PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
REGULAR/BRIEFING SESSION
TUESDAY, MAY 20, 1986
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET AS A COMMITTEE OF THE WHOLE ON TUESDAY, MAY 20, 1986, AT 4:30 P.M. IN ROOM 211 CITY AND COUNTY BUILDING.
THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: FLORENCE BITTNER THOMAS M. GODFREY GRANT MABEY ROSELYN N. KIRK SYDNEY R. FONNESBECK WILLIE STOLER EARL F. HARDWICK.
Council Chairperson Hardwick presided at the meeting.
BRIEFING SESSION
#1. Carole Stokes, council executive director, briefed the Council on the evening’s agenda and reviewed the information she had put together in anticipation of the bid process for the selection of the City Council’s new Executive Director.
#2. Cheryl Cook, Lance Bateman, Preston Kearsley and LeRoy Hooton briefed the Council on the refunding and re-issuance of water and sewer bonds. This refunding of the 1983 water and sewer revenue bonds will make the completion of the 1981 water project program possible. LeRoy Hooton briefed the Council on the program to be financed through the bonding process including those projects completed with the original bonds and those to be completed with the new bonds. He stated that the construction program, as proposed, is designed to allow the city to indefinitely meet its peak supply demands for the entire city, including lines which will make the development of the Northwest Quadrant possible.
Cheryl Cook then briefed the Council on the specifics of the re-issuance including a review of the project team involved. She stated that the administration is proposing the use of the firm of Chapman and Cutler as Bond Counsel, the firm of Prudential Bache as Financial Advisor, Moore Trust, Co. as Trustee, and Goldman Sachs as underwriter. The Council agreed to the composition of the team to coordinate the refunding which will free up funds to complete the water program without increasing the debt service.
#3. The Council reviewed CDBG funding requests. In particular, they discussed proposed motions to accommodate changes to the Mayor’s recommended funding levels and legislative intents designed to guide CDAC and staff in funding 1987-88 CDBG projects.
The briefing session adjourned at 5:55 p.m.
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN REGULAR SESSION ON TUESDAY, MAY 20, 1986, AT 6:00 P.M. IN ROOM 301 CITY AND COUNTY BUILDING.
THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: FLORENCE BITTNER THOMAS M. GODFREY GRANT MABEY ROSELYN N. KIRK SYDNEY R. FONNESBECK WILLIE STOLER EARL F. HARDWICK.
Mayor Palmer DePaulis, Roger Cutler, city attorney, S. R. Kivett and and Margaret Mitchell, deputy recorders, were present.
Council Chairperson Hardwick presided at and Councilmember Mabey conducted the meeting.
The invocation was given by Police Chaplain Michael Denos.
Pledge of Allegiance.
Approval of Minutes.
Councilmember Godfrey moved and Councilmember Kirk seconded to approve the minutes of the Salt Lake City Council for the regular meeting held Tuesday, May 13, 1986, which motion carried, all members voting aye.
(M 86-1)
Specia1 Recognition
#1. Councilmember Mabey recognized Boy Scout Troop #906 which was present in the audience.
Special Presentation
#1. The Council, Mayor and Salt Lake City Arts Council presented the portrait of Former Mayor Ted L. Wilson by artist Randall Lake. Councilmember Hardwick said that Ted Wilson served as mayor for ten years and was a good friend and an excellent administrator for Salt Lake City. Ted Wilson thanked the Council and the Mayor. He said that the sittings were a wonderful experience and he learned a great deal about art. He said that the Arts Council and Art Design Board Selection Committee did a terrific job. Randall Lake said that he was grateful and proud to have been selected.
#2. The Council and Mayor presented LeRoy Hooton and the Public Utilities Department with the Outstanding Achievement Award for Region Eight from the Environmental Protection Agency. Mayor DePaulis said the award was for superior leadership and creativity in achieving compliance with clean water laws with maximum efficiency and minimum expense. He said that the EPA felt SLC’s public input process to be one of the most outstanding in the country.
Mayor DePaulis said the EPA would present the City with another award this fall. LeRoy Hooton said the award represented the City’s wastewater program and its success. He said in 1984 it was overload and there were no future growth plans. Today this situation had been reversed with this program, citizen input, the Public Utilities Advisory Committee, support of Former Mayor Wilson, Mayor DePaulis and the Council. He said because of this, a program had been implemented to meet all the goals of the clean water act and there was a clear view of the future. He said that construction would be complete in 1988 and then the plan would continue through 2005 to guarantee that the City would meet all the requirements of the clean water act. Councilmember Bittner said that Mr. Hooton and his department were very cooperative and open in encouraging citizen input.
#3. The Council and Mayor presented the Great Salt Lake Country’s “Tourism Ambassador of the Month” award for May to Robert G. Rasmussen. Mayor Depaulis said that the City had been actively involved in the effort to bring increased tourism to the state. National Tourism Week was May 18, through May 24, 1986. Bob Rasmussen was the first recipient of this award which recognized employees in the service industry who had provided outstanding assistance to tourists. He said Mr. Rasmussen was the banquet service person at the downtown Holiday Inn and was selected because of his exceptional commitment and hospitality towards guests. The general manager of the Holiday Inn, Burr Miller, sent a telegram complimenting Mr. Rasmussen’s congeniality. Mr. Rasmussen thanked the Council and the Holiday Inn staff.
(C 86-22)
PETITIONS
Petition 400-134 of 1983 submitted by Little America.
RE: An ordinance closing Carson Street commencing at 400 South and 146 feet West of Main Street.
ACTION: Councilmember Stoler moved and Councilmember Kirk seconded to adopt Ordinance 42 of 1986, closing Carson Street commencing at 400 South and 145 feet West of Main Street, which motion carried, all members voting aye.
(P 84-11)
DEPARTMENTAL BUSINESS
FINANCE DEPARTMENT
#1. RE: Fiscal Year 85/86 budget amendment.
ACTION: Councilmember Godfrey moved and Councilmember Bittner seconded to set a public hearing date for Tuesday, June 10, 1986, at 7:00 p.m. to discuss the FY 1985/86 budget amendment, which motion carried, all members voting aye.
(B 85-8)
#2. RE: A resolution authorizing the issuance and sale of tax and revenue anticipation notes for cash flow deficits in FY 1986/87.
ACTION: Councilmember Hardwick moved and Councilmember Kirk seconded to adopt Resolution 58 of 1986, authorizing the issuance and sale of $29,500,000.00 tax and revenue anticipation notes, which motion carried, all members voting aye.
DISCUSSION: Cheryl Cook, city treasurer, addressed the Council and recommended adoption of the resolution authorizing the issuance of the tax notes.
(Q 86-11)
HOUSING AUTHORITY
#1. RE: Application for Housing Development Grant for Housing Authority of Salt Lake City and Housing Development Corp. of Salt Lake City to construct housing for the elderly.
ACTION: Councilmember Godfrey moved and Councilmember Bittner seconded to set a public hearing date for Tuesday, June 10, 1986, at 7:10 p.m. to discuss this grant application, which motion carried, all members voting aye.
(C 85-564)
OFFICE OF THE MAYOR
#1. RE: Fiscal year 1986/87 budget for the Salt Lake City Public Library.
ACTION: Councilmember Bittner moved and Councilmember Godfrey seconded to accept for display the FY 1986/87 budget for the Salt Lake City Public Library, and to set a public hearing date for Tuesday, June 3, 1986, at 6:45 p.m. to discuss the budget, which motion carried, all members voting aye.
(B 86-9)
#2. RE: The appointment of John Gisler to the Civil Service Commission.
ACTION: Councilmember Godfrey moved and Councilmember Kirk seconded to approve the appointment of John Gisler to the Civil Service Commission, which motion carried, all members voting aye.
(I 86-9)
#3. RE: A resolution specifying allocation of 12th Year CDBG funds.
ACTION: Councilmember Godfrey moved and Councilmember Kirk seconded to approve the 12th Year Community Development Block Grant funding as recommended by Mayor DePaulis for all programs with the exception of Neighborhood Housing Services Revolving Loan Fund, NHS Administration, Euclid Street Improvements, Utahns Against Hunger, Westside Emergency Food Pantry, KRCL FM Radio, Crime Prevention and Guadalupe Center, which motion carried, all members voting aye
Councilmember Godfrey moved and Councilmember Kirk seconded to reduce the NHS Administration program by $28,000.00 and Increase the NHS Revolving Loan Fund by $28,000.00, in keeping with the Council’s legislative intent adopted with 11th Year CDBG, which motion carried, all members voting aye, except Councilmembers Bittner, Mabey and Stoler who voted nay.
Councilmember Godfrey moved and Councilmember Hardwick seconded to approve the funding for Euclid area streets in the amount of $376,000.00, but freeze the funds until the rezoning of Euclid Avenue between 9th and 11th West to a residential classification is completed, which motion carried, all members voting aye.
Councilmember Kirk moved and Councilmember Godfrey seconded to eliminate funding for Utahns Against Hunger and increase funding for the Westside Food Bank by $7,000.00 for a total of $21,700.00, which motion carried, all members voting aye except Councilmember Fonnesbeck who voted nay.
Councilmember Fonnesbeck moved and Councilmember Hardwick seconded to appropriate $5,700.00 from CDBG contingency to support KRCL FM Radio with the understanding that no further CDBG support be expected in future years, which motion failed, Councilmembers Fonnesbeck and Hardwick voting aye, Councilmembers Bittner, Mabey, Godfrey, Kirk and Stoler voting nay.
Councilmember Godfrey moved and Councilmember Kirk seconded to reduce funding for Crime Prevention from $109,500.00 to $76,000.00, to fund a civilian component to the crime prevention program administered by the police department, which motion carried, all members voting aye.
Councilmember Godfrey moved and Councilmember Kirk seconded to transfer $33,500.00 from Crime Prevention program to CDBG contingency funds, which funds shall be made available to either ASSIST, the Redevelopment Agency or Neighborhood Housing Services and the administration shall submit a recommendation to the Council for which program should receive funding to provide for a lock and security door program, which motion carried, all members voting aye.
Councilmember Hardwick moved and Councilmember Godfrey seconded to fund the Guadalupe Center contingent upon the execution of a ten year lease or at least a five year lease with a five year option with the Catholic Diocese, which motion carried, all members voting aye.
Councilmember Godfrey moved and Councilmember Hardwick seconded to appropriate $230,055.00 to the 12th Year Community Development Block Grant Contingency Fund for a total 12th year entitlement of $3,189,000.00 (entitlement has been verified by the Housing and Urban Development), which motion carried, all members voting aye.
Councilmember Kirk moved and Councilmember Godfrey seconded to approve the following legislative intent regarding Neighborhood Housing Services: “It is the intent of the City Council that future allocations be for the revolving loan fund only and not for administration”, which motion carried, all members voting aye.
Councilmember Kirk moved and Councilmember Godfrey seconded to approve the following legislative intent regarding El Centro Civico: “It is the intent of the City Council that no more CDBG funds be allocated to El Centro Civico until funds are raised to match money allocated in 10th Year. It is further the intent of the City Council that if matching funds are not secured before October 15, 1986, the $150,000.00 allocated in the 10th Year CDBG funding be returned to the CDBG General Fund for reallocation to other projects”, which motion carried, all members voting aye.
Councilmember Kirk moved and Councilmember Bittner seconded to approve the following legislative intent regarding Planning Related Projects: “It is the intent of the City Council that consideration be given to planning and/or design projects only if the administration intends to fund the construction and/or implementation stage of the project with alternative revenues if CDBG funds are discontinued.”, which motion carried, all members voting aye except Councilmembers Fonnesbeck and Hardwick who voted nay.
Councilmember Kirk moved and Councilmember Godfrey seconded to approve the following legislative intent regarding 30% Cuts: “It is the intent of the City Council that it be made clear to CDBG recipients that the Fiscal Year 1986-87 CDBG funds and administrative budgets will not be increased if additional funding becomes available, which motion carried, all members voting aye.
Councilmember Kirk moved and Councilmember Hardwick seconded to approve the following legislative intent regarding Alternative Funding Sources: “It is the intent of the City Council that the administration continue to investigate alternative funding sources for the programs currently funded, in anticipation of the loss of CDBG monies in the future.”, which motion carried, all members voting aye.
DISCUSSION: Arlo Nelson, capitol planning and programming, addressed the Council concerning block grants and other grant programs. He said that the national administration and senate budget committees had proposed that in 1987 the block grants, UDAG and HOG type grants be cut by 10%. This would mean that since we would get $3,189,000 this year, next year we would get a little under $3 million. He said this was not good news, however, it was not the 30% cut we were experiencing this year.
It was also being proposed that the block grant, and possibly the others, would be continued another three years with discussion of five years. The indications at this time were that the situation would not be as severe as the total discontinuance of the programs. Councilmember Bittner said that the Council had suggested a ten year lease for the Guadalupe Center and requested explanation for a five year lease offer. Mr. Nelson said that the church offered five with no explanation, however, he didn’t see a problem with resubmitting the lease with a request for eight to ten years. Councilmember Mabey said that the Council asked for a ten year lease or a five year lease with a five year option, and the funding should be made contingent upon one of these.
(T 86-9)
PUBLIC WORKS
#1. RE: Bid opening for SID #38-800, 200 South Beautification, 300 West to 400 West.
ACTION: Councilmember Godfrey moved and Councilmember Hardwick seconded to refer the bids to the city engineer for tabulation, which motion carried, all members voting aye.
DISCUSSION: Bids were received from D. Thomas Flynn Construction, Gibbons & Reed Construction, McCullough Construction Company, Rapp Construction and Western Quality Concrete.
(Q 86-4)
#2. RE: Bid opening for SID #40-R-10, defective concrete replacement.
ACTION: This item was pulled - scheduled for June 3, 1986.
(Q 86-3)
PUBLIC HEARINGS
FY 1986-87 Budget
RE: A public hearing was held at 7:00 p.m. to obtain public comment concerning the Mayor’s recommended budget for Fiscal Year 1986-87.
ACTION: Councilmember Godfrey moved and Councilmember Hardwick seconded to close the public hearing, which motion carried, all members voting aye.
DISCUSSION: Jack Olson, Utah Tax Payer’s Association, said that they appreciate the City’s position and the problems this year. He said it seems to be a principal of almost shared sacrifices with cuts in personnel, no cost of living increases for employees and various increases for citizens. He said with the property tax increase, the garbage collection fee, the building fees and permits, and the additional franchise tax on water and sewer services the total tax increase this year will be $4,550,000.00 or about $80.00 per year for the average homeowner. He said this is in addition to a property tax increase of 1.31 mills made last year. There are additional problems for taxpayers, because the Salt Lake City School budget proposes a 2.25 mill increase, and the County may add to these increases. These increases will create problems to a number of people in this community. Mr. Olsen asked why the water and sewer rates were not increased rather than impose the 6% franchise tax. Councilmember Mabey explained that this is an enterprise fund and in order to get the money into the general fund, the City has to apply the franchise.
Mr. Olsen said all of the tax increases are due to the loss of federal revenue sharing and intergovernmental Income. He said the City is proposing to assist the Salt Palace with $100,000.00 and also add $500,000.00 to City surplus. The Taxpayers Association strongly opposes this and feels it is unwise fiscal policy to increase taxes by 1/2 million dollars to add to the City surplus. He said the Tax Payers Association is also opposed to $100,000.00 to assist the Salt Palace, and said the ticket fees should be increased to pay the rent. He said there is 1.6 million dollars of one time revenue windfalls and asked if this means an automatic tax increase next year to make up these one time revenues.
Mayor DePaulis said the fund balance is not a surplus, it is for emergency. To be fiscally sound and to maintain the City’s triple A bond rating, this fund balance should be 5%, therefor, the request for the $500,000.00 appropriation. Mayor DePaulis said that to maintain the triple A rating means a tax savings to the citizens, and more importantly to do a responsible budget there must be some reserve funds and 5% is not unreasonable.
Mayor DePaulis said that in each budget there is usually some one time money. He said that essentially what has been done is surplus funds have been cleaned out since he felt we should bite the bullet and get the federal money out of the general fund. Mayor DePaulis said that because of the structure of the budget he felt that the city could absorb a million dollars of one time money. Mr. Olsen said that he would rather see user fees rather than a property tax increase. He said the main problem is that expenditures are rising faster than available revenues, and somehow these need to be brought together and increased at the same rate.
Mayor DePaulis said that there are $3 million In cuts in the budget this year and a great price is asked of employees, taxpayers and departments. He said that the general principal was to impact areas attached to fees rather than general tax increases. He said that he would like to plan ahead 3 to 5 years to plan input on revenues vs. expenditures, so that we can spend what is really budgeted to spend.
Byron F. Christianson, 2257 Kensington Avenue, said that prior to federal revenue sharing, the City got along alright and he suggested that the Council look back at what was done with the revenue dollars. He said that perhaps we can do without services or programs that the revenue funds have been used for. Mr. Christianson seconded the comments of Mr. Olsen. He said that he, as a citizen has asked for no more services than police, fire, streets, garbage collection, water and sewer. Mayor DePaulls said that up until 1980, revenue sharing was spent on capital improvements, however, since that time the funds have gone to police, fire and public works. Kimball Duffin, Salt Lake Arts Council, reported on the Arts Council budget relating to the National Endowment for the Arts (NEA) grants request. He said the Arts Council recognizes the City’s position and said they are disappointed in terms of the amount of money available that could come as new money which would directly match the NEA grant received last year. He said, on the other hand, they are pleased to report that through creative negotiations with Capitol Planning and with the $50,000.00 appropriated last year, that the first year match has been met.
He said they feel this is a big success in light of the current budget situation. He said the $214,000.00 recommended this year is certainly not enough for the Arts Council to be able to match the funds and be able to continue providing the present level of services. He said that perhaps they will receive $32,000.00 from NEA to use with the $214,000.00 and they are trying to find other sources and mechanisms which would be satisfactory to NEA as matching funds. He said they will continue to work with various City departments and will meet with NEA in June.
Mayor DePaulls said that the theory was to try and capture any match possible, particularly in terms of the City and County Building. He said he had to make a difficult decision and said that the commitment is certainly there. Mr. Duffin said that they appreciate the City’s support.
(B 86-8)
Compensation Plan
RE: A public hearing was held at 7:15 p.m. to obtain public comment concerning an ordinance amending Section 25-1-1 relating to compensation of city officers and employees, including statutory officers.
ACTION: Councilmember Fonnesbeck moved and Councilmember Godfrey seconded to close the public hearing, which motion carried, all members voting aye.
DISCUSSION: No one from the audience addressed this issue.
(O 86-17)
Refuse Collection Fees
RE: A public hearing was held at 7:30 p.m. to obtain public comment concerning refuse collection fees.
ACTION: Councilmember Kirk moved and Councilmember Godfrey seconded to close the public hearing, which motion carried, all members voting aye.
DISCUSSION: Councilmember Godfrey asked about the triplex limit the City has established for garbage collection and if the city would ever go beyond a triplex to collect. Mayor DePaulis said that this decision had been made in the past and that if the city went beyond this point to apartments and businesses, we may be competing with the private sector. He recommended the city maintain the current policy, however, he said that the cut-off point could be a four-plex since they are more common.
Councilmember Godfrey asked what would happen if someone with a triplex wanted to be removed from the City collection program. Councilmember Mabey said that the costs would probably be better with the city. Mayor DePaulis said the attorney’s office would have to research the issue. Roger Cutler, city attorney, said that there may be more administrative costs than it is worth to allow triplexes in and out of the system. He said that it probably would be legal to allow people to be removed from the program, however, it would also be valid to force them to receive garbage service on the break-off that has been set.
Councilmember Mabey said that this could possibly be made a tax which would be deductable on income taxes. Mayor DePaulis said that the county recently switched their garbage fee to the property tax and said that unless the City’s fee is rolled onto the property tax then it is still a fee and not deductable. The only way the City could set this up as a deductable tax would be to set up a service district. The entire City would have to be set up as a special service district.
Councilmember Fonnesbeck said that if this is set up as a tax, the person with the more expensive home would end up paying more for garbage collection than the person with the less expensive home. It was also pointed out that if this Is made a tax, then four plexes and apartments would be charged the tax. Councilmember Bittner asked how the fee would be billed. Mayor DePaulis said that the fee would be billed with the water bill, so the person who receives the water bill will receive this bill.
Bernice Cook said that she hated to see this fee imposed, however, is sure that the City has no other option. She said that the charge should not be over $4.00 per month and should not be more than the County charges. The Council pointed out that the County does not have the annual clean-up that the City does. Lorelle Miller, 548 North Columbus Street, asked if the City changes to the large receptacle for the trash, where the receptacle would be located.
She said that their trash is collected from the alley in back since the front is very steep and she is concerned about getting the trash up and down the hill. Councilmember Mabey said that the curbing will be marked. Mayor DePaulis will check into the matter of where the garbage will have to be placed for this Street. Norma Amodt, 950 Jefferson Street, requested that the Council consider people on fixed incomes who have very little or sometimes no trash. Gene Nicolo, 1717 East 1700 South, asked how much money this fee will generate and how long the fee will be Imposed. He was told that it will generate $2.3 million and that the fee will be here to stay and will only be changed if costs change. Mr. Nicolo asked how the fund will be controlled. Mayor DePaulis said that it will go into the general fund and be earmarked for trash collection. Mr. Nicolo asked if the fees will be reduced if the cost of trash collection goes down. Mayor DePaulis said at some point they want this treated as an enterprise fund, when the system can be mechanized and the costs monitored.
Councilmember Godfrey asked if there would be a problem setting this up as an enterprise fund this year. Mayor DePaulis recommended that it not be set up as an enterprise fund until it is mechanized. Lance Bateman, finance director, said that cost centers monitor the costs and said it presently costs $1.9 million for garbage collection and $500,000.00 for trash clean-up or a total of $2.4 million. He said the fee will collect $2.3 million and will have to be subsidized by the general fund.
Peter Hayes, 2817 South 1000 East, asked why we need other taxes if the City is going to collect $60.00 per year from each individual for garbage collection. He asked what is going to be done with the money that is presently used to maintain garbage collection now. He asked If it would become surplus. Councilmember Mabey said that there is a shortfall - the City has lost revenue sharing, there was a shortfall in tax revenues and a number of things which means the City now needs to make up some of this money.
Mr. Hayes said there should be no overspending. B. T. Price asked if property owners will be charged if they don’t use the service because he owns an apartment complex and the garbage is collected by a private company for the adjacent house also. Mayor DePaulis said that adjustments will have to be made and the house would have to be exempted.
(O 86-13)
Water/Sewer Franchise Fees
RE: A public hearing was held at 7:45 p.m. to obtain public comment concerning water/sewer franchise fees.
ACTION: Councilmember Godfrey moved and Councilmember Kirk seconded to close the public hearing, which motion carried, all members voting aye.
DISCUSSION: Bernice Cook, B. T. Price and Norma Amodt opposed the tax. They felt the 6% to be too much. Mrs. Cook said that the franchise tax on her phone bill has increase 4 or 5 times in the last five years. She said that the tax is unfair to begin with and should be only 1 or 2% at the most. Councilmember Bittner said that she had a lady call her and say that the franchise tax on her phone bill is on top of the sales tax. Mr. Bateman explained the franchise tax. She was told that the sales tax is charged after the franchise tax and this is not considered double taxation.
(O 86-14)
Parking Fine Decriminalization
RE: A public hearing was held at 8:00 p.m. to obtain public comment concerning an ordinance decriminalizing parking citations and increasing parking fines.
ACTION: Councilmember Bittner moved and Councilmember Hardwick seconded to close the public hearing, which motion carried, all members voting aye. Bernice Cook said that she had no objections to raising the fines, however, she felt that the parking meter time limit should be increased. She said that several years ago most of the two hour meters were changed to half an hour and she felt they should now be changed to one hour.
(O 86-15)
Building Permit Fees
RE: A public hearing was held at 8:15 p.m. to obtain public comment concerning building permit fees.
ACTION: Councilmember Godfrey moved and Councilmember Kirk seconded to close the public hearing, which motion carried, all members voting aye except Councilmember Fonnesbeck who was absent at the time of the vote.
DISCUSSION: Alan Marsden, Products Council of Utah, requested that his opposition be recorded.
(O 86-16)
The meeting adjourned at 8:20 p.m.