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HomeMy WebLinkAbout03 15 2011 CM17 City of Chubbuck Council Meeting Minutes March 15, 2011 7:00 p.m. Minutes of a regular council meeting held at the Chubbuck City Council Chambers, March 15, 2011. Present: Mayor Steven England, Council Members Josh Ellis, Kevin England, Kent Kearns, Kermit Morrison, Attorney Thomas Holmes, Clerk Rich Morgan, Public Works Director Steve Smart. Meeting was called to order at 7:00pm by Mayor England. Pledge of Allegiance to the Flag was led by Eric Perry of BSA troop 369. Invocation was offered by Randy Severe Chubbuck City Police Chief. Approval of Minutes - Mayor England asked for corrections and additions to the regular meeting minutes of February 22, 2011. Council Member Kearns moved to approve the regular meeting minutes of February 22, 2011. Council Member Morrison seconded. Roll call vote: Ellis -yes, England -yes, Kearns -yes, Morrison -yes. Public Hearing The City of Chubbuck proposed to increase the waste water service charge. The City is contemplating a increase from $38.10 to $54.95. Mayor England gave an explanation of the decisions and circumstances that have brought the City to this point. The text of his explanation is below: Since my first involvement with city government but most especially during the time I have served as Mayor, the series of decisions that bring us to this point have been some of the most difficult not only for me, but for the different individuals who have served on the city council and members of the city staff. The previous city administration under the direction of Mayor Cotant, had expressed for years concern with the number ofseptic systems that were being installed in the north county in order to facilitate construction outside the reach and capacity of our sewer system. I shared this concern and felt a need to address it as I began my service as Mayor. Chubbuck was experiencing accelerated growth and there was considerable pressure on the county to alter their lot size requirement in order to provide for more dense growth in the north county. Partnering with Bannock County and Pocatello, we were able to obtain a grant to do a feasibility study on a sewer build out that would include the entire north county that wasn't already in one of the two cities. All of the land east of I-15 had been designated as the City of Pocatello impact area and west of the interstate had been assigned as City of Chubbuck impact area. An impact area in simple terms is the area of the county adjacent to an incorporated city that should it be annexed into a city would become part of that designated city. It was Council Meeting Minutes - (Cont.) 19 March 15, 2011 determined as part of these discussions that Pocatello had already accounted for providing sewer service for their impact area, consequently the study was altered to only include the Chubbuck City area of impact. Pocatello continued their involvement because of an interest in protecting the aquifer as well as being the entity that would provide the treatment for the any new sewer lines. Even though there were many potential advantages to this sewer build out, the dominant factor continued to be the protection of the aquifer. As you will see in some of the illustrations that will be presented, there are currently many septic systems already in place. Our goal became to provide the opportunity to abandon as many of those systems as possible as well as provide a sewer alternative to future development. We also needed to address inadequacies in the existing city sewer system. An additional advantage to the expansion of the sewer was the availability of this utility infrastructure to potential business or industry that may want to locate in either the city or city impact area. As the availability of the revenue stream necessary to provide the funding for the repayment of the debt incurred was discussed, it was anticipated that a substantial portion of the funds would be generated by connection fees to the new lines. At the time of our initial incurring of debt and the beginning of the projects, there was a significant amount of development pressure for the area, both in and outside the current city limits. Because our current sewer system would also be enhanced, it was always anticipated that our rate payers would participate in a portion of the improvement cost. Even though there has not been the development as we had hoped, the economic down times we have experienced have created some positive elements to our dilemma. We were offered and secured 0% interest on the majority of the loans that were acquired. Also, because construction had slowed we got very favorable bids on the projects. The cost of the projects came in about 30% under engineers' estimates. Between these two advantages we were able to complete these phases of the build out for millions of dollars less than if we had proceeded during better economic times. The availability of this sewer infrastructure should assist in encouraging development as the economy improves as well as the intended protection of the aquifer. All this explanation having been made, the bottom line is the funds needed to service the debt incurred will need to be available to start payments in the coming year and we need to provide a way to meet this obligation. The task of the city council and the purpose of this public hearing are to provide the details and options that need to be considered. We will be segregating this charge from the existing sewer accounting on the monthly utility bill. As additional revenue is generated, mostly in the form of new connections to the system, we will adjust the amount of the monthly charge. We hope to review and make these changes every six to 12 months. One thing I think is very important in this initial decision is that we set the rate so that our adjustments will never allow the rate to have to be higher than this original amount. Council Meeting Minutes - (Cont.) 21 March 15, 2011 My commitment to you is that 1 will make a constant concerted effort to find ways that we can improve the revenue stream into this debt service account in order to reduce the burden to our city utility rate payers. We had hoped that the initial burden would not have been so steep. I continue to be convinced however that protection of the aquifer is worthy of this kind of attention. The potential cost of cleaning or filtering the nitrates out of our drinking water should they reach unacceptable levels would make this cost burden to the city pale in comparison. I thank you for taking the time to join in this deliberation tonight. 1 hope you will be able to provide some positive input that will help the council in the decision they will make on this matter. Steve Smart explained the North West Sewer Interceptor (NWSI) project. Rich Morgan explained the loans taken out by the City with the State of Idaho's Department of Environmental Quality (DEQ) to finance the NWSI. Mayor England declared the public hearing open asking for comments in favor of , neutral, or in opposition. Boyd Byrd - 5036 Kevin, commented that he does believe the council acted honorably. It was the correct decision to put the sewer system in. However, he does not believe that getting it approved through judicial confirmation was the right way to approve the project. He would like the council, in the future, to take projects of this nature, to the ballot. Mayor Bryan Blad - 911 N 7th Ave, Pocatello Mayor Blad expressed his support of the project. He is impressed how the City of Chubbuck is planning for the future. He mentioned the 43% growth the City of Chubbuck has experienced over the last ten years compared to Pocatello's %2 %. Protecting the aquifer is one of the number one items government can do. The economic downturn that erased the base the City was counting on for help in paying for the project is unfortunate. However, the downturn did allow the City to obtain 0% financing. John Boyal - 4891 Cole, Mr. Boyal felt surprised to read about this in the paper. He is worried about the economy. Wants those who are connecting to pay. Ginger Gugelman - 782 Sheba, Ms. Gugleman agrees with the plan - not the judicial confirmation. Citizens need to be more involved. She ask the council to please take into account the tax payers when making these decisions. Edward Bullock - 311 Siphon Road, Mr. Bullock remarked that he is retired and has had no raise for three years. He thought the project was poorly thought out and poorly timed and now the citizens have to bail the City out. There are two many ifs ands and buts in the City's explanation. Council Meeting Minutes - (Cont.) March 15, 2011 23 Richard Marley - 5150 Stuart, Mr. Marley stated those on fixed income just don't have it. He would like the City to take $14 off the meter fee and apply that for those on fixed income. This idea was good but it was pushed through without a vote. Terry Pirrong - Owner of a 4plex at 1100 West Quinn, Mr. Pirrong is concerned about the inequity of fees between the charges in Pocatello and Chubbuck. Mr. Pirrong submitted a graph of his rate analysis. His cost will be passed on to the tenets and this will hurt the City's economy. Mr. Pirrong asked why isn't everyone on top of the aquifer paying for this. Dennis Hobbs - 330 W Chubbuck Road #20 Mr. Hobbs is against any increase in rates. He would like to see the City send residents in the trailer parks a separate bill for the NWSI fee. Val Williams - 4908 Joy Street, Mr. Williams asked several questions about when homes will be required to hook up. He also ask for a clarification on any incentive being offered for those who do hook up immediately. He stated this will be raising his annual cost $200 dollars a year. He is opposed to this rate increase and would ask for other options. '— Craig Parrish - 689 E Chubbuck Road, Mr. Parish represents a couple hundred land owners that have land in Chubbuck. When increases like this happen the landlord becomes a dirty dog. We are dragging ourselves out of an economic recession. Growth has not come back yet but it is gearing up. Our tenants will not be able to afford this. Tenants will quit paying the rent. It appears to me that from the map that was shown the highest concentration of septic systems is 2 '/2 mile road and Moonglow Road and they are not in close enough proximity to connect. Mr. Parrish is in favor of the circuit breaker exemption. His answer to the overall project is stop it, cap it, mothball it, shut it down. Start again when development is back. He believes this decision was made on the pseudo science of the DEQ and that is a bad way to make policy. Larry Stark - 5153 Jake, Mr. Stark wondered if the council really saw asking the tax payers for this increase. We have Allstate and Dick's coming but it still seems like we are spending money we don't have. He has two jobs. He doesn't have the money for this kind of increase. Please don't go with the increase. Glen Schwartz - 762 Homstead, Mr. Schwartz would have preferred the City ask the voters. Our services are on par with other cities across the state except for the cost. He would like the City to tighten its own belt. Folks on the city council need to make Chubbuck a livable city. We can't always be to City Council meetings, we try to trust you. Council Meeting Minutes - (Cont.) March 15, 2011 25 Melanie Allen - 556 Victor, Ms. Allen has reviewed her past bills. Her level pay in 2002 was $61, in 2010 it was $80. Spokane WA is 60 dollars a month. With this rate increase her level pay will be $102 a month, which is more than gas and power. Melanie Williams - 608 West Chubbuck Road, She took a 4% pay cut last year and does not know what is coming down for pay this year. She would like to know if we have explored other revenue streams. Jack Clayton - 360 Lisa, Mr. Clayton works for the state and has not seen an increase in his pay. The power bill went up 21 % last year. Ray Tracy - 162 West Chubbuck Road, Mr. Tracy see's little benefit to him or his family. Upgrades of this magnitude should have gone to the voters. He would like the City to consider a tiered increase. The City should have increased fees a little before the completion of the project. Adam Wood - 4941 Mary Ln, Mr. Wood owns a business in town and he is down 30 %. He stated, if you plan a nice vacation and your income goes away the vacation goes a way. The City should cut off construction. Earl Boyer - 5087 Independence, Mr. Boyer wondered if we put a water line in. He moved into Chubbuck about 20 years ago and the bill was $40. Now its $80. The city funded trash collection, Linden Road cost about 700K for about 6 homes, you're putting in million dollar round -a -bouts that the citizens don't like. First responders are commended. However, Bannock County is required to provided ambulance, not the city. He doesn't believe in 0% interest. He would like the City to utilize the urban renewal. Please stop being managers and step up and be leaders. We should have been asked to vote on this project. The citizens will prepare for the next election. Shari Matson - 5077 Independence, Ms. Matson does not like the terms of the loan and is concerned that we will have this loan for 20 years. Jerry McIntosh - 4547 Pocahontas - Mr. McIntosh expressed concerns over the project. Trever Smith - Constitution, would like the city to institute a 20 year progressive tax to pay back the loan. Glen Cranor - 617 Dell Road, Mr. Cranor does not like the process of judicial review and knows there are other judicial reviews in progress. Mayor England declared the public hearing closed. Council Meeting Minutes - (Cont.) 27 March 15, 2011 Councilman Josh Ellis shared a personal historical perspective that guides his decisions. Council member Morrison moved to table any action on the waste water rate increase in order to review the comments made tonight. Council Member Kearns seconded. Roll Call vote: Ellis - yes, England -no, Kearns -yes, Morrison -yes. Council Member England moved to authorize the disposal of surplus equipment. Council Member Morrison seconded. Roll call vote: Ellis -yes, England -yes, Kearns -yes, Morrison -yes. Computer print -out claims for March 8, 2011 were presented to Mayor England and Council. Council Member Kearns moved to approve the computer print -out claims as presented. Council Member England seconded. Roll call vote: Ellis -yes, England -yes, Kearns -yes, Morrison -yes. At 9:11 pm Council Member England moved to adjourn. Council Member Kearns seconded and the full council approved. *even. Engl , Mayor Rich Morgan, ity Clerk