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02/13/2018 - Work Session - Minutes MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, FEBRUARY 13, 2018 The City Council met in Work Session on Tuesday, February 13, 2018, in Room 326, Committee Room, City County Building, 451 South State Street. In Attendance: Council Members James Rogers, Andrew Johnston, Chris Wharton, Derek Kitchen, Erin Mendenhall, Charlie Luke, and Amy Fowler. Staff in Attendance: Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno, Council Executive Deputy Director; Jacqueline Biskupski, Mayor; Patrick Leary, Mayor' s Chief of Staff; David Litvack, Mayor' s Deputy Chief of Staff; Mary Beth Thompson, Finance Director; Lisa Shaffer, Public Services Director; Rusty Vetter, Deputy City Attorney; Benjamin Luedtke, Council Public Policy Analyst; Matthew Rojas, Mayor' s Director of Communications; Mike Reberg, Community and Neighborhoods Director; Dawn Wagner, Community and Neighborhoods Engineering Project Manager; Nicholas Daniels, Community and Neighborhoods Public Ways Asset Manager; Allison Rowland, Council Public Policy and Budget Analyst; John Vuyk, Budget Director; Lisa Packwood, Finance Revenue and Collections Director; Marina Scott, City Treasurer; Nole Walkingshaw, Public Services Administration Deputy Director; and Kory Solorio, Assistant City Recorder. Councilmember Mendenhall presided at and conducted the meeting. The meeting was called to order at 4 : 14 p .m. AGENDA ITEMS #1 . 4:14:29 PM BRIEFING REGARDING AN UPDATED INTERLOCAL COOPERATION AGREEMENT WITH THE COUNTY REGARDING THE OPERATION OF THE SORENSON MULTICULTURAL CENTER, SORENSON UNITY CENTER AND STEINER WEST POOL LOCATED AT 855 WEST CALIFORNIA AVE . The proposed contract details the terms for management, programming, capital improvement, and maintenance of the Sorenson Campus. View Attachments Allison Rowland, Lisa Shaffer, and Noel Walkingshaw briefed the Council with attachments . Discussion was held regarding utility costs/uses, costs covered by Salt Lake County, use of tourist/recreation/cultural/convention money, contract operation and maintenance cost coverages, and potential onsite property management. 18 - 1 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, FEBRUARY 13, 2018 Councilmember Mendenhall said a public hearing would be held February 20, 2018 with tentative action on March 6, 2018 . #2 . 4:34:50 PM BRIEFING REGARDING THE 2017 PAVEMENT CONDITION REPORT, AN EXTENSIVE STUDY OF SALT LAKE CITY' S STREETS. The report assigns a condition rating to each City-owned street and includes recommendations for prioritizing repairs. The report found that 64 percent of City-owned streets were in "Poor" or worse condition. View Attachments Benjamin Luedtke, Mike Reberg, Dawn Wagner, and Nicholas Daniels briefed the Council with attachments . Discussion was held regarding 80/20 percent funding scenario split/ratios, potential of funding scenarios future payoff, maintenance prioritization, potential of a five-year plan/funding scenario prioritizing maintenance by Council Districts, funding distribution perception issues, inclusion of Redevelopment Agency (RDA) areas for funding supplementation, concern with manpower/maintenance funding for streets in the Northwest Quadrant, complete streets potential, budget scenario assumptions, creating/building policy with flexibility to guide future Councils, rolling bond funding scenario, study requirement for dramatic funding increases, goal setting, capacity to implement projected funding/costs with current staffing, Urban Forestry component, and other components for costs/funding opportunities . Council Members requested the following items from Staff: • Provide percentage/costs of project spectrums . • Provide dashboard goals to assess current status . • Provide updates on the progress of the 80/20 split (how arterial looks versus roads, different percentages) . • Follow-up regarding the Urban Forestry component, provide an analysis if Urban Forestry fits or if there was an assisting ability component to address opportunities . • Demonstrate City-wide reach of work and the ability to articulate the work (in the five-year plan or any funding scenarios) . • Overlay RDA areas to maximize finance collaboration opportunities . • Consider the Northwest Quadrant area as a potential Special Assessment Area (SAA) and anticipate any unanticipated costs for development. • Provide information for assumptions made in the $20 million 18 - 2 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, FEBRUARY 13, 2018 scenario and the inclusion of anything that was not assumed/built into the scenarios (inflation, four percent maintenance increase, etc. ) . • Provide clarity on Staffing upgrade needs at the high-level scenario. • Provide a green infrastructure component . • Coordinate a ride along with Street Department crews . #3. 5:23:42PM BRIEFING FROM STAFF REGARDING THE CITY' S BUDGET TOOLS AND POTENTIAL FUNDING NEEDS IN THE COMING YEARS . View Attachments Cindy Gust-Jenson stated it was perceived the City had resources/funds to consider how to use; however, the reality was that the City did not have adequate money going forward into the new budget without making cuts or adding a new revenue source . Councilmember Mendenhall said it was fitting to indicate (at the top of the long-term funding needs list) the structural gap and that priorities happened to fall below that, because the reality was that if nothing was adjusted or added (no new revenue streams) the budget could not be balanced this year. She said there was at least an $8 million shortage for the upcoming budget. Jennifer Bruno, Benjamin Luedtke, Mary Beth Thompson, John Vuyk, and Marina Scott briefed the Council with attachments . Discussion was held regarding sales tax distribution percentages, comfort with principle uses of one-time funding/fund balance, funding tools (a property tax increase and additional sales tax option) , potential revenue with a sales tax funding option, potential General Obligation Bond opportunity, sales tax revenue versus property tax revenue, potential transportation utility fee, timeline for implementation of a sales tax increase, concern with west side mitigation, overall mitigation impact/issues City-wide, potential primary use of a sales tax increase for frequent transit network, funding goals, look at the base/core budget including fund balance (were things being considered which were not core to priorities) , and considering new funding opportunities going forward to establish levels/measures of success . Council Members requested the following items from Staff: • Consider a potential transportation utility fee. • Provide legal clarity on a potential sales tax option as defined by State Code in order to help guide discussions on west side mitigation. 18 - 3 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, FEBRUARY 13, 2018 • Consider west side mitigation, projects, and what mitigation would look like. • Consider base budget considerations around new money. #4 . 4:26:57 PM BRIEFING BY THE ADMINISTRATION REGARDING ISSUES AFFECTING THE CITY THAT MAY ARISE DURING THE UPCOMING 2018 STATE LEGISLATIVE SESSION. View Attachments David Litvack briefed the Council . Discussion was held regarding the State Legislative timeline to address governance issues regarding the Northwest Quadrant, inclusion of property owners in the Northwest Quadrant, and achieving shared goals . #5 . 7:03:59 PM DISCUSSION WITH MAYOR JACKIE BISKUPSKI AND ADMINISTRATIVE STAFF REGARDING THE UPCOMING 2018-19 FISCAL YEAR BUDGET. In planning for the upcoming annual budget, the Administration will provide information about current fiscal year budgets, upcoming budget items, and coming year priorities. View Attachments Councilmember Mendenhall said the purpose of this discussion was to get clarity from Finance on the structural gap being faced and to further discuss financing tools and sales tax opportunities . Mayor Biskupski said focus had been given to funding for affordable housing, transit, infrastructure, and public safety. She said there were projections and opportunities included within those and where to figure out the path forward. She said she talked about the format of a General Obligation Bond (as one time money to inject into needs) and a potential tax increase (as an on-going funding stream) needed to define the future of Salt Lake City to match growth and opportunity. Mayor Biskupski, Mary Beth Thompson, John Vuyk, and Lisa Packwood briefed the Council with attachments . Discussion was held regarding business license exemption fee impact, expense projection variances, personnel budget percentage costs, decreased revenue projections/potential structural gap, proposed Prosecutor' s office funding, cost-per-resident for potential sales tax increase, transportation utility fee/property tax stabilization, and consideration of potential revenue options . Councilmember Mendenhall said funding conversations would continue with the Administration as the Council' s priority discussions continued. She thanked the Mayor for being involved in 18 - 4 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, FEBRUARY 13, 2018 the budget discussions . She said the Council had many priorities and recognized the deficit they were working with. She said as the Mayor prepared her budget, the Council hoped to continue to collaborate. Council Members requested the following items from Staff: • Provide percentages of sales tax collected from residents and visitors to the City. • Discussion between Council Staff and Finance Staff to consider various options within the General Obligation Bond funding range. #6 . TENTATIVE - NORTHWEST QUADRANT AND GLOBAL TRADE PORT FOLLOW-UP. The Council may receive an update about the Northwest Quadrant and Global Trade Port. View Attachments Item not held. STANDING ITEMS #7 . 7:56:14PM REPORT OF THE EXECUTIVE DIRECTOR, INCLUDING A REVIEW OF COUNCIL INFORMATION ITEMS AND ANNOUNCEMENTS. The Council may give feedback or staff direction on any item related to City Council business, including but not limited to scheduling items. See File M 18-5 for announcements . #8. REPORT OF THE CHAIR AND VICE CHAIR. No discussion was held. #9 . CONSIDER A MOTION TO ENTER INTO CLOSED SESSION, IN KEEPING WITH UTAH CODE §52-4-205 FOR ANY ALLOWED PURPOSE . Item not held. The meeting adjourned at 7 : 58 p .m. COUNCIL CHAIR 18 - 5 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, FEBRUARY 13, 2018 CITY RECORDER This document is not intended to serve as a full transcript as other items may have been discussed; please refer to the audio or video for entire content pursuant to Utah Code §52-4-203 (2) (b) . This document along with the digital recording constitute the official minutes of the City Council Work Session meeting held February 13, 2018 . ks 18 - 6