2002 Minutes & Agendas: Minutes - January 29, 2002 (Special session)
Minutes of the Centerville City Council special
meeting held Tuesday, January 29, 2002 at 5:45 p.m. in the Centerville City
Council Chambers, 250 North Main Street, Centerville, Utah.
Mayor:Michael L. Deamer
David R. Gill
R. Dean Layton
Debbie L. Randall
Nancy F. Smith, was excused at 7:05 p.m. and returned
at 7:40 p.m.
Steve H. Thacker, City Manager
Blaine L. Lutz, Finance Director/Asst. City Manager
Randy Randall, Public Works Director
Fred Campbell, City Engineer
Connie Larson, Recording Secretary
Matt Willis, Jason Burningham
APPOINT FUND RAISING COMMITTEE FOR PARKS
IMPROVEMENTS IN THE SOUTHWEST AREA
Councilwoman Smith stated this is a carry over
item from the last City Council meeting. She is proposing to establish an ad
hoc committee that would solicit funds to improve parks in the southwest section
of Centerville, as well as throughout all of Centerville.
Councilwoman Randall said a citizen by the name
of Pat Waldvogel approached her expressing interest in participating on such
a committee. Councilman Gold suggested Debbi Allred, Cami Layton, and Sherri
Lindstrom as possible members of this committee.
Steve Thacker explained the Parks & Recreation
Committee should be considered in this discussion as their charter includes
the option of fund raising. Mayor Deamer will meet with Scott Cassas, Parks
& Recreation Committee Chairman, for his feelings on this issue. Blaine
Lutz explained if the Rodgers Memorial Theater should do fund raising for their
new theater, there could be competition among the two groups.
This item will be discussed again at a future
City Council meeting, when Councilwoman Smith is ready to make recommendations.
CAPITAL FACILITIES FINANCIAL PLANNING
Jason Burningham, consultant for Lewis Young
Robertson & Burningham, said he met recently with City staff on capital
funding issues. Mr. Burningham said Centerville has identified several capital
infrastructure projects (culinary water, subdrain and storm water) 2002 - 2008
at an estimated cost of $7,199,797.
Objectives of Financial Planning
- Optimize existing revenue sources
- Ensure revenue sufficiency
- Maintain proper and legal uses of revenues
- Take advantage of Federal and State grants and low interest
- Control Operations & Maintenance (O & M) and capital
Current City Revenue Sources
- Water Sales
- Drainage Fees
- Property Tax
- Impact Fees: Water and Storm Drain Fees
- Miscellaneous Revenue
Available Financing Mechanisms
- Pay-As-You-Go Financing
- Debt Financing
- Revenue Bonds
- Lease Purchasing
- General Obligation Bonds
- Sales Tax Bonds
- Federal and State Grants and Loans
- Development Funding
- Reimbursement Agreement
- SIDs, EDA, RDAs
Recommended Financing Structure
- Match Timing of Projects
- Available Cash Balance and Reserves
- Low-Interest Loan and Grant Qualifications
- Legality of Financing Method
Recommended Finance Structure
Series 2002 (UWFA)
Series 2003 (BWR BOND)
Series 2006 (Public Market)
Steve Thacker stated the subdrain work needs
to be coordinated with street projects. Mr. Burningham said the first bonds
are with the Utah Water Finance Agency (UWFA). Mayor Deamer reported Governor
Leavitt stated in his State of the State address that he wants local water development
costs put back onto the individual cities instead of state funding.
Mayor Deamer asked how the Pay-As-You-Go plan
works. Blaine Lutz explained it is the funds the City would receive in revenue
during the year. Mr. Burningham said there will be increased costs of maintaining
the fluoridation system, and he recommends a rate increase to cover costs. He
also recommends the equivalent of 50 percent of annual operating revenues be
set aside as "rainy day" reserves.
Mr. Burningham discussed the use of utility
user fees versus impact fees to pay for capital projects. He said the City needs
to make sure the rate payers are not subsidizing new developments. Councilman
Gold stated the City needs to set an index on impact fees. Instead of being
reviewed every two to three years, they should be reviewed every year. He also
said developers should be informed what the costs will be in advance.
- The City’s water and drainage enterprise funds appear to
be in good health.
- Plan still requires further analysis.
Steve Thacker reported construction will start
before May 2002 on some of the projects. Councilman Gold said there needs to
be a study on water build-out needs for the next several years. Randy Randall
reported this has been completed, except for the Industrial Park. This item
will be studied further later this year.
Mr. Burningham explained the next steps the
City should take in preparation for issuing bonds, including the adoption of
a "parameters resolution" and public notice. The Council also requested that
Mr. Burningham submit a proposal for financial advisory services to assist the
City with the issuance of bonds.
FLUORIDATION AND CHLORINATION
Randy Randall reported the fluoridation implementation
project began last year. There are eight wells in Centerville and three of the
pump houses will have to be enlarged or replaced. The wells that must be upgraded
are the Holbrook Well, Rolling Hills Well, and the Church Well. Mr. Randall
reported he attended a training class on how to implement fluoridation. The
two important factors for fluoridation are safety and economics. Fluoridation
must be implemented safely and by using the most cost effective method. A water
tap that provides non-fluoridated water will be located at the LDS Church Well
at 200 South and 200 East.
Mr. Randall reported chlorination may be required
by the Federal Government in the future. Adequate space for chlorination equipment
will be included in the pump houses in case chlorination is required.
Mr. Randall estimated it will cost $500,000
to implement fluoride, which is $2 to $3 per house hold per month. Mr. Thacker
said staff will provide a rate increase recommendation at the February 19, 2002
City Council meeting.
The City Council agreed to use the consultant
firm of Lewis Young Robertson and Burningham, Inc. The reasons this firm is
being retained is because they are "independent" financial advisors (i.e. they
are not also bond underwriters), they have a good reputation among other Utah
city managers, their fees are competitive and the City must issue bonds as soon
as possible to finance projects this spring.
The meeting was adjourned at 8:00 p.m.
Marilyn Holje, City Recorder
Connie Larson, Recording Secretary