TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
February 2, 2016

Members Present:
Diana Doutre
Lyle Holmgren
Jeff Reese
Bret Rohde
Lyle Vance
Roger Fridal, Mayor
Shawn Warnke, City Manager
Darlene S. Hess, Recorder

CITY COUNCIL WORKSHOP

Mayor Fridal called the February 2, 2016 City Council Workshop to order at 6:00 p.m. The meeting was held in the City Council Meeting Room at 102 South Tremont Street, Tremonton, Utah. Those in attendance were Mayor Fridal, Councilmembers Doutre, Holmgren, Reese, Rohde, and Vance, City Manager Shawn Warnke, and Recorder Darlene S. Hess. The following Department Heads were also present: Public Works Director Paul Fulgham, Librarian Kim Griffiths (arrived at 6:50 p.m.), Police Chief David Nance, and Treasurer Sharri Oyler. Also in attendance was Finance Director Curtis Roberts.

Mayor Fridal thanked everyone that came to the Workshop including Finance Director Roberts and Micah Capener.

1. Review of agenda items on the 7:00 p.m. Council Meeting:

The Council reviewed the February 2, 2016 Agenda with the following items being discussed in more detail:

Public Hearing – Harmony Heights Subdivision. Manager Warnke noted that Harmony Heights Subdivision was recorded before 2009 but the developer never installed the public improvements such as utility lines and streets. There are recorded lots that could be sold but there is no guarantee that improvements will be made. The subdivision is located across the road from the UDOT Road Shed on 1000 North. Director Fulgham stated that it belonged to the Corbett’s a long time ago but has since changed hands. It is located on the south side of 1000 North.

Councilmember Vance noted that he previously spoke about developing Harmony Heights Subdivision instead of pushing the water under the freeway. Manager Warnke noted that a representative from Harmony Heights Subdivision approached the City about marketing the property and they do not like the current layout. By vacating the subdivision, it will resolve the issue of having a recorded subdivision without any public improvements and it will also create a clean slate for the developer to re-plat a new subdivision in the future. The roads will be vacated if approved and go back to the original property owner.

Appointment to Planning Commission. Councilmember Rohde spoke with Val Bennett and Mr. Bennett is willing to serve on the Planning Commission. Mr. Bennett was invited to City Council tonight. Councilmember Reese commented that Mr. Bennett will be a good member of the Planning Commission.

Appointment to Library Board. Manager Warnke explained that with the appointment to the Library Board tonight, the Board will be fully staffed.

2014-2015 Financial Statements. Finance Director Roberts explained that the City must follow several new accounting standards. The auditors are mostly done with their procedures and the Audit will be finalized in a few weeks. A draft was provided stating the required three (3) opinions from the auditors. The draft shows clean opinions and that the auditors found no findings. Jones Simkins has not issued a letter to management at this time.

Finance Director Roberts stated that sales tax came in higher than projected during the 2014/2015 fiscal year, the City sold land, and the Water Fund suffered because of the dry weather a year ago. The City is in a good solid financial state. The Statement of Net Position shows the City’s assets minus liabilities. The assets include roads, curbs, gutters, sidewalks and other items that cannot be sold. The Water Department assets are tracked so the City can generate a return to replace the assets. A fee is charged for using the assets so the City will have funds available to replace asset and equipment when necessary.

Major funds include the General Fund, RDA (Redevelopment Agency) #3, and the Fire/EMS. The General Fund is for basic operations and includes funds from tax revenue, licenses, and intergovernmental charges for services. The General Fund is Fund 10, RDA #3 is Fund 72 and 73, and Fire/EMS is Fund 28. The Non-major funds are combined and include Parks & Recreation, Food Pantry, RDA #2, and two Capital Projects Funds.

RDA #3 is set aside for future low income housing projects per RDA agreements. The Fire/EMS department functioned at a profit this year which is unusual;it is wonderful news. There are a lot of write-offs in Fire/EMS from insurance for Medicaid or Medicare. Manager Warnke remarked that the monthly Financial Statements for Fund 28 will list the write-offs. Finance Director Roberts noted that the City wrote-off about 40% last fiscal year in Fire/EMS with a large portion coming from Medicaid and Medicare. Councilmember Rohde commented that 40% is not too bad.

Councilmember Vance asked how the fund balance for Fire/EMS was determined. Finance Director Curtis explained it was figured by taking the approximate $150K cash, a little over $300K in receivables, plus $11K due from other governments for a total of $485K then subtracting the accounts payable. It was noted that cash receivables are hard to collect. Councilmember Vance asked if the new ambulance the City will be purchasing will come from this fund. It was confirmed that the funds will come from the Fire/EMS fund.

The Major funds in Proprietary Funds include the Water Fund and the Treatment Plant Fund or Fund 51, 52, and 47. The Sewer and Storm Drain are Non-major funds. The operating income is figured by taking the ongoing operating revenue minus the ongoing operating expenses. The Water Department and Treatment Plant Funds are generating about a 2% rate of return which is low. Finance Director Roberts would like to see a 7-8% rate of return. The rate of return is better than the year before but the rate of return needs to be high to recover the cost of assets and regulatory costs.

Councilmember Vance wondered if funds can be moved from the General Fund to the business side. Finance Director Roberts noted it can be done but it is a bad business practice as it is using tax dollars to subsidize operation of a utility. Councilmember Holmgren asked how the budget would change if Garland goes off the Treatment Plant. Finance Director Roberts said that Garland currently pays $12-15K a month for the Treatment Plant which would come off operating revenues. Operating expenses would not decrease much.

It was noted that the Vactor truck for Public Works will be purchased out of reserves with cash and the depreciation will come from the Treatment Plant Fund. The Sewer and Storm Drain Fund are healthy and look good. The Net Pension Liability is a new accounting standard that forced governmental entities to evaluate the pension plan offered. Tremonton participates with Utah Retirement System (URS). URS had to analyze all the pensions they handle and project out to the life of everyone currently with URS and see if they have enough assets to pay off all the benefits they have authorized. Many systems through the United States found they were only 60-70% funded while Utah is closer to 90% funded. Governmental entities are now required to book a liability for the large estimated amount of the unfunded liability which affects the Financial Statements. The City is in great financial condition now. The Council has done a great job and there has been progress made so the need to borrow is minimized.

The City has a pledged sales tax revenues for a UTOPIA (Utah Telecommunication Open Infrastructure Agency) bond of $340-$350K a year which increases by 2% each year. The operational expense (OpEx) payouts have been slowing down as UTOPIA has made progress towards breaking even. Manager Warnke noted that the RDA #3 has an agreement between Tremonton City RDA and Tremonton City in which the RDA will reimburse the City $75K annually but that revenue stream will end this year with the termination of the Freeway Interchange Project Area and the elimination of the RDA’s receipt of tax increment from this project area. Manager Warnke stated there are 400 total residential users with UTOPIA now which is the highest it has been and there are more subdivisions that are being connected. UTOPIA attributes the growth to the City and Council’s advocacy of UTOPIA.

Finance Director Roberts noted that the required audit opinions are final for the audit but Jones Simkins still needs to finalize the management letter. Manager Warnke told the Council that Jones Simkins suggested the Council adopt the draft as the numbers should not change. The City is a little behind in getting the audit submitted. The audit costs the City about $18K annually. Finance Director Roberts explained that city staff compiles a book for the auditors to help streamline the process which saves the City money on the audit. The City has gone out to bid for the audit before. City staff does everything possible to help keep the expense down.

Councilmember Holmgren noted that item 8b will be removed from the agenda as Jones Simkins will not be here to present the final Audit.

Ordinance No. 16-05. Manager Warnke mentioned that a representative for the Harmony Heights Subdivision is in attendance tonight and the Council may want to acknowledge him so he can speak.

Tremonton City Logo. Mayor Fridal stated that the logo is how the rest of the world perceives the City and shows what is unique to the City. It should describe the personality of the City. Councilmember Rohde said that a logo identifies who you are and people associate it with you. Mayor Fridal said that the City logos he found online had sharp lines, colors, and contrast. A logo should catch your eye and make you want to take another look. It should tell you about the City. The City has not invested a lot of money in the creation of the revised logo at this point. Mayor Fridal suggested that the City invest money in creating a logo that will tell people what Tremonton has to offer.

Councilmember Rohde asked why the Council never voted on the revised logo. Director Fulgham stated that every department used their own design for their departments in the past. When the revised logo was presented, the department heads assumed it was approved and would unify everyone under the same logo. Products have been purchased with the revised logo. Councilmember Holmgren noted there was a period when the City considered branding and it was decided instead to revise its logo. The revised logo was presented to the Council before proceeding last year. The revised logo is a modern version of an older seal.

2. Economic Development Discussion – Mayor Roger Fridal

This item was not discussed due to time restraints.

3. Discussion on the City’s expanding the use of credit cards as a form of payment for citizen’s purchases of City services, etc.

This item was not discussed due to time restraints.

The meeting adjourned at 6:57 p.m. by consensus of the Council.

 

CITY COUNCIL MEETING

Mayor Fridal called the February 2, 2016 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. Those in attendance were Mayor Fridal, Councilmembers Doutre, Holmgren, Reese, Rohde, and Vance, City Manager Shawn Warnke, and Recorder Darlene S. Hess. The following Department Heads were also present: Public Works Director Paul Fulgham, Librarian Kim Griffiths, Police Chief David Nance, and Treasurer Sharri Oyler. Also in attendance was Finance Director Curtis Roberts.

1. Opening Ceremony:

Mayor Fridal informed the audience that he received a request to participate in the Opening Ceremony by Councilmembers Reese and Doutre. 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 Reese and the Pledge of Allegiance was led by Councilmember Doutre.

2. Introduction of guests:

Mayor Fridal welcomed Finance Director Roberts, Librarian Griffiths, and potential Planning Commission member Val Bennett.

3. Approval of Agenda:

Mayor Fridal asked if there were any changes or corrections to the Agenda. No comments were made.

Motion by Councilmember Holmgren to approve the agenda of February 2, 2016 with the exception of item 8b being removed. Motion seconded by Councilmember Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, and Councilmember Vance – aye. Motion approved.

4. Approval of minutes – January 19, 2016:

Mayor Fridal asked if there were any changes to the minutes. There were no comments.

Motion by Councilmember Doutre to approve the minutes of January 19, 2016. Motion seconded by Councilmember Vance. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, and Councilmember Vance – aye. Motion approved.

5. Public comments: Comments limited to three minutes:

There were no public comments.

6. Public Hearing:

Mayor Fridal called a Public Hearing to order at 7:06 p.m. to consider vacating the Harmony Heights Subdivision Phase 1, Phase 2 and Phase 3. There were 19 people in attendance.

a. To consider vacating the Harmony Heights Subdivision Phase 1, Phase 2 and Phase 3 which is located at approximately 3760 West 1000 North. The proposed vacation of the Harmony Heights Subdivision Phases 1, 2 and 3 includes but is not limited to all platted lots, all public roads, public easements and public right-of-ways as recorded in the office of the Box Elder County Recorder’s Office.

Manager Warnke pointed out that Jeff and Chaz Bernson are in attendance representing the property owner. Manager Warnke thanked Jeff Bernson for driving up for City Council.

Jeff Bernson commented that he will get used to the drive as his son will be living in Tremonton. Mr. Bernson represents the land owner and noted they are looking at a different use for the property. The property is currently under contract to be sold. As part of the agreement, the buyer required the subdivision be vacated as the sellers use will be different than what the subdivision currently lends itself to. The subdivision plat was not very serviceable and a little busy. After the subdivision is vacated, they will return and present a revised plan to the Planning Commission and City Council showing two to three (2-3) different users on the property. It is hoped that they will bring businesses to the City and create jobs.

Councilmember Holmgren asked what it will be zoned. Mr. Bernson remarked that it will remain zoned as a commercial zone. Mr. Bernson thanked the Council. Mayor Fridal thanked Mr. Bernson for attending.

Manager Warnke stated it is raw ground and there have not been any public improvements. If the Ordinance is approved, the subdivision will be vacated.

Mayor Fridal closed the Public Hearing at 7:09 p.m.

7. Appointments:

a. Discussion and consideration of the appointment of a Planning Commission member – Councilmember Bret Rohde

Councilmember Rohde presented the name of Val Bennett to the Council to serve on the Planning Commission. Mr. Bennett is in attendance this evening and has consented to serve.

Motion by Councilmember Reese to approve Val Bennett to be a member of the Planning Commission. Motion seconded by Councilmember Doutre. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, and Councilmember Vance – aye. Motion approved. Mayor Fridal thanked Val Bennett for accepting the offer to serve on the Planning Commission. Councilmember Rohde told Mr. Bennett that his name will be added to the email distribution list and thanked him.

b. Discussion and consideration of the appointment of a Tremonton City Library Board of Trustees member – Kim Griffith

Librarian Griffiths submitted the name of Nancy Bills to be on the Library Board. Ms. Bills will fill the final opening.

Motion by Councilmember Doutre to approve the appointment of Nancy Bills to the Library Board. Motion seconded by Councilmember Holmgren. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, and Councilmember Vance – aye. Motion approved.

8. Presentations

a. 2014-2015 Financial Statements – Curtis Roberts, Finance Director

Finance Director Roberts stated there was considerable time spent in the Workshop discussing the 2014-2015 Financial Statements. The auditors have completed the procedures and are wrapping it up. The opinions they issued are clean opinions and there are no problems with internal controls or compliance. The financial numbers presented have been verified by them. The City functioned well during the 2014-2015 fiscal year and set aside money for future capital projects while still providing for ongoing maintenance. The City is in great financial shape. There are large expenditures coming up and the Council and City staff will need to prioritize capital projects. The Fire/EMS had a banner year and did a great job managing funds. The RDA functions as planned and has money for a low income housing project.

There is a lot of hard work and dedication that goes into the City. Treasurer Oyler spends a large amount of time on revenue collection and Recorder Hess does a fantastic job with her staff. Items are properly recorded in the correct GL accounts. City staff complies with procedures and does a remarkable job. They can adapt when changes need to be made.

Councilmember Vance suggested the Council review capital expenditures and the RDA in a future Workshop. Mayor Fridal thanked Finance Director Roberts.

b. 2014-2015 Audit Financial Statements– Jones Simpkins LLC

This item was removed from the agenda.

9. Years of Service Awards – Mayor Roger Fridal

a. Ten Years of Service – Janet Firth

Mayor Fridal presented Janet Firth with a ten (10) year service award. Ms. Firth works as a crossing guard at North Park. Mayor Fridal thanked Ms. Firth for her service.

b. Fifteen Years of Service – Lynn Green

Mayor Fridal noted that Lynn Green has been with the City for fifteen (15) years and appreciates the service rendered. Mr. Green was not in attendance.

10. New Council Business:

a. Discussion and consideration of approving the December Warrant Register

Motion by Councilmember Holmgren to approve the December 2015 Warrant Register. Motion seconded by Councilmember Doutre. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, and Councilmember Vance – aye. Motion approved.

b. Discussion and consideration of approving the December Financial Statement

Motion by Councilmember Rohde to approve the December 2015 Financial Statement. Motion seconded by Councilmember Reese. Vote: Councilmember Doutre – aye, Councilmember Holmgren – aye, Councilmember Reese – aye, Councilmember Rohde – aye, and Councilmember Vance – aye. Motion approved.

c. Discussion and consideration of accepting the 2014-2015 Audited Financial Statements

Motion by Councilmember Reese to accept the 2014-2015 Audit Financial Statement. Motion seconded by Councilmember Vance. Vote: Councilmember