City Council

April 10, 2017 The City Council of the City of Idaho Falls met in Special Meeting (Council Work Session), Monday, April 10, 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 Barbara Ehardt Councilmember Ed Marohn Councilmember Thomas Hally Councilmember John B. Radford Councilmember David M. Smith Councilmember Michelle Ziel-Dingman Also present: Pamela Alexander, Municipal Services Director Kenny McOmber, Treasurer Mark Hagedorn, Controller Ryan Tew, Human Resources Director Mark McBride, Police Chief Brad Cramer, Community Development Services Director Randy Fife, City Attorney Kerry Hammon, Public Information Officer Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:00 p.m. with the following agenda items: City Council Reports: Councilmember Hally announced the Spring/Summer Discover Idaho Falls Guide, provided by the Parks and Recreation (P&R) Department, is now available. He also announced Brothers Osborne will be performing at Sandy Downs during the Eclipse 2017 event. Councilmember Marohn stated the April 6 Vietnam anniversary fundraising event, Bravo, provided by the IHC (Idaho Humanities Council) and the Idaho Falls Military Affairs Committee, was well attended. Councilmember Radford stated the Idaho Falls Zoo at Tautphaus Park will open for the season on April 15. Councilmember Ehardt stated the Idaho Falls Temple tours will begin on April 18. Councilmember Smith reiterated/concurred with Councilmember Marohn’s comments regarding the Bravo film event. Councilmember Dingman announced two (2) new Idaho Falls Police Department (IFPD) officers will be sworn-in on April 20. Acceptance and/or Receipt of Minutes: It was moved by Councilmember Dingman, seconded by Councilmember Smith, to receive recommendations from the Planning and Zoning Commission pursuant to the Local Land Use Planning Act, and to accept Civic Auditorium Committee Meeting minutes. Roll call as follows: Aye – Councilmembers Dingman, Radford, Marohn, Smith, Hally, Ehardt. Nay – none. Motion carried. Mayor’s Report, Calendar Items, and Announcements: Mayor Casper expressed her appreciation to the Councilmembers who attended the 17th Street/Hitt Road intersection reconstruction groundbreaking held on April 10. She stated the Human Resources (HR) Department will be offering leadership training to all supervisory personnel. She announced the posting for the IFPD Chief position will close on April 23, significant interest has been received. She indicated appreciation has been received from the Senior Citizens Center for City funding. Mayor Casper stated the public hearing for short-term rentals will occur on April 13. Staff presentation will also include a summary related to State legislation, although any State legislation will not take effect 1  April 10, 2017 until January 1, 2018. She indicated the July 4th fireworks show will occur as a private event held on private property, Snake River Landing which is managed by Ball Ventures. She stated all entities will be involved in the fireworks presentation and believes City public services will continue to be utilized. She will update the Councilmembers as future information is received. April 10, Bonneville Development Youth Council (BYDC), In A Different Light project, Colonial Theatre April 13, Idaho Falls Power (IFP) Board Meeting, and City Council Meeting April 18, Mayor’s Business Day, sponsored by the Chamber of Commerce April 18, City leadership tour of the LDS Temple April 20, IHC event with Pulitzer Prize winner Anthony Doerr April 22, Earth Day celebration April 24, City Council Work Session April 26, Association of Idaho Cities (AIC) workshop April 27, City Council Meeting April 28, Idaho Falls Fire Department (IFFD) Annual Awards Ceremony, Civic Auditorium Annual Audit Report: Director Alexander introduced Julie Desimone and Keith Simovic, from Moss-Adams, as well as Mr. Hagedorn and Mr. McOmber. Director Alexander indicated an external audit process, which is required annually, is for the accounting and auditing standards to form and express an opinion regarding the financial statements prepared by management. Moss-Adams was retained as the City’s external auditor to plan and perform the 2015/16 audit. External Audit Reporting includes five (5) main reports: Financial Statement, Internal Controls, Use of Federal Funds, Passenger Facility Charges, and, Management Letter and Recommendation. Director Alexander turned the presentation to Ms. Desimone and Mr. Simovic with general discussion throughout: Audit Deliverables –  Auditors report on the financial statements (unmodified opinion): Financial statements are presented fairly and in accordance with US GAAP (Generally Accepted Accounting Principles) CFAR (Comprehensive Financial Annual Report), this includes major and minor funds  Government audit standards report (report on internal control over financial reporting and on compliance with government audit standards): No instances of non-compliance; one material weakness noted  Federal single audit report on compliance (report on compliance over each major federal program and on internal control over compliance): No instances of non-compliance  Communication to those charged with governance: required audit communications; internal control recommendations Due to audit reports being risk-based, significant audit areas include: capital assets, revenues, financial close and reporting, cash and investments, and, long-term debt. Required audit communications:  Auditors responsibility - provide opinion on financial statements in accordance with US GAAP  Significant Accounting Policies - financial statements and transactions; implementation of GASB 72 (Governmental Accounting Standards Board)  Accounting Estimates - allowance for doubtful accounts; net pension liability; fair value of investments; useful lives of capital assets  Consultation with other accountants - none noted  Disagreements with management - none noted  Difficulties in performing the audit - none noted  Audit Adjustments: o To correctly reflect interfund transfers related to worker’s compensation payments at year end - $617,000 o To accrue expenditures related to CIP (Capital Improvement Project) additions - $364,000 o To adjust ambulance revenue to amounts reported by third party collection agency - $337,000 2  April 10, 2017  Passed Audit Adjustments: o To true-up deferred property tax revenue - $249,000 o To accrue additional payables not recorded at year end - $245,000 o To reclassify CIP as capital assets in service at year end – Electric Fund - $506,000 It was noted all items have been addressed. Internal Control Related Matters:  Material Weaknesses (potential breach that could be detrimental to the City): o Segregation of duties – Treasurer’s Office able to approve, record and reconcile cash, investment and miscellaneous billing transactions. Recommended action to move to the Accounting Department as this will allow elevated testing for potential fraud risk factors as well as process and procedures strengthened within the City. o Lack of timely cash reconciliations performed by the finance team.  Control deficiencies and other matters: o Recommendations related to ambulance revenue and cash receipts, general fund capital assets, purchasing, financial close and reporting, approval of journal entries, reconciliation of online payments. o None rise to level of significant deficiency or material weakness. Ms. Desimone believes management took suggestions well with no pushback. She also believes the recommendations will strengthen internal controls and ensure investment transactions/authorizations are occurring according to law. New Accounting Standards: GASB 74/75 - Financial Reporting for OPEB (Other Postemployment Benefits) – Periods beginning after June 15, 2016 (Plans) and June 15, 2017 (Employers) GASB 77 - Tax Abatement Disclosures – Periods beginning after December 15, 2015 GASB 83 - Certain Asset Retirement Obligations – Periods beginning after June 15, 2018 Letter of recommendations will occur simultaneously with the CAFR. Director Alexander expressed her appreciation to Ms. Desimone and Mr. Simovic. She also commended City staff for their numerous hours and collaboration to complete the audit. Director Alexander reviewed the external audit recommendation implementation plan/dates for internal control topics including: cash reconciliations, investment transactions, miscellaneous billings, ambulance revenue, ambulance cash receipts, capital assets, general fund, water and sewer fund, physical inventory, donated property, purchasing, financial close and reporting, journal entry approval, and, reconciliation of online payments. Mayor Casper expressed her appreciation for the comprehensive performance by the auditors as well as staff’s cooperation to the auditors. Civil Service Rescission Q&A: Director Tew reviewed the State requirements of rescinding the Civil Service System ordinance. Councilmember Hally stated discussion regarding the Civil Service rescission has been occurring for a significant amount of time. He indicated the process for hiring new officers has been lengthy, creating excessive overtime for the previous years. He reminded the Council that Mr. Fife performed a State-wide research, indicating no cities in excess of 10,000 population follow the Civil Service System. Councilmember Hally stated this is not an anti-police exercise, he believes the elimination of the Civil Service System could improve the police force. At the request of Councilmember Radford, Director Tew clarified the Fire Department has the right to bargain for benefits and issues within the Civil Service. Director Tew stated the Civil Service Commission will be eliminated once the IFFD contract proceeds and the current City ordinance is rescinded. Councilmember Ehardt believes the Civil Service System is not just about the written examination. At the request of Councilmember Ehardt, Chief McBride clarified physical agility is required through POST (Peace Officer Standards & Training) or ISU (Idaho State University) academy. Director Tew stated any protections are currently included in other documents/laws and he believes the elimination of the Civil Service System will allow a more progressive hiring process and will look at individuals with a broader range of skills. 3  April 10, 2017 Councilmember Marohn believes the Civil Service System is an archaic, cumbersome process which has delayed the hiring of officers. He reiterated the Human Resources (HR) Department will protect all employees. Councilmember Hally indicated the Police Department Citizens Review Committee (CRC) chairman had a considerable HR background, and the CRC very strongly recommended elimination of the Civil Service System. Mayor Casper believes development in HR allows a professional model/process. The elimination of the Civil Service System can allow for increased talents and skills. Councilmember Dingman stated Civil Service has been on her radar since being elected as a Councilmember. She believes the Police Department should be allowed to follow the most progressive hiring process as possible and rescission of the Civil Service System does not take away the employees ability to be heard. Mayor Casper stated this item will be included on April 13 Council Meeting agenda for the second reading. Code Enforcement Workshop: Mayor Casper recognized Councilmembers have expressed concern with code enforcement. She stated enforcement of City Code is the responsibility of several departments and any future changes may require budgetary adjustments. She expressed her appreciation to Director Cramer. Director Cramer reviewed several code enforcement locations and pictures of current/previous concerns/issues. He believes code enforcement is a tough position but he believes staff is performing well. He presented the following with general discussion throughout: Code Enforcement Goals – these goals (sensitive to resources and budget) were developed following community tours with the Councilmembers: Efficiency: reform the current code enforcement process for quicker results Current Process: Proposed Process: 1. Receive complaint 1. Receive complaint or proactively find violation 2. Conduct inspection 2. Conduct inspection (if not already complete) 3. Send letter with two-week deadline 3. Send letter with 10-14 day deadline or issue warning 4. Re-inspect 4. Re-inspect 5. Send letter with 10-day deadline 5. Issue infraction with financial penalty and send letter with 7-day deadline 6. Re-inspect 6. Re-inspect 7. Issue citation 7. Issue infraction with increased financial penalty and send letter with deadline 8. Begin court process 8. Re-inspect 9. Compliance ?? 9. Issue Citation 10. Begin court process Simplicity: move towards a “one-stop-shop” for code enforcement issues. Director Cramer stated not all nuisance items are related to code enforcement as there are four (4) divisions that handle nuisances. He realizes citizens can be frustrated with being passed around between departments. Proposed process: Call either the Police Department or Code Enforcement: each department will coordinate; Code Enforcement to take calls, conduct inspections, and send letters on weeds, trees blocking street signs, trees not trimmed above sidewalks. Parks to retain responsibility for cutting weeds and trees and any billing. Effectiveness: having the right tools in place to achieve compliance Low-cost options  Code changes – review existing nuisance codes, review other cities, address missing elements or vague wording, increase ability to enforce property maintenance  Procedural changes – change codified process, move initial complaint response on weeds/certain trees to Code Enforcement  Better coordination with other departments – coordinate with Police in neighborhoods, budget money to empty neighborhood cleanup dumpsters, take on activities from Parks through TRAKiT software system  Prioritization of codes and areas – write a plan to prioritize areas for proactive enforcement 4  April 10, 2017 Medium-cost options  Seasonal employees – propose to add additional seasonal employee  Software for gains in efficiency – TRAKiT software allows work in the field with electronic devices/letters, also allows for coordination with Parks Higher-cost options  Hiring of a Code Enforcement Clerk (more efficient option than hiring full-time officer). This would allow additional time in the field for officers.  Move full-time officer from CDBG (Community Development Block Grant) to general fund. This would allow more evenly shared responsibility of areas.  Hire building inspector for property maintenance code. This position would be split between property maintenance inspection, residential plan review, and regular building inspections. This would allow a succession plan for the current building inspector. General discussion followed including the lack of regular daycare facility inspections (as specified in City Code), snow removal (Police issue), building inspections (cannot address any permits if they were converted before the current building codes), and, broken sidewalks (Public Works offers programs to assist with sidewalks although Public Works has no authority to address curb and gutter issues). Chief McBride indicated parking violations are difficult to address due to the lack of staff and other priorities. Brief discussion followed regarding misdemeanors versus infractions and allocation of fines/fees received. Councilmember Dingman indicated an additional Code Enforcement Clerk was discussed in the March 18, 2017 budget workshop as a priority for CDSD. She believes there are repeat City Code offenders and any financial penalty should be addressed up front. She also believes the policy needs updated and stressed the importance for Community Development Services and the Police Department to work together. After brief comments from Mayor Casper, there was consensus of the Council to proceed with the no- cost/low-cost options. She advised Director Cramer to include the additional clerk into the CDSD budget. Director Cramer indicated he will follow up with the State regarding daycare inspections. Idaho Falls Redevelopment Agency (IFRdA): Mayor Casper introduced Lee Radford, Idaho Falls Redevelopment Agency Chairman. Mr. Radford expressed his appreciation to the City, the Public Works Department and Director Cramer. Mr. Radford stated the IFRdA focuses on urban renewal areas to reinvest any marginal tax base back into that particular area. He reviewed the Snake River urban renewal area, which is the oldest urban area. He indicated the property value in this area has increased from ~$15 million to ~$200 million since 1990, with a 28-year life span. He stated there is currently money available in that district/area to allow additional investment. Mr. Radford reviewed 5 (five) projects currently occurring in the Snake River area including the Bonneville Hotel (with The Housing Company, option to purchase), the Riverwalk Drive (adjacent to construction of Springhill Suites which will connect the intersection to the southern property), Indian Motorcycle (closely located to westside Walmart), Deseret Book (also closely located to westside Walmart), and, the Kelsch property (located at Memorial Drive and Broadway) with an underground/above ground parking structure proposed, including a splash pad. Mr. Radford stated additional urban renewal areas include River Commons (Snake River Landing area/Ball Ventures), Eagle Ridge (next to the freeway at the Pancheri overpass), and Candlewood Suites/Ball Packing area. He indicated the IFRdA is continually looking at other areas and is willing to assist where needed for renewal of areas. General discussion followed regarding the length of time allowed for urban renewal areas. Mr. Radford recognized additional IFRdA members Terri Gazdik, Kirk Larsen, Brent Thompson, Tom Hally, Dave Radford, and Chris Harvey. Mayor Casper reiterated the IFRdA is considering other locations/properties with assistance from Dana Briggs, the City’s Economic Development Coordinator. There being no further business, it was moved by Councilmember Marohn, seconded by Councilmember Radford, to adjourn the meeting at 5:58 p.m. and move into Executive Session. The Executive Session has been called pursuant to the provisions of Idaho Code Section 74-206(1)(f) To communicate with legal counsel for the public agency to discuss the legal ramifications of and legal options for pending litigation, or controversies not yet being litigated but imminently likely to be litigated. The mere presence of legal counsel at an executive session does not satisfy this requirement. At the conclusion of the Executive Session Councilmembers will not reconvene to Regular Work 5  April 10, 2017 Session. The Executive Session will be held in the City Hall Annex Conference Room. Roll call as follows: Aye – Councilmembers Radford, Ehardt, Smith, Marohn, Dingman, Hally. Nay – none. Motion carried. The City Council of the City of Idaho Falls met in Special Council Meeting (Executive Session), Monday, April 10, 2017, in the City Annex Conference Room in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 6:06 p.m. There were present: Mayor Rebecca L. Noah Casper Councilmember Ed Marohn Councilmember Thomas Hally Councilmember David M. Smith Councilmember John B. Radford Councilmember Barbara Ehardt Councilmember Michelle Ziel-Dingman Also present: Chris Fredericksen, Public Works Director Randy Fife, City Attorney Michael Kirkham, Assistant City Attorney The Executive Session has been called pursuant to the provisions of Idaho Code Section 74-206(1)(f) To communicate with legal counsel for the public agency to discuss the legal ramifications of and legal options for pending litigation, or controversies not yet being litigated but imminently likely to be litigated. The mere presence of legal counsel at an executive session does not satisfy this requirement. There being no further business, the meeting adjourned at 6:19 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 6