B.     Recognitions: Employee of the Month - Kyle Gubler

C.     Presentations:

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: August 18, 2010 regular meeting minutes

4.      Review Invoices and Checks: $102,459.28

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

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.       Business:

1.      Review compliance and staff recommendation for Bob Stevens' properties at 95 S. State and 160 S. State. Discussion and possible action.

2.      Ratify Agreement with Royal T Construction: Discussion and possible action.

3.      High Desert Holdings, LLC - Robert Porter Request: Payment of park impact fees to High Desert Holdings from Riverwood Estates. Discussion and possible action.

4.      ERA Brokers-Robert Porter: Request to allow real estate agents or companies longer than 48 hours of temporary water service for inspections and appraisal purposes. Discussion and possible action.

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

Mayor Wilson: Public Safety,  HCAC, Confluence Park, Water, Sewer Board

Jensen: Historical Preservation, Youth City Council, Solid Waste

Justice: Planning Commission, Homeland Security/CERT, Confluence Park, ZC3

Beecher: Beautification, Economic Development, Trails Committee

Stratton: Utah Shooting Sports Park, Public Works, Fire District, Sewer Board, Zoning

Howard: Mosquito Abatement, Recreation, 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, City Recorder, (435) 635-2581, at least 48 hours in advance.

The undersigned City Recorder does hereby certify that the agenda was sent to each member of the governing body, sent to the Spectrum newspaper,

posted on the State website at http://pmn.utah.gov, posted on the LaVerkin City website at www.laverkin.org and at the City office buildings

111 S. Main and 435 N. Main on August 27, 2010

June Jeffery, CMC

City Recorder

Present: Mayor Pro Tem Phil Jensen; Councilmembers Ray Justice, Doug Beecher; Staff: Kyle Gubler, Attorney Kevin Bennett, Chief Lloyd Watkins, Troylinn Benson, June Jeffery, Derek Imlay; Public: Jonathan Zundel, Bob Porter, Chuck Hardy, Jaxton Steglich, Jimmy McFarland, Nathan C. Reeve, Terina Ballard, D. Rhett Black, Sid Johansen, Cheyenne Ballard, Drex Black, Autumn Ballard, Kade Shearer, Luke Sexton, Heath Snow, and others

Mayor Karl Wilson, Councilmembers Scott Stratton, and Hugh Howard were excused.

Meeting Called to Order by Mayor Pro Tem Phil Jensen at 6:00 p.m. Invocation and Pledge of Allegiance by Blair Gubler.

Jensen recognized the scouts in attendance. They are at the meeting to receive CERT certificates.

Recognitions: Employee of the Month: Kyle Gubler announced Officer Jake Bulkley as the September employee of the month. Bulkley works with BCI, has TAC duties with State Records, patrol duties and is the leader in DUI offenses. Works with JKAT and is deputized with the US Marshal in order to assist that agency. He helped in the recent Kane County manhunt along with LaVerkin Officer Kade Hall. Today is his one-year anniversary with the city.

CERT Certificates: Kyle Gubler presented the CERT certificates as Rita Bice was unable to attend. They went to Jimmy Macfarlane, Christopher Jordan, Drex Black, Tanna Post, Preston Atkinson, Terina Ballard, Tyler Hall, Damon Atkinson, Corey Sutton and Luke Sutton. Gubler expressed thanks from Chief Kuhlmann of the Fire District. Chief Watkins also expressed his appreciation.

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: August 18, 2010 regular meeting minutes

4.      Review Invoices and Checks: $102,459.28

Planning Commission: No meeting

Water Board: No meeting

Sewer Board: Blair Gubler reported that the District made the last cutting of hay - 7,000 bales. The harvest was really good this year. Bales sold for just over $3.00 each. There had been no meeting, but several projects. Lines in the State road in Hurricane have been replaced and the north end is finishing. They have been stubbed into the side streets and the District will extend them in-house. The Hurricane project should be finished in about three weeks and the District will begin to clean the entire system. This is done every two years and will start in Toquerville and should finish in the spring.

Fire District: No representative

Citizen Comment & Request for Future Agenda Items: No comments.

Review compliance and staff recommendation for Bob Stevens' properties at 95 S. State and 160 S. State: Kyle Gubler presented photos that were taken on August 27^th showing the final clean up. A preliminary walk-through was done on the 20^th and a punch list was put together. They have completed the punch list. Watkins, Imlay, and Gubler did the final review and would recommend suspending the $125 per day penalty as of August 27^th. Council has the authority to suspend that penalty.

Kevin Bennett suggested that the penalty be suspended until either the case was terminated or the property went into violation again. There would need to be satisfaction of judgment and release the lien. He suggested that the penalty not be terminated as yet because the case isn't terminated and could go out of compliance again.

Gubler presented a handout showing figures for the penalty to be billed at $41,250 for 330 days at $125/day.  Attorney fees show as already incurred and to be incurred. Interest is shown at $0.32 per day. Total estimate as of September 1^st would be $45,482.53.

Heath Snow stated that the Council would need to make motions on two items. First motion would be to suspend the penalty of $125/day. That amount belongs to the city and if the punch list is done, the Council could ratify and accept the staff recommendation that the fines be suspended. Snow indicated that Stevens had made a proposal that may want to be reviewed in an executive session. Second motion would authorize staff to use the amount of $45,482.53 as the grand total amount for pay-off.

Snow stated that the direction would allow him to request to augment judgment. That would be filed with the court. Fees for the court, post judgment attorney fees, and interest would accrue similar to the presentation by Gubler. Court could give judgment that would allow interest to accrue on the entire amount about $3.00 per day. City could also foreclose.

Gubler stated that Steven's bill as printed was ready to send out.

Discussion that executive session could be held at this meeting or could be held over to another meeting. There was discussion about the process for the decision including that an executive session could be held and no action taken; item could be put on a later agenda for settlement; if paid before next meeting the case could be over; whether entire council should be in attendance; two more weeks until the next meeting; accept a certain amount or listen to the counter offer.

There was discussion about the invoice presented. Clarification that the invoice does not include actual attorney fees or interest. There should be no room for confusion. The fees as listed are good estimates, but the cost of enforcing the judgment may be recalculated with the augmentation.

Discussion about the order of business. Council would make the two motions as outlined by Snow and then move to executive session to review counter offer and strategy.

Ratify Agreement with Royal T Construction: Kevin Bennett reported that the bid with Royal T had been accepted and this is a formal acceptance of the agreement with them. The loan has been approved by the State and money is in the escrow account. This finishes the required reports to bond counsel. This ratification allows the process to go forward. Staff will meet with the company next week to get things rolling.

High Desert Holdings, LLC: Robert Porter requested discussion about payment of park impact fees to High Desert Holdings from Riverwood Estates.

Kevin Bennett stated that paperwork had nothing new to add since the last time on the agenda a month ago.

Jonathan Zundel apologized for missing the meeting held last month. Doug Beecher wondered that if the item was tabled, there should be a motion to take it off the table.

Zundel stated that at the time the Riverwood Subdivision was proposed, the developers were required to deed land to the city for a park and the developers felt they had not been justly compensated for that property nor the development and services that prepared the land. They weren't looking to make a gain, but to be compensated for money they expended. They paid $141,000 for the land and received $22,421.86 to date. Development costs, including earthwork, were about $120,000.

Phil Jensen summed the issue up as a difference of opinion. Minutes from the City Council meeting of July 18, 2007 reflected approval of a concept for park improvements in exchange for impact fees. The city released impact fees that had been collected up to that time for the improvements that had been made, but believed that further release would be made as improvements were completed. Jensen stated that the park had not been improved, there was no equipment only grass.

Derek Imlay agreed that when the subdivision went in, the park was required because the subdivision was expected to be so large that population increase would impact existing parks. The first portion was done before the park was phased. Phasing the park made it so that the expenditures made by the developer to improve the park wouldn't be a burden. With the phasing, each phase would be required to be completed before the city would reimburse. He didn't believe that there had been any further direction for staff to come back to Council. If the park had been completed, there would be no issue, but only the first part was done. There had been work done on the second phase, but the developers no longer have any ability to complete the park because of economic conditions and there will be no future phases. The city will use the impact fees that have been collected to put the park in place. He didn't believe that there was any other approval than conceptual. There are no amenities, the city will use the impact fees that it will collect to improve/finish the park.

Jonathan Zundel asked if this was a subdivision park or a city park. It has been dedicated as a city park. Zundel stated that the city has allocated park fees through the Capital Improvements Study that will pay for this park and others.

Jensen stated that the requirements agreeing to put this park in, didn't involve the rest of the community. With the controlling entities out of the development, the agreements cannot be fulfilled.

Zundel believed that the city said they would reimburse for the subdivision park. Bennett stated that there was no agreement, and the motion stated payment only for $22,421.86. The developers may have paid $140,000, but even the highest amount offered for reimbursement was $68,020.86 in phase 1.

There was discussion about actual cost and those reimbursements listed in the proposed phasing. Value of land then and now. Council held that the phased proposal was 100% concept approved with a direction for staff to look at, and that was reflected in the minutes. The only agreement was for the payment of $22,421.86. The further improvements were not made.

Zundel stated that the second phase checklist was almost complete, but that the developers did more that put in the grass.

Jensen replied that there would be disagreement in this concern. The development was not completed, the park was not completed and the agreement was not valid.

Zundel recognized that the park was not completed, but the city will recoup impact fees that will finish the park in the future. The developers want to regain what they felt was rightfully theirs for expenditures already made.

Discussion that impact fees come at the time of building permit; expected growth in that area made the park necessary; development was done to benefit the city and make a nicer development where lots would sell for more money for the developer; park was required by ordinance; ordinance isn't in the code book; the park was donated on condition of subdivision approval; developers only asking for reimbursement on phases one and two.

Derek said that if the city had known that only two phases would be completed, they would have required the park fully functional. By spreading out the park development, it gave the developers a way to complete the park over time. But the park can't be completed, the contract is void. Rather than the nice park it was presented to become, the park has become a maintenance issue. If the proposed development had been smaller, the required park would have been smaller. The park  land was also encumbered by utilities and easements and was not developable for residential use.

Zundel countered that the Capital Facility Plan for the city provides a means for the city to develop the park. He restated that the developers are not looking to be unjustly enriched, but compensated for work and development that was already done.

There was discussion from council members that everyone was disappointed in the turn in the economy. The city didn't get what it wanted, nor did the developers. There was discussion about the number of lots sold and the impact fees that would have come from them. There are ten houses in phase one. The developers were paid for that phase and then they lost the land. There are six homes in phase two. There are a total of 53 lots in phase one and phase two. Jensen could see no solution.

Bob Porter said that the park was donated to the city as a condition of development in lieu of impact fees. He wondered how the city could take the park, the impact fees, and the improvements without reimbursing the agreement. In lieu, yes, but not both.

Jensen reflected that any consideration toward reimbursement would come after the park was improved as listed.  Work that was supposed to have been done for 200 homes will be for only 53 homes. Until there is another understanding, this is a "done deal" and can't happen.

Jensen asked about the amount of compensation the developers are seeking. Zundel would like to have the $97,680 as in the agreement for phase two, and the rest from phase one - about $20,000.

Discussion that phase one payment was released as paid. Porter believed that the agreement would be honored by the city.  There was discussion whether compensation would be had if the development would have moved through phases 3-5. Jensen stated that the city didn't have the money. Zundel said that the project was phased, because the city didn't have money to compensate all at once.

Looking toward action on the discussion, Jensen wondered what the options were -denial or looking at it another way.  Bennett said that there were a lot of problems with the direction. The motion as it was recorded is difficult to figure out. The $22,000 reimbursement was clear. Staff was not given any more to look at, and the concept was possibly just a proposal from Ben Reeves, former manager. The minutes said nothing about paying for the land, the dedication was already complete. The city never thought they were buying at market value. The park is a mess, in a premiere development. There was no document signed, only the dedication and donation.

There was discussion that the city required 5% of the land to go in park, and that the developers were required to dedicate the land as a condition of subdivision. Their first drawings didn't show a park.

Zundell expressed frustration. The city will have the ability to pay for the park through other developments and impact fees in the future as allowed in the Capital Facilities Plan.

Jensen restated that impact fees have been reimbursed for those houses in phase one, and that about $20,000 has been collected in phase two.

Zundel said that the Council is the moral conscience of the community. The developers did a lot to improve the park. Jensen replied that the developers were in business to make money and the park allowed them to make more.

Jensen's opinion was that the fees would be released at completion of each phase. Zundel wondered at which point the whole phase would be released. Jensen stated that the city didn't receive those impact fees and has no money to reimburse. The economy has been bad for everyone. Things don't always go the way they are planned. Porter said they did the park, because they thought they would be paid.

Jensen expressed that he could see some valid points and could possibly see the second phase collected to this point, but he would like to have the remaining council and mayor in attendance to make a decision.

Justice recalled the excitement of the development to sell great homes, with a great park as an amenity, the only thing to rely on now was the minutes.

Beecher referred to the impact fees that had been collected and reimbursed. The park was not complete and now the city has to use those fees to finish the park. How does the city release money that doesn't come in?

Jensen would like to review the agreement and possibly entertain a reimbursement in phase two. Bennett restated that there was no agreement. The proposal at the July 18, 2007 meeting was conceptual only with a directive to reimburse the $22,000 collected in phase one. There was never a written agreement. Staff was to have additional work with the developer and bring the concept back for approval by Council.

There was frustration about going back three years to an item where there was no agreement made and trying to reconstruct.

ERA Brokers: Robert Porter made a request to allow real estate agents or companies longer than 48 hours of temporary water service for inspections and appraisal purposes. He discussed that when a home is for sale, he has to make appointments for appraisers and inspectors. Sometimes 48 hours was not enough time. Questar Gas and Rocky Mountain Power turn on and off on the dates specified by the real estate company. Bank loans are on rigid time-frames and with the city's rigid schedule it is difficult to make it all match up. He would suggest that the water be turned on for up to five days for the $25.00 fee. Gas company charges $15.00, power charges $10.00.

Kevin Bennett said that there is a problem with the way the City's 48-hour turn-on was created. The item is only in a fee schedule resolution, but is not a self-standing resolution, and is in conflict with the ordinance governing water use, which states that "any" person shall...The ordinance will at the least, need to be modified to allow a "short-term" connection.

Beecher believed that there should be a provision allowed.

Troylinn Benson informed that the city pays for the services that are connected to water turn-on whether they are used or not. The 48-hour allowed realtors to have the water for a short time without paying deposits required by other users.

June Jeffery stated that the water use is tied to long-standing agreements held with the Solid Waste District for trash pick-up and Ash Creek Sewer District. Once the water is on, there is no guarantee that the sewer won't be used, or that trash won't be left at the curbside. Whenever water is on, those agreements state that the city will pay at least prorated rates.

Justice mentioned a concern that when water is on, and no one is there, a water leak could be a major problem. Imlay confirmed that concern with an example. There was a question about city liability in those cases.

Beecher said that this would not be an issue completed during this meeting, but he would like to give staff direction to clean up the code and check with other cities and entities to find out how they handle short-term use.

City Administrator: Kyle Gubler reported that Kelly Washburn met with John Postert and he to help inventory the city trees. Gubler would give the Springdale Transit Study rough draft to Beecher. The rest of the report is in written format.

Public Safety: Lloyd Watkins reported that Officers Bulkley and Hall traveled to Kanab to assist in the manhunt. Some of the reserve officers were there as well. The city was well represented. Officer Romney covered shifts while they were gone. Watkins appreciated his officers and the courage it took to go on the manhunt. He felt lucky to have them serve the city. Ray Justice expressed appreciation to Annette Murri, who is back as second crossing guard. He also thanked Imlay's crew for painting the waiting pad at the crossing area.

Director of Operations: Derek Imlay reported that there had been a major pipe break at Silver Acres. The hole was about 10 feet deep. There have been five irrigation and three culinary breaks in the last couple of weeks. He expects the problem to continue as the flow rates through the system get better. The higher flow breaks up the old pipes, but the city can't afford to replace the system. Some of the pipe is so old, that current fittings don't work and need to be filed. With the sand being flushed out of the system, the flow is greater. Valves are being placed to separate areas of town off when there are breaks.

Treasurer: Troylinn Benson said that it was lucky that a vehicle didn't get lost in the hole at Silver Acres. The breaks are being handled in the budget.

Mayor Wilson: Not in attendance.

Jensen: Reported for the Mayor that the Confluence Park Committee applied for three grants and received two, one for $30,000 (for restoration) and one for $51,000 (for a parking lot).

Justice: Further reported that the grant that was not received was for an irrigation line to be installed in conjunction with improvements that will be done by Ash Creek Sewer District. The District is on-hold with their improvements.

He also reported that Dixie Metro Planning had a model conversion process for transportation in the county to address future growth. Need to refine data. Will project short-term and long-term.

Beecher: Beautification committee met tonight. City-wide clean up will be October 16^th. Will be using the LDS wards again in the same areas as before. Instead of depending on the Bible Church, they will use LaGrande Imlay and the "service" youth for that area of State Street.

Stratton: Not in attendance.

Howard: Not in attendance.

Minutes taken by June Jeffery.

September 15, 2010, Date Approved

Mayor, Karl Wilson

ATTEST:

June Jeffery, CMC

City Recorder