Eagle Mountain City Council, 16 March 2021

Councìlmember Gray moved to øppoínt Cømrie Cømpos to the Youth City CouncíL, completing the termthroagh June 30,20201. Councilmember Clark seconded the motìon. Those voting øye: Donnø Burnhøm, Melßsa Clark, Colby Curtis, Jared Gray, and Carolyn Love. The motion pøssed wìth a unønìmous vote. CONSENT AGENDA l0 BID AWARDS 10.4. Design Services for Smith Ranch Community Park - MHTN Architects 10.B. Pony Express Widening Phase 5 - Kenny Seng Construction 11. BOND RELEASES 11.4. J & J Ranch-Into Warranty 11.8. Lone Tree Phase F, Plat I - Into Warranty 11.C. Silverlake Plat l8 - Into Warranty 11.D. Silverlake Plat2l - Into W'arranty 11.E. Silverlake Plat22 - Into Warranty I 1.F. Silverlake Plat23 - Into V/arranty 1.G. Silverlake Plat24 - Into Warranty 1 11.H. Silverlake Plat25 - Into Warranty 11.I. Silverlake Plat26 - Into Warranty 12. CHANGE ORDERS 12.A. Cory B. Wride Memorial Park Phase 2 Project Change Order #1 - Kenny Seng Construction 13. MINUTES 13.4. March 2,2021- Regular City Council Meeting 14. RESOLUTIONS 14.4. RESOLUTION - Resolution of Eagle Mountain City, Utah, Approving a Utah County Interlocal Agreement for 2021 Municipal Election Administration.

Councilmember Love moved to øpprove the consent agendø. Councilmember Burnhøm seconded the motion. Ms. Kofoed verified that each plat is required to have a subdivision bond, and the bond must be in place prior to the recordation of the plat. Some plats do not have landscape bonds if the requirements were fulfilled prior to plat recordation. Councilmember Curtis inquired if a previous issue with a gap in a fence was a part of these bonds and if the issue had been resolved. Mr. Mumford stated he had been in contact with the developer regarding the fencing issues. He explained that the bonds on this agenda are subdivision improvement bonds. Parks and Recreation Director Brad Hickman explained that the funds have been secured for every plat. Staff will ensure the repairs have been completed prior to releasing the applicable landscape bond and these bond releases are separate from landscape bonds. Ms. Kofoed stated she understood that the City Council did not desire to use rank choice voting for the upcoming election and should the Council determine to implement that voting method, State notification and further action is required. Those voting aye: Donnø Burnham, Melßsø Clark, Colby Curtís, Jared Grøy, and Carolyn Love. The motíon pøssed wíth ø unønimous vote. SCHEDULED ITEMS I5. THE PINNACT,ES 15.4. PUBLIC HEARING/ORDINANCE - An Ordinance of Eagle Mountain City, Utah, Amending the Future Land Use Map of the General Plan and Rezoning Certain Lands Known as The Pinnacles. This item was removedfrom the agenda at the request of the applicant. 15.8. PUBLIC HEARING/ORDINANCE-An Ordinance of Eagle Mountain City, Utah, Approving the Master Development Plan for The Pinnacles. Eagle Mountain City Council Meeting - March 16,2021 Page l8 of27 This item was removedfrom the agenda at the request of the applicant 16. ORDINANCE/PUBLICHEARING 16.4. ORDINANCE/PUBLIC HEARING*An Ordinance of Eagle Mountain City, Utah, Approving the Fourth Amendment to the F'iscal Year 2020-2021Budget. Finance Director Kimberly Ruesch presented the item. The fourth amendment to the fiscal year 2020-2021budget will increase the General Fund budget by $379,708. The increase accounts for additional funding in the amount of $264,000 for road surface treatments related to the bid award approved by the Council at the March 2,202I meeting. An additional $100,000 has also been added to the budget for the Transportation Master Plan study, of which $25,000 will be funded with a grant. The remaining increase of $14,708 is requested to cover the cost ofprotective supplies related to the COVID-l9 pandemic that can be funded with proceeds of the Coronavirus Aid, Relief, and Economic Security (CARES) Act funding received by the City. Mayor Il/estmoreland opened the public hearing at 8:28 p.m. No comments were submitted to the City Recorder's Office and no public was in attendance to make comment. As there were no comments, Mayor ltr/estmoreland closed the hearing.

Councílmember Burnham moved to øpprove an ordinance of Eøgle Mountøin City, Utah, approvíng the Fourth Amendment to the Físcal Yeør 2020-2021 Budget. Councílmember Clørk seconded the motion. Those voting øye: Donna Burnhøm, Melßsa Clark, Colby Curtß, Jared Gray, and Carolyn Love. The motíon passed with ø unønimous vote. 17. SWEETWATER INDUSTRIAL PARK

Councilmember Grøy moved to øpprove an ordínønce of Eøgle Mountøin CiA, Utuh, ødopting the Sweetwster Industrial Pørk Community Reinvestment Area #2 Project Areø Plan, as approved by the Redevelopment Agency of Eagle Mountøin, øs the Official Community Reínvestment Project Area Plan for the Project Area and directíng thøt notice of the adoptíon be gíven øs required by Støtute. Councilmember Clark seconded the motion. Those voting aye: Donna Burnham, Melìssø Clark, Colby Curtis, Jared Gray, ønd Carolyn Love. The motion passed wíth a unanimous vote. l7.8. RESOLUTION - Resolution of Eagle Mountain City, Utah, Approving an Interlocal Cooperation Agreement between the Eagle Mountain Redevelopment Agency and Eagle Mountain City for the Collection and Remittance of Incremental Property Taxes Collected from Property within the Sweetwater Industrial Park Community Reinvestment Area #2. Mr. Sandborn explained the initial request for the agreement was for 100% of the personal property tax and 75Yo of the real property tax values for the project area. During negotiations with the company, the City advocated for a reduction of the real property tax percentage from 75o/o to 67.50/0, allowing the taxing entities to retain the funds rather than waiting for reimbursement through the funding mechanism, resulting in a net benef,rt to all taxing entities. Even factoring in the administrative refund component, the new terms result in a joint benefit to taxing entities of $103,000 and allows the RDA to retain funds to meet expenses, reducing the amount received by the partner company by approximately $400,000. The terms assist the City in meeting the cost associated with industrial development within the City. Councilmember Curtis stated he compared this project to Facebook and noted that even though this project has smaller phases, that the total funds are significantly lower than what was awarded to the Facebook project.

Councilmember Gray moved to approve a resolutíon of Eagle Mountaín Cíty, Utøh, approvìng an Interlocal Cooperøtion Agreement between the Eøgle Mountøin RedevelopmentAgency and Eagle Mountøin Cityfor the collectíon and remíttance of íncremental property taxes collectedfrom property within the Sweetwater Industriøl Park Community Reinvestment Areø #2 with the chønge to Section 6 that the tax increment shall be changed from 75% to 67.5%. Councílmember Burnhum seconded the motion. Those voting aye: Donna Burnham, Melßsø Clark, Colby Curtß, Jared Gray, ønd Carolyn Love. The motion pøssed with a unanímous vote. l8 PRESENTATION 18.4. PRESENTATION -2021-2022 FY Preliminary Budget Ms. Ruesch presented the item. The budget is a financial plan of how Eagle Mountain City will spend funds the City receives during the budget year. The budget planning taking place now will cover the period of July 1,2021through June 30, 2022 and is referred to as Fiscal Year 2022. The purpose of the budget is to align Eagle Mountain City's resources with its organizational goals. Citizens provide input, the City Council establishes a vision and sets policy, and the budget officer prepares the budget. Government funds have a short-term outlook and are primary sourced through taxes. User fees do not generally cover the cost of services, and the Funds are required to have a balanced budget. Govemment funds include the General Fund, Special Revenue, and Capital Project Fund. Enterprise Funds function like a private business and are primarily sourced through user fees. The user fees cover the cost of the operations and infrastructure repair and replacement and have long- term outlooks. A balanced budget is not required. Enterprise Fund categories include Vy'ater, Sewer, Solid Waste, Stormwater, and Internal Service Funds. The Operating Budget includes the day-to-day operations of the City including personnel, materials, supplies, and services. Capital outlay includes one-time purchases related to the operations of the City such as vehicle purchases. The Capital Budget covers new infrastructure needs such as water storage tanks or new roads. These projects are primarily growth driven and include repair and replacement costs for existing infrastructure such as the replacement of playground equipment at an existing park. Accounting standards dictate that the City maintain a separate set of balance sheet accounts and revenue/expense accounts by Fund. Interfund Transfers are needed to distribute costs for departments that provide services to multiple Funds of the City. For example, the Human Resource department is accounted for within the General Fund, but also provides services for departments in other Funds such as V/ater and Sewer. The proposed timeline for the 2021-2022 FY Budget: o March 16,2021- Operating Budget Overview o April 2,2021- Capital Projects and One-Time Funding o April 20,2021- Review Draft Tentative Budget . May 2,2021- Acceptance of Tentative Budget o June 1,2021- Public Hearing o June 15,2021- Adoption of Budget Assumptions for the FY 2022budget include a sales tax growth of 3Yo, issuing 1,120 residential building permits, utility sales growth of 7%o, and an estimated population served of 48,500. The sales tax is a conservative estimate and is expected to be higher. The population estimate reflects residents likely to move into their homes in 2022, and does not include all the building permits issued during the year. Personnel impacts of the budget include the maintenance of the current benefit structure, a medical premium increase of 2.3%o, Utah Retirement System changes that have yet to be determined, merit increases of 3Yo, and new hires equal to 10.461full-time employee equivalents. The City's dental and vision benehts are guaranteed the same rate through July 1, 2022. Mr. Jerome clarified that the City conducts third-party compensation studies. Raise amounts are awarded based upon merit and the findings of the compensation study. City staff does not receive cost-of-living adjustments. The 3o/o fundallocation is a placeholder to reserve funds to provide the wage increases determined to be appropriate. Ms. Ruesch explained the compensation study helps determine if wages should be adjusted in accordance with the market indications for the City to maintain competitive pay for positions. The budget includes funds for replacement vehicles, new employee vehicles, and vehicle leases of 8747,358. The Sheriff s Department expense considerations include a 4Yo increase in position costs per their contract, body camera equipment, additional overtime funding, one full-time day sergeant, and two full-time patrol officers. Body camera usage is a County-wide requirement not at the discretion of the City. The preliminary operating expenses needed to maintain existing service levels of the City total 533,745,751. The personnel costs are for City growth that has already occurred to maintain current service levels, rather than a preparation for anticipated growth. The proposed General Fund Revenue total of $19,756,140 projects more growth than apparent due to the over $2,000,000 one- time funding from the CARES Act in the current budget. Ms. Ruesch explained that the City Council will prioritize and determine the one-time funding items, Capital projects to fund, and will decide if excess revenue should be transferred to the Capital Project Fund to fund infrastructure expansion. Councilmember Gray expressed concern regarding the total funds reserved for personnel merit increases and the oversite of those funds. * Mr. Jerome stated that large salary increases or promotions will result in a budget amendment requiring Council approval. The Mayor has the authority to authorize small wage increases. Councilmember Gray said he felt that holding 3Yo from the total budget for merit increases was absurd and deueases the interest that could be earned from the money. He advocated for not having a salary increase fund for personnel. Mr. Jerome explained that the merit increase reserve fund is based upon 3Yo of total personnel salaries, excluding benefits, rather than3%o of the total General Fund. The reserve allows the City to compensate employees based upon the findings of the compensation study. The City has previously provided cost-of-living increases but no longer provides those. The City will be conducting another compensation study soon. He feels a reserve fund assists the City in providing appropriate wage increases. Councilmember Gray noted that compensation studies can find that employees are under- compensated but may also find that in some cases, an employee is not worth what they are being paid. He advocated for all raises to be merit-based regardless of industry-standard wages. It was his opinion that some City employees may be substandard and undeserving of the industry standard. Mr. Jerome clarified that the compensation study is used as a tool by the supervisors to determine the appropriate merit-based salary in consideration of the statistics of the City in comparison to conditions in other cities. Councilmember Gray expressed concem with increasing wages in years with decreased revenue Mayor Vy'estmoreland verified that the budge was reduced due to the pandemic. Mr. Jerome explained that during The Great Recession, the City underwent a four-year salary freeze as the City experienced a drop in revenue and building permits. Property tax revenue increases and decreases independently and opposite of the economic conditions to allow municipalities to continue to provide necessary services to residents. The City budget was reduced due to the pandemic and those items \¡r'ere restored once the economic impact was determined to be less severe than expected. He noted the City experiences attrition when an employee retires or leaves the City due to a better offer and the replacement employee might not have the same experience and expertise as the departing employee, which is consequently reflected in their salary. The full merit increase reserve might not be utilized each year due to attrition and other factors. Ms. Ruesch noted that the City is conservative in spending and does not spend all available funds within a budget category if the spending is not warranted; the merit increase reserve will be allocated under the same fiscal conservation. Mr. Jerome advocated for reserving funds and for budgeting to preserve funds for anticipated needs to prevent spending on one-time expenses, resulting in insufficient funds to finance unexpected costs. Not including a placeholder increases the risk of spending funds in inappropriate areas. Councilmember Curtis recognized Councilmember Gray's concerns but noted that City funding has been allocated this way for years. He requested staff assist the Council in understanding the purpose and philosophy of the City's budgetary strategies to clariff City budget methodology. Mr. Jerome noted that the rapidity of the City's growth increases personnel burden. He expressed concern at being overly conservative at the expense of the morale and wellbeing of employees. He desires to balance government growth with the genuine need for additional help for the employees while preserving reserve funds for economic downtums to prevent employee layoffs. Councilmember Curtis concurred with Mr. Jerome's desire to balance being fiscally conservative and preparing for economic recession with genuine personnel needs. Mayor Vy'estmoreland reemphasized the need for balance and the importance of determining the appropriate number of employees to serye the City. He is amazed at the amount of additional work department have absorbed without additional staff. The City has reached the point that additional staff is necessary to meet deadlines and obligations. Councilmember Curtis requested a future discussion to clarifu staffing needs. Mr. Jerome recognized that the addition of 10 full-time equivalents is a drastic increase; however, it underrepresents the true current staffing needs of the City. In 2012, extemal auditors told Mr. Jerome the City needed more accounting personnel and the recommendation occurred nine years prior to hiring an additional accountant. An additional Neighborhood Improvement Officer is a second position the City needs. Staff strives to fill real needs and provide real value. He commended department heads for their efforts. When a department head asks for additional assistance, he can trust there is a real need. The City can increase the reserve fund to 35Yo due to recent legislative changes; however, increasing the fund will require sacrifices in other areas. The City could determine to increase the fund incrementally rather than all at once. Councilmember Curtis expressed his appreciation for having emergency funds. He stated he would like to increase the fund, but in a method and timeframe that is appropriate. Mr. Jerome concurred that the department heads are conseryative and responsible in their requests. He noted that the City does not incentivize department heads to spend unnecessary money by reducing the following year's budget if funds are not spent in accordance with the City's fiscal conservation principles. 19, CITYCOLINCIL/MAYOR'SBIJSINESS Councilmember Burnham None. Councilmember Love None. Councilmember Gray Councilmember Gray reiterated his stance that all raises should be merit-based. He expressed his desire to revisit Mr. Jerome's contract and believes that Mr. Jerome deserves a raise to compensate fior his excellent performance, especially in consideration of current difficult circumstances caused by the pandemic. He offered his condolences to Saratoga Spring resident Robert Healey's family for their loss. Councilmember Curtis Councilmember Curtis concurred that Mr. Jerome has proven his value to the City and supports a salary raise. He commended Mr. Jerome for facilitating Council understanding of City issues, outside perspectives, and organizations. Councilmember Clark Councilmember Clark noted that the Council will meet with Alpine School District and requested to hold a regional meeting with other cities to discuss regional issues and mutual concerns. She is excited to be able to begin holding in-person City events again soon. Mayor Westmoreland Mayor Vy'estmoreland stated that he has been in discussions with the leadership of other cities regarding a joint meeting. Mr. Mumford confirmed that a joint meeting is planned for the City Council and Planning Commission for March 30,2021. The City Council can request items to be added to the agenda. The City Council and Planning Commission have been invited to tour the Overland clubhouse. 20. CITY COUNCIL BOARD LIAISON REPORTS Councilmember Clark A ham radio license test will be held Saturday, March 27,202L The Federal Communications Commission will be raising the certification cost soon. She encouraged residents interested in certification to utilize online resources to study for the upcoming examination to become licensed before the price increase. The City will install a repeater on County land to extend the range of the ham radios in the City in efforts to increase emergency communication preparation. An emergency board might need to be established due to repeater licensing requirements. The Parks and Recreation Advisory Board held two meetings in a row with a quorum. She is excited about the variety of backgrounds, talents, and abilities of the board members. The members reviewed the parks and recreation plans for the City and visited the parks and were impressed with Parks and Recreation Director Brad Hickman's turf management. Councilmember Curtis None. Councilmember Bumham Councilmember Burnham said the Senior Citizen Advisory Board has a board member vacancy. They are a great group to work with and she encouraged interested residents to apply. Councilmember Love Councilmember Love said the Cemetery Advisory Board is planning a Memorial Day observance. The Eagle Mountain Chamber of Commerce is working to promote local businesses. The Chamber board members toured the Tyson facility, which will be a greal addition to the City. Eagle Mountain Counseling has an upcoming groundbreaking and Jo'Land Fun and Games has a ribbon cutting ceremony scheduled. Councilmember Gray Councilmember Gray expressed appreciation to the Youth Council. He is excited for Pony Express Days and the associated events such as the demolition derby and rodeo. He inquired regarding the selection of the Grand Marshal. Mayor Westmoreland Mayor Westmoreland met with a gentleman that would like to present a concept to the Cemetery Advisory Board, Military and Veterans Advisory Board, and the Parks and Recreation Advisory Board. He said that there is still a lot of work on the Freemont project and expressed his appreciation to the staff, especially the department heads, for their time and efforts on the project. Ms. Kofoed said that the Alpine School District joint meeting is scheduled for April 29,2021, at 7:30 a.m. She requested the Council inform her of any items they would like included on the agenda. She will follow up regarding the selection of the Grand Marshal. Mayor W'estmoreland announced that Communications Director Linda Peterson has accepted a position with Draper City. He wished her well and expressed gratitude to her for all that she has done for the City to keep residents informed and for promoting a positive image of the City. The Councilmembers recognized and thanked Ms. Peterson for the work she has done for the City. Ms. Peterson thanked everyone for their kind words. She said it has been an honor and privilege working for Eagle Mountain City and watching the City grow over the past 15 years. 2t COMMUNICATION T'TEMS 21.A. Financial Report 21.8. Upcoming Agenda Items 22 ADJOURNMENT

Councílmember Grøy moved to ødjourn the meetíng at 10:27 p.m" Councílmember Clørk seconded the motion. Those voting aye: Donna Burnhøm, Melíssa Clark, Colby Curtís, Jared Gray, ønd Cørolyn Love. The motion pøssed with ø unønimous vote.