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HomeMy WebLinkAboutCouncil Minutes - June 03, 2020 Mayor Jerry Merrill Council Members: Christopher Mann Jordan Busby Mikel Walker Tisha Flora Brad Wolfe Bryanna Johnson City Staff: Stephen Zollinger – City Attorney Matt Nielson – Finance Officer Keith Davidson – Public Works Director Alan Parkinson – Planning & Zoning Administrator Scott Johnson – Economic Development Director Deborah Lovejoy – City Clerk 6:30 P.M. City Hall Council Member Johnson said the prayer. Council Member Walker led the pledge. Roll Call of Council Members: Attending: Council Member Flora, Council Member Johnson, Council Member Mann, Council Member Walker, Council Member Wolfe, Council President Busby and Mayor Merrill. Public Comment: not scheduled on the agenda (limit 3 minutes); issues may be considered for discussion on a future agenda. Please keep comments on point and respectful. Susan Hyde explained she purchased house on an acre lot located at 669 S. 12th W. When she purchase the property she was informed by city staff that she would be able to build a mini home on the property; however, she has been met with many barriers. She is requesting the city to allow her to adjust her septic tank. Before she purchased the property, it was annexed into the city and city code indicates no modifications can be made to the septic tank or to the well. The sewer and water lines would need to be connected to the city’s wastewater and water main lines. The cost of the permits alone to connect the property to those lines is around $4,700 and due to the location of the home, they would need to dig 18 feet into the ground. She spoke with an excavation contractor and was informed the cost to dig the 18 foot hole would cost about $10,000. The estimated cost to connect to the city’s water and wastewater main lines will be about $23,000. She requested her property be exempt from having to connect to city services because the house directly behind her house don’t have to connect to city services because they are more than 300 feet away from the city’s main service lines. Mayor Merrill replied he will need to discuss Ms. Hyde’s request with city staff. Council Member Flora mentioned before Ms. Hyde purchased the property she was informed by city staff that she could legally build the mini house on her property. Ms. Hyde said she was not informed she would need to connect the mini house to the city’s wastewater and water systems. She received a letter from the District 7th Health Department informing her a small RV septic tank could be built on her property for the mini home. Council Member Wolfe said the city employee stating the mini home could be placed on the property was correct; however, certain permits are required to meet code. Introduction of New Employees: Marion McBride – Office Manager Police Dept., Dianne Bullock – Customer Service Police Dept., Jed Platt – Cultural Arts Director, Cameron Garn – Golf Pro, Patrick Jackson – IT Support Manager Mayor Merrill asked the new city employees to introduce themselves. Marion McBride said she is original from Arkansas and met her husband of 28 years here in Rexburg. They moved to Idaho Falls and have three daughters. Dianne Bullock said she move to Rexburg in 2011 to attend BYU-Idaho University and graduated four years ago with a degree in Humanities. She married a local resident and they have an 18 month old daughter. Jedd Platt said he has been working for the city the last six week and has enjoyed being acquainted with everyone. He is originally from Salt Lake City Utah and his wife is from Arizona. They have a four year old son and six year old daughter. He invited everyone to the first community art show starting on Friday with: The Art of Gathering: TAKE A SEAT! This month experience a drive-by community art show. On Friday, June 5--while supplies last--100 folding chairs will be displayed on the field west of the library (spaced 6 feet apart, of course). To participate in this exhibit, drive through the bus lane at 1st W and 1st N and “take a seat” home with you. Using your supplies, creativity and the theme of “community,” create a work of art with a chair as your canvas. Return your piece to the field on Friday, June 12 before 10 AM; then drive by and see the art of coming together as a community. Show runs June 12-13.   STAY-ART-HOME is a collective art show featuring the creativity of our community. How did you innovate, experiment, or express your inner artist during the stay-at-home order? Any medium (paint, play dough, photography, tinfoil…) is welcome. Entries will be accepted 10 AM-4 PM Tuesday, June 30 at the Tabernacle (25 N Center St). Come and be inspired by the ingenuity of others; commemorate “the experience we shared together, while being apart.” Show runs July 2-3 in the Tabernacle.   Patrick Jackson said he grew up in Cleveland, Ohio and Texas. He served in the military and is a disabled veteran. His desire is to one day be a City Council Member. He has been married for six years and has six children. Staff Reports: Community Development: - Bret Stoddard Building Official Stoddard reviewed the Building Valuation Report for the month of May. There has been an increase in the number of building permits being requested. The City Building Inspectors continue to assist the county with the commercial and mechanical inspections.  Council Member Busby questioned the amount of permits being requested for this May compare to last May. Building Official Stoddard explained the valuation report is not the report that would be used to compare the number of permits being issued each year. There are many factors to consider when comparing the number of permits being requested at a certain times during the year. He said he believes this is an average year and the Covid-19 Pandemic has made a large impact on the construction taking place in the city. Council Member Mann asked about the old Cal-Ranch building remodel. Building Official Stoddard replied the general contractor applied for permits to begin the work on the outside of the building several months ago. They currently applied for permits to begin the remodel of the inside of the building. The remodel has taken longer than planned due to the pandemic. Public Works: - Keith Davidson Public Works Director Davidson reported on the signal light installation on 7th North and 2nd East project, it went out to bid. There was only one bid received and the bid came in higher than anticipated. The project will go out to bid for a second time. City Engineers contacted other potential contractors that weren’t aware of the project. The new signal will be synchronized with the adjacent signal. Public Works Director Davidson reported there are several other projects being advertised for bids including the Moody Road and Yellowstone Highway intersection improvements project. Urban Renewal is funding the improvements and a state grant was awarded to install the railroad crossing signal arms. The baseball quad lighting installation project will be out to bid on Friday. The top soil dug from the Barney Dairy property is in good condition and will be used for baseball quad. Public Works Director Davidson reported the LED Street Lighting project is also being advertised for bids. The project consists of replacing the street lights throughout the city. There are some incentives from Rocky Mountain Power to change to LED lights. Council President Busby asked how many lights will be replaced. Public Works Director Davidson replied all of the light in the city will changed to LED; however, there are some lights Rocky Mountain will need to install. Mayor Merrill said he was at Nature Park and noticed one of the entryway blocks on the restroom building has started to crumble. The water from the sprinklers has been hitting that block causing the block to absorb water and deteriorate. Council President Busby asked when the restrooms located in the city parks will be reopened. Mayor Merrill indicated the restrooms will reopen tomorrow except for the Eagle Park restrooms because of a broken window. Mayor’s Report: Mayor Merrill reported he received an email from City Grant Writer Mary Flanary stating the Idaho Humanities Council has awarded a grant to the city in the amount of $3,750. The grant funds will be used for Cultural Arts events and to pay the wages of Cultural Arts employees. Council Member Busby asked the Council Members if they would prefer to walk or ride on golf carts in the Fourth of July Parade. Council Member Mann indicated the parade route is about four blocks longer this year. Discussion regarding the parade route. City Council decided to use golf carts to ride in the parade. Public Hearings: NONE Items for Consideration: NONE Calendared Bills and Tabled Items: Second Reading: Those items which have been first read: Ordinance No. 1226 Development Code, Ordinance No. 1200 Amendment of Highway 20 Corridor Sign Height to 50 feet #20-00079. Council Member Mann mentioned there were many residents opposed to raising the sign height during the first request. He asked to review a map of the Highway 20 Corridor to determine the areas of where the signs would be located. A map was reviewed on the overhead screen. Council Member Flora also requested to review the map to determine how close the signs are to houses. Council Member Mann said he feels raising the sign height is unfair to the current business owner whose signs aren’t as high as this change would allow. He believes the new trend is to have monument size sign instead of the higher large sign with increased height. The new trend can be seen with the new Wal-Mart sign. Discussion regarding some of the signs around the Highway 20 Corridor and the sign heights. Mayor Merrill said a study was performed to determine a suitable sign height. Public Works Director Davidson indicated the purpose for changing the sign height is to make the signs visiable before it is to late for a driver to exit off the highway. Planning and Zoning Administrator Parkinson said there is a business that blocks the view of some of the current sings in place that is another reason why the add sign height is needed. Council President Busby mentioned before a sign can be installed in the city a person will need to apply for a pemit. Council President Walker moved to second read Ordinance No. 1226 – Development Code, Ordinance No. 1200 Amendment of Highway 20 Corridor Sign Height to 50 feet; Council President Busby seconded the motion; Mayor Merrill asked for a vote: Those voting aye Those voting nay Council Member Flora Council Member Mann Council Member Johnson Council Member Walker Council Member Wolfe Council President Busby The motion carried Ordinance No 1228 Rezone 150 N 2nd W to Mixed Use (MU) #20-00141. ORDINANCE NO. 1228 Rezone Approximately 150 North 2nd West from Light Industrial (LI) to Mixed Use (MU) AN ORDINANCE AMENDING AND CHANGING THE ZONING MAP OF THE CITY OF REXBURG, IDAHO, AND PROVIDING THAT THE ZONED DESIGNATION OF THAT CERTAIN PROPERTY HEREINAFTER DESCRIBED, SITUATED IN REXBURG, MADISON COUNTY, IDAHO, BE CHANGED AS HEREINAFTER DESIGNATED; AND PROVIDING WHEN THIS ORDINANCE SHALL BECOME EFFECTIVE. Council Member Flora moved to second read Ordinance No. 1228 the Rezone at approximately 150 N. 2nd W from Light Industrial (LI) to Mixed Use (MU) with the cnditions outlined in the city staff reviews; Council Member Johnson seconded the motion; Mayor Merrill asked for a vote: Those voting aye Those voting nay Council Member Flora None Council Member Johnson Council Member Mann Council Member Walker Council Member Wolfe Council President Busby The motion carried Third Reading: Those items which have been second read: NONE Mayor’s Business: Consent Calendar: The consent calendar includes items, which require formal City Council action, however they are typically routine or not of great controversy. Individual Council members may ask that any specific item be removed from the consent calendar for discussion in greater detail. Explanatory information is included in the City Council’s agenda packet regarding these items. Minutes from May 20, 2020 Meeting Approve the City of Rexburg Bills 2020 Fireworks Stands Permit Approval Council Member Wolfe moved to approve the Consent Calendar containing the minutes, city bills and the 2020 Fireworks Stand Permits; Council Member Johnson seconded the motion; Mayor Merrill asked for a vote: Those voting aye Those voting nay Council Member Flora None Council Member Johnson Council Member Mann Council Member Walker Council Member Wolfe Council President Busby The motion carried Fiscal Year 2021 Budget Review & Acceptance of Tentative Budget – Matt Nielson Finance Office Nielson said there are 16 different documents in the City Council’s packets and he will only be reviewing several of those documents. The City Council’s goal is to come to an agreement on adopting a tentative budget. He would then advertise the public to hearing to take place on the 1st of July at 7:00 P.M. Finance Officer Nielson reviewed the General Fund Balance Carryover Report. This is the fund that is the most scrutinized. The City’s policy has been to keep the carryover balance between 33 and 25 percent. After all of the budget meetings and all of the budget requests were entered the initial request for the 2021 budget indicate the reserves would drop to 21.97% which is lower than the 25% threshold. He said the purpose of having reserves is to have available funds for when unforeseen situations arise such as the Covid-19 Pandemic. He and Mayor Merrill meet to review all of the budget items to determine which areas to cut from the budget and then he met with the Department Heads to review the budget cuts. He said after the budget cut discussions he entered all of the data to be able to come up with a proposed budget and determined after the final cuts the minimum reserve percentage of expenditures at the end of Fiscal Year 2021 would be slightly above three million dollars and the actual percentage would be at 25.01% meeting the city's threshold policy.  Finance Officer Nielson reviewed the General Fund Transfers-Subsidies. There are several additions to the number of subsidies including the New City/Police Building Reserve and Fiber Reserve. Council President Busby asked why the Rapids Cap Replace Fund is receiving an increase of $10,000. Finance Officer Nielson explained the fund was forecasted at a reduced revenue for Fiscal Year 2020 with a slight increase in revenues for Fiscal Year 2021. He also included the capital demands one being the stairs for the waterslides. If the increase was not include the fund would have been at a loss of about $7,000 due to the capital demands and revenue loss.   + Finance Officer Nielson explained the city has the option of raising property tax by zero to three percent; it can also be raised by new construction. Madison County is estimating new construction at about $81,574,611; however he was informed by the county to only take into consideration about 90% of the estimated rate due to possible reductions. The 90% consideration was taken which equals an estimated amount of about $73,417,150. The possible increase in property taxes is estimate at about $304,850 in new construction. He was only estimating about 30 million dollars in the new construction tax rate during the initial budget process. Council Member Mann asked if it’s the city’s practice to take the full 3% increase and does the city have foregone funds available. Finance Officer Nielson replied it has been the city’s practice to take the full 3% increase and the city has a zero foregone amount. The city has the option of only increasing the property taxes by 1.5%. He mentioned the county is going to try to keep a zero increase; however, the city does have a low levy rate. City Council has the option of changing the tax rate at the time of adopting the tentative budget. The tax rate can also be advertised at the 3% and then reduced.  Mayor Merrill mentioned there are cities and counties that are considering not increasing the tax rate and others that are taking less than the 3%. Council Member Flora explained the home owners will not see a significant increase; however, the business may notice a greater difference. She would prefer to know the tax increase amount for each business. Finance Officer Nielson replied the property tax amount varies per business based on several factors one being a reduction in the property assessment value. The 1.5% would equal an overall increase of $76,600 and double this amount for a 3% increase. Mayor Merrill mentioned the sewer rebates the city is considering for businesses that didn’t have a large sewer usage during the three months of closure due to the Covid-19 Pandemic. Council Member Mann indicated he is favor of the 1.5% increase in property taxes. City Attorney Zollinger explained the reason why the city has a low tax levy is due to the Teton Dam Flood. He said shortly after the flood the council members at that time decided to take a zero tax increase as a gesture of goodwill to the community members. The decision to take the zero tax increase had consequences in later years. Council Member Mann mentioned there is a risk with having a zero tax increase because the Idaho Legislators could ask cities to keep the same percentage of increase as the prior year. Council Member Wolfe questioned the reason why the city’s budget can’t be reduced to offset a zero percent tax increase. Discussion regarding the budget cuts in supplies, travel etc. Finance Officer Nielson explained the Street Fund is taking an 18% reduction in gas taxes. Council Member Walker said he is hesitant in not taking the full 3% tax increase because of the consequences that may arise with not having sufficient funds to complete need projects. Discussion regarding placing the percentage of taxes not used into foregone; however as City Attorney Zollinger mentioned the Idaho Legislators could change how the foregone amount is used. There has been discussion of removing the new construction tax by the Idaho Legislators. Council Member Flora said she believes the city residents are more interested in street repairs than a slight reduction in property taxes. Mayor Merrill said he is concerned about the business such as hotels receiving a higher increase in taxes during an economic downturn. Council Member Flora explained some business such as hotels will be reassessed for tax purposes and may be devalued. If a business is devalued after the reassessment their taxes will be lowered. Council President Busby said some business may also receive tax relief from state and federal agencies due to the Covid-19 Pandemic. Council Member Busby questioned the sewer rebate the city is considering and the type of businesses that were selected to receive the rebate. Finance Officer Nielson replied non-profit business were not consider for the sewer rebate. The city only considered for profit businesses and apartments. Council Member Busby said he is in favor of increase the property tax to the full 3% because as Council Member Flora indicated the city needs to maintain an adequate level of services for the residents. Mayor Merrill stated the city will keep the 3% increase in property taxes. Finance Officer Nielson reviewed the budget request for capital and new personnel. The last column shows the amount of funds cut from the department.   Finance Officer Nielson reviewed the General Fund Department Total Increases chart.  Finance Officer Nielson reviewed the Fiscal Year 2021 Personnel Requests. The only full time position included in the budget is the Street Department.    Finance Officer Nielson reviewed the Fiscal Year 2021 Capital Requests chart. Discussion regarding the Fire Department’s replacement vehicles and the Sanitation Department’s garbage truck.   Discussion regarding the Wastewater Plant and Parks Department budgeted projects.   Finance Officer Nielson reviewed the Utilities Sample Bills and the increase for the Fiscal Year 2021. The calculations are based on a three year use of water, sewer and garbage. Discussion regarding the cost for the recycling program. Council Member Flora stated the importance of informing the city residents about the expense of the recycling program.  Finance Officer Nielson reviewed the City of Rexburg 2021 Budget Highlights. He will change the 1.5% increase in property tax to 3% that was agreed upon by City Council.    Discussion regarding the airport’s feasibility study and the time frame for each study. Council Member Busby questioned if there is an expiration date on the feasibility study. City Attorney Zollinger replied there have been several feasibilities studies; however, not one of those studies has been for the current location being studied. Finance Officer Nielson said the studies need to be updated to receive funding form Federal Aviation Administration (FAA). Discussion regarding the construction of the path passed the Madison Jr High School. Council Member Johnson asked when the construction of path will begin. Finance Officer Nielson read the State of Understandings of Budget Management.  Finance Officer Nielson reviewed the Notice of Public Hearing that will advertised in the local newspaper.        Council Member Flora moved approve the Tentative Budget for Fiscal Year 2021 with the changes discussed; Council Member Walker seconded the motion; Mayor Merrill asked for a vote: Those voting aye Those voting nay Council Member Flora None Council Member Johnson Council Member Mann Council Member Walker Council Member Wolfe Council President Busby The motion carried Council Member Walker moved to go into Executive Session per Idaho State Statute 74-206 (b)  To consider the evaluation, dismissal or disciplining of, or to hear complaints or charges brought against, a public officer, employee, staff member or individual agent, or public school student; Council Member Wolfe seconded the motion; Mayor Merrill asked for a vote: Those voting aye Those voting nay Council Member Flora None Council Member Johnson Council Member Mann Council Member Walker Council Member Wolfe Council President Busby The motion carried Executive session began 8:26 P.M. Executive session ended 9:37 P.M. Discussion after the executive session, City Council briefly discussed a change to the city’s compensation system that would eliminate lump sum merits in the future and move base pay from step 37 to step 41. City Human Resources Director Hill will need to modify the Compensation System to reflect this change and present to City Council to officially adopt the policy change, which will then have to be reflected in the employee handbook to be distributed to the city employees. They also discussed merit raises for Fiscal Year 2021 and a motion was made to freeze wages in Fiscal Year 2021 and do a 2.49% COLA on October 1, 2020, which means that whatever your base pay (pay period base pay x 24) is on 9/30/20, then you will make that same amount in Fiscal Year 2021, plus 2.49% COLA. Council Member Flora moved to approve a City Employee Wage Freeze in Fiscal Year 2021 and approve the 2.49% Cost of Living Adjustment on October 1, 2020, which means that whatever your base pay (pay period base pay x 24) is on 9/30/20, then you will make that same amount in Fiscal Year 2021, plus 2.49% COLA; Council Member Wolfe seconded the motion; Mayor Merrill asked for a vote: Those voting aye Those voting nay Council Member Flora None Council Member Johnson Council Member Mann Council Member Walker Council Member Wolfe Council President Busby The motion carried Finance Officer Nielson stated that he will modify the Fiscal Year 2021 Tentative Budget to reflect those changes when published. Adjournment 9:37 P.M. APPROVED: ________________________________ Jerry Merrill, Mayor Attest: _____________________________ Marianna Gonzalez, Deputy City Clerk