HomeMy WebLinkAbout2003 04-22 Pre
Meridian City Pre-Council Meeting April 22, 2003
The Pre-Council Meeting of the Meridian City Council was called to order at 5:30
P.M. on Tuesday, April 22, 2003, by Mayor Robert Corrie.
Members Present: Robert Corrie, Cherie McCandless, Keith Bird, Tammy de
Weerd and Bill Nary
Others Present: Gary Smith, Stacy Kilchenmann, Kenny Bowers, Bill Nichols,
Brad Hawkins-Clark and Will Berg
Item 1. Roll-call Attendance:
X Tammy de Weerd X Bill Nary
X Cherie McCandless X Keith Bird
X Mayor Robert Corrie
Corrie: I will open the Pre-Council Meeting agenda Tuesday April the 22, 2003 at
5:30 City Council Chambers. At this time I would like to have the City Clerk give
roll-call attendance please.
Item 2. Adoption of the Agenda:
Corrie: Adoption of the agenda.
Bird: Mr. Mayor.
Corrie: Mr. Bird.
Bird: I move that we adopt the agenda of the Pre-Council meeting as published.
De Weerd: Second.
Corrie: Motion made and second. Any further discussion? Hearing none. All
those in favor say aye. All ayes, motion carried. Item number three is expanding
metro valley transit. Are they here yet? Okay.
Item 4. Update of Goals, Objectives and Marketing for the BMEDC
Program by Shirl Boyce:
Corrie: Lets go right up to update goals objectives and marketing for the BMEDC
program by Shirl Boyce. Shirl welcome.
Boyce: Mr. Mayor, members of the Council. Thank you its really a pleasure to
be here. (Inaudible) clerk has handed out three pieces, I promise you that I will
not go though each one of those in detail. The top one, the new business
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April 22, 2003
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attraction piece I think is the important one. We’ll go over that. We are very
pleased I must say to have the support of Meridian with the other members
through out the valley. Just about a week and a half ago I was invited to go back
to Kalamazoo Michigan and talk to them about what it is we do out here. And
why we have been successful. What they have done back there in their smart
zones is they are trying to rejuvenate their economy if you will and they created
these smart zones to provide (inaudible) for research and development. But the
one thing they have not done well is – at least what they were telling me – was
creating the partnerships and they wanted to know what we were doing and I
think one of the things that we have in this valley and that we have become noted
for which I though was interesting. I didn’t go out and ask them to ask me to
come to speak, they came to us because we have demonstrated a collective
(inaudible) in this valley and this is what we are all about doing. What you have
in front of you are, there are three major pieces to the Boise Metro Economical
Development Council. One is the new business attraction piece and that these
are our actually mission our goals and our work programs for 2003 and I’ll go
down through the new business attraction. But I also want to call your attention
to the other two because they are important pieces of our job in trying to help
maintain a strong economy. One is the Retention Expansion Committee,
members again through although when we started the organization with the
BMEDC (Boise Metro Economical Development Council) we were looking
primarily at new business attraction. What we have done you may recall a series
of development summit task force to force summits to bring together the
development officials and real estate folks from around the valley as well to
discuss issues and we are going to continue doing that providing a dialog. I think
the dialog is very important, its very much like what we have seen with the
leadership conference and Council lady De Weerd was at it this last time just
recently this last week and Mayor Corrie has participated, some of the others
may have. It’s a very good thing and that’s what this development is all about,
the development summit is all about. One of the things that will either make or
break us over the long run is going to be our ability to cooperate and to resolve
issues. When businesses look at us, and indeed when our existing businesses
look at us, they are looking at us as a region, each one of the communities and
Meridian’s no different must be concerned about their tax base. But when we are
working at attracting businesses and keeping the businesses they are looking at
what resources are brought about in the region. But it’s also important that each
one of the communities develop their own identity because this provides choices
as Dan Stevens who is just the recent (inaudible) of the Economic Development
Council said its very much like a ball if you will where people have choices. And
a colleague of mine was writing a story about bringing Bayer aspirin to Kansas
City and they have been thrown into the mix just to keep the research triangle
honest back in North Carolina and they were asked to show some properties
outside their jurisdiction. They said no, they went to Kansas City and low and
behold Kansas City walked away with a significant prize and so I think it
underscores the importance of what it is we’re doing it with cooperative nature.
Lets get to the new business and I’d like to make a few more comments and then
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April 22, 2003
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the venture capital piece is an important piece of it. I cannot go into a lot of detail
but its very important. We are in the top 20 of small metro areas in the United
States for business start out. And of the things that Ray Smileck did in one of our
BMEDC annual meetings said that we must prepare and make sure we have the
infrastructure to nurture these businesses so they don’t go somewhere else. And
its interesting interplay in trying to bring new businesses to the area and helping
existing businesses grow and flourish in the area. And we are seeing now third
generation companies that are staying here from the high tech community. If we
look at Proclarity which is a little company in some of the most difficult economic
times in the world has over 50 percent of the worlds market in the niche that they
have developed with their business software platform. Those are the kinds of
people we want to keep around and I can tell you that when they got for their
rounds of mezzanine financing they are being lobbied for hard to go where the
dollars are. So we want to do everything we can to keep them here. To give you
an idea of what it is we are doing there we will have our fifth venture forum in
October, which is an important piece of what we are doing. This last year we had
equity investors that represented over four billion dollars in equity investments
that attended that which is just absolutely unusual for an area starting out as we
did. We started out cold and so we are really looking forward to that being a
major piece. I might say that the three companies that presented are also
looking at us and looking at this area as potential locations. So there’s kind of a
double benefit there. I’ll just direct your attention very quickly to the new
business piece. Under the first goal in looking at continue to refine the BMEDC
website and data points, what that simply means is we have gone to using a –
they are trying to standardize the data points by which communities are
compared with one another, we’ve been doing that. But the important thing with
the BMEDC website we are now working on a website that is going to be a stand
alone website for the BMEDC but it will also have listed in there all of our
communities that are part of it. So it will be showing as a post script it will be – we
haven’t decided on a name change or anything yet but we will have we are
working on right now a stand alone website.
De Weerd: Mr. Mayor.
Corrie: Mrs. de Weerd.
De Weerd: On the website since it will be the BMEDC you’ll probably have links
to the individual websites but how will you package the region as a whole?
Boyce: That’s what we are going to have to address. What we are probably
going to do in the beginning is to post script each one in the title. Post script
each one of the membership communities. One of the issues we have to keep in
mind when we are doing this, this is always a difficult thing because we have had
some that have wanted to call it the Treasure Valley Economic Development
Council, problem is nobody knows where the Treasure Valley outside the
Treasure Valley. And so Boise is there but I think by putting that post script in
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there and changing a few things it’s really going to give it its own identity and the
identity of the communities. But this is one thing I think is important Tammy is
that we also – that’s why we have the members around the table to help design
that. I mean we don’t have some great big design in the sky we are going to put
forth. We are going to put this together as a heave of people. So but yes that is
a really good point.
(Inaudible discussion amongst council members)
Boyce: The second thing I would point your attention too is we’ve put together a
task force to put together a marketing and promotion plan and were a little bit
behind on doing that. Unfortunately we also have to take care of the inquires that
are coming in and we’ve finished what we call the cluster analysis which is
looking at what is already here. We are in the throws right now of doing an
incentive analysis and the infrastructure inventory looking at the availability of
properties and everything throughout the valley and our individual partners. We
hope to, our goal is to have this finished by the end of the second quarter. What
this all means is that we need to look at what kinds of industries we need to
market too. We need to number one understand what’s changed in our nations
economy and what are the empty growth industry’s and then develop a
marketing plan for that and this task force includes members, this is now
something we are doing just as a staff, this taskforce is being lead by the
members of the new business attraction committee and there’s representatives
around that table from each one of our member cities, Meridian included. So
we’ll be coming back with a much more detailed report on that we’ll be asking
each individual cities or cities to provide us with some infrastructure information
so that we can include it in our analysis. We have to be ready to talk about that
as well. And then I think finally, I don’t want to bore you with a lot of detail the
other important thing that we continue to work on is developing the process for
sharing the information. One of the things that happens, there is always a
concern about are we taking the cream and giving the chafe if you will or taking
the wheat and giving the chafe to whomever it just doesn’t work that way but as
you’ll see and I’ll make a quick short report here about what’s happened thus far
this year. We require the people that we contact to look throughout the valley
whenever we do have an inquiry and so far this year we’ve had – excuse me let
me grab my notes here so I don’t stumble around – so far we’ve had 47 inquires,
20 of those have been what we call new business attraction these are the hot
ones these are the ones that people are working and out there nine have asked
us for areas for properties and of those nine seven Meridian has been included in
seven of those up to date. In fact on Tuesday we will have a site visit here and
it’s a 500 person 70,000 square foot, they are talking about 70,000 square feet
I’ve got 10 to 13 acres to start with a call center. It’s a fortune 1000 company, I
don’t know who it is, it’s coming through the Stawback Company but we’ll be
looking at what Sundance has done what Winston Moore has done and what
Mike Ferry and his people have done. Also I’m going to try and show them again
the Micron PC building because if that’s still up its still a reasonably good facility
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with that. But this company as I understand it and what we have to go on is what
the folks tell us from the consulting firm is that this company wants to build its
own they have their own process. Their own building type structure or style that
has worked well for them so they are going to be looking at that possibility.
These things always change as we were putting things together I got a call from
the consultant this morning and he said also if you have any existing buildings
throw those in there just as a sidebar so we tried to do that. So that’s basically
where we are going. I don’t want to bore you with a lot of details I think to give
you an idea of what we are accountable for and any questions?
De Weerd: Mr. Mayor.
Corrie: Mrs. de Weerd.
De Weerd: I had asked Shirl since we are a funding partner of the BMEDC to
come and share their goals and some of the things that they are doing but as I
understand it in developing your marketing plan and tools for attracting new
businesses that there’s consideration to come to the communities not just for
infrastructure information but also for possible funding.
Boyce: Mr. Mayor, Councilwoman De Weerd. Yes. One of the things that we
will be doing is we’re considering having a firm come in to raise the funds for that
but it won’t be just the communities it will be looking at the business community
we will be taking a pretty good chunk of that. Our budget is really over 300,000
dollars which is really not that much and when you get involved in economic
development and the external marketing it gets pretty expensive and we are just
as a number walking around at this particular time are looking at maybe raising a
half a million dollars over the next three to five years to do that marketing which
is quite a bit less. When we had Dennis Donovan in who spoke to us here it was
about three years ago, two and a half years ago. One of the questions, we tried
to bring in a (inaudible) location consultant or an expert from around the country
and ask them what do you think we need to do. We collectively in the valley, not
just Boise, need to do to be competitive for the next 20 to 30 years and one of
the things Dennis said and he’s probably one of the most respected (inaudible)
consultants in the country and I thought I was going to lose my job over this one,
he says the BMEDC needs a billion dollars a year minimum. I was thinking to
myself we are not going to go there we don’t really need to. One of the things
that we’ve been really very fortunate in doing is being able to utilize the
(inaudible) variety if you will by the magazines and in the newspapers. If you
look at Newsweek in 1998 on the front of that thing it had Boise on the thing as
look Silicon Valley we are coming after you. We’ve been fairly fortunate with
those things, you can’t rely on them. Marketing in this business is not a cheap
thing to do. We don’t need to go out and spend a million dollars on (inaudible)
but we will very likely we’ll have a professional come in to raise the funds.
(Inaudible) with the state and what’s happening in eastern Idaho (inaudible) the
technology corridor from Pocatello to Idaho Falls. Just in the last few months in
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the Twin Falls, Jerome, Minidoka area they have now gone through their third
iteration that’s called business plus one, business plus two now business three
and they have raised just a little over two million dollars over there in that effort
and we have a lot to talk about, we have a lot to talk about with our partners.
That’s not going to be a decision that certainly I’m going to make alone its going
to be our partners around the table that are going to part of doing that and of
course the BMEDC Board which includes all the partners but this what we are
planning to do. We simply have to get back into the market place if we are going
to be competitive they have to know that we are open for business.
De Weerd: Do you put out an annual report and track the numbers of inquires?
Boyce: Yes.
De Weerd: How many actually successfully land here and jobs created and that
sort of thing?
Boyce: The best we possibly can. We track the number of locations and we
usually report that at the end of the year the very beginning or the end of the year
to the board and we can certainly provide that we certainly can. The issue that
we have in Idaho that makes it very difficult to track those things is we are the
only states in the United States that doesn’t have a business directory and when
we deal with a business and maybe its 18 months two years before they make a
decision. If we don’t walk them and stay with them all that time which we simply
can’t do because of the sheer volume. You don’t know what’s happening and
they may incorporate in the state or do a DBA as a different name and so we try
our best and the ones that we – and we don’t shoot at everything that flies and
we don’t claim everything that falls. I mean certainly we have had some impact
but we the answer is yes we keep track and we do name the ones that we know
about and we do keep track of all of the inquires that we handle. They’re
maintained very confidential but as I have said from the very beginning any of the
partners are more then willing and (inaudible) partnership are more then willing to
come and look at those. It’s only at a confidential basis. We don’t print them
because and we don’t provide a lot of information on those things publicly
because this is presensitive information for businesses but our partners are sure
able to come and take a look at it.
McCandless: Mr. Mayor.
Corrie: Mrs. McCandless.
McCandless: Do you work at all with the efforts that the state has in economic
development?
Boyce: Mr. Mayor, yes lady McCandless. Yes indeed we work very closely with
the Department of Commerce. One of the things that we do as an example when
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we have a visitors comment that’s appropriate. When I say appropriate it’s the
people who come into the area they tell us what they want and so we comply
with that. But we have a Department of Commerce there quite regularly we have
people to explain the workforce investments funds any of the incentives that the
state has in where appropriate we’ll try to bring the Governor in we’ll try to bring
the director of the Department of Commerce. So much of that depends upon the
clients. In the beginning stages they don’t like a lot of fan fair but there is
appropriate times for that and we try to work as closely as possible with them yes
we do. I think its just imperative that we work together with everyone in the state
not just here but with everyone in the state. In terms of our marketing who we
are we need to be doing that as a region and then also recognizing the really
unique communities that we have too and that’s why its important for each
community to have its own identity.
Corrie: Anything else? Thank you Shirl for bringing us the update. I appreciate
that.
Item 3. Expanding Metro Valley Transit and Budget Request by
Catherine Sanchez:
Corrie: Catherine is here. So Catherine would you like to expand the Metro
Valley Transit budget request?
Sanchez: Sure. What I’m passing out is the (inaudible) change. I had an
opportunity to meet with Mayor Corrie earlier this month and I shared that with
(inaudible) who of course in turn called and harassed me for the next week
because they didn’t like it. So we took their feedback and I actually went out and
rode the buses last Thursday evening and (inaudible) about the request. Wanted
to find out where they are currently riding from, where they are going to, what
times they ride and how the proposed changes would impact them. We took that
information reworked the schedule I think that this is a much more user friendly
schedule. It still allows us to serve Boise State University both in Boise as well
as in Nampa but actually reduces the amount of time that they are on the bus.
And I went out and rode the bus, four of the five buses this evening and
everybody was ecstatic so I was very glad to be able to report that. I said thank
you so much I have to go to the City of Meridian now and so I’m very pleased
that I can honestly say that they are very happy with the new changes. The one
thing you will notice is that we’ve moved the Gem Street Park and Ride over to
Overland and as with anything some people are very pleased with it there are a
few people who are not happy because they live within the city limits and so
having to drive over to Overland across the interstate is an inconvenience. But
when the original schedule is set up that was the intent all along was that once
the park and ride was built and the signal was installed at the interchange that we
would move that park and ride over to the official 118 space beautiful park and
ride. So I think they are adjusting to it I don’t know if I really shocked them last
week and so they were just so thankful that this new schedule was more in line
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with what their existing service is or we really tried to do a good thing when we
made the changes. We were hoping to bring on some new rider ship so. I would
stand for any questions on this?
Corrie: (Inaudible) are you anticipating any problems of that park and ride on
Overland because of that widening of the five lanes on Overland?
Sanchez: No and that’s why we aren’t – we’ll actually use the park and ride but
we will come back out on the interstate and take the interstate to the Saint Luke’s
in Meridian. The intent is that once that construction project is complete that we
would use Overland rather then hopping back on to the interstate which I think
will be a much more efficient route.
Corrie: (Inaudible) other way whenever it gets done.
Sanchez: Yeah. And we are hoping for the fall. So we will give everybody about
six months with this and I’ve mentioned that when riding with them that you know
this is six months we will make the tweaks that we need to. We are at a position
now where the Y mitigation project is about to come to an end in the next year or
so. I’ve requested revenue that would increase or allow us to extend this service
for a whole other year. I’ll find out on Thursday whether I get that money or not.
If I do everything is wonderful for another year. The current funding is 92.66
percent federal 7.34 percent local requirement. When we get to a point where
the mitigation money has dried up and the project is complete we turn it over to a
5307 FTA funded bus system, which is a 50 percent federal 50 percent local. So
with this I tried to bring in other partners. Boise State University, the original
proposal included Saint Alphonsus but I have requested money from Saint
Alphonsus as well as Mercy Medical in Nampa. I requested money from Saint
Luke’s and I’m trying to come up with a local match using private organizations to
help and if we can do it before we actually need it then it makes the hit a little
less harsh come 04 or 05 depending on how my funding goes Thursday. So
Saint Luke’s has declined they are unable to participate at this time. Saint
Alphonsus originally declined and I sent them another letter in writing or another
request in writing. BSU is looking promising and Mercy Medical is looking
promising so 50 percent isn’t so bad.
Corrie: Mr. Nary you had something.
Nary: (Inaudible) Mr. Mayor. So the park and ride lot right now on Overland the
access isn’t problematic with people trying to get in and out of there with all that
construction going on because that’s supposed to go on the entire year so.
Sanchez: Yes into the fall. No I have run this by our traffic engineering and they
don’t see a problem with it. We obviously couldn’t use Overland because it’s
(inaudible) through traffic but the park and ride should be fine.
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Nary: The other question I have on some of these partnerships that you are
looking at. Are these other places I’m assuming in looking at your map here that
these locations are pick up points right? Karcher Mall –
Sanchez: Yes.
Nary: -- and all those places. So are these places where the pick up and drop
off points are they participants and partners. I mean Karcher Mall and State
Police.
Sanchez: No not Karcher Mall in fact originally when we started this service a
few years ago we tried being on the partner you know City of Boise and we
looked at Karcher Mall and all of those folks. Karcher’s probably not as likely
because we aren’t really bringing people to them I mean in theory we are but in
practice we aren’t yet. I think if we could actually show them some people that
were coming to their facility to shop that they may be more willing to participate.
Nary: They don’t think even those riders coming home from work don’t go there.
I mean it seems to me that all of these places that don’t want to participate
maybe don’t need a stop there. Unless the stop there works for other reasons –
Sanchez: Right.
Nary: -- but to me certainly United Heritage and some of these other ones I
mean we are bringing their workers right there. They should certainly be wanting
to participate in that.
Sanchez: And I would agree. Karcher Mall is an interesting organization in that,
we actually had a really nice park and ride at Karcher and it was right up front
and easily accessible by commuters. They decided that we were taking up their
shoppers parking and so they put us in back out in the back 40 where we had
problems with vandalism and things like that so it’s a work in progress.
Nary: Is Edwards lot owned by them?
Sanchez: The Edwards?
Nary: Where Edwards cinema is.
Sanchez: No.
Nary: Maybe they would be more willing to be a partner and move the park and
ride over there.
Sanchez: Yeah.
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Nary: If Karcher Mall doesn’t want to do that.
Sanchez: That is a good point.
Nary: Because those people – again there’s restaurants and movie theaters and
people coming home from work would certainly be some attraction to the place.
Sanchez: And now would be the time to approach those folks I would think as
we are making other route changes. That is a good point thank you.
Corrie: Are these numbers one two three four five and then six seven – are
those buses?
Sanchez: We have five buses that will be serving these. Those are the route
numbers because on the survey that I sent out I asked them to identify which
routes they would be riding. You’ll notice that number six and seven are stared
and that’s because if I’m unable to secure the funds necessary then we will no
longer be able to serve those routes. We were attempting to replace the mid day
service that was lost in March because I do think that it’s a complimentary
service for our commuter service. Its nice for people to be able to leave mid day
and go home. So if at all possible I’m really hoping to be able to keep those and
that’s where the partners would come in, Boise State and the other folks, an
alternative to an alternative, alternative one and alternative two that are
highlighted in yellow. We aren’t sure which is going to solicit the most riders and
so that was part of the survey as well. Currently we have the earlier run, which
would be identified as alternative one on this sheet of paper, but it seems like
alternative two would be a viable option also. So we are hoping to get some
feedback on those. It was fun riding the routes those buses are full. I called Teri
Lindenburgh of Treasure Valley Transit before I came over this evening and I
said you know Terry we are going to have to get bigger buses. If we keep
growing and she said I know but that is a good problem to have.
Corrie: It certainly is that’s for sure. Okay any other questions on the
scheduling.
Bird: I have none.
Corrie: You were going to mention something about the budget?
Sanchez: I guess I kind of wanted to talk to you about the budget. In light of – I
guess I’m really worried about long term where this is going and I’d love to be
able to continue this service and I know Valley Ride is working really hard on a
dedicated funding source and then until we get that we have to be real creative
and so the partnerships with the private organizations. The major employers in
the area I think are going to be critical. Meridian has been a partner from the
beginning and they saw the vision and we appreciate all the support that you’ve
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provided. I did by the way correct the rumor that was going around about, is the
City of Meridian stepping away from the table on negotiations. I actually had
somebody point blank ask me they said well we heard that the City of Meridian
just doesn’t want to support this any longer. And I said whoever said that was
absolutely wrong and I mentioned that you have up’d the support from 17,500
last year to 30,000 this year and they were shocked and they were pleased. So I
did stop that rumor. I’m hoping this next year for a nominal increase three
percent you know I’m trying to continue to support the program keeping in mind
the realities of the local level and the budget issues that you all face but just
know that we are going to have to do something pretty quick and we are looking
about a year if I get my funding for the Y. So I will work really hard and I
appreciate your support thus far and hope we can count on that again next year.
So.
Corrie: Evidently you did a good job those people quite calling me.
Sanchez: Good, good. I got a whole bunch too. I put on the legal notice my
direct line, I don’t think that I will do that again.
Corrie: Okay any other questions?
De Weerd: I appreciate your service.
Sanchez: Thank you.
Corrie: Thank you very much for your presentation and we’ll get back and see
what we can do here.
Sanchez: Thank you.
Item 9.Discussion of Sanitary Services Company Proposal for New
Fee:
Corrie: The next one is – well since these guysat Sanitary Services have been
sitting here if you don’t mind we’ll take them out of character so.
De Weerd: I think they should have to wait.
Corrie: Steve and Bill you’re on.
Sedlacek: Thank you Mr. Mayor members of the Council. My apologies to city
staff I guess for jumping in the middle of this. Basically what we are here to talk
about tonight from our perspective is a new rate to be added to our rate
schedule. We are running into a situation where we are having more and more
customers not a lot 10 maybe 20 of these are customers that are going out and
purchasing their own toter carts. We have a 95 gallon toter cart program in the
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city where you pay 2.48 cents a month and we supply the cart and we dump it
every week no matter how full it is. Plus if they have more waste we take that
too. Well somehow these people have gone out and purchased carts I don’t
know where they are buying them they are very expensive 75, 80 maybe 100
dollars each. Well that is a lot to pay for a garbage can. The way they’ve
handled this in the past is if they don’t get the cart from us we don’t dump it then
we call them up and say well you have to get a cart from us but we aren’t sure
what they do with the cart they have purchased. Certainly if they brought a cart
in from another city say such as a BFI cart from Boise we don’t dump those at all
we’ll call BFI and they’ll come pick them up and take them back because those
are owned by BFI. So we are in a situation now where some people are buying
these carts we don’t really have a rate to dump them. So what we wanted to
know from the Council is would you entertain a public hearing where we discuss
this, the rate to dump them we’ve suggested being 1.58 cents. That’s about a
dollar and a half for us after the six percent franchise fee is taken out by the city.
That pays for the maintenance and the operation the capital costs for the tipping
mechanisms that we’ve had to buy in retro fit on all the backs of the trucks. I
suspect that people have tried to get out of the 2.48 cent fee by buying these
carts. Thinking they are going to save 2.50 a month they are going to pay for
their cart eventually. The problem for us is we’ve still got a capital investment on
part of the trucks especially in the back end of the truck to provide the service.
So it can’t be free but then again it probably isn’t 2.50 cents either so that’s the
situation we are in and we have a tentative I guess public hearing date is that
th
right Will. May 6, two weeks from today. If the Council is interested in this sort
of thing or I guess the alternative is we’ll just tell people that were not dumping
their privately owned toter carts and if they want to be in the toter cart (inaudible)
they have to get one from us. I don’t know we need to do that but it’s whatever
your pleasure is.
Corrie: And those people who don’t have carts and don’t ask for carts are just
putting their stuff out there and picking those up.
Sedlacek: The cart program is completely voluntary. If you want to go out and
buy your own cart you’ll have to and its still voluntary and this would be a
voluntary rate the 1.58. One thing to make you aware of is if someone does buy
their own cart we are going to have them sign a waiver before we dump it. We
don’t want the city or Sanitary Services responsible for it. We aren’t sure that its
going to fit our tipping plates, typically they do because it’s a industry standard
but we don’t know what its made out of we don’t know if its going to last a year a
week or a decade. Some of them break some of them don’t I mean.
De Weerd: I’ve seen the way they bang them.
Sedlacek: Right. They take a lot of abuse they have to be robust and we buy
ones – we’ve had some trouble with the ones we have bought in the past and
we’ve picked them up for free and give them a new one.
Meridian City Pre-Council Meeting
April 22, 2003
Page 13 of 32
Corrie: It would be nice if they had their own cart and it would break and then
you give them a good one and then they don’t have to pay anything because its
their cart.
Sedlacek: They are going to have to pay more per month.
Corrie: Mr. Nary.
Nary: You know I guess being one of those that has the carts. I guess I’m afraid
of trying to be this all things to all people. I mean I think its better what you are
doing now. In saying this is what our program is our program is this cart
program. You want to be a part of that it’s 2.48 a month but trying to do this I
mean its almost, as a person who pays the 2.48 it kind of bothers me that
someone can go out and buy his own cart and pay a 1.58. You know if they want
to be a part of that that’s what the program is you don’t have to fit everything
single thing out there. Enforcement seems to me for you guys a nightmare. I
guarantee you’re going to get people saying I didn’t put the cart out this week so I
don’t want to pay 1.58 for the whole month because I only put it out twice this
month. I mean it seems (inaudible). I know they will agree to it but it just seems
nightmarish and I think what you are doing now is really the right way to deal with
it. Saying this is our program.
Sedlacek: There certainly is more consistency with the program as it is now.
The color of the carts is all consistent they look pretty much the same you know
people can go out and buy black ones and pink ones and red candy striped ones
or whatever they want I don’t know if that’s in the cities interest or not. Really we
are the heavy lifters, it’s your program we would be happy to do it either way.
We are running into more and more of this. It’s something that we just need to
address really.
Nary: It seems to me that if you put the notices like even in the billing whether its
through the utility billing putting a notice in there saying we will not pick up other
carts. We will only pick up ours. And you know reminding people like the Mayor
said I mean you put your trash can out it won’t cost you anything other then just
the basic rate. It doesn’t cost you more to do that so that people understand that
buying that is not an incentive it just seems like what’s going to happen is that
your going to be coming back saying well now we have to have two different
types of systems because we have the majority of these private ones now for the
different system so now we have to have a different truck to go to those houses I
mean it just seems like more hassle then what its worth. We created a program
we agreed to the program with the tip of the cards. People don’t have to
participate if they don’t want to and I don’t know what your usage is now but – it
seems like all we are going to do is try and carve out an exception for some folks
and then someone else will have something else.
Meridian City Pre-Council Meeting
April 22, 2003
Page 14 of 32
Sedlacek: This is not an economic exception that is going to work for a
homeowner when they find out they’ve still got to pay the 1.58 they are going to
away from this system like mad. But we want to be able to tell them what – I
guess our sense was we ought to be able to tell them that it does cost them
some money. So they won’t try to sneak a privately owned one in and get that
service for no money.
Nary: Are you saying that because people can buy greens ones and then the –
Sedlacek: No.
Nary: -- your guys picking it up would know.
Sedlacek: Right.
Nary: But if they look similar then.
Sedlacek: Ours are all hot stamped and we know what’s ours and what’s not
ours. I don’t think – right now we might have 20 homeowners that want it. It’s
probably not going to be a big headache to keep track of them but is it more of a
headache, yes. Is it more inconsistent, yes? Is it crazy for someone to do it, yes?
Will people keep doing it , yes.
Nary: Like I said for me I guess I would rather not offer some alternative I would
just tell them no. And you know they will get the idea because you won’t pick it
up and it will just be sitting there.
Sedlacek: Okay.
Gregory: One of the problems we’ve had is we’ve had a number of residential
customers over the last two years that have a lot of them from other
communities, from other cities. Whether it be from Oregon, California, they’ve
got three or four of them sitting at their house and they want us to service those.
Corrie: They had to buy them, we don’t.
Gregory: They bought them or they just took them.
Corrie: It sounds to me like this is a good idea. Just put it in our billing system
then you won’t pick them up and we aren’t going to make any changes and let
them and you only got 20 people or so that you are dealing with here. (Inaudible)
what you are doing anyway. So you might as well just up front say you aren’t
going to do it I mean its up to the Council but we don’t have to have a public
hearing to tell them no.
Meridian City Pre-Council Meeting
April 22, 2003
Page 15 of 32
Sedlacek: If there are carts from other cities and we can see there are hot
stamps like a BFI or a waste management. There was one from Coeur d’ Alene
that came down here. We don’t dump those we know those aren’t owned by the
homeowner. We will collect those and return those.
Corrie: Send them back.
Sedlacek: Send them back, right.
(Inaudible discussion)
Corrie: They move around like shopping carts.
De Weerd: Mr. Mayor.
Corrie: Mrs. de Weerd.
De Weerd: You know I appreciate you trying to offer choices but I think that the
nightmare that it would cause our billing and your tracking and all of that. I think
the customer service is the more simple the better you know and when a
garbage can is over a certain size you need a toter and they can rent those for a
certain cost and keep it simple.
Sedlacek: That’s certainly the simpler way. We are just trying to be nice to
everybody.
De Weerd: I know.
Corrie: Mr. Nary.
Nary: Or do it the opposite. Free for the toter and five dollars if you want to
empty your own. Then it would make some more disincentive to say –
Sedlacek: Say that again. Free –
Nary: Make the toters free, not because I have one, but for example what you
want is a disincentive to do that now I think the easiest disincentive is what you
are doing which is saying we’re not going to dump it.
Sedlacek: Okay.
Corrie: I don’t think they want to get free toters.
Nary: I don’t think you do either. I would be more inclined to say do that and
discourage that the (inaudible) that’s not economical. That’s not a good idea.
Meridian City Pre-Council Meeting
April 22, 2003
Page 16 of 32
Gregory: We had a call from a neighborhood association a couple weeks ago.
They wanted a name and number of a manufacturer so they could buy their own
for the neighborhood association. We’ll I could give that to you but you are going
to wind up spending 100 to 125 dollars a piece for them and I still need
compensated for this 6,000 dollar piece of equipment I have on the back of the
truck that is very high maintenance that I need compensation for. To try and
discourage them I guess.
De Weerd: You replace them.
Gregory: We didn’t want to just say flat out just say no to everybody not that
there’s a lot.
Corrie: Why don’t we get together and figure out the verbiage and we’ll put it on
the sewer, water trash and (inaudible) know about it and then the telephone calls
come into my office and (inaudible). If that satisfies everybody else?
McCandless: You guys are too nice.
Corrie: Okay that is what we will do and you are on still for the 2.48 and you
don’t pick the others up and if they’ll call we’ll let them know (inaudible).
Sedlacek: And I guess you can cancel that.
th
Corrie: Yeah we will cancel the May 6.
Sedlacek: Thank you very much for your time.
Corrie: Thank you guys. Appreciate it.
Item 5. Well Lot Acquisition from Sundance Development in
Silverstone Subdivision by Brad Watson:
Corrie: I think Brad Watson on Silverstone’s here right. Okay why don’t we have
them next and we’ll get to chamber.
Watson: Thank you Mr. Mayor, Council members. I think I used a lot of your
time last week and we’ve got some additional information this week that should
make this fairly short and sweet. Will is handing out a copy of the lease
agreement for the well site to you. This goes back a little over a year and a half
to when this was approved by City Council. If we look at the bottom of page one
and the top of page two it is very specific in that latecomer agreement for where
this well site would be developed. Perhaps the only question tonight is it seemed
that last week Council had some questions about the cost that I had brought up.
As you recall we have some correspondence back and forth intimating a per
square foot price of five dollars and I think at that point you had asked me to
Meridian City Pre-Council Meeting
April 22, 2003
Page 17 of 32
invite Ryan Anderson to come speak or answer some questions if you had any.
There are a few legal questions here that probably need addressed but I can
probably do that outside of this meeting, that talk about receipts of deeds and
preliminary title reports and that sort of thing. So with that if you have any
questions for me I’d be happy to answer those. Mr. Anderson is here as well.
Bird: Mr. Mayor.
Corrie: Mr. Bird.
Bird: (Inaudible) reading through this but we still are at five dollars a square foot
for the purchase price.
Watson: Councilman Bird that is correct. That is the Sundance Company’s
understanding and evidently at some point in time, February of 2002, there
evidently was another conversation at a pre construction meeting talking about
that and this memo was cc’d to me at the time too. So.
Bird: Is Ryan or the Sundance Company wiling to discount a little for cash? Has
anybody talked to Ryan or Roger –
(End of side one)
Watson: -- to them at all about that and Ryan is definitely here if you would like
to address that to him.
Anderson: Good evening.
Corrie: Name and address please.
Anderson: Ryan Anderson with the Sundance Company. I live at 1453
Shellbrook Drive here in Meridian. In answer to Mr. Birds question. We can
certainly take a look at it. We have done a discounted price and we came up
with the five dollars. At this point we feel that the price is fair and better as an
example we are going through several purchases now and they have been
running between seven and a half dollars and about twelve dollars. Our ACHD
agreements with them are also about the seven dollars for the same area.
Bird: But I think Ryan our biggest concern on the Council is we don’t like these
latecomer development agreements. They are a nightmare for our bookkeeping
and I for one would just like to get a purchase price and if you know – if you can
discount some for cash up front we certainly appreciate it and get the thing taken
care of and forget about the latecomer agreement.
Meridian City Pre-Council Meeting
April 22, 2003
Page 18 of 32
Anderson: We talked with Bruce about. He wanted to know if there were a
couple of other options that certainly direct reimbursements certainly in our best
interest as well.
Bird: And I think just in the best interest of the city not to get into a latecomer fee
on a well lot myself personally. That’s my –
Anderson: Okay.
Nary: Mr. Mayor.
Corrie: Mr. Nary.
Nary: And is that five dollars per square foot, is that the pre development cost?
Anderson: That was the number we came up when we went through both the
lease agreement and speaking with Bruce and Brad coming up with a number
that was fair to all parties and discounted to the city to give that much more
(inaudible) deal accomplished and complete.
De Weerd: Mr. Mayor.
Corrie: Yes. Mrs. de Weerd.
De Weerd: I guess I go back to what do we traditionally do? You know why are
we finding ourselves. I know we do this with the sewer but not with the water. Is
this one of the few that the lot hasn’t been donated as part of the development.
Corrie: Brad.
Watson: Mr. Mayor and Council member De Weerd. It’s the only one that has
never been donated and when this project came to town there were numerous
and buried conversations about a variety of things and I’m sure this was one of
them. They needed the well there to provide fire flow to their buildings. But
directly answering your question this is the only one that has never been
donated. But we approved the lease so.
De Weerd: Well the lease is something different than a purchase.
Watson: If I may explain that a little bit. The process that we go through before
the plat is actually recorded we can’t acquire title to that lot but we need to begin
drilling and constructing the well prior to recording of the plat so we put together
these lease agreements to get us by until the time we could legally acquire title to
that property and that’s the purpose of all these leases that you see.
Meridian City Pre-Council Meeting
April 22, 2003
Page 19 of 32
De Weerd: And okay, well I guess the lesson learned here is we can’t help out
the developer in advance anymore until we know what the price we are going to
be charged and I guess my question and maybe that’s why you were asked to be
here is why we are paying above raw land prices on the lot, five dollars a square
foot that’s a lot of money.
Anderson: It actually is a discounted rate for that corner.
De Weerd: But we are not going to operate a business. You know this is to
serve your development this is to provide city services out there. When I look at
paying those kinds of prices it would be if we were an enterprise trying to make
money and what we are doing is trying to provide a service so you can market
your development and we can give it good service. And so I just think this is
something different. It’s certainly setting a precedence at I hope other
developers don’t follow in the footsteps of this because it will cost our citizens
and our community huge amounts and I guess I’m just looking at the bottom line
as I’m sure you are doing but this is something that is serving your development
and I don’t know where five dollars a square foot is a fair price for providing
service to your development.
Corrie: What does this five dollars a square foot, what does it come out too.
Bird: 105,000.
Corrie: 105,000. This may sound like a stupid question but what if we don’t buy
it? And we don’t continue to lease.
Bird: How can you have a well without buying it?
Corrie: Well I mean why should we pay for their water.
De Weerd: We have to.
Bird: When we annexed it and stuff we stayed in our ordinance that we will
furnish water and sewer out to them. I think that this has went on a little different
then 90 percent of it has Mayor but I don’t think you can go back or do this. This
project is certainly bringing a lot more money into us then the cost of this well lot.
Corrie: Are we going to do this for Winston?
Bird: I would hope not but you know I don’t know how you guys are but I might
get beat up once but I’m not going to get beat up the second time. I’ll pay more
attention. And we were in quite a hustle here and in respect to these developers
they’ve always been very, very fair to the City of Meridian. I question the five
dollars too but I’m not out there, it’s not my money out there being spent. You
know until we take our money out of our wallets and walk down and start
Meridian City Pre-Council Meeting
April 22, 2003
Page 20 of 32
something through here then we don’t know what the real costs are and I’ve
never done it so I don’t know. I just would like to get this solved. I don’t like the
latecomer agreement. I’d like to get it purchased and walk on and say we got a
black eye on this one but won’t get us again. Won’t get this guy again.
Nary: Mr. Mayor.
Corrie: Mr. Nary.
Nary: Yeah I think unfortunately you know this is something we can’t really ring
the bell from a year and a half ago you know. That should have been the
discussion a year and a half ago when probably what wasn’t said was we are not
annexing that property unless we have a well site because we are not going to
be able to do it. We have to provide the water necessary for that type of
development without a well site there and if they don’t want to give it to us then
they’ll have to wait until we can afford to do it. And we can’t make them give us
this property but certainly not being able to develop at that time based on our
needs really should have been the discussion maybe that was I don’t know. I
don’t know what was really discussed at that time but that’s probably what should
have been done but I think we are kind of stuck I think the decision is whether or
not that five dollars is appropriate but again I’m like councilman Bird. I don’t
know it sounds like there was that level of discussion with Public Works and that
five dollars was found to be a reasonable amount of money, is that fair Brad
(inaudible)?
Watson: Mayor, Council members. Councilman Nary there is a memo to us I
don’t think there is anything written ever coming from us. Evidently there was a
conversation at a precon that I don’t recollect.
Nary: Pre development costs to me sounds like what you pay for that’s what pre
development sounds like to me. Whatever you pay for it is what we would pay
for it but I don’t know if that was five dollars a square foot or not but that’s what
that means to me. That may not be what it means to everybody else up here but
if I had read this then that’s the way I would’ve read it is whatever you pay for it
not. So there wouldn’t really be a need to negotiate that. You tell us what you
paid for it and we pay for it. But I don’t think we do this much because I think we
have that discussion up front now whether or not we are going to expend the
city’s funds to get water service there at this time and if you want it there faster
your going to have to help pay for the cost and I think that’s the discussion we
had with Mr. Moore with their development.
Bird: I think Mr. Moore and Mr. Anderson have worked out an agreement
between their two properties and water and stuff if I remember right.
Nary: But it sounds like we kind of put our own stuff behind the eight ball. So its
not really something the developer really needs to (inaudible) of but I guess that’s
Meridian City Pre-Council Meeting
April 22, 2003
Page 21 of 32
the only issue to me is whether that is a reasonable price and the way I read that
that’s what that meant to me. Now I don’t know if it means that to anybody else.
And I don’t know what that five dollars is, is that what you paid for it?
Anderson: Well the five dollars is pretty close between our development costs
and the land purchase price. Yes.
Nary: What do you mean its pretty close to the development costs and the land
purchase price?
Anderson: The land purchase price its over the 80 acres and it was done in
three different parcels. So we’ve got that cost (inaudible) develop it and bring it
to the point where it’s usable.
Nary: But this is for pre development so that cost isn’t a factor. So the only cost
is what it costs you to buy this piece? So what this piece costs you was what at
least the way I would interpret this to me. So it doesn’t matter what the
development costs is. It only matters what you paid for it, is what it appears to be
contemplated by this agreement. And is it five dollars a square foot?
Bird: Mr. Mayor.
Corrie: Mr. Bird.
Bird: I think what Mr. Andersons trying to say is they probably before they ever
get a penny out when they buy those 80 acres or 120 or whatever they bought
out there. They probably got pretty close to a million dollars sitting out there of
their own money in development. Getting roads in getting curb and gutters and
all that kind of stuff and that’s part of your development cost. But you have to put
in the price of the land. He’s telling us that it is going about seven and a half to
eight dollars a square foot now –
Anderson: That is correct.
Bird: -- and that’s probably the going rate around that area. So I actually I’m like
you Mr. Nary I don’t like the five dollars either but that was something that
should’ve been discussed a year and a half ago and when you don’t kick the guy
in the teeth then its our fault.
Nary: Mr. Mayor.
Corrie: Mr. Nary.
Nary: And I agree. I agree with what you are saying. All I’m saying is in reading
this agreement it says the leasee, which is the city, agrees to cancel the lease
complete a latecomer fee agreement and what we are saying is we don’t want to
Meridian City Pre-Council Meeting
April 22, 2003
Page 22 of 32
do that we just want to buy it, to include the pre development cost of the lot. That
is not to pay for the road and not to pay for the infrastructure or any of those
things. So it really is to pay for what that cost of the ground was for this piece
and you can certainly tell how much you paid for the whole piece so you can tell
how much the ground for this piece was and that’s where I don’t know and what
you are saying is you negotiated this five dollars. And I think like Council
member De Weerd said is I’m not saying we should pay you but I’m saying I
need to know it’s the right price and its fair and to me there isn’t need to be a big
negotiation for that. You know how much you paid for it that’s how much we are
supposed to pay you is what you paid for it not what it cost you to do anything
else. So that’s all I’m asking is, is that what you paid for it is five dollars a square
foot and I recognize you bought 80 acres at once but you can certainly figure out
the square foot price whether or not how big a piece you bought.
Anderson: But you need to take in account which portion of that land gets which
portion of the costs of the property. If its over eight acres the back corner is
definitely less valuable then the front corner which is what you guys have got. So
you’ve also got to take that into account and how to come up with the (inaudible)
is why we’ve got the five dollar cost that we went through with Bruce and Brad
when we talked about it originally about a year and a half ago.
Nary: Maybe that’s the discussion that needs to be had if we ever have this
again because I don’t agree with that. I think that means to me and again I
wasn’t here but that means to me what it costs you to buy that ground. Not what
it’s worth to me in the front or the back or the middle or the side or whatever. Its
what it costs you to buy that ground because the taxpayers are providing you
with services at a give and take here. You are getting something also for it and
you can’t use that ground for anything else because it has got a well on it now.
So its not like you have developable ground now so that’s what I think this was
supposed to mean to me is what you pay for it not where it is or any of those
other things so that’s really a pretty simple number and again I’m not hearing
that. That’s my problem in saying okay to pay it is I’m not comfortable with that
five dollars matches with what we agreed to.
De Weerd: Mr. Mayor.
Corrie: Mrs. de Weerd.
De Weerd: I guess we’ve learned a lesson on this and this development is
certainly a wonderful asset to our community. So don’t get me wrong on being
particular about this. You definitely are an asset to our community and we
appreciate you being there. This is unusual we have never done it before and I
see that we need to have a lesson learned. We tried and I know our staff tried to
expedite the process and unfortunately I think when we start expediting
processes we see some of these things can fall through the cracks and that’s
something we need to learn a lesson on but my point is I would hope that you
Meridian City Pre-Council Meeting
April 22, 2003
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can be fair in what you are asking. A municipality that is providing a service that
you certainly benefit your development and certainly we are supposed to provide
that but we don’t like to see a profit made or cost covered at the expense of our
tax payers (inaudible). And that’s what we are trying to do is to be fair to all of
them.
Corrie: I think Ryan, one of the questions was can you do a something with cash
out front on the whole thing. You need some time to talk to the people and see if
they can. If they can that’s great if they won’t we will do what we have to do. So
you can go back and find out if we can do anything with the cash up front and
just pay it off (inaudible) less. If you say no then that’s just going to be the way it
has to be.
Anderson: Okay.
Corrie: So if you could do that, if that agrees with Council. That was Mr. Birds
thought that might be able to help. So if you could want to do that and we can
put you back on and tell us what it is and we’ll go from there.
Anderson: Okay. We can certainly do that.
Corrie: Thank you for your time. Appreciate it.
Anderson: Thank you.
Item 8. Discussion of Meridian Chamber of Commerce Parking
Agreement (Bill Nichols):
Corrie: Okay, Meridian Chamber of Commerce. Okay you’re on.
Sackman: I didn’t even bring my paperwork so I’m hoping Will has that in front of
you. Basically, I guess I need to tell you my name. Teri Sackman, 2551 Misty
Drive in Meridian and I’m the executive director of the Chamber of Commerce.
I’m here in place of anyone on the board because they say I know all the
answers so we’ll see if I know all the answers. Basically before you is a
suggestion for an addendum to our lease which covers parking which we do not
cover in our actual original lease. We had had discussions with the Parks
Department before when they made the changes in the park that we would be
able to replace our 11 to 12 parking places that we had for the Chamber. I know
that most of you have been over to the park if we take 11 of your parking places
you’ll have eight left for that section of the park. So what we were asking is if we
could sign six places that covers our three staff our one visitor center volunteer
who is a different person who rotates throughout the week and then two for our
office and visitor center for visitors. So we are just asking for your approval.
Captain Musser from the Police Department had suggested that we have this
officially in the lease so that we don’t get complaints, which we probably will
Meridian City Pre-Council Meeting
April 22, 2003
Page 24 of 32
anyway, about the Chamber towing. Hopefully we won’t have to tow, hopefully
people will read the signs but you know people complaining that their being
towed form City property.
Corrie: Bill do you have anything?
Nichols: Mr. Mayor members of the Council. It’s pretty easy to put together an
addendum to the lease. The only issue I had was what was the impact on the
Parks Department and how that would fit with them. I mean its not really, our job
would just be to put together an addendum it really wouldn’t be a legal issue.
Corrie: Doug do you have any problem with this addendum and parking with the
park at all?
(Inaudible discussion amongst Council)
Corrie: Council. Will.
Berg: Mr. Mayor. Just if I could remind the Council that on the phase two of the
Story Park project we are supposed to be adding quite a bit more parking spaces
to the park itself so its not like that is going to be the only parking in the park.
Corrie: Thank you.
De Weerd: Mr. Mayor.
Corrie: Mrs. de Weerd.
De Weerd: I guess as I recall we were going to be signing most all of those
parking spots so I appreciate the number is lower and you recognize the need for
them. I think this is very fair.
Corrie: Any other comments? We can then direct the attorney to bring it forward
and he can even put it on the consent agenda. That would be the case we will
have the attorney draw it up put it on the consent agenda and have it taken care
of for you.
Sackman: Thank you.
Item 6. Discussion of Finance Report by Stacy Kilchenmann:
Corrie: Finance Report Stacy. Sorry about that kiddo we are still going to get
you out of here earlier.
Kilchenmann: We are six months through the year now, which is hard to believe,
and so we have enough figures in on the revenue to do a revenue projection for
Meridian City Pre-Council Meeting
April 22, 2003
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the rest of the year and I think you should’ve all received that. Unfortunately the
revenue projection shows that we are going to be short of our anticipated of our
budgeted revenue and that is largely due to interest rates because interest rates
are even lower then we anticipated, they are now dropping below three percent.
And then the other factor is the Ten Mile study, we hadn’t budgeted for that, so
that if we continue on the basis of the agreement it gives us a 40,000 dollar head.
And there are a couple other items. Court revenue is a little bit down. Our
franchise our garbage sharing is a little bit down. Those two might correct
themselves. So what I wanted to do now before we get to the end of the year is
make sure we made provisions for that. So in front of you on the bench I put
together the ways that we could address our shortage some expenditure
reductions and we discussed this at our staff meeting this morning. And if we
look just at the products that we are not going to be completed at the date they
were budgeted for we will more then make up for that shortage. So on that sheet
the first thing I have is the Fire Department. The Fire Station will not be
completed until October will not open until October so that we had budgeted for
the nine firefighters for five months and they will only be hired for two months at
the outside. So that gives us three months savings. And the fire station just
some of those operating costs like utilities, building maintenance, gas for the fire
engines so forth. Those will not impact this current fiscal year so that will give us
a 7,500 dollar saving. The Police are not planning to hire their crime prevention
officer so that saves 25,000 and they have had some spikes in their overtime but
they are hiring some officers late so they are pretty much off set you know unless
we have another crime spree and then we’ll have to make adjustment for that.
And then the Centennial Celebration we had originally budgeted 20,000 and Will
thinks we will probably at the most spend 10,000 so that gives us a 10,000 dollar
savings. And then as you remember we didn’t appropriate our entire amount of
anticipated revenue. So that gives us another 99,000 for total savings of
280,000. So that in itself would be sufficient to cover any revenue shortfall. And
then we also have we had budgeted 75,000 dollars in your budget for City Hall
we haven’t had any expenditures and I’m not sure what you plan for that or if you
anticipate any expenditures. But when we put everything on the paper it doesn’t
look like that’s going to be a factor that we need to consider 75,000. So are there
any questions on that?
Nary: Mr. Mayor.
Corrie: Mr. Nary.
Nary: Stacy didn’t we budget a larger amount for legal services and then we
ended up (inaudible).
Kilchenmann: Yes. In fact Reta is going through that one right now because it
got – our new accounts payable person when she started she coded civil and
prosecution together but we will have a substantial savings. In fact when we just
barely looked at it we are seeing at least 30,000 dollars and that’s anticipating we
Meridian City Pre-Council Meeting
April 22, 2003
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had to spend some extra on some services that we not budgeted for. We also
had some other little amounts like the Mayor is not going to use all his travel. We
aren’t going to use all our travel. HR is saving about 3,000 dollars in an
organization they are not going to join. The parking lot maintenance we normally
have 3,000 we haven’t spent anything in that either. So I think we will be fine.
Corrie: Keeping a close eye on it then.
Kilchenmann: And I will go back and look at the revenue. The FY 04 revenue
projection I gave you and I’ll probably even adjust interest downwards somewhat
in that. Any questions on that?
De Weerd: Mr. Mayor.
Corrie: Mrs. de Weerd.
De Weerd: You know I’m not quite sure where some of our dialog is appropriate
on the upcoming budget process and the detail we would like to see in it and
maybe certain practices or policies we would like to discuss. We may want to
consider before we do our workshops in July and our public hearing in August to
really look at maybe an informal workshop that we can really talk about some of
the you know line items if we want to have any kind of control so on direct costs
versus indirect costs. Talk about the detail that if there’s certain line items that
we would like more detail then we have received in the past that would be a
place that we could sit down and do that rather then sitting up here on the bench.
So we may want to consider that. I do think that the information that we’ve had,
the new policies that your office has incorporated into the new process has been
very helpful but we may want to discuss if it’s enough.
Kilchenmann: It would probably be a good idea if we did that soon. Because we
are – the direction that we had gotten from you last year was that you wanted to
Mayor and the staff to prioritize the budget items. So we have kind of shoved the
whole budget process forward in order to accommodate that. So we are actually
working on the base budget right now and all the enhancements requests are in
and I’ll start reviewing those tomorrow. So if you want to make some kind of
change in the process or so forth. You know if we are going to change the
process we should probably do it soon. Request for detail we can accommodate
that at anytime that you –
De Weerd: I don’t know if it’s necessarily the budget process itself, its probably
more the detail or policy. And that’s just –
Kilchenmann: I think it would be great if we just kind of could all just sit around a
table and talk about it. I agree.
Nary: Mr. Mayor.
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April 22, 2003
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Corrie: I think you are right. Mr. Nary.
Nary: One other thing though before we get that too, that 75,000 dollars for the
City Hall I agree I think we do need to talk about that I mean one of our intents
with that was to make sure that we started planning for the future and so I really
hate to sweep that away right now without at least having that conversation about
you know do we want to make sure that that’s available so.
Kilchenmann: I think we have enough just with these things that haven’t had but
we can take it off the table.
Nary: I just didn’t want someone later saying I didn’t bring it up. So I was just
bringing it up.
Kilchenmann: And actually what we’ll do with that –
Nary: I don’t want to sweep that away until we were at least sure that’s what we
wanted to do.
Kilchenmann: What we’ll do with that is I think we should just carry it forward and
just keep it as a carry forward item even if you don’t spend it.
De Weerd: I think we should make certain notation of the generous department
that is carrying the burden of this.
Kilchenmann: The Fire Department. Or you can look at that they are just slow
and they lost their money.
Corrie: There goes your fire truck Kenny.
De Weerd: When he comes looking for that fire truck.
Corrie: Of course you realize the Council still has the yes or no on this anyway.
They want to do that so I want that in the record that you do have that capability
of saying no. We still want to hire those nine firefighters (inaudible) would sit
there. So you do have that.
Bird: You are saving money there but you are paying in overtime. You guys look
at your overtime on the Fire Department every month.
Corrie: Well hopefully they won’t run into a lot of that anymore.
Bird: (Inaudible).
De Weerd: Mr. Mayor.
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April 22, 2003
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Corrie: Mrs. de Weerd.
De Weerd: Maybe we can firm up those two at the workshop if we have it in the
next little bit.
Corrie: Okay that’s fine. Okay stay right there we might need you.
Item 7. Discussion of AspireOn Agreement (Mayor, Stacy
Kilchenmann, Pauline Skeggs):
Corrie: The next one is discussion of AspireOn Agreement. I’ll give this to Mrs.
de Weerd and she can go with that.
De Weerd: I don’t see my name on there.
Corrie: I just wanted to make sure that we all understood where we are going
and what we are doing because.
De Weerd: Mr. Mayor.
Corrie: Yeah.
De Weerd: I guess there are two goals in putting this on the agenda. One was
to and I don’t think Stacy can help us on this but more of an update on where
we’re at in the process. Kind of just touch base with what has currently gone on,
how its going and a little bit more detail on perhaps the price per person that its
resulting in. The second part of that is more on a policy basis on as departments
look at even at the beginning of the processes they look at putting out RFP’s that
the budget is identified and certainly if its not in their department. If they are
going to be cross funding it through other budgets that those budgets are
identified and everyone knows where the money is coming from prior to the RFP
going out. And so we probably need to look at a policy that addressed that I
don’t think it happens very often but in the case it does, I know Stacy and I talked
earlier today and they have in their departments some cross budget issues with
the computer IT person and hiring software for various departments through their
budgets and they go to that department and get their sign off before the
expenditure is ever done. And I would like to see something similar in this
process if by chance those things occur that the budgets are identified ahead of
time. We know the budget that its being worked in before an RFP even goes out.
Kilchenmann: Mr. Mayor, Councilman De Weerd. I can’t help you with the
details as far as the process and the amount per person because we in
accounting we are not involved in the contract process until we get the signed
contract and so I wasn’t involved in you know the development RFP and so forth
and I don’t really exactly understand the intricacies of the contract. So anything I
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April 22, 2003
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said I wouldn’t be helpful but as far as the situation that occurred I think like we
discussed its not frequent. We have some contracts like legal and insurance that
are always cross department and we just automatically budget those amounts in
those departments but we typically don’t have it occur very often that it becomes
as confusing as this one is and typically the way our policy is written the
department head is responsible for adhering to the purchasing policy and
carrying it through and we just use the signed contract to verify the payments that
are made but we certainly could follow the practice, everybody could follow the
practice that we do in accounting as far as our IT items because those are you
know not just routinely budgeted for so we like to make sure that the other
person knows that the expenditure will impact their budget. Well we like to make
sure we have written documentation that they know that. So I’m sure we could
tweak the purchasing policy.
Nary: Mr. Mayor.
Corrie: Mr. Nary.
Nary: I guess you know Stacy I’ve rendered what you are saying and what
Council member De Weerd said as well. I guess for me what I want to see is
maybe we need some policy enhancement but secondarily you know we were
here last week for sixteen dollars and now we are here at a program that is
19,000 dollars different then what we budgeted for but I recognize that this
particular program impacts other departments and there maybe a cross billing
necessity but I think what the piece that got missed in here was coming back to
have that discussion. Is to say you know this is how much was budgeted I read
the minutes from last July and it appears that 15,000 dollars was what we
budgeted to kick off this program. It cost more then that and that maybe the
market rate and that’s fine I don’t have a big heartburn with that but the piece that
was missing is the discussion here to say this is what it cost because this is what
they all cost. We went out and surveyed the market and here’s what they all cost
and the cheapest was x and the most expensive was y and this is why we picked
this one and this is what it cost and that’s why we think its still the best for our
needs. But it exceeds what we budgeted but yet it impacts Public Works and so
they have agreed to do some cross billing and pay a portion of the fee out of the
enterprises funds because its going to impact their work force. We have some
with the special services and so we have some cross payments out of those that
– all of that is fine that’s just what kind of got missed here and some assumptions
were made that were just incorrect. So it wasn’t the fact that the incorrect
assumptions were made its the fact that we just didn’t have the conversation. I
don’t want to have a conversation here every time we spend 16 dollars more a
month but I always want to have one if we are going to spend 19,000 dollars
more then what we thought. So somewhere in there is where the policy needs to
be a little bit cleaner and a little bit better for communicating because what’s
irksome to me is that this is exactly one of the areas that the Boise Council got
criticized for because they made assumptions and they made some positions
Meridian City Pre-Council Meeting
April 22, 2003
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about information and didn’t necessarily ask more information for it and then later
on the voters said wait a minute that was your responsibility. Well if it is our
responsibility I’m willing to do that and in this particular one I didn’t ask for those
questions I made some assumptions I won’t do that again but I think rather then
overreacting to every miscommunication I think we just need to clear up some
policy. I worked on a draft policy today that talks about fiduciary duty and I
wanted to look at it in relation to what we currently have and I really wanted to
make it clear I think and I guess one thing I would like to see come out of this and
I don’t know what the other Council members think or what the Mayor things of
this but I think we want to make it clear that not only do we feel as the Council
and the Mayor that we have a duty to the public of spending the city’s money but
that the department heads understand they have a duty to the public and that
really the way to make sure we’re all on the same page is to have communication
that’s all it doesn’t really require a tremendous amount of work. It just requires a
lot of communication. But that the department heads also recognize that before
we spend money because what has happened in lots of organizations as we
grow when it was smaller kind of covering the bottom line and making sure we
don’t bury the budget entirely is pretty easy to do but we have grown significantly
personnel wise. The budgets grown significant over the last ten years and it will
only continue to do that so I think before we get into a situation where we can’t
reconcile some of these issues we really just have to have some policies in place
so its clear or we are going to exceed the budget amount for a particular item that
we are going to have to have a discussion about it. But figure out how that is
going to get covered or whether or not we can do it I mean does that all make
sense.
Kilchenmann: Mr. Mayor and Councilman Nary. I think or Mr. Mayor I think
when we originally did the purchasing policy and you actually stressed and we
talked about because we don’t have a purchasing function we don’t have a
purchasing agent. But every department head does have to really understand
that purchasing policy and so maybe what we really need to do is have some
more training on it and you know make sure we all sit down and we all really
understand why we have these rules in effect, how it works, how it impacts the
each of us as individuals and from accounting standpoint we kind of look at our
materiality level as far as 16 dollars is under our radar screen. We try to identify
something that is going to make an impact like being a couple hundred thousand
dollars short. So that I think the other issue was not in my (inaudible) so to
speak. So I.
Nary: Mr. Mayor if I could just have one more point. And again this is just a draft
policy so I’m not ready to bring it forward but I mean all I really tried to put in
there was every elected and appointed official of the City of Meridian shall know
what’s allocated and allowed for every expenditure of the publics funds.
Kilchenmann: And I was going to say to that too. One of the items that I have
left of places we need to write but policy for is kind of our whole budget process
Meridian City Pre-Council Meeting
April 22, 2003
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and you know what – I guess we have this process in place and we have a
budget development manual but we haven’t really done a policy and I thought we
ought to address you know when you need to request to have, I mean we have
an informal policy but when you need to go to the Council to request that this
item be moved from here to there and that sort of thing so we can put that all on
one broad policy addressing our whole budget process and our financial
reporting process.
Nary: When you do that I mean one of the things I think that at least is very
important to me that I’d like to at least have on the table. Is one of the things I
wrote is that every elected and appointed official of the city shall have the highest
duty in accountability for their actions to the citizens of Meridian because I don’t
think anybody would disagree with that I think we all recognize that but
sometimes we need to be reminded for all of us that that really is where the
rubber meets the road I mean that’s really what all of us have that level of
(inaudible) and it isn’t just me or the Mayor or Councilman Bird its all of us but
also in carrying out that that’s really part of the responsibility of all the
departments in carrying that out and remembering that responsibility and duty.
So I think when you are looking at general language I mean that’s something I
think we need to have as a part of that or at least have a discussion about that
being a part.
Kilchenmann: I think it should be part of it.
Corrie: With that being said. I agree that the policy should be made by the
Council and the policy should be very clear to everybody on what you want and if
your starting that right now I can see that that’s good and if we need to have
some meetings from the Council to get your policy or you can write it send it
around and see how they do so. While we don’t always agree on everything that
we do agree that we can disagree and we need to fill those holes if we got them
lets bring them out. I don’t equate this to Boise at this point –
Nary: I don’t either.
Corrie: But anyway it’s very important we do this and we need to do it and we
will do it. Mr. Bird.
Bird: Just one thing. The thing that upsets me the most is when this would be
like me going out and doing a remodel on my house and I got a bid for 15,000
dollars and I was short so I went to Gary and Janice’s checking account and got
19,000 to do it to finish the job up. And that’s what’s happening and nobody
come to the budget that it was taken out of, first place if a bid is double of what
you budget for something is haywire in your original getting bids RFQ’s or
whatever you back off and you say to my knowledge it was never brought before
this Council to ask if they could take the money out of our budget to use it
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April 22, 2003
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because it way over and I know we got the wrong person up here don’t worry
about that Stacy.
De Weerd: Don’t kill the messenger.
Bird: But it’s a policy that has to get in line and these other department heads
are going to leave other departments budgets alone. They’ve got their own to
take care of and if they can’t get it within their own then they have to come before
the Mayor and the Mayor will come before the Council and we’ll find the money if
we can.
Mayor: Thank you. We are running over time. Thank you Stacy we will work
this out. That takes care of the Pre-Council I will, if there’s anything else that
anybody wants to discuss that’s not on your agenda. So I will entertain a motion
to close the Pre-Council meeting.
De Weerd: Mr. Mayor, just real quick. I know Stacy had to stand up here and
get our view points on it but I sure appreciate every time we get a financial report
there is some new enhancement on it and I really do appreciate how closely you
do monitor and the care you take for it. So I appreciate that and I would move to
adjourn the Pre-Council meeting.
Nary: Second.
Mayor: Motion had been made and seconded. All in favor say aye. Motion
carries.
MOTION CARRIED: ALL AYES
MEETING ADJOURNED AT 7:05 P.M.
(TAPE ON FILE OF THESE PROCEEDINGS)
APPROVED:
/ /
ROBERT D. CORRIE, MAYOR DATE
ATTESTED:
WILLIAM G. BERG, JR., CITY CLERK