City Council

October 2, 2017 Special Meeting The City Council of the City of Idaho Falls met in Special Meeting (Land Transfer with Bonneville County), Monday, October 2, 2017, in the Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 3:30 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 (by telephone) Councilmember David M. Smith Also present: Pamela Alexander, Municipal Services Director Bryce Johnson, Police Chief Dave Hanneman, Fire Chief Greg Weitzel, Parks and Recreation Director David Pennock, Idaho Falls Zoo Superintendent Bryon Reed, Bonneville County Commissioner Kerry Hammon, Public Information Officer Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:34 p.m. Discussion and Directions to Staff Regarding Acquisition of Land Transfer with Bonneville County: Mayor Casper stated this topic had been previously addressed on September 11, 2017 with input from Department Directors, Law Enforcement, and Bonneville County Commissioner. She requested/recommended this discussion solely include Council with any use of Department Directors, or other individuals, as a resource only. She commended Director Alexander for her assistance. Mayor Casper reviewed the steps for the typical City decision-making process stating the process is led by City Department Directors, often with inter-departmental assistance, prior to any presentation to City Council. This includes any financial and legal concerns. Once the best option is presented, the Councilmembers are responsible for the ultimate decision. Mayor Casper believes the process was not followed regarding the land swap as she believes this issue received early support prior to being fully vetted by the Department Directors. She also believes Commissioner Reed was approached by several City individuals. Mayor Casper briefly reviewed the lease agreement with Bonneville County for use of the Emergency Communications Center (ECC) effective October 29, 2012. She stated the first lease term expires 2032 and if extended, the second lease would expire in 2042. She also briefly reviewed the Memorandum of Understanding (MOU) with the Zoo Education Center/Maeck Education Center (MEC) stating construction of the MEC shall be substantially commenced before June 1, 2018. Director Alexander reviewed financial considerations over the course of a 5-year period total: Relocate rack space (cost to be determined) Relocate Tropos router (cost to be determined) Monthly proposed rates for tower and rack space = $7200 Property appraisal (estimated $4500 per property) = $9000 911 Dispatch Building maintenance = $7500 Snow removal and landscape maintenance = TBD Dispatch City lease expense (placeholder for discussion purposes) = $75,000 Total = $98,700 Annual lease amount to City of Idaho Falls = $158,475 1  October 2, 2017 Special Meeting Mayor Casper reviewed core assumptions following the September 11, 2017 meeting: City of Idaho Falls –  The City desires to acquire the Bonneville County Fairgrounds Property o The Tautphaus Park Master Plan adopted by the Council recommends this  The Bonneville Fairgrounds Property is considered to be the optimal location for the siting of the planned MEC if donor wishes can be met o At least two alternative locations have been contemplated and modeled  Every option for acquiring the property carries costs, but the property transfer option always results in a net loss of at least $31,695 annually for the general fund in perpetuity—and more if the space must be rented back for dispatch operations  A sense of urgency is present for several reasons that only tangentially affect the efforts to obtain the property o Selecting a site now renders it more likely that a design can be generated to allow for winter bidding, possibly resulting in lower construction costs for the facility o The MOU with Mr. Maeck requires an October 2018 occupancy Bonneville County –  Bonneville County officials are willing to sell, trade, or otherwise work with the City to facilitate the transfer of the property ownership if a City commitment can be made prior in a timely manner o Bonneville County Officials have NOT expressed a preference for a trade over an outright sale o Bonneville County Officials have expressed a willingness to discuss a multi-year purchase agreement o Bonneville County Officials have expressed a preference NOT to interfere with Police Department operations  If the City does not act, Bonneville County Officials intend to sell the Fairgrounds property on the open market o The Fair Board has acquired a new county fairground location south of Sandy Downs o The 2018 County Fair will need to use current Fairground properties  The Idaho Falls Chief of Police has expressed a strong preference that a trade not go forward at this particular time o Has requested more time to study dispatch operations and be able to address concerns and implement desired changes o An unstudied change in ownership may negatively impact Idaho Falls Police Department (IFPD) dispatch operations Mayor Casper stated the notion of a property swap held promise for two key reasons: no funds were involved, and the Parks and Recreation (P&R) Department was the only City entity to be impacted. She noted the MEC could still be constructed if the fairgrounds property was not acquired. Mayor Casper stated a commitment to address the ECC concerns must occur regardless of the decision of the ECC, and Bonneville County officials have expressed an intent to abide by the conditions of the lease. She indicated an outright land purchase, as well as property transfer, could take several months as both options include various complications. She believes neither process may be fast enough to guarantee the MEC construction planning. Mr. Fife briefly reviewed options and scenarios for a land transfer or an outright purchase stating a combination of all versions could also occur. Approach 1, Version A – features include land transfer of the ECC and landlord/tenant swap with the County and the City. This would also include suspension of payments for a period of time. He indicated discussion has occurred with Bonneville County regarding rent payments. The version also addresses interests of Idaho Falls Power (IFP) relative to rack space and tower payment options, and allows the County to give the City an option to construction the MEC on the property in the meantime. Mr. Fife stated, per discussion with Bonneville County personnel, the County prefers to work with the IFPD and IFP although not related to a land exchange. He stated these particular items are addressed in Approach 1, Version B. Approach 2 – the City would pay a significant amount of money immediately to the County for construction of the MEC. If payments not made, the City would lose the MEC. Mr. Fife stated regardless of the decision, the donor of the MEC has sole authority to determine where the MEC is to be constructed. 2  October 2, 2017 Special Meeting Approach 3 – the City would buy the property from the County with the option of payout over a number of years, and would be allowed permission to construct the MEC on the property. Mr. Fife stated there are statutory requirements for a County public hearing, he believes the City should have a public hearing as well. He indicated any agreement must be published indicating the details of the public hearing. He stated an appraisal could occur after the purchase if declared a fair value. Councilmember Marohn believes the original intent was to acquire the 4H Fairgrounds property and the land swap discussion has been convoluted. Mr. Fife believes if there is no land swap, the lease agreement does not need to be addressed. Councilmember Radford questioned the residence currently located on the 4H Fairgrounds property. Commissioner Reed clarified the residence is County owned and rented for $150/month. This residence would be included in the purchase. To the response of Councilmember Smith, Mr. Fife recommended immediate conversation and approval with the Maeck Foundation for immediate construction if the City acquires the land. Mr. Pennock believes the Maeck Foundation prefers the 4H Fairgrounds property but the original location would be suitable as well. Councilmember Marohn believes there is a willingness from the Maeck Foundation to accommodate any property as they just want the project to move ahead. Councilmember Radford believes the Maeck Foundation is not flexible on the commencement and completion dates. Brief discussion followed regarding the construction design. Director Alexander reviewed five options for placeholder of $600,000 with general discussion throughout: Reprioritize General Fund 2017/18 projects Payment plan from General Fund (20% down payment, two-year fiscal payment plan) Offset annual lease amount and reprioritize General Fund project expenditures Dedicate payment in lieu 2016/17 true-up exercise (General Fund transfer) Borrow from Enterprise Funds and pay back over number of years Councilmember Hally believes the decision regarding the land purchase/swap should occur immediately. He also believes the payment options will be deferred to future Councilmembers. Mr. Fife stated future Councils could defer on a multi-year purchase agreement. Councilmember Hally then stated he believes a clean purchase should be made with funds borrowed from the General Fund. Councilmember Marohn concurred, stating this will avoid the complexity of transferring properties. He believes a land swap endangers law enforcement. Councilmember Smith is in favor of a purchase agreement to purchase the property now which would also allow the County to have access for the next fair. He believes future Councils could allocate from future funds. He also believes future discussion needs to occur with Bonneville County regarding the entire joint law enforcement concerns/issues. Councilmember Ehardt stated she is not in favor of spending more money on parks property. She believes Bonneville County had indicated that rent would not occur. She is in favor of a land swap. Councilmember Dingman concurred with Councilmembers Smith, Hally, and Marohn to purchase the property in a one-year timeframe. Councilmember Radford indicated he is leaning towards the transfer but he will support the majority of the Council. Brief discussion followed regarding the Multi Agency Board (MAB). It was moved by Councilmember Marohn, seconded by Councilmember Dingman, to direct the Mayor, the attorney, and Municipal Services Director to develop a proposal based on discussion with Bonneville County for the purchase of the Bonneville County 4H property at the earliest possible date to include appraisals for the purchase of the property for a one-year payment plan. Roll call as follows: Aye – Councilmembers Smith, Hally, Radford, Dingman, Marohn. Nay – Councilmember Ehardt. Motion carried. Brief discussion followed allocation of money including P&R re- prioritizing projects. It was decided additional discussion will occur at a future work session regarding the purchase agreement and funding. There being no further business, it was moved by Councilmember Hally, seconded by Councilmember Marohn, to adjourn the meeting at 5:07 p.m. which motion passed following a unanimous vote. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 3