City Council Meetings

CITY OF GREEN RIVER CITY COUNCIL WORKSHOP PROCEEDINGS DECEMBER 10, 2013 The Governing Body of the City of Green River met in workshop session at 6:30 pm in the City Hall Council Chambers. Mayor Castillon called the meeting to order. The following Council Members were present: Mark Peterson, Tom McCullough, Adam Coppolo, Brett Stokes, Gary Killpack, and Lisa Maes. The following were present representing the City: City Administrator Marty Black, Director of Public Works Mike Nelson, City Engineer/Utility Manager Mark Westenskow, Director of Finance Jeff Nieters, Parks and Recreation Director Allan Wilson, Recreation Supervisors: Brenda Roosa, Katie Duncombe, Sherry Schumacher, and Kevin Sadler. Jamestown Rio-Vista Water and Sewer District Green River West Pipeline Project The Mayor said the Jamestown Rio-Vista District is asking the council to consider joining them on a water transmission line. They are requesting this be considered as soon as possible. He said the city has no interest in annexing Jamestown. Points of consideration  Jamestown has proposed a special taxing district to serve as the method for collections to meet their portion of financial liability  Jamestown has agreed to establish a reserve or other fund dedicated to “bad debt” as another measure to ensure future financial ability to pay their portion of the financial liability associated with the project  The proposed 80:20 split of costs to Jamestown and the city respectively, is consistent with the engineering report and recommendations in the feasibility study completed on behalf of the State Water Development Commission  The city through its investments secures the right to serve and generate revenue from future water customers not served by Jamestown-Rio Vista, whether or not the parties ultimately are annexed or become the property of the city in the future  The city’s Engineer/Utility Manager has confirmed that the approximate $500,000 investment by the city in this project is likely the least expensive means for the city to provide service to future customers beyond the existing city limits  Consolidation of Jamestown-Rio Vista water rights into those of the Joint Powers Water Board will ultimately benefit all parties in the future should there be continued pressure to divert water resources from the region  Jamestown-Rio Vista District has some real property assets that could be pledged as additional collateral against their financial liability to further mitigate against default on the proposed state loan  The city does not anticipate providing wastewater treatment services to Jamestown-Rio Vista District or other properties to the west. There would be considerable additional expense and engineering required based on actual users to determine and evaluate those costs  The city should confirm that it respects the independent identity of Jamestown and it’s residents/property owners and the city does not have a current interest or intent to annex the Jamestown-Rio Vista District Evan Simpson, from Sunrise Engineering, said he is here on behalf of the Jamestown-Rio Vista District to give a brief update on the joint venture regional water system project. This project consists of a joint transmission line and a 600,000 gallon storage tank. Project Financial Summary Combined Green River 20% Jamestown Rio-Vista 80% Project Costs $8,588,000 $1,717,600 $6,870,400 WWDC Grant 67% $5,753,960 $1,150,792 $4,603,168 City and District Loan $2,834,040 $566,808 $2,267,232 Loan Term (years) 30 30 30 Interest Rate 4% 4% 4% Annual Loan Payment $163,893 $32,779 $131,114 City Council Workshop Proceedings December 10, 2013 Page 1 of 8 The District’s financial plan is to pay for all the costs of improvements using the special improvement district assessment. All property owners would be assessed according to front footage or acreage. Revenue will be collected annually through county tax procedures, and a SID election will have to be held which needs a majority of qualified resident voters to pass. The operation and maintenance costs along with water purchase costs would be paid for through the monthly user rates. It is projected that the current rate would drop as low as $65 per month. The District’s desire is to proceed with either their own 8” diameter pipeline with a 600,000 gallon storage tank or to participate in a joint venture regional system with the city. The proposed regional plan is the Joint Powers Water Board (JBWB) will make the application to the Wyoming Water Department Commission (WWCD) for the grant and loan. The WWCD will be looking at the City of Green River as the primary responsible party. The city would receive payments from the Jamestown-Rio Vista District (District) for their portion of the project and then the city would forward the payment to the JPWB who would make the payments to the WWDC. District Financial Information Fiscal Year Revenue: Water Sales $237,821 Expenditures: Admin and O&M $186,736 County Taxes $36,714 Cap. Improvement $66,816 CD and Savings Interest Total $253,552 Total: $278,645 Accounts: Checking $34,303 Savings $84,116 CD’s $208,208 The District owns 20 plus acres of property on the west side of the river as well as the property where the plant is located. They intend to build reserves to cover the USDA debt service requirements and to set up a reserve account for shortfalls in assessment collection. The District knew they were going to have a big project in the future so they raised the rate to build reserves. They did not plan any capital improvement projects so they can save $90,000 per year. The first loan payment will be due one year after the completion of the project. Joint Powers Water Board Interim Director Barry Cook said, if the city would like to expand the system to the west, the system would be owned by the JPWB and maintained by the City of Green River. The owner of the application would be the JPWB and they would make the application for the grant and loan. Council Member Peterson asked what happens if the grant fails to go through. Mr. Simpson said these types of level three projects are generally always excepted because it has already gone through the level two scrutinies. They would have to go back to square one if it does not go through. Council Member Peterson said the District has already defaulted on a million and a half dollar loan so it might make the WWDC cautious in approving any loans or grants. He asked if there was any way they could pay those funds back on this loan. Mr. Simpson said they do not know what will happen but having both entities involved and having it go to an improvement district guarantees the funds to be paid back. Council Member Killpack said he too would like to see clean water go to Jamestown but he does not think it is right to have the City of Green River take the risk. He would like to see a 100% security before he commits. He said this is a perfect 6th Penny Project. Council Member Maes agreed. This is for property that the city doesn’t even own yet. City Council Workshop Proceedings December 10, 2013 Page 2 of 8 The Mayor asked the city engineer what the return would be if they go forward with the joint project. Mr. Westenskow said it comes down to whether or not the city plans to provide water to the area west of Jamestown-Rio Vista. If this is the plan then there would be an initial reasonable investment of $500,000. Financially, it would be an initial investment by the city that would lead to selling water to potential future customers. Mr. Black said there in no way to quantify what the return would be in the future. There is no guarantee of future need or want to develop. The water system in the District will fail at some point and the backup plan is not a long term solution. Council Member Killpack asked what will happen to the water right‘s that the District owns if the project goes through. Kael Jasperson, from the Jamestown-Rio Vista District, said the JPWB would inherit the rights from the District. He said they are not asking for the city to assist them in this project but to be a partner on this project. Either way the District will move forward with or without the city. Council Member Coppolo said this could be a good investment, but the consensus is they are concerned that the city is going to be solely responsible. Mr. Jasperson said the special tax assessment is the guarantee. The county would sell the property in the event of someone not paying. The default of the million and half dollars was not caused by Jamestown-Rio Vista District it was caused by the failure of the major developer that owned all of the major property on the west side of the Green River. The state got 100% and then some of their principle loan amount but what they did not get is the 8.5% interest. The District has done a remarkable job keeping the District solvent and running through some big odds and they plan to continue. Mr. Black said it would require every individual property owner not to pay for their assessment to have a complete failure. The city’s 20% of the project would not be built if the city does not take part in the project. Tom Jacobson from the JPWB said the understanding is that the WWDC will only support one line to the west. Council Member Peterson asked if it was a requirement to have a loop system to keep it fresh. Mr. Simpson said it is a transmission line so one line is acceptable. Council Member Peterson said Jamestown still needs to get their constituents informed so no decision has to be made tonight. Mr. Simpson said they need an answer as soon as possible because they will have to hold an election in May and there are a lot of things that have to be done before then. Council Member Peterson clarified the district is collecting over $400,000 from their residents a year and they still are asking for help. The Mayor asked if the District moves forward on their own with an eight inch line will it cross the river. Mr. Jasperson said yes. The Mayor asked if the distribution system is included in the joint project. City Council Workshop Proceedings December 10, 2013 Page 3 of 8 Mr. Jasperson said no. This is for the transmission and storage line only. The Mayor clarified that the distribution system improvements are not part of this project and will not affect the city’s $566,000. It will be an additional cost to Jamestown only. He asked how they plan to pay for those improvements. Mr. Jasperson said they have not decided if they will move forward with the distribution system improvements. If they do it will be paid through the tax assessment package and will be raised through the property taxes of the people who benefit from the improvement. Council Member Killpack said the only benefit to the city would be if the city owns Sections 10 & 12. He does not have any interest in Section 10 & 12. Council Member Coppolo said if a private developer would be interested in developing out to the west there is no water so the land is useless. He thinks the constituents should let them know how they feel about this and then council can decide. Council Member McCullough said the newspapers need to get the information out to the citizens and then council can decide. He has had calls on this and they do not agree with moving forward with the project. He asked when the District needed an answer. Mr. Jasperson said as soon as possible. Council Member Stokes said he understands the needs in Jamestown. The decision is up to the public and they should have a chance to give their input. Council Member Peterson said his concern is the liability. The Mayor said Sections 10 & 12 will be out to the public for sale by the Bureau of Land Management and someone can purchase them by bid. The chances of someone purchasing them will be better if there is water available. He said it is a small investment for the possibility of higher tax base and an opportunity to expand Green River. Dave Shilcox said this is a great opportunity; we are all in it together, and it is a development that can benefit all. County Commissioner John Kolb said it is no longer a local issue it is a regional issue. There is a need to supply water to communities. The debt has been forgiven and there is another opportunity for improvements. This issue will not go away. It will be in the best interest to work together as a community. The money will be collected by the county in taxes. Council Member Peterson asked if the county has ever done this before. Mr. Kolb said no, but other counties in Wyoming have. Council Member Killpack asked why the county isn’t taking part in this project since the District is under their jurisdiction. Mr. Kolb said Jamestown is their own entity; they are a water and sewer district. Council Member Killpack asked why can’t the city put a transmission line to Jamestown and then sell the water to them. Mr. Black said the JPWB would have Jamestown-Rio Vista District as a new wholesale customer. Council Member McCullough said it should be added to the agenda on January 7, 2014. Mr. Kolb said it is a positive to have more water rights on the river. The Mayor said council will have an answer for them after the January 7, 2014 meeting. City Council Workshop Proceedings December 10, 2013 Page 4 of 8 Parks and Recreation Power Point Mr. Sadler thanked council for letting them share the information on the Recreation Center and the Leisure Program Divisions. Having the part-time staff within the divisions makes it possible to offer programs. Ms. Schumacher said they tie in to the strategic plan and goals that have been adopted. They are often the primary source of information to share with realtors, perspective employees, and relocating families on what there is to do for families in the city. They make Green River attractive by offering many different programs and by the beautiful recreation center. They provide the Art on the Green program and the Crystal Classic Winter Festival. The city is a family community with great choices for recreation. Staff is constantly looking to improve the services and they strive to make them the best they can be. They provide a variety of programs for all ages all year round. Current Office Configuration Mr. Wilson said the current office configuration at city hall is 1,500 square feet including restrooms, hallways, and support staff area and storage. The director’s office is 192 square feet, the senior administrative assistant’s is 192 square feet, and the parks, facility, and project manager’s office is 144 square feet. The Recreation Center has 482 square feet of office space. The recreation supervisor facility operations is 195 square feet, the recreation supervisor youth/adult sports leagues is 121 square feet, the recreation supervisor swimming lessons/health and fitness programs is 96 square feet, and the recreation supervisor GRASP, Plates Loft, gymnastics and special events is 70 square feet. Council Member Maes said Ms. Duncombe’s office was for a waiting area and not an office. Proposal for office relocation The estimated cost would be $100,000 and would add additional square footage utilizing the existing building footprint. This would eliminate the ping pong table, pool table and a portion of the lobby area. This would need to be approved by the State Fire Marshal’s office for code compliance. Council Member Peterson said the purpose of the recreation center is for recreation. He does not think adding offices would be a good idea. They could move people around and share the bigger office. Council Member Coppolo said you adapt to the area you have to do your job. He suggested they go to cubicles in a large office. Council Member Maes asked why they would leave the offices that are in City Hall. Mr. Wilson said traditionally, the director’s office in located with the support staff. He would like to be available to his staff. Council Member Maes said that would make citizens that need a cemetery plot having to go clear across town. She asked what would happen to the office area at City Hall if they move out. Mr. Wilson said citizens could still do everything through them but it would be at the Recreation Center instead. If they move out of City Hall he will work with Mr. Black on what to do with the space. Ms. Schumacher said they have changed over the past five years. There have programs that have changed or been dropped. One recreation supervisor has left and the position was not replaced. City Council Workshop Proceedings December 10, 2013 Page 5 of 8 Ms. Duncombe gave a brief overview on the Leisure Programs Division supervisor responsibilities and the Recreation Center staff responsibilities. Mr. Sadler said there are no other recreational programs offered in the community. He said there are traveling leagues that are based on more skilled players and are more expensive. Council Member Maes said it is important to have recreational leagues to teach the kids. Ms. Schumacher said one event that she is in charge of is the Middle School New Year’s Eve Party. They have a large number of students that come and they play games, watch movies, have door prizes, swim, dancing, and roller skating. This is a safe activity for kids in the community. Council Member Peterson said this is not what he expected. He would like answers to questions that he has. He knows what programs they have and the duties of staff but there are some areas that are questionable. Mr. Wilson said staff has started entering information into the database for the Parks and Recreation National Database Report but this is a brand new program in the nation. The National Database reporting is not up to speed and is not complete. Council Member Peterson said he is being told that Monday through Friday the Recreation Center does not function well, but on the weekends it does great. What is the problem? Mr. Wilson said they are looking at some things internally. Staff is doing a great job and they are cross training the part-time staff so they do not have to hire more staff. Council Member Peterson asked why a supervisor is claiming to be the head director. Mr. Wilson said there is no head director at the recreation center. He is the director and everyone answers to him. Council Member Peterson asked what it costs the city to run the recreation center and how much does it make. Mr. Wilson said the city subsidizes the recreation center around 60% with a 40% recovery. When the recreation center was built it was for the quality of life for the community. It was not built to make money. Council Member Peterson said police protection, fire protection, water, garbage, and sewer are essential and a household cannot run without them, but recreation falls way down the list. Mr. Wilson said they cut $300,000 from their budget. Council Member Peterson said he is worried about next year’s budget. Council Member Coppolo said it is more like a 78% subsidy. Mr. Wilson said that is why they raised the rates last year. They were trying to offset some of the costs. Council Member Coppolo said the amount of full-time and part-time recreation staff the city has compared to the Family Recreation Center in Rock Springs is huge, and they have a larger community. Council Member Stokes said he has not heard one bad thing about the Recreation Center and he appreciates everything they do. He does not see a problem with what they do. The recreation center was not built to make a profit. Council Member Killpack said he agrees with Stokes. There is not a problem with the recreation center. City Council Workshop Proceedings December 10, 2013 Page 6 of 8 Council Member Maes said if you keep a kid out of trouble that costs our community far less than having to incarcerate that person. It is the quality of life that plays into it. Mr. Wilson said staff addresses any complaints or issues right away. Council Member Coppolo asked if they could provide a better breakdown of the program expenditures. Mr. Black clarified that council would like a breakdown for each special event so the council can see what the expenditures are. Mr. Wilson said they will provide that to council. This will show the events that council decided to do that were not budgeted and make it appear that they are over their budget. Mr. Black said council requested staff to look at additional events that could be held, but there are no additional funds to help with them. It would be great to get information from council on the highest priority events. Council Member Coppolo asked if they would provide a better breakdown of how many people are using the recreation center. He wants to know how many people use the recreation center not how many times a day they use it. Council Member Peterson said during crystal classic there was a baseball game that was officiated. Why can’t one of the players ump the game instead of paying someone to do it. Why can’t the parent’s ref the kid’s games. We shouldn’t be spending the money to pay refs. Mr. Sadler said they have to have certified ref’s to host youth programs. Parents are not willing to ref, and there could be some serious safety issues. Council Member Peterson asked if the new pool at the school will be open to the public. If it is open to the public, will it create another position? Mr. Wilson said it will be open to the public, and School District #2 will be hiring the administrator for the new pool. Council Member McCullough said there have been concerns of losing instructors and the subsidy of the recreation center. Overall, he does not want to get in to micromanaging the staff of the recreation center. The Mayor thanked them for doing a good job. He said the subsidy will always be there. He would love to see the recreation center grow someday. Staff member Michael Berry said it is important to keep the recreation center open so kids can go there; having it brings them together as a community. Strategic Plan Implementation Draft Schedule Review Mr. Black said he has been working with the department directors on tracking the implementation of the strategic plan. There are several elements that do not have a level of detail. When one is addressed staff will bring it up at a workshop to get council input on the direction they would like to go. Staff will be updating the progress online so council can look at it at any time. The workshop adjourned at 9:15 pm. ______________________________ H. Castillon, Mayor ATTEST: City Council Workshop Proceedings December 10, 2013 Page 7 of 8 _____________________________ Jeffrey V. Nieters, City Clerk City Council Workshop Proceedings December 10, 2013 Page 8 of 8