TOWN OF MANILA PUBLIC HEARING-REGULAR MEETING TOWN COUNCIL MEETING ROOM 145 E HWY 43 OCTOBER 11, 2018 AT 6:30 P.M. MINUTES

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1 1 P a g e MINUTES PUBLIC HEARING CALLED TO ORDER AT: Mayor David Coombs called the meeting to order at PRESENT: Mayor David Coombs, Council Member Gretchen Northcott, Council Member Randall Browning, Council Member Greg Scott, Council Member William Rylander, and Town Clerk Marlena Connor GUESTS: Jeff McCarty, Eyvonne Long, Cheyenne Brown, Steve Tolson, Diane Miller, Erik Bailey, Wes Moser, Blenda Larsen, George Rawson, Jason Waterson, Wendy Hollinger, Tim Hollinger, and Marcus Keller with Zions Public Finance Municipal Consultants TO RECEIVE PUBLIC COMMENT ON WATER & SEWER RATE INCREASES: Council Member Gretchen Northcott stated that she thought it would be helpful to have Marcus Keller with Zion s Public Finance Municipal Consultants come to the meeting to help explain the water rates, & give out a handout. Marcus Keller gave a history as to why the rates are going to be increasing. The Town of Manila has been doing a lot of water & sewer projects to update the system as well as to get it working functionally in some areas. Council Member Gretchen Northcott went to the community impact board to obtain the lowest interest loans that she could. If the Council had not pursued some of the different avenues, the rates would have been a lot higher. Marcus Keller asked what the loan to grant value was on the water project. Council Member Gretchen Northcott said total project cost was 1,942, with some self-participation; it was a 50/50 grant/loan split with a 2.5 % interest for 30 years. The sewer was just over 2.5 million dollar project with a 50/50 grant/loan split at 2.5% interest for 30 years. Council Member Gretchen Northcott said that the CIB was really generous; they had closed their books for the year, & reopened them up for the Town of Manila. Council Member Gretchen Northcott stated just for comparison that they had looked into a funding package with USDA rural development their offer was a 2% grant 98% loan for 40 years. Marcus Keller stated that the Town Council had done a really good job in trying to mitigate how much the bills will go up. Marcus explained why the utility rates have to go up to the public; When the Town entered into these agreements with CIB to issue the bonds with the 50% grant & 50% loan the Town of Manila received at 2.5 % (which are really low in today s standards in the market) future revenues are to be 1.25% times higher than your debt service. To put it more simply, you cannot pay off a dollar with a dollar, you have to have 1.25, to save extra revenue, to put towards future projects, so the town is not constantly issuing bonds, or going into more debt. The rates that are assigned are to keep the town within that 1.25 & 1.5 times coverage for right now, but as expenses come up, they are projected to increase slightly over the next few years. Marcus Keller said that what had been presented is not the final; the town council has the right to make any changes. The proposed numbers are what Zions Financial suggested from all of the numbers & analysis. This is very close to where the town should be in order to meet its covenants & save up a little money.

2 Marcus Keller explained the handout given to the public. The increases are going up across the board for everyone, so the debt obligation can be paid back to the state. The handout shows table 1 is for proposed fixed base rates. The new proposed base rate is $44.50 for up to 7,000 gallons. About 80% of residents use around 6,000 gallons per month. Table 2 shows culinary water volumetric rates (per the state of Utah s conservation effort), & table 3 is for sewer rates. Tim Hollinger stated that since the usage was lowered, & the town is asking the people to keep their yards green. Tim Hollinger said that dropping from 13,000 gallons down to 7,000 gallons is tremendous. What kind of leeway is there? Council Member Gretchen Northcott stated that the original proposal was to go down to 5,000 gallons, & the council decided to add another 2,000 gallons. That would be up to people if they chose to or not, of course, everyone wants things to look good. Some people will have some excess, & they need to look at: what time of day, what kind of sprinkler heads they are using, if they have any leaks in their system (the Town Clerk, Marlena Connor helps with that), & that tightens up the ship a little bit as far as a balance between what is reasonable, what is being charged for the bond payments, and allow for a little more leeway. Marcus Keller also explained that it is $1.95 per 1,000 gallons over the allotted 7,000 gallons. Council Member Gretchen Northcott said it is basically user pay, if you want to use more, you are more than welcome to use it, but it is going to cost you a little bit more. Marcus Keller explained that with the new water & sewer project if a rate increase does not happen, the town would not be able to reach its coverage, & would have to start pulling from its reserves to pay the debt, this is essential for the Town of Manila is in a good financial situation moving forward. Eyvonne Long asked how much the new bond payments are. Marcus Keller stated that he thought the new sewer payment would be around $65, a year, & the water project is going to be around $55, a year. Eyvonne Long asked Marcus Keller to explain more about the mobile home parks. Marcus Keller explained how they came up with the $ $27.76 per each additional unit. The state law directs municipalities, to not charge the mobile home parks the same rate as a regular residential rate, because typically lower income families live at the mobile home parks, so they want to give a little bit of a reduction to those residents. When adding the amount of the sewer pipe & depreciating it, the analysis says the mobile home park should be charged around 75% of a single residential home, & credit is a little better on the water side. The biggest projected increase in a mobile home park will be on the water side. Wendy Hollinger asked how it would work with a campground. Marcus Keller told Wendy Hollinger that it would be up to the town to decide. They could go on occupancy or availability of connection. Marcus Keller stated that the Daggett County Jail may be another one that they want to have a special conversation too, because their price is a little different, & we might not want to give a reduction because there is a bond that is specifically attached for the Daggett County Jail s sewer. Council Member Gretchen Northcott said that the bond is paid by Daggett County to the Town of Manila because the town had put the sewer in over there specifically for them. Sheriff Erik Bailey said that if the jail is going to be a topic, he would like to be included in on that since it affects him directly as the sheriff. 2 P a g e

3 3 P a g e TOWN OF MANILA PUBLIC HEARING-REGULAR MEETING Marcus Keller said that another thing that happens typically in small towns is the where people will leave for up to 6 months & say that they don t want to pay, in this case, we are trying to discourage this. What people need to realize is regardless of whether they are there or not, they have the availability, the infrastructure has been put in place & paid for through bonds, or cash on hand, but the payment from them is needed & anticipated to pay off the bond proceeds. So a little bit of discouragement will be the disconnect/reconnect fees. Wendy Hollinger asked, what about rentals? Marcus Keller told her that this would be applied to rentals as well, they are a part of the system, and they are accounted for just like a typical single-family home/residence. Council Member Gretchen Northcott said that she has a couple of rentals & rather they were vacant or not they still had to pay the water/sewer bill. Marcus Keller said, what people don t understand is it is not rather you are using it, the water itself is the relatively cheap part of the process, it s getting you the water & maintaining the infrastructure, maintaining the wells, maintaining the water treatment & all of the facilities. Wendy Hollinger said, what she meant was do you have to pay a reconnect every time someone moves out. Marcus Keller explained that that is not what the disconnect/reconnect fee is intended for. That would be up to the town. Tim Hollinger wanted the council to know as a business owner & residential owner, that this really needed to be done, & he is glad it got done, & he thinks from what has been put together & what he had heard that night that he is happy with the results & presentation with Marcus Keller. Erik Bailey stated that he seconded that. With recently dealing with some other rate hikes, the Town of Manila was far more prepared. Council Member Gretchen Northcott said that the Town s infrastructure is so much better now. Mayor David Coombs addressed a few of the county residents & their circumstances, about raising the rates, & how it will be easier for the town to look at future expansions such as their area. The town has got to make the system pay for itself before they start looking at any future expansions first. Council Member William Rylander stated that he has owned several properties that were commercial & residential, & these rates are very reasonable. Marcus Keller stated that there are a few more changes to look at such as commercial & mobile home parks going forward. They feel comfortable with the residential rates. Council Member Gretchen Northcott asked if there was anyone that had any public comments, & signed up. Mayor David Coombs called on Eyvonne Long. Eyvonne Long stated that after listening to Marcus Keller explain everything, she really appreciated it, & it has answered her questions, & if Town Council approves it like it is, she is fine with it. Eyvonne Long stated that it is fairer than the information she had received a few weeks prior to the meeting, & to disregard her letter. Mayor David Coombs called on Tim Hollinger. Tim Hollinger had most of his questions answered, but he s still trying to figure out the rates for the county residents. Marcus Keller stated that they follow a structure based on prior analysis as well, Daggett County & Sweetwater County, WY residents, this is more of an expense for the town, & not really a requirement because the town is supposed to serve within their boundaries, but for them to go above & beyond they need to make sure that it is being paid for by the residents that are receiving it outside of the town limits. That is typically why there is a little bit more of an increase between those receiving water inside the town limits verse those receiving water outside of the town

4 limits, or even outside the state because it is more expensive for the town to maintain. Council Member Gretchen Northcott stated that the CIB money is Utah tax money, & Wyoming residents that the town services don t pay into the money, they don t pay into the state so they don t pay for the grant that the town just received, & that is another reason why they pay a little more, to keep it more equitable. Marcus Keller also said that a $4.00 increase on $52.00 for county/wyoming residents is a lower percentage than the $37.00 to $44.50 town s residents on the base adjustment. Mayor David Coombs called on Erik Bailey. Erik Bailey said it was just in case he had something he wanted to say, but he did not. ADJOURNMENT: Council Member Randall Browning moved to adjourn the meeting. Council Member Gretchen Northcott seconded the motion. All were in favor. Mayor David Coombs adjourned the meeting at 7:56 P.M. TOWN COUNCIL REGULAR MEETING REGULAR MEETING CALLED TO ORDER: Mayor David Coombs called the regular meeting to order at 7:33 P.M. PRESENT: Mayor David Coombs, Council Member Gretchen Northcott, Council Member Randall Browning, Council Member Greg Scott, Council Member William Rylander, & Town Clerk Marlena Connor GUESTS: Jeff McCarty, Eyvonne Long, Cheyenne Brown, Steve Tolson, Diane Miller, Jason Waterson, Wendy Hollinger, Tim Hollinger, and Marcus Keller with Zions Public Finance Municipal Consultants CONSENT CALENDAR: Council Member Randall Browning moved to approve the consent calendar consisting of payroll hour listing, budget worksheet, invoice register, transaction register, revenue analysis &, September 13, 2018 minutes. Council Member Greg Scott seconded the motion. All were in favor. The motion carried. JASON WATERSON WITH UTAH LOCAL TRUST TAP AWARD: Jason Waterson with Utah Local Trust brought the Town of Manila the TAP (trust accountability program) award for the second consecutive year. Utah Local Trust partners with local governments around the state for insurance, & other products. Jayson Waterson works in loss prevention to help entities avoid getting sued, having employees get injured etc. The TAP & Jason Waterson helps the town put those things in place such as safety meetings with employees. The town earns part of the liability premium money back & a discount of 3% on the worker s comp premiums by doing the meetings, this year the town received a check for $ P a g e

5 MANILA HIGHSCHOOL STENCIL: Cheyenne Brown came to the Town Council to see if they would be interested in receiving a spray-painted Manila Mustangs stencil to help support the local cheerleaders. Council Member Greg Scott moved to approve 3 large stencils at $25.00 each equaling $ Council Member Randall Browning seconded the motion. All were in favor. The motion carried. ADDENDUM: WATER/SEWER RATES: The council discussed the rates for motels & the KOA. The proposed methodology that is already in effect for motels (4 rooms/units equals 1 connection) but changed from the commercial rate to a residential rate (4 RV spots/units equals 1 connection). Zions proposed to change the KOA billing from occupancy reports to how many available units on the 4 to 1 ratio. The KOA & motels would be charged the residential amount of $44.50 every 4 units, but they would get the commercial master meter usage allotment of 13,000 gallons, & do the same for sewer. Mobile home parks will be based on the commercial master meter with 13,000 gallons allotted. The base fee on 19 units would be $ every month plus overages. Council Members Randall Browning & Gretchen Northcott ran some numbers to see what would be fair for the mobile home parks and will continue to work on the rates for mobile home parks. Town Council wants to make sure that everything is fair & equitable for everyone involved. Marcus Keller stated that he had good notes to work off of, & go back & make revisions on everything that had been discussed. Council Member Greg Scott asked if the council wanted to make any changes on the stock meters that the ranchers are using. Council Member Gretchen Northcott agreed that they should be paying for water usage as well. Marcus Keller stated that the stock meters should be set at a commercial rate. The Council agreed. Wendy Hollinger asked, if her math is right, the KOA would be paying $ a month even when they are closed. Marcus Keller asked how many connections they have. Wendy Hollinger stated that the KOA has 32 RV spots with available water/sewer hook-ups. Marcus Keller said that would be 8 residential connections, & so that would be $ Wendy Hollinger stated that it would be cheaper to just turn the water off in the winter when they are closed if there is a $ disconnect fee. Marcus Keller said that they would still have to pay 80% of the water bill during the time that it is disconnected, and also with it being changed from a commercial billing to a residential billing, it may be a little lower. APPROVAL OF CONTRACTING WITH SUNRISE ENG. FOR ADDITIONAL WORK FOR LANDFILL CLOSURE PLAN: Mayor David Coombs explained that the Town of Manila needed to do some additional work with Sunrise on the landfill master plan. The state went out & inspected the landfill, & is working with the town. Jeff McCarty tried to tell them that the closure plan the town had recently had done covered everything that a master plan would cover. Jeff McCarty said that Roy Van Os has not got back to them about whether he accepts that. Council Member Gretchen Northcott said that there is a large permit that has to be done, & they had talked about hiring Sunrise to do the permit as well. Mayor David Coombs stated that the state has accepted some older permit information at this point, but there is some testing that needs to be done. Mayor David Coombs said that they would need to clarify with Roy Van Os & Sunrise Engineering as to whether or not they need to do any more on that or if what was sent will be sufficient. Jeff McCarty said he believes that we are at a point that the town needs to wait 5 P a g e

6 & see what Roy Van Os will require the town to do. Council Member Gretchen Northcott asked Jeff McCarty to ask Roy Van Os about the permit, because they cannot let this fall through the cracks, or they will lose the permit. Council Member Gretchen Northcott motioned that once they receive the specks on from Roy Van Os as far as the additional master plan & the permitting process that they allow Sunrise to finish that for the Town of Manila if needed. Council Member William Rylander seconded the motion. All were in favor. The motion carried. CONSIDERATION OF RESOLUTION NO : A Resolution amending the weekly curbside household waste collection & dumping fees for accessing the Manila Class II landfill and other necessary changes to solid waste management. Town Council discussed the option of offering Harpers Landing residents the option to have the Town pick up their garbage. Council member Gretchen Northcott said that she & Council Member William Rylander have been working on the solid waste management ordinance, & it was really outdated. There are 37 pages of the ordinance, & other cities ordinances are only a few pages long. Council Member Gretchen Northcott is looking at adding a fee for people who show up to the landfill without their load secured. Containers are already required in the ordinance, the town does not accept lose garbage, all household waste must be bagged, & secured in containers with lids so animals don t get into the refuse & spread around. The council is looking at changing the rates for the trucks, & trailers, & adding sizes. The Council is going to look at getting a legal intern to help make sure the ordinances are accurate, & what the town needs. Council Member Gretchen Northcott is going to continue to work on this ordinance. CONSIDERATION OF RESOLUTION NO : Water & Sewer Rates Council is still working on this resolution, this item was tabled until the next Town Council meeting. FLAMING GORGE ROADS & TRANSPORTATION SPECIAL SERVICE DIST. APPROVE FUNDING: Mayor David Coombs contacted Ross Catron who put together the original 5-10 year plan & updated it for the town. Mayor David Coombs asked the council members to read through & see if they have any questions about it. There is still $10,000 to buy culverts. Mayor David Coombs stated he needed to know if the changes that Ross Catron had made are okay. If so he ll have it sent to Vicky Mckee. Council Member Gretchen Northcott moved to accept the updated Town of Manila Road Management Plan, Council Member William Rylander seconded the motion. All were in favor. The motion carried. TRT DISCUSSION: Council Member William Rylander has been working on the TRT (transient room tax) he stated that by state law municipalities may impose a tax not to exceed 1% of charges for the accommodations & services described in the code. If the town were to use it for bonds, & loans the town could charge another.50%. Council Member Gretchen Northcott said she wondered if the town could generate enough money to pay off the MBA bond with the.50%. Council Member Randall Browning said that it looks like the town already receives the TRT, & what the town is looking to do is the TM (municipal tourism tax) & the TT (tourism tax). Council Member Gretchen Northcott asked Council Member William Rylander to see how the TRT tax is 6 P a g e

7 collected & disbursed. The Council also needs to put an ordinance together for the TRT. Council Members asked the Town Clerk, Marlena Connor, to call the state tax commission & ask about the TRT, & if the town is receiving any of it. EXECUTIVE SESSION: Council Member Greg Scott moved to go into the executive session. Council Member William Rylander seconded the motion. Town Council went into executive session at 9:05 P.M. ROLL CALL: MAYOR COOMBS, COUNCIL MEMBERS, NORTHCOTT, BROWNING, SCOTT, & RYLANDER RECONVENED: Town Council reconvened the regular meeting at 9:21 P.M. ADJOURNMENT: Council Member Gretchen Northcott moved to adjourn the regular meeting. Council Member seconded the motion. All were in favor. The motion carried. Mayor David Coombs adjourned the meeting at 9:22 P.M. DAVID G. COOMBS, MAYOR MARLENA CONNOR, TOWN CLERK 7 P a g e