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Home My WebLink AboutCouncil Minutes - March 20, 2024(208) 359-3020 35 North I't East Rexburg, ID 83440 Rexburg.org I Engage.Rexburg.org .................................................................................................. City Council Minutes — March 20, 2024 Mayor Jerry Merrill Council Members: Bryanna Johnson Erick Erickson Robert Chambers David Reeser Colin Erickson Mikel Walker 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 6:3o P.M. Council Member Chambers said the prayer. Mayor Merrill led the pledge. Roll Call of Council Members: Attending: Council Member Johnson, Council Member Chambers, Council Member C. Erickson, Council Member E. Erickson, Council Member Reeser, Council President Walker, and Mayor Merrill. Presentation: New Tabernacle Documentary — Jed Platt Cultural Arts Director Platt explained many people are aware of the city's 50 years of stewardship over the historic Tabernacle, they are commencing the Tabernacle's Legacy Campaign to preserve the beauty of the building and its story. The Idaho Humanities Council awarded the city a grant to produce a short film about the Tabernacle. He worked with the Soapbox Agency, a group of students from BYU- Idaho University to produce the film. The film was viewed on the overhead screen and the link to view the film is https://youtu.be/1-oVaFwg20E Bryson Bigler explained he has worked on the film since last year. Before presenting the film tonight he added some final touches. As he visited the Tabernacle it changed his perspective of what the building stands for and what it is, these aspects were captured in the film and that is what he wanted to accomplish. Public Comment: Items not on the agenda; limit 3 minutes; issues may be considered for discussion on a future agenda. Please keep comments on point and respectful .:_o:18:oc) David Taylor said he would like the water and sewer impact fees for new businesses to be an item of discussion on the next City Council Meeting Agenda. He said living in the City of Rexburg has allowed him many opportunities to operate businesses in the Upper Valley and throughout the Mountain West. He has been involved in operating an automobile business and other ventures. Mr. Taylor said he recently submitted a building plan to the city for a franchise business named Tommy's Express Carwash. When he received the estimated building permit costs, the costs were about $350,000. He believes the high costs of building permits will block new businesses from building in Rexburg. He asked the Councilmembers to keep in mind a new business lacks capital; therefore, it would be difficult for new businesses to be able to pay the high cost of building permit fees. Mr. Taylor explained he has seen a lot of development in the valley; however, there is a void in Rexburg of the type of development that will retain our children and grandchildren so they can live in the valley and make a living. Some of our children move away and later are able to return to Rexburg; however, they are unable to make a great economic impact on the valley. He wondered what successful communities such as North Logan, Layton and St. George do to generate new businesses. He said he is not asking for a rebate on the building permit fees; however, he would like to discuss changes to the fees going forward. Items from Council: Committees: MEPI, Cultural Arts, Grants, School Board, MUSIC, MYAB, Traffic & Safety, Emergency Services Board, Trails, Beautification, Parks, Recreation, Urban Renewal, Airport, Golf Board, and Legacy Flight Museumo:; Council President Walker reported the Mayor Youth Advisory Board will be meeting tomorrow to hold a mock city council for their Rexburg Government lot March meetings. Council Member Johnson reported on the Roadside Clean Up event on Saturday, April �7th from 8 a.m. to IT a.m. The city is assisting the residents that organized the event by supplying trash bags and safety vests. On Monday, May 13th the city is hosting the Eagle Park Clean up from 5 p.m. to 7 p.m. She encouraged all to attend these clean up events. Mayor Merrill also reported he was at the Skate and Dog Park the other day and asked the patrons visiting the parks if they would assist the city by picking up the trash that has accumulated during the winter months. The residents said they would organize a community clean up event for the Skate Park and Dog Park on Saturday, March 3oth at noon. Other Reports: Mayor Merrill said the city was awarded a two -million -dollar Reconnecting Communities grant from the U.S. Department of Transportation. The city is using those grant funds to complete the studies and design work for the overpasses along Highway 20. Staff Reports: - - A. Finance: - Matt Nielson i. Financial Reports Finance Officer Nielson reviewed the Cash and Investment Balance Report. He said about 8o% of the invested funds are in the duration of two years. The Finance Department is slightly changing their investment strategy to try to get the ladder to be closer to the 2-3 years mark, meaning that when they reinvest instead of 12 to 18 months, they will look at 2-3-year terms. He said he also tries to match the terms to the capital improvement plan for cash flow purposes. CITY OF REXBURG FY 2024 CASH & INVESTMENT BALANCE REPORT %of Total BALANCE Portfolio AS OF CASH 8 INVESTMENTS Rate'Yield < 1 YEAR 1-2 `'ears 2-_. Y-ars 3-4 Years 4-5 Yeas > 5 YEARS 2,129i2024 Cash On Hand NA 326G 01.0 .2tk? £'ons Banc General Checking NA 534,553 1-10 % 534.3 Z. ons Bank I'mro1 Checking NA 366,738 0.75% 366,T38 i ions Bank Collateraiad Aod 020% 2,471,435 5.09`. a 2,471 435 Key Bank CheckitgiRLFI CAT% 61,313 0_i3% 61.313 Yi4Bs Fargo Dn,4 Fund Checking 0.01% 13,822 0.03'.%0 13,829 Wets Fargo Fire (tst ict Banking 0.03% 251.012 0.52% 251.012 Bank of Conn erce Legacy FAA a_10% 67.017 0.14% 67,017 Total Cash Accotetts 3,769.157 7.76 3.769.157 Bark of Commerce Bard CD 2-84% 287.389 0-59% 287.389 L1'estraykCD 2.05% 26'1,994 0.54% 2619994 Beehive Crecit Union CD 248% 250.153 0.51% 250.113 Fronter CU CD 2.02% 518273 1.07% 518.273 Idaho Central Credit Union CD ? 97% 250.025 0.51% 250.025 Mouraain Anreica C-edit Union 3-40% 10.691 0.02% 10,691 Citizens Community Bank 4.50% 23$000 049% 238.000 Citv Golf Cart CD - Internal 3-00% 1%.796 0.32% 156.796 Total Certificate of Deposit Investments 1.816,525 156.796 COG% 1,973.321 R9aeton Asset Management 5.02% 4,%8.702 1,773.448 2.65154T 254.720 19.70% 9.570,417 Zkxu Batt Canal Aa-.izors 5.18% 2,274,555 1,919,351 %8,277 250.31 I 11.12% 5,402 494 T'dl - Bond Im,a tment 2.74% 3,400.13M 2,371,534 2.068,785 1,2'61,454 988.w 20.TT% 10,091.633 rA - Bond Investnent - Fre Dstrict a.60% 611,166 1.26% 611.166 State Dr&wsified Born Fund 3.591/1 1,663.045 1,98Z230 -512,542 8.56% 4,157.817 StateLGIP-City5.41% 11,529.059 204,139 24.15% 11.733,198 StateLGIP-FneDistrici 541% 655497 11,615 1.37% 667.612 StateLGIP=iLF 6-41% 271.501 4.807 0-57% 276,309 Total Managed Invesunents 25,023,404 8.262,317 5.680,609 1,766.486 988.980 512.542 $7.51% 42.510.647 Real Estate Investments iStreetsy NA 610,983 0.67% 327,334 Total Real Estate ktvesonents 610.093 0.671. 327,334 GRAND TOTAL 31.219.169 8.262.317 5.680.609 1,766Q 1.145.TT6 512.542 100%; 9 LIO . 11. ,< .4 AN s Finance Officer Nielson reviewed the Treasurer's Expenditure Report by Fund Report. There are about five different funds for the streets that have reserves. He has discussed ramping up the construction projects for the next few years with Public Works Director Davidson. He noted when talking about fund balance versus cash and investments in governmental accounting in a business type fund such as sanitation, water, and wastewater you have to include the assets. CITY OF REXBURG TREASURER'S EXPENDITURE REPORT BY FUND MONTH ENDING 2/29/2024 Ca 41.7%OF THE FISCAL YEAR 2024 41.75E CASH/ PERSONNEL OPERATIONS OTHER CAPITAL TRANSFER TOTAL REVISED FUND INVESTMENT FUND EXPENSE EXPENSE EXPENSE EXPENSE EXPENSE EXPENSE BUDGET SPENT BALANCE BALANCE __o ox c,,___ 1.607.d15 v.S1,373 IF.062,700 _c OPERATIONS 250,435 212,280 112.2-; 1.G51.625 5,408. b00- ._ __z 67 C25 3.750 C C. 85,206 311.400 'OVS ._. = .111 0 Sn,508 0 308,544 L060,700 10=: -_. 0 0 0 ,. 0 0 17,000 .._'.;, , _ 607 0 0 0 607 3,2C0 0 0 14,313 45.a00 __- -..- _� 232 0. 63,500 0 63,732 75.300 36`-. _ o c : _ .. : c3VICES 1,536 =' 626,661 104,420 71,183 0 2,333r=10 5:562,900 12 - --. - _. =>-aIC 0 49 0 1-a,417 0 1E,166 1:157,oCX} _ _.: _.._-- 0 0 0 0 16,670 16,670 4C.000 12'c- __EN-E:'sP_OYEE 0 6,090 651001 12'2u 26,625 21,316 1.015 0 0 5+4,166 601,400 „ 7,647 0 C 0 7,647 253,&V ___ _ _ _- -__ 200136e 6651585 340,160 165,175 0 1,39 L. 3237,000 =26,651 315,433 1195>G 159.859 0 1,321,E '. 4,778,400 zzi- __ __ _ _ 61886,06 ,_ 539,175 5351122 5551645 1n,959 0 L774,105 1011101100 11'S =_ __.._ _ 7,2214.293 264,537 42,167 55,550 0 0 362,305 L11$000 3T: _.__.._ 1,026.073 __ vc_C-.6'FC '.-v3:'A'IOR SYSTEM 167,611 =9,362 0 0 0 217,203 536,70C zc-y -31.677 L 30 DOWNTOWN REV :-C._'_4 ION 0 0 0 0 0 0 0 0% 0 31 SHOP BUILDL..= 0 0 0 0 0 0 0 0% 0 32 NEW B! DG C -, 0 0 0 0 0 0 425,000 09f 1.200,000 33 STREE---..-===.-=-AL 0 0 0 0 0 0 667.51 OP: s.D79,432 34 WATER C::=:--_-,ESE3V'_ 0 0 0 0 0 0 1,250AG0 0°: _ 50E,793 35 SEWER CAP...-_=:ESERVE 0 4,716 0 0 0 4,71' 2,944,600 Oi: 36 ARTS PROW -GA -ION 0 0 0 0 10,420 10,420 70,000 15i: _: _ 726 37 PARAMEDIC CARE WILDLAND 108,549 32,869 0 39,999 0 161,417 1,399,300 13,c 38 PARKS IMPACT FEE CAPITAL 0 0 0 33,131 12,500 45,681 841,000 5', =20.716 39 TRAILS OF MADISON COUNTY 0 0 0 0 0 0 50,000 0`r _:. -75 40 R0rv:A\'CE THEATER 20,393 22,460 0 26,136 0 6f"990 305,800 23'u 41 F1:= .. ..-= _ :-ION 0 0 0 0 0 0 495,000 0`' 192,387 A2 WA -ER Ca:Cw_ CONSTRUCT 0 0 0 0 0 0 715,000 W9 0 43 STREET REPAIR/RECONSTRUCTION 0 7,683 0 39 0 7,721 3, 152XO 0% 2,661,459 44 STREET NEW CONSTRUCTION 0 0 0 772,058 0 772,05E 2,082,500 37-1 172,176 47 AIRPORT OPERATIONS 7,17E 6,612 9,065 0 0 22 61,300 37`.6 - -5E• 48 AIRPORTCONSTRUCTION 0 0 0 93 0 93 366,600 0% "_ _ - PERSONNEL OPERATIONS OTHER CAPITAL TRANSFER TOTAL REVISED FUND a FUND EXPENSE EXPENSE EXPENSE EXPENSE EXPENSE EXPENSE BUDGET SPENT BALANCE 0 0 1,429,107 2,312,195 2,750,979 3,831,632 169,250 478,912 401,629 269.875 29,462 3=-i,669 0 2,911,037 77,672 -10,723 74,105 CASH/ INVESTMENT BALANCE 49 AIRPORT RE! OCATION RESERVE 0 0 0 0 0 0 3E.000 0:: 1,021,ssE 1,C156,995 50 GOLF COURSE OPERATIONS 169,136 113,778 25,635 52,145 0 360,694 1,369,900 26L;, 415,962 223,171 51 GO_F COURSE DEBT SERVICE 0 0 0 0 0 0 197,200 0% -111,653 -159.349 52 SEWER CAPITAL CONSTRUCTION 0 0 0 38,167 0 36,167 2,650,000 1% 0 753,209 53-58 LID CONSTRUCTION FUNDS 0 128 0 382,398 0 382,525 2,950,000 13% -689,163 -1.071.68E 59-79 LID DEBT SERVICE FINDS 0 0 0 0 0 0 694,700 0?E 4,6311551 -1.6-1 .S27 £1 REXBU RG C'U LTURAL ARTS 29,216 64,902 0 0 0 94.116 280,900 34% 0 -.563 £2 FIBER CONSTRUCTION 0 0 0 74,690 0 74,690 200,000 37'. 330,646 255,956 63 ENTREPRENEURIAL PROGRAMS 0 169,211 0 0 0 169,211 23,600 717ie 67,038 -10.503 £4. N INTERCHANGE CONSTRUCTION 0 0 0 0 0 0 3,031,000 OS_ 0 0 65 COMM. SAFETY LIGHTING 0 1£,292 0 383,852 0 402,144 570,000 71zx 843,414 54654 66 FIBER OPERATING 0 3,450 0 0 0 3,45C'• 150,000 0i% 0 17,223 91 SHOP WITH A COP 0 17,853 0 0 0 17 `.? 17,000 105i4. 43.967 47,533 93 AMBULANCE CAPITAL REPLACEVEN- 0 0 0 0 0 402,600 0% -06.082 417,217 .. REXBL'RG ARTS COUNCIL TRUST 0 0 0 0 0 0 O% it 0 95 C11' S01!3 FOUNDATION 0 0 0 0 0 10,000 0';: 5,069 5,0690 -__ TOTAL $8,309,005 $4,084,826 51,849,170 52,873,938 $1,647,205 $38,964,145 $81,981,400 23% 585,258,888 $48,580,499 Citizens are Invited to inspect the detailed supporting records of the above financial statement. This repot can be found cn our .vebsde at wvm. roxbu ra. oralf na rice. page � (n aneial-reports 2. Review and approve options for Pickle Ball Courts Finance Officer Nielson said a survey was sent to respondents asking first if they play pickle ball and 185 respondents replied saying they play pickle ball. The second question they asked the 185 respondents was to choose one of the two options: build four courts indoors or build eight courts outdoors. The results were too respondents said build four indoor courts and 85 respondents said build 8 outdoor courts. The respondents were then asked if they would be willing to pay a fee to use the indoor courts. The responses for the amount of fee the respondents would be willing to pay ranged largely in dollar amount. Finance Officer Nielson reviewed a map of where the pickle ball courts would be built in the Don Jo Sports Complex. He also reviewed the dimensions of the courts. He recommended to bid out for four post tension concrete courts with the first bid alternate for lighting and a second bid alternate with fencing. The reason for the bid alternates is if there is sufficient funding in the fall to build a building covering the courts then would not need the fencing or the lighting. Council Member C. Erickson asked if a bid could be requested for the building as well. Finance Officer Nielson replied yes, a bid for the building could also be obtained and he believes the cost is going to be about $400,000. Council Member Johnson expressed her concerns with covering the courts and charging patrons to use the courts because it adds another layer of costs and possible issues. She believes it would be easier not to charge to use the courts. Finance Officer Nielson said whether the city decided to charge or not to charge oversight of the courts will still be needed. I r-36'-0'� I.: I 68 -0"64 -0" 3 Council Member Chambers asked how the indoor courts are going to be heated. Finance Officer Nielson replied, the building would be heated with infrared heaters over the base lines, the building would not be completely insulated. Council Member E. Erickson moved to approve to bid the four Pickel Ball Courts and alternate bids for lighting, fencing and building; Council Member C. Erickson seconded the motion. Mayor Merrill asked for a vote: Those voting aye- Those voting nav Council Member Johnson none Council Member Chambers Council Member C. Erickson Council Member E. Erickson Council Member Reeser Council President Walker The motion carried. B. Public Works: - Keith Davidson i. Surplus Cardboard Baler Public Works Director Davidson explained about 12 years ago the city purchased a cardboard baler for BYU-Idaho University, when they were operating their community recycling program. Some of the reasons he is recommending to surplus the baler are parts for the baler are no longer available and BYU-Idaho is no longer participating in the community recycling program. The city is using Western Recycling to pick up the go -gallon containers containing recyclables from the resident's homes. Council Member Johnson moved to approve the Surplus of the Cardboard Baler; President Member Walker seconded the motion. Mayor Merrill asked for a vote: Those voting aye Council Member Johnson Council Member Chambers Council Member C. Erickson Council Member E. Erickson Council Member Reeser Council President Walker The motion carried. Those voting nav none Public Works Director Davidson recommended setting the Spring Clean Up Days from April 15th to May 6th. Mayor's Business: A. Historical Preservation Commission Appointment Ratifications for Rick Robinson, Ronny Nowland, Jason Flora, Jamie Patten, Lisa Jones, and David Jones Mayor Merrill recommended ratifying the appointments of Rick Robinson, Ronny Nowland, Jason Flora, Jamie Patten, Lisa Jones, and David Jones to the Historical Preservation Commission. Council Member Reeser moved to approve to ratify the appointment of the following individuals: Rick Robinson, Ronny Nowland, Jason Flora, Jamie Patten, Lisa Jones, and David Jones to the Historical Preservation Commission; Council Member Chambers seconded the motion. Mayor Merrill asked for a vote: Those voting ave Those voting nav Council Member Johnson none Council Member Chambers Council Member C. Erickson Council Member E. Erickson Council Member Reeser Council President Walker The motion carried. 2 Mayor Merrill mentioned several meetings and events taking place at the beginning of April in the city. There is the Local Emergency Planning Committees (LEPQ meeting on April 3rd in the morning. The community Easter Egg Hunt is on Saturday, March 30th at Porter Park. The Kiwanis Club, with help of city staff, has been able to collect 47 bikes as prizes for the Easter Egg Hunt. These bikes were donated by local businesses. The city's Economic Development Department held their Big Idea Competition. There were 18 competitors that presented business ideas and three winners. The first - place winner won $500, second -place winner won $30o, and third -place winner won $ioo. Mayor Merrill reported the Chamber of Commerce had restaurant rush week. The Idaho National Laboratory (INL) invited him and the Councilmembers on a tour of the INL. Council President Walker added anyone can tour of the INL. A group called Madison Interagency Council held a meeting at city hall. David Merrill is the organizer of that council. The council consists of all the non-profit entities in the area. Mayor Merrill reported he and Council President Walker attended the Community Conversation Event. The event focused on Law Enforcement and Behavioral Health, Resources for Children and Families, Recovery Coaches and Support Meetings. He also attended a Cloud Seeding Program Board meeting. The city contributes a few thousand dollars to the cloud seeding program. He said other entities contribute to the programs such as electrical power companies, canal companies, etc. Items for Consideration: A. City staff recommendation to approve the Police Department Equipment Lease Purchase Agreement. Designated as Resolution No 2024 — 03 if motion passes — Matt Nielson, Shawn Scott, and Joshua Rhodes Finance Officer Nielson explained the city started to lease police patrol vehicles about five to six years ago. They are starting to turn in their first round of leased vehicles this year. The lease was through Bancorp; however, the Police Department is experiencing supply chain issues through Bancorp. By the passage of this proposed resolution, it gives the Police Department the option to use a different company. There are benefits of having two companies because they can benchmark the two companies against each other to determine which one is offering the lower price and vehicle availability. City of Rexburg Police Department Equipment Lease Authorization Resolution No 2024 - 03 A RESOLUTION OF THE GOVERNING BODY OF REXBURG CITY, AUTHORIZING THE EXECUTION AND DELIVERY OF AN MUNICIPAL LEASE -PURCHASE AGREEMENT WITH RESPECT TO THE ACQUISITION, FINANCING AND LEASING OF CERTAIN EQUIPMENT FOR THE PUBLIC BENEFIT WITHIN THE TERMS PROVIDED HEREIN; AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS REQUIRED IN CONNECTION THEREWITH; AND AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION. WHEREAS, the City of Rexburg (the `Lessee'% a city duly organized and existing as a political subdivision, municipal corporation or similar public entity of the State of Idaho, is authorized by the laws of the State of Idaho to acquire, finance and lease personal property for the benefit of the Lessee and its inhabitants and to enter into contracts with respect thereto; and WHEREAs, the Lessee desires to acquire, finance and lease certain equipment up to oo Ooo in total equipment financed constituting personal property necessary for the Lessee to perform essential governmental functions (the "Equipment"); and WHEREAS, in order to acquire such Equipment, the Lessee proposes to enter into Municipal Lease - Purchase Agreements (the `Agreements'] with Financial Pacific Leasing, Inc. DBA Umpqua Bank Equipment Leasing & Finance (or one of its affiliates), as lessor, (the `Lessor'), the form of which has been presented to the governing body of the Lessee at this meeting; and WHEREAS, the governing body of the Lessee deems it for the benefit of the Lessee and for the efficient and effective administration thereof to enter into the Agreements and the other documentation relating to the acquisition, financing and leasing of the Equipment to be therein described on the terms and conditions therein and herein provided; Now, THEREFORE, BE IT AND IT Is HEREBY REsoLvED by the governing body of the Lessee as follows: Section 1. Findings and Determinations. It is hereby found and determined that the terms of the Agreements, in the form presented to the governing body of Lessee at this meeting, are in the best interests of the Lessee for the acquisition, financing and leasing of the Equipment. Section 2. Approval of Documents; Designation as Bank Qualified. The form, terms and provisions of the Agreements are hereby approved in substantially the forms presented at this meeting, with such insertions, omissions and changes as shall be approved by the City Council of Rexburg of the Lessee or other members of the governing body of the Lessee executing the same, the execution of such documents being conclusive evidence of such approval; and the Mayor of Rexbur>; of the Lessee is hereby authorized and directed to execute, and the City Clerk of the Lessee is hereby authorized and directed to attest, the Agreements and any related Exhibits attached thereto and to deliver the Agreements (including such Exhibits) to the respective parties thereto [, and the City Clerk of the Lessee is hereby authorized to affix the seal of the Lessee to such documents]. Section 3. Other Actions Authorized. The officers and employees of the Lessee shall take all action necessary or reasonably required by the parties to the Agreements to carry out, give effect to and consummate the transactions contemplated thereby (including the execution and delivery of a Final Acceptance Certificate, escrow agreements, disbursement requests and any tax certificate and agreement, as contemplated in the Agreements) and to take all action necessary in conformity therewith, including, without limitation, the execution and delivery of any closing and other documents required to be delivered in connection with the Agreements, including designation of the Agreements as "qualified tax-exempt obligations" under Section 265(b)(3)(B) of the Internal Revenue Code of 1986, as amended, if requirements for such designation can be met. Section 4. Appointment of Authorized Lessee Representatives. The Chief Finance Officer and the Mayor of the Lessee are each hereby designated to act as authorized representatives of the Lessee for purposes of the Agreements and any escrow agreements until such time as the governing body of the Lessee shall designate any other or different authorized representative for purposes of the Agreements or any escrow agreement. Section 5. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. Section 6. Repealer. All bylaws, orders and resolutions or parts thereof, inconsistent herewith, are hereby repealed to the extent only of such inconsistency with respect to this Resolution. This repealer shall not be construed as reviving any bylaw, order, resolution or ordinance or part thereof. Section 7. Effective Date. This Resolution shall be effective immediately upon its approval and adoption. ADOPTED AND APPROVED by the governing body of the Lessee this _ day of 2024. THE MY OF REXBURG, as lessee [SEAL] / `� ' it By,� ✓v�LZ tinted Name: Jerry Merrill Title: Mayor ATTEST: By: Printed: Name: Deborah Lovejoy Title: City Clerk Finance Officer Nielson continued to explain the face of leasing verses buying a vehicle has changed a lot in the last five years. He said in his opinion it is more expensive to lease the police vehicles than to buy them outright and operate them for a longer period of time, about seven to eight years verses the five-year lease time. The leasing of the patrol vehicles may still be beneficial; however, not as beneficial for the administrative division. They may need to consider purchasing the vehicles for the administrative division. Terms and Conditions: Lessor: Financial Pacific Leasing_ Inc_, d.b.a. Umpqua Bank Equipment Leasing cC Finance. a subsidiary of Umpqua Bash or it's assigns (lessor ) Lessee(s): Rexburg City Equipmenr Fininciti= Vehicle: Municipal Lease-Ptrchase Ameemeat Equipment & Cost: Various vehicles listed oa Exhibit "A" attached with this proposal as a separate excel spread sheet +the "Egiupmeat " r. All Equipment :hall be satisfa-_tory to Lessor. Lease Amount: Not to exceed $250.0 0.00 in the a_gre_ate. Lease Term: Five (5) Fears Pa:-meuts: Five (5) payments, pa. -able aaaually to be paid April l' afeach Year be4ianing April 1. 10' 1, v,ith the final pa --meat on April 1, '_o=es. me Periodic Funding per Vehicle Structure: Individual lease aereements for each vehicle. Vehicles would be pre -accepted to allow- firnds to be disbursed to the appropriate vendor(s) ahead of actual delivery of the vehicle. A fee of $100 per vehicle will be payable by Lessee upon execution of agreement A titling fee of $10 per vehicle will be due as each vehicle is delivered. A fee of S250 for legal counsel will be due at time of lease commencement. Interest Rate: The amount funded for such equipment on a lease shall accrue interest at the tax- exempt rate of 5.38% per annum, payable in advance. The amortization schedule for the lease for such equipment shall provide for a principal payment schedule resulting in level debt service payments. The interest rate specified above is based upon the 5 year like term US Treasury Rate sourced from Chatham Financial Market Data ("Index") at 4.311% as of 8r l l i2023. Should the Index. increase prior to any final acceptance of equipment under a lease, the interest rate shall be adjusted to maintain the economic returns anticipated by Lessor. The interest rate becomes fixed for each individual lease agreement upon final delivery and acceptance of the specific vehicle for said agreement. Earl- Buy -Out Opriou: So lone as (i) Lessee is current in the payment of all rent and other amounts due under the lease. (ii) no event of default or event of non -appropriation exists under the lease. and (iii) subject to a vuininium of 30 days written notice to Lessor. Lessee term may terminate the lease on the three year anniversary of the Commencement Date of the lease b_; payin the currently due rental payments. as well as outstanding principal component of the lease. and any other past due amounts or other amounts duce tinder the lease, plus any applicable taxes. The equipment shall be conveyed to Lessee on an 'as -is, where -is basis, without any representation or warranty from Lessor. Any prepayments other than the Early Buy -Out Option shall be solely with the prior written consent of Lessor. C oinineucerneur hate and .ACC ep ratite The Commencement Date for each Lease entered into under this Option B shall be the date that funds are remitted to the vendor for said vehicle. Conditions for remitting funds to the vendor shall include: (i) evidence of the listing of Lessor's lien on the vehicle title for said Equipment and (ii) acceptance of the Equipment by Lessee. The parties agree and understand that Lessee's unconditional acceptance of the Equipment vis-a-vis the Lessor, does not waive any rights and remedies that Lessee has and shall retain against the vendor. Additional Provisions Tax Benefits: The lease shall be considered a municipal lease,purchase and shall qualify for tax-exempt status under federal tax law. Lessee shall pay all fees, assessments. sales, use, property and other taxes imposed. except those levied on the net income of Lessor by the United States, the State of Utah. or other applicable jurisdiction. The documents shall include the standard covenants. representations. and warranties applicable to a tax-exempt financing. End of Lease Options: At the end of the five-year lease term. Lessee will have the option to purchase all.. but not less than all. of the Equipment under a lease for $1.00. Expiration of Facility: All takedowns shall occur prior to 5:1 24, and without written consent of Lessor to extension, the facility shall expire. Lessor shall have no obligation to lease any item of Equipment after said date. Net Lease: All costs of operation, maintenance. taxes, insurance and other affiliated costs will be paid by Lessee as this transaction has been structured as a triple net lease. Insurance: Lessee will provide evidence of all-risk physical damage and liability insurance coverage in such amounts and with deductibles all as may be required by Lessor. In addition. endorsements and assignments of such policies shall name Lessor (and its assigns) as loss payee and.'or additional insured. as may be required by Lessor. All insurance coverage shall be from a carrier acceptable to Lessor. Maintenance: Lessee shall, at its sole cost and expense, maintain the Equipment in compliance with all statutes, laws. ordinances, regulations, standards. and directives (including enviromrental) by any governmental aeeacy and the Equipment must be maintained in accordance with all manufacturer's suggested and recommended maintenance procedures including preventive maintenance: and such other maintenance and return conditions as the Lessor may require. Lieutenant Scott explained which equipment in the patrol vehicles can be removed from the lease vehicle to continue to use. The radios are reused which saves the city about $4,000 for each radio. The vehicles video systems and radars are also reused. Mayor Merrill asked how many times they switch out and reuse that equipment before having to purchase new. Lt. Scott said he hopes to be able to switch out and reuse the equipment twice before having to purchase new equipment which is about 10 to 12 years. The company they used to purchase and replace the radios was sold. Their radios are currently about 10 years old so they will need to be replaced. Council Member C. Erickson asked if the lease price of the vehicles also included the maintenance of the vehicles. Finance Officer Nielson replied yes, the maintenance was included. Council Member Johnson asked if the monthly milage allowance was sufficient for the patrol vehicles. Finance Officer Nielson said the milage was sufficient; however, there were some vehicles that went over the mileage and some that have a lot less mileage. Council Member C. Erickson moved to approve Resolution No 2024 — 03 the Police Department Lease Purchase Agreement; Council Member E. Erickson seconded the motion. Mayor Merrill asked for a vote: 7 Those voting ave Council Member Johnson Council Member Chambers Council Member C. Erickson Council Member E. Erickson Council Member Reeser Council President Walker The motion carried. Those voting nay none B. Staff recommendation to approve a public/private partnership contract for a Community Ice Rink — Matt Nielson and Stephen Zollinger City Attorney Zollinger explained he met with the representatives of R&R Group. They are still finalizing details on a contract that would be executable. There were a few issues that slowed down the process, insurance being one of them; however, they have worked through the insurance issue. Mayor Merrill said there is another meeting scheduled with R&R Group on Tuesday to show the final drawing of the ice-skating rink building. City Attorney Zollinger added there is no contract to consider tonight. Council Member E. Erickson asked how the process is coming along. City Attorney Zollinger said the letter of intent that was reviewed at the last City Council meeting spelled out the terms that they all felt they could live with; it is now in the process of letting lawyers turn them into documents that will survive the departure of one of the R&R Group representatives and himself. City Attorney Zollinger said they desire the terms of the contract to be understood by everyone and not just those currently making the decisions. Calendared Bills: A. Second Reading: Those items which have been first read: NONE B. Third Reading: Those items which have been second read: NONE 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. A. Minutes from March 6, 2024, City Council Meeting B. Approve the City of Rexburg Bills Council President Walker moved to approve the Consent Calendar containing the minutes and city bills; Council Member Johnson seconded the motion; Mayor Merrill asked for a vote: Those voting ave Council Member Johnson Council Member Chambers Council Member C. Erickson Council Member E. Erickson Council Member Reeser Council President Walker The motion carried. Adjournment 7:50 P.M. Attest: M rianna Gonzalez, De rtyer—k Those voting nay none AEP OVED: Je Mer ' ; Ma .or