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HomeMy WebLinkAbout01 17 2018 CM Study SessionCITY OF CHUBBUCK COUNCIL STUDY SESSION MINUTES JANUARY 17,2018 — 4:00pm CALL TO ORDER: Mayor England COUNCIL PRESENT: Annette Baumeister, Ryan Lewis, Melanie Evans, and Roger Hernandez STAFF MEMBERS PRESENT: Mayor Kevin England, Human Resource Director Scoff Gummersall, Public Works Director Rodney Burch, Devin Hillam, Bridger Morrison, City Clerk Rich Morgan, and Deputy Clerk Joey Bowers. GENERAL BUSINESS: 1. Self -Funded Health Plan Requirements Discussion. Human Resource Director Scott Gummersall presented the state requirements for the City's self-funded health requirements. Mr. Gummersall stated that the City needed to create a trust, appoint trustees to control the trust, and approve funding for the trust. Mr. Gummersall stated that trustees cannot be officers (elected officials) of the City, and Idaho Insurance Laws would require less ftmding for the trust than what the City is currently investing. Mr. Gummersall recommended to fund the trust at the minimum level, but continue to budget and fund the health plan at the current funding level. Mr. Gurnmersall stated that the trust would function similar to the way the City has been running this budget item. But instead of the mayor signing, the board of trustees would sign. Mr. Gummersall stated that the City would not lose the funds placed in the trust, but all previous claims would have to be paid and cleared before the State would allow any funds to be removed from the trust. Mr. Gummersall committed to get a written statement on how to liquidate the trust if needed from legal counsel, and the process to change appointed trustees. Mr. Gummersall explained that the City had sought legal advice relative to the termination of the trust, and the termination is outlined in Idaho code. Councilmember Lewis stated that the Council had already approved certain budget amounts, and paid claims out of that budget. Councilmember Lewis stated that this change was going to make the City compliant with Idaho Insurance Laws. Councilmember Lewis gave a history on why the Council decided to move from the IIIA and go to Self -Funding. The Council decided to go self -funding two and a half years ago and were able to lower the budget item and build up $740,000 in additional monies. Councilmember Lewis was concerned about it being an irrevocable trust and was wondering what would happen if in the future the City decided to move away from the self-fimded platform. 2. Discuss Water and Sewer Rates Outside City Limits. Public Works Director Rodney Burch wanted to get the Councils opinion on providing municipal services outside of City limits at an increase rate. Mr. Burch stated that currently there are 4 properties outside the city limits connected to city water and 31 connected to the sewer system. Mr. Burch stated that there has been an increase of applications in the county just outside of the city limits that could benefit from access to our sewer and water systems. Mr. Burch felt like to create a good relationship for the City, if the developer would build to all of the City of Chubbuck standards for subdivisions, and agree upon annexation at which point there property would be continuous, then the City would provide water and sewer at an increase rate to the property. County Ordinance limits the developer on the number of lots that can be developed without these connections. Mr. Burch felt like the increase fees is an incentive for the developer to solve annexation problems, and eventually a benefit for the homeowner when the property is annexed into the City. Mr. Burch stated that the City of Pocatello has been charging homeowners outside the City limits a higher rate for a number of years, but will make sure it is legally defensible before moving forward with these rates. Councilmember Evans wanted to know what the incentive for the developer to be willing to do that was. Councilmember Evans was wondering what the County thought about this option. Councilmember Evans felt like charging the same rate as residents in the City would just promote development outside of City limits. Councilmember Baumeister felt like if the developer is going to agree to build to City standards and future annexation, why would the City charge the homeowner a higher fee. Councilmember Baumeister did like that these developments would be built to City standards. Councilmember Lewis wanted to make sure that it was legally defensible to charge higher rates. Councilmember Lewis felt like people choose to move just outside of City limits to have lower property taxes but still benefit from what the City has to offer, so a higher rate makes sense. He also used the example that a water line to four homes has the same cost for maintenance and upkeep as a water line that runs to 50 home subdivision, but has less residents sharing that cost. Mayor England agreed that the City needs to make sure that these are legal fees and that the City is only charging a fair increase and not taking advantage of the homeowner. 3. Discussion on Designated Depositories. City Clerk Rich Morgan explained that Council has to approve City depository locations and listed all the current locations. Mr. Morgan stated that the question had been asked why Idaho Central Credit Union was not an approved depository location for the City. Mr. Morgan wanted Council to know that if they wanted, all they would have to do is approve to make Idaho Central Credit Union an approved City depositary location. 4. Beautification Program Discussion. Council discussed ideas on how to encourage and promote beautification of the City. ADJOURN: Mayor Kevin England adjourned at 5:09.