Council approves $9.1 million SIRQ contract for Fire Station 52; residents split on 40% city tax hike
August 23, 2022, 6:30 p.m. · American Fork City Hall, 31 N. Church St.
The American Fork City Council set a guaranteed maximum price of $9,112,335 with SIRQ Construction for Fire Station 52, part of an $11.59 million project including land and an indoor shooting range; Councilmember Ryan Hunter, who works for SIRQ, abstained. At the Truth in Taxation hearing that followed, 22 residents spoke on a proposed rate increase from 0.001094 to 0.001554, about $9.99 a month on a median home and a 40% rise in the city's property tax revenue; supporters cited police and fire demand, while opponents objected to the size of the jump after 14 years without an increase.
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| Amended CMGC contract with SIRQ Construction for Fire Station 52 | Approved · 4-0-1 |
| Truth in Taxation hearing on proposed property tax increase | Discussed |
Agenda, item by item
Item 1 · Contract
Amended CMGC contract with SIRQ Construction for Fire Station 52
Approved · 4-0-1
SIRQ Construction was hired as construction manager/general contractor in October 2020 before a site or plans existed; with land secured and subcontractor bids in, the council set a guaranteed maximum price of $9,112,335, with value engineering that could save $150,000-$300,000. Total project cost is $11,590,311, higher than expected due to inflation and land cost, funded by 2019 bond proceeds and police and fire impact fees (about $2.5 million each). The station includes a shooting range on the west side; options to leave it unfinished ($692,784 savings) or omit it ($1,038,120) were rejected. Bunker said moving out of Cedar Hills' station will add about $300,000 a year in costs to that contract.
- Contract$9.11 million to SIRQ Construction
- Budget$11.6 million
- Contractor: SIRQ Construction (CMGC selected October 2020)
- GMP: $9,112,335
- Total project: $11,590,311
- Shooting range options: unfinished -$692,784; omitted -$1,038,120
- Councilmember Ryan Hunter abstained because he works for SIRQ Construction
- SIRQ also sponsored the city's firefighter challenge event that Hunter helped organize (Dec. 13, 2022 minutes)
Item TNT · Taxes and fees
Truth in Taxation hearing on proposed property tax increase
Discussed
City Administrator David Bunker said the city had not exceeded the certified rate since 2008; police demand rose 46.6% in five years, fire/rescue costs 69%, and road material costs 17.5% in a year and 44% since 2010. The proposed rate of 0.001554, up from 0.001094, would cost a median $474,000 home $9.99 a month ($119.92 a year), a 40% increase in city general fund property tax but about 4% of the total tax bill. He said the city recently received close to $10 million in grants, including Bureau of Reclamation money for irrigation meters, and absorbed a North Pointe garbage fee increase. 22 residents spoke. The vote was set for Aug. 30.
- Proposed rate: 0.001554 (certified 0.001094)
- Median home $474,000: +$9.99/month
What residents said
40% property tax increaseFixed-income seniorsMisleading tax mailerHigh-density apartmentsImpact fee transparencySpeeding on 1100 East, 100 East and near Fox HollowFiber bondPressurized irrigation costsBroken fire hydrant on 100 East
At the Truth in Taxation hearing, Ernie John, retired firefighters Stan Street and Don Rich, Steve Smith and Bruce Frandsen supported the increase for public safety and roads. Larry Gordon called the city's 4% mailer misleading, Cary Fife objected to high-density apartments and asked about developer incentives and speeding on 1100 East, Paul Johnston questioned impact fees, reserves and an $8.5 million fire station, Ken Sumsion opposed a $35 million fiber bond, Jackie Roberts cited speeding near Fox Hollow, Tim Holley said the city spends about $3,000 per resident versus $1,800 elsewhere, and George Brown, Mark Surreal, Nellie Hampton, Reed Shelley, Reese Abel and Rex Shelton opposed or questioned the 40% size, urging smaller yearly increases. Eileen Miller of the Utah Home Builders Association spoke on impact fee rules. John Butler asked for control over pressurized irrigation costs.