TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
APRIL 7, 2020
Members Present:
Connie Archibald
Lyle Holmgren—excused
Bret Rohde
Rick Seamons
Lyle Vance
Roger Fridal, Mayor
Shawn Warnke, City Manager
Linsey Nessen, City Recorder
CITY COUNCIL WORKSHOP
Mayor Fridal called the April 7, 2020 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, and via Zoom. Those in attendance were Mayor Fridal, Councilmembers Archibald, Rohde, Seamons, and Vance, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Community Services Director Marc Christensen, Public Works Director Paul Fulgham, Police Chief Kurt Fertig, and Treasurer Sharri Oyler (left at 6:58 p.m.). Also in attendance was Finance Director Curtis Roberts. Councilmember Holmgren was excused.
1. Review Discussion of secondary water rates model and associated issues- Curtis Roberts, Finance Director and Paul Fulgham, Public Works Director
Mr. Roberts said we have presented a lot of scenarios on different rates. The Council expressed desire to understand how these secondary rates would affect the overall water revenues so I built a new model based on information from Director Fulgham. As we went through that some of the numbers did not jive. As we tried to reconcile the differences we found a problem in one of the formulas. As such the secondary water revenues were being calculated too high. We tested the formulas and realized in order to put them together the way the Council wanted, as far as the entire water system, we needed to build an improved spreadsheet considering both the secondary and culinary rates side by side to come up with a total. In turn we have to project some water rates based off of these lower revenue figures. To build a better calculation and rebuild an input sheet so we can meet the determinations and whether or not to have a base rate. We are going to be building that this week. We will work on those rates and formalize that into a model we can use to present to the Council. It will be sent for your consideration. We feel the need to pull back from this until we can build a new model and come up with ideas on how we are going to address the water rates for the entire system.
Mayor Fridal asked if there is any indication of where the rates will go. Mr. Roberts said I am not sure we will be able to keep rates where they are currently—preliminary stuff indicates there may be some increase. Director Fulgham has a really good feel for the water system and has constantly expressed this idea that there is an increase coming, it is just a matter of how we structure it. When we do this we want to make sure we get an accurate model built so the best information can be considered. Councilmember Vance asked about timing. Mr. Roberts said by Monday I hope to have something for Director Fulgham and Manager Warnke and then get it to the Council to look through, get ideas, and be ready for more discussion on April 21.
2. Discussion of secondary water rates and associated issues- Erik Richardson, Tremonton City Resident
Mr. Richardson said I am in alignment with each of you on coming to a financial solution to our culinary water issues. Over 15 years ago, Director Fulgham suggested ideas for additional sources of culinary water and has been proposing secondary solutions as well. We know that Tremonton is nearing culinary capacity during the months of July and August. The City has done their homework. To upgrade and source additional culinary water, the cost was estimated to be over $30 million. Secondary water is available from the canal and can be built out for the cost of $17 million. If Tremonton can encourage and promote secondary water usage, we can add the equivalent demand of three homes to our existing one. In 2004, a few subdivisions paid for the infrastructure during the expansion of secondary water. The City decided that the cost was too high and set aside plans to further that expansion. Today, secondary water is clearly the correct path forward. The goal of the bond and this discussion is to protect and conserve our existing culinary water supply. It is not to expand secondary water. Expanding the secondary system is the decision of the Council to protect our clean drinkable water. I support the decision to continue to grow our wonderful City.
Mr. Richardson said we all agree that dirty canal water is not the same as clean culinary water. I quote Councilmember Vance and Director Fulgham from the March 17 Council meeting. Councilmember Vance said, “Canal water is inferior to culinary water.” Director Fulgham said, “I agree with you, but the cost is not the water, it is the infrastructure.” Both are right. The current path forward will require an infrastructure investment. The burden needs to be shared by all the citizens. Again quoting Councilmember Vance, “We have got to address the fact that…secondary water has to cost less than culinary water. Period, two different rates. I feel really strong about that.” I, and the citizens of Tremonton, are not a group of individuals who can never be satisfied. Again, quoting the Council meeting. “We are never going to make the people on the hill happy—never, it is impossible.” I take offense to that. I have been trying my best to calm everyone down. I have been working through my civil channels with Director Fulgham, Mayor Fridal, Manager Warnke, and members of the City Council. I did reach out to a top law firm regarding Utah water rights for legal advice, but I did not call KSL for a news article. The reporter showed up on my door after my neighbors were frustrated and called about the lack of progress. Newspaper articles or a smear campaign was strictly forbidden by me to the neighbor prior to that call. I initially told the reporter to keep walking. I only bring that up because the comment was made. “I think we will be on KSL before we get done charging the same price [for culinary and secondary water].” I want to and have offered many times to be a resource. People ask me about secondary water rates and how the City is handling this situation. I reaffirm them that we want to pay a fair price for our secondary water usage. We should not foot the bill for everyone else during this time.
Mr. Richardson said at the last Council meeting, Councilmember Archibald asked a question that was not answered. “This gentleman on Radio Hill is leading that entire community up there…what is the comparison he is using and is it fair?” I gave a flyer to the City in August 2019. One of the cities I compared is Saratoga Springs. I chose them because of their transparency and simplicity of their rate system. Also, they provide a 48 hours notice before work is performed and will restore the installation area to its original state. I was not given either of those courtesies. The other two cities I quoted are Draper and Herriman. All three cities have significantly lower secondary water rates than Tremonton. Today the Council was going to vote on the “one water” water rate proposal. That vote cannot happen for a couple reasons. The information presented three weeks ago needs some work and no viable alternatives have been proposed. I have offered to be an asset and proposed a second option using the excel calculations. There is a solution where the bond can be funded at the desired 140-150% target. I am looking forward to those notes so I can put together and construct the numbers and do additional fact checks. The solution is not eliminating the base rate. The City is installing additional infrastructure that benefits every home, regardless of whether that home uses pressurized secondary water, a well, or dry Scape. The City is providing a service of a pressurized pipe and meter to every home and every home needs to pay a minimum base rate. It was said earlier that, “the cost is not the water, it is the infrastructure.” This is 100% correct and only charging a usage fee does not make any sense. I am excited and hopeful that we can come to a solution that makes secondary water enticing and the best solution for Tremonton and its citizens. The Council thanked Mr. Richardson for his time.
3. Presentation on the draft Business License Fee Study, prepared by Zions Public Finance, Inc. which includes fees for administrative costs, disproportionate regulatory service costs, and disproportionate service call costs- Shawn Warnke, Tremonton City Manager
Manager Warnke said several months ago we engaged Zions to do a Business License Fee Study. It is in draft form and ready for adoption. What they prepared follows requirements in the Utah code and establishes the maximum cost the City can charge for business licenses. Under Utah law, the City is allowed to charge a fee for base administrative costs—costs associated with processing and regulating a business license. The disproportionate service cost is the cost associated with a particular business and the elevated regulatory requirements associated with that. Businesses that fall into this category include those on Main Street where the City comes in and removes snow from a sidewalk. That is an enhanced level of service and could be charged as an element of their business license. We elected not to charge that and felt it was better not to evoke this element within Utah code. Administrative base costs were determined by interviewing employees who are associated with business licensing and finding out how much time they spend. Those calculations were multiplied by the compensation rate for the employee to represent the base administrative cost.
Manager Warnke said the disproportionate service analysis was similar to impact fees. They are working on our impact fees for public services. Annual assessment would occur each year the business is in operation or as inspections happen. The disproportionate service call is an annual assessment. It was calculated establishing a base level service associated with residential uses and then looked at the actual calls associated with each business type and how often they called or received police and fire services. The cost per police call equals to $111 with fire being $1,700 per service call. Businesses that have large impact and demand for police and fire services include gas and convenient stores, hotels and motels, and medical businesses like the hospital. Those businesses require more services. There is a range from less than $100 all the way to $23,000 and this study establishes the maximum fee the City can charge. Remember though that motels and hotels bring a transient room tax into the City and yields about $30,000 annually. Another analysis that was done by Zions was our Economic Development Plan, which produced the leakage study. It calculates based on our population what our level of spending should be. For gasoline, food, and beverage we have a really high capture rate. When we have less than 100% that means those dollars are leaking out into other communities. When it is greater than 100% it means we are capturing more than our population could. Those are the benefits of these businesses we have discussed.
Manager Warnke said I need direction from the Council in preparing the actual ordinance for consideration. I would not recommend we charge the maximum amount because there are benefits from these businesses that have a higher percentage of use for our public safety. However, we are in the midst of figuring out how to fund public safety—not only for the fire department, but potentially another police officer. Councilmember Seamons asked what Maverik pays annually for their business license. Manager Warnke said under this new proposal it would be $6,500 plus the actual business license itself (another $35) if you adopted this maximum rate. Recorder Nessen said convenience stores are only paying $75 a year right now for their business license. The highest we charge is for utility companies and they pay $250. Councilmember Rohde said I am not comfortable charging enormous fees for companies that give so much back to the City. I do not want to discourage a business from coming into town because our fees are higher than normal. Councilmember Vance said it would be interesting to see what the sales taxes are on these convenient stores versus what they are paying for their annual permit. Manager Warnke said these are all businesses that bring in sales tax or have a community partnership. Councilmember Rohde suggested a $550 maximum and asked how much revenue comes in from our total business licenses. Manager Warnke said about $20,000 annually and clarified that home business that do not have an impact on their neighborhood are exempt from paying a fee. Councilmember Rohde said it would be interesting to see what the variance is between the new proposals versus what we are currently bringing in to see if that warrants the change. Manager Warnke said he would gather information on the sales tax associated with each business and what the changes would be to revenue if it were adopted.
4. Review of items listed on the 7:00 p.m. agenda
The Council then went through the items on the agenda. When discussing the plat for Archibald Estates, Manager Warnke said this is a petition to vacate a subdivision that was platted and never improved. It was recorded to accommodate an LDS church site that was never constructed nor were the public improvements. The plan is to re-plat this area for residential lots. The layout for the church and current road configuration was not conducive to the new configuration so for that reason, they have come to the City to petition vacation of that plat, including the street and PUE. In my opinion, this petition meets the requirements to vacate, but there is some ambiguity as it relates to the process of getting the property back. We have consulted with the property owners and their attorneys. The City is recommending the vacation, but that is conditional upon them platting the subdivision. They plan to do that tomorrow at the DRC meeting. Their approved final plat would be recorded with the vacation simultaneously. They plan to start construction immediately. They will do a large plat that includes all the housing products—single family, townhomes, and patio homes.
The Council then discussed a professional services agreement between the City and Malone Molgard for conflict public defender services. Manager Warnke said as an operator of a justice court the City is required to provide defense for anyone who qualifies, which is provided by Attorney Chris Beins. Since we hired him, he has had some professional or personal conflicts with people who have been appointed a public defender and in those cases we have used Malone Molgard, who is fabulous. We would like to formalize him as that public defender when needed at the same rate, which has no budgetary impact because the City would pay Mr. Molgard instead of Mr. Beins depending on who is appointed.
Manager Warnke addressed the adoption of a professional services agreement between the City and Landmark Design for an Integrated Land Use Plan. He said UDOT is providing the City with $50,000 for a land use plan that integrates our Transportation Plan and other elements. We would look at the City’s existing zoning and future land uses, and zoning districts to make recommendations, as well as some park and recreation items. The total scope of work is $75,000 and the City has budgeted $25,000. The Planning Commission is the body is in charge of preparing the Land Use Plan.
5. 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 7, 2020 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 and via Zoom. Those in attendance were Mayor Fridal, Councilmembers Archibald, Rohde, Seamons, and Vance, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Community Services Director Marc Christensen, Public Works Director Paul Fulgham, and Police Chief Kurt Fertig. Also in attendance was Finance Director Curtis Roberts. Councilmember Holmgren was excused.
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 Director Fulgham.
2. Introduction of guests:
Mayor Fridal welcomed those in attendance.
3. Declaration of Conflict of Interest: none
4. Approval of Agenda:
Motion by Councilmember Archibald to approve the agenda of April 7, 2020. Motion seconded by Councilmember Seamons. Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
5. Approval of minutes – March 17, 2020
Motion by Councilmember Vance to approve the minutes of March 17, 2020. Motion seconded by Councilmember Rohde. Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
6. Public comments: Comments limited to three minutes.
There were no public comments.
7. Employee Service Award
a. 5 Year Service Award – Kirsti Christensen, Recreation Program Coordinator
The Council thanked Kirsti for her service.
8. Proclamations
a. Arbor Day – April 24, 2020
Councilmember Rohde read the Arbor Day proclamation for 2020 and then approved it.
Motion by Councilmember Rohde to adopt the Arbor Day Proclamation. Motion seconded by Councilmember Archibald. Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
Mayor Fridal called a Public Hearing to order at 7:09 p.m. to vacate a plat. There were four people in attendance.
9. Public Hearing
a. Public hearing regarding the vacation of Archibald Estates Subdivision – Plat “H”
Councilmember Archibald asked how many homes would be finished this year. Bryce Goodin said it depends how the pandemic plays out. In phase one, we are proposing 30 townhomes, 10 active adult homes and 20 single-family homes.
There were no public comments. Mayor Fridal closed the Public Hearing at 7:10 p.m.
10. City Council Business
a. Discussion and consideration of approving the February Warrant Register
Motion by Councilmember Vance to approve the February Warrant Register. Motion seconded by Councilmember Seamons. Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
b. Discussion and consideration of approving the February Monthly Financial Statements
Motion by Councilmember Seamons to approve the February Monthly Financial Statements. Motion seconded by Councilmember Rohde. Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
c. Discussion and consideration of adopting Ordinance No. 20-04 approving The Vacation of Plat Archibald Estates Subdivision – Plat “H”
Motion by Councilmember Rohde to adopt the ordinance. Motion seconded by Councilmember Vance. Roll Call Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
d. Discussion and consideration of adopting Resolution No. 20-13 approving a professional services agreement between Tremonton City and Malone Molgard for conflict public defender services
Motion by Councilmember Archibald to adopt the resolution. Motion seconded by Councilmember Seamons. Roll Call Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
e. Discussion and consideration of adopting Resolution No. 20-14 approving a professional service agreement between Tremonton City and Landmark Design for creating an Integrated Land Use Plan
Motion by Councilmember Seamons to approve the resolution. Motion seconded by Councilmember Rohde. Roll Call Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
11. Calendar Items and Previous Assignment
a. Review of calendar
The Council has no commitments at this time, but they were reminded about the City’s spring-cleaning.
b. Review of past assignment: none
12. Reports & Comments:
a. City Manager Reports and Comments
Manager Warnke said the City is going to tear down the homes on Main Street that the RDA owns on April 17. The property will then be given back to the developer for development phases per our agreement. To tear down the building and remove the debris it would cost $60,000. To burn and then remove the debris would be $30,000.
b. Development Review Committee Report and Comments
Manager Warnke gave a quick summary of these projects starting with Aspen Ridge along Rocket Road near the South Stake Center. They are proposing townhomes with amenities. The layout for the entire property includes 150 townhomes of various sizes. There are about 30 townhomes in phase one with amenities once they have a certain number of units. In the future, the development of a pump station would service this development and the annexation that is being proposed (62 acres) to the south. We are upsizing the main for secondary water so we can continue north and provide secondary water. Other upsizes are occurring with the City partnering.
Manager Warnke said the Tremonton Center Apartments has been renamed the Mathison Apartments. They are working through the process of getting entitlements. There will be 304 units with a density of 20 dwelling units per acre. They are working on the connection to 600 West, which is the newly constructed street by Crump Reese, where we plan to have the traffic light. We are working with the developer on dedicating a portion of 4th West, that right-of-way has not been perfected by way of dedication. They anticipate starting this spring and having the complex completed in two years. The connection to 6th West where phase line 1 and 2 is located shows a large parking area and green space. That connection through Micah Capener’s development into this complex will occur somewhere in that area, but the exact alignment will be based upon some of that development. We are also trying to create a pedestrian connection, providing a direct connection to the school so kids could walk through their complex instead of around. It would also take people to the shopping complex. I do need to work with some land issues as far as ownership.
Manager Warnke said Gary Madsen’s development behind his office on Main Street has received final plat approval. He is proposing townhomes (10 units) with garages fed from inside the development—not direct access onto 480 West. A sewer line runs through this property and a home is platted on top. They will replace the sewer line and encase it with flowable fill, which should prevent settling around the sewer line. This project is within the City’s CDA boundary so it is tax increment that can be captured by the RDA.
Manager Warnke said we had a conversation about the Taylor’s property with their representative. They are interested in developing the property and want to do a section of residential with commercial. It is currently zoned Commercial Highway. We have shown the planned corridor through the property. This is the extension for BR Mountain Road to the east, which is an 80-foot collector road. As individuals approach 2000 West, there would be a right hand merge to continue the free flowing movement and encourage people to use this corridor to access Main Street, which will have a traffic light.
c. City Department Head Reports and Comments: none
d. Council Reports and Comments
Councilmember Archibald said I am meeting with the library board this week. I am not sure they will have their activity after the school year because of social distancing, but I will find out.
Councilmember Rohde said Manager Zach LeFevre and I will have a conference call to get things put together for the Arts Committee and will have information for the next City Council meeting.
Mayor Fridal said Councilmember Holmgren had surgery today so pray for him. I appreciate your support, this worked quite well.
13. 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
14. Adjournment.
Motion by Councilmember Archibald to adjourn the meeting. Motion seconded by Councilmember Rohde. Vote: Councilmember Archibald – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.
The meeting adjourned at 7:34 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 21 day of April, 2020.
Linsey Nessen, City Recorder
Follow-up items for the Council and City Staff
Manager Warnke will gather information on the sales tax associated with each business.