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.