City Council Minutes 11-6-18

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING

NOVEMBER 6, 2018

Members Present:
Diana Doutre
Lyle Holmgren
Jeff Reese
Bret Rohde
Lyle Vance
Roger Fridal, Mayor
Shawn Warnke, City Manager
Linsey Nessen, City Recorder

CITY COUNCIL WORKSHOP

Mayor Fridal called the November 6, 2018 City Council Workshop to order at 6:00 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 (arrived at 6:15 p.m.), City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Fire Chief Steve Batis (arrived at 6:25 p.m.), Community Services Director Marc Christensen, Public Works Director Paul Fulgham, and Police Chief Kurt Fertig. Also in attendance was Finance Director Curtis Roberts.

1. Review Discussion of expanding the Tremonton City Secondary Water System

a. Water shares required table
b. Culinary water system capacity table
c. Secondary water rates
d. Creation of a Water Rate Workgroup

Director Fulgham discussed the culinary water source’s capacity and what is required by the Division of Drinking Water. He said our sources have held their own, but we do not know how next year will look since it has been so dry. In working with the Bear River Water Conservancy District, we were able to use a line that was installed in 1999. This was an emergency line to take water from Tremonton, but then the problem was fixed and it never got used. I approached them in 2007 about buying the line to route some of our water, but they were not interested. We and the district engineer decided to put that line in and bring it into our system at a different point. By doing that we boosted the pressure by about 200 gallons a minute. That is more than we would have from the District with their proposed booster pump. This increases the water we can produce a day from 5.12 million to 5.39 million.

Director Fulgham then talked about actual peak day use. For 2018, the peak day capacity was 4.176 million gallons and the week we produced and used the most water was the week of July 13-20. He said, on average, we were using about 4.82 million gallons. We were running about two to three feet of water remaining in our tanks and sometimes catching up on weekends up to about seven feet of water in the tanks. With phases 1 and 2 of secondary water, which we are doing now, we hope to have about 300 service connections. According to our peak day demand calculations, one home is using about 1,800 gallons a day. If we multiply that by 300 that is how much more water a day we will have in our tanks. This is what we need to do to catch up. We are adding 80 to 100 new homes a year to our system. I used the Master Plan study, which was done in 2015 and calcuated the growth rate from the Governor’s Office. In 2019 we will need 4,867,200 gallons of water per day in peak day demand. As long as our sources hold up, we can produce 5.3 million gallons.

Director Fulgham then addressed needed water shares. He mentioned shares that have been acquired, along with some from development. The City now has 143 shares. Councilmember Reese clarified that the City could service areas 1 and 2 with 107 shares. Director Fulgham said we have not had a discussion with the Canal Company yet about exchanging water from the Wastewater Treatment Plant, but service area 4 has a pipe that we could move to our current trail corridor and pump that into sevrice area 3. We produce about one share of water per day out of the Treatment Plant (1.3 million gallons). We could use that to help supplement what we do not have. Councilmember Holmgren said that is seven days a week so it is acuatlly more than that. Director Fulgham said if you times that by 182 days in the irrigation cycle that is 182 shares. Councilmember Holmgren said even if the Canal Company will not swap us water, we can utilize that. Director Fulgham said the beauty of the swap is that we would not have to pressurize it. We are waiting for their new manager to get his feet on the ground then we will talk. Councilmember Holmgren said the Canal Company was concerned about water quality. These numbers will be taken to them so they can see what we have is cleaner than what is in the system by a long ways. Even though it is clean, there is a smell as it goes through the system. Director Fulgham said there should not be a lot of smell and we will blend it with canal water, which has a dirt smell. It is treated the same and made clear. It will not be engrained with silt like canal water.

Director Fulgham then talked about rates in northern Utah. He said some cities do not have their own seconday systems so exceptions are made for those who have secondary versus those who do not. Ogden City has a couple different rate schedules, including winter time use versus summer time use, as well as if it is available or not. For culinary water, Ogden’s base rate is $20.90, while ours is $8. Their cost per 1,000 is $1.79 for the first 6,000 gallons while ours is $1.25. For 7,000 to 40,000 gallons they charge almost double ($2.74) what we charge ($1.50). They have a third tier up to 84,000 for $3.17 per thousand and over 84,000 is $3.57 per thousand. We do not have a secondary rate yet. This was added so we can see what is going on in some of the other communties.

Manager Warnke said the chart explains where the City is at from a capacity standpoint. Summer is our critical time so we will not have more to present until then. City staff was asked to talk about shares and reconcile numbers so we can set rates. During our last secondary water discussion, the Council asked what else we could look at to adjust rates or come up with an alternative rate schedule. Director Fulgham said we have tried, but we do not have an answer. We would like to put together a working group to help come up with that information. We have given some ideas of possible rates. The last one we presented was a base rate of $17 with $1.37 on six tiers—the more you use, the more you pay. We were asked to come up with alternatives, but one has to go up or we have to adjust the culinary rate. We could take culinary revenues to help fund secondary. Councilmember Reese said we need to run numbers and make sure secondary is not going to cost more than culinary. Councilmember Holmgren said it might be as much. Manager Warnke said we are bumping into issues with fixed costs and do not know how to resolve them. That is why it makes sense to have a a small working group composed of two Councilmembers to help come up with ideas to adjust the numbers. That will then be brought back to the Council. Councilmember Holmgren said we are basing these fees on an entire build out, but would it make sense to build in areas that are going to have usage and payout. New development is funding what the City otherwise would have to do because they are putting in the infrastructure. I think we need to work our way down to the total build out, but maybe there is a path that makes more sense in terms of build out. Manager Warnke said we need to keep up with growth, but also look at where we are at today. Councilmember Holmgren said we need to keep up with the status quo and let the new growth take care of itself. There is no sense in doing this until we get the water. Director Fulgham said that is where we need a good steering group to help us discuss and have the Council perspective as part of calculating rates and service areas. Manager Warnke said, in some cases, the costs are lower than we estimated. We need to have the rates in place as part of our continued effort to move this project forward if that is what the Council wants to do. Engineer Breinholt is working on phase 3. We are currently working on service areas 1 and 2 with great success. Phase 3 will be split into two and could be bid and constructed this upcoming season. That would get us back to an even point. In order to do that we need to get the rates in place so we can work on financing. As a City staff, we cannot do that without more specific guidance. The Council agreed the small working group was a good idea and Mayor Fridal appointed Councilmembers Rohde and Vance to represent them. Also on the committee will be Manager Warnke, Director Fulgham, Director Roberts and Engineer Breinholt.

Councilmember Vance said we are going to have to start borrowing money and asked how much we need to charge to get the bond and still make it affordable to constituents. He also asked the timeframe to have these rates decided. Director Roberts said once we need to start drawing money then we work back 60 days—that is the minimum for when we have to have a rate set before we go to the borrower. You may have to add another 30 days to that. We will not need to start borrowing money until May or June. Director Fulgham said we are not in dire need, it can go into the first of next year. It would be nice for the next irrigation season. There is a proposed bill that will hit the legislature in January saying if you are building a new secondary system you will have to have meters. Those that already have it will have until 2030 to get the meters in. We will have a couple hundred. Fees based on usage is the most feasible way to bill instead of a flat rate. We have a fixed based metering system that allows users to see their readings almost real time so they can make usage adjustments. They can set parameters and get notifications. I have sent them the data and they will get us a quote on what it will take. This is something we will phase in over several years with the culinary system. This will be done with secondary as we develop it. After showing a few pictures of what has been done in phases 1 and 2, the Council thanked Director Fulgham for his time.

2. Discussion and review of agenda items on the 7:00 City Council Meeting Agenda

Director Roberts addressed the Council about the acquisition and purchasing of the ambulance. Right now the ambulance fund is cash healthy so we would not have to finance the ambulance if the Council decides they do not want to. This will draw the cash down to a low level, but it is one we can withstand. We do not see the call volume changing and our collections are solid at this point in time. To save on financing costs, the City does have the option of not financing or we could finance a portion. The ambulance will cost $166,000, taking the fund down to about $50,000. It fluctuates, but that fund churns cash and I do not see it dropping. Councilmember Vance asked if in the near future are we going to need to pay more for volunteers. My only concern is if we need money to keep people coming on a volunteer basis. Chief Batis said we hired five this month on a conditional basis. We are not getting any trained people, but we are getting them in EMT classes. If they pass the class and the pre-employment tests, we will put them on the Department. We changed our job description to have more time to earn certifications. We have five who look promising. We do have a separate budget for wages, which is pretty solid. Director Roberts said we can withstand a one time hit and it will replenish back up. If we needed another large piece of equipment in the next year, then we would be looking at financing, but right now we can handle this and save money upfront. Manager Warnke said the original budget suggested financing half and paying cash for the rest, but we will change it as part of the budget ammendment with the Council’s guidance.

3. CLOSED SESSIONS: No closed session was held at this time.

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; and/or
d. Discussions regarding security personnel, devices or system

The meeting adjourned at 6:57 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the November 6, 2018 City Council Meeting to order at 7:04 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: Fire Chief Steve Batis, Community Services Director Marc Christensen, Public Works Director Paul Fulgham, Police Chief Kurt Fertig, and Treasurer Sharri Oyler. Also in attendance was Finance Director Curtis Roberts.

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 Councilmember Holmgren and the Pledge of Allegiance was led by Councilmember Reese.

2. Introduction of guests:

Mayor Fridal welcomed those in attendance.

3. Approval of Agenda:

Motion by Councilmember Reese to approve the agenda of November 6, 2018. Motion seconded by Councilmember Vance. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

4. Approval of minutes – October 16, 2018

Motion by Councilmember Doutre to approve the minutes of October 16, 2018. Motion seconded by Councilmember Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

5. Years of service award

a. Josh Kearl, Police Officer – 5 Years
b. Gina Kinikin, Assistant Librarian – 5 Years

Mayor Fridal recognized and thanked them for their service.

6. Public comments: This is an opportunity to address the City Council regarding your concerns or ideas. Please limit your comments to three minutes.

There were no public comments.

7. New Council Business:

a. Discussion and consideration of approving September 2018 Financial Statements

Motion by Councilmember Reese to approve the September 2018 Financial Statements. Motion seconded by Councilmember Holmgren. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

b. Discussion and consideration of approving September 2018 Warrant Register

Motion by Councilmember Vance to approve the September 2018 Warrant Register. Motion seconded by Councilmember Doutre. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

c. Discussion and consideration of adopting Ordinance No. 18-17 amending the Revised Ordinances of Tremonton City Corporation: 15-213 Parking Prohibited During Snow Removal

Chief Fertig said there was a little bit of confusion last year with the snow removal ordinance. We want to clarify it before we send out all the flyers this year and make sure everyone understands how to be compliant. Manager Warnke, Director Fulgham and I met with the prosecutor and the Judge to decide the best way to word the ordinance. It did not change anything about what the final result is—everyone still has to keep their cars off the street when snow is being plowed and between midnight and 6 a.m. those three months of the year. We made the language more clear. He showed the Council colored entries and strikeouts. Councilmember Doutre said making things clearer is always a good thing.

Motion by Councilmember Doutre to adopt the ordinance. Motion seconded by Councilmember Rohde. 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 Ordinance No. 18-18 amending the Revised Ordinances of Tremonton City Corporation: Section 3-819 Amount of Bond

Manager Warnke said it came to the City staff’s attention that there were some items and elements we could update with this section relative to bonds. Based upon recommendations from the Utah Local Governments Trust, which we use to help meet these requirements, we are amending our ordinance to be the same or close to the recommendation.

Motion by Councilmember Reese to adopt the ordinance. 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.

e. Discussion and consideration of adopting Resolution No. 18-49 Aspen Grove RV Park Development Agreement

Manager Warnke said this is a development agreement that has been recorded and is being ratified by the Council as allowed by our City Ordinance. The conditions are the same expect for those found in the special conditions section. They are going to provide us with a test to make sure the bridge that spans the canal can hold the weight. They have also committed to entryway improvements into their development. Councilmember Doutre asked about their opening date, which will be held in November.

Motion by Councilmember Holmgren to adopt the resolution. 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.

8. Calendar Items and Previous Assignment

a. Review of calendar

Manager Warnke provided the Council with a list of upcoming events to be aware of and discussed specific times and opportunities to serve. That information was in the packet.

b. Review of past assignments

9. Reports & Comments:

a. City Manager Reports and Comments

1. Update on the financing of the new ambulance

This item was discussed during the work session.

2. Update on the 1000 West Main Street Intersection Improvements

Manager Warnke said this deals with the right turn lanes that are going to be constructed. They awarded the bid to a construction company, which will have the 2019 construction season to make the improvements. It will be completed no later than October 15, 2019. We gave them a lot of flexibility because of the bidding climate and were concerned that since the job is so small that a contractor might bid higher than the budget would allow, but it was within 1% of the engineer’s estimate. It is a 30-day project from start to finish and there are certain dates they cannot do lane closures.

3. Draft petition on the vacation of the public street of 650 West from Main Street to 100 South and dedication of a new public street that would replace 650 West to be aligned with 600 North from Main Street to 100 South

Manager Warnke said City staff has had conversations with Crump Reese Motors about reconfiguring the intersection entry into Sandlewood Acres. From a staff perspective, we think we have a good proposal that we want to move forward with. With the Council’s consent, the next step in the process is a public hearing and notification. Under this petition, it is suggested we vacate or eliminate the 650 West access, which tees into first south. From a traffic circulation pattern, it is less optimal because it is not a through connection. We would vacate 650 West and do a land swap with Crumps to acquire a new right-of-way, which would align with 600 West. We have had some preliminary discussions with UDOT and they would require a right turn lane, which we think would be an enhancement and provide better traffic circulation in and though that area. This would also allow Crump Reese to expand and develop an improved dealership. This is a joint petition with Crump Reese and Tremonton City. Mayor Fridal asked if there are any minuses for the City. Manager Warnke said not from a traffic and circulation standpoint and safety perspective. Also this would help increase values within our Tremonton City CDA. Property values translate into some of the objectives we are trying to meet with improving Main Street. It also has the potential to increase sales tax related to the increased operations that we envision coming from these improvements. Councilmember Rohde said he drives that road every day and it is a great move—that corner is dangerous. I like the idea of extending all the way down. Councilmember Doutre said it is a good move for traffic, but I am concerned about the neighbors and how they will accept that. Councilmember Vance said this is a good move to work with our current businesses to keep them here.

Manager Warnke added that Tremonton has been designated as an economic opportunity zone, which allows businesses that are investing and developing to be exempt from some capital gains if certain requirements are met. This is a tool we have that I would love to see get used. I reached out to three different companies to talk to them about acting as a consultant for the City. We could hire a CPA to be here locally for two hours. The CPA would sit down with perspective investing businesses, giving an overview of the opportunity zones, what they are proposing and how that would play into it. It would be more of an education process and overview of what the tool would allow them to do. In our economic development budget we have about $3,000 associated with consultant work. Councilmember Vance said it is an excellent idea.

4. Recruitment for a Senior Center Director

Manager Warnke said Marion Layne has submitted her voluntary resignation associated with her retirement. Director Christensen and I have been meeting with employees at the Senior Center to evaluate where the Center is and what qualities we are looking for in the next director. She has done a great job and many mentioned her accomplishments and contributions. We are in the process of having external conversations and advertising to get a lot of good candidates. A working group will go through the application process. We will come back to the Council with some recommendations and a job description. I will propose the appointment with the advice and consent from the Council, who will then accept or reject that recommendation.

b. Land Use Report and Comments

1. Exemption from Subdivision Process- for the public street of 950 East

Manager Warnke said there is an exemption in our Land Use Development Code that exempts this type of subdivision from going through a more formal subdivision process. Because of the nature and type of subdivision, the Development Review Committee felt the exemption was consistent with allowance in the Code and approved that exemption. That property has been subdivided and purchased.

c. City Department Head Reports and Comments

Director Fulgham said I was approached by a local business that used to have an RV dump station. They want one again and will take care of maintenance. They see it as a way to make some revenue. I told them we would work with them the best we could. My only reservation with one is the mess involved and how to control it. It is a messy process. We have allowed people to put personal ones on their own property in the form of a clean out and it does not impact the system. A public place for people to dump is not monitored and anybody could dump anything.

d. Council Reports and Comments

Councilmember Holmgren brought up the pumpkins that were put in the pots on Main Street. The Council and City staff said they heard good things about that.

Councilmember Rohde recognized North Ogden Mayor Brent Taylor and his loss in Afghanistan. I knew him and he was a great mayor. I am concerned about Tremont Street. I think it is becoming a safety issue. When big trucks park there it is down to one lane and if people are trying to turn left no one can get through. If we have some type of emergency, we are going to be in trouble. We need to do something about that parking. The Council asked Chief Fertig to look into it and he said he would. Councilmember Vance suggested changing the angles. Director Fulgham said they could also take away some of the parking spots.

Mayor Fridal told Chief Fertig that he received a comment about Officer Tyler Bell and how professional he was and that he does a good job.

Motion by Councilmember Reese to move into closed session. Motion seconded by Councilmember Doutre. 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 7:41 p.m.

10. CLOSED SESSIONS:

Motion by Councilmember Holmgren to return to open session. Motion seconded by Councilmember Rohde. 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 8:06 p.m.

11. Adjournment.

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

The meeting adjourned at 8:06 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 Jessica Tanner.

Dated this 4th day of December, 2018.

Linsey Nessen, City Recorder

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