LaVerkin City Council Meeting Agenda Amended

Wednesday, December 2, 2009 6:00 p.m.

Council Chambers, 111 S. Main, LaVerkin, Utah

A.     Meeting Called to Order-Invocation by Invitation; Pledge of Allegiance

B.     Recognitions: Employee of the Month - Kyle Gubler

C.     Presentations: Northern Engineering - Kurt Allen

D.     Appointments:

E.      Consent Agenda: (Items on the consent agenda may not require discussion. These items will be a single motion unless removed at the request of the Mayor or City Council.)

1.      Declarations of conflict of interest

2.      Agenda

3.      Minutes: November 4, 2009 regular meeting, and November 10, 2009 special meeting

4.      Review Invoices and Checks: $150,309.41

F.      Committee Reports: Planning Commission, Water Board, Sewer Board, Fire Department

G.     Citizen Comment & Request for Future Agenda Items: No action may be taken on a matter raised under this agenda item. This item is reserved for items not listed on this agenda. (Three minutes per person.)

H.     Public Hearings:

I.        Unfinished Business:

J.       New Business:

1.      Audit Report - Discussion and possible acceptance - Hinton Burdick Auditors

2.      Washington County Water Conservancy District Budget: Discussion and possible action.- Mayor Wilson

3.      Consideration for and adoption of a Parameter Resolution authorizing the issuance of not to exceed $950,000 in Parity Water Revenue Bonds of LaVerkin City, Washington County, Utah and calling a public hearing to receive input with respect to the issuance of such bonds and any potential impact to the private sector from the construction of the Project. - Derek Imlay, Kyle Gubler, Mayor Wilson

4.      Discussion and action on Prosecution Services agreement with J. Marshall McConkie. - Kevin Bennett

5.      Discussion and possible action on Community Garden - Kyle Gubler

6.      Cancel December 16^th City Council Meeting, discussion and possible action. - Mayor Wilson

Staff, Mayor, & Council Reports: City Administrator, Public Safety, Director of Operations, Treasurer; Mayor & Council as follows:

Mayor Wilson: Public Safety, animal control, HCAC, Confluence Park, Vision Dixie Committee, Sewer Board

Jensen: Historical Preservation, Youth City Council, Solid Waste

Justice: Planning Commission, Homeland Security/CERT, Confluence Park

Beecher: Beautification, Economic Development, Trails Committee

Stratton: Utah Shooting Sports Park, public works, Fire District, Sewer Board, Zoning

Beatty: Recreation, arts & crafts, City Festival,

K.    Adjourn:

In compliance with the American with Disabilities Act, individuals needing special accommodations

(Including auxiliary communicative aids and services) during this meeting should notify June Jeffery

(435) 635-2581 ex. 109.

Certificate of Posting

The City Recorder does hereby certify that the above notice was posted on

the LaVerkin City website www.laverkin.org, the Utah Public Meeting Notice website http://pmn.utah.gov and

the city office buildings at 435 N. Main and 111 S. Main on November 30, 2009

June Jeffery, CMC

City Recorder

LaVerkin City Council Meeting Minutes

Wednesday, December 2, 2009 6:00 p.m.

Council Chambers, 111 S. Main, LaVerkin, Utah

Present: Mayor Karl Wilson; Councilmembers Ray Justice, Doug Beecher, Zacharey Beatty, Scott Stratton; Staff: Kyle Gubler, Attorney Kevin Bennett, Chief Lloyd Watkins, June Jeffery, Derek Imlay, Troylinn Benson; Public: Blair Gubler - Ash Creek SSD, Russell Funk - Sunrise Engineering, Kurt Allen - Northern Engineering, Maurine Roberts, Mike Spilker - Hinton/Burdick, Kevin Reynolds, Alison Reynolds, Debi Groves

Councilmember Phil Jensen arrived late.

Meeting Called to Order- 6:00 p.m. Invocation by Invitation & Pledge of Allegiance - Doug Beecher

Presentations: Northern Engineering - Kurt Allen informed council that Northern Engineering is still alive and well and would like to have the opportunity to work with LaVerkin City as projects come up. They have had a great relationship with the city in the past and would like to continue that relationship. He discussed the services available between their offices in Orem and Hurricane. The company has now expanded to include water law/engineering with two water attorneys. Experience with State applications including well and water rights. Even with the economic downturn, the company is still working and would like to have the opportunity to bid.

Recognitions: Employee of the Month - Kyle Gubler presented Lloyd Watkins as the Employee of the Month. Lloyd is very dedicated to the city including sports and school programs. His wife is also a great volunteer.

Consent Agenda: (Items on the consent agenda may not require discussion. These items will be a single motion unless removed at the request of the Mayor or City Council.)

1.     Declarations of conflict of interest

2.     Agenda

3.     Minutes: November 4, 2009 regular meeting, and November 10, 2009 special meeting

4.     Review Invoices and Checks: $150,309.41

Motion by Councilmember Beecher to approve the consent agenda including Invoices and Checks in the amount of $150,309.41, second by Councilmember Justice. Roll Call Vote: Beatty-yes, Justice-yes, Beecher-yes, Stratton-yes. Motion carried unanimously.

Committee Reports:

Planning Commission: No meeting.

Water Board: Karl Wilson said that the board reviewed the regular usage reports and recommended the Bond item under New Business. He would report more at that time on the agenda.

Sewer Board: Blair Gubler reported that the District has moved to its new building. Everything has been removed from the 111 S. Main building. Their next board meeting will be held on December 8^th at their new building. They do have a front-end loader in the city public works building lot that will be used for work in River Wood. It is high-tech, completely computer operated and has passwords in order to use.

Fire Department: Excused

Citizen Comment & Request for Future Agenda Items: No action may be taken on a matter raised under this agenda item. This item is reserved for items not listed on this agenda. (Three minutes per person.)

Maurine Roberts from the Beautification Committee wanted to report on the board meeting held just before the council meeting. 1) The committee asked that a letter of compliment be sent to Debi Groves for the beautiful mural that she had painted on her car wash business on State Street. 2) They discussed the community garden, which is on the agenda. 3) The committee would like to add a new lighted ornament each year to add Christmas decorations a little at a time. 4) They discussed prizes for the decorating contest. 5) They are starting to prioritize projects for the new year. 6) They would like to look at another entrance sign at the Toquerville boundary on SR17. 7) The clean up day will be scheduled for May 14^th as there will be dumpsters at the park again. 8) They would like to look at the State's 5-year plan for State Street to coordinate and beautify all the way through town.

Mayor Wilson closed the citizen comment portion of the meeting.

New Business:

Washington County Water Conservancy District Budget: Mayor Wilson stated that the WCWCD board was holding the budget meeting tonight. He notified them of the timing of this meeting and sent notice for the file that he had no problems with their tentative budget, but would take it to this council meeting.

Motion by Councilmember Stratton to accept the Washington County Water Conservancy District budget, second by Councilmember Stratton. Motion carried unanimously.

Audit Report: Hinton Burdick Auditors - Mike Spilker presented the audit report for FY 2008-09. He handed out the documents. Page 1-2 are statements of review and audit that the report is fairly presented according to standards.

The company audits in compliance with State and Federal laws. Internal controls are the subject of pages 45-46. There are no material weaknesses and there was noted improvement. There were three control findings in 2008 that have been cleared up.

There were two control findings. Compliance findings are required to be reported even if there is no materiality to the finding, but any variance is required to be reported.

Pages 47-48 were for State compliance and showed instances of immaterial non-compliance. But the city complied in all material respects to requirements.

Pages 49-52 were findings and recommendations. Findings were cleared from last year's audit. Finding 08-1 is not a material weakness. SAS112 requires that any adjustments will have a finding. There are fewer adjustments this year than last. There will always be 1 or 2 adjustments.

Spilker showed pages 7-8 financial statements for Governmental and Business activities showing current/long-term liabilities and city funds.  Equity as of June 30, 2009 is $5,495,015. That will increase and decrease over time depending on the health of financial situation. It decreased by about $19,000 in 2009 - not a significant change. There was a decrease in governmental accounts, and an increase in business accounts.

Pages 16-17 showed functions/programs of the city. There are costs to provide governmental services, whereas, business services can charge and direct funds to offset their costs. The balance looks good.

Page 34 was a detail of Capital Assets. It showed depreciation of roads etc. Major asset was the new public works building.

Page 36 showed long-term debt, which decreased by regular debt service payments. Page 37 showed the total business debt.

Page 19 showed cash in/cash out. There was a reduction in fund deficit from $394,067 last year to $100,855 this year (10% of General Fund expenditures). Revenues exceeded the budgeted amount by $1,358; expenditures were lower than budgeted by $28,321.

Discussion about graph charts, showing the general movement of funds. Funds appear to be coming back together after a couple of years out of balance.

(Phil Jensen arrived during the presentation.)

Motion by Councilmember Beecher to accept the audit report as presented, second by Councilmember Justice. Roll Call Vote: Beatty-yes, Justice-yes, Jensen-yes, Beecher-yes, Stratton-yes. Motion carried unanimously.

State Water Bond: Consideration for and adoption of a Parameter Resolution authorizing the issuance of not to exceed $950,000 in Parity Water Revenue Bonds of LaVerkin City, Washington County, Utah and calling a public hearing to receive input with respect to the issuance of such bonds and any potential impact to the private sector from the construction of the Project.

Derek Imlay reported that the 12" water line in State Street has had major breaks in the last year. The water has created caverns under the line and leaks were only discovered when the highway started to sink. The State doesn't help repair these leaks and they are very costly to the city. The old line will just continue to deteriorate. He expressed that operations staff felt this was the best way to handle the repair.

Kyle Gubler stated that on November 12, he was able to appear before the Division of Drinking Water with Russ Funk from Sunrise Engineering where they were approved for a $720,000 low interest loan. The city responsibility will be $40,000 at the close of the loan - 2.9% over 20 years. There are 6700 feet of 12" line from 300 S. to 800 N. and about 3000 feet of undersized 8" and 10" pipe. There is a feeling that this line is responsible for the city's water slippage every month. Research shows that Hurricane abandoned the line in the late 70's and LaVerkin picked it up at that time. Upgrades will increase flow and bring the line into current State standards.

There are several positive outcomes including cost of construction will be down right now with the sag in the economy - bid competition will bring the price down; slippage will go down; study shows the city will not need to raise rates to pay the loan. The first payment will be due on March 1, 2010 and will be the same for the next 19 years. Construction should be finished in 90 days (possibly 120) after starting.

Gubler referenced and the requirements and benefits of Building America Bonds.

Mayor Wilson discussed that Build America Bonds would not be the way to go because of the Davis-Bacon Wages requirements and that the State is anxious to use the money before the legislature goes into session and takes it away. He believes this project is valuable now because of the slippage and repair costs. In the future, costs will go up for installation and repair. The city is retiring another bond this year that will make this loan payment possible. The State requires that the city set aside a reserve of $4800 each year that should be doable without raising rates.

Wilson explained that approving the resolution would not lock into approval of the loan, but would allow the acquisition to move forward with public hearings and publications as required. The public hearing will be done at the January 6^th meeting. Bids will be finalized by January 18 to meet the January 25^th deadline. The Water Board recommended approval of the loan unanimously.

Discussion that it is believed that the project may be done for less than the $760,000 projected.  There is also a 15% contingency built into the loan for change orders. There is also a possibility to install the new line under the sidewalk rather than the asphalt, which would cost a lot less. There is review of that feasibility going on now. This money is also State, not Federal money and bears fewer environmental requirements.

Russ Funk said that the time frame is very tight, the agreement will be sent to Mayor Wilson and Kyle Gubler to get the process started. Wilson said that the staff will take care of the paperwork, the public hearing will be on the next agenda.

There was consensus that the project would save money over the long term. There was discussion about traffic closure and coordinating with Hurricane. This project will be faster than the Hurricane project.

Motion by Councilmember Beecher to adopt the Parameter Resolution authorizing the issuance of not to exceed $950,000 in Parity Water Revenue Bonds of LaVerkin City, Washington County, Utah and calling a public hearing to receive input with respect to the issuance of such bonds and any potential impact to the private sector from the construction of the Project, second by Councilmember Jensen. Roll Call Vote: Beatty-yes, Justice-yes, Jensen-yes, Beecher-yes, Stratton-yes. Motion carried unanimously.

Prosecution Services Agreement with J. Marshall McConkie: Kevin Bennett has researched for a prosecutor and McConkie has come with high recommendation. Prosecutor Chris Edwards decided to leave that field and head his interest in a different direction. The city was able to keep Edwards for five months longer than he wanted so that McConkie would be able to serve the city. McConkie comes from the Snow, Jensen law firm and is now working as assistant county attorney. He will be on a contract basis with the city. The contract will renew each year without notice of termination unless requested by one of the parties. Chief Watkins also recommened McConkie for prosecution services.

Motion by Councilmember Jensen to take action signing the agreement with J. Marshall McConkie for prosecution services, second by Councilmember Beecher. Roll Call Vote: Stratton-yes, Beecher-yes, Jensen-yes, Justice-yes, Beatty-yes. Motion carried unanimously.

Community Garden: Kyle Gubler reported that Alison Reynolds met with the Beautification Committee. He discussed a list of possible city commitments to the garden, including cinder removal, top soil, irrigation to each plot with 3/4" bib, a culinary connection for emergency use. Gubler is concerned about the city meeting the needs of the garden financially. Fencing is bout $7,000, plus labor and equipment costs. WCWCD impact fee will have to be paid because the culinary water will be metered and is part of the contract with the District.

There was discussion about the cost to run a culinary line from Main Street, or a hose from the Fire Department for emergency or off-season use. The city could provide the land and irrigation water without a great deal of cost to the city.

Discussion that plot fees would be paid directly to the city. There was a feeling that the garden would beautify the city and educate the citizens. There was also a feeling that the gardeners should be responsible for the work - getting and installing fencing, weed removal and keeping records of participants. Staff availability is limited, especially now that the State Street water line replacement may be on line. Jensen is not supportive of committing staff time to any of it.

The garden will not affect the city's insurance.

Gubler has talked to Lisa Zanpf who manages the Springdale garden. Springdale provided the ground and the irrigation water, the participants did the rest. They raised money through grants, and donations.

Reynolds is looking for a commitment from LaVerkin so that work can be done for a spring garden. There was discussion about the cost and number of plots (20 plots @ $55-$65.00 per year) Discussion about number of interested participants. Council is supportive of the concept, but there was discussion that the cost to the city may be too much for the limited number of participants.

There was discussion about on-site composting.

Karl Wilson is supportive of the garden and sees it as a benefit to the city and citizens. The budget is restrained. He has met with suppliers for donations and they are laying off people, so it is hard to get financial support. He discussed the budget, new account codes and transfers of funds. City needs to meet bond payments, reserve payments. He is working to rewrite the budget to include the new codes. Money is very tight, staff time is a big concern. Wilson supports the garden, but sees it in a similar light as Jensen.

Jensen restated his concern that the city could give land and irrigation water, but the participants should work to get materials. He can't justify money unless the participants get involved with money or materials.

Motion by Councilmember Beecher to support the community garden with land and irrigation, second by Councilmember Jensen. Motion carried unanimously.

Cancel December 16^th City Council Meeting: Mayor Wilson said that the meeting could be cancelled unless an item comes from the Engineers for the Conservation Plan Update. There was a question from Kevin Bennett if that item would need publication.

Motion by Councilmember Stratton to cancel the December 16^th City Council meeting subject to the Water Conservation Plan Update, second by Councilmember Justice. Motion carried unanimously.

Staff, Mayor, & Council Reports:

City Administrator:Kyle Gubler reported that John Postert has received notice of approval from the Forest Service for a $4,000 in-kind grant for trees for Wanlass Park. The city has also received the Rosenberg gift for twelve trees.

The CDBG surveys are done. Five-County will take care of it. The city will not need to re-qualify for 3 years.

Staff/Council Christmas party is Thursday evening at 6:00 p.m. at the 111 S. Main building. Winterfest is Monday, 7^th. Parade is at 6:00. There will be a float for the council to get on at the elementary school.

SR9 project open house. Will be doing Hurricane State Street from 300 W. to 800 N. by the Eagles. Farmer's Market expects to do better because people will stay in town to shop. There are expected traffic delays. Interstate was awarded that bid. It is an 18-month project.

Public Safety: Lloyd Watkins reported that stats are now on the web site with monthly comparisons.

Director of Operations:Derek Imlay informed the council that there was a great deal of vandalism at the Wanlass Park bathroom over the weekend. It is locked, but will be open for Winterfest. Stratton suggested a motion detection camera to catch the vandals.

The trees from Rosenberg will be installed on the 11^th. Staff will dig the holes and trench. Rosenberg will put in.

Christmas lights are being put up with help from Rocky Mountain Power.

Doug Gubler and Imlay walked the length of State Street noting every hydrant, valve and connection to verify maps for the State Street culinary project. They are meeting with the engineers at the first of the week. Kelly Gillins from Sunrise Engineering has been working with Imlay once a week to upgrade GIS mapping with all street lights, irrigation connections, buildings etc. Once all the information is in the system, staff time to find services will be reduced.

Treasurer: Troylinn Benson handed out copies of the operational budget for November. The budget has not been reconciled yet and will update when that is done. The forms show the updated codes.

The new website is working.

Mayor & Council as follows:

Mayor Wilson: Reported that the new website is having more hits with the Facebook link. Derral Eves has done a good job putting it together.

Wilson met with Rocky Mountain Power through Dr. Kim's efforts to identify lights. Maintenance may do contract, or co-op with Hurricane.

Jensen: No report. Questioned about stop lights at Farmer's Market and Elementary School for timing. Elementary light lasts a long time, Farmer's Market light is too short for people to cross east/west.

Justice: No report.

Beecher: Beautification Committee report was given by Maurine Roberts. Discussed website - economic development link still needs work.

Stratton: If the meeting is held on the 16^th, he will need to be excused.

Beatty: Attended the Mosquito Abatement meeting. Next meeting will be on December 10^th to discuss bylaws and next year budget.

Mayor Wilson called for a brief executive session to discuss personnel at 8:02 p.m.

Motion by Councilmember Justice to convene in executive session after a brief recess to discuss personnel, at 111 S. Main in LaVerkin, second by Councilmember Stratton. Motion carried unanimously.

Council convened in executive session at 8:10 p.m.

Motion by Councilmember Jensen to reconvene out of executive session, second by Councilmember Beecher. Motion carried unanimously. 8:22 p.m.

Adjourn: Motion by Councilmember Jensen to adjourn, second by Councilmember Justice. 8:23 p.m.

Minutes taken by June Jeffery.

Date Approved, January 6, 2010

Mayor, Karl Wilson

June Jeffery, CMC

City Recorder