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minutes meeting date 2026-04-20 · fetched 2026-09-17 · 28096 characters · official file · plain text
City Council Work Session Meeting Minutes 1 680 Park Avenue Idaho Falls, ID 83402 Monday, April 20, 2026 3:00 PM City Council Chambers Call to Order and Roll Call There were present: Mayor Lisa Burtenshaw Council President Jim Francis Councilor Michelle Ziel-Dingman Councilor Jim Freeman Councilor Kirk Larsen Councilor John Radford Absent: Councilor Brandon Lee Also present: Pam Alexander, Municipal Services Director Wade Sanner, CDS Director Brooks Slyter, Assistant Finance Manager Alan Cunningham, Drafter, Power Kevin Mullerleile, Auditor, Baker Tilly Chris Fredericksen, Public Works Director Zack Jones, City Attorney Jasmine Marroquin, Deputy Clerk David Pennock, Zoo PJ Holm, Parks & Recreation Director Mayor Burtenshaw called the meeting to order at 3:03 p.m. with the following items: Mayor, City Council 1. Discussion: Citywide updates, concerns, questions, reports: • Council President Francis • RV parking concern: A citizen submitted a letter asking the City to reconsider the current 48-hour limit for RV street parking. Council President Francis has asked police to get input from code enforcement before making any changes, suggesting the Council wait to see how the rule is actually being enforced in practice. • Utility Board meeting change: The May Utility Board meeting has been moved from the 13th to the 6th to better align with the Council’s meeting schedule. • Farmers Market outreach idea: The Council is exploring setting up a rotating booth at the farmers market this summer to engage informally with residents. Participation would be limited to a small number of Council members at a time to comply with open meeting laws, and they plan to focus on the busiest market dates. The effort is part of a broader push to improve community outreach, supported by a modest allocation in the Council’s budget. • Councilor Radford (focused on the upcoming tree ordinance): • Ongoing work and coordination: He has a meeting scheduled with the City forester and staff to continue refining the ordinance, which has already been in development for a couple of years with multiple revisions. • Potential changes and focus areas: While much of the ordinance involves cleanup and aligning with updated standards, there are some substantive elements—particularly adopting current forestry standards and possibly requiring a formal forest management plan. Councilor Radford City Council Work Session Meeting Minutes 2 680 Park Avenue Idaho Falls, ID 83402 also highlighted a more assertive approach to street tree replacement, especially in areas where trees are removed and not replaced. • Public health rationale: He emphasized new research and data showing significant health benefits from urban trees (e.g., impacts on asthma and disease prevention), which he believes could be compelling for the Council. • Process and timing: Councilor Radford suggested sharing educational materials with Council members ahead of time (as long as there’s no back-and-forth to avoid open meeting issues). He indicated the item is not urgent but may be scheduled for a work session discussion around May 4, followed by a regular meeting to allow for public input. • Next steps: The proposal may need further review by the Shade Tree Committee depending on the changes brought forth. • Councilor Larsen – Nothing additional to add. • Councilor Freeman (focused on the park project funded through the Land and Water Conservation Fund (LWCF): • Project moving forward: The City has received approval to begin development, marking a major milestone. • Planning still in progress: The overall park design isn’t finalized yet, but options have been narrowed to a few layouts, mainly focusing on where key features will be placed on the site. • Community input coming: A neighborhood meeting is tentatively planned for mid-May to gather public input before construction begins. The City wants to ensure feedback is collected before major work starts, rather than after decisions are made. • Vision for the park: Councilor Freeman emphasized creating a space that serves a wide range of users—such as including play areas for different age groups, connections to the trail system, and amenities that reflect nearby uses like the college. • Future additions possible: Once the park meets funding requirements, additional features like a dog park, pickleball courts, or smaller amenities could be added later. • Overall, the project is advancing, with a strong focus on thoughtful planning and community involvement before finalizing design decisions. • Councilor Dingman – Nothing additional to add. 2. Acceptance or Receipt of Minutes Motion: Receive the recommendations from the April 7, 2026 meeting of the Planning and Zoning Commission pursuant to the Local Land Use Planning Act (LLUPA). o Moved by: Councilor Francis o Second: Councilor Radford o Vote: Aye: Francis, Dingman, Freeman, Larsen, Radford. Nay: none. o Motion carries. City Council Work Session Meeting Minutes 3 680 Park Avenue Idaho Falls, ID 83402 Municipal Services 1. Presentation: Audit with Baker Tilly (Director Alexander, Brooks Slyter, Kevin Mullerleile)- The City’s external auditor (now operating under Baker Tilly, following a merger with Moss Adams) presented the results of the Fiscal Year 2025 audit, noting that while the firm name changed, the audit team and processes remained consistent. Audit scope and process The audit examined five core areas: • Internal controls (financial checks, approvals, processes) • Verification of financial transactions and balances • Compliance with federal programs and regulations • Accuracy of the City’s financial statements • Communication of results to Council The process spans several months: City staff will close out the fiscal year (ending September 30), complete adjustments and financial statements through December (with auditors conducting fieldwork in January). and the final report will be issued in early spring (April 2 this year). Key audit results The audit produced very strong outcomes: • The City received a clean (unmodified) audit opinion, the highest possible, confirming the financial statements are accurate and compliant with accounting standards. • No audit adjustments were required, indicating staff provided accurate data from the outset. • No internal control findings related to financial reporting were identified. • No fraud, waste, or abuse was detected. Auditors also praised City staff for excellent organization, responsiveness, and communication, making this year’s audit especially smooth. Federal compliance and audit finding Auditors reviewed major federal programs (including ARPA funds and a transportation trails grant) and found no compliance issues in spending or reporting. However, one significant deficiency was identified: • The City did not consistently verify contractors against the federal SAM.gov suspension/debarment database or include required contract language. Importantly: • No ineligible contractors were actually used, so there was no financial harm or violation. • The issue is procedural and easily correctable, but still important due to potential risks to future federal funding. The City is actively addressing this by: • Updating procurement policies • Adding checklists and earlier verification steps • Improving department coordination and training • Exploring enhanced grant management support Procurement policy improvements In response to the finding, staff worked with the auditor to strengthen the City’s procurement policy. Updates include: • Clearer requirements for federal compliance checks (e.g., SAM.gov) City Council Work Session Meeting Minutes 4 680 Park Avenue Idaho Falls, ID 83402 • Encouraging competitive bidding for higher-cost purchases where appropriate • Adding cybersecurity expectations to protect sensitive data • Incorporating guidance into a policy matrix/crosswalk for departments These changes are intended as clarifications, not major policy shifts, and are not expected to burden departments. Council requested a red-lined version to better track revisions. Financial condition overview The City’s financial position is strong and stable: • Net position exceeds $800 million, with continued growth in capital assets—an indicator of a healthy, growing City. • The General Fund balance increased (roughly from $28M to $33M), reflecting a positive fiscal year. However, staff clarified that: • Most of the fund balance is restricted, committed, or assigned (e.g., contracts, capital projects, reserves). • Only about $8.2 million is truly unassigned and flexible. This unrestricted amount is lower than ideal, with a target closer to $15–20 million (20–25%) to better manage cash flow and economic uncertainty. Prior issues and accounting practices • A previous issue with capital asset tracking (Power and Fiber) has been fully resolved and did not recur. • Assets are recorded at historical cost minus depreciation, not market value, consistent with standard accounting practices. Other discussion points • Internal loans between funds (e.g., for capital projects) are considered standard practice, provided they are formally approved and documented. • The City continues to emphasize strong internal controls, documentation, and transparency across financial operations. Overall conclusion The audit confirms that the City: • Maintains accurate, reliable financial reporting • Has strong internal controls and sound financial management • Is in a stable and growing financial position • Has effectively resolved past issues The only concern identified is a limited procedural gap in federal procurement compliance, which the City is already addressing with practical policy and process improvements. 2. Discussion: Cost Allocation and ERP Repayment (Director Alexander, Brooks Slyter) City staff and Council worked through the development of a formal cost allocation policy and methodology, with additional discussion of ERP repayment timing. The overarching goal is to establish a consistent, defensible, and long-term system for distributing shared (“indirect”) City costs across departments. City Council Work Session Meeting Minutes 5 680 Park Avenue Idaho Falls, ID 83402 The discussion started with the purpose and structure of cost allocation. Staff distinguish between direct charges (specific services billed to a department, such as fleet maintenance or engineering work orders) and indirect costs, which include centralized services like IT, HR, finance, legal, risk management, and administration that support the entire organization. The intent is to formalize a policy that is transparent, repeatable, and stable over time, rather than revisited and renegotiated each budget cycle. The methodology is based on a five-year average of actual expenditures (not budgets), adjusted to a budgetary/cash perspective. This includes personnel and capital spending but excludes items like pensions, depreciation, and certain funds already allocated through other mechanisms. Debt service is also removed to avoid double-counting capital investments already reflected in historical spending. The system uses these historical averages to determine each department’s proportional share of indirect costs. Staff emphasized that actual monthly charges are “trued up” based on real expenditures, not static budgets. Allocation drivers vary by department (such as personnel costs, usage, revenue, or workload measures), and in some cases direct charges are removed first (e.g., dedicated IT staff or utility billing support) before indirect allocation occurs. A simplified model showed how each department receives a proportional share of shared services like HR, IT, and legal. Council discussion highlighted tension between accuracy and practicality. While more precise tracking (such as detailed time accounting for staff activity) could improve accuracy, staff argued it would be too costly and complex. The five-year averaging approach is presented as a widely used municipal best practice that balances fairness, stability, and administrative feasibility. Council members generally agreed that trust in the system and clear understanding of services are essential for acceptance. A major focus of debate is the impact of shifting IT and other allocations from simpler methods (like user counts or budgets) to five-year actuals, which redistributes roughly $1 million from the General Fund to other departments such as utilities and enterprise funds. Some concerns were raised about fairness and whether certain departments (like Power) are disproportionately affected, while others noted that IT and centralized services are increasingly critical and growing in cost. The discussion then moved into department-specific allocation changes: • Administrative offices (Mayor, Clerk, Legal civil functions) move to five-year actual averages with certain exclusions. • Municipal Services includes direct charges (e.g., utility billing systems and IT staff) before allocating remaining costs. • Risk management uses blended models combining workers’ compensation rates, property exposure, and claims history. • Treasury, HR, finance, and utility billing use variations of five-year averages tied to revenue, staffing, or customer base. • GIS and Public Works administration remain narrowly allocated to specific benefiting departments. A significant issue came up regarding the airport and capital expenditures. The airport director had raised concern that including large capital projects (such as major expansions) in the five-year average could create a perception of improper diversion of airport revenues, which are federally restricted under FAA rules. Council members also question whether large, infrequent capital projects distort the smoothing intent of the model. Staff responded that while no model is perfect, the five-year average helps normalize fluctuations and that documentation and consistency are key for audit and compliance defensibility. City Council Work Session Meeting Minutes 6 680 Park Avenue Idaho Falls, ID 83402 Council also discussed potential alternatives, such as separating capital and operating costs or applying weighted allocation models, but ultimately leaned toward maintaining a consistent approach while seeking possible FAA guidance. There was agreement not to overreact to single-year anomalies and to allow the system to operate over time before making judgments. Across all sections, a recurring theme was that cost allocation is inherently imperfect but necessary, and must balance: • Fairness across departments • Transparency and auditability • Stability over time • Administrative practicality • Avoiding unintended behavioral incentives The presentation concluded with confirmation that a draft cost allocation policy will be brought forward for Council approval, with a recommendation that it remain in place for approximately three years before major revisions, to avoid annual restructuring and allow sufficient time to evaluate its performance. The ERP repayment discussion was deferred for a separate, shorter conversation. IF Power – Discussion: Falls Water Easement (Alan Cunningham) The discussion from IF Power centered on a proposed reciprocal easement arrangement involving City- owned property near the peaking plant. A representative explained that Connect Engineering, on behalf of a private client tied to LKM Properties, is requesting a water line easement that would cross City property along the north side of the railroad. The line would ultimately connect into Falls Water’s service area to provide water access to the private development. Because the route crosses City of Idaho Falls land, coordination was needed with both Idaho Falls Power and Falls Water. Idaho Falls Power indicated it had no objection to granting the easement, provided the City receives something in return. In exchange, the City is requesting a 20-foot easement from the private property owner along the same corridor. This would preserve the City’s ability to install future electric distribution infrastructure tied to the peaking plant site, including potential transmission needs for a planned substation in the next several years. Key points of the agreement: • Falls Water would receive a dedicated utility easement through City-owned land to serve the development. • The City of Idaho Falls (through Idaho Falls Power) would receive a corresponding easement for future power distribution needs. • Easements would be narrowly defined (not broad public utility corridors), limiting use to the specific parties. • Legal descriptions and exhibits still need to be completed before formal Council approval. Overall, staff and Council indicated no legal concerns with the arrangement, characterizing it as a straightforward negotiated exchange of easements benefiting both utility access and future infrastructure planning. The item will return to Council once documentation is finalized. City Council Work Session Meeting Minutes 7 680 Park Avenue Idaho Falls, ID 83402 Parks & Recreation – Discussion: Planning for Zoo Entrance Improvements (Director Holm, David Pennock) Across the full Parks and Recreation/Zoo discussion, staff presented a long-term update on zoo infrastructure planning, revenue generation efforts, and a proposed architectural contract for the new zoo entrance and gift shop. The presentation began with the request to move forward with Phase 2 of an existing agreement with Meyers Anderson, an architect selected through a 2021 RFQ process. Phase 2 would complete final design work, secure approvals, support bidding, and assist through construction for the new zoo entrance and related roadway improvements. The contract is a $150,000 not-to-exceed agreement covering both phases, with about $30,000 already spent on initial design. Staff emphasized that this project is part of implementing long-standing master plans for the zoo and park system, including circulation changes already underway such as new internal roads and a planned drop-off/turnaround area. A major portion of the discussion focused on the zoo’s broader financial strategy and performance. Staff outlined significant investments made over the past decade to stabilize and modernize the zoo following a period of operational and compliance challenges, including USDA concerns and staffing deficiencies. Since then, staffing levels, animal care, and infrastructure have improved to meet accreditation standards. However, these improvements have also increased ongoing operating costs, making revenue growth a central focus. Staff reported that zoo revenues have increased substantially over the past decade (over 200%), but still lag behind rising expenses. As a result, multiple efforts are underway to improve per-visitor spending and overall attendance-driven revenue. These include new exhibits, Funland improvements, food service upgrades, and expanded retail opportunities. A key example discussed was the Kookaburra Café. The City recently took over operations from a contractor and improved per-visitor revenue from about $0.56 to $0.71, generating roughly $106,000 annually. However, this remains below industry benchmarks (around $1.20 per visitor). A new, larger café is planned for next spring and will be funded by the Zoological Society rather than the General Fund. Staff also described Funland as a developing revenue asset that has faced early operational challenges, including ride reliability issues, incomplete food service, and limited marketing. They noted these issues are now being resolved and that this season represents its first fully functional year. Council raised concerns about marketing capacity, pricing structure, and overall operational expertise. Staff responded that limited marketing resources currently exist, but efforts are increasing through City communications staff, media outreach, and advertising partnerships. The new zoo entrance and gift shop were described as the most significant upcoming revenue driver. The current entrance causes congestion and long visitor lines, which may reduce attendance. The redesigned entrance will improve traffic flow and route all visitors through a significantly expanded gift shop—nearly three times larger than the current facility. Staff and Council emphasized that retail sales represent a major missed revenue opportunity under current constraints, especially given existing per-visitor spending performance. Council raised concerns about staffing costs, sustainability, and whether new positions should be funded through zoo-generated revenue rather than the General Fund. Staff agreed in principle and noted that staffing growth should align with increased attendance and revenue potential. They also clarified that most current capital projects are being funded through the Zoological Society and other non-General Fund sources, though the City has made past investments in zoo infrastructure and access improvements. Overall, the discussion framed the proposed entrance project as a critical step in a broader strategy: improving visitor experience, reducing congestion, expanding retail and food service capacity, and increasing long- term financial sustainability. The zoo’s future direction is tied to continued implementation of its master plans, public-private funding partnerships, and incremental revenue growth from multiple visitor-facing improvements. City Council Work Session Meeting Minutes 8 680 Park Avenue Idaho Falls, ID 83402 Public Works, CDS, Legal (Director Sanner, Director Fredericksen): 1. Discussion: Strategic Extension of Utilities with the Area of impact 2. Discussion: Principles of Annexation City staff presented a coordinated discussion on annexation principles and the potential strategic extension of utilities, aimed at guiding future growth policy and improving consistency in decision-making. They proposed adopting non-binding annexation principles as a best-practice framework to guide staff communication, improve transparency, and support long-term planning. These principles emphasize focusing annexation toward the City’s core, strengthening the tax base, balancing property rights with orderly growth, and using City services efficiently. For City-initiated annexations, the framework would prioritize: • properties already receiving City utilities and becoming contiguous, • enclaves surrounded by the City, • avoiding undeveloped parcels connected only at corners, and • case-by-case review for utility conversion requests. Additional principles include: • avoiding annexation of active agricultural and forest lands unless requested by owners, • coordinating right-of-way annexations with the County based on roadway type and jurisdiction, and • increasing predictability through public education about annexation expectations. Staff then connected these principles to a broader proposal on strategic utility extensions, noting that past policy discouraged extending utilities into the County due to available infill land. However, with infill largely built out and intergovernmental coordination improving, staff asked Council to consider whether a case-by-case policy should now allow limited utility extensions tied to future annexation agreements. The second portion expanded this concept with mapping of the City’s area of impact, showing that only a small number of edge properties would be affected. Staff and Council discussed how a formalized approach could: • support orderly growth and reduce inefficient “county island” development, • ensure developers bear infrastructure costs and follow City standards, and • strengthen long-term coordination with the County. Supporters emphasized improved City–County relations, updated development conditions, and the need for flexible but structured tools. Concerns included maintaining Council control, managing legal/legislative risk, and avoiding unintended long-term growth consequences. Legal – Discussion: Draft Written Decision for Denial of Willows Place PUD (Zack Jones) The Legal discussion focused on finalizing the denial document for the Willow Place application and making a few technical and procedural edits before it is issued. City Council Work Session Meeting Minutes 9 680 Park Avenue Idaho Falls, ID 83402 The attorney proposed clarifying paragraph 10 of the Findings of Fact by simplifying the language so it more clearly describes that the parking stalls represent more than half of the total linear street distance, rather than the current more complex phrasing tied to specific lots. A correction was also made to a statutory citation on the last page, fixing a typographical error in the code reference (correcting it to the proper section without the incorrect subsection formatting). Another substantive edit involved consistency in density calculations: where the document references the project’s density, it was suggested to replace the rounded figure (“approximately 7 units per acre”) with the precise value of 7.71 units per acre to match other sections. Procedurally, there was discussion about how to handle signatures, since the decision will be deemed denied by law on April 27. Options included keeping City Council signatures or delegating signature authority to the Mayor to expedite processing. The group leaned toward keeping signatures but confirmed coordination would ensure timely execution, even with remote participation. Finally, the attorney noted he may also review and potentially adjust the conclusion of law for consistency, though no changes were expected. Mayor – Announcement, Events, Calendaring, Proclamations, notes and/or Minutes from the Boards and Commissions Mayor Burtenshaw’s closing remarks focused on the upcoming impact fee public legislative hearing on Thursday, emphasizing that the proposal reflects extensive work from staff, legal review, and the Impact Fee Advisory Committee over several months. She noted the item is largely ready for Council action, with no significant feedback received ahead of the meeting. The Council will also consider the related fee resolution, with a planned June 1 adoption and implementation date, framing the hearing as a key “up or down” decision on the new impact fee ordinance and capital improvement plan. She confirmed that public testimony will be taken since the hearing is legislative, not quasi-judicial. Councilor Radford shared brief announcements, including a reminder of a Family Fair community event at Tauphtaus Park on May 2 sponsored by United Way and partner organizations, with a request from Mayor Burtenshaw to maintain an updated list of participating nonprofits and vendors for public reference. Council President Francis noted Cinco de Mayo activities occurring May 2 ahead of the first May Council meeting. An update was provided on growing City–County collaboration, including a tentative May 18 joint public meeting to present coordinated road plans and highlight cooperative infrastructure planning. The Mayor closed by thanking staff and Council members for their work on ongoing cost allocation and procurement policy reforms, which address prior audit findings and interdepartmental issues, and for their patience as these changes move forward. There being no further business, the meeting adjourned at 6:31 PM /s/ Jasmine Marroquin_______________ /s/ Lisa Burtenshaw _____________ Jasmine Marroquin, Deputy City Clerk Lisa Burtenshaw, Mayor
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