARS CERTIFICATE OF AUTHENTICATION
This Bond is the Fiber Optic Local Improvement District No. 3 Bond, Series 2020, of the
City of Ammon, Bonneville County, Idaho, as described in the within mentioned Bond
Ordinance.
Date of registration
and authentication:
BOND REGISTRAR:
_______________________________________
City Treasurer
EXHIBIT A TO ORDINANCE NO. 637, P. 5
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
Name of Transferee:
Address:
Tax Identification No.:
the within Bond and hereby irrevocably constitutes and appoints
of
to transfer said bond on the books kept for registration thereof with full power of substitution in
the premises.
Dated:
Registered Owner
NOTE: The signature on this Assignment must
correspond with the name of the Registered Owner
as it appears upon the face of the within Bond in
every particular, without alteration or enlargement
or any change whatever.
SIGNATURE GUARANTEED:
NOTICE: Signature(s) must be guaranteed by an eligible guarantor institution that is a member of or a
participant in a signature guarantee program (e.g., the Securities Transfer Agents Medallion Program,
the Stock Exchange Medallion Program or the New York Stock Exchange, Inc. Medallion Signature
Program).
******
EXHIBIT A TO ORDINANCE NO. 637, P. 6
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SCHEDULE 1
EXHIBIT A TO ORDINANCE NO. 637, P. 7
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EXHIBIT B
CITY OF AMMON
BONNEVILLE COUNTY, IDAHO
SUMMARY OF ORDINANCE NO. 637
FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3
AN ORDINANCE AUTHORIZING THE ISSUANCE AND CONFIRMING
THE SALE OF THE FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO.
3 BOND, SERIES 2020, IN THE PRINCIPAL AMOUNT OF $783,195.93;
APPROVING THE SALE OF THE BOND TO WASHINGTON FEDERAL
BANK, NATIONAL ASSOCIATION DBA WAFD BANK, AS PURCHASER;
PROVIDING FOR THE USE OF PROCEEDS THEREOF; CREATING THE
BOND FUND AND INTEREST FUND FOR PAYMENT OF THE BOND;
CREATING AND ESTABLISHING A RESERVE FUND TO SECURE
PAYMENT OF THE BOND; PROVIDING FOR EXECUTION,
AUTHENTICATION, REGISTRATION AND TRANSFER OF THE BOND;
PROVIDING FOR A SYSTEM OF REGISTRATION THEREFOR; PLEDGING
FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 3 FOR AMMON,
IDAHO ASSESSMENTS FOR PAYMENT OF THE BOND; PROVIDING FOR
CERTAIN FEDERAL TAX COVENANTS AND SPECIAL DESIGNATIONS
WITH RESPECT TO THE BOND; PRESCRIBING RELATED DETAILS AND
PROVISIONS CONCERNING THE FOREGOING; REPEALING
CONFLICTING PROCEEDINGS; PROVIDING IRREPEALABILITY;
PROVIDING SEVERABILITY; AND PROVIDING FOR PUBLICATION AND
EFFECTIVE DATE.
A summary of the principal provisions of Ordinance No. 637 (the Ordinance) of the
City of Ammon, Bonneville County, Idaho (the City), adopted on May 21, 2020, is set forth
below. Capitalized terms used in this summary shall have the meanings given them in the
Ordinance.
Section 1: Definitions. Defines certain capitalized terms used in the Ordinance.
EXHIBIT B TO ORDINANCE NO. 637, P. 1
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Section 2: Authorization and Sale of the Bond; Use of Proceeds. Authorizes the Citys
Fiber Optic Local Improvement District No. 3 Bond, Series 2020, in the
aggregate principal amount of $783,195.93 (the Bond or Bonds); authorizes
the sale of the Bond to Washington Federal Bank, National Association dba
WaFd Bank, as purchaser (as Purchaser), in the principal amount thereof, to
finance costs of design, acquisition, construction and installation of certain fiber
optic system improvements and related appurtenances within Fiber Optic Local
Improvement District No. 3 (Fiber LID No. 3), to pay a prior interim loan,
and to pay costs of issuance of the Bond, all pursuant to Idaho Code, Title 50,
Chapter 17 (the LID Code).
Section 3: Bond Details. Describes the Bond as a single fully registered term bond, with
final maturity of fifteen years from the Date of Issue, and provides for the
substantial form of the Bond to be attached to the Ordinance.
Section 4: Installments; Interest Rate. Provides the Bond shall bear interest on unpaid
principal at 2.88% per annum, and principal and interest thereon shall be paid
pursuant the amortization schedule attached to the form of Bond.
Section 5: Sale of Bond. Provides the Bond shall be sold to the Purchaser.
Section 6: Paying Agent and Bond Registrar; Payment of Bond. Appoints the City
Treasurer as the initial Bond Registrar and Paying Agent for the Bond.
Section 7: Prepayment of Assessments; Redemption. Sets forth the terms of prepayment
of assessments by property owners, pursuant to the LID Code, and provides for
redemption of the Bond from proceeds of prepaid assessments to the extent of
money in the Bond Fund and Interest Fund.
Section 8: Creation of Bond Fund and Interest Fund; Pledge of Funds; Transfer of Funds
to Paying Agent. Creates the Bond Fund and Interest Fund to be held by the
City wherein all payments of levied assessments within Fiber LID No. 3,
including principal and interest, shall be deposited. Pledges monies held in the
Bond Fund and Interest Fund for payment of the Bond.
Section 9: Creation of Reserve Fund; Deposits to and Application of Reserve Fund.
Creates the Reserve Fund pursuant to the LID Code to secure payment of the
Bond, to be funded by the City at the time of issuance of the Bond in the
amount of the Reserve Fund Requirement. Any money held in the Reserve
Fund shall be held in trust for the payment, when due, of the Debt Service on
the Bond, and shall be used and applied only as provided in Section 9 of the
Ordinance.
EXHIBIT B TO ORDINANCE NO. 637, P. 2
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Section 10: Delinquent Assessments; Distribution of Collections. Provides for penalty and
additional interest to be assessed on delinquent assessments pursuant to the LID
Code, and for payment therefrom of the Citys reasonable expenses to collect
the delinquent assessments, to the extent permitted by law.
Section 11: Execution and Authentication of Bond. Provides for execution and
authentication of the Bond by the Citys officials and the Bond Registrar.
Section 12: Registration and Transfer of the Bond. Names the City Treasurer as the Bond
Registrar for the Bond
Bond shall be transferable by the Purchaser, in whole only, to (i) an affiliate of
Purchaser; (ii) a trust or other custodial arrangement established by Purchaser or
one of its affiliates, the owners of any beneficial interest in which are limited to
QIBs
of the Securities Act of 1933.
Section 13: Bond Registration Books. Provides that the Bond Ordinance constitutes a
system of registration pursuant to chapter 9 of Title 57, Idaho Code, and that the
Bond Registrar shall maintain the records of registration and transfer of the
Bond at its corporate office.
Section 14: Assessment Lien. Declares the assessments and the interest thereon a lien in the
amounts assessed against each lot or tract of land within Fiber LID No. 3,
superior to the lien of any mortgage or other encumbrance, whether prior in
time or not, until paid. The liens are effective as to the lots or tracts in Fiber
LID No. 3 as of April 16, 2020, the date of recordation of the notice of
Ordinance No. 634, the assessment levy ordinance.
Section 15: Rights of Bond Owner. Provides that, when issued, the Bond shall transfer to
the Purchaser, or designee thereof, all the rights and interest of the City in and
with respect to every assessment against the property within Fiber LID No. 3
and authorizes the Purchaser or designee thereof to receive and have collected
the assessments through any of the methods provided by law for the collection
of assessments for local improvements.
EXHIBIT B TO ORDINANCE NO. 637, P. 3
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Section 16: Reassessment. The City covenants that if ever the assessments within Fiber
LID No. 3 have failed to be valid in whole or in part for want of form or
sufficiency, informality, irregularity or nonconformance with the laws
governing such assessments, the City Council shall, to the extent permitted by
law, reassess such assessments and enforce their collection in accordance with
the provisions of the law existing at the time the reassessment is made. The
City further covenants that when for any cause, mistake or inadvertence the
amounts heretofore assessed shall not be sufficient to pay the cost and expenses
of the Improvements made and enjoyed by owners of property in Fiber LID No.
3, the City Council shall make reassessments on all property in Fiber LID No. 3
sufficient to pay for such Improvements.
Section 17: Reissuance of Bonds. The City covenants that if the Bond shall ever be
declared invalid or void by order or decree of court, the City shall, to the extent
permitted by law, reissue the Bond at the same rate of interest and in such
amount as will cover the principal and interest due on the Bond, and that the
Bond upon which there has been default or which has been declared invalid or
void shall thereupon be surrendered and cancelled. The lien created by the levy
of assessments heretofore made for Fiber LID No. 3 shall remain in full force
and effect.
Section 18: Tax Covenants and Special Designations. Includes covenants to comply with
-Exempt
venue Code of
1986.
Section 19: Additional Bonds. The City covenants that as long as the Bond is outstanding,
the City will not issue any additional bonds or other indebtedness on behalf of
the Fiber LID No. 3 without the written consent of the Registered Owner.
Section 20: Reporting Requirements. Provides for annual Fiber LID No. 3 financial
disclosures to the Purchaser.
Section 21: General Authorization. Authorizes the officials of the City to do and perform all
acts and things consistent with the Ordinance to carry the same into effect.
Section 22: Conflicting Actions Repealed. Repeals all ordinances, resolutions and parts
thereof in conflict with the provisions of the Ordinance, to the extent of such
conflict.
Section 23: Ordinance Irrepealable. Provides the Ordinance shall be and remain
irrepealable until the Bond and the interest thereon shall be fully paid and
discharged.
EXHIBIT B TO ORDINANCE NO. 637, P. 4
47773.0005.12727353.8
Ammon City Council 05/19/2020Page 42 of 68
Section 24: Severability. Provides that if any section of the Ordinance is invalid or
unenforceable, that invalidity will not affect the remainder of the Ordinance.
Section 25: Ordinance to Constitute Contract. Provides that the Ordinance shall constitute a
agreements in the Ordinance shall be for the equal benefit, protection and
security of the Purchaser.
Section 26: Publication and Effective Date. After passage and adoption of the Ordinance,
provides that this summary shall be published once in the official newspaper of
the City, and upon such publication shall be in full force and effect.
Provides the Form of Bond.
Exhibit A:
Sets forth the substantial form of this Summary for publication.
Exhibit B:
A full text of Ordinance No. 637 is available by requesting a copy from the City Clerk,
2135 South Ammon Road, Ammon Idaho.
APPROVED this 21st day of May, 2020.
CITY OF AMMON, BONNEVILLE
COUNTY, IDAHO
Sean Coletti, Mayor
ATTEST:
___________________________________
Kristina Buchan, City Clerk
EXHIBIT B TO ORDINANCE NO. 637, P. 5
47773.0005.12727353.8
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CERTIFICATION OF COUNSEL
I, the undersigned legal advisor for the City of Ammon, Bonneville County, Idaho,
hereby certify that I have read the attached Summary of Ordinance No. 637 of said City and that
the same is true and complete and provides adequate notice to the public of the contents of said
Ordinance.
DATED as of this ____ day of May, 2020.
By:_____________________________________
Scott Hall
CERTIFICATION TO ORDINANCE NO. 637, P. 1
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PROCEDURES
PROCEDURE TO ADOPT AN ORDINANCE
Ordinance No. 638 introduced and read by title.
AN ORDINANCE ANNEXING AND ZONING CERTAIN LANDS TO THE CITY
OF AMMON, BONNEVILLE COUNTY, IDAHO; DESCRIBING WITH
PARTICULARITY SAID LANDS TO BE ANNEXED AND ZONED AND
HEREBY ANNEX AND ZONE AND DECLARING SAID LANDS A 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 FOR THIS
ORDINANCE AND OF THE ANNEXATION OF SAID LANDS.
Councilperson moves:
rule requiring the reading of the ordinance on
three different days and that the three readings
Councilperson seconds:
Roll call vote on motion.
Ordinance again read by title and read in full.
TITLE AND FULL
Councilperson moves:
option of ordinance No. 638 as
an ordinance of the City of Ammon on its
Councilperson seconds:
Roll call vote.
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