Minutes - 2009 - City Council - 03/16/2009 - Special
EAGLE CITY COUNCIL
Special Meeting Minutes
March 16, 2009
1. CALL TO ORDER: Mayor Bandy calls the meeting to order at 4: 17 p.m.
2. ROLL CALL: Present: HUFFAKER, SHOUSHT ARIAN, SEMANKO. All present. A
quorum is present.
3. PUBLIC HEARINGS:
A. Rural Community Block Grant (RCBG)Application: The purpose ofthe hearing is to take
public testimony on the creation of an Idaho Viticulture Research Center. The City of Eagle,
City of Star and Vinemakers, LLC. would like to apply for a Rural Community Block Grant to
construct a research building and custom crush facility in the Stillwater Technology Park on
Highway 44 in Eagle and a nursery/greenhouse/foundation block facility in Star on Pollard
Drive.
Mayor introduces the item.
Lloyd Mahaffey 3350 Ballantyne Ln. Eagle, Idaho. Mr. Mahaffey reviews the purpose of the
block grant application to create the Idaho Viticulture Research Center, a 501c3 joint venture
between the City of Eagle, City of Star, and Vinemakers, LLC. Sage Community Resources
would be the grant administrator and their fees will be paid for out of the grant funds. The grant
will be utilized to teach winery, construct a custom crush facility, crush pad, barrel storage area,
laboratory, library and classroom in Eagle - and a greenhouse, nursery, and research blocks in
Star.
Shoushtarian wants to know the definition of a Rural Community Block grant. Mahaffey
explains that the State receives money from the Federal government for economic development
in the State, and the State also has matching funds. The purpose is to fund infrastructure and
activities that will promote economic development and specifically job creation. Huffaker
inquires as to the timeline. Mahaffey states their goal is to open the center in March of 20 1 O.
Discussion.
Mayor opens the public hearing.
Patricia Minkiewicz Deerfield Ct. Eagle, Idaho. Ms. Minkiewicz wants to know what a custom
crusher looks like, what the size of the crusher will be and is there noise and a smell associated
with it? She also wants to know if the river will be polluted.
Paul Beckman 3585 W. State Street Eagle, Idaho. Mr. Beckman comments on the other
programs that are going on in the area. The US Department Agriculture has two wine
researchers at the Parma Station, and they have test plots for both table and wine grapes. Also
the University of Idaho has a food station in Caldwell that has taken over the wine side of the
business. Treasure Valley Community College has viticulture courses. He isn't sure how all of
these programs will work together, but wanted to bring up their existence.
Lynne Sedlacek 1200 Herford Drive Eagle, Idaho. Ms. Sedlacek questions to what extent the
City's involvement will be, especially considering the recent budget challenges. From the
discussion so far the matches are property and cash, and the City is not involved in any of that.
Pat Engel, with Sage Idaho will make a great grant administer. It sounds like a good program,
but would just caution the City as to any monetary commitments that may be required.
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Mahaffey states that a custom crusher is ran during normal business hours, is about the size of a
3x6 table and the noise is about the same as a small electrical generator. The facility is to be a
green facility and there will be no discharge into the river. They are aware of the other college
courses, but they want to build up Idaho programs.
Mayor Bandy states that the City is co-sponsoring the grant and we are looking at our
involvement as far as the permitting process so that may be our in-kind donation.
Mayor closes the public hearing.
Discussion amongst the Mayor and Council. Discussion regarding the grant administrator
contract. If the City accepts the grant then the contract would go into effect. The grant
administrator fees will be paid by the block grant, using the City as a pass through to receive the
grant funds and pay them back out to the grant administrator. This would be similar to the Senior
Center parking lot block grant and the Mercy Housing Grant. The funds will show in the City
budget as a pass through. The City's matching commitment would be in the area of permitting.
Discussion regarding amendments to the grant administrator contract.
Semanko moves to submit a joint application on the Idaho Viticulture Research Center
with the City of Star and Vinemakers LLC and City of Eagle, with Eagle as the lead
applicant. Seconded by Shoushtarian. Discussion. ALL AYE...MOTION CARRIES.
Semanko moves to authorize the Mayor to enter into a grant administration contract with
Sage Community Recourses for administration of the grant, in the event that the grant is
approved. The contract to reflect the amendment that were discussed today. Seconded by
Shoushtarian. HUFFAKER AYE; SHOUSHTARIAN AYE; SEMANKO AYE. ALL
AYE. ..MOTION CARRIES
4. ADJOURNMENT:
Shoushtarian moves to adjourn. Seconded by Huffaker
CARRIES...
ALL AYES: MOTION
Hearing no further business, the Council meeting adjourned at 4:55 p.m.
Respectfully submitted:
/MRb~~ER~~~
CITY CLERK/TREASURER
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A TRANSCRIBABLE RECORD OF THIS MEETING IS A V AILABLE AT EAGLE CITY
HALL
Page 2
K:\COUNCILIMINUTES\Temporary Minutes Work Area\CC-03-16-09spmindoc
EAGLE CITY COUNCIL
PUBLIC HEARING SIGN-UP
Subject: Rural Community Block Grant Application - Idaho Viticulture Research Center.
March 16, 2009
TESTIFY PRO/ CON or
NAME ADDRESS YES/NO NEUTRAL
GRANT ADMINISTRATION CONTRACT
This contract is entered into on by and between the City of , herein referred to as the CITY
and Sage Community Resources herein referred to as the CONTRACTOR,
WITNESSETH:
WHEREAS, the CITY has made application to and has been approved by the Idaho Department of
Commerce, herein referred to as the DEPARTMENT, for the receipt of grant funds under the Idaho Rural
Community Block Grant (RCBG) Program for purposes of , and
WHEREAS, the CITY desires to engage the CONTRACTOR to render certain services related to the
administration of the above-described RCBG project; and
WHEREAS, the CITY has complied with provisions for the soliciting of contractors as cited in Idaho Code;
and
WHEREAS, to ensure effective management of the above project, it is deemed to be in the best interests of
the CITY to enter into an agreement with the CONTRACTOR as hereinafter provided;
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. EMPLOYMENT OF CONTRACTOR
The CITY agrees to engage the CONTRACTOR, and the CONTRACTOR agrees to
provide the services described in Section 6 in order to provide for the administration and
management of the RCBG project for the CITY as approved by the DEPARTMENT.
2. EMPLOYEE -EMPLOYER RELATIONSHIP
The contracting parties warrant by their signature that no employer-employee relationship
is established between the CONTRACTOR and the CITY by the terms of this contract. It
is understood by the parties hereto that the CONTRACTOR is an independent contractor
and as such, neither it nor its employees, if any, are employees of the CIN for purposes
of tax, retirement system or social security (FICA) withholding.
3. CONTRACTOR'S INSURANCE
The CONTRACTOR warrants that it has obtained, and will maintain at its expense for the
duration of this Contract, statutory worker's compensation coverage, employer's liability
and comprehensive general liability insurance coverage for its principals and employees
for the services to be performed hereunder. The comprehensive general liability insurance
shall have, at a minimum, a coverage limit of at least one hundred thousand dollars
($100,000) per claim, and five hundred thousand dollars ($500,000) aggregate.
4. LIAISON
The CITY designated liaison with the CONTRACTOR is (name), (title). The
CONTRACTER'S designated liaison with the CITY is (name).
1 of 4
5. EFFECTIVE DATE AND TIME OF PERFORMANCE
This Contract takes effect on (date). The services to be performed by the CONTRACTOR
will be completed no later than project closeout.
6. SCOPE OF SERVICES
The CONTRACTOR will perform the following services as outlined in Attachment A.
7. COMPENSATION
For the satisfactory completion of the services to be provided under this Contract, the CITY
will pay the CONTRACTOR a sum, not to exceed ($amount) that the CITY agrees to pay
as set forth in Attachment A.
8. CONFLICT OF INTEREST
The CONTRACTOR warrants that it presently has no interest and will not acquire any
interest, direct or indirect, in the RCBG project that would conflict in any manner or degree
with the performance of its services hereunder. The CONTRACTOR further covenants
that, in performing this contract, it will employ no person who has any such interest.
Should any conflict of interest, as defined by the RCBG Administrative Rules, arise during
the performance of this contract, it will be disclosed and managed according to the RCBG
rules.
9. MODIFICATION AND ASSIGNABILITY OF CONTRACT
This contract contains the entire agreement between the parties, and no statements,
promises or inducements made by either party or agents of either party, that are not
contained in the written contract, are valid or binding. This contract may not be enlarged,
modified or altered except upon written agreement signed by both parties hereto The
CONTRACTOR may not subcontract or assign its rights (including the right to
compensation) or duties arising hereunder without the prior written consent of the CITY
and the DEPARTMENT. Any subcontractor or assignee will be bound by all of the terms
and conditions of this contract.
10. TERMINATION OF CONTRACT. This contract may be terminated as follows:
(a) Termination due to loss of funding.
In the event that the DEPARTMENT reduces or terminates payments under the
RCBG Program so as to prevent the CITY from paying the CONTRACTOR with
RCBG funds, the CITY/COUNTY will give the CONTRACTOR written notice which
sets forth the effective date of the termination and explains the reasons for the
termination. The notice shall also describe the conditions for any reimbursement
for any work completed.
(b) Termination for Convenience.
The CITY may terminate this contra in whole, or in part, for the convenience of
the CITY wlw at the continuation of the project is not in the
best interest the City : - determines that further expenditure
of funds will n produce any results. Th- •arties shall agree in writing, upon the
conditions, ective date, and fair and asonable payment for work completed.
Deleted: of both padres and
(c) Termination for Cause.
(i) If the CITY determines that the CONTRACTOR has failed to comply with
the terms and conditions of this contract, it may terminate this contract in
whole, or in part, at any time before the date of completion. If the
CONTRACTOR fails to comply with any of the terms and conditions of this
contract, the CITY may give notice, in writing, to the CONTRACTOR of
any or all deficiencies claimed. The notice will be sufficient for all
purposes if it describes the default in general terms. If all defaults are not
cured and corrected within a reasonable period as specified in the notice,
the CITY may, with no further notice, declare this Contract to be
terminated. The CONTRACTOR will thereafter be entitled to receive
payment for those services reasonably performed to the date of
termination, less the amount of reasonable damages suffered by the CITY
by reason of the CONTRACTOR'S failure to comply with this contract.
(ii) Notwithstanding the above, the CONTRACTOR is not relieved of liability
to the CITY for damages sustained by the CITY by virtue of any breach of
this contract by the CONTRACTOR, and the CITY may withhold any
payments to the CONTRACTOR for the purpose of until such time as the
amount of damages due the CITY from the CONTRACTOR is determined.
11. OWNERSHIP AND PUBLICATION OF MATERIALS
All reports, information, data, and other materials prepared by the CONTRACTOR
pursuant to this Contract are to be the property of the CITY and the DEPARTMENT which
has the exclusive and unrestricted authority to release, publish or otherwise use, in whole
or part. All such materials developed under this contract shall not be subject to copyright
or patent in the United States or in any other country without prior written approval of the
CITY and the DEPARTMENT.
12. REPORTS AND INFORMATION
The CONTRACTOR will maintain accounts and records, including personnel, property and
financial records, adequate to identify and account for all costs pertaining to this contract
and such other records as may be deemed necessary by the CITY/COUNTY to ensure
proper accounting for all project funds. These records will be made available for audit
purposes to the CITY/COUNTY or its authorized representative, and will be retained for
three (3) years after the expiration of this contract.
13. CONSTRUCTION AND VENUE
This contract will be construed and governed by the laws of the State of Idaho. In the
event of litigation concerning it, venue is the Third Judicial District, in and for the county of
Ada, State of Idaho.
14. INDEMNIFICATION
The CONTRACTOR waives any and all claims and recourse against the CITY, including
the right of contribution for loss and damage to persons or property arising from, growing
out of or in any way connected with or incident to, the CONTRACTOR'S performance of
this contract except for liability arising out of concurrent or sole negligence of the CITY or
3 of 4
its officers, agents or employees. Further, the CONTRACTOR will indemnify, hold
harmless, and defend the CITY against any and all claims, demands, damages, costs,
expenses or liability arising out of the concurrent or sole negligence of the,CONTRACTOR
or its officers, agents or employees.
15. LEGAL FEES
In the event either party incurs legal expenses to enforce the terms and conditions of this
contract, the prevailing party is entitled to recover reasonable attorney fees and other costs
and expenses, whether the same are incurred with or without suit.
16. SPECIAL WARRANTY
The CONTRACTOR warrants that nothing of monetary value has been given, promised or
implied as remuneration or inducement to enter into this contract. The CONTRACTOR
further declares that no improper personal, political or social activities have been used or
attempted in an effort to influence the outcome of the competition, discussion or
negotiation leading to the award of this contract. Any such activity by the CONTRACTOR
shall make this contract null and void.
IN WITNESS WHEREOF, the parties hereto have executed this contract on the day of
20
BY:
Date:
Attest:
Sage Community Resources City of
Kathleen A. Simko, President
BY:
Date:
Attest:
4 of 4
(Mayor's Name), City of Eagle
ATTACHMENT A
The CITY shall pay Saoe Community Resources for performance of the services described below, a sum
not to exceed $25,000.pr 5% whichever is areater All fees are subject to a successful grant award and
acceptance by the CITY of such award. Nothing herein binds the CITY to accept any grant awards
Duties include, but are not limited to:
A. Project Start Up (30%) $7,500
1. Prepare final scope of work, schedule, and budget
2. Design and implement project accounting system
3. Review environmental impacts of the project, i e. floodplain, site contamination
B Project Management (60%) $15,000
1. Coordinate efforts of City/County, architect/engineer, contractors, and IDOCC on project
activities
2 Provide accounting assistance to the grantee
3. Process payment requests, progress reports, and related source documentation, i e.
invoices
4. Assist in bidding out project and selection of contractor
5 Prepare contract amendments and budget revisions as needed
6. Assist in property acquisition or right of ways and easements as required
7. Assist in selection of engineer or architect as requested
8. Attend construction meetings
(Billings for the project management category may be submitted on a monthly basis as required.)
C. Project Completion (10%) $2,500
1. Submit certificate of substantial completion from engineer/architect and grantee
2. Submit job documentation from the business
3. Complete final financial and performance report
5 of 4
Deleted: of
Idaho Viticulture Research Center
Stillwater Technology Park
Hwy 44
Eagle Star Technology Corridor
Applicant
Idaho Viticulture Research Center (IVRC)- A 501c3 joint venture between the City of Eagle,
City of Star, and Vinemakers, LLC.
Scope
This Center, in partnership with the College of Western Idaho (and Boise State University), will
benefit vineyards and wineries throughout the Snake River Valley AVA, Eagle Wine District,
future Star Wine District, and rural Idaho.
Type of Grant
Rural Community Block Grant (RCBG) to construct Research Building and Custom Crush
Facility in the Stillwater Technology Park on Hwy 44 in Eagle and a
Nursery/Greenhouse/Foundation Block Facility in Star on Pollard Drive.
Note: Similar reasoning was used to justify funding Modelo's rail spur in Bonneville County.
Amount - $500,000.00
Eligible Activity
The construction of publicly owned infrastructure and publicly regulated utilities to the viticulture
center and the allocation of funds towards the construction of the following:
Eagle:
Star
- Teaching Winery
- Custom crush facility
-Crush pad
-Barrel storage area
- Laboratory
- Library
- Classroom
-Greenhouse
-Nursery
- Research Blocks
Matching Grants
Land Donations from Priddy Brothers - $500,000
Vinemakers, LLC Equipment and Cash- $200,000
City of Eagle - Permitting
City of Star - Permitting
Management Team:
Chairman of the Board and CEO — C. Lloyd Mahaffey
Executive VP and Center Director — Angie Riff, Winemaker
Director — Mark Priddy
Director — Loring Evans, AIA
Business Job Commitment
Vinemakers, LLC will commit to job creation via an agreement or letter to IVRC.
Several area vineyards and wineries will commit to production agreements with IVRC.
Business Ability to Finance their Proiect
Vinemakers, LLC and Priddy Brothers would commit private funds, donate land for the building,
and donate equipment to operate the lab and nursery.
Application Deadline
March 16th
Public Hearings
The City of Star held a public hearing on March 12, 2009
The City of Eagle is holding a public hearing on March 16, 2009.
Certified Grant Administrator
The Grant Administrator is Pat Engel, SAGE Resources. 208-869-1171
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the last spike was driven at the completion of the First Transcontinental Railroad, a "Golden Spike" was
driven by Governor C. L. "Butch" Otter on January 24, 2009, at the intersection of Idaho Highway 44 and
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College of Western Idaho
March 9, 2009
5500 East University Way Nampa, Idaho 83687
Office of the President
Mr. Lloyd Mahaffey
Vinemakers, lnc.
842 Winding Creek Drive
Eagle, ID 83616
Dear Mr. Mahaffey:
phone 208 562 3500 lax 208 562 3535 http-//www-cwidaho.cc
This letter is to confirm the College of Western Idaho's interest in the creation of an
Idaho Viticulture Research Center (IVRC) to be located in Eagle and a nursery in Star,
and building a collaborative partnership between the IVRC, College of Western Idaho
(CWI) and Boise State University (BSU). This partnership will certainly be at the
forefront of helping to build a viticulture/enology industry cluster that will benefit not
only southwest Idaho, but the entire state as well.
Part of the College of Western Idaho's charge is to be a catalyst in developing the
area's economy through education and workforce training. CWI's role, in concert with
the IVRC, would be to begin the process of offering non-credit, short term courses in
Viticulture (the cultivation of grapes) and Enology (the science of wine making). Once
the demand grows large enough (estimated two years), credit bearing programs would
be offered in Viticulture and Enology. Furthermore, we envision that many, if not all
courses, would be taught at the Idaho Viticulture Resoarch Center.
Again, we welcome the opportunity to play an important role in building and expanding
the Viticulture and Enology industry in southwest Idaho.
Sincerely,
r
Dennis Griffin, Ed.D.
President
OISE
STATE
LiN1'rF SITY
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March 10, 2009
C. Lloyd Mahaffey
Vinemakers, LLC
842 Winding Creek Drive
Eagle, Idaho 83616
Dear Mr. Mahaffey,
Boise State University is pleased to partner with thc Idaho Viticulture Research Center (IVRC) in a
proposal to the State of Idaho Department of Commerce Rural Community Block Grant program. What
an exciting and unique opportunity to join the City of Eagle, City of Star, Vinemakers, LLC, and the
College of Western Idaho to benefit rural Idaho and its Snake River Valley vineyards and wineries!
As you and I have discussed in some detail, there exist a number of mutually beneficial collaborations
that could evolve from this partnership between the 1VRC and Boise State University. An
interdisciplinary research team involving faculty from electrical and computer engineering, biology and
economics is currently developing wireless sensor technology to collect, display and analyze biological
and meteorological data to improve wine grape production efficiency and profitability in Idaho. The
College of Business and Economics recently completed an analysis of the economic impact of Idaho's
wine industry for the Idaho Wine Commission. Previously, you worked together with faculty from
gcosciences on an equally innovative and interesting project that helped create Idaho's first wine
appellation. This proposed Rural Community Block Grant would offer the ability to further develop and
expand related research enhancements of direct benefit to Idaho through a complementary public-
private partnership.
Boise State University has developed a reputation for cross -disciplinary research and innovation of
global importance and local impact. As a metropolitan research university, we arc committed to civic
engagement and to working with local industry and government for the betterment of the citizens of
Idaho. The partnership proposed through the Rural Community Block Grant will contribute to new
technologies and processes for specialty crops that conserve natural resources and enhance long term
production sustainability in Idaho.
My colleagues, Dean Shannon and Dean Schimpf, and I look forward to working together with you, and
we offer our full support in this endeavor. If I can provide additional information, please let me know.
Best regards,
Cheryl B. Schrader, Ph.D.
Dcan, College of Engineering
cc: Dr. Patrick Shannon, Dean, College of Business and Economics
Dr. Martin Schimpf, Dean, College of Arts & Sciences
Tri,Cedar6 LLC
March 12, 2009
Mr. C. Lloyd Mahaffey
Vinemakers, LLC
842 Winding Creek Drive
Eagle, ID 83616
Dear Lloyd:
TriCedars, LLC is pleased to have the Idaho Viticulture Research Center (IVRC)
prepare to locate in the Stillwater Technology Park being developed along Hwy 44.
To that end and by this letter TriCedars, LLC agrees to make donations as follows:
1. To IVRC, 10,000 sq feet with a first right of refusal to purchase an additional
10,000 square feet, in either lot 2, 4 or 6 , as mutually agreeable, in Stillwater
Technology Park in Eagle, Idaho; and
2. To the City of Eagle, such land as is needed and mutually agreed upon to put
in infrastructure in Stillwater Technology Park as needed to build on the
donated lot; and
3. To IVRC, 3 acres of unimproved land on Pollard Ln in Star, Idaho.
4. The estimated market value of the Iand in Stillwater Technology Park, along
with its improvements (including Engineering, permits, fees etc) that will be
donated per the above we calculate at $385,000, and the estimated market
value of the 3 acres on Pollard Ln, in Star Idaho we calculate at
approximately $100,000.
Our offer is contingent on the IVRC raising funds in 2009 and using a minimum of
$250,000 of those funds to bring such infrastructure (roadway, sewer, water, power,
phone, natural gas, etc) to the donated lot in the Stillwater Technology Park as is
sufficient to meet all conditions imposed by the City of Eagle and any other
governmental entities for the IVRC to obtain a building permit on the donated land
in Stillwater.
We understand that IVRC is participating in an application for a Rural Community
Development Block Grant from the state of Idaho to advance its location in the
Stillwater Technology Park. We wish you every success and offer to assist in that
effort as we are able.
We also understand that other grant funds will likely be sought to assist with public
infrastructure and buildings in Stillwater Technology Park, with the hope of helping
to launch the Eagle Star Tech corridor.
After IVRC has secured its needed funding, committed it to the purposes conditioned
above and, as needed to maximize the matching funds for any other grant funds that
are sought, TriCedars, LLC will provide all documents needed to convey clear title to
the referenced parcels to IVRC.
Sincerely,
MAC
rk Priddy
Manager
TriCedars, LLC
cc: Honorable Phil Bandy, Mayor, City of Eagle, Idaho
Honorable Nate Mitchell, Mayor, City of Star, Idaho
Mr Donald Dietrich, Department of Commerce, State of Idaho
Vinemakers, LLC
842 Winding Creek Drive
Eagle, ID 83616
March 15, 2009
Executive Director
Idaho Viticulture Research Center
Stillwater Technology Park
Eagle, ID 83616
Dear Sir:
Vinemakers LLC, in partnership with the College of Western Idaho (CWI) and Boise
State University (BSU), agrees to enter into a long-term contract to manage and
operate the Idaho Viticulture Research Center and Nursery in the new Eagle Star
Technology Corridor (www.ESTech.org).
Furthermore, contingent upon the IVRC receiving a Rural Community Block Grant
(RCBG) for the infrastructure and the building, Vinemakers agrees to contribute
approximately $200,000 in cash, donated equipment and in kind services. Elements
will include:
-Vineyard equipment
-Winery equipment
-Wine making supplies
-Field test equipment
-Laboratory equipment
-Research material
-Grape contracts
-Viticulture services
-Winemaking services
-Marketing services
-Distribution services
-Education support
-Operating capital
Sincerely,
C. Lloyd Mahaffey
Managing Partner