City Council Minutes 6-1-21

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
JUNE 1, 2021

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

CITY COUNCIL WORKSHOP

Mayor Fridal called the June 1, 2021 City Council Workshop to order at 5:34 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 (arrived at 5:39 p.m.), Holmgren, Rohde, and Seamons, 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 (arrived at 5:36 p.m. and left after the work session). Councilmember Vance was excused.

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

Manager Warnke said last year the City was contemplating raising property taxes. The idea was to see what the City could do internally to make up the gap. Fire Chief Robert LaCroix was tasked with increasing revenue in the fire department. Here are some of those items. He has gained his rural paramedic licensure so when he is on a call, which happens at least once a week, the City can charge a paramedic fee. That equals to $582 in addition to what an advanced licensure would allow us to bill at (about $21,000 additional revenue). He suggested increasing our disposable supplies, which the Council adopted in the fee schedule. We are also charging for services rendered when we respond to a call, but do not transport. That is a $175 fee and about $12,000 yearly. We are also charging to be on standby for special events ($8,000). Based on those changes the ongoing increased annual revenue is about $68,000. Last meeting we discussed our shortfall in revenues over expense ($346,000), which equated to a 21% property tax increase. Based upon these changes and others we are proposing, the shortfall is about $200,000 or a 12% increase in property taxes. We have also looked at our Capital Equipment Fund and used money from the General Fund to pay for some of those expenses. We are proposing using some of that for the next few fiscal years as we pay for the fire truck we purchased a couple years ago. A decrease in our health insurance premium has also helped.

Manager Warnke said if the Council chooses to move forward, we would go through the Truth in Taxation notification process. The Council would also determine what percentage the property tax increase would be and what that would look like to a typical home ($32 increase yearly) and business ($59 increase yearly). Based on the revenue adjustments just discussed, we are looking at a 14% increase ($203,000 needed annually). If the Council wanted to get that tax increase in the single digits, we would need $162,000 annually. The difference between that and the $203,000 is $41,000 (a 3% difference). Anytime we can stay within 3% of the budget we are doing well. Some of those variables in the revenue could pick up the difference. Anywhere between a $203,000 and $160,000 annual increase puts us in a good position to fill the gap we have. The answer to those expressing concern is that the City is moving to a different level of service. This would create full-time fire resources in-house, which means we can respond quicker.

Councilmember Rohde told Manager Warnke excellent job on his presentation and said I like the 9.9% proposed tax increase—it is an easier sell. If growth continues, that may help pad some of that for us as well. Manager Warnke said the Council would notice the maximum amount you would consider. Councilmember Holmgren said in a year or two we do not want to be in the same pickle so I think we ought to shoot a little higher just because Tremonton is growing so fast. Who knows what a couple years down the road will be like and we do not want to visit this again. Manager Warnke said I talked to Finance Director Curtis Roberts and he put together a spreadsheet. We had a bit of a novelty with RDA funds. In 2018 that increased our property tax because of the new growth and so we are still examining what that looks like and what would be a reasonable ongoing proposed increase to overcome inflation. We will be looking into the future and seeing what a staffing plan looks like with this amount of growth. As the community grows we will need more resources. The Council needs to make a decision by the next meeting if we are going to accept the certified tax rate or proceed with Truth in Taxation. If we do that then we have until August 17.

Manager Warnke said sales tax is something you need to be aware of and consider in making these decisions. We are in this terrific scenario with a significant increase in sales tax. However, we we do not want to put the City in a position where we are in future distress because we are relying on one-time revenue. The amount of sales tax growth has been linear. That projection shows that in three years we will have $2.4 million. Another projection anticipates we will get there by next year. This money does have some restrictions and is primarily used for capital outlay requirements and bond indebtedness. We could use it for ongoing maintenance and operations, too. Typically we pass $800,000 to one million dollars to our Capital Projects from the General Fund in any given year. Currently we are 20% ($331,000) ahead of revenue from the previous fiscal year in sales tax. It seems strange that we will be talking about allocating a large amount of money in surplus while talking about increasing property taxes, but we need to separate out what these revenue streams are meant to do and the type of expenses we have. I recommend we still contemplate this property tax increase and the Council decide what amount to advertise for. We also have a potential three-year grant that can be used for staffing in public safety. The current fire fighting staff we have is an important part of the department and providing services to the City, but we are getting to a point where we need additional resources. I recommend we continue to use sales tax like the State legislature envisioned for capital expenses and outlays.

2. Discussion of the allocation of potential General Fund fund balance from FY 2021 to Capital Project Funds

Manager Warnke said at the end of each fiscal year we amend the budget and allocate surpluses to specific funds. This year we had an extraordinary amount of allocations in part due to the increase in sales tax and building permits. We also got $1 million from the American Rescue Act. We have done things to improve services related to our response to the COVID-19 pandemic. Our Public Works helped with the kitchen remodel and expansion at the Senior Center. Quarantine rooms that also function as sleeping quarters for a full-time fire staff have also been added to the fire station. Federal guidelines allowed us to use that money for safety expenses, as well as wages. It appears there might be another million dollars in play for the City this year through that act.

Manager Warnke discussed potential projects he would recommend allocating the surplus to. We recognize the need to expand 1000 North, but are not sure the pavement will hold up within the timeframe we need. We are proposing $330,000 to repave that. It would be broke into at least two construction phases with small urban funds helping to do a larger project and providing the City with that $5.5 million. We need $70,000 to pay for the Parks and Recreation office upgrades and frontage improvements. Director Fulgham would also move the filter from the central canal and relocate to the frontage ($400,000). About 12% of that $3.3 million would go to the Capital Vehicle and Equipment Fund. We anticipate $250,000 for new police vehicles in the next two fiscal years and $91,000 of future debt service payments for the fire truck, mowing tractor, and others. For the Transportation Capacity Capital Projects Fund we are showing $400,000 associated with the 1650 West collector road. We are required to construct the first phase, but have until 2024. We have shown the BR Mountain Road from 2650 West, which is the current construction limits to the west and borders the City. However, that could change. If we acquire the south portion for a storm drain basin the City would be responsible for half the frontage. The other one would be along 1000 North from 2300 West to 2650 West and would cost about $650,000. We would also widen 1200 South ($1.5 million). We could potentially use some of the money from this surplus and grant funds to complete Service Area 9. We have made good progress with the developers on the pre-annexation agreement in that area and come to an understanding of what some of those needs are for the City to service. Secondary water is part of that. I think we could put this money to immediate beneficial use by doing so. That is an area that is growing and allows those homes to immediately connect. However, we do need to be vigilant in looking for additional water sources. Our engineer will provide us with some cost estimates. We also have funds in the downtown RDA. We have spent about a million dollars in improvements for 480 West and reconfiguring 650 West into 600 West, along with other miscellaneous projects. We have about $800,000 in cash for other projects.

The Council agreed they would like to consider the property tax increase, which will be discussed in greater detail during their next meeting.

3. Discussion of Box Elder County Proposal to partner with Tremonton City on the disposal of Green Waste Material

Director Fulgham said the County has suggested a partnership with Tremonton and last week Gina from the landfill contacted me to discuss that. She said they would partner with the City and buy a big grinder. They would take care of all the grindings and any extra wood chips. We would just compost and get rid of our bio solids. I told her I would bring the idea to the Council to see if it is something we want to pursue. Our current hours of operation are Wednesday through Friday from 11 a.m. to 5 p.m., as well as every first, third, and fifth Saturday from 8 a.m. to 5 p.m. This would open it up to all County residents and if we needed to extend those hours of operation they would pay that cost. The benefit is I would never have to pay to grind the material. The downside is we would have to manage it as a more full-time position. The months of operation are May to November. Each year we spend $40,000 to grind the material and $15,000 to man the facility. It would cost another $15,000 or more depending on if it is a full-time position with benefits. Our whole operation for bio solids is about $300,000 a year. Finding someone to man it would be the hardest part. If the Council wants to proceed I will work with Gina to see what they want and come up with an agreement. Councilmember Rohde said anytime we can work with another entity and both win we ought to do it. Councilmember Holmgren said we can as long as we are held harmless and it does not end up costing us in the end. Manager Warnke said it would be an inter-local agreement and the City could end the relationship if it does not work out.

4. Discussion of City Councilmember Assignments

The Council discussed their assignments and how those could be updated. Manager Warnke said the Council is the governing and legislative body. It is great if you can be involved in the community, but your primary job as a councilmember is to legislate and govern the City. Hopefully when you attend meetings, City staff is giving you the information you need to make informed decisions. What works well in these roles is networking with other entities and using your talents and skills to benefit the City. Each Councilmember went through their list and discussed which ones were still relevant and which ones could be taken away. Some Councilmembers exchanged assignments and their lists were condensed to make their roles more purposeful. Manager Warnke said we talk about issues collectively as a Council and that is where the strength lies—in a Council tackling issues with more than one person’s knowledge and expertise.

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 7:04 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the June 1, 2021 City Council Meeting to order at 7:13 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, and Seamons, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Community Services Director Marc Christensen (left at the closed session), Public Works Director Paul Fulgham, and Police Chief Kurt Fertig. Councilmember Vance 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 Councilmember Holmgren and the Pledge of Allegiance was led by Councilmember Rohde.

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 June 1, 2021. Motion seconded by Councilmember Archibald. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye. Motion approved.

5. Approval of minutes – May 18, 2021

Motion by Councilmember Archibald to approve the minutes of May 18, 2021. Motion seconded by Councilmember Seamons. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye. Motion approved.

6. Public comments: There were no public comments.

The following items were discussed out of order. The Council moved into a closed session at this time and then proceeded with the agenda.

7. City Council Business

a. Discussion and consideration of appointing a Planning Commission member

Motion by Councilmember Holmgren to appoint Penny Dennis as the new Planning Commission Member. Motion seconded by Councilmember Archibald. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye. Motion approved.

b. Discussion and consideration of adopting Resolution No. 21-21 selecting health insurance carriers and defining the City’s contribution for health insurance employee benefits for the 2021- 2022 Fiscal Year

Manger Warnke said we appreciate all your work to put the City in a position to get the best rate possible for health insurance. The policy defines how we would separate and create employees that would be under an insurance plan so we can be community rated. The Council would receive a health stipend equivalent to the employee’s health care benefits. That is what is formalized in this resolution. All the other benefits relative to dental and eye would come through the normal channels. Recorder Nessen just needs to know what plan each Councilmember is opting for (HSA or traditional).

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

c. Discussion and consideration of adopting Resolution No. 21-22 reaffirming, amending, and enacting new fees and fines in a schedule entitled Tremonton City Consolidated Fees and Fines Schedule including, but not limited to, ambulance fees

Manger Warnke said these are changes relative to the State rate, which they adopt every year. These are the rates we can charge for our services.

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. Motion approved.

d. Discussion and consideration of adopting Resolution No. 21-23 approving the Spring Hollow Subdivision Phase 2 & Amendment of Lot 28 of Spring Hollow Subdivision Phase 1 Subdivision Development Agreement

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. Motion approved.

e. Discussion and consideration of adopting Resolution No. 21-24 ratifying the USDA Dedication Plat and Site Plan Development Agreement

Manger Warnke said this has been recorded already, which is why we are ratifying it. The code does allow us to move forward and record development agreements that have standard conditions. There will be a fee in lieu for Main Street improvements that cannot be made now. This also formalizes the water shares and application fees.

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. Motion approved.

8. Calendar Items and Previous Assignment

a. Review of calendar

Manger Warnke said this is the week for declaration of candidacy and there are a few special events coming up. The Mugs and Bananas drag night is on Friday and on June 26 is the Arts Festival at Midland Square.

b. Review of past assignment:

No assignments to review, but the Council discussed the Memorial Day service and how exceptional that was. Mayor Fridal said I received a lot of good comments on the cemetery. Councilmember Holmgren said I would like to give a shout out to Rusty Scoffield and his crew, as well as Director Fulgham. It is more than just an assignment to them and it shows. They do a fantastic job.

9. Reports & Comments:

a. City Manager Reports and Comments: None.
b. Development Review Committee Report and Comments

1. Review and update of proposed developments

Manger Warnke said there is a discussion tomorrow on this concept plan for Island Park, which is between the two interstates. I think there are some problems with it and things that do not meet the code. Rivers Edge is nearing their final plat for the phase that is already incorporated in the City limits. They are moving forward.

c. City Department Head Reports and Comments

1. Update on the construction, change orders, or construction cost increases for Service Area 5

Director Fulgham said there is nothing new to report for the Service Area 5 project, but prices are going up. We are in the process of getting a bore under the railroad tracks, which has been delayed. Rupp’s Trucking is waiting for their six-inch pipe, which is the majority of the pipe throughout the system. They will get the big 16-inch pipe in and then start on the smaller stuff. We also have the temporary aeration units in. We are trying to keep it as fresh as we can and get the reductions to keep the State happy while we are waiting. We are eight to 10 weeks out on those parts.

Director Fulgham said we have worked on setting up the apps for water advisory, but it does not work. We will be using my water adviser two, which can be accessed on a web browser to view and manage your account. It is not as easy as the app, but there are only a couple more steps. The Bear River Canal Company informed me last week they are going to do a 10% reduction on all their canals. That applies to the water we will be taking out of their canal system and where we pump. We cannot turn them down 10% so we are going to come up with a watering schedule. It will likely be that one day a week we turn off the pumps for 12 to 16 hours and say there is no watering. We need to prepare our citizens for that and make sure they are not over compensating on the days they can water. That does not help the canal system at all. I would also like to inform our culinary users and promote the same practice with them. It is nothing mandatory just a suggestion. We are in a drought situation and our sources are struggling. The letter from the Governor’s Office is suggesting the same thing. Councilmember Archibald said there are citizens who have a ton of questions and we need to start educating them. Director Fulgham said the best thing to do is pass their names onto me and I will talk to them personally. We could also look at having an open house in the fall.

d. Council Reports and Comments

Councilmember Archibald said the library is having their summer kick off party on Friday from 5-8 p.m.

Councilmember Holmgren praised everyone who is involved in making sure the cemetery looks great. Good job making sure the trees got a good start.

Councilmember Rohde requested the City look into an RV dump station again. We do things to support our citizens and I think this is something we need to do. Director Fulgham said if we do that I would rather have it open, not have scheduled days and have a camera there to monitor the activity. We have had businesses voice interest and told them they would not pay the City, but would pay for the cost to put it in, but they have not. Councilmember Rohde said it would be a shot in the arm for Tremonton to have something like that.

Councilmember Seamons asked about a noise ordinance and said there are loud, obnoxious trucks and motorcycles throughout the day. Chief Fertig said trucks should have regular mufflers, but a lot of times people take them off. It is illegal. The highway patrol writes tickets for muffler issues. If there is a normal occurrence the police department can monitor those areas. Councilmember Seamons said the trash cars are multiplying along Tremont Street. Chief Fertig said we have talked to them multiple times and they have charges in court.

Mayor Fridal thanked the Council—we appreciate the job you do.

Motion by Councilmember Rohde to move into closed session (earlier in the meeting). Motion seconded by Councilmember Holmgren. Vote: Councilmember Archibald – aye, Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye. Motion approved.

The Council moved into a closed session at 7:16 p.m.

10. CLOSED SESSIONS:

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

The Council returned to open session at 7:49 p.m. (see above discussion)

11. Adjournment.

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

The meeting adjourned at 8:27 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 15th day of June, 2021.

Linsey Nessen, City Recorder

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