City Council

River Heights City COUNCIL MEETING AGENDA Tuesday, August 27,2019 Notice is hereby given that the River Heights City Council will hold its regular council meeting beginning at 6:30 p.m. in the River Heights City Office Building at 520 S 500 E. Opening Remarks (Thatcher) and Pledge of Allegiance (Wright) Adoption of Previous Minutes and Agenda Report and Approval of Payments(Mayor, Council, Staff) Public Comment Lions Club Pavilion Proposal Discuss Old Church Property (443 S 500 E) Adjourn Post^t|iis 22"'^ day of August 2019 Sheila Lind, Rec(^der Auachmenis for this meeting and drafts of previous meeting minutes can be found on the State's Public Notice Website (pmn.utah.gov) In compliance with the American Disabilities Act, individuals needing special accommodations(including auxiliar>- communicative aids and services) during this meeting should notify Sheila Lind.(435)770-2061 at least 24 hours before the meeting. 520 South 500 East River Heights, Utah 84321 Phone & Fax (435) 752-2646  River Heights City 3 Council Meeting 4 5 August 27,2019 6 7 8 Present: Mayor Todd Rasmussen 9 Council members: Doug Clausen 10 Robert"K" Scott 11 Elaine Thatcher 12 Dixie Wilson 13 Blake Wright 14 15 Recorder Sheila Lind 16 Finance Director Cliff Grover 17 Treasurer Wendy Wilker 18 19 Excused: Public Works Director Clayten Nelson 20 21 Others Present: Jim Brackner, Cindy Schaub, Heather Lehnig 22 The following motions were made during the meeting: 25 26 Motion#! 27 Councilmember Thatcher moved to "adopt the minutes of the council meeting of August 13, 28 2019 and the evening's agenda." Councilmember Scott seconded the motion, which passed with 29 Clausen, Scott, Thatcher, Wilson and Wright in favor. No one opposed. 30 31 Motion #2 32 Councilmember Clausen moved to "pay the bills as noted, including add-ons for the Apple 33 Days bills discussed, the Logan City bill, once the container issue is resolved, but to not hold it up to 34 the point we get a late charge. Its agreed to cut the check for Tennis and Track, to be held until the 35 closing documentation is received. Note: Treasurer Wilker has three bills not on the list to be paid, 36 which we are attempting to get W9s for." Councilmember Scott seconded the motion, which carried 37 with Clausen, Thatcher, Scott, Wilson and Wright in favor. No one opposed. 38 39 Motion #3 40 Councilmember Clausen moved to "allow the Lions Club to repair the pavilion roof." 41 Councilmember Wilson seconded the motion, which carried with Clausen, Scott, Thatcher, Wilson and 42 Wright in favor. No one opposed. 43 44 MrtyHiigi 520 South 500 East River Heights, Utah 84321 Phone 8c Fax (435) 752-2646 47 Motion #4 48 Councilmember Clausen moved to "reiterate their willingness to declare the Old Church 49 property as surplus." Councilmember Thatcher seconded the motion, which carried with Clausen, 50 Scott, Thatcher and Wright in favor. Wilson opposed. 51 52 53 Proceedings ofthe Meeting: 54 55 The River Heights City Council met at 6:30 p.m. in the Ervin R. Crosbie Council Chambers in 56 the River Heights City Building on Tuesday, August 27,2019 for their regular council meeting. 57 Opening Remarks and Pledge of Allegiance: Councilmember Thatcher opened the meeting 58 with a thought and Councilmember Wright led the group in the Pledge of Allegiance. 59 Adoption ofPrevious Minutes and Agenda: Minutes for the August 13,2019 meeting were 60 reviewed. 61 Councilmember Thatcher moved to "adopt the minutes ofthe council meeting of August 62 13,2019 and the evening's agenda." Councilmember Scott seconded the motion, which passed 63 with Clausen, Scott, Thatcher, Wilson and Wright in favor. No one opposed. 64 Reports and Approval ofPayments CMavor. Council. Staff): 65 66 Public Works Director Nelson was absent. 67 68 Finance Director Grover 69 • He explained the Financial Summary report (in the new format), which reflected accounting 70 through the month of July. 71 72 Treasurer Wilker 73 • She explained there are a number of bills not listed on the report, which include: Apple Days 74 bills from Jenny Hadfield in the amount of $97.52, Heather Lehnig for $273.95,Peggy Smith 75 for $113.93, Sheila Lind for $25.53, Sara Nelson for $56.56, and Ashlee Cordingley for 76 $111.12. Also added was a bill from Whitaker Construction for $90.44 and another from 77 Sprinkler Supply for $800. Councilmember Wilson wanted the Sprinkler Supply bill held until 78 she verified with PWD Nelson that it was all for the tennis courts. 79 • She pointed out there were some additional charges from Logan City on the sanitation bill, for 80 rolloffcontaineruseon July 23. No one was aware of an explanation. She will call Logan 81 City to get more information. The bill totaled $31,148.81. The roll off container charge was 82 $1,272.90. 83 • She asked ifthe council remembered a standard that was set by them a few years back due to a 84 vendor for royalty dresses failed to provide a W-9 to the city for two years in a row. It was 85 suggested that in the future any vendor whose services or labor would be over $600 in a year be 86 required to provide the city with a W-9 prior to their services. She currently has three new 87 vendors, who provided work on the tennis court project, who have submitted billings without 88 the required W-9's on file. FD Grover suggested holding the bills until they turn in the correct 89 forms. The Council agreed. Ms. Wilker suggested, if the city did in fact make this rule, 90 contractors should not be hired until they have filed a W-9. Mayor Rasmussen asked Ms. 91 Wilker for a vendor list which can be referred to before hiring a company. River Heights City Council Meeting, 8/27/19  • Councilmember Wilson asked for the Tennis and Track payment to be held until she gets the closing the documents, which will guarantee the court is all finished. She asked for the check 94 to be printed so she can pay them as soon as she gets the documents. Ms. Wilker explained 95 they billed for the final amount and the retention. Ms. Wilson asked for both to be held. 96 • Ms. Wilker asked about the royalty scholarship requests for $100/each. Mayor Rasmussen said 97 he has an anonymous donor that has given $700 to divide among the seven royalty girls from 98 last year. After discussion, the council agreed to use the donation money to pay the girls. The 99 donation will come through the city and the scholarships will be paid by-the city. 100 101 Councilmember Clausen moved to ^^pay the bills as noted,including add-ons for the 102 Apple Days bills discussed, the Logan City bill, once the container issue is resolved, but to not 103 hold it up to the point we get a late charge. Its agreed to cut the check for Tennis and Track,to 104 be held until the closing documentation is received. Note: Treasurer Wilker has three bills not 105 on the list to be paid, which we are attempting to get W9s for.'' Councilmember Scott seconded 106 the motion, which carried with Clausen,Thatcher, Scott, Wilson and Wright in favor. No one 107 opposed. 108 109 Councilmember Thatcher 110 • Ms. Thatcher reported that Apple Days went well and thanked Recorder Lind for her efforts in 111 chairing the event. 112 113 Councilmember Scott • He is waiting to hear more on 800 South COG money. • He and the mayor have talked about a couple alternatives on the 400 South road project, which 116 won't cost as much. Councilmember Clausen asked ifthey had considered scratching up the 117 road surface and putting a new asphalt coating over it. Mr. Scott said they have just started 118 talking about this. They are concerned about turning it into a speedway and having it cost a lot. 119 • Mayor Rasmussen asked if the council has received any input from residents concerning roads. 120 Councilmember Wright said he's heard complaints about 400 South. The mayor agreed it 121 needs to be resurfaced in one way or another. 122 • Mayor Rasmussen said the county wants to give all their roads to the cities where they are 123 located. They believe their responsibility ends at the asphalt and that the sidewalk, curb and 124 gutters belong to the city. They claim they didn't install them, therefore they don't maintain 125 them. Attomey Jenkins has agreed. Mayor Rasmussen pointed out there are a lot of bad -126 sidewalks on 600 East, which the city needs to be aware of. 127 128 Councilmember Clausen 129 • He discussed the upcoming storytime, to be held at the River Heights City Building. 130 Councilmember Thatcher will contact the librarian and ask her to get in touch with Recorder 131 Lind. It will start September 9. Recorder Lind will advertise on Facebook,the website and 132 Instagram. 133 134 Councilmember Wilson 135 • She has looked at Smithfield's gaga pit, which is placed under the trees where the grass doesn't '"' grow anyway. This is where she would like to place the forthcoming pit in the River Heights park. She will look at some options which are in the shade, which she feels is important. River Heights City Council Meeting, 8/27/19 138 • She was interested in the proposed changes to the city code, which has been advertised. After 139 the meeting, she will be shown how to look it up on the city's website. 140 141 Councilmember Wright didn't have anything. 142 143 Recorder Lind didn't have anything. 144 • Councilmember Thatcher stated the Apple Days food vendors made good money. 145 Councilmember Clausen asked how the city could get sales tax from their profits. Jim Brackner 146 explained, the city in which the business has their license is the city which receives sales tax 147 revenue. Ms. Thatcher will find out ifthere is a way River Heights can get in on it. Heather 148 Lehnig informed, when she had been a vendor, she filled out a paper fi-om the tax commission, 149 for this reason. Councilmember Thatcher asked for a list of vendors from Recorder Lind. 150 151 Mayor Rasmussen 152 • He reported on the 1000 East fence situation: Attorney Jenkins has recommended that Tyson 153 Glover go to his neighbors to see if they will sign a petition to get the final plat revised (in a 154 way that would allow 6 foot fences). If they sign, the council will consider changing the plat. 155 If they don't sign the petition, the city will go after those property owners who have gone ahead 156 and installed a 6 foot fence. Mayor Rasmussen clarified that his decision to break the council's 157 tie at the last meeting, in regards to the new fence code changes, had nothing to do with the 158 1000 East situation. However, after measuring, it tums out that the fences currently installed 159 on 1000 East would meet the new code. 160 161 Public Comment: Jim Brackner stated he thought Apple Days was the best attended and best 162 organized the city has ever had. 163 Lions Club Pavilion Proposal: Jim Brackner said the Lions Club members have agreed to 164 repair the rotted-out part of the pavilion roof, located on the northwest comer of the overhang. They 165 would like a statement firom the city of what they would want. It was brought up that PWD Nelson has 166 suggested a steep roof. Mr. Brackner said the Lions don't plan to peak the roof, but will repair the 167 existing flat one. He guessed their repair job would last about 20 years. Mayor Rasmussen informed 168 that the pavilion firepit is also deteriorating and needs to be fixed. Councilmember Wilson requested it 169 be fixed, rather than tom down. 170 Councilmember Clausen moved to "allow the Lions Club to repair the pavilion roof." 171 Councilmember Wilson seconded the motion, which carried with Clausen, Scott, Thatcher, 172 Wilspn and Wright in favor. No one opposed. 173 Mayor Rasmussen asked Mr. Brackner to keep the council informed as to what they are going 174 to do. Mr. Brackner will report once they have a plan. 175 Councilmember Wilson asked Mr. Brackner to ask the Lions Club members if they would 176 consider fixing the fireplace. 177 Discuss Old Church Property r443 S 500 El: Mayor Rasmussen has talked to Attomey Jenkins, 178 who felt the lease option(which the council discussed a month ago) was viable, but wasn't certain it 179 would go through in the manner they think it would. If the council approves to specify that the city 180 keeps ownership, then they become liable partners with the buyer. Attomey Jenkins cautioned they 181 may mn into other snags down the road. However,from a legal standpoint, it is allowed. 182 Tony Johnson said he has a property up the canyon where is owns the buildings but the Forest 183 Service owns the ground. River Heights City Council Meeting, 8/27/19  Mayor Rasmussen said Attorney Jenkins wasn't sure the city would need to be a tax credit equity partner. Mr. Johnson assured the city wouldn't need to. Mr. Rasmussen said the city would be 186 a supportive partner and have the first lien. 187 Discussion was had on a lease payment. Mr. Johnson said it is usually paid annually and 188 agreed it is usually minimal since the risk stays with tenant/building owner. Councilmember Clausen 189 asked if the amount of the lease would affect the offer price. Mr. Johnson said it would depend on the 190 extent of the lease, as well as the cost since they would be investing a lot into the building. 191 Councilmember Thatcher asked Mr. Johnson if he would keep ownership ofthe building and 192 rent it out, or would he sell it as condos. Mr. Johnson stated he would rent, not sell, because of the 193 ground lease. 194 Mayor Rasmussen stated, if Mr. Johnson gets upside-down financially and decides to walk 195 away from the project, in a lease situation, the city would end up with the property and the building. If 196 Mr. Johnson owns the property, the city would no longer have a liability to take it back. Either way 197 (lease or sell), the property would revert back to the city. The benefit to an outright sell, is the cash 198 flow to put into another project. 199 Tony Johnson said he could purchase the structure and have a ground lease. In this case the 200 city would receive compensation at both levels and keep control. They would get cash flow from the 201 building and an ongoing lease amount. 202 Councilmember Clausen asked if the city would need to put the building out for bid, if they 203 decided to go with the land lease option. Councilmember Wright guessed in the affirmative. 204 Mayor Rasmussen recommended the council ratify their decision to declare the property as 205 surplus. Then work out agreements with the attorney to decide what the city wants for'the property and what would be in the lease agreement. As they move in that direction, if they decide not to sell the property, they can abandon their surplus decision. Ifthey move forward with selling the building and 208 not the ground, then the declaration for surplus would be in place. 209 CouncUmember Clausen moved to "reiterate their willingness to declare the Old Church 210 property as surplus property." Councilmember Thatcher seconded the motion, which carried 211 with Clausen, Scott, Thatcher and Wright in favor. Wilson opposed. 212 Mayor Rasmussen projected they would be holding some workshops with Attorney Jenkins, as 213 they work through the details. It would be allowable to invite Tony Johnson, even though the city 214 would ultimately put the property up for sale after they make their decisions. 215 Councilmember Clausen suggested they need to find out from the attorney what kind of 216 notification they need to give the Opera Company to vacate the building. 217 The meeting adjourned at 7:50 p.m. 218 219 220 221 Sheila Lind, Recorder 222 223 Todd A. Rasmussen, Mayor River Heights City Council Meeting, 8/27/19  River Heights City Bills To Be Paid 8/27/2019 Payee Description Admin. F&Z Parks/Rec Pub. Safety Com.Aff. Roads Water Sewer Total JUNES 1 2 3 4 5 6 7 JULYS 8 Addason Gunnell Royalty Gift - Scholarship $100.00 $100.00 9 Anna Wakefield Royalty Gift - Scholarship $100.00 $100.00 10 Cori Tirey Royalty Gift - Scholarship $100.00 $100.00 11 Diane Weese Apple Days Bike Rodeo & Parade $96.99 ■ $96.99 12 Dominion Energy Gas $10.00 $9.85 $2.76 $28.95 $2.76 . $54.32 13 Foresight Land Surveying 800 South TOPO $1,110.00 • $1,110.00 14 Gabriel Rasmussen Apple Days Newsletter Delivery $130.00 $130.00 15 Gabriellc Booth Royalty Gift - Scholarship $100.00 $100.00 16 Grace Brand Royalty Gift - Scholarship $100.00 $100.00 17 James Brackner Apple Days Expenses $504.12 $504.12 18 Kendrick Electric Pole Repair and Photo Cell $1,088.00 , $1,088.00 19 Logan City Water Consumption $1,157.71 $1.157.71' 20 Page Longburst Royalty Gift - Scholarship $100.00 $100.00 21 Peggy Smith Apple Days Band Member Gift Cards $105.00 $105.00 22 Roto Rooter Soccer Porta Potty $100.00 $ioo:oo 23 Ryan Pierce V\0l4' Tennis Court Curbing $1,592.50 . $1,592.50 24 Tennis and Track Co. ^\0 Final Pay & Retention Release Tennis Ct. $25,377.00 $25,377.00 25 Thomas Petroleum Fuel for City Vehicles $19.80 $19;79 $19.79 $19.79 $79.17 26 Tylee Gunnell Royalty GiR - Scholarship $100.00 $100.00 27 Utah Local Government Trust Monthly Premium Workers Comp S20.53 $31.52 $96.24 $121.91 $128.32 $398.52 28 a •>-T* 29 30 111.in. 31 32 33 34 35 36 37 ^11 38 39 40 41 42 43 44 W 4o?>lkq doaiivuKh, 45 46 •Page 1 SubTotais S30:53 $28,218.67 :$I,536ill $1,228.79 $1^328.36 $150.87 $32,493335 «' •. r ' * j Page 1 Total Amount to be F^di._ $32,49333, River Heights City Financial Summary August 27,2019 Cash Balance Bv Fund 06/30/19 07/31/19 Net Change % of Total General Fund 310,904.46 240,068.82 (70,835.64) 14.60% Capital Projects Fund (92,049,68) (94,695.89) (2,646.21) -5.76% Water Fund 614,782.70 630,553.83 15,771.13 38.34% Sewer Fund 860,776.13 868,915.61 8,139.48 52.83% Total Cash Balance 1,694,413.61 1,644,842.37 (49,571.24) 100.00% %0f %0f Unexpended Budget Time YTD Actual Annual Budget Budget Incurred Incurred \ General Fund 1 Revenue 51,349.82 809,270.00 757,920.18 6.35% 8.49% Expenditures Administrative 8,608.33 164,060.00 155,451.67 5.25% 8.49% Office 1,225.24 19,570.00 18,344.76 6.26% 8.49% Community Affairs 531.17 20,750.00 20,218.83 2.56% 8.49% Planning & Zoning 39.87 7,270.00 7,230.13 0.55% 8.49% Public Safety 2,119.98 86,400.00 84,280.02 2.45% 8.49% Roads 7,708.19 114,200.00 106,491.81 6.75% 8.49% Parks & Recreation 5,978.56 90,550.00 84,571.44 6.60% 8.49% Sanitation 14,483.55 150,000.00 135,516.45 9.66% 8.49% Transfer To CP Fund - 220,000.00 220,000.00 0.00% Total Expenditures 40,694.89 872,800.00 832,105.11 4.66% 8.49% Net Revenue Over Expenditures 10,654.93 (63,530.00) (74,184.93) 1 Capital Projects Fund Revenue 152.07 3,000.00 2,847.93 8.49% Reimbursement Income 234,000.00 234,000.00 Transfer From General Fund 240,000.00 240,000.00 Expenditures Administrative . - 8.49% Parks & Recreation 2,674.50 85,400.00 82,725.50 8.49% Roads 123.48 570,000.00 569,876.52 8.49% - - - 8.49% Total Expenditures 2,797.98 655,400.00 652,602.02 8.49% Net Revenue Over Expenditures (2,645.91) (178,400.00) (175,754.09) 1 1 Water.Fund- . ^ Revenue 45,937.45 361,350.00 315,412.55 12.71% 8.49% Expenditures 11,957.79 544,200.00 532,242.21 2.20% 8.49% Net Revenue Over Expenditures 33,979.66 (182,850.00) (216,829.66) Sewer Fund Revenue 28,701.42 312,800.00 284,098.58 9.18% 8.49% Expenditures 19,547.03 333,500.00 313,952.97 5.86% 8.49% Net Revenue Over Expenditures 9,154.39 (20,700.00) (29,854.39) 1 Combined - All Funds Net Revenue Over Expenditures - Combined 51,143.07 (445,480.00) (496,623.07)  Alliance Capital, LLC 255 South Main Logan, Utah 84321 (435)764-2200 August 9, 2019 Honorable Todd Rasmussen Mayor River Heights City 520 South 500 East River Heights, Utah 84321 RE: Old River Heights Ward Meetinghouse 495 East 500 South, River Heights Dear Mayor Rasmussen, As a follow-up to our conversations related to the ownership and/or financing structure related to the historic rehabilitation ofthe old church, we offer the following considerations: 1- Historic Credits: The historic credits are typically made available to the owner/entity that completes the renovation work. There are options whereby a lessee ofthe property, that completes the improvements,can be allocated the tax credits. That doesn't occur very often because such a structure creates a couple other layers of complexity. The typical historic tax credit financing structure has three(3)parties: a)the building owner(ususally an LLC); b)the tax credit equity partner (typically a bank) and c)the lender (typically a bank). Let's assume we have a $1,000,000 budget(just a number I picked for illustration purposes) to complete the purchase and rehabilitation ofthe building. A very vanilla financing structure would be that the bank lends $650,000, b) we fund $210,000 and the tax credit equity partner funds $160,000. In order to take assignment ofthe historic tax credits,the tax credit equity partner is admitted into and becomes a co-member with us m the ownership entity. They remain as a co-member for 1.5 years. 2. Construction Loan: The bank making the construction loan must be receptive to the use ofthe historic tax credit ownership entity described above (ftiere are several banks that work with us in these projects). In addition,the bank will need to take a T* priority security interest in the building .... to secure their loan. 3. River Heights City: We understand and are supportive ofRiver Heights City's desire to maintain ownership and/or control the property. As outlined above,1 think it would be troublesome for the City to own the building and lease it to the party that Honorable Mayor Rasraussen Page 2 August 9,2019 completes tlie rehabilitation. In so doing, the City would be a party to the construction loan and would have to agree to allow the Bank(lender) to secure the loan. In such a case, the City would likely need to show the loan as a liability on its books. This may impact bonding and/or other financial covenants. Most concerning might be the potential for liability that is attributable to the ownership and management ofreal estate. 4. Proposal: The City sells the property(for appraised value) and requires that the building be rehabilitated to National Park Service Historic Standards. The potential use ofthe building is memorialized/controlled in a recorded agreement between the City and the buyer. Perhaps the Historic Overlay Zone can be utilized with this project. The City maintains control ofthe property through an agreement(Historic Overlay Zone and/or a conditional deed) with the buyer such that ifthe building is ever not utilized for the intended/approved purpose or ifthe building is ever torn down or is destroyed for any reason, the property reverts to the City. This requirement can be similar to that existing between Ihe Cache County School District and River Heights City. Effectively the City sells the property only for the purpose ofthe rehabilitation and the maintaining of the historic structure. If the building ever goes away,for any reason, the property reverts to the City for the appraised value existing at such time. I hope this information proves helpfiil... and was not too confusing. There are several moving parts to the historic tax credit rehabilitation process. I am willing to meet with the council to discuss and our answer questions re the foregoing. We are still committed to working with the City to see that the Old Church building is rehabilitated to its former glory!!! I can be reached at(435)764-2200. Sine Johnscm TRJ/ms