Minutes of the Special Price City Council Meeting

City Hall: Price, Utah

June 21, 2006, 6:00 p.m.

Present:

Mayor Joe Piccolo Joanne Lessar, City Recorder

Councilmembers: John Daniels, Human Resource Director

Kathy Hanna-Smith Nick Tatton, Community Director

Jeff Nielson Aleck Shilaos, Chief of Police

Rick Davis Bret Cammans, Customer Services Director

Jeannie McEvoy Pat Larsen, Finance Director

Others in attendance: Laurie Tryon, Patricia Cook, Gary Latour, Jim Peterson, Levon Grundvig, Ceceilia Moore, Amedeo Beacco, Dennis Cole, Dot Cole, Juergen Kaehl

Excused: Public Works Director, Gary Sonntag

City Attorney, Nick Sampinos

Mayor Piccolo led the Pledge of Allegiance. Roll was called with the above members in attendance.

1. RESOLUTION #2006-12- Adoption of Budget For Fiscal Year 2006-07

MOTION was made to hold a Public Hearing by Councilmember Kathy Hanna Smith to receive comments on the proposed Budget for Fiscal Year 2006-2007. Motion seconded by Councilmember Rick Davis. Motion carried.

Mayor Piccolo opened the Public Hearing at 6:00 p.m. Pat Larsen reported a total budget for this year a little over $18 million dollars; A proposed 5% increase in the electrical rates for commercial usage, a $1.00 increase for the sewer rate and a proposed restructure of residential rates to encourage conservation. The General Fund amounts to 7.1 million dollars which is slightly higher than 2006 by about $500,000 (wages and benefits for employees). A budget of $2 million for capital expenditures has been proposed, $1 million will be grants. Councilmember Tatton had comments regarding employee benefits for John Daniels. He reported that Price City has had employee deductions last year from 86 to 84 this year and 89 employees the year before. Positions have been combined to improve productivity which compliments the budget.

Jim Peterson, 735 E. 800 N. Mr. Peterson referred to the (last sentence) in the letter from Price City stating conservation efforts. He asked why are we trying to conserve energy, who we are saving it for and who will prosper from these efforts? He mentioned the water conservation a few years ago and how everyone had their rates raised anyway because they didn’t have enough money. Are we conserving electricity to sell back to UP&L? It seems this is an underhanded tax against the people. The large, new homes are using much more electricity and water than the smaller homes and it doesn’t hurt them as much as it does the smaller home owners. Maybe the new developments should find more conserving ways to build their homes. Mr. Peterson wondered what happened to “We The People?” and he wants to hear what the people want.

As co-chairman of the Power Board, Councilmember Tatton stated that research was conducted on the electric fund and how to deal with the upcoming UP&L raise increases. The conservation rate wasn’t designed to try and save electricity, but to keep the city going for revenue. The original proposal was for a straight rate increase, then a concern was raised. The people using power in a lower bracket of 400 KWh were impacted harder due to lower income. Pat Larsen adjusted the rates using below 400 KWh and above 600 KWh for the breaking point on the rates. It was to give a rate break to the lower users. To avoid the heavy increase from UP&L and to balance rates, Price City chose the 5% increase. It has been forecasted that in the near future, UP&L will raise their rates.

Jim Peterson. When UP&L increases come will the residents rates increase again?

Councilmember Tatton doesn’t know at this point how much the increase will be or how the contract negotiations will affect the rates. Other cities under the same contract have already had the rate increase.

Councilmember McEvoy- UP&L sets their rates on the amount of demand power being used. If the demand from consumers is kept at a low, the rates for Price City stay low and consumers are then

given a lower rate. We need to conserve our power for the City rates to go down in order to pass the savings on to consumers.

June 21, 2006

Jim Peterson. Newer homes have refrigerated air etc., using more power than the smaller homes which increases demand for power. The rate increases from demand usage will effect everyone from the demand use in the larger, new homes.

Councilmember Tatton.The dollar impact on individual rate payers per household has been evaluated by Pat Larsen.

Pat Larsen. We have always had one rate for however many kWh a household used. With this proposed rate increase, any household using less power than 400 kWh will be charged $1.18 less. Households using 400-600 kWh will cost an additional $1.56 with the consumers using 600 kWh paying an additional $0.43. Customers using more power will pay for more usage because it raises Price City bill from UP&L. A $0.05 increase will be added on the base rate per month if this idea is adopted.

Bret Cammans. When citizens are conserving energy, Price City saves and can pass the savings onto consumer. This new structure will be an incline rate structure.

Mayor Piccolo. Everyone in Price City is concerned about the aging community, especially the Councilmembers, staff and myself. The conservation of electricity is a benefit to everyone that is using less power. The lower rates will be passed onto the users consuming less energy while passing on the higher rate to larger energy users. We are not saying to use less power but to conserve and be the benefactor of lower rates.

Jim Peterson. The cut off base for those not over using power are cheated out of the use of refrigerated air because larger homes are doubling up on everything and they don’t care.

Mayor Piccolo. Those larger homes will be paying 20- 25% more than 400 kWh users. The conservation plan will work for those conserving energy.

Gary Latour-665 S. 100 E. Mr. Latour referred to the letter sent regarding the electric fund. He feels that if the electric fund is doing well, then why is money being transferred to the general fund? Why do we have to increase one fund to cover another if they are making money? Another concern Mr. Leture had was the electric step rate and its new structure. Everyone uses electricity because they need it in some way or another, lower income households just can’t afford the higher rates as well as others, but still need the same amenities. Income doesn’t usually keep up with the higher rates and expenses of the economy. The lower income users should get lower rates and depending on how the new rate schedule works- it could be a good thing.

Mayor Piccolo. The electrical fund has always been an enterprise fund for Price City. Money has to come from somewhere to cover expenses elsewhere. Power users pay for what they use. If we raise the property taxes it will be more than just raising the electrical fund.

Councilmember Tatton-The General Fund money needs to stay where it is for unforseen things.

Gary Latour-It looks like there is excess money in the electric fund, but why is there such an excess? How do visitors pay for this when they come to town?

Mayor Piccolo- We would have to raise money from somewhere else to cover the money needed to run the city. If we did not do this exchange, we would have to cancel all Capital Projects or lay off employees. Layoffs would then decrease the services received from Price City. We’re not living as high as people think, we have reduced jobs and cut costs wherever we could. The adoption of this budget will be done at the next Council Meeting to implement the plan to reduce electric bills for those residents using 400 kwh. The city has to adjust their bills to keep up with increases just like citizens do. Visitors are paying through the products being purchased, The daytime population is growing rapidly and we need to capitalize on this resource.

Councilmember Hanna-Smith. The job of the Mayor and Council is to represent the people and to come up with ideas through hours of research to cover the expenses for the City and its budget. We had to decide how to keep facilities open and running without passing on an increase. As a board we want everyone to know that this is a moderate increase and we were not trying to make it difficult for citizens. The increases are not deliberate we are just trying to keep up with costs.

Gary Latour. Here to receive clarification on the letter. He understands the issues but had concerns and needs answers. He is truly appreciative of everything the City does for its citizens.

June 21, 2006

Cecilia Moore-430 E. 300 N.Ms. Moore referred to a water line on 100 North in Price that is over 100 years old. It only has 30-40 pounds of pressure for its citizens, which is not acceptable. She has had plumbers and a city employee looking into the issue in years pass but the problem is still there.

Mayor-This is news to all of us and the matter will receive attention. He will look into the issue and see what improvements can be made.

Bret Cammans. Customer Service will check into the matter. -

Councilmember McEvoy. She lives on First West and is glad Ms. Moore came forth.

Dennis Cole-1720 E. 500 So. Mr. Cole referred to the electric utility rates. He would like to know if part of increase is to cover employees wages and benefits for employees. Are the City’s increases at a 3-4% rate for employees as they are for others living in the City?

Mayor Piccolo. The 3-4% cost of living is the same for Price City employees as for others. We are very conservative but try to treat our employees with respect and admiration to continue the job they are doing for Price City.

Councilmember Davis. If an employee leaves Price City, we try and re-organize to keep costs down.

Ms. Moore. Her neighbors’ ditch/gutter is deep and filled with debris. She has called many times for a clean up crew, but no one shown up.

Mayor Piccolo. Will look into the problem if it is on City property.

Amedeo Beacco-303 W. Railroad Ave.Regarding the increase on sewer; is there an increase from PRWID?

Mayor Piccolo. Rates are increased to keep up with sewer/water replacements, fixing pipes, and maintaining sewer lines within the city.

Councilmember.Tatton. We used to pay the rate that PRWID requested but the Mayor worked towards reducing this because it wasn’t fair to Price City workers. Price City employees clean the sewers lines and waste water reclamation. The City does stay below the County on costs.

Amedeo Beacco- Are the Commercial users rate going up and does the general public absorb costs? Will the rate increase put a damper on builders expanding businesses in the Price area?

Mayor Piccolo. Price City’s electrical rates are less. We are using this avenue to stay concurrent and prevent raising other tax sources.

Councilmember Tatton. We don’t want to discourage people and businesses coming into Price City. We want to keep rates low and competitive with the County and UP&L to encourage development.

Amedeo Beacco-If rates are too high we cut our own throats and don’t allow big businesses to build in Price.

Mayor Piccolo. Price City will have available power to accommodate the new businesses. He will keep working on the issues that have arisen tonight and hopes the community will continue to contact us regarding problems and issues within the City.

Juergen Kaehl-100 So. 576 E. Many large trucks traveling along 100 So have caused the asphalt to sink and possible damage to water line. The trucks should be prohibited from the street due to the large holes and dips in the road. He asked, “why are we using culinary water instead of secondary

water to water outside”.

Mayor Piccolo. This project would be very expensive and unfortunately, we do not have the funds to

June 21, 2006

construct it at this time. Funds to support this project would need to come from the water users. A water user could be charged an additional $40.00/ a month similar to what Wellington City is doing. The cost of the project could be up to $1600.00 per user just to pipe it in the ditch.

Councilmember Tatton. Everyone is working on getting funding from the government for these types of projects.

Juergen Kaehl. We are wasting culinary water using it for irrigation purposes. If the irrigation water was pressurized, it would be more efficient.

Mayor Piccolo. We don’t have the funds for this type of project or other projects such as to complete curb, sidewalks and gutter all over town. We would support secondary water projects if the funds were in the budget.

Dot cole-1720 E. 500 S. The intersection light at approximately 260 So. Highway 55 near Wal-mart stays on too long.

Aleck Shilaos. The State of Utah runs the light which has sensors overhead that are cheaper to install than those underground. Numerous complaints have been received on this light issue. Aleck will check with State of Utah- UDOT to see if it can be resolved.

John Daniels. There has been a reduction in workforce numbers and in overtime hours. We are currently in the middle of volunteer week. Price City employees and their family members volunteered to help clean up the entrances into the Price. Their help really made the difference.

MOTION: Councilmember Tatton moved that the Public Hearing be closed. Motion seconded by Councilmember McEvoy. Motion Carried. The Public Hearing closed at 7:11p.m.

MOTION: Councilmember Hanna-Smith moved that Resolution 2006-12 Adopting the Budget for the Fiscal Year 2006-07 be approved and that the Mayor and City Recorder be authorized to sign the Resolution. Further, that the Certified Tax rate of .002543, increasing property tax revenue by $24,000 for a total of $664, 195.00 be approved. Seconded by Councilmember Tatton. Motion carried.

2. CITY SANITATION REFUSE CONTRACT - Authorization to extend contract

Mayor Piccolo reported that he met with owners of City Sanitation regarding the extension of the refuse collection contract that expires June 30, 2006. The current contract states that it can be extended. City Sanitation has agreed to extend the contract and to lower their rates from $8.00/month to $6.00/month with a smaller charge for the second can. This would mean a savings to the City of $5960/month or $72,000. The only change City Sanitation requested is that the contract be for a 10-year period instead of the current 5-year period. Nick Sampinos supports this 100%. The Council agreed with a 10-year contract. MOTION: Councilmember Tatton moved to approve the City Sanitation Refuse Contract for a 10-year period and that Mr. Sampinos be authorized to prepare the new contract. Councilmember Davis seconded the motion. Motion carried.

MOTION:Councilmember Tatton moved that the meeting adjourn and that a meeting of the Redevelopment Agency convene. Motion seconded by Councilmember Nielson and carried.

Meeting adjourned: 7:30 p.m. Reconvened at 7:35 p.m.

Meeting adjourned at 7:44 p.m.

APPROVED:

______________________

ATTEST: Joe L. Piccolo, Mayor

Laurie Tryon, (acting) City Recorder