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City Council
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.

MEMBERS PRESENT:

Mayor:Michael L. Deamer

Council Members:
David R. Gill
Brian Gold
R. Dean Layton
Debbie L. Randall
Nancy F. Smith, was excused at 7:05 p.m. and returned at 7:40 p.m.

STAFF PRESENT:

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

VISITORS:

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 loans
  • Control Operations & Maintenance (O & M) and capital costs

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
    • Exactions
    • 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

Pay-As-You-Go
$2,045,326
Developer Contributions
355,300
Series 2002 (UWFA)
2,197,430
Series 2003 (BWR BOND)
1,428,976
Series 2006 (Public Market)
1,172,765
  $7,199,797

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.

Conclusion

  • 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



 
 
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