FINAL MINUTES

VIRGIN TOWN COUNCIL MEETING

WEDNESDAY, September 25, 2013

Work Session at 6:30 pm Regular Meeting at 7:00 pm

Virgin Town Office, 114 So. Mill Street, Virgin, Utah

Present:

Council Members: Mayor Pro Tem, Lee Ballard

Danyale Blackmore

Bruce Densley

Jean Krause

Others: Monica Bowcutt, Town Clerk

Curtis Ludvigson, Rural Water

Jason Smith, Town Engineer

Cindy Escude Bonnie Timmerman

Linda Collet Sean Amodt

WORK MEETING

a. Update on Kolob Road Realignment, Appraisal & Capital Facilities Plan-Jason Smith

This item was moved until after the Water Evaluation Presentation by Mr. Ludvigson.

b. Rural Water Association-Evaluation-Curtis Ludvigson

Curtis Ludvigson, from the Rural Water Association, reported that he had been asked by the Mayor to do a culinary water rate study for Virgin Town. He stated that he had reviewed one year of meter readings and the budget, then compiled the findings. This report showed that the annual water revenue was approximately $155,000 (water sales for monthly billings, did not include connection or impact fees). The expenses equaled about $30,000 a year, which included loan payments of about $8,600 a year, along with operational expenses and depreciation costs. (The budget should be funded each each year to take care of future depreciation of the water system.) Mr. Ludvigson stated that with all the financial obligations, the needed revenue should be about $203,000 verses $155,000 that the Town was currently bringing in, which means that a $50,000 increase in revenue was needed. He was also concerned that the General Fund had been subsidizing the Water Fund and that no money was being put into the Depreciation Fund. At this point, Mr. Ludvigson presented 7 scenario’s that would each bring in $203,000 a year. Scenario 1: Increase the base rates so that residents would be paying $54 a month and a commercial hook up would be paying up to $90 a month. Scenario 2: Leave the base rate at $50 and $84 a month, but increase the overage rate to $3.50 a thousand gallons. Scenario 3: Keep the base price the same, but add two more steps (or tiers) in the overage charges. Scenario 4: Leave the base rates the same, but lower the gallons per month from 15,000 to 8,000, which allows the Town to charge less in the overage. Mr. Ludvigson stated that allowing 15,000 gallons does not put very many people into the overage, because even in the summer most people are using only 10,000 gallons. Council Member Lee Ballard suggested going from 15,000 gallons to 10,000 gallons, instead of 8,000 gallons. Mr. Ludvigson replied that the funding agencies figure a typical family uses about 8,000 gallons a month. Scenario 5: The gallons remain at 8,000, but charge a little less in the base rate, but more in the overage rate tiers. He suggested that this would be better for people who use smaller amounts of water. Scenario 6 and 7: Do not give any water for their base rate (charge for being connected to the system) and then charge for the water they actually use. Mr. Ludvigson stated that many communities are going to this system and it would be the most fair all the way around, especially to those who use very little water usage, even in summer. Scenario 7: The same base rate, but charges less for the overage charges in tiers, which is favorable to those using more water.

Curtis Ludvigson stated that Virgin was operating the Water Fund in the red, but was not as bad as other communities he had seen. Council Member Lee Ballard asked how Virgin’s base fees compared to other towns. Mr. Ludvigson replied that they were very comparable, however, Virgin gives more water than most towns for that fee and the other towns have overage kicking in sooner, with more than one tier in the overages. He suggested that comparing communities does not benefit anyone because they all have their own set of problems and the bills to go with them. For example, Virgin cannot charge what Hurricane charges because it may no be enough for what Virgin needs. Mr. Ludvigson volunteered to help the Town find funding if/when a water project is needed and also to draft the resolution to increase the water rates.

Update on Kolob Road Realignment, Appraisal & Capital Facilities Plan-Jason Smith

Jason Smith reported that most of the major engineering was done, reports were being written and plans are being put together. He also reported that a large cut could be significantly reduced. This would benefit the Town because no ugly scar would be left and there would be less earth work, meaning less money would be paid out. Mr. Smith then reported that the bridge idea might have to be abandoned because of the large channel to span, making culverts the only option. He stated that the drainage looked good, with 30 feet of asphalt, a 2 foot shoulder, and barrow ditches on each side. He felt that given the steepness of the sides, this would limit debris falling onto road. He suggested that additional funds could be used to change the sides of the road to trails or a bike lane, which improvement options could be made later.

Council Member Bruce Densley asked asked about the access from the highway, which he had heard had new owners. Council Member Lee Ballard stated that Mayor John Grow had said he was getting the signatures on the deeds at the August meeting. Jason Smith stated he would follow up with Mayor Grow on the deeds and also get the plans to Town Maintenance Supervisor, Chris Holm, so he could start working on the brushing, etc. Mr. Smith then stated that he would bring the completed documents to October’s meeting and put the job out to bid the first part of November.

When asked about the appraisal, Jason Smith agreed with the Council that it was very low. He stated that he had not forwarded it to UDOT yet, because he was not sure why it was so low or if an appeal was possible. He felt that based on frontage off of SR-9, the traffic on Kolob Road, and the comps for the last appraisal in almost the same location, it should have been much higher. The Council was in agreement that this low appraisal would hurt the match and that an appeal or combining the two appraisals should be done. Jason Smith stated that he would call the appraiser to inquire. It was then mentioned that this land was not zoned Resort, and was mistakenly marked on the maps as Open Space. The piece of property being donated should be defaulted to Rural Residential Zone. Jason Smith was unaware of this mistake and stated that this could be the reason the appraisal was so low. He stated he would make sure the land was zoned properly on the appraisal.

Council Member Lee Ballard asked about the Capital Facilities Plan cost estimates. Jason Smith explained that the first option included a review of the Town’s documents, making sure they were up to current state standards and also a review of projects, removing those that had been completed and moving others up if wanted/needed. This first cost estimate did not review the impact fees, etc., but will update the five and ten year plans. Mr. Smith stated that maps would be updated, but they would not be as detailed. He suggested that the Town should request the first option and then add to it, if there is an area that needs more in depth work. Rosenberg Engineering employs a Capital Facilities Plan person who would be able to start work on Virgin Town’s Plan about the middle of October or the first of November, and it would take until January to have completed documents. The Council was in agreement that this was the best option on a Capital Facilities Plan.

REGULAR MEETING

1. Call to Order-Mayor John Grow

Mayor Pro Tem, Lee Ballard, called the Meeting to order at 7:26 pm. She excused Mayor John Grow.

2. Pledge and Opening Remarks.

Mayor Pro Tem, Lee Ballard, led the Pledge of Allegiance. No Opening Remarks were given.

3. Declaration of Conflicts of Interest.

No Conflicts of Interest were declared.

4. Declaration of Ex Parte Communications.

Council Member Bruce Densley stated that he had again been contacted by the people who wanted to put in a winery up the river. They had reported to him that an architect had looked at the land and the army corps of engineers had given approval to fix the flood area. They also told him that they had new funding and were wanting to move very soon on the project.

NEW BUSINESS

5. Discussion with possible approval of raises & benefits for Town Employees.

Council Member Lee Ballard explained that these raises had been budgeted for and talked about, and it was now time to vote on them. She stated that she had spoken to the Mayor, who had suggested that Maintenance Supervisor, Chirs Holm, be given a $1 hour raise, and Town Clerk, Moncia Bowcutt, be given an option of a $1 an hour raise or health insurance. Council Member Bruce Densley asked if this option had been discussed with Monica Bowcutt. Council Member Lee Ballard replied no, not this particular option. She then suggested that Monica did not need to decide right now, but the Council could approve it either way, giving Monica time to research which option would be best for her.

Bruce Densley moved to approve the $1 an hour raise for Chris Holm and give Monica Bowcutt an option of $1 an hour raise or health insurance, as she chooses in the near future. Danyale Blackmore seconded the motion. Vote on motion: Lee Ballard-Aye, Danyale Blackmore-Aye, Bruce Densley-Aye, and Jean Krause-Aye. The motion passed unanimously.

6. Adoption of ORDINANCE #13-092513-1: AMENDING THE VIRGIN UNIFORM LAND USE CODE OT CLARIFY THAT SHORT TERM LEASING OR RENTAL IS IN RESIDENTIAL ZONES. (This Ordinance was passed last month but was erroneously noticed as a RESOLUTION rather than an ORDINANCE)

Council Member Lee Ballard stated that this was the Ordinance that went through the whole process and then was listed on the agenda as a Resolution, rather than an Ordinance. She stated that the Council was just reconfirming their vote on an Ordinance, not a Resolution. She explained that this Ordinance was the one which clarified language in VULU. Council Member Bruce Densley stated that all the Council was doing was changing the language which was published on the agenda, Town notices, and the Town newsletter.

Sean Amodt stated that he wished to clarify the clarification, explaining that a resolution is to establish the opinion of the current legislative body, which then enables them to create administrative procedures allowing them to take action. For example, justifying the sending out of letters to land owners involved in use of short term leasing, which was done by this body. He went on to state that an ordinance is law. It cannot be made retroactive. Even thought the clarification of the law is the current Council’s intent, many of this current Council were not present when that law was written, therefore, a resolution is the only action possible for this Council to take on this subject, in this manner, at this time. He also stated that he believed that the land use laws must be passed by both parts of the Land Use Authority, which include Planning and Zoning. Mr. Amodt stated that the Planning and Zoning did not pass this as a resolution or an ordinance, but it did get put on the Council’s agenda, and then passed just by the Council itself. In his opinion, Mr. Amodt, stated that this Ordinance should be passed in order to expedite and simplify the legal challenge to this bodies actions, where then a judge may rule on the rights of property owners versus this legislative body, otherwise, it would be prudent to leave it as a resolution until a new ordinance (which is being worked on now) covers the standards for the use.

Cindy Escude asked if the Planning and Zoning had sent this to Council and then Council did not agree with it the way it was written. Council Member Lee Ballard clarified that this was always an Ordinance. It had a public hearing in front of the Planning Commission as an Ordinance and the Planning Commission had given a recommendation for it to come to Council as an Ordinance. Somehow it had been listed as a Resolution on the Council’s agenda. She went on to state that it was always an Ordinance. It went through the entire land use public process correctly, with a ten day notice for the public hearing. The Council had voted and passed it last meeting. The problem was just that the wording on the agenda was incorrect. Council Member Lee Ballard stated that they were not going into the details of the content, only talking about fixing a grammatical error.

Council Member Jean Krause added that the Council realized, after voting, that the word resolution was supposed to say ordinance. All that was being done was changing the wording on what was passed last month.

Bruce Densley moved to adopt item 6 as written. Jean Krause seconded the motion. Vote on motion: Lee Ballard-Aye, Danyale Blackmore-Nay, Bruce Densley-Aye, and Jean Krause-Aye. The motion passed.

Council Member Lee Ballard reiterated that the Planning and Zoning had recommended it as an Ordinance, the Council was just a fixing a typographical error.

7. Review with possible Adoption of ORDINANCE #13-092513-2: Amending sections 1.6, 1.12.2, 4-19 and 15-3; affecting complaint procedures and beautification/property maintenance requirements.

Council Member Lee Ballard stated that the Planning and Zoning had worked and reworked this Ordinance, with this version being very strongly supported. They had recommended it unanimously. She stated that public comment had also been very positive and it seemed to fit our Town better than what used to be there. She explained that it does a few things to the complaint policy that the Council had been talking about doing for awhile.