Apr 20, 2026 City Council Work Session

[Call to Order and Roll Call]

[00:00:10]

WELCOME TO THE IDAHO FALLS CITY COUNCIL WORK SESSION APRIL 20TH. I CAN'T BELIEVE IT. I WAS TELLING LOTS OF PEOPLE THIS MORNING. I WOKE UP FEELING LIKE I WAS IN FIFTH GRADE. NOT SURE HOW TO DRESS FOR 25 DEGREE FREEZING COLD MORNING KNOWING IT WAS GOING TO SEND ME. IT'S LIKE I REMEMBER FEELING LIKE, OH, SHOULD I TAKE MY COAT TO SCHOOL? SHOULD I? ANYWAY, IT WAS JUST KIND OF ONE OF THOSE CRAZY TYPICAL IDAHO FALLS MORNINGS. YOU KNOW, IT'S 420, RIGHT? THAT'S THE THING. IF YOU DON'T KNOW THAT. NO, NO, NOT REALLY UP HER ALLEY. OH 420 IS LIKE NATIONAL MARIJUANA DAY. WHAT PEOPLE STILL SIGNS ON THE ROAD FOR THAT? 420 YEAH, OKAY.

LIKE FOR NOW, LIKE, I JUST DON'T I DON'T KNOW WHY. I DON'T KNOW WHY. IT JUST IS. EVERYONE HAD THEIR OWN CROWDS. I'M FEELING LIKE MORE ABOUT YOU EVERY DAY. I DIDN'T KNOW, I DIDN'T KNOW IT. OKAY. I MEAN, I'M MORE OF THE MAY 4TH KIND OF CROWD. MAY THE 4TH BE WITH YOU.

OKAY, OKAY. CLERK, WILL YOU PLEASE CALL OUR ROLE? AND WE DO KNOW THAT COUNCIL MEMBER LEE IS OUT OF THE COUNTRY, BUT WILL JOIN US ON THURSDAY. CITY COUNCIL PRESIDENT FRANCIS HERE.

COUNCILOR. RADFORD PRESENT. COUNCILOR. ALDERMAN HERE. COUNCILOR FREEMAN HERE.

COUNCILOR LARSSON HERE. MARY, YOU HAVE A QUORUM. OKAY, WE HAVE SOME CALENDARING THINGS

[City Council, Mayor]

THIS IS JUST FOR THE CITYWIDE UPDATES, CONCERNS, QUESTIONS. WE WILL BE QUICK ABOUT THIS, BUT LET'S LEAVE THE CALENDARING ITEMS. MAYBE TOWARDS THE END. DO YOU WANT TO MAKE A CHANGE TO THE AGENDA RIGHT OFF THE BAT? ACTUALLY, WE'RE NOT GOING TO HAVE. I SHOULD HAVE TOLD YOU.

WE'RE NOT GOING TO HAVE TO CHANGE THE AGENDA. WE'RE GOING TO MAKE THE WE'RE GOING TO DO IT ON THURSDAY. COUNCIL MEMBER BATEMAN, WE'LL CALL IN ON THURSDAY. OKAY. SORRY. WE'RE GOOD ON THAT. WE'RE GOOD ON THAT. OKAY. OKAY. ALL RIGHT. SO I ONLY HAVE A COUPLE OF THINGS FOR THE DISCUSSION PART, RIGHT? YES. SO I DON'T KNOW HOW MANY OF YOU CHECKED YOUR MAILBOX LATELY, BUT WE GOT A HARD COPY LETTER FROM A CITIZEN WHO WANTS THINGS THAT THE CITY SHOULD RELOOK AT. THE HOURS THAT AN RV CAN BE PARKED ON THE STREET BEFORE IT HAS TO MOVE. IT'S 48 HOURS NOW, AND MY THOUGHT IS I'M NOT. I ASK POLICE TODAY TO ASK CODE ENFORCEMENT WHAT THEIR FEEDBACK ON THAT IS BEFORE. AND MY SUGGESTION. WE DON'T DO ANYTHING UNTIL WE GET SOMETHING FROM CODE ENFORCEMENT, BECAUSE IF THEY FIND THAT THEY'RE GIVING EVERYBODY. OH, YOU GOT AN EXTRA DAY. WE'LL COME BACK THEN MAYBE WE CAN CHANGE IT TO MEET WHAT THEY'RE ACTUALLY DOING. BUT RIGHT NOW, I WOULDN'T RISK. IT'S JUST YOU'LL GET THE LETTER AND YOU'LL SEE WHAT THE CITIZENS CONCERN IS. I WANTED YOU TO KNOW THAT. THEN I FIGURED OUT TODAY THAT THE UTILITY BOARD MEETING FOR MAY IS MOVED TO THE SIXTH, AND I DIDN'T HAVE THAT ON MY CALENDAR, BUT MY CALENDAR IS OFTEN OUT OF DATE ANYWAY. IT'S NOT ON THE 13TH BECAUSE IF YOU MOVE IT TO THE SIXTH, THEN WE'RE ON THE SAME COUNCIL WEEK SCHEDULE. OKAY. THE ONLY OTHER THING I HAVE FOR DISCUSSION IS I THINK, COUNCILOR RADFORD, YOU'RE WORKING WITH THE CHIEF OF STAFF ON MAYBE SETTING UP A BOOTH AT THE FARMERS MARKET. IS THAT RIGHT? CAN YOU TELL US A LITTLE BIT MORE ABOUT WHAT YOU'RE WORKING ON? WELL, THIS IS AN OUTGROWTH OF THE CONVERSATION ABOUT BEING MORE OPEN TO CONVERSATIONS FROM THE PUBLIC AND HAVING PLACES WHERE WE COULD ACTUALLY DISCUSS THINGS, AS OPPOSED TO JUST A HEARING. AND ONE OF THE EASY THINGS TO DO BEFORE WE HAVE TO DEAL WITH ALL THE AGENDA ITEMS AND ALL THE THINGS, WAS TO JUST HAVE A TABLE AT THE FARMER'S MARKET WHERE WE COULD ROTATE WITH ONE DIRECTOR MAYBE, AND ONE OF US MAYBE TWO. I MEAN, OPEN MEETING LAW, WE CAN'T GET TO TOO MANY, BUT. AND THEN THEN WE CAN JUST PUT UP A SIGN SAYING CITY COUNCIL'S HERE AND SEE IF PEOPLE WANT TO COME TALK TO US, INTERACT WITH US, OR LOTS OF OTHER CONVERSATIONS. BUT THAT'S THE FIRST ONE. THAT WAS AN EASY LIFT. AND MARGARET SAID SHE WOULD GET A SPREADSHEET AND WE COULD PASS THAT AROUND. OKAY, SO I'LL BE ABLE TO SIGN UP. AND YOU ALREADY TALKED TO CLARK ABOUT. I THINK MARGARET HAD.

YEAH, YEAH, WE STARTED DOWN THAT ROAD. SO IT CAN HAPPEN THIS SUMMER. YEAH, IT CAN

[00:05:06]

BUT PRETTY HARD. YEAH. BUT THERE'S THERE'S 6 OR 7 WEEKS IN THERE THAT WOULD BE THERE, SOMETHING LIKE THAT. I MEAN, I DON'T THINK IT MATTERS. THIS SUGGESTION FROM CLARK WAS THAT THERE ARE, AS COUNCILMAN RADFORD SAID, THERE'S LIKE 6 OR 7 THAT ARE THEIR BUSIEST MARKETS. MOTHER'S DAY, FATHER'S DAY OPENING WEEK. SO WE WOULD TARGET THOSE. THERE'S ALSO SOME EXTRA NIGHT MARKETS THAT THEY'RE DOING, INCLUDING TWO OVER AT OFFICE PARK. SO WOULD BE TO KIND OF BUILD A SCHEDULE BASED ON THOSE BUSIEST MARKETS. AND THEN IF THERE'S ADDITIONAL INTEREST OR ADDITIONAL OPPORTUNITIES, WE CAN, WE CAN KIND OF GO FROM THERE. AND WE HAVE LOTS OF OTHER THINGS TO TALK ABOUT AROUND WHAT WE REALLY WANT TO DO TO HAVE LIKE MEETINGS IN NEIGHBORHOODS AND MAKE THINGS MORE LIKE WE DO SOMETIMES WHEN WE'RE IN CAMPAIGNS WHERE WE CAN JUST MEET AND LISTEN AND TALK AND, AND, BUT DO IT OUTSIDE OF CAMPAIGN MODE. SO IF THERE'S JUST TWO, TWO OF US THERE FOR THOSE, YOU KNOW, DID THE WHOLE MEETING THING AND. YEAH. OKAY, OKAY. AND YOU WOULD THINK THAT I COULD STILL REMEMBER FROM A MEETING THIS MORNING AT 8:00, BUT I CAN'T THERE. WE DID INCLUDE SOME MONEY FOR THESE KIND OF OUTREACH IN COUNCIL'S BUDGET FOR THIS YEAR. IT'S NOT A LOT 26 FOR THE WELL WE'VE GOT I THINK WE CAN FIND THE MONEY FOR. 26 BUT THEN AS WE MOVE INTO. 27 TO JUST HAVE SOME OF THESE OUTREACH, YOU KNOW, IF WE HAVE A VENUE THAT SAYS, OH YEAH, YOU KNOW, WE'RE GOING TO CHARGE $50, IT'S NOT A WHOLE LOT OF MONEY, BUT THERE IS SOME IN THERE TO KIND OF HELP WITH THE INTENT OF THE PURPOSES MAYBE FOR MARKETING. YEAH, YEAH. JUST THERE'S, THERE IS SOME, SOME, SOME OF THAT BUILT INTO THE BUDGET FOR THAT. OKAY. COUNCIL MEMBER, JUST IN TERMS OF DISCUSSIONS, JUST KNOW THAT THE TREE ORDINANCE IS COMING UP AND THAT I HAVE I HAVE A MEETING SET UP WITH THE CITY FORESTER AND ZACH. THERE'LL BE SOME INTERESTING CONVERSATIONS AROUND THAT. BECAUSE OF RECENT DATA AND STUDIES THAT I THINK WILL BE COMPELLING TO THIS GROUP IN TERMS OF OUTCOMES. SO IN TERMS OF IF I IF THERE IS THINGS THAT CITY COUNCIL MIGHT WANT TO HAVE A BACKGROUND ON, IF I SEND SOMETHING TO ONE PERSON AT A TIME, IF IT'S JUST EDUCATIONAL, HOW DOES THAT WORK WITH A MEETING? IF IT'S A DO NOT RESPOND. BUT YEAH. SO COUNCIL MEMBER RADFORD, IS THAT SOMETHING WE'VE GONE BACK AND FORTH ON DURING COUNCIL MEETINGS JUST WITH. YES. AND WE PUSHED THAT. WE AT ONE POINT I JUST HAD SAID, LET'S JUST BRING THAT TO THE REGULAR. BUT IT'S ON. IT SOUNDS LIKE THERE'S BEEN A LOT OF WORK DONE TO THE TREE ORDINANCE AND THAT AT ONE TIME IT WAS REALLY LIKE, NO, WE'RE GOING TO NEED A WORK SESSION.

AND THEN I SAID LIKE, NO, WE DON'T HAVE ANY MORE WORK SESSIONS AVAILABLE. BUT IF YOU REALLY THINK THAT THAT IS, THEN MAYBE MAY 4TH IS ANOTHER GOOD TIME. I'M NOT SURE WE NEED A WORK SESSION. I THINK A LOT OF THE WORK NEEDS TO BE DONE WITH THE CITY FORESTER AND SEE WHAT THEY WANT AND WHAT I'M SUGGESTING, AND SEE IF THEY JUST DON'T WANT TO DO IT. BUT THERE'S SOME PUBLIC HEALTH BENEFITS THAT ARE PRETTY OUTSTANDING THAT I THINK ARE PRETTY INCREDIBLE. SO I JUST WANT PEOPLE TO BE EDUCATED A LITTLE, BUT I DON'T THINK WE NEED THAT WORK SESSION BECAUSE THEN WE'D HAVE TO GET THE FORESTER HERE AND THEN THE BACKGROUND. IT WOULD BE A LONGER THING. IT'S THE KIND OF THING THAT I THINK IF PEOPLE COULD SEE THE STUDIES OR THE, YOU KNOW, WHAT THE OUTCOMES WERE FOR OTHER CITIES, IT WOULD BE PRETTY INTERESTING. BUT BUT IT'S AN ORDINANCE. YEAH. SO COME DIRECTLY TO THURSDAY NIGHT.

IT I THINK AFTER I MEAN, THE STUFF THAT'S BEING TALKED ABOUT IN THAT ORDINANCE ISN'T GOING TO BE SUPER CONTROVERSIAL ONE WAY OR THE OTHER. IT'S GOING TO BE, YES, I WANT TO DO THAT OR NOT. LIKE A FOREST MANAGEMENT PLAN REQUIRED FOR THE CITY INSTEAD OF JUST MAYBE A GOOD SUGGESTION, BUT THAT'S A BEST PRACTICE RECOMMENDATION FOR FOR CITIES. YEAH. THERE'S NOT THERE'S NOT A LOT OF CHANGE TO IT. BASICALLY. IT'S JUST IT'S NOT SUBSTANTIVE. IT'S IT'S JUST CLEANING THINGS UP. AND THEN THERE'S TYING THINGS TO A CERTAIN STANDARDS THAT ARE. AND THEN THERE'S SOME THINGS THAT ARE PRETTY SUBSTANTIVE. I GUESS THERE ARE, THERE ARE SOME SUBSTANTIVE CHANGES, SOME OF THIS JUST SHUFFLING AROUND, BUT THERE ARE SOME SUBSTANTIVE CHANGES, LIKE THERE'S A STANDARD LIKE THE INTERNATIONAL BUILDING CODE THAT WE'VE THAT WE'RE PUSHING AT 2001, BUT WE'LL PROBABLY UPDATE THAT TO, I DON'T KNOW IF WE'RE GOING TO DO THE LATEST OR MAYBE JUST UPDATE TO THE CURRENT FORESTRY CODE, I CAN'T REMEMBER A N I C IT'S A, IT'S THE STANDARD AROUND. YEAH, I DON'T AND I DON'T THINK IT'S TIME SENSITIVE

[00:10:03]

OKAY? OKAY. ALL RIGHT. WE'LL PUT THAT ON THAT. LET DIRECTOR KNOW. DID THAT COME THROUGH THE SHADE TREE COMMITTEE WHERE THEY'VE WORKED ON THE ORDINANCE QUITE A BIT, BUT THEY HAVEN'T SEEN WHAT THAT WHAT I'LL BE SUGGESTING. SO THEY MIGHT NEED TO GO BACK. AND I MEAN THAT'S GOING TO BE UP TO HIM. I CAN'T REMEMBER LEE MAY HAVE MAY HAVE TO SHOOT IT I CAN'T REMEMBER.

MAYBE WE CAN TALK TO HIM. I THINK HE DID. OKAY. I THINK I DO HAVE A QUESTION. OKAY. DO WE WANT THAT DOOR OPEN? YES, YES, WE DO WANT THAT DOOR OPEN. THANK YOU FOR CATCHING THAT.

THANK YOU. COUNCIL MEMBER FRIEDMAN. THE ONLY THING I WOULD MENTION IS THAT THE LAND AND WATER CONSERVATION FUND THING, YOU KNOW, THEY GAVE US THE GO AHEAD TO GET THE PARK STARTED. SO THAT'S BASICALLY THE BIG NEWS. I KNOW THAT YOU'RE PROBABLY ALL AWARE OF IT, BUT FOR PUBLIC. YEAH. AND THEY'RE STILL IT'S UNDECIDED STILL THE PLAN FOR THE PARK ITSELF. BUT THEY'VE GOT AN ERROR DOWN TO A COUPLE OF CHOICES ABOUT IT'S JUST ABOUT PLACEMENT OF WHERE THE THINGS ARE GOING TO GO ON THE PROPERTY. SO I'LL TELL YOU RIGHT NOW, TENTATIVELY, THERE IS A COMMUNITY. A NEIGHBORHOOD MEETING, BECAUSE WE'RE GOING TO HAVE TO HAVE THOSE NEIGHBORHOOD MEETINGS. SO THERE'S GOING TO BE A THERE IS A TENTATIVE NEIGHBORHOOD MEETING. WE'RE SUPPOSED TO GET THE PLAN BACK IN THE NEXT DAY OR TWO AS FAR AS LIKE THE BIG INFRASTRUCTURE PIECES OF THE PLAN. AND THEN AND THEN WE WILL MEET WITH THE NEIGHBORHOODS TO TALK ABOUT, YOU KNOW, WHAT, WHAT DO YOU ENVISION THIS PARK TO BE? AND THAT IS, I DON'T KNOW WHETHER WE WANT TO SAY THE DATE YET BECAUSE IT'S SUBJECT TO IT'S KIND OF MIDDLE MAY. THERE'S A FEW THINGS THAT WE'RE WE'RE JUST KIND OF FINALIZING WITH PARKS AND REC. AND WE ALSO WANT TO MAKE SURE WE'RE ASKING THE RIGHT QUESTIONS. SO WE'RE ALSO JUST KIND OF FINE TUNING WHAT THE, WHAT IT IS WE'RE ASKING FOR INPUT ON. WE DID WANT TO SEND A BUNCH OF BULLDOZERS OUT THERE AND THEN, AND THEN ASK FOR PEOPLE'S INPUT. IT'S LIKE, LET'S JUST DO IT IN THE RIGHT ORDER AND MAKE SURE THAT WE GET THE INPUT. AND THEN SUDDENLY, YOU KNOW, LIKE MAYBE THE NEXT DAY WE CAN MOBILIZE, YOU KNOW, THE WHOLE THING. WE JUST WANT TO MAKE SURE THAT THAT WAS DONE IN THE RIGHT ORDER. SO THAT IS EXCITING. WE HAVE GOT TO GO AHEAD. AND PJ MENTIONED THE ONE THING THAT'S KIND OF STUCK IN MY MIND WAS HE WAS LIKE, WE DON'T KNOW IF WE WANT TO DO A YOUNGER KIDS PLAYGROUND OR AN OLDER KIDS PLAYGROUND. AND I'M LIKE, WELL, WHY CAN'T WE DO BOTH? I MEAN, RIGHT, YEAH. I MEAN, AND OVER TIME YOU GO TO THE PARK OR YOU GO TO COMMUNITY PARK AND YOU SEE THE PEOPLE THAT ARE USING THE PLAYGROUND.

I MEAN, PEOPLE HAVE CHILDREN THAT ARE MORE THAN ONE AGE, RIGHT? THEY HAVE THEY HAVE A FOUR YEAR OLD, THEY HAVE AN EIGHT YEAR OLD, THEY HAVE A 12 YEAR OLD AND THEY NEED DIFFERENT THINGS TO DO. SO WE ALSO ARE NEXT TO A COMMUNITY COLLEGE, SO THERE SHOULD BE SOME SPACES. JUST WHAT? YEAH, YEAH. THAT'S VERY. AND THE CONNECTION TO THE TRAIL SYSTEM SHOULD BE THERE. SO THERE'S THERE'S ALL THAT GOOD VISIONING. YEAH, THAT WILL HAPPEN. AND THEN ONCE WE GET THIS PARK AND WE'RE INTO LCFF COMPLIANCE, THEN WE CAN ACTUALLY ADD A DOG PARK OR ADD A SMALL PARK OR ADD A PICKLEBALL. SO THAT'S THE, THE BIG PART OF IT. ANYWAY, IT'S GOOD NEWS. COUNCILMEMBER SILVA, THANK YOU. COUNCILMEMBER FRANCIS, WILL YOU JUST GIVE US THE MOTION FOR THE I MOVE COUNCIL RECEIVE THE RECOMMENDATIONS FROM THE APRIL 7TH. YEAH. APRIL 7TH, 2026 MEETING OF THE PLANNING AND ZONING COMMISSION PURSUANT TO THE LOCAL LAND USE PLANNING ACT. SECOND. FRANCIS I. FREEMAN. YES. DINGMAN. YES. LARSEN. YES.

[Municipal Services ]

[00:15:02]

OH, AS FAR AS. OH, THERE IT IS. WHAT I WANT TO TALK TO YOU TODAY ABOUT IS WHO HELPED ME WITH THE CITY'S AUDIT THIS YEAR, AND THEN GO OVER FIVE QUESTIONS AND ANSWER THOSE THAT YOU MAY BE THINKING OF. WHAT DOES AN AUDIT ENTAIL FOR THE CITY? ARE THE FINANCIAL STATEMENTS OF THE CITY ACCURATE? WAS THERE ANY COMPLIANCE MATTERS OVER FEDERAL REGULATIONS? A BIG ONE IS ANY FRAUD, WASTE OR ABUSE COME UP FROM THE AUDIT? AND THEN FINALLY, SOME HIGH LEVEL COMMENTS ABOUT THE CITY'S FINANCIAL CONDITIONS. SO I'M A DIRECTOR WITH BAKER. TILLY HAVE BEEN WITH THE FIRM FOR MORE THAN 25 YEARS, FOCUSING ON CITIES AND COUNTIES. I SIGNED YOUR AUDIT REPORT AGAIN THIS YEAR. A PRINCIPAL, WHICH IS ALSO KNOWN AS A PARTNER, IS KEY.

HE'S ACTUALLY SERVED AS A PRIOR AUDITOR MORE THAN FIVE YEARS AGO, BACK WHEN OUR FIRM DID THE AUDIT AND THEN ANOTHER FIRM WAS INVOLVED. PRIOR TO ME GETTING A BOARD, I SAID OUR QC REVIEWER.

SO HE REVIEWS THE FINANCIAL STATEMENTS AND REPORTS HE'S NOT HERE AT THE CITY PERFORMING THE TESTING, BUT HE'S PERFORMING THAT QUALITY CONTROL THAT I REALLY APPRECIATE. AND THEN I WANT TO SHOUT OUT LESLIE DAGGETT. SHE'S THE IN CHARGE THAT REALLY OVERSEES OUR STAFF, WORKS WITH THE CITY STAFF ON EXCHANGING INFORMATION, MAKING SURE TIMELINES ARE HIT. THERE'S GOOD COMMUNICATION, REALLY WORKING CLOSELY WITH WITH BROOKS AND HER TEAM. SO I COULDN'T HAVE DONE IT WITHOUT LESLIE. AND SHE WAS RETURNING AND HAPPY TO SAY THIS IS HER FAVORITE OUT OF TOWN JOB TO TRAVEL TO. AND ACTUALLY, THE STAFF ARE THE SAME AS YOU GUYS JUST PULLING MY LEG HERE, BUT THEY REALLY LIKED WORKING WITH THE CITY. SO THE FIRST QUESTION, WHAT DOES AN AUDIT ENTAIL? REALLY, THERE'S FIVE THINGS I'LL TALK ABOUT. THE FIRST IS WE'RE LOOKING AT THE EFFECTIVENESS OF THE CITY'S INTERNAL CONTROLS. WE PERFORM RISK ASSESSMENT PROCEDURES TO SEE THAT CONTROLS ARE DESIGNED AND OPERATED, AS THE CITY SAYS THEY ARE. AND WHEN WE THINK WE CAN GAIN SOME AUDIT EFFICIENCIES, WE'LL PLACE ADDITIONAL RELIANCE ON THOSE INTERNAL CONTROLS. SO THESE ARE THE CHECKS AND BALANCES, APPROVALS OF INVOICES, REVIEWING TIME CARDS THAT EMPLOYEES ARE SUBMITTING, THINGS LIKE THAT. AND THEN WE'LL REPORT IF THERE'S ANY INTERNAL CONTROL FINDINGS. THE SECOND PART OF AN AUDIT IS VERIFYING DETAILED INFORMATION. THIS IS PROBABLY THE TYPES OF THINGS YOU'RE THINKING ABOUT IN YOUR HEAD, LOOKING AT INVOICES, SEEING THAT DETAILS SUPPORT THE

[00:20:02]

THE CITY RIGHT NOW ISN'T SUBMITTING IT TO THE GFOA FOR THE CERTIFICATE OF EXCELLENCE OF EXCELLENCE OF ACHIEVEMENT FOR ACFAS. BUT I CAN TELL YOU THAT MOST EVERYTHING IN THERE IS DONE IN A WAY THAT YOU COULD SUBMIT THAT. AND I THINK THERE'S PLANS TO DO THAT HERE SOON, BUT THAT'S WHERE A LOT OF OUR TIME GOES. AND THEN THE FIFTH PART OF THE AUDIT IS, WHAT I'M DOING HERE TODAY IS REPORTING THE AUDIT RESULTS TO YOU. NOW, I HAVE HAD AN OPPORTUNITY TO MEET WITH SOME OF YOU DURING THE AUDIT TO GIVE YOU A PREVIEW OF HOW THINGS ARE GOING. SO I DON'T THINK THERE'S GOING TO BE SURPRISES, BUT THAT'S MAINLY WHAT I WANT TO AVOID. AND I THINK THERE'S BEEN EXCELLENT COMMUNICATION. SO THIS IS REALLY TO WRAP UP THE LAST PORTION OF THE AUDIT TODAY. IN TERMS OF ARE THE FINANCIAL STATEMENTS ACCURATE? AFTER ALL, OUR ALL OF OUR FIRM'S REVIEW OF INTERNAL CONTROLS, LOOKING AT ALL THE DETAILED DOCUMENTATION THAT WE ASKED YOUR STAFF TO PROVIDE US. AND BASED ON MY REVIEW OF THE FINANCIAL STATEMENTS, I'M HAPPY TO SAY THAT WE WERE ABLE TO ISSUE A CLEAN REPORT. WE ISSUED THAT REPORT ON APRIL 2ND OF THIS CALENDAR YEAR, AND THAT REPORT SAYS THAT THE CITY'S FINANCIAL STATEMENTS ARE MATERIALLY CORRECT IN ACCORDANCE WITH U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. SO THAT'S THE HIGHEST LEVEL OF AN AUDIT REPORT THAT YOU CAN RECEIVE. SO THAT'S GREAT NEWS TO HEAR. I ALSO WANT TO EMPHASIZE THAT THERE WERE NO AUDIT ADJUSTMENTS.

SO BROOKS'S TEAM, THOSE NUMBERS THAT WE INITIALLY RECEIVED IN JANUARY, DIDN'T REQUIRE AN AUDIT IN ORDER, AN AUDIT ADJUSTMENT. SO WE DIDN'T POINT OUT YOU NEED TO CORRECT THIS MATERIAL ERROR IN ORDER TO GET THAT CLEAN OPINION. SO THAT'S SOMETHING ELSE YOU LIKE TO HEAR FROM YOUR TEAM. WHEN I SHARED THAT THERE WERE NO INTERNAL CONTROL FINDINGS OVER THE FINANCIAL STATEMENTS, AND WE DID PROVIDE A LETTER TO MANAGEMENT WITH SOME BEST PRACTICES RECOMMENDATIONS, THESE ARE THINGS THAT ARE SMALLER IN DOLLAR AMOUNT, JUST SOME THINGS TO KEEP IN MIND. AND I THINK WE ISSUED A SIMILAR LETTER LAST YEAR. WE UPDATED THAT SAYING SOME THINGS WERE RESOLVED, SOME THINGS MAY BE ONGOING, AND THEN WE ADDED SOME NEW SUGGESTIONS THIS YEAR IN TERMS OF FEDERAL COMPLIANCE. FIRST OFF, WITH THE SINGLE AUDIT, THIS IS WHERE WE TEST YOUR FEDERAL AWARDS. WE LOOKED AT TWO GRANTS THIS YEAR, WHICH REPRESENTED ABOUT 40% OF THE 12.1 MILLION YOU HAD IN EXPENDITURES. THE FIRST IS THE ONGOING ARPA MONEY. YOU STILL HAVE SOME ARPA EXPENDITURES. WE TESTED THAT DURING THIS YEAR.

AND THEN ANOTHER ONE WAS A NEW PROGRAM. THE THAT YOU GOT THROUGH DEPARTMENT OF TRANSPORTATION, THE RECREATIONAL TRAILS PROGRAM, AND WE TESTED COMPLIANCE REQUIREMENTS FOR BOTH OF THOSE PROGRAMS. AND WE DIDN'T FIND ANY ISSUES WITH COMPLIANCE. WE DID HAVE ONE FINDING. AND THAT RELATES TO INTERNAL CONTROLS OVER COMPLIANCE. AND THAT WAS SPECIFIC TO PROCUREMENT AND SUSPENSION AND DEBARMENT. SO THE OFFICE OF MANAGEMENT AND BUDGET SAYS THAT WHEN YOU TEST THESE TWO PROGRAMS, YOU NEED TO CONSIDER IF THERE'S PROPER INTERNAL CONTROLS OVER THE PROCUREMENT PROCESS. ONE THING WE DID WAS WE SELECTED SEVEN PROCUREMENTS. SO AGREEMENTS WE DID WITH CONTRACTORS TO SEE IF THE CITY REACHED OUT TO A WEBSITE CALLED SAM.GOV THAT HAS A LOT OF FEDERAL GRANT INFORMATION, AND TO SEE IF THOSE SEVEN CONTRACTORS WERE SUSPENDED AND OR DEBARRED FROM CONTRACTING WITH THE LOCAL GOVERNMENT. NOW, WHILE WE CHECKED OURSELVES, WE COULD SEE THAT THERE IS NO ISSUES THERE.

[00:25:03]

I'LL ALSO SHARE THAT IN THE CONTRACTS WITH THOSE FIVE VENDORS, THERE WASN'T SOME REQUIRED LANGUAGE IN THERE SAYING THAT THEY ACKNOWLEDGED THAT THEY WEREN'T SUSPENDED AND DEBARRED. NOW, WE LOOKED AT ACTUALLY ALL THE CONTRACTS. I THINK THERE MAY HAVE BEEN 17 IN TOTAL, AND NONE OF THOSE HAD ANY COMPLIANCE ISSUES. NONE OF THEM WERE SUSPENDED OR DEBARRED.

SO NO ISSUES THERE. OKAY. I WORK WITH FEDERAL GRANTS AND IT'S IT'S A BIG DEAL THOUGH, AND I CAN SEE WHY IT'S A Y YOU HAD TO LIST IT AS A SIGNIFICANT DEFICIENCY BECAUSE IF YOU DID DO BUSINESS WITH SOMEONE, IT WOULD BE FOREVER BARRED FROM THE FUTURE GETTING FEDERAL MONEY OR FOR SOME PERIOD. IS THAT CORRECT? YEAH. AND I COULD CERTAINLY HAVE AN IMPACT ON FUTURE GRANTS FOR SURE. SO BUT THE GOOD NEWS IS I THINK IT'S PROBABLY THE EASIEST THING YOU COULD FIX BY JUST INSTITUTING THAT. YOU DO THAT EVERY TIME. IT'S A MONTH LONG PROCESS FOR US EVERY YEAR, EVEN WITH OUR PAST. YEAH, THAT'S A GOOD POINT. IT IS A QUICK CHECK. THAT'S WHEN WE GET TESTED. SEVEN LET'S TEST ALL 17. AND THEN I'LL TURN TO THE PASSENGER FACILITY CHARGE WHERE WE LOOK AT THE FAA'S AUDIT GUIDE FOR COMPLIANCE. AND ALSO IF THERE'S ANY INTERNAL CONTROL MATTERS. AND HAPPY TO SAY THERE WAS A CLEAN REPORT THERE. SO IAN'S TEAM DID A GREAT JOB FOLLOWING THOSE REGULATIONS WITH THE PASSENGER FACILITY CHARGES. THE FOURTH FILM I'D LIKE TO TALK ABOUT, AND THIS IS WHERE THERE'S NO SURPRISES, BECAUSE IF THERE WAS FRAUD, WASTE OR ABUSE TO REPORT, YOU WOULD HAVE ALREADY HEARD ABOUT THAT. BUT I'LL JUST MAKE IT CLEAR THAT WE FOUND NONE OF THAT. HOW WE GOT THERE IS WE DID A BRAINSTORMING TEAM, SO WE HAD AN ENTIRELY RETURNING AUDIT TEAM THIS YEAR. SO WE WERE ABLE TO THINK BACK, YOU KNOW, WHAT WE SAW LAST YEAR? WHAT CAN WE IMPLEMENT DIFFERENTLY THIS YEAR THAT THE CITY MAY NOT EXPECT? SO HAD AN UNPREDICTABLE PROCEDURE? WAS THERE ANYTHING THAT WE SHOULD BE THINKING OF? SO WE DO A LOT OF BRAINSTORMING ON HOW FRAUD CAN BE COMMITTED AND NOT BE IDENTIFIED BY THE CITY. WE ALSO REACHED OUT AND SPOKE WITH, WELL, SEVERAL PEOPLE IN THIS ROOM AS OTHER, AS WELL AS OTHER KEY OFFICIALS IN THE CITY, BECAUSE SOMEWHAT INTERNAL AT THE CITY AND A CLIENT ON AN AUDIT IS ALWAYS THE BEST WAY TO IDENTIFY FRAUD. SO WE HAD THOSE SORTS OF CONVERSATIONS. WE LOOKED AT JOURNAL ENTRIES AND ANOTHER WAY THAT GOD CAN BE PERPETRATED. BUT THROUGH THOSE CONVERSATIONS, THROUGH THAT TESTING, THERE'S NOTHING THERE.

SO MORE GOOD NEWS. AND THEN REALLY THE FIFTH THING, IT'S NOT ANYTHING THAT'S IN ANY OF OUR REPORTS, NOTHING THAT WE'RE REQUIRED TO TO REPORT ON. BUT WHAT DOES THE CITY'S FINANCIAL CONDITION LOOK LIKE IF YOU'RE LOOKING AT THOSE FINANCIAL STATEMENTS, THERE'S LOTS OF INFORMATION IN THERE. BUT IF YOU GO TO THE VERY BACK END, THE STATISTICAL SECTION, IT'S ONE OF THE THINGS THAT'S NOT REQUIRED UNDER U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, BUT THE CITY PUTS THOSE EXTRA SCHEDULES IN THERE. TEN YEARS INFORMATION. AND THE FIRST ONE IS ON THE OVERALL NET POSITION OF THE CITY. THIS IS WHERE OVER, I THINK, 20 YEARS AGO OR SO, GOVERNMENTAL ACCOUNTING STANDARDS SAID WE WANT TO PUT SOME FULL ACCRUAL FINANCIAL STATEMENTS IN THERE. SO CITIES HAVE FINANCIAL STATEMENTS THAT CAN MAYBE BE A LITTLE MORE COMPARABLE TO A COMMERCIAL ENTITY. SO ALL YEAR LONG TERM LIABILITIES ARE CAPITAL ASSETS ARE ON THERE. AND WHAT WE'RE LOOKING AT HERE ON THIS GRAPH IS THIS CITY'S NET POSITION. IN THEORY, THIS IS WHAT THE CITY WOULD HAVE LEFT OVER IF IT WAS TO LIQUIDATE ALL OF ITS.

LIABILITIES WITH ITS ASSETS, WHAT WOULD BE LEFT OVER? WOULD IT BE NET POSITION. AND THESE ARE IN MILLIONS. SO AT THE END OF 930, 25, THE CITY HAD A LITTLE OVER $800 MILLION IN THAT POSITION. THAT'S THE BIGGEST LINE ON THERE. I'M NOT GREAT WITH COLORS, SO I'M NOT GOING TO TRY TO IDENTIFY THAT. BUT THE SECOND LINE IS THE CITY'S CAPITAL ASSETS. SO THAT'S ALL YOUR INFRASTRUCTURE BUILDINGS, EQUIPMENT, NET OF THE DEBT USED TO FINANCE THOSE CAPITAL ASSETS. AND REALLY WHAT YOU WANT TO SEE AS A CITY IS KIND OF GROWTH THERE. IF YOU SEE A CITY THAT'S YEAR OVER YEAR, THEIR NET INVESTMENT CAPITAL ASSETS IS DECLINING.

THAT'S PROBABLY A CITY THAT IS GOING TO SEE A DECLINING POPULATION, QUITE FRANKLY, OR

[00:30:03]

SO I COULD REACH OUT TO YOU ABOUT THAT NUMBER IS. AND THEN THE FINAL THING I WANT TO SHARE IS YOUR GENERAL FUND BALANCE. THESE ARE ALL DISCRETIONARY DOLLARS WHEN YOU COME TO BUDGET TIME. A LOT OF DISCUSSION HERE ON HOW TO USE THESE DOLLARS. DOESN'T NECESSARILY SAY HOW THE MONEY IS BEING SPENT. BUT I THINK WHAT I SEE HERE IS GOOD STABILITY. YOU'RE UP A LITTLE BIT FROM LAST YEAR, JUST I THINK MAYBE 33 MILLION IN FUND BALANCE, AND LAST YEAR WAS ABOUT 28 MILLION OR SO. SO A POSITIVE YEAR FOR THE GENERAL FUND. IT'S OKAY TO HAVE A LITTLE VOLATILITY. VOLATILITY VOLATILITY HERE. UNLIKE THE PRIOR SLIDE WHERE I THINK YOU WANT TO SEE YEAR OVER YEAR GROWTH BECAUSE THAT PRIOR SLIDE DOES HAVE ENTERPRISE FUNDS THAT EXPECT TO HAVE REVENUES IN EXCESS OF EXPENDITURES TO COVER COSTS. AND THOSE THAT ARE MOST.

21 YEAH, FOR SURE. REALLY GOOD. 21 IS GOOD FOR OUR. AND THAT'S BEEN KIND OF DWINDLED DOWN THE LAST FEW YEARS. 24 IS PEAKING. YEAH. COMING OUT. YEAH. KIND OF A GEEK QUESTION. WHAT ARE THE STANDARDS GAAP OR WHEN I READ G S, G A B ON VALUING FIXED ASSETS, IS IT COST LESS DEPRECIATION TO STANDARDS. THERE'S NO TRY TO THEY DON'T TRY TO ADJUST FOR MARKET VALUE.

CORRECT. OKAY. YEAH. THAT WOULD BE A LITTLE MORE CHALLENGING FOR AUDITORS. THANKFULLY IT'S YEAH. BUT IT'S PURCHASED FOR HISTORICAL COSTS. SO WHEN YOU'VE GOT IT DOWN THAT WENT INTO OPERATION IN 1962, IT'S VALUED AT 62 LESS DEPRECIATION. THAT'S CORRECT. NOW IF THERE IS LET'S SAY THAT DAM'S NOT BEING USED, THEN WE NEED TO CONSIDER SHOULD THE CITY BE MAYBE DOWNGRADING ITS. SO THERE ARE SOME OTHER CONSIDERATIONS, BUT NEVER. NOTHING'S MARKED UP. FOR INSTANCE, IN THE BAY AREA IN CALIFORNIA, THERE'S PROBABLY A SCHOOL THAT HAS $100 MILLION PROPERTY ON THE BOOKS, MAYBE NOTHING. IT'S FULLY DEPRECIATED. YEAH. AND THEN FINALLY, I JUST WANT TO THANK EVERYONE. I KNOW THERE'S BEEN SOME BUMPY AUDITS IN THE PAST, BUT I REALLY WANT TO REASSURE EVERYONE HERE THAT EVERYONE AT THE CITY WAS WONDERFUL TO WORK WITH. WHEN WE MADE OUR AUDIT REQUEST. SHE DOES AN EXCELLENT JOB FIRST OFF OF TRACKING THOSE REQUESTS SO THEY TAKE IT SERIOUSLY. WE'RE NOT HAVING TO HOUND THEM. REMEMBER THOSE 50 THINGS WE ASKED FOR ON MONDAY? WELL, IT'S TWO WEEKS LATER. I HAVEN'T HEARD, SO NO ISSUES THERE.

EVERYONE'S REALLY I GET THE SENSE THEY REALLY LIKE THEIR JOB AND THEY'RE IN TURN HAPPY TO HELP US OUT. SO REALLY GREAT PROCESS. SO A LOT OF THAT, CERTAINLY WITH PAM AND HER LEADERSHIP AND THEN BROOKE SPRINGS AND SOME GREAT ACCOUNTING KNOWLEDGE. I KNOW AND ONE REASON WHY THE CITY'S FINANCIAL STATEMENTS WERE VERY EASY TO AUDIT THIS YEAR.

QUESTION ABOUT THE. POSTING OF ASSETS THAT WE'VE HAD PROBLEMS WITH AND WORKED THROUGH THAT.

HOW DO YOU FEEL LIKE WE'RE IN? YEAH. AND UNFORTUNATELY NOW THERE'S A FINDING LAST YEAR, BUT REALLY RELATED TO THE YEAR BEFORE. SO WE COULD TELL LAST YEAR IT WAS IN CLEAN SHAPE. BUT AND THIS YEAR'S FINANCIAL STATEMENTS, THERE'S A SCHEDULED ABOUT PRIOR AUDIT FINDINGS. AND WE NOTE THAT THAT WAS RESOLVED. WE DIDN'T FIND ANY ISSUES THERE THIS YEAR. I THINK IT'S IMPORTANT FROM A STANDPOINT OF ACCOUNTING THAT WHEN THINGS ARE POINTED OUT THAT THINGS ARE FIXED. SO I THINK IT WAS ROUGH SOMETIMES, BUT IT'S GOOD TO SEE THAT THE LETTER RESOLVED OTHERWISE. INDEED, YEAH. WE ALSO HAD SOME PRACTICE. YEAH. PRACTICE A LITTLE BIT WITH OUR ONE OF OUR MAIN ACCOUNTANTS THAT HAS A LOT OF EXPERIENCE IN THAT SPENT SOME TIME JUST SAYING, HEY, THIS IS WHAT YOU NEED TO BE PREPARED FOR WHEN THE AUDITORS COME OUT AND THAT TYPE OF THING. SO I THINK THAT REALLY HELPED KIND OF GIVE SOME TRAINING TO THE STAFF THAT OVERSEES SOME OF THOSE AREAS, A LITTLE BIT MORE OF WHAT'S EXPECTED. AND I THINK THAT WAS REAL HELPFUL AS WELL. I'LL JUST MAKE MY COMMENT THAT I GENERALLY MAKE. I THINK IT'S IMPORTANT THAT WE DO HAVE THESE AUDITS AND HAVE THEM IN VARIOUS PLACES. SOMETIMES WHEN WE DO CHANGE AUDIT COMPANIES, YOU GET SOME NEW INSIGHTS SOMETIMES. AND BUT I KNOW WE CAN'T SHOP

[00:35:01]

AND THEN WE TRY TO ISSUE IDEALLY BY THE END OF MARCH. BUT WE HAD A LITTLE BIT OF BACK AND FORTH THAT WE HAD TO FINISH UP, AND WE GOT IT BY APRIL 2ND THIS YEAR. OKAY. I WANTED TO TALK A LITTLE BIT ABOUT OUR PRIOR YEAR FUNDING AND THE STATUS THAT YOU MENTIONED, COUNCILOR RADFORD, THE PRIOR YEAR FUNDING WAS RELATED TO POWER AND FIBERS, CAPITAL ASSETS THAT WE IDENTIFIED LAST YEAR, CORRECTED ALL THE PRIOR FISCAL YEARS AND RESTATED OUR FINANCIAL STATEMENTS THAT DID NOT RECUR AS AN ISSUE. WE'VE RESOLVED IT AND MOVE FORWARD.

SO WE'RE FEELING GOOD THAT WE HAVE A BETTER PROCESS IN PLACE TO BE ABLE TO MAKE SURE WE'RE CAPTURING ALL THE ASSETS AND THE PROJECTS AND THE WORK ORDERS THAT MAKE UP ALL OF THOSE ASSETS FOR POWER AND FIBER. SO WE WANT TO MAKE SURE WE CONTINUE THAT. WE'VE WORKED WITH OUR TEAM TO KIND OF DOCUMENT THE STEPS AND MAKE SURE WE DON'T HAVE ANY HOLES IN THOSE STEPS, SO THAT WE CAN ENSURE THAT THAT DOESN'T CONTINUE TO BECOME AN ISSUE. SO THEN THE ISSUE THIS YEAR WAS AS DESCRIBED. IT'S THE ISSUE AROUND CHECKING THAT SUSPENSION AND DEBARMENT FOR OUR FEDERAL AWARDS OVER 25,000. IT WAS A SIGNIFICANT DEFICIENCY LAYER UP TO THE UP FROM THAT WOULD BE A MATERIAL WEAKNESS. SO IT'S KIND OF THE SECOND LAYER DOWN OF THE TYPE OF FINDING, BUT IT'S STILL SIGNIFICANT THAT WE WANT TO MAKE SURE WE'RE ADDRESSING IT.

SO WHAT WE ARE WORKING ON FOR THAT PROCUREMENT SUSPENSION AND DEBARMENT ISSUE IS WORKING WITH DEPARTMENTS. WHEN THEY APPLY FOR GRANTS, WORK WITH THEM AS THEY'RE GOING TO AWARD A PROCUREMENT CONTRACT TO MAKE SURE THAT WE CHECK THE SAM.GOV AT THAT POINT, NOT WHEN IT COMES TO FINANCE, BECAUSE WE COULD DO IT THEN, BUT THEN WE'VE ALREADY AWARDED IT. SO WE WANT TO TRY TO GET IT RIGHT AT THE SOURCE BEFORE IT EVEN COMES TO COUNCIL. CHECK THAT SUSPENSION DEBARMENT DOESN'T EXIST SO THAT WE FEEL GOOD GOING INTO AWARDING A CONTRACT TO ANY VENDOR. SO A LOT OF THAT IS JUST COMMUNICATING AND COORDINATING WITH OUR DEPARTMENTS AND MAKING SURE THEY'RE AWARE OF THAT REQUIREMENT WHEN THERE IS A FEDERAL GRANT INVOLVED. SO YOU'RE SUGGESTING STAFF THAT'S INVOLVED IN WRITING THESE GRANTS HAS A CHECKLIST IN FRONT OF THEM, AND THAT'S INCLUDED ON THE CHECKLIST, BECAUSE PEOPLE ARE GOING TO FORGET ONCE THAT ONCE THAT GRANT IS AWARDED, WE KIND OF TRY TO MEET WITH DEPARTMENTS AND SAY, WHAT'S GOING ON IN THE GRANT? WHAT ARE YOU TRYING TO DO? WHO, WHAT'S THE PROCESS? WHAT DO YOU NEED TO CONTRACT OUT? OR IS IT GOING TO BE INTERNALLY PERFORMED WORK WITH THE DEPARTMENT SO THEY KNOW THE REQUIREMENTS AT THAT POINT. WHAT IS OUR VENDOR PACKAGE. SORRY. WHAT IS OUR VENDOR PACKAGE PROCESS LIKE? THAT'S WHERE WE REALLY DO THIS WORK. SO WHEN SOMEONE'S GOING TO DO BUSINESS WITH US, WE ASK FOR WHAT? WE DON'T ASK FOR THAT AT THAT POINT BECAUSE WE DO A LOT OF BUSINESS THAT'S NOT UNDER FEDERAL GRANTS. BUT IF WE WERE TO AWARD TO A VENDOR, WE WOULD GET THE VENDOR PACKAGE IF IT'S A NEW VENDOR, BUT THEN WE COULD ADD THAT INTO THE CHECK WHEN WE'RE ADDING THE VENDOR. BUT IT'S REALLY WHEN WE'RE MAKING THAT AWARD TO A VENDOR. YEAH, WE DO IT AT THE BEGINNING SO THAT WE DON'T WASTE TIME WITH SOME OF THIS, BUT IT ALSO COULD CHANGE. WE MIGHT HAVE A VENDOR THAT WE'VE HAD FOR TEN

[00:40:02]

SO THAT'S 1.1 MILLION OF THAT. WE HAVE ANOTHER 7.2 MILLION OF THAT FUND BALANCE THAT IS RESTRICTED FOR OR COMMITTED TO OUTSTANDING ENCUMBRANCES. IT'S ESSENTIALLY CONTRACTS THAT WE'VE ALREADY OBLIGATED OURSELVES TO ACROSS STREET CONTRACTS, PUBLIC SAFETY, GENERAL GOVERNMENT, LIKE THE ERP PROJECT, WAS 3.5 MILLION OF THAT AMOUNT. AND THEN JUST GENERAL OPERATIONS THAT THE FISCAL YEAR END, WE HAVE OUTSTANDING CONTRACTS THAT WE'RE OBLIGATED TO PAY THOSE VENDORS ONCE THEY PERFORM, THEN WE HAVE ANOTHER 15.1 MILLION THAT IS ASSIGNED. PART OF THAT IS OUR MRF, THE SAVINGS UP FOR REPLACEMENTS OF CAPITAL, AS WELL AS FUNDS THAT ARE IN CAPITAL PROJECT FUNDS. SO THINGS LIKE THE FRONTIER CENTER, GOLF CAPITAL PROJECTS, THE ZOO, WE HAVE A LOT OF CAPITAL PROJECT FUNDS THAT THOSE FUNDS ARE SET ASIDE FOR SPECIFIC PURPOSES. AND THEN WE ALSO HAVE THE HEALTH INSURANCE SELF-INSURANCE RESERVE OF 4.7 MILLION. SO THAT MAKES UP ABOUT ABOUT HALF OF THAT 32 MILLION.

THE ONLY AMOUNT THAT IS UNASSIGNED, MEANING IT COULD BE USED FOR ANY PURPOSE, IS 8.2 MILLION SITTING IN THE GENERAL FUND. SO THAT'S WHAT WE TRULY HAVE UNOBLIGATED OR SET ASIDE FOR ANY OTHER PURPOSE. SO DOESN'T MEAN THAT SOME OF THOSE FUNDINGS COULD BE REPURPOSED. A LOT OF THAT ASSIGNED FUND BALANCE COULD BE MOVED TO OTHER THINGS. I JUST WANTED YOU TO BE AWARE THAT IT'S NOT JUST 32 MILLION SITTING FOR ANYTHING. 8 MILLION OF THAT, 8.2 MILLION OF THAT IS AVAILABLE TO GO FOR ANY PURPOSE. AND THAT'S THE AMOUNT WE WOULD IDEALLY HAVE A LITTLE MORE IN SO THAT WE COULD WEATHER ANY STORM THAT COMES. OUR PROPERTY TAXES DON'T GENERALLY COME IN UNTIL JANUARY, SO THAT'S FOUR MONTHS OF THE YEAR THAT WE'RE HAVING TO KIND OF COVER GENERAL FUND EXPENSES. SO IDEALLY, WE'D WANT MAYBE ABOUT 20, 25% IN THAT AMOUNT, WHICH IS CLOSER TO LIKE 15 TO 20 MILLION, 8 MILLION. SO THAT'S JUST SOMETHING TO BE AWARE OF THAT IT SEEMS LIKE A BIG NUMBER, BUT IT GOES REALLY QUICKLY WHEN YOU THINK OF ALL

[00:45:06]

IF FEDERAL DOLLARS ARE GOING TO BE USED FOR THE PURCHASE, YOU KNOW, CHECKING SAM.GOV HAVING IT RIGHT THERE AND THE PURCHASING POLICY, I THINK WHAT I REVIEWED AT THE VERY END THERE WAS A REFERENCE TO A FEDERAL PROCUREMENTS. BUT IF IT'S CONVENIENT JUST TO BAKE THAT INTO THE POLICY, I THINK THAT WOULD BE A QUICK THING TO DO. AND THEN THE FINAL ONE WAS CYBERSECURITY IS IMPORTANT. I'M ALWAYS REQUIRED TO DO TRAININGS AT MY FIRM. HAVING SOMETHING IN THERE THAT SAYS, YOU MUST TAKE RESPONSIBLE CYBERSECURITY AND OTHER MEASURES TO SAFEGUARD INFORMATION, INCLUDING PERSONALLY IDENTIFIABLE INFORMATION, OTHER TYPES OF INFORMATION. NOW, IF THAT'S IN YOUR EMPLOYEE HANDBOOK AND THAT COVERS EVERYTHING, THEN I WOULDN'T WORRY ABOUT IT. BUT CONSIDERING THAT IN PROCUREMENT POLICY TOO, AND WE ADDED THE ITEMS, THE FIRST COUPLE OF ITEMS WE ADDED INTO THE MATRIX THAT IS ATTACHED BECAUSE AS KEVIN HAD MENTIONED, THERE WAS A COMMENT ABOUT FEDERAL GRANTS TOWARDS THE END OF THE WRITTEN POLICY. WE'VE GONE AHEAD AND ADDED THOSE INTO THE CROSSWALK MATRIX. SO IT'S CLEARLY THERE

[00:50:02]

I DON'T KNOW IF I'M RIGHT, BUT THAT'S WHAT I, I CAN'T REMEMBER WHAT THE LAST EMAIL SAID. YEAH, WE, WE, WE DID, WE DID RECEIVE THOSE COMMENTS FROM KEVIN AFTER I HAD SENT IT OVER AFTER THE MARCH 30TH COUNCIL WORK SESSION. AND YOU KNOW, I CAN TAKE THOSE OUT, BUT I WENT AHEAD AND PUT THOSE IN JUST BECAUSE I DIDN'T FEEL THAT THEY WERE SIGNIFICANT ENOUGH TO, AS I MENTIONED EARLIER, TO BE A DEAL BREAKER FOR ANY OF THE DEPARTMENTS, IT JUST PROVIDED ADDITIONAL CLARIFICATION. THE MAJORITY OF THE LANGUAGE WAS ACTUALLY ADDED TO THE MATRIX, THAT MATRIX CROSSWALK THAT WE HAVE. JUST AS A GENTLE REMINDER FOR TO BE COMPETITIVE WHERE FEASIBLE, BECAUSE WE HAD A LONG CONVERSATION ABOUT THAT LANGUAGE, THAT LANGUAGE IS STILL IN THERE. AND THEN, OF COURSE, THE CYBERSECURITY POLICY, I CHECKED OUR PERSONNEL POLICY. I DIDN'T SEE IT IN THERE. SO I WENT AHEAD AND JUST ADDED IT AS A BULLET POINT TO THE PROCUREMENT POLICY. NOW I COULD BE HAPPY TO TAKE THEM OUT. BUT RIGHT NOW IN THE COUNCIL MEMO FOR THIS THURSDAY, THESE SUGGESTED THESE SUGGESTED VERBIAGE OR LANGUAGE, IF YOU WILL, FOR CLARIFICATION PURPOSES ARE INCLUDED, BUT I CAN CERTAINLY TAKE THEM OUT IF YOU PREFER THAT. I STILL HAVE TIME. I'M JUST ME, BUT I WOULD PREFER THAT WE SEE ONE WITH THE RED LINE OF THAT ONE. SO I COULD TELL THE DIFFERENCE BETWEEN WHAT WE DISCUSSED IN THE WORK SESSION AND WHAT WAS ADDED FOR THIS. THAT WOULD HELP IN THINKING IT THROUGH. THAT'S ACTUALLY WHERE I PERSONALLY WOULD FIND IT HELPFUL TOO, IS IT'S ACTUALLY IN THE POLICY BECAUSE I KNOW IT SAYS LIKE GOOD SUPPLIES AND EQUIPMENT, BUT THAT POLICY IS VERY THICK.

AND SO IT WOULD BE GOOD TO KNOW, LIKE THE CONTEXT OF WHERE IT IS PLACED WITHIN THE POLICY, SO THAT WHEN WE HAVE THE CONVERSATION WITH DIRECTORS THAT I KNOW THAT IT'S LIKE, OH, THIS SHOULDN'T BE A BIG DEAL. BUT SOMETIMES I'M SURPRISED. WELL, THAT'S TOTALLY, I JUST THINK IF IT WAS, IF IT'S RED OR SOMETHING SO THAT IT, IT DRAWS OUT SPECIAL ATTENTION TO IT, THAT WOULD BE HELPFUL. THAT WOULD HELP. THANK YOU. ABSOLUTELY. OKAY. I DO HAVE A QUESTION AND I DON'T KNOW. WE HAVE AN INTERNAL LOAN POLICY. I JUST WANTED TO ASK YOUR OPINION ABOUT IT. I GUESS, ABOUT DOES THAT RAISE ANY EYEBROWS THAT WE LOAN MONEY FROM AN ENTERPRISE FUNDS TO TO GENERAL FUND DEPARTMENTS OCCASIONALLY. YEAH. THERE'S NOTHING WRONG WITH OCCASIONALLY DOING THAT. IF IT IS NOT GOING TO BE PAID BACK IN THE NEXT YEAR, AND THERE SHOULD PROBABLY BE SOME FORMAL ACTION TAKEN, SUCH AS HAVING A PAYMENT PLAN. WE DO HAVE, YOU KNOW, WE DO SET IT UP THAT WAY, RIGHT? I'M THINKING SPECIFICALLY OF LIKE THE WHEN WE DID THE ONE FOR THE GOLF COURSE WITH THE SPRINKLER SYSTEM AND STUFF. YEAH. SO WE ACTUALLY USE MORE THAN ONE DEPARTMENT TO MAKE THOSE, MAKE THAT LOAN AND ALL THAT IS DOCUMENTED THAT ACTUALLY COMES TO COUNCIL FOR APPROVAL PRIOR TO THE TRANSFER. THOSE DOLLARS, IF YOU WILL, SUPPORT THAT PARTICULAR PROJECT THAT COUNCIL'S APPROVED. SO IF THE AUDITORS WERE TO SAY, HEY, YOU KNOW, I WANT TO LOOK AT THIS HYPOTHETICALLY, $3 MILLION LOAN TO ONE OF THE GOLF COURSES, WE CAN PRODUCE THAT DOCUMENT. AND AGAIN, WHAT I'VE SAID IN PREVIOUS PRESENTATIONS, BEING ABLE TO DEMONSTRATE THAT WE ARE FOLLOWING INTERNAL CONTROL BEST PRACTICES. AND SO WE DO HAVE THAT POLICY GOING THROUGH COUNCIL FOR APPROVAL. AND WE CLEARLY PROVIDE WHERE THE MONEY IS BEING BORROWED FROM, WHAT THE INTEREST RATE AND PAYBACK IS, AND ALL THOSE LITTLE ELEMENTS OF THE LOAN ITSELF. I JUST I WAS JUST CURIOUS IF SOMETHING THAT, YOU KNOW, WHEN YOU COME ACROSS IT AND YOU GO, WELL, THEY'RE DOING SOMETHING THAT I MEAN, ARE OTHER PEOPLE DOING THAT? YEAH, YEAH, THAT'S THAT'S NOT UNUSUAL. OKAY. ALL RIGHT, ALL RIGHT. THANKS.

[00:55:06]

THEN WE'LL TALK ABOUT THE METHODOLOGY AND KIND OF THE APPROACH AND CONSIDERATIONS THAT WERE MADE. ALSO, PROBABLY SOME OF THE WORKSHOP FEEDBACK WE GOT. WE'LL GO THROUGH SOME EXAMPLES OF HOW THIS COST ALLOCATION WORKS AND HOPEFULLY UNDERSTAND THE DETAILS BEHIND IT WITHOUT HAVING TO GO OVER EVERY SINGLE WORKSHEET IN DETAIL BEHIND IT. AND THEN WE'LL TALK ABOUT EACH DIVISION THAT IS ALLOCATED AND WHAT THE PAST HAS BEEN. THE FIRST IS WHAT THE NEW COST ALLOCATION POLICY DRIVERS ARE. OKAY, SO THE DEPARTMENTS AND DIVISIONS THAT WE ARE INCLUDING AS INDIRECT AND COST ALLOCATED, ARE THINGS LIKE THE MAYOR'S OFFICE, THE ECONOMIC DEVELOPMENT COUNCIL CLERK, LEGAL EXCLUSION, EXCLUSIVE OF THE PROSECUTION PORTION OF OUR LEGAL DEPARTMENT. SO OUR MUNICIPAL SERVICES ADMINISTRATION, OUR IT, OUR TREASURY TEAM, OUR UTILITY BILLING TEAM, FINANCE, HR RISK, WHICH INCLUDES OUR LIABILITY INSURANCE AS WELL AS WORKER'S COMP, OUR GIS AND OUR PUBLIC WORKS ADMINISTRATION. SO IF YOU THINK OF THESE DIVISIONS, A LOT OF THEM SERVE. THEY SERVE THE WHOLE CITY FOR THE MOST PART. WE HAVE A FEW THAT ARE ONLY SERVING CERTAIN DEPARTMENTS, AND THEY ARE ONLY ALLOCATED TO CERTAIN DEPARTMENTS. BUT IF YOU THINK OF OUR IT TEAM, THERE ARE CERTAIN THINGS THAT THEY DO THAT ARE DIRECTLY FOR A SPECIFIC PART. WE CALL IT

[01:00:03]

THERE'S LOTS OF DIFFERENT DRIVERS. AND SO THAT'S WHY WE WANT TO GET THIS DOCUMENTED.

HERE'S HOW WE'RE PLANNING TO DO THIS AS A CITY. SO THE THINGS THAT IT IS NOT IS WORK ORDER BILLINGS. WE HAVE A COUPLE OF DEPARTMENTS WHO CHARGE THEIR TIME TO DIRECT WORK ORDERS, AND THOSE ARE CHARGED TO THAT BENEFITING DEPARTMENT THINGS LIKE EQUIPMENT MAINTENANCE.

YOU'RE TAKING IN A FIRE TRUCK. IT'S GETTING SERVICE. FIRE IS GOING TO PAY FOR THAT. IF YOU TAKE IN YOUR EXPLORER, WHOEVER'S DEPARTMENT THAT IS, THAT'S WHO PAYS FOR THE FUEL, THE MAINTENANCE AND THOSE COSTS ASSOCIATED. WE HAVE ENGINEERING WHO ALSO BUILDS OUT THEIR TIME SPECIFIC TO THE JOB THAT THEY'RE WORKING ON, WHETHER IT'S WATER OR SEWER OR STREETS, THEY'RE CHARGING THEIR TIME. AND THEN THERE'S OTHER DEPARTMENTS WHO KIND OF ON AD HOC BASIS DO CERTAIN JOBS FOR CERTAIN DEPARTMENTS. POWER DOES ELECTRICAL WORK FOR A PARK OR PARKS DOES WORK FOR POWER. SO WE DO SOME OF THOSE DIRECT CHARGES BACK AND FORTH DEPENDING ON THE CIRCUMSTANCES. WE THEN ALSO HAVE A FEW AGREED UPON TRANSFERS THAT WE BUDGET EACH YEAR. AIRPORT FIRE PROTECTION. THAT'S WHERE AIRPORT IS PAYING OUR FIRE TEAM FOR THE SUPPORT. WE HAVE AIRPORT SECURITY AIRPORTS PAYING DIRECTLY TO POLICE FOR THAT AGREED UPON AMOUNT, AND THEN DISPATCH SERVICES WHICH LIVE IN OUR POLICE DEPARTMENT, FIRE AND EMS PAY A PORTION OF THAT AS WELL. AND THEY AGREE UPON AN AMOUNT THAT WE BUDGET EACH YEAR. AND I'M GOING TO GIVE US A CHANCE TO PAUSE FROM THAT SIDE. BUT, YOU KNOW, FOR SOME OF YOU, REMEMBER, WE HAD THIS CONVERSATION A WHILE AGO ABOUT EQUIPMENT MAINTENANCE. WE HAVE WE STOOD UP A NUMBER OF YEARS AGO, WHAT THEY CALL ASSET WORKS THAT CHARGES BY THE UNIT.

SO THAT ONCE WE STOOD THAT SOFTWARE UP AND WE WERE ABLE TO REPORT AND WE REPORT ON THE USE PER UNIT ON A MONTHLY BASIS, NOT NOT JUST FUEL, BUT ALL OF THE THINGS THAT ARE DONE TO THAT PARTICULAR UNIT THAT HAS RESOLVED A LOT OF THE CONCERNS THAT WERE PROBABLY ADDRESSED MAYBE 7 OR 8 YEARS AGO. AND THAT SEEMS TO BE WORKING REALLY WELL FOR EVERYBODY. SO I JUST WANTED TO MAKE THAT COMMENT THAT WE HAVE KIND OF TAKEN THAT ONE UNDER CONTROL. AND SO THAT'S ONE DOESN'T APPEAR TO BE AN ISSUE AT THIS TIME. ALL RIGHT. SO THOSE COST ALLOCATED DEPARTMENTS THAT ARE INDIRECT ESSENTIALLY IT'S A LOT OF THOSE SERVICES THAT IT WOULD IT WOULD NOT BENEFIT TO TAKE ALL THE TIME TO TRACK EVERY SINGLE THING THAT YOU'RE DOING FOR EVERY SINGLE DEPARTMENT. YOU'RE, YOU'RE BENEFIT DOESN'T OUTWEIGH THE COST OF THAT. SO THOSE ARE THOSE AREAS WHERE WE'RE DOING THOSE INDIRECT COST ALLOCATIONS. SO IN PRACTICE, YOU WANT THAT ALLOCATION TO BE SYSTEMATIC. YOU WANT IT TO HAVE SOME RATIONALE BEHIND IT. YOU WANT IT TO BE REASONABLE AND FAIR AND UNDERSTANDABLE AND THEN IDEALLY CONSISTENT. BUT YOU'RE TRYING TO REASONABLY APPROXIMATE THAT PROPORTIONAL SHARE OF BENEFIT TO THOSE DEPARTMENTS YOU'RE CHARGING IT TO. AND SO YOU COME UP WITH A BASIS FOR THAT, AND THEN YOU MOVE FORWARD. AND THAT'S HOW YOU CHARGE THINGS OUT. SO SOME THINGS THAT WE'RE CONSIDERED AS WELL, WE WANT TO MAKE SURE THAT IT'S REPEATABLE. SO WHATEVER DATA OR BASIS WE'RE USING, WE WANT IT TO BE REPEATABLE. SO WE'RE NOT JUST SAYING, OH, WE GOT THIS REPORT THIS YEAR AND THEN NEXT YEAR THAT REPORT DOESN'T EXIST. LET'S TRY AND FIGURE OUT ANOTHER WAY. YOU WANT IT TO BE CONSISTENT DATA. YOU WANT TO AVOID HUGE THINGS THAT IT'S RELATIVELY PREDICTABLE IN THE WAY YOU'RE CHARGING THINGS OUT. SO IT'S NOT BIG HUGE BUMPS EVERY YEAR.

IT'S BIG SWINGS. YOU WANT IT TO REPRESENT THOSE SERVICES THAT ARE BEING PROVIDED. SO IN THE COST ALLOCATION POLICY THAT'S DOCUMENTED, EACH DIVISION OR DEPARTMENT THAT IS ALLOCATED HAS A DESCRIPTION OF WHAT ARE THOSE SERVICES THAT ARE BEING PROVIDED SO THAT IT'S CLEAR WHAT IT IS AND WHAT IT ISN'T. AND THEN YOU WANT TO MAKE SURE THE BENEFIT OF THOSE INDIRECT COSTS IS YOU'RE GETTING THE KIND OF ECONOMIES OF SCALE. IF EVERY SINGLE DEPARTMENT HAD TO HIRE ON THEIR OWN FINANCE TEAM, THEIR OWN LEGAL TEAM, THEIR OWN HR TEAM, THEIR OWN IT, AND SET UP A WHOLE NETWORK, YOU'RE GOING TO HAVE MULTIPLIED COSTS ACROSS THE ORGANIZATION. SO IT'S THAT CENTRALIZED COST THAT CAN BENEFIT THE WHOLE CITY. SO YOU GET SOME OF THAT ECONOMY OF SCALE. OF COURSE, ON THAT POINT, HOW MANY OF OUR. REVENUE DOLLARS COME IN REQUIRE THAT WE DON'T DO INDIRECT, THAT WE DON'T SHARE COSTS? THERE'S NOT MANY. THERE ARE CERTAIN THINGS

[01:05:04]

YES. SO IT WASN'T IT WAS ANYBODY OTHER THAN ACTUALLY DID HAVE THEIR DEPARTMENTS HAD COST ALLOCATION ASSOCIATED WITH IT? YEAH. SO THE WAY WE DETERMINE THE AMOUNT THAT GETS ALLOCATED OUT EACH YEAR DUE TO THE TIMING OF OUR BUDGET PROCESS, WE TAKE EACH DEPARTMENT'S BUDGET AND ADD 5% TO SAY, THIS IS HOW MUCH NEXT YEAR WE'RE PLANNING TO ALLOCATE OUT TO THE OTHER DEPARTMENTS. AND PRIMARILY A LOT OF THESE ARE HEAVILY PEOPLE BASED, AND THAT'S USUALLY ABOUT THE OVERALL PAYROLL INCREASE WE HAVE. SO THE ACTUAL BUDGET MAY VARY FROM THAT. AND THEN A

[01:10:03]

WE DID LOOK AT THE NUMBERS BOTH WAYS. IT DOESN'T CHANGE MUCH BECAUSE IT'S JUST IT'S ACROSS THE GENERAL FUND, IT'S ACROSS. AND THEN PUBLIC WORKS AND POWER. SO IT DID NOT CHANGE MUCH. IT CHANGED ABOUT 40,000 OF THE ALLOCATION. SO WE DIDN'T INCLUDE DEBT SERVICE. THREE AREAS THAT WE JUST HAVE PULLED OUT OF. THOSE TOTALS OF FIVE YEAR ACTUALS ARE THE BUSINESS IMPROVEMENT DISTRICT. WE GET ABOUT $100,000 EACH YEAR THAT WE PASS THROUGH ONTO THE BUSINESS IMPROVEMENT DISTRICTS. WE DON'T WANT TO ALLOCATE THEM A PORTION OF THE COST ALLOCATION. THERE'S NOT MUCH MONEY THERE IN THE FIRST PLACE. AND THEN RISK OUR RISK FUND, WHICH HOUSES OUR WORKER'S COMP AND LIABILITY CLAIMS. WE PULLED THAT OUT BECAUSE IT'S ALREADY BEEN COST ALLOCATED THROUGH. WE'LL TALK ABOUT THROUGH THESE OTHER MEASURES. AND THEN OUR HEALTH INSURANCE SAVINGS IS ALSO ALREADY BEEN ALLOCATED THROUGH THE PAYROLL CONTRIBUTIONS INTO THAT. SO WE EXCLUDE THOSE FROM THE DEDICATED EFFORTS THAT ARE ALREADY BEING ALLOCATED. WHAT DO WE DO WITH SOMEBODY LIKE NPO? THEY ARE PART OF COMMUNITY DEVELOPMENT SERVICES. OKAY. SO THEY JUST IT'S IT'S RESTS IN THEIR BUDGET. YEAH. SO THIS IS A REALLY, REALLY TINY EXAMPLE. I CAN'T REALLY SEE MUCH, BUT YOU DON'T NECESSARILY NEED TO

[01:15:04]

BUT BECAUSE YOU'RE CREATING PERCENTAGES MOSTLY FROM THIS, YOU'RE NOT REALLY SPENDING.

CORRECT. SO THAT COLUMN IS THE 5% INCREASE. AND THEN WE TAKE THAT FIVE YEAR AVERAGE OF ACTUAL EXPENDITURES AND ALLOCATE IT OUT TO EVERYBODY TO DETERMINE WHAT PERCENTAGE OF THE PIE THEY GET TO CONTRIBUTE THIS ECONOMIC DEVELOPMENT. YOU CAN SEE THE AIRPORT LINE IS ZERO BECAUSE AIRPORT IS NOT ALLOWED TO PAY FOR ECONOMIC DEVELOPMENT ACTIVITY. SO THAT'S SOMETHING THAT I THINK LAST YEAR WE CHANGED TO MAKE SURE THAT WAS NOT INCLUDED. BUT ON THE OTHER DEPARTMENTS, YOU'LL SEE AIRPORT IS PART OF THAT PERCENTAGE AND GETS A PIECE OF THAT PIE. YOU MEAN ECONOMIC DEVELOPMENT. SORRY. YES. ECONOMIC. THAT'S KIND OF INTERESTING BECAUSE GRANT WRITING ALSO, IF YOU'RE GETTING ANY FEDERAL MONEY, YOU CAN'T CHARGE GRANT. LIKE THEY'RE NOT ALONE IN THAT. SO WHAT IS OUR INTERNAL CONTROLS CONTROLS TO MAKE SURE THAT IF YOU HAVE AN EMPLOYEE WORKING ON A GRANT THAT'S BEING PAID FOR BY A FEDERAL GRANT AND THEY'RE ASKING FOR MONEY FROM ANOTHER GRANT, THE FEDERAL GOVERNMENT DOESN'T ALLOW YOU TO DO THAT. YEAH. AND WE AGAIN, THE INDIRECT COSTS WERE NOT INCLUDING THOSE ON ANY GRANT REIMBURSEMENTS. BUT AIRPORT HAS AN ADDITIONAL LAYER OF JUST AIRPORT REVENUES, CANNOT PAY FOR ECONOMIC DEVELOPMENT EVEN BEYOND GRANT REVENUES. SO LIKE YOUR PARKING, ANY REVENUE. CORRECT? CORRECT. SO WE DO THIS ALLOCATION. WE DETERMINE THE PERCENTAGE FOR EVERYBODY. AND THEN THAT'S THE PERCENTAGE THEY'RE PLANNING TO PAY FOR FOR ECONOMIC DEVELOPMENT. THEN WE DO THAT EXERCISE ESSENTIALLY FOR EVERY SINGLE DEPARTMENT AND DIVISION THAT'S COST ALLOCATED TO COME UP WITH THE KIND OF EACH COLUMN HERE IS A DIFFERENT DEPARTMENT DIVISION. ECONOMIC DEVELOPMENT ISN'T ONE OF THEM. AND THEN OUR LEFT HAND SIDE ROWS ARE WHO IS ACTUALLY ALLOCATED DEPARTMENTS. THE TOP HAS THE VARIANCES FROM THE PRIOR YEAR. AND THEN HERE'S THE CURRENT YEAR ALLOCATION. AND THEN AT THE BOTTOM SOME PERCENTAGES AND CHANGES OF HERE'S HOW MUCH IT CHANGED FROM THE PRIOR YEAR AND WHO WAS PAYING WHAT. AND THEN TO THE FAR RIGHT, A SIMILAR ANALYSIS OF WHAT IS THE CHANGE FROM THE PRIOR YEAR THIS YEAR, WITH THE CHANGES THAT HAVE BEEN MADE, THE BIGGEST CHANGE IS PRIMARILY TO THE IT BUDGET. ALL THE PAST DEPARTMENT DIVISIONS WERE MOSTLY BASED ON BUDGET. SO WHEN WE CHANGED ACTUALS, IT DOESN'T CHANGE THINGS SIGNIFICANTLY, BUT IT PREVIOUSLY WAS BASED ON NUMBER OF USERS. AND THE NEW METHODOLOGY IS TO DO BASED ON FIVE YEARS OF ACTUAL. SO THERE'S A BIG SWING THAT WE'LL TALK ABOUT A LITTLE BIT RELATED TO I.T. SO THE PERCENTAGES, THAT'S WHERE THE MEAT IS AND HOW YOU'RE GOING TO TELL US HOW WE. BECAUSE AS A PERCENTAGE FOR THESE GUYS, YOU'RE SAYING THAT THEIR, THEIR PAYROLL, THEIR RENTAL SPACE, ALL OF THAT'S INCLUDED IN WHAT THEY SPENT. AND SO THAT'S WHERE YOU GET 5%. WHICH WHERE ARE YOU LOOKING? 5.36% TRANSFER DIFFERENCE OR WHAT PERCENTAGE ARE YOU SAYING ECONOMIC DEVELOPMENT IS OF OF THE GENERAL FUND? IF YOU GO BACK, OH, WE'LL GO BACK. SO GENERAL FUND IS 35% OF ECONOMIC DEVELOPMENT AND THE REST IS ALLOCATED OUT TO THE OTHER DEPARTMENTS. OKAY. SO. OKAY, SO ANY QUESTIONS ON JUST THE KIND OF CALCULATIONS AND HOW WE GET THERE. AND THEN WE'LL TALK ABOUT THE DETAILS BEHIND EACH DIVISION AND HOW WE GET TO THE NUMBERS THERE. SO WHAT IS THE ENTERPRISE FUNDS PERCENTAGES HERE? DID YOU GET 30% FOR THE POWER. BUT WATER, SANITATION, WASTEWATER AND IS THAT ALL? IT'LL BE THE LAST SIX OR JUST THE LAST FIVE ARE ALL THE ENTERPRISE FUNDS. BUT I GUESS WHAT I'M TRYING TO FIGURE OUT WATER, SANITATION. 1214. I'M

[01:20:02]

YOU THINK OF PARKS AND REC. THEY HAVE A LOT OF SEASONALS, BUT THEY'RE ENTRY LEVEL SEASONALS. SO THERE'S A LOT OF ACTIVITY, BUT IT'S NOT NECESSARILY A BIG DOLLARS COMPARATIVELY. IT'S NOT TAKING A LOT OF THEIR TIME. IT TAKES A LOT OF TIME, BUT MAYBE NOT A LOT OF DOLLARS. SEE, THAT'S WHERE I THINK IT'S INTERESTING A LITTLE BIT IS GETTING TO THE STANDPOINT OF PAYROLL FOR SOME HR, BECAUSE IT'S NOT A LOT OF DOLLARS, BUT IT'S A LOT OF TIME IN THAT PAYROLL. BUT THAT'S ALL REFLECTED IN THEIR PAYROLL, HOW IT'S ALLOCATED WITH THIS ALLOCATION THAT IS SOMEWHAT ACCOUNTED FOR, BUT NOT IN FULL. LIKE IT'S NOT A IT'S NOT A WE'RE GOING TO TRACK EVERYTHING AND HOW MUCH IT COSTS EVERYBODY BECAUSE THE BENEFIT DOESN'T OUTWEIGH THAT COST. AND ONE OF THE, ONE OF THE BENEFITS OF THE ACTUALS IS IT REALLY DOES DEMONSTRATE THE LEVEL OF SUPPORT BY THE DIFFERENT AREAS, SUCH AS, YOU KNOW, MUNICIPAL SERVICES, THE FINANCIAL PROCESSING, ACCOUNTS PAYABLE, THINGS OF THAT NATURE BECAUSE IT'S BASED ON ACTUAL. SO IT DOES REALLY THERE'S MORE OF A NEXUS TO IT ON THE LEVEL OF SUPPORT REQUIRED. THAT SOUNDS GOOD, BUT WHAT YOU SAY DIDN'T SOUND GOOD BECAUSE IF THEY'RE NOT KEEPING TRACK OF HOW MUCH THEY'RE SPENDING THEIR TIME, LIKE FOR ME, MY TIME CARD PROFESSIONAL AUDITS, LIKE MY TIME HAS TO BE ALLOCATED BY THE MINUTE, JUST LIKE AN ATTORNEY.

AND SO IF WE'RE NOT GETTING THAT FROM HR ABOUT WHO'S TIME THEY'RE SPENDING TIME ON IN THEIR, IN THEIR SALARY, BECAUSE IF THEY'RE JUST SALARIED AND JUST CHARGING TO ADMIN AND NOT KEEPING TRACK, THEN I DON'T THINK WE HAVE AN ACCURATE WAY TO KNOW HOW MUCH PARKS AND REC IS USING. SO IF WE HAVE ANYTHING THAT'S FEDERALLY GRANT FUNDED, THAT'S LABOR. THEY'RE CHARGING DIRECTLY TO A TRACKING WORK ORDER OR PROJECT SO THAT WE KNOW EXACTLY WHAT THEY'RE CHARGING. I GET THAT, BUT THAT DOESN'T MAKE ME FEEL BETTER ABOUT THE COST ALLOCATION EITHER. DOES THAT MAKE SENSE? IF YOU DON'T, IF WE DON'T KNOW THAT NUMBER OF HOW MANY HOURS, YOU KNOW, A FULL TIME EMPLOYEE IS SPENDING ON PARKS AND REC AS A PERCENTAGE OF THEIR TIME, I THINK THAT'S WHY WE'RE TRYING TO COME UP WITH THIS METHODOLOGY. THAT IS I MEAN, I HATE TO USE IT THIS WAY BECAUSE IT DOES SOUND FLUFF, BUT YOU WIN SOME, YOU LOSE SOME, RIGHT? LIKE SOMETIMES PARKS USES GIS AND ISN'T PAYING FOR ANY GIS. AND SOMETIMES THEY'RE USING THE, YOU KNOW, IT'S LIKE, WELL, WHEN ARE YOU USING PROCUREMENT AND WHEN ARE YOU AND LIKE, HOW, HOW DETAILED ARE WE GOING TO GET SO THAT EVERY COUNCIL MEMBER IS LIKE, OKAY, NOW I'VE MOVED ON TO THIS NEXT MEMO. I'M GOING TO NOW THINK, OH, I'M SPENDING MY TIME NOW ON BMP, OR I'M GOING TO MOVE ON TO THE NEXT MEMO. SO NOW I'M GOING TO BE TALKING ABOUT FIRE. I MEAN, I JUST THINK EVENTUALLY THEY'RE JUST THESE ARE KIND OF WHY THE WHY THIS FIVE YEAR AVERAGE REALLY IS LIKE JUST A WAY TO TRY AND CAPTURE THIS INSTEAD OF GETTING SO GRANULAR. BECAUSE THEN AS SOON AS YOU GO, AS SOON AS YOU START GETTING REALLY GRANULAR, THEN IT IS LIKE, OH, DID YOU SPEND 40% OF YOUR TIME ON THIS? IT'S LIKE, WELL, I DON'T KNOW, BUT WE SPENT A WHOLE LOT OF TIME TALKING ABOUT IT IN THAT COUNCIL MEETING. I MEAN, I JUST DON'T KNOW HOW WE WOULD EVER TRULY CAPTURE THE TIME THAT YOU'RE TALKING ABOUT COUNCIL MEMBER BRADFORD. BUT THE DILEMMA IS IF YOU DON'T, THEN YOU DON'T KNOW IF THIS IS ACCURATE. I MEAN, YOU HAVE TO DO IT AT A BASE AT SOME POINT. YOU HAVE TO KNOW THE NUMBERS BECAUSE OTHERWISE YOU'RE CREATING ESTIMATES FROM THE BEGINNING WITH HR AND HOW MUCH THEY'RE SPENDING ON PARKS AND RECREATION. AND THAT MAY OR MAY NOT BE TRUE. SO LIKE, I THINK WHAT YOU'RE SAYING IS PERFECTLY RIGHT. IF WE FELT GOOD ABOUT WHAT THE BASE NUMBER WAS FIVE YEARS AGO BECAUSE WE TRACKED THOSE EXPENSES, I'LL GIVE YOU AN EXAMPLE. IN RETAIL, WE USED TO COUNT EVERY MAGAZINE. WE

[01:25:01]

[01:30:03]

NOW BASED ON FIVE YEAR AVERAGE OF ACTUALS. IT IS A UNIQUE ONE. SO IT HAS SOME DIRECT COSTS THAT WE CHARGE DIRECTLY TO THOSE DEPARTMENTS. AND THEN THE REMAINDER IS WHAT GETS ALLOCATED OUT. SO THERE'S NOT A HUGE CHANGE IN WHAT WE HAVE DONE IN THE PAST VERSUS NOW, OTHER THAN AS FAR AS THE DIRECT CHARGES, EXCEPT THAT THOSE DIRECT CHARGES ARE GOING TO BE BASED ON THE FIVE YEAR AVERAGE OF ACTUALS RELATED TO UTILITY BILLING. SO KAYENTA IS THE SERVICE WE USE FOR UTILITY BILLING CURRENTLY. SO ALL THE COSTS DIRECTLY AROUND THAT, AS WELL AS A PERSON AND A HALF FTE AND A HALF WORTH OF OUR IT TEAM GETS DIRECTLY CHARGED TO THOSE UTILITY BILLING DEPARTMENTS. SO THAT'S TAKEN OFF THE TOP OF THE ABOUT 4 MILLION OF ITS BUDGET.

THEN A NEW ITEM IS AIRPORT IS PAYING DIRECTLY FOR ONE FTE WORTH AS WELL. SO THOSE TWO CHARGES ARE TAKEN OFF OF THE TOP. THERE ARE ALSO SOME POWER FUNDED IT POSITIONS THAT THEY HAVE IN THEIR BUDGET. SO THEY HAVE FULL CONTROL OVER THOSE IT POSITIONS. SO THOSE ARE NOT ALLOCATED OUT TO ANYONE ELSE. BUT IS THAT GOING TO WORK WITH FAA REQUIREMENTS? ONE FULL TIME EMPLOYEE PAID FOR IN A CITY. DO WE KNOW THAT OR IS THAT THAT? YEAH, THAT'S AIRPORT DIRECTOR HAS AGREED TO MAKE THAT POSITION. A COUPLE YEARS AGO, WHEN DIRECTOR CLAUDIA WAS HERE, HE REQUESTED A POSITION FOR IT AND WE AGREED. AND I BELIEVE DIRECTOR TURNER IS AWARE OF THIS AS WELL. AS WE AGREED TO GO AHEAD AND HOUSE THE POSITION IN IT. HOWEVER, WE HAVE BENCH DEPTH IN IT. SO IF THAT PERSON IS ON VACATION OR IS SICK, WE'VE GOT A VARIETY OF TEAM MEMBERS THAT CAN GO AND HELP OUT AS WELL. SO THEY'RE FULLY CHARGED FOR ONE FULL TIME POSITION OUT OF THE AIRPORT, BUT THEY'VE GOT ACCESS TO ANOTHER 3 OR 4 BENCH MEMBERS THAT CAN FILL IN IF THEY'VE GOT SOMETHING GOING ON, WHICH HAS HAPPENED FROM TIME TO TIME. SO DIRECT CHARGE COUNCIL MEMBER BRADFORD IS THE PREFERRED METHOD OF DOING THIS. SO THAT ELEMENT OF THIS IS FINE. IT'S A SPECIFIC EMPLOYEE'S ACTUAL WAGES AND BENEFITS. SO BECAUSE BECAUSE YOU'RE SAYING IT'S DIRECT, YOU'RE SAYING YOU'RE PAYING HIM JUST BECAUSE OF YOUR WORK. AND THAT'S A DIRECT CHARGE, NOT AN INDIRECT BECAUSE THEY'RE NOT SHARING, THAT'S WHAT HE'S GOT. BUT HE'S GOT FRIENDS HE CAN CALL ON TO GET INTO SOMETHING AND GO TO A PICKLE. SO ONCE THOSE DIRECT UTILITY BILLING CHARGES AND THE IT STAFF ARE TAKING OFF THE TOP OF THE IT BUDGET, THE REST IS ALLOCATED BASED ON EVERYONE'S PROPORTION OF THE FIVE YEAR AVERAGE. BACHELOR'S. AND THIS IS THE AREA WHERE WE HAVE A SHIFT OF ABOUT $1 MILLION ACROSS THE CITY THAT USED TO BE GOING TO THE GENERAL FUND, SINCE IT USED TO BE BASED ON USER COUNT. WE HAVE A LOT MORE USERS IN OUR GENERAL FUND THAN THE REST OF THE CITY. SO SHIFTING IT TO FIVE YEAR AVERAGE OF ACTUALS, IT'S A SHIFT OF ABOUT $1 MILLION OUT OF THE GENERAL FUND, OUT ACROSS THE REST OF THE DEPARTMENTS, AND TWO OUT OF THE GENERAL FUND INTO EVERYWHERE ELSE. SO STREETS, LIBRARY, RECREATION, FIRE OR EMS NOT FIRE, SORRY.

AND THEN ALL THE UTILITIES AND POWER, FIBER AND AIRPORT. THE BIGGEST IMPACT TO OUR ACTUALLY IS ABOUT EIGHT, 900,000, I BELIEVE WAS DIRECTLY TO POWER. OKAY. I THINK THAT THAT'S ONE OF THOSE INDIRECT COSTS TOO. I'M JUST GOING TO PUT MY $0.02 IN ON THIS. IS THAT WHEN WHEN LET'S SAY, YOU KNOW, A BAD ACTOR IS TRYING TO TO GO AFTER THE CITY, RIGHT? IT HAS TO HAVE THIS WHOLE BACK END BUILT AROUND OUR UTILITIES AND AROUND OUR AIRPORT AND AROUND ALL OF THESE. SO YES, WE HAVE THE MORE GENERAL FUND, WE HAVE MORE GENERAL FUND USERS USING IT.

BUT THE, THE SIGNIFICANCE OF THE WORK IN IT, IT HURTS THE CITY SIGNIFICANTLY TO HAVE A UTILITY GO DOWN OR TO HAVE, YOU KNOW, POWER. SO, SO THERE IS IT'S REALLY COMPLICATED TO TRY

[01:35:02]

SO I THINK THAT'S, IT'LL BE INTERESTING TO WATCH THAT AS A PERCENTAGE AND HOW MUCH IT GOES UP OR DOWN. AND THERE IS A NEED FOR ALL THESE SERVICES. SO IT'S BEEN A COST BEFORE THAT WE COULD BURY BY JUST NOT PROGRESSING OR NOT UPGRADING. AND A LOT OF OUR, A LOT OF OUR SUBSCRIPTIONS THAT WE HAVE ACTUALLY GO ANYWHERE BETWEEN 5 AND 10%. IT USED TO BE A COUPLE YEARS AGO, IT WAS ANYWHERE BETWEEN 3 AND 5. WE'RE SEEING NOW 7 TO 10% ON INCREASED COST, INCREASED COSTS FOR SOME OF OUR SUBSCRIPTIONS. WE ACTUALLY CAME TO COUNCIL WITH A WHAT WE FELT WAS A REALLY COMPETITIVE QUOTE. GOT IT APPROVED. BUT WHEN WE WENT TO PURCHASE IT, THEY SAID, NOPE, IT COST MORE NOW. SO NOW WE'RE HAVING TO GO BACK TO THE GAME BOARD. SO I THINK THAT THAT'S HAPPENING A LOT IN THE IT SPACE WHERE THINGS ARE JUST BECOMING MORE AND MORE EXPENSIVE. WELL, THE OTHER THING THAT YOU'RE SEEING IN THE UNIT, OUR SIZE OF 800 PLUS USERS, I THINK WE SHOULD CONTRACT WITH SOMEONE WHO'S LOOKING AT OUR LICENSES, SEEING WHO'S USING THE SOFTWARE, BECAUSE YOU CAN GET HUNDREDS OF THOUSANDS OF DOLLARS OF SAVINGS IF YOU DON'T PAY FOR LICENSES THAT AREN'T ACTUALLY BEING USED LIKE ADOBE, LIKE IF SOMEONE'S NOT USING IT TO SIGN THINGS OR THINGS, WE ACTUALLY KEEP TRACK OF THAT SERVICES. THERE'S OUTSIDE CONSULTANTS, THERE'S A COMPANY HERE. THAT'S ALL THEY DO SAVE UNIVERSITIES. YEAH. SO IF YOU'VE HAD SOMETHING LIKE THAT, BUT I WOULD JUST SAY THERE'S AI OPTIONS AROUND THAT TO REALLY SEE, WELL, IT'S ACTIVELY BEING USED MANY, MANY, MANY, MANY YEARS AGO, THERE WAS A VERY LARGE SOFTWARE COMPANY THAT REQUIRED MUNICIPALITIES AND OTHER AGENCIES TO GO BACK AND GIVE THEM THE NUMBER OF PEOPLE THAT HAD ACCESS TO LICENSE. SO NOW WHAT YOU'RE SEEING IS YOU'RE SEEING MORE SEAT LICENSES. YOU CAN'T SHARE LICENSES ANYMORE. IT'S GOT TO BE SPECIFICALLY FOR THAT POSITION. BUT BEFORE I GET TOO FAR OFF, I THINK NOW MIGHT BE A GOOD TIME TO BRING OUT. YOU KNOW, WHEN WE WERE TALKING ABOUT THE SHIFT, ONE OF THE COMMENTS THAT INTERIM GENERAL MANAGER BOWERMAN HAD ABOUT THE IT PERCENTAGE SHIFT THAT BROOKS HAD MENTIONED WAS HE HE PROVIDED SOME DOCUMENTATION THAT HE SAID THAT HE HAS A CONCERN AND HE WANTED TO HIGHLIGHT IT OF THE INEQUITY OF THE NUMERATOR OF THE IT BUDGET, THE POWER AND FIBER IS PAYING OVER 40% MORE. AND THAT'S BASED ON THE SHIFT THAT BROOKS HAS JUST MENTIONED EARLIER. BUT IN FULL DISCLOSURE, THEY HAVE TWO POSITIONS THAT ARE WORKING WITH IDAHO FALLS POWER. AND THEY AND THEY SPECIALIZE IN A VARIETY OF THINGS THAT WE WON'T GET INTO AT THIS POINT. BUT BUT THEY DO END UP BEING AUGMENTED MEMBER OF OUR IT TEAM AND VICE VERSA.

SO IF SOMETHING HAPPENS AND BOTH TJ AND DAVID ARE WORKING ON IT AND THEY CALL DEREK OR JOSEPH, WE'RE THERE. WE WE MAKE THAT THE PRIORITY JUST BECAUSE WE KNOW OF THE IMPORTANCE OF THE OPERATIONS OF IDAHO FALLS POWER AS AS WE WOULD DO WITH AIRPORT, AS WE WOULD DO WITH PUBLIC WORKS. BUT FULL DISCLOSURE, HE DOES HAVE A CONCERN THAT THAT IT'S INCREASED OVER 40% WITH THE IT EXPENSES. AND AND IT IS DUE TO THE SHIFT GOING TO A FIVE YEAR ACTUAL. AND IT WAS ALREADY A STICKING POINT, RIGHT? I MEAN, POWER AND ALLOCATION COST ALLOCATION WAS ALREADY THAT WAS OUR BIGGEST CONVERSATION AGAIN AND WHY I'M ON A ROLL, IF I MAY,

[01:40:04]

YEAH. NO, NO. AN APPEALS PROCESS IS WHAT'S BEEN HAPPENING FOR THE LAST 15 YEARS.

AND THEN EVERY DEPARTMENT GETS AN APPEAL BECAUSE THERE IS SO MANY. THERE'S JUST SO MANY TECHNICAL APPEALS PROCESSES IS JUST A HARD NO, PLEASE COUNCIL, DON'T DO IT UNTIL THE TIMING OF THIS WITH THE BUDGET FOR FIVE YEARS. GET WHAT. YEAH. AND THE THING TO POINT OUT IS THAT WE'RE RIGHT AROUND THE CORNER FROM THE BUDGET. AND SO ONE OF THE THINGS WE REALLY NEED TO DO IS COME UP WITH, YOU KNOW, A THOROUGH METHODOLOGY. IT MIGHT NOT BE THE FAVORITE OF EVERYBODY'S, BUT THERE WAS A PARTICIPATORY PROCESS IN IT. AND THIS IS WHERE WE LANDED. AS FAR AS A RECOMMENDATION, I THINK IT'S ALL FINE. I THINK, TO MAKE SURE WE'RE LOOKING AT IT EVERY YEAR AND SEE WHERE WE SCREWED IT UP. RIGHT. SO WE'RE GOING TO REVIEW THE PROCESS ON A REGULAR BASIS. OKAY. I CAN'T IMAGINE THAT THERE AREN'T OTHER MUNICIPALITIES THAT OWN AIRPORTS THAT HAVEN'T BEEN DOWN THIS ROAD. WELL, I THINK OUR PROFESSIONAL SAYING, YOU KNOW, AND WHAT WHAT CAN THEY PROVIDE FOR FAA MAYBE HAS INFORMATION ON HOW SIMILAR SITUATIONS HAVE, YOU KNOW, I'VE SEEN PLACES EXCLUDE CAPITAL, BUT THEN ALSO HAVE A SEPARATE AREA WHERE

[01:45:05]

YOU CAN DO THAT. OR I'VE SEEN PEOPLE THROW IN GRANTS AS WELL, LIKE GRANTS ARE PART BECAUSE THEY CAUSE AN EXTRA WORKLOAD. SO YOU DO WEIGHTED AVERAGES. THERE'S MANY, MANY WAYS YOU CAN DO ANY ALLOCATION. YOU JUST HAVE TO HAVE A METHODOLOGY AND BE CONSISTENT WITH IT. YOU CAN'T JUST SAY LET'S GOUGE THIS DEPARTMENT. WHAT'S THE FIVE YEAR AVERAGING OF THAT REP IN THE SNAKE KIND OF HAUNTS YOU FOR FOR FIVE YEARS, DON'T THEY? I MEAN, WITH WITH VARIATIONS THAT ARE THIS BIG FROM YEAR TO YEAR, I CAN SEE THE SMOOTHING THAT YOU GET FROM THE AVERAGE.

BUT WHEN YOU HAVE SOMETHING THAT'S THAT LARGE, THE, THE SMOOTHING KIND OF GOES AWAY.

AND THAT'S LIKE THE POLICE STATION FOR POLICE. THAT'S A BIG ONE. THAT'S ONLY EVERY 30 YEARS, HOPEFULLY THAT IT'S GOING TO SIT FOR FIVE YEARS ON THE BOOKS FOR THIS TYPE OF AN ALLOCATION IN INFLATING THEIR NUMBERS, AND THEN IT'LL DIE DOWN. THE DIFFERENCE, THOUGH, FOR THE POLICE IS THAT WE'RE PAYING FOR THAT MILLION DOLLARS A YEAR, WHEREAS THE FAA, THEY'RE PAYING FOR IT. THE AIRLINES AND THE FAA SOMETIMES BUILDING CAPITAL. I THINK THAT'S INTERESTING TOO, BUT I THINK THE MAYOR'S RIGHT. WE GO THROUGH IT AND SEE WHERE WE GO FROM HERE. BUT THESE ARE JUST THINGS. AND THE FIVE BEFORE WE GET TOO FAR DOWN. THE FIVE YEAR ACTUALS WAS ACTUALLY A RECOMMENDATION FROM OUR SMALLER SUBGROUP. THE FIVE YEAR AVERAGE ACTUALS AVERAGE WAS ACTUALLY A RECOMMENDATION BY A SUB. THE SMALLER SUBGROUP OF DIRECTORS, PARTICULARLY THOSE FROM THE ENTERPRISE AND OUR AIRPORT. AND I DO JUST THINK WE SHOULD DO OUR DUE DILIGENCE WITH THE FAA ON THIS AFTER WE'RE DONE, SO THAT WE GET SOME SORT OF OPINION FROM FAA IF THEY'RE OKAY. AND I THINK THE KEY IS TRYING NOT TO PANIC AFTER THE FIRST YEAR AND GIVE IT A FEW YEARS TO SEE HOW HOW IT COMES OUT, BECAUSE IT COULD LOOK AWKWARD WHEN THERE'S A YEAR WHERE THERE'S A BIG CAPITAL IMPROVEMENT FOR SOME DEPARTMENTS, BUT YOU'VE GOT TO SEE HOW IT MOVES OUT. WE CAN'T PANIC IN ONE YEAR. OKAY, SO WE'LL TRY TO BREEZE THROUGH THESE OTHER ONES QUICKLY. TREASURY. IT'S NOT MUCH OF A CHANGE. IT WAS A BLEND OF REVENUE AND CASH ACTUALS AT EACH OF THOSE DEPARTMENTS, MOVING TO A FIVE YEAR AVERAGE OF THOSE FOR THE ALLOCATION FOR OUR TREASURY DEPARTMENT AND THEN UTILITY BILLING. IT'S A 5050 SPLIT OF THE UTILITIES BILL. UTILITY REVENUES BILLED AND A 50% OF THE AVERAGE COUNT IS UTILITY CUSTOMERS. SO THAT HAS CHANGED JUST THE FIVE YEAR AVERAGE OF THOSE. AND THEN OUR FINANCE TEAM, FIVE YEAR AVERAGE ACTUALS FOR BOTH FINANCE AND HR.

WE'RE BACKING OUT THOSE COST ALLOCATED DEPARTMENTS SO THAT WE'RE NOT ALLOCATING THE ALLOCATIONS. HR IS BASED ON PERSONNEL. SO FIVE YEAR AVERAGE ACTUALS OF PERSONNEL, NOT ALL ACTUALS. THEN A COUPLE OF OUR UNIQUE DIVISIONS, OUR RISK MANAGEMENT IS A BLEND OF WORKER'S COMP WHICH IS CHARGED THROUGH PAYROLL. SO EACH POSITION IN THE CITY HAS A DIFFERENT KIND OF RISK RATE ASSOCIATED. SO A POLICE OFFICER IS GOING TO HAVE A HIGHER RISK THAN AN ADMIN ASSISTANT OR A AQUATICS LIFEGUARD. SO EACH HAS A DIFFERENT RATE ASSIGNED TO THEIR WAGES. THAT PAYS FOR OUR WORKER'S COMP CLAIMS AND OUR INSURANCE THERE. AND THEN OUR LIABILITY INSURANCE IS THE OTHER SIDE OF IT. EVERY DIVISION IS CHARGED A FLAT RATE OF $500, AND THEN WE ADD 65% RELATED TO THEIR PERSONNEL BUDGETS AND THEN PROPERTY AND BUILDINGS, 10% EACH OF THOSE, THE PROPORTIONATE SHARE OF THEIR PORTION OF OUR PROPERTY AND OUR BUILDINGS. AND THEN 15% OF THE AMOUNT THAT THEY'RE CHARGED IS BASED ON CLAIM ACTIVITY. SO WE TAKE TEN YEARS OF CLAIM ACTIVITY. WE TAKE OFF THE MINIMUMS AND MAXIMUMS FOR EVERYBODY SO THAT IF YOU'RE HAVING A REALLY BAD YEAR, IT'S NOT JUST GOUGING YOU FOREVER TO GO THROUGH THE LOW YEARS AS WELL. YOUR AVERAGE OF THAT TEN YEARS. AND THEN WHAT'S YOUR PROPORTION OF THOSE CLAIMS? SO 15% OF THE RATE IS BASED ON THAT. SO IT'S ACTUALLY A EIGHT YEAR AVERAGE. IT'S ACROSS TEN YEARS THOUGH WE AVERAGE IT OVER TEN TAKING OUT THOSE HIGHS AND LOWS FOR EACH RIGHT. AND NO CHANGE TO THAT. IT'S A GOOD IDEA TO WRITE THE HIGH AND THE LOW, BECAUSE I WAS THINKING, RICK, YOU KNOW, WE COULD HAVE ONE REALLY BAD INCIDENT AND IT WOULD THROW EVERYTHING OUT OF KILTER FOR THE NEXT FIVE YEARS. YEAH. SO THEN WE ALSO HAVE THESE DIVISIONS, GIS AND PUBLIC WORKS ADMIN THAT ARE ALLOCATED, BUT THEY'RE ONLY ALLOCATED TO THOSE DIRECT DEPARTMENT SERVES. SO GIS IS ALLOCATED TO OUR PUBLIC WORKS DEPARTMENTS AND POWER. AND THEN OUR PUBLIC WORKS ADMIN IS JUST ALLOCATED TO THE PUBLIC WORKS DEPARTMENT.

SO NO CHANGE TO EITHER OF THOSE CURRENTLY. SO THAT IS THE END. ANY OTHER QUESTIONS? WHILE WE

[01:50:05]

OVER THE FIVE YEARS, WITHOUT EVERY DEPARTMENT COMING WITH A NEW METHODOLOGY. IT'S THAT COMPLICATED FOR BROOKS TO GO THROUGH. AND SO THAT IS PART OF THAT POLICY. BUT THE KEY THERE IS THAT WE HAVE CONSISTENT METHODOLOGY AND THAT WE DOCUMENT IT HAS TO BE DOCUMENTED BECAUSE EVERY YEAR IT CHANGES IN EVERY DEPARTMENT. AND IT'S IT HAS IT'S DIFFICULT TO DOCUMENT ALL OF THOSE CHANGES ALL THE TIME. SO THIS IS DEEP DIVE INTO EVERY COST.

THANK YOU. THANK YOU. I KNOW YOU HAD ON HERE THE ERP REPAYMENT. CAN WE JUST ADDRESS THAT AT ANOTHER TIME. IT'S JUST A MATTER OF HOW THE GENERAL FUND IS GOING TO GET THE PAYBACK. WE'RE GOING TO MOVE REALLY QUICKLY. I THINK WE CAN HANDLE THE NEXT 1 IN 5 MINUTES.

[Power]

[01:55:01]

FALLS WATER'S LINE COMES DOWN. I OWN A ROAD AND ROUGHLY STOPS FOR IT SOMEWHERE OUT IN THIS LOCATION. AND AT THIS POINT FALLS. WATER IS NOT GOING TO REQUIRE THEM TO EXTEND THE WATER MAIN UP TO BE ABLE TO GO UP AND BE ABLE TO GET TO THE OTHER END OF THE PROPERTY LINE.

THEY'RE GOING TO BE PROVIDING A SERVICE LINE TO THEM OFF OF THAT, WHICH THAT WOULD BE MEAN THAT, YOU KNOW, SOMEBODY HAD TO COME ACROSS, BRING WATER UP, THEY'D HAVE TO GO ALL THE WAY THROUGH THAT PROPERTY. AND IT'S MY UNDERSTANDING RIGHT NOW THAT SAINT JOHN IS A GOOD AN MOU THAT THEY'RE NOT GOING TO HEAD WEST OF THERE. CORRECT. SO THERE'S REALLY NO REASONING BEHIND FOR THEM TO GO THAT FAR OVER AND CONTINUE PAST THAT INTERSECTION. SO WE PROPOSED AND TALKED TO ALLEN ABOUT DOING CONNECTING TO THE WATER, POTENTIALLY RIGHT HERE, AND THEN RUNNING THROUGH THE CITY'S PROPERTY TO GET UP HERE AND EVENTUALLY GET TO SAINT JOHN.

BUT WITH THE BUYER OF THAT, I WAS TALKING TO NATALIE THIS FRIDAY. I BELIEVE THAT THAT PROPERTY EITHER CLOSED FRIDAY OR WILL BE CLOSING THIS WEEK. SO THEY WOULD NOT BE PROVIDING WATER IN ANY FORM OR FASHION UP THROUGH THERE. AND THIS WOULD GIVE THEM AN AVENUE TO GET FALSE WATER THROUGH THEM. AND AS ALLEN MENTIONED, WE WOULD DO A 15 FOOT WIDE EASEMENT EAST, NORTH AND EAST SIDE OF THE RAILROAD, RIGHT OF WAY TO FALLS WATER, BUT THEN IT WOULD BE OVERLAPPED WITH AN IDAHO FALLS POWER EASEMENT SO THAT BOTH COULD FIT INSIDE THAT BASICALLY 20FT. SO WE BRING THIS TO COUNCIL. IF IF COUNCIL DOES NOT HAVE ANY CONCERNS, BLAKE WILL PROCEED WITH THE LEGAL DESCRIPTION AND THE EXHIBITS. GET IT BEFORE KENNY AND MAKE SURE EVERYTHING LOOKS APPROPRIATE. SO IS THERE ARE THERE ANY LEGAL ISSUES WITH THE PROCESS WITH WHAT WE'RE AGREEING TO DO? WHAT DO YOU MEAN? I'M JUST CURIOUS. I MEAN, THEY WERE TALKING ABOUT THEY DO SOMETHING FOR US. WE DO SOMETHING FOR THEM. I DON'T SEE ANY PROBLEM WITH IT. I'M JUST TRYING TO COVER ALL THE BASES. THAT'S FINE. YEAH. WE'RE OKAY.

YEAH. IT'S A MATTER OF CONTRACT. IT'S. IT'S BASICALLY A CONTRACT. YOU GIVE US THIS, WE'LL GIVE YOU THAT. AS LONG AS YOU GUYS ARE SATISFIED THAT THAT'S A FAIR TRADE AND. OKAY. AND WE WOULD ANTICIPATE THE CONTRACT WOULD BE JUST THE THE ACTUAL RECORDING OF THE TWO EASEMENTS WITH WITH THEM GETTING THE RIGHT TO BRING FALLS WATER UP THROUGH THEIR EASEMENT. WE WOULD, WE WOULD, IN RETURN, GET OUR RIGHT TO TAKE OUR POWER THROUGH AND PARALLEL TO THE RAILROAD. AND WE WOULD WRITE THE EASEMENTS VERY SPECIFIC. SO IT WOULD BE ONLY TWO FALLS WATER. IT WOULDN'T BE A PUBLIC UTILITY EASEMENT. IT WOULD BE A FALSE WATER EASEMENT SO THAT YOU WOULDN'T BE SUBJECTED TO OPENING IT UP TO ANYBODY TO COME THROUGH IT. AND EVEN WITH ALL THE WATER AND IDAHO FALLS POWER ON THEIR END. OKAY, SO YOU WILL SEE THIS COME TO COUNCIL ON THURSDAY FOR APPROVAL, BUT THEN EVENTUALLY WE'LL JUST HAVE AN EASEMENT. OR ARE YOU JUST GOING TO PROCEED? I GUESS I DON'T KNOW HOW THAT WELL, WE'LL ANTICIPATE IS YOU WILL PROBABLY HE DOESN'T HAVE THE LEGAL DESCRIPTION, SO WE'RE NOT READY TO BRING IT TO COUNCIL YET. SO WE'LL BRING IT TO COUNCIL. ONCE HE GETS THE LEGALS AND THE EXHIBITS READILY AVAILABLE. AND THEN WE'LL HAVE NOT TO BE PRESUMPTUOUS, BUT BRING IT TO COUNCIL FOR APPROVAL. AND THEN I BELIEVE THE MAYOR SIGNS THE THE EASEMENT FOR ON BEHALF OF THE PROPERTY. RIGHT. OKAY. THANK YOU, THANK YOU. COUNCIL, DO YOU WANT TO TAKE A FIVE MINUTE BREAK? LET'S TAKE A FIVE MINUTE BREAK AND THEN WE'LL COME BACK AND JUMP IN. WE'VE GOT WE'VE GOT A ZU AND TWO MORE. TWO MORE DISCUSSIONS ABOUT PRINCIPLES OF ANNEXATION AND EXTENSION OF UTILITIES. SO IT'S FROM BYU. JUT CONGRATULATING. I CAN'T. I GOT A EMAIL FROM BOTH TOPS. HELLO? WE ARE STILL MOVING. YEAH, I DON'T BLAME YOU. EXACTLY. WE KEEP TALKING. I KEEP TALKING ABOUT THE SPILLWAY THAT WE'RE TRYING TO UNLOAD BEHIND US THAT WE'VE GOT. WE HAVE. WE'VE HAD WATER COMING OVER THE DAM FOR A WHILE AND WE'RE TRYING TO OPEN THE SPILLWAY. AND THAT'S WHY OUR COUNCIL MEETINGS ARE RUNNING PRETTY LONG ON ON OUR MONDAYS BECAUSE WE'RE JUST TRYING TO GET THINGS THROUGH. SO NOW WE ARE GOING TO. SORRY, I THINK I'M HEARING IT OUT

[Parks & Recreation ]

[02:00:04]

OUR ARCHITECT IN 2021. AND SO NOW WE ARE LOOKING AT ENTERING INTO PHASE TWO OF THE CONTRACT AND WHERE WE WHERE WE WANTED TO KIND OF TAKE THIS DISCUSSION A LITTLE BIT, WAS LOOKING AT PRIORITIES FROM FROM COUNCIL. SO COUNCIL PRIORITY TO IMPLEMENT EXISTING PLANS AND MASTER PLANS WITHIN OUR PARK SYSTEM. THIS HAS BEEN SOMETHING GETTING READY FOR A NEW ENTRANCE HAS BEEN SOMETHING THAT WE'VE BEEN LOOKING AT SINCE REALLY SINCE 2018, WHEN WE DID OUR 2016, WHEN WE DID OUR MASTER PLAN FOR OFFICE PARK, THAT ACTUALLY IN THAT PLAN THAT DID PLACE THE NEW ENTRANCE FOR THE ZOO RIGHT IN THE MIDDLE OF SOFTBALL DRIVE, WHERE, WHERE WE ARE CURRENTLY LOOKING AT HAVING THAT BUILT. AND SO KNOWING THAT WE WERE GOING TO BE CLOSING OFF SOFTBALL DRIVE MULTIPLE YEARS AGO, WE STARTED WORKING ON THE ROAD SYSTEM THROUGH THE PARK TO GET READY FOR THAT. SO AS YOU REMEMBER, LEO LARSEN DRIVE WAS CREATED THREE YEARS AGO. LAST YEAR WAS NORTH PARK ROAD. AND THIS YEAR WE HAVE OUR ENGINEERS FROM THE PUBLIC WORKS DEPARTMENT WORKING ON A KIND OF A WE KEEP CALLING A ROUNDABOUT, BUT IT'S A LITTLE BIT MORE OF A TURNAROUND IN THE PARK. BUT IT'S A DROP OFF ESSENTIALLY FOR THE ZOO. AND WE'LL ALSO OPERATE AS A DROP OFF FOR THE ICE RINK AS WELL. AND SO WE SEE THESE, YOU KNOW, OUR STRATEGIC MASTER PLAN OR EXCUSE ME, OUR STRATEGIC PLAN FOR THE FOR THE ZOO FROM 2016, AS WELL AS OUR MASTER PLAN FROM 2018 FOR OFFICE PARK. BOTH OF THOSE ARE PUSHING US TOWARDS GENERATING NEW REVENUE SOURCES. AND SO I'M GOING TO GO AHEAD AND PASS THIS OFF TO DAVID. AND WE'RE GOING TO GO AHEAD AND WALK THROUGH AND TALK A LITTLE BIT ABOUT THE THE CONTRACT AND OTHER STEPS WE'VE MOVED TOWARDS IMPLEMENTING THESE EXISTING PLANS. ALL RIGHT. SO AS P.J.

MENTIONED, THEY'VE ALREADY BEEN THROUGH PHASE ONE. I'VE ALREADY GOT AN INITIAL DESIGN THAT YOU SEE THERE. YOU CAN. WE'LL SEE MORE OF IT LATER. WE'RE WANT TO CONTRACT WITH THEM TO DO THE SECOND PHASE, WHICH IS GET US THE GET US THE DESIGN, ALL THE SITE PLAN APPROVAL APPROVALS, DO THE BIDDING AND OF COURSE, HELP US GET THROUGH THE CONSTRUCTION. AND SO THAT'S WHAT WE'RE LOOKING FOR WITH THIS NEXT, NEXT CONTRACT. YOU CAN SEE THAT THE PRICE IS BACK FROM THE FROM THE PREVIOUS THING IS OF COURSE, INCLUDED IN THE 10% OF PROJECT COSTS THAT THEY'RE ASKING FOR WITH A NOT TO EXCEED AMOUNT $150,000. THE ONLY BILL IS WORK IS COMPLETED.

WE DON'T KNOW THE WHOLE THING. IF SOMETHING HAPPENED IN THE BUILDING DIDN'T ACTUALLY GET BUILT, WE WOULDN'T BE INTO THEM FOR $150,000, WHICH IS PAYING FOR THE AMOUNT THAT THEY GOT. I THINK IF THERE'S NO QUESTIONS ABOUT THAT, I THINK PJ ASKED ME TO KIND OF PUT THIS IN CONTEXT SO YOU CAN UNDERSTAND HOW CRITICAL THIS ENTRANCE IS FOR THE ZOO. IT'S BIG. OH, PLEASE.

YEAH. OKAY. SO AM I READING THIS RIGHT? FOR PHASE ONE IT WAS 150,000 NOT TO EXCEED. OR IS THAT BOTH PHASE. THAT'S BOTH PHASES. OKAY. AND SO WE'VE ALREADY PAID THEM ABOUT $30,000, SOMETHING LIKE THAT FOR THE INITIAL THE INITIAL DRAWINGS. AND THAT'S INCLUDED IN THE ENTIRE AMOUNT. ALL RIGHT. SO WE WANTED TO KIND OF PUT THIS IN CONTEXT OF THE WHOLE BIG PICTURE WITH OUR MASTER PLAN AND BOTH THE OFFICE PARK MASTER PLAN AND THE STRATEGIC PLAN OF THE ZOO. AND IT, IT JUST SHOWS YOU HOW CRITICAL THIS FACILITY IS, MAYBE MORE CRITICAL THAN YOU MIGHT THINK INITIALLY. IF YOU GO BACK WHEN WE WERE MAKING THOSE PLANS, THE ZOO WAS EXPERIENCING A TOUGH MOMENT, VERY, EXTREMELY HARD MOMENT. YOU KNOW, WE HAD JUST HAD A VERY DIFFICULT SCANDAL AT THE ZOO WITH AN INAPPROPRIATE RELATIONSHIP WITH ONE OF THE STAFF MEMBERS AND AN UNDERAGE VOLUNTEER THAT COST THE CITY DEARLY. THERE WAS A LONG LIST OF USDA ISSUES THAT WE HAD TO ADDRESS. WE GET OUR LICENSE FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE. WITHOUT IT, WE CAN'T DISPLAY ANIMALS TO THE PUBLIC. THEY INSPECT US ANNUALLY AT LEAST ONCE ANNUALLY, AND AT THAT TIME, WE HAD A VERY LONG LIST OF ISSUES THAT THEY FELT LIKE WE NEEDED TO ADDRESS TO, TO KEEP OUR LICENSE. JUST TO PUT THAT IN PERSPECTIVE, SINCE THEN, TO MY RECOLLECTION, WE HAVEN'T HAD ONE ISSUE FROM THE USDA. SO IT

[02:05:01]

OF COURSE, AS YOU KNOW, IT DIDN'T HAPPEN. BUT FROM WHAT HE UNDERSTOOD WHAT WAS GOING ON THERE, IT FELT LIKE WE MAY NEED TO CLOSE DOWN THE ZOO OR NO LONGER GET OUR LICENSE FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE. SO TEN YEARS AGO, AT THE BEGINNING OF THESE PLANS, THESE PLANS ARE BEING DEVELOPED. THE ZOO IS AT A VERY CRITICAL MOMENT IN ITS HISTORY. IT'S AT A CRITICAL MOMENT. IT'S AT OTHER CRITICAL MOMENTS. BUT THIS WAS A BIG ONE. AND TO TEAR IT DOWN TO ITS CORE ISSUES, EVERYBODY AGREED. USDA HAD A REPORT, ASA AND THEIR INSPECTIONS AT THAT TIME, THE MAYOR HAD THOSE ADVISORY COMMITTEES. IF YOU REMEMBER, THE ADVISORY COMMITTEE CAME UP WITH THIS RESULT AS WE DEVELOPED THIS FIVE YEAR MASTER PLAN, IT CAME UP TO THE SAME RESULT AS THAT THE STAFF SIZE OF THE ZOO WAS D CRITICAL DEFICIT. THE ZOO. THE ZOO REALLY HAD TO GROW. IT HAD TO GROW SIGNIFICANTLY. AND ITS STAFF SUPPORT FACILITIES WERE ATROCIOUS. THEY WERE JUST REALLY BAD IN MY OPINION. THEY WERE REALLY BAD. AND SO THAT'S WHY IN THE FIVE YEAR PLAN, THE VERY FIRST THING WAS STRENGTHEN THE FOUNDATION OF THE ZOO. THAT WAS THE NUMBER ONE PRIORITY IS STRENGTHEN THE FOUNDATION AND THE FIRST OBJECTIVE UNDER THAT STRENGTHEN THAT FOUNDATION IS STRENGTHEN THE STAFF, GROW AND MAINTAIN AN APPROPRIATE SIZE AND APPROPRIATE TRAINED STAFF. THAT WAS THE NUMBER ONE OBJECTIVE OF THE NUMBER ONE PRIORITY OF THE FIVE YEAR PLAN WAS THAT, AND OF COURSE, WE DID THAT AGGRESSIVELY. AND YOU GUYS ALL KNOW THAT AS YOU SEE, THE SIZE OF OUR EXPENSES GROW OVER THOSE TEN YEARS AND THEY HAVE GROWN SIGNIFICANTLY. IF YOU'VE SEEN AN APPROPRIATELY COMMENTED ON, THAT'S WHY. AND WE BUILT NEW FACILITIES FOR OUR STAFF, NEW PLACES FOR THEM TO WORK.

IT'S IT'S BEEN A QUITE A, A REMARKABLE CHANGE THROUGH TIME. BUT IT'S MORE BUT IT'S MORE THAN THAT AS YOU START GROWING ALL THESE THINGS. OF COURSE, IF YOU'VE ALL NOTED THE FINANCES, THE EXPENSE GROWS. YOU HAVE TO DO SOMETHING TO, TO COUNTERACT THAT GROWTH OF EXPENSE. AND SO THAT'S WHY OBJECTIVE THREE, OBJECTIVE TWO IS ABOUT ANIMAL HEALTH. AND WE COULD TALK ABOUT THAT ANOTHER TIME IF YOU'D LIKE. BUT OBJECTIVE THREE WAS STATING THE OBVIOUS. IF YOU'RE GOING TO HAVE TO TAKE CARE OF STAFF AND STAFF FACILITIES AND ALL THESE THINGS THAT COMMIT THE CITY TO LONG TERM EXPENSES, THERE'S GOT TO BE SOMETHING TO DO WITH REVENUE TO REPLACE THAT. SO THE THIRD OBJECTIVE AT UNDER STRENGTHENING THE FOUNDATION WAS TO STRENGTHEN AND GROW THE ZOO'S FINANCIAL INFRASTRUCTURE. WE'VE GOT TO DO SOMETHING TO SUPPORT THE CHANGES THAT ARE REQUIRED TO MAINTAIN THE ZOO. AND LET ME JUST POINT OUT ONE THING WITH THE WITH THE WITH THAT GROWTH OF FACILITIES, BUT ESPECIALLY WITH THE GROWTH OF STAFF. IT HAS REALLY MATTERED.

AND WE REALLY DO HAVE A ZOO THAT CAN DO IT NOW. AND THOSE EXPENSES THAT COME ACROSS EVERY YEAR, AS CHALLENGING AS THEY ARE, THAT IS WHAT IT COSTS TO RUN A MODERN AZA ACCREDITED FACILITY TODAY. AND HAD WE NOT MADE THOSE CHANGES, IN MY ESTIMATION AND MY GUESS, WE WOULD NOT BE ACCREDITED AND WE WOULD NOT HAVE OUR USDA LICENSE. THAT'S JUST MY OWN OPINION. BUT I FEEL QUITE STRONGLY THAT THAT'S THE CASE. SO NUMBER THREE BECOMES VERY IMPORTANT.

IF WE'VE GOT TO DO THAT, WE CAN'T BACKPEDAL. WE CAN'T GO BACK. HOW IS IT THAT WE PAY FOR THE CHANGES? AND THAT'S THE NEXT BIG OBJECTIVE. AND I KNOW THE ZOO SOMETIMES HAS A REPUTATION OF SPEND, SPEND, SPEND. AND WE DON'T WORRY SO MUCH ABOUT THE REVENUES. I WANT YOU TO KNOW THAT THAT IS NOT TRUE. AND THIS HAS BEEN A FOCUS FOR TEN YEARS. WE'VE BEEN FOCUSING ON THIS QUITE STRONGLY. SO LET ME SHOW YOU THIS AND I'LL SHOW YOU WHY THE THE ENTRANCE IS SO IMPORTANT. SO HERE'S THE REVENUES THAT WE'VE HAD OVER THOSE TEN YEARS. SO

[02:10:04]

IT'S BEEN A IT'S BEEN A HUGE FOCUS, AND I JUST WANTED TO GO THROUGH THOSE REALLY QUICK TO GIVE YOU AN UPDATE ON HOW THINGS ARE GOING. THERE'S THERE'S THE QUICK LIST, BUT JUST WANTED TO GIVE YOU A QUICK UPDATE. SO THE FIRST IS OUR WONDERFUL IOAN'S EXHIBIT. YOU GUYS WILL ALL BE RECEIVING AN INVITATION, HOPEFULLY SOMETIME IN JUNE TO COME TO THE, THE, THE RIBBON CUTTING OF THAT. THESE ARE SOME OF OUR ANIMALS, OUR WONDERFUL AND THE LEMUR THAT ARE NOW HOUSED THERE. THESE ARE SOME OF OUR INTERACTIVE SIGNS THAT HAVE JUST COME IN IN THE LAST FEW WEEKS. WE'VE GOT MORE COMING. THEY'RE QUITE SPECTACULAR. IT'S JUST A VIBRANT, WONDERFUL PLACE TO BE IN, AND I THINK THE CITY IS GOING TO ABSOLUTELY LOVE IT.

OUR RESIDENTS, IN ADDITION TO THAT, OF COURSE, THERE'S FUNLAND. REMEMBER THAT THE ZOO.

WE ASKED AGGRESSIVELY TO MAKE SURE THAT WE MANAGE FUNLAND AND THAT WE RESTORED FUNLAND SO THAT WE COULD MANAGE IT AND GET THOSE REVENUES TO OFFSET THE EXPENSES AT THE AT THE ZOO. AND WE DID THAT OVER MANY YEARS. IT WAS VERY DIFFICULT. AND THE IMPORTANT THING, I THINK, IS THIS YEAR, THE LAW OF GOD OPENS OUR WONDERFUL 1930S BUILDING, REOPENS. IT'S ALL DONE. IT'S ABSOLUTELY FANTASTIC INSIDE. AND YOU'LL BE RECEIVING AN INVITE FOR THE THIRD WEEK OR SO OF MAY TO COME OVER AND COME TO THE RIBBON CUTTING OF OUR LOG HUT CAFE. THAT'LL BE OPEN THIS YEAR. AGAIN, GET A CORN DOG. WE'LL SEE. STILL WORKING ON THE MENU A LITTLE BIT, BUT WE'LL CONSIDER A CORN DOG AND PLAY A GAME OF PINBALL. YEAH, YEAH. WE ALL HAVE SUCH FOND MEMORIES.

AND THOUGH THIS ISN'T A VERY SEXY SLIDE, IT SHOWS AN ALL NEW KITCHEN. HOPEFULLY YOU GO INTO THAT BUILDING AND YOU FEEL THE NOSTALGIA OF WHAT IT FELT LIKE WHEN YOU WERE GETTING YOUR CORN DOG BACK WHEN. BUT BELIEVE ME, IT IS NOT THE SAME FACILITY. EVERYTHING ABOUT IT IS DIFFERENT. ALL THE ELECTRICAL, ALL THE PLUMBING, EVERY PIECE OF CAFE EQUIPMENT. IT HAS ALL BEEN SCRUBBED AND CLEANED AND GONE OVER IN THE MOST METICULOUS FASHION. AND IT WAS EXTREMELY EXPENSIVE. THERE IS. I DO WANT TO POINT OUT ALSO WITH THAT, THAT ENTIRE RESTORATION WAS DONE ON GRANT FUNDS. NOT A SINGLE DOLLAR FROM GENERAL FUND WENT INTO THE RESTORATION OF OF THE LOG HUT. THAT'S RIGHT. AS WELL AS THE ISLANDS EXHIBIT AS WELL. IT'S ALSO NO GENERAL FUND MONEY. YEAH. I KNOW HOW MUCH THOSE HOODS COST. SO YEAH. OH, I'LL HAVE TO SAY THE HOOD IS THE ONE THING THAT'S STILL THERE. THEY HAD A NEWER HOOD. WE WERE ABLE TO KEEP THE HOOD. SO I GUESS YOU HAVE TO QUALIFY THAT EVERYTHING ELSE IS NEW, BUT IT HAS BEEN REFURBISHED WITH ALL THE NEW NOZZLES AND ALL THE STUFF THAT'S REQUIRED. THAT'S GREAT. HERE'S ANOTHER EXTREMELY IMPORTANT ONE. AND I THINK THE NUMBERS ARE VERY TELLING. THIS IS OUR LITTLE KOOKABURRA CAFE, A LITTLE TRAILER. IT IS FALLING TO PIECES. WE'VE HAD TO PUT PLYWOOD IN THE FLOOR BECAUSE THE, THE THEY KEPT STEPPING THROUGH THE FLOOR FOR THE LAST THREE YEARS, PROBABLY FOUR YEARS, WE'VE HAD TO MAKE SIGNIFICANT INVESTMENT IN JUST KEEPING THIS BUILDING GOING. BUT WHILE DOING IT, I DON'T KNOW HOW MANY OF YOU REMEMBER IN 2022, IT'S NOT LIKE THERE WAS ZERO INCOME FROM THE KOOKABURRA CAFE. IT WAS CONTRACTED. WE HAD A CONTRACTOR CAME IN THE CITY ACTUALLY MADE ABOUT $2,500. AND THIS IS THE

[02:15:05]

SO HERE'S, HERE'S THE HERE'S THE FLOOR PLAN. YOU CAN SEE HERE THAT RIGHT HERE IS IMPORTANT. THIS IS WHERE YOU COME IN AND OUT OF THIS. THIS IS WHERE YOU COME INTO THE ZOO.

YOU GO OUT OF THE ZOO THROUGH THE GIFT SHOP HERE, BUT YOU COME IN HERE. AND THE IMPORTANT THING IS, IS YOU'VE GOT UP TO THREE AISLES TO GET PEOPLE INTO THE ZOO. THAT'S IMPORTANT BECAUSE THIS PICTURE RIGHT HERE, THAT WAS THIS MORNING AT 11 A.M. THAT'S MONDAY MORNING IN APRIL AT THE ZOO AT 11 A.M. THAT WAS JUST TODAY. AND THERE WAS THE LINE LINE OUT THERE, YOU KNOW, A SUNNY DAY AND THEY JUST CAN'T WAIT TO GET IN. HERE'S A TYPICAL SATURDAY LAST, LAST YEAR. AND THEN THIS IS A BOO AT THE ZOO EVENT. YOU CAN SEE IT GOING. YOU CAN BARELY SEE THE EDUCATION CENTER THERE. AND REMEMBER THE LINE'S GOT TO GO AROUND THE EDUCATION CENTER STILL TO GET TO THE ENTRANCE. SO THIS NEW THING IS IMPORTANT AND IT'S GOT TO IMPACT THE NUMBERS OF PEOPLE WE GET THROUGH THE DOORS. THAT'S SOMETHING I CAN'T MEASURE. HOW MANY PEOPLE DID WE MISS BECAUSE THEY SEE THE LINE AND DROVE BY. BUT YOU KNOW THAT IT'S GOT TO BE SIGNIFICANT. BUT EVEN MORE IMPORTANT THAN THAT IS OUR GIFT SHOP. THIS RIGHT HERE IS OUR CURRENT GIFT SHOP. I TOOK THIS PICTURE JUST THIS MORNING. IF YOU SEE, THERE'S OUR TWO STAFF MEMBERS IN THE GIFT SHOP. YOU SEE SOMEONE COMING THROUGH THE DOOR THERE. WHERE ARE THOSE PEOPLE GOING TO GO? I'M STANDING IN THE EXIT OF THE FACILITY, THE DOOR FOR THEM TO GET OUT. SO IF THEY WANT TO SHOP, THEY CAN'T SHOP THERE. THEY CAN'T SHOP THERE. THERE'S ONE SPOT ON THE OTHER SIDE. THREE PEOPLE ARE IN. THERE ARE GIFT SHOPS FULL. SO IMAGINE THE RETAIL SALES THAT WE'RE MISSING WITH, YOU KNOW, JUST UNDER 150,000 PEOPLE CAME THROUGH THE ZOO LAST YEAR. IMAGINE THE RETAIL SALES THAT WE MISSED. AND SO IF YOU LOOK AT OUR AT THIS RIGHT UP HERE, THAT OUR CURRENT GIFT SHOP IS 400FT■!S, F YOU LOOK AT THE INDUSTRY STANDARDS FOR OUR ATTENDANCE ALREADY, WE NEED DOUBLE THE SIZE, JUST AS WE JUST AS WE ARE NOW. WE NEED DOUBLE THE SIZE. SO WHEN WE'RE BUILDING THIS FACILITY, IT'S ALMOST THREE

[02:20:01]

AND WITH OUR NICE WITH OUR, YOU KNOW, IF WE GOT $3 PER VISITOR INSTEAD OF 250 PER VISITOR, YOU CAN SEE THE HUGE DIFFERENCE THAT IT'S GOING TO MAKE. AND SO YOU TAKE ALL OF THOSE THINGS, A NEW EXHIBIT, FUNLAND, A NEW CAFE IN FUNLAND, THE KOOKABURRA CAFE, AND NOW OUR NEW ENTRANCE.

YOU TAKE THOSE FOUR THINGS. WITH NEW LAND FOR FUTURE NEW EXHIBITS IS THE OPPORTUNITY.

AND WHEN IT'S APPROPRIATE, YOU CAN SEE THAT THE INCOME POTENTIAL FOR THE ZOO IS VERY LARGE. AND IT'S BECAUSE OF THIS HARD WORK OVER MANY YEARS TO GET US INTO THE SPOT THAT WE ARE NOW, WHERE WE CAN TAKE ADVANTAGE OF THOSE, THOSE THAT POTENTIAL. OH NO, I THINK THAT JUST KEEP GOING. THIS IS JUST THE THINGS THAT PJ ALREADY WENT OVER, THE CHANGES THAT HAVE BEEN MADE IN THE ROADS TO GET READY FOR THE TO GET READY FOR THE BUILDING OF THE ENTRANCE.

THAT'S THE, THAT'S THE PICTURE OF, OF THE NEW ROUNDABOUT DROP OFF AREA THAT WILL HAPPEN RIGHT IN FRONT OF THE ZOO. THE THINGS THAT WE WANT TO GET DESIGNED, WE NEED TO GET THE ARCHITECTS INVOLVED WITH THE ENGINEERS SO WE CAN GET IT DESIGNED APPROPRIATELY. ANOTHER REASON WHY GETTING THIS CONTRACT DONE IS SO IMPORTANT. AND THE LAST THING I WANT TO SAY BEFORE I TURN IT BACK OVER TO PJ IS THAT KNOW THAT ALL OF THIS HAS BEEN DONE, DRIVEN BY AND INSPIRED BY TWO THINGS OUR FIVE YEAR STRATEGIC PLAN. YES, IT'S TEN YEARS OLD NOW, BUT STILL THE PRINCIPLES ARE THE SAME PRINCIPLES THAT ARE DRIVING US. IT'S, YOU KNOW, IT'S TAKING US A LITTLE LONGER THAN WE HOPED. BUT, BUT BUT THERE IT IS. AND THE OFFICE PARK MASTER PLAN, I WON'T GO THROUGH THIS, BUT THIS IS THE TOUGHEST PARK MASTER PLAN. THREE, THREE BUTTONS ARE JUST TOO MUCH FOR ME TO KEEP TRACK OF. DOWN THERE. THEY GO. THIS IS THE PARK. I JUST I'VE JUST HIGHLIGHTED EVERYTHING THAT THEY THAT THEY STATED THAT SHOULD HAPPEN IN THE OFFICE PARK MASTER PLAN. THEY'RE THE EXACT THINGS THAT WE WENT THROUGH AND THOSE DIFFERENT THINGS. SO WE'VE JUST BEEN FOLLOWING THE TOUGHEST PARK MASTER PLAN, FULFILLING THE PRINCIPLES OF THE FIVE YEAR PLAN TO GET US THE STRATEGIC PLAN TO GET US WHERE WE ARE NOW.

AND WE'RE AT A VERY GOOD SPOT. OKAY. THANK YOU. GREAT JOB. ALL RIGHT. SO TO BRING THIS KIND OF BACK, THAT WAS A LITTLE BIT MORE OF A MORE THAN JUST THE THE ENTRANCE. OBVIOUSLY, WHEN WE PUT THIS TOGETHER, WE HAD BEEN ASKED TO MAYBE BRING JUST A LITTLE BIT MORE THAN JUST THE ENTRANCE, BUT A LITTLE BIT MORE ABOUT KIND OF WHERE WE'RE AT ON AND HOW SOME OF THESE OTHER THINGS HAVE GROWN AND, AND ARE WORKING INTO OUR PLAN. SO NOW WE'VE TALKED ABOUT THOSE DIFFERENT LOCATIONS, THE DIFFERENT EXHIBITS THAT WILL COME OUT AS FAR AS THIS BUILDING GOES. I KNOW THAT A 10% OF CONSTRUCTION COSTS WITH A, WITH A NOT TO EXCEED OF, OF 150 IS SOMETHING THAT WE ARE VERY, YOU KNOW, OBVIOUSLY WE WOULD LIKE TO SEE THAT LOWER.

AND WE DID TRY TO NEGOTIATE WITH WITH THESE GUYS TO GET THOSE PRICES DOWN. AND BUT WHAT WE WANT, I WANT TO MAKE SURE THAT EVERYBODY IS AWARE IS THAT THESE DOLLARS FOR NOT ONLY THIS PLAN, BUT AS WELL AS THE BUILDING OF THIS FACILITY, WE ARE LOOKING AT THE TOUGHEST PARK ZOOLOGICAL SOCIETY TO FUND THOSE. SO THEY RIGHT NOW HAVE $1 MILLION IN THE BANK. RIGHT NOW WE'RE SITTING PROBABLY ABOUT 1.4, 1.5. AND SO WE ARE THEY'RE ADDING ABOUT 120,000 PER YEAR INTO THE BANK. BUT IT'S ALSO BEEN GROWING A LITTLE FASTER THAN THE INFLATION IS

[02:25:03]

THIS IS THE ENTRANCE, RIGHT? THE EXIT IS THIS DOOR RIGHT HERE. AND YOU'RE FORCED TO EXIT THROUGH THE GIFT SHOP. GOT IT. DAVID. I JUST DON'T WANT TO JUST BUILD THE ENTRY AND NOT THE GIFT SHOP. OH, YES. BECAUSE THE REVENUE GENERATORS. THE GIFT SHOP, RIGHT? THAT'S ALL I'M SAYING. IT CAN'T BE EXACTLY SPLIT, IF THAT MAKES SENSE. MY OTHER QUESTION ALWAYS WILL BE HOW MANY STAFF MEMBERS DO YOU NEED TO MAKE THIS WORK? BECAUSE WE HAVE TO SUBTRACT THAT FROM THE INCOME. I'LL TELL YOU THAT IF OUR ATTENDANCE INCREASES, LIKE I THINK IT WILL INCREASE, LIKE IT ALREADY HAS INCREASED DRAMATICALLY OVER THE LAST TEN YEARS. IF IT CONTINUES TO INCREASE, WE WILL NEED NEW STAFF MEMBERS IN. BUT IF THE BASE IS LIKE LAST YEAR'S ATTENDANCE, IF LAST YEAR'S ATTENDANCE WENT THROUGH THAT GIFT SHOP, WE COULD STAFF IT WITH THE EXACT SAME NUMBER OF STAFF MEMBERS THAT WE HAVE NOW WOULD JUST BE ABLE TO DISPLAY IT BETTER AND HAVE MORE SALES. AND THIS IS JUST ME. BUT THAT'S WHAT I TALKED TO YOU ABOUT WHEN I WAS TALKING ABOUT MAKING A SUSTAINABLE. IF YOU NEED MORE STAFF MEMBERS, I THINK YOU'VE GOT TO FIGURE THE ZOO GATE HAS GOT TO PAY FOR THEM RATHER THAN KEEP COMING TO COUNCIL. AND THE CLASSIC EXAMPLE WOULD BE THE ONE WHERE WE'VE DID THE MID-YEAR HIRE. BUT WHEN THAT BECOMES THE OTHER HALF, IT'S ON THE GATE TO PAY THAT OTHER HALF OF THAT PERSON'S. I WOULD AGREE TO THAT POSITION. AND IT'S JUST THAT IT MAKES ME NERVOUS WHEN THE ZOO HAS TO KEEP COMING UP.

ASKING FOR ANOTHER STAFF MEMBER FROM THE GENERAL FUND. IT HAS TO BE THOUGHT THROUGH. HOW DO WE PAY FOR IT? THROUGH THE GATE? THAT'S A REALLY THOUGHTFUL COMMENT, AND I CAN TELL YOU MY OPINION OF IT RIGHT NOW IS THAT IS THAT THE ZOO AFTER THAT TEN YEARS OF GROWTH? I REALLY BELIEVE THAT WITH THIS LAST STAFF MEMBER, IF NOTHING EVER CHANGED AT THE ZOO AGAIN, WOULDN'T THAT BE A SHAME? BUT LET'S JUST SAY IT THAT WE DO HAVE A STAFF THAT CAN RUN THE ZOO EFFECTIVELY, PRODUCTIVELY, AND KEEP IT UP TO THE STANDARD THAT IT NEEDS TO BE. WE'VE BUILT A ZOO FOR THE FUTURE. NOW IT NEEDS TO GROW. THAT'S MY OPINION. IT NEEDS TO GROW AND IT NEEDS TO HAVE MORE EXHIBITS. AND WE WANT TO GET MORE VISITORS AND WE WANT TO CONTINUE OUR ATTENDANCE, YOU KNOW, TO GO UP. BUT WE CAN TAKE EACH CHANGE NOW AT A TIME AND SAY, YOU KNOW, WE WANT TO BUILD THIS NEW EXHIBIT. WHAT IS THE WHAT IS THE IMPACT ON THE STAFF? AND THAT CAN BE PART OF THE DISCUSSION ON WHETHER THE EXHIBIT GETS BUILT OR NOT, OR THIS IMPROVEMENT HAPPENS OR NOT. IT'S A FAIR DISCUSSION TO HAVE. WHAT THE DISCUSSION WOULD BE

[02:30:03]

AND FUNLAND HAS RUN ON, HAS BEEN AND HAS STUMBLED. FOR ITS FIRST TWO SEASONS, THE OCTOPUS HASN'T BEEN RUNNING CONSISTENTLY, AND YOU THINK OF ONE RIDE GOING DOWN AT FUNLAND.

THAT'S A BIG DEAL. YOU KNOW? HOW MANY RIDES DOES ANYBODY OLDER THAN YOU KNOW, TEN WANT TO RIDE ON OVER THERE, AND THAT'S ONE OF TWO OF THEM. AND SO IT'S A BIG DEAL THAT'S FINALLY UP AND GOING. THE IT'S NOT EASY FIXING A 1947 OCTOPUS, I'VE DISCOVERED. BUT WE HAVE FINALLY FIGURED IT OUT. AND IT'S RUNNING AND GOING. AND THERE'S BEEN NO FOOD SERVICE AND NO OPEN CAFE. SO IT'S BEEN HARD. IT'S BEEN HARD TO PUT THE FULL INVESTMENT IN FUNLAND. WE MAYBE SHOULD HAVE WAITED TWO YEARS TO OPEN IT AND HAVE THIS BE THE THE GRAND OPENING YEAR, BECAUSE FINALLY, IT IS THE FUNLAND THAT WE HOPE TO BE. WE'D LIKE IT TO GROW IN THE FUTURE. WE'D LIKE TO ADD A RIDE. WE'VE GOT TO DO THE GOLF COURSE. BUT THIS IS THE FUNLAND THAT WE ENVISIONED. OPENING WILL FINALLY OPEN THIS YEAR, AND THE MARKETING AS A RESULT WILL BUMP UP AGGRESSIVELY. SO YOU HAVE A MARKETING PERSON STAT, CORRECT? WE DO NOT. SO WE JUST WE JUST HIRED A SEASONAL TO HELP US WITH OUR WITH OUR SOCIAL MEDIA. SO WE DO HAVE NOW HAVE A PART TIME SOCIAL MEDIA PERSON, BUT WE DON'T HAVE A MARKETING PERSON. AND THE PARKS AND REC DEPARTMENT DOES HAVE A MARKETING AND VOLUNTEER COORDINATOR. MAJORITY OF HER TIME IS SPENT ON VOLUNTEER COORDINATION WITH SOCIAL MEDIA POSTS AND SOME OF THAT ON, YOU KNOW, PROBABLY NOT QUITE HALF OF HER TIME. BUT WE DO HAVE SOMEBODY IN IN OUR DEPARTMENT THAT DOES THAT. AND IF I COULD JUST JUMP IN, I THINK KIMBERLY FELKER, THE CITY'S PIO, HAS BEEN WORKING WITH DIRECTOR PENNOCK AND HIS STAFF, SPECIFICALLY LOOKING AT FUNLAND AND DOING SOME A FUN CAMPAIGN AS THEY GET READY FOR THE THE THE RIBBON CUTTING FOR THE FOR THE HUT AND TRYING TO DO A LITTLE BIT MORE WITH THAT. THAT'S EXACTLY RIGHT. AND WE'VE ALREADY MET WITH THE RADIO. WE'VE ALREADY MET WITH THE TELEVISION. WE'VE INCREASED OUR SPONSORSHIPS. I THINK THAT WE'LL HAVE A PRETTY, PRETTY AGGRESSIVE. AND THE BILLBOARDS, I THINK I THINK I THINK WE'RE GOING TO FIND OUT WHAT THE MARKET REALLY IS. BUT HAVING SAID THAT, IT HASN'T BEEN GOING FOR SOME TIME. IT WILL TAKE A FEW YEARS TO BUILD A MARKET AND UNDERSTAND WHAT THE MARKET IS FOR A QUAINT LITTLE AMUSEMENT PARK. WHAT I'M ASKING FOR IS SOMEONE WHO SAYS, I'VE BEEN TO OTHER SMALL AMUSEMENT PLACES, AND THIS IS THE WAY IT REALLY WORKS. WELL, MAYBE IT'S DO WE DO TICKETS NOW TO RIDE RIDES? DO WE DO. THERE MUST BE A MORE EFFICIENT WAY TO DO THAT. DISNEYLAND DOESN'T DO TICKETS. WELL, WE DO TICKETS AND WE HAVE A WRISTBAND. JUST DEPENDS ON HOW WE WANT PEOPLE TO COME BY AND SAY, I'VE GOT 15 MINUTES. I WANT TO PUT MY GRANDKIDS ON THE CAROUSEL. YEAH, I'M JUST ASKING ABOUT THAT OR I WANT TO BE HERE ALL DAY. HERE'S HOW I'M GOING TO WORK. I'VE GOT KIDS. I WANT THEM TO RIDE ALL THEY WANT.

UNLIMITED. HERE'S A WRISTBAND OR WE HAVE A BOOKLET AS WELL. HERE'S 25 TICKETS. OKAY. AND THE OTHER ONE IS THE WAY THE BOOK, THE GIFT SHOP IS STOCKED. YOU CAN VISIT OTHER PLACES LIKE WOODLAND ZOO IN SEATTLE OR THE AQUARIUM THERE. YOU USED THEM AS MODELS. THOSE GIFT SHOPS ARE BIG MONEY MAKERS BECAUSE OF THE QUALITY OF THE THING IN IT. THAT'S WHAT I'M TALKING ABOUT.

SOMEBODY WHO'S FIGURED OUT HOW TO STOCK THOSE KINDS OF THINGS. IT'S A IT'S A REALLY GOOD POINT.

THE SOME SOME ZOOS CLAIM WITH THE APPROPRIATE FACILITY, YOU SHOULD BE MAKING $10 PER VISITOR. THERE ARE THOSE THAT DO THAT AND GO ABOVE THAT. AND THERE'S ALWAYS AN ARGUMENT

[02:35:03]

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

WE ARE GOING TO SKIP THE STRATEGIC EXTENSION AND UTILITIES. THAT CONVERSATION.

WE JUST DON'T HAVE ENOUGH TIME FOR EVERYTHING THAT'S LEFT ON OUR AGENDA TODAY. BUT WE ARE GOING TO DISCUSS THE PRINCIPLES OF ANNEXATION. AND THEN IF WE IF WE CAN GET DEPENDS ON HOW QUICKLY COUNCIL WANTS US TO GET THROUGH THIS PRINCIPLES OF ANNEXATION, BECAUSE WE DO HAVE THE. STILL TO DISCUSS THE LEGAL. WILLOW. YEP. WILLOW'S PLACE. SO WE WILL MOVE ON FROM OUR

[Public Works, CDS, Legal ]

AND I CAN BE RELATIVELY QUICK ON SOME OF THESE. JUST SO YOU KNOW, THE INTEREST OF TIME.

THANK YOU, MAYOR AND COUNCIL, BEFORE YOU. I PUT IT IN THE PACKET FOR YOU FOR YOUR TO PERUSE FOR THE STATEMENT OF ANNEXATION. THESE WERE ACTUALLY DRAFTED BY OUR PREVIOUS ATTORNEY, MIKE KIRKHAM. AND AS YOU MAY OR MAY NOT BE AWARE, THE LAWS OF ANNEXATION CHANGED ABOUT TWO YEARS AGO FROM THE STATE. I'LL JUST MAYBE AN INTEREST OF TIME. THE ANNEXATION WITH CONSENT. I'LL JUST BLANKLY STATE THAT BASICALLY REFLECTS THAT STATE STATUTE SO THAT IF SOMEBODY REQUESTS ANNEXATION, WE JUST FOLLOW STATE STATUTE ON THOSE PRINCIPLES. SO I'LL SKIP OVER THAT IF THAT'S OKAY, MAYOR. AND THEN I WANTED TO MOSTLY FOCUS ON REALLY THE THE STATEMENT OF ANNEXATION PRINCIPLES. WE ACTUALLY LEGALLY DO NOT HAVE TO ADOPT PRINCIPLES OF ANNEXATION. HOWEVER, I WOULD SUGGEST AND BEST PRACTICE FOR MY STAFF AND TO HELP GUIDE US AS WE'RE DISCUSSING WITH PEOPLE THAT COME IN OR PEOPLE THAT EXPRESS CONCERN ABOUT A CITY INITIATED ANNEXATION, IF WE HAVE ADAPTED ADOPTED PRINCIPLES, IT MAKES IT MUCH EASIER FOR US TO EITHER CALM SOME CONCERNS, BUT ALSO TO DISCUSS THROUGH THEM WHAT WE'RE LOOKING AT AND WHY WE'RE DOING WHAT WE'RE DOING. SO IT'S MAINLY THE PRINCIPLES ARE TO GUIDE STAFF FOR DISCUSSION WITH OUR CITIZENS, TO MAKE A CONSISTENT PRACTICE OF WHY WE INITIATE CITY INITIATED ANNEXATION, AND THEN REALLY PROVIDE EFFICIENT USE OF OUR TAXES, OUR TAXATION AND SERVICES. AND THEN REALLY, IN GENERAL TERMS, IT'S JUST GOOD

[02:40:04]

SO I THINK THE KEY POINT HERE IS, AND SOME OF THIS WAS DRAFTED BY THE PREVIOUS ATTORNEY, BUT STAFF SEES THAT THEY BELIEVE THAT THERE'S A STRONG BELIEF THAT THERE'S VALUE IN BEING ANNEXED INTO THE CITY. WE OFFER TREMENDOUS SERVICES. IT'S A GREAT COMMUNITY, AND BEING PART OF THE COMMUNITY IS, TO US, A NET POSITIVE. AND THERE'S ONE PRINCIPLE THAT THAT WAS SHOWN, AND THIS WAS FROM A COURT CASE IN BALTIMORE. I'LL READ THIS.

HOWEVER, WE NEED TO BE COGNIZANT THAT THOSE WHO LOCATE NEAR THE CITY LIMITS ARE BOUND TO KNOW THAT THE TIME MAY COME WHEN THE LEGISLATURE WILL EXTEND THE LIMITS AND TAKE THEM IN. NO PRINCIPLE OF RIGHT OR JUSTICE OR FAIRNESS PLACES IN THE HANDS THE POWER TO STOP ANDE CITY, ESPECIALLY IN VIEW OF THE MAIN BENEFIT OF TRANSACTING BUSINESSES OR SECURING EMPLOYMENT IN THE CITY. AND I. I STATE THAT JUST BECAUSE THAT'S ACTUALLY WHAT KIRKHAM HAD PULLED THAT FROM MY CASE. BUT I THINK IT IS SOMETHING THAT WE HAVE TO REALIZE IS IF YOU'RE LOCATED CLOSE TO THE CITY, EVENTUALLY THE CITY WILL GROW TO YOU. AND I THINK THAT'S REALLY AN IMPORTANT PRINCIPLE. AND SOMETIMES THOSE PEOPLE THAT LOCATE NEAR THE CITY, THEY WANT TO BENEFIT FROM BEING NEAR THE CITY, BUT EVENTUALLY THE CITY WILL GROW TO YOU. WE ALSO WANT TO BE SENSITIVE TO THAT. I MEAN, WE'RE WE'RE NOT A BULLY BY ANY MEANS. WE WE REALLY ARE JUST TRYING TO THINK OF THE EFFICIENT USE OF LAND AND THE EFFICIENT USE OF SERVICES. SO THAT'S WHAT GENERATES THESE PRINCIPLES WHEN IT COMES TO A CITY INITIATED ANNEXATION. JUST THAT VERY PRAGMATIC VIEW THAT YOU'RE CLOSE TO THE CITY. EVENTUALLY THE CITY'S GOING TO GOING TO BE OUT THERE. SO FIRST IS THE FIRST GUIDING PRINCIPLE IS TO FOCUS PROPERTIES THAT SPECIFICALLY RECEIVE CITY OPERATED UTILITIES. SO THERE ARE A COUPLE IN OUR PERIPHERY IN THE AREA OF IMPACT THAT DO RECEIVE CITY UTILITIES. OUR VIEW IS THAT ONCE THOSE THOSE PROPERTIES HAVE BECOME CONTIGUOUS, THAT WE WOULD INITIATE AN ANNEXATION AND BRING THEM INTO THE CITY. THOSE THAT DON'T RECEIVE THESE UTILITIES. THE SECOND PRINCIPLE IS THAT WE WOULD LOOK AT PROPERTIES THAT ARE PRETTY MUCH IN AN ENCLAVE, SO THAT HAVE BEEN SURROUNDED BY THE CITY IN TERMS OF EFFICIENT USE OF TAXPAYER MONEY AND SERVICES, THAT WE WOULD LOOK AT THOSE SPECIFICALLY, ACCORDING TO STATE STATUTE, THAT WE WOULD LOOK AT THOSE TO INITIATE ANNEXATION. THE THIRD PRINCIPLE IS. YEAH, WE WOULD AVOID INITIATING ANNEXATION FOR PROPERTIES THAT ARE CONTIGUOUS MERELY BY TOUCHING CORNERS THAT DO NOT HAVE PRIMARY STRUCTURES, THAT DO NOT HAVE IMMEDIATE ACCESS TO UTILITIES. SO THE THINKING THERE IS THAT IF THERE'S A PROPERTY THAT IS JUST THERE, IT'S NOT DEVELOPED, THAT WE WOULDN'T NECESSARILY INITIATE A CITY ANNEXATION JUST BECAUSE THEY'RE ADJACENT TO US.

WE WOULD LOOK AT IT PRIMARILY IN TERMS OF WHAT'S THE UTILITY AND THE SERVICE USE OF THAT PROPERTY OR POTENTIAL PROPERTY, AND THAT'S WHEN WE WOULD INITIATE IT. SO WE WOULD BE COGNIZANT OF THESE PROPERTIES THAT ARE ADJACENT TO US. AND THEN IF THERE WAS. SO THE

[02:45:07]

AND THEN THE LAST PRINCIPLE IS TRYING TO CREATE PREDICTABILITY WITH THE POPULACE ON THESE CITY INITIATED ANNEXATION. SO WE WOULD WORK TO EDUCATE WHEN PEOPLE BECAUSE PEOPLE DO APPROACH US, HEY, I'M SURROUNDED BY THIS CITY. WHAT ARE YOU PLANNING TO DO WITH ME? AND SO WE WOULD BE ABLE TO GO THROUGH THESE AND SAY, WELL, WHAT IS YOUR CURRENT SERVICE DELIVERY? ARE THE IS THE RIGHT OF WAY IN FRONT OF YOU ALREADY ANNEXED? WE WOULD BE ABLE TO TALK THEM THROUGH AND EDUCATE THEM SO THAT WE CAN TALK THROUGH THAT PROCESS. AND THOSE ARE THE PRINCIPLES FOR CITY INITIATED. DO YOU HAVE ANY QUESTIONS ON THAT OR ARE WE HITTING TOO BROAD TOO? WOULD YOU LIKE ANYTHING ADDED ANYTHING SPECIFIC TO THAT? HOPEFULLY I EXPLAINED THEM RIGHT. CAN I ASK A QUICK QUESTION? I LIKE WHAT I READ, OKAY. MY ONLY QUESTION IS LEGALLY, I KNOW I KEEP BEATING THE SAME DRUM. DOES THIS REALLY STIPULATE WHAT WE CAN DO AND WHAT WE CAN'T DO? WE'RE A STATEMENT OF PRINCIPLE. HOW MUCH OF A BOX DOES THIS CREATE FOR US? YEAH, I WOULD I WOULD DESCRIBE IT AS KIND OF A GUIDING LIGHT FOR US. SO IT'S NOT A HARD FAST. IT'S NOT LIKE A IT'S NOT AN ORDINANCE. YES, THAT'S EXACTLY RIGHT. IT'S NOT AN ORDINANCE. IT'S JUST IT STILL ALLOWS US SOME FLEXIBILITY IN HOW WE APPLY THE CONCEPTS THAT ARE THAT ARE IN THE DOCUMENT. YES, I WOULD AGREE WITH THAT. YEAH. BUT AT LEAST WE COULD COMMUNICATE TO THE PUBLIC SOME OF THESE THINGS, WHICH I AGREE WITH. AND I THINK AS WE HAVE MOVED FORWARD WITH INCREASING OUR AREA OF IMPACT, NOW, WE DO HAVE SOME PROPERTIES WHO ACTUALLY ARE IN OUR AREA OF IMPACT THAT ARE USING OUR UTILITIES. AND SO THERE WOULD BE OPPORTUNITY FOR US AGAIN, TO DO CITY INITIATED ANNEXATIONS IN ORDER TO MAKE OTHER PROPERTIES. YOU WANT TO BE IN THE CITY CONTIGUOUS. SO YOU JUST HAVE TO KIND OF KEEP MARCHING. AND SO IF IF COUNCIL IS IN HAS NO APPETITE FOR DOING ANY CITY INITIATED ANNEXATIONS, THEN WE WOULD SAY, OH, WE NEVER WANT TO DO THAT. RIGHT? OR WE WOULD LOOK AT THIS AND SAY, YEAH, IF YOU'RE USING OUR UTILITIES AND YOU'VE JUST BEEN WAITING UNTIL YOU OR YOU'VE MADE SOME AGREEMENT WITH US, AND THEN DON'T ACTUALLY DO THE ANNEXATION WITH CONSENT OR THE ANNEXATION BY COMING TO US, THEN WE'RE GOING TO HAVE TO HAVE SOME METHOD TO ANNEX THOSE PROPERTIES SO THAT THE CITY DOESN'T GET SURROUNDED. SO I THINK REALLY, THAT'S PROBABLY WHAT WE ARE SPEAKING PRIMARILY TO IS HOW WE CAN DO THESE CITY INITIATED ANNEXATIONS. ONCE WE HAVE ANNEXATION PRINCIPLES THAT WE HAVE AGREED TO, THAT PEOPLE WHO ARE USING UTILITIES LIKE WATER AND WASTEWATER ARE ELIGIBLE FOR ANNEXATION BECAUSE THAT WAS EITHER IMPLIED PRIOR TO 2008 OR HAVE ACTUALLY SIGNED AN AGREEMENT. AND, AND YEAH, WE WENT THROUGH THIS WHEN WE WERE ANNEXING STUFF OVER ON WOODRUFF BEFORE WITH THE PEOPLE, THE PEOPLE THAT OWNED THE BUILDING, THEIR PROPERTY DIDN'T OWN IT WHEN THAT DEAL WAS SIGNED AND THEY WERE UNAWARE OF IT. BUT IT WAS IT WAS IN PLACE. YEAH. SO THE LONGER WE LET THESE DRY OUT, THE WORSE OFF WE ARE, RIGHT? PRETTY GOOD. YES. SO THE CONSENT TO ANNEX, AS I SAID, FOLLOWS STATE STATUTE. AND AND REALLY THERE'S ONLY TWO CATEGORIES. NOW THERE'S A CITY INITIATED BY STATE STATUTE AND THE CONSENT TO ANNEX. THAT'S WHAT THE STATE STATUTE CHANGED.

SO WE WOULD FOLLOW THAT. THERE'S A ANNEXATION PLAN AND ALL THOSE THINGS. WE WOULD JUST FOLLOW STATE STATUTE. THE TWO OTHER PRINCIPLES I WANTED TO FOCUS ON IS FIRST, IN REGARD TO AGRICULTURAL AND FOREST LAND. THE PRINCIPLE HERE IS THAT MAYBE I'LL JUST READ IT TO MAKE IT EASIER AND JUST GET IT ON THE PUBLIC RECORD. BUT IT SAYS THE CITY DOES NOT INTEND TO ANNEX LANDS THAT ARE ACTIVELY DEVOTED TO AGRICULTURAL OR FOREST LAND, UNLESS THE CITY RECEIVES A REQUEST FROM THE LANDOWNER FOR ANNEXATION. THE PRINCIPLE THERE IS JUST THAT WE WE ARE STRONG BELIEVERS, THAT AGRICULTURAL LAND IS IMPORTANT TO THE CHARACTER OF SOUTHEAST

[02:50:02]

[02:55:04]

OKAY, SO REALLY, I THINK THIS IS A GREAT PLACE TO ACTUALLY BE. YOU KNOW, ANYONE THAT'S BEEN ON THE COUNCIL FOR A LONG TIME KNOWS WE'VE BEEN BACK AND FORTH ON THIS. AND SO I'M JUST GOING TO SHORT CIRCUIT A LOT OF THE I HAVE TEN SLIDES, FIVE OF WHICH ARE JUST PICTURES TO LOOK AT, RIGHT? SO THIS IS QUICK, THIS IS QUICK AND EASY. BUT, BUT IN MY VIEWPOINT, AND WE LOOK AT STRATEGIC ANNEXATION OR EXTENSION OF UTILITIES TO HELP DEAL WITH ANNEXATION, IT'S REALLY CHANGED OVER TIME. YES. BECAUSE ANY DEVELOPMENT THAT YOU SEE OUTSIDE THE CITY OF IDAHO FALLS TO A CERTAIN DEVELOPMENT DENSITY. AMMAN, ALL OF IBS-D HAPPENS BECAUSE OF UTILITY EXTENSIONS SOME 40, 50 YEARS AGO. RIGHT. SO I THINK THE CITY MADE THE RIGHT DECISION WHEN THEY TOLD ME, STOP BRINGING THESE TO US. RIGHT? THE CURRENT CLIMATE IS THIS DOESN'T MAKE SENSE FOR THE CITY. AND THE REASON FOR THAT IN LARGE PART IS WE HAD SO MANY PARCELS WITHIN THE CITY THAT WERE UNDEVELOPED, AND WE WANTED THOSE TO DEVELOP BEFORE WE WENT TO THE PERIPHERY OF THE CITY. RIGHT. WELL, THAT LAUNDRY LIST OF PROPERTIES THAT WE HAD, AND IT WAS 1 TO 2 DOZEN TYPE PARCELS, ALMOST WITH THE EXCEPTION OF ONE THAT COMES TO MIND, HAD DEVELOPED. SO IT BRINGS THIS QUESTION IN MIND WITH AND LET'S MOVE FORWARD.

ONE AND I DON'T BRING THIS UP TO LIKE INSULT ANYONE, BUT THIS IS STRATEGIC. IN OTHER WORDS, DEFINITION WISE, RELATING TO THE IDENTIFICATION OF LONG TERM OR OVERALL AIMS AND INTERESTS AND THE MEANS OF ACHIEVING THEM. SO WHAT WE'RE TALKING ABOUT IS NOT WHOLESALE ANYTHING THAT'S WITHIN THE AREA OF IMPACT, BUT MORE SO WHEN SOMEONE BRINGS FORTH AN INITIATIVE. DOES THAT MAKE SENSE TO US OR NOT? RIGHT. BECAUSE IF WE SAY NO AND THEY DEVELOP IN THE COUNTY AND THEY DRILL A FIRE, WELL THAT COSTS $1 MILLION, THEY'RE NEVER GOING TO COME INTO THE CITY AND THEY'RE GOING TO PREVENT US FROM CONTINUING TO GROW OUT WITHIN OUR AREA OF IMPACT.

RIGHT? SO WE'VE HAD A LOT OF THINGS THAT HAVE CHANGED OVER TIME, BUT I JUST WANT TO POINT OUT THAT THIS IS REALLY WHAT WE'RE TALKING ABOUT. STRATEGIC EXTENSION. I THINK WE ALSO MADE A CHANGE. I THINK THERE'S BEEN A CHANGE WITH THE COUNTY AS FAR AS THEM DEVELOPING TO OUR STANDARDS. THAT DIDN'T HAPPEN BEFORE THAT. TEN YEARS AGO, A LOT OF THE STUFF THEY WERE BUILDING WAS SUBSTANDARD TO OUR TO OUR STANDARDS. I THINK WE DEFINITELY HAD DIFFERENCES IN THAT. BUT ALSO THAT RELATIONSHIP HAS CHANGED. IT HAS OUR INTERACTION IS, AS DIRECTOR SANDER INDICATED, WE MEET AND DISCUSS PROS AND CONS APPROACHES WHERE THEY SHOULD BE, WHERE THEY SHOULDN'T BE MONTHLY ON ANNEXATIONS IN THE CITY. AND SO THAT'S A COORDINATION THAT WE ARE ALL BENEFITING FROM. AND THAT MAKES THIS DISCUSSION MORE VIABLE. SO MY INTENTION WAS WITH THESE TEN SLIDES IS JUST TO BRING OUT THIS IS A CHANGING LANDSCAPE THAT WE'RE DEALING WITH TODAY, RIGHT? THREE YEARS AGO, I WOULD NOT HAVE BEEN IN FAVOR OF THIS. BUT TODAY I THINK IT'S WORTH DISCUSSING WITH EVERYBODY. IT'S LIKE, DOES THIS MAKE SENSE FOR THE CITY? AND I THINK I MEAN, MOST OF THESE THAT WE UNDERSTAND, RIGHT? ONE OF THE MOST RECENT THAT WAS HIT IN THIS KIND OF AS A MAJOR ROADBLOCK WAS WE ARE NOT GOING TO ENCOURAGE PEOPLE TO DEVELOP OUTSIDE THE CITY, GET UTILITIES AND NOT PAY IMPACT FEES. WE HAVE A SOLUTION FOR THAT. SO SOME OF THESE THINGS THAT WE'VE CHECKED OFF, I THINK, REALLY BRINGS US TO A FOUR POINT.

LET'S TALK ABOUT AND WHAT I HAD HOPED TO GET OUT OF TODAY'S DISCUSSION WAS THROW IT OUT ON THE TABLE AND JUST ASK ONE QUESTION. DO YOU WANT STAFF TO TRY TO WORK ON A POLICY THAT MAKES THIS WORK STRATEGICALLY, NOT WHOLESALE OR NOT? IT'S A YES OR NO CASE BY CASE BASIS.

IT'S NOT, IT'S NOT, HEY, YOU'RE GIVING OVER OVERALL APPROVAL TO MOVE FORWARD. WE WOULD COME FORWARD WITH A REQUEST PROCESS THAT COMES BEFORE THIS BODY TO APPROVE, RIGHT. THAT'S OUTSIDE AND THAT WE COULD WE COULD BASICALLY ADDRESS IN A CONTRACT THAT SAYS THAT THEY BECOME CONTIGUOUS. THEY WILL THEY WILL ANNEX. AND THAT'S RECORDED AGAINST THE PROPERTY AS WELL.

YEAH. THE GOOD EXAMPLE THAT WE HAVE, THE CITY OF NAMPA, SOLVES A NUMBER OF THESE QUESTIONS.

AND I THINK THAT LEGAL HAS LOOKED AT THAT PLANNING, HAS LOOKED AT THAT, PUBLIC WORKS HAS LOOKED AT THAT. WE'RE PRETTY EXCITED WITH SOME OF THE POTENTIALITY OF WHAT THAT MAY BE. BUT BUT IF I COULD I MEAN, WE KIND OF UNDERSTAND WHY WE WHY WE STOPPED DOING WHAT WE'RE DOING. RIGHT. BUT THINK ABOUT WHAT'S CHANGED. WE HAVE AN UPDATED AREA OF IMPACT. WE NEVER THOUGHT THAT'S BEEN DECADES, RIGHT. CITY, COUNTY, CITY, COUNTY MEETINGS WE'VE MENTIONED, RIGHT? WE'VE WE'VE HAD ALL OF THOSE INFILL PROPERTIES THAT COME FORWARD AND WE NOW CAN LOOK AT IMPACT FEES. SO, SO WHAT ARE THE ISSUES? COULD YOU PUT ONE MORE

[03:00:02]

SO YOU HAVE US 20 ON THIS SIDE. WE JUST LOOK AT THIS. ANYTHING IN WHITE THAT MAY COME IN.

RIGHT. SO THIS IS KIND OF OUR NORTH NORTHEAST SIDE OF THE CITY. SO NOW WE'RE AT YELLOWSTONE IONA. AND THIS IS KIND OF SOMETHING THAT WE'VE TALKED ABOUT WITH THE EASEMENT OUT THERE, THIS GREEN SEWER LINE THAT'S PROJECTED OUT THERE THAT'S ACTUALLY GOING TO THE PEAKING PLANT. SO THIS IS PROBABLY AN AREA WHERE WE HAVE MORE OF THOSE PARCELS THAT ARE AVAILABLE. IF WE WANTED TO EXTEND THOSE UTILITIES. IF WE GO TO THE SOUTH HERE, SANDY DOWNS AND THE GOLF COURSE, WE HAVE SOME PROPERTIES. BUT IF YOU THINK ABOUT THAT LARGER FARMLAND, MOST OF THOSE ARE PRETTY CONTIGUOUS, RIGHT? BUT ON THE SO HERE WE ARE AT 49TH AND 65TH. SO THE THE SOUTHEASTERN OR SOUTHWESTERN PART OF TOWN, IF YOU LOOK AT THAT MAGENTA LINE, THERE AREN'T A WHOLE LOT OF THESE THAT WOULD BE IMPACTED. THERE ARE SOME BUT FEW THAT AREN'T CONTIGUOUS ALREADY WITHIN THE AREA OF IMPACT. THAT KIND OF MAKES SENSE. IN OTHER WORDS, WE'RE NOT ASKING FOR THE WORLD. THIS IS A PRETTY SMALL AND DEFINED AREA WHERE YOU MAY HAVE THIS TAKE PLACE ON THE WEST SIDE OF THE RIVER, ALONG THE INTERSTATE.

YOU'VE GOT THIS IS EXCLUDED. THIS IS OUTSIDE THE AREA OF IMPACT, RIGHT? BUT THEN YOU HAVE SOME OF THESE OTHER PROPERTIES, SOME OF WHICH MAY HAVE A REQUEST THAT WOULD COME IN THAT ARE ONE PROPERTY REMOVED. AND SO REALLY, AS YOU LOOK THROUGH THAT, THE QUESTION IS ON A CASE BY CASE BASIS, WOULD IT BE SOMETHING THAT WE'D WANT TO REVIEW? IF WE CAN GET A COLLECTION OF THE SUBSTITUTE IMPACT FEES, WORK THINGS OUT IN A FUTURE ANNEXATION AGREEMENT, ALL COSTS ARE BORNE BY THE DEVELOPER AND THEY DEVELOPED OUR STANDARDS. SO IT'S KIND OF LIKE A YES OR NO. WE'D BE INTERESTED IN A POLICY. YEAH. OR NOT. SO THAT I DON'T KNOW.

I'LL JUST NOTE THAT I SPOKE WITH DIRECTOR FREDERICKSON SINCE I WAS A PRETTY VOCAL OPPONENT OF UTILITY EXTENSIONS. AND I THINK THAT NOW'S THE RIGHT TIME COUNCIL TO CONSIDER SOMETHING ALONG THESE LINES. AND I THINK THAT MAKES A REALLY GOOD ARGUMENT FOR WHY THIS IS A TOOL THAT CAN. IT CAN REALLY JUST CONTINUE TO EXTEND OUR RELATIONSHIP AND COOPERATION WITH THE COUNTY AS WE GROW TOGETHER. AND IN A WAY THAT THAT MAKES SENSE. AND SOMETIMES YOU GOT TO GIVE A LITTLE. YEAH, I JUST DON'T WANT TO BE THAT COUNCIL THAT'S LOOK BACK ON LIKE WE LOOK BACK ON THE GUY BEFORE, LIKE, WHAT WERE THEY THINKING WHEN THEY EXTENDED THAT OUT THERE? RIGHT? SO, YOU KNOW, AND BECAUSE THOSE THAT PROPERTY THAT'S KIND OF OUT BY THE NEW FIRE STATION, I MEAN THAT THOSE PEOPLE NEVER WANT TO BE IN THE CITY BECAUSE THEY'RE ALREADY GETTING CITY SERVICE. RIGHT. AND THEY HAVE THERE WAS NO AGREEMENT. SO IT'S ACTUALLY STUDIED THE GROWTH OF THE CITY BECAUSE WE PUT UTILITIES, WE PUT UTILITIES IN THERE. RIGHT? YEAH. AND I THINK THAT WHAT I LIKE ABOUT DIRECTOR FREDERICKSON PROPOSAL IS THAT WE COUNCIL STILL GETS CONTROL. AND WE'LL LOOK AT IT ON A CASE BY CASE BASIS. THE STAFF WILL LOOK AT IT BEFORE IT COMES TO US AND PROVIDE US WITH RECOMMENDATIONS. BECAUSE I AGREE, YOU KNOW, IT'S ONE OF THE REASONS WHY WE HAVE CONTINUED TO DENY THIS IDEA UNTIL NOW. RIGHT. BUT IT IS IT IS INTERESTING TO A POINT THAT YOU HAVE JUST IN FACT, THE LENS THAT COUNCIL LOOKED AT FOR EVERY DECISION IS NOT THE LENS. YOU'RE LOOKING AT IT FROM TODAY.

RIGHT? RIGHT. SO 40 YEARS AGO, WHEN THEY MADE THAT DECISION, TOTALLY DIFFERENT SET OF ITEMS THAT SAID, THIS MAKES SENSE. AND FOR THE TIME I PROBABLY DID AND I STAND BEHIND THREE YEARS AGO, I DON'T KNOW THAT THIS MADE SENSE, BUT BUT I DO WANT TO POINT OUT, I THINK WE ALL UNDERSTAND WHAT THE PROS COULD POSSIBLY BE, BUT POTENTIAL CONS, JUST SO THAT, LOOK, WE KNOW THE LEGISLATURE TALKS ABOUT ANNEXATION EVERY YEAR, RIGHT? THERE'S SOME RISK THAT THEY COULD CHANGE OUR ABILITY TO DO CITY INITIATED ANNEXATION OR WHATEVER. RIGHT. WE ALSO KNOW IF WE HAVE SOME DEVELOPMENT THAT TAKES PLACE OUTSIDE OF CITY LIMITS, BUT WITHIN OUR

[03:05:01]

I MEAN, IT'S, YOU KNOW, IT'S THE RIGHT THING TO DO. OKAY. AND I GO BACK TO SOMETHING THAT COUNCILMEMBER DINGMAN SAID, BECAUSE I HAD THE SAME THOUGHT, GIVEN THE CLIMATE OF THE COUNTY AND THE CITY AND ALL THOSE THINGS YOU CITED, THE ENCLAVES ARE PRETTY MUCH GONE AWAY. DOES THIS MAKE US BETTER NEIGHBORS TO THE COUNTY? DOES THIS MAKE IT MORE LIKELY THAT AS WE MOVE FORWARD, OUR RELATIONSHIP WITH THE COUNTY REMAINS GOOD AND GOES ALONG IN A POSITIVE WAY? I THINK IT IS. AND ONE OF THE REASONS I SAY THAT WE. YOUR OPINION ON THE MATTER TOO. BUT BUT I THINK WE KNOW THE EXPERIENCE, THE PAIN THAT WE HAD OVER TIME AND WHY WE SAY NO TO THAT. RIGHT. AND SO I THINK THAT THERE IF YOU THINK ABOUT IT, YOU HAVE ONE PROPERTY REMOVED FROM BEING CONTIGUOUS. AND SO NOW IT'S JUST A MATTER OF TIMING. WE TELL THEM TO GO CHAT WITH THE PROPERTY OWNER IN BETWEEN TO CREATE THAT PATH TO ANNEXATION. AND THEY SAY, I'M NOT INTERESTED IN THAT. I MAY BE AT SOME POINT IN THE FUTURE, BUT SO NOW THEY DEVELOP IN THE COUNTY, THE COUNTY STANDARDS, AND THEY BASICALLY BUILT THAT BARRIER FOR US TO CONTINUE TO GROW WITHIN OUR AREA OF IMPACT THAT WE DEFINE AS THIS IS AN AREA THAT THE CITY FEELS LIKE IT WILL GROW TO IN THE FUTURE IN AGREEMENT WITH THE COUNTY. AND SO THAT'S A, I THINK THAT'S KIND OF MORE OF A HANDSHAKE THAT WE'RE GOING TO SAY, HEY, I AGREE WITH YOU THAT THIS IS THIS IS BETWEEN THE CITY AND THE COUNTY. I COULD ADD SOMETHING TO THAT AS WELL, BECAUSE ESPECIALLY WHEN WE HAVE UTILITIES RUNNING RIGHT IN FRONT OF THAT PROPERTY, BUT THEY'RE NOT ACTUALLY IN THE CITY. AND SO WE'RE SAYING WE'RE NOT GOING TO HOOK THEM UP TO THE UTILITY BECAUSE IT'S RIGHT THERE. I THINK THAT THE COUNTY THEN, WHO HAS ACTUALLY, FOR THE LAST TWO YEARS, REALLY BEEN TRYING TO PUSH THINGS INTO THE CITY, LIKE JUST OPPOSITE OF HOW IT USED TO BE. YEAH. THEN THEN THEY COME FORWARD WITH THEIR, WELL, YOU KNOW, THAT TERRIBLE ORDINANCE THAT THEY PASSED TO SAY, WELL, YOU CAN'T USE THE RIGHT AWAY FOR YOUR UTILITIES.

I THINK IT'S KIND OF THAT WAS THEIR WAY OF. TELLING THE CITY. LIKE, YOU HAVE TO BE ABLE THAT THAT THAT WOULD BE PART OF THE CONVERSATION IS JUST THAT WE WOULD HAVE THIS CONVERSATIONS, YOU KNOW, OVER AND OVER SO THAT THEY, IF THEY COULD RESCIND THAT AND WE SAID, YES, WE WOULD DO THIS STRATEGIC ANNEXATION. I THINK THE LANDSCAPE HAS CHANGED. THE AREA OF IMPACT IS THERE. I THINK WE'RE MY PUSH IS GOING TO BE THAT WE START SOME DOING SOME OF THESE CITY INITIATED ANNEXATIONS FOR PEOPLE THAT ARE ALREADY ON OUR UTILITIES, SO THAT WE CAN CONTINUE TO MOVE TO THE NORTH AS PROPERTY OWNERS. I KNOW THAT A LOT OF THOSE PROPERTIES WANT TO COME INTO THE CITY, BUT THEY ARE ONE PROPERTY REMOVED. AND I MEAN, WHEN WE TALK ABOUT A SPIKE STRIP, THERE ARE PEOPLE WHO HAVE SAID, I WOULD RATHER FEED THE POPULATION OF THE WORLD THAN TO THAN TO GIVE UP, YOU KNOW, THIS TEN ACRE FARM, THERE'S NO WAY WE'RE GOING TO GET ON PAST THEM. SO WE'RE GOING TO HAVE TO FIGURE OUT HOW THE CITY EXTENDS UTILITIES, YOU KNOW, IN AN AGREEMENT WITH THE DEVELOPER, I THINK WE KNOW THAT COUNTY, COUNTY ISLANDS IN GENERAL ARE NOT EFFICIENT, RIGHT? THEY JUST SIMPLY THEY COST MORE MONEY OVER TIME. THEY CREATE MORE BARRIERS TO FOR SERVICE DELIVERY, FOR SERVICE DELIVERY, FOR CONSISTENCY, FOR STANDARDS. AND THE COUNTY IS TIRED OF THEM AND THEY'VE CREATED TOO MANY OF THEIR OWN.

AND I THINK THAT EVERYONE IS STARTING TO REALIZE THAT MAYBE NOW IS THE TIME TO MOVE IN THE SAME DIRECTION. AND THIS IS ONE OF THE THINGS THAT WE CAN DO TO MAKE THAT HAPPEN. I THINK TO PIGGYBACK OFF OF DIRECTOR FREDERICKSON, TOO, I THINK THE CONTINUED COMMUNICATION THAT WE NEED WITH THE COUNTY, I HAVE FOUND THEM TO BE VERY, VERY EASY TO WORK WITH. YOU JUST OPEN THE DIALOG, WHAT DO YOU WANT FROM THIS? AND THEN LISTEN TO IT. AND I THINK WE'RE THERE'S JUST A DIFFERENT RELATIONSHIP THERE THAN I FOUND, NOT JUST WITH NATIA GOING OVER THERE, BUT I TALK WITH AUSTIN FREQUENTLY AND IT'S JUST A GOOD DIALOG. AND I THINK AS LONG AS

[03:10:05]

BUT THAT'S OKAY. THAT'S OKAY. WE CAN WORK THROUGH THIS. AND IS IT SAFE IN AN OVERALL THAT THEY WOULD BE MORE INTERESTED IN HAVING SUBDIVISIONS BE PART OF THE CITY THAN PART OF THE COUNTY? JUST IN A GENERAL, YES. THE DIALOG THAT I HAVE HAD WITH MANY PEOPLE OVER THERE IS THEY JUST. THAT'S WHY THAT'S IN THERE, ABOUT THE AGRICULTURAL LAND, ABOUT OUR GUIDING PRINCIPLES, IS BECAUSE THEY WANT THE COUNTY TO BE COUNTING. AND WE ACTUALLY, AT LEAST FROM A STAFF PERSPECTIVE, WE AGREE WITH THAT STATEMENT. WE WOULD LIKE THE CITY DEVELOPMENT TO BE THE SUBDIVISIONS, THE DENSITY. WE'D LIKE IT IN THE CITY BECAUSE IT JUST MAKES SENSE.

COUNCIL MEMBER LARSEN, I'M GOING TO ADD ONE THING, JUST BECAUSE I DO HAVE THESE CONVERSATIONS REGULARLY WITH THE COUNTY AS WELL. THEY DON'T COLLECT ANY MORE MONEY FROM THEIR COUNTY RESIDENTS TO PLOW ALL OF THOSE SUBDIVISIONS. SO THOSE SUBDIVISIONS DON'T GET PLOWED. YOU CAN IMAGINE HOW MANY PEOPLE ARE IN A SUBDIVISION WHO THINK THAT THEY ARE, IN PART OF SOME POLITICAL SUBDIVISION THAT IS GOING TO PLOW THEIR ROADS TO NEVER SEE A PLOW. IT IS CAUSING QUITE THE ISSUES FOR THE COUNTY WITH THEIR OWN COUNTY RESIDENTS. SO THAT'S JUST ONE EXAMPLE OF HOW THEY'RE STRUCTURED. THEY DON'T LOOK AT HOW MANY PEOPLE LIVE ON THE STREET, ON THE ROAD. THEY LOOK AT THE MILES OF THE ROAD. THEY DO. YEAH, YEAH. YOU KNOW, WE'RE ALL COUNTY RESIDENTS. WE'RE ALL PAYING THE SAME TAXES. AND SO THEY ARE TRYING TO FIGURE OUT HOW HOW TO PLOW THOSE ROADS. AND I BELIEVE THIS LAST YEAR, YOU KNOW, I'M BIG ON BIG WINTER YEARS WHEN THOSE ROADS AREN'T GETTING PLOWED, THEY GOT A LOT OF RESIDENTS. SO I THINK THAT THERE IS THAT UNDERSTANDING NOW THAT SUBDIVISIONS BELONG IN IONA AND AMAN AND WHERE THOSE SERVICES ARE CAPABLE OF BEING SERVED, THOSE RESIDENTS ARE CAPABLE OF BEING SERVED. SO MAYBE I COMMENTED ABOUT IN WYOMING, WHERE I CAME FROM, I I'VE TALKED TO AUSTIN. THEY'RE LOOKING TO REDO THEIR COMPREHENSIVE PLAN IN THE NEXT YEAR OR TWO, AND I'VE OFFERED THAT I WOULD BE VERY OPEN TO HELP THEM WITH ANYTHING THEY NEED. ALSO IN WYOMING, WHEN I WAS THERE, THEY HAD PREDEVELOPMENT MEETINGS ON THE COUNTY SIDE AND SHERIDAN COUNTY, AND IT WAS JUST THROUGH DIALOG THAT EVENTUALLY I WAS SITTING ON THOSE PREDEVELOPMENT MEETINGS AND I WOULD JUST COMMENT ON CITY STANDARDS AND SAY, CITY STANDARD IS THIS LONG OF A ROAD OR THIS WIDE OF A ROAD? AND I PRAY THAT WE CAN GET TO THAT TYPE OF DIALOG AND GET VERY, VERY COHESIVE THE WAY IN WHICH WE DEVELOP. SO IF COUNCIL, IT SEEMED LIKE I SAW A LOT OF HEADS NODDING. SO YES, MOVE FORWARD WITH SOME KIND OF FORMAL. OKAY. AND OUR FINAL ITEM. THANK YOU DIRECTORS, BOTH OF YOU. THANK YOU. THANK YOU COUNCIL FOR STICKING AROUND AND LETTING THAT. IT IS IT IS PART OF THE SAME CONVERSATION. SO THAT IS VERY MUCH APPRECIATED. NOW WE JUST HAVE THE LANGUAGE OF OUR. THE WRITTEN DECISION

[Legal]

[03:15:13]

LEAVE OUT THE SUB PART INSTEAD OF 3535. THAT WAS MY BAD. THAT WAS A TYPO THERE. YOU'RE GOOD WITH THAT BECAUSE THAT IS THE CORRECT CODE SECTION. OKAY. AND THEN THE THIRD CHANGE I JUST THOUGHT ABOUT. NOW SINCE YOU'RE GOING TO BE OUT, YOU'LL BE ATTENDING REMOTELY, CORRECT? ON THURSDAY, WHAT I WAS THINKING OF, RATHER THAN HAVING THE CITY COUNCIL MEMBERS SIGN IT AND JUST GIVE AUTHORIZATION TO THE MAYOR TO SIGN IT, THEN WE DON'T NEED YOUR SIGNATURE AND WE CAN GET THIS OUT RIGHT AWAY. THE REASON IS, IS BECAUSE BY LAW, IT IS DEEMED DENIED ON APRIL 27TH. SO WE WOULD NEED YOU TO START. IF YOU WANT TO SIGN IT, THAT'S FINE. WE JUST NEED TO MAKE SURE YOU CAN SIGN IT BEFORE APRIL 27TH. YEAH, I CAN DO THAT TOO. OKAY. AND WHICH WAY WOULD YOU LIKE? I CAN TAKE OUT THE SIGNATURE BLOCKS FOR CITY COUNCIL, THE THREE CITY COUNCIL MEMBERS, OR I CAN LEAVE IT, AND YOU GUYS CAN JUST AUTHORIZE THE MAYOR. YOU CAN FIND A WAY TO. YEAH. LET ME TALK TO LISA ABOUT WHAT OPTIONS DO WE HAVE? OKAY. THAT'S FINE.

AND YOU CAN EVEN SIGN IT. WE CAN SEND IT TO YOU. YOU CAN SIGN IT AND SEND IT BACK. RIGHT.

OKAY. ALL RIGHT. I THINK IT'S BETTER TO HAVE THE SIGNATURES. OKAY. YEAH. LET ME TALK TO MAYOR. JUST AS LONG AS WE CAN GET IT OUT TO HIM BY APRIL. I WANT TO MAKE SURE THIS IS THE ONE THAT WOULD BE APPEALING. COULD YOU GO BACK TO FINDING EFFECTS? 25 SIX. YEAH. YEAH. SO LATER ON, YOU DO MAKE THE THE REFERENCE THAT THIS IS THE APPLICANT IS APPROXIMATELY SEVEN UNITS PER ACRE. LATER ON YOU SAID EXACTLY 7.71 UNITS PER ACRE. SHOULD WE PUT THAT IN THERE? I KIND OF TELL ME TO. YEAH. BECAUSE LATER ON YOU MAKE A REFERENCE TO IT. YEAH. WOULD YOU LIKE TO CHANGE OKAY. TO THE EXACT. YEAH. CHANGE THE FINDING OF FACT TO THE EXACT NUMBER.

YEAH. OKAY. YEAH. AND I MAY HAVE TO TWEAK THE CONCLUSION OF LAW. I DON'T THINK I WILL, BUT I'LL JUST DOUBLE CHECK THAT. SO I'LL MAKE THOSE, THOSE CHANGES. YEAH. ANYTHING ELSE? I'M GOOD WITH IT. YEAH. OKAY. THANK YOU. THAT'S ALL I HAVE. OKAY. OR THE LEGAL LIAISONS. SO YEAH. OKAY.

[Mayor]

[03:20:05]

I'LL TRY TO REMEMBER TO EMAIL UNITED WAY AND SEE IF THEY CAN GET IT TO CARLO. OKAY, THAT'D BE GREAT. THERE'S ALWAYS SOMEBODY NEW OR SOME SOMEONE THAT NO LONGER IS EXISTING, AND IF WE DON'T WANT TO SEND SOMEBODY DOWN A RABBIT HOLE OF A NONPROFIT THAT NO LONGER IS OPERATING, WE JUST WANT TO KEEP A GOOD UPDATED LIST OF THAT. OH, THERE IS ONE MORE. CINCO DE MAYO IS MAY 2ND, WHICH WILL BE BEFORE WE MEET AGAIN. OH, GOOD. THANK YOU. OKAY. WE ARE. OH, YES. ONE ONE QUICK COMMENT. I THINK I JUST LIKE TO SAY THANK YOU TO OUR DIRECTOR SPECIFICALLY. THIS LAST PART IS WHAT I'M THINKING ABOUT WITH WITH DIRECTOR AND DIRECTOR FREDERICKSON AND JUST THE NEW ERA THAT WE'RE ENTERING WITH RESPECT TO OUR RELATIONSHIP TO THE COUNTY AND HOW THAT WILL SERVE THE CITIZENS OF BOTH THE CITY AND THE COUNTY MOVING FORWARD. I HAVEN'T HAD ANYBODY ASK ME FOR A LONG FOR QUITE A WHILE NOW. WHY DO YOU GUYS NOT GET ALONG RIGHT THAT THAT THAT COMMENT HAS PASSED? YES. EVEN JUST ONE MORE 32ND COMMENT.

COUNTY, CITY OF IDAHO FALLS AND WE'RE GOING TO WE'RE DOING A JOINT MEETING, PUBLIC MEETING, INVITING THE MEDIA TO, TO ANNOUNCE ALL OF OUR ROAD PLANS THIS YEAR TO BE ABLE TO SHOW HOW THEY ARE IN CONJUNCTION WITH EACH OTHER AND COMPLIMENTING EACH OTHER. AND, AND JUST THAT WE ARE WORKING COLLABORATIVELY FOR THAT. AND I JUST THINK AS THESE THINGS CONTINUE TO PROGRESS, PEOPLE WILL SEE IT EVEN MORE. SO THAT IS HAPPENING IN I CAN'T REMEMBER IT WAS HAPPENING IN MAY AFTER THE THE ELECTION 18TH IS THE TENTATIVE DATE. WE'RE LOOKING FOR A LOCATION JUST FINALIZING LOCATION, BUT MAY 18TH IS THE TENTATIVE DATE FOR THAT. AND I, I KNOW, MAYOR, YOU'VE DONE A LOT OF WORK ON THIS OVER THAT PERIOD OF TIME TOO, SO I DON'T WANT TO LEAVE ANYBODY OUT, BUT I JUST IT'S SHOWING REAL FRUIT. I APPRECIATE THAT. OKAY. COUNCIL, THANK YOU FOR BEARING WITH US AS WE GET THROUGH THESE COST ALLOCATIONS, THESE PROCUREMENT POLICIES, THESE ARE THE THINGS THAT WE ARE FINDING THAT WE WERE FINDING INSTANCES IN AUDITS, INSTANCES THAT WERE CAUSING STRIFE WITHIN THE CITY, STRIFE FOR DEPARTMENTS, CONFLICT BETWEEN DEPARTMENTS. SO AS WE COME TOGETHER TO BRING THIS FORWARD TO YOU, THANK YOU FOR YOUR PATIENCE AS WE BRING THIS FORWARD AND TRY AND

* This transcript was compiled from uncorrected Closed Captioning.