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HomeMy WebLinkAbout2018-05-01Meridian City Council May 1 , 2018. A meeting of the Meridian City Council was called to order at 6:00 p.m., Tuesday, May 1, 2018, by Mayor Tammy de Weerd. Members Present: Tammy De Weerd, Joe Borton, Genesis Milam, Luke Cavener, Ty Palmer, Anne Little Roberts and Treg Bernt. Others Present: Bill Nary, C.Jay Coles, Clint Dolsby, Cameron Ariel, Scott Colaianni, Charlie Butterfield, Mike Barton, Robert Simison, and Dean Willis. Item 1: Roll -call Attendance: Roll call. X Anne Little Roberts X Joe Borton X Ty Palmer X Keith Bird _X Genesis Milam _X_ Lucas Cavener X Mayor Tammy de Weerd De Weerd: Okay. Well, I will go ahead and start tonight's meeting. First I would like to welcome all of you that are here in attendance. Welcome to our City Council meeting. For the record it is Tuesday, May 1st. May Day. So, happy May Day. Does anyone remember when we used to deliver May Day baskets? I was going to do that this morning, but I didn't think anyone would -- would connect, so -- but we will open this meeting with roll call attendance, Mr. Clerk. Item 2: Pledge of Allegiance De Weerd: Thank you. Item No. 2 is the Pledge of Allegiance. If you will all rise and join us in the pledge to our flag. (Pledge of Allegiance recited.) Item 3: Community Invocation by Larry Woodard with Ten Mile Christian Church De Weerd: Item 3 is our community invocation. Tonight we will be led by Larry Woodard with Ten Mile Christian Church. Larry is a repeat and we always love to see you, Larry. If you will all join us in the community invocation or take this as an opportunity for a moment of reflection. Woodard: Well, it's a pleasure to be here. Before we begin our city business tonight it's altogether fitting that we pause and thank our dear Heavenly Father for all the blessings that we have in this city. Giving wisdom to this Council, its Mayor, and the many city employees who help make this city one of the best in the United States. Our dear Heavenly Father, we read regularly of the many challenges facing some of our nearby Meridian City Council Meeting Agenda May 8, 2018 — Page 98 of 416 Meridian City Council May 1, 2018 Page 2 of 22 smaller cities who are struggling with growth, but we should not forget them. Just a few short years ago Meridian was such a small city, growing in just over 25 years from 10,000 to over 100,000. Continue to give this Council the wisdom to maintain and accommodate growth that is seemingly not ending. Tonight I want to single out our police department for a special blessing as they face, along with other cities across our nation, this scourge of opioids. Protect our cities from this epidemic, which is affecting too many families and our police who are trying to rein it in. Tonight we also want to thank and recognize the many city employees who carry out the decisions made by this Council. Some may be young and this may be their first job, but may they sense the responsibility that is given them to implement tonight's decisions. Thank you, God, for blessing this city. Thank you for our schools, churches, businesses, homes, city employees and ACHD, which works to fix our streets. I say all of this in Jesus' name, amen. Item 4: Adoption of Agenda De Weerd: Thank you, Larry. Justin, I think you need to take that back to Director Wong that he even remembered ACHD. That is awesome. Thank you. Item 4 is adoption of the agenda. Palmer: Madam Mayor? De Weerd: Mr. Palmer. Palmer: I move we approve -- adopt the agenda as published. Little Roberts: Second. De Weerd: I have a motion and a second to adopt the agenda. All those in favor say aye. Did I hear all ayes? I guess so. It was like what is missing. MOTION CARRIED: FOUR AYES. TWO ABSENT. Item 5: Future Meeting Topics - Public Forum (Up to 30 Minutes Maximum) De Weerd: Item 5. Mr. Clerk. Coles: Thank you, Madam Mayor. We did have one sign up, Brad Smith, who indicated the Ada County Assessor presentation. Item 6: Proclamation A. Better Hearing Month De Weerd: Thank you. No -- no confusion. No problems. Thank you. Okay. Item 6 is a proclamation. I'm going to move down to the podium. So, I have the privilege to read Meridian City Council Meeting Agenda May 8, 2018 — Page 99 of 416 Meridian City Council May 1, 2018 Page 3 of 22 a proclamation declaring it Better Hearing Month. My dad has a hearing disability that continues to get worse over time and I know how isolating that can be and so this is to really recognize those that are going through similar occurrences and how it can disadvantage them. So, bringing awareness to it is always a good thing. Whereas hearing loss is the third most common health problem in the United States and more than half of the people with hearing loss are younger than age 65 and whereas hearing care professionals offer quality education and healthcare services to its citizens, which improves the quality of life for people of all ages and whereas the City of Meridian, Idaho, recognizes and values the efforts of all who work to eliminate or minimize the isolating effects of communication disorders in the one in five families affected by them and whereas our citizens who have overcome communication disabilities through the services of hearing care professionals are now able to lead independent, productive and more fulfilling lives and whereas hearing healthcare professionals observe and celebrate Better Hearing Month each year during the month of May, therefore, I, Mayor Tammy de Weerd, hereby proclaim May 2, 2018, as Better Hearing Month in the City of Meridian and I ask and encourage all residents to applaud the achievements of hearing care professionals in improving the quality of life for people with communication disorders. And I am going to hand this off to Susan and ask if she has any comments that she would like to share. Thank you for being here. Elcox: Thank you. Yeah. I would just like to say that at Treasure Valley Hearing and Balance this year, in honor of this proclamation, we are offering free screenings for everybody in the public. So, if you think you have an issue or even if you think you don't, because we do recommend that you manage your ear care just like you do your eyes, come in and see us and make sure that your hearing is up to snuff and if it isn't, then, we have some answers for you and we will be glad to talk to you about it. Thanks. Item 7: Consent Agenda A. Movado Greens Subdivision No 1 Sanitary Sewer and Water Main Easements B. Movado Greens Subdivision No 1 Sanitary Sewer Easement #1 C. Movado Greens Subdivision No 1 Sanitary Sewer Easement #2 D. Final Plat for Whiteacre Subdivision No. 5 by Kent Brown, Located on the West Side of N. Meridian Rd. and W. Lava Falls Dr. E. Final Order for Bainbridge Subdivision No. 7 (H-2018-0022) by Brighton Investments, LLC Located at the southwest corner of W. Chinden Blvd. and W. Lost Rapids Dr. F. Final Order for Bicentennial Farm Subdivision No. 1 (H-2018- 0027) by Toll ID I, LLC, Located at 3880 E. Lake Hazel Rd. Meridian City Council Meeting Agenda May 8, 2018 — Page 100 of 416 Meridian City Council May 1, 2018 Page 4 of 22 G. Final Order for Bicentennial Farm Subdivision No. 2 (H-2018- 0028) by Toll ID I, LLC, Located at 3880 E. Lake Hazel Rd. H. Findings of Fact, Conclusions of Law for Baraya Apartments (H- 2018-0003) by Schultz Development, Located at the Southwest Corner of South Ten Mile Road and West Franklin Road I. Approval of Award of Bid and Agreement to Irminger Construction, Inc. for the Well 22 Treatment Project for a Not - To -Exceed amount of $970,618.00. J. WRRF Power Lines Bill of Sale, Authorization for Mayor's Signature K. Approval of Change Order 1 to Task Order 10626.a for "Well 22 Water Treatment Facility Design" to JUB Engineers, Inc. for the Not -To -Exceed amount of $56,350.00. L. City Financial Report for March 2018 M. AP Invoices for Payment 4/25/18 - $565,920.00 N. AP Invoices for Payment 5/2/18 - $1,679,477.59 De Weerd: Thank you. Item 7 is our Consent Agenda. Palmer: Madam Mayor? De Weerd: Mr. Palmer. Palmer: I move we approve the Consent Agenda as published. Milam: Second. De Weerd: I have a motion and a second to approve the Consent Agenda. Mr. Clerk, will you call roll. Roll call: Borton, absent; Milam, yea; Cavener, absent; Palmer, yea; Little Roberts, yea; Bernt, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. Item 8: Items Moved From The Consent Agenda Meridian City Council Meeting Agenda May 8, 2018 — Page 101 of 416 Meridian City Council May 1, 2018 Page 5 of 22 De Weerd: There were no items moved from the Consent Agenda. Item 9: Community Items/Presentations A. Mayor's Youth Advisory Council Update De Weerd: So, we will move right into Item 9-A, which is our Mayor's Youth Advisory Council update. Collin and Ben. Welcome. Freese: Okay. So, last Monday we had our MYAC elections -- De Weerd: You want to introduce yourself. Freese: My name is Collin Freese and this is Ben Hutchins. De Weerd: Thank you. Freese: So, last week we had MYAC elections and before I announced like everyone who got each position, I want to introduce your new vice -chair that will be speaking to you this upcoming year for MYAC and so -- yeah. Hutchins: My name is Ben Hutchins. I was elected the new vice -chair this upcoming year for MYAC. Last year I was at large ambassador for all small schools in the Meridian area and a little bit outside for North Star as well. I'm super excited for this opportunity. I'm really looking forward to this year. De Weerd: Congratulations, Ben. Hutchins: Thank you. Freese: Okay. So, when we had our elections we had a guest speaker named Shelly G and she gave an amazing speech and was really passionate about what she had to say, standing out in who you are and so Ben and I were thinking about sharing some notes that we had from her speaking, so -- Hutchins: Well, what she talked about was, really, just being a good speaker and a role model for those around you and taking your experiences in your life, being able to reflect on them and show other people around you what -- what a person really should be looking like around in schools and the community really. Freese: Yeah. And she really touched up on just, you know, with the past and experiences that you have and bringing out that character in yourself and so we -- we had an amazing time. I know a lot of people were touched by that, especially before we went into our elections. De Weerd: Thank you for sharing that. Meridian City Council Meeting Agenda May 8, 2018 — Page 102 of 416 Meridian City Council May 1, 2018 Page 6 of 22 Freese: So, the chair this year -- I'm going to go down a huge list, by the way, of people who got elected and -- but the chair is -- I don't know if you guys have met Logan, but he is now the chair of MYAC. De Weerd: And, actually, Logan was the one that was behind the participatory budgeting project of last year -- Freese: Yes. De Weerd: -- that we will be celebrating this week. Freese: And, then, obviously, we have Ben as the vice -chair and, then, we have a new secretary Robin. We have Jerry Gonzalez is the communications coordinator. Abby Hutchins is the social coordinator. Britain Davis is the government affairs chair. Amber Grace is the government affairs vice -chair. Shanna Thomas, Teen Activities Committee chair. Oh, goodness. De Weerd: Dalona. Freese: Dalona. That's right. That's right. Dalona. She is the new Teen Activities vice -chair. Sydney Fisher, community service chair. Clay Robins, Renaissance Ambassador. Conner Burbank, Rocky Mountain ambassador. Warren Johnson, Mountain View ambassador. Cortney McBride, Meridian ambassador. And Jacob Francis at large ambassador. Jackson Jones is also going to be the co -at large ambassador and he -- just a heads up, he was a middle schooler last year and he was still coming to MYAC meetings and stuff like that, like he was that engaged in MYAC itself before he could even technically be allowed to be in MYAC. And, then, yeah, the last thing we have is the -- again, the Pointe of Hope run that I brought to you guys last time. It's this Saturday and we have so many people volunteering. I know all the schools in the West Ada School District plan -- high schools plan on being there to represent each school in this run and so -- and we also saw that a lot of you signed up for the run, which I'm really excited that you guys signed up and thank you for doing that and --yeah. De Weerd: So, what time does it kick off officially? Freese: So, 9:45 early registration. 10:00 o'clock the event starts. At 10:30 McCarter will be speaking. And, then, at 11:15 the -- the race will start. De Weerd: Thank you. Freese: Are any other questions or comments or -- De Weerd: Any questions? Thank you for introducing us to next year's leadership. What is the -- do you have a closing out celebration? Meridian City Council Meeting Agenda May 8, 2018 — Page 103 of 416 Meridian City Council May 1, 2018 Page 7 of 22 Freese: Yeah. We are actually planning that and so -- you want to talk a little bit about that? Hutchins: We are planning a -- last we talked about we went to The Village coffee shop on Monday and we talked about our upcoming end -of -year party. We are thinking about doing it at a park and just having hot dogs and just having a really good time -- everybody who is in MYAC last year just having a blast. De Weerd: Good deal. Well, you have a lot to celebrate. It's been a productive year. You have had some major milestones and so I would like to congratulate you and, certainly, Ben, we will see you back next year. But, Collin, I know you will still be around. We do hope to see you on occasion as well and wish you luck as you graduate. Freese: Thank you. B. Annual Assessment Briefing from the Ada County Assessor De Weerd: Thank you. Okay. Item 9-B is our annual assessment briefing by our Ada County Assessor Mr. McQuade. McQuade: Madam Mayor and Council Members, it's nice to be back. It was exactly a year ago almost, because it was May 2nd of last year that I came and gave you a presentation. This is my first one for this year. I will do about I think 13 or so before all are finished. I have brought Brad Smith with me. He is my new chief deputy and he is going to do a couple of these for me this year to take some of the pressure off. I just want to tell you that we are sending out 42,000 assessment notices. We are looking at about the 26th of May and that will be to the citizens, the property owners here in Meridian. These numbers aren't final. I give you that caveat every year, but I will tell you this, the numbers I'm going to give you are pretty close to what it was in -- we just did an analysis of the airway. These numbers will be about one percent, maybe one percent low of what the final numbers will end up being. So, they are certainly robust enough for people to do some type of work with them. Before I get started I mentioned that this is really an interesting year that we are looking at and before I get into that I just want to just highlight a couple of things -- to say some things that are really interesting, so you might not just be totally incredulous and say, well, this makes sense. First of all, we assess property -- all the existing properties is -- we look at all of the sales. Well, we had about 10,000 or 11,000 sales in Ada county and we compare those sales prices to our assessed values for the previous year. These are sales from 2017. We will compare those sales to our 2017 assessed value and we will say if my property was assessed at 400,000, which it's not, but if it were 400,000 and it sold for 450,000 dollars, we will take a look at that and say, well, this property needs to be adjusted up and we will do that with the whole population. So, that's the primary method of determining our values and that's the market approach. It's really critical. Meridian City Council Meeting Agenda May 8, 2018 — Page 104 of 416 Meridian City Council May 1, 2018 Page 8 of 22 De Weerd: Mr. McQuade, I guess I have a question -- or maybe it's more of a statement. McQuade: Yeah. De Weerd: That sounds scary to me, because right now we have -- what I just heard today a housing inventory of 1.4 months. That's our inventory. McQuade: Here in Meridian? De Weerd: And so -- yes. McQuade: Yeah. De Weerd: And so when a house is sold it's not going at even appraised value, they are giving cash over and above that -- that value. So, those sales values are going to inflate I think artificially the real value of -- of homes. So, hopefully, we are not assessing them up because of those -- that bidding war that's going on on houses. McQuade: Well, Madam Mayor, this -- the way we do this -- this is prescribed by the International Association of Assessing Officers. This is a professional association by statute and by rule and regulation. We have to follow those rules and it does make sense, because that's what they are selling for. But I agree with you, it is scary what's going on out there and I will just kind of wrap up a little bit. MLS in March, I believe it was, 24 days of supply. They say six months is a typical market. Twenty-four days, less than a month of supply, and that's why the market has just gone crazy again. But, anyway, I will just keep going if you want to discuss this more. De Weerd: No. McQuade: Okay. De Weerd: I was just getting a little freaked out about what numbers you're going to give us. McQuade: And it's -- I will tell you, the Tax Commission does a ratio study on the quality of our work and we have to get a hundred percent plus or minus ten percent and so what they do is they will take these sales and they will adjust those sales and our assessed value needs to be very close to those sales prices. If not, they can order a reappraisal and that is not pretty at all. There was a county up in north Idaho, I believe it was Boundary county -- or Bonner -- yeah, Boundary county -- the assessor had increased the values, I can't remember what it was, 15, 20 percent, pick your number, whatever it was, and to put them into compliance the commissioners rolled those values back -- all of them back at the board of equalization. That made them out of compliance. Tax Commission ordered a reappraisal and when they do that it's not going to be, oh, Bob, you live here on the north, your value is going to go up six percent Meridian City Council Meeting Agenda May 8, 2018 — Page 105 of 416 Meridian City Council May 1, 2018 Page 9 of 22 and those of you at Vista, yours is two percent -- they will come in with a blanket and they say all single family residential will go up ten percent or whatever the number is and there was no appeal. That's why the consequences of being out of compliance are really important and that's why we work so hard to make sure that our values are right. Our values for 2017 were at 97 percent. In 2006 we are at 97 percent. So, we are a little bit less than that one hundred percent that we are supposed to be at. But, again, it needs to be one hundred percent plus or minus ten percent and as we go through perhaps there will be a level of comfort to you. If not we can talk about it some more. With that all having been said, total market value in Meridian is 12 billion dollars and that's up ten percent over the last year's 10.9 billion. That's the total market value. That's not what you're going to tax. It wouldn't be right to call it a potential tax value. To get to the potential tax value we have to take out the homeowners exemption, that's two and a half billion dollars, that's up a little bit over last year and I just want to add this one note, the homeowners exemption in 2016 was frozen at 100,000 dollars. So, even though we -- our values are going up now, the homeowners exemption is not going to go up, it is just going to stay there and so it would just become worth less and less and less and we look at what's going on this year, I think we are all going to say, boy, you know, something needs to be done about it and when I say this year I'm talking about 2018, what we will be talking about next year and take out home -- outstanding exemptions, this number was interesting. Last year when I was here I said we had -- we took out 254 million dollars of exemptions. This year only 39 million dollars is -- is an adjustment, because the commissioners have almost all of the exemptions done, they have been working really hard and so that's just kind of a wild card and we just put last year's value in as a proxy, but we know 30 million dollars is outstanding, so this is going to make this number even much better. Plus operating property, that's what the State Tax Commission assesses. This is going to be utility properties, such as railroad tracks for Union Pacific, gas lines, transmission lines, that's all operating property. The State Tax Commission assess that and those values really aren't available until August. So, we don't know. But, again, we well just use last year's value as a proxy and that's going to be reasonably close. So, I think the bottom line number in this is a potential taxable value and it's nine and a half million dollars. That's a 13 percent increase over last year's 8.4 billion. On just breaking things down a little bit, residential the account is 38,600, that's up four percent over the year before and now we are going to go into market value -- not taxable value, but market value of single family residential and this is where it gets really interesting to me. It's 9.1 billion. That's an increase of 16 percent over last year's 17.8 and I want to just talk about the median increase that we are looking at in Meridian for this year as of January 1st is 10.3 percent is the median increase and I mention January 1st, because that's a static date and we would expect our value -- we would expect a home to sell for our value we have -- very close to that if it were to sell on January 1 st, but as the market -- it's a very dynamic market and as fast as it's moving, the larger the departures we will go through, you know, through May and August and October we could be way off and the market is increasing ten percent, we would be ten percent under a sale that occurred in October and this is some reason why people think that we are either over assessing or under assessing, because they are looking at a sale that happened much later in the year. But a 10.3 percent median increase. I had to have a visit with my staff on this today, because MLS -- their percent Meridian City Council Meeting Agenda May 8, 2018 — Page 106 of 416 Meridian City Council May 1, 2018 Page 10 of 22 increase was eight and a half percent and I really wanted to figure out why is that, because I have always used that as a benchmark. Well, over the years I have watched the MLS data I have always wondered do I use the medium value of 2016 to the median value of 2017 and look at that change and say, okay, this is the percent change for 2000 -- the end of '17 and for January of '18 or the other method, which I have always pondered, which is better, do I look at what MLS listed a house -- the median sales price in January of 2016 and compare that to January of 2018 or 2017 and, then, 2018, because we are just looking at one month sales and that I really do believe is a better sign and if you look at that number at MLS, it's not eight and a half percent, eight and a half percent is the median value of 2016 with our medium value of 2017. January '17 sales to January '18 sales is over 15 percent increase. So, when we are looking at a ten and a half -- or 10.3 percent increase, I think, okay, I'm -- I'm more comfortable with that now and perhaps that probably really is -- is the better measure. Median value on single family residential is 250,000. MLS in January of this year was about -- I think it was 256,000. So, we are a little bit less than their median, but we are closer to it -- to that 250,000 median increase. You can't get anything in Ada county for less than 200,000, unless, as staff said, that it's a condo or it's a piece of property that is in very, very poor condition. There is nothing out there for less than 200,000 and we mentioned a minute ago and in Ada county -- this is at March -- 24 days on the market. That's why you see people who -- if someone wants to buy a house or they put a house on the market for say 250,000 dollars and someone will come by and I will give you 260,000 and another person will say I'm going to give 265. So, that's what's going on. Interest rates have increased this year. You would expect that -- expect that to dampen the market somewhat, but it really hasn't. All it dampened were refinancing. That stopped. But the market is still going crazy out there. Land value increase is certainly a large contributing factor and there is this saying as to understand house prices you need to know -- understand the land values. Land value this year about 15 percent increase. When I was here last year land values had gone up six percent. So, land values have -- percent change, the rate of changing has more than doubled since last year. That's land value. And we have a -- what is called a symposium in January where we have developers, lenders, people come in and talk to us and the message we heard is that they are really husbanding their land that they hold very carefully. They don't want to get caught like they did in 2007 and 2008 with these large inventories. When we had that recession the -- the larger, better managed companies, they were in the position to go out and start picking up a lot of these lots that at one time were selling for five hundred -- 50,000 dollars, they are now going for maybe 20, 25 thousand, and they just gobbled all that, so there is a lot more concentration of ownership in the parcels out there and they are just being very careful how they let that out. Other factors driving the values is -- there is a real labor shortage, increased price of materials and, then, we were talking about this bidding war, a lot of it is driven by in migration. We are seeing people coming in from California, Washington, Oregon, Nevada and they will have sold their house there for 700,000 dollars, a small property. They will come up here and they will buy a house for 350,000 someone might put it on the market for 300, they just bid it right up to 350,000 dollars, they want the house, they have got that and they still have, you know, 400,000 dollars walking around money in them. So, this is one thing that's really adding a lot of pressure, too, is the in migration that we have been looking at. All Meridian City Council Meeting Agenda May 8, 2018 — Page 107 of 416 Meridian City Council May 1, 2018 Page 11 of 22 of this in context is income. Can we afford this. I was thinking the other day I don't know how much longer I can afford my house and change in median household income, this is in Ada county, the last ten years, has been five percent. Not per year, but five percent over that period of time last year. We saw three percent increase. So, that was 2015 to 2016. That's the most available. So, when we are looking at housing prices going up at ten percent and -- hold on, because I have got even more news for you at the end of this -- eleven, ten percent, we are going to -- next year we are going to wish we had ten percent increases, those who are paying taxes and whatnot. But, again, ten percent increase does not translate into a ten percent increase in taxes. It might be a four percent increase in taxes or something like that, because as values go up, the levies go down. Quick I'm just going to talk about commercial property and we will wrap this up. You have 2,400 parcels valued at 2.8 billion last year. It's a decrease of market value. That doesn't make sense and it didn't to me either. So, I put my staff to work on that. Is what happened -- the big impact on this was the LDS temple. We assessed that last year and the board of equalization took that off, saying it was exempt as of January 1st. So, we saw 38 million dollars new -- of commercial property and new construction just go away and I mentioned the new construction, that's -- I will just get a little bit ahead of myself if I may. There was a bill passed in the legislature this year. The temple when -- it is work there that was in process. We call them parcel assessments. We will say if Walmart was building a new store and it was worth a million dollars January 1 st, it wasn't finished, we would put in an assessment of a million dollars on this parcel assessment and we did that with the LDS church last year, because it was not exempt, it wouldn't become exempt until it actually was doing the religious functions. Well, this legislation this year is what it is, if there is any property that potentially could be exempt -- oh. And, by the way, that 38 million dollars would have gone into your -- your new construction roll and you could have used that to increase your budget capacity by 38 million dollars. But with this new law, if it -- like this -- the LDS church or say another church or any other exempt property -- a school, for example, if it's going to be exempt, they can apply for a provisional exemption and, then, that value of that Walmart we will say was going to be a million dollars, they would get a provisional exemption and that million dollars would not go on the roll and it would not go into new construction at all and, then, once it was completed they would, then, apply for an exemption and if they received it, then, it would just go on and in a way I think this is a good piece of legislation. I believe Representative Moyle was behind this and I really thought it was good, because what was going on -- budgets were going up, 38 million dollars, but yet, then, it was taken off, but there wasn't an additional value of tax divided by the 38 million, it was being pushed off onto the homeowners exemption and commercial properties, owners, and everybody else. I think it was just really a good piece of legislation. But, anyway, that explains why your -- there was a decrease in the real property. Median change on commercial is three percent. Personal property is 206 million. That's the first time we have exceeded the amount that was there for the personal property exemption that went into effect in 2013. Total market value, not taxable value, of commercial is 900 -- was 2,945,000,000. Last year it was 2,952,000,000. So, it's virtually -- there is no change, it's just a quarter of a percent. And I'm just going to quickly wrap this up with your new construction. Again, that -- this is important, because that's where you can increase your budget capacity is the amount Meridian City Council Meeting Agenda May 8, 2018 — Page 108 of 416 Meridian City Council May 1, 2018 Page 12 of 22 of new construction. The amount of new construction here in Meridian is 464 million dollars. That's about a 14 percent increase. Two hundred and thirty-four million is because of residential, 108 million is because of commercial, and, then, there is a piece called new subs, change of status, a new -- if there is new land -- land that's been subdivided, it's increased in value because of a subdivision or if it's been rezoned, that is an increase in value and that's 113 million. I'm just going to -- before I end I want to talk about urban renewal, 212 million dollars, that's 50 percent compared to last year's 141 million. The Meridian urban renewal is 164. Ten Mile is 48 million. That's up 850 percent over the five million the year before. So, that's just really taking off. Tax burden has not changed. Your residential property is still paying 65 percent, commercial is 35 percent, and I'm just going to just close with just a couple of comments. 2007 as we all know was an extremely strong year in Meridian, it's just really been growing. There is a large demand for new homes and it was just causing prices to appreciate out here. We are seeing above normal price appreciation. Normal price appreciation in residential property is about four percent a year. We are over ten percent for '17. Looking at February and March MLS data, over 20 percent for January -- or for February increase, February '17 to '18. 1 thought that would just be a spike. I expected it to go down. March came in at over 20 percent. So, who knows what we are going to be looking at for this next year. The last time we saw values like this increasing it preceded by about 18 months before a collapse. I don't -- I'm not saying this market is going to collapse, I don't think the market is -- everything is so different. There is not a lot of speculative buying. People are paying cash and people are living in these properties. They are not buying a house for 175,000 to flip it a few months later for 225,000. It's a very different market. And lending is very different. So, I don't mean to say there is a crash, but it's -- the market is just -- I don't know how long we can sustain that. I'm just going to end up - - the Ada county population is 457,000. That's an increase of about 13,000, a three percent increase. Three percent, that's not a big number, but when you consider at three percent values are going to be doubling every 23 years. So, Madam Mayor, Members of the Council, that's what I have got to say. I didn't mean to take nearly this much time, but I felt certain things really needed to be explained, that it was -- it was important for us to know all of that. De Weerd: Thank you. Council, any questions? Mr. Bernt. Bernt: I don't have a question, just to comment. It -- you know, you listen to these numbers and like your mind is blown to a certain degree, but in another aspect it just goes to show, you know -- and I get asked this almost on a daily basis -- about the growth in Meridian and I think it's a true testament of what type of city we are and we must be doing things right or we wouldn't be experiencing the type of growth that we are doing. So, I guess going forward is just so important that we, you know, manage this growth in a smart way in order to keep the identity that Meridian has had for decades. So, appreciate the numbers. Those are -- those are some pretty eye opening numbers and -- and I will say that I'm -- I'm somewhat affiliated with the construction business and I would agree with you that the -- the market is strong and so, hopefully, it stays strong for -- I mean strong, healthy in a sense that, you know, we are not dealing with Meridian City Council Meeting Agenda May 8, 2018 — Page 109 of 416 Meridian City Council May 1, 2018 Page 13 of 22 fake investments or faux investments, that we are dealing with strong investments that will benefit our community for, you know, many years to come. McQuade: Madam Mayor, if I could just make one quick follow-up comment. To me this is the real challenge that you face is this big in migration and how are you going to manage it and let Meridian stay what people just love about this community, because it's -- I'm glad I'm here, not over there. De Weerd: Yeah. Thank you so much for coming. McQuade: So good to see you. Good night. Item 10: Action Items A. Public Hearing for Paramount MDA (H-2018-0038) by Brighton Corporation, Inc. Located at 5100 N. Dyver Ave. 1. Request: Modification to an Existing Development Agreement to Allow for Self -Storage Uses on the Property and to Modify Certain Other Provisions of the Development Agreement De Weerd: Nice to see you. Okay. We will move into Action Items. 10-A is a public hearing for H-2018-0038. I will open this public hearing with staff comments. Ariel: Madam Mayor -- there we go. Sorry about that. So, Item 10-A, it's my understanding that the application -- or the -- De Weerd: The site was not posted. Ariel: Correct. So, I believe this is going to be continued. De Weerd: Okay. I will need a motion now that the public hearing has been open to continue this item to May 15th. Palmer: Madam Mayor? De Weerd: Mr. Palmer. Palmer: I move we continue Item 10-A to May 15th. Milam: Second. De Weerd: I have a motion and a second to continue Item 10-A to May 15th. All those in favor say aye. All ayes. Meridian City Council Meeting Agenda May 8, 2018 — Page 110 of 416 Meridian City Council May 1, 2018 Page 14 of 22 MOTION CARRIED: FIVE AYES. ONE ABSENT. Item 11: Department Reports A. Parks and Recreation Department: Kleiner Park Bandshell Shade Discussion De Weerd: That was a short staff report. Darn it, I thought we would catch you on something. Okay. Item -- oh. And I would like to welcome and just give a call out to our Boy Scout in the audience. Thank you for joining us. We always love to see one of our scouts out there. So, good luck with your badge there. Okay. Item 11-A under Department Reports is our Parks and Recreation Department. Hi, Mike. Barton: Good evening, Madam Mayor, Members of the Council. Thanks for the opportunity to talk to you about a project that we have been working really for about the past year and that is to provide a shade structure for the front of the bandshell at Kleiner Park. Just to get you orientated so it's fresh in your mind. That's the bandshell. When the park was designed it was -- the bandshell was positioned so it would transmit sound away from the surrounding neighborhoods, but as a result of that it faces due west. So, in the summertime, late afternoon, early evening, it just -- it just bakes in there. There is a berm kind of to the west that helps a little bit in the -- in the later -- like dusk, 8:00 o'clock hour, but for the most part it just kind of bakes. So, what we have been working on for the past year is to solve this problem. We have come up with a design that has two shade cloths -- cloths that can be taken down in the wintertime, put back up in the summer when it's hot, you know, maybe about June 1st. So, at this time of year you would want to leave them off. The sun shine is pretty enjoyable and when it starts to get hot you put those up and -- and provide that coverage. So, there is four posts out in front and, then, everything connects to one common post in the back that's actually at the very back of the stage. The next slide kind of gives you an overhead view of what -- what that might look like. The other thing with a design like this you need to engineer it for wind loading, but there is no snow load requirement. So, constructability is a little easier in that regard. So, it seems like a good solution for people out there and it's high enough so when you're sitting on the berm, that we added trees to for comfort of the spectators last year, you can see underneath the front of it and there is no obstructed view. So, what we have -- you know, how -- how this whole thing got started -- shade has been a top priority with our -- with our citizens, with our surveys and our parks and rec -- rec commission. We have -- we have had feedback from users from the bandshell. They have -- we have heard, you know, comments it's just brutally hot, it's hot on some of the -- the Meridian symphony -- symphony was out there and they were concerned that the sun was -- was baking their instruments it was so hot, so, you know, none of that is real good. So, we started the design process with Johnson Architects and took a couple different versions to the parks and rec commission. We had one that was three triangular sales that might have been a little easier to construct and they really didn't like that, it didn't provide complete coverage over the area, so we kind of stuck with the design that you saw here and during the process we got pricing from a contractor that's installed shade sails and picnic shelters for us in the past and so kind Meridian City Council Meeting Agenda May 8, 2018 — Page 111 of 416 Meridian City Council May 1, 2018 Page 15 of 22 of a basis for some of the numbers that we came up with. And so just to -- just to kind of truth out some of the -- you know, is this going to provide the coverage that we want. We put together this shadow study and you can see how the time of day and the shading that -- that goes across and the -- this gets pretty well -- pretty well covered until about 6:00 or 7:00 o'clock and, then, at that point the trees start to take over and do a good job with some of that comfort in there. So, we wanted to truth that and just see that, you know, hey, is it really going to -- is it really going to work as intended. So, what we are here tonight is to get your feedback, you know, is this a worthwhile project, is the design appropriate. If it is what we would like to do is we would like to go through the budget process with an enhancement for fiscal year "19 of 90,000 dollars. We currently have 51,000 dollars in the budget for shade at Kleiner. It's a combination of both last year's budget enhancement for 32,000 dollars that -- when it was presented it was to help fund something for the front of the bandshell. So, we want to put that towards the solution and, then, another 19,000 dollars from the -- the tree plantings that I mentioned on the berm. So, together we have 51,000 dollars saved up. We would like to put another 90 towards it and would appreciate any questions or any feedback that you might have. Is it worthwhile? Should we keep going or stop right here or change what we are doing? And I will pause. De Weerd: Thank you, Mike. Palmer: Madam Mayor? De Weerd: Mr. Palmer. Palmer: Madam Mayor. Mike, thanks for going to the work to figure it out and finding out what would be the best option. However, 141,000 for something that appears to be mostly useless from 4:30 to 6:30 1 think would not be a wise use of the public's money. Milam: Madam Mayor? De Weerd: Mrs. Milam. Milam: Mike, so is that 140,000 dollars just for those sails -- the construction of that? Barton: Madam Mayor, Councilman Milam, it is and it's for the shade sails, it's for the posts and the footings that need to go in. Something that size has a really substantial footing and -- and all the grounding. The other thing that makes it a little bit difficult is that common post in the back and just getting in there to work. So, yeah, that's -- that's the -- the cost of what you saw here would -- would be 141,000 dollars. Milam: That just seems so high. Barton: It is. And so part of -- part of what we do -- it does. And we have struggled with this as well as that -- you see shade cloths that are attached to buildings and stuff at restaurants and you think, yeah, that's pretty easy. But we need to engineer things to Meridian City Council Meeting Agenda May 8, 2018 — Page 112 of 416 Meridian City Council May 1, 2018 Page 16 of 22 the 2015 International Building Code, that these shade sails like this need to -- need to withstand 120 mile an hour wind load. No snow load, but wind load. And we have even argued and said, you know, at 70 miles an hour the fabric is gone and all you have is a flag pole. But it doesn't matter. The code is what it is. Little Roberts: Madam Mayor? De Weerd: Yes, Mrs. Little Roberts. Little Roberts: Madam Mayor. Mike, thank you so much. I know this has been an ongoing project and a lot of ideas have been looked at that have not met it and I have been up on that stage when it's been exceedingly hot. So, I definitely think that it is a worthwhile project. That bandshell is used so much. It's such a great asset for what we have. My question for you is the material, has it been like approved or tested for musical performances? Is this going to change the sound any? Barton: Yeah. Great question. We -- we are not sure. A lot of the sound that's in there is amplified, so it wouldn't matter with that. Some of the other stuff -- we are not sure. And I don't know how well the bandshell itself is acoustically designed to begin with. So, you know, we had that discussion and kind of what we came up with is its -- shade is better than no shade, because if you don't have the shade a lot of people just don't want to play there. Little Roberts: Thank you. Bernt: Madam Mayor? De Weerd: Mr. Bernt. Bernt: Mike, thank you for your presentation. One question. How much for just -- you know, for future purposes, the replacement of the -- of the actual shade? Barton: Great -- great question. So, the fabric itself has a lifespan of about ten to 15 years. It depends on how long you leave it up. So, I would anticipate putting in it up around June 1st and taking it down the first part of September. So, we would be on the 15 year span and both of those -- those fabric pieces would be about eight to ten thousand dollars to replace and that would be every approximately 15 years. De Weerd: Okay. Additional questions? Comments? Cavener: Madam Mayor? De Weerd: Yes, Mr. Cavener. Cavener: Madam Mayor, Council, my apologies for being late, but I was able to watch Mike's presentation via YouTube or listen to it in my car on the way in. One question Meridian City Council Meeting Agenda May 8, 2018 — Page 113 of 416 Meridian City Council May 1, 2018 Page 17 of 22 that I didn't hear that I'm hoping maybe you can provide for us is we are talking about a four month period and I know that there is only certain events that would fall kind of within the bubble of time of when the shade would really be beneficial. How many events a year are we talking about? Barton: Yeah. So, that -- Madam Mayor, Councilman Cavener, that's a great -- great question and that's something -- so, when the park first opened in 2012 we had 24 total bandshell reservations. In 2015, you know, kind of fast forward it's been gaining, so 2015 there were 64. In 2016 there were 60. And last year there was 57. So, we are right about 60 a year. If you -- if you figure that each time block is 150 dollars, you know, either for the morning or the afternoon and, then, you could rent it for 300 dollars a day, you could figure that -- and some of these reservations were nonpaid, where some of our summer camps would -- or schools would have a musical performance, because of our fee waiver we are not going to charge them for it, so I figured 30 paid reservations at 150 bucks we are bringing in 4,500 a year'ish. I was going to try to get really accurate numbers, but because we switched our software it's -- all that's gone. But that will give you a good idea. Cavener: Madam Mayor? De Weerd: Mr. Cavener. Cavener: And, Mike, I appreciate you trying to take the financial mindset into consideration and I think we all know that if -- and the Council has been before, we are not -- there is window of time in which we will ever recoup the investment back in doing something like this. Thirty-five years. Thank you, Council Member Milam. I think my -- my focus has been more about how many events are we positively impacting and I know that there are lots of events that happen in the morning and you talked to -- I think in your presentation about there is a point in time where the -- the trees start to provide the shade and so for me, what I'm trying to wrap my head around, is of those -- let's say 60 events a year, how many are going to fall within the window of time that the shade structure is really going to benefit them? Is it just the Meridian symphony's event? Is it Gene Kleiner Day? Is it one or two additional events? To me that -- and we don't need an answer for that tonight, but I think that if this were to move forward in the budget process, to me that's a really important piece is how many events really is this large investment going to impact. Barton: Yeah. And just -- just as kind of off the top of my head, more than half, because most of the concerts are in the afternoon and evening. The morning time block where it would still be somewhat shaded and cool, we have had some church services out there, those -- it wouldn't impact that for sure, but for the most part it's June, July, and August and it's in the afternoon. So, 75 percent would be a -- that would be a good educated guess. De Weerd: Mr. Borton? Meridian City Council Meeting Agenda May 8, 2018 — Page 114 of 416 Meridian City Council May 1, 2018 Page 18 of 22 Borton: Madam Mayor. As for me, the answer to the first question is clearly in my mind a worthwhile project, the shade issue in all of our parks, but here in particular has been a hot topic and high on the priority list to make sure we can address whether the design is appropriate. I don't know if there is other less costly options. I don't know as I can provide any input to assist with that question, because I don't know what to compare it to, but -- so, it's definitely a worthy project. One of the challenges is trying to address these in a one-off way. Sort of had that with Homecourt, as opposed to, you know, reviewing it in conjunction with all the enhancements in the entire budget next month? Barton: Sure. Borton: So, kind of difficult to make a definitive up and down right now, but -- Barton: And, Madam Mayor, Councilman Borton -- and that's really why we are here now. I mean what we want to know is this -- are we just -- you know, no. Is it, you know, stop right here or go forward with a budget enhancement and at least we have socialized it with Council and we know that, you know, kind of the design and the cost and the purpose and, you know, some time to think about it and if there are any -- any additional data or questions that you might have we can bring back would be happy to do that. De Weerd: Yeah. I don't think it was put here for an action item, just for your information. I know it's been a priority for some time, as Mrs. Little Roberts had mentioned. The first phase of shade has been done and that was for the audience peace with the -- the planting of the trees. This one was just a lot more complicated, because any shade is more intrusive to covering the performers. That was the -- the biggest challenge and why you -- you have something a little bit more elaborate. So, I guess -- I think Council needs to see this compared to all the other priorities and -- and two -- because it is the number one priority for the Parks Commission, you need to include it in that process. Barton: Perfect. De Weerd: Council, if there is any questions that you think of between now and -- and budget, please, let the Parks Department know and they can build that into their presentation. Any further questions? Comments? Cavener: Madam Mayor? De Weerd: Mr. Cavener. Cavener: Not a question. I just -- like I appreciate you coming before us and at least asking our feedback and the -- I know that it's easy to sit here and say, oh, let's wait and see until the budget and I'm completely open to that, but as I think you heard from some of the comments before I was here, this is a very expensive request and I am struggling to see the total benefit related to the cost, so it's one that I personally, without seeing Meridian City Council Meeting Agenda May 8, 2018 — Page 115 of 416 Meridian City Council May 1, 2018 Page 19 of 22 substantially more data to justify why we should have it, that's not something that I am completely supportive of at this time. Barton: Thank you. B. Mayor's Office: Adding a Post Office Update De Weerd: Thank you. Okay. Item 11-B is under the Mayor's office with an update on the post office discussion. Simison: Madam Mayor, City Council, in your packet you had a memo that I put together for you just to kind of outline the steps that have been -- that have taken place over the last couple of months in regards to reaching out to see if another post office location will ever be warranted by the postal service in Meridian. This is, obviously, something that we have limited capabilities in influencing, but that being said, we have reached out to Congressman Labrador's office who provided us the framework of the steps that, in theory, the postal service is taking. It was not what I would call a robust document with an application and other components, but at least outlines the process, which we know is the zip code boundary review process. We have been in communication with the local postmaster and our Planning Department to try to get them the information that they may need and that information will eventually be sent on to the regional postmaster for consideration. I think just some of the things to note that what was included, but for your information in 2006 when we last got a postal zip code adjustment here in the community we had about 62,000 people. So, at that time, if you do the math, it's not one hundred percent, but if you divide it in half that would be about 30,000 people per zip code. Boise has six post offices. They have got about 240,000 people. So, you can start seeing some numbers in that 30 to 40 thousand person range. I would imagine that even if the post office wasn't looking at a new facility they would soon be looking at a -- they would have to be looking at considering an additional zip code here in our area, which would likely also -- I would have to think they have to think about a facility at that point in time. So, I think the time is right to engage in this process. We will be submitting that information as appropriate and we will also be working with the congressional delegation staff to see what, if any, advice they may have through that process for us. So, with that I'm happy to stand for any questions. De Weerd: Council, any questions? Cavener: Madam Mayor? De Weerd: Mr. Cavener. Cavener: First a comment, Robert. Thanks for the memo. I think that was really well thought out and at least gave me some context about what our discussion was going to be tonight and I appreciate that. Did staff of our delegation give you -- I mean it's something that I think that they probably haven't worked on before, but how this process Meridian City Council Meeting Agenda May 8, 2018 — Page 116 of 416 Meridian City Council May 1, 2018 Page 20 of 22 will play out, when we will be informed about when, if anything, is going to happen and, ultimately, if the question is going to be answered. Simison: Madam Mayor, Council, Councilman Cavener. So, the only conversation we have had with any delegation staff at this point is they reach out to CRS to provide a document that showed the process. I'm not aware that any of them -- we have engaged in the past on this with our delegation. It's been many, many years, but no -- the short answer is no. I mean even if and how and what the process wants to -- when will it be sent to the regional postmaster. When will we -- we will add the adequate information? There is a lot of those questions. I think it's -- you know, the intentions is to have a conversation maybe with delegation staff and, hopefully, get them to engage on our behalf at the appropriate time if necessary. De Weerd: We -- we have talked to our delegation in the past. This is the first time I have heard it ever associated with a zip code, which was a surprise. I know the postmaster has asked a number of times. It's not a new topic. But it seems to be one that just never lands anywhere. So, we -- we hope we found maybe the mechanism for doing that. If it is the zip code, that -- at least it's starting another discussion. Simison: And, Madam Mayor, Council, if I can elaborate on some of the information that was also from the 2008 issue, just so people understand what was being requested at that time. The postal -- at that time the post office was only looking at building a postal annex, not a facility for customers, so it was basically to expand their back office operations is what they were looking to do. It would have allowed for more space at the existing location potentially -- potentially for post office boxes and some of those if they would have been able to move their -- some of their operations many years ago, but it would not have provided another facility for customers to go to in the community at that point in time and I think that's ultimately the question that we are looking for is a place for -- so one doesn't have to drive to one location, because the road matters, you know, with one facility here in that location, just so -- for that. But Council considered the application at that time and for land use reasons decided not to support their application. De Weerd: And -- and following that, the next I guess strategy in dealing with the ongoing growth was to work with the private sector in providing post office box locations and -- and, then, they also did an expansion in their current location. The postmaster did tell me that they have had numerous assessments to -- because before a new post office can be considered, they have to have totally maximized all their space. They feel, of course, that they have, but there is a checklist of review and there were I think three additional areas that the assessor determined they hadn't exceeded capacity and so they believe they may be closing those on those three areas, so I think that all of the indicators with the zip codes, as Robert described, and what the postmaster has been doing on their current facility utilization is leading towards maybe a new facility. I don't know. But we are -- we are going to be definitely a part of the conversation. I know Brian in our Community Development has been working with the postmaster and providing additional number information that can help strengthen their arguments as Meridian City Council Meeting Agenda May 8, 2018 — Page 117 of 416 Meridian City Council May 1, 2018 Page 21 of 22 well. Any follow-up questions, comments? Certainly we -- we will keep you in the loop as we hear anything. Simison: Thank you. Item 12: Future Meeting Topics De Weerd: Okay. Under Item 12, anything for this? Oh, I have some events. Kleiner Memorial Plaza dedication is now on the 2nd, tomorrow, at 4:00 o'clock in Kleiner Park. City 101, May 3rd, from 9:00 to noon and that's focused on parks and police. The Association of Idaho Cities 3-A district meeting is on Friday from 11:00 to 1:00 at the AIC meeting -- or AIC office. As you heard from MYAC, the Pointe of Hope suicide prevention run, which you are all signed up for on Saturday, May 11th, begins at 11:15. That's the running part. So, we hope that's the part you show up for. And the town hall meeting is next Wednesday, May 9th, at 6:30, at St. Ignatius School. Okay. Item 13: Executive Session Per Idaho State Code 74-206(1)(d): To consider records that are exempt from disclosure as provided in chapter 1, title 74, Idaho Code; and 74-206(1)0): To consider labor contract matters authorized under section 67-2345A [74-206A](1)(a) and (b), Idaho Code. Palmer: Madam Mayor? De Weerd: Mr. Palmer. Palmer: Since I have made every motion so far today -- it looked like you were about to move us into 13. De Weerd: Yes. Palmer: I move we go into Executive Session per Idaho Code 74-206(1)(d), (j) and 74- 206(a)(1)(a) and (b). Milam: Second. De Weerd: I have a motion and a second to adjourn into Executive Session. Mr. Clerk will you call roll. Roll call: Borton, yea; Milam, yea; Cavener, yea; Palmer, yea; Little Roberts, yea; Bernt, yea. De Weerd: All ayes. MOTION CARRIED: ALL AYES. Meridian City Council Meeting Agenda May 8, 2018 — Page 118 of 416 Meridian City Council May 1, 2018 Page 22 of 22 EXECUTIVE SESSION: (7:05 p.m. to 8.42 p.m.) Palmer: Madam Mayor? De Weerd: Yes. Palmer: I move we come out of Executive Session. Milam: Second. De Weerd: All those in favor say aye. All ayes. MOTION CARRIED: ALL AYES. Palmer- Madam Mayor? De Weerd: Mr. Palmer. Palmer: I move we adjourn. Milam: Second. De Weerd: All those in favor? MOTION CARRIED: ALL AYES. MEETING ADJOURNED AT 8:42 P.M. (AUDI G ON FILE OF THESE PROCEEDINGS) MAYOR RqMY DE WEERD DATE APPROVED ATTEST: / Z C. JAY COL S, CITY LERK