City Council Minutes March 10, 2020

Minutes of the Fairview City Council Meeting held, Tuesday, March 10, 2020, at 85 South State Street, City of Fairview, County of Sanpete, State of Utah.

Mayor Davie Taylor called the meeting to order at 7:30 p.m. City Council members present were Matt Sorensen, Brad Welch, Cliff Wheeler, Casey Anderson, and Mike Mackay. City Employees present were Jeremy Wright, Logan Ludvigson, Justin Jackson, Garrett Sorensen, Greg Sorensen, and Jan Anderson. Citizens present were Garth Anderson, Audrey Anderson, Curt Ludvigson from Rural Water, Mike Grainge from Division of Environmental Quality, State Revolving Fund, Erma Lee Hansen, Miss Fairview, Emily Kerksiek, Caleigh Hathaway, and Liz Madsen.

The invocation and Pledge of Allegiance was given by Casey Anderson

APPROVAL OF MINUTES:
Councilman Matt Sorensen approved the minutes from February 20, 2020 as amended with a name change. Council Mike MacKay seconded the motion. The voting was unanimous in favor of.

PUBLIC HEARING/APPEARANCE/COMMUNIATIONS:     

Miss Fairview Introductions. Fairview City Royalty for year 2020 is Queen Emily Kerksiek, daughter of Scott and Amber Kerksiek, First Attendant is Caleigh Hathaway daughter Jana Janssen and Rich Hathaway; and Second Attendant is Elizabeth Madsen daughter of Jeremy and Jessica Madsen. They are excited to represent the City and willing to help when and where needed.

REPORTS/ACTION ITEMS – BOARDS/COMMITTEES/STAFF/OFFICERS:

Water Department

Justin Jackson – Update on Spring Line. He briefed the Council on the sewer survey report. There were no significant findings. There are no deficiencies in the system. There were no Sanitary Sewer Overflow (SSO) violations. The questions asked on the survey gives a better understanding of the direction they are going with regulation.

The Utah Public Water Supply Use report was just completed. There was a small increase of numbers from last year. Also, an increase in residential connections. There was 74,000,000 gallons that went through the system. This number was much the same as last year. Can account for 44,000,000 gallons. This has to do with metering the springs and wells. Short 30,000,000 which is not revenue generated. The lower well may be the source of the loss of water. The pipe and tank have issues. The roof has some deterioration issues. Hoping to get into that sometime this summer and come up with a plan. Forty percent is unacceptable number.

The update with the spring line project is moving forward. Plans have been completed by the engineer and approved by Rural Water. The City was approved by Drinking Water for a loan of $240,000 at 2.5 percent interest from the State Revolving Fund. March 24^th at 2 p.m. is the bid closing. The goal completion goal is mid-May.

Mike Grainge, Division of Drinking Water. Mike Grainge was asked to come to meeting to explain the revolving fund program. At the water conference held in St. George, Justin met with the Drinking Water Board asking for financial assistance on an emergency need in redeveloping the Tollgate spring. This is a state program which is funded by sales tax money approved by the legislature. $6,000,000 is allotted every year to aid cities and towns throughout the state. How they determine the funding for projects is by adjusted gross income which is provided by the tax commission and water bills. The median income for Fairview is $44,800 per year which is 93% of the state median income. Fairview’s median income needed to come in at 80% that is why the City did not qualify for a grant but qualified for a 2.5 percent loan which the Board authorized. The loan amount approved was for $240,000 for 30 years. In order to pay the loan back, the average monthly water rate would need to be $60.08. How the City goes about establishing the rate is up to the Council. The charge needs to be able to pay this debt plus any existing debt. It is important that the City charge the true cost of supplying water. Recommended review rates annually to make sure inflation and operation and maintenance costs are being met. The Board needs the City Council’s approval of the loan to move forward. Councilman Casey Anderson asked if they were open to negotiations. Was under the understanding that this was an emergency. That is why the Board did not have the City to a prior application which generally takes two months. The City could go out and do a third-party survey of the residents on the median income. The interest rate is fixed. The length of the loan is the longest we can go on a loan for a city. Any delay would put construction on delay. Mayor Taylor stated that the average cost would be around $11,500 a year. The bid notice is out now. Mayor asked if the Council was in favor of pursuing the loan. The City Council agreed to proceed with this loan. 

Curt Ludvigson, Rural Water – Water Rate Study and Discussion. Mr. Ludvigson has been working on the rates. His findings were based per recommendation from the Mayor that the rate study be based on the base rate. Would suggest water usage, base rate and using different tiers in the future. If the City decided to do the median gross survey themselves it usually backfires. There are currently 642 water hookups. Since the last water increase, the budget is $255,778. There is approximately $50,000 more that is not shown in the number. With that additional money, the total is $305,778. The expense is $374,720 which includes hiring a new employee to split between the water, sewer, and electrical departments. This would put the figure in the hole $69,951. The revenue would need to be increased by approximately $69,000 in just the base rate. Need to increase at least $9. The new rate would be around $37.50 assuming the overages stay the same.

In the median adjusted gross income of $44,800 at 80% then at 1.75% of gross income for 12 months would average $65.33. In the future, if the City went out for grants, etc., the water rate would need to be need at the $65.33. This includes secondary water.

The median house income which comes down through the census is $43,036 which would have given the City an opportunity for a 30% grant. Mr. Ludvigson suggested the City investigate Rural Development for help.

Backflow Prevention Program Update and Discussion. The City’s is expected to adhere to the cross-connection control program. The City must control all devices, document the risk for each home, create a new ordinance defining responsibilities. If a homeowner is in violation with the ordinance, they legally can be turned off. It is a health issue. The ordinance needs to be clear and the public has access to them. Would like to have a $1,500 to put in the budget. Need to complete a hazard assessment survey, create an inventory, and testing will need to be done annually by a certified person who is certified by the State. The homeowner will be responsible for the cost of the test. It will be attached to their bill. There needs to be a data base installed to house the inventory sooner than later.

Planning Commission

Planning Commission Member Approval. The Planning Commission is short two members. Alyson Lee and Dave McFarland stepped down. Mayor Dave Taylor presented the name of Daniel Madsen to fill one of the vacancies. He would like to keep one vacancy open until after the annexation if done. Chair will be Jason Mardell with Heidi Williams as co-chair.

24^th of July Update. Councilman Brad Welch mentioned that he has had a couple of meetings regarding the 24^thcelebration. Still working on getting people lined up. Mentioned to Councilmembers that they need to take care of ticket takers and find someone to sing the national anthem at their event. No Fairview Idol this year. The derby committee is working on making changes to the stockcar heat and payout. Still keeping the 90 heats. Parade chair Debbie Stavros is on board again this year. No throwing candy from vehicles. If participates want to throw candy, they will have to walk behind their entry. It was asked when the sewer line to the rodeo grounds will be installed–  more money is needed. 

INTRODUTION AND ADOPTION OF POLICIES, RESOLUTIONS, AND ORDINANCES:

Resolution No. 2020-02R; A Resolution Removing the Temporary Moratorium on New Waterline Extension(s) Within and Outside the Corporate Boundaries of Fairview City. Councilman Brad Welch moved to approve Resolution No. 2020-02R. Councilman Matt Sorensen seconded the motion. The voting was unanimous in favor of.

Resolution No. 2020-03R; A Resolution Seeking Approval to Move Forward in Applying for Money in the Form of a Loan or Grant from the State Revolving Fund to Repair and Improve Fairview City’s Spring Line Water Source. Councilman Cliff Wheeler moved to approve Resolution No. 2020-03R. Councilman Mike MacKay seconded the motion. The voting was unanimous in favor of.

Resolution No. 2020-04R; A Resolution Approving the Municipal Wastewater Planning Program Survey for Calendar Year Ending 2019. Councilman Brad Welch moved to accept Resolution No. 2020-04R. Councilman Cliff Wheeler seconded the motion. The voting was unanimous in favor of.

Resolution No. 2020-05R; A Resolution Agreeing to the Loan from the State Revolving Fund For $240,000 for the Tollgate Spring Line Project. Councilman Casey Anderson had some reservation,

he does not want the initial water project to be forgotten because this project could serve as a band aid to the main project. He was assured that this was not the case. Councilman Cliff Wheeler moved to approve Resolution No. 2020-05R. Councilman Casey Anderson seconded the motion. The voting was unanimous in favor of.

MAYOR REPORTS:

Mayor Taylor stated he is working on putting together a plan for the City regarding the Coronavirus. Meeting with employees to ensure their needs are met. Precautions in the office are being taken– wipe and clean counters, phones, etc. Trying to get word out to the public–  do not throw wipes/flushable wipes down the toilet. The Easter Egg Hunt will be held the Saturday before Easter at 10 a.m. at the museum

APPROVAL OF VOUCHERS:

Councilman Brad Welch moved to approve the vouchers from February 19, 2020, to March 4, 2020. Councilman Cliff Wheeler seconded the motion. The voting was unanimous in favor of.

It was mentioned that the City had to buy a new bucket for the backhoe. Someone stole the bucket.

EXECUTIVE SESSION:

Councilman Brad Welch moved to go into executive session at 9:14 p.m. to follow up conversation from last council meeting regarding possible litigation and personal property purchases. Councilman Matt Sorensen seconded the motion. The voting was unanimous in favor of.

The City Council reconvened back into regular session at 9:35 p.m.

ADJOURNMENT:

It was moved by Councilman Brad Welch that meeting be adjourned at 9:36 p.m. Councilman Mike MacKay seconded the motion. Motion carried.