City Council

January 23, 2017 The City Council of the City of Idaho Falls met in Special Council Meeting (Council Work Session), Monday, January 23, 2017, in the Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:00 p.m. Call to Order and Roll Call: There were present: Mayor Rebecca L. Noah Casper Councilmember Ed Marohn Councilmember Michelle Ziel-Dingman Councilmember Barbara Ehardt Councilmember Thomas Hally Councilmember John B. Radford Councilmember David M. Smith (by telephone) Also present: Greg Weitzel, Parks and Recreation Director Chris Fredericksen, Public Works Director Pamela Alexander, Municipal Services Director Kenny McOmber, Treasurer Mark Hagedorn, Controller Brad Cramer, Community Development Services Director Lisa Farris, Grant Administrator Robert Wright, Library Director Kerry Hammon, Public Information Officer Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:00 with the following items: City Council Reports: Councilmember Hally had no items to report. Councilmember Marohn had no items to report. Councilmember Ehardt had no items to report. Councilmember Dingman had no items to report. Councilmember Radford recognized Tim Reinke, Golf Operations Manager, for the Professional Golf Association (PGA) Rocky Mountain Section Merchandiser of the Year Award. He also recognized Kevin Kavran, Sand Creek Assistant Golf Professional, as the Idaho Coach of the Year for all 5A Schools. Councilmember Smith had no items to report. Mayor’s Report, Calendar Items, and Announcements: January 24, Idaho Falls Power (IFP) Board Meeting and Special City Council Meeting January 25, Open House for short-term rental discussion at Idaho Falls Pubic Library January 26, Association of Idaho Cities (AIC) City Officials Day at the Capital in Boise January 28, Community TEDx Youth at Compass Academy February 1, employee compensation meeting February 2, Chamber of Commerce Advocacy Members Meeting February 2, Regional Economic Development for Idaho (REDI) morning education breakfast at Hilton Garden Inn February 6, Council Work Session, Mayor Casper and Councilmember Dingman will be absent February 7, MPOwerment (Metropolitan Planning Organization) Roundtable in Salt Lake City February 9, Regular Council Meeting Mayor Casper stated a Polytechnic Institute has been proposed at Idaho State University 1  January 23, 2017 Mayor Casper stated a new travel policy has been established and all employees will be issued a Procurement Card (P Card) for all travel purposes. Mayor Casper briefly reviewed 2017 snow removal expenditures as of January 19, 2017 as follows: Street Division Snow Removal Cost Contractor Rental Cost Total Snow Removal Cost Budget Actual Budget Actual Budget Actual $533,000 $297,748 $525,000 $621,000 $1,058,000 $918,748 Golf Report/Golf Advisory Board Presentation: Director Weitzel introduced Rick Carosone, Golf Advisory Board Chair; Tom Hersh and Fred Sica, Golf Advisory Board Members; and Parks and Recreation Golf Staff. He then turned the golf report presentation to Mr. Reinke as follows with general discussion throughout: 5-year Business Plan –  Created in 2012  Ultimate goal was to assist the City in eliminating reoccurring annual deficit while saving revenues for future operations and capital projects  Almost 80% of the plan has been accomplished Profit/Loss – since the start of 5-year plan, revenues have come close to matching budgeted expenses each year. Money for Capital Improvement Fund (CIF) was also generated. CIF (funding for small to midsize capital projects) Summary:  ~$80,000 generated every golf season  Projects purchased 2013-16 - $318,000  Current balance - ~$153,000 Mr. Reinke briefly reviewed previous CIF projects. Annual budget includes:  Turf Equipment through the use of the MERF (Municipal Equipment Replacement Fund)  Irrigation System repairs and pumping station repairs through the use of the MERF Irrigation Fund Mr. Reinke indicated the budget is monitored closely and comes in under budget each year. He briefly reviewed MERF expenses; the number of staff at Pinecrest, Sand Creek, and Sage Lakes golf courses (certified superintendents and professionals are required to have a minimum of 36 credit hours of education in their respective fields every three (3) years); total rounds of golf played per year (which fluctuate based on weather); merchandise sales; and use of volunteers. Interesting facts –  Pinecrest – o 80 years old o Golf Digest Magazine rated Best Public Course in the State of Idaho o Clubhouse built by the WPA in 1936  Sand Creek – o 36 years old o Busiest golf course in the State of Idaho (almost 50,000 rounds each season) o Has 6-hole short course for kids and families  Sage Lakes – o 24 years old o Major reason for the surrounding subdivisions which now have over 200 home sites According to the Chamber of Commerce, having three (3) championship golf facilities in our City is one of the major factors why many businesses choose to locate in Idaho Falls. The affordable prices, quality of courses, and 2  January 23, 2017 well-managed facilities have a far-reaching impact on our local economy. Most importantly, golf provides a quality of life second to none especially for our aging population. Water conservation – not only a priority, it has been practiced for several years. Golf tournaments – more than $155,000 in entry fees are generated each season. Community support – more than $60,000 in cash contributions this past year (David Smith, owner of Teton Steel is a lifetime sponsor of range balls, ~$7000 annually). Charity events and free lessons – in 2016 more than $148,000 was raised for local charities, staff provides free lessons on free lesson day each year. Communication – 89 email notifications to more than 5000 email customers, advertise in multiple ways, marketing team is working on improvements for 2017. Golf Leagues – more than 1800 participants. Junior Golf Association – more than 400 members, $35 to join, every junior must attend and pass Junior Etiquette Seminar first. First Tee member – national program which was offered to all District 91 3rd-grade students (just over 1200 kids). High School golf teams – more than 100 kids each year. The Idaho Falls Girls Team won the State Championships 2016. Family Day with Big Hole Golf continued to be promoted. Free Golf Day 2016 – more than 380 people, 517 cans of food collected for the Idaho Falls Food Bank. Goals –  Customer Service – most important  “Break Even” – goal has never been to make a profit  Mayor’s Citizens Review Committee (CRC) – made several recommendations, major focus should be to spend more time trying to get more citizens involved in this game Considerations for the future –  The irrigation system at Pinecrest is in need of replacement  The City has never had a long-range plan to replace these aging assets at our championship facilities, only a plan for small to midsize capital projects What the Golf Division has done to analyze the current irrigations system: 1) Subscribe to annual course and turf advisory inspections by the United Stated Golf Association. This year’s inspection included: o The Current system at Pinecrest is over 30 years old, with parts as old as 50 years, and there are major hydraulic and pumping issues that need to be addressed. o A community lake at Pinecrest on the adjoining property (which was most recently donated to the City) is the perfect answer to eliminate current culinary water use for irrigation. o While the cost of a new irrigation system will not be low, it is expected that the internal piping should last at least 40 years, with components lasting around 25 years. o It is important for those not in the golf industry to understand that with a new system designed and installed by a qualified irrigation designer, you should not expect to do anything but replace components in the future. o Use a qualified and experienced installer. 2) Hired a Professional Golf Course Irrigation Consultant in 2015, findings included: o In general, the Pinecrest irrigation system is well beyond its life cycle expectancy and is on the brink of complete failure. o If Pinecrest realizes the new irrigation pond and thus moves off domestic and onto gravity irrigation, the course will require new mainline to accommodate the new hydraulic demands and pump location. o At that point, a full renovation is really the only option. 3  January 23, 2017 Mr. Reinke briefly reviewed the Pinecrest Golf Course irrigation life cycle. He then turned the meeting to Mr. Carsone for the following presentation: Mr. Carosone stated the purpose of the Golf Advisory Board (GAB) is to ‘make recommendations to the Mayor and Council concerning the operation, maintenance and conduct of the City golf courses’. The GAB also:  Gives citizens a real voice for their ideas and concerns  Reviews fees and budgets, recommending fee increases, and ensuring that the quality of our golf courses remain second to none  Analyzes and gives input on the five-year plan  Attends United States Golf Association (USGA) inspections at respective golf courses  Reviews detailed budget analysis worksheets  Has twelve voting members which meet five (5) times yearly with additional special meetings called by the Chairman CRC general findings (2015)-  The City owns and operates three championship golf courses and a six-hole/par 3 course, which are a significant benefit to both residents and visitors to the city and metropolitan area. They also are a motivating factor for businesses and people moving into the area. “Big Six” Experience-  Pinecrest: Tim Reinke, 38 years and Mark Spraktes, 6 years  Sand Creek: John Graham, 30 years and Tim Lohse, 26 years  Sage Lakes: Gaylen Denning, 23 years and Jim Landon, 25 years Institutional expertise and mindful budgeting-  Each operation is extremely efficient with 5.6 FTE (full-time employees) less than the national average  Golf shop merchandise shrinkage of <1%  USGA inspections  Working relationships and collaborations with key departments in the city  Collaboration with private entities  Inclusion of all segments of the population Five-year plan successes, changes and sacrifices-  Complete revision of PGA Professional compensation package  Repair and maintenance of equipment budget reduction of 18%  MERF reduction of 13%  Elimination of three (3) FTE’s  Fireworks Mr. Carosone believes the City golf courses provide a quality golf experience in our City for the thousands of citizens who love to play golf. Councilmember Hally expressed his appreciation for the service, recommendations, and impact of these great assets in our community. Councilmember Marohn concurred. He also believes the golf fees are very reasonable. Councilmember Dingman stated she is impressed with the youth programs. Director Weitzel expressed his appreciation to the dedication of the Golf Advisory Board. Discussion of Resolution for Pinecrest Golf Course WaterSMART Grant with Bureau of Reclamation: Director Weitzel stated an opportunity is available to apply for a WaterSMART grant, in the total amount of $1million, for a new irrigation system at Pinecrest Golf Course. He indicated the grant application would require a resolution, approved by the Councilmembers, within 30 days of the application. He reviewed the application process, stating award date would be in June 2017. This would be a 3-phase, 3-year project and funding would require approval on an annual basis. Director Weitzel stated if the grant is awarded, it would require the first year funding commitment of 50% match of in-kind support in the amount of $300,000 which would be provided through 4  January 23, 2017 sources of capital funding available to the City. The total irrigation system project is estimated at approximately $2.2 - $2.8million. Director Fredericksen stated the City is trying to plan with existing water rights and potable water is not needed to irrigate the parks areas. He stated Pinecrest consumes 76 million gallons of water on annual basis which could be drawn from the irrigation system/canals in close proximity. He indicated recently donated property next to Pinecrest could also be used as a possible pond thereby protecting potable water supplies. He believes the Water Division would benefit from this grant as well as cost savings to the City rate payers. This item would be budgeted in FY2017/2018. Brief discussion followed. This item will be included on the February 9 Council Meeting agenda. Quarterly Finance Presentation: Director Alexander introduced the Finance Team consisting of Kenny McOmber and Mark Hagedorn. She then turned the presentation to Mr. McOmber. Mr. McOmber reviewed the General Fund balance over the course of 10 years, stating the current balance is decreasing, although the balance is comparable to the previous year. He indicated a Fire Capital Improvement Fund, outside of the General Fund, has been created to show expenses of the new fire station. He reviewed investments stating the City has been able to capitalize on the increasing rates. He reviewed eligible investments, indicating the most common investments are bonds which include Government Agency Bonds as well as Corporate Bonds rated ‘A’ or higher. General bond discussion followed. Mr. McOmber believes the City is doing very well with investments and the main goal in City investment is preservation. Mr. Hagedorn reviewed Budget to Actual Revenue Reporting as follows: Budget Year to Date Percentage Total $154,814,615 $29,329,475 18.9% Mr. Hagedorn stated the first three (3) months are generally the slowest of the year and taxes collected are lower than expected due to change on the County level. Budget to Actual Expenditures: Budget Year to Date Percentage Total $195,194,467 $37,134,247 19.0% Mr. Hagedorn stated expenditures are similar to previous years, with exception of a decrease in Interfund Transfers due to methodology changes. Revenue Overview: FY2015 FY2016 FY2017 Total $34,029,786 $33,878,758 $29,329,475 Mr. Hagedorn stated property taxes are currently low due to the balloon payment not received at this time from the County. The deadline for this payment is January 31. He indicated fee rates have slightly increased due to rate increase. Expenditure Overview: FY2015 FY2016 FY2017 Total $33,561,710 $35,380,069 $37,134,247 Mr. Hagedorn stated total balances have increased due to the lack of Interfund transfers. Budget Updates: Mr. Hagedorn stated due to the unprecedented snow season, the snow removal budget has been depleted. He indicated Director Fredericksen is reviewing other Public Works projects that may need to be postponed to 5  January 23, 2017 reallocate 2016/17 contingency balances to cover unanticipated snow removal expenses. Brief general discussion followed. Director Alexander stated future finance presentation will occur in April 2017. Discussion of Building Lease Opportunity: Director Alexander stated she has been in discussion with the owner of the Hart building, located at the corner of Park and D Street, for possible purchase of the building. She indicated the owner is not interested in selling, but would be interested in a yearly lease with the City. She believes this area could be utilized by the Human Resources (HR) Department as the building is ADA (American with Disabilities Act) accessible and currently there is inadequate privacy space for HR. Director Alexander requested consideration to enter into a yearly lease, in the amount of $2800 per month plus utilities, to allow time to refurbish the fire station area and establish a master plan for City Hall. She stated the vacated space in City Hall will need refurbishing in a phased approach. Councilmember Marohn believes the short-term investment makes sense. Councilmember Radford believes the current fire station space should be utilized, he is not in favor of a short-term lease. After further general discussion, Director Alexander was instructed to develop a lease agreement and identify a funding source for future approval. Discussion of Community Development Block Grant (CDBG) Projects and Activities: Director Cramer recommended that projects listed as high priority in the five-year plan be considered first. Limitations indicating the amount of money spent in specific areas have been established. Ms. Farris reviewed the following categories for FY2017: $738,835.77 Total request in CDBG applications $342,935.00 2016 allocation is the estimate used for planning purposes (will adjust as needed with approved federal budget) $68,586.00 20% maximum allowed for administration of the CDBG program $51,440.25 15% maximum allowed for public service activities $342,935.00 - $68,586.00 = $274,349.00 $192,044.30 70% minimum for LMI (Low to Moderate Income) benefit $82,304.70 30% maximum for Slum/Blight Ms. Farris reviewed the applicants as follows with general discussion throughout: Applicants Amount Option 1 Option 2 Explanation/Notes Requested Proposed Proposed Public Service 15% maximum Idaho Falls Legal Aid $10,000 $6000 $7000 Identified as High Priority CLUB, Inc. $18,000 $8000 $5000 Identified as High Priority Behavioral Health Crisis Center of $20,800 $5000 $5000 Unique provider providing an unmet and E. Idaho identified need EICAP – Grandparents Raising $10,400 - - Not identified as priority Grandchildren Community Food Basket $11,566.66 - - Equipment is ineligible Total Public Service $70,766.66 $19,000 $17,000 Requests/Options Slum/Blight 30% maximum The Housing Company $106,833.11 - - IFRA (Idaho Falls Redevelopment Agency) awarded to the Housing Company IFDDC (Idaho Falls Downtown $102,000 $85,699 $90,000 High priority, 30% maximum allowed Development Corporation) - Public supported by IFDDC Board Facility Total Slum/Blight $208,883.11 $85,699 $90,000 Requests/Options LMI Projects 70% 6  January 23, 2017 Community Development Services $80,650 $80,650 $80,349 1 officer, covers three (3) LMI – Code Enforcement Program City Public Works Department $50,000 $42,000 $42,000 Finish assisting properties in LMI EICAP $50,000 $32,000 $30,000 EICAP has own contractors, other needs addressed with CDBG and weatherization funds combined LIFE Inc. $30,000 - - May be referred to another agency Sr. Citizen Community Center $80,000 - - City-owned facility Community Council of Idaho New $50,000 - - Not identified as high priority Health Center Idaho Falls Rescue Mission $35,000 - - Unspent FY2016 funds need to be spent Habitat for Humanity Idaho Falls $15,000 $15,000 $15,000 Affordable housing high priority (HFHIF) Total LMI Project Requests $390,650 $167,650 $167,349 Administration 20% maximum $68,586 $68,586 $68,586 Administer CDBG program Total $738,835.77 $342,935 $342,935 After brief discussion there was consensus of the Councilmembers to approve Option 1. The resolution for approval of CDBG funding is scheduled for the January 24, 2017 Special Council Meeting. Library Board Report: Mayor Casper welcomed Hal Peterson, Library Board Chair, and Mary Lund, Library Board Member for the mid- year presentation. Mr. Peterson stated the Water Ways exhibit, held May 31 through July 9, was attended by approximately 65,000 visitors. He reviewed the following information with general discussion throughout: Program Number of Programs Number Attending Smithsonian Exhibit + 12 programs 68,460 Story Time 347 14,458 School Visits 189 11,363 Special Events 23 2,940 Preschool Tours 12 220 School Tours 31 1,170 Bookbabies 198 5,597 Library Statistics: Fiscal Year 2016 Fiscal Year 2015 Total Circulation 1,553,217 1,473,781 Adult Circulation 490,455 495,861 Children Circulation 854,012 868,172 Questions answered 132,561 64,365 Electronic Materials 208,750 156,629 Program Attendance 44,278 38,204 Mr. Peterson stated the Library Board would like to expand the children's library into the current meeting areas. The Board would also like to purchase the Ferrell’s Clothing building (located at 417 W. Broadway) for library expansion. He indicated the building is currently being evaluated by various inspectors. The purchase of the building would require Council approval and funding for the potential purchase would require additional discussion. Director Wright stated the contract with the Library District, which encompasses the County, is being renegotiated. He indicated the revised contract would include fees based on population. He briefed the Council on the potential library outreach branch in a City of Ammon high school but stated the Library District was not in 7  January 23, 2017 favor of the fees associated with the program. He indicated the outreach program will be presented to the school board in the near future. General discussion followed regarding additional outreach programs (which were recommended by the Library CRC), electronic materials, and spaces for teens. Councilmember Dingman expressed her appreciation for the on-line Book Nerd reading program as well as staff communication to residents. Mayor Casper expressed her appreciation to the Library Board. There being no further business, it was moved by Councilmember Marohn, seconded by Councilmember Radford, that the meeting adjourn at 6:04 p.m., which motion passed following a unanimous vote. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 8