THE STATE OF UTAH
COUNTY OF SEVIER
CITY OF RICHFIELD
COUNTY OF SEVIER
CITY OF RICHFIELD
At the City Council
In and For Said City
October 22, 2013
In and For Said City
October 22, 2013
Minutes of the Richfield City Council meeting held on Tuesday, October 22, 2013 at 7:00 p.m. in the Council Chambers of the Richfield City office building located at 75 East Center, Richfield, Utah. Mayor Brad Ramsay presiding.
1. OPENING REMARKS
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
5. UPDATE ON IMPACT FEE ANALYSIS DISCUSSED
6. LIBRARY PROGRAM DISCUSSED
7. ENGINEERING CONTRACT WITH CREAMER NOBLE ENGINEERS APPROVED
8. WATER RIGHTS EXCHANGE AGREEMENTS APPROVED
9. SPONSORSHIP OF HONOR FLIGHT PROGRAM APPROVED
10. OTHER BUSINESS
11. EXECUTIVE SESSION
12. RECONVENE & ADJOURN
1. OPENING REMARKS were offered by Mr. Creamer.
2. PLEDGE OF ALLEGIANCE was led by Mayor Ramsay.
3. ROLL CALL was answered by Mayor Brad Ramsay, Councilmembers Kevin Arrington, Richard Barnett, Bryan Burrows, Kathy Christensen, Mike Turner, City Manager Matthew Creamer, City Finance Director Mike Langston and City Recorder Michele Jolley.
Others present: David Ogden, John Spendlove, Patrick Bodily, Barbara Crowther, Jordan Crowther and David Anderson.
4. APPOINTMENTS. Names of individuals willing to serve as poll workers for the upcoming election were presented. Councilmember Turner moved to approve the list of individuals to serve as poll workers for the upcoming municipal general election. Councilmember Christensen moved to second. The motion carried on the following vote: Councilmember Arrington, aye; Councilmember Barnett, aye; Councilmember Burrows, aye; Councilmember Christensen, aye; and Councilmember Turner, aye.
5. UPDATE ON IMPACT FEE ANALYSIS DISCUSSED. John Spendlove from Jones & DeMille Engineering explained that one of the concerns when the Council previously discussed this matter was that the information from the purchase of water rights needed to be updated.
With this information, Mr. Spendlove was able to determine an average overall cost per acre feet, which he estimates to be just over $5,100 based on the City’s purchase of water rights over the past 13 years. In the last analysis, Mr. Spendlove said this figure was around $8,000.
Mr. Langston stated that 13 years later, water rights are significantly more expensive than they were in 2000. He felt that a cost of $6,000, $7,000 or $8,000 per acre feet would be a more realistic. Councilmember Barnett noted that in 2000 we purchased 266 acre feet and in 2013 we purchased a total of 60 acre feet; so we purchased almost 5-times as much 13 years ago. The average is weighted against us by time and by volume. Mr. Langston also noted that we took a hair cut on the 266 acre feet we purchased back in 2000. This was a well right, so the haircut was not that significant, but it was reduced and the 266 was the total after the cut. Mayor Ramsay pointed out that the purchase price also included land. Mr. Langston felt that the majority of the purchase price was for the water rights.
The culinary water impact fee summary shows that the cost of a water right for an equivalent residential connection would be $4,655 for the right and $152 for storage; so a total impact fee of $4,807 per residential connection could be charged. However the suggestion at the last meeting was to charge around $3,000 for the culinary water impact fee. There was not an impact fee calculated for source, but Mr. Langston stated that we could calculate an impact fee for source based on the cost of the shop well. This project included more than just the well. It also included the tank south of town and some distribution mains. We would have to separate out just the source, but Mr. Spendlove would have the records and could do that. Mr. Spendlove put these numbers together and recalled that the indebtedness for the well was close to $800,000 to $900,000. He could add in the cost for source fairly easily.
Councilmember Burrows indicated that in addition to the impact fee, the City will still be getting surface water from developers at the time of annexation.
Mr. Langston thought that the money spent on the well should be added to the culinary water impact fee, even if we do not charge a higher impact fee. Mr. Creamer felt that adding this would give a more complete picture.
Mr. Spendlove told the Council that they should look at the contribution of the actual water rights at annexation plus the impact fee that would be assessed to ensure that the total assessed is not more than the total impact fee that we can charge. Mr. Creamer stated that with the new numbers Mr. Spendlove has presented tonight, we may very well need to tweak our proposal either on the annexation water or the impact fee or both.
Councilmember Barnett suggested that we take the water that was purchased in 2000 and put that in 2013 dollars. This figure needs to be adjusted for today’s money, so we know what that water actually cost us. Councilmember Burrows does not think we could legally do that. Mr. Spendlove explained that the cost per acre foot has to be based on what we paid and not the current value because the City can only recoup the actual costs. Mayor Ramsay asked how accurate the requirement of .9 acre-ft per residential unit is. Mr. Spendlove stated that the indoor use or the .9 acre-ft is set by the State. Outdoor use was determined by estimating an average acreage in the City that is watered and how much water that takes. Mr. Langston stated that the typical lot size was based on the developed lots in the North by Northeast Subdivision and the average arrived at was approximately .15 acres of irrigated land.
Mr. Creamer asked if Mr. Spendlove would build in an amount for source so that we are showing all of the costs. It is not a matter that we are going to charge more because of that, but it is a matter of justifying what we are going to charge.
Mr. Spendlove explained that the impact fee for wastewater is divided into three zones. Zone 1 is the main part of the City. Zone 2 is the northeast area and zone three is the southwest area. Mr. Langston asked if the zones are mapped so as people develop we would know which wastewater impact fee applies to their property. Mr. Creamer proposed to round all of the suggested wastewater impact fees down to the nearest $50. The impact fee for each zone being $450, $1,350, and $900; respectively.
Mr. Spendlove explained that the residents are paying on the collection lines through their monthly utility rates. That means that the City would have to give the individuals who connect in the wastewater zones a reduced fee on the collection lines because the indebtedness is paid by the collection of user rates.
When the City collects an impact fee, it has to be spent or encumbered within 6 years from the date collected. Where the City is generally using it to pay off debt service for loans it has never been an issue. Mr. Creamer asked if the City would have to have a table of reduced impact fees for water rights, water source and water storage as well. Mr. Spendlove stated that the City will have to have a table of reduced impacts fees for each and the table would be based on the debt service that the City has now for those services. The table would not change unless the City acquires new debt for these services.
6. LIBRARY PROGRAM DISCUSSED. Patrick Bodily thanked the Council for allowing him and another employee to go to Omaha for training. They learned a lot of things, one of which was how to make the most space out of no space. So he is working on making it at least seem like there is more space in our library.
Mr. Bodily invited the Council to the second annual Veteran’s Day program on Monday, November 11 at 6:00 p.m. in the Council chambers. We purchased DVDs that are battle field tours and along with performance rights so that we can show them to the public. Last year we watched the Americans on D-Day. This year we are viewing the Americans on Hell’s Highway and the 222nd is going to see if they can have a representative here. Quartermaster Cowley from the VFW will also be here and will speak again this year.
7. ENGINEERING CONTRACT WITH CREAMER NOBLE ENGINEERS APPROVED. Mr. Creamer stated that this Engineering Contract is for Schedule B, Schedule C, Schedule D and Schedule E of the Airport project. These schedules are the ones that are in process. The way the contracts work with FAA is that the engineer submits a proposal with prices and then FAA sends the contracts to another independent engineer for review. The independent engineer then reports back to FAA as to whether or not the costs are in line with industry norms. This contract has been through that process and is now ready to be approved. Councilmember Barnett moved to approve the contract with Creamer Noble Engineering for schedules B, C, D and E. Councilmember Turner moved to second. The motion carried on the following vote: Councilmember Arrington, aye; Councilmember Barnett, aye; Councilmember Burrows, aye; Councilmember Christensen, aye; and Councilmember Turner, aye.
8. WATER RIGHTS EXCHANGE AGREEMENTS APPROVED. Mr. Creamer discussed the proposed exchange for underground water and surface water with Oren Bliss and the Gardner Brothers. These two parties approached the City about exchanging surface water for underground water. Mr. Creamer stated that we do not know what the State Engineer is going to say. There are some challenges in transferring this water, but the agreement is written so that it is the private parties who will make application to the State Engineer with the information that the water is part of a proposed trade to Richfield City. Once the State Engineer determines what the transferability of these rights are, then the private parties will have the right to look at that and see if they feel like they are still getting fair value for their water. If they elect to move forward, we will make the trade based on a value for value basis using the appraised value of the water rights and our most recent costs for purchasing underground water, which was $6,500 per acre foot.
Mayor Ramsay asked how many acre feet there would be in the exchange. The total for the Bliss water is 72 acre feet and the total number for the Gardner water is somewhere between 11 and 12 acre feet. So potentially the trade could give the City a total of 84 acre feet. It could be less if the State Engineer gives a shrink on the shares. Councilmember Burrows stated that the application has already been submitted to the State Engineer. The process will take about 5 weeks to complete.
Adding uncertainty to the exchange is the fact that these particular water rights are on the other side of the Vermillion Canal putting them in the opposite zone from Richfield’s water. Mr. Creamer also explained that transferring from zone to zone is more difficult.
Councilmember Burrows moved to approve the Exchange Agreements with Oren Bliss and the Gardner Brothers. Councilmember Arrington moved to second. The motion carried on the following vote: Councilmember Arrington, aye; Councilmember Barnett, aye; Councilmember Burrows, aye; Councilmember Christensen, aye; and Councilmember Turner, aye.
9. SPONSORSHIP OF HONOR FLIGHT PROGRAM APPROVED. Councilmember Turner explained that this has been going on in other States and it is a program to send Veterans to the War Memorial in Washington, D.C. Councilmember Turner stated that there is a trip planned for October 30, which will be the last trip for this year. They are trying to gather enough names and money for next year to send a flight of Veterans out every 2 weeks; if not every week. This is a State-wide program that happens to be based in Richfield. WWII Veterans are given priority because of their age. Councilmember Burrows moved to approve a sponsorship of $500 for the Honor Flight program. Councilmember Arrington moved to second. The motion carried on the following vote: Councilmember Arrington, aye; Councilmember Barnett, aye; Councilmember Burrows, aye; Councilmember Christensen, aye; and Councilmember Turner, aye. Councilmember Turner abstained from voting.
10. OTHER BUSINESS. Councilmember Arrington reminded the Council about some interest in the community to purchase and move the lights at the old tennis courts. He and Mr. Creamer talked about a bid process for the purchase and relocation of the lights. Mr. Creamer will check with the School District to see what the demolition schedule is for the old courts.
Councilmember Burrows stated that Jones & DeMille were supposed to get the Fire Department a map showing the location of some fire hydrants that they were going to look at and compare the map with the actual location of the hydrants. Mr. Creamer will get with Councilmember Burrows on this tomorrow.
Mayor Ramsay, Police Chief Evans and Mr. Creamer are meeting tomorrow with the County and the School District to finalize plans for the School Resource Officer.
The application deadline for the building inspector job was last Friday. We received 7 applications. The Committee is going to review the applications and hopefully narrow it down and hold interviews within the next 2 weeks.
On Thursday, November 7, Mr. Langston, Mr. Creamer and Mayor Ramsay are going before the Community Impact Board to plead our case for additional grant money for the Airport project.
The County elected not to sponsor the 23rd Army Band this year. We found out that the County did not inform the Army Band about this change, so the City is stepping in to sponsor them along with the Sevier Valley Center and The Richfield Reaper, so our cost will be minimal. The concert will be held on Saturday, December 7. The County has a Country concert that same night down at the Fairgrounds, so we will be holding the Army Band concert earlier at 5:00 p.m. to avoid direct competition.
Saturday, December 14 is the Christmas Light Parade.
The City Christmas Party will be held Friday, December 20 at Frontier Village.
The first big event of the sesquicentennial celebration will be on New Year’s Eve with a party on Main Street.
Councilmember Barnett reported that there are trees over growing the bike path. They are also coming up under the asphalt creating bumps.
11. EXECUTIVE SESSION. At 8:36 p.m., Councilmember Christensen moved to adjourn regular session of the Richfield City Council and convene an executive session to discuss a litigation matter and the sale of real property. Councilmember Turner moved to second. The motion carried on the following vote: Councilmember Arrington, aye; Councilmember Barnett, aye; Councilmember Burrows, aye; Councilmember Christensen, aye; and Councilmember Turner, aye.
12. RECONVENE & ADJOURN. At 9:00 p.m., Councilmember Christensen moved to reconvene and adjourn. Councilmember Turner moved to second. The motion carried on the following vote: Councilmember Arrington, aye; Councilmember Barnett, aye; Councilmember Burrows, aye; Councilmember Christensen, aye; and Councilmember Turner, aye.
PASSED and APPROVED this 12 day of November, 2013.