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06/13/2017 - Work Session - Minutes MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 The City Council met in Work Session on Tuesday, June 13, 2017, at 2 : 43 p.m. in Room 326, Committee Room, City County Building, 451 South State Street. In Attendance: Council Members Erin Mendenhall, Derek Kitchen, Stan Penfold, Charlie Luke, Lisa Adams, James Rogers, and Andrew Johnston. Staff in Attendance : Cindy Gust-Jenson, Executive Council Director; Jacqueline Biskupski, Mayor; David Litvack, Mayor' s Deputy Director; Jennifer Bruno, Executive Council Deputy Director; Margaret Plane, City Attorney; Mike Reberg, Community and Neighborhoods Department Director; Lehua Weaver, Executive Council Assistant Deputy Director; Benjamin Luedtke, Council Public Policy Analyst; Russell Weeks, Council Senior Public Policy Analyst; John Vuyk, Budget Director; Jesse Stewart, Public Utilities Department Deputy Director; Nick Norris, Planning Manager; Anthony Riederer, Principal Planner; John Anderson, Principal Planner; Clair Baldwin, Assistant Fire Chief; Tim Doubt, Assistant Police Chief; Julio Garcia, Human Resources Department Director; Mary Beth Thompson, Finance Director; and Cindi Mansell, City Recorder. Councilmember Penfold presided at and conducted the meeting. 2:43:28PM The meeting was called to order at 2 : 43 p.m. AGENDA ITEMS #1 . RECEIVE A WRITTEN BRIEFING ABOUT AN ORDINANCE CLOSING A PORTION OF 800 WEST STREET BETWEEN APPROXIMATELY 740 NORTH AND THE TERMINATING CUL-DE-SAC PURSUANT TO PETITION NO. PLNPCM2016-01008 . The section of street is not needed or used for property access, circulation or parking. The proposal would allow for the development of a community center that would serve immigrants and refugees. If adopted, the status of the property would be changed from a public street to a City-owned parcel and the City would transfer ownership to the Good Samaritan Foundation a non-profit that provides employment counseling, English language courses, citizenship classes, after-school tutoring, and walk-in support on issues ranging from health care to navigating the public transit system. (Petitioner: Salt Lake City Real Estate Division) . View Attachments Item Pulled; Written Briefing Only. 17 - 1 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 #2 . 2:45:27PM RECEIVE A BRIEFING ON UNRESOLVED ISSUES RELATING TO THE RECOMMENDED BUDGET FOR FISCAL YEAR (FY) 2017-18 . View Attachments Cindy Gust-Jenson, Margaret Plane, Jennifer Bruno, Lehua Weaver, Mike Reberg, and David Litvack briefed the Council with attachments and a Power Point presentation. Ms . Bruno said the final property tax information from the State Tax Commission resulted in a $1, 068, 609 shortfall from what was included in the Mayor' s Recommended Budget for the General Fund. She said the new growth for property tax was $1, 531, 237, rather than the $2, 599, 846 included. She explained this year was the first budget cycle with the new Utah State law in effect, and there was a nuance as to how growth in personal property was accounted for (which was different from last year) , and from what was discussed in the 2016 legislative session. She said an additional $216, 000 shortfall had also been noted in judgement levy revenues . She said overall, there was need to find $1, 284, 609 in cuts to expenses as well as authorize the same amount in revenue, and Staff had prepared information for Council consideration of how to best balance the budget. Discussion followed regarding the late notice by the State Tax Commission, how the City calculated its revenue estimates, and how to deal with the final budget shortfall . Ms . Bruno explained the budget was always presented not knowing the actual property tax; however, Utah State Code mandated this amount be communicated annually as of June 8 . Ms . Bruno said the Mayor and Administration had recommended moving forward to fill in with the property tax stabilization concept of extending it closer to the actual revenue received in Fiscal Year 2017 . She said $3 million was included in the Mayor' s Recommendation for "Property Tax Stabilization" in addition to the amount for New Growth in order to capture (on an on-going basis) actual revenues that were received above the adopted budget . Ms . Bruno clarified the City had also taken this approach in Fiscal Years 2009, 2010, and 2016 . She continued if property tax revenues came in higher than budgeted for a given fiscal year, the money would in effect become "one time" money, unless the City underwent a Truth in Taxation hearing to raise its official property tax budget by the same amount. Ms . Bruno said in Fiscal Year 2017, the City received $4 . 5 17 - 2 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 million in property tax revenue above what was budgeted. She said this was likely due to an increase in the number of people actually paying their property taxes, but also likely due to businesses expanding and paying more on personal property such as copiers and other business equipment. She said the Mayor' s Recommended Budget recommended continuing $3 million of the $4 . 5 million in additional actual revenue on an ongoing basis; however, the Council could choose to increase the amount. Ms . Bruno said Staff discussed using Fund Balance to fill the $216, 000 judgement levy deficit as an offset for items determined the previous week (increase revenue for the Municipal Energy Tax based on data from previous four years) . Discussion followed regarding New Growth versus Stabilization. Ms . Bruno referenced the chart information outlining with/without Property Tax Stabilization totals, along with taxpayer comparisons . Ms . Gust-Jenson clarified the Council had the option of recognizing the full stabilization amount or the difference in what had been collected versus what was anticipated. She said in theory, if the economy kept growing, tax payers should not expect to see an increase . She said however, if growth slowed (for whatever reason) , current City taxpayers would have to make up the difference. She expressed caution and said currently, there was no way to determine whether this pace of growth would continue . Ms . Bruno said it should be noted, because this approach increased the revenue budget above the adopted revenue budget for the previous year, the increase must be noticed as a tax increase, and language for advertising was dictated by State law. She said the Administration was also proposing a judgement levy, which also triggered the Truth-in-Taxation process and would be added to this amount. A unanimous Straw Poll was conducted in support of moving forward with the Property Tax Stabilization and judgement levy package reconciliation as proposed. Ms . Bruno said similar to the General Fund, New Growth figures for the Library Fund came in less than proposed ($116, 706) . She said options were to add the shortfall to the Fiscal Year 2018 property tax increase to provide for ongoing needs or to provide for a small increase in the judgement levy for this year (about $20, 000) . She clarified the Library had not seen a tax increase 17 - 3 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 since 2004 . A unanimous Straw Poll was conducted in support of the small property tax increase as well as capturing the additional judgement levy as proposed. Ms . Bruno reviewed the step addition in Fire compensation. She explained Union negotiations were completed and Administration recommended funding half with vacancy savings in the department and half with one-time funds from suspending this year' s payment to the Cultural Core Fund. She further addressed the one-time $37, 000 to come from the Fiscal Year 2018 transfer to the Cultural Core and provided background on the City and County' s agreement to provide a portion of sales tax captured downtown to promote arts and culture . She said within the contract, the City had the ability to withhold funding and Administration believed the agreement had been funded a full fiscal year ahead. A unanimous Straw Poll was conducted in support of funding the Fire items as proposed. A unanimous Straw Poll was conducted in support of funding items by utilizing the Cultural Core payment savings as proposed. Discussion followed regarding the 600 North Safety Study, with Councilmember Rogers stating he wanted to consider funding a safety study for 600 North from 800 West to Redwood Road. Councilmember Mendenhall said she wanted to consider this after the budget adoption (possible budget amendment) once official numbers were realized. Ms . Bruno referenced the golf items and proposed options for associated Legislative Intents . She said based on the Council and Administration' s plans to further discuss Rose Park Golf Course in July, the Key Changes were updated to keep Rose Park Golf Course in the Golf Fund. She said the Council could further formally recognize the value of expanding recreational use and opportunity participation at the Rose Park Golf Course while reaffirming the policy commitment to the Golf program remaining an Enterprise Fund and consider the resolution of golf funding issues over a 10-year timeline. The Council discussed wording changes to consider revenue generating expansion at "all" golf facilities but exclude "expand to recreational use" because it would imply no fee based on 17 - 4 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 expanded recreation. The Council proposed more revenue generating options which other golf courses were exploring whilst leaving the enterprise funds to stand alone . It was noted the Rose Park Community expressed support of their golf course and stated they did not need another park or recreational area. A unanimous Straw Poll was conducted in support of consideration of expanded revenue generating opportunities in all of City golf. A 6-1 Straw Poll was conducted in support of the Rose Park Golf Course remaining in the Enterprise Fund and to allow for deeper policy discussion in July, with Councilmember Rogers voting nay and stating he wanted to pull the Rose Park Golf Course out of the Enterprise Fund in effort to track subsidy this fiscal year for possible reimbursement. Discussion followed regarding the mechanics of a possible loan document, with Ms . Bruno stating the result would be complications with receivables and loans which related to the City' s bond rating. Councilmember Rogers suggested Staff consider a mechanism to potentially repay the General Fund should there be future revenue . Ms . Gust-Jenson said there were a lot of public information requests about subsidies going into an Enterprise Fund so whatever documentation could be produced to clearly outline such would be optimal . She said if a future Council was able to go back and capture subsidy and the Council was receiving public comment about not wanting subsidy, there was no way to address the situation this year. She encouraged the Council to think of ideas and said there was not time for the Finance Department to provide consideration of options in this regard. Inquiry was raised regarding the legality of the General Fund continuing to subsidize the Enterprise Fund. Ms . Plane said she would advise the need for additional policy conversation this summer to allow the City to track what any General Fund subsidy would look like for possible future reimbursement . Councilmember Luke suggested a separate line item to ensure funding was not just taken from the General Fund, something to identify subsidy which followed legal requirements and did not jeopardize bond ratings . Inquiry was raised as to whether the Golf Enterprise Fund had historically subsidized other areas of the City. Ms . Gust-Jenson said a previous Administration had authorized a subsidy for general recreation in an amount just over $600, 000 . She said the 17 - 5 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 understanding was that it had been thoroughly repaid to the Golf Fund. She said one item requested by constituents was whether there were issues of the Golf Fund paying for watering of adjacent City General Fund parcels, and Staff could review and request payback if the Council had interest. Councilmember Johnson said if they were tracking taking funds in they should be tracking funds out . Councilmember Rogers said he would be interested in information whether the Enterprise Fund had been paying for any parks to capture for the larger conversation going forward. A unanimous Straw Poll was conducted in support of the Administration formally seeking proposals from private providers via a Request for Proposal (RFP) for operations of the full system of City Golf Courses. A unanimous Straw Poll was conducted in support of the Council having opportunity for input on the RFP in advance of release to ensure interests were represented. A unanimous Straw Poll was conducted in support of considering subsidy funding in stages based on the Council's confirmation that certain milestones were met throughout the year as outlined (50% released on July 1 based on commitment/50% released upon issuance of an RFP which had been vetted by both branches) . Ms . Weaver reviewed Information Management Services (IMS) projects - Constituent Relations Management (CRM) and Document Management contingent appropriations and Legislative Intent . She explained there was a window of opportunity for the City to receive a discount on the planned purchase of a CRM system (savings of approximately $40, 000) . She said to help that progress yet include intent for other information, the recommendation was for CRM funding to be approved with the understanding that information would be shared as the project advanced and items would be provided to the Council and Mayor' s Office to ensure success and citywide program use. Ms . Weaver said the recommendation for Document Management was to approve funding contingent upon Administration providing more information to the Council about the current need for the City, comparing a new Document Management solution to existing solutions in some departments with extensive records, and to involve a representative from the Council Office as an active stakeholder in the process along with other affected departments . 17 - 6 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 A unanimous Straw Poll was conducted in support of the CRM and Document Management project funding as outlined. Ms . Bruno addressed the Arts Council Twilight funding and explained the Mayor' s Recommended Budget for the Arts Council did not include funding for the 2018 calendar year. She said the Economic Development Department would provide a strategic and sustainable programming plan report this fall indicating how events met the goals and objectives of the organization, including financial options . She said if the Council wanted to continue the Twilight Concert Series for calendar year 2018, it could be a mid- year funding request but there was currently no way for it to continue. Inquiry was raised regarding the amount, with Ms . Bruno stating she believed it was between $500, 000 and $750, 000 but could provide the information later to the Council . Ms . Weaver addressed the Public Utilities Bill Payment Assistance Program. She explained during the follow-up discussion on the sewer rate increase, the Council requested more information about increasing assistance options for customers . She said the Department provided options about the current Project Water Assist Program and other options the Council might want to consider. She said increasing awareness and availability of the current program could be done at no additional cost. Ms . Weaver said there was concern that the program was only available once a year in a 12-month cycle and generally, people would need more than one month of assistance . She said consideration could be given to re-evaluating criteria establishing who was eligible; however, that might be difficult since they were related to the criteria used for Questar and Rocky Mountain Power Programs as well . She said the City' s current contribution amount was $10, 000; if the Council wanted to consider increasing that amount it would involve a process . She said there was need to confirm that Public Utilities had the ability to collect and track donations should people wish to do so. Councilmember Mendenhall suggested an alternative or additional program including installation of water efficiency fixtures with other partners . A unanimous Straw Poll was conducted in support of allocating an additional $51, 000 per year to assist in the Sewer Assistance Fee (Councilmember Mendenhall was not present when the poll was taken) . 17 - 7 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 Ms . Bruno reviewed the various Legislative Intents, including Fund Balance, Downtown Alliance Safety Ambassador Plan, and Elected Officials Compensation Study. Councilmember Adams said review of Human Resource information did not compare apples to apples and she would push for criteria well-matched to Salt Lake City. Ms . Bruno said the wording was to request the Citizen Compensation Advisory Committee (CCAC) to incorporate an Elected Officials Compensation review into their next annual review. Ms . Gust-Jenson addressed Transition Expenses, and the possibility the line item would not be sufficient to cover all associated expenses . She reviewed expenses included and said a good portion was typically covered from Council General Budget . Councilmember Penfold inquired as to ability to project expenses or need to return for budget amendment adjustment . Ms . Gust-Jenson said information was available as to what was spent in the past and the budget could be adjusted going forward. She said unused funds were allocated towards ongoing audits funding on the years where there were not transition expenses . Councilmember Penfold referenced the specific City Ordinance and said it would be worthwhile to include and allocate specific expenses going forward. He proposed the $20, 000 budget remain and Staff return with a projected funding adjustment amount. 4:41:36PM Mike Reberg and David Litvak discussed the budget proposal to provide for the secured parking lot in median (500 West between 200 South and 300 South) . Mr. Litvak said funding was originally proposed to create secure parking for law enforcement officers . He said in response to feedback received, Staff had returned with an amended funding proposal from the remaining balance of the Cultural Core agreement for the 500 West median. Mr. Litvak said feedback had been positive from various service providers on the overall proposal . Councilmember Adams expressed appreciation towards the alternative funding mechanism (i .e. not Street Funds) . Councilmember Luke referenced the issue of optics associated with fencing in Police and other vehicles yet telling the public everything was fine (i .e. mixed message) . He expressed concern to the fencing creating a barrier and whether this was just an idea or did Staff know it would work. Mr. Reberg explained the police parking lot which was not fenced created an environment for crime. He said blocking spaces between parked cars could be precarious and secure parking would eliminate any potential to hide activity. He said changing the physical environment was one thing felt to be 17 - 8 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 a disrupter and the feeling was it would disperse activity to the north end of 5th West and make it easier to target then-isolated drug dealings . Mr. Litvak said everything proposed was temporary in nature . He said the Redevelopment Agency was doing a feasibility and traffic study and the proposal was not to take away the median structure so that ultimately the grass could be returned. Mr. Reberg said the fencing would be a temporary 6-foot chain link similar to that used for the festivals . The Council expressed concern to the fix being called temporary and how to know it would be returned to its natural state . Mr. Reberg said Staff could return for a conversation about whether it would be time to dismantle the fencing and parking and return to the original intent. He said estimated timing was a couple of years to disrupt the existing issue. Inquiry was raised as to whether the proposal fit within City Code, with Mr. Litvak stating those questions had been raised to Legal . Councilmember Luke suggested starting the project without fencing and adding it later once determined necessary. Councilmember Kitchen suggested consideration of differing configurations and expressed concern as to effects to adjacent areas . Mr. Litvak addressed the multitude of conversations, concepts, and considerations on the issue . He said the northern end was targeted as proposed because of the high level of concentration of activity. Councilmember Johnston expressed concern about the entire project. A 6-1 Straw Poll was conducted in support of a Legislative Intent for Staff to return for project re-evaluation within two years (prior to June 30, 2019) if using the fencing and asphalt as proposed; and to incorporate a six-month Administrative update on this project as well as progress on the 500 West review of homeless services. All Council Members were in favor except Councilmember Penfold, who was opposed. #3 . 4:33:34PM INTERVIEW STEVEN PRICE PRIOR TO CONSIDERATION OF HIS APPOINTMENT TO THE AIRPORT ADVISORY BOARD FOR A TERM EXTENDING THROUGH JUNE 6, 2021 . View Attachments Mr. Price distributed a handout to the Council . Councilmember Penfold said Mr. Price' s name was on the Consent Agenda for formal consideration. 17 - 9 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 #4 . INTERVIEW LARISSA TROUT PRIOR TO CONSIDERATION OF HER APPOINTMENT TO THE ARTS COUNCIL BOARD FOR A TERM EXTENDING THROUGH JUNE 13 , 2020 . View Attachments Item Pulled; to be rescheduled. #5. 5:14:32 PM INTERVIEW JAMES DABAKIS PRIOR TO CONSIDERATION OF HIS APPOINTMENT TO THE UTAH TRANSIT AUTHORITY (UTA) BOARD FOR A TERM EXTENDING THROUGH JUNE 6, 2021 . View Attachments Councilmember Penfold said Mr. Dabakis' s name was on the Consent Agenda for formal consideration. #6. 5:56:40PM 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: • the NLC National Convention 2021 in Salt Lake City, and • Scheduling Items. See File M 17-5 for Announcements . #7 . REPORT OF CHAIR AND VICE CHAIR. No discussion was held. #8 . 2:44:21PM CONSIDER A MOTION TO ENTER INTO CLOSED SESSION, IN KEEPING WITH UTAH CODE §52-4-205 FOR ANY ALLOWED PURPOSE . View Sworn Statement Councilmember Adams moved and Councilmember Rogers seconded to enter into Closed Session to discuss strategy sessions to discuss collective bargaining pursuant to Utah Code §52-4- 205 (1) (b) . A roll call vote was taken. Council Members Mendenhall, Adams, Johnston, Kitchen, Luke, Rogers, and Penfold voted aye . See File M 17-2 for Sworn Statement. In Attendance : Council Members Penfold, Mendenhall, Adams, Johnston, Kitchen, Luke, and Rogers . Others in Attendance : Cindy Gust-Jenson, Jennifer Bruno, Patrick Leary, David Litvack, Lehua Weaver, Margaret Plane, Ben Luedtke, Julio Garcia, Tim Doubt, Mary Beth Thompson, John Vuyk, and Cindi Mansell . 17 - 10 MINUTES OF THE SALT LAKE CITY COUNCIL WORK SESSION MEETING TUESDAY, JUNE 13 , 2017 The closed session adjourned at 2 : 54 p.m. The meeting adjourned at 5 : 59 p.m. COUNCIL CHAIR 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. This document along with the digital recording constitute the official minutes of the City Council Work Session meeting held June 13, 2017 . clm 17 - 11