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Home » City Government » Council » Minutes Archives; 2000 - 2003 » 2002 Council Minutes » June 18, 2002
June 18, 2002
The Lindon City Council held a regularly scheduled meeting, beginning with a Work Session at 6:00 P.M. on Tuesday, June 18, 2002, in the Lindon City Center Council Chambers at 100 North State Street, Lindon, Utah.
Conducting: Larry A. Ellertson, Mayor
PRESENT
Larry A. Ellertson, Mayor
Jeff Acerson, Councilmember
Lindsey Bayless, Councilmember
Jerald I. Hatch, Councilmember
Ott H. Dameron, City Administrator
Venla Gubler, Administrative Clerk
ABSENT
H. Toby Bath, Councilmember
James A. Dain, Councilmember
Kevin Smith, Planning Director
The Meeting began at 6:24 P.M.
WORK SESSION
The Mayor and Council will meet with representatives of Dynamic City to discuss the particulars of the operational concept and status of UTOPIA, of which Lindon City is a founding member.
Ben Dehoyas De Hoyas from Dynamic City was present. He explained that the purpose of the preliminary assessment is to attempt to give the city enough information that a decision can be made whether to proceed with the next phase of the project. He commented that obtaining specific data on the installation and maintenance of a fiber network is a costly and lengthy process. This preliminary assessment report is a thumbnail sketch at a high level perspective. He acknowledged that UTOPIA would not be able to bond without the details, but these will be part of the next phase, the feasibility study.
Mr. Dehoyas De Hoyas reviewed the assumption and methodology of the preliminary assessment. He observed that the city had given Dynamic City the numbers of homes and businesses in Lindon. He discussed the range of possibilities in “take rates,” which he defined as the percentage of end users over a period of 20 years, or the maximum penetration rate. He observed that these take rate percentages are based on past experience in other communities across the country and particularly in Box Elder County. He informed the Council that the low take rate is estimated at 35%, the midrange take rate is 50-65% and the high take rate is 80%. He discussed the costs, both fixed and variable and showed how the variable costs decrease as more subscribers connect to the system.
Mayor Ellertson verified that, at current prices, it will cost about $1,200 per home to run the fiber optic system. Mr. Dehoyas De Hoyas agreed with this assessment and noted that the total cost of the system in Lindon is estimated at $4.15 million and will have a 50% maximum penetration rate in eight years. However, he pointed out, this is fairly new technology and as time passes, the costs will decrease. He also noted that another variable to these costs are whether the lines will be aerial or underground. This estimate assumes that the system will be totally underground and require replacement in ten years. He asked the Council to note that the system will still break even in about year five and that includes debt costs and replacement costs. He observed that the first three years have assumed capitalized payments and interest to allow the system to build revenues.
Mayor Ellertson asked what cost the monthly average user will see. Mr. Dehoyas De Hoyas replied that the figures are based on a cost of $39.95 wholesale per customer which is approximately 50% of the retail cost. He added that the customer’s monthly bill is about 50% above that ( will be about $80.00) and would include voice, video and data services. Mr. Dehoyas De Hoyas explained that in Box Elder County, a survey disclosed that consumers overwhelmingly chose all services (73%), even without knowing the price and only knowing that they would have better service. He acknowledged that this figure would change depending on the area served. Mayor Ellertson asked if the network would provide basic phone service. Mr. Dehoyas De Hoyas replied yes and added that the average consumer has between one and two lines.
Mr. Dehoyas De Hoyas discussed the bonding issues, including the estimated amount of the payment. He invited the Council to attend a vendor showcase next Monday. He explained that these are the people that will provide service through the network.
Mayor Ellertson asked how the costs for Lindon compare with other communities. Mr. Dehoyas De Hoyas replied that Lindon’s costs are higher per home passed because there is not the population base to spread the costs. The costs to connect a home are also higher. Mayor Ellertson asked if the network is designed to stand alone or to share equipment with the border cities of Orem or Pleasant Grove. Mr. Dehoyas De Hoyas replied that the system is calculated as a stand alone, but agreed that it would probably not be constructed that way. Mr. Dameron asked if any cities are not recommended to go on. Mr. Dehoyas De Hoyas replied yes and explained that Cedar Hills and others small cities in Box Elder County were not feasible. He added that they may be built off as a neighborhood of a neighboring larger city later. He observed that the good news is that the assumptions are conservative and flexible.
Mayor Ellertson asked if the cost on the part of a subscriber would change from city to city. Mr. Dehoyas De Hoyas replied that all service providers will hook into the system at one point so every subscriber will have the same price. Mr. Harlow Clark asked if there was opposition from service providers already operating in the neighborhoods. Mr. Dameron replied that Qwest is one of the providers that have expressed an interest in using the network. Mr. Dehoyas De Hoyas clarified that Qwest has expressed a marginal interest, but they are not ruled out yet. He added that the city offers the system and gets paid by the providers to use the system. He noted that this would allow the smaller, “hungry” service providers to compete with Qwest and AT&T. Mr. Clark asked if the legislature had adopted laws that allow competition to Qwest’s monopoly. Mr. Dehoyas De Hoyas replied that House Bill 149 takes away the hurdles in participation. The structure and bonding ability of UTOPIA were explained to Mr. Clark.
Mayor Ellertson thanked Mr. Dehoyas De Hoyas for his presentation and asked the Council if there were more questions. There were none.
(Councilmember Acerson was excused at 7:00 p.m.)
REGULAR SESSION
Conducting: Larry A. Ellertson, Mayor
Pledge of Allegiance: H. Toby Bath
Invocation: Lindsey Bayless
PRESENT ABSENT
Larry A. Ellertson, Mayor
Jeff Acerson, Councilmember (arrived at 11:08 p.m.)
H. Toby Bath, Councilmember
Lindsey Bayless, Councilmember
James A. Dain, Councilmember (arrived at 8:00 p.m.)
Jerald I. Hatch, Councilmember
Ott H. Dameron, City Administrator
Kevin Smith, Planning Director
Venla Gubler, Administrative Clerk
The Meeting began at 7:07 P.M.
PRESENTATION - The Mayor and Council will honor Lisa Gillman, Chair of the Lindon City Historical Preservation Committee from 1998 to 2001.
Mayor Ellertson prefaced the presentation by saying that the City has appreciated the service of Lisa Gillman. He commented that the Historical Preservation Committee has done good things under her tutelage. Mayor Ellertson presented a certificate and a token of appreciation (gift certificate to Outback Steak House) to Ms. Gillman and pictures were taken. Ms. Gillman thanked the Council for the support that has been given to the Historical Preservation Committee. She thanked, in particular, Councilmember Bayless and Planning Director Kevin Smith for their help. She commented that the persons on the committee are amazing because of what they do in spite of their other obligations of family, church and business. She observed that she felt that the committee would continue to do more good things.
MINUTES
Review of the Minutes of the meetings of May 15, May 28, and June 4, 2002.
The minutes of the work session of May 15, 2002 were reviewed. The following corrections were made:
Page 3, Line 8: Replace the title “Commissioner” with the title “Councilmember.”
Page 4, Line 14: Replace the name “Laurie” with the name “Lori.”
COUNCILMEMBER HATCH MOVED TO APPROVE THE MINUTES OF THE WORK SESSION OF MAY 15, 2002 AS CORRECTED. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
The minutes of the meeting of May 28, 2002 were not available. They will be reviewed on July 2, 2002.
The minutes of the regular meeting of June 4, 2002 were reviewed. The following corrections were made:
Page 2, Line 34: Delete the word “the” after the word “than.”
Page 9, Line 2: Replace the word “an” with the word “a.”
Page 10, Line 10: Replace the word “CONVENE” with the word “CONVENED.”
Page 10, Line 13: Add the parenthetical remark “(The Council also met as the Municipal Building Authority during this adjournment.)”
Page 12, Line 6: Replace the “100" with a “200" and the “200" with a “600.”
COUNCILMEMBER BATH MOVED TO APPROVE THE MINUTES OF THE REGULARLY SCHEDULED MEETING OF JUNE 4, 2002 AS CORRECTED. COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
OPEN SESSION - Citizens comments
Mayor Ellertson asked if there was anyone present who would like to bring up a topic not on the regular agenda. Ms. Lisa Armstrong commented that Brian Walker was supposed to be here to discuss adding a calf riding event to the Lindon Days schedule. She said that he was concerned about insurance coverage. Mr. Dameron answered that the city’s insurance only covers spectators. Those who participate are expected to sign a waiver.
Ms. Armstrong informed the Council that Mr. Walker had previously considered adding steer roping, but found that there are four other sanctioned events with a two week period of Lindon Days. He has decided though that he would like to pursue calf riding for the older kids. Mayor Ellertson asked what this event would bring to the celebration. Ms. Armstrong answered that it would make the rodeo a larger part of the celebration and bring others from outside the community to participate. She mentioned that eventually Mr. Walker would like to have a full-fledged rodeo. Mr. Bruce Armstrong suggested that the event could be expanded a little every year starting with this year. Mayor Ellertson asked if the existing arena was large enough now to accommodate the addition of this event. Ms. Armstrong indicated that the arena was sufficient for this year, but improvements may need to be done for other years.
Councilmember Bayless asked how Pleasant Grove handles the insurance for Strawberry Days. Mr. Dameron replied that the participants signed waivers and the PRCA has insurance for their members. Mr. Armstrong indicated that, as chairpersons for Lindon Days, they would like to support the efforts of their committee members. Mayor Ellertson asked if the event was put in the schedule. Ms. Armstrong indicated that if the Council approves the event, it will be added to the schedule this week in time for printing the program. Mayor Ellertson suggested re-opening the Public Comment section of the meeting later when Mr. Walker arrived to consider this item. The Council agreed. Mayor Ellertson asked if there were others to address the Council. There were none.
MAYOR’S COMMENTS AND REPORT
Mayor Ellertson reported that the Legislative Committee of the League of Cities and Towns had met the previous day and discussed transportation and taxing issues. He commented on President Bush’s invitation to get involved in communities. He indicated that he was also interested in getting people involved in volunteering. He observed that there are needs for volunteers in emergency preparedness, existing services such as public safety, projects of upkeep and maintenance and other opportunities for service.
Mayor Ellertson informed the audience that the city is engaging in an ongoing dialog on coordinating volunteer efforts. He commented that the community is better when people get involved, especially the youth. Mr. Harlow Clark asked who should be contacted if someone wants to volunteer for a project. Mayor Ellertson indicated that he can be contacted directly or through Mr. Dameron.
Mayor Ellertson observed that the other issue he would like to address is that of water conservation. He suggested that residents not just set their timers to water as usual. He commented that if they do they are probably over watering. He suggested that residents consciously decide when to water and be careful of the use of water. He asked Mr. Dameron to put another reminder to residents in the water bill. Mr. Dameron agreed and commented that another reminder now that we are coming into the hottest part of the year would be appropriate. Mayor Ellertson asked if there were questions for him. There were none.
CONSENT AGENDA - No items
CURRENT BUSINESS
1. Resolution - Property Condemnation. This item was on the March 5, 2002 agenda and was continued to allow time for the city to obtain an appraisal of the subject property located at 785 North State Street. The appraisal is now complete and the property owner has had an opportunity to reach an agreement with the city and has refused. In order to obtain the property necessary for a portion of the proposed 700 North Street on the west side of State Street, it has become necessary to consider exercising the city’s right of eminent domain on this parcel. The Council will consider the resolution which will begin the process to obtain the necessary property.
Mayor Ellertson observed that the first item is a property condemnation for the development of 700 North Street from State Street to Geneva Road. He informed the Council that he had received a phone call from the property owner, Mr. Bruce Saderup, who is out of town this evening. Mr. Saderup has expressed some concerns that he has not had time to review the appraisal and adequately negotiate with the city. Mayor Ellertson verified with Mr. Dameron that Mr. Saderup has a copy of the appraisal available to him.
Mayor Ellertson commented that his concern is that this resolution to condemn does not jeopardize negotiations with the property owner. He indicated that his interest is to work with the property owner to resolve this without having to go to court. City Attorney Gordon Duval replied that the city had tendered a written offer to Mr. Saderup in March. There has been an appraisal of the property in question since. He suggested that the city tender a new offer based on the appraisal with a time limit of one weeks week for acceptance or denial. At the end of that week, the condemnation action can be filed with the court, but this does not preclude the continuation of negotiations. Councilmember Bath confirmed that the city can go ahead and approve the resolution to condemnation and still allow Mr. Saderup the opportunity to review the new offer when he returns. Mr. Duval agreed and suggested that the action be filed with the court at the end of the week. Mr. Dameron asked Mr. Duval to write up the offer using the appraisal.
COUNCILMEMBER BATH MOVED TO APPROVE RESOLUTION 2002-6 AUTHORIZING THE ACQUISITION OF REAL PROPERTY BY CONDEMNATION BY LINDON CITY FOR THE PURPOSE OF CONSTRUCTING A PUBLIC STREET AT APPROXIMATELY 785 NORTH STATE STREET, LINDON CITY, UTAH WITH THE UNDERSTANDING THAT THE ACTION WILL BE DELAYED ONE WEEK UNTIL FRIDAY, JUNE 28, 2002 TO ALLOW THE PROPERTY OWNER AN OPPORTUNITY TO REVIEW AND ACCEPT AN OFFER BY THE CITY AT THE APPRAISED VALUE OF THE PROPERTY. IF THERE IS NO RESPONSE FROM THE PROPERTY OWNER OR THE OFFER IS DENIED ON THAT DATE, THE CONDEMNATION ACTION WILL BE FILED IN COURT ON JULY 1, 2002. COUNCILMEMBER HATCH SECONDED THE MOTION. THE VOTE IS RECORDED AS FOLLOWS:
COUNCILMEMBER ACERSION ABSENT
COUNCILMEMBER BATH AYE
COUNCILMEMBER BAYLESS AYE
COUNCILMEMBER DAIN ABSENT
COUNCILMEMBER HATCH AYE
THE VOTE WAS UNANIMOUS (3-0) WITH TWO ABSENT. THE MOTION CARRIED.
2. Public Hearing - Ordinance to Amend and Adopt Impact Fees. The City Council will hear public comment and possibly act to approve an ordinance which will update city-wide impact fees for culinary water, sewer and parks; and adopt a new streets impact fee for the area around and impacted by the new I-15 Interchange. Lewis, Young, Robertson, and Burningham (Financial Consultants) have completed a study for this proposed action.
Mr. Dameron noted that a representative from Lewis Young Robertson & Burningham, who have prepared the Impact Fee Analysis, was present. She was introduced as Elise Christensen.
COUNCILMEMBER BATH MOVED TO OPEN THE PUBLIC HEARING FOR AGENDA ITEMS TWO AND THREE. COUNCILMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Mr. Dameron commented that as an introduction to this item, staff has met and have a number of questions that have not been resolved. He added that the Council may have questions also. He recommended that the item be discussed and then continued to July 2, 2002 for action.
Mayor Ellertson suggested that, since this is a public hearing, comment from the public may also be taken. He asked Ms. Christensen to give a general overview of the parameters of the study. Ms. Christensen remarked that the firm of Lewis Young Robertson & Burningham had been commissioned to prepare two impact fee studies. One is concerning the roadways on the west side of Lindon, taking into account the new interchange. The second concerns the water, sewer and parks impact fees. It was decided to delay the storm water impact fee study because of proposed changes to the capital facilities plan to accommodate Pleasant Grove and Cedar Hills storm water being funneled through the Lindon system. She noted that the proposed fees are the maximum fee that Lindon will be allowed to charge and can be lowered to encourage growth if the Council so desires.
Mayor Ellertson asked if there were questions from the Council or the public. There were none from the public. Councilmember Bayless asked if the census was used as the base of the “persons per unit in volume” of the park impact fee. Ms. Christensen replied that it was taken from the census and updated by the State. She commented that the State updates these figures frequently. Mr. Dameron commented that the Lindon City General Plan has set a standard of three acres per thousand residents and this study is based on six acres per thousand. Ms. Christensen replied that the standard used in the study is based on the currently designated park land as compared to the existing population numbers. She asked if the city was planning to maintain that level. This was not decided on at this time.
Mr. Dameron raised a question on the methodology used to calculate the maximum impact fee for the different density areas of Lindon. Mayor Ellertson agreed and pointed out that the size of the impact fee reverses itself between parks and roads. Mr. Dameron added that the low density area was lower for roads and higher for parks than the other densities. Ms. Christensen replied that she would research this question.
Mayor Ellertson asked if there were other questions. Mr. Dameron pointed out some of the other questions by staff so that Ms. Christensen could research them if necessary. He pointed out some missing numbers that could be filled in, errors in the level of service in the culinary water, and in the amount of available water shares. The proposed debt to complete some projects was pointed out to the Council and discussed. Mayor Ellertson asked if there were other issues. There were none.
COUNCILMEMBER BAYLESS MOVED TO CONTINUE THE PUBLIC HEARING TO JULY 2, 2002 TO ALLOW STAFF TO WORK ON DISCREPANCIES IN THE IMPACT FEE STUDY. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
3. Public Hearing - Final Budget for Fiscal Year 2002/2003. The City Council will hear public comment concerning the final city budget for fiscal year 2002/2003. Two public work sessions and one public hearing have previously been held where the budget issues were discussed. Tonight, the Council will receive comment and act to approve the budget for fiscal year 2002/2003, amend the budget for fiscal year 2001/2002, set the city property tax rate for 2003/2003, and adopt the city-wide fee schedule.
Mr. Dameron discussed the budget in general as Ms. Colson was being paged. He mentioned the meetings that had been held this year to discuss the budget issues, including work sessions and a public hearing on June 4, 2002. He noted that the budget figures had been approached in a conservative manner. He commented on increases for personnel and capital improvement projects. He observed that one capital improvement project had been cancelled in the general fund. The improvement projects were discussed. Mr. Dameron complimented Ms. Colson on the presentation of the budget document this year and informed the Council that the document would be submitted for a budget award at the Government Finance Officers Association (GFOA).
(Councilmember Dain arrived at 8:00 p.m.)
(Councilmember Bayless was excused at 8:00 p.m.)
Mr. Dameron directed attention to the overview section and the charts and graphs in that section. Mr. Clark asked what is involved in a budget document award. Mr. Dameron replied that the GFOA has a set of standards that they apply to a budget document submitted for consideration. He added that this is the first year Lindon City has submitted a budget document.
Ms. Colson arrived and directed the Council’s attention to the first budget issue, keeping the certified tax rate the same as 2002's rate, 0.2018%. She commented that this is considered a tax increase, so the city will be required to go through the “truth in taxation” process. She informed that the Council that the new tax rate calculated by Utah County is 0.1880%. She added that staff recommends approving the 0.1880% CTR and then conducting a survey of residents on the proposed increase to be evaluated on July 16, 2002. Councilmember Bath suggested that the additional funds be specified for public safety. Mr. Dameron commented that he had asked City Attorney Gordon Duval to review the law for the exact steps that are entailed in the “truth in taxation” process. He suggested that the scheduled meeting for August 6, 2002 could be the public hearing to consider the CTR. Mayor Ellertson noted that this would begin the debate, not necessarily end it. He asked if there was any public discussion of this item now. There was none.
COUNCILMEMBER DAIN MOVED TO APPROVE THE CTR AS PROVIDED BY UTAH COUNTY AT 0.1880%, TAKE A PUBLIC SURVEY AND THEN RE-EVALUATE THE ISSUE IN THE JULY 16, 2002 COUNCIL MEETING. THE DECISION WILL BE MADE THEN WHETHER TO GO THROUGH THE TRUTH IN TAXATION PROCESS AND AMEND THE BUDGET. COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Mr. Dameron informed the Council that BFI had submitted a summary of their operational costs that is less than the 2.9% CPI increase requested. However, the summary does not include the increase in the landfill tipping fees. The 2.9% CPI increase request will cover the tipping fee increase.
Mayor Ellertson commented to Mr. Brad Mertz, representing BFI, that Lindon City was still considering a recycling program. Mr. Mertz told him that the City would need to guarantee a certain number to justify BFI’s capital expense. Mayor Ellertson suggested that the survey on the CTR include a question on recycling. Mr. Dameron asked if BFI had determined a minimum number of subscriptions for the program. Mr. Mertz replied that the numbers depend on whether Alpine, Highland and American Fork also join the program. Mayor Ellertson asked the timetable on a decision. Mr. Mertz replied that decision would be made by the end of the summer. Mayor Ellertson asked Mr. Dameron to discuss the issue with the other city managers to determine their probable direction. Mayor Ellertson asked if there was comment on this issue. There was none.
COUNCILMEMBER HATCH MOVED TO APPROVE THE INCREASE IN THE MONTHLY GARBAGE SERVICE FEES FOR THE PASS THROUGH OF BFI’S REQUESTED CPI INCREASE OF 2.9% WHICH IS REFLECTED IN THE GARBAGE FEES AS AN INCREASE OF $0.22 FOR THE FIRST CAN AND $0.10 FOR EACH ADDITIONAL CAN, WITH THE UNDERSTANDING THAT THE LANDFILL TIPPING FEE INCREASE IS INCLUDED IN THIS AMOUNT. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Budget Issue #3, increasing water and sewer rates, was introduced by Ms. Colson. She informed the Council that City Engineer Dave Thurgood had recommended an annual CPI increase to prevent larger “catch-up” increases like last year. She noted that costs have increased more than the CPI this year, but that monitoring expenses should help, and it is expected that the amounts of revenue to expenses will even out over time. Mayor Ellertson agreed with the assessment that cost increases are for one year and should level out over time. Mr. Clark confirmed that there are CPI rate adjustments planned for future years. Mayor Ellertson asked if there were other questions. There were none.
COUNCILMEMBER DAIN MOVED TO APPROVE THE INCREASE IN CULINARY WATER AND SEWER RATES AT THE FOLLOWING AMOUNTS:
ZONE 0: BASE RATE INCREASE FROM $17.00 TO $20.62 AND USAGE RATE INCREASE FROM $0.97 TO $1.09 PER THOUSAND GALLONS
ZONE 1: BASE RATE INCREASE FROM $13.70 to $13.77 AND USAGE RATE INCREASE FROM $0.87 TO $0.99 PER THOUSAND GALLONS
ZONE 2 & 3: NO BASE RATE INCREASE AND A USAGE RATE INCREASE FROM $0.85 TO $0.97 PER THOUSAND GALLONS
SEWER: NO BASE RATE INCREASE AND A USAGE RATE INCREASE FROM $1.63 TO $1.70 PER THOUSAND GALLONS
COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Mr. Dameron suggested a notice to customers in the utility bill. Councilmember Bath agreed.
Ms. Colson introduced Budget Issue #4, which is either a 2.9% CPI increase and a merit increase in January 2003 for employees, or implement the results of the September 2001 Salary Survey and a merit increase in January 2003, or neither of these. She presented the Council with a Summary of Pay Range Changes by Position that details those positions that will change pay scales. Mayor Ellertson asked if the Salary Survey is out of date. Mr. Dameron replied yes. It was discussed and determined that the basis is still valid.
Mr. Dameron directed the Council’s attention to his memorandum about an employee meeting on this subject. He emphasized to the Council that the employees are willing to work as a team with the Council and were aware of the concerns of rising health costs and budget constraints. He characterized the meeting as “wonderful” and told of the employees’ appreciation of what the Council has done for them. Their suggestion to the Council blends the last three budget issues together, Issue #4 Salary Increase, Issue #5 Health Insurance Increase and Issue #6 Employee Compensation Programs. The employees suggest to the Council that the salary survey with merit increase be implemented, that the employees share the health insurance increase with new employees participating at a higher rate and that the long term disability program be implemented for now.
Councilmember Bath asked what was entailed in the salary survey implementation. It was disclosed that raises from 6 ½ to 8 percent would be given to employees. This was discussed and the different positions examined. Health insurance was discussed. Mr. Dameron pointed out that there are still a lot of cities that pay 100% of health insurance. Councilmember Bath noted that this is true, but it is a trend to require employee participation. Mr. Dameron agreed and observed that Lindon City employees have offered to participate. Councilmember Dain expressed appreciation for this offer and asked if it would continue beyond the present budget year. Mr. Dameron replied yes, it would be reviewed yearly like it is now, but it will continue.
Mayor Ellertson suggested that the budget amount for the salary survey and merit increase be approved and details of implementation be worked out later. There was a discussion of the percentage of benefits to salaries. It was noted that the percentage is 42% if FICA and the other employer matched funds were included. If these are not included, just the health and dental insurances, the percentage amount is 35%. Mayor Ellertson commented that these figures are in line with private industries. Mr. Clark confirmed that both numbers as calculated are comparable to private industry. Mayor Ellertson agreed with this statement.
Mayor Ellertson asked if there was other discussion or questions. He noted that there are three issues under discussion here and asked the Council to consider Budget Issue #4. He added that the theory of the salary survey implementation is to keep Lindon City comparable with other cities and becomes circular when other cities survey Lindon. However, this survey has not been taken for four years now. The Council discussed the Cost of Living Allowance (COLA) increase of 2.9% and how it compares to the salary survey.
COUNCILMEMBER BATH MOVED TO APPROVE THE SALARY SURVEY IMPLEMENTATION AND A MERIT INCREASE IN JANUARY 2002 BUDGET AMOUNTS WITH THE DETAILS OF IMPLEMENTATION TO BE WORKED OUT LATER. COUNCILMEMBER DAIN SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Mayor Ellertson commented that Budget Issue #5, fully funding medical, dental and life insurance benefits despite the increase in premiums, had originally been estimated at about $18,000 of impact. The employees’ suggestion would pare that amount to $12, 568 in additional cost to the City. Councilmember Dain commented that the new employees would pay double what established employees pay. Mayor Ellertson suggested that this impacts the employees who need insurance the most. Ms. Colson observed that new employees are coming from the private sector and are used to paying more for their insurance.
Councilmember Hatch suggested that new employees were being penalized. He suggested that the City put a cap on the total amount paid per employee and then let each individual employee decide what plans or insurances are most important to them. They can add specialties at their own expense. Mr. Dameron replied that the City funds the lowest level of insurance plan offered to the group. There was a discussion of how organizations are rated and cannot be compared from one group to another. Councilmember Bath suggested that new employees pay the same as established employees.
Mr. Dameron reported on the discussion with employees, some who have put in 18 years of service. A new person has not put in 18 years. The idea was that those who have invested more pay less of a contribution than a new person who is informed in advance of employment what the amount of their contribution will be. He suggested that this promotes less turnover. Mayor Ellertson asked how many employees would be impacted and commented that the difference is not substantial. Councilmember Dain agreed that it is not a lot of difference to the budget this year. Ms. Colson observed that this is a long term solution and differences would only be seen when seasoned employees rotate out.
Councilmember Dain asked what percentage of premium would be assumed by the suggested employee contribution. It was determined that the percentage would be 37% of the increase and 3% of the total premium. He suggested that the amount of the contribution be a percentage of the total premium rather than a fixed amount of $26.00 per month. Mayor Ellertson noted that this issue will still be dealt with annually. Ms. Colson commented that employees are concerned that there will be a net loss in their paychecks if the amount is a percentage. If there is an a premium increase of 11 percent like this year and the CPI is only 2-3%, the feeling is that next fiscal year, they will be taking home less income.
Mayor Ellertson asked about the City’s insurance provider and whether Lindon was combined with other city groups and a broader population. Mr. Dameron explained that although the cities buy their insurance as a group under the PEHP umbrella, each city’s portion of the premium is based on the individual group. He added that large city organizations can spread the costs better than the smaller group of Lindon City. Councilmember Hatch suggested linking with Pleasant Grove. Mr. Dameron explained that URMMA had attempted to lower costs by combining groups, however, the larger cities had voted the proposal down because they were concerned that insurance companies would lower the cost this year to get the account and then raise it dramatically next year.
Councilmember Dain observed that allowing one or two new employees to subsidize the rest of the employees may create friction. Mr. Dameron replied that all new applicants would know in advance that their insurance benefits are different. He added that differences in employment details happen often and this is an attempt by the employees to compromise with the Council. Councilmember Dain commented that he was just questioning the disparity between the two amounts. Mr. Dameron replied that the amount would be set by Council. The suggested amount was just a starting point for discussion. Councilmember Hatch expressed the opinion that there should not be a difference between new and established employees in insurance contributions.
Water Superintendent Dennis Kendall suggested a graduated contribution similar to being vested in a retirement plan and insurance coverage for employees after retirement. He also recounted how employees in a previous year gave up a cost of living increase for fully funded insurance benefits. The issue of insurance after retirement was discussed briefly.
COUNCILMEMBER BATH MOVED TO ACCEPT THE OFFER FROM EMPLOYEES OF A CONTRIBUTION OF $26.00 PER MONTH TOWARD BENEFITS, BUT AMEND NEW EMPLOYEES’ CONTRIBUTION TO $24.00 PER PAY CHECK. COUNCILMEMBER DAIN SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR EXCEPT COUNCILMEMBER HATCH WHO VOTED NAY. THE MOTION FAILED.
Councilmember Hatch suggested a stepped system that would depend on the length of service. He suggested that the contribution amount go down after five years and again after ten years of service. Mrs. Maxine Smith, wife of Parks Superintendent Dennis Smith, suggested that the formula be kept as simple as possible. Mayor Ellertson commented that the older employees are where the experience is located, but older persons need more medical care and the younger persons have more children. He suggested that the budget amount be approved and the details of implementation worked out later. Mr. Dameron asked what premium would be paid then. Mayor Ellertson noted that the question is whether the employees contribute to their benefits. Mr. Dameron suggested that the clause for new employees be taken out of the motion, then they will automatically contribute the same as the other employees.
Mayor Ellertson suggested that the City is now paying 100% of the insurance benefit and so until the change is worked out, the City budget the full amount and amend the budget later. Mr. Dameron noted that if no action is taken on this Budget Issue it will stay the same at 100% funding. Councilmember Hatch asked how the Council can avoid addressing this issue year after year. Mr. Dameron commented that the Council can set a policy and then it would not be a discussion item every year. He suggested though that the Council would probably want to see this item discussed every year because of its importance. He observed that he felt the employees had shown great cooperation in offering to contribute. Mayor Ellertson agreed and expressed a concern that the Council wants to do the right thing.
Councilmember Hatch asked what private industry is doing with the insurance contribution issue. He noted that the residents of Lindon are paying premiums. Councilmember Bath commented that the stepped proposal would reward employees for longevity, in the long run, more than salary increases because of the ceiling in the pay ranges. Councilmember Dain observed that he was not aware of a private company that had a stepped program. Mr. Bruce Armstrong, resident of Lindon, commented that such a program may be illegal. Mayor Ellertson proposed that current employees pay the amount proposed and that discussion of new employees be continued to later.
COUNCILMEMBER DAIN MOVED TO ACCEPT THE EMPLOYEE PLAN FOR A CONTRIBUTION OF $12.00 PER PAY PERIOD AND CONTINUE THE DISCUSSION OF THE PLAN FOR NEW EMPLOYEES LATER. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Mayor Ellertson suggested the Budget Item #6 be discussed. Councilmember Dain commented that he could see that there would only be one or two employees that would qualify to take advantage of the tuition reimbursement program, but the certification pay program would be an incentive to more employees. Public Works Director Don Peterson commented that the employees in his department are the most affected and they have voted to delay it this year as part of the give and take necessary to make a budget work. Mayor Ellertson asked if there was public comment. There was none.
COUNCILMEMBER HATCH MOVED TO APPROVE THE LONG TERM DISABILITY AND NOT THE TUITION REIMBURSEMENT OR THE CERTIFICATION PAY PROGRAMS FOR THIS YEAR. COUNCILMEMBER DAIN SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Mr. Armstrong commented that he had remembered that a stepped program is not illegal, but if the program is not equal among employees, the extra benefits are taxable to those who receive them.
Ms. Colson asked about impact fees, since she had missed that discussion. Mr. Dameron replied that the decision had been postponed to July 2, 002.
The fee schedule was discussed next. Ms. Colson noted that the water relief petition amount had been changed to $16,000 rather than $15,500 to bring it more in line with the market. The use of relief petitions in the past was discussed. Mayor Ellertson asked why the amount was not set at $20,000 which is the market amount. Councilmember Dain replied that Lindon City did not want to drive the market. Mr. Dameron informed the Council that the market is about $17,000 - $20,000, so $16,000 is reasonable. Mayor Ellertson asked how many relief petitions the City is likely to have. Mr. Smith replied that there may be a “couple dozen” left to contend with. Councilmember Dain confirmed that new subdivisions are required to turn in water shares, and that the relief petition only applies to subdivisions that are approved and “grandfathered.”
Ms. Colson pointed out that the temporary price of a site plan price for a temporary business is decreased. This applies to firework sales, Christmas tree sales, and carpet cleaning businesses operating on a temporary basis. Ms. Colson noted the changes in the water, sewer and garbage rates that will show in the fee schedule. Mayor Ellertson asked if staff was comfortable that the pumping costs are captured in the base rate increases proposed. Ms. Colson, Mr. Dameron, and Mr. Peterson all replied yes.
Mayor Ellertson asked if there were questions. The resolution to approve the budget was discussed. Mayor Ellertson suggested that a comparison of last year’s approved budget to the amended budget would be interesting information.
(Councilmember Bayless arrived again at 9:34 p.m.)
Mayor Ellertson added that the comparison could be by department totals or major categories. Mr. Dameron suggested a separate spreadsheet.
The components of the resolution were examined. Mr. Dameron noted that the agreement with the Redevelopment Agency is Exhibit A to the Resolution. The agreement was examined and discussed.
COUNCILMEMBER BATH MOVED TO APPROVE RESOLUTION 2002-7 APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR 2002-2003, SETTING THE CERTIFIED TAX RATE, AMENDING THE BUDGET FOR THE 2001-2002 FISCAL YEAR, ADOPTING A FEE SCHEDULE, ADOPTING COMPENSATION PROGRAMS, AND ENTERING INTO AN AGREEMENT WITH THE LINDON CITY REDEVELOPMENT AGENCY WHICH IS INCORPORATED INTO THIS DOCUMENT AS EXHIBIT “A.” COUNCILMEMBER DAIN SECONDED THE MOTION. THE VOTE IS RECORDED AS FOLLOWS:
COUNCILMEMBER ACERSON ABSENT
COUNCILMEMBER BATH AYE
COUNCILMEMBER BAYLESS AYE
COUNCILMEMBER DAIN AYE
COUNCILMEMBER HATCH AYE
ALL PRESENT VOTED IN FAVOR(4-0). THE MOTION CARRIED.
(Councilmember Dain was excused at 9:40 p.m.)
Mr. Peterson thanked the Council on behalf of the employees and expressed appreciation for the Council’s consideration of the employees’ concerns.
COUNCILMEMBER HATCH MOVED TO CLOSE THE PUBLIC HEARING. COUNCILMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Mrs. Maxine Smith asked about health insurance after retirement and when a decision would be made. Mr. Dameron replied that this item would be brought back to the Council.
OPEN SESSION
Mr. Brian Walker was present to discuss insurance coverage of participant in the new events that he is proposing for the Lindon Days Rodeo and Play Days. He is particularly interested in promoting a new calf riding event for older children too large to participate in the sheep riding event. He asked if there was a problem with insurance or if the event could be done with a waiver. Mr. Dameron replied that he had checked with the city’s insurer and found that the special event policy only covers the spectators. The only way to control the risk for the city is with a waiver.
Mr. Walker asked the Council if they would agree to add the event with the parents signing a waiver. Mr. Dameron commented that there would be more risk for the city because the animals and kids are both bigger. Mayor Ellertson suggested a weight limit. Ms. Armstrong commented that there is a maximum weight limit for the sheep riding event. Mr. Walker agreed and observed that the ideal situation is that everyone will have fun and not get hurt. He is planning to weigh the children before the ride. He added that he would really like to add the event because he felt it would increase the youth participation.
Mr. Dameron asked if he just wanted to add the calf riding event for this year. Mr. Walker replied that he would like to add calf riding and steer roping to the event schedule. Mayor Ellertson commented that all participants could sign a waiver. Mr. Walker noted that the participants for the sheep riding sign a waiver now. Mr. Peterson asked if Mr. Walker was planning a team roping event for the steers. Mr. Walker replied yes. The Council discussed the schedule and where the addition of these events would not conflict with other events already in the schedule.
Councilmember Bath expressed the opinion that if the participants and parents sign a waiver then he would be comfortable with approving it. Mayor Ellertson noted that some participants will try to ride a calf that have never tried anything like that before. Mr. Walker replied that this scenario happens every year. The age group and size of the participants were discussed. Ms. Armstrong suggested that a statement be posted at the city offices that the event is inherently dangerous. Mr. Clark asked what liability the city would have if the participants have signed a waiver. Mr. Dameron replied that the waiver can be used in the city’s defense if a person does decide to sue the city. Ms. Armstrong asked if the city had been sued before. The answer was no.
Mr. Peterson asked about the facilities at the rodeo grounds. Mr. Walker replied that some modifications would be needed, but he thought he had some volunteers that would take care of this. There was a discussion of adding the events to the schedule and requiring the participants to wear helmets. Mayor Ellertson asked for a couple of days to make a decision. Ms. Armstrong asked the Mayor for the Mayor’s Message for the Lindon Days booklet. Mr. Armstrong made a final statement that as the chairpersons of Lindon Days, they felt that the new events would expand the participation and entertainment value to residents and visitors alike. Costs were discussed briefly. Councilmember Bayless suggested a photographer to take pictures of the participants to help defray costs.
4. Agreement - City and RDA. The RDA contracts with the City to provide administrative services to the RDA. The Council will review and act on this agreement.
COUNCILMEMBER BATH MOVED TO APPROVE THE AGREEMENT BETWEEN LINDON CITY AND LINDON REDEVELOPMENT AGENCY FOR THE PROVISION OF SERVICES, FACILITIES AND SUPPLIES. COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Adjourn City Council Meeting and convene the Redevelopment AgencyCOUNCILMEMBER BAYLESS MOVED TO ADJOURN THE CITY COUNCIL AT 10:04 P.M. AND CONVENE THE REDEVELOPMENT AGENCY. COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Adjourn the Redevelopment Agency and then convene the Municipal Building Authority (See the appropriate minutes for these meetings)
BOARDMEMBER HATCH MOVED TO ADJOURN THE LINDON CITY REDEVELOPMENT AGENCY AT 10:10 P.M. AND CONVENE THE MUNICIPAL BUILDING AUTHORITY. BOARDMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
Reconvene City Council Meeting
BOARDMEMBER BATH MOVED TO ADJOURN THE MUNICIPAL BUILDING AUTHORITY AND RECONVENE THE CITY COUNCIL AT 10:15 P.M. BOARDMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
5. Review and Discussion - Preliminary Assessment Report - UTOPIA. The City Council will receive and discuss the preliminary assessment report prepared by Dynamic City on behalf of UTOPIA for Lindon City. This report will give direction to the Council concerning the advisability of moving into the feasibility phase of the project. The project consists of providing a fiber optic cable network to all homes and businesses within the city.
Mayor Ellertson noted that the preliminary assessment had been discussed during the work session. He asked the time table for the decision to go on into the feasibility study phase. Mr. Dameron replied that the project is on a “fast track” and a decision will be needed by August 1, 2002. Mayor Ellertson observed that he would like to discuss this item further.
Mr. Armstrong commented that he was familiar with Airswitch in Springville. He noted that he was confused how the city felt they could make money when Airswitch was out of business. The concept was briefly explained to Mr. Armstrong. Mr. Armstrong observed that he would like to see the business plan. He was invited to contact Dynamic City directly to discuss his questions. Mr. Dameron observed that it should be made clear that the city’s investment is at risk until the bond is issued and the city is repaid. Mayor Ellertson asked if there was more discussion. There was none.
COUNCILMEMBER HATCH MOVED TO CONTINUE THE DISCUSSION TO CONSIDER ADVANCING TO THE FEASIBILITY PHASE OF THE UTOPIA PROJECT AT THE NEXT MEETING ON JULY 2, 2002. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
6. Review and Discussion - Recreation Citizen Advisory Committee Report. The City Council will receive and discuss the report of the Recreation Citizen Advisory Committee. This report will contain empirical information concerning the results of the survey instrument distributed to citizens in April of this year.
Ms. Armstrong presented the results of the recreation survey as a tabulation of responses to each question. She observed that they had received 234 responses. The various responses were examined and commented on by the Council. Mayor Ellertson observed that the Council would take the information presented and “digest” it. He thanked the Armstrongs for coming to present the findings.
7. Review and Action - Agreement with Gateway LLC. This is a request for approval of the proposed agreement between Gateway LLC, developers of the Lindon Gateway project (Johansen/Thackeray), and Lindon City and the Lindon City Redevelopment Agency which provides for a credit to Gateway LLC for the distribution of the SID assessments paid by the other two property owners in the SID area.
Mayor Ellertson commented that some dates and dollar amounts are needed to complete the agreement. Mr. Dameron agreed. He observed that this is the agreement that was discussed with Mr. Thackeray and Mr. Johansen, principals of Gateway, LLC., a couple of months ago. This is a draft copy submitted by Financial Counsel, Blaine Carlton. Mr. Dameron added that the Council had reached consensus at the previous discussion to approve the agreement. The Council discussed the particulars of how this agreement came about.
(Councilmember Acerson returned at 11:08 p.m.)
Mayor Ellertson asked if City Attorney Gordon Duval had reviewed the agreement. Mr. Dameron replied that the Council has discussed this agreement two or three times before, but he has not discussed it with Mr. Duval. Councilmember Hatch pointed out that section two requires prior approval by the city for discounting of prices for the assumption of the special improvement lien. The amount of acreage and the amount of the lien for the special improvement district was discussed. The amounts needed to fill in the blanks were determined approximately. Mr. Clark asked for particulars on the background of the agreement.
COUNCILMEMBER HATCH MOVED TO APPROVE THE AGREEMENT BETWEEN LINDON CITY, LINDON CITY REDEVELOPMENT AGENCY, AND LINDON GATEWAY, L.C. AND AUTHORIZE THE MAYOR TO VERIFY THE AMOUNTS AND DATES TO BE FILLED IN TO COMPLETE THE AGREEMENT AND THEN SIGN ON BEHALF OF THE CITY. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
CITY COUNCIL REPORTS
WATER, GENERAL PLAN, BUILDING INSPECTION, ENGINEERING
Councilmember Dain was excused.
SEWER, SOLID WASTE, PUBLIC BUILDINGS AND PROPERTIES
Councilmember Hatch had no items to report for tonight.
TRAILS, PLANNING, ZONING, BOARD OF ADJUSTMENT, ADMINISTRATION
Councilmember Bayless asked about a fireworks restriction for the foothills. Discussion was held on where to draw the line for the restriction. 1200 East and the Murdock Canal were suggestions. Councilmember Acerson suggested issuing a statement strongly discouraging illegal fireworks and asking the Neighborhood Watch to report violations. There was discussion of dissemination of this statement in the City Newsletter and in a letter to each LDS Stake for distribution. The responsibility of those who start fires was examined and discussed also.
Councilmember Bayless discussed reminding residents to conserve water resources. She also asked about deciding on a Grand Marshal for the Lindon Days parade. This was discussed and it was decided to approach a well-deserving, long-time resident.
STREETS, SIDEWALKS, PUBLIC SAFETY AND COURT
Councilmember Bath reported that he had received an email from a man who works on 400 West who complained about too many tickets on that street. He has forwarded the complaint to Chief Paul. He also reported an arrest for child pornography on 400 West in Lindon. He addressed the computer hookup needs of the public safety department.
PARKS, RECREATION, EMERGENCY MNGMNT, LINDON FAIR, NEWSLETTER
Councilmember Acerson asked if there were new volunteers for the Fire Department. He was informed that there had been no new volunteers.
Mayor Ellertson and the Council discussed appearing in the Pleasant Grove Strawberry Days Parade. A decision was made to change the appearance of the City Newsletter. Mayor Ellertson suggested a name for Director of a Youth Court program.
ADMINISTRATOR’S REPORT
Mr. Dameron:
1. Announced an Engineer’s Coordination Meeting Wednesday, June 19, 2002 at 1:00 p.m. Councilmembers Bayless and Acerson volunteered to attend.
2. Reported that the employees had voted to go to Lagoon for the Summer Party. He asked which date the Council preferred, July 27 or August 3. July 27 was decided on as the date of the Summer Party.
3. Asked Mayor Ellertson about an appointment to the Planning Commission. Mayor Ellertson reported that the appointment had been accepted.
4. Commented that the volunteer coordinator position was still not decided. The duties of the position and the amount of the stipend were discussed. Mr. Dameron asked for some suggestions by the next meeting.
COUNCILMEMBER BATH MOVED TO APPROVE THE PAY VOUCHERS. COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
COUNCILMEMBER HATCH MOVED TO ADJOURN AT 12:09 P.M. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
APPROVED - July 2, 2002
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Ott H. Dameron, City Administrator/Recorder
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Larry A. Ellertson, Mayor |
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