01.23.24 Council Minutes

THE STATE OF UTAH
COUNTY OF SEVIER
CITY OF RICHFIELD

At the City Council
In and For Said City
January 23, 2024

Minutes of the Richfield City Council meeting held on Tuesday, January 23, 2024, at 7:00 p.m. in the Council Chambers of the Richfield City office building located at 75 East Center, Richfield, Utah. Mayor Bryan L. Burrows presiding.

  1. OPENING REMARKS
  2. PLEDGE OF ALLEGIANCE
  3. ROLL CALL
  4. AUDITED FINANCIAL STATEMENT FOR JUNE 30, 2023 APPROVED
  5. WHITE’S ANNUAL SANITATION REPORT PRESENTED
  6. ANNUAL GOLF COURSE REPORT PRESENTED AND FEE INCREASE APPROVED
  7. BOD LIMIT FOR WASTEWATER DISCHARGE SET
  8. RESOLUTION 2024-1 ADOPTED
  9. ORDINANCE 2024-1 ACCEPTING THE AMENDMENTS TO THE TRANSPORTATION MASTER PLAN ADOPTED
  10. ORDINANCE 2024-2 AMENDING THE FUTURE ZONING MAP OF THE GENERAL PLAN FOR 1300 S 500 W DENIED
  11. DONATION FOR THE ROTARY CLUB TO HELP WITH A SCHOLARSHIP TO SNOW RICHFIELD APPROVED
  12. OTHER BUSINESS
  13. MEETING ADJOURNED
  14. OPENING REMARKS were offered by Kendrick Thomas.
  15. PLEDGE OF ALLIENGENCE was led by Tanner Thompson.
  16. ROLL CALL. Present: Bryan Burrows, Brayden Gardner, Kendrick Thomas, Tanner Thompson, Michele Jolley, Tyson Hansen. Excused: Kip Hansen, Elaine Street.
  17. AUDITED FINANCIAL STATEMENT FOR JUNE 30, 2023 APPROVED. Kimball and Roberts presented the Audited Financial Statement ending June 30, 2023. Ga
    Gabe Miller discussed the opinion, which he read. The opinion was clean or unmodified because nothing they found in their testing would indicate that the numbers in the report were materially misstated.

Mr. Miller discussed the financial portion and pointed to the Statement of Financial Position as of June 2023, showing the amount of non-restricted funds the City had was 10.4 million and the restricted was 7.7 million. The City had an unrestricted net position of 9.557 million, the number of resources available to carry forward to the next budget year. There were no deficits in the City’s funds, and we had additions to all our funds.

All fund balances in the governmental funds were positive; the general fund showed an ending fund balance of 4.9 million, and the unrestricted or unassigned balance was 2.4 million. There was a positive total net position in all of the business funds. He also discussed the notes that show that 18.228 million is split out in the funds, governmental unrestricted and restricted, and business type unrestricted and restricted. Then, it shows where the money is physically located.

Mr. Miller showed the Council a schedule of the City’s debt service. He explained that we did retire a couple of bonds this last year and are close to retiring a few others. The annual debt service for this next year is 1.2 million.

Mayor Burrows asked for clarification on the paragraph about Custodial Credit Risk. The paragraph stated that $8,903,018 of the City’s bank balance is not insured. Mr. Miller indicated that was correct. Councilmember Thompson asked if that meant it was not FDIC-insured, and Mr. Miller indicated that was correct. He further stated that every bank has a limit of $250,000, and if this is a concern, they suggested that there are products with some banks that they can diversify the money within their bank to other banks so that it is deemed to be insured. In other words, they spread it out within that bank. He said that the City could ask Zions about that.

Mr. Roberts discussed the compliance report. He pointed out they do not test internal controls, but they look to see that we have internal controls. If they find any segregation of duty problems, they would mention it in the compliance report.

Mr. Roberts also discussed the independent auditor’s report. He explained that it is for compliance with each major program where the City has spent more than $750,000 of federal funds.

Another compliance required by the State audit guide is ensuring that the City complies with State laws and regulations. They have to test to see that the City complies with state laws and regulations according to the list of items shown in the Financial Statement. Their opinion was that the City complied in all material respects with the state compliance requirements for the year ending June 30, 2023.

Motion: Accept the Audited Financial Statement for the year ended June 30, 2023. Action: Approved, Moved by Kendrick Thomas, Seconded by Tanner Thompson. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street.

  1. WHITE’S ANNUAL SANITATION REPORT PRESENTED. Chet White stated they had to adjust their schedule this year because of landfill access. Taking off the seven major holidays this year just bumped pick-ups back a day so they could make up for that time.

They have scheduled the town cleanup for Richfield for April 12 through April 22. Mr. White felt that relocating the one dumpster to 100 East from Center Street last year worked well. He wondered if they would still be able to locate a dumpster at the pool for the cleanup, given the construction that is currently underway. Mr. Mogan stated that it should still be okay up there, but we will let them know if any change needs to be made to that location.

Mr. Hansen asked how the system with the landfill has been working. Mr. White stated some adjustments had been made but felt it was working. Switching the commercial fees over to the haulers and the residential through the City, and determining how to distribute that among businesses proportionately because not all businesses were the same. Making it as fair as possible was what they tried to do. He felt that they did a fairly good job. If a home-run business comes in and they are a huge producer, they feel there should be a difference between the household and the business because if it is not, a storefront must have a dumpster. Someone can run something from their home and produce as much garbage as some other places, but because of the service they offer, their home businesses are just setting all of that out.

  1. ANNUAL GOLF COURSE REPORT PRESENTED AND FEE INCREASE APPROVED. Mr. Mullen discussed the revenue for the golf course over the past four years, with $737,770.58 being generated in 2023. It has been getting busier and busier, and he hopes that we can continue to maintain what we are doing.

He wanted to propose a few price changes since many courses around the State are increasing prices because costs are increasing. If we are not raising our prices, we are falling slightly behind. He is not proposing increasing green fee prices because we did that a little over a year ago. He is proposing that the season pass prices and the cart rental prices be increased.

Our current price per rider per 9 holes is $7, making it one of our area’s least expensive golf courses. All of them are $8 to $10 per 9 holes per person. He proposed increasing our cart fee to $8 per 9 holes and $16 for 18 holes. The season pass price is 650, for seniors $600, couples $1,000, senior couples $900, and a family pass is $1,000. He proposed increasing those fees to $700, $650, $1050, $950, and $1,200, respectively. With that, if the cart fees are passed, it would bring in another $35,000 to $30,000 more this next year, and we would bring another $8,000 to $10,000 in season passes with the proposed increase.

Mr. Mullen is looking at getting new carts. The increase would help fund that. We have had these for seven years. We leased and bought them out two years ago for a dollar, so we do own them. Mr. Mullen said we would trade 58 carts and keep two for the maintenance crew. He would like to purchase 62 new carts because this year, there were about 15 days we ran out of our 60 carts. We were busy enough that people were waiting for carts to come in, and we needed more than 60 carts in a couple of tournaments.

Councilmember Gardner asked if Mr. Mullen knew what the new cart costs and the trade-in value would be. Mr. Mullen stated that of the two companies so far, the trade-in for the carts would give us $121,000, and the other would give us $130,000. Our last lease payment on the carts was about $34,000 a year. One company was around $55,000, and the other was around $45,000. We currently have Yamaha carts. They are a really good cart, and Mr. Mullen likes them. One company offers that cart, and the other offers a Club cart.

Councilmember Thompson asked where we were profitability-wise for last year. Mr. Mullen reported that we were in the black by about $26,000, which was the first time in a long time. Our goal is to try to make it profitable, but at the same time, having a golf course in this community is great. We cannot measure the extra money spent on motels and gas stations by people coming here to play golf.

The golf courses up north are getting busier and busier, and he sees people every day coming here to play because they can get on. The locals do not like it sometimes because it is getting crowded.

Councilmember Thomas noted that the grill is dipping a little bit this year in revenue, and he wondered if Mr. Mullen knew of any reason for that. Mr. Mullen felt that for a while, there were not a lot of places in town to eat, so they were coming to the golf course because they knew it was a great place. It just dipped a little, not much, but it just depends on where you are at.

Mr. Mullen informed the Council that he has been working on a grant to help upgrade our irrigation system because it is lacking.

Motion: Approve the increase in cart rentals and season passes as discussed above, Action: Approved, Moved by Tanner Thompson, Seconded by Brayden Gardner. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street.

  1. BOD LIMIT FOR WASTEWATER DISCHARGE SET. Carson DeMille discussed the need for the City to set a limit so that Utah Beef Producers know what they will have to treat their sewer to get the equipment designed for the facility. BOD stands for biochemical oxygen demand. It is a measure of nutrients and concentration. He explained that it looks at how bacteria are required to break down the nutrient. There are limits on how much a lagoon can handle. State rule allows for 35 pounds of nutrients per acre per day.

Currently, the flow coming into the lagoon has a concentration of 318 milligrams per liter of BOD, which equates to just under 2,000 pounds per day. To adequately treat that loading, the City can go up to 35 pounds per day per acre. We are at about 28 pounds per day per acre now. As we grow, it will bring more pounds to the pond. The 318 milligrams is on the high side for what would be expected for municipal use. The State design guideline for a treatment facility recommends 200 per day because a home is usually between 100 and 200 milligrams per liter on average.

Richfield is pushing 318, which means we probably have some offenders in town who are heavier users, like restaurants that are not using grease traps. We do not know who the offenders are. Maybe an average home is higher than the 100 to 200, but we have no idea. We have about 480 pounds per day of availability for growth.

Councilmember Thompson asked about how many households that would be. Mr. DeMille did not know the exact number, but we measured things in ERUs and planned for 560 ERUs in our twenty-year growth based on our last impact study. We are just butting right up against our maximum loading. We just barely redid the sewer lagoons, and the design was for a twenty-year life on those lagoons. Two things limit that design life. One is the BOD loading, and two is our hydraulic capacity or the amount of water they can physically hold. Usually, water dictates the lagoon’s lifespan, but we also have to look at BOD. So at the 3180 milligrams per liter, which is higher than it should be, we have twenty years of capacity in the lagoons if we grow at the rate we have historically been growing.

This has come up because Utah Beef Producers wants to connect to the sewer system. Many larger municipalities have BOD standard limits that allow people to hook on to their systems. Utah Beef Producers’ water usage would have averaged out to 14,000 gallons per day. They would only operate their peak build-out flow four days a week at 27,000 gallons. They will not start at that level but recycle some of their water, so we do not know the average daily use. To be safe, we assumed 27,000 gallons per day, four days a week, which averages out to 14,000 gallons per day.

That is the equivalent of about 43 homes’ water usage. As for the BOD, if they did not do anything, his BOD would be significantly higher than that of an average home. He has to put in some measures to capture as much of the blood and grease as he can, but a lot of that ends up being washed down the drain. If that just went to the lagoon, his BOD level would be at 1,000 or 2,000 BOD. When Smith Meats was looking at coming here, they did not do any treatment, and they were at 5,000 milligrams per liter. So, Utah Beef Producers has to pretreat the waste before sending it to the ponds, or the ponds would turn pink and stinky.

Mr. DeMille gave the Council a chart showing a range of BOD loadings from 150 milligrams per liter to 450 milligrams per liter and how each would affect the system currently as far as pounds per acre per day and in the twenty-year design. He stated that he did not consider his flow because he assumed it was already accounted for in the twenty-year growth, so he only looked at the BOD impact.

If they treat it down to less than the 300, which the City is currently at, it would reduce the BOD loadings. If they treat to 300, it would match what is currently going into the lagoons, and he would not affect the twenty-year growth of the lagoon capacity in BOD. Water capacity is a whole different discussion for another day.

Henry Barlow talked about the biochar that they will be producing and the applications it will have. Mr. DeMille noted that the Council does not have to worry about this. We need to set a limit for BOD loadings into the lagoons. Mr. DeMille stated that if Mr. Barlow is under 300, he will match what we are currently dumping, which will not affect the lagoons, BOD-wise. Mr. Mogan was asked if he had an opinion on the limit. Mr. Mogan would like to be conservative and set the limit at 250.

Councilmember Thompson felt that this raised many other issues we should at least think about, like how we fix the 318. It seems that is negatively affecting Mr. Barlow and other industries that would come here because we do not know who the offenders are, so we are now holding them to a tighter standard because other people are not doing what they are supposed to be doing. Mr. DeMille stated that once the Council sets the standard, there are ways like sampling strategic manhole locations and figuring out who the offenders are. If we set the limit at 200 or 250, some people who have been in business for a while could end up in violation.

Mr. Barlow would like the Council to set the standard at 300, and he will prove that he will knock it out of the park from 300. He is going to have sampling manholes that the State will manage. He would rather over-deliver and under-promise than the other way. Mr. Barlow stated that there is no data from a business that you can quantify. He asked the Council not to make the rules so hard but to give him a year. Mayor Burrows liked the idea of revisiting this in one year. Motion: Set a BOD loading for Utah Beef Producers at 275 and revisit this in one year, Action: Approved, Moved by Kendrick Thomas, Seconded by Tanner Thompson. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street

  1. RESOLUTION 2024-1 ADOPTED. The Council reviewed a resolution supporting an application to the Land Water Conservation Fund for a 2.5-million-dollar matching grant for the swimming pool.Motion: Adopt Resolution 2024-1 supporting an application to the Land Water Conservation Fund for a matching grant for the swimming pool, Action: Approved, Moved by Tanner Thompson, Seconded by Brayden Gardner. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street.
  2. ORDINANCE 2024-1 ACCEPTING THE AMENDMENTS TO THE TRANSPORTATION MASTER PLAN ADOPTED. The Council and the Planning Commission held meetings and discussed the update to the Transportation Master Plan. Motion: Adopt Ordinance 2024-1 accepting the amendments to the Transportation Master Plan, Action: Approved, Moved by Kendrick Thomas, Seconded by Brayden Gardner. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street.
  3. ORDINANCE 2024-2 AMENDING THE FUTURE ZONING MAP OF THE GENERAL PLAN FOR 1300 S 500 W DENIED. Mr. Riches requested a 1300 South 500 West property rezone.

Councilmember Thompson noted that the City Attorney had recommended that we not do a conditional rezone. It was noted that this project could be built in the general commercial zone, but it would only be for short-term rental. It would resemble the project Larry Pearson built with the Quality Inn Motel. In the commercial zone, we could regulate how long people stay, but if it is changed to multi-family, it could be long-term.

Councilmember Thompson felt this was different because it would be a fractional ownership. The opinion of the City Attorney is that it could still be that way. It would be no different than having a hotel/motel there.

Mr. Riches stated that this is the plan, but he is selling it to other investors, and he does not perceive them wanting to be there because the price of these units is higher than some of the nice new homes. It does not make sense for someone to buy one to stay in.
Mr. Riches stated that he was initially told he had to include retail in the project to keep it commercial.

Councilmember Thomas asked if there was a recommendation from the Planning Commission. The Planning Commission told Mr. Riches to request a rezone to RM-11.

Councilmember Thompson asked if this is like Arcadia in St. George, which gets rented a lot nightly but also has permanent residents. Mr. Riches stated that this is the thing. This is happening in St. George and Moab and is becoming a trend. Councilmember Thompson wants Mr. Riches to build what he is proposing, and if we can do that as a commercial zone, then he thinks we will all win.

It was discussed that this would be considered an extended stay so that people could stay there for up to 90 days with 180 days. Mr. Riches stated that he would have rules governing how often they can stay there based on how long their stay is. Councilmember Gardner declared a conflict of interest. Motion: Deny Ordinance 2024-2 amending the future zoning map of the General Plan for property located at 1300 South and t00 West, Action: Denied, Moved by Tanner Thompson, Seconded by Kendrick Thomas. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street.

  1. DONATION FOR THE ROTARY CLUB TO HELP WITH A SCHOLARSHIP TO SNOW RICHFIELD APPROVED. for students graduating from our area.Motion: Approve a donation to the Rotary Club for $2,000. Action: Approve, Moved by Tanner Thompson, Seconded by Brayden Gardner. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street.

Mayor Burrows read a letter from the Central Utah Food Sharing thanking the City for donating to the Food Sharing. They are currently serving over 550 households each month. Due to the rising cost of food, new clients are added weekly. They are open for food pick-up Monday through Thursday, 10:00 a.m. to 2:00 p.m.

  1. OTHER BUSINESS. Councilmember Thomas reported on the SITLA land swap. They have asked for Councilmember Thomas to meet with them so they can lay out the options they are looking at. Mayor Burrows suggested that Councilmember Gardner also be included in the meeting.
  2. MEETING ADJOURNED. At 9:13 p.m., Motion: Adjourn, Action: Adjourned, Moved by Tanner Thompson, Seconded by Kendrick Thomas. Vote: Motion carried by unanimous roll call vote (summary: Yes = 3). Yes: Brayden Gardner, Kendrick Thomas, Tanner Thompson. Excused: Kip Hansen, Elaine Street.

PASSED and APPROVED this 13th day of February 2024.