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February 14, 2006 C/C Minutes Meridian City Council February 14, 2006 Page 12 of 56 150 trees on that site with Eagle Scout projects, things like that, I have got working. Thirty picnic tables. A new 30-by-60 shelter. And about 30 trash cans. So, come fall about time that soccer is ready to go ~~ there won't be a restroom and stuff there, but there will be enough stuff there to handle the load of a 490 some car parking lot. So, that's where I'm at tonight. So, I would request an impact fee amendment to Heroes Park budget of 31,585 dollars. De Weerd: Council, any questions for Mr. Huff? Bird: I have none, Mayor. De Weerd: Okay. Borton: Madam Mayor? De Weerd: Mr. Borton. Borton: I move we approve the request for impact fees of 31,585 for Heroes Park. Bird: Second. De Weerd: Okay. Motion to approve the request for 31,585 dollars. Any discussion? Mr. Berg, will you, please, call roll. Roll-Call: Bird, yea; Rountree, yea; Wardle, yea; Borton, yea. MOTION CARRIED: ALL AYES. De Weerd: Thank you so much. We appreciate you bringing your wife to share in this special evening. Huff: Thank you very much. Rountree: You better watch what you get for the next holiday. 4. Request for Impact Fees for Heroes Park by Farwest, LlC: i De Weerd: Okay. Item No.4. Mr. Nary, I believe you are covering this. Nary: Thank you, Madam Mayor, Members of the Council. You have a letter on your laser fiche from Wilson and McColl. I did speak with a representative from Farwest, LLC, this evening and they weren't able to get a representative here. You have this letter in front of you. I don't know if you have all had an opportunity to read it. I can summarize it very quickly. Basically, when the Lochsa Falls Subdivision was proposed and part of the ground that was being proposed that is now Heroes Park, a portion of it was to be donated and a portion of it the city was going to purchase at a fairly reduced Meridian City Council February 14, 2006 Page 13 of 56 price, especially in today's market per acre. The strange thing in the development agreement that was imposed at the time indicated that the impact fees that were collected from Lochsa Falls would be applied towards the purchase price. It didn't just indicate all the impact fees, but ones just from that. There was some ~~ I guess some changes in the partnership that brought - or brought the Lochsa Falls Subdivision -. some of that property has been removed and put into a different project that eventually became Kelly Creek. So, the city has been taking all of the Lochsa Falls impact fees and applying it and reimbursing the developer, but what they are asking is is there will be a shortfall based on the number of lots that have now been re-adjusted due to these changes and, therefore, they are asking for reimbursement for the full amount of what was contemplated at the time. You know, it certainly makes sense as to what they are requesting. If you would like to have a member from Farwest, LLC, be present, I told them I would ask you if you wanted to set that over, I'd notify them of the date that they could be present in the future. If you think there is enough information here for you to take some action, that's certainly within your prerogative to do. But that's the basis of the letter in a nutshell. If you have any questions I hope we could answer those for you. $120,157.50 is the difference. De Weerd: Council, any questions? Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: I do have a question. Bill, do we ~~ did you find out if under the Gibson Fulfer deal, did we collect the impact fees on that, too, and was that credited to Lochsa Falls or how was that done? Nary: From what I understand, the ones -- once it became not a Lochsa Falls project, those impact fees are collected, they just weren't credited towards this purchase. So, the city did collect impact fees from all of these projects, just that the way this development agreement was worded at the time indicated the only ones that would be reimbursed were from the Lochsa Falls project. Bird: Yeah. That's what --I mean I just-~ De Weerd: Okay. Any other questions? Borton: Madam Mayor? De Weerd: Mr. Borton. Borton: Bill, is this -~ have there been other occasions like this where this has happened, where there has been a shortfall and, if so, how was that treated? Meridian City Council February 14, 2006 Page 140f56 Nary: Madam Mayor, Members of the Council, Council member Borton, I'm not aware of another one. I think because it's not -- it isn't common for the city to have dedicated specifically like this. I don't know -- I can't recall specifically why it was done in this particular fashion, but it isn't common. Normally, the impact fees are simply reimbursed towards it. It generally works out on a one-to~one basis as was contemplated. Here because the property changed hands and the development changed a little bit after the deal was struck, is the reason for the shortfall. But normally, no, I don't believe I can recall in the last five years this type of request, it's just that most of them don't get specific to this degree in saying it has to be this project. There is some language that was contained in there that talks about requesting reimbursement if the city ever went to zones and the city doesn't have any zones currently for parks. They look at parks in the global scale for the entire city, so we collect impact fees city wide for all city projects and I think what was anticipated at the time of this agreement was that if that potential existed, it would still give them the ability to request beyond Lochsa Falls, because it was determined that this park would be serving more the Lochsa Falls Subdivision, then, the city would be free to, then, reimburse from other -- other impact fee zones. Again, we don't have any zones, so that never happened, but it was contemplated at the time that if it did, then, the city would be free to reimburse from other areas or pockets where they would have gotten impact fees. Bird: Madam Mayor? De Weerd: Mr. Bird. Bird: Bill, in the original, Gibson and Fulfer property was included in that. Nary: Yes, sir. Bird: So, basically, we would be living up to the agreement if we used those that they received and that gets it back to the right amount of lots. Am I not right on that deal? Nary: Madam Mayor, Members of the Council, Councilmember Bird, that's correct. I think realistically what they are asking is just simply an adjustment and a request for a budget amendment to take it out of the impact fee account. Again, we don't have zones, so we collect all the funds from the city and put it in one pot and, then, divvy it out for different projects and budgets in particular for different reasons. But, yeah, you're exactly right, if you took the same amount from Kelly Creek and those other subdivisions that were developed, North McMillan and Ten Mile area, it would, essentially, be the same result of what was contemplated at the time. Wardle: Madam Mayor? De Weerd: Mr. Wardle. Wardle: Mr. Nary, the purchase - the original agreement on purchase price was not changed; correct? Meridian City Council February 14, 2006 Page 15 of 56 Nary: That is correct. No, it has not. Wardle: And, essentially, we have - from what I hear, we have collected fees already and are in the impact fee area, just not specifically under the same name. Nary: Correct. Wardle: Okay. Nary: Yes. All they are contemplating in their letter is that if we stuck to this specific language, that once they have built out Lochsa Falls and there is not a large number of lots remaining, they will still have the shortfall of 120,000 dollars. De Weerd: Okay. Any other questions, Council? And we are looking for direction. Nary: Madam Mayor, Members of the Council, if you want to -- if you feel comfortable based on the letter and the information that's been provided to make a decision, you're free to do that. If you would prefer it have a representative from Farwest, LLC, in case you have other questions or concerns, you certainly can reset this to another day. I will notify them of that specific date and they will have a person here. So, it's really up to you. Bird: Madam Mayor? De Weerd: Yes, Mr. Bird. Bird: I'd like to ask Director Strong if the parks has any -- if they agree with this or if he - - you know, I'm sure he does, because - Strong: Madam Mayor, Members of the Council, and Councilman Bird, in my review of this and review of the legal department, it looks like a reasonable request. I'm certainly not an expert in these situations, but it looks like the way it sorts out would make sense. Bird: You're okay with that, then? Strong: Yes. Bird: Okay. De Weerd: Thank you. Any other discussion? Rountree: Madam Mayor, I just need clarification, I guess, from Bill. All of the fees have been collected to make this difference in the other subdivisions that have been developed since this property changed hands or are there more fees to come towards this and the way I read the agreement, if that's the case, then, would that not Meridian City Council February 14, 2006 Page 16 of 56 necessarily apply all of the - the differences at this point, but simply maybe an amended development agreement, to have those fees payoff as stated in the agreement? Nary: Madam Mayor, Members of Council, thank you for clarifying that, because I think that's probably what I left out. What they are asking is that the Council approve that the fees be collected - as the fees are collected that they be made whole for the total amount of what the purchase price that was contemplated when the park property was purchased from the -- by the city. They recognize that we aren't necessarily giving them a check for 120,000 dollars. That as we are continuing to collect, Lochsa Falls isn't completely done. All they put in this letter is saying once it is there is no shortfall. We are still collecting fees from Kelly Creek and the surrounding subdivisions as they develop. So, all you would be authorizing is that the city would make them whole, complete the full purchase price and apply the fees as collected from the other subdivision or out of the park impact fee account to make this whole as they have been collected and contemplated. Does that make sense? Rountree: Uh-huh. Borton: Madam Mayor? De Weerd: Yes, Mr. Borton. Borton: To make sure - it makes sense to me. So, it's not necessarily an allocation of collected impact fees right now, it's more recognition that impact fees as they are collected in the future, will still be allocated to cover that. Nary: Councilmember Borton, that is correct. Yes. As they are collected they can be, then, reimbursed to them as it comes through the city. Borton: Does that require action now to approve that or is that something we just need to be aware of and, then, when those -- when Lochsa Falls is finished with its sales that that gap be filled in at that time. Nary: If you would -- if you would prefer, I mean they can certainly request to amend the development agreement for that portion. If you think -- because you're correct, if you -- I think what they are seeking now is your -- Council's action saying you're going to concur with their request, you will authorize that the future collection of impacts fees, until this full amount is reimbursed to Farwest, LLC, that they be paid from those impact fees that guy collected. Again, it doesn't have to be from one specific subdivision, it can be from any of the impact fees that are collected, but they would be reimbursed as these get collected. If you want it in a different formula, we could ask them to bring what their proposed formula or timing is. You can ask them to bring a development agreement amendment in conjunction with your motion to concur with the request, but requires them to amend the development agreement to reflect that and the timing and any of those options are certainly available to you. Meridian City Council February 14, 2006 Page 17 of 56 De Weerd: Okay. Any further information needed? I will need a motion to act on this. Borton: Madam Mayor? De Weerd: Mr. Borton. Borton: I move that we ~- that we -- I guess inartfully worded -- concur with the request for Farwest to be made whole, along with the original intent of the development agreement, but that an amended development agreement be brought forth for the Council to reflect that concurrence and the city's obligation to make them whole for the entire impact fee amount in the shortfall. Bird: Second. De Weerd: Okay. The motion is to approve the request and bring back an amendment -- an amended agreement. Mr. Nary, is there any further information you need? Nary: No, ma'am. De Weerd: Okay. Any discussion, Council? Mr. Berg, will you, please, call role. Roll-Call: Bird, yea; Rountree, yea; Wardle, yea; Borton, yea. MOTION CARRIED: ALL AYES. De Weerd: Okay. So, as I understand it, we will come back with an agreement, but will you also notify the accounting department of this? Nary: Madam Mayor, I will. c: Fire Department - Mr. Johnson. De Weerd: Thank you. Thank you, Mr. Strong. Okay. Item 7 ~C. Fire Department. Mr. Johnson. Johnson: Thank you, Madam Mayor, Members of the Council. Tonight I'm here to discuss with you the equipment rental agreement with the Idaho Department of Lands for assistance on wildland fires throughout the summer. A couple of weeks ago they approached us to sign this agreement, which we have not done in the last several years due to costs that would be incurred by the city and fire department, because of the way the agreement was written. What they want is to rent a piece of our fire apparatus to go up to a fire out of McCall where it's threatening structure, use a Meridian fire crew to help protect these structures. The way the contract used to read was it was a flat fee for the apparatus and equipment and our contracted labor costs through the union and stuff, would actually end up costing the city more money. So, they went through and