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HomeMy WebLinkAbout2003 03-25 Pre Meridian City Pre-Council Meeting March 25, 2003 The Pre-Council Meeting of the Meridian City Council was called to order at 5:30 P.M. on Tuesday, March 25, 2003, by Mayor Robert Corrie. Members Present: Mayor Robert Corrie, Tammy de Weerd, Keith Bird, and Bill Nary. Members Absent: Cherie McCandless. Others Present: Mike Worley, Gary Smith, Kenny Bowers, Stacy Kilchenmann, Pauline Skeggs, Brad Hawkins-Clark, Doug Strong, Terry White, and Will Berg. Item 1. Roll-call Attendance: X Tammy de Weerd X Bill Nary O Cherie McCandless X Keith Bird X Mayor Robert Corrie th Corrie: Okay I will open the Pre-Council Meeting tonight Tuesday, March 25 at 5:35. At this time, I would like to have the City Clerk give us the roll call attendance please. Item 2. Adoption of the Agenda: Corrie: Okay first we have the adoption of the agenda. Bird: Mr. Mayor. Corrie: Mr. Bird. Bird: I would move that we adopt the agenda as published for the Pre-Council Meeting. De Weerd: Second. Corrie: Okay motions been made and second are there any further discussion? Hearing none all those in favor say aye. Opposed no. All ayes motion carried. MOTION CARRIED: THREE AYES, ONE ABSENT Item 3. Discussion of Special Audit for the City of Boise: Corrie: The first item is the discussion of the Special Audit for the City of Boise. I want to say thanks to all of the Department Heads for being here this evening and answering the email. You all did a good job. At this time, Stacy I will turn it Meridian City Pre-Council Meeting March 25, 2003 Page 2 of 31 over to you right now. We have a list here that was made up. Some priorities that we would like to discuss on the Boise Audit. Then if Council has any additional priorities and also the Department Heads if you have any after you’ve read it we will address those at the same time so Finance Director Stacy Kilchenmann. Kilchenmann: Mayor Members of the Council I’ll just go through – the Mayor gave us specific page numbers that summarize the conclusion so I thought I would just go through those page numbers and the conclusion and just briefly talk about what we’ve done or how we’ve avoided ending up in this kind of situation. The first one I’m going to talk about is Page 93 and the title is General Ledger Account Classifications. This is one that’s really geared just for accountants because it uses a lot of accounting terminology. Basically, it’s talking about I think summarizing several items into one large line item account code so that it’s hard, not necessarily with intent but that it’s hard to distinguish exactly what the items for. We have a policy actually of doing exactly the opposite. When we have a specific capital project, we report that in a separate general ledger account and when you look at your financial statements, you actually see the projects by title on your Financial Departments. Example the Wastewater or some kind of construction capital project or billing the police station. We also separate replacement capital and we have you approve that in the budget process. Then we also every month in your monthly financial reports we give you a list of every single piece of capital that the city has purchased for that month in year to date. We do have separate line items for all the personnel costs including if you look at your report you’ll see that the benefits are separate from the taxes from the overtime from the regular pay. We have a philosophy of stressing that every item of expense is coded to the expense code that is appropriate for it not where there might be a budget existing. If we don’t do that, we get to the end of the year and we don’t really know the actual cost of programs. For example, if you have an item, somebody wants to purchase a computer, they’re out of money in their computer budget, and so they have money in their office supplies we do not allow them to make that kind of coding difference. We also do not move money from expense item, different line items unless we get your approval. We generally only do that for capital projects. For example if we decided one capital project is short and one is long, we come to you and ask for remission to make that move. I think that’s – are there any questions on that item? Bird: Mr. Mayor. Corrie: Mr. Bird. Bird: We’re allowed to change the budget once a year Stacy, Will maybe you can answer this but once a year we can – this is when all these items come and we can change it on that if it’s (inaudible). Meridian City Pre-Council Meeting March 25, 2003 Page 3 of 31 Kilchenmann: Yes and we make budget amendments. Also I think this is referring to, to maybe just changes that don’t require an amendment like you just move money from office supplies to furniture et cetera. I think it’s talking about making those kinds of transfers that don’t go through the Legal Appropriation process. Bird: I thought they all had to come through. If we change numbers and a change difference I thought it all had to be approved. Kilchenmann: Not if you don’t change the total. For example, the total operating for my budget could be 10,000 dollars. As long as I don’t change the total 10,000 dollars in operating, I can maybe change within those categories. Bird: You’re right, you’re right I see what you mean. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: This might be an appropriate time to ask this but a couple of years ago we separated out our base operations, the personnel and operations from the capital. It still though is reflected in some of the carryovers and I think it really distorts our actual expenditures because of those capital one time only expenses. Is there a way that we can separate the two processes? I think over their other communities can have two separate budget activities for that. You go through and do your base operation budgets and then you have a separate process for doing your capital expenditures. Kilchenmann: We actually do carry it on a separate line we call it a carry forward. The other way accounting wise to do it is how the state does it and you’re literally carrying several fiscal years so you encumber the amount left over. For example, if we got to the end of the year say like last year and we hadn’t finished the police building. Instead of just re-appropriating it, which is what we would do, we would encumber it and then we would carry fiscal year 2002 so you would get two financial statements. You would get 2002, which would show the amount that you encumbered, and that activity against it and then you would get a 2003 financial statement. We can’t – we’re not really large enough I think to do a process of encumbering and it would involve additional software. Those are the two ways alternatives to doing that. Does that make sense? De Weerd: It does. I just wish that we could find a way to separate those carry forward numbers into our current budget year so that – Kilchenmann: It is confusing when you summarize. We try if we’re doing a summary we try to set it aside. Like the 1.8 million dollar overpass, we tried to Meridian City Pre-Council Meeting March 25, 2003 Page 4 of 31 really separate that because that’s misleading. That shows up in administrative operating. We can just keep banging away at that and finding a way in presentation to make that more clear. It doesn’t show the revenue from the fund balance, which is what essentially is happening. De Weerd: Right. Kilchenmann: Any more questions? Bird: Mr. Mayor. Corrie: Mr. Bird. Bird: Stacy I don’t think cities I know state can do it but I don’t think cities are allowed to encumber their – go back from budget year to budget year are they? Kilchenmann: Yes. Bird: Are they are we allowed to do that? Kilchenmann: We could do that. Bird: I didn’t know we could. I don’t like the practice that’s there’s (inaudible) and carry forward. Kilchenmann: One other thing I forgot to mention is as far as having contingent line items it’s called contingency, miscellaneous special projects. I think in the last couple of years we’ve pretty much completely eliminated that practice. Corrie: That’s good. Bird: Very good. Kilchenmann: Okay the next one I have is on Page 94. I’m going to talk about 94 and 103 which both have to do with information technology. The first one on Page 94 talks about centralizing versus decentralizing and information technology function. Since we only have one person that’s easy we’re centralized. Actually, I think one of the major reasons that you approved that we have this IT position rather than contracting outside was because you did want to standardize the purchasing and you wanted to have systems standardized to reduce cost, maintenance and so forth so that has been a major function of this person. Since he started in the Fall and in the time he’s been here for the FY04 budget he’s developed standard software and hardware costs for the new budget so when people buy computers, when those requests come to you next year they’ll all be for the same cost. I won’t ask for a 3,000-dollar computer while somebody asked for a 1500-dollar computer as long as the usage is the same. Meridian City Pre-Council Meeting March 25, 2003 Page 5 of 31 He will be presenting the entire IT technology budget to you. He’ll look at it on the citywide focus across all funds and he’ll be able to answer your questions, give justifications, and explain what he’s doing. We do – it also talks in this conclusion about security and that has been another one of his functions is looking citywide at the security. We actually have a draft IT policy that we’ve been working on that we’ve taken to the Department Heads and they’ve given their suggestions and so forth. Before I leave tonight, I’ll give you the draft to look at. We still probably have another go around with Department Heads to iron everything out but it does specifically address security. Then on Page 103, it talks about tracking hardware and software acquisitions. Again, I think that making sure all purchases are approved that all – that they’re properly received that they’re serving the function for which they were purposed et cetera. Again, in this IT policy that I’m going to give you we’ve centralized our purchases. In fact, since Terry arrived he has done almost all the computer, if not all the computer purchasing. We’ve been able to purchase which is important for us as a small city we’ve been able to get some purchasing discounts because we’ve done all our purchasing in one lump sum. We have, again it talks about monitoring the software and hardware inventories. That’s something we’ve already done. If you remember, we talked about he (inaudible) Software that some people were worried that it was monitoring them. We talked about it’s actual purpose is to inventory software and hardware and also our license. That’s been effective not only from the fact that we know one you can sit at your desk and he can figure out where everything is and so forth. We’ve done some trading around of computers like somebody might use word extensively they don’t need as sophisticated a computer as somebody does in Public Works who has to use the CAD software and so forth. We have found it useful and effective and we will have to do some physical inventory checks but it saves a lot of that time running around, checking tag numbers, bringing up software, seeing what everybody’s got on there and how much memory they have and so forth. Then we also have implemented the practice of when we have left over – you know we have printers or computers that aren’t being used they all come into city hall. Terry tracks them and he decides maybe somebody at the police just needs to get in there and use email so they don’t need as powerful of computer we don’t need to throw it away. Terry’s responsible for doing all that tracking and so forth. I think that kind of sums up the IT items. Does anyone have any questions on those? Corrie: No, you will be passing that out? Kilchenmann: Yes I have it with me. Okay the next one I have is on Page 102 and it’s the employee travel expense account form. How we handle this since the policy that you implemented early this fall, every trip requires an expense form. One trip, one expense form includes whether they paid for it in cash or whether they paid a direct bill or whether they paid it with a credit card. What we do whenever we get a direct bill item like an online registration, somebody’s made their hotel reservations in advance or their airline tickets we put those into Meridian City Pre-Council Meeting March 25, 2003 Page 6 of 31 a suspense account. Then we don’t clear those items we pay them and then we put them in this pre-paid expense report. Then every month our accounts payable person goes through, if she hasn’t got an expense report she follows up on every item, chases the person down and makes sure that they have the expense report coming into support that item. Then once we have the report then we move it out of the suspense account so that way we can make sure that every item is supported by a signed expense report. Those expense reports include mileage, form of travel, meals, tips, registrations, hotels, and so forth. It also talked about they have people (inaudible) and they talked about having software to do expense reports and that just would be – we don’t have that much travel. I don’t think we have much costs incurred the way we do it manually. The other one related to that was business meals and – oh, one other thing as far as doing cash advances I think they say we’ve done like five in the last six years. That’s not something that I mean I haven’t had any problem with them so we don’t really make a practice of doing cash advances. If we did, again, we put them in this receivable account. Then on Page 97 – Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: Stacy before you get to the next one, one of the problems in here found in this report is that some of the travel that was done was there was no business purpose that was documented in accordance to that. Are the expense forms when they come back documenting the business purpose of that or are they just showing where the employee went? Kilchenmann: Yes they have the purpose. Nary: Okay. Kilchenmann: Then the next one talks about again what you’re talking about on Page 97 business meals and entertainment. Nary: Before you get to business meals one of the problems that was found here though was that there was a lot of trips that were made sort of added on to the beginning or the end of the trip as some sort of business purpose as well. Is that just left to the Department Head to monitor that or the Mayor to monitor the Department Heads to make sure that there isn’t a lot of that additional type of travel occurring or how would that (inaudible)? Kilchenmann: Actually, I would imagine the Department Heads are doing it but we do it when it comes through accounts payable. We do it like we’ll check the car mileage and so forth. Nary: So if there’s an excessive amount of car mileage then what happens? Meridian City Pre-Council Meeting March 25, 2003 Page 7 of 31 Kilchenmann: Then we call them. They’ve all – well not all of them but some of them (inaudible). We just don’t have that much travel that we can’t monitor it. We don’t have that much out of state. Nary: In addition to the receipts one of the things that the auditors found was that was missing sometimes was either the attachment for where they went what they went for like a course you know. A course – Kilchenmann: The form. Nary: -- folder. Sometimes the folio for the hotel or where the person stayed so they had some idea you know a 200 dollar night hotel room for some people it seems like a lot of money but if you’re in Washington D.C. it’s really not extraordinary. It might be if you’re in Moline, Illinois, it might be a little different – Kilchenmann: Or Burley. Nary: -- so it kind of depends on where you go. I guess it’s one of things is, are those types of attachments normally done or is that not something that’s usual? Kilchenmann: They do they have to have the you know the thing you get when you check out from the hotel it shows the nights you stayed, how much it cost, any meals and so forth. We’re requiring them to have meal receipts not which is in the business meals too but not just the visa charge that says 13 dollars at such and such place but actually the itemized receipt that says you know because otherwise you don’t know if they drank their meal or if they ate their meal or so forth. They have to have the voucher the invoice from the airline attached to that and they also have to have the registration, conference registration if they went to a conference. One thing I do think we need to do for the business meals we just need to add the verbiage in our travel policy to say that even if you’re having an in town meal you need to document who you had it with and what you’re business purpose was. That’s one thing we don’t have in there. Also, we just need to put that verbiage in there to make it clearer that we do need the itemized receipt not just a visa. I – one argument was well you go to a restaurant they don’t want to give you the itemized receipt. I’ve never had that experience I think they’ll give you one. That kind of covers – (Inaudible discussion amongst Council Members) Corrie: If it’s not on the record don’t go there. Kilchenmann: Yes don’t go there. Bird: If they don’t turn you back an itemized receipt do like our company then don’t pay it (inaudible). Meridian City Pre-Council Meeting March 25, 2003 Page 8 of 31 Kilchenmann: Yes that’s a common practice. Nary: But they don’t (inaudible) a donation to the City of Meridian. Thank you for your donation to the City of Meridian. Bird: I’ve never used Meridian. Kilchenmann: So that kind of discusses the business meals and entertainment too. I think with you this fall we did a lot of work on that as far as developing our travel policy, getting it written down, and getting our form going. Corrie: You might also pay a bonus that they were giving definitely don’t need to – we don’t have that but can you give us a rundown on that too Stacy that we don’t allow bonuses? Kilchenmann: Yes I think see the next one was cash advances, we’ve done five, and six years so we don’t really have that one. Then salary increases I guess that can kind of go with bonuses. We don’t have bonuses so we have – I was actually going to make Pauline come and talk about the salary increases because she has a very rigid matrix that no one can stray from. Pauline do you want to come and – Corrie: We have to have somebody. Skeggs: Mayor and Members of Council on the salary increase section it talks about recommending that the city and Council adopt a policy regarding the salary increases. Currently the City of Meridian already has a policy in place for salary increases. That is basically handled the same for all employees. On an annual basis, basically what happens is through the budget hearings I will do a presentation giving you a cost of living and giving you a recommendation of the salary increase that we’re projecting. Based on that if it’s approved on October st 1 all employees will get the cost of living increase based on their actual salary. Then all other increases are based on an employee’s performance rating. They can get anywhere from one to four percent. Satisfactory is one percent, competent to excels three and outstanding is four. The average increase so far to date is like 2.5 percent that employee’s have been getting when we average it. Majority of employees are getting in two percent. I review that when the salary increases come in from the Department Head against their department budget to make sure they’re within guidelines. If they’re in within guidelines then I will sign off on them then I will submit them to the Mayor for review and approval. If they’re out of guidelines, then the department has to go to the Mayor, they have to justify the raitin, and they have to prove where the money is at in the budget. We haven’t had that this year so far. We’ve had one individual that had asked for that because they were going to look at losing an employee and they wanted to give them more money to be more competitive. Then the employer reneged and Meridian City Pre-Council Meeting March 25, 2003 Page 9 of 31 we didn’t have that incident. We pretty well make sure that the salaries are in compliance and we do follow the guidelines set in the polity I make sure that it is followed. Department Heads are not always happy but I do try to make sure that it’s followed. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I thought we had the conversation about the out of guidelines increases that would change to where if it wasn’t budgeted for it had to go to Council for approval. Skeggs: That was never finalized. That was a discussion in the budget hearings but it was never finalized. Corrie: It’s never come up. Skeggs: But it hasn’t come up this year so far. De Weerd: Well I know but just in the case of when it does I guess I was under the assumption that we were very clear that we wanted to make that change. I didn’t see that it had been made so I thought this was the appropriate time to bring it up. Skeggs: That’s something that we could put in the policy to add that section in. De Weerd: I think there’s that and then another thing and if we want to do any temporary adjustments to salaries that we should have some kind of a guideline that that goes through a certain procedure as well. Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: Pauline, I guess the salary increases that they’re talking about here in this report though really are only dealing with the Mayor’s Office and Department Heads. From what I’m hearing you saying is here for the city it whether it’s the Mayor’s Office staff person or a Department Head it’s all treated the same. Skeggs: It’s all treated – Nary: They get the same COLA, they get the same – they’re in the same matrix there isn’t an opportunity to give them anything other than that okay or to circumvent the process. Meridian City Pre-Council Meeting March 25, 2003 Page 10 of 31 Skeggs: Yes the only difference is like the union they have their union negotiated and they’re based on their Union Contract. Then the police officers are on a seven-year STEP Program so it’s based on your STEP Program. Nary: Sure and I think the problem that was found in this audit was that the process was circumvented because the Department Heads in Boise don’t get a raise based on that matrix regarding the two to four percent or whatever. Theirs is whatever the Mayor determined it to be so that’s not the case here. Skeggs: No. Kilchenmann: I think that that covers – there are like there are three other items like donations and contributions well and the bonus recommendation we just discussed. We don’t do donations unless we approve it through the budget process unless you approve it. For example the senior center that’s not really a donation, it’s actually a grant so to speak for them to perform a particular service. The audit also discussed just purchasing as a whole and the need to have a purchasing code of ethics, which we have. We went through the process as followed and we developed our purchasing policy with the code of ethics. We haven’t had any problems with people not following that purchasing policy or trying to split bids or any of those activities. That is reviewed by our accounts payable person carefully. Corrie: I think (inaudible) case in point of the donation and contribution was like the mud wrestling contest that they had to come here and asked that we would donate the water to do that. (Inaudible discussion amongst Council Members) Corrie: I am sorry proceed please. Kilchenmann: I’m done. That concludes anything I had to say are there any questions about – Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: So did I understand you Stacy that there is no policy or there’s prohibition that the departments can’t give any bonuses to anybody for any reason? Kilchenmann: To my knowledge that would be Pauline. Nary: So not even gift cards, not even movie tickets not anything? Bird: That’s right. Meridian City Pre-Council Meeting March 25, 2003 Page 11 of 31 Corrie: We haven’t given anything. De Weerd: There are the employee awards. Nary: Just employee awards. De Weerd: (Inaudible) quarter program. Nary: I don’t honestly think that’s better. I mean I don’t think that’s really good either. I think there’s some necessity to have some incentive for folks and sometimes you know small I mean even this talks about small types of things are certainly acceptable you just need to account for it. They talked about gift cards and those kinds of things I don’t think there’s anything wrong with that when you can only give people you know two to three percent a year I don’t know that that’s unreasonable but that’s something we can talk about on a different day. Kilchenmann: Yes we just don’t have a practice to that. Bird: Mr. Mayor. Corrie: Mr. Bird. Bird: The only thing I would say that – we have been able to give at least two and a half percent average increase and there’s a lot of people out in the public the last couple three years that haven’t got any increase in their wages out in the private industry. Where they’re the ones that are paying our deal so I – the bonus and stuff would be real nice if – but I think anytime you get that you get exactly what Boise has. You get certain people getting the big ones and the ones that are working hard and keeping their nose (inaudible) get nothing. It’s not what you know it’s who you know. Corrie: One of the things that we’re going to be bringing to the Council are the benefits that the city gets. Right now, we’re pretty good shaped but down the road we’re going to have to take a real good look at what the benefits are and whether we give them in a Boise or if we give it as a medical benefit some what have you. The costs are increasing all the time so we need to be conscious of the fact that that may be coming up of what we need to give to the employees. Whether they give it as benefits, which are not taxable, or if we give them a bonus, which is – or not a bonus but a pay raise which is taxable. We’re going to have to look at those down the line as well. Does anybody the Department Heads have any questions on these? You all had a chance to see those are that correct on the disk. Do you have anything that you’re not familiar with or you want to discuss or make sure that we understand all there is there because I will be coming to your departments and talking with your employees again about this same thing so that they understand it. I think they all have a policy manual but Meridian City Pre-Council Meeting March 25, 2003 Page 12 of 31 whether they all understand it or not you want to have a question and answer session with your employees as well to make sure – we’ll probably have Pauline with us there and Stacy answer any questions they might have but do you have any questions at this point? Council is there anything that you want to discuss? Bird: Mr. Mayor. Corrie: Mr. Bird. Bird: I got a question on the city vehicles and the Mayors allowance. I think you get allowance on yours don’t you? Corrie: Only on the what’s determined for business yes. Bird: My question, my policy, my feelings are that anybody that’s on call out should have a company like the chief or any of his detectives that are on 24 call, Gary, the Park’s Superintendent, Kenny anybody that’s on 24 hour call out should have a city vehicle. That’s a little deal but – and I know ours aren’t abused because we’ve got one out here that don’t probably get 2,000 miles a year on it. If we don’t use them then we shouldn’t have – De Weerd: What is the policy? Bird: What is the policy Mayor that’s what I’m asking because I have no idea. Corrie: What you’re saying is that kind of, like the Chief of Police I think has his car and also the Captain in case that he needs to come out and the one lieutenants on duty they change the other car I think on that. The Fire Department I believe Kenny you have three, yours, and the two chiefs. We have a City Clerk has a car here that they employees can use if they check it out that’s under the City Clerk’s discretion and then we have a car that IT has been using to go around to different ones. I don’t – I think Park’s you have a truck I believe that’s available if you need it. Bird: You don’t take it home? Corrie: Don’t take it home no. Bird: Gary doesn’t take his home. Corrie: Gary doesn’t take his home unless there’s something in the wings that we might have to do that. I think that’s the only ones that we have that I have given any permission to use. Bird: Mayor does Jon or Rick from the Wastewater or they don’t take theirs home either? Meridian City Pre-Council Meeting March 25, 2003 Page 13 of 31 Corrie: I don’t think so Gary do they? Bird: They’re on 24 hour call aren’t they Gary? Smith: They have employees that are on call that alternate. Bird: Do they have a truck at home then? Smith: I don’t believe so I think they bring their own vehicle in to the office when they are called. Corrie: They have a pager. Smith: (Inaudible) I think they’re paid a certain amount when they’re called. I’m not sure if mileage is included in that or not but they have (inaudible). Bird: That’s good. Corrie: And my car if I’m using it on city business it’s 36 cents a mile. That’s the internal (inaudible). Bird: We don’t give you allowance or anything? Corrie: No. No. I have a two million dollar insurance coverage on it so it protects the city up to two million dollars. Kilchenmann: I thought you said you had a two million dollar allowance. (Inaudible discussion amongst Council Members) Bird: Thirty-six cents doesn’t cover the cost. Corrie: No but that’s – Kilchenmann: It’s whatever the current taxable mileage rate is. Worley: Mr. Mayor. Corrie: Yes. Worley: One clarification Councilman Bird within the Police Department all of the detectives do have take home cars however they’re only allowed to use them in a response motive they’re the on call detective. We’ve found that trying to do a pool car with detectives with the limited number we had they just don’t get investigations done. Meridian City Pre-Council Meeting March 25, 2003 Page 14 of 31 Bird: I firmly believe that anybody that’s on 24 hour call which your detectives are or your police officers as Kenny’s Chiefs are and stuff I think they should have a car a city car and use it just for that which I’m sure that’s all it is used for. Corrie: So far it’s working pretty good without so is it going to discuss that if we need to be – Mr. Nary. Nary: Mr. Mayor yes, Stacy there was a recommendation here regarding internal audit. I didn’t hear anything on that so I was just wandering what your thoughts were on that. Kilchenmann: That was actually in the – when we did our strategic plan update I actually had put an item in there to start doing some internal audit functions. We’re not obviously big enough to have one internal auditor but I think we do need to have some procedures in place like doing some checking and cash receipt sequential numbering, doing some physical actual counts of assets something we’ve never done. It’s something – a lot of the items that we sort of assume that external auditors do but actually, they don’t do. We probably – I will work on developing an audit plan and sharing that with you maybe next month. Corrie: One of the things that I mentioned in our staff meeting was whatever employee goes out of the state they must have the information of the Department Head. Then also in my office if I go out of state I let the Council know and if they have any objections to it we don’t go. We decided that that has to – we want that in writing from the Department Head and also they can tell the Council, they can make it in writing that they do have that approval. This way we have nothing that nobody knows – I mean excuse me everybody knows where we’re going, why we’re going, and it’s written down so that the function of the City Treasurer and Finance Director has that copy. That’s just a new one that I put out. Mr. Nary. Nary: And I really appreciate that I think that’s probably good. Reading through this report I think if all we heard and what I think we all know and have seen. Most of these things I think we either do or don’t really apply or we do it because only one person does it so it’s not really that complicated. I think it’s really good and I’m not trying to be a name sayer or anything. Ten years ago in Boise, they probably would have said the same thing. I think that probably the one value to us about this report is being able to look forward and being able to look at it again in a year or five years at these types of recommendations because like I said 10 years ago in Boise they did all of these things. They would have said exactly the same thing. We do this it’s not a problem you know people are honest they don’t do these things and they found out that it wasn’t true that sometimes you get people who aren’t very honest and then those things happen. Then we have to put checks in balances to make sure that those things are – one of the things we haven’t talked about is Number 7 is the management fiduciary responsibilities. It seems adherent to everybody I think that works in the public sector that these Meridian City Pre-Council Meeting March 25, 2003 Page 15 of 31 things should seem to be second nature but they weren’t to a lot of people and that’s why there was a problem. I know for Boise there will be some new policies and we can certainly look at those to see if they’re applicable to Meridian and whether or not there’s something maybe we want to adopt that will deal with communication to mirror the State Whistleblower Statute. Because a lot of these things that happened in here could have been stopped early on if someone felt the power to be able to report it. What was happening was there wasn’t the power to report it so those types of things I think we can also borrow from Boise as well. I am absolutely certain we will have policies that say that I can guarantee it. Those things I think are something else that we can add with policies assistance and have it be reviewed to see how that they may have applied to Meridian. Again, I’m not trying to be a doomsayer but we do need to at least be aware of those things because this stuff can happen pretty easily. You know 10 years from now Meridian is going to be a lot bigger than it is now a lot more people and so those things at least have to be remembered and thought of and not just look at it today. Kilchenmann: I think maybe that’s the reason why it was important that we have everybody here for this discussion because two years ago most of these procedures weren’t in place. I mean they were happening because the people that were working here were trustworthy and did have that sense of responsibility. Sometimes I think on the face of it, it appears to be just a cumbersome record keeping exercise, which sometimes it is, but they develop because of things like this that happened in Boise. It just takes one person or one act and that public trust is destroyed. We try to balance efficiency with you know tracking mounds of paper but I think it is good that we understand why we’re doing the things we’re doing and the need to be proactive in having the systems in place before. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I think I would like to commend your department Stacy because I think you have been forward thinking. Many of your policy rewrites were right before a lot of this the activities in Boise really were coming to light. I appreciate your forward thinking in trying to be proactive on a lot of this. You and HR were really refining a lot of your policies and developing them so that a lot of things that have happened really are carefully monitored in Meridian. I appreciate that but I would echo what Councilman Nary has said. We continue to grow and so will some of the opportunities for things to kind of slip through. I appreciate though your staff and how diligent they are to making sure things – all the T’s are crossed and the I’s are dotted because you do a good job. Kilchenmann: I would have to say the Department Heads have been very patient. They have been. Meridian City Pre-Council Meeting March 25, 2003 Page 16 of 31 De Weerd: They have been patient with us to every budget year changing priorities, justification, and all of those things so we appreciate that too. Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: I would just make one last comment. This Number 7 as you can tell is a big thing to me and I have absolutely no concern. I think the Department Heads we have are fantastic. I think we are very fortunate because I already see that in every single person that we have that recognizes that. It isn’t the trust between the Department Heads and us it’s the trust that we have at all the people out here. You are exactly right Stacy one person or one act can injure that significantly so we want to make sure. I think you have done an excellent job as well as the other Department Heads in establishing policy and practice that it doesn’t matter who sits in these chairs we know how things are done and how they are going to be done officially and the public knows that. That’s why we’re going through this exercise so the public knows that all of us recognize that and we’ve put those mechanisms in place so that we can hopefully avoid some of these problems. You know it’s never fool proof but we can hopefully avoid these types issues. I think we have and I think we will continue to do so. Corrie: Okay anything else? Very good Stacy nice job and Department Heads thank you for being here tonight helping us. We will be getting together on the dates to have the meetings with you as well. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I see why we have all the Department Heads here. We got the questions from our Revenue Evaluation Task Force that they would like to go through in the budget presentations by each department. Were there any comments on this or any discussion? I don’t know if all of you have had a chance to look at it. Corrie: I don’t think they have I just got it today from Lori. I know the Chief rd you’ve got it because you’re in meetings the 3 and then the others will have it probably tomorrow to put it all out. I did get the Chief his because he has one rd coming up the 3. Like she says, the questions that they’re going to ask and then we’re going to have to tamper that a little bit because we don’t need to go into some of the things that a couple of them are asking for. We’ll handle that when it comes time. I’m sorry to interrupt but go ahead you – De Weerd: No that’s all right I just wanted to see if there was any comments. Meridian City Pre-Council Meeting March 25, 2003 Page 17 of 31 Corrie: You’ll have that tomorrow. Like I say I just got it from Lori and so the only reason I had it ahead of time was because it was sent to me on the computer the day before yesterday. Okay anything else? Item 4. Finance Report: Corrie: We have some time Mr. Dodson you have some extra time here so your 15 minutes can go to 16 if you would like. Hang on just a minute Finance Report I’m sorry I’m a little ahead of myself. I saw it here and I thought well that was quick. I’ve already looked at mine so – Kilchenmann: Mayors and Members of Council I just – one thing – the big deviation I wanted to bring to your attention, which you could probably guess, is the interest income will be short this year. The general fund will probably be about 100,000 dollars short and the enterprise fund will probably be about 250,000 dollars short. On the general fund side we, remember we had like 100,000 dollars that we didn’t appropriate left over. Additionally we have quite a bit of salary savings from positions that we aren’t hiring at the time we had originally budgeted for, for example the fireman. There are some police positions that we weren’t hiring that we didn’t hire right at the beginning of the year. The IT person we didn’t hire right at the beginning of the year and Pauline’s person we didn’t hire right at the beginning of the year. Right now, everything looks fine we’ll come out okay but we won’t have any savings. On the enterprise fund, we have revenue over appropriation of at least one million dollars so I don’t foresee any problem on that side. I did give you a new special services report because the revenue and the capital number were switched. Actually, revenue is tracking ahead of budget. You’ll see their expenses are a little higher so we probably from having to pay additional inspectors fees so we might go in at the end of the year and need to increase their revenue and increase their expenses. The other – the only other item I had it’s a request from the Wastewater Treatment Plant. He had originally requested 15,000 dollars for a phone system and you appropriated that for him. He ended up spending 3900 dollars on upgrading his phone system and he would like to use the excess to buy a server. They have nine PC’s and they need – it’s a security issue and they also some file share applications that they would like to run but they can’t do. They don’t really have the security and the ability to do it without a server. We wanted to ask you if it would be all right if, we did that. Bird: Is it okay with Gary? Kilchenmann: Gary. Corrie: Gary. Smith: Yes. Meridian City Pre-Council Meeting March 25, 2003 Page 18 of 31 Corrie: Do you have any – it’s okay? Kilchenmann: Okay are there any questions? Corrie: Do you want to – Bird: Do you want a motion on that? Corrie: -- yes just – De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I have some concern of our electricity rates here. Maybe our next presenter can address that. Corrie: Mr. Bird if you would like to – Bird: Do you want a motion on that Mayor? Corrie: -- yes that would help I think for them. Bird: Mr. Mayor I would make a motion that we allow the Wastewater Treatment Plant to buy a server for their PC’s for money they saved on their telephone updating system. Let it be shown that the Public Work’s Director is in favor of it. De Weerd: Second. Corrie: Motion has been made and seconded is there any further discussion. All those in favor say aye. Opposed no. All ayes. MOTION CARRIED: THREE AYES, ONE ABSENT Kilchenmann: There was one other item I wanted to mention and that was concerning the web page. The Information User Committee has addressed that and they have set – they have a Web Committee I believe that the Police of Chief – ***End Of Side One*** Kilchenmann: -- that committee. We are moving forward on it and trying to address that. Corrie: Great that’s good thank you. Meridian City Pre-Council Meeting March 25, 2003 Page 19 of 31 Bird: Thanks Stacy. Item 5. Ten Year Work Plan Presentation by Layne Dodson of Idaho Power Company: Corrie: All right now Layne. Nary: They’re not sure they want to come up now. Dodson: Mr. Mayor Members of the Council my name is Layne Dodson from Idaho Power. I appreciate you taking the time to hear a little update on where we are with the infrastructure needs out here in Meridian. A while back, I was out and we talked about a 75-year ultimate build out plan. Well we’ve dialed that down to a 10 year look ahead and what we’ve got today to share with you is what we see in the next 10 years for infrastructure needs here in the City of Meridian or and around the City of Meridian. Actually, we’re in fairly good shape as far as providing electricity to the developing community out here. The completion of Stoddard Substation last year added much needed capacity on the south side of town. The Ten Mile Substation that is situated just north of Ustick on Ten Mile that hasn’t been built yet but it has been permitted by Ada County and is sitting in a perfect spot for that development of the Northwest Meridian area so we’re in good shape there. Jeff Naufsinger is a Distribution Planning Engineer he’s with me today and he’s going to share this PowerPoint presentation and indicate which projects that we say are going to have impact in the area around Meridian in the next 10 years. Now there are going to be dates on these. It’s actually going to be driven by demand. As we see the load on our system that’s when those will be built but we’ve got some dates in there as what we’re estimating based on he’ll go into some of the growth parameters that we’re looking at and explain what we’re looking at in the future. I’ll turn it over to Jeff Nofsinger who’s the Planning Engineer. Nofsinger:Mayor and Members -- Mayor and Members of the Council thank you. As Layne talked about we started as 75 year and we brought it back to 10 year. A little background on how I went about getting the loading in the areas. I got a copy of your future land use map and we assigned certain load levels to each type of zoning, commercial, residential, and industrial. Then we look at how much that we can support from each station and therefore we figure out the service area of the station and then we place them and they try to be two miles apart out in the Meridian area. That is how we came and developed the plan of where to put the stations in the Meridian area is it’s based upon the land use as in the future land use map for Meridian. Just a little background on it and this is for the entire Treasure Valley these numbers here. In total in the next approximately 10 years we’re going to have 84 and a half miles of new 138 line, 11 new stations, two 23138 stations and they’re the supply for the substation such as over here in Meridian three new stations with 23138 ties and 28 miles of Meridian City Pre-Council Meeting March 25, 2003 Page 20 of 31 the 230 transmission line. The 230 transmission line is basically what you see on Eagle Road and the 138 transmission is what would go from Black Cat north of Black Cat Road presently is the 138. It’s smaller. Some of the line along Franklin Road east from Meridian those are actually the – they were placed earlier when they rebuilt the road for the road widening and those seal structures are what’s going to be used for the future 138 lines. Those are already in place and that’s the size structures we’ll use. This is the overview of the Treasure Valley. You can see Meridian’s pretty much in the center of the Treasure Valley. You can see the Stoddard Station and the Black Cat Station. The green stations up there are present stations that presently exist and the Locust Station which is up at Locust Grove and McMillan is on there. What – we’ll go into a little detail but there’s Black Cat Station and that’s over in Nampa. Meridian is to the right there is Meridian. We’ll go into detail that’s just kind of an overview there. In 2004 in the Meridian area, we’re going to be putting in a 230 KV Station at well what is the Garnet Power Plant site. It still is a permitted site and since the plans were already through to put a 230 KV Line, we are going to continue with those plans. The site is up there north of Middletown. It comes through Caldwell through the site and it will follow the railroad to I believe that’s that should be Chinden and across Chinden. Then it drops down into Locust off of Chinden. 2005 in this area will have the Hillsdale Station and we’ll also being doing an upgrade to the Meridian Station to – it’s presently a 69 KV Station and we’ll be upgrading it to a 138. The Ten Mile Station is going to be put in it’s – the site is already permitted, posted and fenced and we’ll be actually building the station. Another station that supports the Farwest of the Meridian area is the Star and Ustick Road Station. There you can see the Hillsdale Station it’s at Eagle and Amity Road. It’s basically being – the growth down Cloverdale Road with the subdivisions is the factor for the Hillsdale Station. It does come as far north as the development on the corner of Eagle and Overland that will be in this stations area. There are also some fairly large subdivisions going up around Eagle Road in that area. The Meridian Station we’re going to – presently Black Cat is a 138 KV Station and we’re going to go between Black Cat and Cloverdale in two steps. In 2005 we’ll go from Black Cat to Meridian there’s virtually no changes in the Meridian Substation. They’re dual use transformers and it’s just a matter of where we connect the 138. Physically it’s just going to be putting the line the new line down Meridian Road upgrading the 69 system. It may include changing some of the old restructures but it will go on the same right of way basically the same place that the 69 runs currently is where that one will go. The Star Road and Ustick Station is Star Road and Ustick. What’s pushing that station is the development around the Sugar Factory area, the Idaho Center, the new BSU Campus et cetera. It’s like I say it’s west of Meridian but it’s still in the vicinity. In 2006 we’ll upgrade the line between Meridian and Cloverdale and it would be the same as the first part of the line we’ll just be going down the current 69 line and upgrading where necessary. In 2012 there’s – in the Meridian area that is pretty much all that gets done in the new future as far as stations. We’ll – we have this station here at (inaudible) it’s upgraded and that is for a Columbia and Meridian Road Station which is south. That is also for the developments in the area. Meridian City Pre-Council Meeting March 25, 2003 Page 21 of 31 Beyond 2012 you have the other stations at Amity and Ten Mile, which is just outside of the Meridian Land Use Map area. Chinden and McDermott are basically at the far north of the area and then you have the Columbia and Meridian Road station showed there. I showed that at Mora but it comes out of Mora and south of Meridian. You have the Ten Mile and Amity Station is – and we try to put these on the corners as you notice. That station will also be a 230 station, which we’ll go over in a minute. The last one is the Chinden and McDermott and it’s basically for the four north south of the river is what that stations for. Then we go into the 230 lines. All the stations and lines that I talked about earlier those are 138 and this is the 230. Where – how it effects the Meridian area is basically we will have a line that will need to go between the Amity, the Ten Mile Station, and the Cloverdale Station. The proposed route or one of the available routes is to come through the Meridian area on the railroad right of way. It’s the preferred route and it’s due to the 138 lines that are already on the Franklin Road however, that – it can go there or it can go on Franklin Road. Those lines can it can be upgraded to do that and that’s a matter of timing, road widening, et cetera that we’ll drive where that 230 line is placed. That’s probably the biggest impact item that we’ve proposed to do. That line it will be somewhere in the neighborhood of the year 2008, 2009 is where that line will be coming through. That’s all I have thank you. Excuse me any questions? De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: On the – do you work in coordination with ACHD and when they do their road widening projects and that sort of thing? Nofsinger: Yes we do. We try to work very close with them that way we can coordinate right of way. If one of us goes in first then it – we normally can split most of the costs when they do a road widening so it benefits both ourselves and ACHD to coordinate this. That’s one of the reasons we like to get the information of where we are proposing to put these lines out as early as possible so that when it comes up in the five-year ACHD Plan we can have talked to them you know basically when it comes out and then work with them as they develop their plans. De Weerd: And all the sites that you have there have those been acquired or are we going to find one of those contiguous applications things that we did what a year or two ago on the south? Nofsinger: And that’s exactly what we’re trying to prevent. The Hillsdale Site which is at the Amity and Eagle Road has been acquired, it’s been permitted, the Master Site Plan’s been approved it’s all set and ready. The Ten Mile Station has been approved, bought and like I say there has been development at that site. The only other site in the area is or that’s close in is the Ten Mile and Meridian City Pre-Council Meeting March 25, 2003 Page 22 of 31 excuse me let’s see yes the Ten Mile and Amity site is the next one – and that is on we are looking presently at acquiring the property there and starting into the process of developing that site. That site’s basically in the 2008 timeframe we’re looking at using that site. We’re trying to get at least the five years ahead if not farther on getting the sites and insuring that everyone knows that it’s going to be there. That no one’s going to be – you know six months after they buy their house see something come through and go I didn’t know. That’s a lot of what of what we do is to prevent that. We – you know we try to be the least impacting as possible when we do things and if everyone knows it’s there it’s something like some of the lines that presently exist. No one when they drive up Eagle Road stares up at the towers that are there because they’ve been there and you know there it is. It’s when you go in and go well I want to bring some new ones through that people tend to go well I don’t know if I’ll like that. If we work far enough ahead, we can head off a lot of those potential problems. De Weerd: I think you participated or I believe Layne was there during our Comprehensive Plan Meeting. Are these now all adequately or accurately reflected on our Comprehensive Plan Land Use Map? Dodson: I’m not sure if all of them are or not but I think for the most part I think we are up to date. There have been some changes in our planning like on this 230 line and those types of things. Those have come in since that – since we went through that process. Yes, we want to get this all back onto those maps. I didn’t want to (inaudible) slides up there. There are two lines I think that are going to be very significant and those are the 230 KV lines along Eagle Road there and then through Meridian. Those are tall lines we want you to be aware that you know there’s defiantly a need in the future for those. There are some fairly well defined corridors whether it’s Franklin Road or the railroad tracks there on that east west corridor and then you’ve got the Eagle Road north south. I think Meridian is shaping up to be in pretty good shape as far as the having the power – added the power to develop so your ultimate build out scenarios this – you’re seeing right here virtually. Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: So that, Mr. Dodson that 230 KV line up is that similar to what’s on the Eagle Road now? Dodson: What you see along Eagle Road on the east side let’s say from the railroad tracks to the North McMillan Road that’s 230 KV line there. That would be similar. Nary: Thank you. Meridian City Pre-Council Meeting March 25, 2003 Page 23 of 31 Bird: What’s going down Overland now? Dodson: That’s 138. Bird: 138. Nofsinger: Actually the 230 line both the one south on Eagle and the west through Meridian will be smaller than that. That line is actually set up for double circuit capability and these will be single circuits that unless we put it down on Franklin then it will be a double circuit with the 138. If it is a single circuit they tend to be about eight to 10 feet lower than the one on Eagle so it’s not quite that bit but in the vicinity. Dodson: It’s still tall. Nofsinger: It’s still pretty tall yes. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I guess with some of the changes that are coming up with our Comprehensive Plan I would like to see if we could pretty much get this going with those amendments Brad so that we can have it accurately reflected in our Comprehensive Plan. We do have citizens that look at this. We will have it online and so I think the more we can let the public know what the plans are how we can help you with your public relations I think that will benefit everyone. Dodson: That is our desire and as Jeff mentioned the sites that we do not have acquire – we have not acquired yet we are in the process of doing that. We’re pushing and we’re going out seven to 10 years, buying those properties, going through, and getting those permitted with Ada County at this point. We’re trying to get well ahead of the game unlike we were with the Stoddard and some other stations we’ve had. De Weerd: Will you be bringing it into the city as we grow to those sites or what are your plans with that or are we going to have to force annex you? We don’t do that. If you’re contiguous like your Five Mile front before you would build on that would you ask for annexation? Dodson: Oh on the Ten Mile? De Weerd: Yes. Dodson: We probably would. Meridian City Pre-Council Meeting March 25, 2003 Page 24 of 31 De Weerd: Okay. Dodson: One thing about the substations they don’t require much in the way of services that’s for sure. De Weerd: I just hope your signs are big enough. I think the one out at Ten Mile that’s very – Dodson: We’ve got a sign at Cloverdale too. De Weerd: -- noticeable. Dodson: That’s one of the conditions that Ada County wants. As soon as we get them permitted, they want the signs to go up to inform the neighbors and potential neighbors to know that those are going to be in the area. We want to preserve the corridors too and then if we can we’ll work with the developers as they come in with their plats and try to get those indicated along their plat so they know that there’s a future line for that. Thank you. Corrie: Thank you Layne, thank you. Item 6. Sage Community Resources Presentation: Corrie: Okay the next one is the Sage Community Resource Presentation Mayor Garrett you’re group is up. Simko: Good evening my name is Kathleen Simko and I’m the director for Sage Community Resources. With me, this evening is Mayor Garrett Nancolas he’s the Mayor of Caldwell and he’s the immediate past president of our Board of Directors. Also, with me, this evening is Council Member John Evans from Garden City. John is also on our board he is our Secretary Treasurer. I have packets that I’ll leave with you when I’m finished when we’re finished. We appreciate the opportunity to be here to address the Council this evening. I’ve gotten the information that I’m going to cover in the packet as well as some additional information that you might find of interest. I thought it would be helpful if I started with a little bit of an overview. I don’t want to assume that you may know who we are, what we do, or how we serve our community so I would like to start with that. We’ll be, excuse me we’ll be 32 years old this fall and we serve the 10 counties in southwestern Idaho known as Region 3. Our mission is to provide community and economic development assistance to our member communities through collaborative partnerships to enhance the quality of life. We do that through five major programs or departments that offer services. First is business development and that provides a variety of services to new or existing businesses particularly with the focus on rural minority and women owned or women interested business owners focusing on low income. We have a Development Finance Department and that’s basically the lending arm of our Meridian City Pre-Council Meeting March 25, 2003 Page 25 of 31 organization. We have several loan programs available to qualifying businesses in our service area including SBA Micro loans. In many cases, these are very small loans less than 10,000 dollars. We don’t like the term lender of last resort but in many cases, our clients must be turned down by (inaudible) banking or financial institution before they are eligible for these loans. We have approximately 85 active loans totaling about three million dollars. Work source is the contractor to the state for Workforce Investment Act Services. We are the only region in the state that doesn’t go through the Department of Employment. We primarily focus on employment training related services that are targeted to youth, adults, and dislocated workers. You might be familiar with the one stop career center. They are a subcontractor to work source, which is a department of Sage. Many people don’t realize they’re part of Stage but they are. Another department is the area Agency on Aging. Again that sort of has a life of it’s own but Sage contracts with the Idaho Commission on Aging to be the area Agency on Aging for Region 3. We provide services either directly or indirectly through contractors that include things like the congregate home delivered meals, transportation, homemaker, chore services, adult protection, case management, health promotion are ideas of those kinds of programs. Finally, our Planning Department partners with local communities in providing grant assistance. We are the economic development district for Region 3 as designated by the Economic Development Administration the federal. We do the – we get a small amount of the money to administer and update the (inaudible) plan that’s done each year. Some of our grant sources may have restrictions on them that eliminate projects but our team can always be called upon for assistance and resource sharing. I think it’s important to note that since 1986 the last 16 years our team has generated grants to our member communities in excess of 48 million dollars and that is not the total project value that is just a value of the grants that have been received by those communities. If you look at the project value it’s much more significant than that and that doesn’t talk about or address secondary or truitiary benefits such as job creation that may be a component of that grant or infrastructure upgrade and other benefits the community has been able to gain through those grants. This evening even though Meridian might not meet some of the eligibility requirements with low to moderate income that many of our grants look to I think there is still a lot of potential projects that could be eligible. For example, infrastructure projects are those leading to job creation in which at least 51 percent of those impacted meet the low to moderate income requirements those projects could be eligible. Some transportation projects may be eligible. As an example, I believe the Meridian Boys and Girls Club could be eligible because they target at risk youth. Our staff has been out recently to look at the renovation project proposed for the Meridian Senior Center and that is definitely an eligible project. Typically, those grant awards receive the minimum amount of 100,000 dollars for renovation 150 is for a new construction, 150 is eligible for renovation. Currently we even have a project that is receiving USDA grant that we’ve provided assistance to that is a limited liability company. Sometimes it’s all how you structure the project that makes it eligible. I was asked specifically this evening to address some of the projects that we’ve been Meridian City Pre-Council Meeting March 25, 2003 Page 26 of 31 involved with the City of Caldwell. I’ll mention a few and then perhaps Mayor Nancolas would like to comment on those. Just of some examples, Sage can be resource developed in economic adjustment strategy for Caldwell to look at development issues and decisions needed along the Indian Creek Corridor. We’re also currently working with the City of Caldwell to provide the economic development via visibility (inaudible) excuse me of their downtown as well as the corridor along the Indian Creek to the airport. We’re looking in partnership with the core of engineers which would be a four to six million dollar project that would daylight Indian Creek through downtown Caldwell. Was that based on the carwash that went into the river was that part of that project Mayor Nancolas? Nancolas: (Inaudible) Simko: Okay I thought maybe it stimulated something really wonderful out of that. Caldwell has formerly establishes, has formerly established as an Urban Renewal Area and designated a slum and blight area within downtown which makes it eligible for projects. There are multiple public and private funding sources that are going to be leveraged depending upon the funding criteria. I think things like the Senior Centers projects that target the at risk youths also things that might be deemed emanate threat could certainly be projects that would be eligible for the City of Meridian. Mayor Nancolas would you like to talk on any of those particular projects? Nancolas: Honorable Mr. Mayor and Council Members it’s a pleasure to be with you this evening and thank you for allowing us the time. The one thing that I wanted to talk about just for a moment if I may and the thing that probably – even though these projects are here the most valuable thing to me so far has been the relationships that we’ve developed with EDA with the Department of Commerce through the relationship that we have with Sage. As you know Sage has gone through some transition over the last couple of years and we have a new Executive Director. The board has been rejuvenated revitalized and I think we have a very good working relationship with the member agencies that we represent. Obviously there are a lot more advantages to being a partner with Sage than just the economic development side of it. In talking to Council Member de Weerd, she asked me to specifically address some of those issues. We have had the good fortune of actually developing relationships with A. Leonard Smith who is the Regional Director for EDA in Seattle. We’ve had the (inaudible) of developing wonderful relationships with Pat Madarieta, Jan Blickenstaff and the Department of Commerce here in or excuse me in Boise. The projects that Kathleen has referred to are all a direct result of the working relationship that we’ve been able to develop and convey our desires, our dreams, our needs with those persons who happen to be depositions. To understand how the programs work and then help guide us in the direction so that we have good grants and good processes to go through to ensure our success. If you take a look at what’s happened to Caldwell in just the last few years the main thing that I would like to talk about to begin with was what kicked us all off was a Meridian City Pre-Council Meeting March 25, 2003 Page 27 of 31 two million dollar grant that Sage helped us obtain through (inaudible) and the staff to put in two million dollars worth of infrastructure in the area of our airport. That area was totally nonexistent in a growth pattern nothing was happening out there. Farm ground that hadn’t been developed because we had no infrastructure next to our industrial airport and there was simply no growth. Through a partnership with Sage, EDA, the Department of Commerce, the City of Caldwell, and also the Urban Renewal Agency, again the relationships and the partnerships here are very, very vital. We were able to obtain a grant that allowed us to put in two million dollars worth of water lines, sewer lines, build a road that connected our airport with 2026. Since that time since that has happened we have annexed in that area 1300 acres of ground, the development out there is going nuts and it’s been a tremendous boom for the Cit of Caldwell that we probably won’t really recognize the value of for many, many years to come. Again it started with the relationship through Sage to those agencies that could help us accomplish that. That’s on project and as you know, we have really begun to turn the wheels in Caldwell. The other projects that’s she’s mentioned Indian Creek, downtown revitalization, and economic adjustment strategy grant for our airport to help us build a terminal there. Also to do some study for downtown circulation, economic development for downtown, how we’re going to tie the downtown with the college and Indian Creek together. Those things would not have been possible without the efforts of Sage Community Resources. I don’t know what our dues are each year 3500 dollars 3600 dollars peanuts whatever it is. Really if you would look at the return on investment to what we’ve been able to obtain over the years through our association with COMPASS and that’s not to mention the senior programs, work source programs you know the many, many things that they offer the micro loans. Those programs are in excess of that but if you look at just simply what we’ve been able to obtain through our relationship with Sage I would think it would be really hard to find any kind of investment that would pay you that kind of return no matter where you go. Those are my comments Mr. Mayor, Council Members I would encourage you to seriously take a look at becoming a part again of Sage Community Resources, developing the relationships that have been so valuable to us and obviously we have great relationships with you already many of us work together. This is a wonderful relationship that we have. I would stand for any questions or turn the time back over to Kathleen. Simko: The majority of our operating budget or the funds that we operate with are state and federal passed through, through contracts. We have very, very limited resources in the way of what we deem unrestricted funds. A lot of times that serves as match for other projects or it serves as (inaudible) capital to look at doing other things that we might need to do to serve our communities. As a member of Sage Community Resources, the dues that our members pay afford them access to the services. We realize that some communities for example the City of Boise may not be eligible or may not choose to use all of the services that we provide some of them may be offered any how. In the coming year the board is going to be exploring alternatives to the current due structures so that we can Meridian City Pre-Council Meeting March 25, 2003 Page 28 of 31 arrive at a membership rate that is more accruable and reflective of the benefits derived. Additionally we’re undertaking a more comprehensive strategic planning effort there will be a focus needs assessment that will help us determine what services the community’s use and value and what services we may look to developing as we diversify our product line if you will to our member communities. Our bylaws that are 30 some years old but still appropriate require the EDA portion requires us to have four members from Ada County. Currently there are some vacancies in those positions. Most of those, all of those are comprised of locally elected officials. There is one opportunity that Meridian might consider becoming more involved with in taking a seat on the board. Rich Haun who is one of members at large is our current president he works for Idaho Power. This isn’t collusion but he and I have been diligently working on getting our board up to full compliment but we do still have a vacancy in Ada County. Additionally, by paying membership dues each year you ensure that Sage Community Resources can help you meet the needs of your community. I think as Garrett illustrated there is certainly a great, in my opinion a great return on the investment. In fact, one of the pieces of information that will be in your packet is what I call a return on membership. It was sent out last year with your due statement you should have hopefully seen it. Basically, it looks at what we’ve done in your community and each of the five major departments. It’s a very simple one-page (inaudible) impact on what we’ve given you for your dues. The information is outdate we’ll be sending out due statements again in April and they will be updated for that. For the packet, that you have is from a year ago our fiscal year ends in the end of October of each year. I think in closing what I would like to do is just turn the podium over for a moment to Council Member Evans so that he could offer some comments and then we would be happy to answer questions that the Council may have. Evans: Thank you Kathleen. Mr. Mayor Members of the Council it’s also a pleasure for me to be here. I have very little to add they have covered it fairly thoroughly with the exception of one area I think. That is an area of compliance. We’ve benefited by a number of grants in Garden City we’ve just finished the Senior Center addition and we’re going to Phase 2 to almost double the size of our center. With the federal money, there are a lot of strings. There are compliance issues that have to be very carefully followed and our experience with Sage’s Grant Administrators is we’ve had a clean compliance audits. I suspect that that’s the case in Caldwell as well, clean compliance audits at the finish of each of these projects, which sheds a very good light on obviously on Sage but back to the recipient of the grant, which is the City of Garden City. In today’s climate of scrutiny and accountability, it’s a very valuable service that we hold highly in our little town because the expertise is available there. They guide us completely through the process from the new (inaudible) that they want to see in their Public Hearing process right on through to the financial auditing and guiding our Treasure through the pass through process. That’s another valuable part of this whole program. Then the last thing I would like to comment on is the Area Agency on Aging. Benefits – the senior in Meridian are receiving the Meridian City Pre-Council Meeting March 25, 2003 Page 29 of 31 benefits through the Area of Agency. They will receive them whether you’re a member or not. From our perspective in Garden City, we view that portion as – from a little bigger picture as we allocate our dues appropriation every year and we consider the area three as part of that analysis. It’s philosophically the same kind of analysis we have with our membership with Valley Ride, with COMPASS, with the Treasure Valley Partnership and it’s kind of a collaboration of effort to accomplish an area wide (inaudible). Currently, services the bulk of the 10 county services of course are in Ada County. When you have an opportunity to see some of those in action, it’s a motivation to want to be a part of the effort to maintain the health of the organization that’s overseeing those efforts. Seniors at risk, seniors being abused by family members, the social services that are provided it’s heartwarming for us to be involved in those kinds of activities in an oversight position. It’s valuable from our city’s perspective to maintain the health – help maintain the health of the organization that does that oversight work. It’s not a profit center I can assure you. I will close with we have copies of our audit available. We are – we have multiple layers of financial oversight from the various funding sources. We are very tightly scrutinized externally and internally and any of that information is available at your request. We would be happy to provide it. Thank you. Corrie: Thank you John. De Weerd: Mr. Mayor. Corrie: Kathleen. Simko: Mr. Mayor I believe the packets they are labeled. Your does have a resource CD that contains the information for the entire 10 county region on what we’ve accomplished to each county. I guess with that if there are any questions we would be happy to entertain them. Corrie: Okay first let me thank both you Kathleen, John, and Garrett. It’s good to see you all, both all three of you. Thank you for the presentation tonight very well done. We will look at it. We have looked at it before and we – well you know what I’m talking about. We’ll do that now Mrs. de Weerd. De Weerd: I had a question for John that when you mentioned their administrative oversight of some of these grant programs what kind of time commitment does you own city staff have in regards to administering or reporting those kinds of things? Evans: It’s virtually nil. You’re literally guided completely through the process. Reports are prepared through the grant administrator. Sage as the grant administrator fulfills the legally mandated functions of reporting and essentially record keeping for the grant. It’s really a no load. Meridian City Pre-Council Meeting March 25, 2003 Page 30 of 31 De Weerd: So they write the grants and then they administer them as well? Evans: That’s correct. De Weerd: They do all the reporting. Evans: That’s correct. They will counsel us through the process. You know there are Public Hearing requirements for example there’s a certain format Carl’s very careful about indicating to us – Carl (inaudible) is one of the planners very careful about indicating to us what the format is and when to have the hearing and what kind of action needs to be taken. We just are very careful at those – that we follow those instructions because it keeps us in that again in that 100 percent compliance category so that when our name comes up again on the next turn in the barrel we’re one of those that have a clean audit. De Weerd: So in your grants with the Senior Center are you saying the Senior Center can apply those grants without your city’s participation? Evans: No the city participates. Our participation is approving and at the Council level the application to apply the grant. We are the pass through so we have to write a few checks. Again, the chronology and methodology to fulfill the grant is hand fed. We aren’t in a research mode. We have to sponsor the grant and the money that ends up getting awarded we distribute in a pre-described manner. De Weerd: And did you help the Boys and Girls Club then obtain their grant for improvements to their facility? Evans: We didn’t have a Boys and Girls Club grant through Sage the money for that was privately raised through some benefactors. De Weerd: I thought they had the parking lot improvements. Evans: Well, some of the improvements our Urban Renewal Agency did down there. De Weerd: Oh okay. Evans: But that wasn’t administered through Sage. However, we’ve had infrastructure improvements, the Senior Center, we’ve had one infrastructure improvements allowed our Misty Cove subsidized housing project to go in for first time homebuyers. You know the litany of things it goes on and on. It’s really a very a light load on administrative staff through the city. Again, the benefit cost to benefit ratio is astronomical from our perspective. De Weerd: Thank you. Meridian City Pre-Council Meeting March 25, 2003 Page 31 of 31 Corrie: Okay once again Kathleen, John, and Garrett I’m sorry. Nancolas: I want to make sure that there’s not a misunderstanding about one of Mrs. de Weerd’s questions. The cost associated with preparing a grant is none. In otherwards, Sage does that as a service. Once the grant is obtained, there is a portion of that grant that is dedicated to administrative fees. That doesn’t cost the city anything. In otherwards a 320,000-dollar grant there may be, I don’t know what the exact figure would be seven or eight percent of that would go to administration. That does go to Sage Community Resources the cost that would be associated though with preparing a grant which are countless hours of putting things together there is no charge for that whatsoever. Sage has no guarantee that you’re going to get the grant nor does the city. All that is done if you want to call it’s a (inaudible) all that work is done because of the relationship with Sage that saves the community thousands and thousands so I just didn’t want there to be any misunderstanding because there is no cost to prepare the grant. Once the grant is awarded, there is an administration fee that does go to Sage. I just wanted to clarify. I’m sorry Mr. Mayor I apologize. Corrie: You’re fine Mayor. Okay thank you very much the three of you appreciate it and thanks for coming tonight. I’ll share the disc I’ll have it made and then give it to the other Council Members. That concludes our Pre-Council Agenda. Council I will entertain a motion to close the Pre-Council Meeting. De Weerd: So moved. Bird: Second. Corrie: Motion made and second to close the Pre-Council Meeting all those in favor say aye. All ayes motion carried. MOTION CARRIED: THREE AYES, ONE ABSENT MEETING ADJOURNED AT 7:07 P.M. (TAPE ON FILE OF THESE PROCEEDINGS) APPROVED: / / ROBERT D. CORRIE, MAYOR DATE ATTESTED: WILLIAM G. BERG, JR., CITY CLERK