City Council Minutes

Tuesday, March 25,2014



ST. GEORGE CITY COUNCIL MINUTES
WORK MEETING
MARCH 25, 2014, 8:00 A.M.
POLICE DEPARTMENT TRAINING ROOM


PRESENT:
Mayor Jon Pike
Councilmember Gil Almquist
Councilmember Jimmie Hughes
Councilmember Michele Randall
Councilmember Bowcutt
Councilmember Bette Arial
City Manager Gary Esplin
City Attorney Shawn Guzman
Budget and Financial Planning Manager Deanna Brklacich
City Recorder Christina Fernandez

OPENING:
Mayor Pike called the meeting to order and welcomed all in attendance. The Pledge of Allegiance to the Flag was led by Chief Stratton the invocation was offered by citizen Ed Baca.

BUDGET OVERVIEW:
City Manager Gary Esplin presented a powerpoint presentation which covered the following topics: General Fund Revenues Budget - Fiscal Year 2014; Comparison of Revenues for the first Eight Months (July - Feb), Fiscal Years 2012, 2013, and 2014; Number of Building Permits Issued by Category, Comparison of January through December (for 2005 - 2013); Sales Tax Distribution Diagram; Monthly Average Sales Tax Remittance by Industry, Fiscal Year 2007 to 2013 is for 12 months, 2014 is for 6 months; Direct Point of Sale - Local Tax Remittance by Month, 5-Year Comparison by Calendar Year (2009 to 2011 Not Shown); Dept./Box Stores - Local Tax Remittance by Month 5-Year Comparison by Calendar Year (2009 to 2011 Not Shown); Retail, Fast Food & Restaurants - Local Tax Remittance by Month, 5-Year Comparison by Calendar Year (2009 to 2011 Not Shown); Hotels & Motels - Local Tax Remittance by Month, 5-Year Comparison by Calendar Year (2009 to 2011 Not Shown); New Car Sales - Local Tax Remittance by Month, 5-Year Comparison by Calendar Year (2009 to 2011 Not Shown); Furniture Stores - Local Tax Remittance by Month, 5-Year Comparison by Calendar Year (2009 to 2011 Not Shown); Lumber, Steel, Electrical, Plumbing Wholesale - Local Tax Remittance by Month, 5-Year Comparison by Calendar Year (2009 to 2011 Not Shown); 2013 Property Tax Distribution, St. George District (Tax Rate is .012246); Property Tax Distribution Comparison; General Fund - Top 10 Revenue Sources to Total Salaries & Benefits; General Fund Expenditures Budget, Fiscal Year 2014; General Fund - Distribution of Personnel, Materials & Supples, Capital Outlays, and Transfers, Expenses for Fiscal Years 2006 to 2014; General Fund - Salaries & Benefits History; City of St. George General Overview of Fund Resources and Functions.

Ed Baca, citizen, inquired about the funds that were used for the new airport since the City did not sell the property from the old airport.

City Manager Gary Esplin responded in the TIF fund, there was a $25 million bond of which $15 million was originally allocated for the Mall Drive Bridge. The bond language stated that the funds could be used for transportation or road related projects, therefore, the $15 million was used for the Airport. A total of $29 million was needed - the City received $10 million from the County, issued a bond on the transient room tax, and borrowed money from the Wastewater Treatment Plant that will be paid back at the State Treasurer’s interest rate. He continued with the City of St. George General Overview of Funds Resources and Functions slide.

Ed Baca inquired how building roadways in new developments work. For example, prior to building Foremaster, the developer had to install the roads prior to building the homes. How is that different from what is happening in the Little Valley area.

City Manager Gary Esplin stated that the City participated with the developer of Foremaster. Little Valley Road and 2450 were already there when the property was annexed. The developers are required to build the roadways as they were needed for the
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subdivisions. He continued with the powerpoint presentation which covered the following topics: Annual Challenges.

Mayor Pike called for a short recess.

DISCUSSION ON IMPACT FEE LAWS:
City Manager Gary Esplin stated that the City has been looking at the impact fees for approximately two years. In each of the Department’s budgets, impact fees are allocated into a special fund. He explained that impact fee draft information is not distributed to the public prior to it being presented to the Mayor and City Council. Jason Burningham, with Lewis, Young, Robertson and Burningham, Inc, the City’s financial advisor, will introduce the Councilmembers to impact fees.

Jason Burningham presented a powerpoint presentation which covered the following topics: 2013-2014 Impact Fees City of St. George; Introduction to Impact Fees; Impact Fee Process; Introduction to Impact Fees; Scope of Work, City of St. George; CULINARY WATER: Service Area; Demand Analysis; Level of Service (measured based on existing facilities; Existing Inventory and Excess Capacity; Calculation of Storage Buy-In; Calculation of Transmission Buy-In (Airport Waterline); Capital Facilities Analysis; Financial Resources and Revenues to Finance System; Culinary Water Impact Fee; Culinary Water Impact Fee Cash Flow. He had the Councilmembers turn to page 11 & 12 of the Culinary Water section in the Impact Fee binder referring to Table 5.1: Illustration of Capital Improvements. He continued with the powerpoint presentation covering the following topics: SANITARY SEWER: Service Area; Demand Analysis; Level of Service; Existing Inventory and Excess Capacity; Capital Facilities Analysis; Resources to Finance System Improvements; Capital Facilities NOT Included in Analysis; Sanitary Sewer Impact Fee; Sanitary Sewer Impact Fee Cash Flow. He had the Councilmembers turn to page 13 of the Sanitary Sewer Impact section in the Impact Fee binder referring to Table 5.1: Illustration of Capital Improvements Related to Growth. He continued with the powerpoint presentation covering the following topics: STORM DRAIN (IFA ONLY): Service Area; Demand Analysis; Level of Service; Existing Inventory and Excess Capacity; Capital Facilities Analysis; Resources to Finance System Improvements; Storm Drain Impact Fee per SF; Storm Drain Impact Fee by Land Use Type; and Storm Drain Impact Fee Cash Flow. He had the Councilmembers turn to page 10 of the Storm Drain section in the Impact Fee binder referring to Table 5.2: Summary of Percent Associated with New Development.

Mayor Pike called for a short recess.

Mr. Burningham continued with the powerpoint presentation which covered the following topics: TRANSPORTATION: Service Area; Demand Analysis; Level of Service; Existing Inventory and Excess Capacity; Capital Facilities Analysis; Resources to Finance System Improvements; Financing Revenues and Resources to Finance System Improvements; Transportation Impact Fee Cost per Trip; Transportation Impact Fees by Land Use Type (Residential); Transportation Impact Fees by Land Use Type (Other); Transportation Impact Fee Cash Flow. He had the Councilmembers turn to pages 18 - 21 of the Transportation section in the Impact Fee binder referring to Table A-1: Illustration of Capital Facilities and Estimated Cost and Table A-2: Illustration of Capital Facilities by Funding Source. He continued with the powerpoint presentation which covered the following topics: FIRE: Service Area; Demand Analysis; Existing Inventory and Excess Capacity; Level of Service; Capital Facilities Analysis; Financing Revenues and Resources to Finance System Improvements; Cost per Call Calculation; Fire Impact Fee; Fire Impact Fee Cash Flow. POLICE: Service Area; Demand Analysis; Level of Service; Existing Inventory and Excess Capacity; Capital Facilities Analysis; Financial Revenues and resources to Finance System Improvements; Police Impact Fee; Police Impact Fee Cash Flow. PARKS, RECREATION & OPEN SPACE: Service Area; Demand Analysis; and Existing Inventory; Level of Service; Excess Capacity; Capital Facilities Analysis; Resources to Finance System Improvements; Park Impact Fee. POWER: Service Area; Demand Analysis; Level of Service; Existing Inventory and Excess Capacity; Capital Facilities Analysis; Resources to Finance System Improvements; Energy Impact Fee per kW; Energy Impact Fee:

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Residential Service; Energy Impact Fee Cash Flow; SUMMARY: Fee Per Residential Dwelling; and Comparative Analysis.

DISCUSSION ON THE FY 2014-15 BUDGET:

Finance Director Philip Peterson presented a powerpoint presentation which covered the following topics: Finance Department Organizational Chart; Utility Payment Options; Paperless Billings; Misc. Information.

Councilmember Bowcutt inquired if there is a database that shows which accounts have been written off as bad debt.

Mr. Peterson replied yes, there is a policy which states that if a customer has a bad debt, the customer either has to make arrangements or pay off the debt prior to obtaining new service. Staff tries to work with those that are in this situation. He continued with the powerpoint presentation which covered the following topics: Business Licenses.

Councilmember Almquist asked Mr. Peterson if the City could possibly go to a 2 year payment option for obtaining a business license.

Mr. Peterson replied that can happen if the City Council approves an ordinance allowing that.

City Manager Gary Esplin advised that cannot happen with a business license since a portion of the cost is based on the number of employees, but a rental license may be a possibility.

Mayor Pike inquired if citizens can utilize the City’s new website for applying for services or obtaining a license.

Mr. Peterson stated that may be a possibility, however, the City requires that certain items with regards to applying for a business license, be seen in person. Additionally, when applying for a dog license, the City requires the applicant to provide proof of vaccinations as well as proof that the animal has been spayed or neutered.

Human Resources Manager Judith Mayfield presented a powerpoint presentation that covered the following topics: Organizational Chart; Human Resources Department Purpose Statement; HR Department Responsibilities; Recruitment, Hiring and Retention; Payroll Administration; Employee Benefits; Compensation, Performance, Organization, Development, Employee Relations; and Administrative Duties and Challenges.

City Attorney Shawn Guzman presented a powerpoint presentation that covered the following topics: Legal Services - Organization Chart; Legal Services; Legal Services - Criminal Cases; Justice Court Reimbursements; Court Reimbursements; Traffic School Reimbursements; Legal Services - Insurance; and Legal Services - Claims and Legal Services Staff.

Budget and Financial Planning Manager Deanna Brklacich presented an Administrative Services Organization Chart. The City has approximately 30,000 vendors and that the Purchasing Department receives approximately 650-850 invoices per month. The City allows departments to purchase items as needed. One of the goals for Connie Hood, Purchasing Manager, is to train employees on how to purchase items they need. She handed out a Budget Process Overview and reviewed the budget process. Additionally, she explained that there have been 3 flood events in the past few years. It took 5 years to complete the 2005 flood project which had 7 projects. The total cost to rebuild after the flood was approximately $11 million. The City received $4 million from FEMA, $3.27 million from a State grant, various other small grants and the City’s grant match was $2 million. The 2010 floods had 80 projects and the cost was $8.5 million; FEMA will fund $6.6 million, there will be no funds received from the State, the City received $600,000 in Federal Highway Funds and the City’s portion was $1.3 million.


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City Manager Gary Esplin everyone of the projects involves about a full years worth of work. The funds to repair the damage were unfunded and unbudgeted.

Water Services Director Scott Taylor presented a powerpoint presentation covering the following topics: Mission Statement; Mottos; Water Services Department Info; Culinary Water Source (Acre - Ft) 2013; Water Services Department Core Management Team; Water Services Organization Chart; and Challenges.

Fire Chief Robert Stoker presented a powerpoint presentation covering the following topics: Mission Statement; Organizational Chart; Reserve Staff; Fire Districts & Response Areas; Fire Response Areas; Incident Response & Per Day; Fire Stations. He explained that the City is rated 4 for it’s fire protection. One issue they are facing is that the Ledges is rated 10, which Is the lowest level, since there is no fire station in that area. In October, the City Council approved an automatic aid agreement with Winchester Hills to assist with fire prevention. He stated that the City will run into the same problem in Little Valley and Desert Canyons.

Councilmember Bowcutt inquired could a fire station be built in the Ft. Pearce Industrial Park area that could service the Little Valley area.

Chief Stoker answered that staff is looking into that. He continued with the powerpoint presentation covering the following topics: Fire Department Apparatus; Engines; Reserve Fire Engines; Ladder Trucks & Squads; Training Programs; Fire Calls; Emergency Medical Technicians; Southwest Regional Response Team; Emergency Management; City Wide AED Placement; Assisting Other City Departments; Mutual Aid to Other Fire Departments; Fire Prevention and St. George City Fire Department.

City Manager Gary Esplin explained that in order to get hired as a full time firefighter, the individual has to be a reserve firefighter for at least 6 months with the City. All volunteers are fully certified and are required to attend training.

Councilmember Randall asked if the department would ever go from BLS certified to ALS certified.

Chief Stoker stated there is a plan to do that. While a number of the firefighters are advanced EMT’s and some that are paramedics, all full time firefighters are EMT certified.

Mayor Pike inquired if a firefighter from another entity could be eligible for a full time position.

Chief Stoker advised the individual would have to live in the City and would have to be a reserve firefighter. There were some firefighters from Salt Lake City that wanted to do a lateral transfer. Doing that creates a number of internal inequities.

City Manager Gary Esplin explained as the reserve firefighters move up through the ranks, they learn what it is to be a volunteer firefighter and to appreciate the dedication and appreciation of the department.

Police Chief Marlon Stratton advised that the training room being used for today’s meeting, becomes an Emergency Operations Center, in the event of a disaster.

City Manager Gary Esplin stated that does not happen very often, the last time was during the 2010 flood. It is an amazing experience to be involved in.

Chief Stratton presented a powerpoint presentation covering the following topics: Our Mission; Department Leadership; Patrol Division; Patrol; Patrol K9; S.W.A.T.; Negotiators; Community Action Teams (CAT); Honor Guard; Special Olympics Torch Run; Special Olympics Polar Plunge; Investigations Division; Detectives; Victim Services; Washington County Area Drug Task Force; Fraudulent Identity & Security Threats; Graffiti; Sex Trafficking; Administrative Services Department; Special Enforcement Division; and Communications Division and Inbound/Outbound Calls.
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Mayor Pike inquired if there is evidence that shows the school resource officers have prevented crimes in the schools.

Chief Stratton stated yes, there has been a lot done to prevent different crimes. The officers work closely with the School Administration and routinely run drills in the event of a active shooter.

Mayor Pike called for a short recess.

Energy Services Director Phillip Solomon stated that St. George is becoming the largest municipal power provider in the State. There are 3 types of power utilities: co-ops, investor-owned utilities and municipal power. He presented a powerpoint presentation which covered the following topics: Energy Services; City of St. George Energy Services Department; Energy Services Department Organization Chart; St. George Energy Services Back Ground; and Resource Allocation 2013 and 2014 Substation, Construction.

City Manager Gary Esplin explained that with regard to resource allocation, the more power the City can generate, the less transmission cost there will be. In the past, the City had contingency plans for black outs. Nine months out of the year, the City can generate power itself.

Mr. Solomon stated that during the peak period, it is nice to turn on the generators to follow the peak.

Leisure Services Director Kent Perkins presented a powerpoint presentation that covered the following topics: Leisure Services Department Organization Chart; Mission Statement; Dixie Center; Map of the Dixie Center; Community Arts & Exhibits; Park Planning (Design). He showed the Trail & Road Master Plan 2011 Map, the Existing & Future Planned Community Parks Map and the Trail Master Plan Map. He continued with the powerpoint presentation that covered the following topics: Trail; Parks, Fields Phase IV - Concept Plan; Parks; Recreation - Special Events & Races; Recreation Center & Carousel; Recreation - Aquatics; Recreation - Softball; Recreation - Youth & Adult Sports; Recreation - Tennis & Pickleball; and Recreation - Nature & Adventure; Boards & Commissions and Priorities.

Support Services Manager Marc Mortensen presented a power point presentation which covered the following topics: Administration; Support Services; Guiding Principles; Mottos; Technology Services; Values of Technology Services; Mission Statement; Projects Recently or Nearly Completed; Tech Support; Techs; System & Networks; Web; GIS; Recent Projects; GIS Support; Fleet Services; Fleet Facts; City Vehicle Assets; Fleet’ Primary Values; Inventory/Scheduling; Fleet Technicians; Facility Services; Facility Services Projects; and Maintenance and Custodial.

Public Works Director Cameron Cutler presented a powerpoint presentation covering the following topics: Public Works Department Organization Chart; Transportation Services; Streets Division; Airport; Suntran; and Engineering Services.

Community Development Services Director Matt Loo handed out a re-organization chart proposed for the Public Works Department and the Economic Development & Housing Department.

City Manager Gary Esplin outlined the re-organization being proposed in the Public Works Department.

The consensus of the Councilmembers is to proceed with the re-organization.

City Manager Gary Esplin outlined the proposal of creating a new department named Economic Development & Housing Department which Matt Loo would be the Director of.

Director of Golf Operations Colby Cowan presented a powerpoint presentation which covered the following topics: Golf Course Maintenance and Head Golf Professionals. Currently, the Golf Professionals are independent contractors.

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City Manager Gary Esplin explained that the golf courses were put into the Enterprise Funds initially since they were generating money; however, since numerous other golf courses have been built in Washington County, they have been losing money. He questions which fund the golf courses should be a part of, the General Fund or the Enterprise Fund. The City has spent quite a bit of money on the golf courses. There is no debt, however there is a $4 million deficit due to the cost of golf. He is proposing to adopt a plan to pay back the $4 million. He explained that each year, $500,000 is paid into the debt service for the Dixie Center which will be done in 2023. Beginning in 2024, that amount can be allocated to pay back the $4 million deficit. This plan will solve the long term debt. To solve the short term debt, he suggests a re-organization within the golf courses. He outlined the proposed re-organization .

The consensus of the Councilmembers is to proceed with the re-organization.

The meeting then adjourned.





_________________________________ Christina Fernandez, City Recorder