City Council Minutes 2-4-20

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
FEBRUARY 4, 2020

Members Present:
Connie Archibald
Lyle Holmgren
Bret Rohde
Rick Seamons
Lyle Vance
Roger Fridal, Mayor
Shawn Warnke, City Manager
Cynthia Nelson, Deputy Recorder

CITY COUNCIL WORKSHOP

Mayor Fridal called the February 4, 2020 City Council Workshop to order at 6:03 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 Archibald, Holmgren, Rohde, Seamons, and Vance, City Manager Warnke, and Deputy Recorder Nelson. The following Department Heads were also present: Police Chief Kurt Fertig, Treasurer Sharri Oyler (arrived at 6:07 p.m.), and Library Director Kim Griffiths. Also in attendance was Finance Director Curtis Roberts.

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

Library Director Kim Griffiths told the Council they have a member of the board who would like to be released and introduced two new names for consideration—Diane Francom and Eric Shelley. Layne Sorensen was also selected as a new Planning Commission member.

Susie Witt addressed the Council about Habitat for Humanity of Northern Utah. She said our habitat was founded in 1981 and is the 14th affiliate to be founded. We have also created the Weber and Cache Valley Habitat for Humanity. Our mission is a world where everyone has a decent, safe place to live because many do not have that. We work by volunteer labor and cash donations, but do purchase things that are not donated. We have a non-interest loan for the family we build the house for. We have about 20 applications, but get daily calls from people asking for help. There is a big need in Box Elder County. We construct one to two homes a year. Our committee goes through a process to make our selection. They narrow it down to three or four and then visit their homes and decide which one has the most need. It is not just about feelings, they have to have reasons why. We want to give it to all of them but we cannot. We have a local family in our application ready for a house in Tremonton. This family will need some handicap accessible features so this house will cost more than usual and that is why we are trying to find as much help for this family as we can possibly get. Mayor Fridal asked how much money is invested in a home. Mrs. Witt said there is no limit, we do what we need to, but we do not want to spend more than is needed. Our main philosophy is safe, decent, and affordable. The house we just built cost about $145,000, but it appraised for $266,000. It really worked out well for us. We write grants and the mortgage payments go back into building another house. Every dollar just keeps going in a circle. We stop the process if we run out of money, which we have not done. We just keep funding and fundraising wherever we can. We are always looking for volunteers because they are a big part of our organization. We are excited to get here in Tremonton. Councilmember Archibald asked if the applicants have to be fairly financially sound in order for you to continue this. Mrs. Witt said that is what makes our process a little bit different. We have a limit they have to make or we cannot help them. Manager Warnke said there is an opportunity for the City and RDA to support this housing project in Tremonton. We charge building permit fees that cover the inspections associated with regulating buildings within the City. There are also impact fees we capture in order to pay for capital cost infrastructure equal to the demand that new houses have on our infrastructure. We can provide an exemption, but then would have to provide an alternate source to pay those impact fees, which would be the RDA housing funds. The Council is considering waiving the building permit fees, inspections, regulatory fees, and requesting the RDA to pay the impact fees on behalf of this building permit. They do meet the low to moderate income housing requirements and are eligible to use those housing funds.

The Council then considered a resolution accepting a petition for annexation of real property. Manager Warnke said 65 acres is being proposed to come into our City boundaries. It consists of Blake Christensen’s home and farm, a portion of the Tanner’s property, and a portion of the Hansen family parcel. Jay Stocking, with Sierra Homes, already owns 24 acres. They are closing on this parcel soon. A representative from the Hansen family did sign the petition and they have the required evaluation to propose even though Mr. Christensen and Mrs. Tanner did not sign. Mr. Stocking has proposed different scenarios like trading land. They are aware of it and he is working on acquiring and buying some of them out. Mr. Stocking will be the primary landowner and developer. We have told him about the ordinances and resolutions that the Council has already adopted that would affect his property. One of those things is the continuation of the canal/rail trail. He sees it as a marketable amenity for his development. The proposal is that he would dedicate the land to the City and the City would pay impact fees, cash or a combination. We will narrow it down as we develop this pre-annexation agreement. There is also a regional storm drain basin that our Master Storm Drain Plan requires in this area. This will abut the trail so it becomes a network to open spaces and community amenities. Our master plan requires 6.5 acre feet and this is 5.5 acres so it would be a little over a foot deep in order to accommodate the volume we need for storm drain and still have a usable park. We can play with the acreage a bit. We have not seen Mr. Stocking’s proposed zoning or land use plan, but he is thinking of having higher densities on the east side of the canal and then single family dwellings on the west side. Here we would add the equalization basin, which is a requirement for secondary water. This is the ideal location because of the elevation. The City could move water into the equalization basin ahead of the property and then release it on the south side without having to pump. The trail corridor, park, regional space and the equalization basin are all part of this negotiation. These projects are all impact fee eligible because they are system improvements that help the entire City.

The Council also talked about roads for this area. Manager Warnke said 150 East is 66 feet, which meets our collector road width. Rocket Road is classified as a minor arterial road. There are some portions where we will not get the 66-foot width without doing a more assertive course of action, but as development occurs, we are looking to see if we can acquire additional width to make it conform to the ideal City standard of 80 feet. The 300 East road, which is not dedicated, is a public road by use and is owned by Mr. Stocking. As he develops the property, he would be required to dedicate 60 feet to the City and improve it to our standards. With the canal, there is proposed connectivity and Mr. Stocking would rather see it be pedestrian based only, but with the density it might make sense to have vehicle connectivity. We will continue to work through those issues as we move through the process. Tonight the Council is simply accepting the annexation petition for further consideration, which starts the notification process and allows people to protest it.

The Council considered rezoning 0.82 acres from Commercial District to RM-16. Manager Warnke said Developer Gary Madsen wants to do a townhome project and what he is proposing is a step ahead of other townhomes and would include single car garages. What he is proposing does help to transition the land use there with the hotel, commercial buildings, and single-family homes.

2. Possible discussion on updating the water rates model- Curtis Roberts, Finance Director

Manager Warnke said when we moved forward with the development of secondary water, there were a lot of unknowns, but we did our best to estimate the terms of the bonds and the construction cost of building out service area 3. We used a tool that Director Roberts created to help us make estimations based upon our assumptions. Now we can update the spreadsheet and model to reflect those now known terms. It was used to calculate the water rates based upon keeping 125% debt service coverage ratio.

Director Roberts said things are actually coming out about the way we had planned using the rate structure we have. We do have a little leeway, but I need the updated number of connections. It is about $292,000 for the total debt service for the year. We can play around with the rate structure and we might be able to lower it a bit, but not a lot. If you shorten the base and adjust the gallons, we would have to design a rate structure to capture it in the next range, enough to make up for what we lost going down, so we are just going to be shifting. It is still too early to tell how this is all going to play out. As far as projects go, we are on task and we have bought a lot of water shares. We are going to draw down a lot of cash in the Water Fund down to levels that make me feel uncomfortable, but are still manageable. We have to be careful to make sure these rates are generating enough cash for us to replenish that so we have replacements for water lines and other repairs. Councilmember Vance asked if there is more money to do the next zone. Director Roberts said not right now. Each service area, depending on size, is a few million dollars. Councilmember Vance asked if we are going to kick into the next zone, bond and keep this rolling. Director Roberts said the Council would decide how fast to roll this out. We have to keep the water fund healthy. Do we run service area three for a year or two and see how that plays out or do we keep building and get as many people as possible onto secondary water. Councilmember Rohde said as we add more homes into the areas, that should help offset some of those expenses. Manager Warnke said as a staff we have discussed the possibility of phasing in some areas that are growing. We could extend infrastructure and incrementally do that. We are working on an engineering estimate that might be a more affordable way to expand and capture new growth. We will continue to exact shares and distribution lines within project areas while the City adds pump stations and runs mains to connect some of these developments. That is an alternative we would evaluate and then propose. Councilmember Vance said if we do not keep going, the costs are going to go up. I am for getting this thing done. If we are conservative, it could go on and on for years. Councilmember Rohde said we had an explosion of unhappy people with the rates. We have to get that fixed then we can go as fast as we can. Councilmember Holmgren said give us a year to get a feel for the rates. These things take time. Councilmember Vance said at least one year to see how it settles out, but I think we need to move. Director Roberts said we have built our rates to be fairly stable assuming we get enough connections. I do not anticipate a hike in the rates because we will have connections coming on that should generate the revenues.

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 systems

The meeting adjourned at 7 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the February 4, 2020 City Council Meeting to order at 7:09 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 Archibald, Holmgren, Rohde, Seamons, and Vance, City Manager Warnke, and Deputy Recorder Nelson. The following Department Heads were also present: Police Chief Kurt Fertig, Treasurer Sharri Oyler, and Library Director Kim Griffiths. 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 Vance and the Pledge of Allegiance was led by Councilmember Archibald.

2. Introduction of guests:

Mayor Fridal welcomed those in attendance.

3. Declaration of Conflict of Interest: none

4. Approval of Agenda:

Motion by Councilmember Holmgren to approve the agenda of February 4, 2020. Motion seconded by Councilmember Archibald. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

5. Approval of minutes – January 21, 2020

Motion by Councilmember Rohde to approve the minutes of January 21, 2020. Motion seconded by Councilmember Seamons. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

6. Public comments: Comments limited to three minutes.

Resident Erik Richardson said during the City Council Open House there was a lot of good information presented, but I am following up. The goal was to have 800 homes developed by the time the water is turned on in May of this year, where are we at on this status? Also, where are we going to settle or end up by the end of this calendar year on the bond repayment? I need to make sure as a consumer that I am not overpaying my share. We are paying more for secondary dirty canal water than clean culinary water and that is unacceptable. I am here and actively involved in what is going on.

7. Presentation:

a. Presentation of the audited 2019 Financial Statements – Curtis Roberts, Finance Director and Mike Kidman

Director Roberts said we are in draft form. Mike Kidman with our CPA firm does the financial statement audit and each year we go through this. With all the construction going on, there are a lot of fixed assets and it took longer than I anticipated. Mr. Kidman explained what an audit entails and what they do to verify it is accurate. Mr. Kidman said you have great people in the City and they work hard to get us through the audit. The independent auditors report is on page one. This is not a short report, you have a lot going on in your City. From an auditors perspective, your City is in really good shape. The fund balances and budgetary controls look good and are functioning. You are carrying adequate reserves and your enterprise funds are at an operating income. In a nutshell, I felt good about where your numbers ended up for this year, as well as what we saw going into the preparation of the financials.

Director Roberts said we have the outside validation that our numbers are correct and what we are doing here is accurate. Enterprise funds are the lifeblood and it is easy to get out of whack, which causes huge problems. The key line to look at is operating income, which tells us if the system is functioning. Positive is a good thing, but small positives can also be problematic. The enterprise funds are very asset intensive, it takes a lot of infrastructure to turn around and generate this revenue. We are going to have to replace that infrastructure at some point. A 2% rate of return on assets is good, but I am more comfortable when it is closer to 4%. All of our funds have a good solid rate of return. As rate structures go, overall we are in the target ranges of where we want to be to keep the system going and have replacements in the future. The General Fund transferred out some money to fund future capital projects, which is good, solid planning. The biggest message I would like you to take away from this report is you guys have done a fantastic job at looking out for the future and planning for these moments. The one area that is still under study that has some concern is the fire and EMS fund. They get netted together. We are getting pressure from the State about how our EMS has been funding a lot of our fire activities. We will have those discussions over the next few months on the best way to fund the fire department and be in compliance with State guidelines. Kudos to everyone involved. Treasurer Oyler and Recorder Nessen and their teams have put in so many hours trying to pull this together. This is a quick summary and it is still a 100 pages. That is a small representation of all the work they do.

8. New Council Business:

a. Discussion and consideration of approving the December Warrant Register

Motion by Councilmember Holmgren to approve the December Warrant Register. Motion seconded by Councilmember Vance. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

b. Discussion and consideration of approving the December Monthly Financial Statements

Motion by Councilmember Vance to approve the December Monthly Financial Statements. Motion seconded by Councilmember Rohde. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

c. Discussion and consideration of the appointment of two Library Board Members and the dismissal of one Library Board Member

Motion by Councilmember Archibald to appoint two new library board members and dismiss one. Motion seconded by Councilmember Holmgren. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

d. Discussion and consideration of the appointment of a Planning Commission Member

Motion by Councilmember Rohde to appoint Layne Sorensen as a Planning Commission Member. Motion seconded by Councilmember Archibald. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

e. Discussion and consideration of adopting Resolution No. 20-06 waiving a portion of building-related fees and connection fees for a building permit to be issued to Habitat for Humanity for a building lot located at 316 West 400 North in Tremonton along with a request that the Tremonton City Redevelopment Agency consider using housing funds generated by the West Liberty Food EDA Project Area to pay impact fees for said building permit

Motion by Councilmember Holmgren to adopt the resolution. Motion seconded by Councilmember Seamons. Roll Call Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

f. Discussion and consideration of adopting Resolution No. 20-07 accepting a petition for annexation of certain real property, being 67.57 acres of property that comprises tax parcel numbers 05-200-0001 and 05-200-0004, and portions of tax numbers 05-200-0013 and 05-200-0018 located south of 1200 South (Rocket Road), north of Interstate 15 between 100 East and 300 West, under the provisions of Sections 10-2-403 and 10-2-405, Utah Code Annotated, 1953, as amended

Motion by Councilmember Vance to adopt the resolution accepting the petition of annexation. Motion seconded by Councilmember Archibald. Roll Call Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

g. Discussion and consideration of adopting Ordinance No. 20-01 amending Tremonton City Zoning Ordinance for Parcel No. 05-060-0083 that is 0.82 acres in size located at 60 South 480 West, from Commercial District (CD) to Residential Multi-Family (RM-16)

Councilmember Rohde said in Planning Commission there was only one person who voted against it and that was only because they were concerned about a zoning island.

Motion by Councilmember Rohde to adopt the resolution. Motion seconded by Councilmember Holmgren. Roll Call Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

9. Calendar Items and Previous Assignment

a. Review of calendar

The Utah League of Cities and Towns Conference will be April 22-24. Recorder Nessen has reserved a hotel for everyone. Training will be held on March 3, during the Council’s meeting.

b. Review of past assignment: none

10. Reports & Comments:

a. City Manager Reports and Comments: none.
b. Development Review Committee Report and Comments:

Manager Warnke said there are no new developments to update you on.

c. City Department Head Reports and Comments: none.
d. Council Reports and Comments

Councilmember Vance said Manager Warnke did a presentation for Kiwanis and the Lions Club. I appreciate you keeping everyone up to date on what is going on.

Councilmember Archibald said I am excited to work with the Library and look forward to being a part of what they are doing.

Mayor Fridal thanked the Council for their efforts, willingness to make Tremonton a better place, and the hard decisions they have to make. There are a lot of good things going on in Tremonton.

Motion by Councilmember Holmgren to move into closed session. Motion seconded by Councilmember Vance. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

The Council moved into a closed session at 7:48 p.m.

11. CLOSED SESSIONS:

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

The Council returned to open session at 8:09 p.m.

12. Adjournment.

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

The meeting adjourned at 8:09 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 18th day of February, 2020.

Linsey Nessen, City Recorder

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