November 08, 2017 Council Meeting Minutes
Mayor: Mayor Cleo Gallegos.
Council Present: Chad Anderson, Dick Galbraith, and Joanne Justesen.
Employees Present:
Tony Morley, Paul Ross, Ralph Martini, Eric Christensen, Dan Bristol, and Ashlee Langley.
Visitors Present:
Heather Petersen, Jeff Poulsen, and Rose Schmitt.
Welcome & Pledge
Meeting conducted by Mayor Cleo Gallegos who welcomed everyone to the meeting.
Mayor Gallegos asked Councilman Chad Anderson to lead those present in the Pledge of Allegiance.
City Attorney Paul Ross asked that there be a consideration to amend the agenda to review and discuss some of the legal ramifications of the election yesterday. The good faith reason being that we had no idea what would happen at the election last night, let alone that it would result in a tie. Mr. Ross recommended the council have a discussion.
Mayor Gallegos asked for a motion to accept amending the agenda to include item #8A for a discussion regarding the legal ramifications of the November 7, 2017 election.
Motion by Joanne Justesen to approve amending the agenda to include a discussion regarding the legal ramification of the election as recommended by City Attorney Paul Ross moving this discussion to item #8A. Second by Chad Anderson. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
Discuss/Approve Minutes of the October 25, 2017 Council Meeting
Motion by Dick Galbraith to approve the minutes of the October 25, 2017 Council Meeting as presented. Second by Joanne Justesen. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
Discuss/Approve Paying the Bills
Motion by Chad Anderson to approve the bills as presented. Second by Dick Galbraith. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
Discuss/Approve/Accept the FY 2016-17 Audit – Jeff Poulsen – Evans, Poulsen & Catmull
Jeff Poulsen from Evans, Poulsen and Catmull presented the City of Heyburn FY 2016-17 Audit to those present.
Motion by Joanne Justesen to accept the FY 2016-17 Audit as presented. Second by Chad Anderson. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
Discuss/Adopt Resolution No. 2017-6 Connection Fees
Mayor Gallegos turned the time over to City Administrator Tony Morley and City Attorney Paul Ross to explain Resolution No. 2017-6 to the city council.
City Administrator Tony Morley stated that there was some verbiage in the last resolution that we wanted to correct and provide for an effective date. Mr. Morley stated the verbiage changes were things like changing site for single family dwellings. Mr. Morley felt like these small changes would make the resolution cleaner.
Mr. Ross indicated that by adding the base fee for single connections and spelling out the other portions for duplex, four-plex, and multiplex properties helped remove the ambiguity. Mr. Ross stated an effective date was added for clarity.
City Administrator Tony Morley stated adopting this version would cancel the last one and basically replace it.
Motion by Dick Galbraith to adopt Resolution No. 2017-6 Connection Fees as presented. Second by Chad Anderson. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
Discuss/Adopt Resolution No. 2017-7 Increase in Water Rates
City Administrator Tony Morley stated that copies of the current resolutions have been provided. Mr. Morley explained that the City is in the process of preparing new resolutions. The rate study originally was not going to be done for a few more months, so the city was looking at doing a small rate increase of 4.9 % as allowed underneath state statute, but in talking with Zions Bank who is doing the rate studies Matt Millis is thinking we can have the rate studies completed a lot sooner. Mr. Morley stated that it might make more sense to do one large increase than raise 4.9% now and turn around and raise the rate substantially a month or two later. Originally we thought there would be a larger gap in between raises due to the timing of the study.
City Attorney Paul Ross stated that the City currently charges $30.02 for the base rate, allowing 5,000 gallons and 75 cents per every 1,000 gallons exceeding the 5,000 gallons. The rate has not been increased since 2011. The proposed rate at this time would be about a 25% increase, raising the base rate to $37.53 for the first 5,000 gallons and $6.00 per 1,000 gallons thereafter would be more of an appropriate rate.
City Administrator Tony Morley stated that the cost of service study will determine how the 25% increase would be distributed throughout the fees being charged.
After a discussion regarding the need for rate increases in the water fund, no decisions were made.
Discuss/Adopt Resolution No. 2017-8 Increase in Wastewater Rates
City Attorney Paul Ross stated that the City currently charges a flat rate of $42.85 per month for domestic sewer. Mr. Ross stated the commercial rate is currently $42.85 for the first 7,500 gallons and a $1.50 for every 1,000 gallons after the first 7,500 gallons. Mr. Ross stated the rate looks like it would need to increase, possibly 38%, bringing the rate to $59.13 per month base rate. There has been no discussion regarding raising the 1.50 at this time, but that is something the city will look at as we move through the rate study. This rate has not been raised for 11 years.
City Administrator Tony Morley stated if the rate increases would have been done every year of 4.9% as allowed under state statute the City wouldn’t be looking at this big of a jump.
After discussion, no decisions were made.
Discuss/Adopt Resolution No. 2017-9 Increase in Irrigation Rates
City Attorney Paul Ross stated the City is far behind in what they are charging for irrigation rates. Mr. Ross stated currently the City is charging a minimum fee of $31.50 for 7,000 sq. ft. anything over 7,000 sq. ft. but under an acre is charged $0.0045 cents per sq. ft. The acreage rate is currently $40.00 an acre for up to 40 acres. Anything over 40 acres is charged by Minidoka Irrigation District. Worst case scenario, the city is looking at possibly a 125% rate increase because of the increase in costs by Minidoka Irrigation District and the increase in the value of water over the last 12 years. The City has not raised this rate in 12 years. This 125% increase would make the base rate $70.88 for 7,000 sq. ft. and under and the sq. ft. rate for anything over 7,000 sq. ft. but under an acre $0.0056 per sq. ft. The acreage rate would increase from $40.00 to $90.00 per acre. This is another area that the way the rate is structured can affect the base rate as well as the sq. ft. and acreage rate. These will all be worked out in the cost of service study.
City Administrator Tony Morley stated that the Water Department Manager Eric Christensen proposed rate increases in the past but did not receive any response.
City Attorney Paul Ross stated that this information is being shared tonight because of the sticker shock. This will provide the council time to think it over. Mr. Ross stated the City has a fiscal responsibility to operate, especially in the enterprise funds, on a balanced basis. As soon as the rate studies are complete, we can come back with some solid numbers.
City Administrator Tony Morley stated that the plan is to have something available at the first council meeting in December. If for some reason, the study is not done in time, we will have it available for the first meeting in January 2018 to make the new rates effective for the January 2018 billing cycle.
Discuss/Approve Scheduling a Special Council Meeting to Resolve Tie for Council Position by Coin Toss
City Attorney Paul Ross explained the process for resolving the tie for council position by a coin toss. Mr. Ross stated the council would need to schedule a Special Meeting in order to resolve the tie. Mr. Ross read Idaho Code Title, 50 Section 412 regarding final election results stating the City should receive the election results from Minidoka County Monday, November 13, 2017. Mr. Ross proposed scheduling the meeting for November 15, 2017 at 5:30 PM for the coin toss.
Motion by Chad Anderson to schedule a Special Council meeting for November 15, 2017 at 5:30 PM. Second by Dick Galbraith. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
Discuss/Approve Custom Geo-tube Purchase for Wastewater Treatment Plant
Those present reviewed a quote from Water Solve, LLC in the amount of $20,000 for the purchase of Custom Geo-tubes for the Wastewater Treatment Plant.
Motion by Joanne Justesen to approve the purchase of Custom Geo-tubes from Water Solve, LLC in the amount of $20,000. Second by Dick Galbraith. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
Discuss City Hall Building Sign Proposal
City Administrator Tony Morley informed those present that he plans to purchase a new sign for the front of Heyburn City Hall. Mr. Morley informed the council that the new sign will cost $2,349.
Discuss Onsite Information Technology Evaluation from Vision Municipal Solutions
City Administrator Tony Morley stated that Vision Municipal Solution performed an onsite evaluation on the Cities overall system and there is a great need for upgrades throughout the entire system.
Mr. Morley informed the council that the overall experience the City has had in working with Vision Municipal Solution since 2015 has been subpar. Mr. Morley stated the City is currently looking into other options to bring before the city council.
Committee Reports
Councilwoman Joanne Justesen stated there will be a meeting in December for the Joint Animal Control Board and she will report back after the meeting.
Comments from the Public
Mayor Gallegos opened this time up to the public for additional comments.
Motion to Adjourn
Mayor Cleo Gallegos asked for a motion to adjourn.
Motion by Dick Galbraith to adjourn the council meeting. Second by Joanne Justesen. Roll-Call Vote: Chad Anderson – Aye; Dick Galbraith – Aye; Joanne Justesen – Aye.
The council meeting adjourned at 8:15 PM.
Cleo Gallegos Ashlee Langley
Mayor City Clerk/Treasurer