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Council Minutes 1999 04/22CITY OF MC CALL MINUTES Regular Meeting City of McCall Thursday - April 22, 1999 Table Of Contents Call To Order And Roll Cal/ 2 Public Comment 2 3 3 AB 99-39 Romano's Beer and Wine License........................................... 3 AB 99-38 SUB 99-2 Ski Ranch#2......................................................... 3 AB 99-37 IDT Highway Striping Options... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. 3 AB 99-29 Sewer Lagoon Bids.............................................................. 4 AB 99-33 Dust Oil Bids....................................................................... 4 AB 99-34 Lease Sewer Camera Equipment ............................................ 4 AB 99-35 Resolution No. 4-99............................................................. 4 AB 99-36 Audit Management Letter....................................................... 4 Adjournment 8 Council Minutes Apri122.doc Page 1 of 8 MINUTES IExecutive Session — 6:OOPM I Mayor Eimers called the meeting to order at 6:00 p.m. Ms. Arp, Mr. Eimers, Mr. Muller, and Mr. Venable answered roll call. Mr. Colton was absent. A quorum was present. City staff present were Interim City Manager Bill Robertson, City Attorney Dave Bieter, and City Clerk Cherry Woodbury. Ms. Arp moved to go into Executive Session per Idaho Code 67-2345(f) to consider pending litigation. Mr. Venable seconded. At a roll call vote Ms. Arp, Mr. Venable, Mr. Eimers and Mr. Muller voted "aye". The motion carried. Mr. Eimers moved to come out of Executive Session. Mr. Muller seconded and the motion carried unanimously. Council recessed for 5 minutes. The meeting reconvened at 7: 05 p.m. Call To Order a Mr. Eimers called the regular meeting of the McCall City Council to order. Mr. Robertson reported that the sewer lagoon bid award would not be on this meeting agenda but would be on the May 1 st special meeting. IPublic Comment i Ed Catlett spoke on the Payette Lake Sewer District rates and funds due to the District by the City. Mr. Robertson commented that this expense would be reviewed during budget sessions. Sue Paulson requested Council consider the application from Ramano's for a beer and wine license. Council agreed to add this item to the agenda. Approval would be contingent upon Police review. Jenny Ruemuelle spoke on the Scenic Byway Grant application and requested that the building fee permit be waived. Mr. Eimers moved to amend the agenda by adding AB 99-39 Ramano's beer and wine application. Ms. Arp seconded and the motion carried unanimously. Council Minutes Apri122.doc Page 2 of 8 IConsent Agenda i AB 98-149 Minutes Of April 8, 1999 - Regular Meeting Invoice Approval List Dated April, 1999 Payroll Report Dated April 9, 1999 With Payroll Related Expenses Hand Check For Utility Bills Scenic Byway Grant Application Quaker Hill — Extension Of Time Limit Ms. Arp moved to approve the Consent Agenda with the noted change to the minutes. Mr. Eimers seconded and motion carried unanimously. IBusiness I AB 99-39 Romano's Beer and Wine License Ms. Arp moved to approve the application contingent upon approval from the Police Department. Mr. Muller seconded and the motion carried unanimously. AB 98-38 SUB 99-2 Ski Ranch #2 Andy Locke presented the agenda bill pertaining to Stone Lane and moving it 30 feet to the North. Mr. Eimers moved to adopt the Findings & Conclusions of the Impact P & Z approving the preliminary & final plats of the subdivision. Mr. Muller seconded and motion carried unanimously. AB 99-37 IDT Highway Striping Options Andy Locke presented plans for the striping of 3`d and Lake Street. The idea was not to have 3 cars abreast at that intersection. Ms. Arp felt it would be premature to make a decision without public notice of the issue. Mr. Robertson noted the Transportation Committee had discussed the issue but made no recommendation. Ms. Arp felt information on this should be published in the newspaper to afford the public the opportunity to respond. Chief Donica commented she had spoken with the Idaho Department of Transportaiton. The Department had planned to do striping of that intersection in about 2 weeks. She had asked IDT to look at three intersections. IDT had actually made the suggestion to make East Lake Street one way. This was suggested last fall. Mr. Muller felt that more consideration by the Transportation Committee was needed. The next Committee meeting will be May 5th. Mr. Eimers concurred that the Committee should investigate further and make the public aware of the options. Chief Donica will request that Idaho Department of Transportation wait until this is done to do the striping. Council Minutes Apri122.doc Page 3 of 8 Andy Locke made final comments on his experience as McCall's P & Z Administer and his farewell. City staff and citizens will miss Mr. Locke and expressed appreciation for all the hard work and accomplishments. AB 99-29 Sewer Lagoon Bids This item was pulled from the agenda. Mr. Robertson noted that copies of the bids are available for public review at City Hall. AB 99-33 Dust Oil Bids This item was pulled from the agenda. The bid date is May 20th so this is to be on the May 27th agenda. AB 99-34 Lease Sewer Camera Equipment Bill Keating presented the lease purchase agreement from Cyclops for the video camera. The term of lease would be 5 years. Mr. Keating commented that Rick Ballard and DEQ recommended this equipment as part of Phase II and to gather I & I information. Mr. Keating stated the equipment could potentially be covered under current grant funds. Ms. Arp questioned the amount of the lease. Mr. Robertson stated the first payment would be next year and not even an expense in this year's budget. Mr. Keating stated part time help in summer will do hydro cleaning of the lines and this process would follow that. Discussion followed on I & I and how to handle repair of lines. Mr. Keating felt substantially more of the lines could be video recorded if done by City crew vs outside contract. Mr. Eimers moved to approve the lease purchase agreement. Mr. Muller seconded. At a roll call vote Mr. Eimers, Mr. Muller, Mr. Venable and Ms Arp voted "aye". The motion carried. AB 99-35 Resolution No. 4-99 Ms. Arp moved to approve the resolution authorizing signatures necessary for the Recreation and Urban renew accoutns. Mr. Muller seconded and the motion carried unanimously. AB 99-36 Audit Management Letter Jae Halett, Balukoff & Lindstrom, cautioned Council to clarify if federal funding was available / appropriate for the video camera lease purchase. Mr. Halett gave a background history of the audit process and reporting. He noted in the current year there was 100% turn -over in City finance staff and no cross training prior to the vacancies. He reported the Trial Balance figures were given to Mr. Royal in February. Due to part time temp help that was employed April —May — June resulted in the City becoming several months behind with good financial reporting. He noted there were a lot of circumstances that created a crisis. Commended Council and staff for recognizing issues and keeping expenses in line. Mr. Halett commented the various funds were in better shape than the prior year. Council Minutes Apri122.doc Page 4 of 8 One of the big issues needing to be addressed was the City not meeting requirements on LID bonds. Mr. Eimers inquired about the Water Fund which had been in the red and now was in the black. Mr. Halett reported on the "health" of each of the funds. The following fund information was presented: General Fund — about 30% fund balance — just about on target as of September Library Fund — 22% fund balance Street Fund — 91 % - allocation of property taxes went more towards streets — need to review property tax apportioned by County — fund percentage high - could amend the budget and move some funds but discourage moving funds into an Enterprise Fund. Recreation — negative 5.3% - an improvement over past years — if expenses in line property tax allocation for this year will put fund at about 30% Capital Projects — break even Water Fund — still needs about $360,000 to be put into fund reserve - need to monitor on monthly basis Sewer Fund — need to revise rates - start process to adjust rates Golf Fund — continuing losses — operated negative $177,000 — high debt but can't raise rates — need long term look at golf since perception is there will not be more course play — decide importance to community — consider subsidizing from General Fund or explore ways to make it profitable with a reserve or privatize — need plan of action - Mr. Muller felt Dan Pillard had capability of making positive impact Airport Fund — need to monitor grant funds Mr. Halett suggested putting on the agenda for review monthly the following: ➢ LID3 ➢ Water Fund ➢ Golf Fund Mr. Halett expressed concern about LID3 and the City being able to make payments on the bond. $283,000 is needed in reserve but there is only about $225,000. Mr. Halett estimated there would be $515,000 in fund at the end of year. He reported that delinquent assessment payments were about $3million. Mr. Halett felt this LID was speculative in nature. As another means to raise money, he felt if it was necessary the City could potentially used the excess in the street fund to meet obligations with solid intent of repayment when foreclosure and sale of the property was completed. He stressed the City's responsibility to repay any excess funds used. Mr. Halett reviewed the management letter. He stated that any material weakness and reportable condition are required to be reported. He suggested Mr. Royal report back to Council in a month with a plan to correct any weaknesses. Mr. Hallett defined material weakness and reportable condition as follows: Council Minutes Apri122.doc Page 5of8 Weaknesses — Bank Reconciliation / LIDs / Reconciliation On Investments / Utility Billing / Cash Management / /Covenant Compliance Conditions — manual and void checks / sales tax reporting / fund balances / grant fund management/ journal entries not supported with documentation Mr. Halett noted that there was no indication of funds being lost. He stated he would like to return in late May or June to hear a status report. Ashley Royal presented the response to the management letter. He commented as the follows: Weaknesses Bank Reconciliation — accomplished and on going LIDs — new software will assist with reconciliation — billings being sent timely - has been a high priority Reconciliation Of Investments — this is part of the bank reconciliation process — has segregated monies Utility Billing — good invoices with no errors sent out this month — new ordinance will assist with delinquent accounts — will take a few months to catch up Cash Management — have segregated money so there is no co -mingling Covenant Compliance — agreed with auditor Conditions Manual and void checks — verified / corrected during reconciliation Sales tax reporting — being done Fund balances — is part of long range planning Grant fund management — action is being taken — bank electronic deposit will be able to reviewed by modem Journal entries — cash transfers reviewed - made monthly with estimated number — maintaining a log with explanation of entries — if complicated entry more documentation is being compiled Mr. Royal responded to the audit's other conditions which were noted but of lower priority. Mr. Halett suggested putting a letter / notice together with legal counsel review to be sent to bond holders advising them of report and response. There was discussion on the formation of a committee to investigate golf revenue and expenses and golf fund components. Mr. Bieter suggested the City Manager devise a plan and present it to Council at future meeting. Council Minutes Apri122.doc Page 6of8 Reports I Staff City Manger - Reported on request from Rod Nielsen to serve on the Transportation Committee. This vacancy has been advertised. Mr. Muller moved to direct the Mayor to appoint Rod Nielsen to the Transportation Committee. Ms. Arp seconded and the motion carried unanimously. Mr. Eimers appointed Rod Nielsen to the Committee Requested a special Council meeting for May 5th or 6th to award the bid for the sewer lagoon project. In addition, Jack Marshall and John Carey requested to come before Council on the Memorandum of Understanding pertaining to the property behind City Hall — Council set the meeting time as noon on May 5th- Wednesday Mr. Robertson explained that the US Attorneys felt it would be appropriate to award bid after the May 1st special meeting. This meeting will be on the annexation, zoning, and CUP for the proposed lagoon site. It will be attended by government agencies, engineers, attorneys, and the public. City Treasurer - Nothing further Attorney - May 11th Williamson hearing is to be held at City Hall - Brian Charles issue will be on the May 5th or May 13th agenda City Clerk - Reported on IDWR grant and final steps to complete the process to purchase the Carey property behind City Hall Council Ms. Arp - Nothing further Mr. Muller - Commented on a letter from Steve Millemann on the water and sewer lines pertaining to WhiteTail Development. Mr. Venable - Nothing further Mr. Eimers - Nothing further Council Minutes Apri122.doc Page 7of8 Regular meeting of the McCall City Council ended at 10:00 p.m. Council recessed for 5 minutes and reconvened at 10:05 p.m. Executive Session I Ms. Arp moved to go into Executive Session per Idaho Code 67-2345(f). Mr. Venable seconded. At a roll call vote Ms. Arp, Mr. Venable, Mr. Eimers and Mr. Muller voted "aye". The motion carried. Mr. Eimers moved to come out of Executive Session. Ms. Arp seconded and the motion carried unanimously. Mr. Muller moved to direct Al Barker to file a motion to dismiss in the JUB law suit, to direct Bill McCurdy to file a temporary restraining order against JUB, and to direct Dave Bieter to work with the City's insurance company, St. Paul, to assist in defense on behalf of the City. Mr. Eimers seconded and the motion carried unanimously. Adjoumment Without further business, Mr. Muller moved adjourn at 11:10 p.m.. Mr. Eimers seconded and the motion carried unanimously. ATTEST: CherWoodbury, City Cler (c,i4L_‘ Kirk Eimers, Mayor Council Minutes Apri122.doc Page 8 of 8