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City Council

Regular Meeting

Idaho Falls, ID · April 22, 2019

AgendaMinutes

Minutes

April 22, 2019 The City Council of the City of Idaho Falls met in Special Meeting (Council Work Session), Monday, April 22, 2019, 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 Thomas Hally Councilmember John Radford Councilmember Jim Francis Councilmember Michelle Ziel-Dingman Councilmember Jim Freeman Councilmember Shelly Smede (arrived at 3:03 p.m.) Also present: Pamela Alexander, Municipal Services Director Josh Roos, Treasurer Mark Hagedorn, Controller Megan Ricks, Accountant Rick Cloutier, Airport Director Ryan Tew, Human Resources Director Brad Cramer, Community Development Services Director Dana Briggs, Economic Development Coordinator Joel Tisdale, Police Lieutenant Randy Fife, City Attorney Kathy Hampton, City Clerk Mayor Casper called the meeting to order at 3:01 p.m. Mayor Casper stated an item, an appeal for a Child Care Worker license, was inadvertently omitted from the agenda. As an appeal must be heard within a certain amount of time it was moved by Councilmember Francis, seconded by Councilmember Radford, to add an item to the agenda – Hearing for a Child Care Worker License Denial Appeal. The Good Faith reason is the applicant was given written notice of the scheduled hearing occurring at the conclusion of today’s Work Session although the item was inadvertently omitted from the agenda. The delay of the appeal may cause difficulty for the applicant and the Child Care facility. The associated Action Item is to approve or deny the appeal. Roll call as follows: Aye – Councilmembers Freeman, Radford, Francis, Dingman, Hally. Nay – none. Motion carried. Due to the number of attendees for the Airport agenda item, it was also moved by Councilmember Dingman, seconded by Councilmember Radford, to move the agenda item, Leasing Policy Review from the Idaho Falls Airport, to the second item following the Municipal Services presentation. Roll call as follows: Aye – Councilmembers Freeman, Francis, Hally, Radford, Dingman. Abstain – Councilmember Smede. Nay – none. Motion carried. Quarterly Finance Presentation: Director Alexander noted this second quarter financial review will include budget to actual overview; expenditure overview; and, investment overview. The following was presented with general discussion throughout: Fiscal Year 2018/19 Budget to Actual Revenue Reporting: Total Revenues and Reserves: 2018/19 Budget = $196,790,793 Year to Date = $93,547,776 Percentage Received = 47.54% Year-End Forecast = $174,677,476 1 April 22, 2019 Fiscal Year 2018/19 Budget to Actual Expenditures: 2018/19 Budget = $206,598,558 Year to Date = $71,375,809 Percentage Expended = 35% Year-End Forecast = $174,677,476 The on-going expense for Wages/Benefits is at 47%. 10-Year Historical Actual Revenue to Expenditures (March – September): Mr. Hagedorn stated there is typically more revenue than expenditures half way through the year due to construction costs, outdoor projects, etc. The expenditures are then accelerated the second half of the year. Fiscal Year 2018/19 General Fund Budget to Actual Revenue Reporting: 2018/19 Budget = $46,790,933 Year to Date = $25,360,283 Percentage Expended = 54.20% Year-End Forecast = $61,695,150 Mr. Hagedorn stated Miscellaneous, including unscheduled, unplanned, one-time transactions, can be difficult to predict and typically occur the later part of the year. Taxes and Franchises fees are received in January and July. Fiscal Year 2018/19 General Fund Budget to Actual Expenditures: 2018/19 Budget = $46,299,339 Year to Date = $20,501,922 Percentage Expended = 44% Year-End Forecast = $46,553,041 Mr. Hagedorn stated the City is expecting to be over-budget on salaries and wages. This is being driven by the Idaho Falls Fire Department (IFFD), which is approximately 6% higher than expected this time of year. Mr. Hagedorn noted the IFFD is currently working on this issue. 10-year Historical General Fund Actual Revenue to Expenditures: Mr. Hagedorn stated more revenues are expected in March than expenditures which should break even by the end of the year. He noted there is carryover from the IFFD due to the fire season. He also noted Bonneville County went through a software integration, therefore their payments were delayed. That project has been completed. Mr. Roos stated the current banking relationships have changed in the previous quarter as the City previously utilized four (4) banks with 18 accounts, this has been condensed to two (2) banks with 10 accounts. He indicated this change has helped with the internal processes (eliminating hand written checks and physical bank deposits) and has created high interest sweep accounts and Money Market Accounts. He believes this has been a smooth transition and is working well. Treasurer’s Report (break down of different City funds): Mr. Roos stated General Fund fluctuates throughout the year. The Finance and Investment Committee has recommended the General Fund balance stay no lower than $8M. The Recreation and Golf Fund balances generally increase during the summer months. The Fire Capital Fund was established to record and report the payback of Fire Station 1. The Zoo Capital Improvement Fund is in the final stages of the Maeck Education Center project. There is recommendation by Finance to transfer $900,000 from the Ambulance Fund to the General Fund to true-up for wild land fire expenditures. Treasurers Report (investment reconciliation): Broken into two (2) sections – investment institutions and types of securities within the institutions. Total for month of March = $107M. Market Review: 2 April 22, 2019 The Federal Open Market Committee (FOMC) announced in March they will maintain the federal funds rate in a target range of 2.25% to 2.5%, it is speculated there will not be a rate increase (as previously expected) until 2020. The Yield Curve has become inverted between the one (1) and five (5) year mark. Current Investments – Investment portfolio = $105,445,848.88. This includes agencies; CD’s; Corporate Bonds; Treasury; Money Market; and, Commercial Paper. Mr. Roos noted no more than 50% of investments should be in one (1) type of security. He stated the City is now in compliance with the investment policy. Investments Date of Maturity (0-48 Months = $105,445,848.88) Mr. Roos stated the City wants to have a steady cash flow of money coming in in order to fund projects. Investment Overview: Clearwater Analytics is continuing with the dashboard and reporting. Mr. Roos anticipates presentation of the dashboard at the next quarterly presentation. Next Finance and Investment Committee will be held April 25, 2019. Director Alexander believes presentations at the committee meetings have been beneficial. Several Councilmembers expressed their appreciation to the finance team and the improved system. General Fund Management: • General fund departments should manage within their approved budget and any overages should be communicated to City Council • Importance of general fund departments bringing 2018/19 budgeted items before City Council by July/August 2019 • Any new unbudgeted project(s) with ongoing costs to the general fund should be prioritized against budgeted projects and analyzed against revenue Mr. Hagedorn stated Municipal Services Department is monitoring IFFD forecasted overages; Ambulance Fund cash; change in methodology for inter-fund transfers for 2019/20 budget; and, available General Fund cash and encumbrance carryover. He reviewed the 10-year comparison for the Ambulance Fund, stating the cash balance decrease began in 2014. He believes the wild land fire expenses need to be segregated from the Ambulance Fund. It was noted the third-party collection service began in 2014-2015. There have been many factors/issues with the increased revenues and expenses within the Ambulance Fund. Mayor Casper stated a future IFFD presentation will occur to address these issues. General comments followed. Leasing Policy Review: Director Cloutier indicated most Idaho Falls Regional Airport (IDA) leases are not currently in compliance with the Federal Aviation Administration (FAA) policy, guidelines, or best practices. Therefore, IDA staff is attempting to bring the leases back into conformances to meet grant assurances and guidelines and to ensure IDA has revenue that cover actual costs of lease rates and fair market values. Director Cloutier stated the FAA requires the leases maintain control of land and future needs of the airport. He also stated the FAA does not allow continued long-term renewal of leases and, considers anything over fifty (50) years a permanent transfer of property. He indicated many existing hangars do not meet the needs of the flying community and many hangars are not being used for aircraft storage. Airport hangars are to be used for aeronautical uses only with the exception of incidental non-aeronautical uses provided an aeronautical use is involved. Many hangars do not meet code and are in unserviceable conditions. The FAA requires the airport to be a self-sustaining enterprise (no tax dollars are taken from the City or County), provide adequate control of land parcels, and, ensure suitable hangar facilities are available. Director Cloutier stated the idea behind the leases is to allow the airport to control the use of land better than has been done in the past. He briefly discussed a reversion clause which will allow the airport to charge tenants a fee, in addition to lease rates, to ensure adequate long-term funding. Many of the current hangars have been allowed to extend leases and many do not have a clause to determine what happens at the end of the lease. Director Cloutier stated, per discussion with Mr. Fife, that when a lease ends with no future terms, the tenant will need to move the property or it becomes ownership of the airport. He stated a change is needed in order to control revenue and to ensure hangars are being used properly. He indicated there are numerous commercial and non-commercial leases including the industrial complex adjacent to the 3 April 22, 2019 airport. If the commercial business is providing a service to the airport they are allowed different lease rates. Director Cloutier stated the non-negotiable proposal of the leases is to bring the airport into compliance with the FAA, allow a revisionary clause or apply an additional fee, and, that inspection reports take place prior to a lease renewal to ensure the buildings are up to code. He indicated current leases will not be modified but renewal leases will be required to meet the FAA guidelines. Mr. Fife clarified the reversion clauses. He believes there has not been a standardized method for leases. He stated previously a transfer included consent of the City, often with no changes, so there was no standardization and also no quality control from the landlord side. He believes there is a more proactive approach. Mr. Fife indicated leases can be negotiable according to FAA guidelines. He also indicated he would move to adopt a standardized lease, with very few changes to each lease, to qualify for FAA standards. Director Cloutier stated there are approximately 200 leases. He indicated several leases will be expiring in the next few years and he would prefer to make adjustments to said leases, including a 30-day notice of inspection, to bring those leases into compliance. Councilmember Francis questioned the timeframe of the FAA standards. Director Cloutier indicated leases are typically twenty (20) years with an automatic ten (10) year extension for up to fifty (50) years. He noted the FAA guidance is thirty (30) years with some exceptions depending upon the investment. Mayor Casper questioned compliance practices to this point. Director Cloutier stated requirements have been consistent for the past few years, with a few changes. He stated IDA has been out of compliance for the past twenty (20) years but has not been reprimanded as the FAA region is large and things slip through the cracks. IDA is due for their compliance inspection this year so these changes are now necessary. It was noted compliance inspections occur every 10-15 years. Councilmember Francis questioned future lease agreements. Mr. Fife stated he prefers a template for lease agreements although specific changes could be negotiated. Director Cloutier agreed as long as it falls within compliance. He noted he wanted to address the Council with the information prior to disseminating the information to the public. Councilmember Radford believes there is a vibrant general aviation community, he also believes the airline community needs to be heard for balance with the FAA guidelines. Director Cloutier stated fair market value needs to be considered for the aviation community, the City, as well as IDA, and should be phased in. Following general discussion, there was consensus of the Council for Director Cloutier to proceed with a template lease agreement conforming to the FAA guidelines. Mayor Casper recommended the public contact the elected officials and Director Cloutier with any comments. Acceptance and/or Receipt of Minutes: There were no minutes to accept. Calendars, Announcements and Reports: April 23, Fire Chief Dave Hanneman Public Retirement Reception; and, Association of Idaho Cities (AIC) Spring District Workshop April 25, Idaho Falls Power (IFP) Board Meeting; and, City Council Meeting April 26, Idaho Humanities Council (IHC) Distinguished Humanities Lecture April 27, Worker’s Memorial Day Dedication; and, Earth Day Liaison Reports and Concerns: Councilmember Hally had no items to report. Councilmember Smede had no items to report. Councilmember Freeman stated the Idaho Falls Police Department (IFPD) School Resource Officer (SRO) will be performing park patrol this upcoming summer; there are four (4) new officers being sworn in on April 30; and, Coffee with a Cop will be held April 26. He also stated Public Works is currently performing remediation on the recharging site near Sandy Downs; and, a construction update will occur at Budget Watch. Councilmember Francis stated the first shipment of 40 tons of glass was shipped on April 18 for recycling; Clean and Green will be held May 3-13, which includes hazardous waste disposal with Bonneville County; Rosehill Cemetery clean-up will be held May 4; the Senior Citizens Center delivered 5506 meals for the Meals on Wheels program in March, this amount substantially increases each month/quarter; and, upcoming Human Resources Leadership Academy dates were reviewed. Councilmember Radford stated RECreateIF survey forms are available online and, the IFP Board survey will be reviewed at the April 25 IFP Board Meeting. 4 April 22, 2019 Councilmember Dingman had no items to report. Discussion of Targhee Regional Public Transportation Authority (TRPTA) Status and Funding: Mayor Casper stated, per a recently-held emergency meeting, the TRPTA Board has voted to dissolve TRPTA due to financial insolvency. However, TRPTA has requested the City consider releasing the quarterly payment, in the amount $35,000, to help satisfy some obligations during the wind-down period, including payroll. Unfortunately, TRPTA does not have a timeline for the wind-down period. Councilmember Dingman stated the TRPTA attorney is researching the legal process regarding the dissolution. She believes the request for the City payment will be matched by the Federal Transit Administration (FTA) funds, for a total of $105,000, to assist with significant liabilities. Councilmember Radford questioned the TRPTA assets. Councilmember Dingman stated upon the sale of the facility, 90% of the funds will be returned to FTA with TRPTA keeping 10%, any vehicle sold for $5000 or more will require 85% of the profit returned to FTA, TRPTA will keep any amount of vehicles sold for less than $5000. She also stated the board is hopeful to dissolve TRPTA in an orderly fashion, the timeframe could be in approximately 90 days in a phased-approached. Mayor Casper indicated the FTA fund match is not guaranteed. She reminded the Council of the previous request from TRPTA for in-kind services. This request prompted additional discussion regarding FTA sanctions and withholding the City payment pending those sanctions. Mayor Casper stated TRPTA has not been, and may not be, cleared from those sanctions. She also stated separate discussions will need to occur regarding future transportation needs for citizens. General discussion followed regarding the City funding, public transportation service and rates, the FTA match and sanctions, the TRPTA sanctions, PERSI (Public Employee Retirement System of Idaho) and payroll payments, and, TRPTA liabilities. Mayor Casper recommended a plan from the TRPTA Board be received prior to releasing City funds (taxpayer dollars). Following additional comments, the Council will request whether or not the donation would elicit a match donation from FTA; an assurance that any donated funds be utilized for TRPTA services and not the TRPTA debt; how the $35,000 would be spent; a plan for dissolution; and, a statement of TRPTA assets and liabilities. Councilmember Smede expressed her appreciation to Councilmember Dingman as a TRPTA board member, realizing the difficulty of this result. City Employee Wages and Benefits Discussion, Part 1: Mayor Casper stated additional Human Resources (HR) discussions will occur in upcoming Council Work Sessions. Director Tew reviewed the following research data and projected increase with general discussion throughout: Inflation- U.S. Bureau of Labor Statistics, Consumer Price Index (CPI) Actual: March 2018 to March 2019 (U.S.) – 1.9%; Actual: March 2018 to March 2019 (West) – 2.4% The Livingston Survey - Federal Reserve Bank of Philadelphia, CPI projected 2019 – 2.3%; CPI projected 2020 – 2.2% Idaho Division of Financial Management Forecast, CPI projected 2019 – 2.5% Director Tew clarified this is projection only and not his suggestion for City adoption as there are additional budgetary factors and concerns to consider. 2019-2020 Potential Budget Impact- Increase % General Fund Whole - City 0.5 $126,456 $212,896 1.0 $252, 907 $425,793 1.5 $379,359 $638,689 2.0 $505,814 $851,587 2.5 $632,265 $1,064,480 Director Tew noted the Whole - City includes the General Fund and the Enterprise Funds. Mayor Casper stated the current path of an increase each year is an unsustainable path and a decrease of services or personnel may need to occur. Director Alexander concurred. Mayor Casper believes this is a tough balancing act. Councilmember Francis indicated if employees are held on health insurance costs, the City is picking up the inflation cost. He believes this is part of the inflation adjustment element that needs to be considered. Councilmember Radford stated previous discussions have occurred regarding fees covering the cost of services, he believes this is the cost of doing business 5 April 22, 2019 and taxes should reflect this although there is the statutory limitation on any tax increase. Director Tew stated the base these increase amounts were calculated on includes the step increases and longevity pay. He indicated step increases could be removed although he would advise against it. He clarified if step increases were removed the savings would be approximately $300,000, however, it is a deferred cost and this amount would need to be caught up at a later point. Councilmember Francis questioned the amount of step increase cost with no inflation increase. Director Tew stated the amount is approximately $316,000. Ms. Ricks believes the Potential Budget Impact amounts include the annual wage base pay, longevity, and, the step increase. Director Tew stated he will request this clarification from the Controller for future discussion. General discussion followed regarding longevity pay, levy amounts, market value, and, future benefits discussions. It was noted the inflation increase amount in the previous year was 2.5%. Community Development Block Grant (CDBG): Consolidated Annual Performance and Evaluation Report (CAPER) Process Review: Director Cramer stated the CAPER process occurs once a year and the Public Hearing has been scheduled for the April 25, 2019, Council Meeting. There are no funding requests for the CAPER process. Annexation Principles Review: Director Cramer stated the Statement of Annexation Principles have been reformatted, including the requested changes, following the April 8 Council Work Session discussion. He believes the revised document would be helpful to include with public meetings. He indicated this document could be adopted by resolution of the Council. Mayor Casper questioned the document as best practices. Director Cramer believes this statement could be successfully used in most cases. He stated most properties using a utility service understand the process. For the properties that do not have a utility service this statement would help to clarify the process of property selection. Councilmember Smede requested “annexation agreement without utilities” be included in the Category B bullet points. Brief discussion followed regarding the definition and inclusion of fringe. Mayor Casper concurred with the adoption by resolution. Economic Development Incentive Program Overview: Ms. Briggs stated Title 1, Chapter 16, was approved March 8, 2012. She reviewed 1-16-2, Eligibility Requirements and Criteria including initiation of building permit timeframe; creation of number of positions; hourly wage; benefits; new capital investment; and, waiver amounts. She also reviewed 1-16-3, Available Incentives including, expedited permitting process and waiver of fees. Director Cramer stated the Building Division salary and benefits are typically covered by permit fees, any fee waiver would generally be a large-scale project. He indicated in a good year fees received may not be a large impact or burden to the General Fund. He also indicated there is a cap on fee waivers so the taxpayer is not paying waived fees for a business. Ms. Briggs believes the Council (at the time this ordinance was approved) addressed the balance of qualification and ensuring a quality company could qualify. She indicated this ordinance may need to be reevaluated to address future businesses. Ms. Briggs reviewed 1-16-4: Application Procedures; 1-16-5: Evaluation, and, 1-16-6: Incentive Agreement including the adoption of a resolution for a particular applicant. She stated there are also incentives offered at varying levels and varying entities for small businesses including Idaho Falls Business Assistance Corporation (IFBAC), CDBG, Idaho Falls Redevelopment Agency (IFRA), and, Small Business Administration at the Local, State, and National levels. Ms. Briggs noted there are not many cities that offer a similar large-business incentive. She indicated there is limited assistance from the State level, therefore, these incentives must be provided by the municipalities. She believes there is a place for this incentive within the community. Director Cramer clarified the Council has the flexibility to approve or not approve a resolution on an individual basis. Brief discussion followed regarding housing, unemployment, the tax base, the Insurance Service Office (ISO) rating, and fee waivers. Director Cramer clarified this is not a tax waiver, these are one-time fees. Hearing for a Child Care Worker License Appeal: Mayor Casper opened the appeal hearing. Lt. Tisdale stated Ms. Trevizo submitted application for a Child Care Worker Certification (CCWC) license on March 21, 2019. He also stated, per the application process, Captain Bill Squires reviewed the background check and it was determined Ms. Trevizo was accused and arrested for domestic battery on January 1, 2019. Ms. Trevizo was able to plead down the charge to disturbing the peace. It was noted Ms. 6 April 22, 2019 Trevizo admitted to committing the battery, therefore, Capt. Squires denied the application. Ms. Trevizo stated she did receive the charge and she is not proud of the charge. She reviewed the events of the specific evening. She stated after multiple court appearances, the charge was reduced. Ms. Trevizo stated she now has a son and she could take her son to the daycare where employed. She indicated she has currently been working at Eastern Idaho Community Action Partnership (EICAP) in Blackfoot as a license is not required in the City of Blackfoot although she would prefer to work in the City of Idaho Falls. Councilmember Dingman noted Ms. Trevizo’s charge does not relate to the self-declaration statements on the CCWC application. Mr. Fife stated the application was denied based on 6-3-8(A) admitting to conduct constituting a violation of criminal law for any misdemeanor involving violence. Councilmember Radford questioned if 6-3-8(A) is read prior to signing the application. Ms. Hampton indicated 6-3- 8(A) is not read, the applicant reads and initials the self-declaration statement as applicable and signs the application. Mayor Casper closed the appeal hearing. Councilmember Hally stated he errs on the side of the child. Councilmember Smede indicated since this was a recent incident, she believes more time is needed to heal and grow. Councilmember Radford supports the appeal as he indicated there was no violence against a child. Councilmember Francis believes 6-3-8 applies but he is also concerned for the recent timeframe of the incident. Councilmember Freeman believes EICAP has good control and they would see any potential issue. It was then moved by Councilmember Radford, seconded by Councilmember Dingman, to sustain the Child Care Worker License Appeal. Roll call as follows: Aye – Councilmembers Dingman, Freeman, Radford. Nay – Councilmembers Francis, Hally, Smede. There being a tie, Mayor Casper voted nay. Appeal denied. Mayor Casper encouraged Ms. Trevizo to re-apply for the CCWC after a track record in Blackfoot, possibly in six (6) months. There being no further business, the meeting adjourned at 6:55 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 7

Agenda

Approved Idaho Falls Sister City Youth Meeting-Minutes April 3, 2019 Attendees: Kylie Eaton Carolina Jensen Jorge Paron Aurora Mahoney Alazandre Jensen Nathan Peck Anna St. Michel Abby Gallegos Nicholas Cebull Whitney St. Michel Aidan Gallegos Melinda Cebull Charlotte Combs Jo Gallegos Stephanie VanAusdeln Laura Combs Sam Hawker Rebecca Smith Heather Medema Lori Kidwell Kendra Peck Charlie Medema Gabe Padron Aaron Doyle Abel Doyle Kaia Sperl David Eaton Katie Eaton Approval of minutes: March 11, 2019 meeting minutes was motioned by Lori Kidwell and seconded by Kendra Peck. Reminder: Idaho Falls Sister City Youth will meet April 15, May 1 and May 15, 2019 at 7:00 in the library. Treasurer Report: The Treasurer’s Report was given by Lori. March shows $4,118.90 and increase of $1,215.00.. Friendship Garden Clean up Judy Seydel contacted David Eaton and asked for a date the Youth group could help with clean-up and the application of linseed oil to the bamboo posts. The group agreed to May 4, at 3:00 pm weather permitting. Bylaws: The group agreed to wait until the next meeting to approve the Bylaws. Bylaws will be emailed to the group and voted on next meeting. Cultural Event: Janet Youngblood’s Taiko Drumming group will be one of many groups performing at Idaho State University on April 13, 2019 beginning at 5:30 PM. Dinner is included in the price-$7.00 for students and $9.00 for adults for tickets ordered before the event. Please contact David Eaton or Katie Eaton if you wish to order tickets from Janet Youngblood. Cost of tickets at the door the day of the event will be slightly higher in cost. Fundraisers: Garage Sale is scheduled for May 18, 2019. Kendra volunteered to have her garage be used for storage of items for garage sale as well as for the garage sale. The Cherry Blossom Festival is schedule at the Snow Eagle April 25. Janet Youngblood’s Tokoi Drumming students agreed to perform at the Snow Eagle at 5:30 PM. Jorge Padron agreed to contact Mr.Clarke Kido to get Koi fish banner and hang it up for the Cherry Blossom event. Lori Kidwell sent a sign up sheet around to ask for volunteers to sit at the ticket table during the Cherry Blossom Festival at Snow Eagle. Lori also asked if students would send her pictures of Cherry Blossoms. Lori sent a paper around for student wanting to take tickets for presale. She asked each person to help her track tickets by writing the range of numbers on the tickets (beginning number and ending number). She stated that each purchased ticket have the name and phone number of the person you are selling the ticket to. Every ticket entry needs to be placed in the appropriate box (corresponding to the basket/prize of interest) before the drawing which will take place at around 8:30 pm at Snow Eagle. Lori passed out a form to each student so they can keep track of customers wishes for the basket they desire. She stated that winning ticket will be delivered by the person who sold the ticket unless of course the winner is present at the drawing. Points are awarded based on money turned in from ticket sales (1 point for each $80). Ticket pricing is 1 ticket for $1, 6 tickets for $5, or a wingspan (nominally 40 tickets) for $20. The wingspan is a really good deal, so you may find you need a lot of tickets to earn as many points as you can. At the next meeting the adults will finalize plans for the Cherry Blossom. Koi Pond: Discussion on planning will be at the next meeting. Student Exchange: Discussion on planning will be at the next meeting. Kendra and Whitney will meet with all students to create plans for the summer student exchange. The meeting with students will be in a room separate from the adults. Banner: Students are asked to create a design for a banner and bring it with next to the next meeting. Abby Gallegos. Aurora Mahoney, and Sam Hawker were interested in sending ideas to Jorge Padron. Some suggestions for the banner included: Idaho Falls Sister City Youth Group Community Cultural Experience Idaho Falls/Tokai Mura Open to area youth ages 12 to 18 Web address Student Activities Newsletter: The newsletter is nearly complete. Two students need to submit their paragraphs to Kendra before it can be finalized and on the webpage. Logo: Students are asked to create a design for a logo and bring it to the next meeting. T-shirt Design: Students are asked to create a design for a logo and bring it to the next meeting. Game: Students were divided into two teams and challenged each other on Japanese alphabet sound/letter correspondence, words and phrases. Rebecca Smith motioned to that the meeting be adjourned and seconded by Charlie Medema. Statement of Annexation Principles In an effort to provide efficient and equitable tax and fee supported services, encourage orderly growth, and thoughtfully and carefully expand the tax base of the City, the principles espoused in this document are intended to provide guidance when considering annexation. These principles represent the general practice of the City and do not bind City leaders from exercising annexation authority granted by Idaho statutes. Typically, a departure from these principles would most commonly occur as a response to an unusual circumstance or need. General Principles When considering land use and growth, the City of Idaho Falls will prefer annexation policies that: • Encourage Core Development. When possible, the city prefers to support development closer to the City’s core where infrastructure such as roads and utilities already exists. This will help to avoid urban sprawl. • Strengthen the Tax Base. The city recognizes the value of maintaining the efficient and cost- effective provision of both tax and fee-supported services. • Balance Property Rights with Growth. Individual property rights must be protected while at the same time ensuring the City is able to continue to grow. • Provide Public Services and Amenities that Enhance Quality of Life. The Community derives value and strength from a robust Parks and Recreation system, a highly rated Fire Department, excellent Police protection, a wonderful Library, well-maintained streets and neighborhoods, and a commitment to providing a high quality of life at an affordable tax rate. • Support the Comprehensive Plan. The City’s Comprehensive Plan is carefully developed to capture best practice planning principles coupled with careful implementation of public input. The resultant document outlines principles and policies designed to guide growth in a healthy, sustainable manner.. City-Initiated Annexation The City strongly believes there is value in being annexed. The City of Idaho Falls proudly offers excellent tax and fee supported services and utilities. All residents, both City and County, benefit from a strong Idaho Falls. Residents in the County close to the City’s core benefit from being close to City limits and should bear an equal burden in the provision of those benefits. As was argued in a court case in Baltimore in 1918, “Those who locate near the city limits are bound to know that the time may come when the legislature will extend the limits and take them in. No principle of right or justice or fairness places in their hands the power to stop the progress and development of the city, especially in view of the fact that a large majority of them have located near the city for the purpose of getting benefit of transacting business or securing employment…in the city” (emphasis added). At times, the City may exercise its authority to annex prior to the request of the property owner. When considering these city-initiated annexations, the City will strive to: • Focus on properties that receive a City-operated utility. Many such properties agreed to annexation at a future date as a condition of receiving the utility service. However, in cases where the utility was connected prior to 2008, Idaho Code considers the connection to be consent to annexation. Idaho Falls will consider utility connections just as valid as written agreements in terms of consent to annexation. • For properties that do not receive a City-operated utility, focus on properties that are enclaved, i.e. completely surrounded, by existing City limits and which clearly benefit from their proximity to City limits and tax-supported services that support and enhance surrounding City neighborhoods. • Avoid annexing properties on the fringe of the City except in response to unusual circumstances or needs. • Educate property owners of these principles and annexation law to provide predictability and avoid undue concern over potential annexation. The following sections specify how the City intends to exercise annexation authority within the bounds of the Idaho Code Section 50-222 [citation] in conjunction with the principles outlined above: Category A The City of Idaho Falls exercises its legal annexation authority for all Category A annexations. Procedures: 1. For annexation in which, “all private landowners have consented to annexation”: • No public hearing will be required • The application will be considered by the Planning and Zoning Commission (P&Z) for its recommendation • The application will then be considered by the Council for final decision, passage of the annexation ordinance, and adoption of a reasoned statement of relevant criteria and standards 2. For annexation of “any residential enclaved lands of less than one hundred (100) privately- owned parcels, irrespective of surface area, which are surrounded on all sides by land within a city or which are bounded on all sides by lands within a city and by the boundary of the city’s area of impact”: • City staff will hold a neighborhood meeting prior to the advertisement of the proposed annexation • A public hearing will be held before the P&Z for its recommendation • A public hearing will be held before the Council for final decision, passage of the annexation ordinance, and adoption of a reasoned statement of relevant criteria and standards Category B The same procedure will apply for annexations which “contain less than one hundred (100) separate private ownerships and platted lots of record and where not all such landowners have consented to annexation,” as well as annexations where “the subject lands contain more than one hundred (100) separate private ownerships and platted lots of record and where landowners owning more than fifty percent (50) of the area of the subject private lands have consented to annexation prior to the commencement of the annexation process.” These principles do not apply to lands subject to Idaho Code 50-222(5)(b)(v)(c) which exempts land of “five (5) acres or greater, actively devoted to agriculture, as defined in section 63-604(1), Idaho Code, regardless of whether it is surrounded or bounded on all sides by lands within a city” from city-initiated annexations. Category B annexations will be considered when: • The land is completely enclaved by City boundaries, but not subject to 50-222(5)(b)(v)(c) as noted above; OR • The property has at least one (1) utility connection (regardless of an annexation agreement for the property); OR • The parcel is less than 5 acres and: o Is contiguous by more than merely touching corners AND o Includes a primary structure and a primary use that is not agricultural AND o Has immediate access to a utility service Procedures: • City staff will prepare an annexation plan prior to advertising the annexation and send it to property owners within the annexation boundaries • Staff will hold a neighborhood meeting prior to advertisement of the proposed annexation • A public hearing will be held by P&Z for its recommendation • A public hearing will be held by the Council for the final decision, passage of the annexation ordinance, and adoption of a reasoned statement of relevant criteria and standards Category C The City does not intend to exercise its annexation authority for category C annexations Road Rights-of-way Generally the City will not annex a County right-of-way until annexation has occurred on both sides of the right-of-way. The City recognizes that there may be times when it is appropriate to annex the County right-of-way prior to the City having annexed property on both sides of the right-of-way. In these cases City Public Works staff will work with County Public Works staff to determine the appropriate limits for annexing right-of-way. CHAPTER 16 ECONOMIC DEVELOPMENT INCENTIVE PROGRAM SECTION: 1-16-1: Purpose 1-16-2: Eligibility Requirements and Criteria 1-16-3: Available Incentives 1-16-4: Application Procedures 1-16-5: Evaluation 1-16-6: Incentive Agreement 1-16-7: Discontinuance of Incentives 1-16-1: PURPOSE: (A) The City is committed to the promotion of quality development in all parts of the City and to improving the quality of life for its citizens. In order to help meet these goals, the City will consider providing incentives for the retention and/or expansion of existing businesses located within the City and to encourage the establishment of new targeted businesses within the City. It is the policy of the City that such incentives will be provided in accordance with the procedures and criteria outlined in this Chapter. However, nothing in this policy shall imply or suggest, by implication or otherwise, that the City is under any obligation to provide any incentive to any applicant; and all such decisions and actions shall be at the sole discretion of the City Council. All applicants for economic development incentives will be considered on an individual basis. (B) It is the intent of the City to offer economic development incentives on an individual basis so that the total package of incentives, if any, may be designed specifically for each project which is proposed. This approach will allow the City the flexibility necessary to satisfy the unique needs and concerns of each applicant and the needs and concerns of the City and its citizens. 1-16-2: ELIGIBILITY REQUIREMENTS AND CRITERIA: (A) The following are the minimum requirements that must be satisfied for any application for economic development incentives to be considered: (1) Any request for incentives shall be initiated at least sixty days prior to applying for a building permit for construction of the proposed project. (2) The applicant must create one hundred or more new full-time equivalent positions working at a business located within the City. For the purposes of this section, "full-time employee" means an employee who is expected in normal course of employment to provide at least two thousand eighty (2,080) hours of compensated TITLE 1, CHAPTER 16 – ECONOMIC DEVELOPMENT INCENTIVE PROGRAM 1 hours during any consecutive twelve month period. "Full-time equivalent" is any combination of seasonal or part-time employees whose compensated hours during a consecutive twelve month period equals two thousand eighty (2,080) hours. (3) The average hourly wage paid to employees shall be at least twice the federal minimum wage or $15 per hour, whichever is greater. (4) The firm seeking assistance shall provide medical, dental and vacation benefits to full-time employees. (5) The applicant shall provide new capital investment equal to or in excess of $5.0 million if the applicant will establish a new business in the City and equal to or in excess of $2.0 million if the applicant will expand a business in the City or use a building which has been vacant for at least two years. For purposes of this section, "capital improvements" means property improvements that will enhance the assessed valuation of the land and buildings on the property. (6) Any waivers provided under Section 1-16-3(B) shall not exceed $5,000 per full-time equivalent employee. (7) Any waivers provided under Section1-16-3(B) or other assistance provided by the City shall not exceed the amount of estimated City taxes to be levied on the capital improvements within the seven (7) calendar years after receipt of the Certificate of Occupation. (8) Any waivers provided under Section 1-16-3(B) or other assistance provided by the City shall not exceed five (5) percent of the estimated assessed valuation of the land and buildings at the time of issuance of the Certificate of Occupancy. (B) Nothing herein shall imply or suggest that the City is obligated to offer incentives to any person, organization, joint venture, partnership, association or corporation. (C) The City reserves the right to review and change the incentive program at any time, except that where an incentive agreement has been duly executed, the incentive agreement shall supersede. 1-16-3: AVAILABLE INCENTIVES: The City offers a variety of incentives and assistance options for qualifying businesses. The specific type of incentive or assistance will depend upon the needs of the business as well as the benefits created by the proposed business. Incentives available for qualifying businesses are: (A) Expedited Permitting Process. The City may expedite the permitting process required for business location or expansion. TITLE 1, CHAPTER 16 – ECONOMIC DEVELOPMENT INCENTIVE PROGRAM 2 (B) Waiver of Fees. The City may waive all or part of the following fees associated with the establishment of a new businesses: road and bridge fees, storm drainage fees, land use application and plan review fees, and building permit fees. Such fees shall not be waived with respect to any fee for which the services of an outside consultant are necessary to review the application or construction documents or for any other purpose necessary to facilitate the issuance of the associated permit. 1-16-4: APPLICATION PROCEDURES: Any person, organization, joint venture, partnership, association, or corporation desiring that the City consider providing economic development incentives shall submit an application containing, as a minimum, the following information: (A) The applicant's name, name of business entity, principal place of business, mailing address, telephone number, fax number, website address and contact information of an officer or employee of the applicant who is responsible for completing the application. (B) A complete legal description of the property along with a plat showing the precise location of the project. (C) A brief description of the proposed improvements or expansion, including but not limited to the project's estimated cost of construction, fixtures, landscaping and site improvements; the type of business operation proposed, the number and type of jobs created and the anticipated wage or salary of each job position; description of benefits available to employees; the expected source of labor to fill such jobs, the projected date of the commencement of business operations; expected duration of business location based on history of company operations. (D) A brief description of the type of incentives requested. (E) A current financial statement of the applicant, if currently in business, or a prospective financial statement, if a startup business. (F) A proposed business plan for the contemplated business. (G) Such other information as required or requested by the City. 1-16-5: EVALUATION: (A) Each request for incentives will be evaluated by City staff on an individual basis taking into consideration the following factors: (1) Revenue benefit to the City. (2) Number and quality of jobs created. (3) Strength of public benefit to the City. TITLE 1, CHAPTER 16 – ECONOMIC DEVELOPMENT INCENTIVE PROGRAM 3 (4) Ability of the project to spur additional economic development in the City. (5) Impact of the proposed development on existing businesses within the City. (6) Level of applicant's creditworthiness and financial strength. (7) Applicant's willingness to construct public facilities and infrastructure, including but not limited to parks, pathways, library space, police station space, emergency services space, bus stops, public parking, public open space, and public recreation facilities. (B) City staff will provide a written recommendation of full, partial or no incentive to the City Council based upon review of the application and the criteria set forth in this Chapter. (C) The City Council may adopt the recommendation of City staff or otherwise approve economic development incentives based upon its review of the application and the criteria set forth in this Chapter. 1-16-6: INCENTIVE AGREEMENT: (A) If the City Council determines in its sole discretion that it is in the best interest of the City to grant incentives to a particular applicant, a resolution shall be adopted approving the terms and conditions of the incentive agreement with the applicant. The incentive agreement will enumerate the types of incentives to be provided and the conditions applicable to such incentives, if any. (B) All such incentive agreements must, at a minimum, be in writing and include: (1) A description of each of the types of incentives to be provided. (2) The commencement date of the incentives and the duration of the incentives. (3) A legal description of the property indicating its location. (4) Detailed information regarding the type, number, location and cost of planned improvements. (5) A method by which the business receiving incentives will certify in writing to the City that the business is in compliance with the incentive agreement and provide the City with documentation to substantiate the level of value, including but not necessarily limited to, annual company financial reports, state and/or federal employment reports, and Bonneville County tax appraisal statements. TITLE 1, CHAPTER 16 – ECONOMIC DEVELOPMENT INCENTIVE PROGRAM 4 (6) A method for the City to recover all waived fees and costs which are lost as a result of the agreement if the applicant(s) fail(s) to perform its obligations under the agreement. (7) A provision requiring the applicant to keep good and accurate financial records sufficient to demonstrate applicant's performance of the terms and conditions of the agreement and a provision allowing the City to inspect such records upon reasonable advance notice during normal business hours. Such provision shall also require the applicant to provide copies of such records to the City at the applicant's expense, upon written request of the City. (8) Such other provisions as the City Council shall deem appropriate. (C) The incentive agreement shall be nontransferable. Businesses entering into an incentive agreement shall promptly disclose to the City, in writing, any transfer of ownership of the business, any sale or transfer of shares in the business which results in a change of control of the business or any bulk sale of more than seventy five percent of the assets of the business. (D) A provision requiring repayment of all incentives in the event the application contains any misstatement or misrepresentation of material fact, together with interest at a rate of twelve percent per annum from the date each of said fees would have otherwise become due, together with a penalty in the amount of five percent of the total amount of the fees waived. (E) A provision requiring payment by the applicant of the City's reasonable attorneys' fees and costs, in the event legal action is required to enforce any of the terms of such incentive agreement. 1-16-7: DISCONTINUANCE OF INCENTIVES: Changing economic conditions and availability of funds may cause the City Council to modify, amend, or discontinue the economic development incentive program at any time. Should the incentives program be discontinued, the City Council will honor any incentive agreement to which it committed before the discontinuance of the incentive program. TITLE 1, CHAPTER 16 – ECONOMIC DEVELOPMENT INCENTIVE PROGRAM 5

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