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Minutes - 2011 - City Council - 10/25/2011 - Regular EAGLE CITY COUNCIL Minutes October 25, 2011 PRE-COUNCIL AGENDA: 5:30 p.m.- 6:30 p.m. 1. Ada County Sheriff's Office Monthly Report: Chief Borgquist: We have been assisting the FBI and the US Attorney General's Office on some search warrants in the City. Another issue that we are working on is multiple juvenile problems in the City. Presents a power point presentation on calls for service, shift schedule, reporting district assignments, and the monthly report and discusses the same. Monthly report has been distributed. General discussion. 2. Q&A with Boise State University Students: Cody Trickbaum, General Business 450 Class I BSU, I want to thank the Council and the Mayor for having us come in to ask you some questions. The two issues we focused on are smart growth, water issues and resources in the City and structure of city government. Cody displays an overhead of the questions that he will be asking the Mayor and Council. Questions for the Mayor and Council: What is the city actively doing to alleviate the unemployment rate in the City? General discussion. What does the City plan to do to maintain the quality of life for its citizens? General discussion. What are you looking at to adjust your permitting and fee processes to be more development friendly? General discussion. Has the City of Eagle considered hiring a city manager and proceed with that form of government. If so what are the conceivable pros& cons associated with this change? General discussion. Bob Shepherd thanks the Council and also thanks Nichoel for attending their class and providing them such valuable information. 3. Mayor and Council Reports and Concerns: No reports. 4. City Clerk/Treasurer Report: No report 5. Zoning Administrator's Report: No report 6. Public Works Director Report: Discusses the household hazard waste program. For FY 10/1 1 we had 491 households participate and 15,385 lbs of paint, TV, propane tanks and etc. We are up 4% on households and down 9% on volume. 7. City Attorney Report: Bill Vaughan and I have been working with Arbor Ridge on their irrigation issues. Discussion on using the letter of credit money to use for some irrigation. Hopefully we will bring the agreement to you at your November 17th meeting. General discussion. INVOCATION: REGULAR COUNCIL AGENDA: 6:30 p.m. 1. CALL TO ORDER: Mayor Reynolds calls the meeting to order at 6:30 p.m. 2. ROLL CALL: HUFFAKER, SHOUSHTARIAN, SEMANKO, GRASSER. All present. A quorum is present. Page 1 K.\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-10-25-1 Imin.doc 3. PLEDGE OF ALLEGIANCE: Boy Scouts from troop#327 and#91 lead the Pledge of Allegiance. 4. PUBLIC COMMENT: None 5. CONSENT AGENDA: ♦ Consent Agenda items are considered to be routine and are acted on with one motion. There will be no separate discussion on these items unless the Mayor, a Councilmember, member of City Staff, or a citizen requests an item to be removed from the Consent Agenda for discussion. Items removed from the Consent Agenda will be placed on the Regular Agenda in a sequence determined by the City Council. ♦ Any item on the Consent Agenda which contains written Conditions of Approval from the City of Eagle City Staff, Planning & Zoning Commission, or Design Review Board shall be adopted as part of the City Council's Consent Agenda approval motion unless specifically stated otherwise. A. Claims Against the City. B. Appointments to the Transportation Committee: Mayor Reynolds is requesting the confirmation of Scott Wonder to the Committee. Mr. Wonder will be serving a two (2)year term. Mayor Reynolds is also requesting Council confirm the appointment of Lt. Dana Borgquist as an ex-officio member, he will also serve a two(2)year term. (JDR) C. Minutes of October 11,2011. D. Cooperative Agreement between Valley Regional Transit and City of Eagle for Annual Dues and Service Contribution FY 2011-2012. E. DR-32-11 - One building wall sign for Idaho Hand and Wrist-Idaho Hand and Wrist: Idaho Hand and Wrist, represented by Virginia Cunningham with Lytle Signs, is requesting design review sign approval to construct one building wall sign for Idaho Hand and Wrist. The site is located on the north side West Chinden Boulevard approximately 465-feet west of North Meridian Road at 3357 West Bavaria Street within Castlebury West Business Park. (WEV) F. EXT-08-11 —Final Plat Extension of Time for Lakemoor Subdivision No.3 (FP-04-06)—DMB Development,LLC.: DMB Development, LLC, represented by Dan Torfin, is requesting a one(1)year extension of time for the final plat approval for Lakemoor Subdivision No. 3, a 52-lot(46-buildable, 6-common) residential subdivision. The 12.35-acre subdivision is located on the east side of S. Eagle Road approximately one-half mile north of Chinden Boulevard. (WEV) Semanko moves to move the Claims Against the City to Item #9C New Business. Seconded by Huffaker. ALL AYES: MOTION CARRIES Huffaker moves to approve the Amended Consent Agenda,Items#B and #E. Seconded by Semanko. AYE: ALL AYES: MOTION CARRIES SC. Minutes of October 11,2011. Semanko: I have some changes: Page 2-B, add to the General Discussion my comments as to why I had a Nay vote; Page 4-5A, add my comments as to why I Abstained; and Page 5, 2°d sentence should read: "Discussion on Arbor Ridge". Semanko moves to approve the Minutes of October 11,2011 with the changes mentioned tonight. Seconded by Huffaker. Huffaker: AYE; Shoushtarian: AYE; Semanko: AYE; Grasser: AYE: ALL AYES: MOTION CARRIES Page 2 K:\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-10-25-I lmin.doe 5D. Cooperative Agreement between Valley Regional Transit and City of Eagle for Annual Dues and Service Contribution FY 2011-2012. Semanko: I would request that staff contact VRT to find out who is participating in the Hwy 44 bus route. Also, VRT was doing a survey on transit needs for the citizens of the City and 1 would like to have the results of that survey. Semanko moves to approve the Cooperative Agreement between Valley Regional Transit and City of Eagle for Annual Dues and Service Contribution FY 2011-2012. Seconded by Shoushtarian. Huffaker: AYE; Shoushtarian: AYE; Semanko: AYE; Grasser: AYE: ALL AYES: MOTION CARRIES Semanko moves to move Item #9B to just before the public hearings and that Item #7B be moved to Item #9D. Seconded by Shoushtarian. ALL AYES: MOTION CARRIES 5F. EXT-08-11 —Final Plat Extension of Time for Lakemoor Subdivision No.3 (FP-04-06)— DMB Development,LLC. Shoushtarian: I would just like to get some general information on where they are headed. Dan Torfin, representing Lakemoor, we feel lucky that we have had some success over the last few years. Phase 11I did get a time extension that expires this December. We have the approvals from ACHD and the other agencies and we are ready to move forward but we are going to spill over to next year and that is why we need the extension. Discussion on the amenities that have been built to date. General discussion. General discussion on the time line for Beagle Park to be developed. Shoushtarian moves to approve EXT-08-11 —Final Plat Extension of Time for Lakemoor Subdivision No.3 (FP-04-06)—DMB Development,LLC. Seconded by Grasser. ALL AYES: MOTION CARRIES 6. PROCLAMATIONS & RESOLUTIONS: [est. 7:101 A. Nonprofit Week Proclamation: A proclamation declaring November 13-19, 2011 as Idaho Nonprofit Week. (JDR) Mayor introduces the issue. Huffaker moves to authorize the Mayor to issue this proclamation, the Nonprofit Week Proclamation, a proclamation declaring November 13-19, 2011 as Idaho Nonprofit Week. Seconded by Grasser. ALL AYES: MOTION CARRIES B. Pancreatic Cancer Awareness Month Proclamation: A proclamation declaring November as Pancreatic Cancer Awareness in the City of Eagle. (JDR) Mayor introduces the issue. Huffaker authorize the Mayor to sign the Pancreatic Cancer Awareness Month Proclamation,a proclamation declaring November as Pancreatic Cancer Awareness in the City of Eagle. Seconded by Grasser. ALL AYES: MOTION CARRIES C. Resolution No. 11-27: A Resolution Of The City Council Of The City Of Eagle,Ada County, Idaho, Establishing An Expense Reimbursement Policy, And Providing An Effective Date. (SKB) Mayor introduces the issue. Page 3 K:\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-10-25-I lmin.doc City Attorney Buxton: I just received Boise City's policy today. We looked at the policy that the State of Idaho utilizes for all of its departments and all of its self governing boards where they use a lot of different types of public funds. We looked at other cities that had more complicated policies. Most small cities in the state do not have a policy with regards to alcohol. I tried to make this understandable and uncomplicated and contradictory. Provides an overview of the draft policy in regards to alcohol beverages. General discussion. Huffaker moves to continue Resolution No. 11-27 to the November 1,2011 City Council meeting and in the interim we adopt the draft we have before us without changes until the next week. Discussion. Huffaker amends his motion to move Resolution No. 11-27 to the November 1,2011 City Council meeting. Seconded by Semanko. ALL AYES: MOTION CARRIES 7. UNFINISHED BUSINESS: A. Appointments to the Urban Renewal Agency: The Mayor is requesting Council confirmation of the appointment of three members to the Urban Renewal Agency. Jason Haas and Walter Lindgren are being appointed for terms that will expire in October 2014. Nathan Paddock is being appointed for a term that will expire in October of 2013. This item was continued from the September 7, 2011 meeting. [est. 7:30] Mayor introduces the issue. General discussion. Huffaker moves to confirm the appointments of the following three members to the Urban Renewal Agency: Jason Haas and Walter Lindgren for terms that will expire in October 2014 and Nathan Paddock for a term that will expire in October of 2013. Seconded by Semanko. ALL AYES: MOTION CARRIES B. Sustainability discussion: (AS) This item was continued from the October 11, 2011 meeting. [est. 7:45] Moved to Item#9D. C. Discussion of Ada-Eagle Sports Complex Skateboard Park facility rules and regulations. (JDR)[est. 7:50] Mayor introduces the issue. Rob Green, 7489 N. Misty Cove, we did have a town meeting last month. All of the attendees were in favor of sharing the park with bikes and skateboards. A number of us parents have been up to the park and the park is currently being used as a mixed use park and everyone seems to be getting along. I can't see any damages that have been caused by the bikes. Discussion on the posted rules. General discussion. Chief Borgquist: I agree that we should just remove bicycles from the sign. 1 want to keep it as simple as possible. The kids are getting along. Violations will happen no matter what it says about bikes or skateboards. General discussion. Huffaker moves that we either adjust or remove the sign whichever is the simplest thing to do to remove the restriction of bicycles and mixed use in the bowl at the park. Discussion. Seconded by Shoushtarian. Discussion. ALL AYES: MOTION CARRIES D. Review and final approval of Garden City Greenbelt letter: (JDR)[est. 8:10] Page 4 K\COUNCILUNINUTES\Temporary Minutes Work Area Area\CC-IO.25-I 1min.doc Mayor introduces the issue. General discussion. Semanko moves to send the letter with signatures by Council. Seconded by Shoushtarian. ALL AYES: MOTION CARRIES 9B. EXT-05-11 —Preliminary Plat Extension of Time for The Lofts At Eagle River Subdivision (PP-15-06)—Sea 2 Sea,LLC.: Sea 2 Sea, LLC, represented by Shawn Nickel with SLN Planning, is requesting a two(2)year extension of time for the preliminary plat approval for The Lofts at Eagle River, an 8 lot(7-residential, 1-common), 214 unit multi-family condominium/townhouse housing development. The 25.37-acre site is located on the south side of East Riverside Drive approximately 1500 feet west of the intersection of East Riverside Drive and State Highway 44 at 827 East Riverside Drive. (WEV)[est. 10:40] Mayor introduces the issue. Shawn Nickel provides an overview of the applicants request for a two year extension of time. General discussion. Semanko moves to approve EXT-05-11 —Preliminary Plat Extension of Time for The Lofts At Eagle River Subdivision (PP-15-06). Seconded by Huffaker. Discussion. Semanko amends the motion to include the standard and site conditions and the extension date would be until June 18, 2012 and to add a condition that the outstanding balance on invoices due on attorney's and engineering reviews and that said invoices be paid within 30 days. Discussion. Second concurs. ALL AYES: MOTION CARRIES 8. PUBLIC HEARINGS: A. CU-03-11 —Childcare Facility (Daycare Center)—Just Like Home Family Daycare, LLC.: Just Like Home Family Daycare, LLC, represented by Amanda Collins, is requesting conditional use permit approval to operate a childcare facility(daycare center). The 0.47-acre site is located on the south side of West State Street approximately 100-feet west of South Kestrel Place at 333 West State Street. (WEV)lest. 8:25] Mayor introduces the issue. Amanda Collins, applicant, I am a small business owner in Eagle. I have been working out of my home running a child care facility called Collins Family Day Care for the past three years. I am a fully licensed and certified child care facility and I have 27 enrolled in my child care and work with 15 different families. I am looking too located in downtown Eagle. I found an ideal building at 333 W. State Street and in July I started the conditional use permit approval process. No modifications are needed for this building to start my business. I received no objections at my neighborhood meeting. I am asking your approval of my application. General discussion. Zoning Administrator Vaughan provides an overview of the request for a conditional use permit. Discusses the parking issue. Mayor opens the Public Hearing Kariann Fallow: You can be sure that she will treat this business in downtown Eagle as carefully and with the same level of attention that she does her clients. She will do our city proud. I encourage you to approve this application. Eric Pederson, 96 N. Edgewood Lane, I would like to know that as City Council members and the Mayor are you representatives of the people. I don't think she needs any ones permission for her to start this business. Where does the City get their authority? General discussion. Page 5 K:\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-10-25-11 min.doc Mayor closes the Public Hearing Grasser moves to approve CU-03-11 — Childcare Facility (Daycare Center) — Just Like Home Family Daycare. Seconded by Shoushtarian. ALL AYES: MOTION CARRIES....... Mayor calls a recess at 7:50 p.m. Mayor reconvenes at 8:05 p.m. B. Spring Valley Idaho (formerly known as M3 Eagle), represented by Gerry Robbins, filed a petition with the City of Eagle requesting the formation of a Community Infrastructure District(CID): Spring Valley Idaho(formerly known as M3 Eagle),represented by Gerry Robbins, has submitted preliminary formation documents requesting the formation of a Community Infrastructure District pursuant to Idaho Code Chapter 50, Section 31. The 5,610 acre site is located within the incorporated City limits of the City of Eagle generally north of Homer Road between State Highway 16 and Willow Creek Road. . The City Council will consider the formation of the district, the suitability of the district plan and the membership of the District Board. The request is more specifically described in the preliminary formation documents on file at the City of Eagle, the Eagle Public Library, and on the City's website at www.cityofeagle.org. (NBS) This item was continued from the October 11, 2011 meeting. [est. 9:001 Mayor introduces the issue. Planner Baird-Spencer: Provides an overview of the petition. City Attorney Buxton: Provides an overview of the formation of the CID and the petition. The CID formation would also include the ability for the District itself, which is limited to that specific area, to levy a tax allowed by the act on that area only. It would not be an additional tax across the whole City, only on the CID area. That tax would be used for the operation of the CID. The Mayor would be appointing three Council Members to that board upon its formation. Discussion on the public hearing procedures. Joann Butler, representing the petitioner, discusses the petition and formation of the CID and the statute that gives the City the authority to form this district. General discussion on the CID. Carter Froelich, addresses the questions that were previously proposed by the Council. Displays overheads and discusses the same. Mayor opens the Public Hearing C.J. Petrovskey, 4831 Willow Creek Road, I am here representing NAFCA tonight. I have four basic points. My message on this CID is proceed cautiously, get current information and have it independently vetted before you approve the CID formation, make sure the CID board has clear authority and worry about your future Spring Valley citizens. Discusses her 4 points. Distributes a copy of her testimony to the Council. Lynn Purvis, 3939 Brookside Lane, I'm never in favor of someone living beyond their means. I think the developer in fact is living beyond their means they should revise their dreams. I don't know if there is a clause for renegotiation. I would like you to be sure the agreement is balanced. Steve Purvis, 3939 Brookside Lane, I have some concerns about the formation of a CID. I am here to ask you to not make a decision on the CID until additional information is obtained and due diligence is completed in the following 4 areas: review of updated financial forecast, assurance is obtained that the necessary financial commitment has been obtained to complete the project, have preliminary agreements been reached by the entities who will receive the public assets, and changes are made in the resolutions that appear to either limit the power and authority Page 6 K.\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-10-25-I1min.doc of the district board or are inconsistent with state statute. Further discussion on the 4 points. Distributes a copy of his testimony to the Council. General discussion. Allen Smith, see tape Gary Smith 258 S. Langer Way, Star, I feel that the CID will move forward. I am here to speak in favor of a tool that will support development along Highway 16. John Luque, 809 Lemp, Boise, I am here in support of M3 and we are fortunate to have a developer with the experience to move this forward. Foad Roghani, 175 S. Rosebud Lane, I have a number of concerns which were already brought up by others. Discussion on the definition of a community. Discussion on three City Council Members on the Board. I am always in favor of using bonds but you have to make sure there is no liability to the City of Eagle. Lynne Sedlacek, 1200 Hereford Drive, we may have come too far to go back on the CID. I'm concerned about a lot of this falling back to city staff. A lot of the documents in the agreement are to be on file with city clerk. Discussion on bond council. There is a lot here, please go slow, the devil is in the details. You need to very careful that you are calling the shots. The risk always has to lay with the developer. John Portman, I support the previous testimony. What is placed before you is a very complicated document. What is the hurry to move forward without knowing the pros and cons? This is a huge decision to make. What monies has M3 put forth? Why the need for a CID? Why doesn't M3 use their own financials backers to develop this project? Why isn't there a third party evaluator? There will be a change in the City Council and why not allow the new City Council make the decision? City Attorney Buxton: When you get a petition for a CID you have to have a public hearing scheduled in 90 days. I have told the applicant that the Development Agreement needs more work. I am a very conservative Bond Counsel. The Development Agreement does have certain issues to it that the Council will need to discuss. General discussion. Gerry Robbins, M3 Companies, we heard a lot of good testimony tonight. We are not doing to do a rebuttal tonight but would like to do this at the next meeting. All that we are doing now is asking for the district to be formed. We are not considering issuing bonds at this time. This will be done on a phase basis. We can't by statute finance 100% of the eligible infrastructure through bonds. The City is not liable for any risk with the CID. We will present some testimony and response to the comments. General discussion. Huffaker moves to continue Spring Valley Idaho petition for the formation of a Community Infrastructure District (CID) to the November 17, 2011 and that we keep the Public Hearing open and that staff make whatever efforts are necessary to get the folks we would like to hear from to that meeting; this also includes continuing Item #9A. Seconded by Semanko. ALL AYES: MOTION CARRIES 9. NEW BUSINESS: A. Resolution 11-28: Resolution Of The Mayor And Council Of The City Of Eagle, Idaho To Form A Community Infrastructure District, Authorize The Levy Of Taxes, Appoint The District Board And Provide An Effective Date. (SEB)lest. 10:30] Continued to the November 17, 2011 City Council by the above motion. Page 7 K:\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-10-25-I I min.doc B. EXT-05-11 —Preliminary Plat Extension of Time for The Lofts At Eagle River Subdivision (PP-15-06)—Sea 2 Sea,LLC.: Sea 2 Sea, LLC, represented by Shawn Nickel with SLN Planning, is requesting a two (2)year extension of time for the preliminary plat approval for The Lofts at Eagle River, an 8 lot(7-residential, 1-common), 214 unit multi-family condominium/townhouse housing development. The 25.37-acre site is located on the south side of East Riverside Drive approximately 1500 feet west of the intersection of East Riverside Drive and State Highway 44 at 827 East Riverside Drive. (WEV)[est. 10:40] Moved by motion to before the Public Hearings. C. Claims Against the City: There are no claims to be approved tonight. D. Sustainability discussion: (AS) This item was continued from the October 11, 2011 meeting. [est. 7:45] Mayor introduces the issue. Shoushtarian: I have talked to Nichole and we are going to put a proposal together to bring to the Council for discussion. General discussion. Shoushtarian moves to continue the Sustainability discussion to a date uncertain. Seconded by Huffaker. ALL AYES: MOTION CARRIES 10. EXECUTIVE SESSION: A. Pending Litigation: I.C. 67-2345 (f) Mayor Reynolds introduces the issue. City Attorney: the executive would be on water rights. Huffaker moves to go into Executive Session in accordance with I.C. 67-2345(1) for the discussion on water rights. Seconded by Semanko. Huffaker: AYE; Shoushtarian: AYE; Semanko: AYE: Grasser: AYE: ALL AYES: MOTION CARRIES Council goes into Executive Session at 9:50 p.m. Council discusses water rights. Council leaves Executive Session at 10:00 p.m. 11. ADJOURNMENT: Huffaker moves to adjourn. Seconded by Shoushtarian. ALL AYES: MOTION CARRIES... Hearing no further business, the Council meeting adjourned at 10:00 p.m. Respectfully submitted: �.l i 1/1111 SHAR• ' K. BERGMANN CITY CLERK/TREASURER Page 8 K:A000NCILAMINUTES\Temporary Minutes Work AreaACC-10-25-1 Imin.doe APPROVED: //% . J• ES D. REYNOLDS MAYOR AN AUDIO RECORDING OF THIS MEETING IS AVAILABLE AT CITY HALL UPON REQUEST. Page 9 K:\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-10-25-11min doe EAGLE CITY COUNCIL PUBLIC HEARING SIGN-UP Spring Valley Idaho (formerly known as M3 Ea21e), represented by Gerry Robbins, filed a petition with the City of Eagle reauesting the formation of a Community Infrastructure District (CID) October 25, 2011 NAME Ntke( u2L.(1 ADDRESS / gqc / Cc/ f ec,c_ 2eco ek f)& LA-) r 7 1_ ) _J?- « L 3c/39-- 3� 3� G)4,7 7c 7�. S L cn) c_f R Uhl >09 I_o, 1/1 TESTIFY PRO/ CON or YES/NO NEUTRAL Pakd 5/q 416 Cr N �l Irl C'" -i0/1/4 -16 P.,t,b/OV?'1 !,L`I til .CY 4.--e14-.A IV (2-)-- •J Qo 7 EAGLE CITY COUNCIL PUBLIC HEARING SIGN-UP Spring Valley Idaho (formerly known as M3 Eagle), represented by Gerry Robbins, filed a Petition with the City of Eagle requesting the formation of a Community Infrastructure District (CID) October 25, 2011 TESTIFY PRO/ CON or NAME ADDRESS YES/NO NEUTRAL 75 Sfkbuct L n. yes Dcf E'hcLr i J I� lj 11,/ ` 16-( r vn /V: A /r 5 I •r) /✓/5 L -d 11/?/L-) (_ 'S EAGLE CITY COUNCIL PUBLIC HEARING SIGN-UP CU -03-11 — Childcare Facility (Daycare Center) — Just Like Home Family Daycare, LLC. October 25, 2011 TESTIFY PRO/ CON or NAME ADDRESS YES/NO NEUTRAL PURCHASING CARD PROGRAM I. INTRODUCTION Document Type: Regulation Number: B 8.04a Effective: 9-11-07 Revised: 3-15-10 Legal References: The Purchasing Card is issued to an individual City employee or for a specific department function on approval by the Department Director and City Chief Finance Officer or designee. The card is one of several purchasing options used by the City. The card's advantage is its efficient and effective method of purchasing goods and services. Employees issued a card in their name will sign a use form agreeing to comply with all card program rules and regulations, sign the back of the card issued immediately on receipt, and keep it in a secure place. An employee card is used only by the employee it is issued to and that is named on the card front. A card issued for a specific department function will have a list of authorized users maintained by the department. The card custodian is responsible for tracking all users, card activity, and reporting purchases monthly to Finance and Administration. A purchasing card is the property of the City. Its use is limited to the types of transactions outlined in this policy and a card may be rescinded at any time. Card users will keep receipts and a current record of all transactions to protect the user and City and to maintain internal purchasing controls essential for the success of the Purchasing Card program. II. CARDHOLDER ELIGIBILITY A cardholder must: A. be a City employee; B. receive the approval of their Department Director; C. be assigned a Department Liaison by their Department Director; and, D. attend a training session in card use and policies and procedures. The employee also must sign the Cardholder Agreement receipt section in the presence of the Department Liaison or Department Director. The Cardholder Agreement is a statement that the cardholder understands the program's intent and will comply with all program and City policies and procedures governing expenditure of City funds. III. PURCHASING PARAMETERS A purchasing card is an easy and fast way to make limited dollar amount point-of- sale purchases, pay for authorized travel, and place orders with vendors by telephone, mail, fax, or electronically. Purchasing authority is delegated to a department and, through the card, to designated department employees. When a purchase is requested from a vendor, the vendor electronically submits the transaction for verification through the card processing system. The transaction request is measured against purchasing parameters pre-set by the City and immediately approved or declined. The purchasing parameters per cardholder are: A. number of transactions allowed per day not to exceed 10; B. number of transactions allowed per month not to exceed 300; C. single purchase limit of $250; D. spending limit per month $500; and, E. approved vendor commodity code. Spending parameters can be adjusted by demonstrated need. The maximum limits per card are: A. $5,000 single purchase limit B. $10,000 monthly purchase limit C. The Purchasing Card issued to the Purchasing Agent will have limiting parameters In special circumstances in which a strong business need is identified, a department director may request a higher purchasing card limit by sending the following to Financial Services: A. A statement summarizing the business need for a higher limit. B. A complete, updated and signed purchasing card application indicating the requested limit increase. The electronic authorization system also allows Finance and Administration to monitor and prepare reports on transactions daily. IV. PROGRAM BENEFITS The program benefits cardholders, the City, and vendors. Cardholders can purchase supplies and services directly from vendors without first obtaining a purchase order. It streamlines purchasing by reducing the workload, paperwork, and processing costs. Supplies and services bought with a purchasing card are available immediately. The City has a controlled, efficient purchasing system and reduces time and costs required to process requisitions, purchase orders, invoices, and checks. Services and supplies are available for immediate use. The built-in tracking system makes the program easy to monitor and control. Vendors accepting the card receive payment within 72 hours. They do not have to process purchase orders or send an invoice to the City. V. RESPONSIBILITIES A. Parties Involved Card Issuer A contracted bank issues the card used by the City, provides the electronic authorization and transaction service, and bills the City for purchases. B. Cardholder The cardholder is a City employee approved by their Department Director to use a purchasing card for authorized purchases. Cardholders are still subject to all purchase approvals and/or pre -approvals in City policies and procedures. C. Department Director The Department Director is responsible for the card program in the department. The Department Director approves issuing a card to an employee, which delegates purchasing authority to the cardholder; assigns a Department Liaison; designates a default accounting code for card purchases; and submits card applications to Finance and Administration. D. Department Liaison The Department Liaison is the department employee designated by the Department Director to be responsible for administering the program within the department. The Liaison reviews and processes transactions of cardholders and card users, ensuring the transactions are legitimate City business expenses and are conducted according to City policies and procedures. Interdepartmental Business Team's (IBT) Purchasing Audit Subcommittee The City Interdepartmental Business Team's (IBT) Purchasing Audit Subcommittee conducts monthly reviews of card program transactions. Vendor The Vendor is a seller of supplies or services to the City that accepts a purchasing card for transactions. Department Liaison Responsibility Each Department Director will designate one or more Department Liaisons for the department and assign a Department Liaison for each card assigned to the department. A Department Liaison will receive training in care use and applicable policies and procedures. Department Liaison responsibilities include: • Review and reconcile vendor receipts and monthly transaction statements submitted by cardholders. • Retain all receipts and statements for audit. • Review and reconcile the monthly department transaction report from Finance and Administration. • Submit one monthly voucher, including all receipts, to Finance and Administration for payment. • Pay charges due on the statement. Late payments that result in a late fee assessed by the bank are charged to the responsible department. • Resolve disputes with vendors and/or the bank not resolved by the cardholder. • Notify Finance and Administration within 3 to 5 days of unresolved disputes, noting the reason for the dispute. • Assist cardholders with erroneous transaction declines by vendors and emergency transactions. • Notify Finance and Administration of lost or stolen cards. • Notify Finance and Administration of employee transfers, terminations, and/or card revocations, requesting cancellation of the card. • Collect cancelled cards and forward them to the Purchasing Card Auditor. • Notify Finance and Administration of requests by vendors to accept City purchase cards. • Identify and notify Finance and Administration of transactions which require submitting use tax to the State Department of Revenue. • Request Finance and Administration to change default accounting codes for individual transactions by updating default codes on the monthly department reports. Requests will be submitted ahead of the monthly cut off date, the 10th of each month. When the 10th is on a weekend or holiday, the submission is due the normal business day prior to the 10th. • Ensure fixed asset requirements are forwarded to Finance and Administration for action. Finance and Administration Responsibility Finance and Administration is responsible for monitoring the purchasing card program. Finance and Administration is responsible for ensuring the appropriate use of purchasing cards by reviewing transaction records and data. The City Interdepartmental Business Team's (IBT) Purchasing Audit Subcommittee also conducts monthly reviews of card program transactions. Finance and Administration responsibilities include: • Acting as sole liaison to the contracted bank. All contact with the bank for card set up, maintenance, and closure is by Finance and Administration. The exception is cardholder contact to report a lost or stolen card. • Reviewing cardholder applications approved by departments for completeness. • Submitting card applications to the bank and receiving new cards. • Training cardholders and Department Liaisons on card use and policies and procedures before releasing cards. • Ensuring cardholder signs Cardholder Agreement and understands its terms. • Resolving disputes with vendors and/or the bank not resolved by cardholder or Department Liaison. • Initiating default accounting code changes requested by Department Liaisons and approved by Department Directors. • Securing revoked cards and submitting information to the bank. • Ensuring lost and/or stolen cards are cancelled and use is blocked by the bank. • Receiving and reviewing monthly the bank statement. • Distributing monthly reports to Department Liaisons. • Reconciling the bank statement to the electronic file data and to the transaction totals posted to the City accounting system. • Maintaining all documentation on card usage including, but not limited to, applications, cardholder agreements, billing statements, account reconciliation statements, correspondence, records, reports, and related documents. • Notifying Department Liaisons of cutoff dates for approvals and default code changes. • Preparing accruals for transactions requiring submission of use tax to the Department of Revenue. • Assisting Department Liaisons with erroneous transaction declines and emergency transactions. • Forwarding vendor set up requests to the bank. Cardholder Responsibility In accepting a card, the employee agrees to use it for legitimate City business only and to adhere to all applicable policies and procedures. Misuse of the card may result in the card being revoked and subjects the employee to disciplinary action as stated in City policies and procedures up to and including termination for cause. The cardholder is personally accountable for all card transactions. The City requires reimbursement for the total amount of purchases if the card is used for personal or unauthorized purchases. The card is a corporate charge card and use by the cardholder does not affect the user's personal credit status. The cardholder specifically agrees to: • Use the card for legitimate City business only. • Sign the card and keep it in a secure place. Card security also means the card account number will be guarded. • Not allow other persons to use the card. • Not use the card to obtain cash. • Not use the card for personal or unauthorized purposes. • Not use the card to purchase alcoholic beverages or any substance, material, or service that violates the law or any City regulation, policy, or procedure. • Not use the card in categories of purchases specified in the Listing of Blocked Vendors. • Report any improper or unauthorized use of a card immediately to Finance and Administration. • Adhere to single item and total threshold purchase limits and restrictions. Purchases cannot be split between cards, timed, or phased to circumvent the spending limit. • Obtain receipts, sales slips, and card slips for all transactions and provide them to the Department Liaison on request. • Reconcile the receipts to the card's monthly statement and provide it in a timely manner to the Department Liaison. • Provide information on all transactions upon request. • Notify the Department Liaison if the default accounting code is changed on a transaction. • Attempt to resolve disputes or billing errors with the vendor. If the disputed transaction is not resolved with the vendor, the cardholder may be required to fax the Dispute Form to the bank. • Ensure the appropriate credit for the disputed transaction appears in a subsequent statement. • Not accept cash instead of a credit to resolve a disputed transaction. • Report erroneous or emergency transactions to the Department Liaison during normal business hours. • Immediately report a lost or stolen card to the bank following the procedures established by the issuer. Notification can be done 24 hours a day, 365 days a year. • Immediately notify the Department Liaison of a lost or stolen card. Notification will be done immediately during normal business hours. • Surrender the card to the Department Liaison on transferring to another City department or terminating employment with the City. • Contact the Department Liaison if a vendor does not accept the City purchasing card. • Refer the purchase of fixed assets to Finance and Administration for action. Card Use Maintenance and Closure Finance and Administration is required to close a card account if the employee cardholder transfers to a different Department; transfers to a job that does not require a purchasing card; terminates employment with the City; fails to meet the deadline in reconciling receipts to the card's monthly statement and providing it to the Department Liaison more than once in a 12 -month period; violates policies and procedures governing purchasing card use. Return The purchasing card must be returned to the cardholder's Department Liaison immediately upon closure for any reason. Transactions The purchasing card is used in the same manner as a personal credit card to purchase supplies and services. It is used for direct point-of-sale purchases and for transactions by telephone, fax, mail, and electronically. When making a transaction the cardholder will: • Determine if the purchase is within the card parameters of dollar amount, number of transactions allowed per day (currently set at 10) and per month; single purchase limit; spending limit per month; and approved vendor commodity code. • Ask the vendor for any available discounts. • Obtain a sales, charge, transaction, shipping, or other receipt to reconcile to the monthly statement. • Advise the vendor for mail, fax, telephone, or electronic purchases that the delivery will be rejected unless it includes the required charge slip, receipt, and packing slip. • Maintain a transaction log for mail, fax, telephone, or electronic purchases, including a copy of the order blank or product description, for submission to the Department Liaison. • Notify the Department Liaison if the purchase accounting code is different than the default code. Declines A vendor processing a purchase may receive a message declining the transaction. If the reason for the decline is unclear, contact the bank at the telephone number on the back of the card. If the decline is in error, the cardholder should immediately contact Finance and Administration for assistance. If the purchase is being made outside normal business hours, the cardholder must find an alternate payment method or terminate the purchase and contact Finance and Administration during normal business hours. Emergency Transactions Emergency transactions exceeding the pre-set purchasing parameters may be declined. The cardholder should contact Finance and Administration for assistance. Credits The vendor should issue a credit for a purchase return or on a transaction that is cancelled after the charge has been recorded to the card account. The cardholder should obtain a receipt or slip recording the credit to reconcile against the monthly statement. Under no circumstances should the cardholder accept cash instead of an account credit. Billing Errors and Disputes The cardholder should first try to resolve billing errors and disputes with the vendor. Most disputes will be resolved by the vendor issuing a credit to the card account. If the dispute cannot be resolved at the vendor level, the cardholder should contact the bank and follow the bank's resolution procedures. The bank may require the cardholder to fill out and submit a Dispute Form to resolve the issue. For issues not resolved at either of the above levels, the cardholder should contact their Department Liaison for assistance. Sales and Use Tax The City is exempt from sales tax by Idaho Code. The City tax exempt ID number is embossed on the face of the purchasing card. If a vendor requests verification of the City's tax exempt status, the cardholder must provide the vendor with a copy of the State of Idaho Department of Taxation letter authorizing the City's exemption. Audits The Department Liaison, Finance and Administration, and IBT Purchasing Audit Subcommittee perform periodic audits to determine compliance with the program regulations, City policies and procedures, and required documentation. Customer Service The bank customer service is available 24 hours a day, 365 days a year. The customer service telephone number is on the back of each card. Cardholders must contact customer service to report a lost or stolen card, in resolving disputes and/or billing errors, and to access account information. For other issues, the cardholder should contact their Department Liaison. Vendor Participation A vendor frequently used by the City that does not accept the City purchasing card should be encouraged to participate in the program. The cardholder should contact their Department Liaison with the information so Finance and Administration can recruit the vendor into the program. Violations Violations of purchasing card policies and procedures and/or misuse of the card carry a variety of consequences to the cardholder from card cancellation to termination of the employee. All violations are to be reported by the cardholder's Department Director to Finance and Administration. The Department Director will initiate the appropriate disciplinary action. A Department Director may request the cancellation of a card account and the cardholder's purchasing authority at any time. Personal Purchases Any personal purchase or transaction made by a cardholder on a City purchasing card account is a violation. Any item or service not purchased for the sole use of and ownership by the City is considered a personal purchase. Personal purchases made with the intent of reimbursing the City for the expense are a violation. Cash Transactions Purchasing cards cannot be used to obtain cash. Cards cannot be used to obtain cash in a addition to a purchase, obtain a cash refund on a transaction, purchase travelers checks or money orders, perform an ATM transaction, or for gambling. Prohibited Purchases The purchase of certain specific items or services with a purchasing card is prohibited: Alcoholic beverages; fuel for a personal or motor pool vehicle (unless out of the area); computer software, hardware, and accessories; capital items exceeding the purchase order threshold in value; and items already under City purchasing contract such as office supplies. Authorized Information Technology Department staff may use a purchasing card to purchase computer hardware, software, and accessories not exceeding $5000. Transaction Records Failure to obtain or retain receipts, sales slips, card slips, and/or packing slips and other records documenting transactions that are required to reconcile to the cardholder's monthly statement is a violation. Failure to reconcile, complete, sign, and submit the monthly transaction log and documentation to the Department Liaison by the due date more than once in a 12 -month period is a violation. Consequences Reimbursement to the City for any personal purchases must be made immediately and the card will be revoked. Policy violations will be investigated and could result in disciplinary action up to and including termination. Disciplinary action will be determined by the employee's Department Director. All violation reports, investigations, and disciplinary actions will be reported by the Department Director to Finance and Administration, Human Resources Department, and chair of the IBT Purchasing Audit Subcommittee. Document Type: Number: Effective: Revised: Legal References: TRAVEL I. INTRODUCTION Regulation 4.75a 05-01-06 09-05-08 01-22-10 29 C.F.R. § 785.34 29 C.F.R. § 785.35 29 C.F.R. § 785.37 29 C.F.R. § 785.38 29 C.F.R. § 785.39 29 C.F.R. § 785.40 29 C.F.R. § 785.41 I.C. § 49-117(16) All employees who travel and incur business expenses on behalf of the City as a result of such travel, as well as those responsible for the approval of these expenses are expected to use prudence, discretion, good judgment and the application of these regulations to assist in maintaining control over travel expenses. The term "travel" refers to a trip, voyage, or journey. Transitioning between home and work is not considered travel for the purpose of this regulation. II. REQUIREMENTS The following is a list of requirements all employees shall follow when traveling: A. Employees shall have an approved Employee Travel Authorization form. B. Travel outside the continental United States requires City Council approval before arrangements are made. C. The use of City owned vehicles should have high priority over the use of private vehicles. The cost of transportation by private conveyance is reimbursed at the prevailing City rate, using the shortest distance on a road map or mileage chart or by odometer readings. D. If private conveyance is used, liability insurance in the amount required by Idaho Code § 49-117(16) shall be provided. Employees shall have current vehicle insurance and a valid driver's license when using a private vehicle for City business. The employee's insurance is considered by State statute to be primary before the City's insurance. If an employee is involved in an accident and does not have a valid driver's license and insurance the City will disclaim any liability and the employee will be personally liable. E. Reimbursement is intended for business travel expenses incurred on behalf of the City. The City of Boise shall not reimburse or pay the travel expenses of an employee's spouse or guest. 1 III. REIMBURSEMENTS A completed travel expense voucher shall be submitted to the Accounting Office within five (5) week days of return from the trip. This form is required for every trip even if the only City expense is the per diem meal allowance. Extra expense such as bridge tolls, garage and parking fees and like expenses shall be allowable in addition to the mileage reimbursement. The mode and route of travel shall be those allowable travel expenses actually incurred by the traveler by use of the most economical mode, from the standpoint of time, cost, and practicality. Cost should include overtime and compensatory time amounts that may accrue under the Fair Labor Standards Act for non-exempt employees. If public transportation is used, costs by common carrier including bus, train, rental car, and airlines are allowable. Receipts shall be submitted upon return. Reimbursable airline travel shall be limited to coach or other normally lowest cost passage. When for personal reasons a traveler elects to use his/her own transportation in lieu of public transportation or City vehicle, reimbursement will be limited to the lesser of: A. The IRS allowable reimbursement rate; or B. Otherwise allowable transportation costs, meals, lodging, and miscellaneous expenses which would have been incurred had the public transportation or City vehicle been used. Traveling employees who rent automobiles for City business purposes shall purchase liability, comprehensive, and collision coverage through the rental agency, unless the automobile rental amount is paid by means of a credit card that provides such rental car insurance coverage. In the event that the employee fails to buy insurance through the rental car company and is not insured through the credit card used to rent the vehicle, the employee shall be personally responsible for damages and other liability incurred through rental and use of the automobile. Subsistence allowance shall cover actual necessary expenditures for lodging, provided that receipts are presented. Food including tips and incidentals are paid on a per diem basis. Lodging will be reimbursed at actual cost not to exceed single rate for (1) person plus tax or the actual cost if a room is shared. An original receipt shall be submitted for settlement of the travel expense. At the time of reservation employees should identify themselves as City employees and ascertain whether or not a government rate is available. Meals and incidental expenses (M&IE) - The City uses a per diem method for meals of employees while on overnight out of town travel. The per diem amounts are consistent with IRS regulations which also require that if an employee receives a meal at nominal or no cost, the per diem shall be adjusted by deducting the appropriate amount. A continental breakfast such as muffins, bagels, fruit, and 2 coffee that is provided free of charge will not reduce the employee's meal allowance. For partial days away from home, the per diem amount should be adjusted using the meal breakdown chart and the employee's travel schedule. At no time may the adjusted amount be more than the per diem for the day. Please refer to the per diem rate and meal breakdown charts on the City's intranet. Reimbursement will be made for miscellaneous expenses such as taxis, shuttles, etc. Reimbursement for telephone calls pertaining to official City business will be paid. One brief call home will be paid per day. An item not specifically described or requests to exceed the above regulations as an allowable expense, but which are nevertheless necessary in the performance of official travel duties for the City, may be reimbursable upon submission of a receipt, a thorough explanation and approval by the employee's Department Director. IV. PROCEDURES To initiate the process, employees shall fill out an Employee Travel Authorization form found on the City's Inside web page and forward it for approval as follows: A. City Council requests are authorized by the Mayor and City Council. B. Department Director's requests are approved by the Mayor and City Council. C. The Mayor's and the Mayor's office staff requests are authorized by the City Council. D. All other employee requests are authorized by their Department Director or designee. Employees should check for additional authorization requirements required by their department. Arrangements for the trip can only be made after authorization is granted. Departments generally have individuals that are designated to make travel arrangements for all departmental travel. These individuals have been granted the right to use the City P -Card for travel arrangements. The P -Card is never to be used while actually traveling. Travel expenses can be paid in several ways. A. Expenses can be prepaid directly by use of a City P -Card or by regular City check. Again, note that use of the P -Card for travel is restricted to those designated to make centralized travel arrangements for the department. B. Employees can request a travel advance. The Travel Authorization Form is designed to be submitted with travel advance requests and shall be included but is not considered substantiation of the expense. Receipts shall be provided with the travel expense voucher within five (5) week days of return from the trip. It is the employee's responsibility to ensure that these requests are submitted in time to allow for the normal City payment approval cycle. C. Employees may be reimbursed for eligible expenses listed in this regulation that were not paid directly by the City nor included in a travel advance. To receive reimbursement, the City Travel Expense Form shall be submitted with 3 the request along with all required receipts. Receipts are required for all expenses except meal expenses, which are paid on a per diem basis. V. TRAVEL EXPENSE VOUCHER Within five (5) weekdays after return from the trip, a Travel Expense Form along with all receipts shall be submitted to the City's Accounting Office. Information on all expenses incurred, regardless of how they were paid, shall be included on this form in the space provided. If more money was advanced than necessary, the excess amount shall be deposited with the City. The cash receipt number and date shall be noted on the form. If on the other hand, insufficient funds were advanced, the Travel Expense Form with attached receipts is to be submitted with the payment voucher. VI. PAY FOR SAME DAY TRAVEL When City of Boise employees who normally work in one city are required to travel to and from another city in one day, not staying overnight, and the travel was performed for the City's benefit and at the City's request, all the travel time involved counts as time worked. Airline early arrival requirements will be paid based on the traveled airline's recommendation for the departing airport and count as travel time for same day travel regardless of the employee's regularly scheduled hours of work. Meal periods and travel time from the employee's home to the airport or other departure point shall not count as hours worked. When an employee drives himself/herself directly from his/her home, only the time spent driving that is in excess of the normal home to work commute shall count as hours worked. VII. PAY WHILE TRAVELING OVERNIGHT This section describes variations of travel and identifies what is considered hours worked under each circumstance. These provisions apply to both exempt and non- exempt employees. A. When employees must take a trip by car, train, or other public transportation that keeps them away from home overnight, all time spent in transit during the hours corresponding to the employees' regularly scheduled working hours shall be counted as time worked. Any time an employee spends in transit away from home outside his or her regular working hours as a passenger shall not be counted as hours worked. Meal periods and travel time from the employee's home to the airport or other departure point shall not count as hours worked. When an employee drives himself or herself directly from his or her home, only the time spent driving that is in excess of the normal home to work commute shall count as time worked. B. In transit travel hours on weekends and holidays that correspond to an employee's regularly scheduled working hours during their work week shall also be counted as time worked. C. Departments may not adjust an employee's regular work schedule to include or exclude travel hours that would not otherwise be considered hours worked. 4 D. When an employee's travel involves two or more time zones, the time zone from the point of first departure for that workday shall be used to determine whether the employee traveled during the regular working hours or during corresponding hours on a non -work day. E. If an employee is offered public transportation e.g. plane or bus, but requests permission to drive his or her car instead, the City may count as hours worked either the time spent driving the car or the time he or she would have had to count as hours worked during working hours if the employee had used the public transportation. F. Airline early arrival requirements will be paid based on the traveled airline's recommendation for the departing airport. Employees will only be compensated for the early arrival hour(s) that fall within the employee's regular work hours. Compensatory time and overtime requirements resulting from travel time will be processed in accordance with applicable laws and City policies and regulations. 5 (CJ Petrovsky, 4831 Willow Creek Road, Eagle, 83616) Mayor Reynolds and Council, I'm representing NACFA tonight. I'll get through these remarks as quickly as I can and should be able to finish in the time I have— that yielded plus 5 minutes for a group speaker. If I can't, I'd ask your indulgence in granting me a few more seconds to conclude. My message on this proposed CID is 4 basic points: 1 --proceed cautiously; 2 --get current information—and have it independently vetted --before you approve the CID formation; 3 --make sure the CID board has clear authority; and 4—worry about your future Spring Valley citizens. Point 1: Proceed cautiously and know exactly what you're getting into. This venture involves hundreds of millions in bonds and a 20-vear build -out window in an unknown future housing market. The District Development Agreement—the DDA --you're considering tonight is far from definitive. You're asked to adopt something that's very general and presumes a fully -recovered housing market. What's clear, as a simple google search will tell you, is that soundness of CID bonds is entirely dependent on project viability. You need a Plan B on the viability issue and you should consider worst case. Think Avimor...nearly 700 units entitled, about 30 houses built, 25 occupied. Developer gone. The water infrastructure is an example of what could occur. When will the City take ownership of that system? What happens if only 500 units sell in the first phase of a thousand and you own a system that's double the size you need at double the cost per lot that you anticipated? You have to provide water...and I believe you have to charge all your water customers the same rate. Will the 500 families living there see their assessments double? Or will the Spring Valley costs be spread across all City water customers...or what? Shouldn't the developer carry that risk and be responsible for the system until there's an occupancy rate that assures the bonds can be paid off? Why not delay title transfer until you're sure you won't find yourself in the middle of such a potential mess? Situations like that need to be specifically covered in the DDA. Point 2: Get current fiscal impact data for the project and get an independent analysis of all the cost assumptions before you adopt anything,. With my October 7th written comments, I included a copy of an independent review of the developer's 2007 fiscal impact analysis for this project that contained some clear warnings for the City. The City's economist, when talking about revenue to the City from Spring Valley said: "...the rate of development and the value of the residential properties are, in our view, too rosy..." Pretty prophetic, isn't it? And he ultimately concluded from his review that: "...regardless of the specifics that eventually emerge—this analysis raises enough red flags to suggest that at the very least the City Council needs more information before it can come to a reasonable conclusion about the net benefits of the project..." That's excellent advice to keep in mind as you consider this CID. To assure yourselves this project is ultimately viable, the City must require a full and complete update to the applicant's comprehensive, detailed 2007 fiscal impact analysis. 2007 data doesn't cut it. You need to assess this CID in terms of a radically different housing market. The County requires such complete revisions as a routine condition of approval for extensions to planned community entitlements. Once you've got an updated impact analysis, the City must again, as in 2007, have that analysis independently reviewed. At the same time, why not have an independent review of the $670 million in construction cost estimates on which the predicted assessment costs per unit are based? A number that, by the way, jumped 5 million dollars between the P&Z session in early September and the Council presentation on the 11th. Point 3: Give the CID board the tools and authority it needs to make good decisions by modifying the language of District Development Agreement. You certainly have plenty of time now, before you approve the CID, to get an update to the 2007 impact analysis, have it independently reviewed, and have the construction estimates looked over as well. That's the prudent course. But if for some reason you decide not to do that, at the very minimum require specifically in the DDA that the impact analysis be updated and vetted and the construction cost estimates be reviewed at least before the first bonds are issued. Equally importantly, modify the DDA to explicitly grant the board the authority to choose its own consultants and to clarify that bond issuances are the sole 7 province of the board, without liability or penalty. And finally, clarify in the DDA r and particularly in the resolution that no existing single family residence outside „v,, the CID will be assessed any charge for the CID improvements.AA_ArtrtitAf Point 4: Safeguard the interests of future Eagle citizens who buy in this development. How you handle this CID now will have big impacts on Eagle citizens down the road. The disclosure form proposed, which says only that assessment costs are estimated and could change, presumes a pretty sophisticated buyer to fully understand the potential risk. I've read the documents and I sat through both the September P&Z and the October 11th Council presentations but I can't get my arms around how much CID cost would be assigned to buyers. I thought it was about $6700 for a $400,000 house and then last time Councilman Huffaker asked a question and I think I heard that the estimate is maybe $12,000 for that house. Or was that $12,000 the total tax bill? 4fidaduce ow p What's my point? That this is a complicated and rarified financing mechanism, something average buyers are unlikely to comprehend. Please beef up the disclosure form to give buyers a few more clues about their possible exposure. If the applicant is confident of estimated assessments, it shouldn't be a problem to list each element of the total, including the debt service that Councilman Grasser asked about last time. And it should be equally possible to state the assumptions on which the estimates are predicated—things like the rate of build- out, the rate units are expected to be sold and occupied, and the amount of inflation priced in—or the fact that it's not. This disclosure statement issue, incidentally, circles back to that independent review of the construction estimates on which the predicted assessments are based. Buyers in this development would be well -served by assessment estimates that have been independently corroborated. If the independent reviewer and the developer can't agree on those construction numbers, an estimated range could be stated on the disclosure form, so buyers have better knowledge of their exposure. In closing , consider that this CID, given its massive scale and long build -out, is virgin territory. Take your time and be conservative and skeptical. This DDA, like the 2007 land use entitlements DA, becomes a contract once it's approved. There's little chance of changing it if circumstances change. Before you move ahead, make sure all your questions are thoroughly answered—and, more importantly, reflected clearly and specifically in the language of the DDA. Don't accept "We'll worry about that later." The applicant's not ready to issue bonds; you don't have to pass this tonight. And it's high-risk, complicated stuff. If I understood the City Attorney correctly at the P&Z session, the CID issue is decided by your simple up or down vote, without reference to property rights or "takings." So this time, you have some leverage that the 2007 Council did not have, for example, when land use and entitlements were the issue. You have the opportunity to have the DDA amended to your satisfaction. Your vigilance, particularly on the details of the DDA and the "what if?"s, is certainly warranted because, with 3 Council members running the CID district and the project within City limits, the City is going to own this process in the public mind... and the public, including Spring Valley residents, will be looking to the City for answers and help if things don't go according to plan. Thank you. M3/SPRING VALLEY CID EAGLE CITY COUNCIL DISCUSSION Steve Purvis 3939 Brookside Lane Brief background I AM HERE TO ASK YOU TO NOT MAKE A DECISION ON THE CID UNTIL ADDITIONAL INFORMATION IS OBTAINED AND DUE DILIGENCE IS COMPLETED IN THE FOLLOWING FOUR AREAS: 1. REVIEW OF UPDATED FINANCIAL FORECAST 2. ASSURANCE IS OBTAINED THAT THE NECESSARY FINANCIAL COMMITMENT HAS BEEN OBTAINED TO COMPLETE THE PROJECT 3. SINCE CID INFRASTRUCTURE MUST BE HELD BY A PUBLIC ENTITY, HAVE PRELIMINARY AGREEMENTS BEEN REACHED BY THOSE ENTITIES WHO WILL RECEIVE THE PUBLIC ASSETS (SEWER, WATER, OPEN SPACE, PARKS)? 4. CHANGES ARE MADE IN THE RESOLUTIONS THAT APPEAR TO EITHER LIMIT THE POWER AND AUTHORITY OF THE DISTRICT BOARD OR ARE INCONSISTENT WITH THE STATE STATUTE REVIEW OF UPDATED FINANCIAL FORECAST 1. WILL THE DEVELOPMENT BE SUCCESSFUL AND FULFILL THE EXPECTATIONS OF THE FUTURE BUSINESSES AND HOMEOWNERS? NOT BEING SUCCESSFUL COULD HAVE VERY NEGATIVE IMPACT ON PURCHASERS IN THE DEVELOPMENT (VALUES, SALEABITY, POTENTIALLY SIGNIFICANT PROPERTY TAX INCREASES FROM GO DEBT) 2. WILL THE PROJECT PROVIDE THE NECESSARY REVENUE TO MEET THE VERY SIGNIFICANT COST OF SIX SCHOOLS PROJECTED TO BE NEEDED ($159,000,000 IN 2007 FORECAST)? THE QUESTION HAS BEEN ASKED BY BOTH YOU AND THE P&Z COMMISSION ABOUT THE IMPACT OF CID DEBT ON OTHER ENTITIES' ABILITY TO ISSUE DEBT. THE IMPACT FROM CID DEBT WILL PROBABLY BE FROM THE IMPACT OF A 5 MIL PROPERTY TAX INCREASE IN A STATE AND REGION THAT IS VERY SENSITIVE ABOUT THE LEVEL AND POTENTIAL INCREASE IN PROPERTY TAX BILLS. ONE EXAMPLE HAS BEEN THE ELIMINATION BY THE STATE LEGISLATURE OF THE 4 MIL SCHOOL M & 0 LEVY AND A CORRESPONDING INCREASE IN THE SALES TAX RATE. ANOTHER IS THE RECENT FAILURE OF SCHOOL OVER -RIDE LEVIES. BASED UPON MY 2010 PROPERTY TAX BILL A 5 MIL CID LEVY WOULD BE MORE THAN TWICE WHAT I PRESENTLY PAY IN PROPERTY TAXES FOR SCHOOLS AND WOULD REPRESENT A 50% INCREASE IN THE TOTAL TAX. 3. WILL THE PROJECT PROVIDE THE NECESSARY REVENUE TO PAY FOR THE SERVICES TO BE PROVIDED (POLICE, FIRE, LIBRARY, ETC.)? ASSURANCE IS OBTAINED THAT THE NECESSARY FINANCIAL COMMITMENT HAS BEEN OBTAINED TO COMPLETE THE PROJECT TO MY KNOWLEDGE, SUCH ASSURANCE HAS NEVER BEEN PROVIDED IN THE FORM OF AN IRREVOCABLE LETTER OF CREDIT OR OTHER FORM, THAT FUNDS ARE AVAILABLE TO COMPLETE THE PROJECT. THE CID WILL PROVIDE APPROXIMATELY 30% OF THE REQUIRED CONSTRUCTION FUNDS. THAT LEAVES A HUGE ADDITIONAL AMOUNT TO BE OBTAINED IN A VERY DIFFICULT CREDIT MARKET. SINCE CID INFRASTRUCTURE MUST BE HELD BYA PUBLIC ENTITY, HAVE PRELIMINARY AGREEMENTS BEEN REACHED WITH THOSE ENTITIES WHO WILL RECEIVE THE PUBLIC ASSETS (SEWER, WATER, OPEN SPACE, PARKS, ETC)? IT WOULD SEEM REASONABLE TO KNOW THAT A DECISION HAS BEEN MADE AS TO WHOM THE VARIOUS PUBLIC ASSETS WILL BE TRANSFERRED FOR OPERATION/MAINTENANCE AND THAT THE REVENUE GENERATED WILL BE SUFFICIENT TO PRECLUDE A SUBSIDY BY OTHER RATE PAYORS, CITIZENS OF EAGLE OR OTHER JURISDICTIONS HAS BEEN DEALT WITH. CHANGES ARE MADE IN THE RESOLUTIONS THAT APPEAR TO EITHER LIMIT THE POWER AND AUTHORITY OF THE DISTRICT BOARD OR ARE INCONSISTENT WITH THE STATE STATUTE. WHILE THERE ARE OTHERS THAT I HAVE IDENTIFIED AND ARE WILLING TO SHARE WITH YOU, THE FOLLOWING THREE EXAMPLES ILLUSTRATE MY CONCERNS: 1. STATE STATUTES 50-3103 (4) AND 50-3105 (1) (F) PROVIDE FOR CONSULTANTS TO BE SELECTED BY THE DISTRICT BOARD. RESOLUTION 1128-D SECTION 1.2 PROVIDES THAT THE OWNER HAS THE AUTHORITY TO APPROVE THE CONSULTANTS AND THEY MUST BE CHOSEN FROM A LIST PROVIDED BY THE OWNER. THIS IS A GREAT EXAMPLE OF THE FOX GUARDING THE HEN HOUSE. 2. STATE STATUTE 50-3105 (M) PROVIDES THE DISTRICT BOARD WITH THE POWER TO BORROW MONEY. TO ME THIS MEANS THAT THE DISTRICT BOARD WILL ALSO DETERMINE HOW MUCH DEBT WILL BE ISSUED. RESOLUTION 1128-D SECTION 6.3 (a) and (b) REQUIRES THAT NOT LESS THAN $300,000,000 OF GO AND REVENUE BONDS BE ISSUED. THIS IS NOT A REQUIREMENT THAT SHOULD BE IMPOSED ON THE DISTRICT BOARD. 3. STATE STATUTE 50-311 PROVIDES THAT THE TERM OF THE DEBT SHALL NOT EXCEED 30 YEARS. RESOLUTION 1128-D SECTION 6.3 (a) PROVIDES THAT THE DEBT WILL BE FOR NOT LESS THAN 30 YEARS. IT MAY BE MORE APPROPRIATE AND ADVANTAGEOUS FOR THE HOMEOWNERS AND BUSINESSES FOR THE DEBT TO BE FORA PERIOD LESS THAN 30 YEARS. IN MY OPINION THESE EXAMPLES SIGNIFICANTLY LIMIT THE POWER AND AUTHORITY OF THE DISTRICT BOARD TO CARRY OUT ITS RESPONSILITIES. IN MY READING OF THE DOCUMENTS, I HAVE IDENTIFIED IN ADDITION TO THESE THINGS, OTHER CONFLICTS WITH STATE STATUTES AS WELL AS ITEMS MISSING FROM THE DOCUMENTS THAT WOULD PROVIDE SAFEGUARDS FOR THE DISTRICT BY CLARIFING ISSUES OF AUTHORITY OR HOW TRANSACTIONS WILL BE ACCOMPLISHED. I WILL BE GLAD TO PROVIDE THEM TO YOU IF YOU SO DESIRE. I HOPE YOU WILL AGREE WITH ME THAT THERE IS SIGNIFICANT WORK LEFT TO BE DONE BEFORE A DECISION TO DISAPPROVE OR APPROVE THE M3/SPRING VALLEY CID IS MADE. THANK YOU FOR PROVIDING ME WITH THIS OPPORTUNITY TO COMMENT ON THIS SIGNIFICANT ISSUE. I WILL STAND FOR QUESTIONS.