City Council

April 13, 2017 The City Council of the City of Idaho Falls met in Regular Council Meeting, Thursday, April 13, 2017, in the Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 7:30 p.m. Call to Order: There were present: Mayor Rebecca L. Noah Casper Councilmember Michelle Ziel-Dingman Councilmember David M. Smith Councilmember Ed Marohn Councilmember Barbara Ehardt Councilmember Thomas Hally Councilmember John B. Radford Also present: Randy Fife, City Attorney Kathy Hampton, City Clerk All available department directors Pledge of Allegiance: Mayor Casper invited Jacob Rich, a junior at Compass Academy School, to lead those present in the Pledge of Allegiance. Public Comment: Mayor Casper requested any public comment not related to items on the agenda. No one appeared. Consent Agenda: Office of the Mayor requested approval of Rachel McMurtrey as a new appointment to the Historic Preservation Commission. Municipal Services requested approval of Bid IF-17-04, Replacement Reel and Rough Mowers, and Bid IF-17-10, Replacement Backhoe Loader. Idaho Falls Power requested approval to ratify Power Transactions with Shell Energy. Parks and Recreation requested approval of Community Gardens Agreement. Public Works requested approval of Bid Award – 7th Street Water Line Replacement, Bid Award – Holmes Avenue Water Line Construction Castlerock Lane to 49th South, Bid Award – Seal Coats 2017, and Mediation Compromise and Settlement Agreement with Ron Tyler Bird (Grandview Drive roadway widening project). The City Clerk requested approval of Expenditure Summary for the month of March, 2017. FUND TOTAL EXPENDITURE General Fund $2,175,031.68 Street Fund 53,381.49 Recreation Fund 48,274.25 Library Fund 80,550.71 Municipal Equipment Replacement Fund (MERF) 10,000.00 Electric Light Public Purpose Fund 2,621.22 1  April 13, 2017 Golf Fund 139,553.31 Self-Insurance Fund 93,805.35 Municipal Capital Improvement Fund 85,522.50 Parks Capital Improvement Fund 21,477.76 Fire Capital Improvement Fund 33,054.10 Airport Fund 162,468.60 Water and Sewer Fund 511,683.43 Sanitation Fund 7,820.62 Ambulance Fund 114,147.09 Electric Light Fund 3,122,752.03 Payroll Liability Fund 3,718,685.67 TOTAL $10,380,829.81 The City Clerk requested approval of Treasurer’s Report for the month of March, 2017, minutes from the March 18, 2017 Budget Workshop; March 20, 2017 Council Work Session; March 23, 2017 Idaho Falls Power Board Meeting; and March 23, 2017 Council Meeting, and, license applications, all carrying the required approvals. It was moved by Councilmember Marohn, seconded by Councilmember Radford, to approve all items on the Consent Agenda according to the recommendations presented. Roll call as follows: Aye – Councilmembers Hally, Marohn, Radford, Dingman, Smith, Ehardt. Nay – none. Motion carried. Regular Agenda: Human Resources Subject: Rescission of the City of Idaho Falls Civil Service System The Human Resources Department respectfully requests approval of an ordinance rescinding the Civil Service System of Idaho Falls, and, that upon passage the ordinance be read in its entirety pursuant to Idaho Code. Councilmember Hally stated this item has been discussed for several years but has been delayed due to personnel changes. He indicated Mr. Fife has performed a State-wide research, indicating no cities in excess of 10,000 population follow the Civil Service System. He believes the system does not allow the City to hire and interview the best qualified persons. He stated this will be a cost reduction for the Police Department as there has been increasingly excessive overtime costs for the previous years. Councilmember Ehardt believes to presume the City is not able to hire the best people would be to presume those we have are not the best people. She also believes the timing of the proposed rescission and the three (3) concurrent readings has prevented any comments from those involved. It was moved by Councilmember Hally, seconded by Councilmember Marohn, to approve the ordinance rescinding Title 2, Chapter 4, on the second reading only and that the ordinance be read in its entirety. Roll call as follows: Aye – Councilmembers Radford, Smith, Marohn, Dingman, Hally. Nay – Councilmember Ehardt. Motion carried. At the request of Mayor Casper, the City Clerk read the ordinance title and enacting clauses: ORDINANCE NO. ---- AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, RESCINDING TITLE 2, CHAPTER 4, GOVERNING CIVIL SERVICE PRACTICES FOR CITY EMPLOYEES; RESCINDING ALL CIVIL SERVICE RULES AND PROCEDURES PROMULGATED THEREUNDER; PROVIDING FOR SEVERABILITY, CODIFICATION, PUBLICATION BY SUMMARY, AND ESTABLISHING EFFECTIVE DATE. 2  April 13, 2017 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF IDAHO FALLS, IDAHO, THAT: SECTION 1. Title 2, Chapter 4, of the City Code of the City of Idaho Falls, Idaho, and all civil service rules and procedures promulgated thereunder, are hereby rescinded in their entirety, pursuant to Idaho Code Section 50- 1601(B). SECTION 2. The rescission of Title 2, Chapter 4, of the Idaho Falls City Code (and all civil service rules and procedures promulgated thereunder) is not intended to and shall not have any adverse effect on any negotiated agreement between the City of Idaho Falls and Idaho Falls Firefighters Union Local No. 1565, or the rights contained in such an agreement or agreements. SECTION 3. Savings and Severability Clause. The provisions and parts of this Ordinance are intended to be severable. If any section, sentence, clause, or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this Ordinance. SECTION 4. Codification Clause. The City Clerk is instructed to immediately forward this Ordinance to the codifier of the official municipal code for proper revision of the Code. SECTION 5. Publication. This Ordinance, or a summary thereof in compliance with Idaho Code, shall be published once in the official newspaper of the City, and shall take effect immediately upon its passage, approval, and publication. SECTION 6. Effective Date. This Ordinance shall be in full force and effect from and after its passage, approval, and publication. Second Reading passed by the City Council and approved by the Mayor of the City of Idaho Falls, Idaho, this 13th day of April, 2017. City of Idaho Falls, Idaho Rebecca L. Noah Casper, Mayor Mayor Casper stated the reading in entirety is required by State Statute. Idaho Falls Power Subject: Amend Contract with Battelle Energy Alliance for De-energization Work at Buildings in Idaho Falls On December 9, 2013, City Council approved an agreement with Battelle Energy Alliance (BEA) for Idaho Falls Power (IFP) staff to isolate, de-energize, and re-energize high voltage components on BEA facilities in Idaho Falls. BEA has requested an amendment to this contract related to the scope of work. Councilmember Smith believes IFP has an exceptional workforce. It was moved by Councilmember Smith, seconded by Councilmember Hally, to approve the contract amendment with BEA, and give authorization for the Mayor to execute the necessary documents. Roll call as follows: Aye – Councilmembers Radford, Ehardt, Hally, Smith, Marohn, Dingman. Nay – none. Motion carried. Subject: Approve Pole Attachment License Agreement with Blackfoot Communications 3  April 13, 2017 Idaho Falls Power has received a request from Blackfoot Communications to attach communication infrastructure to power poles. As a Blackfoot Communications subsidiary, Fremont Communication is an internet service provider who has leased a pair of fiber from the City since the early 2000’s. Councilmember Smith stated a standard pole agreement is used which has been published and approved by the APPA (American Public Power Association). It was moved by Councilmember Smith, seconded by Councilmember Hally, to approve the Pole Attachment License Agreement with Blackfoot Communications, and give authorization for the Mayor to execute the necessary documents. Roll call as follows: Aye – Councilmembers Marohn, Dingman, Ehardt, Hally, Radford, Smith. Nay – none. Motion carried. Subject: Resolution Amending the Idaho Falls Power Service Policy For your consideration is a resolution adopting modifications to the Idaho Falls Power Service Policy. The revisions incorporate language related to the electric vehicle charging station and update provisions associated with meter placement and customer generation. Director Flowers stated this is an annual update to the Service Policy which identifies technical requirements for IFP customers. She indicated an electric vehicle charging station has been added to the policy which identifies specification requirements. The customer will be able to control the charging abilities and demand rate charging times, IFP would maintain the monthly fee charged. Any associated fees will be included in the next budget year. Director Flowers indicated future changes in technology will be considered. Councilmember Smith stated this item was discussed at length at the April 13, 2017 IFP Board Meeting. He believes the adoption of the policy will provide a nice service to citizens. At the request of Councilmember Radford, Director Flowers reviewed the Tesla charging stations. She indicated these charging stations are located at appropriate distances within the State, including one (1) station at Snake River Landing which has been functional since June 2016. It was moved by Councilmember Smith, seconded by Councilmember Hally, to approve the Resolution amending the Idaho Falls Power Service Policy, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Ehardt, Marohn, Hally, Radford, Smith, Dingman. Nay – none. Motion carried. RESOLUTION NO. 2017-12 A RESOLUTION OF THE CITY OF IDAHO FALLS, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO, ADOPTING THE MODIFIED IDAHO FALLS POWER SERVICE POLICY (2017), AND PROVIDING THAT THIS RESOLUTION BE EFFECTIVE UPON ITS PASSAGE, APPROVAL AND PUBLICATION ACCORDING TO LAW. Public Works Subject: Bid Award – Wastewater Treatment Plant Primary Treatment Upgrades On April 4, 2017, bids were received and opened for the Wastewater Treatment Plant (WWTP) Primary Treatment Upgrades project. Public Works recommends approval of the plans and specifications, award to the lowest responsive, responsible bidder, RSCI, an amount of $10,354,000.00. Councilmember Ehardt stated improvements to the WWTP have been ongoing for previous several years. She indicated funding has been set aside for several years for this project. 4  April 13, 2017 It was moved by Councilmember Ehardt, seconded by Councilmember Dingman, to approve of the plans and specifications and award to the lowest responsive, responsible bidder, RSCI, an amount of $10,354,000.00 Roll call as follows: Aye – Councilmembers Dingman, Radford, Marohn, Smith, Hally, Ehardt. Nay – none. Motion carried. Subject: Right-of-Way Use Agreement – Blackfoot Communications For consideration is a Right-of-Way Use Agreement for Blackfoot Communications to install fiber optics in public right-of-way. Mayor Casper stated this agreement is in conjunction with the Pole Attachment License Agreement with Idaho Falls Power. It was moved by Councilmember Ehardt, seconded by Councilmember Dingman, to approve the Right-of-Way Use Agreement for Blackfoot Communications, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Radford, Ehardt, Smith, Marohn, Dingman, Hally. Nay – none. Motion carried. Subject: Revised Development Agreement – Freeway Commercial Center Subdivision, Divisions 1-3 For consideration is a revised Development Agreement for Freeway Commercial Center Subdivision, Divisions 1, 2, and 3. The revisions included within the agreement allow for changes to public improvements requested by the developer and ensures that public interests are being met. Councilmember Ehardt indicated this location is known as the property surrounding Camping World. Director Fredericksen stated modifications to the agreements include the additions of a convenient store and storage buildings. He indicated public streets and associated amenities will no longer be needed. He anticipates a future vacation request for easement and right-of-ways. It was moved by Councilmember Ehardt, seconded by Councilmember Dingman, to approve the revised Development Agreement for Freeway Commercial Center Subdivision, Divisions 1-3, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Hally, Smith, Dingman, Ehardt, Marohn, Radford. Nay – none. Motion carried. Community Development Services Subject: Request for Electric Line Extension Fee Waiver, Deseret Book For consideration is a request to waive electric line extension fees for the proposed Deseret Book located at 750 Pioneer Road in the amount of $17,925.78. The site is within the geographic area defined by Resolution 2016-29 for consideration of such fee waivers. It is also located within the Snake River Urban Renewal District. Staff recommends approval of the waiver. Councilmember Dingman stated the developer has paid the extension fees to ensure there was no delay to the development. She indicated the City will reimburse the developer upon approval. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to waive electric line extension fees for the proposed Deseret Book, located at 750 Pioneer Road, in the amount of $17,925.78. Roll call as follows: Aye – Councilmembers Smith, Hally, Radford, Dingman, Ehardt, Marohn. Nay – none. Motion carried. Subject: Final Plat and Reasoned Statement of Relevant Criteria and Standards, Westgate Addition Division No. 1, Second Amended 5  April 13, 2017 For consideration is the application for Final Plat and Reasoned Statement of Relevant Criteria and Standards, Westgate Addition Division No. 1, Second Amended. The Planning and Zoning Commission considered this item at its March 7, 2017 meeting and recommended approval by unanimous vote. Staff concurs with this recommendation. Councilmember Dingman stated this property was platted and annexed in 1972. This item is to correct the lot splits. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to accept the Final Plat for Westgate Addition Division No. 1, Second Amended, and give authorization for the Mayor, City Engineer, and City Clerk to sign said Final Plat. Roll call as follows: Aye – Councilmembers Dingman, Smith, Marohn, Ehardt, Hally, Radford. Nay – none. Motion carried. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Reasoned Statement of Relevant Criteria and Standards for the Final Plat for Westgate Addition Division No. 1, Second Amended, and give authorization for the Mayor to execute the necessary documents. Roll call as follows: Aye – Councilmembers Marohn, Dingman, Ehardt, Hally, Radford, Smith. Nay – none. Motion carried. Subject: Public Hearing – Zoning Ordinance Amendment to Allow Short-term Rentals For consideration is an ordinance amending the current Zoning Ordinance to permit short-term rentals in the City of Idaho Falls. The Planning and Zoning Commission considered this ordinance at its March 7, 2017, meeting and recommended approval with consideration of amending the definition of a short-term rental to more closely align with the State's definition and removing "bed and breakfast" from the definition of a lodging facility. This recommendation passed by an 8-1 vote. Staff concurs with this recommendation. Mayor Casper opened the public hearing and ordered all information presented be entered into the record. Director Cramer stated due to several upcoming summer events and numerous complaints/occurrences of short- term rentals, Community Development Services Department (CDSD) has taken a slow approach to this subject. He recognized the efforts of Kerry Beutler, Planning Director, and other CDSD staff for their numerous hours dedicated to this subject. He reviewed the timeline as follows: December 2016: City Council instructs staff to work on ordinance. January 2017: Staff holds open house at library, conducts online survey. Each are advertised through press release, social media and City’s website. Director Cramer indicated approximately 700 respondents were received. He stated staff also met with the Idaho Falls Auditorium District as well as the Lodgers Association (those who manage hotel/motels). January-February 2017: Staff analyzes open house and survey results, compiles information from other cities, drafts ordinance for consideration. Director Cramer indicated most responses were in favor of short-term rentals with associated regulations. March 2017: Planning and Zoning (P&Z) Commission hearing. Planning and Zoning recommends approval of ordinance with a change in the definition of short-term rentals to match proposed State definition and to remove “bed and breakfast” from definition of a lodging facility. Director Cramer stated the P&Z requested additional time although he believes the schedule needed to be accelerated due to the upcoming summer activities. March-April 2017: Staff revises ordinance. State Legislature passes bill restricting local jurisdictions from prohibiting short-term rentals entirely. Director Cramer reviewed section of State Code 67-6539, addressing limitations on regulation of short-term rentals and vacation rentals per the Local Land Use Planning Act (LLUPA), which states neither a county nor a city may enact or enforce any ordinance that has the express or practical effect of prohibiting short-term rentals or vacation rentals throughout the jurisdiction of such county or city. Notwithstanding the foregoing prohibition, a county or city may implement such reasonable regulations as it deems necessary to safeguard the public health, safety and general welfare in order to protect the integrity of residential neighborhoods in which short-term rentals or vacation rentals operate. A short-term rental or vacation rental shall be classified as a residential land use for zoning purposes subject to all zoning requirements applicable thereto. 6  April 13, 2017 Director Cramer stated the proposed ordinance would allow short-term rentals in any zone that allows a residential use, they would not be allowed in all zones. He indicated Council has the opportunity to discuss additional regulations and can also limit short-term rentals to specific residential zones. Director Cramer believes the current City Code would not align with the recently passed State Code regarding the definition of a hotel. He reviewed the proposed ordinance Definitions 10-3-3 stating hotel has been rewritten as a lodging facility. Bed and Breakfast, recreational vehicle parks, and short-term rentals have been excluded as lodging facilities. The definition of Bed and Breakfast would prohibit turning a Bed and Breakfast into a short-term rental. Short-term rental has been changed to align State definition. Director Cramer reviewed 10-3-5: Effects of Supplementary Regulations, stating zoning requirements only allow one (1) family dwelling and will prohibit any accessory structures from becoming a secondary residence as a short-term rental; regulations would not allow short-term rental in any recreational vehicle except when located in an approved travel trailer court; and, a short-term rental property shall not be occupied by more than one (1) guest party at a time. He stated the proposed ordinance does not include registration or licensing process as this would require additional staff and methods for tracking. He indicated the use/activities on the property would continue as a residential use. He also stated the proposed ordinance does not include extra regulations such as parking requirements, exiting signs, and other fire and safety features as the current Building Code will trigger those additional changes. Director Cramer stated at the P&Z public hearing a coalition of short- term renters made a compelling reason why short-term rentals are good for revitalization in a neighborhood. He also stated certain residents were opposed to short-term rentals as they believed their neighborhoods did not need revitalization. He indicated those neighborhoods who may or may not need revitalization are in the same R1, RP or RPA zone. Director Cramer reiterated only one dwelling unit is allowed per zone and dwelling should not be occurring in any garages or assessory structures. Councilmember Ehardt stated any ordinance could be amended as needed. Director Cramer concurred, stating ordinances are reviewed annually. Mr. Fife stated it is best practice to parallel City Code language to State Code to prevent future litigation. He believes the City Code is legally compatible when the State Code goes into effect in January 2018. At the request of Mayor Casper, Director Cramer confirmed upon passage of the proposed ordinance the availability of Bed and Breakfast would not be allowed in any zone. He stated the current code addresses home-based businesses. Mayor Casper requested any public comment. Nancy Boland, E. 14th Street, appeared. Ms. Boland stated she is the spokesperson for the short-term rental support and advocacy group of Idaho Falls. Collectively, their historic neighborhoods are home to 15 of the 38 regularly operating units for short-term rentals within Idaho Falls city limits. The group is in favor of the ordinance allowing short-term rentals in Idaho Falls. They have been working on education and advocacy for the previous six (6) months and have supplied much of the written documentation. Ms. Boland presented a short video in lieu of separate testimonies that accurately represent their views regarding this ordinance. She hopes to strongly convey short-term rentals are an asset to City residents, local businesses, and visitors regardless of the length of their stays. She expressed her appreciation to Compass Academy students, Jacob Rich and Rigo Garcia, for the creation of the video. Those who are represented in the video include: Nancy and George Boland Pam and Bob Chase Alex and Elise Hart Liza McGeachin and Graham Jones Courtney and Jason Parmenter Hersh Mynarcik Stephanie Rose and Bill Bauer Harriet Smith Tyler Kraupp R. Bryce Call Harriet Smith, Shamrock Park, appeared. Ms. Smith stated she, and her husband, purchased their home approximately one (1) year ago and have invested a lot of money into their home. It was suggested they start Airbnb, which she was unfamiliar with, and tried it for several weeks. She indicated problems in the neighborhood began so she decided to wait until the City made a decision regarding short-term rentals. She stated during that 7  April 13, 2017 timeframe of operating Airbnb she, and her husband, had some fabulous experiences. She is in favor of the proposed ordinance. Frank Bradburn, Dickson Avenue, appeared. Mr. Bradburn requested clarification of the 30-day timeframe. He indicated Airbnb located in Boise has been collecting the appropriate taxes. He reviewed the State code regarding taxes and requested clarification of this item as well. He believes there is a concern with collection of auditorium taxes. Cindy Ozaki, Executive Director of the Idaho Falls Auditorium District, appeared. Ms. Ozaki clarified only Boise is allowed to collect Auditorium District taxes per State Code. Pocatello and Idaho Falls are collecting their Auditorium Districts taxes independently. She stated only the tourism taxes and sales taxes are being collected for Idaho Falls. Ms. Ozaki indicated the first person operating a short-term rental has recently paid their taxes into the Auditorium District. She requested all those who may be operating short-term rentals in the City of Idaho Falls register with the Auditorium District to pay appropriate taxes and comply with the same rules as hotels. Ginger Swank, Enell Street, appeared. Ms. Swank stated she has been advocating for her neighborhood, an RPA zone, for several months regarding zoning issues. She indicated this has been a challenge with regard to boarding houses and short-term rentals. She expressed concern that short-term rentals would take away the character of the neighborhood. She is not against short-term rentals but believes they should be located in high-density neighborhood zones which allow a separate unit and entrance. Ms. Swank also expressed concern regarding the safety of the neighborhood with regard to transient housing of neighbors. She requested consideration allowing short-term rentals in RP and RPA zones. She indicated revitalization does not and would not occur in her neighborhood. Mayor Casper closed the public hearing. Councilmember Dingman expressed her appreciation to staff and the P&Z Commission and is pleased with the final process. She indicated her priority included boarding houses, which has been addressed. She does not believe the need exists for further regulations at this time. Councilmember Dingman recommended parking concerns be addressed with the Idaho Falls Police Department as she believes long-term rentals as well as short-term rentals are occurring within every City neighborhood and most property owners are unaware of individual vehicle ownership. She believes there are positive outcomes with short-term rentals and the proposed ordinance allows the right balance for regulation and property owner freedom. Councilmember Smith indicated the State has not given cities the ability to levy sales tax, auditorium tax or other revenue-type taxes. Councilmember Hally stated he has lived next to problem neighbors and believes short-term rental property owners will take care of each other. He also believes the proposed ordinance should mirror State Code as much as possible. Councilmember Marohn expressed his appreciation to Ms. Boland and the advocacy group and believes it is beneficial to be unified. After further review of the concept, he believes this is a good process economically. He stated the State has deemed short-term rentals out of the City control with the exception of nuisances. Councilmember Radford expressed his appreciation to Director Cramer and his staff. He believes it’s important to stay involved regarding enforcement issues. Councilmember Ehardt stated she supports property rights and believes it’s important to allow latitude for property owners/rights. She believes any concerns will be addressed through current code enforcement, although Councilmembers have the ability to address additional concerns/issues. She expressed her appreciation to the advocacy group for educating the community. Councilmember Smith concurred with Councilmembers Marohn and Ehardt regarding property ownership rights issue. He believes the property owners rights within reason are protected with existing ordinances. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the zoning ordinance amendment under the suspension of the rules requiring three complete and separate readings and that it be read by title and published by summary. Roll call as follows: Aye – Councilmembers Smith, Hally, Dingman, Radford, Ehardt, Marohn. Nay – none. Motion carried. At the request of Mayor Casper, the City Clerk read the ordinance by title only: 8  April 13, 2017 ORDINANCE NO. 3114 AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, AMENDING TITLE 10, CHAPTER 3, TO DEFINE AND REGULATE BED AND BREAKFASTS, LODGING FACILITIES, AND SHORT TERM RENTALS WITHIN CITY LIMITS; PROVIDING SEVERABILITY, PUBLICATION BY SUMMARY, AND ESTABLISHING EFFECTIVE DATE. Mayor Casper expressed her appreciation to City staff as well as the community members. There being no further business it was moved by Councilmember Marohn, seconded by Councilmember Hally, to adjourn the meeting at 9:22 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 9