TREMONTON CITY CORPORATION
CITY COUNCIL MEETING

May 2, 2017

Members Present:
Diana Doutre
Lyle Holmgren
Jeff Reese
Bret Rohde
Lyle Vance
Roger Fridal, Mayor
Shawn Warnke, City Manager
Linsey Nessen, City Recorder (arrived at 6:56 p.m.)
Cynthia Nelson, Deputy Recorder (left at 7:38 p.m.)

Mayor Fridal called the May 2, 2017 City Council Workshop to order at 6:01 p.m. The meeting was held in the City Council Meeting Room at 102 South Tremont Street, Tremonton, Utah. Those in attendance were Mayor Fridal, Councilmembers Doutre, Holmgren, Reese, Rohde, and Vance, City Manager Warnke, and Deputy Recorder Nelson. The following Department Heads were also present: Parks and Recreation Director Marc Christensen, Police Chief David Nance, and Treasurer Sharri Oyler.

Mayor Fridal welcomed the scouts in attendance and asked them to introduce themselves.

1.   Review of agenda items on the 7:00 p.m. Council Meeting:

The Council reviewed the May 2, 2017 Agenda with the following items being discussed in more detail:

Annual Budget. Director Christensen noted the budget includes expenditures of $5,123,000 and revenues at $4,878,000, which leaves a $245,000 (4% of total expenditures) fund balance to be appropriated. Department Heads generally spend less than budgeted and the difference is appropriated into fund balance. Manager Warnke stated the General Fund always has a balance of 25% of fund balance from surplus from the previous year. Everything above 25% is transferred to Capital Projects Funds or the RDA (Redevelopment Agency). Manager Warnke commented there has always been a surplus during the seven years he has been employed with the City.

Director Christensen said the budget includes an 18% increase for health insurance. City staff is still working on getting exact numbers for insurance. It was noted the date for the final budget is June 20, 2017. There is a 2% COLA (Cost of Living Adjustment) and 1% Merit for employees programmed into the budget. This will raise the minimum wage for pay grades to help with recruiting. COLA helps keep wages in line with other entities. Manager Warnke noted the City will do a salary survey in another year. Garland is currently paying higher wages for police officers. The budget proposes raising police officer wages to be commensurate with surrounding communities. Councilmember Vance would like to see the total amount the COLA and Merit will equate in dollars.

Director Christensen noted the City receives $25K in Transient Room Tax. Historically this money went to the Fire and EMS funds to cover bad debt. The Fire and EMS are doing well now so the $25K will stay in the General Fund. There has been an increase in the Community Events budget to allow bigger events and help bring in more tourists.

The CMAQ (Congestion Mitigation and Air Quality) Project includes funds from developers. The funds will help offset curb and gutter and sidewalks in front of O’Reilly, on Iowa String, and on Main Street. There is a final OpEx payment to UTOPIA of $33,500.

The Food Pantry has budgeted $53K for expenditures and $37K in revenues. The Food Pantry currently has a fund balance of $50K because of conservative spending. The City will appropriate some of the fund balance to the General Fund.

The Recreation Fund shows $274K in expenditures with $117K in revenues with a General Fund transfer in of $157K. The non-departmental costs (salaries and overhead) generally make up the $157K transfer. The programs pay themselves through recreation fees. It is common for other cities to help subsidize recreation departments. It is proposed to increase the Field Prep Position from .25 FTE (Full Time Equivalent) to .5 FTE with an increase of $7K. This would allow the employee to work from March to November preparing fields. Councilmember Reese stated it shows support to the community by bringing in more sports. The people attending bring business to restaurants, hotels, etc. Councilmember Doutre said parks and recreation give a sense of community.

The Capital Projects Park Fund has $88K in expenditures and $77K in revenue from impact fees. There will be $11K loaned from fund 41 (vehicles fund). The Utah Jazz Basketball Court grant is $25K with the City covering the additional $30K. The City is waiting on final approval. This fund also includes engineering cost for the trailhead. The Utah Jazz Basketball Court will go in at Meadow Park as it is the densest part of the City. It will have post tension concrete and six hoops with breakaway rims and tempered glass backboards.

Director Christensen said there is no money set aside in 2018 for the trailhead. Manager Warnke applied for the Trails Grant that will allow work to commence in two years. If the City receives the award, Manager Warnke noted the City will have two years to construct. The first year will be engineering with construction being done in 2019. The City is looking at getting $80K plus in grant money that the City must match. Manager Warnke said the work done thus far has been done on less than 50 cents per dollar. A lot of the earthwork has been done and you can see where part of the trail will be. Councilmember Vance and Doutre would like a printout showing total spent on the trail and trailhead to this point.

The City will break out Fire and EMS charges separately next fiscal year. Chief Batis anticipates the City will need to hire part-time EMS employees for day coverage as volunteers are usually at work. Councilmember Rohde would like to see the number of calls broken down by time and day of the week.

Capital Projects (Fund 40) has proposed expenditures of $825K with $125K in revenue from the CDBG (Community Development Block Grant). The CDBG will be used for generators at the Senior Center and Food Pantry. That leaves $700K fund balance to be appropriated.

The City has $212K reserved for a new Animal Control Office. Manager Warnke noted City staff is working on getting concepts ready to bring different options to the Council. The building would have an office, a cattery for cats, a kennel for dogs, a place to euthanize animals, and a bay. Councilmember Reese said other cities use the Animal Control, Senior Center, and Food Pantry but they do not help contribute monetary funds. Chief Nance said the majority of animals housed in the Animal Control building are from Tremonton residents. Manager Warnke noted capital costs will never be recovered from other communities but they do make other contributions. The City usually offsets $200K to the Senior Center from the General Fund and Box Elder County pays $30K to help. However, surrounding communities do not participate. The City gets tax rebates on donations contributed by all communities which totals about $10K.

Manager Warnke noted the current kennel is in a building attached to the Public Works building and is sufficient. The office is located at the outfall for the Wastewater Treatment Plant. When there is backup, there is flooding. The building could be raised significantly but it would still be in a flood plain. Currently the City has $563K of revenue over expenses in the General Fund. The City is still working toward having a surplus to help finish all the road projects. Councilmember Rohde would like a priority level on every project. If each project had a priority rating, it would be easier for the Council to know which projects should be finished first.

Director Christensen noted the Vehicle Capital Projects includes $90K toward police vehicles and $11K toward a loan to fund 26. In fund 42, the City will receive a grant from County Corridor Funds of $54K to acquire the right-of-way on Main Street and Iowa String. The grant will pay the entire expense. Enterprise funds 47 and 52 are for capital projects and operating expenses for the Wastewater Treatment Plant. There is $2.5M in capital reserves that can be allocated. It is proposed to allocate $752K to go toward the bio-solids handling project and nutrient removal.

The Council did not move into Closed Session at this time.

2. CLOSED SESSIONS:

a. Strategy session to discuss the purchase of real property when public discussion of the transaction would disclose the appraisal or estimated value of the property under consideration or prevent the public body from completing the transaction on the best possible terms; and/or
b. Strategy session to discuss the character, professional competence or physical or mental health of an individual; and/or
c. Strategy sessions to discuss pending or reasonably imminent litigation.

The meeting adjourned at 6:56 p.m. by consensus of the Council.

Mayor Fridal called the May 2, 2017 City Council Meeting to order at 7:02 p.m. The meeting was held in the Tremonton City Council Meeting Room at 102 South Tremont Street, Tremonton, Utah. Those in attendance were Mayor Fridal, Councilmembers Doutre, Holmgren, Reese, Rohde, and Vance, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Parks and Recreation Director Marc Christensen, Police Chief David Nance, and Treasurer Sharri Oyler (left at 7:50 p.m.). Also in attendance was Sergeant Todd Hunsaker and Deputy Recorder Cynthia Nelson (left at 7:38 p.m.).

1. Opening Ceremony:

Mayor Fridal informed the audience that he had received no written or oral request to participate in the Opening Ceremony. He asked anyone who may be offended by listening to a prayer to step out into the lobby for this portion of the meeting. The prayer was offered by Sergeant Todd Hunsaker and the Pledge of Allegiance was led by Deputy Recorder Cynthia Nelson.

2. Introduction of guests:

Mayor Fridal welcomed Jessica Tanner from The Leader, Dustin Richards and Blain Hamp from the Division of Fire, Forestry, and State Lands, and all the scouts in attendance. Mayor Fridal asked the scouts to introduce themselves.

3. Approval of Agenda:

Motion by Councilmember Reese to approve the agenda of May 2, 2017. Motion seconded simultaneously by Councilmembers Doutre and Holmgren. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

4. Approval of minutes – April 18, 2017

Motion by Councilmember Vance to approve the minutes of April 18, 2017. Motion seconded by Councilmember Doutre. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

5.  Public comments: Comments limited to three minutes.

There were no public comments.

6. Employee Years of Service Award

a. Todd Hunsaker, Police Sergeant – 20 Years

Mayor Fridal noted that Sergeant Hunsaker has been with the City for 20 years. Sergeant Hunsaker thanked the Council for all they do and noted it has been a pleasure.

7. Presentations & Discussions

a. State Fire Policy Training – Catastrophic Wildland Fire Reduction Strategy – Dustin Richards, Division of Fire, Forestry, and State Lands

Dustin Richards noted that the passage of Senate Bill 56 requires the Division of Fire, Forestry, and State Lands to develop a state-wide fire policy and describes the catastrophic wildland fire reduction strategy. Senate Bill 122 allows municipalities to join the fire policy. Senate Bill 212 authorizes funding for the suppression fund.

There are four policy issues: 1) State assumes cost of large and extended attack fires, 2) local government obligations, 3) delegation of fire management authority and transfer of fiscal responsibility, and 4) cost recovery. The changes began January 1, 2017. All counties have signed cooperative agreements which replace the old county agreements. Cities have until June 30, 2017 to sign. Mr. Hamp explained they will be lenient with the deadline for cities to sign up but if there is a wildland fire in a city, it would be too late to sign at that time.

The new cooperative agreement is strictly a voluntary system, currently available, and has a 5 year life span. Local governments will be responsible for initial attack. Tremonton City currently meets the required training and certifications and has a Community Wildfire Protection Plan (CWPP). The CWPP has been in place about 3 years in conjunction with Garland. There is also a participation commitment that is not monetary. There is a risk assessment tool online that will show risk areas. Local government obligations include prevention at 25% and preparedness at 25%. The in-kind services from the Fire Department with RT130 almost covers the obligation for preparedness. Mitigation at 50% is to reduce risk and fuel.

Blain Hamp noted there is a sheet that gives ideas that can be used for mitigation. Mr. Hamp stated volunteers, including scouts, hours can be counted at $24.14 per hour. The amount came from the IRS volunteer rate today. The State will be called when aircraft is required to help. The following do not qualify for local government obligations: state funded activity, previously matched prevention/preparedness, state or federal trainings, cost of initial attack, improving culinary water systems or individual structures, and weeds. There was discussion on transitioning delegation from local government to state. Mr. Richards asked for communities to be more proactive with cost recovery for human-caused fires.

Mayor Fridal and the Council thanked Mr. Richards and Mr. Hamp for their time.

b. Overview of the Tremonton City Annual Implementation Budget 2017-2018 (General Fund, Capital Fund(s), Enterprise Fund(s), and Special Fund(s)”, for the period commencing July 1, 2017 and ending June 30, 2018 – Marc Christensen, Community Services Director

Director Christensen said the Water Utility Fund (fund 51) has $2,325,000 in expenditures and $1,387,000 in revenue. This would leave $937 from reserves appropriated to this fund. The projects in this fund include $569K for secondary water construction, $235K to acquire more water shares, $160K for purchase of dump truck, and $80K for water construction on 2000 West. This fund also has a lot of operating costs. Manager Warnke noted anything above the contracted minimum with Bear River Water Conservancy District the City must pay for. The budget projects the City will purchase $92K worth of water next fiscal year. The enterprise funds have operating and capital expenses. The water meters will be an operating expense because they do not reach the $5K threshold.

Director Christensen stated the Storm Drain Fund (fund 55) currently has $250K in reserves with expenditures at $566K and revenues at $422K and will appropriate $144K to the reserves. This fund will include $60K for property acquisition at 1000 North by La-Z-Boy for storm drain and $70K for storm drain construction on 400 West Main. There will also be money from this fund for the Main Street Storm Drain Project.

It was estimated that the RDA District #2 – Downtown will have $305K in expenditures and $200K from revenues with $105K reserves to be appropriated. Manager Warnke noted that most of the tax increment that is received in this area goes back to the developer until the contractual obligation is met.  The Council previously directed City staff to move funds here in the past. This fund will be used to construct 480 West as well as $36K for professional fees for Main Street design. There is $30K budgeted for Public Realm Enhancement. At the end of this fiscal year, some surplus will need to be moved to this fund to help cover the projects.

Fund 73, RDA District #3 – West Liberty Foods, is on the second to the last year of payments to West Liberty Foods and Millard Refrigeration. Spring 2018 is the last payment date. After that payment, the taxing entities will capture their share of the tax. It is estimated the City will receive $293K in new property tax in fiscal year 2019. One proposed project that can come out of this fund is the salary survey.

Mayor Fridal asked how the projects can be prioritized. Manager Warnke noted City staff can put a certain amount of money in each fund or prioritize the projects. The other option is for the Council to prioritize the projects. Councilmember Holmgren and Rohde would like City staff to prioritize the projects. Councilmember Reese noted the Council needs to decide what percentage to keep in the General Fund. The Council thanked Director Christensen for his work on the budget.

8. Public Hearing

Mayor Fridal called a Public Hearing to order at 7:50 p.m. to consider a proposed annexation of Rocket Road. There were 22 people in attendance.

a. To consider the proposed annexation of real property including segments of Rocket Road in close proximity to the Tremonton Cemetery and Tremont Place Subdivision Phase 1 and a segment of 100 East just south of Rocket Road into Tremonton, Utah located within the areas defined in the Master Policy Declaration for future expansion by Tremonton City

Manager Warnke said that segments of Rocket Road are within the City and some in the unincorporated county. The City will annex it so it will all be in City limits. One of the scouts asked if they were making another access point to the cemetery. Manager Warnke noted nothing will look different, it will make the jurisdictional lines straight. Councilmember Doutre said the City will be responsible for the roads in the annexation area.

Mayor Fridal closed the Public Hearing at 7:52 p.m.

Mayor Fridal called a Public Hearing to order at 7:52 p.m. to consider adopting the Tentative Budget 2017-2018. There were 22 people in attendance.

b. To consider adopting the Tentative Annual Budget entitled “The Tremonton City Annual Implementation Budget 2017-2018 (General Fund, Capital Fund(s), Enterprise Fund(s), and Special Fund(s)”, for the period commencing July 1, 2017 and ending June 30, 2018

There were no public comments.

 Mayor Fridal closed the Public Hearing at 7:52 p.m.

9. Proclamation:

 a. Declaring May 2017 as Neurofibromatosis Awareness Month

 Cynthia Nelson asked the Council to declare May as Neurofibromatosis Awareness Month. Ms. Nelson read the proclamation and noted her son has NF.

Motion by Councilmember Doutre to approve this and let the Mayor sign. Motion seconded simultaneously by Councilmembers Rohde and Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

10.  New Council Business:

a. Discussion and consideration of approving the March Financial Statement

Motion by Councilmember Holmgren to approve the March Financial Statements. Motion seconded by Councilmember Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

b. Discussion and consideration of adopting Ordinance No. 17-08 annexing real property to include segments of Rocket Road in close proximity to the Tremonton Cemetery and Tremont Place Subdivision Phase 1 and a segment of 100 East just south of Rocket Road into Tremonton Utah

Motion by Councilmember Reese to adopt Ordinance No. 17-08. Motion seconded by Councilmember Doutre. Roll Call Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

c. Discussion and consideration of adopting Resolution No. 17-13 amending Tremonton City’s Articles of Incorporation to include segments of Rocket Road in close proximity to the Tremonton Cemetery and Tremont Place Subdivision Phase 1 and a segment of 100 East just south of Rocket Road into Tremonton, Utah

Motion by Councilmember Vance to adopt Resolution No. 17-13. Motion seconded by Councilmember Reese. Roll Call Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

d. Discussion and consideration of adopting Resolution No. 17-14 adopting the proposed Tentative Budget entitled “The Tremonton Tentative Implementation Budget 2017-2018 (General Fund, Capital Fund(s), Enterprise Fund(s) and Special Fund(s)” for the period commencing July 1, 2017 and ending June 30, 2018

Councilmember Holmgren appreciated the presentation by Director Christensen. It would be good to prioritize the large expense capital items. City staff can put something together and present it to the Council.

Motion by Councilmember Holmgren to adopt Resolution No. 17-14 on the tentative budget with the addition that City staff prioritize the capital item list and present it to the Council. Motion seconded by Councilmember Doutre. Roll Call Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – nay.  Motion approved.

e. Discussion and consideration of authorizing Mayor Fridal to sign a letter of the City Council’s intentions to either raise or maintain tax rates and notifying the County Auditor of their decision

Manager Warnke noted the City must give notice annually as part of the property tax process stating whether the City will accept the certified tax rate. The tax rate will deliver the same amount of tax revenue plus an increase for growth. The City has always accepted the certified tax rate.

Motion by Councilmember Reese to authorize Mayor Fridal to sign a letter of the City’s intention and accept the tax rate. Motion seconded by Councilmember Vance. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

f. Discussion and consideration of adopting Resolution No. 17-15 entering into a Canal Crossing License Agreement between Tremonton City and the Bear River Canal Company for a public sewer line crossing the Highline Canal on 2000 West

Manager Warnke noted the sewer line terminates on 2000 West by Valley View Granite. In order to provide sewer service for a proposed development of Val Stokes, the sewer line must be extended. Mr. Stokes will bear the cost to extend the sewer as part of his development costs. The City will be liable if the sewer line interrupts the flow of water to the farmers. Also, the City must repair any damage to the canal caused by the improvement. The City will reimburse The Canal Company for any expense they incur in approving the agreement. There will be a fee of 10% of the total project cost the City will pay. Mr. Stokes plans on digging until reaching the Canal Company’s property then boring. Manager Warnke noted the line will be 8 inches and will have the ability for others to connect. The 10% will be based on work done in the Canal Company right-of-way.

Motion by Councilmember Vance to adopt Resolution No. 17-15. Motion seconded by Councilmember Holmgren. Roll Call Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

g. Discussion and consideration of adopting Resolution No. 17-16 entering into a Federal Aid Agreement for Local Agency Project for intersection improvements on Main Street (State Road 102) and 1000 West/Iowa String

Motion by Councilmember Holmgren to adopt Resolution No. 17-16. Motion seconded by Councilmember Reese. Roll Call Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

11. Reports and Comments

a. City Manager Reports and Comments

No report or comments.

 b. City Department Head Reports and Comments

 No Department Head reports or comments.

 c. Council Reports and Comments

Councilmember Holmgren said the Parks Department planted four trees for Arbor Day. The plan is to plant flowers for Main Street after May 15. The pots used in the past are falling apart and he proposed buying larger whiskey barrel pots to replace them. Mayor Fridal had the idea to invite scouts or church groups to participate. They will put it on the website “Just Serve”. It is a big project and will take time planting the flowers. Everyone was invited to participate.

Councilmember Vance asked about bids on secondary water. Manager Warnke noted they have not received bids, they are working on getting the plan finalized. He said City Engineer Chris Breinholt plans to attend the next City Council meeting and discuss this item.

Motion by Councilmember Doutre to move into closed session. Motion seconded simultaneously by Councilmembers Reese and Vance. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

The Council moved into a closed session at 8:14 p.m.

12. CLOSED SESSION:

 a. Strategy session to discuss the purchase of real property when public discussion of the transaction would disclose the appraisal or estimated value of the property under consideration or prevent the public body from completing the transaction on the best possible terms

 b. Session to discuss the mental health, character, and competence of an individual

Motion by Councilmember Doutre to return to open session. Motion seconded by Councilmember Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

The Council returned to open session at 8:33 p.m.

13.  Adjournment.

Motion by Councilmember Reese to adjourn the meeting. Motion seconded by Councilmember Vance. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye.  Motion approved.

The meeting adjourned at 8:33 p.m.

The undersigned duly acting and appointed Recorder for Tremonton City Corporation hereby certifies that the foregoing is a true and correct copy of the minutes for the City Council Meeting held on the above referenced date. Minutes were prepared by Deputy Recorder Cynthia Nelson.

Dated this 16th day of May, 2017.

Linsey Nessen, City Recorder