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HomeMy WebLinkAbout1991 10-15 AGE N D A MERIDIAN CITY COUNCIL OCTOBER 15, 1991 ITEM: MINUTES OF THE PREVIOUS MEETING HELD OCTOBER 1, 1991 (APPROVED) 1: FINAL PLAT ON CENTRAL VALLEY CORPORATE #3: (APPROVED) 2: FINAL PLAT ON FAUTH SUDIVISION WITH REQUEST FOR WAIVER ON DRY LINES: (FINAL PLAT - APPROVED) (WAIVER - DENIED) 3: APPROVE SUMMARY OF ORDINANCE # 557 FOR PUBLICATION: (APPROVED) 4: RESOLUTION # 141:RESOLUTION IN SUPPORT OF FOREIGN TRADE ZONE SITE: (APPROVE 5: ORDINANCE # 561: ORDINANCE ALLOWING ESTABLISHMENT, OPERATION & MAINTENANCE OF FOREIGN TRADE ZONE: (APPROVED) 6: RESOLUTION # 142: RESOLUTION ADOPTING DEFFERED COMPENSATION PLAN: (APPROVED 7: RESOLUTION # 143: RESOLUTION ADOPTING FEE SCHEDULE FOR ZONING & DEVELOPMENT APPLICATIONS : (APPROVED) 8: REQUEST FOR EXTENSION ON PRELIMINARY PLAT ON FENWAY PARK SUBDIVISION(FORMERLY CRESTWOOD ESTATES) BY BILL BUCKNER: (APPROVED) 9: DEPARTMENT REPORTS: MERIDIAN CITY COUNCIL OC'IOBER 15, 1991 The Regular meeting of the Meridian City Council was called to order by Mayor Grant P. Kingsford at 7:30 P.M.. Members Present: Ron Tolsma, Bob Giesler, Bert Myers, Max Yerrington: Others Present: Wayne Forrey, Karen Forrey, Bob Corrie, Kevin Jones, Frank Thomason, D'Arlene Stutzman, Greg Chapman, James Ireland, Ryan Walker, Gary Smith, Bill Musser, Jim Johnson, Wayne Crookston, Members of Scout Troop #126, MINUTES OF THE PREVIOUS MEETING HELD OC'IOBER I, 1991: The Motion was made by Tolsma and seconded by Myers to approve the minutes of the previous meeting held October 1, 1991 as written: Motion Carried: All Yea: ITEM#l: FINAL PLAT ON CENTRAL VALLEY CORPORATE #3: Dave Roylance, I am the engineering representing the applicant. If you have any questions I'd be glad to answer them. Tolsma: You have seen the comments from the engineer? Roylance: We have and have been working with Gary. The Motion was made by Myers and seconded by Tolsma to approve the Final Plat on Central Valley Corporate Park #3: Motion Carried: All Yea: ITEM #2: FINAL PLAT ON FAUTH SUBDIVISION WITH REQUEST FOR WAIVER ON DRY LINES: Fauth: I just wanted to say that I appreciate you considering this tonight. Kingsford: I have some real concern about waiving that variance on the dry line issue. Fauth: At this point is you know where would I even go to to lay it out. We are only going 20 ft. wide with the pavement. There will still be considerable room. What is the width of a street? Eng. Smith: 36 ft. back to curb back to curbr you have four foot of curb and gutter so you've got 32 ft. of actual pavement. Kingsford: I believe it's our intention to run that 8" line to Ustick and turn the corner with it. I have a real concern about granting that variance. The other concern that I have is I didn't see any provision that that property might be resubdivided. Has your engineer given any thought to a potent ion resubdivision. Fauth: Not at this point. Giesler: How long before that water and sewer could be out in that area? KIngsford: We are building that eight inch line in Meridian Road at this point. But It will still be 700 feet away. MERIDIAN CITY COUNCIL OC'IOBER 1, 1991 PAGE #2 Kingsford: The property would it all sewer onto Ustick or is there potential for sewer directly across say the back of some of those other properties. Eng. Smith: The land drains from the south to the north towards Ustick. It was my impression that that would be how the sewer would have tobe constructed. Tolsma: What happens if in a couple of years they decide to annex that ground in, how would you fix all the water and sewer lines into that area if they are not put in now? Fauth: Well that's a good question I guess. I hate to be putting it in and then you change your mind and run it the opposite way. Kingsford: I think there is question but what it will have to drain onto Ustick Road. I support your idea but I do have some concerns that there is not some provisions made for resubdivision. Fauth: The sewer has to be down the center of the road? Eng. Smith: There is a corridor that the sewer can be installed within. Typically it is in the middle of the road. Fauth: I do have a 60 ft. right of way. Discussion. (TAPE ON FILE) Kingsford: What size pipe would that need? Eng. Smith: The State Health Department requires that any sewer line in any public right- of-way be a minimum of 8", there would be some manholes involved in that also, about every four hundred feet. Myers: I agree with the Mayor that those ought to be built in now. The Motion was made by Myers and seconded by Yerrington not to approve the variance. Kingsford: I think a more appropriate way would be to approve the plat and deny the variance. Myers withdraws the Motion made and Yerrington withdraws the second. The Motion was made by Myers and seconded by Yerrington to approve the Final Plat for Fauth Subdivision and deny the variance requested for the dry lines. Motion Carried: All Yea: Kingsford: I would like to recognize Boy Scout Troop #126 and welcome them to our meeting. ITEM #3: APPROVE SUMMARY OF ORDINANCE #557 FOR PUBLICATION: Kingsford: On October I, 1991, at its regular meeting on the 1st Tuesday of the month, the Meridian City Council passed and approved Ordinance No. 557, which Ordinance amended the Zoning Ordinance and the Subdivision and Development Ordinance which are contained in Title 11, Chapter 2 and 9, respectively, of the Revised and Compiled Ordinances of the City of Meridian, the Title of which Ordinance No. 557 reads as follows: MERIDIAN CITY COUNCIL OC'illBER 1, 1991 PAGE #3 Kingsford: This was done to summarize this Ordinance so that it wouldn1t cost as much to publish it in the paper. The Motion was made by Tolsma and seconded by Myers to approve the summary of Ordinance #557 for publication. Motion Carried: All Yea: Crookston: May I recommend that you reverse items #4 and #5 on the agenda. ITEM #5: ORDINANCE #561: ORDINANCE ALLOWING ESTABLISHMENT, OPERATION AND MAINTENANCE OF FOREIGN TRADE ZONE: Kingsford: AN ORDINANCE OF THE CITY OF MERIDIAN PROVIDING FOR AUTHORIZATION 'ill APPLY FOR A GRANT OF AUTHORITY 'ill ESTABLISH AND MAINTAIN A FOREIGN TRADE ZONE: FOR AUTHORIZATION 'ill ESTABLISH SUCH A ZONE UPON BEING FRANTED A FOREIGN TRADE ZONE: FOR THE ACTIVATION OF THE FOREIGN TRADE ZONE ONLY UPON FURTHER RESOLUTION OF THE CITY COUNCIL~ REQUIRING THAT ANY FOREIGN TRADE ZONE ESTBLISHED BE OPERATED ACCORDING 'ill APPLICABLE LAWS, RULES AND REGULATIONS~ THAT IN A FOREIGN TRADE ZONE IS GRANTED 'ill THE CITY, AUTHORIZATION 'ill OPERATE THE FOREIGN TRADE ZONE ITSELF OR 'ill ASSIGN AND DELEGATE THE DUTIES AND RESPONSIBILITIES TO AN OPERATOR OF THE ZONE ~ THAT IF A FOREIGN TRADE ZONE IS GRANTED TO THE CITY, THAT THE CITY AND ANY OPERA'IOR OF THE ZONE MAINTAIN SAID FOREIGN TRADE ZONE AS REQUIRED BY LAWS, RULES AND REGULATIONS APPLICABLE THERE'ill~ REQUIRING THAT THE CITY, IF IT IS GRANTED A GENERAL PURPOSE TRADE ZONE, WILL EXERCISE ITS I RESPONSIBILITIES AS GRANTEE AS REQUIRED BY LAWS, RULES, REGULATIONS PERTAINING THERE'ill~ AND PROVIDING AN EFFECTIVE DATE. Is there anyone present who wishes Ordinance #561 read in its entirety? No response. The Motion was made by Giesler and seconded by Myers that the rules and provisions of 50-902 and all rules and provisions requiring that Ordinances be read on three different days be dispensed with and that Ordinance #561 be passed and approved. Roll Call Vote: Yerrington - Yea~ Giesler - Yea~ Myers - Yea~ Tolsma - Yea~ Motion Carried: All Yea: ITEM #4: RESOLUTION #141: RESOLUTION IN SUPPORT OF FOREIGN TRADE ZONE SITE: Kingsford: A RESOLUTION OF THE CITY OF MERIDIAN IN SUPPORT OF THE ESTABLISHMENT OF A GENERAL PURPOSE FOREIGN TRADE ZONE, REMOTE SITE FOREIGN TRADE ZONE, OR A SPECIAL PURPOSE FOREIGN TRADE SUBZONE WITH THE CORPORATE LIMITS OF THE CITY OF MERIDIAN~ AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ON BEHALF OF THE CITY OF MERIDIAN AN OPERA'illRS AGREEMENT WITH INTERNATIONAL TRADE SERVICES, INC. SIMILAR TO ONE PRESENTED 'IO THE CITY BY INTER- NATIONAL TRADE SERVICES INC.~ NAMING AN OPERA'illR OF THE ZONE~ ENDORSING TREASURE VALLEY BUSINESS CENTER AS A FOREIGN TRADE ZONE SITE; AND PROVIDING AN EFFECTIVE DATE. The Motion was made by Tolsma and seconded by Yerrington to approve Resolution #141. Motion Carried: All Yea: ITEM #6: RESOLUTION fI:l42: RESOLUTION AOOPTING DEFFERED COMPENSATION PLAN: Kingsford: A RESOLUTION OF THE CITY OF MERIDIAN ADOPTING A GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN FOR THE CITY EMPLOYEES OF THE CITY OF MERIDIAN~ NAMING AN INITAL CONSULTANT AND ADVISOR FOR THE PLAN~ SETTING FORTH THAT THE PLAN SHALL BE MANAGES BY A GROUP OF TRUSTEES; NAMING AND APPOINTING THE INITAL TRUSTEES GROUP AND SETTING MERIDIAN CITY COUNCIL OC'IOBER 1, 1991 PAGE #4 FORTH THE TERMS OF OFFICE FOR THE INITIAL TRUSTEES AND PROVIDING FOR SUCCESSORS; AUTHORIZING THE TRUSTEES TO SIGN ALL APPLICATIONS AND OTHER PLAN DOCUMENTS AND PAPERS; AND PROVIDING AN EFFECTIVE DATE. The Motion was made by Giesler and seconded by Tolsma to approve Resolution #142: Motion Carried: All Yea: ITEM #7: RESOLUTION #143: RESOLUTION ADOPTING FEE SCHEDULE FOR ZONING AND DEVELOPMENT APPLICATIONS: Kingsford: A RESOLUTION OF THE CITY OF MERIDIAN PROVIDING FOR A FEE SCHEDULE FOR THE ZONING ORDINANCE AND THE SUBDIVISION AND DEVELOPMENT ORDINANCE; AND PROVIDING AN EFFECTIVE DATE: Is there any discussion on this item? Giesler: Are we able to change these if we see that they are not in line? Kingsford: Yes by Resolution. Yerrington: What percentage increase is this over the old? Kingsford: Gave explanation. (TAPE ON FILE) Crookston: The big justification for the change is the court ruling that the City can no longer pass to the developers the actual costs incurred so Jack did a study of costs that had been incurred and these fees here are actually lower than the costs that had been incurred. They are lower than the City of Boise's fees. Giesler: If for example on a Conditional Use we do receive a substantial amount of testimony that requires a substantial amount of work in our office, let's say it was twice that, the City will have to bear the costs. Kingsford: Yes. The court stated that they have to be reasonable and aware that they are going in. The Motion was made by Myers and seconded by Tolsma to approve Resolution #143. Motin Carried: All Yea: ITEM #8: REQUEST FOR EXTENSION ON PRELIMINARY PLAT ON FENWAY PARK SUBDIVISION (FORMERLY CRESTWOOD ESTATES) BY BILL BUCKNER: Kingsford: Is there a representative here? Jerry Iverson: I think you all are aware of the controversy that we have had to solve out there due to some promises made by a previous developer req9r.ding~-a~ recreation vehicle parking lot. Gave explanation on the R.V. parking problem. We have just obtained this evening a letter from the president of the homeowners association basically stating that they have come to an agreement with T & R Construction for the construction of the improvements and are accepting the new location that we are going to be tranSferring the T & R Construction for that R.V.P area and they are basically saying that they will hold the City Council and us harmless for the actual construction zone. The Fenway park subdivision will not have any interest in this facility. One MERIDIAN CITY COUNCIL OCTOBER 1, 1991 PAGE #5 other item that we were concerned about was the improvements to Franklin Road in front of this R.V. facility. T & R is saying they don't really have the money right now to improve that and we came to an agreement with them that Mr. Buckner would go ahead and improve that. Giesler: This R.V. Park is going to be put up against the homes that are already built in there? So what is the difference building up against those homes than up against your homes? Iverson: We are not taking part in that facility and the homeowners in 3,4 and 5 have decided that they would prefer to have the R.V. Park located in that area. Giesler: Mr. Buckner was not aware when he purchased the property that that is the way it was set up? Iverson: We were aware of an area of land set aside for that facility. It has always been our understanding that when a developer comes in and is going to buy property items such as a park, tennis court or something like this, those are subdivision amenities that are put in in order to help sell your lots. It was our feeling that nobody has an objection to a park if the homeowners want to support this thing but that should be left up to the homeowners in the area that it is intended for. Giesler: Is this R.V. parking going to go clear to the highway then? Iverson: Yes, there may be a small buffer zone left. The Motion was made by Tolsma and seconded by Yerrington to approve of the extension on Preliminary Plat for Fenway Park. Motion carried: All Yea: Kingsford: The next Council meeting will be on November 6th because of the election. ITEM #9: DEPARTMENT REPORTS: Eng. Smith: The first item concerns Meridian Road sewer and water project. As part of our plans to put water and sewer in Meridian Road we were going to extend to each existing residence a water and a sewer service. Some of the property owners along there owning larger lots or larger areas of ground have requested that additional service lines be installed to the vacant land for possibility of future development. These requests have varied from a single sewer and water service, a four inch sewer and a 3/4 or I" water service to an 811 sewer and a 6" water service. I have told people there that we would provide a single sewer and water service to each existing residence. I would like Council guidance on how you would like to handle these requests for additional sewer and water services. I have three alternatives or well basically two alternatives. One wouldbe for the City to go ahead and install the services at this time and the City absorb the costs and at the future time when these properties did develop to connect to these spare services that we would recover our costs at that time with an additional increase for however many years it may be. Or that we tell the residence that the sewer and water services are available to them at this time if they so desire and that they would need to pick up the cost. MERIDIAN CITY COUNCIL OC'IOBER 1, 1991 PAGE #6 Kingsford: I think the latter would be appropriate. I think we need to stay with one and let them know the prices for additional if they want them. Eng. Smith: There hasn't been any excessive requests made by any of the property owners, the majority of property owners have requested one additional. Kingsford: What is the cost for a stubbed out sewer? Eng. Smith: On Ten Mile Road it was running about $12.00 a linear foot plus there was a tee fee at the main line. Gave example of costs. (SEE TAPE) The Motion was made by Giesler and seconded by Yerrington to have any additional after the first that both water and sewer be absorbed by the property owner. Motion Carried: All Yea: Eng. Smith: The next item I have concerns the south slough sewer. A diagram was passed out to the Council. This is Meridian Road, this map only goes a half of a mile east of Meridian Rd., basically this is the south slough and this is the alignment of the sewer line that comes down the south slough, when we get to this point, which is a half a mile west of Meridian Road, the original concept was to go south along this ditch that coneects the south slough with Five Mile Creek and then west to an existing manhole that we have crossing Five Mile Creek off of Meadowview #2 subdivision. The second alternative that we discussed in the planning phases with the engineer was to continue well actually drop back to this point which is indicated by the green line on your drawing and he went north to a point and then west and kind of went diagonally over to Linder Road. The point of discussion began when Mr. Siminich who own some property here, this area along side of this lane that comes down through here and he was concerned that we were following the right drainage to get to Linder Road and his feeling was that the sewer line should possibly we should consider bringing the sewer line on up, what turns into the Creason Lateral because it's now taking water up Five mile Creek and it's becoming an irrigation ditch. On up Creason Lateral and on over to Linder Road and connecting to a sewer manhole at that point. Explained further on maps. (TAPE ON FILE) If this second alternative was selected we would take that 1950 feet and extend it along the Creason which is about to this point and we would have about a 1,000 feet of additional sewer to build to make the connection. The area above Ustick Road would still have to be sewered by a line coming down to be extended down Ustick Road or a point slightly north of Ustick Road, that area would still not be sewered by this line. The point Mr. Siminich was making was is that a line through here this property is naturally flowing toward that low area and so it's all going to drain into that area. The question before the Council this evening is that we are looking at $70 to $80 a foot and that cost is based in large part on the amount of ground water that they are anticipating the contractor will find. Kingsford: What is the pressure for development, has there been anyone in that area that is interested in developing? Forrey: The only one that has vocalized that have been Mr. & Mrs. Peterson on the south side of the south slough. Also the Ewing Company. Eng. Smith: They would be connecting to the sewer line regardless of where it went. Kingsford: But as far as an area that would be affected by the switch there is noone MERIDIAN CITY COUNCIL OC'IOBER L 1991 PAGE #7 that has been interested in developing in that area. Forrey: Not officially. Kingsford: I think Mr. Siminich makes a good point in that it could service a large area. My concern is again throwing $90,000. in the ground additional that may not be utilized for years. Giesler: At some point and time would those continue on down there? Eng. Smith: They would have to pick up at Linder and run the lines back. Kingsford: Given the requirements for that area that wouldn't have to be a 21" line, would it? Eng. Smith: In talking with the engineer, it would probably be a 10". (Further Explanation - Tape on file) - Kingsford: Did Mr. Siminich offer any kind of proposal to participate if it went that way? Smith: No sir. I asked but I didn't get a very positive response. (See tape) Giesler: I think that would be my recommendation that we contact those people and if there is some interest in helping get that across there, I think that would be my preference to take it across there if we can get some help. The Motion was made by Tolsma and seconded by Giesler to go the original route unless the owners in the affected area will participate in the sewer line. Motion Carried: All Yea: Wayne Forrey: Gave a brief explanation on downtown development. Have completed the LID assessment role, however before we can stick an accurate cost to each property the project has to be completed and all bills totaled and then we would figure that out. I can give you some general guide lines. In segments one and three it will be between $19 and $21 per foot. Segment two, from the railroad tracks north to Carlton will be $29 to $31, then from Carlton north back to $20 a foot. Secondly, congratulations to the Council on the Phase II Block Grant. The downtown improvement committee is going to be meeting on the 25th to review various parking lot and public plaza configurations for the possible land that will be acquired in that project. The next thing is we are currently looking at four engineering firms and inviting them to submit cost proposals for desgin services on the Phase II project. We will try to corne before you on Nov. 6 with a recommendation. Discussion. (TAPE ON FILE) Crookston: In the proposal to Department of Commerce, was there any reference as to whether this was going to be metered parking or fee parking of any nature? Forrey: We left it kind of flexible. ~. . I MERIDIAN CITY COUNCIL OCTOBER 1, 1991 PAGE #8 Budget matters were discussed. (TAPE ON FILE) Kingsford: Wayne where do we stand with that clogged irrigation line on 11th Street? Forrey: Some of the property owners did not receive their certified letters so the City hand delivered them. It's been the two weeks allowed so we can probably take action on this now. Kingsford: I think we can proceed with that. Crookston: rId like to bring up my budget proposal. Kingsford: What is your position with regard to the police? Crookston: We had discussed it and are aware of the time that police prosecution is taking up and is likely to continue. We are prepared to withdraw our request for the fee increase for this year. Kingsford: The Idaho Association of County's will be proposing legislation again this year at legislature time to share ~n the 90% fee collection which would certainly impact their budget for prosecution. Crookston: We are very sensative to that issue. We have increased the amount of fine money that has come into the City significantly. Kingsford: We need a motion on the Civil work. Crookston: We have had a fee set for matters that were livable to developers and passed back to them which was $85.00 an hour. That no longer is available to us. I structured the request to be increased to in essence compensate myself because that's not going to be there. I have in the past been requesting a five dollar an hour increase, I did increase it an additional $2.50 because that is not going to be available. The fees from surrounding areas are more, Garden City's attorney is asking for an increase from $75.00 up, gave brief examples of other areas. I feel that my suggested fee increase is still substantially less than the other City's around are paying. The Motion was made by Myers and seconded by Yerrington to approve the increase from $65.00 an hour to $72.50. Motion Carried: All Yea: Crookston: There is a hearing on October 24th on the area of impact for Boise. Giesler: The Fire Department has a new training device that I was impressed with. Example given to Council: MERIDIAN CITY COUNCIL OCTOBER L 1991 PAGE #9 The Motion was made by Myers and seconded by Yerrington to adjourn this meeting at 9 : 00 P. M. : Motion Carried: All Yea: (TAPE ON FILE OF THESE PROCEEDINGS) APPROVED: ~~fr~R/ ATTEST: / ,,"~./',/' -----" pc: Mayor & Council, P & Z Members, Bldg., Eng., Police, Gass, Ward, Stuart, Valley News, CDH, ACED, NMID, Settlers, Hallett, Mail (3) File (3) AMBROSE, FITZGERALD & CROOKSTON Atlorneys and Counselors P,O. Box 427 Meridian, Idaho 83642 Telephone 888-4461 SUMMARY OF ORDINANCE 557 On October 1, 1991, at its regular meeting on the 1st Tuesday of the month, the Meridian City Council passed and approved Ordinance No. 557, which Ordinance amended the Zoning Ordinance and the Subdivision and Development Ordinance which are contained in Title 11~ Chapters 2 and 9, respectively, of the Revised and Compiled Ordinances of the City of Meridian, the Title of which Ordinance No. 557 reads as follows: ORDINANCE NO. 557 AN ORDINANCE OF THE CITY OF MERIDIAN AMENDING CHAPTER 2, ZONING ORDINANCE, AND CHAPTER 9, SUBDIVISION AND DEVELOPMENT ORDINANCE, BOTH OF TITLE 11, OF THE REVISED AND COMPILED ORDINANCES OF THE CITY OF MERIDIAN, WHICH AMENDMENTS DO THE FOLLOWING: 1) REGARDING THE ZONING ORDINANCE, IT CHANGES THE JURISDICTION OF THE ZONING ORDINANCE FROM THE AREA OF IMPACT TO THE LAND THE CITY HAS JURISDICTION OVER PURSUANT TO THE AREA OF IMPACT AGREEMENTS; AMENDS SECTION 11-2-403 B. DEFINITIONS BY ADDING, DELETING, AMENDING AND PUNCTUATING SOME OF THE DEFINITIONS; REPEALS SECTION 11-2-404 C. 1. AND RE-ENACTS SAID SECTION TO DELETE THE REQUIREMENT THAT A PLANNING AND ZONING COMMISSION MEMBER SHALL BE ADDED FOR EACH ADDITIONAL 5,000 INCREASE IN POPULATION AND TO SET THE TERM OF OFFICE OF COMMISSIONERS AT SIX YEARS; AMENDS SECTION 11-2-404 C. 2. BY THE ADDITION THERETO OF THE POWER BY THE COMMISSION TO APPOINT HEARING EXAMINERS; AMENDS SECTION 11-2-404 D. 1. BY THE ADDITION THERETO OF TWO SUBSECTIONS GIVING THE COUNCIL POWER TO APPOINT HEARING EXAMINERS AND TO PERFORM DUTIES AS REQUIRED BY THE ZONING ORDINANCE; AMENDS SECTION 11-2-405 C. 1. AND 2 BY DELETING THE WORDS ~CONDITIONAL USE~ THEREFROM AND INSERTING ~VARIANCE"; AMENDS SECTION 11-2-406 C. BY DELETING THE WORDS IIOR AMENDMENTII AND INSERTING THE PHRASE IIAPRIl 2, 198411; AMENDS SECTION 11-2-407 B. 2. d. TO DELETE AN 110" AND INSERT THE ~JORD 1I0R"; AMENDS SECTION 11-2-407 C. TO DELETE THE WORD "AGRICULTURAL"; REPEALS SECTION 11-2-408 B. 1., LOW DENSITY RESIDENTIAL DISTRICT, AND RE-ENACTS SAID SECTION, AND AMENDS SECTION 11-2-409~ ZONING SCHEDULE OF USE CONTROL, A., RESIDENTIAL, SO BOTH STATE THAT ONLY SINGLE-FAMILY DWELLINGS, PUBLIC SCHOOLS, AND PLANNED RESIDENTIAL DEVELOPMENTS SHALL BE ALLOWED IN THE R-4 DISTRICT; AMENDS SECTION 11-2-409, ZONING SCHEDULE OF USE CONTROL, B., COMMERCIAL, TO STATE THAT CHURCHES ARE A PERMITTED USE IN OLD TOWN, CHILD CARE CENTERS ARE A CONDITIONAL USE IN THE C-G ZONE, AND THAT BARS, ALCOHOL ESTABLISHMENTS ARE A CONDITIONAL USE IN OLD TOWN; AMENDS SECTION 11-2-409, ZONING SCHEDULE OF USE CONTROL, C., INDUSTRIAL, TO REMOVE FROM uFABRICATED METAL PRODUCTS", MAJOR WELDING; REPEALS SECTION 11-2-410, ZONING SCHEDULE OF BULK AND COVERAGE CONTROLS, A., AND RE-ENACTS SAID SECTION TO CHANGE THE REQUIREMENTS AND TO DELETE THE AGRICULTURAL DISTRICT AND TO CHANGE THE "I" DISTRICT TO III-L"; AMENDS 11-2-410 B. 4. TO ADD IICHIMNEYI AS AN ARCHITECTURAL PROJECTION; AMENDS SECTION 11-2-410 D. 1. b. (4) TO SUMMARY OF ORDINANCE 557 PAGE - 1 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O, Box 427 Merld lan, Idaho 63642 Telephono 888-4461 DELETE THE REQUIREMENT RELATING TO COVENANTS AND RESTRICTIONS; AMENDS SECTION 11-2-410 D. 1. b. (5) TO DELETE THE REFERENCE TO COSTS OF NOTICE, LEGAL AND ENGINEERING FEES; AMENDS SECTION 11-2- 410 D. 1. b. (7) TO DELETE THE 1INOTII AND INSERT IINOII; AMENDS SECTION 11-2-411 D. TO ADD A NEW SUBSECTION 6. TO STATE THAT MULTI-STORIED SINGLE-FAMILY DWELLINGS MUST HAVE A MINIMUM OF 800 SQUARE FEET ON THE GROUND FLOOR; REPEALS SECTION 11-2-414 C. 1. AND 11.; AMENDS SECTION 11-2-414 D. BY THE ADDITION OF A SUBSECTION 3. DEALING WITH DRAINAGE; AMENDS SECTION 11-2-414 E. f. (1) TO CHANGE 1I0NE SPACE FOR EACH BUS OR OTHER VEHICLEII TO "ONE SPACE FOR EVERY TEN CHILDREN"; AMENDS SECTION 11-2-416 B. TO DELETE THE REQUIREMENT THAT A ZONING AND SUBDIVISION REQUEST BE PROCESSED AS SUBDIVISION APPLICATION; REPEALS SECTION 11-2-416 C. 17.; REPEALS SECTION 11-2-416 E. PROCEDURE, 1. a. AND RE-ENACTS SAID SECTION TO CHANGE THE REQUIREMENTS THAT AN APPLICANT MUST PERFORM IN OBTAINING A ZONING AMENDMENT; REPEALS SECTION 11-2-416 E. PROCEDURE, 1. c.; REPEALS SECTION 11-2-416 E. PROCEDURE, 2. AND RE-ENACTS SAID SECTION TO STATE THAT THE COMMISSION SHAll GIVE THE NOTICE OF HEARING RATHER THAN THE APPLICANT; AMENDS SECTION 11-2-416 F. 1. TO DELETE THE MAILING NOTICE REQUIREMENTS BY THE APPLICANT AND HAVING THE CITY PERFORM THAT TASK; AMENDS SECTION 11-2-417 TO DELETE THE REQUIREMENT THAT THE OWNER GRANT A LIEN TO SECURE PAYMENT OF COSTS; AMENDS SECTION 11-2-418 B. TO REMOVE THE ABILITY OF A LESSEE TO APPLY FOR A CONDITIONAL USE PERMIT; REPEALS SECTIONS 11-2-418 B. 12, 14, 15, AND 18 TO REMOVE THE REQUIREMENTS OF 75% CONSENT, THE GRANTING OF A LIEN TO SECURE PAYMENT OF COSTS, A STATEMENT THAT THE USE DOES VIOLATE COVENANTS OR RESTRICTIONS, AND REMOVING THE STATEMENT THAT NO CONDITIONAL USE WILL BE GRANTEO IF IT VIOLATES THE COVENANTS OR RESTRICTIONS; REPEALS SECTION 11- 2-419 B. 22. REMOVING THE REQUIREMENT FROM THE VARIANCE PROVISIONS THAT THE OWNER GRANT A LIEN TO SECURE PAYMENT OF COSTS; REPEALS SECTION 11-2-422 A. AND RE-ENACTS SAID SECTION REQUIRING APPLICANTS TO PAY THE FEES ESTABLISHED BY THE CITY COUNCIL PURSUANT TO RESOLUTION; AND REPEALS SECTION 11-2-422 E. AND RE- ENACTS SAID SECTION TO REMOVE THE REQUIREMENT THAT THE APPLICANT PAY THE LEGAL, ENGINEERING AND PUBLICATION COSTS AND GRANT A LIEN TO SECURE THE PAYMENT THEREOF, BUT LEAVING THE LANGUAGE STATING THAT IF THE FEES REQUIRED ARE NOT PAID THAT THE CITY MAY REVOKE ANY ACTION APPROVING THE APPLICATION. 2) REGARDING THE SUBDIVISION AND DEVELOPMENT ORDINANCE, IT REPEALS SECTION 11-9- 604 C. 4. c. AND RENUMBERS 11-9-604 C. 4. d. TO 11-9-604 C. 4. c.; AMENDS SECTION 11-9-604 C. 5. a. b. AND c. TO DELETE THE REQUIREMENT OF TWENTY-SEVEN COPIES AND INSERTS THIRTY COPIES; AMENDS SECTION 11-9-604 C. 5. d. TO DELETE THE 11]'1 COPIES AND INSERTS "4" COPIES OF CONCEPTUAL ENGINEERING PLANS AND CHANGES THE "ADMINISTRATOR" TO THE "CITY ENGINEER" AS THE OFFICIAL TO DETERMINE CONFORMANCE TO REGULATIONS, ORDINANCES AND STANDARDS OF THE CITY; REPEALS SECTION 11-9-604 C. 6. m. AND RE-ENACTS SAID SECTION TO ADD STREET LIGHTS; AMENDS SECTION 11-9-604 H. 1. a. TO DELETE "2711 AND INSERT 113011 COPIES OF THE PLAT; AMENDS SECTION 11- 9-605 I. TO DELETE 1ICOMMISSION" AND INSERTS lICOUNCILII AS THE ENTITY THAT REVIEWS COVENANTS; AMENDS SECTION 11-9-605 J., FENCES, SUMMARY OF ORDINANCE 557 PAGE - 2 AMBROSE, FITZGERALD & CROOKSTON Attorneys end Counselors P.O, Box 427 Meridian, Idaho 63642 Telephono 888-4461 7. TO ADD A NEW SUBSECTION k. WHICH SHALL REQUIRE THAT FENCES TO BE CONSTRUCTED ON BERMS BE SHOWN ON THE PRELIMINARY PLAT; AMENDS SECTION 11-9-605 J., FENCES, TO ADD A NEW SUBSECTION 8. WHICH SHALL REQUIRE THAT DEVELOPERS INTENDING TO CONSTRUCT BOUNDARY FENCES SHOW THAT ON THE PRELIMINARY PLAT; REPEALS SECTION 11-9- 605 J. 10. a. 12.; AMENDS SECTION 11-9-605 BY THE ADDITION THERETO OF A NEW SUBSECTION M. TO REQUIRE THAT DITCHES AND WATERWAYS IN NEW SUBDIVISIONS BE PIPED; AMENDS SECTION 11-9-606 A. TO RENUMBER THE SECTION AND ADD A NEW SUBSECTION 2. STATING THAT IT IS THE LIABILITY OF THE SUBDIVIDER AND OWNER TO SEE THAT IMPROVEMENTS SHOWN ON THE PLAT ARE CONSTRUCTED; SECTION 11-9-606 B. 13. IS AMENDED TO ADD A NEW SUBSECTION c. REQUIRING THAT THE LOCATION OF STREET LIGHTS BE SHOWN ON THE PLAT; SECTION 11-9-606 B. 14. IS AMENDED BY THE ADDITION OF AN ADDITIONAL PARAGRAPH RELATING TO THE WAIVER OF THE PRESSURIZED IRRIGATION REQUIREMENTS; REPEALS SECTION 11-9-615 A. I. AND RE-ENACTS SAID SECTION TO REQUIRE THE SUBDIVIDER TO PAY THE FEES ESTABL ISHED BY THE CITY COUNCIL BY RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. The provisions of Ordinance No. 557 are accurately stated in the above title but the principal amendments of the Ordinance are as follows: ZONING ORDINANCE 1. Amends the Jurisdiction of the Zoning Ordinance to cover land the City has jurisdiction over pursuant to the Area of Impact Agreements between the City and Ada County. 2. Deletes portions of, adds to, or amends some of the existing definitions. Some of the changes are minor involving punctuation or adding to the definition the effective date of the original adoption of the Zoning Ordinance, April 2, 1984, The following reflect the changes of significance: Applicant is changed to mean any person submitting a request for rezone, conditional use, accessory use, annexation, or request to be allowed to make any appl ication authorized under this ordinance. Automobile Wrecking Yard is changed to reflect a 30 day time period rather than a 60 day time period as the maximum time for the holding of an unlicensed vehicle before the place of holding is deemed a wrecking yard. Clinic (Medical, Dental, Optical) is changed to mean a building (other than a hospital) used by one (1) or more health care practitioners for the purpose of care, diagnosis or treatment of sick, ailing, infirm, or injured patients, or those who are in need of medical and surgical attention, but which building does not provide board, room or regular hospital care and services." SUMMARY OF ORDINANCE 557 PAGE - 3 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O, Box 427 Meridian, Ideho 83642 Telephone 688-4461 Commercial Use or Business is changed to mean the purchase, sale or other transaction involving the handling or disposition of any article, substance or commodity, or the dispensing of services for livelihood or profit; ownership or management of office buildings, offices for recreational, entertainment or amusement enterprises or the maintenance and use of offices by professions and trades rendering services is included in this definition." Convalescent or Nursing Home, Rest Home is changed to mean any home, place or institution which operates or maintains facilities providing convalescent, or chronic care, or both, for a period in excess of twenty-four (24) consecutive hours for two (2) or more patients not related by blood or marriage to the operator, and said patients, who by reason of illness or infirmity, are unable to properly care for themselves. District or Zone is changed to delete the Agricultural Zone as a zone within the city. Entertainment Facilities (Commercial) is changed to mean any structure housing any "for profit" activity, which is generally related to the entertainment field, such as motion picture theaters, taverns, night clubs, cocktail lounges, bowling allies, and similar entertainment activities." Fence is added as a definition which means an enclosure; especially an enclosing barrier, as one to prevent straying from within or intrusion into. Fence, Open is added as a definition which means a fence that does not restrict or impede vision or sight through the fence by more than twenty percent. lot, Flag lot, is added as a definition which means a lot in the shape of a flag on a pole or similar design. A flag lot shall have a minimum frontage of thirty (30) feet and a house place on a flag lot shall have the house facing the street frontage. Highway defini tion is changed to mean the entire width between the boundary lines of every way publicly maintained when any part is open to the use of the public for vehicular traffic, with jurisdiction extending to the adjacent property line, including sidewalks, shoulders, berms, and rights-of- way not intended for motorized traffic. The term 'streetl is interchangeable with highway. Imp act Are a i s c h a n 9 e d t 0 del e t e the 1 a n g u age vJ h i chi n d i cat e d that the Zoning Ordinance applied to all land in the Impact Are a rat her t h a n jus t the 1 and 0 v e r ItJ h i c h the C i t Y has jurisdiction. SUMMARY OF ORDINANCE 557 PAGE - 4 AMBROSE, FITZGERALD & CROOKSTON Anornoys and Counsolors P.O. Box 427 MerIdian, Idaho 83942 Tolephone 888,4461 Ownership is changed to mean the individual, firm, association, syndicate, partnership or corporation who is the owner of property. Professional Offices is changed to mean structures where those engaged in a profession conduct their business and activityll. Walkway is changed to delete the phrase "five (5) feet or more in width.1I 3. The terms of the Planning and Zoning Commission are fixed at six (6) years and the requirement that a new Commission member be added for each additional 5,000 increase in population is deleted. 4. The City Council and the Planning and Zoning Commission are given the authority to appoint hearing officers. 5. The Use and Bulk Regulations are amended to reflect that the variance procedure rather than the conditional use procedure, will be used for an applicant to obtain use and bulk regulation changes. 6. There are several changes to more precisely reflect that Apri 1 2, 1984, is the date from which grandfather rights are determined rather than the date of enactment of the ordinance or its amendment. 7. The Agricultural Zone is deleted from the Zoning Ordinance as an authorized zone. 8. The R-4, Single Family Residential Zone restrictions are amended to reflect that no uses other than single-family dwellings, public schools, or planned residential developments will be allowed in that zone. The Schedule of Use Control is amended to reflect this change. 9. The Schedule of Use Control is amended to reflect that Churches are a permitted use in Old Town, that Child Care Centers are a conditional use in the C-G Zone, that Bars, Alcohol ic Establishments are a conditional use in Old Town, and that Major Welding is removed from the Fabricated Metal Products. 10. The Zoning Schedule of Bulk and Coverage Controls, is amended to remove the A District and its associated requirements, the I under Districts is changed to I-L, and an asterisk (*) is added under R-15, Minimum Yard Setback Requirements from road right-of-way interior side so that the street frontage is determined on the cul-de-sac lots at the setback 1 ine, and a footnote (7) is added stating that liOn corner lots in Residential Districts, the rear set back may be determined on a side of the structure, at the option of the builder", and a (7) shall be added under Minimum Yard Set Back Requirements under Rear Set Back in the R-4, R-8, R-15 and R-40 Districts, and the phrase IIFrom Road Right-of-Wayll is be deleted from "Minimum Yard Setback Requirement from Road Right-of-Wayll. 11. Chimneys are added to the list of architectural SUMMARY OF ORDINANCE 557 PAGE - 5 projections. 12. Several sections are amended or repealed to delete the requirement that applicants pay the legal, engineering and publication costs of processing the application and grant a lien to secure those costs and regarding conditional use permits the requirements that the applicant state the use does not violate covenants or deed restrictions and obtain the consent to 75% of the property owners within ~OO feet, are deleted. 13. The amendment now requires that all multi-storied single family dwellings have a minimum of 800 square feet of living space on the ground floor. 14. Two sections of the Zoning Ordinance relating to accessory buildings and home occupations were repealed since they were duplicative of existing sections. 15. Drainage plans \'Jere added as a requirement for off- street parking and the parking space requirement for nursery schools, day care centers and kindergartens was changed to one space for every ten children plus one space per staff member. 16. The requirement that a dual request for a zoning amendment and a development, be processed under the development approval procedure process was deleted. 17. The requirements to be fulfilled by an applicant for a zoning change, which also apply to other applications, were changed so that the applicant still provides the names of property owners within 300 feet, certifies that the list is correct, and posts the property with the notice of hearing and certifies that he so posted the property, but the City performs most of the other notice requirements, conducts the hearings on the appl ication, must act on the application \'/ithin a certain time period, and keeps a record of all proceedings. 18. Removes the ability of a lessee to apply for a conditional use permit. 19. The fee schedule is repealed and authorizes the City Council to provide for a fee schedule which all applicants must pay before the application is accepted and if for some reason the fee is not paid any approval may be revoked. 20. The fence illustration is amended to change "chain link fenceu to "open fenceu and to show that a 41 x 41 ground area must be left open around utility accesses. Attorneys and Counselors SUBDIVISION AND DEVELOPMENT ORDINANCE 21. Several sections are amended or repealed to delete the requirement that applicants pay the legal, engineering and publication costs of processing the application and grant a lien to secure those costs. 22. The number of required copies to be submitted is changed from 27 to 30 for both preliminary and final plats but the number of copies of conceptual engineering plans is reduced form 7 to 4. 23. The official to check preliminary plat drawings is changed from the Zoning Administrator to the City Engineer. 24. The placement of street lights are added to the requirements of the preliminary plat. AMBROSE, FITZGERALD 3. CROOKSTON P.O. Box 427 Meridian, Idaho 63642 Telephono 686.4461 SUMMARY OF ORDINANCE 557 PAGE - 6 AMBROSE, FITZGERALD & CROOKSTO N Attorneys and Counselors P,O, Box 427 Meridian, Idaho 83642 Telephono 868.4461 25. The governing body to approve subdivision covenants and restrictions is changed from the Planning and Zoning Commission to the City Council. 26. Additional fence regulations are added which require that a fence to be constructed on top of a berm or constructed as a boundary fence shall be shown on the preliminary plat showing the specifications of the fence. 27. A new section is added to the subdivision requirements that all waterways, irrigation ditches, laterals or canals, exclusive of natural waterways, shall be covered and enclosed with tiling. 28. The owner of the land, and the subdivider thereof, are made responsible and liable for construction of all of the improvements shown on the plat or represented to the City as being included in the development. 29. The fee schedule is repealed and authorizes the City Council to provide for a fee schedule which all applicants must pay before the appl ication is accepted. 30. The fence illustration is amended to change Ilchain 1 ink fencell to 1I0pen fencell and to show that a 41 x 41 ground area must be left open around utility accesses. The Ordinance is effective upon passage, approval and publication of this Summary according to law. The full text of Ordinance 557 is available at the Meridian City Hall, 33 East Idaho, Meridian, Idaho, and will be promptly provided by the City Clerk to any citizen upon personal request. ATTORNEY'S CERTIFICATE The undersigned, WAYNE G. CROOKSTON, JR., in his capacity as City Attorney of the City of Meridian, pursuant to Section 50-901 A. (3), Idaho Code, as amended, hereby certifies that he has reviewed the above-Summary of Ordinance No. 557, of the City of Meridian, Idaho, and finds the same to be true and complete and provides adequate notice to the public of the provisions of the Ordinance. r-Ih. DATED this ~ day of 1991. ~ SUMMARY OF ORDINANCE 557 PAGE - 7 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P.O. Box 427 Morld lan, Idaho 63642 Telephone BSS04461 RESOLUTION NO.~J1~ A RESOLUTION OF THE CITY OF MERIDIAN PROVIDING FOR A FEE SCHEDULE FOR THE ZONING ORDINANCE AND THE SUBDIVISION AND DEVELOPMENT ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, The Zoning Ordinance and the Subdivision and Development Ordinance ~'Iere amended on the 1st day of October, 1991, and the amendments provided that the existing fees schedules be repealed and that new fees be set and adopted by the City Council pursuant to the Resolution of the City Council. WHEREAS, it is in the best interest of the City of Meridian to establish reasonable fees for the processing of applications for zoning and planning matters and for subdivision and development matters which reflect, as closely as reasonably possible, the costs that the City incurs as a result of processing those applications. WHEREAS, the fees set forth in the below adopted fee schedules are based upon past applications and the costs that the City incurred to process those various types of applications. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO: 1. That the fees set forth in the schedules adopted below are reasonable and reflect, as closely as reasonable possible, the costs of the City to process the various applications. 2. That the Zoning and Planning Applications Fee Schedule, as authorized by Section 11-2-422 A. of the Ordinances of the City FEE RESOLUTION Page - 1 AMBROSE, FITZGERALD & CROOKSTON Allorneys and Counselors P.O, Box 427 MeridIan, Idaho 83642 Telephone 888-4461 of Meridian, is, and shall be, as set forth in Exhibit "AII, which is attached hereto and incorporated herein by this reference as if set forth in full herein. 3. That the Subdivision and Development Applications Fee Schedule, as authorized by Section 11-9-615 A. 1. of the Ordinances of the City of Meridian, is, and shall be, as set forth in Exhibit liB", which is attached hereto and incorporated herein by this reference as if set forth in full herein. PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, this 15th day of October, 1991. APPROVED: ATTEST: .~df..- -CrrrCCrRK-~-- c.....,...~~___..... FEE RESOLUTION Page - 2 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors p,O, Box 427 MeridIan. Idaho 83642 Telophone 888-4461 EXHIBIT "A" MERIDIAN CITY PLANNING AND ZONING FEES Annexation, Zoning, Rezone Less than 1 acre Over 1 acre $ 400.00 $ 400.00 + $15 per acre or portion thereof Accessory Use Permit $ Conditional Use Permit $ Variance $ Planned Unit Development Less th an 1 acre $ Over 1 acre $ 80.00 275.00 250.00 400.00 400.00 + $15 per acre or portion thereof Fence Variance $ 50.00 Appeals (from decisions of Zoning Administrator, Planning & Zoning Commission or City Council $ 100.00 $1,100.00 Comprehensive Plan Amendment Vacation of Easements or Roadways $ 225.00 All other Appl ications $ 200.00 *** IN ADDITION TO THE ABOVE FEES THE APPLICANT SHALL PAY FOR THE COST OF MAILING NOTICES BY CERTIFIED MAIL, AS REQUIRED BY THE ZONING ORDINANCE, AT THE RATE OF $ 1.29 PER PERSON TO WHOM THE NOTICE IS REQUIRED TO BE MAILED. AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P.O, Box 427 Meridian, Idaho 63642 Telephone 888-4461 EXHIBIT uBII MERIDIAN CITY SUBDIVISION AND DEVELOPMENT FEES Preliminary Plat 4 lots $ 300.00 Over 4 lots $ 300.00 + 10 per lot Final Subdivision Plat $ 10.00 per lot Time Extension on Prel iminary or Final Plats $ 100.00 Appeals (from all Administration, Commission or Council decisions) $ 100.00 All other Revierls $ 100.00 *** IN ADDITION TO THE ABOVE FEES THE APPLICANT SHALL PAY FOR THE COST OF MAILING NOTICES BY CERTIFIED MAIL, AS REQUIRED BY THE SUBDIVISION AND DEVELOPMENT, AT THE RATE OF $ 1.29 PER PERSON TO WHOM THE NOTICE IS REQUIRED TO BE MAILED. AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselor5 P,O. Box 427 Meridian, Idaho 83642 Telephone 888-4461 RESOLUTION NO. /12 A RESOLUTION OF THE CITY OF MERIDIAN ADOPTING A GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN FOR THE CITY EMPLOYEES OF THE CITY OF MERIDIAN; NAMING AN INITIAL CONSULTANT AND ADVISOR FOR THE PLAN; SETTING FORTH THAT THE PLAN SHALL BE MANAGES BY A GROUP OF TRUSTEES; NAMING AND APPOINTING THE INITIAL TRUSTEES GROUP AND SETTING FORTH THE TERMS OF OFFICE FOR THE INITIAL TRUSTEES AND PROVIDING FOR SUCCESSORS; AUTHORIZING THE TRUSTEES TO SIGN ALL APPLICATIONS AND OTHER PLAN DOCUMENTS AND PAPERS; AND PROVIDING AN EFFECTIVE DATE. ItJHEREAS, Internal Revenue Code, Section 457 authorizes and allows the City of Meridian to set up and establish a nonqualified deferred compensation plan; WHEREAS, some of the city employees of the City of Meridian have requested the City to adopt and implement a plan for deferred compensation; WHEREAS, the City has considered the concept of deferred compensation and has looked into a couple of programs for a deferred compensation plan; WHEREAS, it is in the best interests of the city employees to have a deferred compensation plan available to them; WHEREAS, Shearson Lehman Brothers has presented a proposal to the City of Meridian for a nonqualified deferred compensation plan; and WHEREAS, there are applications and documents to be executed to implement the plan and there is a need to appoint a Trustees group to assist with the deferred compensation plan and RESOLUTION ADOPTING DEFERRED COMPENSATION PLAN Page - 1 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O, Box 427 Morld lan, Idaho 83642 Telephone 888-4461 in ves tmen t. NOH, THEREFORE~ BE IT RESOLVED BY THE r~AYOR AND THE CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO: SECTION 1. That the City of Meridian hereby adopts that particular deferred compensation plan, attached hereto as Exhibit "A" and by this reference incorporated herein as if set forth in full herein, known as the GENERAL EMPLOYEES NONQUAlIFIED DEFERRED COMPENSATION PLAN OF THE CITY OF MERIDIAN~ as the deferred compensation plan for the city employees of the City of Meridian; said plan shall herein after be referred to as the IIPLANII. SECTION 2. That Shearson Lehman Brothers~ investment firm is hereby named as the initial advisor and consultant of the Plan; that the Trustees Group may change advisors and consultants for the Plan as the Trustees Group deems appropriate. SECTION 3. That the Plan shall be managed by a Trustees Group which shall be made up of city elected officials and/or employees. SECTION 4. That the initial Trustees Group shall consist of Grant P. Kingsford, Jack Niemann, Janice Gass, and Earl Ward; that Grant P. Kingsford shall serve a term of four (4) years; that Jack Niemann shall serve a term of three (3) years; that Janice Gass shall serve a term of two (2) years; that Earl Hard shall serve a term of one (1) year; that upon the termination of the term of each Trustee above name the Mayor shall appoint a successor to that Trustees term and which successor shall be RESOLUTION ADOPTING DEFERRED COMPENSATION PLAN Page - 2 AMBROSE, FITZG ERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 Meridian, Idaho 83642 Telephono 888-4461 approved by the City Council; that the Trustees shall serve at the pleasure of the Mayor and City Council and may be removed without cause by the City Council and upon removal the Mayor shall appoint a successor who shall be confirmed by the City Council and the successor shall serve the unexpired term of his predecessor SECTION 5. That the Trustees Group is hereby authorized to sign all appl icati ons and other documents pertaining to the Plan, including, but not limited to an application for the American Funds Group; that a majority of the Trustees must sign all documents, applications and other papers. PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, this 15th day of October, 1991. APPROVED: ~~-K~~R---- ATTEST: , I ..--/ l " / , C fT I( CL Efn("---- RESOLUTION ADOPTING DEFERRED COMPENSATION PLAN Page - 3 AMBROSE, FITZGERALD & CROOKSTO N Attorneys and Counselors P,O, Bo. 427 Merldlan,ldeho 63642 Telephono 688.4461 EXHIBIT "A" GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN WHEREAS, The City of Meridian desires to provide a Section 457 plan for general employees deferred compensation. WHEREAS, The general employees deferred compensation Plan Trustee Group recommends the following deferred compensation plan in order to comply with the Internal Revenue Code to meet certain trustee objectives. Now, therefore, by executing this agreement, the City of Meridian ("Employerll) agrees to do the following: 1. COMPENSATION DEFERRAL A. Monthly Deferral. Employer shall credit on its records to a book reserve (herein called Deferred Compensation Account) for the Participants monthly contribution to the plan. This contribution shall be included as part of the employees assets. The minimum amount of compensation which may be deferred in anyone pay period is TWENTY-FIVE and NO/I00 DOLLARS ($25.00) . B. Timing and Changes. Compensation will be deferred for any calendar month only if an agreement providing for such deferral has been entered into before the 20th of such month and provided the Employee has met all probationary requirements. with respect to unearned income, the amount to be deferred may increase or decrease, by completion of a revised deferred compensation agreement form. However, such deferral of income shall be subject to maximum and minimum limitations herein and shall become effective for the calendar months beginning after the date of execution of the revised agreement. A Participant may terminate any and all deferred compensation agreements previously executed by an agreement in writing signed by Participant and Employer. However such termination only operates prospectively and does not affect amounts previously credited to the Deferred Compensation Account which remain subj ect to the provisions of the terminated agreement. C. Maximum DeferraL Except as may be permitted in Paragraph I.D. below, based upon the Employee's income the maximum amount of compensation which may be deferred under the plan for a taxable year shall not exceed the lesser of 1. SEVEN THOUSAND FIVE HUNDRED and NO/IOO DOLLARS GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - I AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors p,O, Box 427 Meridian, Idaho 63642 Telephone 686,4461 I! ($7,500.00); or 2. THIRTY-THREE PERCENT (33%) of the Participant's includible compensation. The term "includible compensation" means compensation for service performed for the Employer which (taking into account the provisions of Section 457 and 403 (b) of the Internal Revenue Code) is currently includible in gross income. Includible compensation for a taxable year only includes Employer compensation attributable to services performed for the Employer and includible in Participant's base annual compensation for the taxable year. D. Limited Catch-Up Clause. For any of the Participant's last three taxable years ending before the Participant attains normal retirement age, the Plan ceiling set forth in Paragraph 1. C., herein above shall be the lesser of 1. FIFTEEN THOUSAND and NO/I00 DOLLARS ($15,000,00) reduced by any annual amount excludible from the Participant's gross income for the taxable year under Section 403 (b) on account of contributions made by the Employer; or 2. The sum of (a) The plan ceiling established for purpose of Paragraph 1. C. for the taxable year (determined without regard to this paragraph), plus (b) So much of the plan ceiling established for purposes 0 f Paragraph 1. C. for taxable years bef '17e the taxable year as has not therefore been Ui under Paragraph 1.C. or this Paragraph 1.D. The limited catch-up provision in Paragraph 1. D. } restricted to: 1) use only once, 2) whether or not i has been utilized in less than all three taxable year. ending before the Participant attains normal retirement age, and 3) whether or not the Participant or former Participant rejoins the plan or participates in another eligible plan after retirement. E. Normal Retirement Age. Normal retirement age is the earliest age at which the Participant can retire under the existing retirement plan without a reduction in benefits. If a Participant continues to work beyond this age, normal retirement age shall be the age designated by the Participant GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 2 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P.O. Box 427 Merldlan,ldaho 63642 Telaphone 688.4461 but not later than the mandatory age stated in the existing retirement plan or the date the Participant separates from Employer's service. If no age is stated, sixty-fir (65) is the assumed normal retirement age. Normal retirement age for this plan is sixty-five (65) for a combination of age plus service equal to ninety (90). Benefits will commence no later than the close of the tax year in which the Participant at~ains age seventy and one- half (70 1/2). F. INVESTMENT. The employer through the trustees is authorized to invest in such bonds, debentures, mortgages, preferred or common stock, funds and cash equivalents as deemed advisable trustees. Plans notes, mutual by the It is understood that said investment will be managed by a professional money manager. All dividends, earnings and other distributions of the Deferred Compensation Account will be reinvested on behalf of the Participant. 2. AVAILABILITY OF FUNDS. In no event shall the amount payable under the Deferred Compensation Agreement be made available to the Participant or other beneficiaries earlier than when the Participant is separated from service with the employer or is faced with an unforeseeable emergency. A. SEPARATION OF SERVICE. Separation from service occurs when Participant is separated from the service within the meaning of Section 402(e) (4) (A) (iii) of the Internal Revenue Code, relating to lump sum distributions; and on account of the Participant I s death or retirement. In the event the Participant is separated from service with the Employer, the Employer shall direct the Depository to pay Participant an amount as specified in the Settlement Option. Any alteration of the payment commencement date on the Settlement Option must be executed prior to separation or within 60 days of separation of service. If payment commencement date is not elected prior to separation of service or within 60 days after separation of service, payments shall commence 60 days after separation of service. If the Settlement Option is not signed, selecting method GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 3 AMBROSE, FITZGERALD & CROOKSTON Attorneys end Counselors P,O, Box 427 Meridian, Idaho 63642 Telephone 688-4461 I! of payments, prior to the payment commencement date, Employer shall make payment to Participant in accordance with Paragraph 3.B.l.(b)l.a.2. 15 year period. This method is an annual amount equal to one-fifteenth of the value of the Deferred Compensation Account in fifteen annual payments, adjusted annually for any increases or decreases in the value of said account. Such annual amount is to be paid annually, semi-annually, quarterly or monthly, as long as annual minimum is met. B. UNFORESEEABLE EMERGENCY. Unforeseeable emergency is defined as severe financial hardship to participate resulting from sudden and unexpected illness or accident of the Participant or of a dependent of the Participant, loss of Participant's property due to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances constituting an unforeseeable emergency depend upon the facts of each case, but, payment may not be made to the extent that such hardship is or may be relieved: l. Through reimbursement or compensation by insurance or otherwise. 2. By liquidation of Participant's assets to the extent that liquidation would not itself cause severe financial hardship. 3. By cessation of deferrals under the Plan. 3. DISTRIBUTION OF DEFERRED COMPENSATION ACCOUNT. A. COMMENCEMENT DATE. Payments of amounts deferred commence no later than 60 days after close of the plan in which separation occurs or 60 days after close of year in which the Participant attains (or would attained) normal retirement age, whichever comes last. ... plan have B. BENEFITS OF RETIREMENT. The pay-out option designated by a Participant may be subsequently modified by the Participant before distribution begins. Should the Participant die at any time after Retirement, whether prior to or after he has begun to receive the Retirement payment(s) provided by Article 3.B.l., his designated Beneficiary or Beneficiaries shall be enti tIed to receive the balance remaining of such payment (s). If no Beneficiary is designated as provided in Paragraph 2. of this Plan, or if the designated GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 4 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Cou nselors p,O, Box 427 Merld lan, Idaho 63642 Telephone 886-4461 Beneficiary does not survive the period during which such payment(s) are to be made, then the executors or administrators of the Participant shall receive the lump-sum amount equal to the remaining account balance. 1. Minimum Distribution. A plan meets the minimum distribution requirements of this paragraph if such plan meets the requirements of sub paragraphs (a) and (b) and (c) : (a) Application of Section 401 (a) (9) - A plan meets the requirements of this subparagraph if the plan meets the requirements of Section 401(a) (9). (b) Addi tional distribution Requirements - A plan meets the requirements of this subparagraph if - a. 1. lump sum distribution is paid. 2. monthly, quarterly, semiannual or annually over a 1) 5 year; 2) 10 year; 3) 15 year period, as long as at least 2/3 of the total amount payable with respect to the participant will be paid during the life expectancy of such participant (determined as of the commencement of the distribution), and b. any amount not distributed to the participant during his life will be distributed after the death of the participant at least as rapidly as under the method of distributions being used under subclause a. as of the date of his death. (c) Nonincreasing Benefits. A plan meets the requirements of the subparagraph if any distribution payable for a period of more than 1 year can only be made in substantially nonincreasing amounts (paid not less frequently than annually) . c. BENEFITS ON TERMINATION OF SERVICES OR DEATH PRIOR TO RETIREMENT. In the event the Participant terminates his services for reasons other than Retirement, the Participant may choose to receive the balance available under one of the following forms: 1. The Employer shall pay the Participant an amount equal to that which 1;vould be available in the Deferred Compensation Account Balance in a lump sum GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 5 AMBROSE, FITZGERALO & CROOKSTON AlIofneY$ and Counselors P,O, Box 427 Meridian, Idaho 83642 Telephone 888-4461 distribution. 2. The Employer shall pay the Participant an amount equal to that which would be available in the Deferred Compensation Account Balance, such payments to begin on the first day of the month next following the date of termination, and continuing for a period of sixty (60) consecutive months. 3. The Employer shall transfer to any Code Section 457 deferred compensation plan the amounts previously deferred on behalf of the Participant. 4. The amount available in the Participant's Deferred Compensation Account Balance at the time of termination shall abe deferred until such date not later than the Participant's 65th birth date when the Participant shall retire from full-time employment, at which time the balance shall be disbursed to the Participant in equal payments which shall continue for a period of sixty (60) consecutive months. The employer, in its sole discretion, may defer or accelerate the beginning of payments to a date not to extend beyond the Participant's 65th birthday, and/or make payment in a lump- sum or in installments over some period other than sixty (60) months except that once any installment payments have begun the trustees may not thereafter alter the method of settlement. D. EVENT OF DEATH OF PARTICIPANT. In the event of the death of Participant, Employer shall direct Depository to pay Participant's revocably designated beneficiary the value of Deferred Compensation Account as specified on the Designation of Beneficiary Form, over: 1. Life of beneficiary (or any shorter period) if the beneficiary is the Participant's surviving spouse, or 2. A period not beneficiary is spouse. in excess of 15 years, if the not the participant's surviving In the event of death of Participant, and in the event Participant has not filed Designation of Beneficiary, Employer shall direct the Depository to liquida te and pay the en tire De ferred GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 6 AMaROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 Meridian, Idaho 63642 Telephone 886.4461 Compensation Account to Participant's estate. E. HARDSHIP WITHDRAWAL. In the event of the approval of a hardship withdra\'1al, Employer shall direct Depositary to pay the participant the value of the Deferred Compensation Account as of the last valuation date (September 30, xx and March 31, xx) plus contributions made since the last valuation date plus interest at a rate of five percent (5%) per annum from the date of last valuation and the contribution date(s) to the anticipated payment date. 4. PLAN TO PLAN TRANSFERS. The amount in a Deferred Compensation Account of a former Participant, shall be transferred to another eligible plan of which the former participant has become a Participant, if the following conditions are met: A. The new plan provides for acceptance of such amounts, and B. The old plan provides for such transfer if the Participant separates from service with the Employer in order to accept employment with another eligible entity. This Plan accepts amounts of compensation deferred by Participant pursuant to another eligible deferred compensation plan as stated in the prior paragraph. 5. RIGHTS OF EMPLOYER/PARTICIPANT. All amounts of compensation deferred under this Agreement, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights, shall remain (until made available to the Participant or other beneficiary) solely the property and rights of the Employer (without being restricted to the provision of benefits under this Plan executed thereunder) subject only to the claims of the Employer's general creditors. The value of the Deferred Compensation Account represents the unsecured obligation of Employer to Participant. wi th respect to such obligations the Participant shall be an unsecured general creditor. The employer and participant agree that no trust fund is intended or created. Participant may not anticipate or assign any of the rights he or she may have under the Deferred Compensation Agreement and Employer shall reject and refuse to honor any anticipation or assignment of such rights. GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 7 AMBROSE, FITZGERALD & CROOKSTON Anorneys and Counsslors P,O. Box 427 Meridian, Idaho 83642 TelephonEl888-4461 'I 6. LEAVE OF ABSENCE. If a Participant is on an approved leave of absence from the Employer with compensation, or on an approved leave of absence without compensation, his participation in this Plan will continue. 7. DISTRIBUTION OF FUNDS. Administration of the plan requires participant balances twice each year as September 30. accounting for of March 31 and In order to facilitate distribution of funds as allowed by the plan the following procedure will be used. If funds are to be distributed at a date other than March 31 or September 30 the participant will receive as an interim distribution the balance in the participants account as of the previous accounting date. The participant will receive a final distribution based upon the next accounting period which will include the employee contribution since the account balance used for the interim distribution and the related plan earnings or losses for the same period. An example would be as follows: Participant terminates as of June 30, 19X1. a) Interim distribution of the participant account balance as of March 31, 19X1. b) A final distribution of the participant account balance as of September 30, 19X1. Balance would represent employee contribution after March 31, 19X1 plus net plan earnings or losses from March 31, 19X1 to June 30, 19X1. For the convenience and benefit of the participants, the participants have been allowed to make lump sum contributions into the plan based upon anticipated base annual earnings. 8. NONASSIGNABILITY. A. In general: Except as provided in Section 8. B., no participant shall have any right to commute, sell, assign, pledge, transfer or otherwise conveyor encumber the right to receive any payments hereunder, which payments and rights are expressly declared to be non-assignable and non- transferable. GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 8 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 Meridian, Idaho 83642 Telephone 668-4461 B. Domestic Relations Order: 1. Allowance of Transfers: To the extent required under a final judgment, decree, or order (including approval of a property settlement agreement) made pursuant to a state domestic relations law, any portion of the Participant's Account may be paid or set aside for payment to a spouse, former spouse, or child of the Participant. Where necessary to carry out the terms of such an order, a separate Account shall be established with respect to the spouse, former spouse, or child who shall be entitled to make investment selections ~'i'ith respect thereto in the same manner as the Participant; any amount so set aside for a spouse, former spouse, or child shall be paid out in a limp sum at the earliest dates that the benefits may be paid to the Participant, unless the order directs a different time or form of payment. Nothing in this Section shall be construed to authorize any amount to be distributed under the Plan at a time or in a form that is not permitted under Section 457 of the Internal REvenue Code. Any payment made to a person other than the Participant pursuant to this section shall be reduced by required income tax withholding; the fact that payment is made to a person other than the Participant may not prevent such payment from being includible in the gross income of the Participant for withholding and income tax reporting purpose s. 2. Release of Liability to Participant: The Employer's liability to pay benefits to a Participant shall be reduced to the extent that amounts have been paid or set aside for payments to a spouse, former spouse, or child pursuant to Paragraph 1 of this Section. No such transfer shall be effectuated unless the Employer or Administrator has been provided ~'i'i th satisfactory evidence that the Employer and the Administrator are released from any further claim by the Participant with respect to such amounts. The Participant shall be deemed to have released the Employer and Administrator from any claim with respect to such amounts, in any case in which a. the Employer or Administrator has been served with legal process or otherwise joined in a proceeding relating to such transfer, b. the Participant has been notified of the pendency of such proceeding in the manner .prescribed by law of Idaho for service of process in such action or GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 9 AMBROSE. FITZGERALD & CROOKSTON Attorneys and Counsslors P,O, Box 427 Meridian, Idsho 83642 Telephon& 888-4461 I! by mail from the employer or Administrator to the Participant's last known mailing address, and c. the Participant fails to obtain an order of the court in the proceedings relieving the Employer or Administrator from the obligation to comply with the judgment, decree. or order. 3. Participation in Legal Proceedings: The Employer and Administrator shall not be obligated to defend against or set aside any judgment, decree, or order described in paragraph (a) or any legal order relating to the garnishment of the Participant's benefits, unless the full expense of such legal action is bone by the Participant. In the event that the Participant's action (or inaction) nonetheless causes the Employer of Administrator to incur such expense, the amount of the expense may be charged against the Participant's Account and thereby reduce the Employer's obligation to pay benefits to the Participant. In the course of any proceeding relating to divorce, separation or child support, the Employer and Administrator shall be authorized to disclose information relating to the Participant's Account to the Participant's spouse, former spouse, or child (including the legal representative of the spouse, former spouse, or child) , or to a court. 9. AMENDMENT OR TERMINATION OF PLAN. The Employer may at any time terminate this Plan. Upon termination, the Participants in the Plan will be deemed have withdrawn from the Plan as of the date of such termination. The participant's full compensation on a deferred basis will thereupon be restored and the committee treat such Participants as if they had terminated their services on the date of the termination and direct the Employer to pay such benefit or benefits provided in Section S11Ch t 0 non- shall 3C. 10. The Depository is not a party to the deferred compensation agreement. 11. In the event the terms of this Plan shall be in conflict with Section 457 of the Internal Revenue Code or the regulations thereunder, as amended, Employer and Participant agree to cooperate in correcting same so as to be in compliance therewith. 12. This Deferred Compensation Plan shall be binding upon the assigns and successors of Employer and upon the legal representatives of Participant. GENERAL EMPLOYEES NON QUALIFIED DEFERRED COMPENSATION PLAN PAGE - 10 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O. Box 427 MeridIan, Idaho 83642 Telephone 688-4461 II , i 13. This Plan shall be construed under the laws of the State of Idaho. IN WITNESS WHEREOF, the parties have set their hands and seals on the date shown below. 14. This Plan shall be in full force and effect on October 15, 1991. CITY OF MERIDIAN CITY ("EMPLOYER") GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN PAGE - 11 AMBROSE, FITZGERALD & CROOKSTO N Attorneys and Counselors p,O, Box 427 Meridian, Idaho 83642 Telephone 888-4461 EXHIBIT IIBII GENERAL EMPLOYEES NONQUALIFIED DEFERRED COMPENSATION PLAN TRUSTEE DUTIES AND RESPONSIBILITIES WHEREAS, the City of Meridian, by City Council Action, has adopted an employees nonqualified deferred Compensation plan, the following described Committee is established with the duties and responsibilities described below: 1. There shall be established a General Employees Nonqualified Compensation Plan Trustee Group (Trustee Group) which shall be charged with the responsibility of administration of said deferred compensation plan. The duties, responsibilities and powers of the TRUSTEE GROUP shall be delineated by this document and no amendment shall be effective unless memorialized in an addendum equal force to this document. 2. The TRUSTEE GROUP shall be initially composed of Grant P. Kings ford, Jack Niemann, Janice Gass, and Earl Ward. The qualifications to be Trustee and the terms of office of the Trustees Group and their mode of succession has been set forth in the resolution of the City Council to which this document has been attached. All decisions of the TRUSTEE GROUP shall be by majority vote and shall be binding on the TRUSTEE GROUP. 3. A TRUSTEE GROUP has been established by action of the City Council, however, by agreement, the Trustee Group may select an investment manager by the competitive Request for Proposal process. The investment manager shall be given, by the TRUSTEE TRUSTEE DUTIES AND RESPONSIBILITIES - PAGE 1 AMBROSE, FITZGERALD & CROOKSTON Attorneys end Counselors P.O, Box 427 Meridian, Idaho 83642 Telephone 888-4461 GROUP, direction and investment guidelines sufficient to establish an investment portfolio goal. 4. The TRUSTEE GROUP shall meet at least twice yearly, once in the three months period form October to December of each year, and again during the period April to June of each year 0 Any member of the TRUSTEE GROUP may call a special meeting upon notice to other members. Such notice must be made within a reasonable period prior to the meeting. 50 The TRUSTEE GROUP shall meet to consider, but not limited to, the following: (A) Review the deferred compensation plan every two (2) years, to determine the feasibility of adjusting the plan to include alternative funding vehicles and pooling arrangements which are available and economically prudent. (B) Develop performance criteria for the evaluation of the investment manager. The investment manager may be terminated by the TRUSTEE GROUP for failure to fulfill the reasonable expectations of the TRUSTEE GROUP as measured against the performance criteria developed by the TRUSTEE GROUP. (C) Review the performance of the investment manager at least annually. Such review shall contemplate the performance of the investment manager as measured against the investment guidelines described in Paragraph 3 and anticipated performance criteria to be established by the TRUSTEE GROUP. (D) Establish hardship guidelines consistent with the intent of the General Employees Nonqualified Deferred Compensation Plan TRUSTEE DUTIES AND RESPONSIBILITIES - PAGE 2 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P,O, Box 427 Meridian, Idaho 83642 Telephono 8S6.4461 and applicable Internal Revenue Service guidelines. The TRUSTEE GROUP shall review all hardship requests for the withdrawal of funds the Employees Nonqualified Deferred from General Compensation Plan in accordance with guidelines to be established by the TRUSTEE GROUP. (E) Periodically review and amend the plan document as necessary or desired to meet IRS guidelines and program objectives. 6. The TRUSTEE GROUP shall prepare an annual performance report for presentation to the employees and the City. Such report shall state the performance of the fund and the achievement of its stated objectives. DATED this~btiJ day of (Zl& fi::J h Cr~ , 1991. CITY OF MERIDIAN -btanlf1G{1I- ATTEST: TRUSTEE DUTIES AND RESPONSIBILITIES - PAGE 3 AMBROSE, FITZGERALD & CROOKSTON Allorneys and Counselors P.O. Box 427 Meridian, Idaho 83642 Telephone88S-4481 RESOLUTION NO.Li' A RESOLUTION OF THE CITY OF MERIDIAN IN SUPPORT OF THE ESTABLISHMENT OF A GENERAL PURPOSE FOREIGN TRADE ZONE, REMOTE SITE FOREIGN TRADE ZONE, OR A SPECIAL PURPOSE FOREIGN TRADE SUBZONE WITHIN THE CORPORATE LIMITS OF THE CITY OF MERIDIAN; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ON BEHALF OF THE CITY OF MERIDIAN AN OPERATORS AGREEMENT WITH INTERNATIONAL TRADE SERVICES, INC. SIMILAR TO ONE PRESENTED TO THE CITY BY INTERNATIONAL TRADE SERVICES, INC.; NAMING AN OPERATOR OF THE ZONE; ENDORSING TREASURE VALLEY BUSINESS CENTER AS A FOREIGN TRADE ZONE SITE;AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 76-4703A, Idaho Code, authorizes the governing body of a municipality by ordinance to apply to the United States Department of Commerce, Foreign Zones Board, for a grant of authority to establ ish, operate and maintain foreign trade zones or subzones within the State of Idaho, if the foreign trade zone is to be established, operated and maintained within the corporate boundaries of the of the municipality; WHEREAS, the City of Meridian is a municipality of the State of Idaho and is qual ified to apply for a foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone, since it is since it is adjacent to a port of entry; ItJHEREAS, the development of a foreign trade foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone site is consistent with, and will further, the economic development goals and strategies of the City of Meridian; WHEREAS, International Trade Services, Inc., an Idaho RESOLUTION IN SUPPORT OF FOREIGN TRADE ZONE Page - 1 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P.O. Box 427 Meridian, Idaho 83642 Telephone 888.4461 corporation, has made a proposal to the City of Meridian for the development~ operation and maintenance of such a zone that is represented by the draft of the FOREIGN TRADE ZONE OPERATION AGREEMENT marked Exhibit "A" and attached hereto; ItJHEREAS~ the City of Meridian does not presently have the funds nor does it have the funds or expertise to operate any type of foreign trade zone; WHEREAS, Gemtone~ Inc., owner of the Treasure Valley Business Center, a real estate development located within the City limits of the City of Meridian, by act of its board of directors by corporate resolution, which resolution is attached hereto as Exhibit IIB"~ has authorized the Treasure Valley Business Center to be included in a foreign trade foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone site; and WHEREAS, it is deemed to be in the best interests of the City of Meridian, its economy, and the citizens of the City to Apply to the United States Department of Commerce~ Foreign Zones Board, for a grant of authority to establ ish, operate and maintain a foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO: SECTION 1. The development of a foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade RESOLUTION IN SUPPORT OF FOREIGN TRADE ZONE Page - 2 AMBROSE, FITZGERALD & CROOKSTON Attorneys and Counselors P.O. Box 427 MerIdian, Ideho 63942 Telephone 888-4461 subzone within the corporate limits of the City of Meridian has the full support of the Mayor and City Council of the City of Meridian. SECTION 2. That International Trade Services, Inc., has presented to the City a draft of a proposed Agreement, a copy of which is attached hereto, which is similar to an Agreement between the City of Boise and International Trade Services, Inc., and under which proposed agreement International Trade Services, Inc., is named Operator of any foreign trade foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone that the City may be able to achieve; that the Mayor and City Clerk are hereby authorized to execute an agreement similar in content and form that has been approved by the City Attorney. SECTION 3. That upon an acceptable operatorls agreement being entered into between International Trade Services, Inc., and the City of Meridian, International Trade Services, Inc., will be hereby named Operator of any foreign trade zone, be it a general purpose foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone. SECTION 4. That all officers and employees of the City of Meridian are hereby authorized and directed to cooperate in all reasonable and legal ways with International Trade Services, Inc., in the necessary documentation to accompany an application for a general purpose foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone. RESOLUTION IN SUPPORT OF FOREIGN TRADE ZONE Page - 3 AMBROSE, FITZGERALD & CROOKSTON Attorneys and / Counselors ( P.O. Box 427 \ Meridian, Idaho "" 63642 Telephone 688-4461 [! SECTION 5. That the site proposed by International Trade Services, Inc., for the location of a general purpose foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone of Treasure Valley Business Center is hereby endorsed, however all zoning and development ordinances must be met and complied with unless variances or exceptions are appl ied for and those matters will be addressed in the regular course of City business as they are applied for. SECTION 6. That upon reaching an acceptable operator's Agreement similar to the one attached hereto and that agreement being executed by the City and International Trade Services, Inc., the City is hereby authorized to apply for a general purpose foreign trade zone, remote site foreign trade zone, or a special purpose foreign trade subzone, and the Mayor and City Clerk are hereby authorized to sign all applications and documents pertaining thereto. PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, this 15th day of October, 1991. APPROVED: r:~Kf~~-- ATTEST: CTTY CL E RK SUPPORT OF FOREIGN TRADE ZONE E~ hl.t.-J. ./ it f~ ~ FOR E I G N - T R f\ 0 E l 0 N E {) P E H 1\ r ION 1\ G IH EM EN T T his a 9 t. e e III e n ten tel'(' dill I 0 h y and bet wee n t It e City 0 f Mer i d i ant 6 f1l un i C 1 pal cor pOI' il t ion 0'1' 9 (\ nil ~ d an rl f'){ i s till gun d P. I' the . 'II' 1 a,\'is 0 f . the S tat e 0 f I d a h 0, . h f' t' e i n aft e r "GRANTEEII, {Il1d I nl ern a t ion a 1 It, TraM~ Services, 1 n c . (1ITS"), a cot'poration o r 9 ani zed un del' the 1 a w s () f t 11 p S 1- i'\ ,. P 0 f I d a h () , h e t' e i n aft e I' II 0 p e " il t 0 I'" : WIN ( " <; I I II WHEHEflS, GRflN1EE Shilll ilpply rOl' " qt;1I1I fl'otl\ IlIp ljn\l:r>d St~~tes F1d\'eigrl.-Tt'ad'e Zones f30ilrd 1.0 estilbliSh, opet'<1te, i)nd m a ; n t a i n a' For ei g n T t' ad e Z 0 11 e i 11 t h p C i t y 0 f Mer i d i an, sue h 7. 0 n e bein'g d'es'i'gnated Foreign Trade Zonp. Nl1rnbel' an d W HER E AS, 0 pet' a tot', u n d e r tile t e r m san tl con d i t ion she t' e ins e t for t h. des ire s t 0 U n d e t' t a k e the f u t' t h P t' de v P. lop men tan d e x c 1 u s i v e ope rat ion an cl 111 a II age 111 e n 1. 0 f F 0 \' e \ q TI - T t' a d r. l 0 n e act i v i tie S 0 f the Zone herein described in accordance with standards of operation .\ app~r"oved b'y 'the Foreign-Trade ZOllf'S Board and GIH\NTEEt including tho~e related to occup~ncy and use. N OW , THE REF 0 R E ,. i fl con si de t' a t j 0 n 0 f the Y" e c ita 1 5 and undertakings hereinabove and hereinbelow set foy,th, it is mutually covenanted and agreed by and betwp.rl1 thE' l1ilrl;es ilS follows: Section 1. DEFINITIONS: , , ,The following.wonls shall have the following meilnings when ose'dl in t:'hi'$ Agreement:. ( a ) Th e n A. c t II S hall mea nth P. f 0 \'f~ i q n - T Y' 0 d P. Z (] n e <; ^ c t 0 f J \J n e FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE THANsrORTI\rl0N INC. - 1 18, 1934 (48 Stat. -998-1003; 19 use 81a-81u, as amended). ( b ) The II Boa r d II S h all mea tl the boa r d t' e fer red t 0 inS e c t ion 15 CFR 400.103 of the Trade Zone Regulations or the successor of such Board in functions and duties. (c) IIEarned Income" shall mean that income determined in accordance with generally accepted accounting principles. Cd) "Foreign-Trade Zonell (hereinafter referred to as "FTZ") shall mean all isolated and enclosed area, operated as a public utility, in or adjacent to a port of entry, (i) furnished with facilit"ies for t' e c e i v i n 9 , unloading, handl ing, storing, manipulating, manufacturing and exhibi ting goods and for loading and reshipping them by land, water or air, and, (ii) in which any foreign or domestic merchandise, except such as is specifically prohibited by law or by action of the Board or the GRANTEE, may be brought into the FTZ without being subject to the customs laws of the United States governing the entry of goods or the payment of duty thereon. (e) IIFTZ" No. " shall mean the Foreign-Trade Zone (Zone) authorized by the Board within the City of Meridian and any remote site or subzone established or operated under authority of the grant. (f) The IIRegulationsll shall mean collectively the regulations relating to Foreign-Trade Zones currently published in the Code of Federal Regulations, 19 CFR 146, 15 CFR 400, et.seq.) as such regulations may be amended in the future, and shall also mean any additional regulations which now or in the FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 2 c ., future. may be promulgated by any governmental agency or entity ( fed era 1 ~ s tat e 0 r 1 0 c a 1) w h i c h con c ern ~ Y" e 1 ate too Y' a p ply i n any way to the Foreign-Trade Zone~ as hereinafter defined. ( g) . ;11 U S C S II S h all mea nth e U nit e d S tat e s C u s t 0 In sSe Y" v ice . (h) "0peratorU shall mean the Operator~ its employees and entities and individuals authorized by the Operator to perform services within the Zone. (i) "Zonell shall mean such premises as shall be or become i n c 1 u d e din t. h e 9 Y" ant an d are 0 per a I: P. rl and In a i 11 t ai 11 e cI by the Operator as part of FTZ NO. with approval of the GRANTEE under this Agreement. Section 2. GRANT OF AUTHORITY: GRANTEE does hereby 9 ran t ~ 5 U b j e c t t 0 all the t e r In s, c 0 v e n ant san d con d i t ion sse t forth in this Agreement and to the provisions~ conditions and restrictions of the Act and to any other applicable law~ permission to the Operator to operate and maintain a FTZ effective for a term described specifically in Section 3 of th~s Agreement. Section 3. EFFECTIVE DATE AND DURATION OF AGREEMENT: (a) The parties expy'essly covenant that, subject to the provisions and instructions of Idaho State constitutional and statutory law~ this agreement shall extend for a period of five (5) years from the effective date hereoft unless sooner terminated as provided herein. The effective date of this Agreement shall be the day of , 19 (b) This Agreement may be extendedt upon the sole d'iscretion of GRANTEEt for additional periods~ on terms and conditions to be FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 3 m u t u all y a 9 r e e d u p 0 n b y the par' tie s not 1 ate r t h ann i net y (9 0 ) days prior to the scheduled expiration of the initial five (5) year period. In the event the parties have not reached agreement on a successive term, as specified herein, this Agreement shall expire' at 12:00 Midnight on the day specified herein, and each party shall release and discharge the other from all obligations, liabilities, rights of renewal or privileges granted in this Agreement, except for those revenues earned by or liabilities or o b 1 i gat ion S 0 fOp era tor w h i c h h a v e bee 0 In e pay a b 1 e a c 0' u e d p r i 0 I" tot he ex p i r a ti on 0 f the A 9 r' e e In e n tan d h a v e not be e n f u 1 1 y satisfied during the Agreement term. (c) The GRANTEE shall have the right to terminate this Agreement at any time upon ninety (90) days' notice to the Operator. GRANTEE'S right to terminate this shall not be exercised arbitrarily or capriciously. Termination shall not relieve the Operator of any liabilities or obligations which shall have accrued or limit Operator's right to revenues earned on or prior to the effective date of termination and have not been fully satisfied prior to the effective date of termination. Cd) It is the intent of the GRANTEE that negotiations for any subsequent term of this agreement shall include, but shall not be limited to, revenue distribution, term, exclusivity and any other term to be negotiated by the parties. Section 4. DUTIES OF THE OPERATOR: (a) Operator shall be responsible for the timely preparation and submission of all reports and other documents that are or may FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 4 b e r.e qui red ,b y the Boa r d, and any 0 the r fed era 1, s tat e , 1 0 c a 1 agency, and GRANTEE. All r e cor d s 0 fOp e t' a tOt' S h all b eke p t consisteit with all requirements of the Board, the USCS, any other rel.~vant agency, and GRANTEE. Opet'ator shall operate the FTZ at all times in the manner of an Idaho public utility. All rates, charges, or user fees for all services or privileges within the FTZ shall be fair and reasonable and subject to the prior approval of the Board and GRANTEE. Ope rat 0 Y' S h all r e par t , wit h i n a rea son a b 1 e t \ III e, the i In P 0 sit ion 0 f sue II t' ate s, c II a r 9 e S 0 r use r fees which have not been contemplated by the tariff. ( b ) The Z 0 n e s h all b e 0 pet' ate d, m a i 11 t a i n ed, and a d m i n i s t ere d by Operator in a manner consistent with all rules and regulations of the Board as well as all relevant rules and regulations of the USCS, and any and all municipal, state, and federal statutes, laws, rules, and regulations concerning FTZs, including, but not limited to, the development and implementation of an inventory control and record keeping system satisfactory to the uses and the competitive bid laws of the State of Idaho. (c) Operator shall prepare a tariff setting forth rates, charges, and user fees applicable to the FTZ in a manner consistent with the rules of the Board, such tariff to be approved by the Board and GRANTEE. (d) It is specifically understood that no person, firm, or cor po rat ion s h all beg ran t e d aut h 0 r i t Y too per ate w. i t h i nth e Z 0 n e , or within any sub-Zone, except upon written agreement between such person, firm, or corporation and GRANTEE. Prior to activation of FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 5 the FTZ, Operator shall submit to GRANTEE a draft User Agreement for approval of GRANTEE. The Operator shall also obtain approval . . of'the Boatd of a Us~r Agreement. (e) Operator shall develop and enforce a security plan which complies with the standards set forth in 15 CFR 400.402, "Physical Facilities Required in the Operation of a Zone", 15 CFR 400.403, lIConstruction and Operation of Equipment for Segregation from c u s tom s T err i tor y and Qua t' t e t. s for Pet'S 0 n n e l" and tho S est and a r d s a p p ~' 0 v e d by the 0 i s t ri c t D ire c t 0 ~. 0 feu s t: om s ,or S U c hot her statutes, laws, y'ules, and regulations \'ihich may apply to the operation of the Zone. (f) Operator shall be responsible for taking all steps necessary to activate and deactivate areas within the Zone, such r'esponsibility to include the payment of all reasonable fees connected with such activity. Operator has the right to be reimbursed by Users for the payment of such fees and reasonable expenses incurred on behalf and at the request of the User. GRANTEE has the right of approval fot' any such actlvation or deactivation, but such approval shal 1 not be unreasonably withheld. (g) Operator shall develop and publish an operations manual setting forth procedures for securi ty, housekeeping, inventory control, record keeping, tariffs, and any other procedures employed in the operation of the Zone. (h ) Operator sha 11 aggress i ve 1 y mar'ke t the Zone and make every effort to increase the number of tenants and achiev~ optimum FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 6 utility of the FTZ in the shortest reasonable time. (i) Upon the commencement of operations~ and throughout the t e r m 0 f t his A g r e e men t , 0 pet' a tOt' S h all pro v ide the nee e s s a r y staffing to efficiently run the Zone~ including a Manager and add it i ona 1 personne 1 . (j) The Operator acknowledges that it has read and understands the Regulations. The Operator separately and independently covenants with the GRANTEE that it shall at all times conform to the requirements of the Regulations. In add; t ion, the 0 per a tOt' C 0 v e n ant s t hat its h all not do 0 t' f ail t 0 do or allow to be done or left undone at the FTZ anything which might constitute a violation or an omission of the GRANTEE'S responsibilities and obl igations as grantee of the FTZ. Section 5. IMPROVEMENTS: (a) Within a reasonable time after execution of this Agreement and prior to commencing operation of the FTZ~ the Operator at its sole cost and expense shall~ in accordance with all applicable rules and regulations of the Board and the USCS~ complete or cause to be completed construction and improvement of any facilities which are required by the Board and the USCS for the operation of a FTZ. All construction and improvements to the FTZ by the Operator shall become the property of GRANTEE upon installation. All construction shall be completed in compliance with Meridian City contractual standards including~ but not limited to, 1 i en waivers~ performance bonds and other requirements. FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 7 ( b ) All b u i 1 din 9 san dot h e I' s t r u c t u t' e s ~'/ i t h i nth eFT Z s h all be so constructed or altered, and maintained, as may be required .~ ~;.. by the C H~y:;o f Mer i d, i an. S tat e 0 f I d a h 0 and the 0 i s t r 1 c t 0 ire c to I' of the uses. (c) The Operator covenants and agrees to provide adequate facilities, personnel and services necessary to operate the FTZ a t no cas t to the GRANTEE. Cas ts for f ac i 1 it i es, personne 1 and services may be recovered by Operator through the assessment and collection of zone user fees as provided herein. ( d ) The 0 per a tOt. C 0 v e n ant san d a 9 t' e est 0 ens u r e the maintenance of the structures and other faeil ities within the FTZ in good 'Condi tion and so as not to r'ecklessly or negligently endanger the 1 ife and health of any persons employed within, operating within or invited to the FTZ. (e) The GRANTEE shall not be obl igated to provide any equipment, labor, material or other goods or services, in connection with the FTZ, or the Operator's operations or with the administration of the FTZ. Nor shall the GRANTEE reimburse the Operator for any expense incurred by Operator in connection with its operations at or administration of the FTZ, including, without limitation, expense concerning or relating to the following: (i) assignment to the FTZ of uses employees; (ii) the obtaining of such surety bonds as may be required of the Operator by the USCS; (iil) keeping of books, recor-ds and accounts in the manner required by the Regulations; FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 8 (iv) secut'ity; (v) . any costs incurred by the Operator pursuant to the Regulationst includingt without lirnitationt the cost of providing Customs services; , (v i ) any other expenses involving in any way the administration or operation of the FTZ or the Operatorls compliance with the terms of this Agreement, including, but not limited to, the Regulations, the Act or any other law of the City of Meridian, State of Idaho or the Uni ted States. All such e x pen 5 e s s h all be the so 1 e r" e s p 0 n sib i 11 t Y of the 0 per a tor. I nth e eve n t the 0 per" a tot' f ail s torn a k e any p a ym en t which may be required above or in the event that the Operator fails to make any payment which may be required of the GRANTEE as grantee of the FTZ, under applicable law or Regulationt includingt without limitationt unpaid customs duties for which the GRANTEE could be held responsible, the GRANTEE shall have the right, but shall have no obligation, to make such payment upon fifteen (15) calendar days notice to the Operator and the Operator shall reimburse the GRANTEE for such payment immediately upon demand. (f) Any imp\'ovements contemplated by this Agreement to become the property of GRANTEE which shall be financed by security or debt, shall be approved by the GRANTEE prior to the issuance of such security or debt. Section 6. LICENSING REQUIREMENTS: Operator shall at all times during the term of this Agreement maintain such licenses and permits as are, or may hereafter be, required for any of the FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 9 various services 'to be perfot'med by it on behalf of GRANTEE as required by the City of Meridian, Ada County, the State of Idaho, or the Un~ted States. '., " Section 7. RIGHT 'OF ENTRY AND INSPECTION: Representatives of the Board, the USCS and/or GRANTEE, and other authorized governmental officers shall have the right to enter the Zone at any time for the authorized and lawful purpose of e x ami n i n g the sam e , con fer t' i n 9 wit hOp era tor, its age n t s , invitees, and employees on such premises, inspecting and checking ope rat 0 t' S, So U P P 1 i e s, e qui pm e n tan d III e t' c h and i s e, and d e t e r m i n i n 9 whether the business is being conducted in accordance with pertinent rules, regulationst laws, and standards and the procedures established in accordance with this Agreement. All such entries shall be in accordance with the established security procedures of Operator. Section 8. EMPLOYEES: Operator shall employ, discharge, and supervise employees required for the efficient operation and maintenance of the FTZ, including a Manager. Operator shall not retain independent contractors without first notifying GRANTEE in writing. .Operator shall pay the salaries of its employees and necessary state, federal, and local taxes. In no event shall GRANTEE be construed to have any obligation, responsibility, or duty whatsoever to employees, agents or independent contractors of Operator including, but not 1 imited to, any contribution or payment to any contractual or statutorily mandated wage or other term or condition of employment. FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 10 Section 9. INSURANCE: The 0 p e t- a tOt' S h all 0 b t a in, 0 r cause to be obtained, and continuously maintained in effect during the term of this Agreementt insurance against such risks as are customarily insured against by businesses of like size and typet paying or causing to be paid as the same become due all premiums with respect theretot including but not necessari ly 1 imited to insurance in an amount equal to the full replacement value of all contentst at any time located within the Zone against loss or dam age by f i Y' e 0 rot h e t' cas lJ a 1 t y, wi t h lJ ni for m s tan day' d 5 e x ten d e d coverage endot'sement limited only as may be provided in the standards form of extended coverage endorsement at the time in use in Idaho. All such insurance policies shall be obtained and m a i n t a i n e din 9 en era 11 y r e cog n i zed t' e s po n sib 1 e ins u ra n c e com pan i e s qualified under the laws of the State of Idaho to assume the respective risks undertaken. Operator will obtaint and continuously maintain in effect during the term of this Agreement, comprehensive public liability insurance with respect to its use and occupation of the Zone with limits sufficient to reasonably cover all activities of Operatort but in no event in an amount less than One Million ($ltOOO,OOO) Dollars per occurrence as to bodily injurYt including deatht and damage to property with an aggregate limit of Five Million and No/100 ($5,OOOtOOO.OO) dollars. All policies of insuy'ance required herein shall name, as additional insuredt GRANTEEt and its directorSt officers, agentst servants, and employees. Operator shall provide GRANTEE with a Certificate of Insuy'ance or other proof of ,insurance FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 11 evidencing Operator's compliance with the requirements of this paragraph and file such proof of insurance with the Meridian City Cferk. In the event the insurance minimums of the Idaho Tort Claims Act are changed, Operator shall immediately submit proof of compl iance with the changed 1 imits. Section 10. BONDS: As required by the United States Customs Service. Operator will maintain adequate and appropriate insurance and/or bonds to satisfy FTZ requirements of the service. S aid bon d s s h all b e i n a n a m 0 u n t 0 I' a m 0 u n t s t 0 bee s tab 1 ish e d between Operator and uses so as to insure against the loss of any Customs penalties or duties through operation of the FTZ. Operator shall require Users to maintain appropriate bonding between the Users, uses and Operator. necessary to protect the interests of GRANTEE and Operator. Operator shall name GRANTEE as additional payee on all bonds required by this Section. Operator shall obtain and maintain such bonds and/or insurance as may be required from time to time by GRANTEE to ensure the full and proper performance of Operator's obligations owed GRANTEE herein. Section 11. INDEMNIFICATION: It is an express condition of this Agreement that GRANTEE shall be free from any and all liabilities and claims for damages, fines, suits, 01' claims for or by reason of any death or deaths or injury or injuries to any person or persons or damages to property of any kind whatsoever, whether the personal property of GRANTEE its agents or employees, or third persons, from any cause or causes whatsoever while in or FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 12 upon" said FTl or any part thereof during the term of this Agreement, or occasioned by occupancy or use of said premises or .'.;~ any activity carried on by Operator' in connection therewith. Operator shall indemnify, defend, save and hold harmless GRANTEE from and for any and all losses~ claims, fines, actions~ judgments for damages, or injury to persons or' pt'operty and losses and expenses caused or incurred by Operator or any User, their servants, agents, employees, guests, and business invitees, and not c a use d by 0 r at' i sin g 0 u t 0 f the n e 9 li 9 e n ceo r tor' t i 0 u S con d u c t of GRANTEE or its servants~ agents or employees. The limits of insurance shall not be deemed a limitation of the covenants to indemnify, save, defend and hold harmless GRANTEE; and if GRANTEE becomes liable for an amount in excess of the insurance limits, herein provided, Operator covenants and agrees to indemnify, save, defend and hold harmless GRANTEE from and for all such losses, claims, actions, or judgments for damages or liability to persons or property. Section 12. RECORDS AND REPORTS: All billing and cash r e c e i v i n gin t ern a 1 con t r 0 1 pro C e d u r' e s s h all b e r' e vie wed b y G RAN TEE prior to their implementation. GRANTEE may require alterations to such billing and cash receiving internal control procedures in order to, but not limited to, establishing a reasonable billing and cash receiving control environment. Operator shall keep books, accounts, and records that reflect all revenues, expenditures, and activities in connection with the management and operation of the FTZ. The books~ accounts, and FOREIGN-TRADE lONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 13 records shall be maintained at the place of business of Operator~ said place to be located in Meridian, Idaho. ! All financial, accounting, and operational records concerning Zone operation shall be retained for five (5) years after the act or occurrence recorded or after the merchandise covered by such record has been transferred from the Zone, whichever is longer, and all such records shall be available for inspection and audit by GRANTEE or its representatives, at the expense of the City, during normal business hours. In the event of the termination of thls A 9 r e e men t, cop i e s 0 fan y s u c h t' e c () r d s s h all b e sUn' end ere d t 0 GRANTEE or its designated agent. (a) Financial and Accounting: (i) Operator shall employ reasonable internal control procedures and generally accepted accounting principles in the maintenance of accounting recot'ds and the preparation of all financial statements, accounts, and reports required under this Agreement. Within ten (10) working days after the close of each calendar month, or on the first Tuesday of each month, whichever i s 1 ate r, d u t" i n g the t e r m her e 0 f, 0 per a tor s h all sub m ita n i n t e rim accounting to GRANTEE showing all revenues and all expenses for the month in such detai 1 as shall be requi red by GRANTEE. The information in any such interim accounting made with respect to each calendar month during the term of this Agreement shall be both cumulative for the fiscal year and for such accounting period and shall be in a format acceptable to GRANTEE. ( i ; ) Wit h ins i x t Y (60) day s aft e r the c 1 0 s e '0 f e a c h FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 14 fiscal yeart ,which shall be duy'ing the term of this agreement September 30 of each year, or the expiration of this Agreement, Operator shall submit financial statements to GRANTEE prepared in accordance with generally accepted accounting principles as to the FTZ's financial position and results of FTZ operations for such period and a certificate of Operator's chief accounting officer or accountant certifying that such financial statements are true and correc t. Any adjustments required by this fiscal year accounting shall be made promptly by the parties. (iii) GRANTEE and/or its designated t'epresentatives reserve the right to require an annual financial audit of the Operator1s financial statements. Such audit to be at the sole expense of the Operator. (iv) GRANTEE and/or its designated representatives reserve the right to perform addi tional financial or management audits of Operator's operations and books and records at any time. Such audit or audits to be at the sole expense of GRANTEE. (b) Zone Operations (il The Operator shall operate and maintain the FTZ in accordance with all terms of this Agreement, all provisions of the Act, and all requirements of the Board and the USCS. (ii) The Operator shall take all reasonable precautions that all merchandise in, and activities occurring within the FTZ are in compliance with all Federal lawst rules and regulations. In the event the uses shall initiate proceedings against the Operator based on alleged violations of applicable rules and FOREIGN-TRADE lONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 15 !< reg u 1 at ion s r e 1 a ti n 9 tot h e 0 per a t ion 0 f t. h eFT Z) the 0 per a tor shall immediately notify the GRANTEE. (iii) Operator shall pt'ovide all necessary data for purposes of filing reports and shall further prepare any and all reports for filing) as required) with the Board and any and all other municipal, state, or federal agencies governing activities within the FTZ. (iv) Details of business operations of individual firm1s operation in and using this zone shall be kept confidential except for such information as shall be deter'mined to be publ ic information. under federal, state, or local laws. ( v ) 0 per a tor s h all not i f Y G RAN TEE 0 fan y 0 the r r e pOt' t s requested by any government agency and of any investigation of its activities commenced by any government agency) and shall provide copies of all such reports and investigative documentation to GRANTEE upon request. (c) Meridian City Costs (i) In the event Operator requests or this Agreement requires the City of Meridian to perform any service or function for the Operator or the FTZ) said cost of such service or function to Meridian City shall be paid to Meridian City by Operator within thirty (30) days of completion of the service required or requested by Operator. Compl iance with the request of the Operator for Meridian City assistance shall be at the sole discretion of Meridian City. (ii) The cost of such services or functions to Meridian FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 16 City shall be calculated consistent with existing or amended internal control procedures of Meridian City for inter'departmental cost control. Section 13. EVENTS OF OEFAUL T AND REMEDIES: The fol lowing shall be "events of defaultll under this Agreement, and the terms lIevent of defaultll or IIdefaultll shall mean, whenever they are used in this agreement, anyone or more of the fol lowing events: (a) Default by Operator in the due performance or observance o fan y 0 f 1 t sag r e erne n t SOt' C 0 v e n ant s con t ai 11 e din t his a g t' e e men t , which default shall have continued for a period of thil'ty (30) days after written notice specifying such default shall have been given to Operator by GRANTEE, unless GRANTEE or its assigns shall agree in writing to an extension of such time prior to its expiration; or (b) The dissolution or liquidation of Operator or the filing by Operator of a voluntary peti tionin bankruptcy other than a petition for an arrangement which does not affect any of the terms and conditions of this Agreement. Whenever any such event of default shall have continued for thirty (30) days after notification of the default, GRANTEE or its assigns may take any of the following remedial steps: (i) GRANTEE or its ass igns may re-enter and take possession of the Zone, and any improvements constructed therein, and exclude Operator from possession thereof and administer the same for the account of Operator, holding Operator liable for the balance due hereunder; FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 17 (i i)' GRANTEE or'i ts assigns may immediately terminate this agree~ent without further notice as required in Section 3(c), exclude Operator from possession of the Zone and, at its option, operate the same for the account of GRANTEE or its assigns, holding Operator liable for all sums due prior to the date of termination for the account of GRANTEE or its assigns and permit Operator to collect such revenues as may be due prior to termination subject to any set-ofF for 1 iabil itfes; or ( i i i) G R 1\ N TEE 0 t" its ass i 9 n sma y t a k e \-J hat eve r' a the r action at l~a\lJ or in equity as may be available to collect any sums due hereunder~ or to enforce any obl igation, covenant, or agreement of Operator under this Agreement, or to collect actual, but not consequential ~ damages for breach of contract, or to effect or obtain any other remedy available. No remedy herein conferred upon, reserved, or waived by GRANTEE or its assigns is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall b e cum u 1 a t i v e and s h all b e i n add i t ion toe vet' y 0 the r rem e d y g i v e n under this Agreement or available at law or in equity. Section 14. NOT JOINT VENTURES: GRANTEE and Operator are not, and shall never be considered, as joint venturers or partners of each other, and neither shall have the power to bind or obligate the other except as set forth in this Agreement. There shall be no liability on the part of GRANTEE or Operator to any person, firm, or corporation for any debts incurred by the other resulting from business conducted by it unless GRANTEE or Operator FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 18 agrees in writing to pay such debt. Section 15. USE OF TRADE NAME: Use of trade names, trademarks, logos and other means of identification of Meridian City and Operator are hereby allowed without cost or exception to the parties. Upon the termination of this Agreement, Operatot' s h all d i s con tin u e the use 0 f t r' a den a me s, t r a d em ark s, s i 9 n san d forms of advertisement which indicate a continuance of operating FTZ No. Any such trade names, copyrighted material, pro c e d u r a 1 man u a 1 s, tat' iff s, i n v e n tOt' Y con l: r 0 1 s y s t ems, com put e r' software and related items, developed or created in conjunction with the Operation of FTZ No. shall, upon termination of this Agreement, become the property of the parties as described in Section 25 hereinbelow. In the event Operator shall fail to make, or cause to be made, .such changes, within thirty (30) days after written notice from GRANTEE, then Operator hereby grants to GRANTEE the right to enter upon the lone without being deemed guilty of trespass, and to make or cause to be made such changes at the expense of Operator, which expenses the Operator agrees to pay on demand. Section 16. WITHDRAWAL OR SURRENDER OF GRANT: If the grant of a FTZ to GRANTEE shall be surrendered, revoked or canceled, this Agreement shall terminate and Operator shall have no claim against GRANTEE by reason of such surrender, revocation or cancellation, and Operator shall have no further interest in the subject matter of this Agreement except to t'eceive such additional compensation as may be or become due to it pursuant to FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 19 t his A g r e e men t s b y vir t u e 0 f set. v ice s r end ere d 0 r f a c i 1 i tie s furnished before the date of such revocation or cancellation. Section 17. NON-ASSIGNABILITY: The Y'ights and obligations created hereunder being in the nature of a contract for personal servicess Operator shall not assign this Agreement or any interest hereunder to any other party without written approval of GRANTEE. Operator shall notify GRANTEE prior to any changes of the e f fee t i v e con t t. 0 1 0 fOp era t () Y- 's cor POt. a t ion. G RAN TEE res e Y' v est h e right to terminate this Agreement upon ninety (90) days notice should such effective control change be found unsuitable by GRANTEE. Section 18. INTERPRETATION OF AGREEMENT: A. This Agreement shall be governed by and construed 1n accordance with the laws of the State of Idaho except where federal law has preempted such appl ication. B. All terms and words used in this Agreement, regardless of the number and gender in which they are useds shall be deemed and con s t rue d t 0 i n c 1 u d e any 0 the Y' n u OJ b e r ~ s; n 9 u 1 a r 0 r p 1 u r a 1 san d any other genders masculine, feminine or neuter, as the context or sense of this Agreement and any other paragraph or cl ause herein may requires the same as if such words had been fully and properly written in such number and gender. Section 19. USE OF FTZ: Operator agrees to operate the Zone for the use and benefit of the public and to make available to the public on fair and reasonable terms all Zone fae; li"t;es and furnish all services for fair, equals and not unjustly FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 20 d i s c rim i n a t 0 r:y p r ice s for e a c h u ni tor s e r V ice s, pro V ide d tile Operator may be allowed to make reasonable and nondiscriminatory . : discounts: rebates~ or other similar types of price reductions to volume' purchasers. It is expressly understood and agreed that nothing herein contained shall be construed to grant to authorize the granting of exclusive rights within the meaning of ill?????? Section 20. NONDISCRIMINATION: Operator~ for itself, its personal representatives) successors in interest) and assigns) as a part of the consideration hereof) does hereby covenant and agree that (1) no person on the grounds of race, color, national origin~ religion~ sex) age~ marital status) veter'ansl status~ physical or mental handicaps for which reasonable accommodations can be made or other non-meritorious factors or other factors which do not constitute pona fide occupational requirements shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities) (2) that in the construction of any improvements on) over) or under such land and the furnishing of services thereon, no person on the grounds of race, color, national origin) religion) sex, age, marital status, veterans' status~ physical or mental handicaps for which reasonable accommodations can be made or other non- meritorious factors or other factors which do not constitute bona fide occupational requirements shall be excluded from participation in) denied the benefits of) or otherwise be subjected to discrimination, ( 3 ) that the operator shall.use the premises in compliance with all other applicable requirements of FOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 21 Federal, State or Local laws or regulations and as said laws or regulations may be amended. It is the exclusive responsibility of GRANTEE to determine bona fide occupational requirements. It is further agreed that in the event of breach of any of the above nondiscrimination covenants, the GRANTEE shall have the right to terminate this Agreement and to re-enter and repossess said land and the facilities thereon, and hold the same as if said Agreement had never been made or issued. Section 21. ENTIRE AGREEMENT: This Agy'eement contains the entire agreement of the parties and no representation, inducement, promise, agreement, oral or otherwise, not embodied herein shall be of any force or effect. Section 22. AMENDMENT: No termination, cancellation, modification, amendment, deletion, addition or other change in this Agreement, or any provisions hereof, or waiver of any right or remedy provided hereunder shall be effective for any purpose unless specifically set forth in writing signed by the party or parties to be bound thereby. The waiver of any right or remedy ill respect to any occurrence or event or non-occurrence on one occasion shall not be deemed a waiver of such right or remedy in respect to such occurrence, non-occUrrence or event on any other occasion. Section 23. RESTRICTION OF RIGHT: It is expressly understood by and between the parties hereto that Operator is granted the right solely to operate the Zone or Zones described herein and to collect fees and other charges set forth in the REIGN-TRADE ZONE OPERATOR AGREEMENT M@RIOIAN CITY/SERVICE TRANSPORTATION INC. - 22 schedules and tariffs to be developed hereunder. Operator is not, nor shall it at any time be deemed to be, a real estate agent or com m i s s i on broker i nit s d e a lj n 9 s w hi c 11 t. e s u 1 tin the 1 0 cat j on of tenants.within the Zone. Section 24. NOTICES: Notices to the parties shall be given by mailing a copy of the same by fir'st class mail to the respective parties at the addresses set forth below. E. Teryl Adams International Trade Services, Inc. 125 N. 6th Street Payette, Idaho do you want the Mayor/City of Meridian here? Section 25. PROPRIETARY INTEREST: As a part of this Agreement, Operator is required to develop a certain manuals, tariffs, inventory control systems, computer software and related intellectual property. It is expressly understood by and between the parties hereto that both the GRANTEE and the Operator have a proprietary interest in such work product and, in the event of termination of this Agreement for any reason, such work product shall be and remain at all times the pt'operty of GRANTEE and Operator. Neither party may interfere in the use of said property by the other. In the event of the termination of this Agreement, GRANTEE may allow Users of Foreign-Trade No. and its subzones to use such manuals, tariffs, inventor'y controls systems, computer software, and related items, in their respective operations at FTZ No. and its subzones. fOREIGN-TRADE ZONE OPERATOR AGREEMENT MERIDIAN CITY/SERVICE TRANSPORTATION INC. - 23 $.ection 2!5. BINDING EFFECT: This Agreement shall be bin din g u p 0 n and 1 n u Y' e tot h e b e n e fit 0 f the p a y- tie she r e to, the i r respective successors and assigns. Provided. however, that this . /t~~~.., paragraph is::'.to beln no way constr'ued as granting to Operator the right to assign this Agreement or any interest therein without the express prior written approval of GRANTEE. which approval may be withheld for any reason. IN WITNESS ItJHEREOF. the this l\~p"e eme'n t ,t.o executed as of this the day of , 1991. OPERATOR: GRANTEE: BY: BY: ITS: ITS: FOREIGN-TRADE ZONE OPERATOR AGREEMENT ME~lDIAN CITY/SERVICE TRANSPORTATION INC. - 24 .t: ; - -----'> r E y: h " ~ ; ~ t r B II CORPORATE RESOLUTION I HEREBY CERTIFY, that I am the duly elected and qualified Secretary of Gemtone, Inc. and the keeper of the records and corporate sealtbf said corporation; that the following is a true and correct copy of resolutions adopted at a meeting of the Board of Directors thereof held in aC~l'~nce with its By-Laws at its offices at Boise, Idaho on the~ day of September, 1991, and that the same are now in full force. COpy OF RESOLUTIONS 'BE IT RESOLVED, that the President or Secretary of this corporation, or their/his successors in office, or anyone of them be and they/he hereby are/is authorized for, on behalf of, and in the name of this Corporation to: immediately commence with the inclusion of the I. Treasure Valley Business Center property (see attached plat) at Meridian, Idaho into the classification of either: A. A General Purpose, Foreign-Trade Zone, or~ B. A Remote Site, General Purpose, Foreign-Trade Zone, or; C. A Sub-Zone, General Purpose, Foreign-Trade Zone, as authorized by the u.s. customs Department. II. Execute in such form as may be required all applications, letters and other evidences of such a process.' 'RESOLVED FURTHER, that this resolution shall continue in force, and said Firm may consider the holders of said offices and their signatures, respectively, to be and continue as set forth in the certificate of the Secretary of this corporation accompanying a copy of this resolution when delivered to said Firm or in any similar subsequent certificate, until notice to the contrary in writing is duly served on said Firm.' I HEREBY FURTHER CERTIFY, that the following named persons have been duly elected to the offices set opposite their respective names, that they continue to hold these offices at the present CORPORATE RESOLUTION -- 1 , time, and that the signatures appearing hereon are the genuine, original signatures of'each respectively: ~~ tS7~(;/ EugenK D. Heil ~ '" President . . ~~/;.M Thomas T. Wright ., Secretary/Treasurer IN WITNESS WHEREOF, I have hereunto affixed my name as Secretary and have caus~~he corporate seal of said Corporation to be hereto affixed this '?!! day of ~~tE:,-e , 1991. - ~~- ), p; . Thomas T. Wr1ght, IMPRINT SEAL HERE I hereby certify that I am a Director of said Corporation and that the foregoing is a correct copy of resolutions passed as therein set forth, and that the same are now in full force. ~~ t3Y~ Eugene ~. Heil, President CORPORATE RESOLUTION 2 /' .. .. - - - - .. .. - - - .. - .. .. - .. - .. - .. .. - .. - - RE PHASE TREAS, :: 11 I' ~ : 1 BUSINE~S :: , I 'I .. 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