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01/11/1990 - Minutes Minutes: Committee of the Whole Thursday, January 11, 1990 6: 30 - 7 : 30 p.m. City Council Conference Room 324 South State Street Salt Lake City, Utah 84111 In attendance: Ronald J. Whitehead, District One; Wayne Horrocks, District Two; Nancy Pace, District Three; Alan Hardman, District Four; Tom Godfrey, District Five; Roselyn Kirk, District Six; Don C. Hale, District Seven; Cindy Gust-Jenson, Executive Director; Palmer DePaulis, Mayor; Rosemary Curtin, Administrative Assistant; Dennis M. Sargent, Fire Chief Candidate; Steven Allred, City Attorney; George Sumner, Fire Marshall; and other Council and City Staff members and the press. FIRE CHIEF CANDIDATE INTERVIEW Alan Hardman, Council Chair, opened the meeting by reviewing the Council meeting agenda. Interview Dennis M. Sargent, Salt Lake City Fire Chief candidate. Councilmember Hardman asked Mr. Sargent if he had any comments. Mr. Sargent stated that he was pleased to be selected as the Mayor's candidate for Salt Lake City Fire Chief and that the Salt Lake City Fire Department has a good reputation that is nationally known. Mr. Hardman pointed out that each member had had the opportunity to meet with Mr. Sargent. Mr. Hardman then asked Cindy Gust-Jenson what steps remained for the decision of the new Fire Chief. Ms. Gust-Jenson stated that it was on the Agenda for Tuesday, January 16, 1990 and that the decision could be ratified at that time. Councilmember Kirk stated that she agrees with Mr. Sargent's concepts on communication and feels that the communication with the Fire Department would improve. LEGISLATIVE UPDATE BRIEFING Steven Allred briefed the Council on legislative issues. Mr. Allred presented a list of preliminary legislative items to the Council. Councilmember Hardman asked if the list provided superseded the previous list. Mr. Allred stated that this list did supersede the other and that the items listed were not prioritized and that this is a record setting session because of budget surplus issues. Mr. Allred then stated that the major first, second, and third priorities of the session is using the budget surplus for education and that this may create problems. Mr. Allred then began going down the list of items presented: Item One, Retirement. Mr. Allred stated that the proposed bill would consolidate the entire Utah State Retirement System, that this would give the City benefits without a cost increase and it was being reviewed because of new IRS restrictions. Item Two, Tort reform. Mr. Allred stated this bill was proposed because the University of Utah was charged with causing child birth defects during delivery of a baby and that the bill was presented to limit government immunity. Item Three, Jails. Mr. Allred stated this bill involves the University of Utah, State of Utah and Salt Lake City. He stated that there could be an increase in the state franchise tax to pay for costs of incarceration. Item Four, County Government Form. Mr. Allred stated that two pieces of legislation were expected on this issue. One bill being considered as an option is to create legislative body managers in Salt Lake County to replace the Salt Lake County Commissioners, as well as, nominating At Large Members for the unincorporated areas of Salt Lake County. Mr. Allred stated that Salt Lake City has not taken a position on this issue and that he would bring this issue before the Council when more information was available. Item Five, Hotel/motel Tax. Mr. Allred stated that bill would increase the room tax charged on hotels and motels in Salt Lake City to increase revenue. He stated that this is a very heated issue with the hotel and motel owners in Salt Lake City and that if it was placed before the Legislature that there would be a lot of opposition to the bill. Item Six, State Tax Commission Powers. Mr. Allred stated that this would involve a reorganization of the powers that the State Tax Commission has over franchise taxes it collects. Presently, the State Tax Commission distributes franchise taxes it receives, for the cities, in one lump sum payment at the end of the year and they do not pay any interest on this money. The bill being proposed would require that franchise tax payments be made quarterly and that the cities be paid interest on this money. Item Seven, School District Annexation. Mr. Allred stated that this would involve establishing school district boundaries and city boundaries that would not need to be consistent with each other. Item Eight, Taxation of gas lines. Mr. Allred stated this bill involves the taxation of gasoline lines outside of Salt Lake City that are used to transport gasoline to Salt Lake City. The bill proposes that a franchise tax be charged on gasoline lines which transport gasoline to Salt Lake City. Currently, the University of Utah, State of Utah and Salt Lake City are major users of these gas lines and do not participate in this franchise tax system. Item Nine, Salt Palace Restoration. Mr. Allred stated that Salt Lake County has budgeted $1, 000, 000 to facilitate funding for the Salt Palace Restoration, with $600, 000 annual debt service and a 2, 500, 000 deferral account the total yearly funding would be $3 , 100, 000. Discussions between the City, County and State are ongoing. Item Ten, Courts Complex. Mr. Allred stated that multiple bills are being presented to provide money to build a consolidated courts complex in Salt Lake City. Councilmember Godfrey stated that the Utah League of Cities and Towns should take a position on the bill. Mr. Godfrey also said that Salt Lake County and the School Districts do not support this action. Item Eleven, Special Improvement Districts. Mr. Allred stated that there are two bills being presented that would effect Special Improvement Districts. Bill One would create the ability to allow Special Improvement Districts to expand into other areas if the residents of the other areas desired to do so. Mr. Allred stated that presently there is no way for the Special Improvement Districts to expand. Bill Two would allow the Special Improvement Districts to decrease their reserve fund from 25% to 10%. Item Twelve, Fine Arts Complex. This bill would continue the States funding towards the Fine Arts Complex which Salt Lake City contributes towards. Councilmember Horrocks asked if the State was aware that we will not be contributing effective next year. Councilmember Kirk stated that we should meet and clarify with Salt Lake County that we will not be contributing effective next year. Cindy Gust-Jenson, Executive Director stated that we could notify Salt Lake City's Fine Arts Board on this issue. It was decided to notify the Fine Arts Board. Mr. Allred stated that the City needs to communicate more thoroughly with Salt Lake County on the budget. Item Thirteen, Criminal Activity. Mr. Allred stated these bills were being proposed by the Salt Lake City Police Department and requested the Security Officer present, Sargeant Connole to brief the Council on these proposed bills. Sargeant Connole stated that Item #1, Pawn Shops, would change the Pawn Shop Bill currently in force and allow Police Officers to try to sell stolen merchandise to Pawn Shops in an effort to control criminal activity. Item #2 , State Traffic Code, would change the classification for hit and run drivers from a Class A Misdemeanor to a stiffer penalty. Presently the penalties for DUI and other crimes which would cause a driver to leave the scene of an accident are stiffer than the hit and run penalty, therefore, the driver is more likely to leave the scene to avoid the stiffer penalty. Item Fourteen, C & B Road Funds. Mr. Allred stated that this bill would reduce the C & B road funds tax by 22 million for administrative use. To make up this difference, the Governor is proposing an increase in Driver License fees. Councilmember Pace asked about the Alliance Meeting. Mr. Allred stated that this was attached to another piece of legislation which will allow an amendment in the State's Constitution and that if it passes it will be placed on the November ballot. Councilmember Pace asked if it was likely to pass, Mr. Allred stated that it is mainly a rural issue. Councilmember Hardman asked Mr. Allred why the legislative items were not prioritized. Mr. Allred stated that the Legislature prioritizes the items. Councilmember Hardman then asked if anyone had any further questions. Councilmember Kirk stated that if Mr. Allred needed any help with lobbying to let the Council know. Councilmember Whitehead asked Mr. Allred if there were any bills that would eliminate non-pertinent issues from being submitted. Mr. Allred stated that there is a provision in force which allows some bills to be reviewed every few years for necessity but there was not a bill to eliminate non-pertinent issues at present. The Committee of the Whole meeting was then adjourned. Alan Hardman, Chair ATTEST: City Recorder sm qj sty opypwast OFFICE OF THE CITY COUNCIL CITY AND COUNTY BUILDING 451 SOUTH STATE STREET, SUITE 304 SALT LAKE CITY, UTAH 84111 535-7600 AGENDA Posted: 5:00 p.m. Wednesday, January 10, 1990 SALT LAKE CITY COUNCIL COMMITTEE OF THE WHOLE FETING DATE: Thursday, January 11 , 1990 TIME: 5:00 p.m. PLACE: City Council Conference Room City & County Building, Room 325 451 South State Street Salt Lake City, Utah The Council will interview Salt Lake City Fire Chief candidate Dennis M. Sargent. The Council will receive a legislative report from Steve Allred of the City Attorney's Office. cc: Mayor Palmer DePaulis, Mike Zuhl, Emilie Charles, Roger Cutler, Kathryn Marshall, Department Heads, Press PRELIMINARY LEGISLATIVE PACKAGE (Not Prioritized) 1 . Olympics (September & January) Assure that City is adequately represented and financially capable of pursuing Olympic bid. 2 . Retirement (September) Legislature intends to amend retirement act to eliminate discrimination between federal and public employees retirement consistent with United States Supreme Court decision. Some options could cost City additional funds . 3 . Tax limitation Governor continues to suggests that he wants local tax limitation including a "nonbinding" referendum on any local tax increase. 4 . Tort reform As a result of a recent Utah Supreme Court decision, it is anticipated that the plaintiffs ' bar will attempt to use this decision to limit governmental immunity. An ad hoc group of state, county, city, UAC, League and school districts'thave been meeting and have a draft of legislation which may be submitted as a defensive measure. This legislation would create a super-pool to handle out-of-pocket damages in excess of the statutory governmental immunity limits . 5 . Jails The state task force on jails has prepared legislation to submit to the next session. It provides (a) Counties operate jails (b) Counties can increase their general fund mill levy ceiling by an undetermined amount to cover the increasing cost of jails . (c) COurts cannot sentence state prisoners to jail. (d) State can contract with jails for space but cannot displace local prisoners and must pa ix: cost of incarceration. lc�ti 6 . County government form The City will obviously be drawn into Jack Gallivan' s attempt to change the County form of government. 7 . Hotel/motel tax It is almost certain that hotel/motel association will make another attack on innkeepers ' tax. 8 . State tax commission powers The state tax commission acts as a collecting agent for the City sales tax. Not only does the commission not pay the City interest on our funds but it is also compromising our taxes in confidential settlement agreements with certain large taxpayers . 9 . Sales tax exemptions . The current sales tax provides for numerous sales tax exemptions and no one knows the costs of these exemptions nor the value. Proposed legislation would eliminate exemptions and make them deductions which would have to be applied for and could be monitored. 10 . School district annexation Proposed legislation would cure annexation problem that requires school boundaries to be identical to City limits . 11 . Parking ticket lien Proposed legislation would allow City to file tickets with Department of Motor Vehicles and filing would create a lien on car. Car could not be registered until lien was cleared. 12 . Taxation of gas lines Legislation needed to provide for imposition of utility revenue tax for natural gas delivered to City user where delivery takes place outside City boundaries . -2- 13 . Condemnation enhancement offset Legislation would allow for enhanced value of parcel remaining after condemnation to be offset against condemnation award. -3- PRELIMINARY LEGISLATIVE PACKAGE (Not Prioritized) 1 . Retirement (September) Legislature intends to amend retirement act to make various substantive changes. City input will be vital. 2. Tort reform -- $250,000 As a result of a recent Utah Supreme Court decision, it is anticipated that the Plaintiff's bar will attempt to use this decision to limit governmental immunity. An ad hoc group of state, county, city, UAC, League and school districts have been meeting and have a draft of legislation which may be submitted as a defensive measure. This legislation would create a super-pool to handle out-of-pocket damages in excess of the statutory governmental immunity limits. 3. Jails The state task force on jails has prepared legislation to submit to the next session. It provides (a) Counties operate jails (b) Counties can increase their general fund mill levy ceiling by an undetermined amount to cover the increasing cost of jails. (c) Courts cannot sentence state prisoners to jail (d) State can contract with jails for space but cannot displace local prisoners and must pay cost of incarceration. It. County government form The City will obviously be drawn into attempts to change the County form of government. 5. Hotel/motel tax It is possible that hotel/motel association will make another attack on innkeepers' tax. 6. State tax commission powers A. The state tax commission acts as a collecting agent for the City sales tax. Not only does the commission not pay the City interest on our funds but it is also compromising our taxes in confidential settlement agreements with certain large taxpayers. B. The City is also seeking expedited payment form the Tax Commission. 7. School district annexation Proposed legislation would cure the annexation problem that requires school boundaries to be identical to City limits. 8. Taxation of gas lines Legislation needed to provide for imposition of utility revenue tax for natural gas delivered to City user where delivery takes place outside City boundaries. 9. Salt Palace Expansion Legislation would formalize proposal for state, county, city and private sector funding for $60 million expansion 10. Courts Complex Multiple bills would appropriate $7.8 million for Phase I of a consolidated courts complex in Salt Lake City. Certain RDA technical amendments may be required. 11 . Special Improvement Districts A. Downtown Business Alliance B. Reserve accounts 12. Fine Arts Complex Continue state share of funding 13. Criminal activity A. Pawn Shop B. State Traffic Code 14. C & B road funds Support restrictive account for drivers' license fees which facilitate a $9 million reduction in highway tax diversion. • PALMER DEPAULIS �...li" Walt- MAYOR .!•.- __ _ -. ' �' OFFICE OF THE MAYOR ` CITY AND COUNTY BUILDING" 451 SOUTH STATE STREET,,ROOM 306 SALT LAKE CITY,UTAH 84111 TELEPHONE 535-7704 January 9 , 1990 Alan Hardman , Chair Salt Lake City Council 451 South State Street Salt Lake City , UT 84111 Dear Alan : After a national search and intensive interviews I have selected Dennis M. Sargent, former Fire Chief of Myrtle Beach , South Carolina , to be Salt Lake City Fire Chief. Dennis was the Myrtle Beach Fire Chief from 1986 to 1989 . In that capacity , he was responsible for providing fire protection and emergency medical services to a population that ranges from 30 ,000 people in the winter to more than 350 ,000 during the summer months . In addition , while Fire Chief, Dennis initiated an advanced life support emergency medical program and a community fire education program. Dennis ' record is outstanding and I know he will be a fine Fire Chief for Salt Lake City . I would appreciate your consideration of this appointment and ask that it be scheduled on the Council ' s agenda at the earliest convenience . Sincerely , ieem, .(1?",(XJL Mayor PD/EC : jf