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HomeMy WebLinkAbout2009 03-03Meridian Citv Council Meetinu March 3, 2009 A meeting of the Meridian City Council was called to order at 7:03 p.m., Tuesday, March 3, 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, Jaycee Holman, Anna Canning, John Overton, Bill Johnson, Keith Watts, Clint Dolsby 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: Well, good evening. I'll go ahead and start tonight's meeting. We will thank you very much for joining us here tonight, spending your time with us. We like to think it's a very entertaining meeting, but we have seen some people sleep, so maybe it's not an entertaining as we think. For the record, it is Tuesday, March 3rd. It's 7:03. We will start tonight's meeting with roll call attendance. Item 2: Pledge of Allegiance: De Weerd: Item No. 2 is the Pledge of Allegiance. If you will all rise and join us in the pledge. (Pledge of Allegiance recited.) De Weerd: And if those in the back of the room cannot hear us, if you will just give us an indication, we still are trying to find that balance with our sound system. Okay. And, Council, that means no whispering. Rountree: Can you hear us now? Okay. Item 3. Community Invocation by Darrell Taylor with Ten Mile Christian Church. De Weerd: Okay. Very good. Item No. 3 is our community invocation by Darrell Taylor. He's with the Ten Mile Christian Church. If you will all join us in the community invocation or take this an opportunity for a moment of reflection. Pastor. You have your choice. Taylor: Is that right? Meridian City Council March 3, 2009 Page 2 of 38 De Weerd: Uh-huh. Bird: He's wearing his pin. De Weerd: Very good. I'm impressed. Taylor: Well, Heavenly Father, we are just very, very thankful and very blessed to live in this country that -- that we just pause and just to say thank you. And, Father, we ask that you would just be with the leaders of this nation. Father, be with those that are fighting to keep us free. And, Father, we just ask for their safety. And, Father, for this community, we just thank you again for -- for this wonderful place to live and raise our kids and just to enjoy life and, Father, I just thank you for the men and women that have dedicated their lives to -- to make sure that this is a good place to live and, Father, I just ask for your guidance and blessings on them. Father, for this meeting that you will just give them the wisdom needed to take care of the business at hand and, Father, just ask that as we drive home tonight that you will just keep us safe and sound and we just thank you in Jesus' name, amen. De Weerd: Thank you for joining us tonight and also for promoting the City of Meridian on your shirt. Item 4: Adoption of the Agenda: De Weerd: Okay. Item No. 4 is adoption of the agenda. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I would note that on the Consent Agenda, Item 5-G, the resolution number is 09-653. On the Department Reports, under B., Legal Department, there has been a request to remove that from this meeting and have it next week. And that being the only changes to the agenda, I move we adopt the agenda. Hoaglun: Second. De Weerd: I have a motion and a second to approve the adoption of the agenda. All those in favor say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. Item 5: Consent Agenda: A. Approve Minutes of February 10, 2009 City Council Regular Meeting: Meridian City Council March 3, 2009 Page 3 of 38 B. Approve Minutes of February 24, 2009 City Council Regular Meeting: C. Task Order No. 10006 - On-Call Collection System Engineering Services with MSA for $24,500: D. Change Order No. 1 with H2 Excavation for the Stn Street Park Pedestrian Pathway and Box Culverts -Phase 1 Construction for $3,161.17: F. License Agreement with Nampa & Meridian Irrigation District for Ten Mile Interchange Project: G. Resolution No.: Multi-Year Water and Wastewater Rate Adjustment: H. Approve Award of Bid and Contract with ACHD for Water and Sewer Improvements for Split Corridor Phase 1 for $115,921.47: I. Acceptance Agreement for Display of Artwork of Gertrude Hudson in Initial Point Gallery: De Weerd: Item 5 is our Consent Agenda. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: As previously noted, Item G is resolution number 09-653 and with that I move that we adopt the Consent Agenda as published and for the Mayor to sign and the Clerk to attest. Hoaglun: Second. De Weerd: I have a motion and a second to approve the Consent Agenda. If there is no discussion, Mr. Bird. Bird: On Item E they are asking spending authority for a ten percent contingency amount. I have a problem with that. I feel that if -- on something like this, drilling a well, that if they need to change -- if they need a change or something, they can come back and -- and get a change order as they go through and, in fact, on drilling a well, I can't understand why we would even need a -- if we have done our homework like we should. So, I would ask the maker of the motion if he would eliminate, with the permission of the other Councilmen. Meridian City Council March 3, 2009 Page 4 of 38 Zaremba: I would be happy to do that. Should we move it to discussion in Item 7 or you just want to remove it entirely? Bird: I just want to remove the contingency -- the ten percent contingency. The amount is no problem at all. Zaremba: I think by the nature of the Consent Agenda we need to move this, then, off of the Consent Agenda and call it Item 7-E and we will take that up at that time. Therefore, the Consent Agenda that I am moving is Items A through I, minus Item E, and I have already mentioned the resolution number for G. Hoaglun: I will second that. De Weerd: Okay. Second agrees. Consent Agenda approved with the suggested change. If there is no further discussion, Madam Clerk, will you call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: All ayes. Motion carries. MOTION CARRIED: ALL AYES. Item 6: Department Reports: A. Clerks Office 1. Discussion of Joint Meeting with Ada County Agenda Items: De Weerd: Okay. Under Item 6-A we have a clerk's report. Madam Clerk. Holman: Madam Mayor, Members of the Council, with several items that have been submitted -- and this is for upcoming meeting next Monday, joint meeting with the Ada County Commissioners, I sent a-mails to them and they came back with one item that they would like on next week's joint meeting and that is regarding annexation of the Ten Mile property that they talked about. And, then, I had other possible items were coordinating capital plans for fire and EMS. Kentucky Ridge and Meridian Heights. Title 9 revision. And planned community revisions as initiated by Ada County. Those are the -- so, I have a total of one, two -- five items so far. So, I'm just taking direction as to what you would like us to put forward and send to the commissioners as a preliminary agenda. De Weerd: Well, I believe there is an active application for the property on Ten Mile, isn't there? Canning: Yes, ma'am, there is. Meridian City Council March 3, 2009 Page 5 of 38 De Weerd: So, I believe that we can't be discussing that. Yeah. I think that the Title 9 is appropriate in adopting some of our subdivision standards and other standards as well. But I would also like to add on there, again, discussion about county services in City Hall. The availability. Canning: And, Madam Mayor, if I could explain the Title 9 agreements a little bit. Just before I left on vacation you asked me to stand in for you at the alliance meeting. No. The Blueprint steering -- consortium. There we go. Blueprint Consortium meeting. 1 apologize. I'll get the right number. The right name. And that group did vote to have the cities work with the counties to incorporate the sub area planning process in the area of city impact expansion document that Blueprint adopted, to have those incorporated into the Title 9 agreement. For those of you not familiar with that document, it's, basically, what we did in south Meridian. I was one of the primary authors of the document, so I feel comfortable that it's in the best interest of the City of Meridian to work on that Title 9 agreement as well. De Weerd: Well, good. Since you were sunning away in Mexico last week, it did come up during the meeting that we needed to have that dialogue and since we hadn't touched base we did ask that that be put on the agenda. So, it sounds like it's been addressed and can be removed, unless Council would like further discussion with the county on that. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I would just only comment with apology. By the time that I knew of the date of this meeting I had already a previous engagement, so I'm song that I will miss it. De Weerd: Okay. Canning: And, Madam Mayor, I wasn't suggesting that it be taken off the agenda, I just wanted to let you know what that was. So, I think it would be beneficial to talk to them about what kind of timing they would like to see on those Title 9 amendments and maybe some of the planned community stuff that they are looking at changing could be incorporated into that as well. De Weerd: Anna, would it be possible prior to that meeting that you get to us some of the scenarios or incidences that come up that we have had issues with, you know, not subdivision -- their earlier clusters that were developed in low density without curb, gutter, sidewalk type of scenarios, but also some of the code enforcement issues or billboards or any of those things on where there is a conflict between county code and city code and can some of that be addressed in the Title 9 section. Canning: I will work on that. Meridian City Council March 3, 2009 Page 6 of 38 De Weerd: Okay. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: You have suggested the discussion of county functions in the City Hall. I guess I have some concerns about that. When last we and all of the cities in the county met with the commissioners, the issue was making payments towards the court system and -- and our efforts to bring county functions this way was kind of thrown in our face. I would like to see that question about courts and the funding of the courts be resolved. At that last meeting we asked the courts to take a look at the court order that was directed to us and a number of cities to make payment and see if, in fact, that was still valid and to my knowledge we have never seen anything about that. So, I think before we bring that subject up again with the county, that particular matter needs to be resolved. De Weerd: Well, I guess what Commissioner Tilman had noted is he was speaking on behalf of the courts and he did feel it was a court issue. Since we haven't heard from the court, I guess, you know, in my opinion that was their answer and perhaps he was trying to further an agenda that wasn't quite agreed with by all. We have had a discussion with the other two entities, Boise and Garden City, and they said that -- that the no news is good news and I guess, Mr. Nary, you might -- is there an update on the court case? Nary: Madam Mayor, I haven't received any information from the city of Boise on their case and that's the one I think Councilman Rountree's referring to. So, I could find that out and advise the Council of that. But, otherwise, no, I would agree with you, we haven't heard anything from the court. I think Commissioner Tilman was presenting a position in regards to their case, but it wasn't the court that was advocating anything, and I don't think the court has an interest in that. But I could certainly see if I can find out anymore information for you. Rountree: Thank you. De Weerd: Anything else? Rountree: No. De Weerd: Okay. So, Madam Clerk, will you, please, read the list that we have. Holman: Yes, Madam Mayor. The list that I have so far would be Kentucky Ridge and Meridian Heights. Title 9 revision. Planned community revisions as initiated by Ada County. And coordinating capital plans for fire and EMS. Meridian City Council March 3, 2009 Page 7 of 38 De Weerd: I think those will -- some are more weighty than others, so it will be a robust discussion. But I do want to have a discussion at some point on county services that are appropriate for City Hall. I know that you and our CFO have met Dave Navarro to discuss some of that and since they have decentralized services to a certain degree and they have a substation in Star, that, in my opinion, opened up the door to that kind of community outreach and certainly we have a much larger population to serve than Star does. So, a future topic. B. Legal Department: 1. Update on Meridian Heights /Kentucky Ridge Request for Service: De Weerd: Okay. Item 6-B is our Legal Department. It has been requested to move to March 10th, next week's meeting. C. Purchasing Department: 1. Status of Bid with MetroQuip: De Weerd: And so we will just go to Item 6-C, our Purchasing Department. Watts: Good evening, Madam Mayor, Council Members. Before you we have a -- I have given you a timeline for a bid that the Public Works Department has got out for a sewer vac truck. We received a letter on -- I will go through the timeline in a brief scenario. The Purchasing Department let out to bid on December 19th for a sewer vac truck. On the 19th of January three bids were received and I had handed those over to the Public Works Department and they had determined that two of them were nonresponsive. At that point I phoned the two vendors and let them know that I would be sending out a letter to them asking for them to clarify the exceptions that they had taken that Public Works had claimed were nonresponsive and asked them to have those back to us by noon on February 4th. We did receive those back. I forwarded those on to the Public Works Department. They reviewed those once again and determined that they were, in fact, nonresponsive. On the 17th of February we brought the award before Council and I had spoke to Mr. Bird previously, we put it on the Consent Agenda. It went through and was approved. The following day, the 18th, a purchase order was cut and I sent that to the Public Works Department and they forwarded that on to the vendor. That same day the clerk's office did receive a letter from MetroQuip, one of the bidders, who was unhappy with the -- the bid process. I received a copy of that letter from a-mail from the clerk's office on the 25th of February and I phoned Mr. Brad McCoy of MetroQuip on 26th and we had discussion over the issues that he had and I let him know that we would bring this before Council and discuss it. His -- I believe his main concern was that the bid specs were -- were bid tightly. He -- he figured -- or he was claiming that the bid specs were tight to where his vehicle would not be able to meet specs and that it was possible that the specs were bid around one vehicle. I had met with the Public Works Department -- after that phone call Meridian City Council March 3, 2009 Page 8 of 38 I met with the Public Works Department. We reviewed the specifications and they did provide me one other bidder who -- or one other manufacturer who would have been able to meet that specification. I did also speak to the attorney's office and we do have one clause in our -- in our bid documents that states that the bidder must review the specifications and reply in writing if they have any issues for the validity of all the specifications prior to the opening or submission of the bids. That was not done and we are -- I'm here tonight, basically, to seek direction from Council. De Weerd: Thank you. Council, any questions or comments? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: You know, when I spoke I didn't know that the truck we had been using on a lease basis or been hiring was the same truck that we -- does not meet the specifications in our bid now, am I not right? Watts: That is correct. It was a -- a contractor who was using that truck. Bird: And it was doing a sufficient job at that time for us? Watts: It was. Public Works -- Richard Dees is here, he could speak to the fact that there were additional specifications that they put in for safety requirements that they required when we ordered our own truck. Another thing I would like to point out is our -- our bid -- our standard documentation in our bids calls for any -- any equipment that is proposed, it has to be the newest and latest model in current production and the bid -- the vehicle that MetroQuip had proposed was a 2008 year model and the current year is a 2010 year model. De Weerd: Any other questions or comments? Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: A comment for Mr. Nary. Was the letter received, does it constitute a bid protest? Nary: Madam Mayor, Members of the Council, Council Member Rountree, no, because the -- what the letter contains is an objection to the specifications of the bid. State law requires that if you have an objection to the specifications, you're required to submit that in writing no less than three days prior to the bid opening. So, this isn't a -- this isn't a protest that he met the specifications and was not awarded, this is a letter that claims that he -- the specifications that we offered in the bid process was not the same as his and his was close enough. I mean you run the risk, when you -- when you file a bid with Meridian City Council March 3, 2009 Page 9 of 38 exceptions, that if the exceptions aren't taken, then, you're out of luck. You're going to have to file abid -- you have to file a protest prior to the bid opening claiming the specifications are not accurate or tightly speed. So, this is not a bid protest. So, this doesn't -- wouldn't entitle this person to a hearing. Watts: Mr. Rountree and Mr. Nary, I would like to clarify that the letter was more general. It wasn't specific to that. I didn't learn about the specifications issue until I spoke with Mr. McCoy. He has been very cordial about this and just wanted to bring to light the openness of the specifications process, I believe. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Keith -- and you also assure me that this isn't a single source specification? Watts: The Public Works Department has provided me one -- one other vehicle that would have met the specification. I believe I have it here. Yeah. I believe it is an All- Jet -- Vacla All-Jet vac was, I believe, the one. Public Works did provide one other vehicle that would have met the specification. I also want to point out that the awarded bidder when I -- I also spoke to the awarded bidder about the situation that was going on and he also brought up -- it was him that brought to light the specification that calls for current model production and also the specifications have to be addressed prior to the bid opening. Bird: Oh, yeah. 2. ABM Janitorial Budgeted Contract Amendment No. 1 for $1,538.00: 3. Alpha Masonry Budgeted Contract Amendment No. 2 for $5,198.00: 4. Axelsen Concrete Budgeted Contract Amendment No. 3 for $3,127.00: 5. Sunshine Landscape Budgeted Contract Amendment No. 2 for $32,610.00: De Weerd: Okay. Anything further? Thank you on that item, Keith. Okay. Next Item. Watson: The next four items, I believe it is, are change orders to the City Hall project. Other than the ABM Janitorial bid, I believe the other three were a combination of contractor and city driven. The ABM Janitorial change order is issued -- or directed by Petra as they went for a final cleaning right before we moved in. Meridian City Council March 3, 2009 Page 10 of 38 De Weerd: Okay. Council, any questions on any of these four items? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I'd move that we approve the amendments for ABM for 1,538 dollars; Alpha Masonry for 5,198 dollars; Axelson Concrete for 3,127 dollars, and Sunshine Landscaping for 32,610 dollars. Zaremba: Second. De Weerd: I have a motion and a second. Any discussion? Rountree: Madam Mayor, question I guess for Keith. Both the landscaping and the concrete -- I guess and the masonry itself, do we have any outstanding punch list items on those that haven't been resolved and would this constitute some release of retainage in those areas? Watts: Yeah. The -- the masonry, we do have the issue that surrounds the entire building, which we have discussed at our previous meeting. It will -- it will allow us to release retainage on that -- on these items as well. President Rountree, I will be bringing the final retainages to the Council next Tuesday was my intention. Rountree: Okay. All right. Thank you. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: Keith, did your discussion just now include Item 6, the discussion on the janitorial bid -- Bird: No. No. No. Zaremba: Or is that going to be a separate discussion? Watts: That's a separate item. Zaremba: Okay. Bird: It's not a contract. De Weerd: Only Items 2 through 5. Zaremba: I will wait. Meridian City Council March 3, 2009 Page 11 of 38 De Weerd: Okay. If there is no further discussion, Madam Clerk, will you call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: All ayes. MOTION CARRIED: ALL AYES. 6. Discussion on Janitorial Bid: De Weerd: Okay. Item 6. Watts: Madam Mayor, Council Members, the Purchasing Department was directed to go out for an RFP for janitorial services, which we subsequently did. I met with Eric Jensen, our building maintenance supervisor to create the scope of work and the evaluation criteria. I also requested from the police chief his desirable services to be rendered at the police department as well when we put the RFP together. We issued the RFP to 14 contractors. We had one addendum. We received six proposals. The evaluation committee met twice. We called references for all six and sent those to the evaluation committee. The committee was recommending that we go with Clearview Cleaning Services. The amount from closing was 12,195 dollars per month, which was negotiable as well. Went through the RFP process. Public Works has also requested for the finance staff to put together a cost of doing in house the same services. The contractors are estimating between six and 12 personnel to do the job. And at first Public Works had requested a cost of -- or the cost for three individuals being hired. This is at ten dollars an hour. You'll see on the handout that I gave you. The cost of the contracted vendor is 146,340 dollars. The range for -- between three and eight personnel to be hired within the city is 286,409, to 460,415. So, I am looking for direction from Council as to what direction they would like to proceed and to answer any questions. De Weerd: Keith, can you tell us who was on the review committee and if references were checked? Watts: Yes. Kathy Wanner from my office did call references on all of them. The ones from Clearview, the references were comparable size buildings and they were exceptional comments that we did receive. The evaluation committee consisted of myself, Bill Nary, Tamara Scott from the Water Department, Jeff Lavey from the Police Department, and Rachel Myers from the Parks Department. De Weerd: Thank you. Council, any questions? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Meridian City Council March 3, 2009 Page 12 of 38 Zaremba: Just -- you may be aware of this, but the police department has an issue in that their current janitorial person is retiring this Friday, so assuming that we agree to go with Clearview, how soon are they able to start? Watts: I have not spoke to them yet. I needed to wait for Council direction, but, yes, Jeff has -- Chief Lavey has made me aware of that and I was going to bring that up here as well. If the direction is to move forward with them, I will be contacting them first thing in the morning to see if we can start background checks. Zaremba: Thank you. De Weerd: Any other questions or comments? Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I move we approve the contract with Clearview Cleaning, their janitorial proposal, for an amount not to exceed 146,340 for the year. Hoaglun: Second. De Weerd: Okay. I have a motion and a second. Any discussion? Rountree: Madam Mayor, I just have a question on costs. It's kind of odd how they have fallen out, that the -- Clearview has indicated that the two major buildings -- well, actually, we have three major buildings, but the City Hall and police station were considerably less than our current costs, yet all of the smaller buildings are considerably higher than our current costs. Is there some difference in the language in the RFP that gives folks a range in how to deal with that? Zaremba: We did give them the services that are expected from the city and they were the same throughout each building. I believe that the Police Department right now is -- in the RFP was asked to be cleaned seven days a week, which I would confirm with Chief Lavey before we finalize the contract. Rountree: And in your reference checks, comparable buildings, were there LEEDS buildings? Watts: Yes, Councilman Rountree. Rountree: Okay. De Weerd: Okay. Any further questions? Madam Clerk, will you call roll. Meridian City Council March 3, 2009 Page 13 of 38 Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. MOTION CARRIED: ALL AYES. Watts: Thank you, Madam Mayor and Council Members. De Weerd: You know, I would say that Proclean has been our service since we have moved in and they have done an outstanding job. I know anytime you say anything it's -- it's immediately addressed or -- and their personnel are friendly and professional and so I would hope you would pass on our appreciation for the service they have given to the City Hall building in this interim time. Watts: Yes, Madam Mayor. If you would like, I could write a letter of recommendation as well, if you would --they have done a fantastic job for us. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: I would second that and John in the back -- and thank you, John. I want to make sure that the contract, as we enter into it, has an out clause, so, you know, if -- we don't get in the predicament that we have been in in the past. Watts: Absolutely, Councilman Rountree. We will ensure that. Rountree: Thank you. De Weerd: Sony, I don't have my glasses on. I can't see that far. Usually we don't admit those things. But, again, our sincere thanks for the service that you and your staff have provided us. It's been exemplary. D. Public Works Department: 1. Reimbursement Agreement with JLJ Enterprises, Inc for Overland Road Water Main for $138,240.83: De Weerd: Okay. Council, moving on. We did remove Item E from the Consent Agenda and we did receive Councilman Bird's -- Bird: You have got D. De Weerd: Oh, I'm song. Sorry, Clint. Trying to make things easier for you. Dolsby: Yeah. All right. Thank you. Madam Mayor, Members of the Council, this item is for a cooperative construction and reimbursement agreement with JLJ Enterprises for 6,000 feet of 12 inch water line to be installed in the realigned Overland Road that we Meridian City Council March 3, 2009 Page 14 of 38 have agreed to with them. The terms of the agreement are that the city will pay 100,000 dollars to JLJ 30 days after completion, with the remainder to be paid over a five year period from fees collected within the service boundary. And just as an administrative note, we are also going to charge an administrative fee of $9,384.60, which will come out of this reimbursement. And I will stand for any questions. Rountree: Madam Mayor? De Weerd: Yes. Rountree: I have not gone through this in great detail, but I would hope there is language in here to the effect that this project will be done by a date certain and if it's not met, the city will not participate in this. De Weerd: I believe those assurances were built into the document. Rountree: It's in here? Dolsby: Yes, Madam Mayor and Councilman Rountree, they were built into the agreement. Rountree: Is there any reimbursement back to the city? De Weerd: I don't believe I remember seeing something like that. Dolsby: No. Madam Mayor and Councilman Rountree, there isn't that in there. The original bid was 175,000, which we would agree to reimburse one hundred of and, then, they would -- I think they would either rebid it or come up with another bid to reduce it to one 138. That's why the up front reimbursement is so much. Rountree: And we have had a Philadelphia lawyer look at this? Nary: Mr. Baird. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I'm sure he had that, too. Where is the completion date? I looked through this and I don't see an exact date. The only date I see on it is prior to March 13th, 2009. In five years -- the agreement can last for five years. I'm like -- I don't see any date. mean we got a five year agreement that -- if they come down to 59 months and, then, need to -- so, I don't -- I don't see where we have got a date here that would say they have to have it completed by a certain date. Meridian City Council March 3, 2009 Page 15 of 38 Dolsby: And, Madam Mayor, Councilman Bird, I don't see a specific date identified. There is a letter of credit that we are requiring them to get by March 13th and, then, we have some specific guidelines upon completion of the project. I'm not seeing a specific date in here either. Bird: The letter of credit, you know, and, then, if you go over to -- I just had it. Right here over to terms of agreement for a period of five years, terms of the agreement -- Dolsby: Madam Mayor and Councilman Bird, that's -- think that part's more geared towards reimbursement back to -- Bird: That's what I mean. Yeah. That's the only -- I don't see any completion date. Rountree: No. That's why I asked the question. Bird: That's why -- and I do understand, Clint, that the party has signed this and it's -- Dolsby: Madam Mayor and Councilman Bird, are you speaking of Mr. Jewett? Bird: Yeah. Dolsby: I don't think he's signed it. As far as I know. Bird: I thought Tom said he had when -- Dolsby: Oh. Nary: I thought we got -- Madam Mayor, Members of the Council, I thought we got signature pages today right towards the end of the day. But if it's critical to have a -- a final date other than this open ended date, certainly we can take this back and have the discussion. I don't know what the anticipated date of -- of this construction is. Do you, Clint? Dolsby: I don't -- no, I don't either. Bird: Do you know, Mayor? Rountree: Madam Mayor, my recollection is on a previous action on this particular application we established -- we were going to pay a fee, provided the road was completed I believe by the 1st of June or the 1st of July and if it was not completed, then, they were going to reimburse us that fee. I think the same date needs to be included in this, that if it's not done by this summer -- Nary: Right. And I think that's -- Meridian City Council March 3, 2009 Page 16 of 38 Rountree: But the five years, in my opinion, is superFluous. It's got to be done by this summer or I'm not going to be part of the deal. Nary: Madam Mayor, Members of the Council, Council Member Rountree -- and I think that's part -- I think that's part of the Linder 109 agreement. Isn't that right, Clint? Is what Council Member Rountree is referring to? Dolsby: Madam Mayor, Councilman Rountree, I believe it is now. I also remember when Mr. Jewett came before Council a few months ago and we agreed that we would waive our fees, given that he completed it -- Rountree: Waive the fees provided he could get it done by -- Dolsby: Right. Right. Rountree: And if he doesn't, we -- Dolsby: Uh-huh. And he committed to that when he was here at that -- at that time. Rountree: Yes. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: This is a vague recollection as well, but before Councilman Rountree mentioned June 1 st, I was thinking June 1st was the date that I remembered. So, we both came up with the same date from our collective memories. Rountree: That's not necessarily a good thing. Nary: So, Madam Mayor, Members of the Council, maybe what we will do -- the Linder 109 agreement is set for next week, so why don't we pull this back, we will have that discussion, I'll make sure if there is other -- if we need to make sure those dates match up in both this agreement and that one. We could have that back in front of you next week. I don't -- I think -- I know Mr. Brown wants to get paid, but I don't know that one week is going to make a difference from the length of time we have had this discussion, so -- would you like us to do that, if that would work? De Weerd: I don't know if it's just about Mr. Brown, it's -- I believe it has something to do with ACRD as well. Dolsby: The payment wasn't going to come until the end of construction anyway, so I don't think a week is going to hurt anything. Nary: Oh. Okay. Meridian City Council March 3, 2009 Page 17 of 38 De Weerd: And as I understand it -- and, Mr. Nary, perhaps you can correct me if I join the collective minds up here and have a little bit of fog, but did -- did we not -- this was initiated because ACHD needed assurances that the road projects were going to be completed, he needed to issue a letter of credit, the letter credit was contingent upon this agreement, and that ACRD had a very tight time frame on when he needed to get back to them. Now -- Nary: Those are all correct, Madam Mayor. That is correct. That was the discussion we had. De Weerd: Do you know what the date was? Nary: I don't. I'd have to pull the minutes. I don't recall the specific date. I do recall it being the summer, as Council Member Rountree stated. I don't remember if it was specifically June 1, so I will just have to pull the minutes to get that. De Weerd: Clint, do you know? Dolsby: I'm not sure either. De Weerd: Okay. Well, we will just continue this or postpone it -- any decisions until next week. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I would comment that if we are going to add a date certain to this, then, also paragraph H, which talks about change overs and construction contracts, I would add a sentence to say that change orders do not extend the time period, just to clarify that. Dolsby: Madam Mayor, Councilman Zaremba, we will have that in there as well. Thanks. De Weerd: Okay. Rountree: Madam Mayor? De Weerd: Yes, Mr. Rountree. Rountree: I move that we continue the discussion on this item until next week. De Weerd: I don't think we need a motion. Rountree: Okay. You have one anyway. Meridian City Council March 3, 2009 Page 18 of 38 Item 7: Items Moved from Consent Agenda: E. Approve Award of Bid and Contract with Treasure Valley Drilling for Well 28 Production Well for $244,026.00 with a Spending Authority fora 10% Contingency Amount: De Weerd: Okay. Well, thank you. Okay. Item E was removed from the Consent Agenda and would staff like to respond to Mr. Bird's concerns about the ten percent contingency amount? Watts: Madam Mayor, Council Members, I don't have anybody from Public Works here that's working on that -- that particular project. It was just -- the idea was to keep from coming to Council with a two or -- one hundred, two hundred or three hundred dollar change order. That was the general intention of it. Bird: Madam Mayor? De Weerd: Yes. Bird: If you got the -- if you got the specifications, the drawings and everything -- engineering all done on a well, you shouldn't have a bunch of two or three hundred dollar items and you can bring it through as -- it's too often if you give a ten percent they will spend it. If you do it with a change order, they don't. That's my only -- I mean we have never give contingency up until the last year or so and I think it's awaste -- I think it's a waste of money. They can come back with a change order and the five of us up here can decide it. Watts: I would also like to clarify that the -- the ten percent is not a guarantee or an authorization to increase the contract. The contract is still the bid amount. Bird: But, Keith, the way it's worded here with the authority of spending for a ten percent contingency means they have got 24,000 dollars they can spend without the people that are responsible for the dollars having a say. Watts: I will instruct Public Works of that. Bird: Madam Mayor? De Weerd: Yes. Bird: I would move that we approve the Well 28 bids and award the bid to Treasure Valley Drilling for the sum of 244,026 dollars and for the Mayor to sign and the Clerk to attest. Rountree: Second. Meridian City Council March 3, 2009 Page 19 of 38 De Weerd: I have a motion and a second to approve this item as stated by Mr. Bird. Any discussion? Hearing none, Madam Clerk, will you call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: All ayes. MOTION CARRIED: ALL AYES. De Weerd: I did find the a-mail from Mr. Jewett and I have asked -- I have sent that to our clerk to copy and so we can discuss it at the end of the agenda. Item 8: Public Hearing: MDA 09-002 Request to modify the Development Agreement for Woodbridge (Instrument #100006602) by T.T.S. Developments, LLC - 385 S. Locust Grove Road: De Weerd: Okay. Item 8 is our public hearing on MDA 09-002. I will open this public hearing with staff comments. Canning: Madam Mayor, Members of the Council, this is the Woodbridge modification to the DA project. It's located at 385 Locust Grove Road, which is on the west side of Locust Grove approximately a quarter mile south of Franklin and, again, the application before you tonight is a development agreement modification and I'm going to give you a little history. You can see this site. It's close to the police department, which is across the street. In 2000 the site was annexed with an L-O district as a pathway for annexation of Woodbridge Subdivision on the east side of Locust Grove. A DA was recorded with the annexation that required CUP approval of all future uses on the site. In 2001 O'Neil Homes, LLC, obtained CUP approval to convert an existing residence into an office -- a sales office. As conditions of approval of that CUP, the applicant was required to complete the following: Extend sanitary sewer and water to and through the site with any future development on the parcel or after a period of six years, which ever came first. Two. Construct a 25 foot wide buffer along Locust Grove beyond the right of way. Three. Construct a 20 foot wide buffer screen with a 60 percent solid screening adjacent to the residential lot north of the subject property. And, then, the double row of trees provided along the north side of the parking lot does meet this requirement currently. Four. They were required to construct a five foot wide perimeter buffer adjacent to the driveway and the parking areas with one tree per 35 lineal feet. And, five, they were required to construct a trash enclosure and other items as described in the findings. So, most of those you will recognize as typical landscape requirements and, then, the sewer extension. After the CU was approved for the office, a certificate of zoning compliance was required to be submitted for the change in use of the site, but one was never submitted. All required improvements were to be completed prior to obtaining a certificate of zoning occupancy, but because the CU was not commenced and sewer and water lines were not installed, occupancy was never granted and the conditions of approval were not met within the allowed 18 months time period and the -- Meridian City Council March 3, 2009 Page 20 of 38 excuse me. The applicant did not request a time extension within the allowed 18 months time period, so, the CU has, basically, expired. In the time since the CU was approved, though, the applicant states the developer of Woodbridge used the property as headquarters development and, then, sold the property to a law firm, who used the property as a law office. A certificate of zoning compliance nor a certificate of occupancy were obtained for these uses. Therefore, they, essentially, operated illegally. The current owner, the applicant, was made aware of the requirements when applying for a certificate of zoning compliance. Staff and the applicant agreed that the DA modification was appropriate with regard to the conditional use requirement and that a compliance schedule should be included in any modified DA -- development agreement. So, staff is recommending approval with the DA modification with the provisions shown in Exhibit B-2. And I will summarize those for you briefly. We are recommending that a CU not be required for uses that are principally permitted in the L- Odistrict. So, basically, we are recommending that we use the schedule of uses in the UDC. Two. That they extend sewer and water to and through the site within 12 months of approval of the DA by Council and submit surety for the cost of installation of these improvements prior to issuance of the certificate of zoning compliance. Three. The undeveloped portion of the site shall be mowed and kept free of weeds greater than eight inches tall. Four. A certificate of zoning compliance shall be submitted for the -- to establish the proposed use. And, then, finally, that the landscaping be installed to current UDC standards within a period of 18 months of the date of the approval of the DA modification and that they would submit a surety for the cost of improvements prior to issuance of the certificate of zoning compliance. So, the applicant is requesting a longer time frame and I'm sure they will talk to you about that. Staff is recommending the 12 months for services and 18 months for the landscaping. They would like three years for both items. And with that I will answer any questions Council may have. De Weerd: Thank you, Anna. Council? Bird: Madam Mayor? De Weerd: Yes, Mr. Bird. Bird: Anna, the landscaping between the -- this property -- well, on the north side of this property and the property next to it, is that what we are talking about they want -- you want it done in 18 months and no buffer and -- Canning: Madam Mayor, Members of the Council, Council Member Bird, we are talking about the typical required landscaping for a commercial project. So, it would be the land use buffer, as well as the landscaping along the parking aisles and along the street frontage. Bird: What about the north side? Canning: That would be the land use buffer. Meridian City Council March 3, 2009 Page 21 of 38 Bird: Okay. Okay. Thank you very much. De Weerd: Any other questions at this point? Is the applicant here? Would you like to comment? If you will, please, state your name and address for the record. Grubiak: Sure. My name is Joe Grubiak. My address is 24811 Lemp Lane in Parma. 83660. Madam Mayor and Council Members, again, my name is Joe Grubiak and along with my wife Holly and Brent and Barb Beveal we are TTS Development. We are two local families trying to make smart investments here in the City of Meridian and this is our first endeavor to invest wisely in commercial real estate. So, as we just heard, we are requesting a modification to the development agreement and asking for more time to make the stated tie ins to water and sewer and landscaping. We are not trying to shirk those responsibilities, but we do need more time to comply. We understand that according to the terms outlined within the amended development agreement that the subject property needs to be tied into sanitary water and sewer. But also since -- and also since none of the landscaping was done we understand that we need to comply with the city ordinances and create the proper buffers. We are simply trying to make the city understand that the financial hardship of compliance in today's economic conditions is extreme. We figure that to install sanitary water and sewer we are looking at expenditure of 15,000 dollars and to create the required landscape buffer we are looking at an expenditure of 45,000 dollars. Our current debt service on this property on a yearly basis is 28,200 dollars and we have been advised by people that represent us that our expected rents on the property that we have is around nine dollars a foot. So, our revenue is around 14,400 dollars and that's if we could rent it tomorrow if you granted us a certificate of occupancy this evening. So, even if we rented the property we are looking at a negative cash flow of 13,800 dollars on a yearly basis and that's a lot of money. Our two families -- we invested over 100,000 dollars each of our savings. We are two families of fairly modest means. This isn't a large developer that -- that has a deep pockets So, we are asking that the city grant us a three year compliance extension to the amended development agreement for water, sewer, and landscaping, so that we can accomplish the following: This will give the -- give us the time -- or, rather, would allow us the time for the significant expenditure required for compliance to the conditions outlined within the development agreement to more favorable market conditions. We are asking fora 36 month extension for compliance, because it is impractical to think that we would be able to find a lessee tomorrow if granted an occupancy permit tonight. Said another way, any amount of time shorter than 36 months would require us to spend 15 to 60 thousand dollars just to derive an expected rent that once obtained is only 14 four. Maybe said even another way, we feel like you're asking us to spend a quarter to make a dime. And, finally, I guess what we would like to say is that because of our modest financial means we just simply do not have the financial capability to step up and make the required investment in 12 months. We believe this request is reasonable, since we are aware of no economic analysis that predicts a substantial improvement to market activity in any term shorter than that. Again, we are not trying to shirk our responsibilities here. We understand that when we develop the property further that we need to come into compliance. We even understand that we need to bring it into compliance even if we weren't to develop the Meridian City Council March 3, 2009 Page 22 of 38 rest of the property for a period of time, we just think that -- and would like to ask for more time. With that I will answer any questions that you might have. De Weerd: Thank you. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: Sir, did you not do your due diligence when you purchased this property to know the predicament you got yourself into? I'm not sure Meridian did this for you. Grubiak: In our title commitment we did not understand -- we did not see a Conditional Use Permit. The Conditional Use Permit was expired at the time that we purchased the property. There was a development agreement that was outlined or mentioned in our title commitment. We also have the issue at this -- during this time of trying to seek additional clarification from the city and there was many points of frustration on our part where we couldn't locate proper documents due to the city's relocation to this facility. De Weerd: Does that answer our question? Rountree: Apparently they didn't do their due diligence. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: When did you purchase this? Grubiak: We purchased it a year ago -- well, just slightly under a year ago. Ten months. We bought it in April of last year. Bird: And you couldn't -- and you couldn't get our papers because we was moving? We didn't start moving until October 20th. Grubiak: We could not locate a certificate of occupancy for our building. We could not receive an answer from the city, because they couldn't locate any paperwork. Nary: Madam Mayor -- Grubiak: So, we -- subsequent to us purchasing the property we, then, made a further investment to -- to the front of our building to the tune of 35,000 dollars. So, we spent 235,000 dollars purchasing this property, based on the belief that we could rent the property after that. It wasn't until we -- we secured a renter and came to the city for our certificate of occupancy that we started running into this issue. Meridian City Council March 3, 2009 Page 23 of 38 De Weerd: Mr. Nary. Nary: Madam Mayor, Members of the Council, we had this discussion with the gentlemen here and their counsel -- I mean the reason they couldn't find a certificate of occupancy previously is because none were granted previously, because they had not complied with our ordinances with the prior users of the property. So, that's why they -- but the development agreements and such were all recorded documents, so they are recorded against the property. So, they are available not just from the city, but also from the county clerk. Hoaglun: Madam Mayor? De Weerd: Yes. Hoaglun: A couple of questions if I might. If you were to do this all over again, would you have purchased the property knowing what you know now today? Grubiak: I don't think so. Hoaglun: To follow upon that, the sewer and water and the 15,000, is that an estimate that you went out to get from somebody or how do we come to that figure? And same with the landscaping, the 45,000? Grubiak: Yes, sir. What we did is we arrived at the landscape figure based on three dollars a foot. Yeah. And that was complying with the stipulations as stated within your paperwork. And, then, my wife owns Quality Sand and Gravel and her partner also does pipe work. So, we have an expert that's given us an estimation of this. Now, having said that, this is simply for a water and sewer line capable of supplying the existing facility. We are not talking about trying to build in this some type of an amount based on future capacity necessitated by other development that we do to the property. Trying to be fair in giving us a realistic figure here. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: I guess this is a legal question and I don't know if we want to make a legal opinion on it, but it would seem to me that these are requirements the previous owner should have met and I would wonder whether you would have a way to go back to them to recover any costs that you might put into this, because it seems to me they should have done this two years ago before you were even involved. They were required to do that and it seems to me like that's something they owe you. Grubiak: Well, the other thing that -- that doesn't fit well with us is the fact that both O'Neil and these attorneys occupied the property illegally and we are trying to play by the .rules and in trying to play by the rules now we have been -- encountered this Meridian City Council March 3, 2009 Page 24 of 38 requirement, which, again, we are not trying to avoid, we are just trying to delay it for financial reasons. We acknowledge that we need to do it. De Weerd: And your time frame? Grubiak: We are asking for three years. A three year window. De Weerd: You know, I guess, Council, the justification that, you know, two wrongs doesn't make a right doesn't go very far and certainly I appreciate you stepping up and wanting to do the right thing. It's certainly not something -- you would think the attomeys would have known the steps to follow as well. But it is an economic environment that I -- I would think one that needs consideration of kind of a time extension on this and we do it on plats and the -- building hasn't been -- the footprint hasn't been changed and so I don't know that -- those are things in my opinion would warrant at least consideration. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I certainly don't disagree with you. I just -- I can't -- that's something we will have to look into as a Council why -- why for five, six, seven years that hasn't been done. But three years is a long time. I -- Grubiak: We acknowledge that if economic conditions were to improve and we decided to develop the rest of the property prior to that, that, obviously, it would necessitate us complying with an earlier time frame. We do not anticipate that occumng. De Weerd: I guess, Mr. Bird, you can consider a clause, you know, that three years, if not sooner, if the land should redevelop, which, of course, would be mandatory anyway. Bird: Oh, if he was to redevelop he'd have to come in and get building permits and stuff like that and at that point I'm sure our Planning and Zoning would -- would make it tough enough that he'd have to do it. My biggest heartache is we have let it go as long as we have without picking it up before and like somebody here said, two wrongs don't make a right. But I feel very sorry for these people, they -- I'm sure they all four wish that they would have done more diligence when they was purchasing the property now, but it's too late, I don't think we can probably go back on O'Neil or the attomeys, either one, because I'm sure they don't have a -- they don't have it in their contract an out or help me. So, Mayor, I'm like you, I think we ought to give them an extension. I don't -- I don't know. I guess if the neighbors have looked at it for five years or six years, I guess they could look at it for another three. Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Meridian City Council March 3, 2009 Page 25 of 38 Hoaglun: Question. What is the status of the sewer and water system? I mean it's still operational? It's functioning right now as far as we know? Grubiak: Yes, sir. In fact, when we bought the property we had the well redone, put a new pump in and the septic system was inspected at the time of closing and proven to be adequate and functioning property. Hoaglun: Okay. And I think I read in here, Anna, that the -- if that were to fail -- the drain field failed or something, then, they have to -- there would be a requirement to hook up if that were -- Canning: Central District Health won't allow another septic system with the sewer being so close. Hoaglun: Thank you. Canning: Madam Mayor, Members of the Council, I have had lengthy discussions with the applicant since and with regard to the due diligence I think that they did what they thought was necessary for the due diligence. I think it's -- they have admitted this is their first kind of project in this regard and -- and perhaps now have learned the full extent of what due diligence means. But I don't think that they entered into it lightly. As was mentioned, they have the septic inspected, they had the well inspected -- I mean they were -- they were going -- they were looking at the right things. They didn't know all the right things I think is what could be said. De Weerd: Thank you for that clarification. I guess, you know, I have kids and sometimes we penalize the kid that tells the truth when they know they will get in trouble and, you know, (guess -- and we are going to find instances like this and 1'd much rather reward the person who brings it out and says we recognize we didn't find it, we want to step up and be accountable to it, but will you work with us. And I think that's what we are being asked to do today. You know, I certainly don't want to let the people that don't come forward and don't do the right things get away with it, while those that do step up and stand tall, that we penalize. And so I -- I think if -- certainly this is your decision, but the flexibility of time extension and certainly that time extension -- the length of is yours to decide, but if you ask me I feel comfortable with it. Zaremba: Madam Mayor? De Weerd: Mr. Zaremba. Zaremba: If I -- for the same reasons I think 1 easily could support it. Three years, actually, is not as long as you might have asked for, I suppose. But as long as it's framed in terms that it's three years, that it would be sooner if you apply for a different kind of development on it, it would be sooner if your septic fails -- I think we all understand that. The question that I have asked before I will ask again, because I Meridian City Council March 3, 2009 Page 26 of 38 never remember the answer. Do we have a tickler system that would remind us three years from now to ask the question again? Bird: No. Canning: No, sir, we do not. Zaremba: So, how would we know three years from now that somebody needs to look? Nary: Madam Mayor? De Weerd: Mr. Nary. Nary: Madam Mayor, Members of the Council, you know, this is the discussion we have had a number of times. I mean, you know, this -- I just looked up while we were sitting here -- I mean this agreement was recorded in January of 2000. So, it was available on the county recorder. So, it was out there to see. Now, these folks -- certainly I believe them completely that they had no idea that this issue had never been resolved, but that is a problem. The reason this wasn't caught with the prior ones is you had occupants who, basically, didn't do anything. They didn't get a building permit, they didn't get an occupancy permit, they just occupied the space. So, we are working intemally to try to create a better system to catch those. One of the things in our recent discussion regarding the car lot on Fairview, we had the same concern about stretching in out too far beyond anyone's memory to be able to catch those things and I think you settled on two years on that particular project, because it was within a window that we felt we could intemally catch that and I don't have an easy answer. I mean there isn't a system, because -- because there are all integrated with different departments as what the needs are. Yes, if they come back for another building permit, someone's going to look at it again. If they come back for a different change of use, someone would look at it again, but just from March of 2009 -- by March of 2011 are we going to have some guarantee that someone's going to remind these folks or the next buyer that they have to hook up to the sewer, which is what these folks ended up in that situation. I can't guarantee that. My only recommendation is I wouldn't make the period too long. They can always come back in and ask again. I mean if you make it two years or a year and a half when the landscaping is due, if the economic climates have not changed, they would come in front of the Council at that time and make the same request and that at least keeps it within a reasonable time frame from the staff side to be able to catch these type of things. This, again, is why we require a surety, why we require to have a letter of credit for these things, so that -- we keep track of those and if it isn't done we have the financial means to get it done. Canning: Madam Mayor? Bird: Madam Mayor? De Weerd: Mr. Bird. Meridian City Council March 3, 2009 Page 27 of 38 Bird: Mr. Nary, while you have got that out there, I recall that when we -- Woodbridge, when that development agreement was done, before they got out here in this, this had to be -- this property was their link to getting to the city and had to be up to speed. Does not the original agreement say that? Nary: I'm not sure what you're asking, Mr. Bird. Is this -- Bird: Well, this property is how they got -- this is how they got contiguous -- Nary: Correct. Bird: -- to the city and there was -- as I recall -- and it might be some other project that I'm thinking about, but as I recall, the stuff that we are asking this gentleman to do before they did some stuff over there, it was supposed to be done, if I recall that, and I'm not going to take credit for being smart on it, but I have had two of their neighbors out there remind me of it. Nary: So, Mr. Bird, is your question asking was it supposed to have been done by the prior property owner? Bird: Before they got Woodbridge completed. Nary: Okay. So, before the final stages of Woodbridge this was supposed to have been done. Bird: Yes. Nary: Okay. De Weerd: I guess it's immaterial. Bird: It's -- it's immaterial. I just would like to know for my own -- Rountree: Not if his review is done. Bird: Yeah. I have no hammer now. Nary: We did have some of those type -- I mean we didn't prepare this agreement. This was prepared previous to me being here, but we did have those types of conditions. Again, the same problem arises. You have development that one empty lot -- I think there is an empty lot in Meridian Greens I saw just today. It's not completed and that's been there for ten years, so I don't -- I don't see that condition in here, but it wouldn't surprise me if I was there at the time. Meridian City Council March 3, 2009 Page 28 of 38 Bird: Well, Madam Mayor, if nobody else wants to testify or anything, nobody don't need anymore testimony, I would say let's proceed on. Canning: Madam Mayor? De Weerd: Anna. Canning: Madam Mayor, I would recommend if the Council is inclined to approve the development agreement modification that we do add a provision that any future development of the property kind of negates the timeline discussed in the DA modification and they would be subject to all the requirements of the city code, because its not in there and I could see how a different owner might not think that they had to do it -- if they were to buy it and subdivide it, they might think that they have got a three year time frame. So, I would recommend adding that in there. Rountree: Madam Mayor? De Weerd: Yes, Mr. Rountree. Rountree: Anna, you just answered the question I was going to ask you, so thank you for bringing that up. I'm a little concerned about the time period they are asking. We have seen a number of time extensions in the past months -- in the past year, as a matter of fact. Typically it's 12 months. We have gone to -Lakes on Fairview where we had a site that we wanted cleaned up that we extended that to I believe 24 months. I'm not -- I'm not going 36 months. I could probably -- I could go with 24 months on the landscaping and I'd really like to see the sewer and water done -- I'd really like to see that in there -- I'd like to see it done within 18 months. We never know if we can have -- you know, they -- they're playing Russian roulette with our capacity, with our hook up fees that are going up, with our rates that are going up, so I just -- I just can't move forward on their request for 36 months personally, but we can see how a motion goes here. Hoaglun: Madam Mayor? De Weerd: Mr. Hoaglun. Hoaglun: My thoughts are we are -- along the same lines as council president splitting these out, I was thinking, you know, sewer and water two years and landscaping three -- and at the same time, though, the argument that, you know, are we penalizing people coming in to make it right and to do things that need to be done that should have been done and weren't passed on and that we didn't catch, bothers me to some degree. And the other part, I don't think we ought to limit the time frames, because we can't go to three years, I don't think -- that's kind of like punishing people for a system that we are struggling with coming up with an appropriate system to get in place that works and there are systems out there that could do it for us, but they are very, very expensive, a software package, but -- so I'm wrestling with -- with doing a split or just going -- going Meridian City Council March 3, 2009 Page 29 of 38 three years for the whole thing and say, hey, you know, work with us on this. If you're going to be selling this property in the interim, let these folks know that they are walking into something of what they have. Grubiak: It's not our intent to sell the property. Our intend was -- is to make this a long term investment for both families. I'm sure many people come in here and tell you the same thing and do otherwise, but, sincerely, that's what we are -- De Weerd: You're right, that has happened before. Grubiak: Is there any way to make that three year notation a material fact to the title? Recording it to the title? Nary: Madam Mayor, Members of the Council, the development agreement that would contain whatever provision that the Council set, including those timelines, would be record against the property, but, again, as in your situation the current one was recorded against the property as well. So, I mean, yes, we will do that and so in our opinion it is out there for the world to see, but it doesn't mean that the same issue couldn't arise again. Canning: Madam Mayor, Members of the Council, the question was asked if we had a tickler system in place and we don't, but we are now recording all of our -- or linking our geographic information system database, we are linking all the development agreements back to the clerk's searchable documents, so we are providing better information to folks as they come in and ask general questions about a property, we can quickly pull up that DA. So, they may not be aware it's there and we may find it before they do with the new system, so it's not a tickler, though, but it is a better source of information. De Weerd: Well, you know, Anna, I -- it sounds like maybe this is a naive idea, but we have Outlook. You can go three years out on your Outlook and just put in an appointment date and say check such and such file. That might be too easy. But -- Canning: It sounds like it. De Weerd: Or not too easy. I said that wrong. Maybe too much of a naive statement, but I think we do need to find a solution to this, so that we do have reminders to look into things and for now until a better system is used, certainly Outlook can -- might be able to serve that. I don't know if when you get upgrades you lose some of that, but just an idea. Council, I guess it sounds like there is various ideas about the length and I would ask the applicant -- I'm sure he's brought the time frame, because that's what fits with them and, again, I go back to maybe the conundrum that Councilman Hoaglun is struggling with is, you know, I will quote someone that I know well is what's the hung. We have waited this long and we haven't really followed it, so what is the hung and we all are cognizant of -- of the economic times and I think that just underscores that three years is an appropriate time frame. But if there is no further comment from the Meridian City Council March 3, 2009 Page 30 of 38 applicant or any further testimony -- no? Council, any further information you need from the applicant or from staff? Rountree: Madam Mayor, I have a question for Bill or Anna and it's a matter of enforcement. Apparently had we known the previous occupiers of the property were occupying it without an occupancy certification, what's -- what's the enforcement and what's the penalty? Nary: Madam Mayor, Members of the Council, I guess I could start and Anna may have more. Basically, if we were to find someone that is occupying -- I mean we would use our code enforcement group to notify them of the violation. If they could bring it into compliance, we would allow them to bring it into compliance and while they would be doing that they would be paying the fees and the inspections and those kinds of things, depending on whether it's a life safety issue. I mean it may be something that they may have to immediately stop occupying the space -- we really wouldn't -- to be honest with you, we wouldn't be that concemed about the hardship, we really would be concemed about compliance issues. There are criminal charges. Obviously, they could be charged for violating those provisions of the code. So, there are tools that we have in place with code enforcement, but, again, the problem is is we have lots of places that are occupied that may or may not necessarily have an occupancy permit and catching that with four officers is difficult. Lieutenant Overton oversees that group, too. But that would be our general approach, is we would probably notify them of the violation. If they could come into compliance within a very short limited time we would allow that. If it was a life safety issue we wouldn't allow it to be occupied until it was brought into compliance and that's why you sometimes see those types of applications in front of you for different things. People have constructed a patio room without approval. People that have constructed different things without your approval. So, that's why you have seen those in front of you. I don't know if Anna or Lieutenant Overton has something else. Canning: Madam Mayor, Members of the Council, I believe the last illegal conversion of a residence that we had -- we actually did red tag the structure and force the business out and that was over off of Meridian Road north of Cherry there. The entrance to that subdivision. So, we were able to gain fairly -- compliance fairly quickly to get that commercial business out of there. De Weerd: Okay. Anything further from Council or the applicant? Thank you. Grubiak: Thank you. De Weerd: Council, seeing no further comment, I would entertain a motion to close the public hearing. Bird: So moved. Hoaglun: Second. Meridian City Council March 3, 2009 Page 31 of 38 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 CARRIED: ALL AYES. De Weerd: Do I have a motion? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Against my better judgment. I move that we approve MDA 09-002 with a three year time limit, unless development of the property happens before the 36 months time limit is up. Hoaglun: Madam Mayor, against my better judgment I'll second that. De Weerd: Oh, my gosh. Okay. Any discussion? Anna, did you -- was that the clarification that you suggested? Canning: Yes. I may flush that out a bit for the -- the conditions and, then, just -- I can make sure I bring it to Council's attention at their next hearing. De Weerd: Okay. Very good. Bird: You can do a better job than I can, so -- De Weerd: If there is no further discussion, Madam Clerk, will you, please, call roll. Roll-Call: Bird, yea; Rountree, nay; Zaremba, yea; Hoaglun, yea. De Weerd: Okay. Three ayes. Motion carries. Thank you. MOTION CARRIED: THREE AYES. ONE NAY. Item 9: Amended Ordinance No. 09-1394: Design Review Ordinance: De Weerd: Item 9 is our amended ordinance 09-1394. I will ask the clerk -- Madam Clerk to, please, read this by title only. Holman: Madam Mayor. City of Meridian Amended Ordinance No. 09-1394. An amended ordinance amending Title 11 of Meridian City Code regarding zoning and subdivision regulations codified at Title 11 and entitled the Unified Development Code of the Meridian City Code relating to adoption of a new administrative design review Meridian City Council March 3, 2009 Page 32 of 38 process and associated implementation procedures for design review 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. This is the first reading. I don't know if there is a desire on an amendment to read it three times. Council, what would you desire? Nary: Madam Mayor? De Weerd: Yes. Nary: Just so the Council knows, there was a -- there was more than a scrivener error, there was some information I think that was deleted is what it was -- that should have been deleted -- Canning: Yes. Nary: -- and didn't get deleted in the ordinance. So, it was more than what we could justify as just a -- essentially a clerical error. So, I don't think you need to read it three times. De Weerd: Thank you. Canning: And, Madam Mayor, it was a paragraph that was represented as being existing code, when it was actually not, so -- and we didn't want it to be, so -- De Weerd: Okay. Council? Zaremba: Madam Mayor, what are we looking for, a motion to -- De Weerd: To approve. Uh-huh. Zaremba: To approve this with suspension of a second and third reading? Okay. I move that we approve the amended ordinance 09-1394 as read and suspend the second and third reading. Hoaglun: Second. De Weerd: I have a motion and a second. Any discussion? Hearing none, Madam Clerk. Roll-Call: Bird, nay; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: Hey, Mr. Bird. Rountree: Against his better judgment. Meridian City Council March 3, 2009 Page 33 of 38 Bird: Against my better -- no, this was the good judgment. De Weerd: He doesn't want it to be cleaned up. He'd rather leave it the way it was. Zaremba: We are not always unanimous. MOTION CARRIED: THREE AYES. ONE NAY. D. Public Works Department: 1. Reimbursement Agreement with JLJ Enterprises, Inc for Overland Road Water Main for $138,240.83: De Weerd: Council, I guess you do have in front of you the a-mail that I was able to find amongst mine on what the time -- time sensitive issue is of this and since I didn't verify it to know -- I guess to know if this is truly what ACHD is -- is putting some firm deadlines in place to get these agreements or funding would be lost for the road's improvement, I can't attest to that, but I did want you to at least see the a-mail that I knew was referencing the kind deadlines for this approval, so that letter of credit could be issued, so that the project could be done and as you also see in this a-mail that it does have a completion date, date scheduled completion in June of this year. That's the best I can provide you. Rountree: Madam Mayor, if this item is that critical that we act on it tonight, we do not have a signed copy and no indication that the developer has signed it, I would say that we make the stipulated changes in the document we have before us and act on that -- Bird: Madam Mayor? Rountree: -- with respect to timeline and with respect to Mr. Zaremba's comments on Item H. De Weerd: Mr. Nary, you can -- you're sure that we didn't receive that? Nary: That's what Mr. Baird told me before the end of the day, that he was advised -- Bird: We do have a signed contract is what Tom told me. De Weerd: We do have a signed contract? Bird: We have this signed and that's -- that was my concern -- Rountree: Then, we will have one we have signed and acted on, so -- Meridian City Council March 3, 2009 Page 34 of 38 Bird: I don't -- I mean it's very definite right in here, Mayor, that -- that he agreed to it and we said we are holding his feet to the fire, but, really, Mr. Nary, this should have been put into this and, Mr. Rountree, I -- I'm not going to recommend the Mayor to sign this until it is put into it. But in the same token we -- he's under the belief that he has signed -- that he's done with this, but, actually, Bill, this is strictly a -- this is a latecomers agreement, isn't it? Nary: Yes. Bird: So, this just says how we are going to pay him back. Nary: Yes. Bird: It doesn't have nothing to do with time? I'm getting wishy washy right now, so I'm just asking some questions. Nary: The -- Madam Mayor, Members of the Council, Council Member Bird, there isn't a -- there isn't a condition that the work needs to be completed by June of '09 and by reading these minutes I would say -- since it doesn't say June 1st, that's probably June 30th would be the -- would be reasonable, so -- but there isn't that condition in there. So, Mr. Jewett may have signed a signature page -- he signed one that we -- that was in front of you tonight that doesn't have that condition. I don't know if that's a deal breaker or not. I'm assuming it's not. I mean he wants to get paid. He's wanting assurance in the a-mails that we are going to pay him when he completes it and the deadline that's being discussed is June of '09. So, we can certainly add that, but it wouldn't make -- I mean if that's your direction I would suggest you make that motion, we would change the document, and submit that to Mr. Jewett for his signature and if he agrees to that, then, the Mayor could sign it and we don't have to bring it back next Tuesday. Bird: Madam Mayor? De Weerd: Yes. Bird: And, Bill, that's what I -- he has agreed to the June 9th date. His biggest concem is this and our concem is this reimbursement needs to have that June '09 date in it. So, actually, I don't think -- I don't think it's a deal breaker, do you, Clint? Dolsby: Madam Mayor, Council Member, I don't either. Nary: Yeah. I think if you went out with a motion that -- that the condition is is that the agreement itself, with the additional condition that the work must be completed by June 30th of 2009 for it to be effective, we could add that -- we could add that condition if Mr. Jewett will agree to that, the Mayor can sign it, and we can have this done tomorrow. Bird: That would be my preference. Meridian City Council March 3, 2009 Page 35 of 38 Nary: And, then, we don't have to bring it back next week. De Weerd: Mr. Watts, did you have a comment? Watts: I was just going to comment that this is the third version, I believe, of this agreement that we have gone back and forth on. I do believe that Mr. Jewett came in and sat down with -- I believe it was Bruce Freckleton and Scott Steckline to renegotiate this as -- in the version that it was tonight. And I couldn't tell you if it was -- I wish that Scott would have been here tonight to answer these questions for you. Rountree: And none of those individuals sit in mediation meetings with that gentleman and end up having to pay him more money. And I'm not going to do it again. Bird: Yeah. You're right. De Weerd: I think our staff has spent considerable time with Mr. Jewett. Rountree: I know they have, but generally to his benefit. Madam Mayor, I have a question in the a-mail you provided us there is an amount mentioned of $172,766.55. In this agreement here we have an amount of 120,856.23. What's the difference? Is there an expectation on individuals part if there is going to be another -- between 40 and 50 thousand dollars on the line there? Watts: I'm not aware of that scope. I know the scope of work that was told today that the scope of work was downsized and the only difference that I was noted that there were -- let me see. There was two items that were put down as a hundred percent reimbursement, which were fire hydrants that the city would -- in the scope of work or the spreadsheet that is labeled construction cost accounting. As far as I can tell this was just presented by Mr. Jewett. De Weerd: And this a-mail was written before the third agreement was renegotiated, so that price might have changed to what is in front of you today is what my guess is. Dolsby: Yeah. That's correct, Madam Mayor. The original bid was about 175,000 and, then, it's been reduced to 138 since then. Watts: That's the city's portion. Rountree: That's the city's portion. Watts: What was the new as of the second go around was the design engineer fee and the south concept or asked to be added in. The first version that we had had only construction cost and, then, left an administration fee that the city was charging Mr. Jewett. De Weerd: Okay. Mr. Nary. Meridian City Council March 3, 2009 Page 36 of 38 Nary: Madam Mayor, Members of the Council, I think it -- again, as far as I knew as of 5:00 o'clock today this 128,856.23 was agreed to by Mr. Jewett and Mr. Brown for this project. So, although there is language in here and this a-mail for Mr. Jewett saying I'm not going to agree to this amount unless ACHD is going to follow through, that's not in here. So, if you would like, again, we can add the completion date for the remainder, because this does require the city to pay 100,000 dollars of that fee within 30 days. So, the remainder of the fee is not going to be paid unless it's completed by June 30th. What is your desire after June 30th? That we not pay it at all or we pay a reduced amount? Rountree: My desire is that we don't pay it at all. Bird: Second it. De Weerd: I guess we had an original agreement and I don't think we can do less than what that original agreement was without getting into a legal issue. Unless that amount, too, was tied to the road and, then, it would be nothing. I would ask not to -- to go there until we know legally what the answer is. Right, Mr. Nary? Nary: Madam Mayor, Members of the Council, what I would suggest is that if the Council would like, that you can make a motion to approve an agreement to be signed by the Mayor after Mr. Jewett, not to exceed the 128,856.23, that we would insert language that would require that the project be completed by June 30th, 2009, that the remaining portion of the city's amount to be paid would not be paid after June 30th, 2009, unless the developer were to be able to bring back in front of you evidence as to what caused the delay and what is a reasonable time to cure. So, if it is something inside of his control, material, workmanship, some -- something I can't think of today, he can come back and ask you -- explain the delay, you have the ability to grant him the ability to cure and, then, receive payment. And, then, I think we are fine. Then, I think if it's delayed he's going to have to explain that to you and he's got six months to figure that out or four months to figure that out. Rountree: I'm okay with that. De Weerd: Okay. Is that an okay to craft the motion that captures that? Rountree: Sure. Madam Mayor, I move that we approve and authorize the Mayor to sign the cooperative construction and reimbursement agreement with JLJ Enterprises with the stipulation as just read by the city attorney, incorporated in the document as it relates to completion date and any action that JLJ may have if they cannot meet that completion date, which would be June of 2009 as previously agreed to by the same firm as it relates to waiver of fees and in their a-mail of February 26th, I believe. Bird: Second. Meridian City Council March 3, 2009 Page 37 of 38 De Weerd: Okay. I have a motion and a second. Any discussion? Madam Clerk, will you call roll. Roll-Call: Bird, yea; Rountree, yea; Zaremba, yea; Hoaglun, yea. De Weerd: All ayes. MOTION CARRIED: ALL AYES. De Weerd: Okay. We are at the end of our agenda. Nary: Madam Mayor? De Weerd: Yes. Nary: Madam Mayor, Members of the Council, one last thing. Avery good friend of mine, Angie Behr passed away the other day. She was a city employee for about 15 years and her last position with the city was the city treasurer. She retired from the city back in right before we moved into -- right after we moved into the old City Hall and she lived a long life, but she passed away the other day, I just wanted to make note of that. Rountree: Thank you, Bill. De Weerd: Okay. Thank you. I think it's appropriate, with her service to the city, that we send -- Nary: We were planning to do that. De Weerd: --our condolences. Rountree: Very good. De Weerd: Okay. Thank you. Rountree: Madam Mayor? De Weerd: Mr. Rountree. Rountree: Move we adjourn. Bird: Second. De Weerd: All those in favor say aye. All ayes. Motion carries. MOTION CARRIED: ALL AYES. Meridian City Council March 3, 2009 Page 38 of 38 MEETING ADJOURNED AT 8:41 P.M. (AUDIO RECORDING ON FILE OF THESE PROCEEDINGS) MAYOR T Y De WEERD ATTEST: ®~ /_~/~ DATE APPROVED JAYCEE