HomeMy WebLinkAboutCouncil Minutes - December 18, 2024 (208) 359-3020
35 North 1st East
Rexburg, ID 83440
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City Council Minutes – December 18, 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. (video index 00:02:39)
Council Member C. Erickson said the prayer.
Council Member Reeser 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
Public Comment: Items not on the agenda; limit of 3 minutes; issues may be considered for discussion on a future agenda. Please keep comments on point and respectful. NONE
Items from Council: (00:03:28)
Committees: MEPI, Cultural Arts, Grants, School Board, MUSIC, MYAB, Emergency Services Board, Beautification, Trails/Parks & Recreation, Urban Renewal, Airport, Golf Board, ADA Oversight
Board, Historical Preservation Committee, and Legacy Flight Museum
Council Member Reeser reported that he, Council Member C. Erickson, Rexburg Police Officers and police officers from several other counties participated in the Shop with the Cop event.
The event was well attended. He apologized that the police sirens and lights woke up residents living along Main Street that morning. He said the Shop with the Cop program is a great
benefit to the communities that participate in the program, and he is grateful to have been a part of it this year.
Council Member E. Erickson reported there is ongoing discussion with a developer to consider a new city park as part of that development. The Recreation Department is busy gearing up
for the Winter Park at Teton Lakes Golf Course. They are hoping for a good season this year with a lot of snow.
Mayor Merrill mentioned city staff were informed that the one-million-dollar USDA Forest Service Grant the city received can only be used for the planting of trees and not for some
of the other things they previously told city staff the funds could be used for at the Teton River Park. He and city staff are meeting tomorrow to review the areas where they can plant
trees.
Council Member Chambers reported that the Historical Preservation Committee has started meeting regularly. The committee members are interested in forming their own brand, logo and
using social media outside the city’s media platforms. Council Member Chambers said the committee chairman asked him to bring their exemption request to the City Council for consideration
to allow the Historic Preservation Committee to branch out and have their own social media page.
Council Member Johnson expressed her concerns with allowing one committee to branch out of the city’s social media page because if they make an exception for one committee, they will
have to make an exception for the other committees. She has spoken with City Clerk Lovejoy about issues the city has had with social media and to have city employees deal with the kind
of fallout that could happen with social media would be unfair.
Council Member Eric Erickson said he agrees with Council Member Johnson, the committee members make recommendations for the City Council to consider; therefore, they are not governing
boards and should be kept under the city’s umbrella.
Council President Walker reported the Mayor’s Youth Advisory Board helped with the Shop with a Cop event by helping the kids take their carts full of gifts out to their parent’s vehicles
when they were done. The MYAB will meet tomorrow for their Christmas Party. The ADA Board did not meet, they will start meeting after the first of the year.
Council Member Johnson said the Trails/Parks and Recreation Committee will not meet again until January.
Council Member Colin Erickson reported the Airport Board did not meet. The Golf Board met to discuss the Teton Lakes clubhouse remodel. The School District will begin their Christmas
break this Friday at noon and will resume classes on January 6th. He mentioned the concert Christmas at Madison with George Dyer tomorrow night at the high school starting at 7 P.M.
Other Reports:
Staff Reports: (00:10:00)
Finance: – Matt Nielson
Review of the Fiscal Year 2024 Annual Street Report to be published by the end of December 2024
Finance Officer Nielson reviewed the Fiscal Year 2024 Annual Street Report. The city is required to publish this report every December and submit it to the state.
Finance Officer Nielson reviewed the General Fund Balance. The city’s carryover at the end of the fiscal year went from about 6.5 to about 7.1 million dollars. One of the inquiries
the state makes is which projects the city has deferred, so he adds the city’s five-year plan to the report. There are about 13 million dollars of projects identified in the five-year
plan.
Discussion of and decision on whether to offer a new contract in April for a restaurant vendor at Teton Lakes Clubhouse. Golf Board recommendation is to not offer a new contract. The
County Commissioners are also invited to participate in this discussion/decision as they are 50% owners of the Golf Courses (00:11:40)
Finance Officer Nielson gave a summary of the background of the restaurant lease at the Teton Lake Clubhouse. In 2016 the Golf Board started discussing trying something different at
the clubhouse other
than selling snacks. They asked the prior contractor to run a restaurant that served food options and not only snacks. There have been two other contractors since the first contract
with Daivd Rail. He said Blister’s provides food service to golf patrons and patrons outside of golf. The restaurant facility is a governmental fund, the city/county does not treat it
as a business type or proprietary fund because it is subsidized by tax dollars.
Finance Officer Nielson continued to explain that the golf course has changed over the last few years. It is much busier with this year being the busiest. They have also completed many
capital improvement projects. One of those projects was adding 40 parking stalls to the parking lot. The current restaurant contract is with Blister’s, and they have been allowed to
make some changes over the last few months. One of those changes was allowing them to bring a meat smoker to prepare their meat on location; therefore, the club house would not be a
satellite location anymore. Blister’s would operate as a full-service restaurant at the club house. Blister’s has also secured another location in the downtown area. The restaurant owner’s
intent is to open both locations.
Finance Officer Nielson asked the City Council to consider whether to or not to extend the contract to Blister’s. He said another option is to not lease the space after Blister’s contracted
date of March 2025. Finance Officer Nielson mentioned the list of some of the concerns from the Golf Professionals that were discussed during the Golf Board meeting. The Golf Board also
had some concerns
Finance Officer Nielson explained there are other options if the space is not leased to the restaurant. One of those options is to operate a snack bar to sale drinks and repackaged
snacks. Another option is for the city/county to operate a restaurant, overseeing day and time of operation. He said from a financial standpoint, he believes leasing the restaurant
space is the better option.
Council Member Johnson said when the City Council approved of the contract with Blister’s BBQ, the golf course was not as busy. Now, with the golf course being busier, it feels like
there are two competing businesses. With a full-service restaurant operating out of the clubhouse, the golf course is going to lose some of its purpose of being a golf course. She said
she also feels like there is not enough space at the clubhouse to have a full-service restaurant. The Golf Board meeting minutes indicated the lease amount was only $12,000 a year and
the Golf Professional had to run the restaurant at times and then cut them a check. There is a problem with the meat smoker, it makes the merchandise in the pro shop smell like smoke
which is an issue because the city/county take a cut of merchandise sells.
Council Member E. Erickson clarified that the concern of Blister’s operating a full-service restaurant has been addressed in the fact that they are not going to operate a full-service
restaurant like they have in the last couple of months. The Teton Lakes clubhouse would just be a satellite operation. Blisters would no longer be smoking their meat at the clubhouse.
Council Member E. Erickson questioned if the City Council is considering not extending the restaurant contract to Blisters or to any other restaurant. Finance Officer Nielson replied,
the Golf Professional proposed to the Golf Board that the city try to operate a restaurant on our own and part of his reasoning is so that the city has full control of the space to use
for golf related activities. Council Member E. Erickson expressed his concern about not having an option for food. Finance Officer Nielson explained the city could try to offer some
food options; however, the options would be limited to what a contractor could offer on a day-to-day basis. Finance Officer Nielson said as he financially analyzed the costs for the
city to keep a restaurant open year-round, he determined it is not financially beneficial.
Council Member E. Erickson said he believes the space needs to be utilized as it was designed to be used, which is to have some sort of food option. A restaurant would be an amenity
for the golf course patrons. There are some concerns from the women golf course patrons that are opposed to having a restaurant because they like to use the space for parties and potluck
dinners. He said if the space is not controlled by the lessee, then that space would be available for other functions. Finance Officer Nielson said currently the contract states the
current restaurant can cater for golf tournaments; however, if someone does not want to use the restaurant catering service, they would have to pay the restaurant $400. The reason they
must buy out the restaurant for that time frame is because the restaurant must shut down their operation and not sell food during that time. The other advantage of having a restaurant
is that they can sell alcohol.
Council Member Chambers asked Finance Officer Nielson if the issue over the restaurant space a current realized problem or if it is an anticipated problem. Have there been problems
in the past where the Golf Professional wanted to use the restaurant space and couldn’t because it was occupied by the
restaurant? Finance Officer Nielson replied yes, there are times when the Golf Professional would like to take up the space to put up Tournament Sheets like they used to do before the
restaurant was there. There are times when weather can be a factor and instead of having to set up a tent they can use the restaurant space.
Council Member C. Erickson said he has attended the Golf Board meetings where they have discussed the restaurant contract numerous times and does not believe the Golf Board Members
are against Blisters. The Golf Board wants to have food options; however, they are against having a full-service restaurant operating at the clubhouse. He said with the new information
received this afternoon regarding Blisters, he suggested the new information be shared with the Golf Board Members for further discussion.
Council Member Reeser asked about the issue with parking, he understands the parking lot was full; however, it was not a major problem before Blisters stopped their main operation at
Mother Hibbard’s and moved to the golf course. Council Member C. Erickson replied parking could be an issue in the future, it is difficult to know now because it is the end of golf season.
Council Member Johnson said she does not agree with designating parking stalls for the restaurant or having a meat smoker on site.
Council Member Walker said he agrees with Council Member C. Erickson suggestion to remand the Golf Boards recommendation to not offer a new contract to Blisters Restaurant due to the
new information received. He said he does not believe the city should get into the food service business.
Brady Gardner said he is the owner of Blisters Restaurant. He explained that, unfortunately, he was given 60 days to move his restaurant out of Mother Hibbard’s gas station location
so he thought it would be a great opportunity to have a full-service restaurant at the golf course. One of the concerns was that the Golf Professional was running the restaurant; however,
that was not the case. There were times when golf patrons would come early in the morning when the restaurant was not open to buy a drink or snacks, so they would pay for those items
with the Pro Shop employee. There are golfers that start playing at 6:00 A.M. and some play at 8:00 P.M., these are times the restaurant is closed. The restaurant is also closed on Sundays,
which was one of the busiest days of the week. There was a lot of revenue made on Sundays through beer sales at the golf course, those revenues were reimbursed back to the restaurant.
Mr. Gardner explained they are only operating about 30% of the restaurant business out of the clubhouse. With Mother Hibbard’s location no longer open, he believes they will have more
customers at the clubhouse. He said with a full-service restaurant, they are hoping to host Christmas events and weddings; however, if the Golf Professional does not want the restaurant
business at the clubhouse, he will understand.
Madison County Commissioner Mendenhall explained the County Commissioner’s number one desire is the best interest for the golf course which is golfing; however, it is rare to go to
a golf course and not have some kind of food option. He said larger golf courses have a restaurant area that is not utilized by the public nor is it utilized by tournaments. Unfortunately,
our golf course is not large enough, so with the new information received, he too is in favor of remanding the Golf Board’s recommendation for further discussion.
Council Member C. Erickson moved to approve remanding of not offering a new contract to Blisters Restaurant to the Golf Board for further discussion due to the new information received
of Blisters operating as a satellite restaurant; 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 E. Erickson
Council Member C. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Financial Reports (00:42:32)
General Fund Balance Carryover at Fiscal Year 2024 Year End - Unaudited
Finance Officer Nielson reviewed the Cash and Investment Balance Report. During this time of year, the reserves keep decreasing so the cash reserves are down to about 42.6 million dollars
and the liquid reserves are at about nine million dollars.
Finance Officer Nielson reviewed the Treasurer’s Expenditure Report by Fund. The city is about two months into the Fiscal Year. He said if the city had spent it’s full budget up to
this point, the budget would be about 16.7%; however, the city has only spent about 9%.
Finance Officer Nielson reviewed the General Fund Balance Carryover report. In the General Fund, they try to keep a reserve between 25 and 33 percent, ideally. The General Fund Carryover
was at about 39% in 2022 and about 43% in 2023; however, at the end of this Fiscal Year he is estimating it will drop down to about 31.2%. During the budget process last year, if the
City Council would have accepted all of the budget requests, the General Fund Balance carryover would have dropped to about 16% by the end of fiscal year 2025. He said because of all
the budget cuts they were able to implement, he is projecting the General Fund Balance carryover to end at about 25% by the end of fiscal year 2025.
Finance Officer Nielson said several months ago the City Council decided not to build a new pickleball court and moved forward with the pickleball court renovation of the tennis court
at Smith Park. There has been discussion regarding the amount to set aside for future pickleball courts. They had mentioned setting aside $50,000; however, the estimated cost to renovate
the tennis court is at least $60,000 so he suggested setting aside $100,000. He asked the Councilmembers if they want to increase the amount to set aside.
Discussion regarding the amount of funds to set aside for pickleball courts. Council Member E. Erickson said the city needs to be planning for future pickleball courts because of the
demand there is from the community members. Finance Officer Nielson said there are some carryover funds from the last few years and those funds were carried over with the intent of purchasing
new playground equipment.
Council Member Johnson said it was difficult to obtain that money put away for pickleball courts, so it is hard to see it disappear. She agrees with Council Member E. Erickson that
pickleball courts are what the community members want. She said she would prefer to keep more than $100,000 in that account. Finance Officer Nielson said there is about $103,000 to work
with to take the General Fund Balance carryover to the projected 25%. The city received a grant of $20,000 from the Rocky Mountain Power Foundation to help with the costs of the court
renovations at Smith Park. The city is placing a sign on the fence surrounding the court stating the Rocky Mountain Foundation donated funds, they will leave the sign up for five years.
Finance Officer Nielson explained the next few years are going to be tight trying to keep the General Fund Balance carryover at that 25%. He said if the city takes 5% or 10% every year,
it is not going to take long before they can’t take anymore funds. Mayor Merrill said from a financial standpoint that makes him nervous.
Council Member Chambers suggested they leave the amount of funds set aside for the pickleball courts at $100,000 with the idea that they seek additional grants and hopefully at the
end of the year there is a surplus of funds to stay at 25% in the General Fund Balance carryover.
Public Works: - Keith Davidson
Public Works Director Davidson did not have a report.
Mayor’s Report/Business: (00:51:50)
Mayor Merrill reported City Staff is interviewing candidates for the Street Foreman position. He has participated in the interviews and some of the candidates are Street Department
crew members.
Mayor Merrill encouraged all to attend the Rick Robinson Christmas Light Show at Porter Park. The Chamber of Commerce is hosting the 2025 State of the City and County Breakfast on January
21st from 7:30 A.M. to 9:00 A.M. He reported the City Council meetings in January will be held on January 8th and 22nd because the first Wednesday in January is New Year’s Day.
Items for Consideration: (00:54:20)
Staff recommendation to approve amendments to the Employee Committee Bylaws – Scott Miller
City Controller Miller reviewed the amendments to the Employee Committee Bylaws.
Council Member Walker moved to approve the amendments to the Employee Committee Bylaws; 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 E. Erickson
Council Member C. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Planning and Zoning recommendation to approve a zone change at 340 W 2nd N from Low Density Residential 1 (LDR1) to Medium Density Residential 1 (MDR1) #24-00939. Designated as Ordinance
No 1325 if motion passes – Alan Parkinson
Planning and Zoning Administrator Parkinson reviewed a section of the Planning and Zoning Staff report for the proposed zone change at 340 W 2nd N from Low Density Residential 1 (LDR1)
to Medium Density Residential 1 (MDR1).
Council Member Chambers moved to approve Ordinance No 1325 a zone change at 340 W 2nd N from Low Density Residential 1 (LDR1) to Medium Density Residential 1 (MDR1) and consider first
read; 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 E. Erickson
Council Member C. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Calendared Bills:
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. (00:59:22)
Minutes from December 4, 2024, Meeting
Approve the City of Rexburg Bills
Council Member C. Erickson moved to approve the Consent Calendar containing the minutes and city bills; Council Member 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 E. Erickson
Council Member C. Erickson
Council Member Reeser
Council President Walker
The motion carried.
Adjournment 7:29 P.M.
APPROVED:
________________________________
Jerry Merrill, Mayor
Attest:
_____________________________
Marianna Gonzalez, Deputy City Clerk