City Council Minutes 6-15-21

TREMONTON CITY CORPORATION
CITY COUNCIL MEETING
JUNE 15, 2021

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

CITY COUNCIL WORKSHOP

Mayor Fridal called the June 15, 2021 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 Holmgren, Rohde, Seamons, and Vance, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Community Services Director Marc Christensen, Public Works Director Paul Fulgham (left after the closed session), Police Chief Kurt Fertig (left at the closed session), and Treasurer Sharri Oyler (left at 6:48 p.m.). Councilmember Archibald was excused.

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

When discussing the annual budget, Manager Warnke said we are proposing a property tax increase. According to the State Code, we would adopt a tentative budget that is not finalized until after the Truth in Taxation process. After public notices and hearings, the Council would consider adopting the final rates and budget. We are proposing a new tax rate this year to deliver an additional $200,000 to help bridge the gap in our fire department staffing. Once this is adopted, the City cannot exceed the proposed tax rate, but can go less. You will set the maximum amount you want to consider.

Manager Warnke provided the Council with a quick overview of what has changed and highlighted some of the larger items being proposed. He said the cost for health insurance has decreased and each Councilmember needs to remember to follow through with completing the paperwork and getting your health insurance policies ready for this upcoming budget year. The City has realized a big decrease in workers compensation insurance (37%). In part that is calculated on claims. Our provider is a big proponent of incentives and has suggested we create this safety incentive program. We have seen success in lowering our workers compensation insurance because of that. They recommend that with the decrease in the insurance premiums the City roll that into this program and increase the frequency. We were doing quarterly gift cards ($15), but the trust recommends we do them monthly and lower the amount ($10). This budget also proposes hiring an Assistant City Manager. I would divide my duties of managing departments with an assistant manager. We do have a Community Services Director who, to a large degree, has been managing those departments. He would also take on more responsibility with the budget. The City is entering a phase of expansion and growth. One of the roles I play in that process is doing development reviews from a planning perspective. Our City Engineering and Zoning Administrator do the procedural aspects and coordinate the process with the applicants, while our Public Works Director works with utilities. I feel it is fairly effective, but the day will come when the City will need to hire a planner. Not knowing how long this growth spurt will be, the proposal is to hire an Assistant City Manager to take on more responsibilities and help free up the City Manager to be more involved and in pace with some of these development issues. We would make an effort to see a return in investment and find ways to bring the City money through grants and inter-local agreements with other cities.

Manager Warnke said we are looking at building storage for the Parks Department on an existing foundation. That has been included in this budget, as well as the ongoing capital project of improving the trailhead at the Holmgren Nature Preserve and Trail. Fund 28 discusses how we were able to reduce the proposed property tax. The General Fund contributed $60,000 because we adopted the Transient Room Tax, which in part has helped reduce the impacts of the debt associated with ambulance billing for those living out of town and using the ambulance services. We also changed the way we calculate business licensing to include calls for services for police and fire. That money will be transferred to the fire fund. There is also a transfer from our Capital Equipment fund of $74,000 to pay the debt service on the fire truck for three more years. This also includes the purchase of a street sweeper and purchasing a generator for the Public Works complex. Since they manage all the utilities it is critical in continuing to operate during a power outage. We are also proposing to upgrade the audiovisual equipment in the council chambers. This will facilitate more participation and make it easier to provide transparency.

Director Fulgham discussed the aerator basin replacement, saying we are running on borrowed time. We had aerators put in until the parts get here. We replace those every 10 years, but really you get about five years. We got six years out of them and will re-evaluate the depreciation schedule to have them replaced every five years. The cost is about $700,000 by the time we pay for the rentals. We have paid for a third of it in this budget year. We have budgeted the remaining next year. Councilmember Rohde asked what would need to happen to sewer once the City hits a population of 10,000. Director Fulgham said it would be for personnel. We would need a full fledge pre-treatment program. Currently we do those by agreement. We would then permit each of these entities and they would pay a fee. We would also need a part-time employee for storm water management. We will have some leeway, about a year to plan out how to staff that and what the program would look like. We know it is coming with how fast we are growing.

Manager Warnke said for the Hansen annexation they would dedicate to the City a storm water basin and park space to help mitigate the impacts of their high density. We have worked out an arrangement where they will dedicate land and water shares to the City and we would pay them back with impact fees. That mechanism was built into the budget. Another fast moving project is the Rivers Edge annexation. Some of that is already in the incorporated limits so they are trying to get it recorded. In order for the City to continue providing water, we need to get that secondary water system implemented. In the pre-annexation agreement we proposed they dedicate to us the pump station site and right-of-way to extend the pipes. We hope they will do the piping and distribution system while the City participates in the upsize. We are trying to get a cost estimate of what that looks like and what the financial obligation is to the City. The governmental funds ($1 million) would be put to great use immediately for this to help the City stay on top of the obligation. Director Fulgham said the governor’s plan is for communities to use these funds for long-range things. They should be used to invest into the future and that is water. Manager Warnke said we are hoping to get Service Area 9 to a manageable size so we do not have to bond for it. We see this money as that infusion to help us get there.

The Council then discussed the Compensation and Classification Plan. Manager Warnke said this proposed budget includes the cost of living and merit that are done each year (2% COLA and 1% Merit). This changes the minimums and maximums according to that pay, which includes the new positions associated with an Assistant City Manager and the fire department. This has been consistent for at least six years. The Council questioned if those need to be higher in order to keep and gain employees. Manager Warnke said we could consider going up. This is not final until after the Truth in Taxation process. Let me try to get an understanding of what others around us and throughout the State are doing and we can revisit that.

Treasurer Oyler explained the ambulance write-offs and said this time they are a little higher. I think COVID had an impact because we could not do small claims in court. We just had to send them to collections. If they are here we get more of a response through the small claims process, but we are getting more money from collections. We are proposing we write off the $140,479.13, plus $22,000 previously. Manager Warnke said in total we budgeted $170,000 for this fiscal year.

Councilmember Rohde said I thought that was a great exercise by Fire Chief LaCroix finding additional revenues and places to save. That is what we were referring to when we questioned how we could reduce expenses. I would encourage all departments to go through this exercise. That is a great example of what can be done. Manager Warnke agreed.

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

a. Strategy session to discuss the purchase of real property when public discussion of the transaction would disclose the appraisal or estimated value of the property under consideration or prevent the public body from completing the transaction on the best possible terms; and/or
b. Strategy session to discuss the character, professional competence or physical or mental health of an individual; and/or
c. Strategy sessions to discuss pending or reasonably imminent litigation; and/or
d. Discussions regarding security personnel, devices or systems

The meeting adjourned at 6:52 p.m. by consensus of the Council.

CITY COUNCIL MEETING

Mayor Fridal called the June 15, 2021 City Council Meeting to order at 7:00 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 Holmgren, Rohde, Seamons, and Vance, City Manager Warnke, and City Recorder Nessen. The following Department Heads were also present: Community Services Director Marc Christensen, Public Works Director Paul Fulgham (left after the closed session), and Police Chief Kurt Fertig (left at the closed session). Also in attendance was Sergeant Josh Kearl (arrived at 7:10 p.m. and left at 7:40 p.m.). Councilmember Archibald was excused.

1. Opening Ceremony:

Mayor Fridal 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 Rajan Zed, President of Universal Society of Hinduism, and the Pledge of Allegiance was led by Councilmember Vance.

2. Introduction of guests: Mayor Fridal welcomed those in attendance.

3. Declaration of Conflict of Interest: None.

4. Approval of Agenda:

Motion by Councilmember Rohde to approve the agenda of June 15, 2021. Motion seconded by Councilmember Holmgren. Vote: Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

5. Approval of minutes – June 1, 2021

Motion by Councilmember Seamons to approve the minutes of June 1, 2021. Motion seconded by Councilmember Rohde. Vote: Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

6. Public comments: There were no public comments.

Mayor Fridal called a Public Hearing to order at 7:05 p.m. to consider adopting the annual budget. There were five people in attendance.

7. Public Hearings:

a. To consider adopting the Budget entitled “The Tremonton City Annual Implementation Budget 2021-2022 (General Fund, Capital Fund(s), Enterprise Fund(s), and Special Fund(s)”, for the period commencing July 1, 2021, and ending June 30, 2022

There were no public comments. Mayor Fridal closed the Public Hearing at 7:06 p.m.

Mayor Fridal called a Public Hearing to order at 7:06 p.m. to consider amending the annual budget. There were five people in attendance.

b. To consider amending the Annual Budget entitled “The Tremonton City Annual Implementation Budget 2020-2021 (General Fund, Capital Fund(s), Enterprise Fund(s), and Special Fund(s)”, for the period commencing July 1, 2020, and ending June 30, 2021

There were no public comments. Mayor Fridal closed the Public Hearing at 7:06 p.m.

8. New Council Business:

a. Discussion of a proposed property tax increase and proposed tax rate, which exceeds the County Auditor’s Certified Tax Rate for the 2021 tax year, the proposed property tax increase will fund additional Fire & EMS Staffing

Manager Warnke said what I need from the Council tonight is an understanding of what proposed tax rate you would like to move forward with through the advertising and Truth in Taxation process. We have proposed increasing that by $200,000. There are two certified tax rates, which equal the combined rate. One is related to general operations with the much lesser amount ($50,000) for the library. Our operations in the library are about $200,000 annually, which is nowhere near what is needed to fund that service. This would require a 12% increase. Councilmember Vance said we have pulled as much from the budget as we possibly could before we decided to increase taxes, which the City has not done in a long time. With the changes in the fire department we all see there is a real need. Manager Warnke said I would advise a motion so I can put that rate in and start the process of Truth in Taxation. In August we will have a public hearing. We have to hold special meetings separate from any other business and would announce when the Council would make a decision in a future meeting.

Motion by Councilmember Holmgren to give Manager Warnke the authority to go ahead and put together a proposed property tax increase. This increase does exceed the County auditor certified tax rate for 2021 with the City looking at a proposed increase of about 12%. Motion seconded by Councilmember Rohde. Vote: Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

b. Discussion and consideration of adopting Resolution No. 21-25 approving a Tentative Budget, which is based upon a proposed property tax increase entitled “The Tremonton Annual Implementation Budget 2021-2022 (General Fund, Capital Fund(s), Enterprise Fund(s) and Special Fund(s)” for the period commencing July 1, 2021, and ending June 30, 2022

Motion by Councilmember Vance to adopt the resolution and approve the tentative budget. Motion seconded by Councilmembers Seamons and Holmgren. Roll Call Vote: Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

c. Discussion and consideration of adopting Resolution No. 21-26 approving the revised Tremonton City Compensation and Classification Plan

Motion by Councilmember Rohde to adopt the resolution with the option to amend it in the upcoming months as needed. Motion seconded by Councilmember Seamons. Roll Call Vote: Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

d. Discussion and consideration of adopting Resolution No. 21-27 amending the budget entitled “The Tremonton City Annual Implementation Budget 2020- 2021 (General Fund, Capital Fund(s), Enterprise Fund(s), and Special Fund(s),” for the period commencing July 1, 2020, and ending June 30, 2021

Manager Warnke said there is a State limitation that does not allow us to have more than 25% in our General Fund of operating revenues. So if there is a surplus, we apply it to the Capital Project Fund, which has been discussed at a previous meeting. We have added a little more to that fund since it is easier to transfer money around if we need it for a water project or something else.

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

e. Discussion and consideration of approving Resolution No. 21-28 authorizing the write-off of uncollectible accounts receivable for ambulance billings for FY 2021 in Fund 28 Fire Department

Motion by Councilmember Holmgren to approve the resolution and authorize those write-offs. Motion seconded by Councilmember Seamons. Roll Call Vote: Councilmember Holmgren – aye, Councilmember Rohde – aye, Councilmember Seamons – aye, Councilmember Vance – aye. Motion approved.

f. Discussion and consideration of approving Ordinance No. 21-08 adopting certain restrictions on the use of fireworks within certain areas of Tremonton City

Mayor Fridal asked how we are going to make this public. Manager Warnke said we will put it on our social media and website. The State’s website also has restrictions. They further discussed what areas would be restricted and what days it is legal to light off fireworks.

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

9. Calendar Items and Previous Assignment

a. Review of calendar

The Council was reminded about helping serve breakfast for Hay Days at Jeanie Stevens Park. They were asked to arrive at 7:30 a.m.

b. Review of past assignment: None.

10. Reports & Comments:

a. City Manager Reports and Comments

1. Presentation to the Box Elder County Commission on the “County & City Transportation and Land Use Vision” on June 16, 2021

Manager Warnke said Mayor Fridal and I attended a meeting with Commissioner Jeff Hadfield. We discussed the idea of having a consolidated vision for Transportation and Land uses in some of the unincorporated areas of the City that Tremonton has declared as part of our annexation boundary. I will present to the County Commission and explain our growth and how we are being pushed to the margins and looking to annex property. We will also revisit our annexation policy plan, which looks at how we facilitate growth within those areas for 20 years. We talk about the State Code, which requires them to give us notice when there is development being proposed within our annexation boundary. We are trying to coordinate these visions and get the County Planner and Commission to work with the City on this interface to come up with a plan and ordinances that allow us to figure out how areas are developed and who will service them. We would also work together on the preservation of transportation corridors and why this is important for both of us. These plans will change over time as things come into focus and land uses change.

b. Development Review Committee Report and Comments:

Manager Warnke said we have a meeting tomorrow to talk to Envision Estates, which is 90 lots by Archibald Estates and the old hospital. This is an area we will be providing secondary water from its inception. We are working with Rivers Edge who is working through issues and moving forward. They are doing the application for the PID.

c. City Department Head Reports and Comments: None.

d. Council Reports and Comments

Councilmember Seamons said the bell sculpture at the library looks very nice—it turned out well.

Councilmember Rohde said the chalk fight for the Library Summer Kick-Off Party was fun.

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

The Council moved into a closed session at 7:46 p.m.

11. CLOSED SESSIONS:

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

The Council returned to open session at 8:07 p.m.

12. Adjournment.

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

The meeting adjourned at 8:07 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 20th day of July, 2021.

Linsey Nessen, City Recorder

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