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CITY OF CITY OF POCATELLO, IDAHO CITY COUNCIL CITY COUNCIL WORK SESSION SEPTEMBER 10, 2026 AGENDA ITEM NO. | 1: ROLL CALL Mayor Mark Dahlquist called the City Council Work Session to order at 9:00 a.m. Council members present were Dakota Bates, Corey Mangum, Hayden Paulsen, Stacy Satterfield and Ann Swanson. Council member Brent Nichols was excused. AGENDA ITEM NO. 2: HISTORIC PRESERVATION COMMISSION UPDATE Marty Viscarra, Historic Preservation Commission (HPC) Chair, reported on recent accomplishments, including completion of a survey of approximately 200 buildings and properties associated with the Certified Local Government program and efforts related to determining eligibility for the National Register of Historic Places. The Commission has also continued design reviews within the local historic district and administered Certificates of Appropriateness. HPC members are working with a consultant on projects supported by grant funding, including efforts to update information associated with the Downtown National Register District. Additional long-term projects under consideration include historic markers and plaques, walking tours, educational materials and partnerships with local schools to incorporate Pocatello history and historic preservation into educational programs. Mr. Viscarra discussed the Commission's interest in preserving the City's broader municipal history, including stories and historical information that are not necessarily associated with individual structures. He noted that historical information is currently fragmented among various organizations and individuals and expressed interest in developing a more coordinated effort to collect, preserve and share that information. Council members discussed the possibility of establishing a position dedicated to local history or incorporating historical responsibilities into an existing City position. Potential partnerships with Idaho State University (ISU) and the ISU Library were discussed. Mr. Viscarra noted that such a position could involve research, reviewing historical records and maps, documenting stories and interpreting historical information for public use. Council Member Mangum suggested that Human Resources review potential job responsibilities and associated compensation to determine whether such a position could be incorporated into an existing position or created as a new position. Mayor Dahlquist suggested exploring whether historical responsibilities could be combined with an existing position. Council members discussed the boundaries of the local historic district and the distinction between the National Register of Historic Places and the local historic district. Jim Anglesey, Long-range Planner, explained that properties being listed on the National Register does not automatically place them within the City's local historic district and that Certificates of Appropriateness apply to properties within the local district. CITY COUNCIL WORK SESSION 2 SEPTEMBER 10, 2026 In response to a question from Council regarding the number of Certificates of Appropriateness that have been denied, Mr. Anglesey indicated that very few have been denied and that the Commission has worked to provide greater clarity regarding design standards and appropriateness. In response to Council discussion regarding potential expansion of historic district boundaries, Mr. Anglesey noted that approximately 200 properties are associated with the National Register, while the boundaries of the local historic district do not align with the National Register boundaries. Any expansion of the local district would require further consideration of the applicable process and protections. Council members discussed improvements to the historic district entrance sign near Center Street and discussed the possibility of coordinating with downtown organizations and establishing a mechanism for donations dedicated to historic plaques, signage or related improvements. Mr. Anglesey indicated that the project is not currently included in the City's budget but that grant funding, partnerships, donations or other resources could potentially be pursued. Staff will review the applicable ordinance and report back regarding available options. AGENDA ITEM NO. _ 3: PLANNING AND ZONING COMMISSION UPDATE Becky Babb, Planning Manager, and Rich Phillips, Planning and Zoning Commission Chair, provided an update regarding the Commission's activities, applications, training and workload. Mr. Phillips reported that the Planning and Zoning Commission processed approximately one and one-half times the number of matters handled during the previous year. The Commission has also participated in training regarding the City's zoning ordinance, its authority, public hearing procedures and the types of applications and issues within its purview. Mr. Phillips discussed the Commission's role in reviewing zoning applications, annexations, traffic and related studies and ordinance matters. He noted that the Commission has also been involved in the ongoing review and update of the City's zoning code. Ms. Babb thanked the Commission members for their work and noted that the number of contested agenda items has increased. She recognized that Commission members are volunteers who are required to make difficult decisions based upon the City's ordinances and applicable criteria. She also noted the Commission's continued efforts to improve its understanding of the City's regulations and responsibilities. Council members discussed annexation procedures and the Commission's role in reviewing annexation requests. Mr. Phillips explained that the Commission considers factors including public input, future land use, the Comprehensive Plan and applicable zoning regulations before making a recommendation or decision within its authority. Council members discussed public notification and communication regarding Planning and Zoning matters. Council Members expressed concern that residents sometimes become aware of development proposals only after a matter directly affects their neighborhood. CITY COUNCIL WORK SESSION 3 SEPTEMBER 10, 2026 Ms. Babb explained that the City follows the statutory notification requirements and has implemented additional notification measures where appropriate. She noted that preliminary plats, for example, receive additional notification even though such matters are not required by state law to receive the same public hearing notification. Planning and Zoning agendas are also available through the City's notification system, allowing residents to receive email or text notifications when agendas are posted. Council members discussed whether additional communication methods, including neighborhood associations and other outreach tools, could improve public awareness. Ms. Babb indicated that information is also forwarded to the Public Information Officer for additional public communication when appropriate. She emphasized that the City has a robust notification process and that residents may subscribe to Planning and Zoning notifications to receive information directly. Council members recognized the importance of public education regarding City processes, zoning regulations and the role of the Planning and Zoning Commission. AGENDAITEMNO. 4: WPC COLLECTIONS SYSTEM MASTER PLAN UPDATE Levi Adams, Water Pollution Control Superintendent, and Brad Mercure, P.E., of Consor, provided an update on the Water Pollution Control (WPC) Collection System Master Plan. Mr. Mercure reviewed the purpose and scope of the plan, which evaluates the City's wastewater collection system, existing conditions and capacity, anticipated growth and improvements needed over the next 20 years. The plan updates the City's previous collection system plan and subsequent amendments associated with Northgate development. Mr. Mercure reported that the collection system currently serves approximately 60,000 people and includes approximately 250 miles of pipeline and multiple wastewater lift stations. The plan evaluated current capacity and system conditions and projected future growth patterns. Mr. Adams reported that the collection system is generally in good condition and that no significant capacity deficiencies were identified in the City's gravity mains. Growth is expected to be the primary driver for future capacity improvements. Two lift stations were identified as having capacity constraints: the McKinley Lift Station, with a projected future constraint and the Indian Hills Lift Station, which is currently being improved. Council members discussed future growth projections, including development in the Northgate area, potential infill development, the Johnny Creek area and potential future service areas. Mr. Adams explained that the Northgate area represents a significant concentrated area of anticipated growth and that existing infrastructure has been designed with additional capacity in several areas. In response to Council discussion regarding potential wastewater service through the City of Chubbuck, Mr. Adams explained that several options have been evaluated for providing future service to the Northgate area, including routing through existing infrastructure and potential coordination with Chubbuck. He indicated that the technical aspects could be addressed through CITY COUNCIL WORK SESSION 4 SEPTEMBER 10, 2026 appropriate infrastructure and flow monitoring, while an agreement between the two cities would be necessary to address the operational and financial aspects. Council members discussed the potential timing of future Northgate improvements and agreed that early coordination with Chubbuck would be beneficial. Mr. Adams noted that the City's existing Memorandum of Understanding with Chubbuck is scheduled for consideration in the future. Mr. Mercure reviewed potential collection system improvements, including improvements to the Indian Hills force main and lift station, the McKinley Lift Station, future gravity main improvements and eventual lift station replacements. Additional recommendations include continued CCTV inspections, annual pipeline rehabilitation funding, permanent influent flow monitoring and periodic updates to the Collection System Master Plan. The estimated cost of recommended collection system improvements was presented at approximately $49.25 million during the first 10 years and approximately $25 million during the following 10 years, with additional projects identified for implementation prior to 2045. Council members discussed the relationship between future development at the Pocatello Regional Airport and wastewater system capacity. Mr. Adams indicated that the existing system has capacity for current anticipated airport development, although significant industrial development would require evaluation of the associated wastewater flows and infrastructure needs. Council members discussed the potential extension of sewer service to the Johnny Creek area and the possibility of providing residents with a limited period to connect to the system before requiring individual property owners to bear the full connection costs. Mr. Adams noted that City ordinance generally requires properties within 300 feet of a sewer system to connect, subject to applicable provisions and potential waivers. Mayor Dahlquist expressed support for exploring options that would encourage connection of Johnny Creek properties to the new sewer system and directed staff to bring the matter back to Council with potential options for consideration. In response to Council discussion regarding funding for the Collection System Master Plan recommendations, Mr. Adams explained that the City could continue making incremental wastewater rate increases to fund capital improvements and maintain the system. Larger projects could require additional financing, such as bonds or loans. Council members emphasized the importance of maintaining proactive rehabilitation and replacement programs to extend the useful life of the collection system. Mr. Mercure reported that the existing collection system is generally in good condition and that future improvements are primarily driven by anticipated growth rather than widespread deficiencies. CITY COUNCIL WORK SESSION 5 SEPTEMBER 10, 2026 AGENDAITEM NO. _ 5: PROPOSED SEPTEMBER FISCAL YEAR 2026 BUDGET AMENDMENTS Chantelle Macy, Budget Manager, presented the proposed final Fiscal Year 2026 budget amendments. Ms. Macy explained that the proposed amendments are intended to adjust the budget for changes in revenues and operational needs while maintaining Council approval of the City's budget authority. Seven amendments had been posted for consideration, which was fewer than the previous year. A public hearing and adoption of the amendments were scheduled to be held at the September 17, 2026 Regular City Council meeting. Council members discussed an approximately $480,000 increase in Fleet Services expenditures. Tom Kirkman, Public Works Director and Teresa Caudill, Fleet Manager, provided additional information regarding the increase. Mr. Kirkman stated a significant portion of the increase is related to police vehicle upfitting, including approximately $300,000 associated with outfitting four police vehicles over two years. Ms. Caudill explained that Fleet Services has experienced increased utilization of its parts purchasing operation. City departments are purchasing a broader range of supplies and parts through the City's centralized purchasing arrangement, resulting in costs being charged through Fleet Services and then allocated to the appropriate departments. Council members discussed whether the centralized purchasing arrangement should continue to include non-fleet-related purchases and whether another City purchasing mechanism would be more appropriate. Mr. Kirkman indicated that the centralized arrangement can provide cost and efficiency benefits but agreed that the increased use and associated costs warrant further review. Ms. Caudill indicated that the matter would be discussed in greater detail during a future Work Session. Mayor Dahlquist thanked staff for the information and noted that the Council would continue its discussion regarding Fleet Services and the associated purchasing practices at a future Work Session. Mayor Dahlquist called a recess at 10:35 a.m. Mayor Dahlquist reconvened the meeting at 10:44 a.m. AGENDAITEMNO. 6: 429 WASHINGTON AVENUE PROJECT UPDATE AND NEXT STEPS Christine Howe, Grants Manager, and Brent McLane, Planning and Development Services Director, provided an update regarding the City's property at 429 Washington Avenue and discussed potential next steps for the property. Ms. Howe reported that the asbestos abatement contract had been completed and that environmental and hazardous material mitigation work had been performed. CITY COUNCIL WORK SESSION 6 SEPTEMBER 10, 2026 Council members discussed potential future uses and disposition of the property, expressing interest in evaluating whether the property could be retained, at least in part, as a community facility that would preserve its historical connection to the Alameda neighborhood. The possibility of retaining the original portion of the building while removing a later addition was discussed. Mr. McLane explained that the building has undergone numerous renovations and that retaining portions of the original structure could present significant structural, environmental, building- code, parking and accessibility challenges. Although major environmental hazards had been addressed, lead paint and other issues remain. Council members discussed the property's suitability as a community gathering space and the potential cost of rehabilitating the building compared with its value and potential benefit to the City. Several Council members expressed concern that significant City investment would be required to make the building usable and that other City priorities may provide greater public benefit. Mr. McLane explained that the building was originally designed as a residential structure and does not contain a large assembly space. Converting the property for public assembly use would create additional building, egress, parking and other code requirements. Council members discussed retaining historical elements, particularly the existing flagpole. The adjacent property and the potential to incorporate the flagpole into City-owned property associated with Bright Tomorrows were discussed. The possibility of selling or leasing the property was considered. Discussion followed regarding the potential for a facade easement or other mechanism to preserve architectural characteristics. Ms. Howe explained that various options for disposition would need to be reviewed with the Legal Department, including whether restrictions or preservation requirements could be included in a sale or whether such requirements would be more appropriately addressed through a lease or other agreement. Legal review would be necessary to determine what restrictions could appropriately be placed on the property. Marjanna Hulet, representing the Alameda Neighborhood Association, provided comments regarding the neighborhood's interest in retaining the building as a historic resource and potential community meeting space. She noted that the building is the last remaining structure associated with the original Alameda village and that the neighborhood has a need for smaller meeting spaces for community organizations, clubs, educational programs and other activities. Council members discussed the potential costs and responsibilities associated with leasing the property. The experience with the Senior Center and other City-owned facilities was discussed, including the need to identify responsibility for maintenance, scheduling, utilities and building operations. Council members generally agreed that additional information regarding the potential disposition options would be useful. The options discussed included selling the property as-is with appropriate preservation-related stipulations, leasing the property or pursuing other disposition alternatives. Demolition was discussed but was not identified as the preferred option at this time. Council members expressed a preference to explore sale of the property with appropriate protections rather than continue indefinitely with the property in its current condition. Staff was directed to work with the Legal Department, the Alameda CITY COUNCIL WORK SESSION 7 SEPTEMBER 10, 2026 Neighborhood Association and the Historic Preservation Commission to identify potential stipulations and preservation considerations. Staff will also gather additional community input and return with information regarding potential disposition options, associated costs, preservation of the facade and flagpole and any applicable legal requirements. AGENDAITEMNO. 7: FORE GOLF CONTRACT WAIVER REQUEST Greg Allbright and Jerold Myler, Fore Golf, presented a request concerning the operating expense provisions of the City's golf concession agreement. Mr. Allbright provided background on the City's relationship with Fore Golf and explained that the golf operations have been managed through a long-term concession agreement. The agreement was renegotiated beginning with the 2019 golf season to establish a market-based revenue arrangement while maintaining City revenue and allowing Fore Golf to operate and maintain the golf courses. Mr. Allbright reported that operating expenses have increased significantly due to labor, supplies, maintenance, irrigation system repairs and other costs. He noted that milder weather has resulted in earlier course openings and extended operating periods. Mr. Allbright requested that the City consider modifying the agreement's Consumer Price Index (CPI)-based operating expense limitation. The request was presented as a response to extraordinary circumstances and increased costs affecting golf operations. Anne Butler, Parks and Recreation Director, reviewed the financial provisions of the agreement and explained the current operating expense limits and the impact of the requested change. She discussed the financial implications for both Fore Golf and the City, including the effect on the City's share of golf revenues and the City's ability to fund future capital improvements. Council members discussed whether the agreement should be amended to provide additional flexibility for extraordinary circumstances, whether a percentage adjustment should be added to the CPI calculation or expenses associated with operating outside the normal March-through- October season should receive separate consideration. The possibility of extending the operating season provision was discussed. Ms. Butler suggested that if the golf courses operate for more than a specified number of days outside the contractual season, the agreement could provide an additional operating allowance based on the actual extended operating period. Council members discussed the increased costs associated with opening the courses during February and other periods outside the traditional golf season. They discussed the City's long- term interest in maintaining the golf facilities and the need to preserve funds for major capital projects, particularly the aging irrigation system. Mr. Allbright reported that significant expenditures have been incurred for irrigation system repairs and that the irrigation infrastructure is approaching the end of its useful life. He explained that opening the golf courses earlier than the typical season beginning in March requires additional labor, maintenance, supplies and other expenses, but also generates additional revenue. CITY COUNCIL WORK SESSION 8 SEPTEMBER 10, 2026 Council members discussed several potential approaches, including: e Maintaining the existing agreement without modification; e Increasing the allowable operating expense adjustment above the current CP! limitation; e Providing additional allowances for operations outside the contractual March-through- October season; and e Addressing extraordinary circumstances through a targeted amendment while maintaining the remaining terms of the existing agreement. City Attorney Jared Johnson advised the Council that the agreement contains provisions allowing renegotiation under extraordinary circumstances. He cautioned against routinely reopening the agreement and noted that any modification should be based upon circumstances that meet the contractual standard and should be structured to apply for the remainder of the agreement. Council members discussed the extraordinary weather conditions and extended operating season as potential factors supporting a limited modification. They emphasized the importance of maintaining a fair agreement for both the City and Fore Golf while protecting the City's ownership interests and future capital needs. Council members expressed general support for addressing costs associated with an extended operating season rather than broadly eliminating the existing operating expense limitation. They directed staff to develop options for a contract amendment addressing extended-season operations and associated allowable expenses. Discussion was held regarding responsibility for irrigation system repairs, including replacement of sprinkler heads and larger system components. Ms. Butler and Mr. Allbright outlined the distinction between routine maintenance and capital improvements under the existing agreement and Ms. Butler indicated further review would take place regarding the appropriate allocation of these costs. Mayor Dahlquist called a recess at 12:31 p.m. Mayor Dahlquist reconvened the meeting at 12:40 p.m. AGENDA ITEM NO. 8: DATA CENTER DEVELOPMENT REGULATIONS Brent McLane, Planning and Development Services Director, and Becky Babb, Planning Manager, presented information regarding potential regulations for data center development within the City. Ms. Babb explained that the purpose of the discussion was to obtain Council direction regarding whether the City should proceed with developing regulations addressing data centers. She stated that staff has been researching regulations adopted by other communities and participating in discussions with the County's data center task force, private-sector engineers and other stakeholders. Ms. Babb emphasized that data center technology is evolving rapidly and that the City does not currently possess all of the technical expertise necessary to develop comprehensive regulations internally. She recommended considering a qualified technical consultant who could assist with technical analysis, code development and public outreach. Council members discussed potential issues associated with data centers, including water consumption, electrical demand, noise, emissions, cooling systems, carbon impacts and other environmental considerations. CITY COUNCIL WORK SESSION 9 SEPTEMBER 10, 2026 Mr. McLane noted that several aspects of data center operations are already regulated by other agencies, including Idaho Power, the Public Utilities Commission and the Idaho Department of Environmental Quality (DEQ). Julie Burry, representing DEQ, provided information regarding potential wastewater, hazardous waste, air quality and underground storage tank considerations. Council members discussed the need to distinguish between matters already regulated by state or federal agencies and matters that could appropriately be addressed through local zoning and development regulations. Ms. Babb explained that potential local regulations could address issues such as appropriate locations, noise, site design, review procedures and the types of technology or infrastructure that may be appropriate within the City. She noted that the City's current code does not provide a specific development review mechanism for data centers. Council members discussed the importance of obtaining technical expertise from multiple sources, including private industry, academic institutions, public agencies and planning professionals. A robust public engagement process was identified as an important component of any future regulatory development. The possibility of working with Stanford University on a deliberative public engagement process was discussed. Mr. McLane noted that such a program could provide valuable community outreach but may not address the City's need for technical code-writing expertise. The use of a consultant through a Request for Qualifications (RFQ) process was also discussed. Council members discussed the potential cost of obtaining professional assistance and whether existing reserves could be used to fund the work and if a temporary moratorium would be appropriate. Mr. McLane noted that the existing professional services budget was primarily allocated to the Title 17 rewrite and that additional funding allocation may be necessary. He explained that a moratorium would have a limited duration and would not itself resolve the City's need to establish an appropriate regulatory framework. Council members discussed the possibility of community benefit agreements or other development-related provisions that could provide measurable benefits to the City and instructed staff to review applicable Idaho law and identify what provisions could legally be included in local regulations. Council members requested that they be provided an opportunity to review the proposed RFQ before it is issued and provided direction to proceed with development of an RFQ to obtain qualified professional assistance with technical analysis, regulatory development and public engagement related to data centers. AGENDA ITEM NO. _ 9: COUNCIL ADVISORY BOARD UPDATES Mayor Dahlquist announced that in the interest of time, Agenda Item No. 9 would not be addressed. CITY COUNCIL WORK SESSION 10 SEPTEMBER 10, 2026 AGENDA ITEM NO. 10: ADJOURN There being no further business, Mayor Dahlquist adjourned the meeting at 1:13 p.m. APPROVED: MARK DAHLQUIST, MAYOR PREPARED AND ATTESTED BY:
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