City Council Minutes 5-18-21

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
MAY 18, 2021

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

CITY COUNCIL WORKSHOP

Mayor Fridal called the May 18, 2021 City Council Workshop to order at 5:33 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 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 (arrived at 5:37 p.m.).

1. Review Discussion of increasing property tax for tax year 2022 to fund Fire/EMS Department operations

Manager Warnke said we started this process for staffing last year as a result of a fire department study. That study found that 50% of the hours worked by employees were in their 50s and 60s, while the average age of the EMT employees with the most hours was 58. From 2007-2019 there has been a 67% increase in EMS call volume. About 8% of the EMTs have expressed there is a problem and 80% said they were either giving all they can or would like to give more, but could not.

In fiscal year 2021 we debated what to do and staff suggested nine full-time firefighters working a three-person crew with the second call being paid on-call firefighters. It was suggested we raise property taxes in order to fund that staffing plan, but instead we came up with several objectives that have worked well to this point. Part of that was hiring a full-time fire chief, who has done an exceptional job and moved the fire department in a positive direction. We also discussed general and fire funds expenses and revenues, and what we could do in-house to manage that more effectively. Through that process we have realized some savings and resources to fund fire staff. We have also applied for an EMS grant. Chief LaCroix has done a great job submitting for grants and looked at ways to realize revenue for services provided. For the General Fund we can increase the amount of revenue to pass to the fire department. The business license fee that was adopted included a disproportionate call for fire responses and that portion will go to the Fire Fund. The transient room tax will also be transferred there.

Manager Warnke suggested some short-term gains at the expense of long-term benefits. These are expenses that really build a community or organizational culture. Councilmember Rohde said these are essential and I have no interest in cutting any of these. All we are asking for is where can we find waste. Councilmember Vance said we need to look at the whole budget and if everyone could cut back 2% that is the type of money we are talking about. Councilmember Rohde said more of an incentive program for employees to find ways to save. Chief LaCroix did a good job at finding waste and eliminating it. That is where I am headed.

Manager Warnke then discussed their call volume for fire and EMS. By 2025 we will be up to the high 1,400s. That could jump based on growth. Fire responses are a little more sporadic from one year to another, but they are trending up. They average four EMS calls per day. When comparing communities similar to Tremonton, we are the only department that does not have full-time firefighters. In the last meeting we proposed a new staffing plan, which would include six full-time fire fighters working 24/7, 365 days a year, which would be two full-time fire fighters, and one part-time to make it a three person crew. There would be three shifts during those 24-hour days. That cost is $561,000. The second call would be paid on-call fire fighters like we have done in the past. To fund that type of staffing, we would propose a property tax increase of 21%. We would also look into getting contracts with surrounding cities. That increase would equate to about $70 per home (valued at $250,000).

Manager Warnke then reviewed the areas in which the fire and EMS respond and what cities are given service. He gave an overview of the Fire Fund revenues versus expenses. The EMS Fund is making some money while the Fire Fund is not. The Fire Fund would be a perfect candidate for property tax revenue because it is related to public safety and protection of property. Councilmember Vance said it sounds like we should get rid of our EMS service because it is costing us money. We should get our EMS service from a private source for less than hiring full-time firefighters. Manager Warnke said every city is required to provide EMS as an essential service and contracting is certainly an option. If you think that is the best way to provide service you could. Someone would need to step up, but no one is. Tremonton does not charge for fires, but instead contracts with cities through inter-governmental contracts. The City’s hard costs are about $217,000 with additional soft costs. For our contracts with the County and Elwood we charge them a hard cost meant to bear their portion of that $217,000 based on their dwelling units in the service area we have. We think we are going outside our boundary on a consistent basis so we need to talk to the County about increasing that. These contracts are not paying the bills, but are nice to have.

We are in a similar situation with the Senior Center and are looking into contracts that would have everyone bear the burden of the shortfall. We could do this for EMS, too. As part of the impact fee study, Zions will map all the calls for EMS and fire to see where we are responding and how much. For the Senior Center we looked at a three-year actual average for total expense and total revenue. There were $370,000 in expense and $165,000 in revenue for a shortfall of $204,000. We then looked at what the areas receiving services based on the number of seniors participating in the program. Some are participating in their shortfall while other cities are not. Only 40% of seniors who participate in this program are Tremonton residents.

Councilmember Vance said we want to do the most benevolent thing, but we are talking about increasing real estate taxes to those who live within Tremonton’s boundaries because our budget will not cover the things we need to. We are raising our constituents’ taxes up, but giving all these services to everyone around us. That is not right for those who are paying for it at the expense of wanting to be nice. Manager Warnke said I think it is going to take a lot of time to get people to participate and be on board with an EMS bill. We should not hang our density on these partners for financial participation in providing services. We still need to have the conversations and press them on the issue, but it will not happen in the next few months. We would use this same methodology to find out the operational shortfall for EMS and then assess a cost per home for those services. Councilmember Vance said we ought to let sales tax pay for the $500,000 increase. Manager Warnke said you could. Our sales tax numbers continue to do better, plus we have a surplus at the end of each year that is shifted to the Capital Projects Fund, Capital Equipment and Vehicle Fund, and the Transportation Fund. We have also moved money to the downtown RDA Fund for streetscape improvements and beautifying downtown. Instead of putting that surplus in there we could put it in the fire fund, but then you are missing out on other projects. At some point our vehicles are going to wear out and we will need to do transportation projects. Councilmember Holmgren said the sales tax is unpredictable. It looks good now, but a downturn in the economy could change things.

Councilmember Rohde said if we get that grant we could strategically lay this out a little bit slower to fully fund that within three years without as high of a property tax increase. If we get the grant and use sales taxes to help fund some of that it should reduce the amount of real estate tax. We should only ask for what we need. Councilmember Vance said it seems we all agreed we need six firefighters, but we need to figure out how to fund it. The only thing up for discussion here is the approach of where we are going to get the money. Mayor Fridal said the problem is unavoidable and there is not a great way to finance it, but we cannot keep putting the problem off. We need to do things to decrease the cost, but there is a problem that needs to be dealt with as soon as possible. Councilmember Rohde said we are all in agreement of moving forward it is just how much of an increase do we do. Manager Warnke said City staff would go back through the budget to figure out the lowest amount of property tax needed. The Council agreed to continue the conversation at their next meeting.

The following items were discussed during City Council, not the Work Session.

2. Discussion of health insurance carriers and defining the City’s health insurance employee benefits for Fiscal Year 2022

Manager Warnke said we have a renewal from Cigna, but the hard part about this option is the cost. The other option is having employees who work less than 30 hours be on a self-insured plan. They originally suggested a 27% increase, but agreed to drop that down to 19%. That equates to $143,000 additional dollars to get the same coverage. We did budget for a 15% increase. This was a big jump in one year. For the next option we would save money, but that is because we would be moving to a different product. With Select Health there are two types of health plans—the Gold Med, which has a larger network, or the Value product with a smaller network. The City could save $80,000 going with the more robust network or $152,000 with the Value plan. The City could offer the Value plan and allow employees to buy up and go with the more robust network. This does separate the City Council and Mayor if we do not go with Cigna. They would go to the exchange or be on Medicare. The City would provide the Council with a stipend so you would have an equivalent amount. The Council discussed their different quotes and how this would affect them. Instead of being given a “one size fits all” stipend, the Council suggested having the City provide the actual amounts to cover the difference since going with a different plan would save a lot of money. Councilmember Rohde said I only want to take what I need, not more. I want to save as much money as we can. We owe that to the City. The Council further discussed HSA plans and deductibles. Councilmember Archibald suggested the City provide the Value plan to its employees with an option to buy up. Manager Warnke asked the Council to each get a quote so they knew what their stipend would be.

3. Review of Impact Fee Facilities Plan for Transportation System, Sanitary Sewer Collection System, Storm Drain System, and Water System

4. Discussion of City Councilmember Assignments

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

6. CLOSED SESSIONS: No closed session 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 6:53 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the May 18, 2021 City Council Meeting to order at 7:03 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 City Recorder Nessen. The following Department Heads were also present: Community Services Director Marc Christensen, Public Works Director Paul Fulgham (left at 8:23), and Police Chief Kurt Fertig.

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 Recorder Nessen and the Pledge of Allegiance was led by Director Christensen.

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 May 18, 2021. 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 – May 4, 2021

Motion by Councilmember Archibald to approve the minutes of May 4, 2021. 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: There were no public comments.

7. City Council Business

a. Discussion and consideration of approving April Financial Statements

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

b. Discussion and consideration of approving April Warrant Register

Motion by Councilmember Archibald to approve the April Warrant Register. 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 authorizing Horrocks Engineering and Zions Public Finance to formalize an Impact Fee Facilities Plan (IFFP) and Impact Fee Analysis (IFA) for a Transportation Impact Fee

Manager Warnke gave an overview of the impact fee facilities plans and who is responsible for preparing those. The Impact Fee Facility Plan (IFFP) is prepared by engineers who look at the capital projects we anticipate doing in a 10 year period. They also look at the types of capital projects we have done in the past that add capacity to our utility system in which there is capacity left. Jones and Associates has been contracted to do the IFFP for water, sewer, and storm drain. They have forwarded the plans to Zions who does the impact fee analysis. They will break it down into what that cost would be for these upcoming projects along with the additional capacity we are trying to accrue. Horrocks Engineers did the Transportation Master Plan two years ago. We engaged them to create this project list with City staff’s help and Zions did the financial analysis. They determined a project list, transportation master plan, and the project costs. This also gives a glimpse of the total project cost and cost of eligible impact fees. At some point, the City decides we need to increase road capacity and the 10-year volume is what becomes impact fee eligible during that period. Pass through traffic is never impact fee eligible. There is also future roadway capacity outside the 10-year period that is not impact fee eligible in that time, but is in the future.

We have to spend the money upfront because impact fees will not collect all the money that is needed to build the road. We would get paid back over time through buy-in that occurs in future impact fee collection periods. The City can only collect impact fees associated with a percentage of the capacity that will be used during that period. The Council discussed the different projects. Manager Warnke said we can prioritize the list, but in the end we have to be flexible enough to meet the demands as growth occurs. We have to allocate our surplus to these types of projects.

Motion by Councilmember Holmgren to authorize the formalization of these plans. Motion seconded by Councilmember Vance. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

d. Discussion and consideration of approving Ordinance No. 21-06 amending various sections of the Tremonton City Land Use Code

Manager Warnke said City staff keeps track of amendments that need to occur in the code. The State law has changed as it relates to the appeals process when someone appeals the decision of the land use authority. We had multiple appeal processes, but the State legislature decided there is only one process that needs to occur on the local level before someone goes to District Court. We amended the code to reflect that. We also have code for fencing along canal corridors and this emphasizes the same standards apply to railroad corridors as well. For municipal easements, we always had public utility easements (PUE) for utilities. However, the definition of what a public utility is excludes municipal utilities so we changed the language to include those we own for that easement. There is also a more definitive detail of what needs to be included in a geo tech report. We have required this in the past, this just give more detail on what is required. This helps with long-term issues and makes sure things are done right the first time.

Motion by Councilmember Archibald to approve the ordinance. 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.

e. Discussion and consideration of adopting Ordinance No. 21-07 granting an electric utility franchise and general utility easement to Rocky Mountain Power

Manager Warnke said this is a common practice where utility providers want a franchise agreement with the City that governs how that utility exists within our right-of-ways. Most of it is what you would expect. The primary issue for the City as far as importance is asking them to relocate their facilities when we need them for municipal projects. We spent quite a bit of time discussing that issue and come up with language we were comfortable with. Rocky Mountain Power was gracious enough to go ahead with pre-approved projects we need to have them relocate their electrical facilities. The others will be approved on a case-by-case basis.

Motion by Councilmember Vance to adopt the ordinance. 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. 21-19 expressing gratitude to the Bear River Canal Company for being included in the PL-566 grant application and acknowledging the Bear River Canal Company’s modified timeline to construct the secondary water equalization basin

Director Fulgham said the grant would cover the cost ($272,000). They want us to participate because it makes the grant application look better that is why they gave us an extension. It will push back a couple years and they are okay with one holding pond.

Motion by Councilmember Archibald to approve 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.

g. Discussion and consideration of adopting Resolution No. 21-20 ratifying the Magnolia Lane Subdivision Development Agreement

Manager Warnke said this is a four-lot subdivision on the end of Tremont Street and 6th North. Under Special Conditions, it includes transferring half a water share, which they have done. There is an existing house that will be demolished, they are required to contact UTOPIA, and there is a fee in lieu for chip seal ($1000). They are also dedicating a portion of 6th North to complete the right-of-way.

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

h. Discussion and consideration of appointing a Library Board Member

Councilmember Archibald said Diane Francom has moved so Alysia Chapman is proposed to replace her on the Library Board.

Motion by Councilmember Archibald to approve the appointment of Alysia Chapman. Motion seconded by Councilmember Rohde. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

8. Calendar Items and Previous Assignment

a. Review of calendar

Manager Warnke said the municipal election is approaching so you need to consider if you want to run again. The Mugs and Bananas event will be on June 5. The Arts Festival is June 26, and Hay Days will be July 23-24. Director Christensen reminded the Council of the Memorial Day Ceremony at the cemetery. Councilmember Holmgren said the arts committee would unveil the gold star statue by Artist Doug Adams as well as another at the Library.

b. Review of past assignment: None.

9. Reports & Comments:

a. City Manager Reports and Comments

1. Current capacity in the Culinary Water System

Director Fulgham said there are three things to consider: the peak day supply with the State required 10% buffer between actual peak day and what we have in the system, as well as storage and water rights. Storage and water rights we have no issues with. We have plenty of capacity. We have 2,200 ERCs available on storage and for water rights we have 1200 ERUs available. The peak day supply is the issue we have been focusing on and nearing capacity. In 2021 it is trending down. We have 390 ERCs that are available for our physical capacity, but we are negative 56 as it relates to that State standard of having the 10% surplus. We will continue to monitor that. The downturn is because of secondary development. That down turn might come up a bit with building permits, but we are still going down.

Manager Warnke brought up economic development. He said one thing that undermines our economic potential is what occurs right outside our City boundaries and how that land is developed. It limits our potential to annex property and can affect our planning for both land use and transportation perspectives. We can get uses that undervalue the potential of property and become problematic for us to service. He gave a few examples of recent and proposed development that has affected this. We need to reach out to the County Commission and coordinate land uses and development requirements. We will talk more about economic development strategies and how the Council can best participate.

b. Development Review Committee Report and Comments

1. Review and update of proposed developments

Manager Warnke said there is a lot of land being considered for some type of development. We need to improve our annexation plan and better understand the cost and infrastructure needed.

c. City Department Head Reports and Comments

1. Public outreach regarding secondary water construction during 2021- Paul Fulgham, Public Works Director
2. Second notice encouraging residents within Service Area 3 to connect to the City’s secondary water system- Paul Fulgham, Public Works Director
3. Update on the construction, change orders, or construction cost increases for Service Area 5

Director Fulgham said the first letter is a secondary notice to those who live in Service Area 3 that this is the last year they have to sign up. It talks about the new rates if they sign up and what they are if they do not sign up. The next letter goes out to those in service areas 2, 4, and 5 stating what they can expect and to contact the City with questions. With the cost of material and inflation I have created a spreadsheet to give the Council on a monthly basis so you can see what we bid and what the invoice shows. We have to do the project and know it will cost more because of inflation, but hopefully it will calm down.

d. Council Reports and Comments

Councilmember Seamons brought up a concern about a house on Tremont Street that has cars out front and around back. Chief Fertig said they are addressing the issue.

Councilmember Holmgren said volunteers are welcome to help add plants to pots, which will then be placed along Main Street on Thursday by Public Works.

Councilmember Archibald brought up concerns about big chunks of cement left at one of the parks and children playing on them. She also reminded the Council of the Library’s summer kick-off on June 4.

Motion by Councilmember Vance to move into closed session. Motion seconded by Councilmember Archibald. 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 8:23 p.m.

10. CLOSED SESSIONS:

Motion by Councilmember Archibald to return to open 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 returned to open session at 8:42 p.m.

11. Adjournment.

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

The meeting adjourned at 9:17 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 day of , 2021.

Linsey Nessen, City Recorder

Follow-up items for the Council and City Staff

City Staff will continue their efforts on providing the Council with more information so they can make a decision on the proposed property tax increase and health insurance plan.

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