City Council Minutes 4-3-18

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING

APRIL 3, 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 April 3, 2018 City Council Workshop to order at 5:35 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 City Recorder Nessen. The following Department Heads were also present: Public Works Director Paul Fulgham, Police Chief David Nance, Administrator Steve Bench and Treasurer Sharri Oyler. Also in attendance was Finance Director Curtis Roberts.

The following items were discussed out of order.

1. Discussion and tasks, policies, strategies, and issues surrounding the implementation of a pressurized secondary water system within Tremonton City’s incorporated limits which may include, but is not limited to:

 Construction secondary water system in various service zones/areas
 Issuance of bonds to fund the construction of secondary water systems in various service zones/areas
 Possible user rates for secondary water system
 Other matters pertaining to the deployment of pressurized secondary water system

Manager Warnke said we talked to a representative from Zion’s Bank because we have worked with them in the past, but this does not mean we have to use them going forward. We spent an hour or two and they gave us ideas on proceeding with bonding. Those in attendance to talk through the different scenarios were Manager Warnke, Councilmember Rohde, Director Fulgham, Engineer Breinholt, and Director Roberts. Director Roberts said a lot of what was presented reiterated things we already knew. We talked about the 125% debt coverage rule. If we are not using water resource or community impact bonds, the 125% is a minimum, anything in excess of that is going to help with the rate structure. Keeping the secondary water system with the culinary system fund makes sense because that is well in excess of the 125% debt coverage and we will have established cash flows. It will help smooth that transition as we develop the secondary water system. There are more reasons to keep the water systems combined then to try and split them apart. Manager Warnke said that is the current structure and we can track expenses, which is important because we still want to create a rate that covers the cost and the 125%.

Director Roberts said if we go with a bank-type lending situation the typical turnaround time is 60 days or less. These bonds most likely would not be sold out on the open market because the amount of bonds being issued are not that big. The bank would issue the bonds and then would be the actual holders rather than selling it off to other bondholders. That helps because we will not have to go through as many disclosures and it will keep some of the costs lower. We will incur some professional costs for a legal council to draw up the actual agreements, public notices, all those agreements behind the scenes and underwriting costs. They do run in the $70K to $80K range for a $10 million bond as they get everything ready. They emphasized that once we receive the bond proceeds, we need to spend it all within three years. If the construction is expected to last more than that, then we need to consider splitting the bonds and doing two separate issuances. There is a base amount of issuance that would occur so we have to be smart about how we make that split. Councilmember Vance asked if that means they issue the whole amount of money and we pay interest on it whether we are using it or not and we pay interest on the entire amount whether we use it up or not. Director Roberts said yes, in a bond situation they will issue the bond 100%. Councilmember Doutre asked if we can get it all done in three years. Director Fulgham said no, but we put a schedule together of what we could do without tearing up the whole town all at once. Area 9, which is so undeveloped, could be thrown in because it will be done by developers, in conjunction with the City. Director Roberts said that is one thing we want to City Council to look at. This three-year limit can impact which phases we decide to do and when we decide to do them. We would schedule out that bond issuance to make this feasible and minimize the amount of interest we would have to pay. As we get closer to the 125%, the next bonds could hold a higher interest rate than the first ones issued just because we are getting closer to that debt ratio and that is something we have to watch. We will argue for the best interest rates possible.

Councilmember Holmgren asked what the interest rates will be. Director Roberts said if we do a 15-year bond, they estimate the interest rate somewhere between 3% and 3.5% depending on the debt ratio. We will be extremely credit worthy, so it should be on the lower end of that. If we go for a 20-year bond, the rate could be as high as 4%. They do not suggest anything beyond 20 years. Director Roberts said we ran the 20-year with a 4% percent rate and realistically we targeted it just about right. Councilmember Reese asked if it would be better to do service areas 3 and 5 first so we have 1,100 hookups. Director Roberts said that is where we start getting the connections and cash flow so that is a strong argument for doing those areas first.

Director Fulgham discussed the charts and said the one that says 2018 is what we have currently budgeted with money we have on hand. That will give us some breathing room. We have the water shares for the first two. We will start accumulating shares and hopefully buy some too. We ought to be able to keep up with shares as we start growing the system and will be able to start collecting data on our water usage for the Canal Company. Our schedule is based on what we can do to keep the project small enough for local contractors and to spread it out over a three-year period. We picked area 3 because that is a big, dense area that will take a lot of users off culinary. We have service area 5 and will be completing services areas 1 and 2 at the same time as service area 4, with 9 being thrown in as we see fit. Councilmember Holmgren as if we could do through area 9 in that three-year period. Director Fulgham said yes, but when we start getting into the $3 million range it really takes some of our local bidders out. We are thinking of dividing it into two bid schedules so we could have two contractors doing the project in the same year. We want to keep it small enough so they do not have to up their bond and could keep other work going along with the City work. Councilmember Vance asked if the $10.9 million cost includes the cost of water. Director Fulgham said that does not include the cost of water shares. Councilmember Rohde asked if we want to do all those areas including 9 in three years. Director Fulgham said it could be done. It is a million dollar project for that area, but some of it will be developer driven. If development does not come that means we have to acquire more right of ways to get pump sites and lines in certain areas.

Councilmember Doutre asked if discussions have been had with the Canal Company about exchanging water and if anything is being done with that. Councilmember Holmgren said we met with the Canal Company and explained our project. Their big concern has to do with E.coli. As a service to them, we are going to start taking weekly samples and testing their water and reporting back to them so they know what their E.coli rates are. We will measure our water as well and give both reports so they can rest assured what we would be trading with them would be a better water quality than what is already in there. Councilmember Reese asked if their E.coli is higher than ours. Director Fulgham said yes. Councilmember Doutre said this would take a lot of pressure off of us if it works out. Councilmember Holmgren said there is just a perception that we are putting feces in their system, but it is in actuality a lot cleaner than what is already in there. Director Fulgham said the point where we would discharge into their canal, they are flowing between 115 and 150 second feet. We would be putting in three-second feet at the maximum and it will be really diluted when it hits. Councilmember Vance asked how many shares that works out to be. Councilmember Holmgren said about three-second feet times 24/7. Director Fulgham said one share is equal to three-second feet a year. This is that much in a day. It is a lot of shares when added over time. If it does not work out, we could put that water straight into our system and re-pressurize it. We explained that to them as well. Councilmember Holmgren said they seemed positive, but there is concern. Director Fulgham said we will educate them and start sampling on May 1 when the water comes into the canal.

Councilmember Rohde said he would like to see us take all the areas and get them done in three years and liked the idea of the two different bidding cycles to open it up for locals. Councilmember Doutre said we talked about the line being close to the curb, but Blaine Rupp thought it would go into the road six feet. Director Fulgham said we would tell the contractor how we want it built and they bid it to match what we want. That is more asphalt to patch, it might make it easier for him, but it is easier to patch next to the curb. Councilmember Rohde said we ought to consider metering every household—that would help us create an accurate way of charging. When asked about the cost, Director Fulgham said by the time we install the radio read meters they are around $230 to $250 then installation would be another $50. Councilmember Rohde said it would save us money if we do it now rather than going in and retrofitting it after the fact. We could set rates and people would pay for what they use, plus it would help with conservancy. Manager Warnke said we are to the point where we need to figure out the rates. We have better information with bonding and a good idea for plugins and variables. The hard part is knowing what people will use. Director Fulgham said the bonding company likes to know how much money we are going to collect every month, which is tough. Councilmember Holmgren asked if we have a base rate. Director Fulgham said we have not talked about it. We could look at a base and then a cost per gallon, which would only be metered six months out of the year.

Councilmember Vance asked if when the 125% debt coverage is figured, if we are figuring the water income coming in or do we have to do a projection on what we are going to be getting on secondary water income. Director Roberts said for everything we did internally, we used secondary water to make sure we would hit that 125%. It was designed to say we need to have revenues in this range to hit the 125%. Councilmember Vance asked if that is in addition to the water income we are already getting. Director Roberts said what the water would do is actually push us in excess of that 125% so we can try to drive that rate down. The closer to 125% the more the rate has a chance of going up. Councilmember Vance clarified that putting meters on could affect the bond. Director Roberts said this is where it comes upon us to show a base rate. If we start talking about metering, I argue we do a base rate with zero water consumption to it. That base rate is charged all the way through the year making a steady income stream year round. When it fluctuates up, we will use a projection for the water rate based on what the current water is doing. We would go to more of a usage type rate. Councilmember Reese said we should go with meters and have a base rate. Manager Warnke said we went through this conservation rate with culinary because the state legislature mandated we change our methodology and asked if that still holds true with secondary. Director Fulgham said they would still require us to have a conservation rate, but they do not have one for secondary and that is why they are pushing meters. Manager Warnke asked how confident Director Fulgham is that the meters we have will work. Director Fulgham said he is going to install and check them to see if they will handle the water quality even without moving parts. We will know after a year of running them, but hopefully will know in a few months if they will work. Councilmember Doutre asked about the $300 meter cost and how that would affect citizens. Manager Warnke clarified that those would be for new building permits—otherwise the City would install the meters. These are great ideas, but we can anticipate the rate will go up because we are adding more cost. Councilmember Vance said these numbers are fantastic and this is so easy to understand.

Manager Warnke said we will need to hold public hearings relative to the issuance of the bonds, but the public can weigh in at any point in the process. We will have a public hearing for the purpose of taking comments. There are lots of ways for the public to provide comments and feedback from now until we issue the bonds, which is the point when we would move forward. The Council agreed to organize some open houses as well to help get the information out. Manager Warnke said we are still working on gathering the information, but we are to the point where we have good direction on what the Council wants the project to look like. Now we just need to create the rate and bring it back for review. At that point we would have the public weigh in.

Councilmember Vance asked if the proposed bond will be a revenue bond. Manager Warnke said yes, not a general obligation bond so the voters will not be approving issuance of the bond, the Council would. Director Roberts said as far as a rate goes, he is guessing that on average it would be $48 per month, across the system. Manager Warnke asked if that is the base cost or the total. Director Roberts said if we charge that base then we would not have to charge any overage. The goal would be to hit $48 per month allowing it to flex up over the summer and lower for the base in the winter. Councilmember Reese asked if the rate could be adjusted if we see we are taking in too much or not enough. Director Roberts said if we do not take in enough, they will emphasize the 125% and we would have to do something.

Councilmember Rohde asked about using USDA grant money. Director Roberts said he went through the USDA website to see if they had anything specific that addressed secondary water systems and they did not. Tremonton is an eligible area, but the downside with USDA, because it is federal money, is that we would be subject to all federal rules regarding procurement and that drives the costs up. There is a higher risk in it. Councilmember Rohde said it would be worth looking into. Director Fulgham said he would contact them. Councilmember Holmgren asked if there are going to be some reciprocal pockets of money. Director Fulgham said organizations are working toward that. One is the Rural Water Association of Utah who is working with Water Resource. The governor is pushing a 50-year water plan and they need ways to fund that. He talked about a few possibilities.

Councilmember Vance asked what the next step is if we want to do this. Director Fulgham said we will get an answer from the USDA on the fundability of it and then we can hopefully have a better handle on the rates. Councilmember Holmgren asked if Engineer Breinholt would have some construction plans on any of the phases. Director Fulgham said service areas 1 and 2 are wrapping up. We should have it available to bid late this week or next and have internally funded them. They will be under construction this summer or fall and ready to turn on next spring. Service area 3 is going to be based on what we do for funding. Engineer Breinholt is working on the design. We hope to have it ready to bid in the fall or winter. The Council thanked them for all their work.

Manager Warnke said during the next City Council meeting he would like to spend some time talking about the budget, specifically the Capital Projects plan and a little time on wages and big changes. There will be a good draft budget on May 1. We are hoping to come in with insurance rates at 12%. Cigna gave us our renewal rate at 17% so we will most likely go out to bid and see what we can get on the open market. We will also be changing Fund 47. We have capital projects for wastewater treatments and that is fund 47, which was established when impact fees were adopted. Director Roberts said we were trying to keep track of how much Garland was contributing with impact fees. Manager Warnke said Garland will be doing their own wastewater treatment plant so there will be no need to do that. At this point, they have stopped paying wastewater treatment impact fees to us. We didn’t realize that until we saw we were not getting that payment. It is based on growth so we do not know when it is going to occur and be remitted to us. Garland told us they stopped paying. Councilmember Reese asked if they can do that if they are still dumping into our system. Councilmember Doutre said they have not even started their plant yet. Director Fulgham said they have not had a contract in a couple years now. Manager Warnke said we talked as a staff and it would have been nice for them to let us know they were going to stop paying, but from their perspective, they are going to be doing their own facility and impact fees are meant for future development. It is not a tremendous amount of money ($8,000 to $12,000 a year). Councilmember Reese said it is not the money, it is a responsible thing to let us know. Treasurer Oyler said I called them and they said the Mayor and their finance person said to stop paying it. Councilmember Reese asked if we are in a position to ask Garland what their plans are and when they will pull the plug. Director Fulgham said the Mayor reported next summer, 2019. They have not started construction. Councilmember Reese asked if they will not have one impact fee between now and the summer of 2019. Director Roberts said they are collecting them and keeping them for their selves to fund their building. We want to get rid of Fund 47 and consolidate it down to fund 52. There is no reason to keep that separate accounting. Manager Warnke said Garland is walking away, but they never really had a claim on the assets, it was always our Treatment Plant.

2. Land Use Authority Board Report

a. Status report of applications being processed by the Land Use Authority

Administrator Bench said this is a brief summary of what is transpiring in the City with development. From time to time, the Land Use Board will come to the City Council and give this style of report. Holmgren East Phase 7 has river lots that Councilmember Holmgren is developing north and east of the new trail and restroom facility. There are about 12 lots. We are at the preliminary stage right now going to Planning Commission on April 10 for review.

The next one is Garfield Subdivision Phase 3 on 1150 East. It has been approved, however, at the request of the developer, we will not record anything until May for tax reasons. With most subdivisions, even though they are at preliminary, if they have been approved, we have allowed contractors to start infrastructure.

The next one is Marc Allred’s business office on 8th West and 68 South, just south of the one he currently has. He will build another one similar to it in the vacant parcel. It will be set back into the property with a parking lot out front. Councilmember Holmgren said parking was always an issue with the first one. Administrator Bench said Marc Allred is doing some final site plan drawings and will present them shortly.

The one that has been resurrected is the Look Out Point Subdivision on the hill. That was done and recorded by Kelly Harris and Norm Fukui years ago. A few years ago we wanted to vacate those that never got developed and we did sign an agreement with them saying that if they wanted to keep it in play for the future that when they started again they would meet the current standards. We talked with the engineer and he is updating the drawing to reflect the current standards and they will present for approval shortly. Councilmember Doutre asked about the road, which will become a four-way intersection and the retention pond will be split in half there and increased in size on the south side of the road.

Administrator Bench said for Tremont Center Phase 4, we did a concept review on March 28 and the preliminary is scheduled for April 11. It will go to the Planning Commission from there. This is the west end. The street will line up with the one across the street at 650 West.

Tremonton Pines Four-plex Subdivision Phase 2 has been approved, we are just finalizing all the documents. There are some easements going both directions. We need to supply a right of way to cross their trail and they need to supply a deed for a remainder parcel of property to the City. We are waiting for them to sign the development agreement, but they have started. Manager Warnke asked if they have started the canal crossing. Director Fulgham said they are getting the infrastructure and roadway dug down but did not know if they have the box being built, but they are working on it. That is where the crossing will be and just north of that one when they go to tie into the other road there is a small parcel that butts up against the existing drainage pond that they are going to deed over to the City. We will plant grass for a park like atmosphere and a site for one of the pump stations (service area 3). Councilmember Holmgren asked who is paying for the bridge. Director Fulgham said the developer is. Administrator Bench said to develop the second half, the code required another access. Director Fulgham said and because none of the other roads meet our standards, we did not want to inherit a bridge that went to roadways that did not meet our standards so we made sure they kept it private. They will run a line across that bridge that will feed secondary into that whole development. Councilmember Reese asked how we know we will never be asked to take it over and how many private roads should be continued to be approved. Manager Warnke said we do not know. We have a lot of private roads. We do private drives for purpose of flag lots and minor subdivisions and that is sort of the issue. That is a good question to ask if we want to continue to allow those.

Administrator Bench said the next is Aspen Grove RV Park at 700 West Main. We have worked on this one for a while because the owner lives in California. He has the development agreement to sign and his engineer is finalizing a final site plan. It should be ready for final approval soon. Manager Warnke said some of the roads have been reconfigured. Administrator Bench said the road going north and south in the center stays a primary road. There are 52 spaces that are all over 80 feet long. They have grass spots and trees, but the pads will be concrete. Councilmember Holmgren asked if the County still has plans to do anything like this at the fairgrounds. Administrator Bench said he heard they wanted to do something, but have not seen them come forward. This RV Park will meet some of that demand.

The Sorensen Subdivision is where the school district was going to build an elementary school north of McDonalds. That has been approved, recorded and is in the process of being developed, however, the district has put the school on an indefinite hold. The subdivision will go in and is owned by Chris Sorensen. The school district is the developer, but Mr. Sorensen is going to benefit from the subdivision. The school will keep eight to 10 acres for a school site in the future, but there are no plans to build right now. Director Fulgham said they would do the development in exchange for some of the property. It is well underway—they will lay asphalt this summer.

Administrator Bench said the last one is Crossroads Ranch at 1200 East Main on the north side of the road. We have seen the initial annexation for that, but we have not seen any site plans. We did work on some amendments to the mixed-use chapter to accommodate development in the future. He showed the location and said it is 60 acres. They will do a mix of single family, twin style homes, commercial on Main Street, and in the center of it they are planning on a decent sized park. Manager Warnke said it would be public park space. The Capital Parks plan shows and identifies a more regional park there. The developer is willing to do some advance funding as long as there is a mechanism to repay him in a timely way. Councilmember Reese asked if we would have to pay for the park property. Manager Warnke said eventually we would pay for everything. Some of it would be generated from impact fees within the area, but that is not sufficient to repay for the park improvements. It is just a concept we are exploring. We need to figure it out fairly quickly so they can move forward if it is intriguing to the Council. Councilmember Reese said if it is on our dime and it is only going to accommodate that neighborhood, we should look into it a little different. Manager Warnke said it would be 13 to 14 acres and would be bigger than any park we have. It is for the public and they could add some ball diamonds. Councilmember Doutre said we have been told that permits for 81 homes have been approved. Administrator Bench said that was last year. It is the first of April and we are at 20 homes already. We are on task to do at least 80 this year too.

Councilmember Reese said there is a bit of concern with the Land Use Authority Board and the City Council. This is the first time we have ever been told of all these things. We will drive through town and see this stuff come up and people will ask what is going on and we do not have a clue. It was suggested that a Councilmember serve on the Land Use Authority Board and that person could report back to the Council because the information is not getting to us. Manager Warnke agreed that the Council has not been informed and this is in part why we thought we would try this. Councilmember Reese agreed, but said that is probably two years worth of information. Councilmember Holmgren said that is pretty current information. Councilmember Reese asked how the Council knows anything if we are not getting fed the information. This is the first time Land Use has been on the agenda. Manager Warnke said we agree there is an issue and that is why we are trying to move forward with this format. If it does not work, we can do something different. Councilmember Vance asked Administrator Bench if he is going to be coming to these meetings on a regular basis. Administrator Bench said he would not come back every week, just as new things happen or if there are some site plans we are having issues with or things for the Council’s review. Mayor Fridal said even if it is a non-issue, just keeping the Council informed would take the pressure off. Councilmember Rohde said this information was awesome and wants to make sure the developers feel like they are being treated equal and fair. Some of the developers who have talked to him have felt it has been a struggle working with the Land Use Board. Manager Warnke said what we are trying to do is have a conversation and keep the Council informed. We can refine the process and change the Code—there are lots of things we can do to make sure the Council feels comfortable with the way it is proceeding. The Land Use Authority Board is a real efficient way to operate, but at the expense that the Council has not been given the information and that is what needs to change. If we need to refine it even further we can. There is a lot of good that comes from the Land Use Board and we want to make sure the Council feels the same way. A Councilmember could be added, items can be called up to the City Council agenda, or the Council could reserve the right to be the final Land Use Board. Councilmember Reese said it was developed to speed things up. Developers did not want to wait every two weeks, but it should not be a secret to know what is going on either. Manager Warnke asked if the Council like this approach. The Council agreed they did. Mayor Fridal said this is a step in the right direction—we need to move forward and see how it works. Councilmember Rohde is on the Planning Commission and said even he learned a ton here tonight and feels informed. Manager Warnke said we will come to the Council with a summary and have a conversation. If the Council wants a deeper drive, they should be receiving the agendas and minutes as well so they know what is going on and can attend. If there is a problem or concern, we want to know about it. Part of the reason we never brought it forward is because we did not hear any feedback.

3. Discussion of Capital Projects and other matters to be included in the FY 2019 Budget

4. 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 6:54 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the April 3, 2018 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: Public Works Director Paul Fulgham, Police Chief David Nance, Administrator Bench, 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 Chief Nance 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 Rohde to approve the agenda of April 3, 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 – March 6, 2018

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

5. Proclamations:

a. Arbor Day – April 27, 2018

Mayor Fridal read the proclamation encouraging the observation of Arbor Day.

Motion by Councilmember Reese to approve Arbor Day and have Mayor Fridal sign the proclamation. Motion seconded by Councilmember Holmgren. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

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

Director Roberts commended the City Council for the efforts they have made in studying the secondary water issue. I know it is going to be a big source of public discussion coming up. There has been so much discussion that has happened over the past year and some of it gets forgotten. I recommend the City Council direct somebody to start putting together a history—one-page document you can address showing how much effort the City Council has put into these discussions, something you would be able to quickly refer to and hand out to people so they understand this is not on a whim. This has been a ton of the City’s time and Director Fulgham has put in a decade of effort into this. Simplifying that information into a one-page handout to quickly communicate with citizens as they have concerns about the project. They do not attend and see all the behind the scenes discussions that are being had. The banks and engineers as we discuss various alternatives and how many times the plan has been revised. That is my encouragement to develop the history, making it short, simple and easy to understand to help you identify the complexity of what the study has gone through.

Resident Mike Ransom brought in a $1.25 filter that can be put over a garbage disposal. When I scrape off dishes I tap this into the garbage can and it keeps it from going down the drain. If you offered it to the people who are using water in your City, they maybe would go for it. I suggest selling it to them for $1.25 and they will use it. Councilmember Doutre said I think they have them out to the dollar store. Councilmember Reese asked what it does. Mr. Ransom said it catches all the loose food off your dishes. The Council said it is a good idea and they could at least recommend it. Mr. Ransom said it will not stop the grease or oil, but it does take the vegetable matter out of the sewer system.

7. New Council Business:

a. Discussion and consideration of approving January Financial Statements

Motion by Councilmember Holmgren to approve the January 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 approving February Financial Statements

Motion by Councilmember Vance to approve the February Financial Statements. 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 Resolution No. 18-13 approving the Stokes Warner Subdivision Development Agreement

Manager Warnke said this is a template subdivision development agreement. At the end of every subdivision the development agreements come to the Council, who is the final approval authority. However, the Council has granted some ability for the standard template, which was approved in the past, to be used to record ahead of it coming to the Council. This will help with the timing of getting something recorded. This subdivision development agreement followed that template. There was nothing unusual. The template language has already been approved so the only thing that is going to be real specific to a subdivision can be found in the special conditions section. All of them are things the developers has done or will do in the future. This agreement discusses the extension of 2000 West, the collector road, which they will connect to when that is constructed in the future. Councilmember Reese asked on Exhibit B of the agreement, the developer brought in $99,000 for the offsite sewer—was that part that he put in or was there a concern. Manager Warnke said that is the engineer’s estimate that he constructed ahead of recording the subdivision so there was no bond placed for it. This has been recorded under that provision the current Land Use Code that allows it.

Motion by Councilmember Reese to adopt the resolution. 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.

d. Discussion and consideration of adopting Resolution No. 18-14 approving the Tremonton Pines, Phase 2 Subdivision Development Agreement

Manager Warnke referred the Council to the special conditions section. He talked about the private and public improvements, saying we are making clear what they are going to include in their escrow fund. Some are private, but we think there is a legitimate reason to have them bond for those public improvements. They have already turned over the water shares relative to the new exaction requirement. Administrator Bench mentioned that the remaining parcel, which is next to the City’s storm drain basin in Chadaz will be dedicated to the City. Manager Warnke said we talked about it being a private road, but there is some benefit to the project and potentially the surrounding area to have the waterline loop. In the future, if there were a waterline constructed, we will connect to that line within the subdivision so if there is ever a service interruption we can isolate and minimize the break and service outage. We have been talking to them about secondary water and they will make sure there is no occupancy until the secondary distribution lines are in place and charged. Fee in lieu for chip seal and fog coat are a requirement ($3,000) as well as streetlights ($1,500 each).

Motion by Councilmember Reese to adopt the resolution. 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. 18-15 approving the terms and conditions of a City Manager Agreement

Manager Warnke said the language in the agreement has not changed except for one specific area where it talks about a specific amount for car allowance that he receives. Instead of calling out a specific amount, it was changed to be generic language so it stays current all the time. Each year it changes with a cost of living increase. This is for another five year term, which is a standard term.

Motion by Councilmember Doutre 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.

f. Discussion and consideration of approving Resolution No. 18-16 reaffirming, amending, and enacting new fees and fines in a schedule entitled Tremonton City Consolidated Fees and Fines Schedule including, but not limited to, a variety of minor amendments

Manager Warnke said these are all housekeeping items. There are no proposed increases in any fees specifically. One of the changes to point out is that we adopted a wastewater treatment impact fee through an ordinance, which is required by State Code. We have to adopt it by ordinance so all that language has been removed out of this resolution and as we administer the ordinance, we refer back to the ordinance itself rather than having something in a resolution. Mayor Fridal asked if we passed an ordinance on this. Manager Warnke said an ordinance was passed at the beginning of January and the State Code prohibits the actual enactment sooner than 90 days. We have that waiting period after we adopt it. We just started charging the new impact fee rate on Monday. The City set up an increase to wastewater treatment fees, but we just finished the last increase in that phase plan so all the language relative to that has been removed in this fee schedule. There was one change where the State Code increased the limits for small claims.

Motion by Councilmember Holmgren to approve the resolution. Motion seconded by Councilmember Vance. 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 approving Ordinance No. 18-04 amending Title I, Zoning Ordinance of the Tremonton City Corporation Land Use Code, Chapter 1.16, Overlay Zones, Tremont Center Mixed Use Overlay Zone

Manager Warnke said the Planning Commission has reviewed and made a recommendation to approve. There is a specific zone for the Tremont Center (40 acre parcel), but developers Capener and Losee have requested an expanded list of land uses within that commercial piece of property. Those include automobile sales and service, multi-family attached dwelling, dry cleaning drop off, carwash, and automobile fuel center. There is a supplemental regulation as it relates to automobile fuel centers in our code—chapter 19. If there ever were an automobile fuel center there, there would be some additional regulations that we would look at relative to the development of that specific land use. Otherwise, all of these would be a permitted land use, not conditional use. There would be no additional review needed for that land use, it is an absolute based on the Council’s approval of this ordinance.

Motion by Councilmember Rohde to adopt the resolution as it has been stated by the Planning Commission. Motion seconded by Councilmember Vance. Roll Call Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved. Councilmember Reese declared a conflict.

h. Discussion and consideration to surplus Patrol Car T43 – a 2011 Dodge Charger (VIN # 2B3CL1CT4BH589036 mileage 78,000)

Councilmember Doutre asked if this is the last of the Chargers. Chief Nance said yes, this vehicle was replaced last July and we have been using it as a spare vehicle for the part-time officers. It recently developed a nasty noise and parts are going again. It will cost $3,600 to fix it and it is not worth that much so we would like to surplus it. Most of the Chargers we have had in the past have had a similar problem and we have been able to sell them for fairly good money. Mayor Fridal asked how much it is worth. Chief Nance said $3,000 to $5,000 even with the issues. Councilmember Rohde asked if those who are buying are well aware of the noise and that things need to be replaced. Chief Nance said yes, on the posting we send out we indicated what we know is wrong with it. Most of those interested are people who are buying and doing the repairs themselves. Mayor Fridal asked about keeping a vehicle around for trips to Salt Lake City and other meetings and trainings. Chief Nance said the Department does have an impala used for that.

Motion by Councilmember Holmgren to surplus the stated patrol car. Motion seconded by Councilmember Rohde. 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 told the Council about a meeting on April 4. Intertape Polymer recently achieved Silver Status. They also received a prestigious award for manufacturing. They will now work toward a Gold Status. He then reminded the Council of the Utah League of Cities and Towns Conference, as well as the Reading Kickoff in June. Recorder Nessen will send the hotel information.

b. Review of past assignment

Manager Warnke said Engineer Breinholt is designing service areas 3 through 5, starting with 3. We are working with the Canal Company to swap water from the Wastewater Treatment Plant. We have reconciled some of the numbers between BRAG and the engineer, which is in the packet. We are closer, but there is still a difference, but if we are moving toward meters and away from charging based on lot size then this is not as timely.

9. Reports & Comments:

a. City Manager Reports and Comments

1. Proposed cellular site for Verizon to be located at approximately 125 South 100 West

Manager Warnke spoke previously about Verizon’s interest in putting a cellular tower at the Civic Center. We have the UTOPIA cabinet just south of the Police Station, by the car-port and dumpster pad. They have propose putting the tower between the dumpster and UTOPIA cabinet. It would have lights so there would be some utility to the pole besides the cellular service provided. Councilmember Rohde asked what the revenue will be on that. Manager Warnke said about $3,000 per year. It is proposed that we use that money to help fund the arts, which is also proposed with the billboard ground leases. We could use those funds to beautify the City. Manager Warnke asked if he should continue in this process with Verizon and the Council told him yes.

2. If needed, discussion of Capital Projects and other matters to be included in the FY 2019 Budget

Manager Warnke said we are still working on this and will bring that to the next City Council meeting.

b. City Department Head Reports and Comments

No Department Head reports or comments.

c. Council Reports and Comments

Councilmember Rohde said he has met with Manager Warnke and Director Christensen every week to talk about the vision, mission statement and values for the City. We have had great discussion and are moving forward. He feels very good about where we are headed and will come to the Council as soon as we have something to present. They meet Mondays at 10 a.m., if anyone is interested in participating.

Councilmember Holmgren said we had our first Arts Soiree at the fairgrounds. We had quite a few artists bring in their work and all kinds of art. We had a great turn-out, great ideas and great speakers. The next big thing will be the chalk art right after school gets out. We will also do a Plein Air event, where artists complete a landscape in a certain amount of time. It is also that time of year to start thinking about flowerpots.

Councilmember Reese thanked Director Fulgham and Director Roberts. We have put you through the ringer, but we have to have something to back us up. We are getting ready and I appreciate it. We have to do something like the one page handout to be ready for that—I think it is a good idea.

Councilmember Doutre said a few Councilmembers met with BRAG last week, which was very insightful. They said we need a lot more housing in our town, which surprised me. We have a shortage of 400 homes in Northern Box Elder County. They had a lot of good things to say about our workforce and working with our City.

Councilmember Vance asked who would make the one page history as suggested by Director Roberts. Manager Warnke said he would. Councilmember Vance talked about a trip he took outside the U.S. and how they were warned everyday not to drink the water, open their mouths in the shower, or eat anything that had been washed with water. He said it is nice to be able to turn a faucet on and not have to worry about any of that here. We are blessed to live in this community and kudos to everyone in Tremonton City who keeps track of the water.

Mayor Fridal talked about the trip with Councilmember Vance and said they visited some fancy ruins with advanced people, who faded away. Their downfall was deforesting their countryside and mismanaging their water. It makes you realize we have a huge responsibility in Tremonton to not only take care of the water, but the sewer. We have a big responsibility for a lot of people and I appreciate the Council and the job they do.

Motion by Councilmember Doutre to move into closed session. Motion seconded by Councilmember 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 7:40 p.m.

10. CLOSED SESSIONS:

Motion by Councilmember Rohde 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 8:00 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 8:01 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 17th day of April, 2018.

Linsey Nessen, City Recorder

Follow-up items for the Council and City Staff

Manager Warnke will put together a one-page history with information for the Council on secondary water. The Council and City Staff will start thinking about public hearings and open houses.

Director Fulgham will contact the USDA to see if they qualify for any of their grant money. He, along with Manager Warnke and Director Roberts will work on creating a rate.

Councilmember Rohde, Manager Warnke and Director Christensen will continue to work on the mission statement and values. Councilmembers are welcome to attend their meetings on Mondays at 10 a.m.

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