City Council Minutes 5-5-20

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
MAY 5, 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 5, 2020 City Council Workshop to order at 5:30 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, 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. Also in attendance was: Finance Director Roberts (left after the work session). Councilmember Seamons was excused from the work session.

1. Review Discussion of secondary water rates model and possible adjustments to culinary and secondary water rates

Manager Warnke said we put the best information we have relative to the rates that were discussed at the last Council meeting. There are several indicators to help us make the decision, including the return on asset ratio (2% to 4%), and the debt ratio, which has a minimum standard of 125%. We are looking at the revenue for both culinary water and secondary water. Mayor Fridal said, like we discussed last meeting, whatever we do is going to be adjusted in the future. This is a place to get in and get going on it.

The Council looked at the spreadsheet and went through ideas on what the rate could be. They suggested raising the culinary base rate from $10 to $13. Resident Erik Richardson had previously suggested the secondary water be decreased by 25 cents per thousand gallons in each tier so it would cost less than culinary. Councilmember Vance suggested having the commercial rate go back down to $1.25 and the rate of return went to 1.8%. I know we all want to get to 2%, but we have a six-month window to figure out where the numbers are coming in. If we go with this we really have not changed a lot. After six months we could start making some more permanent changes. I suggest we go with this 1.8% and reevaluate in six months. The 2% is to cover replacements, but we put this stuff in brand new and are not worried about replacing in the near future. Director Fulgham said the replacement still comes on the old system and that is where it is good to have at least 4.2% return on assets in the water fund. We are not going to have to expand capacity though since we are taking that portion off, but we still have deteriorating lines. The new stuff will not have to be replaced for a depreciating cycle. The Council clarified this would put the culinary base rate to $13 a month instead of $10 and everything else would stay the same, starting at $1.25 per 1,000 gallons. On the secondary there is a slight reduced (25 cents per 1,000 gallons per tier). Councilmember Holmgren said the return on assets are a little low on the projections as far as the overall water fund, but the debt to asset coverage ratio is 1.8%. Councilmember Rohde said culinary is at 4.2%, which puts it in the good window for now. Director Roberts said it is down a bit, but 1.8% is not going to break us in one year. We can run it for six months and see what happens, just remember weather impacts this a lot more than anything else. The sustainability goal is based more on the secondary system stand-alone. If you really want a stand-alone system, not one that is mixed in with your culinary, the 140% to 150% range is more ideal. With a 2-4% range we know the water system is staying healthy.

Director Fulgham said every customer who uses culinary water is going to pay $13. Those who have secondary water available will pay a $10 base rate for a six-month period, even if they have another source of water and do not want to hook on because it is available if needed. Manager Warnke clarified that the commercial would have a 0% increase, but would pay the base increase on culinary like residential. The Council thanked all those who have worked hard on this process. Mayor Fridal said I appreciate the Council. This is a tough decision to make.

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 Vance – aye. Motion approved.

The Council moved into a closed session at 6:01 p.m.

2. CLOSED SESSIONS:

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

Motion by Councilmember Archibald to return to open session and adjourn the meeting. Motion seconded by Councilmember Vance. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

The Council did not returned to open session at this time. The meeting ended and there was not time to discuss the following items.

3. Review of the draft Tentative Budget entitled “The Tremonton Annual Implementation Budget 2020-2021(General Fund, Capital Fund(s), Enterprise Fund(s) and Special Fund(s)” for the period commencing July 1, 2020, and ending June 30, 2021
4. Review of items listed on the 7:00 p.m. agenda

The meeting adjourned at 6:55 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the May 5, 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, Reese, Rohde, Seamons (arrived at 7 p.m.), 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 7:29 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 Councilmember Vance and the Pledge of Allegiance was led by Councilmember Archibald.

2. Introduction of guests:

Mayor Fridal welcomed those in attendance.

3. Declaration of Conflict of Interest: none

4. Approval of Agenda:

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

5. Approval of minutes – April 21, 2020

Motion by Councilmember Archibald to approve the minutes of April 21, 2020. Motion seconded by Councilmember Holmgren. 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.

Mayor Fridal called a Public Hearing to order at 7:09 p.m. to discuss the tentative budget. There were eight people in attendance.

7. Public Hearing

a. Public hearing on the Tentative Budget entitled “The Tremonton Annual Implementation Budget 2020-2021(General Fund, Capital Fund(s), Enterprise Fund(s) and Special Fund(s)” for the period commencing July 1, 2020, and ending June 30, 2021

Manager Warnke said this is just one step in the process. By State code we are required to adopt a tentative budget, but can amend it during this process and even after our June 16 meeting when it is finalized. As a City staff, we put together a tentative budget that is balanced and want to recognize the individuals who participated in helping to execute that. Recorder Nessen did the personnel estimates, while Deputy Recorder Cynthia Nelson did the estimates on common expenditures. Director Christensen oversaw the gathering and creation of many documents to help with that. I participated as well. We want to acknowledge and recognize their efforts. It is much appreciated. Having many people involved in this process puts the City in a good position and we do have a balanced budget. Director Christensen has summarized all the information into one sheet. You can see what occurred in previous fiscal years as far as actuals and what is being proposed this year. You can also see the bottom line and changes by percentage, along with notes to help interpret those. We are at $12 million for all funds.

Manager Warnke said during our last meeting there was a question on computer and vehicle replacement expenses. We talked about trying to plan and estimate those a little better. We do budget computer expenses, but department heads or individuals might choose not to make that expenditure because the machine is adequate. We do some planning, which is reflective in our Capital Projects spreadsheet. We have tried to refine that and it is a great tool. You can see the fluctuations there with heavy vehicles, light vehicles and equipment. On any given year the purchase of a heavy vehicle (dump truck, ambulance, fire truck) can drive that. We can try to flatten and spread that out by leases. In some cases we try to accumulate funds in our capital projects and prepare to make the expenditures. Right now a street sweeper is on the horizon. We have delayed that expense, but have set money aside. At the end of the fiscal year, the Council allocates what the potential fund balance could be to some of these funds. We have a presentation that looks at capital projects that are current in this budget year and what is being appropriated. As well as some projects we wanted to introduce you to. That will be discussed at the end of this meeting.

There were no public comments. Mayor Fridal closed the Public Hearing at 7:16 p.m.

8. City Council Business

a. Discussion and consideration of adopting Resolution No. 20-15 approving the Tentative Budget entitled “The Tremonton Annual Implementation Budget 2020-2021 (General Fund, Capital Fund(s), Enterprise Fund(s) and Special Fund(s)” for the period commencing July 1, 2020 and ending June 30, 2021

Councilmember Vance said this spreadsheet you put together is phenomenal you can see what is going on real quick. The effort you put into it is well worth it.

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

b. Discussion and consideration of adopting Resolution No. 20-16 reaffirming, amending, and enacting new fees and fines in a schedule entitled Tremonton City Consolidated Fees and Fines Schedule including, but not limited to, amending fees for secondary water and culinary water

Manager Warnke said the changes are that the base rate for culinary jumped from $10 to $13 with the usage remaining the same. Director Fulgham said we did change the tiers. The first tier is $1.25 per 1,000 gallons and went from 0-7000 gallons to 0-10,000 gallons. This will not have as big of an impact on those with bigger families. We adjusted the tiers to match the 30,000-gallon outdoor usage tiers in secondary. We also set an upper limit of 130,000 gallons. Before we cut it off at 80,000 gallons. The first 10,000 gallons is for indoor usage. Everything after that is outdoor usage. Secondary was lowered by 25 cents per tier per 1,000 gallons. It is less than what the culinary rate is and has a $10 base rate for six months out of the year. There is an incentive or penalty rate for those who have secondary to their home, but choose not to use it. Those who do not use much outside water or have their own well will not be impacted as much, but will be charged the $10 base rate from May to October if it is stubbed to their property.

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

c. Discussion and consideration of adopting Resolution No. 20-17 selecting health insurance carriers and defining the City’s contribution for health insurance employee benefits for the 2020-2021 Fiscal Year

Recorder Nessen said we are sticking with Cigna, who made a few plan changes in order to get the renewal rate down. They started at a 24% rate increase and got us down to a 9% increase, which is typical. The only changes on the plan were an increase in the out-of-pocket maximums on both the traditional and high deductible plan, and there is no out-of-network coverage. About 97% of our people use in-network. Dental is still with Cigna and there were no changes on that, vision, or long-term disability. The City pays 90%, which is what it has been. The HSA contribution from the City has not changed.

Motion by Councilmember Archibald to adopt 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 adoption Ordinance No. 20-05 amending the Tremonton City Land Use Code, including Title I Zoning Ordinance, Chapters 1.08, 1.16, and Title II Subdivision Ordinance, Chapter 2.06

Manager Warnke said these are the changes that would allow multi-family housing within the Commercial District. Right now it is not allowed. This would make it a permitted use in the overlay zone relative to Edgewood. The recommendation from the Planning Commission is to reduce the setback on a corner lot from 20 to 15 feet on residential. The last proposed amendment is reducing the PUE on the frontage from 15 to 10 feet, which is adequate for the public utilities that fall within that easement. Councilmember Rohde clarified this is specific to the 55 plus community in the Edgewood development. Manager Warnke said bullet #2 is only specific to that subdivision. Bullet #1 is across the board and was in the code before. Councilmember Rohde said we kept getting requests for multi-family housing in the commercial zone and the best answer was to allow it across the board, then we do not have to deal with overlays all the time.

Motion by Councilmember Rohde to adopt the ordinance as stated. 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.

9. Calendar Items and Previous Assignment

a. Review of calendar:

Councilmember Archibald said the library re-opened and patrons have been very respectful of wearing masks and social distancing while there. The library does offer curbside service to the elderly and others as needed from 5-7 p.m. After items are returned, they are quarantined for 24-hours and sanitized before being put back on the shelf. The Summer Reading Program will be done entirely online and starts June 1. The end of school party to kick off summer has been canceled.

b. Review of past assignment: none

10. Reports & Comments:

a. City Manager Reports and Comments

Manager Warnke said these are the projects that are programmed into the budget tentatively. We have been appropriating money to undertake them. In the Fire Fund there is $200,000 for self-contained breathing apparatus (SCBAs). A new ambulance is also being proposed. Director Fulgham said we have an upcoming equalization basin, but are still trying to acquire the property, which is a requirement of the canal company. This is a project that goes along with the secondary and we are still acquiring shares. There are upgrades to our sewer treatment plant, which included adding a new screen. Ours is almost 20 years old, but we are hoping we can rebuild it. In the sewer fund there are miscellaneous sewer line improvements. None are slated for this year, but they always creep up. We do have a big one coming up in the future and the same goes for our storm drain. As things are brought to our attention, we set money aside.

Director Fulgham said we have some chip seal projects that could be done in fiscal year 2022. Next winter we will get a project put together and out to bid after January. The goal is to chip seal all these roads that were cut while installing secondary. That gives us a good year to see how the roads are going to hold up. We will do the work internally and then bring a company in to lay, roll, and patch them. Iowa String really needs to be beefed up in the road section to handle more truck traffic. We have talked about trying to acquire corridor preservation funds to help with that, but we are still in the early stages.

Director Fulgham said Wastewater Fund 52 shows the 2020 projects. Ultra light system, what we disinfect our wastewater with, it is going on 20 years. It was put in 2004 and is about to the end of its life. We will look at doing an upgrade on that. Our compost facility, the actual asphalt site, needs to be expanded. We have grown since we built that and have more businesses. Our compost might decrease a little, but not much when Garland leaves because they are not a big contributor to solids. The cost will be about $200,000.

Director Fulgham addressed more secondary projects that could be on the horizon. We are looking at ways we can expand and gain users to help offset the costs. We could expand the secondary system to pick up the Mathison Apartments complex from 6th North to feed that. The cost would be about $187,000 in piping. We could also include the Harris Subdivision, which would be roughly another $264,000. This is something to discuss and decide in the future. The Aspen Ridge Apartments are going in right now and it would be great to add those to the secondary. The biggest cost to that is the pump facility, $358,000. If Jay Stocking’s project comes in, we could expand it over there and the majority of the piping would be paid for by the developer with the City paying for the upsize. The detention basin would be at the bottom of Tremont Place and that is an opportunity to expand into Tremonton Place Phase 1. It is an existing subdivision so we would have to add the piping. Phase 2 is going in shortly and they will install the pipes there.

b. Development Review Committee Report and Comments: none
c. City Department Head Reports and Comments

1. Update City events including Tremonton City Days- Marc Christensen, Community Services Director

Director Christensen gave an update on the Parks and Recreation Department with the COVID-19 governor guidelines. We have entered the Orange Phase, but that was not a big change for us because we cannot do any team organized sports. We did open our youth golf and limited it to groups of 10. We have also opened some of the parks. Once we move to Yellow Phase that is when things can continue. For City Days, we have a lot of little events that could be done individually. When you combine them all together it makes a mass gathering, so we would need to be in the Green Phase for City Days. We are for sure doing fireworks because there are enough open spaces and big parking lots. If we are told by June 1 that we can have mass gathering events, our staff feels we would have enough time to get everything organized. If we are told we can by June 15, then we will probably do a simple City Days. Any news after that and we could do some individual events. At the end of this month we are planning on doing a drive-in movie, showing “Abominable.”

2. Outreach to cities regarding Senior Services- Marc Christensen, Community Services Director

Director Christensen said we have reached out to a couple different city councils to see if they would participate in helping offset the expense at the Senior Center. We did a proportionate share analysis and sent out letters to each of the mayors with an explanation of what the Senior Center does, how big our operational shortfall is, along with what their percentage should be. We kindly asked them to participate and made it clear we would not stop the services if they do not.

d. Council Reports and Comments

Councilmember Holmgren said I wanted to give a shout out to those who helped plant almost 40 trees at the cemetery. Most of it was paid through donations. Manager Warnke said former Councilmember Diana Doutre and Councilmember Holmgren lined up the funding and the Public Works Department helped bring the project together.

The Public Works Department was asked to report on the COVID-19 study the State is doing. Director Fulgham said we are participating with eight other wastewater treatment facilities in looking at the background of COVID-19 in the wastewater. If they correlate they can help make projections on density of infection rates for future use. There is a national group basing a lot of their study on what Utah is doing. The labs at Utah State University, the University of Utah, and Brigham Young University are doing all the background work, which will wrap up toward the end of May. They will give us the findings and I will bring that to City Council. Things are looking promising on being able to use this information to help project in the future.

11. CLOSED SESSIONS: No closed session held at this time

12. Adjournment.

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

The meeting adjourned at 8:08 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 19th day of May, 2020.

Linsey Nessen, City Recorder

Archives