PRESENT: Council members Newton, Hawkins, and Snedden were present.   

STAFF PRESENT: City Treasurer Shannon Syth, City Attorney Will Herrington, Parks and Recreation Director Kim Woodruff, Police Chief Mark Lockwood, Planning Director Jeremy Grimm, Mayor Hellar and City Clerk Maree Peck

OTHERS PRESENT:  Jennifer Wood, Rae Ann Mavity, Kathleen Hyde, Luwanna Hiebert, Bob Camp, Tammy Mortensen, Lisa Morosa, John Hunt, Nathan Wood, Marc Delavergne, Fred Darnell, Chris Reinhart, Pierre Bordenave, Jackie Garner, George Rickert, Chris Gooley, Shawn Ramsey, Dan Taylor, John Reuter, Bob and Liz Hawn

OLD BUSINESS

FARMERS MARKET USE AT FARMIN PARK AND JEFF JONES SQUARE
Councilwoman Newton stated she had discussed revisions in the agreement with Ms. Woods and Ms. Mavity and said they had agreed on the few unresolved issues. Jennifer Wood, President of the Farmers Market, stated that she met with the DSBA and Police Chief as instructed at the March Administrative Committee meeting.    She stated that she mentioned at last month’s meeting that the market wanted to sell cooked and frozen meat as long as vendors acquire the proper permit from the Panhandle Health District.  She stated she received a letter of support from the Panhandle Health District to sell cooked meats as well. Rae Ann Mavity, Manager of Farmers Market, viewed the meat vendors at the market as local businesses and didn’t feel they would be in competition with downtown businesses.  She pointed out that they will only be selling a few hours per week.   She noted there are different FDA guidelines for cooked meat versus frozen meats.  

Kathleen Hyde noted that she spoke with downtown restaurants who were opposed and concerned about meat sold at the market due to downtown lunch competition.  She asked how many vendors would be selling meat.  Rae Ann Mavity explained that the farmers would have precedent.  Jennifer Wood clarified there will be food sales and samples of meat available.  

Luwanna Hiebert stated she has sold her farm eggs at the market for the past two years and has given samples of her farm raised chicken and beef, but has not sold meals.  Nathan Wood noted that baked goods have been sold at the farmers market with no concern of competition.  Tammy Mortenson, board member of the Farmers Market, stated there are two types of food vendors; farmers and those who produce food.  She said that vendors grow their products in and adjacent to Bonner County.  She noted that there is limited space for additional vendors.  

Councilman Hawkins didn’t feel that government should interfere with competition.  Councilwoman Newton read the proposed revision to section 2 of the agreement which states that meat being sold must be in a frozen state and kept in powered refrigeration units approved by Panhandle Health District with no coolers allowed, based on the first letter from Panhandle Health District.  City Attorney Will Herrington advised Section 8 of the agreement, Observance of Laws and Regulations, should also refer to the Panhandle Health District.  Councilman Snedden felt hesitant to decide what can or can not be sold but to allow baked goods.  He suggested experimenting with selling cooked and frozen meat at the market this year to see if any problems arise.  He felt the market brings business downtown and felt it was fine to sell meat.  

Councilwoman Newton then proposed that the deletion of the word “meat” in Section 2 would be the only necessary revision in that section to achieve the desired result.  Councilman Hawkins raised concern that the Panhandle Health District should be referred in Section 8 as advised by the city attorney.  Will Herrington suggested that he review the revisions before next week’s council meeting and to make alterations as necessary.  

Councilwoman Newton reviewed proposed revisions on Section 4, Location of Booths.  It was noted that farmers market and the committee mutually agree that the booths at the park shall be increased to a maximum of 45 permanent spaces and 5 flex spaces which would be used only during special events and peak season, to require spacing of at least 4 feet between each vendor for public safety access, and to meet ADA regulations.  Rae Ann Mavity reviewed a new farmer’s market map that demonstrated egress and ingress areas through the park.  She noted they would slide tables together based on heaves on the ground.  She said that all areas of the market will be accessible with the exception of at least one area due to tree roots.  

Councilman Hawkins had concerns with accessibility.  Councilwoman Newton noted that the proposed map would be attached to the agreement for reference.   Parks and Recreation Director Kim Woodruff said he would be more comfortable with specific measurements and that a good compromise could be met.  Police Chief Mark Lockwood raised concern with access for EMS and fire.  Will Herrington suggested they could have two booths together but to have access around the outside of the tables.  He said they could try this booth arrangement for this year to see how it works.  Councilwoman Newton suggested adding the language in the agreement “with spaces between at least every other vendor”.  She raised concern with limited ability in some of the areas. Rae Ann Mavity said animals in the park also create a safety concern.    She reassured the city that vendors would be kept apart.  Councilman Snedden suggested having a minimum of 4 feet spacing.  Councilwoman Newton suggested setting limitations for spacing of booths and that the market needs to discuss this issue with Kim Woodruff before the city council meeting.

Lisa Morosa, who serves on the board of the Farmers Market, stated they have not had problems with access in the past with the center sidewalk as being the primary access to the market.  Councilwoman Newton said that pubic safety concerns need to be considered.  Councilman Hawkins suggested these issues be amended before next week’s city council meeting.  Councilwoman Newton suggested that the Parks and Recreation Director, Police Chief, and City Attorney coordinate to reach the goals for accessibility, that location of booths to be limited to the north side of the park and to make sure there’s clear access to the public restrooms.  

RECOMMENDATION:  That the agreement with the amendments discussed be reviewed and approved at the full council at the April 16, 2008 city council meeting.

NEW BUSINESS

1. LION’S CLUB 4TH OF JULY AT CITY BEACH AGREEMENT
Councilwoman Newton commented that she appreciated the annual Lion’s Club event and noted its importance to the community.  Parks and Recreation Director Kim Woodruff noted the only revisions were on Section 15 of the agreement to add “concessionaires”.  He noted the liability insurance amount has been increased from $500,000 to $1,000,000.  He also
reviewed the parking map that will be attached to the agreement.  John Hunt noted that he will coordinate with the Police Chief and Fire Chief by the first of June.

RECOMMENDATION TO CONSENT CALENDAR:   That city council approve the proposed Lion’s Club 4th of July at City Beach Agreement with amendments and the mayor and city clerk be authorized to sign the agreement.

2. FARMIN PARK BANDSTAND SHELL DEMOLITION AND REMOVAL
Parks and Recreation Director Kim Woodruff noted that the bandstand roof located in Farmin Park sustained structural damage this winter due to a combination of snow load and dry rot.  He said Wildwood Eccentrics, LLC specializes in recycling materials.  The roof will be removed but the stage and roof support will be retained for the present with musicians having the capability of using the bandstand this summer.  City Attorney Will Herrington advised that he will review the agreement in order to protect the bricks.  Kim Woodruff reassured the committee that the city staff inspects their buildings on a regular basis for structural soundness.  He noted that insurance coverage excludes dry rot but covers a percentage for snow load damage.  He commended his parks department crew for their timely and prompt attention to snow loads on all city buildings this winter.  
RECOMMENDATION TO CONSENT CALENDAR:  That city council approve the proposed Independent Contractor Agreement with Wildwood Eccentrics, LLC subject to the city attorney’s review and to authorize the mayor and city clerk to sign the agreement.  

3. KAYAK DEMO DAY AT CITY BEACH AGREEMENT
Public Works Director Kim Woodruff noted that this event was bound by a contract because the kayaks are available for sale which classifies this as a commercial event.  $300 is donated from the event organizers for consideration to be placed in the Parks Improvement Fund and utilized toward capital improvement projects.  Councilwoman Newton suggested revising Section 8, Amplified Music/Sound, to “The Vendors are not permitted amplified sound and or music in the “park”, based on Councilman Snedden’s concern.  Mark Delavergne from Outdoor Experience stated they don’t sell boats at the beach.  He clarified they demonstrate how to use the boats and educate participants regarding safety on the water.  He said potential sales are done at the respective stores.  Kim Woodruff explained that commercial activity allows them to sell the boats at the beach if they choose.  
RECOMMENDATION TO CONSENT CALENDAR:  That city council approve the proposed Kayak Demo Day at City Beach Agreement with the amendment and to authorize the mayor and city clerk to sign the agreement.  

CITY HALL CURB AND SIDEWALK
Parks and Recreation Director Kim Woodruff stated the city has an opportunity to comply with the streetscape ordinance for curbs and sidewalks.  He asked for budget authority for funding this project by utilizing $5,000 originally earmarked for Gem Implementation (capital project #8054) and up to $10,000 from the sidewalk project 2008 (capital project, #8016).  Police Chief Mark Lockwood said curb and gutter installation on Olive Avenue will force police vehicles to park elsewhere near City Hall.  Fred Darnell commented that the mandatory streetscape ordinance is a waste of money and felt the city should revise the ordinance.  He felt that people most generally don’t use sidewalks.  Councilwoman Newton stated that the ordinance previously required sidewalk improvements with $15,000 in building improvements but was recently revised to $25,000.  She noted that the cost of remodeling the City Hall second floor will be over $25,000.  She felt it necessary that the City comply with their own ordinance.  Councilman Hawkins felt it would be discriminatory to exclude city property and was not ready to exclude the requirement for sidewalks.  
RECOMMENDATION:  That the full city council discuss this matter for clarity.  
RECOMMENDATION TO CONSENT CALENDAR:  That city council approve the proposed transfer of funds to comply with the city’s streetscape ordinance.   

DOWNTOWN PARKING
Councilwoman Newton proposed to amend city code making “shuffling” illegal.  She referred to the minutes of the March 31, 2008 city council workshop where Councilwoman Logan stressed the need for a creative parking solution and suggested the city council address “shuffling”, explore software capability, and to review the parking code.  The minutes also demonstrated that Councilman Boge and Lockwood had concerns with parking.  According to the minutes Mayor Hellar suggested that city council review parking regulations for new businesses, sign ordinance, and a shuffling ordinance.  Councilwoman Newton suggested rescheduling this matter for further discussion at the October 2008 Administrative Committee based on the fact that the new equipment has not been in use for one full year and the recommendation of the Police Chief.  She asked the Police Chief to continue to collect the data during ensuing months that the council will need to make a decision related to whether or not we should or can regulate “shuffling”.  

Kathleen Hyde stated that the DSBA strongly supports a solution to parking problems as their first priority.  Chris Reinhart suggested educating businesses to work with the City for solutions.  He also suggested setting different time limits for parking in different areas.  Councilwoman Newton questioned whether two hours parking was enough time for limited parking.  Pierre Bordenave noted there is no parking enforcement at night, that the day time hours are primarily the issue.  Fred Darnell suggested publishing names in the newspaper of people who shuffle their cars.  Councilman Snedden responded that he wouldn’t support that action because at this point with no ordinance in place, no laws are being broken.  Mayor Hellar pointed out she would be providing a memo to the city council for appointments to the Panhandle State Bank parking committee for the city parking lot as required in the 2007 Memorandum of Understanding with PSB.  Will Herrington suggested that the DSBA parking committee work on this issue.   Pierre Bordenave, Chair of the DSBA parking committee, stated there are also pedestrian and safety issues that tie in.  He urged the public’s participation at their parking committee meetings.  
FOR INFORMATION ONLY:  It was the consensus of the committee that this matter be postponed for further review at the October Administrative Committee meeting.

SIDEWALK LOCAL IMPROVEMENT DISTRICTS
Councilwoman Newton proposed to amend the existing ordinance to allow property owners to vote on proposed LIDs to construct new sidewalks in residential zones.  She referred to House Bill 577 from the 2008 Idaho legislative session which would have amended the existing law to provide that no bonds, registered warrants or interim warrants may be issued unless such issuance were approved by 66 2/3% or more of the registered voters within a LID.    She noted that the bill passed the House of Representatives 45 to 26 but failed in Senate committee.  She felt that 66 2/3% was too high and suggested that a simple majority could be required.  City Attorney Will Herrington felt this would tie the hands of the present and future city councils.  He noted that public hearings for local improvement districts allow the property owner’s input.  He pointed out the city council is elected to make decisions and questioned whether residents would vote on every issue.  He stated he had not conducted research on the consistency with State Code.  He noted that city council could repeal an amended ordinance in the future.  He felt that an LID should pass or not pass by city council vote.  

Councilwoman Newton read her proposed language for votes required to approve an LID.  
Councilman Hawkins asked whether it should read property owners instead of registered voters.  Fred Darnell felt that it would be appropriate that property owners vote on the issue.    Chris Reinhart felt that city council should set priorities for property owners and look at outside funding for sidewalk installation.  Jackie Garner felt the property owners should vote.  George Rickert stressed that he was dismayed with the requirement of sidewalk replacements and felt his sidewalk didn’t need to be replaced.  He felt it was gross negligence on the city’s part to replace his sidewalk.  Chris Gooley referred to the letter she received from the city requiring her to install her sidewalk.  She felt the city should reimburse her at least 50% for the cost she expended for her sidewalk improvements.  Chris Reinhart stressed there must be an equitable solution.  He said the letter clearly states that the LID is planned with a threatening tone to the letter.  He pointed out that he had a huge financial strain by installing his sidewalk as was required and felt it was the city’s obligation to continue with the LID.  

Councilman Hawkins commented sidewalks need connectivity and questioned whether neighbors should impose sidewalks on other neighbors.  Councilman Snedden felt that property owners needed direct representation and felt it was council’s responsibility to make the decisions because they are elected to make decisions.  He stressed that he wouldn’t support the proposed amended ordinance.
RECOMMENDATION:  Councilwoman Newton moved that this matter go to full council on April 16, 2008 city council meeting for discussion.  Council members Snedden and Hawkins opposed.

LID 2008-1 – SIDEWALK REPLACEMENT
Chris Gooley noted she paid for sidewalk improvements based on the letter she received from the city.  Chris Reinhart said he replaced the sidewalk himself because it was going to be less expensive than if the City installed the sidewalk.  He suggested that if city council was not going to proceed with the LID that the city reimburse him for the materials.  

Jackie Garner stated she installed her sidewalk as well due to the letter from the city and questioned why she was required to install her sidewalk so quickly.  Fred Darnell felt the city should reimburse those property owners who already installed their sidewalks and to allow them to make the choice to replace their sidewalks.  Shawn Ramsey stressed that it was not necessary to force property owners to install their sidewalks.  He was angry that the city council will not proceed with the LID.  He felt the City should either go forward with the LID or refund the cost to those property owners who installed their sidewalks.  

Councilman Hawkins noted that several property owners installed their sidewalks and felt it was the city’s responsibility to go forward with the LID or reimburse those who acted upon the letter.   He said he voted for the LID for that specific reason.  

Councilman Snedden admitted the letter was flawed and should not have been sent to the property owners before the LID was adopted.  He felt the property owners acted in good faith.  He said he also approved the LID for this reason.  He also felt the LID should have the least amount of financial burden on the property owners.  He said however that the matter was
thoroughly examined and the city council made their final decision that included several amendments.  He did not support moving this matter to city council nor to reimburse the property owners.  He said he wouldn’t support revisiting this issue.  

Councilwoman Newton agreed that the letter shouldn’t have been sent.  She pointed out that the letter has tentative language that doesn’t make it clear that property owners were required to install their sidewalks.  She stressed that she did not support this LID or the previous LID because of the costs imposed on property owners.  She hoped that property owners would see a benefit from their sidewalk improvements and would benefit when they sell their property.  She said she could not support the LID nor support reimbursement to those who already installed their sidewalks.  She stated that it was an unfortunate consequence.  She suggested that property owners receiving such letters from the city should contact the mayor or city council.  

Bob Camp pointed out that sidewalks are owned by the City but the city had forced the cost onto the property owners.  He felt the City should exhibit good faith and reimburse the property owners, possibly reimbursing at 50% and to investigate the funding for reimbursement.  

Chris Reinhart stressed that city council was responsible for sending out the letter.  He threatened filing a class action suit.  Councilwoman Newton responded that she had complained to the mayor in an effort to stop the letter and didn’t feel city council was responsible for the letter.  She explained that the matter would go to the April 16, 2008 council meeting but would not be a public hearing.  She explained to the public that their one opportunity to address the issue would be to speak at the very beginning of the meeting during the public forum portion.  She encouraged those present to prepare their remarks in advance as they would be limited to 3 minutes at the council meeting.
RECOMMENDATION: Councilman Hawkins moved to reimburse those property owners who acted upon the letter and installed their sidewalks for 2008-1 LID.  Both Councilwoman Newton and Councilman Snedden opposed.  They suggested that the full city council should review this matter.  

4. INSURANCE RENEWALS
Dan Taylor of Taylor Insurance, reviewed health, dental, and life insurance options for Blue Cross and Regence BlueShield.  He explained the current network is the Traditional Network is the largest network Regence offers and the City of Sandpoint is grandfathered in.  He said he negotiated an option to have a refund endorsement, which could allow the City of Sandpoint to receive monies back at the end of the contract year if claims are low.  He noted that the City of Sandpoint currently has one of the best prescription benefits offered.  He pointed out that their agency charges the City only1.5% to keep the fees lower.  The proposal still offers a $15 co-pay for the wellness program and an employee assistance program with up to eight sessions per incident.  He compared the rate history from 2001 to 2007 with a 7% average.  He pointed out that after negotiations; Taylor Insurance has lowered the renewed increase down to 7.2% from 9.9%.  He stated that the traditional contract is a bigger network than what a PPO offers.  He explained that the City needs to stay within the contract for the next seven months in order to receive a refund.  

He said that Delta Dental is offering a renewal of 5.1% increase which is down from 7% during negotiations.  He pointed out that the employee association was concerned with the tier program in the current program and noted that the renewal program offers a five tier program for
employee premiums.  

He explained that Regence Life and Health is proposing a zero increase for the upcoming contract but that Taylor Insurance has received competitive quotes from Standard Life Insurance Company.  He pointed out that by moving to Standard Life, it could potentially save the city approximately $4,200 per year with a two year rate guarantee.

He recommended retaining Rehn and Associates as the COBRA administrators with a 2% administration fee which is a charge of $22.00 per employee.  Councilman Snedden asked how the employee assistance program is utilized and suggested lowering the number of annual visits.  He stated that he currently could not approve the insurance options as discussed without further examination.  Councilwoman Newton strongly urged Councilman Snedden to visit with Mr. Taylor with his questions and concerns before the council meeting.  
RECOMMENDATION TO CONSENT CALENDAR:  Councilwoman Newton moved that City Council renew the contract with Regence BlueShield with the traditional network at a 7.2% increase, renew the contract with Delta Dental for the five tiered program with a 5.1% increase, continue with the Regence Life and Health for life insurance maintaining the current benefits with a zero increase, and renew the contract with Rehn and Associates as COBRA Administrators with a fee of $22.00 per notification effective July 2008.  Councilman Hawkins voted in favor.  Councilman Snedden abstained.

LOCAL PURCHASING POLICY
Councilwoman Newton referred to Resolution No. 07-14 that adopted contracting guidelines with a footnote that in-town quotes within 10% of low quote gets the bid.  She said she reviewed a vendor list supplied by the City Treasurer with the first 275 vendors reflecting that only 24% of the vendors are in Sandpoint.  She read her proposed Local Purchasing Policy resolution that purchases shall be made locally with the exceptions when a savings of 10% or more is realized by purchasing outside the local area and when such savings takes into account the purchase price, the wages and benefits of the person for the time taken to make the purchase and, when applicable, the cost of the use of any city vehicle used to make the purchase and such savings are documented and attached to the purchase invoice and approved by the department head or mayor.  

Pierre Bordenave commented that he could see a positive benefit that the city utilize tax dollars in an efficient manner.  He said he was a strong believer in buying locally but noted that local merchants purchase their products from outside sources including the Internet.  He encouraged the committee to make it a requirement that the City makes every effort to get prices from local businesses from within the City of Sandpoint if this proposed policy is adopted.  He said it was important that Sandpoint businesses have the city’s support.  

Mayor Hellar felt the proposed policy could be considered a competitive disadvantage for in town businesses and she couldn’t see the justification for a preference system.  She didn’t see any rationale for the proposal.  Councilman Snedden asked who will administer the proposal to make sure there are attachments to invoices.  Councilwoman Newton replied that it would be the department head’s responsibility.  Councilman Hawkins felt it would be logical for a tiered system and to have a clear definition of where “local” was.  He noted that all cities in Bonner County have an impact with the City of Sandpoint.  He felt it would be best to purchase in Sandpoint, and secondarily throughout Bonner County.  Councilman Snedden noted that contract guidelines are already in place for the bidding process.  He felt that staff would have difficulty on calculating a 10% savings for all costs and preferred that the policy be restricted to Sandpoint.  He said he supported a preference of 10% but that it not be required.  

City Treasurer Shannon Syth suggested that the City would need a purchasing agent to find the best buys and revolve purchase orders for the future to implement the policy.   She expressed concern with the time involved to prove the savings when purchasing.   

Police Chief Mark Lockwood said he had several concerns with the proposed purchasing policy.  He pointed out that he has a bid list that he sends out to local businesses as well as those in Bonner and Kootenai counties and he purchases off that bid list.  He pointed out a savings of $26 per case for paper from businesses outside Sandpoint. He stated that no one in Bonner or Kootenai counties supplies the ammunition his department uses.  He felt that if this policy is adopted, that department heads need to add money to their budgets in order to purchase everything locally.  He stated it was his fiduciary duty to save dollars and he raised concern about the time it would take to calculate the savings.  He said there should be consideration for efficiency as well.  

City Attorney Will Herrington noted that all department heads try to get the best value for taxpayer’s dollars.  He stressed that city council shouldn’t be critical and should not impose bureaucracy.  He noted that it is just as important to consider quality of the product.  He said that department heads strive to buy locally.  

Councilman Hawkins suggested to simply add to the current guidelines to buy locally.  He said the financial impact should be considered if dollars are not circulated within the community.  He said to also consider the cost beyond the fiscal costs.  Councilman Snedden suggested that a support letter be sent to department heads from city council.  
RECOMMENDATION:  Councilwoman Newton moved to send this matter to full council at the April 16, 2008 city council meeting for discussion and said she would simplify the resolution.  Councilman Hawkins voted in favor.  Councilman Snedden dissented.  

5. BILL PAYING RESOLUTION
City Treasurer Shannon Syth requested approval of the proposed bill paying resolution in order to clarify pre-authorization of certain bills to avoid late fees, provide training, issue refunds in a timely manner and to issue payroll.  A revision was made in the second paragraph of the resolution: “Certain contracts requiring payment prior to the monthly council meeting”.
RECOMMENDATION TO CONSENT CALENDAR: That city council approve and adopt the proposed Bill Paying Resolution.

6. CEDAR STREET LID 30-CLOSE OUT
City Treasurer Shannon Syth noted that the LID 30 has been closed out for two years and requested the transfer of the cash balance from the closed out Cedar Street LID to the general fund.  She pointed out that the city charges 1% administration fee to all property owners per Idaho Code and that the revenue is generally not transferred on an annual basis in case the funds are needed to pay a bond payment.
RECOMMENDATION TO CONSENT CALENDAR: That city council authorize to transfer the cash balance of $6,048.54 from the closed out Cedar Street LID 30 Fund 63 to the general fund.  

7. SOUTH DIVISION LID 31 – CLOSE OUT
City Treasurer Shannon Syth requested transfer of the balance from the closed out S. Division LID to the City’s LID guarantee fund and the balance to the general fund.  She explained that the request to close out this fund and the Cedar Street LID 30 close out is allowed according to Idaho Code 50-1014.  
RECOMMENDATION TO CONSENT CALENDAR: That city council authorize to transfer the cash balance in the amount of $44,509.26 from the closed out South Division Street LID 31 Fund 64 in the following manner:  $17,163.40 to the City’s LID Guarantee Fund 61 to increase the guarantee fund to an amount required by the bonding process for the City’s new LID 2006-01 bond issuance for the Boyer and Cedar sidewalks and the Oak Street LID with the balance of $27,345.86 to the general fund.

The meeting adjourned at 8:47 p.m.

_______________________________
Maree Peck, City Clerk