City Council · 2015-06-28

CITY OF OREM• 
CITY COUNCIL MEETING 
56 North State Street Orem, Utah 
July 28, 2015 
\ ., 
3:00 P.M. WORK SESSION - PUBLIC SAFETY TRAINING ROOM 
CONDUCTING 
ELECTED OFFICIALS 
APPOINTED STAFF 
EXCUSED 
\ 
Mayor Pro Tern David Spencer, 
Councilmembers Hans Andersen, Margaret Black, Tom 
Macdonald, Mark E. Seastrand, and Brent Sumner 
Jamie Davidson, City Manager; Brenn Bybee, Assistant 
City Manager; Greg Stephens, City Attorney; Richard 
Manning, Administrative Services Director; Karl Hirst, 
Recreation Director; 
Chris Tschirki, Public Works 
Director; Scott Gurney, Fire Department Director; Gary 
Giles, Police Department Director; Charlene Crozier, 
Library Director; Jason Bench, Planning Division Manager; 
Sam Kelly, Engineer; Neal Winterton, Water Division 
Manager; Reed Price, Maintenance Division Manager; 
Brandon Stocksdale, Long Range Planner; Steven Downs, 
Assistant to the City Manager; and Jackie Lambert, Deputy 
City Recorder 
Mayor Richard Brunst 
PRESENTATION - Lateral Infrastructure Warranty Program 
Mr. Downs introduced the Lateral Infrastructure Warranty Program. The program would provide 
an opportunity to educate the public as to their responsibilities with utility lines and let them 
know that there were available products they could subscribe to that would cover their private 
utility line. The City selected Utility Service Partners, Inc. (USP) through an RFP process to 
work with for this program. Mr. Downs turned the time over to Michael Madden from USP. 
Mr. Madden said the infrastructure under most homes was approximately forty-five years of age. 
He said only about 62 percent of the population had the money to repair a $1,000 expense and 
only about 20 percent could actually afford a line replacement. USP costs covered inspection, 
permitting, repair or replacement, etc. upwards of $4,000 for a water line and upwards of $8,000 
for a sewer line. He said this would be a partnership between USP and the City to offer coverage 
through USP to residents. 
Utility Service Partners, Inc. - We Promise 
•
Average Age of U.S. Housing
o
Over 40% of the nation's owner-occupied housing is more than 45 years old
•
Families Struggle with Unplanned Expenses
o
Did you know that only 18% of American households can afford a $4,000
unexpected expense? In most cases, this type of expenditure would severely
City Council Minutes -July 28, 2015 (p. I) 
I 
I 
I 
I -• 



I 
I 
I 
deplete their savings account, leaving no room for other expenses such as medical 
bills, auto or home repairs, etc. 
•
Service Line Repairs are Unplanned Expenses
o
Homeowners are responsible for the repair or replacement of their utility service
lines. Over time these lines will fail due to normal wear and tear
o
Repair costs range from a few hundred dollars to several thousand dollars
depending upon many different factors such as length of line, depth of line, age
and condition of materials, etc.
o
Utility Service Partners in conjunction with the National League of Cities offers a
program to protect your residents from the high cost of these repair bills
o
USP features attractively priced products with no hidden service fees or
deductibles, and no per incident or lifetime caps on coverage amounts
o
The program is designed to protect residents from the stress and high cost of
utility line repairs, strengthen the integrity of the utility infrastructure (reducing
water loss and waste water pollution), and generate incremental revenues through
an affordable, value-added program
o
Both the external sewer line warranty and an external water line warranty are
designed to cover the homeowner' s responsibility for their portion of the
underground lines
•
Warranty Program Overview
o
These products are specifically designed for single family, residential
homeowners who may not have set aside the funds required to make these often
significant repairs and are not typically covered by homeowners insurance
policies
o
Products are voluntary, optional and tailored to meet the unique needs of each
community to help reduce claim denials
o
Helps captures revenues and mitigates I&I fines from the EPA.
o
Offered at no cost to the City or liability to the city
o
Top quality products bring value to your customers by enhancing their
experience, and satisfied customers bring additional value to your city's brand
•
Program Highlights
o
No cost to the City to participate
o
No liability to the city
o
Affordable rates for your residents
o
No long term contracts
o
24/7 customer service
o
Service from trusted, local area contractors
o
All repairs performed to local code
o
Fewer service calls and resident complaints
o
Peace of mind for your residents and the city
o
Strengthens the integrity of the utility system
o
Covers the replacement of galvanized lines
•
Provides protection from the point of entry at the home to the utility responsibility
•
External Water & Sewer Line Product Overview
o
Product: External Water Line Warranty
' .
City Council Minutes-July 28, 2015 (p.2) 



■
Coverage description: Covers the repair or replacement of a leaking or I
broken single underground water supply line serving the home - The
warranty covers the consumer owned portion of the water supply line
•
Coverage Limits per Occurrence: Unlimited coverage
o
Product: External Sewer Line Warranty
■
Coverage description: Covers the repairs or replacement of broken
underground sewer line from the utility's main sewer line to the internal
point of entry to the home
■
Coverage Limits per Occurrence: Unlimited coverage
o No long term contracts
o
Unlimited coverage per occurrence, including coverage for public street or
sidewalk cutting, if needed
o
Optional and voluntary
o No deductibles or other fees; Water $4.49/48.88, Sewer $6.99/78.88
•
Marketing Approach
o
Having executed hundreds of direct mail campaigns offering water and sewer line
warranties, USP has been able to mine rich history to determine the optimal
method and message for offering these products
o . .USP relies solely on direct mail and public relations to generate awareness and
interest in these products, no telemarketing
o
USP has found that sending the identical letter two weeks apart (with a header of
"Reminder, please disregard if you have already enrolled") significantly increases
participation rates - to the tune of a 45% lift as a result of the second letter
I
o
USP has also determined that these products are in fact seasonal, performing best
in the spring and fall
o
History has demonstrated that participation is optimized by offering the sewer line
warranty first, followed by the water line warranty introduction
o
Consumers can enroll one of three ways:
■
Calling the toll free number provided on the mailing;
•
Mailing in the Consumer reply portion of the letter in the envelope
provided, or;
•
Visiting our consumer website www.slwofa.com at any time during or
outside of a campaign cycle
•
Public Private Partnerships
o
Public entities are utilizing public-private partnerships as a way to offset soaring
budget deficits when it aligns with their objectives of benefiting the city and their
residents
o Have been around since the 1990's, interest in public-private partnerships has
gained increased momentum following the 2008-2009 economic collapse and
subsequent decline in tax revenue
o
Cities are exploring sponsorships ranging from beverage vending rights to naming
rights deals
o
Many cities are finding success using sponsorships to recapture lost revenues,
generate new revenue streams or to underwrite capital improvements
I
o
Funds are being used to upgrade parks and other local infrastructure to fund
public services such as police and fire, or to fund residential assistance programs
•
USP Customer Advocacy Results
City Council Minutes-July 28, 2015 (p.3) 



I 
I 
I 
o
BBB Accredited Business since 09/21/2007
o
Rating of A+
•
USP - Trusted Service Provider
o
Endorsed by the National League of Cities
o
Endorsed by North Central Texas Council of Governments
o
Accredited by the Better Business Bureau with an A+ rating since 2007
o
Clean Record with Regulatory Oversight with State Insurance Commission and/or
State Attorney General's Office
•
No fines, penalties, negative rulings, etc.
o
Excellence delivering successful programs to our clients
•
Marketing
•
Customer Service
•
Claims
•
Contractor Management
•
USP is Uniquely Qualified
o
Superior Product and Program Design
•
Critical factors for a successful program include:
•
Broad, customer friendly coverage in the Terms & Conditions
•
Ease of participation - easy to enroll, file a claim or cancel
•
Organizational culture focused on consumer advocacy
•
Affordable pricing, no hidden charges and attractive terms -month
to month
•
Small, local contractors committed to upholding USP customer
service standards
•
No up selling of other products no approved by the City
•
Effective but honest campaign messaging
•
Low Claims Denial Rate
o
Customer Advocacy
•
USP takes customer satisfaction very seriously
•
Internal call center with 24/7 /365 availability
•
Our customer advocacy philosophy drives our customer satisfaction rating
ofover95%
•
USP has processed more than 100,000 repair requests
•
In 2014, we denied 0.04% of submitted claims
•
Given USP's customer advocacy culture coupled with the close working
relationships with small local contractors, USP is able to approve more
than 97% of all claims filed and 99 .9% of all claims filed fall within our
coverage caps
•
Philosophy of Customer Advocacy
o
Claims Processing
•
When faced with the need for a repair, customers expect and deserve
immediate assistance
•
USP provides assurance and support by using a simple, customer friendly
approach
•
There are no forms or paperwork for the customer to complete
City Council Minutes-July 28, 201S (p.4) 



•
Customer calls USP, USP contacts contractor, Contractor calls
homeowner, USP initiates work order, Contractor files invoice, USP pays I
contractor, USP surveys homeowner
•
No further effort on the part of the customer is required
•
This approach maximized customer satisfaction and minimizes concerns
of City
•
Contractor Management
o
Contractor Selection
•
USP recruits only locally owned contractors. Local contractors understand
and appreciate USP's customer service standards which are some of the
highest in the industry
•
Local contractors familiar with city code complete repairs effectively and
efficiently, resulting in delighted customers
•
USP ensures that every participating contractor has both the desire and
ability to quickly respond in their territory with the appropriate equipment
and skilled labor
•
USP has a proven track record of developing and working with SBE
•
Implementation is Easy
o
Obtain City Council's support
o
Execute the Marketing Services Agreement
•
Provides for the use of the City logo on marketing materials
•
Indemnifies the City
0 Review and Approve Campaign Materials which can include: 
I
•
Press release
•
Webbanner
•
Marketing letter
•
Approve mailing list
o
Access to Partner Portal
•
Secure access to important information about enrollments & claims
•
Summary
o
We Promise To Take Care OfYourResidents
•
We are the only company endorsed and branded by the National League of
Cities
•
We serve over 250 cities and towns including Phoenix, San Diego, Plano,
Atlanta, Ft. Lauderdale, Kansas City as well as communities with only 100
households
•
We are not a telemarketer or a private utility company
•
We will not upsell other products to your homeowners
•
Broadest coverages and most experienced management team
•
Coverages are tailored to address your community's unique requirements
•
City will enjoy maximum participation through USP's marketing efforts
•
We are a trusted partner and solution oriented company
Mr. Madden reviewed the company's marketing strategies. He also said USP contracted with 
particular providers for their quality of work and knowledge of a municipality's code. He said 
residents that signed up would pay a set monthly fee, or could opt to pay a fee for the year at a 
City Council Minutes-July 28, 2015 (p.5) I 



I 
I 
I 
small discount, that covered all associated costs. He said this was optional coverage with no 
obligation or long-term contract, and anyone could cancel their coverage at any time. 
Mr. Seastrand asked if a certain percentage of the City needed to sign up in order to work with 
USP, and Mr. Madden said there was no minimum required number. 
Mr. Macdonald asked for clarification on what the City would receive from such a public/private 
partnership. He also asked if this kind of coverage was available through a local insurance 
provider. 
Mr. Madden said the City would not receive anything from the partnership, but it would allow 
residents to contract with USP. He said most insurance companies did not offer coverage for 
water or sewer connections, and coverage of this nature was typically offered through a 
public/private partnership. 
Mr. Tschirki said he had been through the costs and pains of replacing his own laterals just last 
year. He said it cost approximately $11,000, which was actually on the lower end because he did 
much of the work himself. He said laterals had many issues that would arise, like trees being 
planted where roots caused blockages, cleanings causing damage, and other issues, Mr. Tschirki 
said Public Works received phone calls regularly from residents who were unclear on what their 
responsibilities were with their utilities. 
Mr. Stephens asked about exclusions on coverage, including pre-existing conditions, self­
inflicted damage, and natural disasters like earthquakes. He also asked whether USP was 
regulated as an insurance company. 
Mr. Madden said during the initial campaign to sign up those pre-existing conditions would be 
waived. He said third-party liabilities were not covered, and earthquakes would be excluded as 
well. Essentially those items that could be incorporated in another insurance policy would not be 
covered on the USP coverage. He said in some states USP was regulated as an insurance 
company, and in others they were regulated as a warranty company. 
Mr. Stephens asked if USP had some type of reinsurance or other financial backing, and Mr. 
Madden said they were part of Quarter Capital for that financiafbacking. 
Mr. Tschirki asked about a cap, and Mr. Madden said there were no limits of service and it was 
fully uncapped. He said USP went directly to public/private partnerships with municipalities to 
meet the specific standards and also .to avoid soliciting issues. 
Mayor Pro Tern Spencer asked what cities in Utah were working with USP, and Mr. Madden 
said Orem was one of the first in Utah, the other being Salt Lake City. 
Mr. Davidson said this was not an Orem specific problem but was consistent across 
municipalities. He said the City did the RFP soliciting this service for Orem. He said that things . 
did not fail only on the City's end, but also on .the resident's end. The suggestions and 
discussions had been· to maintain the City's end of infrastructure, and to allow the residents the 
same opportunity to make certain their end of infrastructure was working properly and was 
City Council Minutes -July 28, 2015 (p.6) 
·~ 
' 



covered. The City did not benefit from the service, but it would provide an opportunity for 
residents to inǎure themselves against this kind of risk. 
Mr. Downs said the City's Public Works offices fielded these calls and partnering with USP 
would be a way to educate residents with no cost to the city and no obligation to residents. He 
said the purpose of the presentation at the meeting was to gauge Council's interest in entering 
into an agreement with USP. 
Mr. Sumner asked about coverage for apartment buildings, and Mr. Madden said there were 
specific requirement a residence needed to meet to. be eligible for coverage under. USP. He said 
some duplexes and four-plexes may be eligible if they met the requirements. They did not 
generally cover apartment complexes and currently did not cover commercial businesses. 
Mr. Tschirki asked for clarification on the process of selecting contractors to work with USP. 
Mr. Madden said USP made sure each contractor was licensed and had their credentials and 
equipment in order. USP had a contractor.management group that assigned work and negotiated 
costs to protect home owners from being taken advantage of in the repair process. He said 
contractors provided quality services because they wanted to stay inside the program to be 
considered contractors USP would recommend. USP also followed up with surveys to ensure the 
home owner was satisfied with their service. 
I 
Mr. Andersen asked for the rates for individual homes, and Mr. Madden said it was $4.49 per 
I 
month for water and $6.99 per month for sewer. 
Mr. Macdonald and Mrs. Black clarified the nature of this kind of public/private partnership with 
municipalities. 
Mr. Seastrand said this would be an exclusive public/private partnership with USP and the City. 
Individuals were welcome to contract with other providers, but those who signed up with USP 
would benefit from the low rates that came with the partnership with the City. 
Mr. Madden said USP would handle the marketing and education to residents through mailers, 
social media, etc. and would use the Orem logo to show the partnership. All customer billing and 
claims processing would· be through· USP. Additional information could be found at 
www.usp.net. 
Mr. Andersen asked Mr. Madden from his experience how many would sign up for these 
services, and Mr. Madden said the average was around 20-25 percent depending on the needs of 
the area. 
Mr. Winterton said Public Works responded on average to three to four homeowner water leaks 
and five to six sewer lateral calls ev!l!Y ·other week. The benefit in partnering with a vetted 
company like USP was the education of residents in their responsibilities and protection for them 
if they ever needed the.se services. 
The general consensus of the Council was to move forward with an agreement with USP. 
City Council Minutes - July 28, 2015 (p. 7) I 



I 
I 
I 
UPDATE- Utility Master Plan 
Mr. Tschirki said a mailer had been produced that would go to every account holder in Orem, 
providing updates recommended by the City Council and containing information about the open 
houses to be held on August 4th and August 18th. He said the open houses would be at the Senior 
Friendship Center from 6:00 to 8:00 p.m., and would follow the usual format, with greeters, table 
displays, posters, videos, and representatives from City staff. He said that Mike Collins and 
Keith Larsen from Bowen Collins Engineering also would be there. He said visitors would be 
able to ask questions. He said they could go beyond 8:00 if needed. He said the mailer could also 
be emailed to citizens. 
Mrs. Black said she had received a robo-call from Mr. Andersen saying this plan was already 
approved, which it was not. The call had also said that other cities had better ideas, so she had 
attended Provo's open house and she had brought their information to share. She reported that 
Provo also had a proposed 5-year plan which had higher rates than Orem's proposal, and that 
their rates were already higher than Orem's. She said Provo's data showed Orem being at the 
bottom of the rate scale. 
Mayor Pro Tern Spencer tabled discussion on Mrs. Black's comments until after Mr. Tschitki's 
presentation. 
Mr. Tschirki reported that Provo was also using Bowen Collins Engineering to develop their 
master plan. He said he would also respond to the information available on Mr. Andersen's 
website and shed sotne light on comments made so far. In addressing quotations in Mr. 
Andersen's flier, Mr. Tschirki provided more context for the comments from the Wall Street 
Journal to clarify what the article was actually saying. 
Mr. Tschirki conceded that smart meters were more expensive to repair and maintain, but 
pointed out the added benefits, as reported in the Wall Street J oumal article. With smart meters 
customers could more easily conserve by having information about their water use; cities could 
identify leaks in the system; and the City could be alerted to backflow incidents when they 
occurred. He said Park City used smart meters and they were on track to reduce water use per 
person 25 percent from the 2000 level by 2025. This 25 percent reduction was a mandate to cities 
from the state. Smart meters would help empower consumers. 
Mr. Seastrand asked about the cost per smart meter. 
Mr. Winterton said they did not know the exact cost because the agreement would be for many 
thousands and every meter manufacturer was different, but he agreed that $300 was probably a 
good number. 
Mr. Tschirki said there were distinct added advantages for the City and for consumers. He said 
there was not currently a program in place for water meter replacement. He said the age for 
accurate meters was approximately 20 years and the vast majority ofOrem's system was more 
than 20 years old. Mr. Tschirki addressed two articles by Charles Fishman referenced in Mr. 
Andersen's brochure. The brochure talked about 200 year old water lines. The Fishman article 
in National Geographic actually identified things not enviable about the American water system. 
City Council Minutes-July 28, 2015 (p.8) 



Mr. Tschirki said there were leaks in Orem's water system and they needed a leak detection 
system. He said the City produced more than 9 billion gallons of drinking water per year and 1·.
only 6.5 to 7 billion were metered. He noted that water for construction and for parks was 
metered but not billed. 
Mr. Macdonald asked about the difference between what was metered and what was billed. 
Mr. Tschirki said the City metered what was produced and what was consumed. He said 9 
billion gallons were produced and about 7 billion gallons were consumed. 
Mr. Andersen asked where the water was going. 
Mr. Macdonald suggested that it was leaking somewhere. 
Mr. Andersen said that every candidate's fliers should be examined by the councilmembers. 
Mr. Downs said that if candidates were putting out misinformation, the Council would address it. 
Mr. Tschirki said that the average water bill for a family of four was $34 a month, about a dollar 
a day. He said that iri Orem it was about $27 a month, which was probably the lowest in the 
state. He said it was not all just about rates, but what revenue needed to be generated. 
Mr. Tschirki said that in an article in the Rotarian, also by Charles Fishman, he described a water 
I
line in Washington D.C. that was over 150 years old, but the article was actually pointing out the 
"state of ignorance" Americans lived in with regard to their water supply. He said he wanted to 
make sure they were all on the same page in not wanting to be on same page with the same 
vision. He said that Orem had lines that would last longer than 50 years, and others they knew 
would not last longer than 20 years. He said they were. not replacing based on age, but their 
conditions. He said the U.S. system got into its current condition slowly and by patching 
problems instead of big fixes. 
Curtis Wood asked how many man hours were invested to do this research. He said that if the 
Council believed so strongly, they would have answers at hand. 
Mr. Tschirki said the facts had been presented over the last year and a half. 
Mr. Davidson said that the point was that, if there was going to be a dialogue about the Utilities 
Master Plan and rates and fees, this. was the time to have it. The work sessions ·provided an 
opportunity for fair discussion of the issues so that a consensus could be reached as to what 
would be the appropriate way to proceed. He said that it was important also that consumers had 
an opportunity to receive facts associated with why the City was doing what it was doing and not 
be subject to misrepresentations that did not reflect reality. He said that words and sentences 
could be cut from articles that were diametrically opposed to what was being presented. He said 
that this meeting was the forum to have those conversations, not by robo-call or other means. 
Mr. Wood said the City was presenting only one plan and he wanted to hear other options. _He 
said he thought a 50-year replacement was incredibly excessive. 
City Council Minutes-July 28, 2015 (p.9) I 



I 
I 
I 
Mr. Davidson asked if Mr. Wood was a professional engineer and had the professional 
background to substantiate what he was saying. Mr. Wood said no, but that he had common 
sense. 
Mr. Davidson said the point was, to have a conversation and dialogue by people who were 
professionally qualified to speak to these issues. He said the people would have the opportunity 
to voice their concerns to the City Council as a whole and not unilaterally. 
Mayor Pro Tern Spencer said there would be open houses and at City Council meetings where 
the people could voice their concerns and questions. 
Mr. Tschirki said the mairi objective was to ensure there was a water system in place that was 
fiscally prudent and responsible. He said that water crises were not quick to fix and were very 
expensive. He said the plan was a draft and was not final arid had not been approved by the 
Council. He said that over the past year there had been adjustments made to the plan and there 
would be more over time. 
Mr. Collins said that for more than a year they had been working with the Public Works 
Advisory Committee and 'Nith the Council. He said that when he saw Mr. Andersen's flier he felt 
he had done a poor job of educating him about what they were trying to do. He spoke directly to 
the six points on Mr. Andersen's flier. 
•
No pipes would be replaced based on age. The would be replaced based on
o
Leaks
o
Capacity issues
o
Fire flow requirements
•
When meters failed, the city would get less return from the customers.
o
Sewer rates were based on winter water rates, so both rates would be affected by
meter failure.
•
No revenue from the rate increases would be used to fund the infrastructure associated
with the Lakeside development.
•
The average age of the utility fleet was I 0.5 years, as there had been very little
investment in the fleet in the past five years, and one Vactor truck costs $400,000.
•
By agreement, Vineyard would pay for any facilities built by Orem to serve Vineyard.
•
The golf course does not want to use reuse water. This plan would save money for Orem
citizens by not piping east side water to the west side.
Mr. Macdonald asked if the City was contractually obligated to provide a certain type of water to 
the golf course, and Mr. Collins said it was not. 
Mr. Winterton said it was to service with reuse irrigation water, ,and would not violate an 
agreement. 
Mr. Seastrand said there was a belief they needed to . make the pipes bigger to supply to 
Vineyard. 
City Council Minutes-July 28, 2015 (p.10) 



Mr. Collins said Orem's existing storage was inadequate based on state standards. He said Orem I
had been living off the excess storage of the Central Utah Project, which now was being used in 
other ways. He said one reason Orem had had the lowest rates in the valley was that the federal 
government had been paying for most of the major water system, but that funding had gone 
awƜy. 
Mr. Collins reiterated that any improvements done for the benefit of Vineyard must be paid for 
by Vineyard. 
Mr. Collins said the existing system was stretched to the max, not because of Vineyard, but 
because water was being moved from the east side to the west side, as well as north to south. 
Mr. Tschirki said Vineyard paid for their proportionate share for the. 400 North water line 
replacement several years ago, and they had plans to build two storage tanks for themselves. 
Mr. Seastrand said there were three main lines that ran into Vineyard by which Orem, by 
contract, was required to supply. 
UPDATE - Southwest Annexation 
Mr. Bench presented an update on the Southwest Annexation area. He said they had worked with 
developers and staff and were at the point where they were planning to move forward and bring 
the items before the Planning Commission and City Council. _He said the area was about 467 
acres total, with approximately 227 acres of that being considered for annexation. 
Mr. Macdonald asked for clarification ofOrem's official boundary, which Mr. Davidson and Mr. 
Bench provided. 
Mr. Bench said if the developers were required to install the infrastructure, the density needed to 
be sufficient to meet those requirements. They were looking at a potential 1,903 ERUs in the 
area. He reviewed the proposed zoning and said any rezoning in the future would go through the 
regular rezone process. 
Mr. Macdonald asked whether the units in the proposed developments would be for rent or for 
sale, and Mr. Bench said he believed the McDougal development would be townhouse/apartment 
rentals and the Mansell development would be for sale. His understanding was that the Mansell 
development would be senior housing for those 55 years of age and older. 
Mr. Bench reviewed the Orem-Provo boundary agreement, where Orem would have ownership 
of 2000 South east of the railroad lines and Provo would have ownership west. Also, the 
agreement would allow development access from the north side of 2000 South on the Provo side. 
For the Impact Fees, studies had been completed for sewer, storm water, culinary water, parks, 
and fire services. The plan was that developers would pay full cost of infrastructure 
improvements; the City would have no financial obligation for improvements in the annexation 
area. City staff would work with developers through an agreement to provide a credit against 
impact fees incurred on future development for the costs of installing infrastructure greater than 
the required impact fees for their developments. 
City Council Minutes-July 28, 2015 (p.l I) 
I 
I 



I 
I 
I 
Mr. Sumner asked what mechanism was in place to ensure that infrastructure would be installed, 
and Mr. Bench said the City was not going to pay for improvements so developers had to meet 
those requirements or their projects would fail. He said there would be development agreements 
with the developers. They anticipated that any developer coming in would pay for the 
infrastructure themselves. 
Mr. Davidson said the impact fee numbers were based on the assumption that development 
would move forward based on the higher density scenarios. The City Council could change the 
number of ERUs permissible and it would dramatically change impact fees. There was a 
threshold for these projects; if the developers could not build at a specified higher density then 
their projects would no longer be feasible. 
Mr. Winterton said the direction from the Council was to have the developers assume the burden 
of building out infrastructure. The need for that infrastructure was still there, regardless of 
whether it was built by the City or by developers, but no money had been allocated to the area 
because it was determined that the developers would build the infrastructure and impact fees 
would cover those costs. 
Mr. Bench reviewed the next steps that they would take to move forward. 
Mr. Sumner asked about traffic flow to the area, and Mr. Bench said Mr. Mansell had been 
working with UDOT and planned to build a cross-section. Mr. Bench said they would also be 
• looking at improvements on Geneva Road.
Mr. Seastrand asked if traffic studies had been conducted, if improvements to Geneva Road 
would include widening the road, and what the projected impact would be on 2000 South. 
Mr. Bench said traffic studies had been done and they supported the development proposals. He 
said Mr. Mansell would work with Provo on 2000 South as the occasion arose. 
Mr. Andersen asked for clarification about developer's responsibilities, and Mr. Bench restated 
that the cost would be on the developer. Subsequent development would be done by developers 
themselves. Mr. Andersen asked if that would then change the rate increase proposal. 
Mr. Davidson said they were looking at a number of scenarios. He said the proposed fees .could 
increase or decrease depending on what priority was given to certain projects. There were 
identified projects in the area, but many aspects of development were still flexible, including 
density scenarios and the impact fees. He said the need for the infrastructure was there regardless 
of who built it. 
Mr. Andersen asked about a lift station for the Southwest Annexation area and who would build 
that. 
Mrs. Black said that this discussion was an example of why it was important not to say that 
things had been decided before they were officially decided. She said they were still working 
through things. 
City Council Minutes-July 28, 2015 (pJ2) 



Mr. Davidson said the budget was a plan, and plans were subject to change based on futu,e needs 
and discussions. Projects could be moved forward or be shifted back depending on need. The •1
proposed projects within the annexation area would cover only a small portion of what the area 
would require in the future. If the developer's proposed zoning and density scenarios were 
accepted there would be a clearer objective for the .area. 
Mr. Davidson said that master plans were for the whole community and this was only one 
component of the plan. He said there could be shifts in the numbers, but not dramatic shifts. 
Mr. Andersen asked if the project would be paid for by the developers or through impact fees. 
Mr. Davidson said the developers would put up costs and then would be reimbursed through 
impact fees. Any time anyone pulled a permit in that are<1, they would have to pay an impact fee. 
Mr. Bench said the impact fees would be used to backstop if developers paid less for the 
infrastructure. The City would use those impact fees for other improvements in the annexation 
area. If they paid more than necessary, they would get a credit, not a paid-out difference. 
Mr. Collins said the developer financed the improvements, and the impact fees paid for the 
project. 
Mr. Macdonald gave an example supposing that there were about 272 acres, and the particular · 
developers were only developing 20 of those acres, but they were paying significant 
I
infrastructure costs upfront. Then any developer afterward would pay those initial developers to 
tie onto that line. He said Orem was fortunate to have a developer willing to do something like 
that for the City . 
. Mr. Davidson said the proposal was an option and the Council could choose other options if they 
desired. 
Mr. Andersen asked why it was in the budget. 
Mr. Davidson said because they were capital projects that needed to be completed, whether by 
the City or by the developer. The budget did not specify that the City had to finance, it was 
simply identifying projects. 
Mr. Manning said it was identified as part of the capital plan in the budget. 
Mr. Davidson said public infrastructure was being built, so it was rightly in the public budget. 
The budget merely identified specific infrastructure needs in the city. It did not identify the 
conduit by which things were paid for. 
Mr. Seastrand thanked everyone for their time and effort on the issue, and for finding a solution 
that worked, and reminded the CounciLthat this was a project that was brought to the City by the I
residents of the area. He asked if this seemed like a logical plan that fit with long-term strategy 
for the area. 
City Council Minutes-July 28, 2015 (p.13) 



I 
I 
I 
Mr. Davidson said they had presented a means whereby this could be accomplished with a 
specific density. He said thatto the best of their ability, they had tried to be sensitive to the needs 
of developers, City, and property owners, and they believed this was a workable plan. 
Mr. Bench said that with this density, the developer would pay for the infrastructure. With a 
lower density, the City would probably have. to pay for it because the developer would not be 
able to recoup the loss. 
Mr. Stephens said there could be a decision not to annex at all. 
Mr. Seastrand added that then there would be no development, and the area would not be part of 
Orem. 
Mr. Davidson said this was triggered in part by the developers, and there was consent by the 
Council by previous resolution to move to this point. He said they could change the plan if they 
wanted, but the one presented now had the developer assuming the burden of development. 
Mrs. Black said approving the proposal at the next meeting meant that this would be the plan. 
Mr. Davidson said the Council would be adopting a General Plan amendment, a zoning 
amendment, and impact fees, and then this would be the plan. If the Council did not approve it, 
the City would not move forward. 
Mr. Andersen suggested that the Council go back and read 2002 and 2004 minutes about Utopia 
and suggested that the then City Manager had not been completely honest with the Council then. 
Mr. Davidson said he had never represented the annexation as a financial boon for the city. 
Mr. Earl said part of the plan that would be approved on August 25th would be an agreement with 
the developers, specifically requiring the developers to put in the infrastructure. The City would 
not be putting in any of the infrastructure. They were specifically responsible for that. It could 
be adopted or rejected, but if adopted that would be part of the agreement 
Mr. Sumner asked how this would impact fire, police, and parks. 
Mr. Davidson said there would be more calls for service. 
Mr. Bench said that was part of the impact fees. 
Mr. Davidson said there were significant costs with servicing this part of the City and he would 
not represent this as a financial opportunity for the City. It would require them to consider 
streets, open space, and such. All would be part of the overall package. hnpact fees were to 
address that impact, so that the current rate payers of Orem would not have to subsidize the new 
infrastructure. 
Mr. Bench said ongoing it would be similar to any other part of the City in terms of service calls. 
:Mr. Andersen asked about the adjustment to the rate structure. 
City Council Minutes-July 28, 2015 (p.14) 
. 



Mr. Winterton said they were working on that. His recommendation was to move projects I
forward and keep the rates as they were. He said options would be presented. 
Mayor Pro Tern Spencer said there would be two open houses for citizen input. 
DISCUSSION - E-Cigarette Ordinance 
Mr. Hirst said some cities in the county had prohibitions on electronic cigarettes in public areas. 
He had been contacted by the Utah County Health Department, as well as some citizens with 
concerns about the use of e-cigarettes at large public functions, like Summerfest and Fourth of 
July festivities. The e-cigarette industry had grown from $500,000 to nearly $2 billion in the last 
five years. 
Mrs. Black asked if this was a health concern, or if the concern was the example to young 
children. 
Mr. Hirst said there were both health and example concerns. There seemed to be polar arguments 
about e-cigarettes. Proponents said it was safer than regular cigarettes and produced less second­
hand smoke. The cons were that e-cigarettes still used nicotine, still produced second-hand 
smoke, and as an unregulated and uncontrolled industry currently, there were potentially 
dangerous chemicals being used. Another concern was that the e-cigarette industry seemed to be 
targeting teens by offering e-cigarette flavors and claiming it was a safer way to smoke, making 
it a gateway to regular smoking. Mr. Hirst said another concern was that e-cigarettes were 
I
compatible with liquid or wax cannabis. This made it more difficult for police to recognize. He 
wanted to determine if the Council was interested in bringing forward an ordinance to prohibit e-
cigarettes in the same places regular cigarettes were prohibited. 
The general consensus of· the Council was to bring this discussion forward and get more 
information. 
5:00 P.M. STUDY SESSION - PUBLIC SAFETY TRAINING ROOM 
CONDUCTING 
ELECTED OFFICIALS 
APPOINTED STAFF 
Mayor Pro Tern David Spencer 
Councilmembers Hans Andersen, Margaret Black, Tom 
Macdonald, Mark E. Seastrand, and Brent Sumner 
Jamie Davidson, City Manager; Brenn Bybee, Assistant 
City Manager; Greg Stephens, City Attorney; Richard 
Manning, Administrative Services Director; Bill Bell, 
Development Services Director; Karl Hirst, Recreation 
Director; Chris Tschirki, Public Works Director; Scott 
Gurney, Fire Department Director; Gary Giles, Police 
Department Director; Charlene Crozier, Library Director; 
Jason Bench, Planning Division Manager; Sam Kelly, 
Engineer; Neal Winterton, Water'Division Manager; Reed 
Price, 
Maintenance 
Division 
Manager; 
Brandon 
Stocksdale, Long Range Planner; Steven Downs; Assistant 
City Council Minutes-July 28, 2015 (p.15) 
I 



I 
I 
I 
EXCUSED 
to the City Manager; and Jackie Lambert, Deputy City 
Recorder 
Mayor Richard Brunst 
Preview Upcoming Agenda Items 
Staff presented a preview of upcoming agenda items. 
Agenda Review 
The City Council and .staff reviewed the items on the agenda. 
City Council New Business 
Mrs. Black went to the Jenny Oaks Baker concert, and said it was wonderful. There were over 
1,200 in attendance. Admission was free to everyone and Mrs. Black wanted to thank Charlene 
Crozier of the Library for putting on the event. Mrs. Crozier said Wayfair was the sponsor that 
made possible a nice big production. Mrs. Black wanted to thank Arts Council for their work. 
Mr. Sumner said the Beautification Advisory Commission wanted to voice concern that people 
would not apply for the advisory commission because of the arduous application process. 
Mr. Macdonald asked why this was the process they were using. 
Mr. Sumner said he was concerned about the amount of personal information that needed to be 
provided. 
Mr. Bybee said it was to create a level playing field so everyone was using the same official 
form. He said comparatively it was more basic and simplified than others he had researched. 
Mrs. Black wondered if the process made people feel like they were not good enough to be a 
volunteer. 
Mr. Davidson said some questions were to help council get to know applicants they did not know 
personally and to weed out potential conflicts of interest. 
Mr. Bybee said some was even to avoid potential awkwardness. It was also to allow the Council 
to make informed decisions. 
Mrs. Black said the point was to give more people the opportunity to serve. 
Mr. Sumner said one concern of the applications was the background check. 
Mrs. Crozier said the background checks were not a bad idea, especially for some groups that 
worked specifically with the community and youth, and had caught potential problems in the 
past. 
Mr. Davidson said it was important to do the checks rather than be caught in a situation where 
they should have done one and did not, and a problem developed. He said it was not the intent to 
be invasive, but rather to protect. 
City Council Minutes-July 28, 2015 (p.16) 



Chief Giles said our police department was authorized to do background checks and the I
applicants had to pay the fee. 
Mayor Pro Tern Spencer said the Citizen's Police Academy was an awesome and interesting 
educational experience, and he thought Orem's police should be coinmended for their service. 
Mr. Davidson said that the Council should l!dd the September 10th "Day of Caring" to their 
calendars. He said that was the same day as the employee appreciation lunch at Nielsen's Grove 
noon. He reported that the annual conference of the Utah League of Cities and Towns would be 
held September 16-18 in Salt Lake. Those interested in attending should contact Kristie for 
registration. 
The Volunteer Appreciation night was scheduled for September 2nd at Timpanogos Park. 
The Timpanogos Storytelling Institute and Storytelling Festival would be the first week in 
September. 
Information would be coming about the Sundance Economic Executive Summit in September. 
The Council adjourned at 5:44 p.m. to the City Council Chambers for thy regular meeting. 
6:00 P.M. REGULAR SESSION - COUNCIL CHAMBERS 
CONDUCTING 
ELECTED OFFICIALS 
APPOINTED STAFF 
Mayor Pro Tern David Spencer 
Councilmembers Hans Andersen, Margaret Black, Tom 
Macdonald, Mark E. Seastrand, and Brent Sumner 
Jamie Davidson, City Manager; Brenn Bybee, Assistant 
City Manager; Greg Stephens, City Attorney; Richard 
Manning, Administrative Services Director; Bill Bell, 
Development Services Director; Karl Hirst, Recreation 
Director; Chris Tschirki, Public Works Director; Scott 
Gurney, Fire Department Director; Gary Giles, Police 
Department Director; Charlene Crozier, Library Director; 
Jason Bench, Planning Division Manager; Sam Kelly, 
Engineer; Neal Winterton, Water Division Manager; Reed 
. Price, 
Maintenance 
Division 
Manager; 
Brandon 
Stocksdale, Long Range Planner; Steven Downs, Assistant 
to the City Manager; and Jackie Lambert, Deputy City 
Recorder 
EXCUSED 
Mayor Richard Brunst 
INVOCATION/ 
INSPIRATIONAL THOUGHT 
Daniel Thurgood 
City Council Minutes-July 28, 201S (p.17) 
I 
I 



I 
I 
I 
PLEDGE OF ALLEGIANCE 
APPROVAL OF MINUTES 
Mrs. Allen substituted for her son, Jonathan Allen. 
Mr. Macdonald moved to approve the June 23, 2015, City Council meeting minutes. Mr. 
Seastrand seconded the motion. Those voting aye: Hans Andersen, Margaret Black, Tom 
Macdonald, Mark E. Seastrand, David Spencer, Brent Sumner.. The motion passed unanimously. 
MAYOR'S REPORT/ITEMS REFERRED BY COUNCIL 
Upcoming Events 
Mayor Pro Tern Spencer referred the Council to the upcoming events listed in the agenda packet. 
Appointments to Boards and Commissions 
Mr. Seastrand moved to appoint Stanley Roberts, Jr. to the Public Works Advisory Commission. 
Mrs. Black seconded the motion. Those voting aye: Hans Andersen, Margaret Black, Tom 
Macdonald, Mark E. • Seastrand, David Spencer, Brent Sumner. The motion passed unanimously. 
Recognition ofNew Neighborhoods in Action Officers 
There were no new neighborhood officers recognized. 
REPORT- Cries of Freedom 
Scott Swain said having Col. Gail Halvorsen come made it a great event. He said they hoped to 
do an air show next year. He presented the Council with parachutes from the Candy Bomber and 
other gifts. 
CITY MANAGER'S APPOINTMENTS 
Appointments to Boards and Commissions 
Mr. Davidson recommended Carl Cook be appointed and Michael Walker be reappointed to the 
Planning Commission. 
Mr. Macdonald moved to appoint Carl Cook to the Planning Commission. Mr. Seastrand 
seconded the motion. Those voting aye: Hans Andersen, Margaret Black, Tom Macdonald, 
Mark E. Seastrand, David Spencer, Brent Sumner. The motion passed unanimously. 
Mr. Macdonald moved to reappoint Michael Walker to the Planning Commission. Mr. Seastrand 
seconded the motion. Those voting aye: Hans Andersen, Margaret Black, Tom Macdonald, 
Mark E. Seastrand, David Spencer, Brent Sumner. The motion passed unanimously. 
PERSONAL APPEARANCES 
Time was allotted for the public to express their ideas, concerns, and comments on items not on 
the agenda. Those wishing to speak should have signed in prior to the meeting, and comments 
were limited to three minutes or less. 
There were no personal appearances. 
City Council Minutes-July 28, 2015 (p.18) 



Walter C. Orem Award-Jerry and Betty Washburn 
Mayor Pro Tern Spencer asked Mr. Seastrand to present the Walter C. Orem Award to Jerry and 
Betty Washburn. He read the information about the W ashburns and thanked Betty Washburn for 
her partnership with her late husband and for their service to the City and community at large. 
RESOLUTION Designating 800 North Street iri Orem as both Canyon Parkway and 800 
North Street 
Mr. Davidson said the Ws1shburn family might have been wondering why they were part of this 
resolution. He said that, years ago, there was a discussion that the companion to University 
Parkway was 800 North Street and it should be named Canyon Parkway. Mayor Washburn had 
brought that suggestion forward. Mr. Davidson said that in recent months the,Council and Mayor 
had resurrected this discussion and a consensus was reached with UDOT, and UDOT had 
indicated its willingness to allow 800 North Street to be jointly designated as Canyon Parkway 
and 800 North Street, in addition to its State highway designation ofSR-52. 
Mr. Davidson recommended that the City Council, by resolution, designate 800 North Street in 
Orem as both "Canyon Parkway" and "800 North Street". He said that 800 North Street in. Orem 
was a State highway, a major east/west corridor through the. City, and a gateway to Provo 
Canyon. 
Mrs. Black moved, by resolution, to designate 800 North Street in Orem as both Canyon 
Parkway and 800 North Street. Mr. Seastrand seconded the motion. Those voting aye: Hans 
Andersen, Margaret Black, Tom Macdonald, Mark E. Seastrand, David Spencer, Brent Sumner. 
The motion passed unanimously. 
CONSENT ITEMS 
MOTION -:-- Appoint Poll Workers and Polling Location for 2015 Primary and General 
Municipal Elections 
Pursuant to Section 20A-5-602 of the Utah State Code, the City Council must appoint election 
poll workers at least fifteen days prior to the electi_on. 
Pursuant to Section 20A-5-403(1)(b) approval of the voting locations must also be approved by 
the City Council. 
RECOMMENDATION: The City Recorder recommended the City Council, by motion: 
(1) Appoint the receiving.and alternate poll workers for the 2015 Municipal Elections
(2) Approye the polling location
Mr. Macdonald moved to appoint Poll Workers and Polling Location for 2015 Primary and 
General Municipal Elections. Mrs. Black seconded the motion. Those voting aye: Hans 
Andersen, Margaret Black, Tom Macdonald, Mark E. Seastrand, David Spencer, Brent Sumner. 
The motion passed unanimously. 
City Cowicil Minutes-July 28, 2015 (p.19) 
I 
I 
I 



I 
I 
I 
SCHEDULED ITEMS 
6:00 P.M. PUBLIC HEARING-Climate Control Storage in CZ Zone 
ORDINANCE-Amending Section 22-8"17(7) of the Orem City Code pertaining to climate 
controlled storage units,in the CZ zone 
Mr. Bench reviewed with the Council a request that the City Council amend Section 22-8-17(7) 
pertaining to climate controlled storage units in the CZ zone. He said that this ordinance had been 
in place for several years, beginning with a facility on 1600 North. He said it had beeti modified 
since and allowed 4 units. With the State Street plans the City felt it would be good to limit the 
number to two. 
The Planning Commission recommended the City Council amend Section 22-8-17(7) pertaining 
to climate controlled storage units in the C2 zone. The planning staff supports the Planning 
Commission's recommendation. 
Mayor Pro Tern Spencer opened the public hearing. 
There was no public comment and the public hearing was closed. 
Mrs. Black moved, by ordinance, to amend Section 22-8-17(7) of the. Orem City Code pertaining 
to climate controlled storage units in the CZ zone. Mr. Seastrand seconded the motion. Those 
voting aye: Hans Andersen, Margaret Black, Tom Macdonald, Mark E. Seastrand, David 
Spencer, Brent Sumner. The motion passed unanimously. 
6:00 P.M. PUBLIC HEARING-PD-46 Zone 
ORDINANCE - Enacting Section 22-11-59 and Appendix NN (PD-46 zone) and amending 
Section 22-5-1 and Section 22-5-3(A) and the zoning map of the City of Orem to change 
the zone on property located generally at 200 East 1200 South from the R6.5 zone to the 
PD-46 zone 
Mr. Bench reviewed Harold Irving's request that the City enact Section 22-11-59 and Appendix 
NN (PD-46 zone) and amend Section 22-5-1 and Section 22-5-3(A) and the zoning map of Orem 
City to change the zone on property located generally at 200 East 1200 South from the R6.5 zone 
to create a new PD zone. 
Mr. Bench said that the applicant proposed to create the PD-46 zone to allow the development of 
a project on approximately 3.52 acres located at 200 .East 1200 South. The proposal was for 36 
units, up to 12 units per acre. The units would be townhouses ·similar to Pheasant Meadows by 
Sleep Ridge Golf Course. There would be a development agreement to ensure that the street was 
finished with the project. The property surrounded by four-plexes and other higher density 
development. The project would complete 200 East Street, which would be a benefit to the City. 
Dave Irving, with Building Dynamics, said all of the units would be for sale. He said a 
neighborhood meeting was held in early May. He said there was a positive buzz in that meeting, 
but it was a small meeting. 
City Council Minutes-July 28, 2015 (p.20) 



Mrs. Black asked about amenities in the common areas. Mr. Irving said there would be I
playground equipment and grass. 
Mr. Sumner asked about a study of traffic flow in the area. Mr. Bench said Mr. Goodrich saw the 
traffic study as acceptable. The connection of 200 East would give the additional access. 
Mayor Pro Tern Spencer opened the public hearing. 
Curtis Wood, resident, said there were positive things about it but was wondering why there 
could not be more single-family dwellings. He thought the movement toward all multi-family 
developments was a concern he heard about frequently. 
Mayor Pro Tern Spencer closed the public hearing. 
Mr. Seastrand said single-family developments did not need to come before the Council, so that 
was why they did not see those. They were zoned and appropriate and there had been a 
significant amount of single-family development throughout the City. He encouraged Mr. Wood 
to meet with the Planning Commission. 
Mayor Pro Tern Spencer said it was beneficial that townhomes be built that people could 
purchase, rather than just rental unit. 
Mr. Andersen said many people had spoken to him about rental units. He said there was a lot of 
I
talk about growth, but that over the last five years the growth had only been 436 people per year. 
He said Orem was getting to be an older community, but he was glad to see the neighbors had no 
problem with the development. He said that he would be interested to see growth really did 
happen in Orem. 
Mr .. Macdonald moved, by ordinance, to enact Section 22-11-59 and Appendix NN (PD-46 
zone) and amend Section 22-5-1 and Section 22-5-3(A) and the zoning map of the City of Orem 
to change the zone on property located generally at 200 East 1200 South from the R6.5 zone to 
the PD-46 zone. Mrs. Black seconded the motion. Those voting aye: Hans Andersen, Margaret 
Black, Tom Macdonald, Mark E. Seastrand, David Spencer, Brent Sumner. The motion passed 
unanimousiy. 
RESOLUTION - Amending the conditional use permit of Verizon Wireless at 1545 South 
State Street in the C2 zone 
Mr. Bench presented to the Council Pete Simmons' request that the City amend the conditional 
use permit of Verizon wireless for the .actual storage of the equipment at 1545 South State Street 
in the C2 zone. Verizon would now like to use a platform structure instead of the previously 
approved shelter to protect its equipment. The proposed platform would protect the equipment 
from above, but the sides would not be enclosed. This was the only requested change to the site. 
City Council Minutes-July 28, 2015 (p.21) I 



I 
I 
The Planning Commission recommended the City Council approve, by resolution, the amended 
conditional use permit of Verizon Wireless at 1545 South State Street in the C2 zone. The 
plan
ing staff supports the Planning Commission recommendation. 
Mayor Pro Tern Spencer asked if there were concerns about vandalism. 
Daniel Thurgood with Technology Associates, representing Verizon, said there was not a 
concern about vandalism. 
Mrs. Black moved, by resolution, to amend the conditional use permit of Verizon Wireless at 
1545 South State Street in the C2 zone. Mr. Macdonald seconded the motion. Those voting aye: 
Hans Andersen, Margaret Black, Tom Macdonald, Mark E. Seastrand, David Spencer, Brent 
Sumner. The motion passed unanimously. 
COMMUNICATION ITEMS 
There were no communication items. 
CITY MANAGER INFORMATION ITEMS 
There were no city manager information items. 
ADJOURNMENT 
Mrs. Black moved to adjourn the meeting. Mr. Andersen seconded the motion. Those voting 
aye: Hans Andersen, Margaret Black, Tom Macdonald, Mark E. Seastrand, David Spencer, Brent 
Sumner. The motion passed unanimously. 
The meeting adjourned at 6:35 p.m. 
(lJA)YYla_ t?  
Donna R. Weaver, City Recorder 
I
Approved: September 8, 2015 
City Council Minutes - July 28, 2015 (p.22)