City Council Minutes 5-19-20

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
MAY 19, 2020

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 19, 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, Holmgren, Rohde, Seamons, and Vance, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Fire Chief Steve Batis, Community Services Director Marc Christensen (left after the Work Session), Public Works Director Paul Fulgham, Police Chief Kurt Fertig, and Treasurer Sharri Oyler.

Director Christensen addressed the Council first with an update. He said we have been working with BRAG and have funds to help low-income families get meals. Our Senior Center delivers a lot of meals and has upped their routes. We have three vehicles for Meals on Wheels and have requested a fourth. BRAG will pay for that, we just need to get the vehicle and show them the invoice. They are doing the same thing for the food pantry, which has an old blue van. We are going to upgrade that to a pick-up truck that will haul the trailer they borrow to get their supplies at different locations. BRAG will cut us a check for the cost up to $50,000 on both vehicles. The other good news is we have sent invoices to surrounding cities for the Senior Center and we received our first check from Bear River City, who is now covering their full cost. We have sent out 10 others and are hoping for the best. Bear River City and Garland both were very surprised by the services we provide.

1. Review Overview of the property tax system, Tom Kotter- Box Elder County Auditor

Mr. Kotter said the property tax system is very complex and explained who oversees what in the County. My office helps entities set tax rates through Truth in Taxation. As far as property tax goes, there are a couple advantages. It is a very reliable source of income—probably the number one source for local governments throughout the Country. It is secured by the property so it cannot be evaded. A disadvantage in the state of Utah is that it is not tied to inflation. However, it is predictable and will be there. It is one of the few taxes you can appeal. It is not the most popular because it is a lump sum payment and can be painful if not in escrow. Residential is taxed at 55% of the market value. There are abatement programs available for those who have a hard time meeting those. We want to help and those programs are available for people to use. A commercial property is taxed at 100% of its market value.

Mr. Kotter told the Council how property taxes work in Utah. It is all revenue driven and the taxing entities are entitled to the same revenue each year. A municipality says we need X amount of dollars and the assessors determine the amount of taxable value. Things are increasing, but there is no way to put inflation into this. Every five years the assessor’s office visits the County and does a physical appearance. If you do receive an appraisal, people can appeal. He explained how the certified tax rate is calculated. This is a lot to take in, but the important thing to remember is that the certified tax rate is calculated on your legal boundaries. Everything is budget driven so you are only entitled to the $1.5 million that you got last year, unless you go through the process and raise taxes, but you can always take less.

Mr. Kotter said when kicking off the Truth in Taxation process, I tell people to just be honest and transparent about it. I have seen all kinds of reactions and the ones that go the smoothest are the entities who say we need this. We have been putting it off so long and then show people how it impacts them. He then discussed the requirements to go through that process, which include a public hearing. Brigham City approved a 68% increase. A tax increase does impact RDAs. The only time you will get new growth of personal property is if that new growth occurred within an RDA project area. The Tremont Center project is excluded from your taxable value because RDAs do their own thing. Eventually that will be back on the tax role and the entire value will be seen as new growth. If you do change tax rates then for the first year, the RDA would come to Tremonton City. Councilmember Rohde said he would like to see what Tremonton citizens are paying versus other surrounding cities. Mr. Kotter said I can provide that information.

Councilmember Vance said I appreciate you explaining this, but the real reason we are here is that we are trying to figure out how to pay for fire and police help. We can see a big deal coming down the pipeline. My mind still goes back to the fact that there is a report out there that shows one third of the help we give locally is outside of Tremonton. We are talking about increasing Tremonton citizens’ taxes to cover this. Is there not a way we can assess more taxes through real estate taxes—those who are using our facilities? Mr. Kotter said if you wanted to levy a tax on someone in the unincorporated area or a different municipality, Tremonton City does not have that authority, but you could enter into an inter-local agreement. They are under no obligation. Councilmember Vance said if we hire three to four people that is $800,000 more per year to our budget that is coming out of the blue. A third of that, almost $350,000 a year, is to pay for other people. Councilmember Holmgren asked if that could be done through a working agreement. We could say your share of this is X and if you cannot do that, we cannot provide those services? Mr. Potts said right now, since you have the license, you are obligated to respond for ambulance services, but for fire and police services that is up to you and your contracts. Entities have to either provide their own or contract with another service to provide that. Manager Warnke said I am not suggesting this, but special service districts have the ability to look outside the incorporated city limits and have a tax that fits the geographic area that provides the service regardless of city boundaries. That is the mechanism that provides services across municipal boundaries and is usually done through the County. Councilmember Vance said making our citizens pay $800,000 when it should only cost them $500,000 is not fair. We have to do something different with this. We have this avenue to create a service district or the law has to be changed so we can access fees when we go outside of Tremonton. Councilmember Rohde said Garland does not have an ambulance service—that is the way it is for all the outlying cities and that is the rub. Could we send a couple councilmembers to other city’s meetings and say this is your share of this, can we make this work? We may see some positive results or we may not. We could start there to gather some revenue. Councilmember Vance said we are getting deeper and deeper into deciding to bring people on, which will cost us money and we need to be realistic with the cost to our citizens and what is fair. We need to provide the service and make sure we are taking care of people, but it is not fair when we continue paying for other people who do not participate in the expense. Councilmember Archibald said most cities would agree with you. If the shoe was on the other foot they would expect us to pay them. It is the honest thing to do. The Council thanked Mr. Kotter for his time. Mr. Kotter praised Manager Warnke saying, you have a very good city manager. He comes with information and facts, and represents the City very well.

2. Public safety staffing plan variations for Tremonton City Police and Fire Departments- Shawn Warnke, Tremonton City Manager, Steve Batis, Fire Chief, Brian Potts, Potts and Associates, & Kurt Fertig, Police Chief

This item was discussed during City Council Meeting.

Manager Warnke said let us take a look at the cost associated with different staffing models and how they could work in providing services. We have also discussed the police department’s need for an additional officer. The cost would be $87,000 for an entry-level officer, which includes all costs associated with their wages and benefits. A fire chief would cost $96,000. These are at market value as far as the going rate for entry-level positions and are the minimum numbers associated with the classification of these positions within our compensation schedule. A two-man crew on 12-hour day shifts, seven days a week is $325,000. A two-man crew with 24/7 coverage would cost $469,000. A three-man crew on a 24/7 shift jumps to $704,000. The four-man crew, which would provide the ability to cover two ambulances, is $938,000. Councilmember Holmgren clarified that there would be six FTEs (Full-Time Equivalent) employees who would rotate on these models. Mr. Potts said there is some benefit in working 48 hours on and 96 hours off, because then overtime does not kick in until they hit 53 hours in a week. In a six-week rotation, for two of those weeks they will make 38 hours of overtime. Four of those weeks they are only working 48 hours so they would not hit the overtime threshold, which has some cost savings. Manager Warnke said the fire chief could supplement the crews in responding to calls from time to time. We have gone away from making anyone a captain in these scenarios. Mr. Potts said the standard in fire services is a four-man crew to mount a fire attack, but you will have volunteers who can become that. The four-man crew on duty is buying response time because in the fire world, time is critical. A three-man crew can still do it, but your labor is spread out. The goal is that the volunteer system is going to augment the big, bad calls. Councilmember Holmgren asked if the two-man crew with the volunteers taking care of the rest, is doable. Mr. Potts said your volunteers are aging and getting less. If you go to a two-man crew around the clock (two crew members per shift, which equals six), then you will have two people out the door, who can handle it knowing a volunteer crew is coming right behind them. The costs are going up, but you are gaining time and have a guaranteed response. Councilmember Vance said it seems like a two-man crew stepping into this will at least relieve some pressure. We could step into it slowly rather than just jumping in.

The Council discussed their contracts with surrounding cities. Councilmember Rohde said the burnout is coming from ambulance calls not fire and police. I do not see the fire and police being the issue. Councilmember Holmgren said but we are required to do the ambulance, we have the license for this area. Are there other sources of revenue that are coming in to offset going out to help these outlying communities? Mr. Potts said through the fire and police contracts there is a readiness fee and a response fee (soft and hard costs). Manager Warnke said Tremonton City has never put in money from our General Fund for hard costs so essentially the ambulance service has been subsidizing the fire service. That is something we are trying to correct.

Councilmember Rohde said if we want to do Truth in Taxation, we need to get it ready by June. Mayor Fridal said we cannot keep kicking this down the road. We have got to figure out what we are going to do. Councilmember Vance suggested the first step is to go out and create these fiscal agreements with other communities to help offset some of the costs we are having a problem with. The second thing I suggest is go into this thing with a two-man crew on a 48/96 shift with another police officer so we are up to average with all the other cities for protection. That would not include a chief as a full-time position and next year we could add more. Mr. Potts said without the full-time chief you are mixing the volunteer environment with paid environment. It would still be run administratively by part-time staffing. The doers are full-time and the administration would be part-time in this model. It is not bad, but takes some culture change to figure out who is really in charge, the full-time or part-time people. The Council asked what Mr. Potts would suggest. He said I would say a chief and a three-man crew. That gives you a four-man crew plus volunteers. For the cities you are contracting for, who do not want to provide their own fire service, their rate needs to be higher than the rate you charge your own citizens because you are taking your resources out of town, using more fuel, labor and water, which the City has paid for. This takes more time and is a risk to your city since you are taking your resources from your citizens. This also forces them to decide if they are going to get in the game or pay for the service. If they do, then you have more resources and depth.

When asked about revenue from other cities, Manager Warnke said we have $35,000 guaranteed in soft costs. Annually we get an additional $5,000 a year for hard costs. Councilmember Holmgren said can we handle this in house for a bit then if we have to go on and expand from there we can. This idea of raising taxes is a scary scenario. We are caught between a rock and a hard place. Mr. Potts said the older guys are getting burned out. Councilmember Vance said we are talking about making a half a million-dollar commitment, but everyone is calling that a baby step. Half a million a year to Tremonton is huge. Tremonton gets $1.5 million in real estate taxes and we are talking about $500,000 on top of that. That is a huge step for us. I still think we need to go to the two-man, 48/96 shift with a police officer to start with. Mayor Fridal said we would still have to raise taxes to cover that. Councilmember Holmgren said that would be close to $600,000. We could get this started and in two years be talking all over again because this was not enough. Do we just bite the bullet? Councilmember Archibald said our volunteers are for this and could sell it to their neighbors. We have a volunteer group who is supportive of moving this direction because they cannot continue the way they have. If safety is number one in Tremonton City then we will have to put our money in that area. Councilmember Rohde said we could use these firemen for public awareness programs and commercial inspections. That will enhance the perception of safety we do not have now. They could teach people how to have safer homes.

The Council asked how much taxes would have to be increased for a two-man crew and a police officer. Manager Warnke said 35% is the increase with the home based off of a $250,000 appraised value ($117.93 per year for residential and $214 for commercial). A three-man crew and police officer would increase that from 35% to 50%. Chief Batis said I prefer the three-man crew, but I do not have a problem with the two-man crew. I still have a full-time job, all the volunteers do, so trying to manage six to nine full-time people on top of that is going to be tough. I do not know how someone could manage full-time employees without working for the City full-time. The majority of the firemen want a three-man crew so we have guaranteed staff day or night. Our businesses would be willing to pay a little more to keep their insurance rates down because we have good response time. Councilmember Holmgren said if we consider a police officer, fire chief and three-man crew it would cost about $1 million, which is a lot of money. That is a 64% increase in taxes. The Council agreed to start the Truth in Taxation process, which will require a public hearing. Manager Warnke said the public would have a chance to come and express their thoughts before the Council makes a decision.

3. Discussion of infrastructure needed to service land within Tremonton City’s declared annexation boundary- Paul Fulgham, Public Works Director & Shawn Warnke, City Manager

This item was discussed during City Council Meeting.

Director Fulgham said this came up in our last DRC meeting. Gary Madsen owns property along Iowa String and is looking to do a development. The problem is it is out of City limits and would have to be annexed in, but we have requirements for sewer, water, and storm drain. He could leave it in the County and buy west Corinne water, but they only have about 60 connections left in their water company, which they prefer not to allocate all to that one location. The City is looking at what it would cost for infrastructure to sewer that area. Sewer cannot gravity flow it has be lifted and pumped back to Tremonton City. We looked at two different scenarios. One is a smaller service area for about 374 residential units. We also looked at how far south we could go to service that area in the future. If the City put the infrastructure in, we are looking at $550,000 for that whole area or $400,000 for the smaller service area. Manager Warnke said I would like to aggregate all these capital facility plans to look at areas outside our current city limits and what it would take to provide services. It comes down to a public policy decision by the Council. We would be putting the money forward and there is not that much available in our sewer fund to take on a project like this. We are already working on an upgrade on Main Street for sewer collection, but the thought is you could include the impact fee facility plan. We would have to outlay the money ahead of time. Mr. Madsen would contribute some money and the City would repay him in impact fees to jump-start the project.

Director Fulgham said we do have ordinances that deal with septic systems. You could change that to allow more, but when those systems start to fail, the City will be mandated by water quality to fix the problem. The denser you get the more chance of failure you have. The Council discussed extending different utilities under the freeway. Director Fulgham said we do have a water main to the City limits that needs to be upsized. We would look at doing secondary in that area too. Mr. Madsen said he intends to have acre and a half parcels unless they hook to the sewer system then he might go smaller. More building lots would offset the costs and create more impact fees. Councilmember Vance said upfront we need to have them understand when they buy that they are not going to subdivide it out behind or use the water for irrigating pasture. We would only take the amount of shares needed for the house. Director Fulgham said you have a rate that would see to that. This would make people use the canal water, a well, or any other secondary source not provided by the City.

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

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 May 19, 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, Holmgren, Rohde (left at 8:55 p.m.), Seamons, and Vance, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Fire Chief Steve Batis, Public Works Director Paul Fulgham, Police Chief Kurt Fertig, and Treasurer Sharri Oyler (left at 8:28 p.m.).

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 Manager Warnke and the Pledge of Allegiance was led by Councilmember Seamons.

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 19, 2020 and to discuss the items that were missed in the work session first. 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 5, 2020

Motion by Councilmember Rohde to approve the minutes of May 5, 2020. Motion seconded by Councilmember Seamons. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

6. Public comments: Comments limited to three minutes.

Developer Gary Madsen said for Truth in Taxation hearings I have been to them and they are not pleasant. I would hate to see you do a Truth in Taxation once and then have to come back and do it again in a couple years. I hate to see taxes go up, but if I was in your shoes, I would do it big enough you do not have to come back again in a couple years. Also I am not here to say you should do this for my development, but I believe this area will never really be developed by anyone until some sort of lift station is there. The costs are too high. If you want to develop that area and annex it into your City, the City is going to have to step up and do something to allow that. Now is maybe not the time or maybe you do not have the money, but if you want growth in that area, someone besides the developer is going to have to put some of that infrastructure in. I would rather have acre and a half lots and see it stay rural. The best scenario would be to let me do septic tanks. I would have three times the amount of ground the County allows for septic tanks. If you decide you want a lift station, I would drop it to one-acre lots because that is better for the City and me in the long run. The culinary water line is to the annexation line, but 1,000 feet needs to be upgraded. With septic tanks, I could participate in upgrading that line. I would extend into my development, but also upgrade the line closer to the overpass. Secondary water is a big issue. From a developer standpoint, bringing water lines further and upgrading what is there and adding a lift station—it all becomes cost prohibited. Then you add on the fact that I have to give up 30 shares of water (about $150,000). I would like to see you allow septic tanks and let me extend the water down and work something with secondary, if it goes the other way I am not sure. I understand money is tight and you are already talking about raising taxes, but I do believe that is what impact fees are for, it is not for fixing old things.

7. Employee Service Award

a. 5 Year Service Award – Ted Bennett, Police Officer

The Council thanked him for his service.

8. City Council Business

a. Discussion and consideration of approving the April Financial Statements

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

b. Discussion and consideration of approving the April Warrant Register

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

c. Discussion and consideration of adopting Resolution No. 20-18 approving the Tremonton City Redevelopment Agency & Tremonton City Moderate Income Housing Plan 2020 Update

Manager Warnke said read the executive summary of the plan—it summarizes key findings, along with some recommendations. This is an update to our current plan that was adopted in 2013. This is a plan that is required by state legislature to help communities plan affordable housing opportunities within their city. This is our plan to accomplish that objective. It analyses what current housing is available, deficiencies and projects that we need.

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

d. Discussion and consideration of adopting Ordinance No. 20-02 rezoning the Mountain View PUD Subdivision, Mountain View PUD Subdivision Phase 2, Parcel No. 05-075-0045 and Parcel No. 05-075-0038 located at 1720 East Main Street, from Commercial Highway (CH) to Residential Multiple District (RM-16)

Manager Warnke said east of the Crossroads there is an existing townhome complex that anticipated future phases. The current zoning does not allow for townhomes there, it did at the time it was constructed, but the zoning has changed slightly. This would allow for the additional land to be constructed with townhomes. There are caveats that go along with this rezoning and in talking to the developer, there are some deficiencies. The storm drain pond does not meet the current City standards and will require landscaping. The developer is proposing they would improve and complete the development. The Planning Commission recommended the property be rezoned.

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

9. Continuation of Agenda Items in the City Council Workshop

a. If necessary, the continuation of any agenda item listed on the 6:00 p.m. City Council Workshop

10. Calendar Items and Previous Assignment

a. Review of calendar: none
b. Review of past assignment: none

11. Reports & Comments:

a. City Manager Reports and Comments

1. Discussion of the Fiscal Year 2020 Annual Budget, if necessary

b. Development Review Committee Report and Comments
c. City Department Head Reports and Comments

1. Restructuring of police department responsibilities- Kurt Fertig, Police Chief
2. Funding for new vehicles for the Senior Center, and Food Pantry- Marc Christensen- Community Services Director

Chief Fertig said I am planning to expand our rank structure a bit. It would be good to add two more positions of rank to the department. I have spoke with Manager Warnke and now is a good time to do it. With Todd Hunsaker’s retirement it should not cost us anymore. The extra pay for those positions would be swallowed up by the money he is no longer making—he was the highest paid officer here. Manager Warnke said this process was not clear in the policy so we wanted to disclose what we have been contemplating. There is no budget impact, he is flattening out the responsibilities that two sergeants have and spreading the pay associated with it. The Council agreed they were good with this plan.

Coordinator Christensen talked about his items during the first part of the work session.

d. Council Reports and Comments: none

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

The Council moved into a closed session at 8:34 p.m.

12. CLOSED SESSIONS:

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

The Council returned to open session at 8:57 p.m.

13. Adjournment.

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

The meeting adjourned at 8:58 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 2nd day of June, 2020.

Linsey Nessen, City Recorder

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