City Council

July 13, 2017 The City Council of the City of Idaho Falls met in Regular Council Meeting, Thursday, July 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 David M. Smith Councilmember Thomas Hally Councilmember Michelle Ziel-Dingman Councilmember John B. Radford Councilmember Barbara Ehardt Councilmember Ed Marohn Also present: Kerry Hammon, Public Information Officer Randy Fife, City Attorney Kathy Hampton, City Clerk All available department directors Pledge of Allegiance: Mayor Casper invited Steve Earl, Board/Council Member from the Grand Teton Council of the Boy Scouts of America, to lead those present in the Pledge of Allegiance. At the request of Mayor Casper, it was moved by Councilmember Dingman, seconded by Councilmember Hally, to amend the Regular Agenda item 5.D.4) Community Development Services, Final Plat and Reasoned Statement of Relevant Criteria and Standards, Belmont Estates Division No. 2 to include the Development Agreement and Water Use and Assessment Agreement. The Good Faith reason for this amendment is the agreements should have been included with this item and were inadvertently omitted. Roll call as follows: Aye – Councilmembers Hally, Smith, Dingman, Ehardt, Marohn, Radford. Nay – none. Motion carried. Public Comment: Mayor Casper requested any public comment not related to items on the agenda or noticed for a public hearing. No one appeared. Consent Agenda: Office of the Mayor requested appointment of Chief of Police, Bryce Johnson. Municipal Services requested approval of Bid IF-17-S, Hot Asphalt Mix; and Bid IF-17-05, Street Sweepers. Idaho Falls Power requested approval to ratify power transactions with Shell Energy; and, Enabling Agreement with Bonneville Power Administration (BPA), No. 17PM-14274. The City Clerk requested approval of minutes from the May 25, 2017 Idaho Falls Power Board Meeting; June 19, 2017 Council Work Session; June 19, 2017 Special Council Meeting; and June 29, 2017 Public Works Utility 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 Radford, Ehardt, Hally, Smith, Marohn, Dingman. Nay – none. Motion carried. 1  July 13, 2017 Regular Agenda: Municipal Services Subject: Consent to Grand Teton Council to Sublease The Grand Teton Council is currently under a 25-year building lease with the City located at 574 4th Street. Section 5 of the lease agreement provides for the Grand Teton Council to sublease the property with prior consent of the City. The Grand Teton Council is requesting consent from the City to sublease the building to Best Foot Forward, a non-profit performing arts group. The proposed lease term is one year, beginning August 1, 2017 and ending July 30, 2018 for $910.00 per month. Councilmember Hally believes there are legal concerns that were not fully discussed regarding this item. It was moved by Councilmember Hally, seconded by Councilmember Marohn, to table the item from the agenda to allow additional time for discussion, including legal principles established by State Code. Councilmember Hally amended his motion to indicate this item will be tabled until the first Work Session in August. Roll call as follows: Aye – Councilmembers Hally, Smith, Dingman, Ehardt, Marohn, Radford. Nay – none. Motion carried. Subject: Civic Auditorium Professional Services Agreement Renewal The Municipal Services Department is requesting approval of the professional services agreement between the City of Idaho Falls and Idaho Falls Arts Council (IFAC) for a renewal period of one year in the amount of $65,000. City Council approved the original agreement on May 16, 2016 for a one-year term. The agreement includes event management, booking services, marketing, and other professional management services. Councilmember Marohn believes the agreement with the IFAC has been very helpful in developing the Civic Auditorium plans. He stated the funds are within the 2016/17 Municipal Services budget and are also included in the 2017/18 proposed budget. It was moved by Councilmember Marohn, seconded by Councilmember Smith, to approve the professional services agreement with the Idaho Falls Arts Council for a renewal period of one year in the amount of $65,000. Roll call as follows: Aye – Councilmembers Ehardt, Marohn, Hally, Radford, Smith, Dingman. Nay – none. Motion carried. Subject: Professional Services and Software Agreement with AssetWorks The Municipal Services Department is requesting approval to piggyback the General Services Administration (GSA) contract GS-35F-317GA with AssetWorks, LLC to purchase software and professional services to implement the FleetFocus asset and maintenance application. The total contract amount request is $124,987.84. The contract total includes estimated travel expenses for project on-site work of $8,000 and may fluctuate based on the project milestones. City staff has researched various vendors and has recommended the application to electronically manage over 780 vehicles and equipment. Councilmember Marohn stated AssetWorks is a nationally recognized leader in the asset and maintenance application that provides technology to organizations to eliminate the paper flow. This application will integrate into the Cayenta system as Municipal Services Director Pamela Alexander stated the current system, HTE, will be discontinued. Funding is included within the 2016/17 Municipal Equipment Replacement Fund (MERF) budget and is also included in the 2017/18 proposed budget. General discussion followed regarding the 2016/17 funding. It was moved by Councilmember Marohn, seconded by Councilmember Radford, to approve the professional services and software agreement with AssetWorks, LLC in the amount of $124,987. Roll call as follows: Aye – Councilmembers Dingman, Radford, Marohn, Hally, Ehardt. Nay – Councilmember Smith. Motion carried. 2  July 13, 2017 Public Works Subject: Easement Vacation Request – Valencia Park Addition Division No. 2 As authorized on June 19, 2017 the City Attorney has prepared the document to vacate a portion of the access easement on Valencia Park Addition Division No. 1. The official plat designated an alternate access easement, therefore, ingress and egress on the property is preserved. It was moved by Councilmember Ehardt, seconded by Councilmember Dingman, to approve the ordinance vacating a portion of the access easement on Valencia Park Addition Division No. 1 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 Radford, Ehardt, Smith, Marohn, Dingman, Hally. Nay – none. Motion carried. At the request of Mayor Casper, the City Clerk read the ordinance by title only: ORDINANCE NO. 3124 AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO, PROVIDING FOR THE VACATION OF AN ACCESS AND PUBLIC UTILITY LINE EASEMENT LOCATED WITHIN THE CITY OF IDAHO FALLS AND LEGALLY DESCRIBED IN SECTION 1 OF THIS ORDINANCE; PROVIDING THAT TITLE TO SAID VACATED ACCESS AND PUBLIC UTILITY LINE EASEMENT SHALL VEST AS SPECIFIED IN SECTION 3 OF THIS ORDINANCE; PROVIDING THAT THIS ORDINANCE SHALL BE IN FULL FORCE AND EFFECT FROM AND AFTER PASSAGE, APPROVAL, AND PUBLICATION ACCORDING TO LAW. Subject: Bid Rejection – Eastside Greenbelt Pathway – Pancheri Drive to West Broadway On July 6, 2017 bids were received an opened for the Eastside Greenbelt Pathway – Pancheri Drive to West Broadway project. A single responsive bid was received in the amount of $247,444 which exceeds the budgeted amount and was 122% of the Engineer’s Estimate. Public Works Director Chris Fredericksen indicated the bid specified the construction would be completed before the winter weather, realizing contractors are busy during the construction season. He is anticipating turn around of the bid to be completed in fall or spring. The funding would be encumbered if the project is not completed until spring. It was moved by Councilmember Ehardt, seconded by Councilmember Dingman, to reject the bid for Eastside Greenbelt Pathway – Pancheri Drive to West Broadway, and that notice of such be sent to the bidder. Roll call as follows: Aye – Councilmembers Hally, Smith, Dingman, Ehardt, Marohn, Radford. Nay – none. Motion carried. Fire Department Subject: Agreement with Union, Local 1565 For consideration is the negotiated agreement with Union, Local 1565 and the City of Idaho Falls. The overall agreement reflects the last 5 months of negotiation and includes a 1% wage increase, and a post employee Medical Expense Reimbursement Plan (MERP). This agreement is for approximately one year and will expire on April 30, 2018. The financial terms of the agreement will go into effect at the beginning of the 2017/2018 budget year. Councilmember Marohn stated all guidelines were met per the Council direction. It was moved by Councilmember Marohn, seconded by Councilmember Radford, to approve the agreement with Union, Local 1565, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll 3  July 13, 2017 call as follows: Aye – Councilmembers Smith, Hally, Radford, Dingman, Ehardt, Marohn. Nay – none. Motion carried. Community Development Services Subject: Resolution Adopting the FY2017 Community Development Block Grant (CDBG) Annual Action Plan (AAP) For consideration is a resolution adopting the FY2017 CDBG AAP. The AAP describes how each year’s CDBG dollars will be allocated. The public hearing for this year’s AAP was held December 8, 2016 with a public comment period open until January 9, 2017. Final approval of the AAP was delayed until the United States Department of Housing and Urban Development (HUD) released its allocations for the grants. Councilmember Dingman stated due to the amount of federal funding being reduced by $6,424, staffs recommendation was to reduce the award to the Idaho Falls Downtown Development Corporation (IFDDC) for facade improvements. She stated the IFDDC application was higher this year with the expectation that funds would go towards the Bonneville Hotel Project. However, the Housing Company, who is working on the Bonneville Hotel, has chosen not to use any CDBG funds. This adjustment still gives IFDDC more funding than in previous years while not affecting other projects. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the resolution adopting the FY2017 Community Development Block Grant Annual Action Plan, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Dingman, Smith, Marohn, Ehardt, Hally, Radford. Nay – none. Motion carried. RESOLUTION NO. 2017-18 A RESOLUTION OF THE CITY OF IDAHO FALLS, IDAHO, FISCAL YEAR 2017 CDBG ANNUAL ACTION PLAN. Subject: Resolution Determining Eligibility of Jackson Hole Junction for an Urban Renewal Project and Authorizing the Idaho Falls Redevelopment Agency to Prepare an Urban Renewal Plan For consideration is a resolution which determines that the land intended to be developed as Jackson Hole Junction is eligible for an urban renewal project and authorizes the Idaho Falls Redevelopment Agency (Agency) to proceed with preparing an urban renewal plan for the area. The Agency reviewed the eligibility report for this area at its June 20, 2017 meeting and approved it by resolution. Pursuant to Idaho Code 50-2008 the Mayor and City Council must, by resolution, determine the area qualifies for an urban renewal project before a plan can be created and approved. If approved, the Agency intends to proceed with development of a plan for the area with a limited scope and timeline for projects in the area. Community Development Services Director Brad Cramer stated Meghan Conrad, Attorney with Elam & Burke (Boise), Legal Counsel for the Idaho Falls Redevelopment Agency (IFRdA), is attending by phone. He also recognized the attendance of Phil Cushman, Cushman and Associates. Director Cramer stated the Urban Renewal District creates a revenue allocation area that allows the IFRdA to collect tax increment dollars. Any increase of the tax baseline would be allocated to the IFRdA to assist with projects identified in an Urban Renewal Plan. He stated there are a number of steps in order to create an Urban Renewal District including an eligibility report specifying one (1) of 14 criteria must be met to make a site eligible. Once the IFRdA reviews and approves the report, the report is then presented to the Council for acceptance and approval by resolution. The resolution authorizes the creation of an Urban Renewal Plan which outlines the projects and includes the financial feasibility report. Once that plan is completed it must be approved by the IFRdA, the Planning and Zoning (P&Z) Commission, and approved a second time by the City Council. Once the plan is approved and the district established, final steps include defining the taxing entities. 4  July 13, 2017 Director Cramer then presented the following: Slide 1 – Aerial photo of property under consideration Director Cramer stated this property is unique for the IFRdA to consider as an Urban Renewal District as most sites have been located toward the City's core, which are older and have aging infrastructure. Slide 2 – Geotechnical rock depth map Director Cramer reviewed the map stating there is a shallow basalt on this site. Slide 3 – Conceptual site plan/roadway network Slide 4 – Site plan/rock depth overlay Director Cramer stated there have been several discussions regarding Sunnyside Road and the access points in proximity to the interstate. Therefore, Idaho Transportation Department (ITD) has dictated the access points to this property. Sewer and main water lines will also follow the roadway. Slide 5 – Photos indicating the 12 criteria have been met Director Cramer stated the Comprehensive Plan shows the area as commercial. The current properties are not suited for and many structures are not safe. Slide 6 – Photos indicating roadway turns on pioneer Drive Director Cramer stated these are inadequate road patterns. These County roads do not meet City standards and are inadequate for the amount of potential traffic for proposed projects within this area. Slide 7 – Photos indicating narrow streets and deteriorating areas, which are also inadequate for the proposed projects within this area Slide 8 – 14 Eligibility requirements Councilmember Hally stated the developer has paid a considerable expense for these reports related to development of the project. Director Cramer concurred, stating the developer is responsible for the upfront costs. To the response of Councilmember Marohn, he also stated, by State Statutes, the timeframe for development cannot be longer than 20 years. He indicated there are timeline goals to have all steps completed before year end to allow the tax be retroactive from the first of year. Brief discussion followed regarding other Urban Renewal Districts and the scrutiny of the State. Councilmember Dingman reiterated the importance of this location as an entrance to the City of Idaho Falls. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the resolution determining that the land intended to be developed as Jackson Hole Junction is eligible for an urban renewal project, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Marohn, Dingman, Ehardt, Hally, Radford, Smith. Nay – none. Motion carried. RESOLUTION NO. 2017-19 A RESOLUTION OF THE CITY OF IDAHO FALLS, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO, DETERMINING A CERTAIN AREA WITHIN THE CITY TO BE A DETERIORATED OR DETERIORATING AREA AS DEFINED BY IDAHO CODE SECTIONS 50-2018(9) AND 50-2903(8); DIRECTING THE URBAN RENEWAL AGENCY OF IDAHO FALLS TO COMMENCE THE PREPARATION OF AN URBAN RENEWAL PLAN SUBJECT TO CERTAIN CONDITIONS, WHICH PLAN MAY INCLUDE REVENUE ALLOCATION PROVISIONS FOR ALL OR PART OF THE AREA; AND PROVIDING THAT THIS RESOLUTION BE EFFECTIVE UPON ITS PASSAGE, APPROVAL, AND PUBLICATION ACCORDING TO LAW. Subject: Final Plat and Reasoned Statement of Relevant Criteria and Standards, Growth Center Addition Division No. 1, 2nd Amended For consideration is the application for Final Plat and Reasoned Statement of Relevant Criteria and Standards, Growth Center Addition Division No. 1, 2nd Amended. The Planning and Zoning Commission considered this application at its June 6, 2017 meeting and recommended approval by unanimous vote. Staff concurs with this recommendation. 5  July 13, 2017 Councilmember Dingman stated this is a small parcel, consisting of approximately 1/2 acre. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to accept the Final Plat for Growth Center Addition Division No. 1, and give authorization for the Mayor, City Engineer, and City Clerk to sign said Final Plat. Roll call as follows: Aye – Councilmembers Smith, Hally, Dingman, Radford, Ehardt, Marohn. 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 Growth Center Addition Division No. 1, and give authorization for the Mayor to execute the necessary documents. Roll call as follows: Aye – Councilmembers Hally, Marohn, Radford, Dingman, Smith, Ehardt. Nay – none. Motion carried. Subject: Final Plat and Reasoned Statement of Relevant Criteria and Standards, Belmont Estates Division No. 2 For consideration is the application for Final Plat and Reasoned Statement of Relevant Criteria and Standards, Belmont Estates Division No. 2. The Planning and Zoning Commission considered this application at its June 6, 2017 meeting and recommended approval by unanimous vote. Staff concurs with this recommendation. Councilmember Dingman stated this is a very large residential plat, consisting of approximately 40 acres. The preliminary plat was approved in 2006. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Development Agreement for Belmont Estates Division No. 2, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Marohn, Dingman, Ehardt, Hally, Radford, Smith. Nay – none. Motion carried. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to accept the Final Plat for Belmont Estates Division No. 2, and give authorization for the Mayor, City Engineer, and City Clerk to sign said Final Plat. Roll call as follows: Aye – Councilmembers Ehardt, Radford, Smith, Marohn, Dingman, Hally. Nay – none. Motion carried. It was moved by Councilmember Marohn, seconded by Councilmember Smith, to approve the Reasoned Statement of Relevant Criteria and Standards for the Final Plat for Belmont Estates Division No. 2, 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. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Water Use and Assessment Agreement for Belmont Estates Division No. 2, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Smith, Hally, Dingman, Radford, Ehardt, Marohn. Nay – none. Motion carried. Subject: Public Hearing – Ordinance Re-establishing a Business Improvement District in the Downtown Area For consideration is an ordinance re-establishing a Business Improvement District (BID) in the Downtown Area. BIDs are regulated by Idaho Code 50-26. This code requires a public hearing be held to consider the proposed district and, if the Council decides to establish the district, approval of an ordinance to that effect. The BID was first established in the downtown in 1997 and was renewed in 2007. The proposed boundaries are the same as the past two district approvals. The proposed levy rate for the special assessment is proposed to be lowered from 4 mills to 2 mills, but the maximum assessment has been raised from $1,700 to $2,500. Per the requirements of the Idaho Code, petitions signed by more than 50% of affected property owners have been submitted to the City in support of the establishment of the BID. 6  July 13, 2017 Mayor Casper reviewed the public hearing process. She opened the public hearing and ordered all items presented be entered into the record. Director Cramer stated the original BID began in 1997 with a renewal in 2007. The ordinance establishing this district has set the 10-year timeframe. He stated there are different responsibilities in establishing a district within Idaho Falls and the City has not been responsible for initiating the application. The IFDDC has gathered all petitions. Director Cramer presented the following: Slide 1 – Process Required by Idaho State Code 50-26 50-2603: An initiation petition containing a description of the boundaries, proposed uses and projects for district, and estimated rate of levy signed by persons who operate businesses or own business property what would pay 50% of the proposed assessment must be submitted to the legislative authority. Petitions submitted by IFDDC to City staff: May 15, 2017. Director Cramer stated the petitions were reviewed multiple times by multiple staff members and were determined to be valid. 50-2604: If petition is valid, legislative authority shall adopt a resolution of intention to establish a district. Resolution must contain time and place of a hearing to consider the district and restate the information on assessment, boundaries, projects and uses as contained in the petition. Resolution passed May 25, 2017. Slide 2 – Process Required by Idaho State Code 50-26 50-2605: Notice of the hearing must be published in the newspaper AND mailing to each business in the proposed or established district at least 10 days prior to the hearing. Notice published in the Post Register June 25, 2017. Mailings sent to all businesses and property owners June 23, 2017. 50-2606: In the hearing the legislative authority shall hear all protests and receive evidence for or against the proposed action. Hearing held July 13, 2017. 50-2610: If, following the hearing, the legislative authority decides to establish the district, it shall adopt an ordinance to that effect. Slide 3 – BID boundaries Slide 4 – Proposed Terms of BID  Boundaries to remain the same  Assessment rate to be reduced from 4 mills to 2 mills  Maximum assessment to be raised from $1700 to $2500. Director Cramer stated for the previous 20 years, the assessment value has been against the 1997 assessment. The proposal considers current assessment.  Length of district to be 10 years  Proposed projects and uses outlined Director Cramer stated staff is recommending approval of BID as he believes, when done correctly, the BID is an important partner with the City. He stated the Bonneville County Assessor will be collecting assessments in the future, the City will only be involved in distribution. 7  July 13, 2017 Mayor Casper requested comments from the IFDDC. Catherine Smith appeared. Ms. Smith requested, on behalf of the IFDDC, that the BID be approved. She distributed letters of support from Bank of Idaho, MCS Advertising, and Renee Magee, who were unable to attend the public hearing. Ms. Smith briefly reviewed IFDDC accomplishments, events, and the purpose of the IFDDC. She stated the IFDDC also administers a 501(C)(3) foundation for historic downtown which has provided grants and arts for beautification. She also stated the IFDDC is actively engaged in the downtown plan. She reviewed the process of the reduction of the mill rate, including the reevaluation of the mill rate once assessments were originally given to business owners. Ms. Smith stated there is much work to be completed downtown and IFDDC wants to be a positive force. She invited all downtown property owners to the monthly board meetings to share their individual thoughts with the board members as she is dedicated to listening. Mayor Casper requested any public comments. Jim Sevy, Musicare, appeared. Ms. Sevy expressed his appreciation to the Council’s service as well as Ms. Smith. He believes there is confusion who can participate in the BID but also believes the perceivable return of the assessment is minimal. He believes many of the accomplishments of the IFDDC were completed by volunteers, with a very small amount of money used. He stated the lack of return on the investment of the assessment is burdensome. He believes the cap on the assessment was originally used as a means to influence property owners to support and renew the BID but believes the mill rate was reduced due to lack of support for renewal. Mr. Sevy questioned the construction of a parking garage, the impact of the original BID total business volume within the District, how the City has measured the benefit of the BID, and, what uses the special assessment revenue have been applied to. He believes the biggest issue that many people have with the BID is the perception. Dale Catmull, property owner of 367 Broadway (formerly Catmull’s Furniture), appeared. Mr. Catmull stated he has many of the same concerns as Mr. Sevy. He stated the assessments were almost double as the previous years. He indicated he visited with other business owners, some who did not want to be included in the BID. He stated over the course of years, he has not seen the return on the investment of the amount of money that has been put into the downtown district. Mr. Catmull believes property owners would put forth their time to get projects going but believes several programs have left the downtown area. He suggested to remove the south boundary (Broadway area) from the BID. Kurt Payne, owner of Ford’s Bar, appeared. Mr. Payne stated he is against the BID for many reasons. He expressed his concern with percentages and questioned why not all businesses pay the same. He indicated higher value properties are paying less than lower value properties. He believes the cap is keeping higher value properties from paying their share. He believes the amount has always been $2500. Mr. Payne stated he was unable to obtain emails for correspondence to other property owners. He is opposed to the BID. Janet Jack, owner of Broadway property, appeared. Ms. Jack stated she purchased this property 14 years ago and has sold other properties and her home to improve her building/business. She requested to be removed from the BID boundary. She stated she has paid the tax for 13 years but has understood she should be exempt from the tax because she lives in the building. David Nygard, owner of 3 downtown buildings, appeared. Mr. Nygard believes, through previous experience, that Russia has more freedom than we have. He questioned the increase of the taxes and believes the BID tax is extreme. He questioned who controls the tax, the votes and when. He questioned who the limit of the tax is for. He believes this is not a one on one vote. Greg Crockett, owner of building on Park Avenue and A, appeared. Mr. Crockett stated he has been at this location for 44 years and believes downtown has never been better. He agrees that imposing a tax is a burden on the neighborhood, although he believes there will be a return on the investment. He also agrees that Broadway has been neglected. He indicated this area has been and is currently being addressed with the IFDDC and resources are being discussed. However, Mr. Crockett stated there is complexity as Broadway is a State highway and any 8  July 13, 2017 improvements have to be approved by the State. Mr. Crockett stated the levy is targeted to raise the same amount of money. He accepted the responsibility of the re-evaluated mill rate. He believes the IFDDC is doing the best they can to carry out specific goals. In response to Mr. Payne, Mr. Crockett stated he does not have the authority to release names and emails. He requested approval of the BID. Marilyn Nygard appeared. Ms. Nygard believes the BID is trying to make things beautiful but she believes the majority of improvements have been performed by the expense of business owners, not BID monies. She believes business owners are the ones who make the businesses work, not the BID. Amy Kingston, Kingston Organization, appeared. Ms. Kingston stated their records indicate $2500 has been paid for several years. She stated non-retail owners do not see the foot traffic and the organization has to compete for tenants. She believes the flower baskets are not a benefit of the BID and also believes they are being asked to pay services which are out of their control. She questioned how the money is spent and where. Ms. Kingston believes if more people were informed it would be beneficial. Richard Napier, owner/operator of Idaho Mountain Trading, appeared. Mr. Napier stated he has been a proponent of the BID since its inception and was a previous board member for first the nine (9) years. He has seen great improvements due to the BID. He briefly reviewed the Yellowstone Parking project. He stated the IFDDC has obtained grants for signage and beautification projects. Mr. Napier believes downtown is spiraling up and he is in favor of the approval. Ms. Smith reappeared. She stated approximately $1m have been collected. She indicated not all property owners have paid the assessment over the years as there was no enforcement of payment. She believes by moving the collection to the County there will be an effective assessment collection. Ms. Smith stated in response to previous comments, the maximum assessment has been $1700. She indicated of the 110 properties, 11 properties pay the maximum rate. Ms. Smith believes there are creative ways to accomplish a downtown parking garage, which would be very beneficial, but does not believe the IFDDC can accomplish that fund raising. She reviewed several parking lot locations and stated several merchants will validate parking. She believes the goal moving forward is to work in a positive way. She requested merchants and business owners to join the Board of Directors meeting so they can be heard and have their concerns discussed to create a positive community. Director Cramer reappeared. He stated a letter from Mr. Thomas Mannschreck was inadvertently omitted from the record. He read the letter as follows: Dear Mayor Casper: We will not be able to attend the July 13th public hearing reflected in the enclosed notice. We do support the proposition and ask you to have this letter of support entered into the public record. Thank you. Sincerely, Thomas Development Co., Thomas C. Mannschreck, President Director Cramer stated, to clarify previous comments, the $1700 maximum assessment was identified in the 2007 BID ordinance. He stated the 1997 ordinance set the mills rate at 7 with a $3000 maximum assessment and a $200 minimum assessment. He also clarified there is no City metrics for planning, however he would like to have specific conversations to measure the effects of the BID and planning efforts. To the request of Councilmember Ehardt, Director Cramer stated the boundaries of the BID can be adjusted although all petitions would then have to be re-evaluated. He also reiterated that 110 businesses are currently on the BID role. He stated 50% of property owners paying into the assessment would need to be in favor of the BID, there are currently 57% in favor. To the response of Councilmember Dingman, Director Cramer stated the Community Development Services staff assists the IFDDC with minor administrative functions as well as attending IFDDC meetings. 9  July 13, 2017 Ms. Smith reappeared. She stated, per Councilmember Ehardt’s question, the cap was established so as not to create a burdensome tax for multiple property owners so they are not dis-incentivized to improve their properties. Ms. Smith explained the district is calculated with all property values and the assessment was taken at .002 with any properties over the $2500 amount capped. To the response of Councilmember Marohn, Ms. Smith stated there is very low participation in Board Meetings from property owners. She briefly reviewed the number of board meetings, the number in attendance, and board members. To the response of Councilmember Radford, Ms. Smith stated tenants have no role in the BID. Ms. Jack reappeared. Ms. Jack stated she will lose current tenants and will be required to increase her rent to pay taxes for the BID. Director Cramer reappeared. He stated, per Council’s request, there are approximately 86 signed petitions. He indicated a petition is required for each property. Chaney Trench, downtown business owner, appeared. Ms. Trench stated she has been in the downtown area for two (2) years, where she also resides. She indicated the IFDDC attracted her attention. She also indicated she enjoys the area and encourages her clients to experience the downtown area as well. She sympathizes with property owners and she believes the purpose of a renter is to make profit. She believes attention to downtown brings more business. Mr. Catmull reappeared. He stated the petition did not allow a signature if someone was not in favor of the BID. He believes the established cap is buying the vote. He also believes if property owners had an opportunity to vote yes or no, there would not be enough votes to pass. Mr. Napier reappeared. He believes approximately $70k would be raised through the BID. He believes the 57% of the assessment is fair and just. Mayor Casper closed the public hearing and requested a brief recess for Councilmembers to review submitted materials. After the brief recess, Mayor Casper turned the discussion to Councilmember Dingman, liaison of Community Development Services. Councilmember Dingman stated this is a very difficult conversation regarding the BID. She indicated several years ago she used to rent property downtown and had a very negative experience with the IFDDC and the downtown neighbors. She stated she left the downtown area because of the lack of marketing. However, she believes the BID performs an important function that City government cannot accomplish alone. She believes the $2500 cap is reasonable and the BID petition does meet all requirements. Councilmember Dingman also believes the communication issues need to be resolved, which is the responsibility of the IFDDC. She stated due to her previous experiences with downtown businesses, she is in support of the BID. Councilmember Marohn stated part of the Community Development Block Grant (CDBG) process includes discussion with the BID for planning and direction for expenditures. He believes there is a positive aspect of the community and the connection BID has with other agencies to bring money into community. Councilmember Ehardt stated she prefers the IFDDC to remain viable and believes the IFDDC has served a valuable purpose. She also believes there is a means to get businesses on board as there are concerns with several businesses. She stated although she wants the BID to be successful she cannot support this action. Councilmember Hally reviewed previous meetings regarding downtown issues. He believes the BID was instrumental to get the Redevelopment Agency to invest in the downtown area. He also believes the BID was responsible for the actions in getting the Council to incorporate intersections downtown. He does not believe the BID is asking for an outrageous amount of money. He believes there is responsibility of property owners to attend the board meetings. He is in favor of the BID. 10  July 13, 2017 Councilmember Smith believes downtown looks vibrant and economically in good shape. After review of information submitted by the IFDDC he indicated those property owners who have expressed the negative comments have not been paying into the BID. He believes lack of participation will not see the benefit in belonging to this organization. He is in favor of the BID. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the ordinance re- establishing a Business Improvement District in the downtown area 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 Dingman, Smith, Marohn, Hally, Radford. Nay – Councilmember Ehardt. Motion carried. At the request of Mayor Casper, the City Clerk read the ordinance by title only: ORDINANCE NO. 3125 AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, CREATING A BUSINESS IMPROVEMENT DISTRICT PURSUANT TO CHAPTER 26, TITLE 50, IDAHO CODE FOR THE PURPOSE OF PROMOTING BUSINESS AND EVENTS WITHIN THE DISTRICT; IMPROVING AND MAINTAINING PUBLIC AREAS WITHIN THE DISTRICT AND FULFILLING ALL PURPOSES FOR WHICH A BUSINESS IMPROVEMENT DISTRICT MAY BE FORMED; ESTABLISHING THE RATE OF LEVY FOR SPECIAL ASSESSMENTS BY DISTRICT; AUTHORIZING THE COUNCIL TO CONTRACT WITH A BUSINESS ASSOCIATION TO ADMINISTER THE OPERATION OF THE BUSINESS IMPROVEMENT DISTRICT; PROVIDING FOR SEVERABILITY; PUBLICATION BY SUMMARY; AND ESTABLISHMENT OF EFFECTIVE DATE. Mayor Casper expressed her appreciation to those who have attended the meeting and shared their concerns. She believes the concerns gives the leadership of the IFDDC some outreach opportunities. There being no further business, the meeting adjourned at 10:02 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 11