City Council

APRIL 25, 2016 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Work Session), Monday, April 25, 2016, at the City Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:00 p.m. There were present: Mayor Rebecca L. Noah Casper Councilmember David M. Smith Councilmember Thomas Hally Councilmember Michelle Ziel-Dingman Councilmember John B. Radford Councilmember Barbara Ehardt Councilmember Ed Marohn Also present: Kerry McCullough, Public Information Officer Greg Weitzel, Parks and Recreation Director Chris Fredericksen, Public Works Director Kent Fugal, City Engineer Mark McBride, Police Chief Craig Davis, Airport Director Dave Coffey, Deputy Fire Chief Dave Richards, Water Superintendent Brad Cramer, Community Development Services Director Pamela Alexander, Municipal Services Director Mark Hagedorn, Controller Kenny McOmber, Treasurer Dana Briggs, Economic Development Coordinator Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:03 p.m. Parks and Recreation presented the following item: Signage and Wayfinding Update: Director Weitzel stated the Master Plan for Signage and Wayfinding began in 2013 with the City Councilmembers approving the contract with Hunt Design. He then turned the time to Wayne Hunt and Jen Bressler for remote presentation. Mr. Hunt indicated this has been an extremely thorough process with the City. Ms. Bressler briefed the Councilmembers on the project history which included Council Work Session discussions, public workshops/stakeholder meetings, and discussions regarding zoo signage, greenbelt and trails mapping, and city identity. She reviewed the types of signs and banners for City entrance, vehicular directional, pedestrian directional, and park identification. She indicated the original concrete monument wall for City entrance required redesigning due to weather concerns. The redesigned monument will incorporate the new City logo into a rock structure including a waterfall. Ms. Bressler summarized the phases of the project as follows: 1st Phase – Banners, which were installed and paid for by the Idaho Falls Downtown Development Corporation (IFDDC) 2nd Phase – Monument/Citywide signage and wayfinding, currently in construction 3rd Phase – Park signage and wayfinding, will be bid in the near future 1  APRIL 25, 2016 Director Weitzel stated there will be approximately 148 total signs. The groundbreaking for the signage will be held May 2, 2016. $600,000.00 has been budgeted for this project over the course of two (2) years. He expressed his appreciation to all those involved with this multi-year project. Idaho Falls Airport, Public Works, Police Department, and Fire Department appeared for the following item: Air Show Consideration: Mayor Casper stated the City has received a letter from the Air Show Committee requesting in-kind City services for airport facilities/equipment and personnel, safety equipment and security personnel, engineering equipment and personnel, sanitation equipment and personnel, and emergency equipment and personnel. Chief McBride indicated the Police Department costs would be $82,264.89. This amount is calculated on the average wage of officer’s salaries and overtime costs, and does not include overhead costs. Deputy Chief Coffey indicated the Fire Department cost would be approximately $31,000.00. This would include staffing of 3, 8-hours shifts. Director Davis indicated the Airport cost would be approximately $30,000.00 - $40,000.00. This would include airfield maintenance, crowd control fencing, and relocation pay to residents living in the aerobatic box. Director Fredericksen indicated Public Works cost would be $21,012.00 which would include engineering, sanitation, and street division services. The amount of services requested totals $174,526.89. Mayor Casper stated this amount is not currently included in the budget and amounts to approximately 1% of a potential budget increase. She commented a successful air show brings in tourism and area visitors which the community can benefit from although it does not directly bring an increase to the City coffers. General discussion followed. The Air Show Committee, consisting of Rich Leonardson, Bob Hoff, Nick Gailey, and Russell Johnson, indicated any profits from the air show, according to the by-laws, are allocated to a non-profit education based entity. The profits from the 2010 Air Show, totally approximately $290,000.00, were given to the Mayor’s Scholarship Fund. Mr. Johnson stated the air show will require City support prior to moving forward. After further discussion, it was decided the Council would like to proceed with the air show and requested the Department Directors provide actual costs with possible compromise of costs from the air show committee or other entities. Mr. Johnson indicated the Blue Angels would need to be notified of City support, in the form of a Resolution, within approximately 45 days. Police Department presented the following item: Civil Service Ordinance: Chief McBride stated the current Civil Service Ordinance states employees must reside in Bonneville County and no further than ten (10) miles from City limits. He indicated approximately 43% of the Police Department employees are not in compliance with this ordinance. Deputy Chief Coffey indicated only 28% of the Fire Department employees reside in City limits. Chief McBride believes any changes through the State Civil Service Rules were not simultaneously changed in City Code. He recommended the ordinance be modified to eliminate the residency requirements. Deputy Chief Coffey stated Idaho Falls and Pocatello are the only two (2) remaining cities in Idaho following the Civil Service Rules. General discussion followed regarding City employees residing within the City limits as well as enforcement of current City Codes. It was decided this item would be placed on the April 28, Council Meeting agenda. Public Works presented the following items: Water Facility Plan Discussion (Alternative Rate Reclassification and Annual Metering): Director Fredericksen reviewed the following information with general discussion throughout: Water Facility Plan (WFP)  Adopted by Council in August, 2015  Chapter 9 – Financial Impact of City-wide Meter Implementation 2  APRIL 25, 2016 o Water Demand Impacts of Metering  Estimated reduction of water use by 40-50%  WFP assumed a 30% reduction in average day demand and 40% reduction in peak day demand  WFP predicted that peak day and hour demand would actually be less in 20 years than current peak demands o Metering Costs  Cost to implement a fully metered system (current dollars)  Implementation estimated to be $77.68 million  Defer $20.8 million in capital improvements over next 20 years  Total cost is $56.88 million  10-year implementation $5.69 million; 20-year $2.85 million  2015-2016 anticipated water revenue: $8.46 million  Implementation requires long-term debt and substantial increase to water rates o Metering  New residential services require installation of a meter pit  WFP - New commercial construction would be metered  WFP - Allocate $250,000 annually to meter largest water users  Internal focus on water usage and conservation  City buildings  Monthly meetings with Parks and Recreation (Zoo modifications and Ryder Park fish pond)  Chapter 10 – Alternative Rates o Existing Rate Structure  Unique System – establish rates that are easily understood and equitable for water users  Use  60% of water produced is for irrigation/summer usage  Billing allocates 92% billing to a domestic use  Users  26,135 User Accounts (2,100 inactive on monthly basis, 229 outside City)  23,887 (91%) Residential Use (single family, duplex, condos/apartments)  2,248 (9%) Commercial Accounts (10 outside City)  280 Metered Accounts  745 Meter Pits installed o Recommended Rate Structures  Water Rate Structures Recommended Changes  Non-metered Residential Irrigation – annually to monthly billing  Non-metered Commercial Domestic – place into six categories based on metered data of similar business types billed monthly  Non-metered Commercial Irrigation – annually to monthly billing  Metered Water – charge based on meter size of $0.54 per every 1,000 gallons  DEQ Fee – annually to monthly billing Director Fredericksen reviewed the Single Family Water Rates and Wastewater Rates. He indicated the proposed alternative rates would apply to single family, duplex/condo, 4-plex/apartments, CAT1-6 (categories), and Metered Water. Key changes to alternative rates would include: water and sewer user category changes, Fee Resolution and Ordinance changes, recognizing irrigation use associated with landscaped areas, Cayenta billing software, and once annual charges spread over each month of the year (irrigation, DEQ). He stated the goal date for implementation is October 1, 2016. 3  APRIL 25, 2016 Water Mitigation: Director Fredericksen indicated the Water Mitigation Plan was submitted in October 2015, and, since that time, has been modified with coordination from several other communities. He stated if the mitigation plan was not approved, one (1) City well would be impacted. The City has flexibility, through water rights, to determine which well would be mitigated. Director Fredericksen stated, due to negotiations, all protests for the Water Mitigation Plan had been withdrawn and therefore the City is protected from current curtailment. He indicated all meters, rates, mitigation, and curtailment are linked together and offers protection to cities. Due to the Mitigation Plan, the City is required to supply water or pay for water. General discussion followed regarding metering, future water infrastructure, and ground water recharge. Community Development Services presented the following item: Annexations Update: Director Cramer stated he was previously given Council approval to proceed with limited annexations but it was not determined how to proceed with associated fees. He classified these annexations into two (2) categories depending on the infrastructure or development needs. He indicated Category A include properties that do not need major roadway improvements, which account for approximately 43% of the 300 specific parcels. He suggested the following recommendations for annexations: 1-Begin with parcels without major roadway needs 2-Only apply fees when owners decide to develop on current undeveloped parcels 3-Continue with current policy – if City initiates annexation, annexation fees would not apply 4-Staff be prepared and well-versed with Local Improvement District (LID) 5-Offer assistance with federal aid or other programs for those parcels that currently have collector or arterial needs After brief discussion, it was decided Director Cramer would provide written documentation to Councilmembers specifying the recommendations for those parcels in Category A, including any economic impact. Further discussion, including Category B annexations, would occur at a future work session. Municipal Services presented the following items: Wells Fargo Credit Card Discussion: Director Alexander stated during the recent process of updating the travel policy, there was request by Directors to provide City credit cards. Wells Fargo will be providing these credit cards, including 24 hours/7 days a week availability, once the travel policy has been finalized. The credit card transition phase will begin with the zoo and the Library and it will not replace normal purchasing procedures. Card limits will be set by the City on an individual/as needed basis. There will also be policy and procedures indicating appropriate use and enforcement. City Finance Presentation: Director Alexander introduced the City Finance Team, Kenny McOmber, Treasurer, and Mark Hagedorn, Controller, and to the Councilmembers. She stated one of Mr. McOmber’s duties include providing a monthly Treasurer’s Report by the 10th of each month per Idaho State Statute with an expenditure report following shortly thereafter. Mr. McOmber stated Government Finance Officers Association (GFOA) recommends, at a minimum, that general-purpose governments, maintain unrestricted budgetary fund balance in their general fund of no less than two (2) months of regular general fund operation revenues or regular general fund operation expenditures. He reviewed the City’s monthly average expenditures and indicated the City currently has eight (8) months of Cash on 4  APRIL 25, 2016 Hand. He reviewed the City’s distribution of cash as well as investments, stating liquidation could occur if needed. Mr. McOmber stated if a City Treasurer was not available, all funds would be sent to the Local Government Investment Pool (LGIP), with no federal deposit insurance and low rates of return. He reviewed the monthly tax collections from Bonneville County and stated payments fluctuate on a monthly basis with the larger collections being received in January and July due to property tax payments. Brief discussion followed regarding fund access. Mr. Hagedorn briefed the Councilmembers on the controller’s report. He reviewed revenues by class and stated the enterprise fund is based on accrual, the government fund is based on cash. He reviewed expenditures by type, stating wages have slightly increased while benefits have slightly decreased. He reviewed expenditures by department stating total expenditures are at 45.3%. Service funds, including Municipal Equipment Replacement Fund (MERF), are at 89.2%. He indicated progress is occurring on the auditor’s recommendations including reconciliations, utility processing, golf inventory, e-payables, and payroll budgets. Director Alexander indicated the finance team would like to present financial reporting to the Councilmembers on a quarterly basis. Budget information was distributed to Councilmembers. Economic Development Coordinator presented the following item: Community Support Grant Discussion: Ms. Briggs distributed the Community Support Grant calendar and updated application and requested Council’s recommendation for continuing and/or eliminating the grant process. Mayor Casper stated previous communication has been given to grant applicants indicating a possible change in the program. She indicated there is currently no benchmarking or follow up for grant recipients. Discussion followed regarding entities receiving grant funds being justified as useful to the City or providing economic development. Mr. Fife does not believe it is appropriate for the City to donate tax money to a general cause. Councilmembers Marohn and Dingman do not believe the City should be contributing tax dollars to 501(c)(3) organizations without accountability. After further discussion, it was decided the categories should be redefined and any appropriate City services be included in departmental budgets as per Priority Based Budgeting guidelines. The grant application letter will contain updated information indicating possible reduced grant funds. Mayor and Council presented the following: Mayor’s Report and Action Items, Other Announcements and Calendar Items: May 2, Signage and Wayfinding groundbreaking May 3, Up and Atom breakfast, Budget Watch May 7, Cinco de Mayo May 9, Work Session to begin at 2:00 with Ammon officials meeting to follow at 4:30 May 23, Work Session to begin at 2:00 with Mayor’s bike ride to follow May 24, reception with Fluor May 31, reception for outgoing Idaho contractors at Art Museum Recruitment brochure will be submitted with updated posting for Human Resources Director City Council Reports: Councilmember Hally stated the plaque on the greenbelt recognizing Mayor Thomas Campbell had been vandalized, Hunt Design has redesigned the plaque. Councilmember Marohn distributed historical information from the 2015/16 budget for Councilmembers review and comparison for current budget process. Councilmember Smith had no items. Councilmember Ehardt expressed her appreciation for the Priority Based Budget workshop and would like to reconvene on a quarterly basis. 5  APRIL 25, 2016 Councilmember Dingman stated the Police Department is reviewing the Dog/Kennel Ordinance for revisions as well as an Alcohol Sidewalks Ordinance. Councilmember Radford had no items. There being no further business, it was moved by Councilmember Radford, seconded by Councilmember Hally, to adjourn at 7:05 p.m. which motion passed followed a unanimous vote. CITY CLERK MAYOR 6