|
|
Home » City Government » Council » Schedule: Agendas and Minutes 2005 » Council Minutes 2005 » May 19, 2005
May 19, 2005
The Lindon City Council held a special meeting beginning at 5:30 p.m., on Thursday, May 19, 2005, in the Lindon City Center, City Council Chambers, at 100 North State Street, Lindon, Utah.
SPECIAL SESSION – 5:30 P.M.
Conducting: Jeff Acerson, Mayor
Pledge of Allegiance: Bruce Carpenter, Councilmember
Invocation: Ott Dameron, City Administrator
PRESENT ABSENT
Jeff Acerson, Mayor
Eric Anthony, Councilmember
H. Toby Bath, Councilmember
Lindsey Bayless, Councilmember
Bruce Carpenter, Councilmember
Jerald I. Hatch, Councilmember
Ott H. Dameron, City Administrator
Debra Cullimore, Deputy Recorder
The meeting was called to order at 5:42 p.m.
MINUTES –
No minutes were reviewed at this meeting.
OPEN SESSION –
There were no citizen comments at this meeting.
MAYOR’S COMMENTS/REPORT –
The Mayor gave no report at this meeting.
CONSENT AGENDA -
No items at this meeting.
CURRENT BUSINESS –
1. Resolution – Final Bond Resolution and Related Matters – 700 North Street. The City Council will give consideration to the final bond resolution authorizing the city to issue sales tax revenue bonds, series 2005, in an aggregate amount of $3,700,000 at 3.75% interest, over twenty years, and to enter into a Bond Purchase Agreement, a Master Indenture of Trust, and a Supplemental Indenture of Trust for the construction of 700 North Street and the infrastructure required; and related matters.
Mr. Dameron distributed copies of all relevant documents to the Mayor and Council for review. He stated that the agreement had already been signed by Bank of America, and that Bank of America had agreed to all terms of the bond. Mayor Acerson commented on the interest rate provided for in the agreement, noting that it is an unheard of rate, and will be a great financial benefit to the City. Mr. Dameron noted that the terms of the agreement were better than had been anticipated by the City.
Mr. Dameron informed the Council that in the initial application to Bank of America, the City’s obligation to UTOPIA in the amount of $308,000 per year had been inadvertently left out of the application information. Upon realizing the omission, Bank of America was contacted with the relevant information. Bank of America reviewed the terms of the agreement taking the new financial information into consideration, and no changes were made to the terms of the agreement. Councilmember Anthony commented that the terms of the agreement are an indication that the City has managed its’ tax revenue base very well. It was also noted that the desire of Bank of America to establish a presence in Utah was a factor in the terms of the agreement.
Mayor Acerson asked for any further questions or comments regarding the Bond Agreement. Hearing none, he called for a motion.
COUNCILMEMBER CARPENTER MOVED TO ADOPT RESOLUTION 2005-11 AUTHORIZING THE CITY TO ISSUE SALES TAX REVENUE BONDS, SERIES 2005, IN AN AGGREGATE AMOUNT OF $3,700,000, AT 3.75% INTEREST, OVER TWENTY YEARS. COUNCILMEMBER ANTHONY SECONDED THE MOTION. THE VOTE WAS RECORDED AS FOLLOWS:
COUNCILMEMBER ANTHONY AYE
COUNCILMEMBER BATH AYE
COUNCILMEMBER BAYLESS AYE
COUNCILMEMBER CARPENTER AYE
COUNCILMEMBER HATCH AYE
THE MOTION CARRIED UNANIMOUSLY.
COUNCILMEMBER CARPENTER MOVED TO APPROVE THE BOND PURCHASE AGREEMENT AND RELATED EXHIBITS WITH BANK OF AMERICA FOR THE CONSTRUCTION OF 700 NORTH STREET AND THE ASSOCIATED INFRASTRUCTURE. COUNCILMEMBER BATH SECONDED THE MOTION. THE VOTE WAS RECORDED AS FOLLOWS:
COUNCILMEMBER ANTHONY AYE
COUNCILMEMBER BATH AYE
COUNCILMEMBER BAYLESS AYE
COUNCILMEMBER CARPENTER AYE
COUNCILMEMBER HATCH AYE
THE MOTION CARRIED UNANIMOUSLY.
Mr. Dameron noted that the transaction with Bank of America would close on June 1, 2005, and that construction could begin as soon as easements and right-of-ways are transferred to the City, and proof of insurance and bonding is verified with the contractor.
Mr. Dameron pointed out that a discrepancy had been discovered in the documentation relating to the transaction. The terms of repayment had been outlined differently in the confirmation letter than in the official documents relating to the transaction. Mr. Dameron stated that while the correct information had been presented in the City Council meeting held on May 17, 2005, it would be necessary for the Council to include approval of a revised confirmation letter on the agenda for this meeting. This action will ensure that all documents relating to the transaction contain accurate information.
COUNCLMEMBER BAYLESS MOVED TO INCLUDE THE APPROVAL OF THE REVISED CONFIRMATION LETTER RELATING TO THE BOND AGREEMENT FOR 700 NORTH STREET ON THE AGENDA FOR THIS MEETING. COUNCILMEMBER ANTHONY SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
COUNCILMEMBER CARPENTER MOVED TO APPROVE THE REVISED CONFIRMATION LETTER RELATING TO THE BOND AGREEMENT FOR 700 NORTH STREET. COUNCILMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
2. Budget Work Session – Council and Staff Budget Work Session. The City Council will meet with staff to discuss the proposed budgets for fiscal year 2005-2006. The discussion will include the budgets for the city, the RDA, and the MBA.
Kristen Colson, Finance Director/Treasurer for the City, presented the proposed budget for fiscal year 2005-2006. Ms. Colson presented a list of proposed capital expenditures, as well as a list of possible budget issues which will require consideration from the Council. Ms. Colson then discussed each of the proposed budget issues with the Council. Possible areas of concern for the city were presented as follows:
1. The addition of a Code Enforcement position in the Building Department and associated costs. Councilmember Bayless inquired as to the vehicle which will be provided for this position. Ms. Colson stated that the proposed plan is to use a truck which is scheduled to be replaced in the Public Works Department, which would require no additional expenditure for the City. This is contingent upon approval of capital expenditures for the Public Works Department which will include the purchase of the new vehicle. Mr. Dameron noted that it the practice of the City to trade in vehicles at the point where they have approximately 75,000 miles on them. This allows them to retain some trade in value. The vehicle which will be used for the Code Enforcement position is a vehicle which has reached the mileage at which it would be traded in for a new vehicle. Use by the Code Enforcement position will lengthen the use of the vehicle by the city.
2. Ms. Colson then presented figures relating to funding the increase in health insurance costs. During a recent employee meeting, employees were given an opportunity to vote on their preference for health care coverage. The first option discussed would keep coverage the same, but would require an increase in the payroll deduction amount employees would be required to pay. The second option would keep payroll deduction amounts the same, but coverage would be reduced to 80/20 with an annual deductible, as opposed to the current plan which pays 90/10 and requires no annual deductible. Employees voted to keep payroll deduction amounts the same, and reduce the amount of coverage which includes an annual deductible associated with major medical expenses. Ms. Colson clarified that typical expenses incurred by employees, such as office visit co-pays, would remain the same. An increase would be realized only in the event of hospitalization or other major medical expenses. Ms. Colson stated that implementation of this healthcare insurance option would result in an increase in the amount of $22,023 to the city, which is a 7.4% increase. Councilmember Bayless noted that it is commendable that City employees were willing to take the conservative option.
3. Ms. Colson stated that the proposed cost of living increase for employees is 3.5%. She stated that the Federal Consumer Pricing Index (CPI) in April of 2005 was consulted in calculation of proposed cost of living pay increases. Councilmember Anthony inquired as to why the Federal rather than the State CPI was used. Ms. Colson informed him that it has been the practice of the City to use the Federal CPI for many years. Councilmember Anthony requested that the State CPI be consulted prior to approval of the amount of the cost of living pay increase for employees to ensure that the figures being used were consistent with the actual cost of living increase in this area. Councilmember Anthony pointed out that it is not the usual practice of public businesses to include an annual cost of living increase. He stated that business practice is to include a merit pay increase only. Councilmember Carpenter observed that in private business there are many more opportunities for career advancement than are available in government positions. Therefore, it is necessary to provide pay increases using an applicable standard. Mr. Dameron noted that current policy of the City attracts and retains quality employees. He commented that while Lindon is not on the leading edge of wages in the area, they are competitive with other cities in relation to employee compensation.
4. Ms. Colson and Mr. Dameron then presented information recently obtained from a wage study which the City conducted. Information relating to employee compensation was gathered from seven communities in Utah County for comparison with the compensation offered by Lindon City. Mr. Dameron reviewed results of the wage study which indicate that Lindon City is in a competitive range for employee compensation packages. While there were discrepancies in wages for specific positions, Mr. Dameron felt that there are differences in individual communities which need to be taken into consideration when determining compensation. He felt that while wages should be reviewed, changes did not necessarily need to be made to the pay scale used by Lindon City. Mr. Dameron reviewed the current pay structure used to determine pay ranges and increases for employees. The pay scale is based on pay ranges and steps within the ranges. The pay range is based on job descriptions, while the steps within the pay ranges are based on both longevity and job performance. Job performance is determined through the use of employee evaluations, which include goal setting. Employee evaluations are conducted annually. Mr. Dameron stated that this system was implemented by Mayor Scott Cullimore in 1993-1994, due to the fact that he was concerned about consistency in employee pay. Prior to implementation of this system, employees were required to make personal requests for pay increases. Councilmember Anthony stated that while he felt it would be rational to be consistent with governmental pay scales, he felt further investigation would be advisable. Mr. Dameron stated that he would consult the State CPI, as well as investigate the criteria used by other cities in the area in determining pay increases for employees. Councilmember Anthony observed that the expenses of the City are currently growing at a slower rate than the revenue sources are growing. He commented that there will be a large increase in tax revenue during the next five years, due to the development of 700 North, after which he would anticipate revenues will stabilize. Councilmember Anthony felt that careful planning will be necessary to ensure that expenses will stabilize at the point when revenue sources stabilize. Councilmember Bayless observed that the City has been very fortunate for the past ten to twenty years. Mayor Acerson commented that the City has been managed very well in the past. Mr. Dameron stated that the City is “standing on the shoulders of those who came before us”. Councilmember Carpenter noted that following review of the employee evaluations from last year, he felt they were very well done, and included both areas of improvement as well as areas of merit for employees. He stated that overall he feels that employees feel supported by the City. Mr. Dameron and the Council discussed possible changes to tax revenues in the future due to changes implemented by the State and the possible effect on tax revenue to the City. Councilmember Anthony suggested the possibility of the need to lobby at the legislature in order to protect necessary revenues.
5. Ms. Colson reviewed expenses associated with the purchase of a vactor truck for the Public Works Department. The cost of the truck will be approximately $86,400 per year for three years, and includes an estimated 4% interest rate. The life expectancy of the new truck is between ten and fifteen years. Councilmember Bayless inquired as to the trade in amount for the vactor truck already owned by the City. Mr. Dameron stated that the City has been offered $70,000 trade in value, which would reduce the cost of the new truck by that amount. Councilmember Bayless noted that this would reduce the annual payments by as much as $20,000. Councilmember Carpenter observed that the trade in value is equivalent to approximately 40% of the overall cost. Mr. Dameron noted that other options for the trade-in of the truck would be investigated prior to final approval. Councilmember Bath inquired as to the purchase of a new bob-cat for the Public Works Department. Mr. Dameron explained that the City participates in a program in which certain large equipment is traded-in every two to four years, and that the cost associated with the trade in will be approximately $1,600. Mr. Dameron noted that this program enables the City to maintain a high quality of equipment for use in providing services to residents.
Councilmember Anthony noted that there is no line item relating to trees which will be part of achieving Tree City USA designation. He felt that documentation of this item would be important in future budgets. Ms. Colson reminded him that much of the financial commitment required of the City can be achieved through volunteer hours, but that a line item specific to Tree City USA could be added to the budget.
Discussion continued among the Council regarding wages for specific positions in Lindon City and neighboring communities. Mr. Dameron cautioned that it is necessary to use common sense in interpreting the results of the wage study. Mayor Acerson asked Mr. Dameron if it is his recommendation that changes be made to the pay structure used by the City. Mr. Dameron stated that he felt the issue should be reviewed further prior to making final recommendations. Councilmember Bayless pointed out that there will be two scheduled public hearings prior to final approval of the budget.
Mr. Dameron inquired as to whether the Council felt the tentative work session scheduled for June 1, 2005 would be necessary. The Council felt that it would not be necessary. Mr. Dameron stated that it would be necessary to schedule a budget committee meeting prior to the public hearing on the budget. Subsequent to review of individual schedules, a budget committee meeting was scheduled for May 25, 2005 at 4:00 p.m. The committee will review further budget information.
COUNCIL REPORTS –
No individual reports were given at this meeting.
ADJOURN –
COUNCILMEMBER BATH MOVED TO ADJOURN THE MEETING AT 7:09 P.M. COUNCILMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
APPROVED – June 7, 2005
______________________________________
Ott H. Dameron, City Administrator/Recorder
______________________________
Jeff Acerson, Mayor
|
|
|
