HomeMy WebLinkAboutCouncil Minutes - July 17, 2024 (208) 359-3020
35 North 1st East
Rexburg, ID 83440
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City Council Minutes – July 17, 2024
Mayor Jerry Merrill
Council Members:
Bryanna Johnson Eric 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
6:30 P.M. (1:07:33)
Mayor Merrill said the prayer.
Council President Walker led the pledge.
Roll Call of Council Members:
Attending: Council Member Johnson, Council Member Chambers, Council Member C. Erickson, Council E. Erickson, Council Member Reeser, Council President Walker and Mayor Merrill.
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. (1:12:36)
6:30 P.M. Public Hearing: Approve Resolution 2024 – 06 To Utilize and Include in the Fiscal Year 2025 Budget a Portion of Foregone Tax – Matt Nielson
Finance Officer Nielson explained the city did not have foregone property taxes until the City Council decided during the COVID 19 Pandemic that instead of taking an increase in property
taxes, those taxes were set aside as foregone. Over the last couple of years, he has been pulling from the forgone property taxes to put into the budget to help pay for public safety.
He reviewed Resolution 2024 – 06 which indicates the amount of forgone being used for Public Safety Personnel.
Finance Officer Nielson said there would still be about $27,000 left in forgone that they could use next Fiscal Year.
RESOLUTION NUMBER 2024-06
A RESOLUTION OF THE CITY OF REXBURG, IDAHO, TO UTILIZE AND INCLUDE IN THE BUDGET A PORTION OF FORGONE PROPERTY TAXES
WHEREAS, the City Council desires to maintain the overall quality of life experienced by its constituents; and
WHEREAS, the City Council desires to utilize in the Fiscal Year 2025 budget a portion of forgone property taxes in the amount of $65,703 to cover the cost of the services provided by
the City. The City will utilize the increase in the budget from utilizing a portion of foregone property tax for maintenance and operations, specifically to help cover the additional
expenses proposed in the budget to add Public Safety personnel.
WHERAS, the City Council has provided the required notice and held a public hearing regarding increasing the budget to use a portion of the forgone property tax.
NOW THEREFORE, be it resolved by the Mayor and the Council of the City of Rexburg, effective July 17, 2024, that $65,703 of forgone property tax will be utilized and added to the Fiscal
Year 2025 budget through its property tax levying authority.
The City is required as per House Bill 474 to publish notice and hold a public hearing and adopt a resolution stating the governing board’s intent to use the foregone levying authority,
the amount of forgone revenue to be included in the tax levy for that fiscal year, and the purpose for which the forgone revenue will be used. A copy of such resolution must be filed
with the County Clerk and the Idaho Tax Commission when certifying its property tax levy to the county using forgone levying authority.
PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR THIS __ DAY OF __, 2024.
CITY OF REXBURG
Madison County, Idaho
By ___________________________
Jerry L. Merrill, Mayor
ATTEST:
___________________________________
Deborah Lovejoy, City Clerk
Mayor Merrill opened the public hearing.
Public Testimony in favor of the proposal (5-minute limit):
Public Testimony neutral to the proposal (5-minute limit):
Public Testimony opposed to the proposal (5-minute limit):
Mayor Merrill closed the public hearing.
Council Member Johnson moved to approve Resolution 2024 – 06 to Utilize and Include in the Fiscal Year 2025 Budget a Portion of Foregone Tax; Council Member Reeser seconded the motion;
Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
6:30 P.M. Public Hearing: Adopt Ordinance No 1316 Fiscal Year 2025 Budget Appropriation – Matt Nielson
Council Member Johnson said there is 1.2 million dollars in the Fiscal Year 2025 budget for the Tabernacle and those funds will not be spent unless that amount of money has been fundraised.
Finance Officer Nielson explained the 1.2 million dollars is in budget expenditures. They would apply for federal grants to raise one million dollars, and they hope to raise $200,000
from private contributions. City staff could not go forward with the tabernacle project without City Council approval on Request for Proposals and bids. Council Member Johnson said she
would prefer it be clear that the 1.2 million dollars is coming from other sources besides tax dollars.
Mayor Merrill expressed his concerns about adding the stipulation Council Member Johnson mentioned because it could cause unintentional consequences with fundraising when applying for
grants. Council Member Johnson said her concern with not adding the stipulation is that they will not be able to raise all of the funds and will need to pull one million dollars from
tax dollars. Finance Officer Nielson said to pull from tax dollars the Councilmembers would need to approve a budget adjustment.
Council Member E. Erickson questioned why is the 1.2 million dollars in the budget if the city doesn’t have those funds? Finance Officer Nielson explained the funds collected through
the fundraising campaign are shown in the budget because it is the amount they hope to raise to be able to complete the planned projects for fiscal year 2025.
Mayor Merrill opened the public hearing.
Public Testimony in favor of the proposal (5-minute limit):
Public Testimony neutral to the proposal (5-minute limit):
Public Testimony opposed to the proposal (5-minute limit):
Mayor Merrill closed the public hearing.
Finance Officer Nielson mentioned the Revenues and Expenditures discussed and advertised at the last meeting changed slightly. There was an expenditure in the fire turnout gear of $210,000
that we were able to reduce to $47,200. This reduction saved funds on several different accounts; however, it actually saved fund 01 about $127,000. The reduction also allowed the city
to reduce the amount
carried forward down to one million dollars in the General Fund and it allowed an increase in contingency of up to about $237,000.
Council Member Johnson moved to approve Ordinance No. 1316 Fiscal Year 2025 Budget Appropriation with the stipulation that the 1.2 million dollars for the Tabernacle building remodel
will only be spent if they are able to fundraise that amount from private donations; Council President Walker seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Items from Council: (1:19:29)
Committees: MEPI, Cultural Arts, Grants, School Board, MUSIC, MYAB, Traffic & Safety, Emergency Services Board, Trails, Beautification, Parks, Recreation, Urban Renewal, Airport, Golf
Board, ADA Oversight Board, and Legacy Flight Museum
Council Member Chambers reported the Urban Renewal Agency met today. A public hearing was held to review the budget, and they were able to approve the Fiscal Year 2025 budget. Mayor
Merrill added the Urban Renewal Agency is sending member JC Weber to an Urban Renewal 101 training in Boise, Idaho.
Council Member Johnson reported Mark Nygren and Eric Erickson (not the Council Member a different Eric Erickson) would like to be members of the Trails Committee. City Clerk Lovejoy
asked those interested in serving on a committee to fill out the form available on the city’s website. Council Member Johnson also reported the wood chips for the dog park have been
ordered and when that shipment arrives, they could use the help to spread out the wood chips.
Council Member C. Erickson reported the Golf Board met to discuss fee increases and budget. Both Teton Lakes and the Legacy golf courses are doing well on the revenue side of the budget.
There are many patrons using the golf courses. The School Board cancelled their meeting.
Other Reports:
Staff Reports: (1:28:00)
Information Technology: - Todd Smith
Contract Approval for Access Control and Surveillance RFP
IT Director Smith reviewed the M2 contract price for the building access control and support options. They have discussed going with the premium support PSA which is a 10-year contract
and at the end of the 10 years M2 would come in and replace any equipment that they haven’t already replaced at no additional cost.
IT Director Smith reviewed M2 contract price for the surveillance and the premium support PSA annual price. He said the surveillance option is also a 10-year contract in which M2 would
replace or add new cameras to the system.
IT Director Smith explained one of the questions from the Councilmembers at a previous meeting was what about the costs for items that need to be replaced due to age appreciation or
to bring equipment into compliance. M2 quoted the price below.
IT Director Smith said the total cost for the first year is about $457,952.00, including the first year of support. The costs would be $46,358 for the second and every year after the
second year through to the 10th year for the premium support.
Council Member C. Erickson asked how often is M2 going to be checking the equipment. IT Director Smith replied M2 will check the cameras at least once a year; however, they do get alerts
from outages. The city IT Department will also be alerted to outages. When M2 comes to repair an outage on one of the cameras they can check on other related system issues or questions
city staff may have.
Council President Walker asked about M2’s response time for when there is an issue. IT Director Smith replied M2’s response time is two hours to acknowledge the call and within 24 hours
they would resolve the issue.
Council Member C. Erickson moved to approve the Contract from M2 for Access Control and Surveillance; Council Member Johnson seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
IT Director Smith said he asked Rob Walters with Silver Star to give an update on the installation of fiber throughout the city and to answer any questions the Councilmembers may have
regarding the fiber installation.
Mr. Walters reviewed the map below. The red lines indicate the area in the city that is currently under construction to install fiber. The areas in blue, purple, and yellow are areas
that have fiber installed and residents that have signed up with a fiber provider are receiving internet service. There are 350 houses that are actively using fiber service with 200
houses in the process of being connected.
Mr. Walters continued his report. A significant part of this project is that 51% of customers are interested in gig internet with 66% of them requesting a gig or higher packages. The
higher gig packeages are not available unless they have fiber. He said with the ability to have gig packages allows sufficient bandwidth for people to work from home with the added competition
between multiple providers on the same platform. The customers are able to switch providers without installation, contracts and overages.
Council Member E. Erickson said his house is connected to fiber; however, they are not receving anywhere close to a gig speed. He wondered if the speed is not there yet because the
project is not complete or if it is a issue with the provider. Mr. Walters said the issue is with the providers or the equipment inside the house.
Council Member Chambers explained Silver Star has extended fiber throughout neighborhoods and there were some residents who decided to connect their house to fiber and there some residents
who decided not to connect their house to fiber. He asked if the residents who decided not to connect are still eligible for free fiber connection to their house? Mr. Walters said Silver
Star’s deadline to connect fiber to a resident’s house at no cost at the end of 2025. The cost after the deadline date to connect to fiber is $350.
Council Member Chambers asked if Silver Star is charging new construction $350 per lot to connect to fiber? Mr. Walters said with new construction, they are working with developers
to install the fiber when there is an open trench which means if Silver Star does not have to cut into an exsisting road it saves them a lot of money so they would install the fiber
free of cost.
Council Member Chambers wondered if there are some residents who have not requested a fiber connection to their house because they feel like that obligates them to a monthy fee. Mr
Walters replied Silver Star does ask residents to sign up with an internet provider because it is a big investment for them to connect fiber to a house.
Mr. Walters mentioned an event Silver Star is sponsoring on August 12th to celebrate Open Access and what it is doing for the community. They have asked local, state and federal leaders
to attend the event.
Finance: - Matt Nielson (1:44:26)
Financial Reports
Finance Officer Nielson said he would not review the financial reports unless the Councilmembers have questions. The city is basically 75% through the fiscal year.
Review Final Fiscal Year 2025 Budget Adjustment
Finance Officer Nielson explained he hopes these are the final budget adjustments, so the Councilmembers are able to approve to set a public hearing. He said he would review the budget
adjustments individually, he started with the Finance/Customer Service-Gen Fund.
Finance Officer Nielson explained the reason for the increase for the Parks/City Hall Departments.
Finance Officer Nielson explained the reason for the increase for the Golf Operations. He said he will start to set aside money for the irrigation system at Teton Lakes. The funds for
the irrigation system would come from the Golf Operating Fund and each year the city and county would match a specified amount of money. He added he would prefer to start at a zero balance
in the Debt Service Fund 51. The county has paid off their share of the debt for the new nine holes and he recommended the city pay off their debt for the nine holes as well. Then as
the city enters into fiscal year 2025, the amount left in Fund 51 will be saved for the irrigation project, so they are not mingling the two funds. This budget adjustment does reduce
the reserves by about $100,000; however, he believes it would be prudent for the city to pay off the debt to match the county.
Finance Officer Nielson explained the reason for the increase for the Cultural Arts Tabernacle. He said he and Mayor Merrill have been working with a representative of BYU-Idaho to
use the I-Center to host a fundraising concert for the Tabernacle. City staff has been vetting artists over the last few months that they could potentially bring in if the BYU-Idaho
representatives approve. The BYU-Idaho representatives have given the city the approved artists list. The cost to bring in some of these artists ranges from $90,000 to $550,000. He said
if they are able to bring an artist that charges $90,000 there is the potential of bringing in two to three thousand dollars in proceeds.
Council Member E. Erickson asked if city staff are using any event management personnel to make sure the negotiations and marketing are done correctly? Finance Officer Nielson replied,
city staff has met with an event professional that oversees the concerts for the Blackfoot Fair. City Staff have also met with the BYU-Idaho representative who oversees their concert
contracts, and that representative was willing to negotiate and write the whole contract.
Finance Officer Nielson said the city may need to pay this artist in advance meaning in this fiscal year; however, the revenues would not be collected until the next fiscal year. There
may be additional costs to market the event to southeast Idaho and Utah. The I-Center is one of the biggest venues in Idaho with an occupancy of about 15,000 people. Another avenue they
will be using is to find a corporate sponsor to hopefully cover a substantial portion of the costs for the artist.
Council Member Reeser asked how much BYU-Idaho will be charging to rent the facilities. Mayor Merrill said BYU-Idaho is providing the facility for free. The personnel and ticketing
to run the concert at no cost as well. Council Member Johnson asked if BYU-Idaho is charging any fees. Finance Officer Nielson said the city will need to pay for the sales tax for the
concert.
Discussion regarding the potential cost of the ticket price for the concert.
Finance Officer Nielson explained the reason for the increase for the Streets.
Finance Officer Nielson explained the reason for the increase for the Fire District. The city and the Fire District own engine #12; however, the Fire District is going to buy it outright
for $40,000 and then it becomes the Fire District’s asset. The $40,000 would be split between the entities to replace other engines.
Finance Officer Nielson explained the reason for the increase for the Flight Museum.
Finance Officer Nielson explained the reason for the increase for the Wastewater.
Finance Officer Nielson explained the reason for the increase for the Streets Reconstruction.
Finance Officer Nielson explained the reason for the increase for the Streets New Construction. Mayor Merrill mentioned all of the roads that have been paved this year compared to previous
years.
Finance Officer Nielson explained the reason for the increase for the Streets New Construction.
Finance Officer Nielson explained the reason for the increase for the Entrepreneurial Fund.
Finance Officer Nielson explained the reason for the increase for the Sewer/Water Project-Near Walmart.
Finance Officer Nielson explained the reason for the increase for the Streets Lighting Fund.
Council Member Chambers moved to approve the Final Fiscal Year 2025 Budget Adjustments; Council Member Reeser seconded the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Review Fiscal Year 2024 Budget Adjustment, Set Public Hearing for August 7, 2024
Finance Officer Nielson reviewed the budgeted revenues and expenditures for Fiscal Year 2024 and recommended a public hearing be set for August 7th. He said after making some adjustments
as indicated in the note section of the report, the budget amount went from 81.8 million dollars to 81.6 million dollars.
Council President Walker moved to approve to set a Public Hearing for August 7, 2024 for the Fiscal Year 2024 Budget Adjustment; Council Member C. Erickson seconded the motion; Mayor
Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Review Proposed Utility Rate Increases for Fiscal Year 2025, Set Public Hearing for August 7, 2024
Finance Officer Nielson reviewed the proposed utility rate increases for Fiscal Year 2025 which starts on October 1st. The increase for wastewater is 1.95% and an increase of 2.7% in
the base fee for water. The volume fee for water increased to 4.1%.
Finance Officer Nielson explained the sanitation rate calculations. He said originally the city was billing based on volume because residents would haul their trash to the large dumpsters
behind the old K-Mart. Then the city moved to residential container pick-up. The city was billing heavily to volume, which means the high commercial volume users were actually covering
a lot of the cost. Three years ago, the city evaluated the billing and started shifting slowly over several years to bill directly to the residential customer. The residential customer
is paying about 75% of this budget for that direct recycling hired work costs.
Finance Officer Nielson said over the last few years, the Public Works Department has seen a higher increase for residential customers and a slight decrease in the volume users; such
as, apartments and box stores. The weekly garbage pick-up for a 90-gallon container is increasing by about 6.68%. There is a decrease of .17% for the three-yard dumpster pick up.
Finance Officer Nilson said one of the reasons the sanitation rates continue to increase is due to the tipping fees. The tipping fees have continued to climb over the last few years.
Currently the tipping fee is at $80; however, it could increase to $100, which is a 25% increase for the city that averages to about $300,000 more per year.
Council Member E. Erickson said it was his understanding that the new landfill would save the city and county money. Mayor Merrill replied due to the construction costs of the new landfill
he does not believe the county will reduce the tipping fee; however, over time the increases would be less because the distance to the landfill is not as far as it was to haul the garbage
to the Jefferson Landfill.
Finance Officer Nielson reviewed a sample utilities bill for a Rexburg resident. The sample bill shown is a average bill so it is not going to represent every residents bill because
every household uses different amounts.
Finance Officer Nielson reviewed the sample utilities bill for commercial businesses.
Discussion regarding how the city compares with other cities on costs for water and sewer. Finance Officer Nielson reminded the Councilmembers these fees are on the maintenance side
of the costs, there are capacity fees, he is not recommending changes on those capacity fees tonight.
Discussion regarding the recycling program. Finance Officer Nielson said the committee discussed the costs of the recycling program and if the program should be discontinued about three
years ago. They decided not to discuss discontinuing the recycling program until the residents understand how much they are paying for the program that is the reason he has been shifting
the net costs over to the residents. Next year, when the residents are paying 100% of the direct hired work costs for recycling would be a better time to decide whether to discontinue
the recycling program.
Council Member Johnson asked for the percentage of items placed in the recycling container that are really recyclable items. Finance Officer Nielson said he does not have the percentage
of items placed in the recycling containers that are actually recyclable items; however, there is a fairly large share of household waste that ends up in the recycling containers.
Finance Officer Nielson reviewed the public hearing notice with the new monthly costs for water, wastewater and garbage.
Council Member E. Erickson moved to approve to set a Public Hearing for August 7, 2024 for the Proposed Utility Rate Increases for Fiscal Year 2025; Council Member Johnson seconded
the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Review Proposed Fee Changes, Set Public Hearing for August 7, 2024
Finance Officer Nielson reviewed the proposed fee changes.
Council Memember Johnson expressed her concerns with the price of the Main Street Mile race. She attended the City Council Budget Meeting where it was discussed they wanted to keep
that race family friendly by charging a pre-registration fee of $7 and charge more to the participants that register the day of the race. Council President Walker clarified the fee schedule
is such that they can charge up to the approved fee charge; however, they can charge less.
Council Member C. Erickson moved to approve to set a Public Hearing on August 7, 2024 for the Proposed Fee Changes; Council Member Chambers seconded the motion; Mayor Merrill asked
for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Public Works: - Kieth Davidson (2:15:25)
Mayor’s Report/Business: (2:27:57)
Ratify appointment of Kelly Wadsworth with Madison Memorial Hospital to the ADA Oversight Advisory Board
Mayor Merrill said Kelly Wadsworth has applied to serve on the ADA oversight Board. Mr. Wadsworth works for Madison Memorial Hospital; therefore, has some good insight into ADA compliance.
Council President Walker moved to ratify the appointment of Kelly Wadsworth with Madison Memorial Hospital to the ADA Oversight Advisory Board; Council Member Chambers seconded the
motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Ratify appointment of Krickett Mounts, Cheryl Empey, and Ali Rockwood to the Historical Preservation Committee
Krickett Mounts said she has a Bachelor of Fine Arts degree and has used her degree to lean into residential buildings. She said she lives close by at Charles Place and is happy to
serve on the committee.
Council C. Erickson moved to ratify the appointment of Krickett Mounts, Cheryl Empey, and Ali Rockwood to the Historical Preservation Committee; Council Member E. Erickson seconded
the motion; Mayor Merrill asked for a vote:
Those voting aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Items for Consideration: (2:32:12)
Calendared Bills: (3:05:13)
Second Reading: Those items which have been first read: NONE
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. (3:06:16)
Minutes from July 3, 2024, Meeting
Approve Payment of the City of Rexburg Bills
Council Member Reeser 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 aye Those voting nay
Council Member Johnson none
Council Member Chambers
Council Member C. Erickson
Council Member E. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Adjournment 8:24 P.M.
APPROVED:
________________________________
Jerry Merrill, Mayor
Attest:
_____________________________
Marianna Gonzalez, Deputy City Clerk