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HomeMy WebLinkAbout2014-01-28~~E IDIAN:--- CITY COUNCIL REGULAR MEETING AGENDA City Council Chambers 33 East Broadway Avenue Meridian, Idaho AMENDED AGENDA Tuesday, January 28, 2014 at 6:00 PM 1. Roll-Call Attendance O David Zaremba X Joe Borton O Charlie Rountree X Keith Bird X Genesis Milam X Luke Cavener X Mayor Tammy de Weerd 2. Pledge of Allegiance by Tucker Gibbons 3. Community Invocation by Darrell Taylor with Ten Mile Christian Church 4. Adoption of the Agenda Adopted 5. Consent Agenda Approved (Pg 2-4) A. Acceptance Agreement: Display of Artwork of Joyce Green's Art Class in Initial Point Gallery from March 28 to May 2, 2014 B. Acceptance Agreement: Display of Artwork of Nampa Art Guild in Initial Point Gallery from June 27 to August 1, 2014 C. Memorandum Of Understanding To Amend Current Collective Bargaining Agreement To Allow The Open Entry Level Firefighter Position To Remain Unfilled D. Amended Community Development Block Grant (CDBG) Sub-Recipient Agreement with Neighborhood Housing Services E. Award of Bid and Approval of Agreement for the "NW 8th Street Sewer Trunk Main -Phase 2 Broadway to Cherry Lane" project to McMaster Construction & Development, Inc. for the Not-To-Exceed amount of $803,370.80. Meridian City Council Meeting Agenda -Tuesday, January 28, 2014 Page 1 of 4 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. F. Resolution No. 14-973: CPAM 13-003 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Amend the Future Land Use Map Contained in the Comprehensive Plan to Change the Future Land Use Designation on 7.76 Acres of Land from Low Density Residential to Medium Density Residential (6.36 Acres) and Mixed Use -Neighborhood (1.4 Acres) G. Findings of Fact, Conclusions of Law for Approval: RZ 13-016 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Rezone of 2.65 Acres of Land from the R-4 and R-8 Zoning Districts to the C-N Zoning District; and 6.3 Acres of Land from the R-4 Zoning District to the R-8 Zoning District H. Findings of Fact, Conclusions of Law for Approval: PP 13-036 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Preliminary Plat Approval Consisting of Thirty- Eight (38) Single Family Residential Attached Building Lots, One (1) Commercial Building Lot and Eight (8) Common/Other Lots on 7.76 Acres of Land in the Proposed R-8 and C-N Zoning Districts I. Findings of Fact, Conclusions of Law for Approval: MDA 13-021 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Modification to the Development Agreement to Change the Development Plan from Single Family Residential to Mixed Use J. Development Agreement for Approval: RZ 13-009 Village at Cold Creek by Hayden Homes Idaho, LLC Located North Side of W. Ustick Road, Approximately 1/4 Mile East of N. Ten Mile Road Request: Rezone of 4.38 Acres of Land from the R-4 to the R-8 Zoning District K. Development for Approval: AZ 13-014 Victory South (Hansen Property) by City of Meridian Located South of W. Victory Road, East of S. Linder Road and West of S. Meridian Road Request: Annexation of 310.20 Acres of Land from RUT, R1, R4 and R6 in Ada County to the R-8 (Medium- Density Residential) (88.14 Acres) Zoning Districts L. Resolution No. 14-974: A Resolution Authorizing the City Clerk to Destroy Certain Semi-Permanent Records of the Meridian Police Department. 6. Community Items/Presentations A. Community Presentation: Community Leadership Award (Pg 4-6) B. Mayor's Office: Mayor's Youth Advisory Council (MYAC) Update (Pg 6-8) 7. Items Moved From Consent Agenda None (Pg 8) Meridian City Council Meeting Agenda -Tuesday, January 28, 2014 Page 2 of 4 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. 8. Action Items A. Continued from January 21, 2014: Public Hearing: RZ 13-017 Sheryl 4-Plex by JTC Inc. or Assigns Located 3150 W. Sheryl Drive Request: Rezone of 0.54 of an Acre of Land from the L-O to the TN-R Zoning District Approved (Pg 8-25) B. Request for Withdrawal of Application by Schultz Development Baraya Subdivision No. 1 FP 07-030 Final Plat approval for 50 single family building lots and 14 common lots on 10.10 acres in an R-4 zone Located East of Black Cat Road on Franklin Road Approved (Pg 25-26) C. Request for Withdrawal of Application by Schultz Development Baraya Subdivision No. 2 FP 07-031 Final Plat approval for 50 single family building lots and 2 common lots on 10.55 acres in an R-4 zone Located East of Black Cat Road on Franklin Road Approved (Pg 25-26) D. Continued from January 21, 2014: FP 13-047 Baraya Subdivision No. 3 by CBH Homes Located at South Side of W. Franklin Road, Midway Between Black Cat and Ten Mile Roads Request: Final Plat Consisting of Forty- Seven (47) Single-Family Residential Building Lots and Three (3) Common Lots on 11.05 Acres of Land in the R-8 and R-15 Zoning Districts AND Request to Renumber this to Subdivision No. 1 Items 8B and 8C were withdrawn and project name was changed to Baraya Subdivision No. 1 -Approved (Pg 26-29) 9. Department Reports A. Parks & Recreation Department Report: 2013 Kleiner Park Concession Update and Proposed Concessions Operations Lease Amendment (Pg 29- 38) B. Legal Department: Meridian Heights Water and Sewer District Fee for Sewer service Motion approved for $4,807.00/month and bring back a resolution on this next meeting. (Pg 38-46) 10. Ordinances A. Ordinance No. 14-1594: An Ordinance (RZ 13-009 -Village At Cold Creek Subdivision) For The Re-Zone Of A Parcel Of Land Situated In A Portion Of The SW '/4 Of Section 35, Township 4 North, Range 1 West, Boise Meridian, City Of Meridian, Ada County Idaho; Establishing And Determining The Land Use Zoning Classification Of R-8 (Medium Density Residential) Zoning District In The Meridian City Code Approved (Pg 47-48) Meridian City Council Meeting Agenda -Tuesday, January 28, 2014 Page 3 of 4 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. B. Ordinance No. 14-1595: An Ordinance (AZ 13-014 -Victory South) for the Annexation of a Parcel of Land located in the NE 1/4 of the W 1/2 of Section 25, Township 3 North, Range 1 West, Boise Meridian, Ada County, Idaho Approved (Pg 48-49) 11. Future Meeting Topics (Pg 49) Adjourned at 8:24 p.m. Meridian City Council Meeting Agenda -Tuesday, January 28, 2014 Page 4 of 4 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearing, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. Meridian City Council January 28, 2014. A meeting of the Meridian City Council was called to order at 6:00 p.m., Tuesday, January 28, 2014, by Mayor Tammy de Weerd. Members Present: Mayor Tammy de Weerd, Keith Bird, Joe Borton, Genesis Milam and Luke Cavener. Members Absent: Charlie Rountree and David Zaremba. Others Present: Bill Nary, Jaycee Holman, Caleb Hood, Sonya Watters, Warren Stewart, Tom Barry, Tracy Basterrechea, Perry Palmer, Colin Moss, Ken Corder, and Dean Willis. Item 1: Roll-call Attendance: Roll call. David Zaremba X Joe Borton Charlie Rountree X Keith Bird X Genesis Milam X Luke Cavener X Mayor Tammy de Weerd De Weerd: Good evening. I will go ahead and get this meeting started. First I'd like to welcome you to the City Council meeting. It's always nice to see faces out in the audience. For the record it is Tuesday, January 28th. It's 6:00 p.m. We will start with roll call attendance, Madam Clerk. Item 2: Pledge of Allegiance by Tucker Gibbons De Weerd: Thank you. Item No. 2. We will be led tonight by Tucker Gibbons. It's nice to have you, Tucker. I will ask you all to stand, to rise and join Tucker in the pledge to our flag. (Pledge of Allegiance recited.) De Weerd: Tucker, if I could, I have a City of Meridian pin I'd like to give you for leading us tonight. Thank you for being with us. Item 3: Community Invocation by Darrell Taylor with Ten Mile Christian Church De Weerd: Item No. 3 is our community invocation. Tonight we will be led by Darrell Taylor and Darrell is with the Ten Mile Christian Church. If you will all join us in the community invocation or take this as an opportunity for a moment of reflection. Meridian City Council January 28, 2014 Page2of49 Taylor: Let us pray. Heavenly Father, I thank you for the democracy that is alive in this country today. Be with those great men and women in uniform that guard this precious way of life. Give those in authority wisdom in the decisions they make. Thank you, Heavenly Father, for this gathering and ask that you will just bless this group of men and women who are willing and dedicated to serve and to insure Meridian being a wonderful place to live and work. Father, you are our hope and our strength. In your son's very precious name we pray, amen. De Weerd: Thank you for joining us tonight. Item 4: Adoption of the Agenda De Weerd: Okay. Item No. 4 is adoption of the agenda. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: On the agenda under Consent, 5-F, the resolution number is 14-973. And under 5-L the resolution number is 15-974. And under ordinances under Item 10, ordinance number one is No. 14-1594 and Item B is Ordinance No. 14-1595. And with that I move we approve the agenda as published. Borton: Second. De Weerd: I have a motion and a second to approve the agenda as published. All those in favor say aye. All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. Item 5: Consent Agenda A. Acceptance Agreement: Display of Artwork of Joyce Green's Art Class in Initial Point Gallery from March 28 to May 2, 2014 B. Acceptance Agreement: Display of Artwork of Nampa Art Guild in Initial Point Gallery from June 27 to August 1, 2014 C. Memorandum Of Understanding To Amend Current Collective Bargaining Agreement To Allow The Open Entry Level Firefighter Position To Remain Unfilled D. Amended Community Development Block Grant (CDBG) Sub- Recipient Agreement with Neighborhood Housing Services Meridian City Council January 28, 2014 Page3of49 E. Award of Bid and Approval of Agreement for the "NW 8th Street Sewer Trunk Main -Phase 2 Broadway to Cherry Lane" project to McMaster Construction & Development, Inc. for the Not-To-Exceed amount of $803,370.80. F. Resolution No. 14-973: CPAM 13-003 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Amend the Future Land Use Map Contained in the Comprehensive Plan to Change the Future Land Use Designation on 7.76 Acres of Land from Low Density Residential to Medium Density Residential (6.36 Acres) and Mixed Use -Neighborhood (1.4 Acres) G. Findings of Fact, Conclusions of Law for Approval: RZ 13-016 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Rezone of 2.65 Acres of Land from the R-4 and R-8 Zoning Districts to the C-N Zoning District; and 6.3 Acres of Land from the R-4 Zoning District to the R-8 Zoning District H. Findings of Fact, Conclusions of Law for Approval: PP 13-036 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Preliminary Plat Approval Consisting of Thirty-Eight (38) Single Family Residential Attached Building Lots, One (1) Commercial Building Lot and Eight (8) Common/Other Lots on 7.76 Acres of Land in the Proposed R-8 and C-N Zoning Districts Findings of Fact, Conclusions of Law for Approval: MDA 13- 021 Da Vinci Park by CS2, LLC Located Southwest Corner of N. Locust Grove Road and E. McMillan Road Request: Modification to the Development Agreement to Change the Development Plan from Single Family Residential to Mixed Use J. Development Agreement for Approval: RZ 13-009 Village at Cold Creek by Hayden Homes Idaho, LLC Located North Side of W. Ustick Road, Approximately 1/4 Mile East of N. Ten Mile Road Request: Rezone of 4.38 Acres of Land from the R-4 to the R-8 Zoning District K. Development for Approval: AZ 13-014 Victory South (Hansen Property) by City of Meridian Located South of W. Victory Road, East of S. Linder Road and West of S. Meridian Road Request: Annexation of 310.20 Acres of Land from RUT, R1, Meridian City Council January 28, 2014 Page 4 of 49 R4 and R6 in Ada County to the R-8 (Medium-Density Residential) (88.14 Acres) Zoning Districts L. Resolution No. 14-974: A Resolution Authorizing the City Clerk to Destroy Certain Semi-Permanent Records of the Meridian Police Department. De Weerd: Item 5 is our Consent Agenda. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Under Consent Agenda, as noted earlier, Item 5-F is Resolution No. 14-973 and 5-L is Resolution No. 15-974 and with that I move we approve the Consent Agenda as published and for the Mayor to sign and the Clerk to attest. Milam: Second. De Weerd: I have a motion and a second to approve the Consent Agenda -- or, yes, the Consent Agenda. Madam Clerk, will you call roll. Roll Call: Bird, yea; Rountree, absent; Zaremba, absent; Borton, yea; Milam, yea; Cavener, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. Item 6: Community Items/Presentations A. Community Presentation: Community Leadership Award De Weerd: Council, I'm going to move down to the podium real quick. Okay. Just to save the recipients of this -- this award some time standing up here with me, I will go ahead first -- I would like to talk about why we are doing this this evening. This project -- this Community Leadership Award is being presented tonight because of an extraordinary amount of time and effort and tenacity and perseverance and -- I can think of probably more adjectives, but it is quite out of the usual for our city and well worth recognizing the individuals that have been involved. Tonight the City Council will be taking action on the annexation of 310 acres, also known as Victory South area, and it's comprised of Meridian Heights and Kentucky Ridge, lands owned by Meridian Heights Sewer and Water District, parcels owned by Mr. Lee Centers, the Hansens and the Tewalt families. It consists of about 287 homes and represents about a thousand of our residents -- our residents. We had a petition that came to the city to annex this area and to connect to our water and sewer services and I think what's very noteworthy on Meridian City Council January 28, 2014 Page5of49 this is a vote was taken last fall, 67 percent of the residents -- or the voters in that area participated in that vote and over 85 percent voted in favor of coming into the city to get connection to our services. Since being built Meridian Heights and Kentucky Ridge have been served by what is now known as the Meridian Heights Water and Sewer District. For nearly a decade the city has been working with this district looking at connecting to city services due to concerns of the quality of the services out there. At one time they had a public health emergency called by Idaho Department of Quality and even then the residents bonded together and found a solution, but they still had a vision of connecting with the city and I think long term and sustainability that was a good thing to do. There were more than a dozen approaches considered and there were issues that surrounded the idea of connecting to city services, like annexation, service connection logistics, taxes -- always a biggie -- rates, fees, financial, environmental considerations. This all took longer than anyone ever would have expected, but they kept as a vision a long-term solution that would benefit all of them. So, let me give you a few examples of what the benefits are to each of the different affected parties that were at the table. For the residents they will have quality water and sewer services in the most cost effective manner provided by the city. They will no longer face a costly and uncertain lawsuit and no longer will be burdened with running a district that probably the residents when they moved into these subdivisions never thought they would be a water and sewer district. For Mr. Centers he will have full ownership rights to his 40 acres of unencumbered land that currently serves as the application site for the district and also the dismissal of a lawsuit. For the city we were able to find a long- term solution or a resolution of the conflicts that have happened out in that area. It eliminates the use of and results of reclaiming two sewer lagoons in our area of impact. We will acquire all the assets of the district and I won't list all of those assets, but that is a benefit to the city and to those neighborhoods. Further, the dedication of the district properties and surrounding properties will remove a development impediment and afford to more orderly progression of the development within our area of impact. When the county decided to do this county urban subdivision I don't think they really thought of what the long-term consequence could be. I would like to commend all of those who stood firm and compromised. I think it was a long, hard battle, but it was a battle worth fighting and we appreciate you being here with us tonight for this award. So, I will ask Val Hill, Gordon Hamilton, Rick Fisk, Jeanna Harris, Ryan Morgan, Lee Centers, Becky McKay, Warren Stewart, Bill Nary and Tom Barry to, please, join me upfront and we will start with Val Hill and I will just read one of these and, then, I present them to each. But this is the Community Leadership Award and, Val, if you will stand over here with me. This is presented to you and for your extraordinary achievement in developing transformational ideas and leading innovative solutions to our community's challenges. This is presented to you in the year of 2014 with our sincere appreciation and just know that it is a token of our appreciation, but our heartfelt thanks go out to you. Thank you. Rick -- is not here. Okay. Lee Centers and Becky McKay. I will present these to the two of you together. Lee was -- was one of the new -- the new things -- new people that entered into some of the long-term discussions and Lee and Becky did bring new information, ideas, and solutions to the table and probably sometimes you wondered if this day would ever happen, but we do appreciate your tenacity and continuing to forge through it and see this to conclusion. So, Becky and Lee. Okay. Gordon and -- Ryan Meridian City Council January 28, 2014 Page6of49 and Jeanna. Okay. Jeanna and Ryan -- Ryan is one of the consultants on this and we appreciated, too, Ryan, what you added to the conversation, to the efforts and the hard work and, Jeanna, as well to your tenacity in helping us bring this to a conclusion. I need a few more of these boxes. You can't believe how heavy these things are. Okay. To our staff. This is a long time coming, isn't it? It certainly -- I know probably kept our Public Works director up late at night and he has a full head of hair, so I don't think we drove him to the point of pulling it out, but I do think we did. So, if Warren, Tom, and Bill would you, please, come forward and, Tom, after this if you would like to say a few words I certainly would invite you to. We know that we have no slides for him to show, so the comments might be short. Thank you. Barry: Thank you, Mayor. That's very generous of you and the Council. I'm very grateful to call myself part of this team. This has truly been a long time coming and -- and has caused I think all of us a lot of sleepless nights, but everyone in this group persevered and -- and brought something new to the table, whether it be a new approach, idea, solution -- this has been just a phenomenal team to be a part of and I'm so grateful to have been a part of it and I feel just privileged and honored that -- that I can stand with these fine ladies and gentlemen that have helped bring about this solution to a decade long challenge for this community and Ijust -- I'm just absolutely pleased with the results and although we have a long time to get through this transition area period and that's going to be complicated and we will have probably many more sleepless nights, where we are at the moment on this project has been very gratifying and I'm very appreciative of everyone's support, including that of our community and certainly the Mayor and Council. So, thank you all very much. De Weerd: And I will tell you just because you got an award you do not have to wait through the whole meeting. You have already done your time in this Council chambers. So, thank you. B. Mayor's Office: Mayor's Youth Advisory Council (MYAC Update De Weerd: Our next item under Community Presentations is Item 6-B, which is under the Mayor's Office, it's our Mayor's Youth Advisory Council monthly update. Harris: Madam Mayor and Members of the Council, I'm Danielle Harris, the at large representative for MYAC and today I will give a brief update on the council's activities and the last update was on November 6. Regarding membership, we have had a huge participation in MYAC this year, larger than ever before, with an active roster of approximately one hundred youth, with an average attendance at meetings of around 75. We also won the STAND grant, which stands for Supporting Teens Against Nicotine Dependency. We won this 1,000 dollar grant yet again and sent two of our MYAC representatives to training to learn of the requirements of this grant and also to be educated on the most updated facts and information on how to help our Idaho teens avoid nicotine, that is important for the health of our future generations to be aware of the deadly effects of it. This year we also won the Governor's Brightest Star Award. Meridian City Council January 28, 2014 Page7of49 We were chosen for one of the two top awards for all of our hard work, volunteerism, and contributions to our community. Needless to say we are proud of this recognition and it has only given us more -- more drive to contribute to the community. Many of us also bundled up and braved the cold to assist in the production of the city's Winter Lights Parade in helping with crowd control. One of our members was even selected to be a judge for the floats. And my personal favorite was Mad City Money. Financial responsibility is so important for our generation and just a career field and as -- and the city as a whole. We partnered with the Cap Ed Credit Union to emulate real live financial scenarios for this annual event. We learned about budgeting, balancing a checkbook, and how to be ready for the unexpected that life will surely throw at us. We like to refer to this event as the real life game of life. To make the event life like, we partnered with the Meridian Police Department to hand us good and bad tickets. Furthermore, we conducted two roadway safety assessments or RSAs. MYAC has always been involved in roadway safety, as we should, but this year we have taken it to the next level. We recently conducted assessments of three schools of parking and driveways and counted those who were buckled up versus those who were not. We counted teen drivers and passengers and I must say we were extremely impressed. Of the three schools we found that Meridian Medical Arts Charter and Meridian Tech had 88 percent of their drivers and 80 percent of their passengers wearing seatbelts, while Renaissance had 91 percent of their drivers buckled and 89 percent of their passengers. The data collected will help us with our government affairs advocacy campaign this year regarding seatbelt safety laws. To that effect we also shared this info with the three schools that they, then, related it to the students and ultimately improved their rates even more. Recently MYAC also participated in the Youth Lobby Day where 18 MYAC students assisted the American Heart Association with their annual Youth Lobby by asking our state lawmakers to incorporate more physical activity in PE classes and fund CPR training in all schools. In addition to advocating for a worthy cause, we also made two partnerships and were able to practice the art of communicating with state leaders. This presented us with the opportunity to meet the legislators to whom we would be presenting further MYAC endeavors in the future. But after all this hard work we decided to have some fun and we all got tickets to the Steelheads game. We had about 40 attend, which is fantastic, and while we may not have won the game we were pretty much enthralled by the multitude of hockey fights. And last, but not least, we had our legislative breakfast. We recently held the annual breakfast for our lawmakers. But this year we incorporated something different. Instead of hosting it at a restaurant we hosted it right here at City Hall and had all the MYAC members cook for the breakfast. This allowed all the forty members of the government affairs committee to participate in the event. This year we are working with State Representative Wills for the local nonprofit Buckle Up For Bobby and other organizations to make seatbelt laws enforceable as a primary versus secondary offense for teens 18 and under. To put it lightly, we pretty much knocked it out of the park and that was all due to our intense preparation, our presentation, and our question and answer group was just knowledgeable and phenomenal altogether. The legislative board has just begun and we look forward to reporting to you that we assisted in passing another to make sure of the safety of teens and all other Meridian residents. Thank you for your time and I will now stand for questions. Meridian City Council January 28, 2014 Page8of49 De Weerd: Thank you, Danielle. Any questions from Council? Bird: I have none. Cavener: Madam Mayor? De Weerd: Mr. Cavener. Cavener: Not a question, but just more of a comment. I was fortunate enough to be with MYAC down at the Youth Lobby Day down at the capital and you go on the record many times to say that our youth council is recognized as youth leaders in the state and that was echoed at least ten times over by not just the Meridian area legislators, but legislators from across the state who know when MYAC is in the statehouse something big is happening and so congratulations on all your hard work, we sure appreciate having you coming and giving us this report. Harris: Thank you very much. De Weerd: Any other questions? I would tell you that when we had our legislative breakfast we -- we did invite our legislators that were there in attendance -- I had prewarned our students that they would be given some hardball questions and I don't think our legislators disappointed us with -- with their questions. They were hardball questions, but the teens were well prepared and really did represent our citizens, our city, the teens very well. So, thank you, Danielle. It's been a joy getting to know you through the executive council. Just -- just for their information, do you want to tell them what the at large representative does? Harris: Sure. All right. So, the at large covers all the charter schools and some of the private schools in the area. This includes the Meridian Technical, Medical, Compass Charter, as well as Cole Valley and at times Ambrose. I think there is about nine schools altogether and so my job is to communicate with these schools to make sure that the events that we put on in MYAC are communicated to them. De Weerd: Yes. And she does a very good job. So, thank you for joining us tonight. Item 7: Items Moved From Consent Agenda De Weerd: Okay. There were no item moved from the Consent Agenda. Item 8: Action Items A. Continued from January 21, 2014: Public Hearing: RZ 13-017 Sheryl 4-Plex by JTC Inc. or Assigns Located 3150 W. Sheryl Drive Request: Rezone of 0.54 of an Acre of Land from the L-O to the TN-R Zoning District Meridian City Council January 28, 2014 Page 9 of 49 De Weerd: So, we will move to Item 8-A, which is continued from January 21st. It's a public hearing on RZ 13-017. I will ask for staff comments at this time. Borton: Madam Mayor? De Weerd: Yes, Mr. Borton. Borton: On this application I'm going to recuse myself and I have brought the matter to the city attorney's attention as well. De Weerd: Okay. Borton: Thank you. De Weerd: Our Madam Clerk will let you know when this item is over Watters: Thank you, Madam Mayor, Members of the Council. Staff would just like to note for the record that when an applicant requests a continuance of a project it is only a request. This project was continued from last week's meeting at the request of the applicant. Council does make the decision on whether or not to grant that request. Typically requests are granted if the applicant or representative is unable to attend the meeting or if the applicant requests additional time to work with the neighbors or revise their plans based on the staff comments or commission recommendations or public testimony. Typically public testimony is not taken until the continued hearing date in order to allow the applicant to present the current development plan and the public opportunity to give testimony based on that plan. It also gives the applicant a chance to respond to the public testimony and the Council the opportunity to review the project with all points taken into consideration at the same hearing. On this particular project, in an effort to notify the neighbors of the requested date for the continued hearing, the applicant did contact Cindy Green of the Tiburon Meadows Homeowners Association and also updated the hearing notice sign on the site. Staff just wanted to note that for the record for the public, as well as to Council. De Weerd: Thank you Watters: The application before you tonight is a request for a rezone. This site consists of .31 of an acre of land. Currently zoned L-O. And it's located at the northeast corner of North Ten Mile Road and West Sheryl Drive at the 3150 West Sheryl Drive. The Comprehensive Plan future land use map designation for this site is mixed use community. This site was rezoned to L-O in 2004 and included in the development agreement and plat for Tiburon Meadows Subdivision. The applicant proposes to rezone .54 of an acre which includes adjacent right of way from the L-O zone to the TN- R, to Traditional Neighborhood Residential District, consistent with the mixed use community future land use map designation. A concept plan was submitted as shown, showing how the site is proposed to develop with one multi-family four-plex structure, Meridian City Council January 28, 2014 Page 10 of 49 parking, enclosed bicycle parking, and a play area. Six foot tall fencing is shown along the north and east property boundaries. There is an existing 25 foot wide landscape street buffer easement on the site adjacent to Ten Mile Road, as required by the UDC. A driveway is proposed for access via West Sheryl Drive. Direct lot access via Ten Mile Road is prohibited. The proposed multi-family residential use of the site is a principal permitted use in the proposed TN-R district. The Commission did recommend denial of the subject rezone request. Since that hearing the applicant did hold another neighborhood meeting after the Commission hearing on January 15th, of which five people attended. You should have a copy of the sign-in sheet in front of you tonight of those that attended. Summary of Commission hearing. James Gibson, Tyler Johnson, and Jake Conklin testified in favor of the application. Phillip Zaluska, Ronald Arnt testified in opposition. Written testimony was received from Tyler Johnson, the applicant, in agreement with the staff report. Phillip Zaluska, Cindy Green, Judith Strite, Judith Titus, Ronald and Brenda Arnt, Don and Pat Baumbach, Edward and Patricia Brown, Terry Vice, one unsigned letter just simply signed Tiburon Meadows resident and a petition signed by residents of Tiburon Meadows Subdivision all in opposition of the subject application. Key issues of discussion by the Commission. Testimony provided by the neighbors in opposition to the application was largely based on traffic concerns, concerns the site is too small for the proposed development. Incompatibility with existing residential uses and two story height of the proposed structure and the appropriateness of keeping the property zoned L-O for possible future development of an office versus rezoning the site to accommodate the proposed multi-family development at this time. The Commission voted three to one to deny the applicant's request, because they felt the existing zoning is more appropriate for the subject property than that proposed by the applicant. Since the Commission hearing written testimony has been submitted as follows: Todd Lakey, the applicant's representative, submitted an update since the Commission hearing. Cindy Green testified in opposition -- or, excuse me, submitted written testimony in opposition. A petition signed by residents of the Tiburon Meadows Subdivision requesting Council uphold the Commission's recommendation of denial was submitted. Ronald and Brenda Arnt, Edwin Brown, Phillip Zaluska, all in opposition and Thomas Coleman, property owner to the south, submitted testimony in favor of the application and AI Marino of Thorton Oliver Keller commercial real estate also submitted comments on the application and those are in front of you tonight. They came in a little bit late. That's all staff has, if, excuse me, Mayor and Council have questions. De Weerd: Thank you. Council, any questions at this point? Bird: I have none, Mayor. De Weerd: Okay. Would the applicant like to make comment? Lakey: Thank you, Madam Mayor and Members of the Council. For the record my name is Todd Lakey, address 141 East Carlton in Meridian, Idaho. Madam Mayor, before I proceed just want to make sure that you and Mr. Nary are comfortable as far as our quorum and proceeding tonight with the -- Meridian City Council January 28, 2014 Page 11 of 49 Nary: Madam Mayor, Members of the Council, even though Councilman Borton has recused himself he is still present, so the quorum doesn't change by him recusing himself, so the three members can still vote on this. Lakey: Thank you, Madam Mayor. Thank you, Mr. Nary. De Weerd: This is something I'm used to usually. Six people is weird, you know. Lakey: Madam Chair, the application in front of you tonight is for a small in-fill development on a parcel that's been vacant for approximately ten years. The proposed multi-family use that the applicant is bringing forward conforms with the Comprehensive Plan for the city and the Uniform Development Code. It strongly conforms with both of those items. The overall goal of the City of Meridian is to have property develop. Property owners have the right to develop their property. The city wants property developed. Overlying that are the ordinances and the Comprehensive Plan to help balance those things and make sure those things move forward appropriately. In this case, as I said, the Comprehensive Plan strongly supports this application. This is a small out-parcel, as staff mentioned, that was zoned office in 2004 and when you start a project you don't always have a crystal ball as to what's going to be the appropriate use and what's going to be viable down the road. The efforts to sell this property for office development and development of this property has been unsuccessful. Since 2004 we have gone through the boom. That did not result in development of the property. We had the downturn and a slight resurgence that we are experiencing now. The property still has remained undeveloped for office use. My clients are realtors and they have experience. If this property was viable for an office space use they would not be here tonight with this application. You will also hear testimony tonight from Jake Storey, a local commercial realtor here in Meridian and you will also receive the written comments from AI Marino with TOK that there is extremely low demand, because of high supply and vacancy and a lot of office property that's space undeveloped. If I can -- there we go. Figure this out. If you see this on your screens, Council Members. I kind of want to go through some slides and just talk a little bit about the property and the area. This is the Meridian Comprehensive Plan, your future land use map. If I do this, does it show up on our -- can you see the arrow there? That's roughly on the subject property. The intersections we are talking about are Cherry and Ten Mile. The red area is commercial, the purple area is office and the brown right underneath the arrow is the mixed use community and we fall in that mixed use community designation. There we go. There is a little closer up view. Council Members, you also saw on the previous slide there is a lot of good quality green space in the area as well as far as parks and schools. Right -- we are right on the arrow. That's the edge of that mixed use community designation in the Comprehensive Plan itself denotes that this area is for a mix of uses for a variety of uses. It also shows you have the brown area, you have the yellow, which is medium density residential. The office to the south and north and the commercial. These are uses that can exist and do exist in the area and they exist cooperatively, they exist compatibly. The Comprehensive Plan recognizes that these things can exist and be compatible. Here is the purpose of the stars and mixed use Meridian City Council January 28, 2014 Page 12 of 49 community designation in the Comprehensive Plan is to allocate areas where community serving uses and dwellings can be integrated. It's about integrating mixed uses. It's about promoting a variety of uses and when it talks about residential development, it's to be between six and 15 dwelling units per acre. We fit squarely within that designation. Okay. A little tour of the area. Council Members, this is the property looking from Ten Mile, looking to the east. You can see the -- the adjacent home and the slight berm there along Ten Mile. This is looking onto the parcel from Sheryl looking to the north. You can see the Albertson's there to the northwest and, then, the LDS church there to the north. This is looking along Ten Mile again. This is a 25 foot landscape buffer that runs along Ten Mile. Again, you can see the LDS church, which is, essentially, a two story plus structure, fairly large structure just to the north. This is looking to the west. This the intersection of Sheryl and Ten Mile and you can see the access to the subject property. Again, this is the home -- two story home adjacent to the south of the subject property. Compatible, again, as far as height and structure composition. Immediately to the east of that you have an additional kind of open space buffer area. You have -- you can also see the edge of the Tiburon Subdivision and their six foot vinyl fence along the boundary on the other side of that parcel. This is looking east into the Tiburon Subdivision. You can see the home to the right -- or, excuse me -- to the left and to the right you have the parking lot for the church, which is adjacent and also that's the access point to the commercial. Sorry. One more view to the north. This is that large LDS church. This is the church across the street to the south across Sheryl. Also a fairly large two story structure with a parking area. This is the view immediately looking from the subject property to the south. Sorry for the blurry picture here. This is the commercial -- larger commercial development just to the south of the -- of the church I just showed you. This is Mr. Coleman's project. Fairly good size commercial office project. Access through that -- that parking lot that you saw on the previous slide. So, you have -- got this is -- this is also designated office on the Comprehensive Plan, that area to the south. A little bit to the north. This is the credit union there at the intersection of Cherry and Ten Mile. You can see the vacant parcels there that are also designated and zoned office that are undeveloped at this point. Again, better access and part of a cohesive office development. This is looking the other direction in that same parcel there to the east. That's the St. AI's complex there. And, then, looking across the street at Ten Mile, again, to the Albertson's, that's the commercial use. Our proposal is for multi-family. It's a building that's compatible with these surrounding uses and structures that I have just shown you as far as the character of the area. It's compatible in size, in dimension, and it's not out of character with the adjacent uses. This is a quality project. It's certainly not brick and mortar, but it is a quality project. It will have to continue if it's approved through the process, design review with the city, so the city has controls on that as well. You can see, as staff described, there is a six foot fence along the eastern boundary and the northern boundary. You can see the landscaping that's proposed. The landscaping buffer there along Ten Mile. There is a small play area on site. It's about the size of one of the units that can provide some additional space, but as I mentioned before there is good access to parks and schools in this area. It's a facility or a building that has varying facades and elevation. Not cookie cutter project. Some of the concerns that were expressed earlier were in regards to traffic and this is an a-mail Meridian City Council January 28, 2014 Page 13 of 49 from ACHD, Kristy Little. They use the ITE manual in determining traffic and they look when they are analyzing traffic at the p.m. peak hour traffic volume. For afour-plex it's .31 trips per unit. We have four units. For general office it's .745 per thousand square feet and it's .1785 if it's a medical office. There is a higher level of traffic there. Here is what it results for our project. A four-plex with the four units, 1.24 p.m. peak hour trips. If it's a general office of comparable size, which is about 4,000 square feet, it's almost three. If you go down to 3,000 square feet it's 2.2, 2,000 square feet 1.49 and if it's a medical office, then, your numbers really go up. Ultimately, Council Members, what you have to look at is the Uniform Development Code and the Comprehensive Plan and we comply with the criteria set out in code. I will go through those criteria. Does the application meet the dimensional standard? Yes, it does. It complies with those requirements of the city. So, the argument that it's -- it's too big or the parcel is too small for what we are proposing simply is not the case, it conforms with the standards. Does the application comply with the Comprehensive Plan? Yes. We talked about that. This is a mixed use community designation with amulti-family designation in the Comprehensive Plan. It's a designation in the plan to integrate mixed uses. Does the application comply with the propose of the proposed district? You're looking at TN-R, which is a district that incorporates the residential use of both single and multi-family, so we comply with that. Will it be materially detrimental to the public health, safety, and welfare? No. The -- there were no negative responses from agencies or city departments. That also applies to negative impacts on public services. The structure is compatible. There is appropriate landscaping, buffering. The Comprehensive Plan I think really reflects what the desire and what the best interest of the City of Meridian have. It's reflected in that Comprehensive Plan, which, again, supports the application and supports the mixed use. Ultimately, Council Members, this is an application, as I said, that complies with all the things that we are supposed to comply with when it comes to an application before this city. This is a property that's been vacant for ten years. Einstein said you can't keep doing the same thing and expect something different to happen. We can't keep expecting limited office to be a successful zone on this -- on this piece of property. The applicant has brought forward a responsible in-fill proposal that complies with the requirements of the city. We ask that the -- we ask that you allow the applicant to make a productive and appropriate use of this property that's been useless for the last ten years. With that, Mayor and Council Members, I'd stand for any questions. De Weerd: Thank you, Mr. Lakey. Council, do you have any questions? Bird: Not at this time. Cavener: Not at this time. De Weerd: Okay. Lakey: Thank you, Madam Mayor. Meridian City Council January 28, 2014 Page 14 of 49 De Weerd: Madam Clerk, do you have the sign-up sheet? Okay. If when I call your name you would like to provide testimony on this application I would invite you forward. Otherwise, I will read into the record your position on this application. Jake Conklin, signed up for. Okay. Okay. Pat Baumback. And so if I mess your name up I'm already apologizing, okay? Signed up against. Okay. Well, if you have a spokes person I will go ahead and ask that spokes person to, please, come forward. If you are speaking for your neighborhood I will extend your time, so if you will, please, state your name and address for the record. Arnt: Madam Mayor, my name is Ronald Arnt. I live at 3058 West Santa Clara Street. De Weerd: Thank you. Arnt: In Meridian, Idaho. I'm speaking on behalf of part of the people. We have some other people who want to speak also. Prior to my retirement I spent over 35 years in the lending industry. As a former lender I believe that the best use for the lot is as currently zoned because of its location. The two buildings to the north are a church, the buildings to the south are a church and building under construction. Albertson's across the street, we covered all this. The applicant has indicated that the lot hasn't sold because of its location. Well, he's saying that, what about the lots behind St. AI's Hospital and the credit union, they haven't sold, they have been that way for over ten years as well. Because of the location of the lot myself as a lender we wouldn't lend on this property. The reason being is because of the location. It's between two commercial properties. A four-plex unit is normally among other four-plex units in commercial development as the in-fill takes place the four-plex unit would be in that location prior to -- in all probability it would have been in the commercial type property. The developer uses a traffic formula which is very good. I kind of understand it, but I'm in a little bit of disagreement, because of the size of the lot in all probability the size of the building that will be used will be much smaller and consequently, the traffic would be much less. As an example, we used a doctor's office. In all probability, because of the size of the lot, it would probably be something more an insurance agency or something on that category, which would have much less traffic. On Cherry Lane between Ten Mile and Main Street are a number of doctor's offices. All these doctor's office and dentist's offices are one story. The ones that I could see anyway. In all probability, if a doctor or dentist was putting in an office on that lot it would be one story and, again, the size of the -- because of the size of the lot it would be relatively slow. Although there are traffic studies that show no major traffic problem in the area, we do have a big problem as there is only one entrance and exit to the subdivision. During rush hour traffic -- during rush our traffic it's backed up well past Sheryl. Even though we have a do not block sign and no parking on the street, the intersection is blocked quite often. It's almost impossible during rush hour to make a left turn and coming in -- taking a left turn coming in if one lane stops you still have to be very leery about the other lane, because you cannot see and you're crossing at your own risk. The reason I bring this up is because we feel that a poor place would not have sufficient parking and the occupants and the visitors' cars would flow onto the street, which is near that intersection, which makes it even more dangerous. I believe that the reason that the lot Meridian City Council January 28, 2014 Page 15 of 49 hasn't sold is two fold. The main reason is because the economy has been very slow for the last several years. As an example, those wonderful lots right besides St. AI's and the credit union, they have been there longer than this lot has and they have not sold. The second reason may have been the price of the lot. I do believe that the price may have been above normal, but I don't know, I'm not that privy with it. As the economy improves small business will be looking for a new location and everything is kind of moving this way as well and that would be a prime location. Last week the developer suggested that they would pay a minimal amount for our common area. That would be so the residents of the four-plex to use our common area. This would create a hassle of problems, because we would not know who would be there, the people now that live there are able to use the area. We have people who come in the area and want to use it, they try to get into our clubhouse, which we try to keep locked. We are worried about the insurance and other liabilities should this happen. Many of us are senior citizens and those who aren't moved here because of our -- our amenities and safety and knowing our neighbors and if a four-plex is there and they start using our area, we would not know them and that would be a concern for us. That's really all I have. De Weerd: Council, any questions? Bird: I have none. Milam: I have a question, Madam Mayor? De Weerd: Mrs. Milam. Milam: So, one of your main concerns is regarding your park -- and I don't know if any -- I mean if they are willing to be part of the homeowners association and pay fair dues, so that you can make improvements to your park and, you know, the tenants would have keys -- who was living there, they would be members just the same as any homeowner that was there if they were paying the same amount of dues, would that still be a problem? Arnt: I think that would be a problem, because first off would we have one dues for the lot or would we have four for the lot, because there were four occupants -- you know, four units. Also what -- because they are renters how would we know for sure that we would be getting the money from the landlord? Because quite often the landlord is the last thing that they are going to do is they are going to cover what expenses they have, primarily the mortgage and the maintenance of the building and they are going to let something like that slide. We pay right now 700 -- or 840 dollars a year to use -- for our common area and for our maintenance and the only way, you know, that would be if we go 1,400 -- 28, 29 hundred dollars a year for the four-plex to use. I don't think they would want to pay that. Milam: Have you had that discussion with them? Meridian City Council January 28, 2014 Page 16 of 49 Arnt: No, we haven't. They offered a minimum amount -- they offered to pay 380 dollars a year, which is completely unheard of and Phil is going to make a comment on that here in a minute. Milam: Okay. Thank you. Cavener: Madam Mayor? De Weerd: Mr. Cavener. Cavener: Just one question for my clarification. Is your -- I didn't see it in the staff report. Is your neighborhood a senior community? Arnt: When we moved in there it was, quote, designated as a senior community. However, we do have probably about five homes in the -- in the unit that would qualify as under seniors. Cavener: Okay. Thank you. De Weerd: Thank you, Ron. Arnt: Thank you. De Weerd: Don Baumback. Good evening. If you will, please, state your name and address for the record. Baumback: Okay. My phone number is -- it's right on the corner from where this is being built. De Weerd: Okay. Baumback: And phone number is 855-2754. De Weerd: Thank you, Don. Baumback: I just wanted to mention to you folks that the -- the driveway that's going down three blocks off Pioneer Street -- and Pioneer Street goes up there, there is two -- two housing areas that are just waiting for people to buy lots from and there are four four-plex lots and not one of them are -- have -- are full. In fact, one of them -- it just started just recently and they got four-plex lots for sale and it's -- people can go down off three blocks and get all the property they need. It doesn't make any sense for them to want to -- to buy this property and it's -- because it's -- it's situated in such a way that right now during Sunday and Wednesday night that's when the church -- Calvary Baptist Church -- that's when they are in session and that -- and, then, that's pretty full. For example, it's a busy section of that area was about that lot where they are proposing a building and we got about 50 cars that are in there and plus there is -- down the street Meridian City Council January 28, 2014 Page 17 of 49 around the corner there is an office building and it had a two year option and why the property that is situated and tear it down, the church building and put it in there, that's the fundamental purpose of it and there no way right now we have a problem and the fact is these cars park in that driveway in this area are in front of it and we have to stop and wait for it to clear up so they can drive in. De Weerd: Mr. Baumback, if you can wrap up -- summarize your remarks. Baumback: Yeah. De Weerd: Your time is up. Baumback: Okay. That's basically it. De Weerd: Okay. Council, do you have any questions? Bird: I have none. Milam: I have none. De Weerd: Okay. Thank you, sir. Baumback: Thank you. De Weerd: Harold Raymond signed up against. Okay. Bruce Hiffa signed up against. Jenny Drike signed up against. Thank you. Joan Zaluska signed up against. Thank you. Phil Zaluska. Good evening. If you will, please, state your name and address for the record. Zaluska: Phil Zaluska. 1281 North Victor Way, Meridian, Idaho. De Weerd: Thank you. Zaluska: I am a resident of Tiburon Meadows, just so there is no misunderstanding. Basically -- I'm not going to dwell on things like traffic or anything like that. There really -- in my opinion there is no compelling reason to change the existing zoning to permit development of this particular project. Just because you can design a project to fit an existing piece of property which is zoned other than appropriate for -- not currently zoned for that particular use doesn't mean you should do it. You could apply that same logic to any particular existing zoned property in the city and if someone came along with a project that required a zoning change, they could meet all the criteria of the code, the compliance with the Comprehensive Plan and everything it still doesn't necessarily justify doing it, it seems like you're trying to force development on this parcel of land. One of the arguments made by the proponents earlier this evening -- he said that the property has been on the market for ten years. Well, it's been -- it's been undeveloped for ten years. It hasn't been on the market for ten years. The owner, basically, for the Meridian City Council January 28, 2014 Page 18 of 49 larger part of that period of time it was not for sale, it was in a rental -- there were three individual parcels. The one home, which is in the center parcel, was a rental unit and he was trying to sell it eventually when he put it on the market all three parcels as one -- basically wrap it all up into one thing and put it on the market. But that didn't work for a number of reasons. Everyone knows what the economy has been like over the past seven or eight years and the asking price for that particular parcel in no way was congruent with the economic realities of the time given, you know, possibilities for other properties available within the City of Meridian or adjacent communities, Nampa or Eagle or where ever else. That argument really doesn't make any sense. I mean it really doesn't. The fact that it has been undeveloped -- there have been many many properties within the City of Meridian have been undeveloped for longer periods of time than ten years and even when an offer -- a full price offer was made for that particular parcel, which was turned down by the owner -- now, if he was going to be -- owners of properties are going to be turning down full price offers I don't know what the proponents of -- what the terms of their purchase proposal is to this parcel, but whether it's full price or not doesn't make any difference, the fact is that a full price offer was turned down for residential, you know, for a use which -- not residential, but -- the guy that bought the house wanted to buy the whole thing full price. The owner refused to do it. I have no idea whether, you know, that has any bearing on anything or not. But you can't argue that -- because the fact it's vacant means it will never find a higher use. I think that the existing zoning is perfectly appropriate -- do I have to stop or do I -- De Weerd: If you can summarize -- well, you are -- who are you speaking on behalf of? If you will raise your hands. Thank you. Go ahead. Zaluska: Okay. There is a couple of other things which I think may be procedural issues which are concerning me. The proponents, essentially, changed the meeting date. Basically, they presumed that a continuance would be granted by, essentially, putting that on the notice meeting sign on the property approximately four days before Council approved the continuance. At best that's a little bit presumptuous and -- I don't know whether it's illegal or not, but it seems that they should have waited until Council actually formally approved a continuance. I understand that Council typically does approve these things, if there is a valid reason to do it, but, nonetheless, that's awfully presumptuous and I think it's -- it tends to reinforce my suspicions that there is -- that there is a real push to get this thing developed. I think that if the proponents really want to become a landlord there are many many other parts of the land in the immediate vicinity within the City of Meridian or any adjacent community which are already appropriately zoned. Why the push to rezone a little piece of property which is really inappropriate for residential, because the type of rental unit that it's going to be in going to attract young families, low to moderate income situations that typically there would be a lot of kids -- that is a lousy location to park four families with -- you know, with kids, because there is a huge amount of traffic in the immediate vicinity. Ten Mile Road is just crazy anymore since it was widened. There just doesn't seem to be any compelling reason and I think that if Council -- it sends a bad message I think to the community to just go ahead and start rezoning things just because a proposal comes up which complies with the overall greater theme of development for the City of Meridian, but I Meridian City Council January 28, 2014 Page 19 of 49 think the existing zoning, given economic upturn, creeping slow along as it is right now, I don't think it's unreasonable that that piece of property can't be appropriately developed with the existing zoning. To argue otherwise is complete conjecture. I'm done. De Weerd: Thank you. Council, any questions? Bird: I have none. Milam: I have none. De Weerd: Okay. Thank you, sir. Mike Conklin signed up for. Thank you. Chuck Storey signed up for. Okay. Peggy Veis -- Veis. Sorry. And Terry, her husband. Thank you. Both signed against. Jenny Montana signed up against. Thank you. And I think Jared Montana did as well. He colored in the whole box. That's how -- how he felt. Marty Cuperlingo is signed up for. If I messed up that I apologize. And Tyler Johnson signed up for. Okay. Anyone else who wishes to testify? Okay. I would ask the applicant if you would like to have closing remarks. Lakey: Madam Mayor, Members of the Council, again, Todd Lakey for the record. Mayor, Ihave -- I want to go over this letter from AI Marino. Do you have a hard copy of this or -- okay. De Weerd: Yes. Lakey: All right. Mayor and Council Members, Ithink -- I'll start with the letter from AI Marino. There was discussion as to I guess speculation on the -- on the opposition side as to why this property hasn't developed as office. AI Marino with TOK, one of the best commercial real estate firms in the valley, he did an analysis -- a detailed analysis and stated there were 220 properties total within a three mile radius -- these are office zoned properties and he says in my experience as a commercial officer broker the demand for new office development in the neighborhood project type in northwest Meridian is very low. There is a significant amount of undeveloped parcels currently zoned L-O, even in the areas where existing residential subdivisions have been established. There is a 27.4 month supply of existing vacant space -- that's existing vacant space and a vacancy rate of 16.31 percent which is 33 percent higher than the rest of the Treasure Valley. If you look at the map he shows the -- the areas that are vacant and the areas that are occupied as part of his analysis. He talked about that in his letter. So, Council Members, it isn't speculation as to why this property is not developed into office space, it's the opinion of expertise in that area. It hasn't developed because it's not a viable use on this small parcel in this area, surrounded by existing better parcels that are better suited for office. It's surrounded, as I showed you. There was concern over the height of the structure. It's surrounded by, essentially, two story structures on four sides, if you look at the other side of Ten Mile. Traffic was a concern that was expressed again -- it's going to be higher with an office development than it will be with this four-plex. There was concern over parking. We are meeting the city's parking standards and requirements for the property. As far as the common area goes, Council Meridian City Council January 28, 2014 Page 20 of 49 Member Milam you asked about that. If you look at -- I didn't bring any pictures of it, but the common area in the subdivision really isn't attractive or oriented towards kids. There is a small clubhouse and there is some grassy areas with trees on it, it's more for folks with dogs and not really attractive to kids. Our clients tried to talk with the homeowners association about contributing -- participating in some manner. Right now they are not allowed to participate in that common area and that's fine with us, but we talked about participating and they weren't willing to discuss or meet with us further on that. What we do know, Council Members, is that commercial zoning on this property is not viable based on the ten years experience and the -- and the expertise of those that are involved in looking at it. Multi-family is viable. The reason for moving forward with this project is because commercial development has not been viable, but most importantly the proposed use we have fits with the Comprehensive Plan. I think it's appropriate anytime to bring forward an application for a rezone of a parcel of property as it conforms with the Comprehensive Plan and the ordinances of the city. That's the goal of the city, that's the goal of the property owners, and it's appropriate anytime you want to bring that forward. If the applicant complies with the Comprehensive Plan and the development code they should be able to develop property in that manner. There was concern over poor families living in the area with kids. That's speculation as to who might actually live in this multi-family development. But, again, the multi-family development fits with the mixed use community designation on the Comprehensive Plan. That's what should drive this decision, not I don't like the fact that it fits within the Comprehensive Plan, but it fits with the Comprehensive Plan and the development code and that should be the basis of your decision. With that, Mayor and Council Members, I would ask, again, for your approval and stand for any questions. De Weerd: Thank you. Council, any questions? Bird: I have none. Milam: Madam Mayor? De Weerd: Mrs. Milam. Milam: I do have a question about parking. Is there adequate parking do you believe? Overflow parking is going to go out into the street and cause traffic problems? Lakey: Mayor and Council Member Milam, I think that's part of what the city takes into consideration in determining how many spaces you need based upon your use and your square footage and we conform with the city's requirements. So, my best opinion is, no, the city knows what it's doing in establishing parking requirements for particular structures and uses. Milam: Thank you. Cavener: Madam Mayor? Meridian City Council January 28, 2014 Page 21 of 49 De Weerd: Mr. Cavener. Cavener: Mr. Lakey -- and I recognize maybe you may have to confer with the applicant. One of the initial letters from the applicant stated that amajority -- or many of the homes that are in the neighborhood weren't owner occupied, they were, essentially, rentals and, of course, the ones that were received from the citizens repeated that. I was curious if you could tell me how you found that information to be factual that many of the homes aren't owner occupied or were you mistaken in the letter? Lakey: Mayor and Member Cavener, I don't think it's a majority of homes, I think it's some homes in the project are not owner occupied. They are rentals. I think the folks in the neighborhood explained that they were people that didn't live there now, they were intending to move back, so I don't think it's a majority, I think it's some -- a handful. Cavener: Madam Mayor, additional question. De Weerd: Yes. Cavener: Mr. Lakey, would the applicant be willing to, if -- if an agreement were to be made with the -- the residents of the neighborhood to join the homeowners association? Is there a willingness on the applicant's part to do that? Lakey: Mayor and Council Member Cavener, we have discussed it a little bit. Again, they tired to go down that road with the neighbors and they just weren't willing to discuss things further. I can consult with them a little bit more if you want me to. Cavener: Just curious. Thank you. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Just for clarification, we have nothing to do with homeowners associations in our findings and their deal -- we do not have anything telling the homeowners or the applicant what they can do, so to my knowledge the best thing to do is leave the homeowners to the homeowners. Lakey: That's appropriate. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I don't have a question for Mr. Lakey, but I do have a question for Sonya. L-O designation, what is the requirements on -- if I put an office in there what's my height requirements? Thirty-five feet? Meridian City Council January 28, 2014 Page 22 of 49 Lakey: Glad you didn't ask me that question, Council Member Bird. Watters: Madam Mayor, Council Member Bird, give me just a moment, please De Weerd: I guess as staff is looking that up, I would have a question in regards to most likely with the little play area that you're including, you anticipate that there might be children that are part of this establishment. I look at that area and if it's kind of senior, more 50 and older or empty nester housing in that subdivision down the street and now we are introducing children into this area, they are going to have to get across the street and there is a school across the street, there is a grocery store across the street. Kids love to go to grocery stores. So, how do you think they are going to cross that street? Lakey: Mayor, I guess the intersection is nearby of Cherry and Ten Mile. Essentially just on the other side of the church and the credit union that's right there, hopefully. De Weerd: So, Todd, how would you have crossed the street when you were a child? Are you going to walk down to Cherry Lane, go across at the lighted intersection, and, then, walk back down the street to get to the grocery store or are you going to walk clear down -- I know it's not in this -- this picture, past the street that you need to walk down to get to the elementary school to cross the street at a safe crossing and, then, have to walk back up to get to the street to go to -- I just wonder what the thought was on -- in that regard. Lakey: Sure. De Weerd: Because that is something we have to concern ourselves with. Lakey: Sure. Well, suppose, of course, a kid's going to go out there and look at it and think about crossing the street there. It's a pretty wide street. You asked me what I would think. I might have contemplated that. If you had my mother she was regularly telling me to make sure I crossed in the crosswalk and look both ways and do what I'm supposed to do. De Weerd: Then you had a good mom. Lakey: And I did have a good mom and I think that would have ultimately been my choice. Hopefully the younger ones that may not have as much judgment are there with their mothers, but that's my response, Madam Mayor. Watters: Madam Mayor, Councilman Bird, the answer to your question -- the maximum height limit in the L-O district is 35 feet. Bird: That's what I thought. So, if we don't rezone this and it stays L-O and I want to go build an office building out there, I can go 35 feet with no problem at all. Meridian City Council January 28, 2014 Page 23 of 49 Watters: Yes, sir, you may. Bird: Okay. Thank you. De Weerd: Okay. Any further questions from Council? Milam: I have none. Lakey: Thank you, Mayor. De Weerd: Thank you. Council, any further information needed from the staff of the applicant or any of the residents? Okay. If there isn't, I would entertain a motion to close this public hearing. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I move we close the public hearing on RZ 13-017. Cavener: Second. De Weerd: I have a motion and a second to close the public hearing on Item 8-A. All those in favor say aye. All ayes. MOTION CARRIED: FOUR AYES. TWO ABSENT. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Just a little discussion. While I -- while I really have some concerns for putting a four-plex on there, I think that traffic wise and the size of the units, I think they said it was 4,000 square foot, so four units which is about a thousand apiece, isn't going to invite large families I don't believe and also we got subdivisions there that have a lot of kids -- anybody that wants to go out there in the mornings and watch the kids cross the street down there at the appropriate location are welcome to, it's taken care of. I think that -- I'm not sure an office building -- that is a good location for an office building, because of the traffic. If you want people to come to your office and stuff it's kind of hard to get in and out of, but, anyway, I -- I don't have a problem with rezoning this application. Cavener: Madam Mayor? De Weerd: Mr. Cavener. Meridian City Council January 28, 2014 Page 24 of 49 Cavener: I'd like to maybe echo some of Councilman Bird's points and stated from a newly elected Council person, this is -- this is our first real big pickle, I -- I know like -- I don't want to speak for all the Council, but I have poured over the testimony, the letters that we have received from residents over the past couple weeks and you go back and forth. Does a business increase traffic? Does a business invite more people into your neighborhood or is it better to have people that are stakeholders in your neighborhood, Those that you -- while you may not build relationships with, you see them every day and know who they are. I appreciate Mr. Lakey's information regard to the visits in and out, I think that's something that was very beneficial to me. I think in light of that information I would be in favor for approving this rezone. Milam: Madam Mayor? De Weerd: Mrs. Milam. Milam: And I really appreciate both -- what both of the councilmen have said and I really sympathize with the neighbors, I really do. However, this does fit in the Comprehensive Plan. The only way to put an office on that that would make sense would be to build it really high because of the size of the lot, so I don't think that you would necessarily be better off and, yeah, we all would like an empty lot next door forever, it's kind of nice, but something does need to go in there. I sympathize with the people that -- wouldn't necessarily want to live in that situation, in one of those four- plexes, but there are people that do and it looks like a nice building, so I would be in favor as well. Bird: Madam Mayor? De Weerd: Well, I'm glad to know how all of you are going to vote prior to the motion. Do I have a motion? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I would move that we approve RZ 13-017 and include all staff, applicant, and public testimony. Milam: Second. De Weerd: I have a motion and a second to approve Item 8-A. Madam Clerk, will you call roll. Roll Call: Bird, yea; Rountree, absent; Zaremba, absent; Borton, yea; Milam, yea; Cavener, yea. Meridian City Council January 28, 2014 Page 25 of 49 De Weerd: All ayes. MOTION CARRIED: FOUR AYES. TWO ABSENT. B. Request for Withdrawal of Application by Schultz Development Baraya Subdivision No. 1 FP 07-030 Final Plat approval for 50 single family building lots and 14 common lots on 10.10 acres in an R-4 zone Located East of Black Cat Road on Franklin Road De Weerd: Madam Clerk, can you go get Councilman Borton. Okay. Item 8-B is a request for a withdrawal of application. Council, I would need a motion to approve this request. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I move that we approve the request for withdrawal on the application by Schultz Development Subdivision No. FP 07-030. Milam: Second. De Weerd: I have a motion and a second to approve the request to withdraw of application on FP 07-030. All those in favor say aye. All ayes. MOTION CARRIED: FOUR AYES. TWO ABSENT. C. Request for Withdrawal of Application by Schultz Development Baraya Subdivision No. 2 FP 07-031 Final Plat approval for 50 single family building lots and 2 common lots on 10.55 acres in an R-4 zone Located East of Black Cat Road on Franklin Road De Weerd: Item 8-C is the same, a request for a withdrawal. Milam: Madam Mayor? De Weerd: Mrs. Milam. Milam: I move that we approve the request for withdrawal of application by Schultz Development Baraya Subdivision No. 2, FP 07-031. Bird: Second. Meridian City Council January 28, 2014 Page 26 of 49 De Weerd: I have a motion and a second to approve the request for a withdrawal on Item 8-C. All those in favor say aye. All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. D. Continued from January 21, 2014: FP 13-047 Baraya Subdivision No. 3 by CBH Homes Located at South Side of W. Franklin Road, Midway Between Black Cat and Ten Mile Roads Request: Final Plat Consisting of Forty-Seven (47) Single- Family Residential Building Lots and Three (3) Common Lots on 11.05 Acres of Land in the R-8 and R-15 Zoning Districts and Request to Renumber this to Subdivision No. 1 Items 8B and 8C were withdrawn and project name was changed to Baraya Subdivision No. 1 De Weerd: Item 8-D is continued from January 21st on FP 13-047. I will ask for staff comments. Watters: Thank you, Madam Mayor, Members of the Council. The next application before you is a request for a final plat for Baraya Subdivision No. 1. This site consists of 11.05 acres of land. It's currently zoned R-8 and R-15 and is located on the south side of West Franklin Road between South Black Cat and South Ten Mile Roads. The request for final plat consists of 47 single family residential building lots, three common lots on 11.05 acres of land in the R-8 and R-15 districts for the first phase of Baraya Subdivision. There is one less buildable lot than shown on the approved preliminary plat, but the amount of common area is the same. Therefore, staff finds the proposed plat in substantial compliance with the approved preliminary plat as required by the UDC. Staff would just like to note that all previous conditions of time extensions on the preliminary plat are tied to the preliminary plat, which is still valid, not those final plats that were withdrawn. And just another note. The development agreement for this property does require a minimum of 334 single family dwellings to be constructed on the R-8 and R-15 portion of the site. The application should take care not to reduce the overall number of lots in those zones below that number. Matt Schultz did submit written testimony in agreement with the staff report and staff is recommending approval of the subject final plat request. Staff will stand for any questions Council may have. De Weerd: Council, any questions for staff? Bird: Not at this time, Mayor. De Weerd: Does the application have any comments? Okay. Bird: Madam Mayor? De Weerd: Mr. Bird. Meridian City Council January 28, 2014 Page 27 of 49 Bird: Sonya, put up the overall area there would you, please. The whole -- there we go. We are going to -- we got one road going out onto Franklin; right? Watters: Two, Councilman Bird, Madam Mayor. Bird: Oh. Okay. I'm sorry. You're right. What are those apart, a quarter mile? Half mile? Watters: Quarter. Yeah. Bird: Then are we dumping on Ten Mile, too, Sonya? Watters: Eventually, yes. Bird: Have we got future plans to take this subdivision over to Ten Mile? Watters: Actually, I believe that this portion right here is -- I believe that was designated for school property. I'm not sure if that is still the plan or not. Oh. Excuse me. You're asking about Ten Mile. Yeah. It doesn't go out to Ten Mile. De Weerd: It will eventually, though. There -- Bird: It will eventually dump into Ten Mile over here at the halfway point, won't it? Watters: Yes. When the property -- adjacent property to the east develops, yes. Bird: Because with the existing -- with the existing Franklin Road -- depending on how fast these --these are built, we are dumping a lot of traffic onto that road and, of course, we -- or ACHD thinks we need barriers out there. I wish there was -- I wish there was another way to dump -- right now dumping over onto Ten Mile. Watters: Eventually, too, Madam Mayor, Councilman Bird, when the property -- the development to the south here -- I don't know if you recall when that came in -- was annexed -- this doesn't show zoning on this map, I apologize but there is a conceptual development plan approved for this site also that will distribute traffic down to the south and east. Bird: Is that an R-8 -- R-8 development, too? Watters: It's a mix of zones and uses. Bird: Okay. Watters: Primarily commercial and mixed employment. Bird: Okay. Meridian City Council January 28, 2014 Page 28 of 49 De Weerd: I think Matt can also make some comment on that, too. If you will, please, state your name and address for the record. Schultz: Yeah. Thank you, Mayor and Council. Matt Schultz, 8421 South Ten Mile in Meridian. Have been working on this project about eight years now. I was thinking about it tonight. We are finally getting going. Anew phase one. Sorry about the confusion, but we want to start over here on this one side and if you see over here on the east side, there is a collector road that heads to the south. It does blend in with the overall master plans that has been done in the Ten Mile interchange area and there is another connection out to Ten Mile. So, regionally this will interconnect with everybody out to Black Cat, as well as out to Ten Mile and Franklin and ACHD does have plans to widen Franklin in the next couple years. They have informed me that we need to shift more property onto our site, which I wasn't too happy about, but we will deal with that, you know, since the preliminary plat was approved, but they are talking about widening it out in the next couple of years, so I think overall it's going to be very well prepared for regional traffic when the development is really there. We will get going with our first lots hopefully this year, the first 50, and those won't build out for a couple years. Bird: Okay. Thanks, Matt Schultz: Thank you. De Weerd: Any further questions from Council? Bird: I have none, Mayor. De Weerd: Okay. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I move we close -- De Weerd: There is nothing to close. Bird: Oh, wait a minute. That's right. We don't have anything. De Weerd: I will just take a motion. Bird: Sorry. I will make the motion. I move that we approve FP 13-047 and include all applicant and staff comments. Milam: Second. Meridian City Council January 28, 2014 Page 29 of 49 De Weerd: I have a motion and a second and just to note that when Items 8-B and C were withdrawn the applicant is requesting that the project name be changed to Baraya Subdivision No. 1. Okay. Any discussion on the motion? Madam Clerk, will you call roll. Roll Call: Bird, yea; Rountree, absent; Zaremba, absent; Borton, yea; Milam, yea; Cavener, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. Item 9: Department Reports A. Parks & Recreation Department Report: 2013 Kleiner Park Concession Update and Proposed Concessions Operations Lease Amendment De Weerd: Item 9-A is under our Parks and Recreation Department and I will turn this to Colin. Moss: Thank you, Madam Mayor, Members of the Council. I am here tonight to discuss our concession stands out at Kleiner Park. What we are ultimately going to -- what we are going to be requesting is a waiver of some of the concession stand -- some of their fees, but I will do my best to give you some back story as quickly as possible to show why we think that that's in the best -- the best for the city. So, it really all comes down to that the Kleiner Park concession stand just hasn't done nearly as well as what we thought it's done -- or we thought it was going to do. Big reason for that is just the amounts of traffic at the park on a regular basis. This last year Kleiner Park concession stand grossed 10,803 dollars over the course of the entire summer. That might sound like a lot of money, but once you figure in the staff time -- they were open for 95 days. One employee for eight hours a day is just 6,000 dollars right there in their staffing costs, which doesn't include the labor burden, you know, taxes and insurance and things like that. Add in another 25 percent or so, which goes to their -- goes to their purchasing the product in the first place -- and they are getting pretty close to, you know, not even breaking even and, of course, there is lots of other things, like cups and plates and -- you know, not to mention the investment they made originally in the -- in the concession stand last year, which was about 8,000 dollars in commercial grade, you know, refrigerators and freezers and just building out the entire -- the entire area. So, right now their concessions contract -- what they have bid when we put it out to bid in 2012 -- the bid was that they would pay us 30 percent of gross sales in that -- in that concession stand. At the time we thought it was a little high, but that was -- that was the bid. There was only two bids total for that concession stand. The other bid was for two percent of gross sales and so there is a bit of a difference. We have gone with it over the last two years. The concessionaire, though, has come and requested -- after this last year had requested a -- to negotiate that contract. We feel comfortable negotiating, Meridian City Council January 28, 2014 Page 30 of 49 because there was -- it's not like, you know, somebody was right at their heels in the bid process and negotiating would -- you know, make it so that, you know, the second place bidder might have a case for being upset. What it comes down to is that for the summer of 2013 the current -- the current total that the concessionaire owes us is $3,240.90. Really, any amount that they owe us at this point represents a deficit for their -- for their summer. After going back and forth with the concessionaire, what we agreed -- well, what we negotiated was a fair settlement -- was they -- what they wanted was, you know, assurance that each day they would at least get to the point of breaking even before we started charging them rent. A hundred dollars is about that break even point after paying for their eight hours of staff time and their products and so what we -- what we talked about was to move forward with a -- you know, that they would pay us 20 percent of gross sales after the first one hundred dollars each day. That seemed like a fair negotiation on our part and what the -- what the concessionaire is hoping for is to use that -- use that format not only moving forward to 2014, which would be the last year of their lease, but to also I guess back date it for -- possibly a better term, back date that for 2013 and charge them the amount that would have been charged under that, you know, payment structure, as opposed to the 30 percent. What it amounts to is of those -- of the 95 days they were open in 2013, they made it over a hundred dollars in gross sales only 56 times. So, a little over half. Not very good. If you take out -- you know, after the 10,000 dollars was made, 2,602 dollars represents the amount over and above at one hundred dollars per day. Twenty percent of that is $520.40. So, also to give a little bit of relativity to the whole thing, Settlers Park in 2013, their gross sales were 42,535 dollars. So, over four times more than what Kleiner is. What we are hoping and what the concessionaire is hoping, obviously, with the opening of the Village at Meridian, we are hoping that the traffic will increase in that area a little bit. So, what we are hoping -- what we are -- what I'm here tonight to ask is that I think it is in the best -- in our best interest to -- essentially what it comes down to is that we are going to -- we would waive $2,720.50 of what they currently owe us, so that they -- for their 2013 season they would owe us the $520.40. So, I have got lots more to talk about there, but I guess I will open it for questions now, so we can maybe start a dialogue about what's -- what's happening. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: We entered into a three year contract with them or -- Moss: Correct. Bird: And this was bid and they come in with a 30 percent gross? Moss: That's correct. Bird: Are they experienced? Meridian City Council January 28, 2014 Page 31 of 49 Moss: Well, as the -- Madam Mayor, Councilman Bird, we don't believe it's a matter of mismanagement of the concession stand. The tenant owns Ben and Jerry's in Boise and runs that very successfully. I think the -- I would completely agree with you that the --the amount that was bid was very high. Bird: Well, really, having a lot of experience in the food industry with your cost -- all your costs, material, operation, overhead and everything should run about 68 percent and that covers everything. Well, you add 30 percent onto that don't leave you much for profit. Do they -- is all the sales and everything ran through a computer? Moss: Yes. We get copies of sales totals of, you know, spreadsheets of their sales totals for the summer. Bird: I -- I think that while I don't want to see anybody lose any money or anything, they come into this as big boys; right? Experienced concessionaires. Am I not right? Moss: Absolutely. You know, in talking with the concessionaire I think that -- Bird: But I also don't want to see them get hurt. So, I am in favor of working some deal out for this year, but I want receipts really good and, then, next year open it up for bids again. Moss: Absolutely. Their lease will be over after 2014. Bird: Yeah. Their might be -- there might be reasons that Settlers is doing 40 and they are doing ten. Moss: Well, Settlers Park has got -- Bird: I know it's got more kids, but still that's quite a difference. Moss: It is quite a difference and I think to your point about, you know, their other business and they are experienced and I think they just were trying to project their -- you know, some of their cost estimates and their -- you know, their profit margins on -- from Ben and Jerry's and project it to here where the -- the sales totals are just much much lower and so the costs of staff -- some of those hard costs of like staffing that aren't going to change whether you -- you know, whether you have a ton of sales or a little bit, you know, you still have to have somebody there. Some of those costs I don't think that they, you know, thought about in -- with it being such asmaller -- Bird: There is a lot of difference between a concessionaire and a restaurant. Moss: And our -- our concern -- and one of the reasons, you know, that we -- that we are also coming to request this is, you know, with it being the third year of the -- of the contract, we haven't done very well in sales. They have already put forth that effort -- or that investment in building it out, so they have a vested interest in trying to turn it around Meridian City Council January 28, 2014 Page 32 of 49 and make that investment back this next year. If we were to, you know, say, no, we are going to hold you to the contract, pay your 3,000 dollars, you know, they have already said that if that was the case they would probably just kind of cut their losses and walk away from the concession stand, which means -- which we could do, we would just have to rebid it for starting in 2014 and based on what we have as history right now, it would be difficult to find somebody to make that investment again based on the two year history we have for sales. Milam: Madam Mayor? De Weerd: Mrs. Milam. Milam: So, Colin, what kind of agreement do we have with Setters? Moss: Settlers Park was just rebid this last year and the winning bidder bid 12 percent of gross sales. Milam: I'd sure like to be in a business where if I don't do well my -- everybody will just give me something for free. If you want to manage me maybe we can open a business together. So, yeah, I mean if they are experienced business people and they made a bid, I have a really hard time looking at that going, oh, you didn't do well, I'm sorry, we will just eat that. I don't know. That's -- Moss: Madam Mayor, Councilman -- Councilman Milam Milam: That's okay. Moss: How do I -- Council -- Councilwoman Milam. Milam: However. Moss: Okay. To be honest, I don't think we are -- it's not -- De Weerd: We are not eating anything. Moss: -- I don't think we are eating anything. We did -- we did do a cost analysis of what it cost us to keep the concession stand open, you know, water and heat -- well, not heat during the summertime, but, you know, lights and things and it -- we estimated that over the course of the summer it costs us about 623 dollars to -- just for utilities for that building. So, we would be eating approximately a hundred and -- what is it, 120 dollars or so -- or even less than -- it would be even less than that. Approximately a hundred dollars is what we would be eating for this -- for 2013 and it gets to be a bit of a philosophical discussion, because having a concession stand at the park, even if it's not doing well, I guess part of what I feel is that it's an additional amenity to the park. I mean if you go to the park and you go to the playground, it's nice to be able to buy a snow cone and things like that. I completely agree that, you know, they are -- they are Meridian City Council January 28, 2014 Page 33 of 49 experienced business people and, you know, we are kind of letting them off the hook, but at the same time I feel like it's in the city's best interest to have them there, to have a concession stand that's there and so I guess that's why we were willing to talk with them about -- about doing this, because I think if a family comes out to the park it is an added amenity to have that concession stand open. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Colin, we are paying all the utilities? Moss: Correct. Bird: You know, what they are selling is probably the highest end profit there is. You know, sodas, the icee things, all that stuff. They are probably down in the 40 to 45 percent cost of goods including labor on their -- on their dollar. Milam: And marketing. Bird: Yeah. De Weerd: I don't know. It is not -- I don't think Colin is asking anyone to correct anyone's business model or anything else. I'm sure we could share the minutes and share our wisdom, but the item in front of us really right now is -- is looking is this Council willing to look at reducing that percentage, which is still well above the other bid that we have. Or not. And -- Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Like I said earlier, Idon't -- I don't want to see anybody get stuck, but in the same token I don't want to see our taxpayers get stuck either and, yeah, forgiving a hundred dollars, hey, that's a hundred dollars that I pay taxes to replace. So, I -- personally, I would throw it out and if they want to walk away and rebid it. Get somebody else. First place, we should have -- we should have questioned -- when you get a two percent and a 30 percent bid, something's wrong. Just like construction. You have a hundred dollar job, you get a bid for 50 and one for 75, you're not going to question that 50? De Weerd: Well, we didn't. Bird: I know. But by the same token our taxpayers shouldn't have to bear the burden of a business. Milam: Madam Mayor? Meridian City Council January 28, 2014 Page 34 of 49 De Weerd: Mrs. Milam. Milam: I don't have a problem working with them and reducing the fees, especially going forward. I think they are going from 30 percent gross to 20 percent net kind of -- that's ahuge difference. But, you know, I don't know that the numbers that you're proposing are what I would necessarily propose and I don't know what -- if we approve it as you have it or is it up for discussion? I don't know how this works. De Weerd: I think that this Council has -- has every opportunity or every right to say this is what we are more comfortable with. This is what staff's bringing as a recommendation as he's talked with vendor and is kind of do what you want to do, so -- Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Colin, go negotiate something and bring it back to us with the guy. De Weerd: We won't tell you what, but go and do it. Bird: No. Just -- let's get him through this year. De Weerd: Are we agreeing with the recommendations? Cavener: Madam Mayor? De Weerd: Mr. Borton -- who was -- it's like where did that come from? Mr. Cavener. Cavener: Colin, I recognize the predicament that the Parks Department is in and that the vendor is in. I also think this is an amenity to the community, but it's not an amenity that we -- we should not be subsidizing their inability to run their business and if -- if we need to go back and negotiate something so that they can be successful, great, but not at a loss to the city. So, paying money because they weren't successful at running their business out of taxpayer dollars, like Mr. Bird said, is unacceptable in my opinion. Working out a plan where the city could be liable again for a third year is unacceptable in my opinion. So, I agree going back to negotiate, but not at a -- at an amount that causes any loss to the city. Moss: Madam Mayor, Members of the Council, I agree and so, you know, I would take any recommendations -- I mean as from the Council whether you would prefer, you know, a straight percentage of sales such as -- you know, such as we do at Settlers Park or, you know, if the model of, you know, a certain percentage after a hundred dollars, whatever it is, per day is -- is something that would be agreeable, that was a model that -- that the concessionaire was -- was pushing and was very interested in, just for the fact that they can at least break even each day before they -- before they Meridian City Council January 28, 2014 Page 35 of 49 start, you know, paying rent, I suppose. So, I would be open to -- to any ideas and I can certainly go back and renegotiate with them and find out what the best, you know, outcome we can get. Like I said, our -- for us to break even was 623 dollars for the -- for the summer and if it's -- you know, if the Council is interested simply in breaking even to insure that the taxpayers aren't bearing the burden of paying for their business, maybe we could offer that they -- that that's the amount that they pay for the summer. So, this is for 2013. We still -- we still need to go and negotiate for what they are going to pay for 2014, because, you know, our current -- what we -- what we currently -- well, what the negotiated -- what we had negotiated with the -- with the vendor, you know, this -- for this last year it wouldn't have -- it wouldn't have broken even and so we obviously -- it sounds like we want to go back and renegotiate for 2014. Borton: Madam Mayor? De Weerd: Mr. Borton. Borton: I would be comfortable, just because of the chase -- have them pay 700 dollars for 2013, 700 for 2014, as far as a rent figure and it's less than what the contract was, it covers the cost to the city, we have got to somewhat incentivize the first kind of pioneer operator of this thing. Everyone's learning. The way it was structured before for whatever reason it wasn't done right. A 30 percent -- that was doomed from the start. So, cover your costs for the city. Have them be as busy as possible, have the prices as low as possible, create as much demand as possible and, then, when we rebid it we will have the best figures we can have to understand truly how busy this concession park can be. I mean the city doesn't need to go make a bunch of money off of this and compete with -- anymore overtly than it already does with private businesses 200 yards away. Cover our costs. Learn from how we set it up. Fair to them, fair to us, and we do it better next time. De Weerd: Colin, before we had the vendor out in Settlers didn't we just have nonprofits go out there? I mean that concession space was -- was kind of -- Moss: Madam Mayor, Members of the Council, the first time we bid out the Settlers park concession stand was in 2009 and that was -- that was the first time that we bid to a third-party vendor. Before that -- the summer before that I operated it internally and -- De Weerd: And that cost us a lot, by the way. Moss: That cost us -- we made money on the concession stand, but it cost us a lot in staff time, no doubt about that. So, we were very thankful to be bidding it out. And, then, the summer before that we opened it for the first time during movie night in 2007 and we only had it open during movie nights. So, before then -- before 2008 it wasn't open on a daily basis. Bird: Madam Mayor? Meridian City Council January 28, 2014 Page 36 of 49 De Weerd: Mr. Bird. Bird: We got -- we got to realize that in our costs is also maintenance on that building. So, 700 don't really cover our costs and I think we are in a pickle that we need to get out of. I think we got to stay at least 12 percent or better to be fair to the Settler people -- I don't know. Milam: Madam Mayor? De Weerd: Mrs. Milam. Milam: My recommendation, based on -- well, if we were just a landlord and we were just renting out space, they would have a set amount every month or every year and based on what their sales were this year and the 12 percent, that would be like 1,200 dollars. So, my recommendation would be to collect 1,200 dollars for 2013 and 1,200 dollars for 2014 and, then, renegotiate if we wanted to do it based on a percentage. Doing it on top of a daily -- to me that -- the bookkeeping -- that's just a bookkeeping nightmare. So, there were our expenses for this day and minus this, this percentage -- that's not going -- it's not going to happen very cleanly I -- I doubt. Moss: Madam Mayor, Members of the Council -- and Ithink I -- I mentioned it before and, you know, I will definitely go back and negotiate with the -- with the vendor. Our concern is that we could just potentially have an empty concession stand and so that -- we have to weigh that risk and if that's something that the Council is willing to accept as a possible outcome of -- of asking -- I mean it's not asking too much, because they -- they are the one the bid -- bid in the first place. But if the concessionaire -- I'm just throwing it out there as a possible outcome -- the current concessionaire decides, no, sorry, that's too much, we will just go ahead and pay what we owe you and walk away, there is a very real potential that we won't get anybody to -- you know, to come in after that and we will be stuck with a building that has no concessionaire and so -- go ahead. Bird: I'll bet you on that. Milam: Madam Mayor? If they were to pay us what they owe us it would be more than what I just recommended. Moss: It would be 3,240 dollars Milam: And my recommendation was 2,400 for the two years. Moss: For both years together? Milam: That was my personal recommendation. Moss: Okay. Meridian City Council January 28, 2014 Page 37 of 49 Cavener: Madam Mayor? De Weerd: Mr. Cavener. Cavener: Colin, I think if that were to happen I think that come in there and rent the place at that point for 700 dollars My suggestion to you is when you go back is eliminate this - days that you make money and days that you don't -- Moss: Okay. we could find someone to 1,200 a month, whatever. - you're going to pay us on Cavener: -- make it easy for them to be successful, make it easy for us to not have to deal with additional staff time in verifying flat rates and be done with it. Moss: Okay. Cavener: Would be my recommendation. Moss: So, Madam Mayor, Members of the Council, what -- in the future -- going forward into 2014, that is something that I can handle with -- with Purchase -- with the Purchasing Department. We can -- we can modify their -- their contract without -- without aCouncil action I believe. For 2013 specifically, though, eventually -- and we can do it now or we can do it after we negotiate -- for us to waive any portion of their -- of what they currently owe us by contract, we will need Council action to move forward on waiving that --the 2013 fees. De Weerd: So, Colin, if you can meet with them between now and next week, you could bring an update back and a recommendation and see if this Council will go with it. Moss: Okay. Thank you. De Weerd: Something that -- using some of the discussion of tonight and find out what you can live with, knowing what Council is looking at and what they can -- because I do agree with Councilman Borton, this -- this is still a new park and up until this year there hasn't been too much out there and so they were pioneering and getting it up and started and that's -- that's not always the easiest thing to do. So, we hope that this year their -- especially with the synergy and energy created by the Village we hope that they can make back some of their losses. But see what you bring back with -- to the Council. Councilman Borton, did you have additional comments? Borton: Madam Mayor, just if it helps from -- from direction perspective, I think Councilwoman Milam's suggestion makes sense to me with regards to calculating what the -- the newly requested rent waiver would be for 2013 and what the requested modification would be for the final year for 2014's operations. Meridian City Council January 28, 2014 Page 38 of 49 De Weerd: I think so, too. Moss: Okay. De Weerd: But I don't vote, so -- and you have two empty seats here that will be there next week, so you can start all over. Moss: Thank you. Bird: Thank you. De Weerd: Anytime, Colin. B. Legal Department: Meridian Heights Water and Sewer District Fee for Sewer service De Weerd: Okay. Item No. 9-B. Mr. Barry. I thought you and Alicia just enjoyed this -- this conversation so much you just couldn't tear yourself away from it. Barry: Yeah. I wish we had Council on Friday nights. That would be really fun. All right. Madam Mayor, Members of the Council, I'm here before you to get some direction as it relates to the development of the water -- or, excuse me, the sewer rate for the Meridian Heights Water and Sewer District. To bring many of you up to speed, we are in a -- we have signed an agreement with the Meridian Heights Water and Sewer District that obligates the city and the district and a third party to a number of different activities and milestones that -- that ultimately result in the city taking over the district's facilities, services, and customers and during this particular agreement it was contemplated that there would be a transitionary period whereby to enable certain actions to occur, there would be periods where we would have sort of a dual operation of provision of services for the district and one of those -- well, those services, the provision of water and sewer services, was expected to have this dual position for about a year's time and we are at the start of that year's time and so I wanted to talk with you a little bit about sort of what this means and how it impacts, essentially, what we plan to do with regard to the provision of sewer services. I'm going to leave water services off, because we are not ready to connect the water services just yet. There will be a connection, actually, in the next couple of weeks, but we won't actually turn valves and connect up the systems yet, we are going to keep those values off until we can get water meters in and, then, when we get the water meters in, then, we will know exactly what we can charge off of those water meters. Because we don't have water meters we have to rely on, essentially, a flat fee for the -- for the sewer service, because typically we use water meters to give us an indication as to what the sewer services are being used over the wintertime average. So, we don't have water meters in this -- in the system right now, but yet we are ready to accept sewer essentially within just a couple of weeks or so and we hope by March 15th for sure. So, in order to accept that sewer we wanted to make sure that we were appropriately billing the customers of the district, so to do that we had to come up with a rate and, essentially, that's what I wanted to get Meridian City Council January 28, 2014 Page 39 of 49 your direction on this evening is share with you our recommendation for the rate and our methodology and how we achieved this particular rate recommendation and, then, get your ultimate decision as it relates to what the rate would ultimately be for the district. So, just to familiarize yourself with the surrounding area, the Meridian Heights Water and Sewer District comprises of about 287 homes or connections, 284 of those receive sewer services. There is two subdivisions. The subdivision on the left there is the Kentucky Ridge Subdivision, plus or minus 65 homes. The subdivision on the right, a little bit more dense, is the Meridian Heights Subdivision, together known as Meridian Heights and Kentucky Ridge and, therefore, the Meridian Heights Water and Sewer District. This transitionary period that I spoke of at the beginning was contemplated in our agreement to occur somewhere in early 2014 and take about a year to move through. We are ahead of schedule, actually, at this point in time with regard to construction of water and sewer infrastructure and we hope, as I said earlier, to be making those connections here over the next 30 days or so. This transitionary period, as I said, would last probably about a year, maybe 18 months or so, whereby the district will be owning and operating water and sewer infrastructure and services, but the city will be providing those service up to a single point connection for the subdivisions and so that creates a little bit of a unique situation for us, which is what we are going to navigate through this evening. Just a little bit. I already mentioned 284 sewer connections is what the district has and according to district engineering numbers, the average sewer volume per connection per month are around 4,100 gallons, a little bit lower than our average as a city. So, that puts it sort of in context. Just to get you familiar, for those of you who are not, since you're new to the Council, with our wastewater rates, we have two rates that come together to create the actual fee for services for wastewater. That is a base rate, which is $5.43, it's on a per connection basis, a per account basis. It's a flat fee. Doesn't change with volume. And, then, there is a volumetric charge, which is $8.48 and that does change with the amount of usage that you receive or that we provide for you based on 1,000 gallon unit. So, for every 1,000 gallons you would be paying the city $8.48 and in addition to the $5.43 for your one time per month base fee for the account. So, I wanted to share with you the calculations that we have gone through. The first calculations are pretty straight forward. Essentially you take the 284 connections -- sewer connections -- again, we are just talking about sewer. You multiply that by the 4,096 gallons per month per connection, which is the average across the district and you get to 1,163,264 gallons per month for the entire district. I will pause there just to let you know that the district currently charges a flat fee for their sewer services. They don't charge a volumetric fee. To continue. Our volumetric rate, when you apply it to the 1.1 million at $5.43 per 1,000 gallons, equates to about $6,316.52 as a billable volumetric charge to the entire district. If you add in the $8.48 for the account, because it is contemplated here that the district will be, essentially, a single account and the district is going to be, then, sub billing all of its customers in the district, so -- and that was contemplated when we did the -- a transitionary period, that, essentially, we would provide the service to their front door and, then, as a district they continue to operate the rest of their infrastructure, the billing, the collection, enforcement, all of that kind of stuff. So, that's why we only are recommending a single $8.48 charge per the account, because it really is only one Meridian City Council January 28, 2014 Page 40 of 49 account. We are not servicing the 283 other accounts -- other accounts, excuse me, because those are being serviced by the district. De Weerd: Hey, Tom? Barry: Yes, ma'am. De Weerd: What did we use when we went to them with kind of a cost breakdown, as we did cost estimates to show that we would save them certain amounts? What rate did we use then? Barry: It's an excellent question. And it depends upon where you are in the process. The rate breakdown to them in the analysis, compared -- the one I think you're referring to, compared to their current state to the end state after we got through all of this process -- and their current rate is 41 dollars per month as a flat fee for sewer. Our typical -- and that's based on about 4,100 gallons per month. Our typical average as a city is around 36 dollars a month. That includes the base fee and 5,000 gallons of usage for sewer and that's just the sewer side only. So, comparing their 41 dollars to our 36 dollars as it relates, there was a reduction there. And, then, similarly on the water side there is a reduction as well. So, it is still a reduction and, you know, when you compare their current state to their future state provided we have no rate adjustments that are applied between now and that period of time. So, did I answer your question? De Weerd: Yeah. I think so. I guess what I do want to make sure is whatever we have been communicating with them that this isn't a change. Because that is what they voted on. This is -- you and Bill and the entire team went through a lot of efforts to communicate accurately what we would be doing. Barry: Thank you, Madam Mayor. And, in fact, I'm not quite done yet, because this isn't the final number, so I think what you might be referring to is coming next in the presentation. The interim period -- we did negotiate that we would petition the City Council for an alternative rate and that's the reason I'm here in front of you this evening. If we were to simply apply the math, this is the rate that they would ultimately be charged if they were a single user. The volumes that we have discussed here would be about 6,325 per month. However, because the district is owning and operating a large portion -- well, essentially, all of their infrastructure and they are still going to be responsible for the cleaning, the maintenance, the cameraing, the replacement, the repair of the infrastructure during the time that we have this transition area created, up until the point they dissolve and their assets come to the city, it seems reasonable that a reduced rate could be considered, because those expenses in our rate should be deducted, since they are going to be providing that service. So, what we did is we, essentially, said what is, therefore, the proportionate share of the district sewer system in comparison to the city's proportionate share to get to that percentage and if you look at the sewer district, essentially, for them is by the orange -- brown box there -- has about -- and I will give you the statistics -- about 13,500 lineal feet of sewer line. The Meridian City Council January 28, 2014 Page 41 of 49 city's system that it's connected up to, which takes it all the way back from their front door to the wastewater treatment plant, is on the order of about 42,000 lineal feet, which means that the total sewer system length, if you look at it as a system, is about 55,500 lineal feet. Well, since the City of Meridian is not going to be taking care of and is not responsible for 13,500 lineal feet of this system, we felt like the rate that we charge could be reduced, because the rate really -- really is put in place to cover the entire system. Well, we are not going to be responsibility for owning, operating, maintaining, repairing, replacing the entire system, we are only going to be responsible for our portion of that system. So, when you do the math, essentially, you will see that -- and, here again, these are just the lineal footage lengths of the sewer system of the Meridian Heights Water and Sewer District at 13,500, the City of Meridian system at 42,000. The total at 55,500, as I just mentioned, if you just do the percentages and say, well, what percentage of the total is Meridian Heights Water and Sewer District part of the system and what percentage of the total is the City of Meridian, you get to the percentages of details here, 24 percent of the system is going to be owned and operated by the Meridian Heights Water and Sewer District, 76 percent is owned and operated by the City of Meridian, therefore, is doesn't seem reasonable to charge a full rate to the Meridian Heights Water and Sewer District, because they are already being charged for that service, which their district is going to provide in the area of the district. So, thereafter, the 6,325 dollars, we are recommending a reduction of that rate of 24 percent. Essentially, deduct the 24 percent, because we won't have those expenses, why make -- why charge them for that, which is a reduction of 1,518 dollars per month, which would bring their monthly rate as an entire district during the transitionary period only to 4,807 dollars and that, therefore, is the recommendation that the Department of Public Works is making to the City Council and that's all I have for you this evening and I will stand for any questions. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Tom, go back to that last deal. Okay. The 76 percent of our existing ratepayers is paying this same amount or less? Barry: Mr. Bird. Let me clarify. What we did with the percentage is we just figured out what percentage of the entire sewer system -- you know, if you think about it as a branch of a tree is the district's responsibility and they will be paying for and what percentage we are and that's how we got to the 76 percent. Of the entire system only 76 percent of that system that serves the district is actually going to be owned and operated by the City of Meridian. Milam: Madam Mayor? Bird: We are getting some fuzzy math here. I have -- this is, basically, what we had told them, Tom? Am I not right? Meridian City Council January 28, 2014 Page 42 of 49 Barry: Well, Mr. Bird, there was no guarantee made to the district, other than to ask the Council to consider this. Bird: No. No. But that's basically what we told them. Are you -- are you covering all your costs and everything? Barry: Yes, sir. We believe that this is a very reasonable rate and that's why we recommended it. Bird: A little bit of overhead for -- Barry: Right. You know, the system, because it's going to be maintained by the district in and around the district's boundaries, you know, that's a headache that we don't have to deal with, it's a cost we don't have to deal with, so that's the reason, again, we make the deduction. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Tom, I'm a hundred percent for it, as long as existing ratepayers are not subsidizing any part of it. I know they are not. We said this from day one. I know you have made sure that it didn't happen. Thank you, Tom. Barry: Yes, sir. And just to add maybe a little piece of mind, the effluent that we are going to be referring from the district has actually been pretreated, if you will. So, even though it's going to run through our treatment plant and get treated again, it is not raw sewage. So, that also helps us in our decision to make this recommendation. Cavener: Madam Mayor? De Weerd: Mr. Cavener. Cavener: Tom, can you pull up the -- the slide again where you got the 6,325 dollars? I haven't had my caffeine. Maybe you can walk me through that. Barry: Too many words, not enough numbers on this slide. Cavener: Can you just walk me through this one more time how you got to that 6,325 dollar amonth -- Barry: It would be my pleasure. Absolutely. Cavener: Thank you. Meridian City Council January 28, 2014 Page 43 of 49 Barry: So, there are 284 connections in the district right now. So, those are the properties that are going to be getting the service. According to the district they have informed us that the average monthly sewer volumes that are produced on per connection or per home basis is 4,096 gallons per month. Not per day. And if you just take and multiply those two numbers together, then, you get at the entire district service area sewer volume, what they are generating as a district. It's 1.1 million. If you take that 1.1 million what you would do is divide it by 1,000, because we bill in increments of 1,000, so that might be where we lost you. Cavener: That would be correct. Barry: Okay. Great. So, you know, essentially, you get 1.163, roughly. Multiply that by your $5.43, that gives you 6,316 dollars or it should -- and 52 cents and, then, you would simply add the base charge or the account charge of $8.48 to that and, therefore -- and you get 6,325 dollars as a total rate under that methodology. Cavener: Thank you for walking through that again. Barry: You bet. Milam: Madam Mayor? De Weerd: Yes, Mrs. Milam. Milam: Tom, I have a similar question and I think I did miss something maybe at the very beginning of your presentation. So, what we pay as ratepayers we pay $5.43 per account and $8.48 per thousand gallons. So, there numbers are swapped? Barry: Oh, dear. Milam: The 3,000 difference -- Barry: Mrs. -- or Councilwoman Milam, you have discovered an error in my presentation. The $8.48 is the base, so that -- that is -- Milam: Over 9,000 dollars. Barry: Per -- yes. No. Milam: Oh. Sorry. Barry: No. I'm sorry. You discovered an error in my -- not my math, but in my graph. That's where I think I threw you off here. So, I apologize. It said $8.48 per thousand gallons and I think I even represented that as a volumetric charge and it's not, it's the $5.43, which is the per thousand gallon volumetric charge, with the $8.48 one time base charge per month, so -- Meridian City Council January 28, 2014 Page 44 of 49 Milam: So, the rate is the same. Barry: Yeah. The rates -- all calculations are the same -- yeah. All the calculations are the same as I just represented. This graph, however, I flipped evidently the $8.48, said that that was the per 1,000 gallons, when it's actually the account -- per account charge and the $5.43 -- typically that's how it is, the base charge -- well, not typically, but sometimes the base charge is less, but not in this case for sewer. Milam: Okay. Thank you. Barry: So, I apologize for that. De Weerd: He was just seeing if you were paying attention. Barry: Yes. I'm very impressed. It's not like the old Council. Definitely. Sorry, Mr. Bird. Borton: Madam Mayor? De Weerd: Mr. Borton. Borton: Tom, we went through this and I appreciate what you have done and how you played this out and, in particular, trying to account for the Mayor's question with regards to insuring that the rate is consistent with what you and the city had represented in completing this task. Are you comfortable that the district, during its phase out, has adequately capitalized in order to complete any necessary repair work and maintenance during the phase out period, enough that it makes this adjusted rate during that period more comfortable with? Barry: Council -- Councilman Borton, no, I can't answer that question definitively. We have put in the third-party agreement some obligating language for the district to continue the improvements that they have on their capital improvement plan during the transitionary period. That they were not being allowed to delay those or just not do them. We also put in some additional funds to overall financial package that account for some of the deficiencies -- or all of the deficiencies I should say that we are currently aware of. Over the last several years one of the requirements we had of the district, which they did satisfy, was on the sewer side to run a television camera through all of their sewer lines and to, essentially, categorize all the problems that they had and, then, to pop those out and, then, begin working on the solutions of those and they have been working on the solutions of those and we have also found that the system that we thought was in real bad shape actually wasn't in all of that bad of shape. So, there has been piece of mind on that front and, as I say, with regard to what we know, that has been set aside. I think there is on the order of -- you know, north of half a million dollars for system improvements that we are aware need to be made and that are being financed by the entire transaction, which includes the issuance of a bond that comes Meridian City Council January 28, 2014 Page 45 of 49 towards the end of this particular transitionary period as the district begins to dissolve and transfer its assets and as the city takes over it. So, I hope that answers your questions. Bird: Thank you. De Weerd: Anything further from Council? Bird: I have none. Barry: Great. I apologize for that graphical error, but thank you very much for catching it. All right. I guess what I would ask -- because this rate is a little different -- I mean it's certainly no different in what we charge, we are not asking for a new rate, we are, essentially, asking for a reduced rate based upon the calculations that we said. I think it would be best if we could have a motion. I guess I would look to Mr. Nary as to whether that would be absolutely necessary, but I think it will be good for us in establishing this -- with utility billing to have that memorialized as a Council directive. De Weerd: I think we need that and a voice vote, but don't we need it in resolution or ordinance form -- Nary: No. Madam Mayor, Members of the Council, rate isn't changing. All you're doing is granting that relief based on that calculated percentage that Tom has calculated in relation to the sewer lines. So, essentially, just like your last discussion on relief, you don't need an ordinance change to do that and you don't need a resolution to Council, just direction. Because, essentially, you're just agreeing to collect slightly less based on that -- that formula. So, you're not changing the rate, which would require an ordinance change. De Weerd: Then how do you find this back, you know -- Nary: We could certainly memorialize it with a resolution next week if you prefer. That's --that's fine just as a recordkeeping measure. But you can direct that today if you wish. De Weerd: Okay. And certainly Council could direct that in your motion, if that's your desire. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I move that we go with the new rate of -- was it 41 -- get that, Tom. Of 4,807 dollars a month for the Meridian Heights Water and Sewer District and to bring that back in a form of resolution for the Council to approve. Cavener: Second. Meridian City Council January 28, 2014 Page 46 of 49 De Weerd: Okay. I have a motion and a second. Any discussion? Borton: Madam Mayor? De Weerd: Yes. Borton: It might automatically be in there, but would the resolution memorialize the extremely unique circumstances of this? We are not trying to invite any additional opportunities to create requests for adjusting sewer rates based on proximity to the sewer treatment plant. I mean this is really unique. De Weerd: I don't think we have a single point connection to a subdivision, do we? Barry: My understanding, Madam Mayor, is that there are similar connections to trailer parks. Borton: Madam Mayor, it may be remote, but just so we can recall the chronology of what got us to this unique solution. De Weerd: Okay. Nary: We will do that. De Weerd: Okay. Madam Clerk, will you, please, call roll. Roll Call: Bird, yea; Rountree, absent; Zaremba, absent; Borton, yea; Milam, yea; Cavener, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. De Weerd: Thank you, Tom, for your efforts and I have two City of Meridian pins right here for your two well-behaved guests. Barry: Thank you. De Weerd: I do appreciate you bringing your family with you and if you would, please, give those to them for me. Barry: Thank you very much. And I appreciate your support. Item 10: Ordinances Meridian City Council January 28, 2014 Page 47 of 49 A. Ordinance No. 14-1594: An Ordinance (RZ 13-009 -Village At Cold Creek Subdivision) For The Re-Zone Of A Parcel Of Land Situated In A Portion Of The SW ~/a Of Section 35, Township 4 North, Range 1 West, Boise Meridian, City Of Meridian, Ada County Idaho; Establishing And Determining The Land Use Zoning Classification Of R-8 (Medium Density Residential) Zoning District In The Meridian City Code De Weerd: Okay. Item 10-A is Ordinance 14-1594. Madam Clerk, will you, please, read this ordinance by title only. Holman: Thank you, Madam Mayor. City of Meridian Ordinance No. 14-1594, an ordinance, AZ 13-014, Victory South, for annexation of a parcel of land located in the northeast one quarter of the west one half of Section 25, Township 3 North, Range 1 West, Boise meridian, Ada county, Idaho, as described in Attachment A and annexing certain lands and territories 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 RUT, R-1, R-4 and R-6 zoning districts in Ada county to R-4, Low Density Residential District, and R-8, Medium Density Residential 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: You have heard this ordinance read by title only. Is there anyone who would like to hear it read in its entirety? Seeing none, Council. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I move we approve Ordinance 14-1594 with suspension of rules. Borton: Second. De Weerd: I have a motion and a second to approve Item 10-A. If there is no discussion, Madam Clerk, will you call roll Roll Call: Bird, yea; Rountree, absent; Zaremba, absent; Borton, yea; Milam, yea; Cavener, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. Meridian City Council January 28, 2014 Page 48 of 49 B. Ordinance No. 14-1595: An Ordinance (AZ 13-014 -Victory South) for the Annexation of a Parcel of Land located in the NE 1/4 of the W 1/2 of Section 25, Township 3 North, Range 1 West, Boise Meridian, Ada County, Idaho De Weerd: Item No. 10-B is Ordinance 14-1595. Madam Clerk, will you, please, read this by title only. Holman: Thank you, Madam Mayor. City of Meridian Ordinance No. 14-1595, an ordinance, RZ 13-009, Village at Cold Creek Subdivision, for the rezone of a parcel of land situated in a portion of the southwest one quarter of Section 35, Township 4 North, Range 1 West, Boise meridian, City of Meridian, Ada county, Idaho, establishing and determining the land use zoning classification of R-8, Medium Density Residential Zoning 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: You have heard this ordinance read by title only. Council, I don't see anyone who would like to hear it read, so do I have a motion? Milam: Madam Mayor? De Weerd: Mrs. Milam. Milam: I move that we approve Ordinance No. 14-1595 with suspension of rules. Bird: Second. De Weerd: I have a motion and a second to approve Item 10-B. Madam Clerk, will you call roll. Roll Call: Bird, yea; Rountree, absent; Zaremba, absent; Borton, yea; Milam, yea; Cavener, yea. De Weerd: All ayes. Motion carried. MOTION CARRIED: FOUR AYES. TWO ABSENT. Item 11: Future Meeting Topics De Weerd: Under Item 11 any topics to consider for future meeting agenda? Bird: I have none. De Weerd: Okay. I would entertain a motion to adjourn. Meridian City Council January 28, 2014 Page 49 of 49 Milam: So moved. De Weerd: Do I have a second? Bird: Second. De Weerd: I have a motion and a second. All those in favor say aye. All ayes. MOTION CARRIED: FOUR AYES. TWO ABSENT. MEETING ADJOURNED AT 8:24 P.M. (AUDIO RECORDING ON FILE OF THESE PROCEEDINGS) MAYOR TAM DE WEERD DATE APPROVED ATTEST: `~, £1 , iDNH~ -. J YCE OLMAN, CITY CLERK "; ~ i--- ~~!'. L ::,, TF~ c~~t` ~~ ~?~r Tf.F a'