FILLMORE CITY COUNCIL MEETING April 18, 2017

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1 FILLMORE CITY COUNCIL MEETING April 18, 2017 Minutes of the regular meeting of the Fillmore City Council held April 18, 2017 in the Council Chambers of the Fillmore City Building. Notice of the time and place of the meeting was posted on the Utah State Public Notice website, the Fillmore City website, the Council Chambers, the City Office bulletin board, and the President Millard Fillmore Library. Notice was also provided to the Chronicle- Progress, radio station KMTI and each member of the governing body on April 14, Those present were: Mayor: Eugene R. Larsen Council: Michael D. Holt Attorney: Greg Greathouse Ian E. Adams Recorder: Kevin Orton Eric R. Jenson Jeffrey D. Mitchell Michael K. Rhinehart Others: Janelle Brandt, Deborah Oeppinger, Kami Dearden, Robert Worley, David Smedley, Alishia Gaskins, Marjorie Fullmer, and Scott Lichfield 6:30 p.m. Welcome and Pledge of Allegiance - Mayor Larsen ADMINISTRATIVE BUSINESS Minutes MOTION: To approve the minutes of the meeting held April 4, 2017 as amended. By: Councilmember Rhinehart Second: Councilmember Adams Bills Payroll MOTION: To approve the April 15, 2017 payroll and payment of bills listed on the invoice register dated April 5, 2017 April 18, By: Councilmember Mitchell Second: Councilmember Jenson MOTION: To approve Purchase Order # payable to Sunrise Engineering in the amount of $4, for Fillmore Cemetery expansion Phase 1 administration and survey fees. By: Councilmember Rhinehart Second: Councilmember Adams

2 MOTION: To approve Purchase Order # payable to Sunrise Engineering in the amount of $21, for Fillmore Airport improvement design, survey, and geotech services. By: Councilmember Mitchell Second: Councilmember Jenson Licenses - Permits Building Permit for Maverick at 965 South Highway 99 for new gasoline pumps and canopy. Building Permit for Tony Dearden at 55 South 100 East for home alteration Building Permit for TDFI at 735 South Airway Drive for utility/equipment shed Building Permit for Robert Davies at 150 East 100 North for a new home COMMUNICATIONS AND REQUESTS Paradise Resorts Management Scott Lichfield, Marge Fullmer Scott Lichfield is the Assistant General Manager of the Best Western Paradise Inn and Resort. Marge Fullmer is the resort s General Manager. They are concerned about a potential new hotel in Fillmore. Mr. Lichfield and Mrs. Fullmer say that a new hotel will harm their business. They shared their occupancy numbers over the past several years, and say that because their occupancy rates are as low as they are, a new resort may cut occupancy rates even further for all other Fillmore motels. If occupancy rates decrease further, they may not be able to make their payments. They ask that the Fillmore City council not offer any incentives to the new hotel that is looking to build a new motel near the south exit of Interstate 15. Mayor Larsen stated that the new hotel company looking to build in Fillmore approached Fillmore City and is asking them for incentives. Fillmore City did not seek them out nor seek to offer incentives initially. The resort company looking to build in Fillmore is conducting their own feasibility study to determine whether they want to build a new unit here. Deer Removal in Fillmore David Smedley, Division of Natural Resources David Smedley of the Division of Natural Resources (DNR) addressed the growing deer population problem in Fillmore. This has been a problem in the past and the DNR removed a majority of the deer last year (2016). The DNR can start to remove deer from Fillmore beginning the first week of May and they need permission from the city council to do so. The council authorized Mr. Smedley to remove twenty (20) deer. The city recorder will issue a letter of authorization to Mr. Smedley.

3 BUSINESS Resolution Amendment to Fillmore Personnel Policy to Define Eligibility for Tier 2 Elected and Appointed Officials MOTION: To adopt Resolution amending the Fillmore Personnel Policy to define eligibility for Tier 2 elected and appointed officials, with the date correction to July 1, 2011 in the resolution document. By: Councilmember Rhinehart Second: Councilmember Holt Roll Call Vote: Councilmember Rhinehart - Yes Councilmember Mitchell Yes Councilmember Jenson Yes Councilmember Adams Yes Councilmember Holt - Yes Motion carried. Resolution to Amend Renewable Energy Policy Resolution should be amended to read that Fillmore City will bill renewable customers for their power at the normal city rate, then purchase their power and issue them a refund check when the amount of the credit from the power buy-back reaches $ This is necessary to continue with an efficient and less time-consuming billing process for city office personnel. This process will do away with an outstanding credit due to the renewable customer because the city will periodically be paying the credit amount to them. MOTION: To tentatively approve Resolution to include wording changes to the policy that include Fillmore City will bill renewable customers for their power at the normal city rate, then purchase their power and issue them a refund check when the amount of the credit from the power buyback reaches $ By: Councilmember Mitchell Second: Councilmember Adams Roll Call Vote: Councilmember Rhinehart - Yes Councilmember Mitchell Yes Councilmember Jenson Yes Councilmember Adams Yes Councilmember Holt - Yes Motion carried.

4 Response to Offers Made to the City From John Higgins and Bryan Stevens Regarding Easement Negotiations MOTION: To go into closed executive session to discuss purchase, exchange, or lease of real property and collective bargaining at 7:15 p.m. By: Councilmember Jenson Second: Councilmember Holt The council came out of closed executive session at 7:30 p.m. MOTION: To reject the offers from John Higgins and Bryan Stevens. By: Councilmember Adams Second: Councilmember Jenson MOTION: To offer both John Higgins and Bryan Stevens the appraised value of the easement properties along with a residential pressure pump and RPV valve (one (1) pump and valve per household) By: Councilmember Adams Second: Councilmember Holt COUNCIL REPORTS Councilmember Holt Fire Department A water line was severed on 200 West while Water Users Association was digging in that area. Today when Water Users Association returned to dig for repairs to the line, the main gas line broke because the digging area had not been re-staked. Questar was immediately on site to cap it off. The Fire Department also arrived to block the street. In both cases the breaks occurred from not being marked off correctly. Councilmember Holt will obtain a check from both the Fire District and Millard County for their contributions toward the Fillmore City Airport apron improvement project. Dogs There was one dog in the shelter this week. Councilmember Adams Streets Councilmember Adams has received phone calls from citizens requesting more time to be able to move their unregistered vehicles and trailers out of the city right-of-way. Next week a list of citizens not in compliance will be submitted for citations to be issued. Celebrations It will be proposed in the May 2, 2017 city council meeting to have Robert Reidhead serve on the Celebrations Committee.

5 CERT The CERT committee will hold a tabletop exercise on April 20, 2017 for earthquake preparedness training. Mayor Larsen and Recorder Orton will attend. Councilmember Rhinehart Cemetery In the plans for the cemetery roundabout, the flagpoles are too close to each other to fly 3 by 5 foot flags. There are two options; 1) use smaller, 2 by 3 foot flags or; 2) have the holes moved. The council prefers to have the holes moved to accommodate the larger flags. Councilmember Mitchell Parks Councilmember Mitchell has received complaints that the water temperature in the splash pad is very cold. The splash pad was designed to have a water heater installed at a later date if that is what the city council wants. Councilmember Mitchell will look into feasibility and price to have a water heater installed. Garbage Millard County has advertised for the vacant landfill attendant for two weeks. They have not been able to fill that position. The council discussed the option of increasing the pay rate for that position to potentially attract more qualified applicants. The council will further discuss in future council meetings. Councilmember Jenson Water Surveyors are doing staking work in preparation for construction on the Center Street flooding project. Millard County will be doing in-kind excavation and digging work that will require the use of the city s dump trucks. Electric The creamery substation is under construction to repair damages from a lightning strike. Robert Worley Construction Updates Construction on the culinary upgrade project will begin May 8, The bid opening for the Main Street reconstruction project will be May 9, There will be work done at night during the Main Street construction. Attorney Greathouse Intermountain Power Agency (IPA) is finalizing the surplus power sales agreement with southern California cities. Two of those cities that have not pulled out of the project, but have decided not to purchase surplus power. Mayor Larsen The bond in the amount of $2,130,000 for the culinary water system upgrade has been secured and the funds are in an escrow account with the State of Utah.

6 A lengthy discussion ensued regarding Cobblestone Hotel and the possibility of them building a new hotel in Fillmore, and the following points were made: Mayor Larsen - It is difficult to attract businesses to Fillmore if incentives are not offered. It is becoming more common for cities to attract business by offering incentives. Councilmember Holt - In speaking with the Millard School District, some sporting events are not being held in Fillmore because of a lack of hotel room availability. They schedule many events elsewhere for that reason. Councilmember Adams Department of Workforce Services advertises three job openings on average from the local office for Fillmore businesses. In order to stay competitive the city needs to encourage more businesses to locate to Fillmore through incentives. Councilmember Rhinehart The Maverick expansion helped other gas stations in Fillmore. When there is a choice more people will stay in Fillmore because they have more businesses to choose from. A new motel will likewise help other motels in Fillmore. Councilmember Jenson There is an ongoing concern for occupancy rates for all motels in Fillmore. With the results of a feasibility study, building a hotel in Fillmore is a business decision for Cobblestone to make. There has been a lot of money invested in the Paradise Inn and it is now a much nicer motel than before. Councilmember Jenson will contact other cities that have had Cobblestone build a motel in their city and find out what kind of impact they have had on their city and other businesses. Councilmember Mitchell - Fillmore City has subsidized $566,000 over 17 years to Paradise for the water to the golf course. It would be difficult to not offer incentives to a new motel when Fillmore City is subsidizing a good amount of money to another similar business. Cobblestone carries their own clientele and their niche is operating hotels in smaller rural cities and towns. In the western United States, they do not have any hotels in large cities. The city council is supportive of all businesses; both existing and those who wish to come to Fillmore as new businesses. They have no preference or bias. They do; however, want to see more businesses locating to Fillmore. Other businesses considering locating to Fillmore may look to see what other businesses are doing here. If nothing is happening, they may be less inclined to come to Fillmore. Businesses attract other businesses. The council came to a consensus to instruct Recorder Orton to continue drafting a letter of intent to Cobblestone Hotels and deliver it to them when complete. Utah Associated Municipal Power Systems (UAMPS) refunds money to the city most years. UAMPS estimates high on expenses for projects that Fillmore City is involved with. As the costs to the city generally are lower than estimated, the city is refunded that amount, and those monies go into a retention fund at UAMPS. Mayor Larsen will recall a portion of those funds this fiscal year to purchase the new power line coming into the area that Fillmore City will have half ownership of. This will save money in the long run because it will eliminate expensive wheeling charges. The line needs to be purchased before costs increase or the offer to purchase no longer is an option.

7 ADJOURNMENT Upon motion by Councilmember Rhinehart and second by Councilmember Holt, the meeting adjourned at 8.21 p.m. The next regular council meeting will be held May 2, 2017 at 6:30 p.m. APPROVED May 2, 2017 Eugene R. Larsen, Mayor

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