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HomeMy WebLinkAbout2009 02-24Meridian Citv Council Meeting February 24, 2009 A meeting of the Meridian City Council was called to order at 7:10 p.m., Tuesday, February 24, 2009, by Mayor Tammy de Weerd. Members Present: Mayor Tammy de Weerd, Keith Bird, Charlie Rountree, Brad Hoaglun, and David Zaremba. Others Present: Bill Nary, Tara Green, Pete Friedman, Bill Parsons, Tom Barry, Joe Silva, Stacy Kilchenmann, Jeff Lavey, and Dean Willis. Item 1: Roll-call Attendance: Roll call. X David Zaremba X Brad Hoaglun X Charlie Rountree X Keith Bird X Mayor Tammy de Weerd De Weerd: Good evening. We appreciate everyone being here and for your patience. I couldn't start tonight's meeting without the expected pins for our Boy Scouts. So, we had to locate them. Thank you for joining us here this evening. For the record, it is Tuesday, February 24th. It's 7:10. We will start tonight's meeting with roll call attendance. Madam Clerk. Item 2: Pledge of Allegiance: Cub Scout den from Pack 92 in Meridian De Weerd: Item No. 2 is our Pledge of Allegiance. Tonight we will have the pledge led by Cub Scout Den from Pack 92. They will also be posting our colors. If you will all rise. (Pledge of Allegiance recited.) De Weerd: If I can get our Cub Scouts up front for a moment. I would like to thank you on behalf of the City Council and myself for joining us this evening and posting our colors. We appreciate your involvement and certainly your involvement in the Scouts. It's a great program and we wish you great success. Our gift or token of appreciation is a City of Meridian pin. Most every week we are very fortunate to be able to start our meetings with our Boy Scouts or some youth group that leads us in the ledge. We appreciate the opportunity to highlight our youth and their citizenship in that fashion. Item 3: Community Invocation by Ralph Lowe with Meridian Gospel Tabernacle: De Weerd: Item No. 3 is our community invocation. Tonight we will be led in the invocation by Pastor Ralph Lowe. He is with Meridian Gospel Tabemacle. If you will, Meridian City Council February 24, 2009 Page 2 of 47 please, all join us in the community invocation or take this as an opportunity for a moment of reflection. Pastor. Lowe: Mayor de Weerd, Council Members, citizens, could you join me in prayer. Dear Heavenly Father, we thank you for the privilege of bringing your presence into this meeting tonight. You have encouraged us to pray for the welfare of our city that it might go well with us and so tonight we ask, oh, God, that these Council Members will have your ears to hear and have the insight and wisdom to make the decisions that will bless the community and the citizens of this wonderful city. Father, we thank you for your protection over it and we thank you for the tremendous service that these folks render us as the citizens of Meridian. Bless them tonight in a special way, Father, in your precious name we pray, amen and amen. De Weerd: Thank you, pastor, for joining us in another tradition of kicking off our meetings as well. Item 4: Adoption of the Agenda: De Weerd: Item No. 4 is adoption of the agenda. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: On the agenda, Item 6-A under the Mayor's office, number one, that resolution number will be 09-652. Item 12 is a public hearing for an annexation for King's Congregation Church. We have been requested to continue that until March 10th and not hear it tonight. Item 13, the ordinance number is 08-1399. And with that I move we adopt the agenda as amended. Hoaglun: Second. De Weerd: I have a motion and a second to approve the agenda as amended. All those in favor say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. Item 5: Consent Agenda: A. Drug Free Communities Grant: Professional Services Agreement with Leadership 1S B. Approve Blood Draw Agreement between Ada Countv EMS and the City of Meridian: Meridian City Council February 24, 2009 Page 3 of 47 C. Approve Business Associate Aureement with Ada Countv EMS and the City of Meridian: De Weerd: Okay. Item 5 is our Consent Agenda. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I move we adopt the Consent Agenda as published. Hoaglun: Second. De Weerd: I have a motion and a second to approve the Consent Agenda. If there is no discussion, Madam Clerk, will you, please, call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. MOTION CARRIED: ALL AYES. Item 6: Department Reports: A. Mayor's Office: 1. Resolution No. Reappointment of Dwictht Williams and Marv Jensen to the Meridian Arts Commission: De Weerd: Okay. Item No. 6. In front of you, Council, I do have a recommendation for the reappointment of Dwight Williams and Mary Jensen on the Meridian Arts Commission. It is a three year term. Their term has been expired this next month and so I am requesting to reappoint them to the seats they are currently holding. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I move that we approve the Resolution 09-652 for the reappointment of Dwight Williams and Mary Jensen. Bird: Second. De Weerd: I have a motion and a second to approve the reappointment to the Arts Commission. If there is no discussion, Madam Clerk, will you, please, call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. Meridian City Council February 24, 2009 Page 4 of 47 MOTION CARRIED: ALL AYES. Item 7: Items Moved from Consent Agenda: De Weerd: There were no items moved from the Consent Agenda. Item 8: Continued Public Hearing from February 10, 2009: MDA 08-007 Request to modify the Development Agreement for Solitude Place Subdivision by Solitude Development, LLC -east side of Meridian Road and south of McMillan Road: De Weerd: So, we will move to Item No. 8, which is a continued public hearing from February 10th on MDA 08-007. I will ask for staff comments. Friedman: Thank you, Madam Mayor, Members of the Council. Bill Parsons will be presenting this portion of the hearing. De Weerd: Thank you, Pete. Parsons: Thank you, Madam Mayor, Members of the Council. It's good to be before you tonight. It's been awhile. This project before you is a DA modification for Solitude Subdivision. The project was approved in 2006 and as part of that approval a DA was required for that. The planning director -- I guess a little history on this. Part of that DA elevations were not tied to that or building materials or anything of that nature was discussed at that -- were tied to the DA, but during the hearing the applicant did present to Council 13 different styles of homes, including four different elevations proposed for this subdivision. The subject site is located on the southeast comer of McMillan Road and Meridian Road. You can see the zoning map here. It was, again, zoned R-8. Phase two final plat is basically this portion here. It's not all of -- it doesn't extend all the way to McMillan Road, but it is just centrally -- this portion here is adjacent to this subdivision and touches with this subdivision as well. And you can see here that it's pretty much vacant land at this point. As I mentioned, the applicant did provide -- or discuss at that hearing what they were proposing to do out there and they have submitted that with their application before you tonight. These are what they have proposed before you in 2006 and so I'll go through them fairly quickly and you can backtrack if need be. So, you can see they are proposing a large variety of homes within that subdivision. Also, the reason why we are before you is because they requested a time extension and the planning director approved that and as part of the condition of approval for that time extension they were to modify the DA for the site. So, here is what staff tried to do for you tonight. Basically, staff went out there and took photos of existing homes on the property that we feel represent what we are trying to portray in the development agreement provisions and here you have a mix of materials as described in that DA provision. You have stone accents. You have your stucco. You have two different trim colors. You have shutters around the windows. Some of this verbiage for that DA provision came from, basically, three things. One, from the Meridian City Council February 24, 2009 Page 5 of 47 panels that the applicant submitted to us. Two, consistency with the design manual. And, three, all the homes surrounding this subdivision are all constructed with wood siding or stucco sided homes. Again, here is some more product that -- some of the photos that staff had taken to kind of demonstrate what we are at least trying to achieve with this DA modification based on our recommendation. The applicant also submitted some photos with their application. This -- these are some of the sample photos that they provided to us. The one up in the left-hand comer is the mix of siding materials -- vinyl siding. It has two different vinyl sidings. Again, it does have cover front porches as -- as provided in the DA provision and it also has the stone accent or the brick accent on the front of the garage. And then -- that's a pretty common theme. So, that's where staff looked at some of these elevations and liked some of the design features and incorporated those design features into the DA provision. Staff did not receive any written testimony as part of this application. And, again, staff is recommending approval of the DA -- of the DA modification as stated in the staff report and I would be happy to answer any questions Mayor or Council may have regarding this project. De Weerd: Thank you, Bill. Council, any questions? Bird: Not at this time, Mayor. De Weerd: Okay. Would the applicant like to come forward. Good evening. If you will, please, state your name and address for the record. Conger: Jeanie Conger. 1740 West Whiff Drive, Eagle. De Weerd: Thank you. Conger: Madam Mayor and distinguished Council Members, thank you for allowing us the opportunity to speak today. If you would advance the slide. Friedman: Why don't you just cue us when you would like us to. Conger: Thank you. We will take just a moment of your time. I wanted to explain why we are here today. First of all, we agree to comply with the open space requirement as staff recommended. However, we would like to amend the verbiage on the staff report to read as follows -- to avoid reading the entire paragraph I want to call attention to the three areas marked in red. The first is that we would like to strike the word pitched from varying pitched roof design, as pitch refers directly to the slope of a roof and not the design of a roof. Secondly, we would like to clarify the statement substantial pillars with substantial bases by adding the sentence -- the remainder of the sentence in parenthesis that says as shown in the renderings. And, lastly, we would like to amend this paragraph by striking out the second to the last sentence: And vinyl siding shall only be used as an accent material only. In reviewing the City of Meridian's goals we feel as a Meridian business we also have the same common goals. If you will notice the highlighted area says that the City of Meridian wants to offer family wage jobs, cutting edge health care, diverse housing options, a trained workforce, and an abundance of Meridian City Council February 24, 2009 Page 6 of 47 recreation, shopping, dining and entertainment opportunities. We at Hubble Homes absolutely believe that that's the right thing to do for the community. Next, please. Hubble is building quality homes in neighborhoods in Meridian right now and our mission statement as a company is to build quality homes and neighborhoods which exceed the expectation of our home buyers by providing more space for less money, more personal choice, and an enjoyable home buying experience. We did a little research on the City of Meridian and we wanted to take just a moment to clarify who our buyers are, as well as who the constituents are that live within the City of Meridian. As you can see by this chart, this is data from 2008, citydata.com. You can see there are 50.9 percent females and the median resident age is 30.1 years old. So, what that means is that the City of Meridian will be growing in population and in age. Next, please. When looking at who Meridian's largest employers are, you can see by far that the largest employer is the school district. Number two, T-Mobile center. St. Luke's. Blue Cross of Idaho. Those are all working family, working class jobs. Next, please. And that brings us to who the buyer is in Meridian. Most of the buyers are two working family -- or two member families who work. Both the husband and the wife work. You don't have a single wage earner in the majority of the households in Meridian. If you look at the average industry wages, construction, 32,884 is your average wage per year. Education and health services, 34,828. You can tell that you have to have combined incomes to reach the Meridian median household income. Next, please. Where it brings us to is based on an average household income of 63,000, on a best case scenario, if a family had absolutely no bills, they didn't have day care, they did not have a car payment, they didn't have a credit card payment, they would be able to qualify for a maximum sales price of 235,000, roughly. This is based on the FHA data for 2008 -- I'm sorry -- 2009, based on today's interest rates. Now, as we know when you have a dual working -- a dual income working family, most people will have at least one car payment, probably two car payments and day care and credit card bills. What that brings us to is because this scenario is based on best case, if you -- if you factor in car payments, day dare, credit card payments, that would lower the maximum amount that a buyer could afford to about 180,000. Next, please. So, when we are looking at our pricing, we believe that we are Meridian's quality affordable housing builder. If you're looking at our pricing, our floor plan number is approximate square footage. So, we offer starting at 1,400 square feet for 124,990 all the way up to 4,476 square feet for 201,000. That means that we can offer first time buyers, first time move up, as well as second time buyer. Next. Another factor that we believe we have to offer for the City of Meridian is that we are the largest Energy Star builder in the valley. Energy Star, we believe, as I believe the City of Meridian does, that, number one, it's the right thing to do. Energy Star is better heating and cooling, more energy efficient, better for the environment, it's better for the buyers. It certainly helps build a sustainable product within the City of Meridian. Next, please. Our strategy when we are designing our plans and our exterior materials and our elevations is based on buyer research. What we do is we survey every buyer in the valley, whether it was a new home, a used home, another builder's home, or a Hubble Home, and what those buyers have told us -- next, please -- is that if they had 5,000 dollars extra to spend, 30 percent of those buyers said they would rather have more space in their house. So, if we added hard board siding as a standard, it would decrease the affordability by approximately Meridian City Council February 24, 2009 Page 7 of 47 150 square feet. What that would mean to our buyers, your constituents, is that they would have to buy a smaller home if Meridian required hard board siding as standard. Next, please. I want to talk just briefly about our product. I know that we went over some of it in the staff report, but as you can see, we have two series of homes that we are building. Eight floor plans in the Legend series, five floor plans in the Signature series. Next, please. We have a total of 312 options that a buyer can choose on the exterior of their home, whether it's brick, stucco, hard board, stone, a third car garage. We do have varying roof pitches and the porch designs. There are a myriad of options that a buyer can choose. They can change shutters, front porch, garage door, window grids, and multiple color choices. Next, please. When buyers are given a choice, right now today this is our most frequently chosen plan. It's 2,717 square feet. Vinyl is a no cost option to the buyer. However, if you move to hard board siding as standard, that would add an additional 4,015 dollars to the cost of the home. Nine out of ten buyers right now are choosing vinyl as the option. They all have the choice whether or not they choose hard board siding or stucco or brick accents, but they are choosing vinyl. Next, please. There are some pictures of the elevations of the home. We have the vinyl elevations, as well as the other choices that we offer the buyer on one story. Next, please. And on a two story. And in conclusion, I want to talk very briefly about what the advantages we feel are of vinyl siding. Number one, the buyer can afford a larger home. Number two, it keeps the price differential between Meridian and Canyon County smaller, which is an incentive for home buyers to live and work in Meridian. I was listening to the Planning and Zoning Committee meeting and I think our -- all of our goals are to not have people drive through Meridian, but to work here, live here, not just pass through on our highways that they don't help support. Hubble Homes in Caldwell right now costs about 25,000 dollars less than a home in Meridian. If we make this change to hard board siding as standard, we are looking at about 30,000 dollars less on avenue. There is some more advantages to vinyl siding. It's less maintenance. It's a lower maintenance cost. It does not need to be painted. If you look at vinyl siding after 50 years, it looks new still, whereas hard board you may need to repaint every couple of years and there is no guarantee that the buyers will be diligent in maintaining their home and paying the extra cost of repainting their home. Vinyl siding is also an environmentally friendly material and is also recognized by the Green Building Council of America and the National Association of Home Builders as a green material. We believe that's the right thing to do and we are asking for your support to allow us to continue to offer vinyl siding, not as an accent, but as a buy choice in Meridian in the Solitude community. Any questions? De Weerd: Council, any questions? Rountree: I have none. Bird: I have none at this time. De Weerd: Okay. Thank you. Conger: Okay. Madam Mayor and Council Members, thank you. Meridian City Council February 24, 2009 Page 8 of 47 De Weerd: Okay. I did have a couple of people that did sign up. Clay Boyce. Good evening. Boyce: Good evening, Madam Mayor, Council Members. I put my business card up there, so you would know who I was. I'm -- De Weerd: You will need to -- yeah. Thank you. Boyce: I am Clay Boyce. I am the Outside Supply Center -- of a managed store here. Outside is the manufacturer of the vinyl siding, manufactured out of Ennis, Texas, and we distribute all our own products. We manufacture windows and siding and metal siding and metal sofFts. I put my phone numbers on there if you have any questions. First of all, I wanted to talk to you about why vinyl siding. There is four reasons that I wanted to talk to you guys today about and the first one is the maintenance issue. Go to the next slide. The main reason I'm in business is because I sell a maintenance free exterior product. It resists denting. Its solid color means scratches won't show, will not rot, chip, peel, flake like wood siding. The National Association of Home Builders, their research found that people want materials and products that require less maintenance. And it is the most popular siding in the U.S. This home needs painting already in Summerfield, as you can see there. This is a home that's about six years old. Next slide. More painting on this house. And more painting in Austin Creek, as you can see from those -- those slides. They are pretty new homes. This slide here shows that not only is it in new construction, but it's also in remodeling. It shows here that on an avenue 3,000 square foot home and wall space that it costs about 17,000 dollars to reside that home. Over the years after your fourth painting of that home it's up to over 33,000 dollars just in painting costs. So, it costs less over the years to use vinyl siding. Next slide. These are some pictures of some maintenance free homes. Next. Those pictures were taken in Heather Meadows. That subdivision, as you know -- it's not in Meridian, but it's in Boise. It's -- it's about eight years old. And none of those homes need to be painted. I encourage you to swing by there and just look at that subdivision. Our lifetime warranty states that we will pay for the labor and material for any fading issues over 400 units of Delta E. That is new in the vinyl siding business as of about three years ago. It's durable. Lasts a lifetime. It's attractive. It's available in dozens of profiles, styles, and colors to customize a building project. Here is something that -- here is some different styles of siding jobs that Hubble Homes has done. Also, building green is siding with the environment. By definition, you know, the U.S. Environmental Protection Agency says green building is a practice of creating structures and using processes that are environmentally responsible and resource efficient throughout a building's life cycle, from design to construction, operation, maintenance, renovation and deconstruction. So, the next slide, what that is -- De Weerd: Your time is up, sir. Boyce: Is it? Meridian City Council February 24, 2009 Page 9 of 47 De Weerd: Uh-huh. Boyce: Okay. I just have -- can I just go to two more slides? Go one more. This is the points here. I can give this to you. Why it's green. Go to the next slide. Next slide. You all got a packet here about vinyl siding. In there it highlights the importance of considering overall design, rather than focusing on materials. One more slide. This is the slide I want. Vinyl siding is the number one choice for homes at price points up to 250,000, second only to stucco at all price points about 250,000 and there is a couple more I can show you. But it just -- this next slide just shows that vinyl siding is the most popular siding -- De Weerd: Sir, your time is up. Boyce: Okay. De Weerd: Council, do you have questions? Rountree: Madam Mayor? De Weerd: Yes. Rountree: Could you go back to the slide that showed the two -- one was Tuscan something and one was something brick. Red. Are those particular -- those are vinyl siding? Boyce: Uh-huh. Rountree: And those particular siding materials are offered again at no extra cost on Hubble Homes? Boyce: I'm not sure. Rountree: Okay. De Weerd: I would ask that you go a couple of slides forward or -- no. Keep going. Oh. I mean forward -- further in the presentation. Bird: Back. De Weerd: Back. Rountree: She's backwards. Bird: Backwards. Meridian City Council February 24, 2009 Page 10 of 47 De Weerd: Keep going. Now, I just wanted the product picture. I like that. But that's not what we are talking about. It's three slides from the end. I was probably right to begin with. Bird: You were right. We were backwards. Friedman: Madam Mayor, was that on the previous presentation, perhaps, by the applicant? De Weerd: No. Friedman: Okay. De Weerd: Right there. That's beautiful. Boyce: It is. De Weerd: But I don't think that's what we are talking about. Boyce: You mean the home? De Weerd: No. I'm just -- the different uses of materials and textures and colors and all of that. That's not what we are seeing as part of the presentation and I think that's what our staff has asked is to have a variety and maybe this is not the conversation for you. Probably more -- Boyce: Because you're familiar with the corvels and everything, it's just the whole cost of it all. Of course, it adds quite a bit of cost to do something like that. De Weerd: Any other questions, Council? Rountree: No. De Weerd: Okay. Thank you. I do have a couple of others who have signed up on the sign-up sheet. Ralph Lowe signed up as neutral and I don't see him any longer. And Miguel. Would you like to provide testimony? Signed up also as neutral. Legarreta: Mayor, City Council, good to see you all tonight. Thank you for giving me just about one minute. I'm Miguel Legarreta. 9550 West Bubble Court. I'm here representing the Ada County Association of Realtors. This case -- this issue came across our desk here recently and specifically we don't take positions on particular developments one way or another, but, obviously, we do have some concerns with affordability, particularly at a time when we are seeing the market begin to stabilize and demand, again, to increase. The supply-demand curve appears to be coming into some kind of balance. So, certainly, we have a knee jerk reaction to anything that we feel might, you know, impact affordability and I certainly am here to learn more tonight and Meridian City Council February 24, 2009 Page 11 of 47 see why and I guess some of the nuances to this decision. But specifically at least wanted to give that two cents, you know, from a realtor's point of view and I think from all of us in the economy right now, the more we can maintain and hopefully see this affordability factor, you know, help begin to stabilize. the market, I think we are all going to be a lot happier and hopefully more comfortable. And, again, I am here to learn more about the specifics of this, but from my understanding of at least vinyl siding in general it is a -- certainly a comparable and a commonly used product in most housing and to see it, you know, increase the cost of housing potentially, you know, 5,000 dollars a unit on affordable housing, that does raise some concern. So, I look forward to hearing the debate and the discussion that you have as Council and being able to report that back to my -- my folks at the association. And I will stand for any questions. De Weerd: Thank you. Legarreta: Thank you. De Weerd: I think the market has kind of corrected the affordability. Legarreta: That's correct. And it has and we just don't want to see other things reverse that correction. The market we have seen has become more stabile. You're absolutely right. But it can quickly turn, as we have all seen, and, again, we want to see that and that factor. It is a real positive. I mean that's the one positive we have with the housing market and we want to see it maintained as best we can while balancing certainly the needs of the city, so -- thank you. De Weerd: Thank you. Okay. Is there anyone else who would like to provide testimony on subject? Thank you. Would the applicant like to do wrap-up remarks? Conger: Thank you, Madam Mayor and City Council Members. Again, we ask for your support -- De Weerd: If you could just restate your name for the record. Conger: I apologize. De Weerd: That's fine. Conger: Jeanie Conger. Representing Hubble Homes. And, again, we appreciate the opportunity to speak before you this evening and we would ask for your support in allowing us to use vinyl siding not just as an accent material, but as an option, a buyer choice item in our homes. Thank you very much. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Meridian City Council February 24, 2009 Page 12 of 47 Rountree: You heard my earlier question about the two different types of siding that were shown. One was Autumn Red and Tuscan Clay or some effect? Conger: Yes, sir. Rountree: Are those materials that are offered at no extra price in Hubble Homes or -- Conger: They are not currently offered at no additional charge. However, we do have, I believe, 12 colors available to our buyers. If it would please the Council, we can certainly look at adding additional colors at no additional charge. Rountree: Just curious. Thank you. Conger: Thank you. Any other questions? De Weerd: You may want to stand up here and see if staff has any comments or -- so you have an opportunity to respond. Friedman: Thank you, Madam Mayor, Council. I don't think that we have any additional comments. As was indicated by Bill and in our staff report, the -- just to take you back again, the original development agreement that was adopted for this subdivision, while there were elevations presented to Council, they were never -- and there was some representations about materials and so forth, primarily stucco and wood, they were never made a part of that development agreement. So, when we did approve the time extension, we looked to the guidance you provided us about time extensions and about trying to bring some of our projects into concert with current codes and standards and, therefore, we were able to go to the design manual, particularly the section on residential character and that was the basis for the recommendation. That and -- as well as reviewing some of the other homes within the subdivision, certainly not the majority of them, but there are homes within the subdivision that do have the combination of colors and materials that we recommended and also kind of reviewing the neighborhood surrounding the subject subdivision. So, that was pretty much the genesis of our recommendation to you. De Weerd: Thank you. Rountree: Madam Mayor? De Weerd: Mr. Bird. Bird: While she's still standing there, I got a question for staff. What is the objection to vinyl siding? You know, we -- all houses either have vinyl clad, wood windows or vinyl windows throughout. Is there a reason that we don't feel a house should be sided with vinyl siding, other than our design review, which -- De Weerd: You asked staff? Meridian City Council February 24, 2009 Page 13 of 47 Friedman: Madam Mayor, Council Member Bird, Council Members, again, you know, this is not about whether it's a staff preference or a choice, it really is what we were falling back on, was looking at the record of the subdivision and looking at our design guidelines. Certainly the matter of what is appropriate and not appropriate in this development agreement we would leave to your -- to your decision. De Weerd: Pete, can you describe in the design guidelines with the use of vinyl, what -- what the definitions are or if there are restrictions, what those are? Friedman: Certainly, Madam Mayor, Council Members. Looking in the design guideline section for -- residential design guidelines for architectural character, one says that vinyl siding is discouraged as an exterior material applied to cover large wall areas. Vinyl may be appropriate for accents and to create interest in the -- in the design. There is another guideline that says residential structure should use a cohesive color scheme, a minimum of two field colors, trim colors, front door colors, and so forth. So, that's pretty much the direction. Again, those guidelines were developed to just provide direction instance of subdivision review and design and development agreements and so forth. De Weerd: Well, was that intent --Igo back to Councilman Rountree's comments on the examples in the one slide provided by the representative on vinyl products, kind of was a two tone. It broke up the colors with different colors of materials. I think that was what the architectural design guidelines intent was is to break up just one massive face of that, is that correct? Friedman: That's correct, Madam Mayor, Council Members, and I think, you know, this is looking at sort of the context of a lot of different residential uses, so we might have a larger multi-family complex or something like that, so we are not getting large wall -- massive wall with just vinyl, where we do have some variety in the composition and the texture and in the materials. Another thing I think in the design guidelines it was also looking at where you have the potential for multiple structures, even single family detached structures, you know -- I'm trying to think of the best way to phrase this, but where you would have quite a few of the same where if there was really no relief, there was not mixing of materials or colors or textures, you could -- you could conceivably have just kind of one house after another and whether it's vinyl, whether it's hardy plank, whether it's something else, if there were no accents or changes of additional materials, it could be somewhat monotonous. De Weerd: Thank you. Mr. Bird, did that help in the clarification? Bird: Well, it's clarification, but in my eyes I don't see the difference of having a hard board or stucco wall against the vinyl siding. They all look -- you know, they are one wall and they are a certain color and stuff and the vinyl homes I have seen have been very nice looking to me and the upkeep is -- it's as I have said a hundred times, go to these subdivisions that got all stucco and all wood in five or six years and see that they Meridian City Council February 24, 2009 Page 14 of 47 look like. You have seen deteriorated hams that are not taken up, that's what houses look like. Hoaglun: Madam Mayor? If we could go back a couple slides, I think it was one of the first ones of Solitude Place? I want to look at a -- I had a question for you, Pete, on -- they were the photos of the -- one more. This one right here where the -- in fact, where the cursor is on that right hand one, the middle picture, when we talk about accent material only, if -- if they were to use vinyl in this, the roof cable I would assume could be an accent material, would that right side, which I assume is hard board, but could that be vinyl as well? Would that qualify as an accent material on that picture? Friedman: Madam Mayor, Council Members, Council Member Hoaglun, I think that's correct. I think, you know, where you have that one cable above the garage where you have -- pointed out you have that, that could be an accent material. Conceivably you could have that other room on the other end of the house, just that one plane there, because it's not a large expansive wall area, that could affect the vinyl, be treated the same way also as the room over on the side above the garage where you could have -- you could have so that the triangular portion framed by the gable is vinyl, you know, a number of combinations. Hoaglun: Thank you. De Weerd: Any other questions? Rountree: Madam Mayor, just a comment. One of the reasons we initiated design guides of -- to get the Council out of designing projects. Bird: I realize that, but as I said -- as I said when I voted for it, it was a mistake. Rountree: And we have the option of disagreeing with those guidelines if we so wish. So, I guess I would encourage us not to try to design this project, but act in whatever way somebody wants to make a motion and see where this goes, as opposed to trying to decide every elevation. De Weerd: Thank you, Mr. Rountree. Would you like to make a motion? Thank you, Mrs. Conger. Conger: Thank you very much. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: If there is no other public hearing, I move we close the public hearing on MDA 08- 007. Meridian City Council February 24, 2009 Page 15 of 47 Rountree: Second. De Weerd: I have a motion and a second to close the public hearing on this Item No. 8. All those in favor say aye. All ayes. Motion carries. MOTION CARRIES: ALL AYES. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I'll make a motion. I probably won't get a second, but we will try her. I move that we approve MDA 08-007 and strike on line three the pitched -- word pitched and on line five after bases in parenthesis I had: As shown in the renderings and on line 10, starting: And add vinyl siding shall only be used as an accent material only, strike that. That's my motion. De Weerd: Okay. I have a motion. Do I have a second? Rountree: I'll second. De Weerd: I have second. Any discussion? Okay. Hearing none, Madam Clerk, will you call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, nay. De Weerd: Okay. All ayes. Rountree: Madam Mayor? De Weerd: Yes. I mean three ayes, one nay. Sorry, Mr. Hoaglun. MOTION CARRIED: THREE AYES. ONE NAY. Rountree: There is a lot of reasons why I support this. But, one, it's an opportunity to see if our design guides are going to work. I would hope Don and company take a look at those and see what it is we are trying to accomplish in our community and be a credit to you and to the effort we went through with the architectural and the building community to come up with those guidelines. So, you're our test case. Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Hoaglun: Just a comment. I'm not anti vinyl, but, you know, I would like to see some of these projects where you're showing two colors and a variety of interests -- I think that Meridian City Council February 24, 2009 Page 16 of 47 just makes for a better neighborhood and a better look and so if you can incorporate that in there, I think that would be wonderful. De Weerd: Well -- and I agree with both comments. I think that was the intent of the design guidelines is to break that up somehow. So, if it was by color or even different textures of your vinyl siding, it's all the same and just breaking up one massive wall and I think that's staffs point as well. So, thank you. Item 9: Public Hearing: AZ 08-013 Request for Annexation and Zoning of 32 separate tax parcels owned by 28 different property owners consisting of a total of 55.6 acres that are currently receiving city water and/or sewer service by City of Meridian -various locations (see application): De Weerd: Okay. Item 9 is a public hearing on AZ 08-013. I will open this public hearing with staff comments. Hood: Thank you, Madam Mayor, Members of the Council. Item 9 on your agenda this evening is an annexation and zoning of 32 individual tax parcels owned by 28 different property owners, consisting of a total of 55.6 acres. As you can see from the map on the overhead and at your computer stations, these parcels are all over the city. The subject parcels are the ones that are in the teal color, again, at various locations north and south of the interstate. City staff is pursuing annexation of these parcels through the Category A process of Idaho State Code Section 50-222. Category A annexations require consent of the private land owners. In this case the private land owner has consented to annexation by connecting to a water and -- and/or a wastewater collection system operated by the city. So, staffs initial goals for pursuing annexation were to clean up the city boundaries and annex those properties that are receiving service, but not paying fair share for that service. Staff used the direction given by the Council during the June 10th and September 8th meetings to determine. which properties to include in the annexation. All the properties are contiguous to the current corporate boundaries of the city. They have a sewer and/or water service from the city. They are designated for land uses on the city's land use map of the Comprehensive Plan and are -- and I'll put quotes around this -- developed. So, they are not vacant properties. Using GIS and MUBs records, staff identified 80 some properties that are receiving service but are not yet annexed. Public Works staff, then, did field inspections to verify that at least one of those services was being provided to each property. We did have some discrepancies when we came up with that initial list of Public Works maybe showing somebody that is connected, but MUBs not billing those and vice-versa. So, we did field inspections to verify that, in fact, the connection did exist. Properties that were not included or were excluded from the subject are vacant or substantially undeveloped properties. So, there are some -- right around 50 properties still in our area of impact that had a service, but are not part of the subject application, again, just because they are substantially undeveloped is the main reason or vacant. Staff did not want to award these undeveloped parcels a city zone without requiring a DA, which is not part of the subject annexation application, as the application is initiated by the city. Of the properties in the annexation application, 22 contain single family homes. Three Meridian City Council February 24, 2009 Page 17 of 47 of the properties contain churches and there are commercial businesses. Eleven of the properties are in the same subdivision, Eastbrook Village. The subject properties have various zoning designations in Ada County and have various future land use map designations. Staff factored in current land uses and the city's Comprehensive Plan, as well as adjacent land uses when recommending zoning designations that most closely represent both the current and anticipated future land uses on each property. On October 15th staff held a neighborhood meeting at the old city hall with the folks that made the cut and FAQs were put on the city's website and the application was submitted in November. Notices were mailed. Public service announcements were faxed and the sites were posted in accordance with Meridian City Code and Idaho State Code. During the January 15th Planning and Zoning Commission hearing staff requested that 1725 and 1775 West Pine be removed from the application. This request was made of staff because one of the property owners had plans for use not consistent with staff proposed zoning and have since submitted an CPA, an annexation application which you will see next month. The other properties staff has teamed has an existing use that is not allowed by city code in that requested zone and staff did not want to annex this nonconforming use as it could create a code enforcement problem for the city. At the January 15th, 2009, public hearing the Planning and Zoning Commission voted to approve the annexation application subject to removing the parcels at 1725 and 1775 West Pine, as staff recommended, 700 West Overland, and 870 South Mustang from the application. Although the Commission recommended that 1725 and 1775 West Pine -- I'm going to jump back real quick. The properties on Pine are right over here. These two properties were removed from the application. 870 South Mustang, that's the one that petitioned to remove from the subject application and, then, 400 West Overland is right here. There are three parcels at 700 West Overland. Those properties were noticed for this City Council hearing. At the Commission meeting June and Kay Strait signed up in favor. Dennis Bailey, Greg Rudell, Randy Stewart, and Ted Williams all signed up in opposition. There were three property owners that attended and opposed. As I mentioned, the Commission recommended that two of those three not be included in annexation. The Commission and the city did receive written testimony from Mountain View Equipment and Dennis Bailey on this matter. Key issues of discussion by the Commission were which properties should be included in the subject annexation. They also had a discussion about SSC and when they start providing services to annexed properties. This discussion primarily revolved around the property at 870 Mustang. The rest of the subdivision's currently in the county and there was some concern brought up by that property owner that -- that SSC would have to drive into that subdivision and only pick up their trash. I did talk with Doug Mason either the next day or the week after that hearing. Doug works for SSC and he informed me that they amend their service boundary once a year and the earlier discussion was how does SSC get notified of when a property is annexed and, then, include them on their routes. They only do that annually. So, just after January they sit down with the other refuge providers and go over the properties and, then, adjust their routes accordingly. He also said that it's not uncommon for us to see -- to have to drive by other BFI or Allied properties to service an SSC site and it isn't a problem. The Commission also talked about -- briefly, but they did discuss what constitutes a service and also service being provided to a couple of Meridian City Council February 24, 2009 Page 18 of 47 places when only one service was currently being provided. That was the second one. I discussed potential nonconforming uses and structures. There is properties that only have one service now. Public Works has requested in the staff report that that other service be picked up within six months. So, there are 11 properties on this list that need that other service, so -- eight of them need sewer. They only have water now. And three of those 11 need water. They only have sewer now. And there are two other properties where that other service is currently not available. So, at 870 Mustang water is at a point now where it's not feasible to get them water within six months. After a main is within a certain distance -- I don't know what that distance is, two or three hundred feet, I believe, then, that property owner, then, would have six months to, then, hook up to that -- to that other system. And, then, sewer for the property at 646 Pine, which this is at a scale that I won't be able to distinguish between, but it's going to be one of these properties along Pine. Sewer service is not currently available. So, they are excluded from that six month time line to hook up to the other service. Just a couple of more points. In addition to the written testimony provided by Mountain View Equipment and Dennis Bailey, we received two letters this week from the Presbytery church representatives. One of the letters was from Tim Morgan who requests L-O, not R-8 zoning, for the property. And the second letter from the church was from David Gerbil and he requests approval of an accessory garden use on that site and that site is at 200 West Ustick Road. Let me just explain a little bit about stafFs request. The main reason that L-O wasn't recommended by staff for the church is the Council doesn't like to approve commercial zoning districts without a development plan and a DA. So, there was some concern about zoning five or so acres to L-O without having a redevelopment plan and a development agreement to say that that development plan is kosher with the city, so -- and in general rule of thumb for this annexation we -- staff requested the -- the least intrusive zoning district that we could, with still allowing these to continue without being illegal, so we didn't ask for R-2 for all of these. The commercial operations get a commercial zone. Residential gets residential zones. Churches are kind of a hybrid use, though. We don't have apublic/quasi-public zone, we only have that designation on our Comprehensive Plan. So, we struggle with that sometimes of what is an appropriate zoning designation for a church. That church did propose R-8 and had asked for L-O. Around 5:00 o'clock today I did get a voicemail from Tim Mulligan, too, and he was going through the application and he noticed that their -- there are churches as I mentioned earlier in my proposal this evening. One church is located up here on Chinden and Locust Grove and that one we proposed -- proposed R-8 again. And, then, there is another church on Locust Grove, an LDS church here, and staff actually requested in the application that that be L-O. I'd like to amend that application now. I don't -- I went through my notes, I don't know how that ended up that way. I remember going through the thought process for some reason thinking residential, because you can still have a church in residential zone. But I would, if the Council would oblige, change the property at 3451 North Locust Grove to be annexed with an R-8, not L-O as originally requested by staff. Just to kind of follow that thought up a little bit, I did do some -- some scanning of our current zoning map to see what other -- what other churches are zoned throughout the city, just to kind of give you a feel for what's going on there and I didn't count them all, just the ones I could think of off the top of my head are zoned L-O. Residential is probably the next most common. There are some C-N. I Meridian City Council February 24, 2009 Page 19 of 47 did only see one that was C-G. And, again, L-O is probably the most common zone for churches, but, again, they are all over -- all over the board in that regard. Staff doesn't have a problem with the request for the community garden at the site either. We look at it as an accessory use that regardless of zone, R-8 or L-O, would be something that we don't think the planning department necessarily needs to regulate or it's already regulated by being an accessory use to the church. So, we are fine with that. I understand the church wants to do a partnership and that may require some other further discussions with the Parks Department, but I'll let them touch on that if they chose. With that city staff believes that the annexation of the subject real properties are necessary to assure the orderly development of the city and are necessary to insure equitable -- equitability for all rate payers receiving public services from the city and I will stand for any questions that you may have. De Weerd: Council, any questions at this point? Bird: Not at this time. Rountree: I have none right now. Hoaglun: A quick question for Caleb if I might, Madam Mayor. You just touched on partnerships. In looking at churches and -- a lot of them have day cares and I know we have day cares in residential areas. Does the R-8 limit the size of that day care if they were to have a fairly large day care at that church site in an R-8? Hood: Madam Mayor, Councilman Hoaglun, let me look into that a little bit more. I certainly don't have that memorized. My first blush reaction is it can't be bigger than the church -- like you can't have a -- you know, you can't have 51 percent of your church set aside for the day care, it has to be ancillary to -- but let me check the zoning code and I'll get an answer for you what our standards are that way. Hoaglun: Well -- and maybe -- you might have answered there. As long -- so we don't look at the number of children, it's based on the size of the property of what it can handle is more what you look at? Hood: Again, typically when we see these requests it's -- we want to make -- we want to be able to make the finding that it's accessory. It's ancillary to the church use. And there are several churches -- you know, they have Wednesday services that's a church use. You can have day care. These community gardens. They all kind of bleed together. So, we just want to make sure that it is something that's within the realm of what the church does and builds there and isn't something that isn't church related and dwarFs what they do on Sundays and Wednesday nights or any other community services that they provide. Hoaglun: Okay. De Weerd: It is probably why some are L-O and others are R-8. Meridian City Council February 24, 2009 Page 20 of 47 Hoaglun: And a follow up if I might for Caleb. signage for some of these churches, I know that can be an issue, because it is a gray area and what -- what does that do, what does an R-8 do for their signage at these properties or -- you might talk about that briefly. Hood: Madam Mayor, Councilman Hoaglun, I was hoping you wouldn't bring that up, but you know, as a planner you try not to zone a site for a sign. I mean you really do want it to reflect more of the land use that's going on. We had one last year on Meridian Road that got a rezone for an electric sign in that case, but it really is limited to residential. And that is a good reason for a church to lobby for a nonresidential zoning district, is because you do get to have a lot more signage area and what you can do if you have an L-O, a C-N, C-G, a nonresidential zoning district, because I believe you're limited to four square feet in residential and I can't remember all the other standards, but it's a really small sign that's allowed. So, probably, your signs would be nonconforming if they are annexed with an R-8 zone, but -- yeah, we don't allow a lot in residential, but commercial certainly is much more. Hoaglun: Thank you. De Weerd: I think you just pled the case for L-O for all three church sites, so we don't have nonconforming uses. I would like to ask Chief Lavey for any comments. I know in our Swiss cheese map here there are concerns from public safety perspectives, so wanted to see if you had a few comments. Lavey: Madam Mayor, Council, pardon my cold. We do have a law enforcement perspective. Without taking specific thoughts on the properties, just some general comments that for law enforcement services the less pockets that we have the easier it is for providing the timely services that our citizens expect. Generally we are the first responders anyway to these parcels, because they are residing around the City of Meridian and the county is so far out and, then, with our MOU with the sheriffs office actually grants us jurisdiction if those properties are completely surrounded by city parcels, so we are already doing the services anyways. If that person ops for a sheriffs deputy, then, they can actually wait for that sheriffs deputy or they can deal with the officers already on the scene and talk with them. So, it definitely makes our job easier. Response can be quicker. There is less confusion is dispatch because of that. We adapt as it is now, but it would be easier if we made this change. Thank you. De Weerd: Thank you, chief. Silva: Madam Mayor, Members of the Council, from the fire perspective, obviously, if it's not within the city limits it becomes the jurisdiction of Meridian Rural Fire District, which we also service as per the agreement that the city has with the rural district. It provide some problems and some confusion with respect to code enforcement problems when we do have a problem in the rural district. It's not generally as easy to solve in the rural district from a code enforcement standpoint or from a -- we work with Meridian City Council February 24, 2009 Page 21 of 47 the City of Meridian's code enforcement folks to, you know, address problems that may exist within those pockets and are much earlier to solve when we -- when we can work with our internal staff to resolve those issues. Operationally not as big a challenge, but we, you know, have to look to -- in some cases Ada County Sheriffs Office to assist us with investigations and issues like that. De Weerd: Thank you, Deputy Chief Silva. Mr. Nary, I guess just a point of notice that when we have our joint meeting with the county, we will want to discuss the Title 9 -- is it Title 9? That's part of the area of impact and that they can adopt our standards -- our subdivision standards into their -- our area of impact, so we can ask that some of these codes are applied consistently and maybe that helps with code enforcement issues as well. Nary: Madam Mayor, Members of the Council, we could -- we can certainly add that to the agenda and that will -- that will at least give us some ability to have some mutual cooperation on the code enforcement end. So, you're correct, that would be the way to do it. De Weerd: Okay. Thank you. Okay. We did have a couple of people that did sign up on the testifying public hearing sheet and if you're not signed up you can testify anyway. But let me just do this sheet first. Dennis Bailey signed up against. Thank you for joining us. I see that you're a little bit disadvantaged. Bailey: Yeah. I have been that way for awhile now. De Weerd: If you will, please, state your name and address for the record. Bailey: Dennis Bailey. I reside at 870 Mustang, one of the properties in question. De Weerd: You wore the right logo, by the way. Bailey: Thank you. De Weerd: Good job. Bailey: Thank you, Madam Mayor and Council for hearing me. Most everything that I was going to say has been stated by the gentleman over there as far as what was said during the Planning and Zoning meeting, but a couple of the things that was brought out the service -- or the services that the city would have to bring to my property, I think was somewhat understated. The property -- I don't know -- on that map you can't really see the property. I did bring a little clearer map of the -- my particular property, if I could pass those around, would that be -- De Weerd: Pete, also can you either put it on your system over here or -- if you give us minute we will warm up the little Elmo thing. I can't remember if that's what it's called. Meridian City Council February 24, 2009 Page 22 of 47 Bailey: There we go. As you can see here on the map, even in the statement from staff and -- if I can recite an article that was in the paper announcing this annexation, this was to -- we are cleaning up our city map, cleaning up our boundaries. As you can see here, my property located there in the comer with the arrow, the yellow there that I just highlighted briefly, is the city boundary as current. Woodbridge being annexed in when they developed it. The Locust View Heights Subdivision, which is an older subdivision, it's been there for many years. I have been there 20 years myself. All we are annexing in is my property back in the comer. Yes. I do receive sewer service, but that was only because I was forced to and I did pay a latecomer's fee to receive that service and I paid my service every month. There will be behooving of annexing me in at this time and having someone have to come in for trash service clear back into the far comer of this subdivision, the only property in the subdivision being proposed by staff to annex. Police services, which was commented on before, I will be pocketed back in there, I will be now under the Meridian Police Department jurisdiction, which this has always been county back in there. This whole -- adding me into this annexation doesn't make any sense to me. It doesn't make any sense to anybody I have talked to, why this property was put into this annexation. There is no water -- was -- as said by staff, so they are not going to be able to give any other services, they are getting paid for the services they have got. Plus, I have also already paid a latecomer's fee to begin with to receive those services. I'm a little disgruntled that staff continues to try to include this in when this doesn't clean up the map of Meridian. It doesn't solve anything and it actually muddles it up even more. If you see the shape of my lot, it's -- it's going to be a real crazy little Meridian boundary right there in that comer for no good purpose that I can see. De Weerd: So, Mr. Bailey, do you agree with the Planning and Zoning Commission's recommendation to remove your property? Bailey: Yes, I do. And I was real pleased to hear. I just was surprised that it wasn't over, that that wasn't the end of it, and this -- I mean I realize that we are going to be annexed sooner or later, but the whole subdivision ought to be annexed at that time when services are available to make nice clean map of Meridian city. We are sitting in the middle, we know it's going to happen, but for me to be singled out in that subdivision doesn't make any sense at all at this time. I think we are jumping the gun. De Weerd: Well, thank you. Bailey: And so I -- I would implore you to follow the Planning and Zoning's recommendation and to eliminate my property from this current annexation. That's all I have. Bird: Madam Mayor? De Weerd: Mr. Bird has a question for you. Bird: Yeah. You made a statement that you were forced to take our sewer -- did the city force you or -- Meridian City Council February 24, 2009 Page 23 of 47 Bailey: Yes. Bird: For what reason? Bailey: The septic system went down and the geographics of my property is on a bluff and as you can see Five Mile Creek runs right through the middle. There was no place to put a new septic system in and the current system was un-repairable. Bird: But the city didn't force you to do it? The Central District Health forced you to do it. Bailey: Pardon me? Bird: Central District Health forced you to do it or Ada County, because they would not allow you to put in another septic -- Bailey: Well, whoever the entity. I had to go through Meridian city in order to -- to do that. The county said, no, I couldn't get a building permit to put a septic system in, I had to go through Meridian city, because I was in that area of impact and they said the only solution we have is that you will have to hook into the sewer line and disconnect your septic system. De Weerd: I think Mr. Bird just wanted on the record to clarify we didn't force you, it was probably Central District Health. Bailey: Combination. Yeah. Well -- De Weerd: Well, we don't want to be a combination there. Bailey: Meridian city did collect the -- for me to hook into it, so I did have to pay a hefty fee just to hook into that and -- it was quite an ordeal at the time. De Weerd: As do all of us. And we appreciate that. Any other questions for Mr Bailey? Bailey: Thank you. De Weerd: We also have Lyle Powers signed up. Good evening. If you will, please, state your name and address for the record. Powers: My name is Lyle Powers. I have a residence at 940 South Mustang, Meridian, Idaho. 83642. De Weerd: Thank you. Meridian City Council February 24, 2009 Page 24 of 47 Powers: I have a couple of questions that might be able to be answered very quickly. One, I have entered into an agreement of an easement with the city for a sewer line that runs up across the north side of my property, which is adjacent to 870 Mustang. The question is, will the city be annexing my piece of property because of the easement? De Weerd: Sir, I guess I will venture a guess since you're not one of the properties that was noticed, the answer would be no. Powers: Okay. De Weerd: And you don't receive any service -- Powers: No. De Weerd: -- water or sewer, it's just an easement. Powers: There is no -- I am not hooked up to any services. De Weerd: Okay. Powers: That in itself answers the second question. De Weerd: Okay. Powers: So, that was easy. I'm fast. I'm out of here. Rountree: Enjoy your evening. De Weerd: Okay. Those were the only two individuals signed up. Yes, Mr. Morgan. If you will, please, state your name and address for the record. Morgan: Hi. Timothy Morgan. I'm the chairman of the Property Management Committee for the Boise Presbytery at 201 West Ustick in Meridian. De Weerd: And call yourself Boise Presbytery? Morgan: The 15 churches in the Treasure Valley that are made up of -- De Weerd: I think you need to rename yourself. Morgan: Mayor, Council, the -- I apologize for not bringing this sooner to request to be limited office and give the Planning and Zoning Commission an opportunity to look at it, but -- and I think Mr. Hood made the case for me, that the advantages of the church being limited office, as opposed to a residential -- it's a permitted use. That's what we currently do there is a church and we plan to do that for some time. If it stays residential -- or if it is residential the disadvantages were it costs us additional money if we decide Meridian Ciry Council February 24, 2009 Page 25 of 47 to do an expansion or improve the property. It's additional money .for the Conditional Use Permit application and, then, the additional time with that. Just a few other things that's kind of what Reflections church has done in Meridian since its inception about three years ago. We have helped volunteer with the Mayor's State of the City address. We have participated with the Dairy Days activity. We helped the Boys and Girls Club move to their new facility. We have got representation on the Mayor's Faith Council -- or Faith Ambassadors and we are sponsoring a summer movie this summer, which is right across the street in Settler's Park. We have also talked to the Parks Department about helping use some of our parking for -- to augment your Settlers Park on Saturdays when they have lots of soccer events there. And we are interested in being a valuable part of this community and we -- the church is our principal function of this property. The preschool that's there is just ancillary to that. And the fact that it's -- the church is the most common -- as limited office. Our sign is bigger than four feet and I'm -- four square feet, but it's there already and I'm not sure -- I think it's maybe 20 -- 20 or 25 square feet there, so -- it is much bigger than a preschool sign, so all on the same thing. Thank you. De Weerd: Okay. Thank you. Council, any questions? Bird: I have none. De Weerd: Thank you. Any other testimony on this item? Okay. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: If I can throw in a side comment about the L-O district and -- when I was serving on the committee that helped write the new Unified Development Code, we originally set out to say that churches would be in the L-O zone only. We felt that was the appropriate place for them to be and we were moving along with that until somebody brought up, well, there are some churches that start cheaply by renting an industrial space and eventually move and, actually, it's discrimination to tell them that they can't be in C-G and other places that we could not take religious discrimination to deny any church a location that they want. So, what I'm giving is background that on our committee we thought L-O was the appropriate zone for churches. We ended up -- in the Unified Development Code I think they are allowed in almost every zone, except maybe R-2 and R-4. Just because of the anti-discrimination idea. But it was our intent that L-O be the primary zone for churches. De Weerd: Appreciate that background. Mr. Hoaglun. Hoaglun: Madam Mayor, I just wanted to ask Caleb or Pete, because my memory -- I can't recall when that church on Meridian Road received the C-G for the -- because of the sign issue. Wasn't there a letter or something -- and it was concern about not turning around and developing the property as it was zoned. Wasn't there some -- and Meridian City Council February 24, 2009 Page 26 of 47 I'm thinking for churches in an L-O, is there some mechanism you could say, okay, you're there as a church and if you actually want to convert to an actual business property limited office, that they have to come back as a conditional use process -- I can't recall if something was done for that property or -- and if it could be done for the these properties. Hood: Madam Mayor, Councilman Hoaglun, the -- typically -- and it was the case with that one -- they came to the city asking for that rezone, not the city initiating it. So, in that case we didn't have a development agreement that says here are the parameters you could develop from. We will grant you this sign, but you can't grow. Here is your church. If you want to add onto your church, that's fine, but you can't have retail behind it. So, we had a development agreement where we limited those to church type uses. With this application, because the city's initiating it, we don't have any development agreement that's being proposed, because we are the one initiating the application. So, some of these are five acres and if we look at the five acre office park here, we have pretty solid design guidelines where I think we could still get a fairly nice product, even if we just had to rely on our code if that's the way that the council chooses to go. I am a little bit concerned than the 201 Ustick and even the Locust Grove LDS church as 3451, the one on Chinden and Locust Grove is about 11 acres with frontage on a state highway. Without having a development agreement and just giving them L-O zoning, I have got a little more concern about what could go on there in the L-O zone with surplus land that the church might have and us not having a development plan for how that would -- I'm not trying to call them out, but certainly their situation is different. They are twice as big as the other two churches. De Weerd: Now, Caleb, they didn't have any objection to the R-8 zoning, though. Hood: I've not heard anything from the church -- De Weerd: And with the other two, one is requesting the L-O, the other one thought they had an L-O. So, it does make sense, because of their size, you feel comfortable with that. I agree the one on the comer, because they haven't asked for something different that therein lies the difference. Hood: I just want to make sure -- I wasn't quite sure if the direction was all churches should be L-O, then, and you were going to make that step to that church, because that church site certainly to me has enough difference that it shouldn't be treated that way if that's the direction you go. De Weerd: Well, I think that makes sense, your concern with the property size, and since that particular church hasn't raised any objections that it's understandable. Again, any other testimony on this item? Okay. Hood: Madam Mayor, I did just want to try to answer some questions to clear things up and doesn't muddy the waters anymore and it sounds like we are going with the L-O. First of all, just let me read our accessory use out of the UDC. It says a use that is Meridian City Council , February 24, 2009 Page 27 of 47 incidental and subordinate to the principal use and is conducted upon the same property. So, that's pretty straight forward. If you go with schedule of use control for churches, places of religious worship, it says that any ancillary churches should be treated -- or any ancillary uses shall be treated, essentially, the way that it is. So, if you want to do a day care, go see the schedule of use control. So, if you look at day cares in the R-8, they are not allowed. They are a C-U and -- C-U for a day care center in an L-O zoning district. And are permitted in the group and family. So, the two smaller sizes are principally permitted. The bigger one -- the bigger group, the center requires a Conditional Use Permit. I hope that helps, but that's how we kind of treat those ancillary uses. And, then, relating that back to a community garden, that ancillary use would not even require that accessory use or certificate of zoning compliance permit. They can go out there and plant a garden without having a classification in the UDC. So, it's just a variation of a lawn, basically. So, they wouldn't require separate permitting -- at least not by code, so unless the City Council wants to tell them something different. But they can just go out there and plant that community garden as far as we are concerned. De Weerd: Okay. Any questions from Council? Rountree: I have none. Bird: I have none. De Weerd: Okay. If there are no further comments, questions, or testimony, I would entertain a motion to close the public hearing. Rountree: So moved. Bird: Second. De Weerd: All those in favor of closing the public hearing on this item say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. De Weerd: Any discussion? Rountree: Madam Mayor, I have a question on moving forward. Is the motion to approve? Is the motion to prepare a resolution? Annexation ordinance? Mr. Nary, if can help me. Nary: Madam Mayor, Members of the Council, Council President Rountree, your motion is to approve the annexation application, which includes all of these. We will, then, be preparing annexation ordinances for each parcel that will, then, come back in front of you. You probably will not see all of them at once. I only have one legal assistant and the city clerk doesn't want to read 32 property descriptions in one Meridian City Council February 24, 2009 Page 28 of 47 meeting, so we will probably space them out. But the motion is to approve the annexation application. De Weerd: I'm sure Mrs. Green doesn't care. Future meetings she won't be sitting there. Any other questions? Rountree: I have none. De Weerd: Okay. Rountree: Madam Mayor? De Weerd: Yes. Rountree: I move that we approve the annexation and zoning application as outlined in Item No. 9, with the recommendation from Planning and Zoning with respect to excluding properties 1725, 1775 on West Pine, 700 West Overland and 870 South Mustang. That the church property on Ustick be zoned L-O and all of the remainder descriptions as outlined in the public notice be adhered to. Bird: Second. Hoaglun: Second. De Weerd: I have a motion and a second. Any discussion? Okay. Madam Clerk, will you, please, call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. MOTION CARRIED: ALL AYES. Item 10: Public Hearing: PP 08-011 Request for Preliminary Plat approval of 17 commercial lots on approximately 8.7 acres in a C-G zoning district for Trade Plaza by Trade Plaza Subdivision Development, LLC -Northwest Comer of Meridian Road and Corporate Drive: De Weerd: Okay. Item 10 is a public hearing on PP 08-011. I will ask for staff comments. It looks like Bill is up. Parsons: Thank you, Madam Mayor, Members of the Council. This is the Trade Plaza preliminary plat. The applicant is requesting -- is proposing to plat this property, 8.7 acres, with 17 commercial lots. The subject site is located on the northwest comer of Corporate Drive and Meridian Road. The physical address is 555 North Meridian Road. Right now the site is, basically, a vacant parcel, with the exception of the split corridor phasing going on right now. The construction of it seems to be some temporary things happening on that site from what I could tell driving by there, exposure to construction Meridian City Council February 24, 2009 Page 29 of 47 equipment and lights there. The intent for this project is, basically, the applicant wants to develop a credit union on the site, so they meet plat, because this property was platted through the City of Meridian and so that's what they are proposing tonight. Surrounding the subject property -- to the north you have Troutner Park Subdivision and John's Auto Care, zoned C-G. To the east is commercial restaurant zoned C-G. South of the site is a storage facility zoned C-G. And to the west is an unimproved parking lot and ofFice buildings, zoned C-G and L-O. A little history on this site that I want to just bring up to Council tonight. Basically, this project came before staff back in October of 2008 as the same project. With that recommendation at the P&Z and at that time P&Z had recommended that Corporate Drive be extended to and through from Meridian Road all the way to the western property boundary as the P&Z recommendation, based on a recommendation from the fire department and the police department. At that hearing the applicant said the cost for that would be too detrimental for them and they could not proceed with the project. So, prior to it coming before you they withdrew the application. We met with the applicant about a month later, because they really needed to get this property platted, so that they could sell the lot off to the Idaho -- sell the lot to the credit union that's proposed for the site. So, we met with them, discussed it with fire, and the police department and they were in agreement that with phase one they could stub Corporate Drive at the west property boundary at phase one and if you look on the plat here, you can see that they are proposing a radius turnaround for fire and police to access that subdivision and it will be paved also. So, I just wanted to put that out there for you. Again, P&Z recommended approval at their meeting on January 15th. Folks speaking in favor were Art Berry. Written testimony was provided by the applicant Lance Warrick, who was the engineer on the project. Key issues of discussion by Commission, one was cross-access between phase one and phase two, so right where my pointer is they are proposing four lots or -excuse me, five lots with phase one and, then, 12 lots are proposed with phase two. The other issue discussed was the extension of Corporate Drive with the Waltman project. As you know, there is some discussions that they are trying to get that to run through that property boundary and construct a bridge over that creek to have connectivity with this roadway in the future. Here is the landscape plan that they are proposing. Again, all the streets frontages will be installed with platting that's in substantial compliance with the code. The applicant is proposing landscaping within ACHD's right of way, so they will have to enter into a license agreement with them to proceed with that installation and planning. Key changes -- staff does not have any -- I apologize, staff does not have any elevations for you to view tonight. We took the approach again, as we have before, where we just adopted the new design manual and so we are taking that approach with this plat that we feel in the future when the applicant proposes development for this site, we can look at those buildings and through the CUP process or through design review and/or CZC process will insure that this site complies with the design manual and we get a nice project out there and the applicant is in agreement with that. Some changes to the staffs recommendation and changes that were discussed at the P&Z hearing, based on P&Z recommendations. They changed a couple conditions. In 1.1.1, second bullet, they basically said there will be possibility for cross-access between phase one and phase two and it never required in the future and so we kind of left it like that. If there is an applicant for that to happen, you have something in place that that would happen at Meridian City Council February 24, 2009 Page 30 of 47 the final plat of phase one. Again, the applicant doesn't really have a clear direction on how the site will develop, they only have one lot sold for a bank site at this time and so there really isn't a vision for how the other four lots with phase one are going to develop. So, we wanted to at least have some flexibility built into that, that if there is cross- access, they would have the option to pick and choose that site when they final plat or if it's not required, then, they may not have to do it. The other condition that was changed or added, I guess, was basically saying that staff would not issue any building permits until phase two was platted. So, that's one thing that we added as well. There are no outstanding issues for Council tonight and that concludes my presentation. I will be happy to answer any questions you may have. De Weerd: Thank you. Council, any questions? Bird: I have none. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: If you would go back to the previous slide. That phase one is four lots; is that correct? Or five? Parsons: Councilman Rountree, that is five lots. Rountree: Five lots. And how is access going to be provided to the northern lots in that subdivision? Parsons: Right here along Meridian Road, is that what you're referring to? Rountree: Yes. Parsons: Or to John's Auto Care? Rountree: Well -- Friedman: Northern lots. Parsons: Okay. I got you. For the two lots that -- Rountree: For those two lots, how are they going to get access? Parsons: There is some interesting history on this site that's detailed in the staff report, but let me try to explain to -- basically, because Meridian Road is going to be one way southbound, staff has restricted them to a right-in, right-out only access point. My understanding is the applicant entered into a settlement agreement with ACHD and it granted them access at that point and so we did get that documentation from the Meridian City Council February 24, 2009 Page 31 of 47 applicant and from ACHD that's saying they allowed that right-in and they were supportive of it, so staff went ahead and was supportive of it as well. I know when we went before Council -- or, excuse me, before P&Z prior to this withdrawal -- before withdrawing back in December, staff had recommended no access to Meridian Road and P&Z was in favor of allowing that right-in, right-out access point there on Meridian Road. Rountree: So, I guess to go further, the interior access, is that that's indicated, will that be deeded to the various lots so those accesses will always be there or how is that going to work? Parsons: Correct. Basically, if you look on the plat, too, they are also proposing a full access onto Corporate Drive there, so they will have an access -- put an easement or a note on the plat that depicts that access -- cross-access within that phase one. It won't be a public road. Rountree: Yeah. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Clarification on condition 1.1.1, third bullet. No building permits shall be issues for the unplatted portion. Are we talking about the other three lots in phase one or are we talking -- does that mean phase two and phase three? Parsons: Madam Mayor, Members of the Council, Councilman Zaremba, that is for phase two. Zaremba: Okay. I see there is two parts of phase two. Okay. Thanks. De Weerd: Okay. Is the applicant here? Good evening. Berry: Thank you, Madam Mayor, Members of the Council. Staff. My name is Arthur Berry. My address is 4804 Roberts Road in Boise and I am the managing member of the family partnership that owns phase one of the project. Ron Sargent and Rod Lopez, behind me, are the owners of the LLC, which owns phase two of the project, who I don't think will be speaking tonight. Thank you for letting us come. There is a long history in this project, even a little longer than the 1980 period, which Bill mentioned. If you recall, this was the old bone yard or junk yard of tractors that was the gateway to the city a few years ago. We have cleaned up the site, separated into two parcels, and, basically, have worked hard with ACHD to blend it in connection with the two way couplet and the Waltman connection and, hopefully, a real quality gateway entry point to the city in the future. As such we have sold the comer site to Ida-Div, a local credit union, who -- whose elevations we provided at the last Planning and Zoning meeting, demonstrate a serious commitment to making a very professional and high quality entry gateway to the Meridian City Council February 24, 2009 Page 32 of 47 project, as will the rest of the project will hopefully be -- at least phase one, which is a L- shaped, four parcel, commercial strip center or potentially high end restaurant with front end L-shaped in-line retail spaces. We have no objections to any recommendations made. I think the clarifications made about phase one and phase two on the platting were correctly stated and other than that I would ask for approval as recommended by both staff and the City Council. One last thing. The road -- there was an issue with ACHD and the road and that culminated in a contract that approved this access point and instead of having the two way access, which was allowed in the contract with ACHD, we deferred to a right-in and right-out only with the inevitable change in the highway coming by the time we probably will be done with construction. De Weerd: Thank you, Mr. Berry. Any questions for the applicant? Rountree: I have none. Hoaglun: No. De Weerd: Okay. Thank you very much. Okay. I had no one signed up on this item. Is there any member of the public who would like to offer testimony on this application? Okay. Council, any questions for staff? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: This would be for general discussion. On the two conditions that are identified here, the second bullet and third bullet -- let's go with the second bullet first. To me the word as necessary is way too vague and has too many interpretations. I'd like to leave those two words out and have the rest of the sentence stand the way it is. If they record across-access agreement and later decide they don't need it, it doesn't hurt to have the cross-access agreement. If they just don't use it, that's fine. But I -- my feeling is it should be recorded whether they later decide they need it or not. So, I would like the words as necessary. On the second bullet I would like to clarify two things. And what I would do is say no building permits will be issued for the unplatted portion identified as phase two until subsequent final plat or plats are recorded and, then, I would add another phrase that says: And Corporate Drive is completed to the west boundary. I think that's something that police and fire would want and doesn't actually affect phase one, but it does put them on notice that it will be a requirement for phase two. And propose both of those for general discussion. De Weerd: I guess I would ask the applicant to, please, come forward as well, if you have any comments? Friedman: Madam Mayor, Councilman Zaremba, there is a separate condition in the preliminary plat conditions of approval that they should extend Corporate Drive and 3rd Street with phase two of the project. So, it's already -- Meridian City Council February 24, 2009 Page 33 of 47 Zaremba: It's already -- then I don't need to add it here. Thank you. De Weerd: Okay. Do you feel comfortable with what has been discussed? If you will, please, state your name and address for the record. Sargent: Madam Mayor, Council Members, Ron Sargent, 1883 North Wildwood in Boise and we are in agreement with the suggested changes. We have no objections to those. De Weerd: Okay. If there is nothing further from Council, I would entertain a motion to close the public hearing. Zaremba: So moved. Rountree: Second. De Weerd: I have a motion and a second to close the public hearing on Item 10. All those in favor please say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I move that we approve Item 10, PP 08-011, to include all staff, applicant, and public testimony and with the modification as follows: Under condition 1.1.1, the second bullet, strike the two words as necessary and the rest of the sentence remains the same. On condition 1.1.1, third bullet, after the word unplatted portion, add identified as phase two and, then, the rest of the sentence remains the same and with that I'm done. Hoaglun: Second. De Weerd: Okay. I have a motion and a second. Any discussion? Hearing none, Madam Clark, will you, please, call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. MOTION CARRIED: ALL AYES. De Weerd: Thank you. I'm going to call a ten minute recess and we will reconvene at that point. (Recess.) Meridian City Council February 24, 2009 Page 34 of 47 Item 11: Public Hearing: Utility Rates Increase: De Weerd: I'll go ahead and call this meeting to order. If I waited any longer I think we would all continue to chat until it's late and we want to go home. The next item on the agenda, Item No. 11, is a public hearing on utility rate increase. I will open this public hearing with staff comments. Barry: Thank you, Madam Mayor, Members of the Council, Tom Barry, Public Works director. We are here to talk tonight about the utility rate modification. This is in an effort to keep pace -- keep the rates up to date with utility capital infrastructure needs and increased operational and maintenance expenses. Okay. What we are going to first start off with is a description of the Enterprise Fund performance over time and I'd like to introduce Stacy Kilchenmann, our CFO and finance director. Kilchenmann: Okay. This will be a very abbreviated, fast Enterprise Performance review. De Weerd: I thought you always started it out as this is going to be the most exciting part. Kilchemann: I know, but I use that line too many times. De Weerd: Not with this audience. Well, I guess with all the staff members present and Ralph. Kilchenmann: So, the first -- my information -- my slides are from the audited financial statement, just some historical information about the performance of the Enterprise Fund in the last decade. So, the first slide that you're looking at shows -- separates our three sources of income. The red line at the top is total income exclusive of the developer donated line, so that's operating income, investment income, and assessment income principally and some miscellaneous income. But the blue line is out of our developer donated lines, which records income and the green line on the bottom is the reason we are here tonight. That's operating income. So, you can see how the total income and the developer donated lines peak during our period of growth and now it's dropped off, but if you look at the green line on the bottom, operating income, you can see it's always been substantially less than those other sources of income and as we go through the end of the decade it drops and drops until the end of 2008 with a 124,000 dollar loss in operating income. This is just a quick look at our budget for FY-09. The carry forward, the green line you can see those are the projects we budgeted in the past that we are still working on. A substantial amount of new capital projects budgeted for '09 and, then, the base in the kind of the red color is the personnel and operating that we are going to -- that we are looking into how that operating income needs to cover that base budget. This is what we call the statement of net assets and this is from the audit and it's kind an important concept, it's what the city actually owns. We can see that top line is what we have invested in capital assets Meridian City Council February 24, 2009 Page 35 of 47 and depreciation. You can see how that line shoots up as we finish large projects and we get to the end of the decade. And the red line is the end reserve fund balance, which, basically, is our cash available for everything else and we can see how that fund balance has decreased over time and this is a little skewed, because the investment capital assets number is so high that if we actually take that out and show the unrestricted asset on a graph by itself it just goes up and, then, it just goes straight down. So, kind of to review the whole concept, this is if we just look at utility sales versus their operating expenses and isolate those pieces, take out the assessment income -- or connection income, we can see how the lines get closer and closer until the operating expense is way above the operating income -- or the operating expenses, yeah, above the sales. And there is that blip in there, if you remember back about 2005 we paid off those existing latecomers agreements, so that's why that graph takes a dip. So, again, that's just graphically representing what we are here to talk about, that spread between sales and operating income. This is another way to graphically represent the change in fund balance over time. This is another way to look at it. And that is the end of my speed financial presentation. Barry: Thank you, Stacy. Moving forward, we wanted to discuss quickly some of the drivers that we found in an internal study that we conducted last year as it relates to the increase in operation and maintenance costs. These will not be a surprise to you, so I'll move through them pretty quickly. First, the age of our infrastructure, the size of the infrastructure, and the complexity of the infrastructure all are contributors to increased operational and maintenance expenses. We have pursued several recent capital investments and continue with ongoing repair or replacement upgrades of existing infrastructure. We have a greater need, therefore, for depreciation, reserves and financing. We also have identified a need for operating reserves as that fund continues to be depressed. We did discuss the last year late of decreasing the rates in 2002 as a cost of service reduction at the time, which was certainly justified. We also we -- we have been tracking over time water consumption and the reduction in consumption over time as we have converted more and more homes from domestic irrigation to pressurized irrigation sources and certainly regulations as they continue to strengthen and we get new regulations, those are all drivers which go into the equation. As part of our study we identified the need to look further out as it relates to how we project our financial relation and prepare for those future challenges and so we developed a multi- year rate projection model, both the finance department staff and public works staff. This model allows us to get away from a one year model currently and move toward a five year projection model. The inputs in this model, which we shared with you late last year, were to include an operating reserve at your request of four months, a capital transfer of about a million and a half dollars for water, and anywhere between three and four million for wastewater, to adequately fiance depreciation using the straight line method with the amounts shown, and, then, to stay off the regulatory reserve until we have more information as it related to impending regulations coming down the pike. The assumptions we have included in the model include growth factors of .5 percent for population, personnel growth factor of three percent, largely related to human personnel costs, benefits, those kinds of things. Medical. And construction costs indicator or inflator, rather, based on the ENR of 4.43 percent. Our approach, again, utilizes a just Meridian City Council February 24, 2009 Page 36 of 47 in time capital financing strategy we shared with you late last year and this model attempts to anticipate current revenue needs based on future financial needs from an operational capital and depreciation standpoint. I do want to mention quickly, as was provided in your staff report, that BBC Research and Consulting, Thomas Pippin, the managing director and also president of the firm, has reviewed the model and its soundness and gave it its -- his seal of approval, if you will. I would like to enter into the record, because he is not here this evening, he had mechanical problems on his airplane and, therefore, could not attend this evening as his flight was canceled. He had asked me to read into the record his testimony. I would actually just enter into the record for your -- for your information. I believe the clerk will pass that out momentarily. Here is the model result based on the five year projection if we do nothing under the scenarios that I have mentioned to you. As you know, what we are trying to avoid is a -- is the insolvency between 2011 and 2012 that is predicted. So, this had led staff, because of the three year time horizon, to develop three different rate options. A one time adjustment, a two year implementation, and a three year implementation option. This is what the one time option looks like. This option includes in water, this graph here, an increase of the base amount of $1.37, an increase in the water usage amount of 47 cents for 1,000 gallons of consumed water. That would be a one time adjustment, as I mentioned. In sewer similarly, a one time adjustment would be made to the base of $4.04 and to the sewer usage of $2.59 per 1,000 gallons used and what the model suggests will happen over that five year period with this one time adjustment. As you can see we are still approaching or utilizing deficit spending until we get down to around 2013, 2014 and level off with a projected ending fund balance of around a million dollars between the two utilities. The two year option would be just that, implementing two rate increases over a two year period consecutively. This is a little bit less in each year and that's what these numbers represent. So, in the first year you would increase under this option the base rate of -- to 76 cents and the water usage rate to 26 cents per thousand gallons in the first year and, then, do that again 12 months after that implementation. The same is true in sewer. You would increase the base rate by $2.33, the sewer usage amount to $1.49 per thousand gallons consumed, that would, again, be over a two year period and implemented annually. This year this graph represents the model again and it's showing very similarly what the one year option -- or, excuse me, the one time option showed, deficit spending, less severe, over a long period of time until we get to around 2013 and 2014 where the model shows, essentially, a flattening out, again, with a ending fund balance projected in 2014 of approximately three million dollars between the two utilities. The three year option is implementation of a rate adjustment three consecutive times over a three year period. Of course, each individual increase is less. The water base would be an increase of 57 cents the first year. The usage would be an increase of 20 cents per thousand gallons used the first year. Those would, then, have to be increased again by that amount the second year and again the third time over that third year. The same is true in sewer. The base would go up by $1.75, the sewer usage amount would go up by $1.12 per thousand gallons consumed. Again, each of those would increase three consecutive times annually. This is what the model suggests. We have deficit spending again, certainly a little bit less, certainly sloped a little bit less severe, until we get to around 2013 and, actually, in 2014 we do show that we start to tum more positive the collection of revenues and slightly increased to the Meridian City Council February 24, 2009 Page 37 of 47 ending fund balance, but, again, projected in 2014 between these two utilities of around three million dollars. These rate model results all bring stability and predictability to the fund. They position our utilities for our immediate needs and many of our short term future needs and they adequately finance existing public facilities and services. As you have directed staff last year, the rates would include a dedicated four month operational reserve for both the water and wastewater utilities, a dedicated capital transfer for both water and wastewater capital construction needs and a dedicated occurring depreciation reserve for water and wastewater beginning in fiscal year 2010. It does not include regulatory compliances. We are uncertain as to what regulation costs might be just yet. I would like to introduce now Jessica Flynn of Red Sky Public Relations to talk about our education and outreach program as it related to getting the message out regarding these rate increases. De Weerd: Thank you, Tom. Flynn: Hello, Madam Mayor, Members of Council, Jessica Flynn, Red Sky Public Relations. Nice to be before you again. I just wanted to go over the public outreach that we engaged with Public Works Department and the city to conduct. The process went above and beyond what's officially required for the rate increase notification. We developed a communication plan and FAQ document to support the city in communicating with constituents. We helped run focus group meetings, which really reached out to a certain number of the members of the community that were identified to help get feedback on what the key messages were that we wanted to communicate. We developed and distributed -- a news release was distributed to the Treasure Valley media about the situation and encouraged coverage of the town hall meetings to help with attendance. There was development and distribution of HOA letters that went out to -- approximately 200 letters were sent out and 80 a-mails and calls were made. And, then, the town hall meetings themselves. At the town hall meetings the Powerpoint presentations were put on by Public Works and Finance staff. There were brochures that summarized the key points in the rate increase options. A ballot so that people could register their choice for the rate increase and what they thought should be selected. The news release which was distributed was sent out five days prior to the town hall meeting, fall within the range where it would be on people's mind, it wouldn't be something they'd forget about, was sent out in advance five days ahead of time. It was sent out to 16 Treasure Valley media outlets and multiple reporters at all those outlets. Your packet contains an overview of some of the communication documents that were developed. It was posted on the front page of City of Meridian website. The methods of outreach came from the focus group recommendations, as well as how they receive information on the website to the news media to help with the -- an image of the brochure that was developed with staff to provide additional information. And, then, you also have an addendum, which features the coverage, which was on the Idaho Statesman's website on the Friday that we had the news release out in the Sunday edition of the paper and, then, two editions of the ValleyTimes. At the focus group meeting there were ten attendees. When they were given the ballot option to vote on the three different options, seven of the ten registered that choice one, the one time increase, was their suggestion. At the two different town hall meetings there were a Meridian City Council February 24, 2009 Page 38 of 47 total of 27 attendees that voted and the one time option was the one that was selected by 12 of the people, so that was the number one selection. So, combining the two, it was the one time option with 19 votes. That was the feedback from the different community groups that we received. And I'll stand for any questions. De Weerd: Council, any questions? Thank you. Barry: Thank you, Jessica. We would like to stand for any questions that you might have as it relates to the increases, the amounts themselves, the implementation, or the education outreach campaign that we ran as part of this process. So, we will entertain those questions at this time. De Weerd: Thank you. Council, any questions for staff? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I have got a two part -- first one. I don't know what more we could do to get the public out. We had two meetings supposedly with 75,000 population, you get 27 people out. I don't know what more Jessica or Tom could have done to -- unless we went right out and walked up the step and grabbed them by the hand and hauled them in there. It's disappointing. Very disappointing to me to have the people -- I suppose Shelly and Stacy and them will -- the first bill that goes out, regardless of which option we go with, we will hear then. That's when we will hear from the public and it's really a shame that we couldn't get more public input on it and my feeling is I like option three the best and I'm -- I don't know if we need to hold this open for a week, Mr. Rountree, or what. I'm ready to -- I'm ready to bring a resolution forward. De Weerd: Mr. Bird, let me first ask if there is any public testimony. Bird: No. No. I know that. I'm not closing the public hearing. De Weerd: No. I understand. Bird: I didn't make that motion. De Weerd: And I'm not sure if you held it over a week if you would get anymore public with -- with Frank running the information he has in his paper and with the other means of notification that there is -- there is not more response. Is there a member of the public who would like to provide testimony on this application? Good evening. If you will, please, state your name and address. Yearsley: Thank you very much. My name is Steven Yearsley. I live at 2961 East Lucca. Mayor and Council, thank you letting me come up and talk to you today. I was a member of that focus group and I am also a civil engineer, so I understand the issues Meridian City Council February 24, 2009 Page 39 of 47 that the City of Meridian is facing. I personally recommend that the one time fee be increased. I know that's a tough pill to swallow for a lot of people, especially this time -- this economy base. However, my personal opinion is we will spend -- for me personally, I will spend less overall in that -- that time by doing the one time increase. It goes up quite a bit by doing it the three years or the two years, so I'm in favor of that. And, then, also as Councilman Bird mentioned, that once these increases go into effect, the city staff will get inundated with phone calls and does the Council want to have that inundation happen three times in three years. I would encourage you to maybe go look at the one time increase, pull the Band-Aid off and let's get it done and move forward. Thank you very much. De Weerd: Thank you. Further testimony? Okay. Council? Rountree: Madam Mayor? De Weerd: Yes, Mr. Rountree. Rountree: Before we close the public hearing, I guess I want to comment on the comment that Mr. Bird made about the public and I guess the lack of interest in what we are about this evening. I would note that we have this posted on the web. We have this posted outside the building, inside the building. We had it in the newspaper. We have done an extraordinary job, in my opinion, of trying to seek public input and, Steve, thank you and the group that worked as the focus group; you did a good job for us. I appreciate your time and your energies. But, Frank, there was a homeowners association meeting right through those doors this evening and not one of those people are here tonight and that tells me a lot. I'm not sure what it tells me. De Weerd: But a lot. Bird: When you find out, let us know. Rountree: But I'm still thinking about it. But I do want to thank everybody that participated, staff, Jessica, Steve in the focus group. I appreciate what you have done. Tom, I do have one question, I guess, or Stacy, that the model itself or the options themselves don't really -- didn't factor in the economic times that we are in per se and even though the increases percentagewise sound large, the dollar amounts themselves are not extremely large, but having the process or the time to collect those dollars over a period of time, as opposed to one time, that money is still out in our economy for folks to do with what they might, whether it's buy a candy bar or whatever the difference is, but it's still out there. And the model doesn't take that into consideration. So, I'm -- I guess my inclination is because of the economic times we are in, because of the 130 plus monthly turnoffs that we are facing, because people are not paying their utility bills, times are tough. So, I guess before we close the public hearing, my inclination is to -- yeah, maybe in the end more is paid, but as you ease into it, staff, I'm sorry, but I'm not sure that's a great reason to look at just a one time approach. Meridian City Council February 24, 2009 Page 40 of 47 Bird: And Madam Mayor? De Weerd: Mr. Bird. Bird: To add to Councilman Rountree, I agree wholeheartedly with him. Also the money we can leave in -- in the pockets of our citizens for them to spend will help our small businesses and, actually, probably return more money back into us by having, hopefully, a little healthier economy within our deal and I also like the idea of doing it in a three year deal, because regardless of how good you think the model is, we have all been down the road where we thought we had the perfect system in line, you know -- a year from now it might not be the perfect system and we can always take another look if we go on this or if we go the one time, you're hitting it hard and stuff, so my option is option three, I believe, is -- as I think I stated to Tom right off the bat when we first met, when he give me the three options, I -- third option I thought was the fairest and especially in these times right now. De Weerd: Thank you. Further comments? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I think we all want the same thing for Meridian and we have realized from this and even earlier presentations that the Public Works director has identified a problem that is coming at us like a freight train and we are all seeking a solution. I would have to say that in that solution I prefer the one time adjustment, for a couple of reasons and they have been stated, mostly because in the long run it's the cheaper adjustment out of my pocket, even though we ease into it and it's the more sure predictable, budgetable option for both public works and finance, I believe. So I am pleased that those of the public who have come forward and participated are understanding the need. I mean it's painful to make a raise at anytime, but I feel blessed in this position to have inherited from former councils and mayors a very well running city and as a citizen I appreciate the fact that we have some of the lowest combined rates -- if you add up our property taxes, utility rates and all of the other things that people pay to the City of Meridian, we are an attractive place for people to live, we are an attractive place for businesses to come and we are not making much of a dent in that. We will still be an attractive place for people to come. So, I'm pleased that we are moving toward correcting this problem. I would prefer that we go with the one time solution. De Weerd: Mr. Hoaglun. Hoaglun: Madam Mayor, you know, we do have an option four, it wasn't labeled option four, and that was to do nothing. But that is really not a viable option. We have to do something. And, you know, you get on City Council, and it's not your favorite thing is to raise fees on people and to do those things, but from the standpoint of being up here and being responsible and making sure the city operates in a fiscally responsible way, is Meridian City Council February 24, 2009 Page 41 of 47 something we have to do. And early on in the process I was in favor of option one. I think Mr. Yearsley put it well, just rip the Band-Aid off, let's get it done, because the other -- the other point is there is the cost of money over time and Stacy understands that. When I met with Finance and Public Works, there is a cost associated with that if we delay it. But as -- as time went on and we know where our economy is and you read the newspaper and watch the news, it's tougher -- it's tougher to rip that Band-Aid off like that. It's -- you know, my preference has been option one for quite awhile, but over a period of time I have been leaning more and more towards going to number three. You know, we saw the announcement yesterday by Micron with announcing 2,000 layoffs by August 1, 500 within the next two weeks -- that's tough and I don't know if the difference between the options really make that much difference between the people out there who don't have a job. I think they are going to be on that list of people who can°t pay. But at the same time it's something -- you know, do we try to at least respond a little bit some way, somehow? I hope it helps. I'm going to vote for option three. My preference is option one, but at this time the way the economy is I just can't go there. But I do want to thank, Madam Mayor, the staff, Public Works and Finance and for the citizens who worked on this out there, thank you. It's a lot of work for you to digest the information. Jessica, for the work of your company. It was a good job. You guys did very very well in giving us options to seriously consider and it was the information that we needed to have and spumng us to say, hey, look, there is a problem and here is what you can do and we appreciate that. Thank you. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I was neglect in recognizing Finance. They were a major mover in this. Stacy and your staff, thank you for bringing this to light for us. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I would in no way wish to hold this process up just to take a contrary opinion about the method of implementing it. If it's the consensus of the rest of the Council, I certainly can support the option three. I would ask a question, though, and that probably is of Mr. Nary. Can we phrase it in such way that we are preapproving -- I know we can approve a raise now, but can we preapprove a series of raises over three years now, so that it's not really debatable unless there is some glaring reason why it's not working? Nary: Madam Mayor, Members of the Council, Council Member Zaremba, yes, that was the intention is that you can create the raise now in the resolution as to what it will be. It doesn't mean a council can't come back and revisit that and change it, but you can -- the intent was to create a resolution that would -- would already layout when the additional increases would occur. Meridian City Council February 24, 2009 Page 42 of 47 Zaremba: So, that if the Council did nothing, those increases would go into effect? Nary: Yes. Zaremba: Okay. I'm comfortable with that. De V1/eerd: And, Council, one of the comments that were raised about the model -- I guess our discussion afterwards was that -- to have a piece in that resolution or ordinance to -- to ask that the model be run maybe two months prior to when the increase would be initiated, just, again, to verify the numbers and build in that accountability to make sure that we, indeed, are double-checking and making sure it still is -- is current. So, at that point -- I also need to add that the comment was also made that it wouldn't be more, that as we did these public hearings and town hall meetings that we wouldn't increase that, but if there was that opportunity for decreasing it, that that could be done at that time. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: And I agree wholeheartedly with that, that -- and this Council right here has done it when -- when we have seen that we have had excess, we have lowered and in no way would I want to see it -- these rates that we have got presented right now be raised, but if we come to it -- another thing I look at is a year from now is this model going to be a hundred percent right? A lot depends on the economy. So, if -- with your permission, Mayor, if you don't want to hold it open for a week, I'd move we close the public hearing. Rountree: Second. De Weerd: I have a motion and a second to close the public hearing on Item 11. All those in favor say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. Rountree: Madam Mayor? De V1/eerd: Mr. Rountree. Rountree: Just a point for the last discussion. My opinion is if we do our due diligence as we go through the years with the model and the model proves itself and next year or the year after the model says we need to increase the revenue, I would be in favor of that just as much as I would be in favor of the model telling me just the opposite. Bird: That's right. Meridian City Council February 24, 2009 Page 43 of 47 Rountree: I don't think we can say we are not going to raise the rates at some point in time, just because of this. We are dealing with a model here. We don't have any idea what the regulatory processing is going to bring to us in the next three years. Sitting here with the permit application going on, what, seven years? More than that, Tom? At least. So, let's not -- let's not mislead the public saying this is -- this is the end all. We would hope that it is, but there are other things out there that will affect it. Hopefully make it go down, but -- De Weerd: Mr. Rountree, I guess what that -- that comment was about is this is a three year commitment and I thought it was a fair commitment to say, you know, these are the numbers, they were published, and during that three year period I think it's fair to say we would not go above that, but realizing that models are exactly that, we didn't have our crystal ball and it was -- we did verify the model and we did the due diligence that we possibly could, but it is a three year model and three year published commitment, so -- Rountree: So, make the motion. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I think we probably want to do this in ordinance, Bill? Nary: Madam Mayor, Members of the Council, Councilman Bird, actually, we do them by resolution. Bird: Resolution? I move that we bring a resolution forward on option three for raising the rates on water and sewer. Rountree: Second. De Weerd: Okay. I have motion and a second to choose Item three. Discussion? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I would add that I'm -- this has been said, but this does not preclude revisiting the regulatory challenges that will come to us and I'm sure we will consider that we should have a reserve for that at some point. This does not include it, but it also doesn't mean it's a dead issue. Barry: Madam Mayor? De Weerd: Mr. Barry. Meridian City Council February 24, 2009 Page 44 of 47 Bany: If I may. I respect the Council's desire and that of yours to hold steady the rates for a designated period of time over this model, but it has been suggested this evening and I will urge your thought further in this discussion, we do not know what the regulatory frame work is going to look like over the next three years. We don't know if we will be the subject of litigation that might cause problems for us in the future. We don't know if we will be obligated for other financial obligations that we can't conceive of this evening and, therefore, obligating in this resolution that the rates will not increase over that period of time could be troublesome. Now, at the same time, as you know, when those issues, if they should arise, come up, the Council could at that point make a decision, I suppose, to increase it at that point in time, but I just wanted to make distinctions and further consideration. De Weerd: Just to verify that, if that were to happen, I think we would have to go through this process again, so -- Bird: Yeah. Very much so. De Weerd: Any other comments? Nary: Madam Mayor? De Weerd: Mr. Nary. Nary: Madam Mayor, Members of the Council, so in the resolution do you want language that Council Member Zaremba just stated in regards to the Council is not precluded from revisiting rates in the future regardless of what they are, and also do you want language in the resolution also that you would annually review the model that was part of this decision process as well. Bird: The motion maker would be in favor -- I think we would be not doing our duty by not revisiting it, as Councilman Rountree said, that model a couple of months before each year and make sure that we are on track like we are supposed to be. Rountree: Second agrees. De Weerd: Okay. If there is no further discussion, Madam Clerk, will you, please, call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: All ayes. MOTION CARRIED: ALL AYES. Bany: Madam Mayor? Meridian City Council Febnaary 24, 2009 Page 45 of 47 De Weerd: Yes. Barry: If I may ask the Council, what is your intent as it relates to implementation of this increase as it relates to an effective date? We would recommend to staff that April the 20th would be the earliest time that we could do -- implement this change as that would allow us the full billing cycle to be notified of this increase. Rountree: Madam Mayor? I would go with the direction of staff in terms of the ability to implement. If that's humed, go another one, because we want to do it right. We don't want to have to send out addendums. So, whatever staff recommends I would say work with Mr. Nary and the resolution language and what the effective date would be, but the earliest would be the date you mentioned, but if it needs to be another billing cycle to make sure that all the system changes that need to be done are made, then, I'm okay with that. Barry: Okay. Thank you, sir. Item 12: Public Hearing: AZ 08-014 Request for Annexation and Zoning of 2.74 acres from RUT district in Ada County to the L-O district for Kinas Conareuation Church by King's Congregation -1201 E. Victory Road: De Weerd: Okay. Item 12 is a public hearing that has been requested to continue to March 10th. It is a public hearing on AZ 08-014. I will open this public hearing and ask for a motion to continue. Zaremba: Madam Mayor, I move we continue AZ 08-014 to our regularly scheduled meeting of March 10th. Hoaglun: Second. De Weerd: I have a motion and a second to continue this item to March 10th. All those in favor say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. Item 13: Ordinance No. Portion of Meridian Town Center: Kleiner Family Trust Property De Weerd: Item 13 is Ordinance No. 08-1399. Madam Clerk, will you, please, read this by title only. Green: Thank you, Madam Mayor, Members of the Council. I apologize, this is actually supposed to be 09-1399. Ordinance No. 09-1399, an ordinance AZ 07-012, Meridian Town Center, Kleiner Family 2008 Trust, for annexation of a parcel for annexation purposes situated in the southeast quarter of the southwest quarter and the west half of the southwest quarter of the southeast quarter of Section 4, Township 3 North, Range 1 Meridian City Council February 24, 2009 Page 46 of 47 East, Boise Meridian, Ada County, Idaho, and a parcel of land situated in the east half of the southeast quarter of Section 5, Township 3 North, Range 1 East, Boise Meridian, Ada County, Idaho, as described in Attachment A and annexing certain lands and temtories situated in Ada County, Idaho, and adjacent and contiguous to the corporate limits of the City of Meridian, as requested by the City of Meridian, establishing and determining the land use zoning classification of said lands from C-G, General Retail and Service Commercial District, in the Meridian City Code, providing that copies of this ordinance shall be filed with the Ada County assessor, the Ada County recorder, and the Idaho State Tax Commission, as required by law, and providing for a summary of the ordinance and providing for a waiver of the reading rules and providing an effective date. De Weerd: Okay. You have heard this ordinance read by title only. If there is anyone who would like to hear it read in its entirety, please, say so. Seeing none, Council? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I move we approve Ordinance No. 09-1399 with suspension of rules. Rountree: Second. De Weerd: I have a motion and a second to approve Item 13. If there is no discussion, roll call vote, please. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. MOTION CARRIED: ALL AYES. De Weerd: Okay. All ayes. We are at the end of our agenda. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I move we adjourn. Bird: Second. De Weerd: All those in favor say aye. Thank you. All ayes. MOTION CARRIED: ALL AYES. Meridian City Council February 24, 2009 Page 47 of 47 MEETING ADJOURNED AT 9:47 P.M. (AUDIO RECORDING ON FILE OF THESE PROCEEDINGS) // MAYOR TA De WEERD ATTEST ~ ~ ~ +. ~~~~TF° ~ ;.. S~~L ~`~ o; DATE APPROVED