City Council Minutes 6-5-18

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING

JUNE 5, 2018

Members Present:
Diana Doutre
Lyle Holmgren
Jeff Reese
Bret Rohde
Lyle Vance
Roger Fridal, Mayor
Shawn Warnke, City Manager
Cynthia Nelson, Deputy Recorder

CITY COUNCIL WORKSHOP

Mayor Fridal called the June 5, 2018 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 Doutre, Holmgren, Reese, Rohde, and Vance, City Manager Warnke, and Deputy Recorder Nelson. The following Department Heads were also present: Fire Chief Steve Batis (arrived at 6:04 p.m. and left at 7 p.m.), Parks and Recreation Director Marc Christensen, Public Works Director Paul Fulgham, Police Chief Kurt Fertig (arrived at 5:57 p.m.). Finance Director Curtis Roberts was also in attendance.

The following items were discussed out of order.

1. Discussion and review of tasks, policies, strategies, and issues surrounding the implementation of a pressurized secondary water system within Tremonton City’s incorporated limits

Councilmember Holmgren brought up their discussion with the County on secondary water and shares. He said Commissioner Jeff Scott felt they might have a hard time letting some of their water go. However, his point of view is that it ought to go to the highest and best use. It is moving along and we are making headway. Councilmember Vance said he talked to Commissioner Stan Summers who said they could let go of about 80 shares and still keep some of the farmers who use water in the pool happy. I am hoping we will get a portion and get those bought. They asked us to get on the agenda, but I am not sure what we can do to solidify the request. Councilmember Holmgren said I am worried because we are getting ready to spend a whole lot of money on zones 1 and 2 so I think we better get our ducks in a row and get these shares secured. We cannot go very far down the road with these plans if we do not have the water to do it. Director Fulgham said they have the shares to get into the first two zones and start moving toward zone 3. Councilmember Vance asked if they are going through the process to exchange the City’s wastewater for canal water. Director Fulgham said right now we are doing exploratory to show that the water we have going into the canal is the higher quality water. Those numbers are sent to a canal representative each week. He will start making graphs as they obtain more data. Councilmember Holmgren said it is a present/absent thing and from this standpoint we can show we are not adding to the problem.

Manager Warnke said the last time we talked about secondary water we were contemplating rates based upon installation of meters, which have added some additional costs. We also needed to come up with a rate structure. The spreadsheet the Council has seen in the past has been adjusted to include this scenario. Director Roberts said we can adjust the contingency based on bids, but as of now we are using the City engineer’s estimate (30%). We can adjust the price for water shares based off experience and we are still holding that 4% rate with a 20-year repayment. These are all variables we can play around with. We are allocating $1.5 million from the Water Fund for this project. Having areas 1 through 5 and 9 will establish 2,111 connections. We have added some more complexity to the spreadsheet to add a monthly base rate and there is a rate structure based off what the Division of Water Resources estimates is needed to have a healthy lawn. Director Fulgham said the duty factor they use is 1.87 (feet of water per year). I took that number and the 4.0 duty factor we use and divided it. We then took an average sized lot (1/4 to 1/3 acre) and excluded the home. We figured it would take about 30,000 gallons of water to keep an average lot healthy. Those are numbers I used when I set our culinary rate with the four tiers. The 30,000 gallons would be the starting allotment. I did a five-tiered rate: 30,000 gallons, 60,000 gallons, 90,000 gallons, 120,000 gallons and over 120,000 gallons. Director Roberts said this is a starting point to get some estimates. We could always adjust the number of rates and ranges. This gives us an estimating tool so we can say if we go off this model what can we expect to happen financially? These numbers will be based off feedback from the Council.

Councilmember Rohde asked about the numbers for high, moderate and low. Director Roberts said those are the rate per thousand gallons. For the low tier, 0 to 30,000 gallons, residents would be charged $1.50 per thousand gallons used, plus the $20 base rate. Councilmember Rohde said if someone does not use secondary water at all, do we force then to pay $20 a month or do we drop that down? Director Roberts said that is where you can use this tool to see what happens. Director Fulgham said they may not want to hook to secondary, but they will still have the capability to do that. That is going to be a political decision of the legislative body to decide if there is a break for those who have it in front of their house, but do not use it. Councilmember Vance said we have to be able to show a base rate so we can qualify for the bond. Director Roberts said these are preliminary rates to show calculations. We can change those rates per thousands and how many months they would be incurring these overages. You may adopt a higher rate, but maybe their overage would happen over the course of only three months. It gives us a little flexibility. Councilmember Vance said would we charge the months they are using the water or all year round? Director Fulgham said the base rate would be charged year round, but the overages will only happen when there is water in the canal and people are actually drawing from it. Right now people who are using canal water are watering six months out of the year. We have two users in town who are metered. One uses 60,000 gallons in a three-week period and the other uses 100,000 gallons in that time. Adding meters will make people accountable. These are mag meters that have no internal parts. We installed them to see how they will work with that quality of water.

Director Roberts said the key thing we are looking for is that debt service coverage because that is what the bond people are going to be looking for. Under this scenario you can see the low end generates 128% so we would make the debt service coverage. We can also cash flow this and it is fully functional. If we lower the base rate to $15 then we have 117%. If we change it back to $20 and say we have a wet year so we are only incurring overages for four months—you can see that has a dramatic decrease. The rate structure will have to be adjusted because that is not going to generate enough income to satisfy the terms of the bond. Councilmember Vance asked how many months they would charge overages. Director Fulgham said looking at the traditional culinary water use the four-month scenario does not work. It should be five to six months. Director Roberts said we tried to build up a realistic model that will satisfy the bondholders. It seems to match our usage patterns and all the data we can get and pull together. Director Fulgham said the numbers I send out each month show week-by-week use and do not change a whole lot. They do incline because we are growing at 2% a year. I think it will be a constant following what the culinary usage has been. Councilmember Holmgren said how does this model work if we have a drought year and the canal company scales back? Director Roberts said this is going to have more variables to it, so the goal would be to keep some cash reserves on hand for those low years. In that one year it could go down to where the covenants become a challenge and we have to use cash reserves to cover that. It is a concern and that is why we want to model this and show you what happens. That is one reason we think keeping this together with the Water Fund is better. We can draw from the water revenues to make sure we meet the bond covenants and not have problems with the bondholders. We need to have some sort of plan for a drought year and in the excess years we need to bank the cash for those down periods. Councilmember Doutre said are we going to charge people who are high on the hill and do not have the chance to have it? Director Fulgham said no, in my mind the only ones who would pay that base rate are those who have it right in front of their house. We are trying to design it to where it serves all Tremonton residents.

Councilmember Rohde said we had data that showed a variance ($16.98) between what they are paying now for overages and what we would be able to save them on their culinary bill. If we used $17 as the base rate, does that get us close to the 125%. That would be a wash. Director Roberts said it would be 121% so that is a little low. We could play with the monthly rates per thousand gallons to see if we could make up the difference. This is designed to get the conversation going. Councilmember Rohde said it seems everyone wants secondary and are willing to pay to get it. It would be good if we can get the rate close to a wash so they are not paying any more to have it.

Councilmember Vance said when we qualify for the bond are they just looking at the secondary water income or are we attaching the culinary water income to it? Director Roberts said for bonding purposes we will attach some of the water structure to it to make sure there is enough guarantee there and so we will never be at default on the bond. Councilmember Vance wondered if the City could end up in a deficit. Director Fulgham said it should work as a seesaw. As water usage goes down the revenue goes down, but it goes up on the secondary side and water production goes down so there are some costs that are not going to be incurred. By doing this we push out a lot of infrastructure projects that we would need to do sooner. Now we do not have to because we have excess capacity in our water tanks. When we set the new culinary rate the goal was to set aside $30,000 a month for source development. Councilmember Vance said my point is if we try to reduce the back end of secondary water so tight that there is no margin then we cut ourselves. Councilmember Reese said we could do that in the rate per 1000 gallons. Director Roberts said we could play around with those rates to get it back up. That is one of the reasons why I like the 128%, 130% and 136% ranges so we have less of a chance of it creating problems overall. Director Fulgham said working with the Council we could adjust those tiered structures.

Councilmember Vance said we are only doing two zones at this point so we can tweak the numbers because are looking at the whole game with these numbers. That makes me feel better that we can tweak it at the end of one year before you go into the next zone. Director Fulgham said as soon as they get meters in, the base rate would go up as soon as the Council adopts them. The meters were not part of service areas 1 and 2 when we bid it. However, if these meters work with our water then we can go ahead and do the retrofits and get them in. Councilmember Doutre said I would rather have that base rate be $18 so we are over the 125% and would be able to go down $1 rather then say lets start at $17 and go up. Councilmember Rohde said $20 is not bad either. They can adjust the rates to make up that difference and I am comfortable with $20. We are not asking that much more from the citizens. Mayor Fridal said my only concern is the little lady on Tremont Street who is not going to use any secondary water. Can she handle a $17 fee? She will still have this culinary water plus $17. It is a concern we need to be aware of. Councilmember Doutre said that is significant to some people. Director Roberts said I will make this spreadsheet available to you, it is a tool for you to use and spur discussion. Director Fulgham said when we set the new culinary rate our goal was conservation. We built revenue, but did not conserve. I think our mindset for culinary is that after the first tier it should start costing them more, which will make them want to use secondary.

Councilmember Rohde said so where do we go from here. Director Roberts said now we start the rate discussion. Does the Council want to charge a base rate and what should that be? We would also need to have a rate structure. We encourage a tiered one. Do you agree with these tiered rates or do you want to have something different? If we do tiers we would set the rate within those tiers. Once we have those three things then we can formulate our projections and start talking with bonding agencies. We will probably do that in the fall depending on construction for these first two zones. We will start getting that in place and have the Council ready to approve the bonds that will be issued. Councilmember Holmgren said we would bond for the first three zones and then come back—how do you do this for the whole project? Director Roberts said the City engineer put together a three-year construction plan and will cover all these connections in three years. Councilmember Rohde said but we are covering the first two zones. Director Fulgham said that is a whole separate year, this will start budget year 2019 to 2020. The only thing that was not real firm in there was service area 9. That could be moved up sooner on the list if that development happens on the east side of town. It is all laid out, but any of it can be adjusted.

Councilmember Rohde said we want to get these rates going as soon as possible for the new subdivisions and make sure they are working. Director Fulgham said my goal is to have you guys set the rate, like we did on culinary water, and have it start January 1. Manager Warnke might think sooner, but that gives you time to digest and get it where you want. We will not have any meters in until after that time frame anyway. Councilmember Rohde said we would not start charging until there is a connection in front of their house and then they are responsible to get to the connection. Director Fulgham said we stub into their property just like water. Councilmember Vance said we are self funding on the first two zones so when we have this conversation about bonding it is a year away? Director Roberts said yeah depending on construction. If they want construction to start March of next year we would start the bond conversation in November so we have a couple of months to make sure the bond is funded and ready to go. It is a 45-day turn around on bonds, but I would plan for 60. We could do it as late as February. Director Fulgham said the one we are awarding tonight has a closed date to be finalized by the end of April so the system is ready as the canal comes in. Councilmember Vance said lets keep this thing moving. I do not think any of us are going to have different ideas past this point. We could take these numbers to the bonding people and say is this going to work and they will let us know if it will or not. Director Roberts said if you go to a $17 base rate I think we ought to adjust the user rates so we can get back up to that 128% range. Councilmember Vance said the Council is saying go ahead at the lowest point and start talking to the bonding people. They can tell us if we need to raise it to make the bond work and that tells us what we have to do. The Council agreed they needed to keep moving and that they like the tiered rates the way they are.

2. Discussion and review of the Annual Implementation Budget 2018-2019 (General Fund, Capital Fund(s), Enterprise Fund(s), and Special Fund(s) and related matters

Manager Warnke said at the next City Council meeting we will have a public hearing to amend this year’s budget and adopt next year’s budget. There are going to be some changes, but the significant things are can we add additional personnel. I did get the certified tax rate, which delivered about $50,000 more revenue than I had projected in the budget, but I will confirm this with the auditor. The Council wanted to know different scenario for the fire department, which Fire Chief Batis can discuss. Chief Batis said we did a scenario with three part-time men in the fire station from 5 a.m. to 5 p.m. seven days a week. He showed a chart giving a breakdown of their calls. It is close to 50/50, but we do have a little more in the day (57%). Right now we have about 33 people on the department and most of them work day shifts somewhere. We have eight of us who are off during the daytime, but not all eight of us are off at the same time. Most of us are full-time firemen and work two shifts and then have four shifts off. Our average pay is $17 to $19. The three part-time people would have a lesser rate because they would only run medical ($12 per hour). The higher pay is based off different fire certs. Councilmember Rohde said so fire cert people are not going to apply for this job? Chief Batis said that is the going rate for most cities for part-time people. We will get firemen on their four days off that will work part-time, but they are only going to run the medical side. Councilmember Rohde said can we pay them less to cover that? Manager Warnke said we would create a different job description, but I think we need to explore it a bit more. Brigham City is paying them $12 an hour under this type of arrangement. Chief Batis said we still have a group that wants to volunteer and respond when they can. Our call volume is at 500 calls so far this year for medical with 52 fires. The volunteers will still be out during the day, but this will help take some of the burden. Last month we had 42 transfers and this will help us focus on our most important thing, which is making sure the emergency side of the community is covered. We would also add one full-time person to manage things and make sure they do not get too many hours. We currently have a maid service, but we would not need the station cleaned anymore. We would require them to take care of it. We pay someone to do reports, but they could do those during the day. There is also maintenance and other things around the stations they could help with. When asked about the savings. Manager Warnke said it is a little confusing right now. I am going to work with Recorder Nessen and will come up with a more accurate cost. Some of the cost savings are for janitorial service ($3,000), maintenance ($5,000) and administration costs ($13,000). That is not a significant amount of money when you look at the bottom line and how much more we would be spending. We can always amend the budget part way through the year and add this new staffing plan. I have talked to Brigham City about their ambulance service and they had a few ideas to help us increase our revenue. Garland and Brigham City charge for services on fire calls by billing the insurance companies. A Brigham City advocate had some interesting points based upon why he thought ambulance billing services could help Tremonton. We need to evaluate how we can provide and receive ongoing revenue to meet this ongoing expense. Inevitably this is the direction we need to go.

3. Discussion and review of agenda items on the 7:00 City Council Meeting Agenda

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

The Council moved into a closed session at 5:34 p.m.

4. 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 system

Motion by Councilmember Reese to return to open session. Motion seconded by Councilmember Rohde. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

The Council returned to open session at 5:59 p.m.

The meeting adjourned at 6:58 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the June 5, 2018 City Council Meeting to order at 7:07 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 Doutre, Holmgren, Reese, Rohde, and Vance, City Manager Warnke, and Deputy Recorder Nelson. The following Department Heads were also present: Parks and Recreation Director Marc Christensen, Parks and Recreation Coordinator Zach LeFevre, Public Works Director Paul Fulgham, Police Chief Kurt Fertig (arrived at 5:57 p.m.). Finance Director Curtis Roberts was also in attendance.

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 Chief Fertig and the Pledge of Allegiance was led by Councilmember Vance.

2. Introduction of guests:

Mayor Fridal welcomed those in attendance.

3. Approval of Agenda:

Motion by Councilmember Holmgren to approve the agenda of June 5, 2018. Motion seconded by Councilmember Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

4. Approval of minutes – May 15, 2018

Motion by Councilmember Vance to approve the minutes of May 15, 2018. Motion seconded by Councilmember Rohde. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

5. Years of Service Award

a. Erich Allred, Senior Center – 5 Years
b. Allen Corbett, Public Works – 10 Years
c. Zach Moore, Police Department – 5 years
d. Allen Helm, Police Department – 5 years

Mayor Fridal thanked them for their years of service.

6. Public comments: This is an opportunity to address the City Council regarding your concerns or ideas. Please limit your comments to three minutes.

Dallin Spencer said we live on Radio Hill right next to the radio station—the five lots in the West Ridge Minor Subdivision—some of which are flag lots. There is a new subdivision going in and there has been a lot of heavy equipment up and down the road. I’ll turn it over to Ben Hible, who has a flag lot. He said we bought a home in November and have a problem with the trucks running up and down that private road. I had to bring in a 53-foot tractor-trailer in front of my house to block it. I am a disabled veteran and I have to drag my garbage can to the main road for picked up and to get the mail. The garbage trucks did come up this winter. We would like to find out what procedures we have to go through and what can be done.

Joyce Spencer said this has nothing to do with the lane, but on our lot we have an electrical pole that has nothing to do with my lot—it gives service to the lot behind us. Is there anyway that can be moved? The Council said to talk to Rocky Mountain Power.

Steve Sealy said I understand there is going to be a traffic light put in by Garfield Estates. Instead of a traffic light why does the City not do a roundabout? You are looking at something that is probably a fifth of the cost that will facilitate the traffic movement and slow traffic down quite a bit more. It could be landscaped with decorations talking about the history of Tremonton and could be a nice entrance into the City. Mayor Fridal said that is a state road. Sealy said he would be more than happy to take the lead on that and deal with the state. This is food for thought and something worth looking into.

Larissa Fertig said I think we could beautify our City by taking down the worn down, tattered welcome signs. I would be happy to do that.

7. New Council Business

a. Discussion and consideration of approving the April Warrant Register

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

b. Discussion and consideration of approving the April Financial Statements

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

Councilmember Rohde said is there anyway we can have a summary of these things, like a Consolidated Income Statement Balance Sheet? It takes awhile to go through this. Maybe we need some education on how to read it. Director Roberts said that is the Annual Audited Financial Statements and that is about as simplified as it gets. There is a reason we do not do a whole lot of consolidated when we talk about business type funds (water and sewer) because their basis of the County is different than funds like general and fire. In any presentation you never see that type of consolidation. The other fact is that each fund is designed to stand on its own. It becomes really hard to consolidate and give the overall big picture. The Government Accounting Standards Board has taken on the task to readdress that question and is soliciting comments. We can internally create whatever presentation we think would be helpful. If we have some goals and objectives I can work through those and pull things together pretty easy, but on a real basis of how government works there is not really a fine format. Manager Warnke said excel has a built in report that collapses all the funds so they can see the bottom line, which is revenue over expenses. Director Roberts said we could also consolidate down to departments. Councilmember Vance said let us do that because there are 111 pages here. Director Roberts said they would work on consolidating down to departments and showing red flags.

c. Discussion and consideration of adopting Ordinance No. 18-06 repealing Ordinance No. 09-04 and re-establishing the Tremonton City Historic Preservation Commission to provide advice and information to City Officials and other Governmental Officials on matters of historic preservation

Manager Warnke said this is creating historical preservation. We already have an ordinance so this would repeal it and put the current model in place. We would give it two years to see what kind of results and progress we can make. It is a little bit of uncharted territory. We had an ordinance before, but never did anything with it. We would appoint positions and it would be easy to keep City staff involved. I reached out to Larry Douglas, who was a Brigham City Museum director and did a lot of historic preservation for them. He has a lot of knowledge and is willing to help. There is a lot of value bringing someone who has experience like that to lay the foundation. My thought is we create this board for two years and see what progress we can make as it relates to historic preservation. Councilmember Reese said I have a concern. It might turn into Land Use Authority Board where the funds that are appropriated will be determined by this board. They will decide which ones get it and which ones do not and it think it could create some pain having a five person board decide that. I think the Council should take the heat. Manager Warnke said it would be an advisory board and would come to the Council. With Land Use Authority Board you have delegated authority and certain land use allocations that have allowed them to be the final authority. Douglas thinks the best approach does not necessarily focus on projects at the point of improving properties, but maybe doing some more groundwork. We did a reconnaissance level survey where we looked at all the historical assets in a geographical area, mostly downtown, and he suggested we do a little more work and establish preservation goals and objectives. Based upon this groundwork we could prioritize different projects. Councilmember Rohde said so this is like Planning Commission, they will recommend, but the City Council passes it? Manager Warnke said yes, they would do all the work as far as preparing documentation and such.

Motion by Councilmember Vance to adopt the ordinance and reestablish the Tremonton Historic Preservation Commission to provide advice and information to City officials on matters of historic preservation. Motion seconded by Councilmembers Doutre and Holmgren. Roll Call Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – nay, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

d. Discussion and consideration of adopting Resolution No. 18-19 approving a local government certification agreement between the Utah Division of State History and Tremonton City and appointing members to serve on the Tremonton City Historic Preservation Commission

Manager Warnke this one is an agreement between the Utah Division of State History and Tremonton. This is part of their formal process of creating a CLG and appointing individuals to serve in historic preservation. Councilmember Vance said from a lending standpoint, I have been involved with properties that have been put into these historic categories and it turns into a nightmare because they have so may strings tied to it. The person who owns the building can only do what the state tells them to do. Is that still the way it is? Manager Warnke said creating a historic district or historic preservation on a federal level does not necessarily do that. There are advantages to being on the national historical register if you own a piece of property. I did renovations on my house and got state tax credit that returned 20% of the value that I put into my home to help offset the cost. It was an easy process. They do not want to put in things that are incompatible with the historical nature, but it is more limited to scale and other things not necessarily materials. It was a great resource and program that encouraged me to invest in it.

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

e. Discussion and consideration of adopting Ordinance 18-08 dissolving the West Liberty Foods Economic Development Area

Manager Warnke said this is the formal process as it relates to dissolving the economical development area. We have met our obligations as a Redevelopment Agency. The state law requires us to adopt an ordinance with the governing body of the City to dissolve it and it take some formal action with the RDA.

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

f. Discussion and consideration of adopting Resolution No. 18-25 approving the Garfield Subdivision No. 3 Subdivision Development Agreement

Manager Warnke said I always direct you to look at the special recommendations when looking at the development agreements. We will take the fee in lieu for chip seal as well as for curb, gutter and sidewalk at 950. They cannot do it because it interfaces with the County’s road network and they were concerned about how that would tie in. Otherwise it is the standard conditions. Councilmember Holmgren said we are not taking any water on this one, right? Manager Warnke said no they had it before that ordinance was in place. Councilmember Holmgren said have you talked to them about purchasing that water? Manager Warnke said we have and he told us what that price would be. I think there is water out there at the price point from him. Councilmember Rohde said do we have that safety issue with the one access and all the trucks driving through? Manager Warnke said no there are two accesses.

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

g. Discussion and consideration of adopting Resolution No. 18-26 approving Memorandum of Understanding between the Utah Highway Safety Office and Tremonton City for a City Police Officer to act as a Regional Law Enforcement Liaison (RLEL) program and to perform other highway safety-related tasks

Chief Fertig said they have asked one of our officers, Todd Hunsaker, to work for them on a part-time basis communicating with different cities in the tri-county area and getting programs through for law enforcement. They would like us to pay him on an overtime basis and they will reimburse us. I am still waiting for a phone call back as to why they cannot just pay him directly. Mayor Fridal said are there any minuses? Chief Fertig said no, I think it will be really good for our officers to be interfacing with all these other agencies. Hunsaker will be more up to date on the outcall enforcement programs and grants that are available to us. Councilmember Vance said Hunsaker talked to me and sounded excited about it.

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

h. Discussion and consideration of adopting Resolution No. 18-27 respectfully affirming the need and requirement to construct the 950 East Collector Road located on the north side of Main Street

Manager Warnke said developer Craig Adams wanted to have more certainty as he moved forward with designing his development. He wanted to know the City Council thinks it is a critical facility and that we are committed to move forward. At the time we had made some progress, but I think we are making even greater progress now. Councilmember Holmgren abstained from voting

Motion by Councilmember Reese to adopt the resolution. Motion seconded by Councilmember Vance. Roll Call Vote: Councilmember Doutre – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

i. Discussion and consideration of approving a letter to Box Elder County to improve an area of the Skyway Golf Course with a stormwater basin

Director Christensen said the golf course reached out to me to make sure the City was aware of this. Director Fulgham said the golf course is working with Commissioner Summers to help control the water as it comes off there during a wet winter and spring. The County has plans in the future to enhance the parking area along there and bring that into the storm drain that we are putting in down Main Street. This would be a first step. The County is going to construct it, but they like to have a letter from the entity before they go onto their property. They will construct this small basin and take that open area and drop it down a foot, make a depression to help slow the water down and have a controlled release that is going to go out toward the parking lot. In the future they will have a ditch system and pipe it all the way to Main Street. Councilmember Reese said is the golf course okay with it. Director Fulgham said yes, Director Christensen reached out to them to make sure they were. We can get a letter to Bill Gilson saying the City is good with it so they can construct it.

Motion by Councilmember Reese to approve a letter to Box Elder County to improve Skyway Golf Course with a storm water basin. Motion seconded by Councilmember Rohde. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

j. Discussion and ratification of the City installing secondary water distribution lines within Garfield Subdivision No 3 and Chadaz Estates Subdivision phase 3B

Director Fulgham said this goes back to our discussion in May when the Council directed that we could use some of our water funds for construction. Those subdivisions came in just under the wire to requiring infrastructure and to bring in water shares. We thought it would be good to get the infrastructure put in now before they lay the pavement. Garfield might be four years out before those lines have water in them, but the Chadaz piece is a part of our next phase—service area 3, which could be constructed next year. This will tie it into the pump station. Distance wise there is about the same amount of feet, but in Chadaz we are looking at some 12-inch, 10-inch, 8-inch and 6-inch pipe and that is why there is a price difference for roughly the same amount of footage. We made a presentation to the Council and got some feedback so we pulled the trigger and got Rupp’s and Grover’s—the two contractors doing those subdivisions—to contract with putting those in for the City. This is a ratification the City Council approved.

Motion by Councilmember Rohde to ratify the Council’s decision and install these two lines in Chadaz and Garfield estates. Motion seconded by Councilmember Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

k. Discussion and consideration on Awarding Bid for the Service Area 1 & 2 Secondary Water System Expansion Project

Director Fulgham said we had nine companies bid on putting our secondary system in and the expansion of services areas 1 and 2. We gave the Council the first estimates of about $500,000, but then we expanded the zones. By doing more in Archibald Estates we can get a few more houses so we are going to revamp the Stevens Park pump station a little. That will cost a little more than we originally thought and was updated to $728,000. The low bid was from Ormond Construction at $767,769.91 up to the high bid of $1.2 million. Councilmember Doutre asked where Ormond is from. Director Fulgham said they are out of Willard and in the past 17 years that he has been with the City they have done two projects for Tremonton (new water tank on the hill and storm drain project down the alley between Midland Square). They did good work and we had no problems with them. This is the first time in almost 10 years that our engineer had the lower bid. Costs are going up. It is not as much material as it is labor charge. All these companies are so busy and are bidding against each other to keep their own employees. When the economy was down we could do projects for a better price. Keep that in mind—we gave you estimates on secondary, but they might have to be tweaked a bit due to inflation and a good economy. Councilmember Reese said if we award this bid when do they start? Director Fulgham said we would award the bid and they will have until April to complete it. They will do the pump work, but not the electrical. All of our electrical is sourced out to Golden Spike Electric. Councilmember Reese said so these subdivisions are going to be able to use secondary water by next May? Director Fulgham said yes, as they start construction we will be able to energize lines and have valves placed. Some might even get on the system by this fall. Councilmember Holmgren asked what filtration system they plan to use and Director Fulgham said it is the one you wanted and is the same style as the one we use now.

Motion by Councilmember Reese to award the bid for service area 1 and 2 for the secondary water expansion project. Motion seconded by Councilmember Holmgren. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, Councilmember Vance – aye. Motion approved.

8. Calendar Items and Previous Assignment

a. Review of calendar
b. Review of past assignment

9. Reports and Comments

a. City Manager Reports and Comments

1. Proportionate share analysis for funding the Bear River Valley Senior Center

Manager Warnke said I have had some discussion with the County and Mayor Fridal has been talking to elected officials, mainly mayors, about the cost of the Bear River Valley Senior Center and the proportionate share of users that come from all across the County. We are happy people use it and think it is an important service. This memo is meant to be an invitation to other governmental entities to partner with us in providing those services. Of those who participate in the Senior Center, 40% reside within Tremonton and 60% live outside of our incorporated City limits. We used a GIS and BRAG helped us identify the correct addresses because sometimes people claim cities even though they are not within the incorporated limits. This is really accurate information. The difference between the revenue we receive for the Senior Center and the services we provide over a three-year average is about $200,000 in shortfall, which is made up solely by the City’s General Fund. We have reached out to the County, who is the only other governmental entity partnering with the City now and they pay $30,000 a year. However, based upon their proportionate share analysis, about 27% of the people who use the Senior Center live in unincorporated Box Elder County so their suggested contribution would be $53,000. I have talked to the County Auditor who was really receptive. Brigham City participated in our conversation too and I think they were receptive. We just need to follow up. Councilmember Reese asked if he was going to talk to the other communities? Manager Warnke said I think we need to meet with the commissioners some more because we talked about doing something on a regional level. Much like taking care of school children regardless of if you are participating or not. That is part of living in a community—we take care of children’s education and the same thought is that we would take care of the seniors in our County. We felt doing something more on a County basis was more reasonable rather than trying to work with 10 different jurisdictions to request their partnership. The County recently adopted a municipal service tax, which was meant to help with issues like this. We have a little framework established now, but I do not want to give the impression that I am speaking for the commissioners because they have not made a decision yet. These are just ideas on how we can approach it. The Council wondered if they could talk to Garland since the Senior Center does benefit them and is so close to their city. Councilmember Rohde said I like this approach with the County, but if that does not work then maybe we could go to Garland’s City Council meeting and say this is what it is costing, are you guys willing to pay some. Councilmember Vance added that Tremonton is also responsible for fixing up the building and mentioned the roof and carpet projects, which were not included in these numbers.

b. Land Use Authority Boards Report and Comments

a. BR Mountain Road

Manager Warnke said the BR Mountain road tees into 2300 west and is the start of a minor artillery road that will go up 1000 north. It is true to its name and will extend up the BR Mountain. Councilmember Reese said why are we doing this road? Manager Warnke said by our good fortune there was 90 feet of frontage that had not been developed on 2300 west. We were able to negotiate with the property owner, Terry Johnson, to purchase that. Otherwise, we would have had to do something more invasive as far as a right-of-way in that area to facilitate future growth and traffic. We purchased his frontage, which meant we needed to replace his frontage by starting the first leg of the road. Engineer Breinholt has done the design and we met with the owner, who went through it. We had the obligation to construct by the end of December, but the owner was gracious enough to extend that to June 30, of 2019.

b. Tremont Center (Apartments & Retail Building)

Manager Warnke said I have talked to the developers about the apartments and they said there is a gap in that project. This is associated with our CDA that will deliver money first to the developer and second to the RDA to help improve Main Street. Part of that CDA budget included a large apartment complex, which they are trying to make happen. However, there is a gap between the financing, the construction costs and the cash flows, so we are trying to figure out ways to close that gap. We thought about impact fees, but do not think they are a viable option by virtue of the state code. We are having conversations and actively pursuing how it can be developed. The developers are also working on a retail building (6,000 square feet) with multiple tenants. Councilmember Vance said when those apartments are done we are talking about $50 million in value and with the RDA that is $300,000 to $400,000 a year more income. This is going to increase our rental market by bringing upper rentals in and it will help that CDA money flow so we can develop downtown Tremonton. There are so many wins with this thing. We ought to do what we can as a City to help this project along because it helps Tremonton.

c. City Department Head Reports and Comments—no comments

d. Council Reports and Comments

Councilmember Vance thanked those who reported on secondary water. We appreciate the numbers you guys have put together. We are making good decisions based on them and we appreciate what you are doing.

Councilmember Doutre gave a shout out to City crews who take care of the cemetery and how beautiful it looked on Memorial Day. She then brought up a dangerous road near her home. I have had two of my neighbors almost killed this week on our road. I keep bringing this up and I keep being told to wait a few years. I know you do not want to address this, but somebody is going to get killed. Our whole road (1000 north and 2300 west) is too narrow and there are no sidewalks or curb and gutter. There are little kids in the area and lots of big trucks drive through there at 40 MPH. Councilmember Reese said we could slow the speed down, but that is not the final answer.

Councilmember Rohde said people have talked to him about that road and there are a lot of semis going down it. There are a lot of kids along there and it is dangerous. Is there some way we can enforce the Stokes trucks to go down the West Liberty Foods road? Manager Warnke said they are supposed to install a sign at their site that directs them away from using 1,000 north. Going through the Transportation Plan we talked about discouraging truck traffic on that road. In talking to the County Auditor there might be some funding for the City to prioritize that if it is something the Council wants to do. Director Fulgham said in a year or two they could do the work, but they are dealing with federal funds so it only builds so much. If we had $4 million we could build a road all the way out to the UDOT shed, but without those funds we have to use federal funds for matching. I agree that road needs curb, gutter and sidewalk, and I would love to fix it, but you guys are the ones who have the funds. I just utilize what you give us. Manager Warnke said we will let you know all the transportation relating funding mechanisms we have and you can decide if any of them seem appropriate. Councilmember Rohde also gave a shout out to Director Christensen and his staff, who has worked hard and done some great activities. He also brought up exceptions within City ordinances. I propose that if the Land Use Authority Board makes an exception that it be tagged and brought to our attention. He said the Holmgren subdivision was allowed to have more lots without another access. That exception was made, but the Planning Commission and City Council were not aware of it. There are not that many exceptions, but it would be good if those could be highlighted. Councilmember Vance said that is a good idea.

Mayor Fridal thanked Director Christensen and his crew. The City as a whole works hard. This is a good City and I am glad to be Mayor of it.

10. CLOSED SESSIONS: No closed session was held at this time.

11. Adjournment.

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

The meeting adjourned at 8:16 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 June, 2018.

Linsey Nessen, City Recorder

Follow-up items for the Council and City Staff

City Staff has been directed by the Council to go ahead at the lowest point for a base rate and start talking to bonding agencies. The feedback they provide will help them know what the rates need to be. The Council likes the tiered rates the way they were proposed.

Director Roberts will work on consolidate some of the reports down to departments and showing red flags in a few page document opposed to hundreds.

Manager Warnke will continue working with the County on a proportionate share analysis for funding the Bear River Valley Senior Center. He will also let the Council know what transportation related funding mechanisms are available for possible road improvements.

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