City Council · 2016-06-14

CITY OF OREM
CITYCOUNCILMEETING
56 North State Street Orem, Utah
June 14, 2016
3:30P.M.WORK SESSION-PUBLIC SAFETY TRAINING ROOM
CONDUCTING Councilmember David Spencer
ELECTEDOFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, and Brent Sumner
APPOINTEDSTAFF Jamie Davidson, City Manager; Brenn Bybee, Assistant
City Manager; Greg Stephens, City Attorney; Richard
Manning, Administrative Services Director; Bill Bell,
Development Services 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;
Neal Winterton, Water Division Manager; Steven Downs,
Assistant to the City Manager; and Jackie Lambert, Deputy
City Recorder
EXCUSED Richard F. Brunst and Mark Seastrand
Mr. Macdonald moved to nominate Mr. Spencer to act as the Mayor Pro Tem. Mrs. Lauret
seconded the motion. Those voting aye: Debby Lauret, Sam Lentz, Tom Macdonald, Brent
Sumner. The motion passed unanimously.
BONDREFUNDING-WaterInfrastructure
Mr. Davidson introduced Laura Lewis with Lewis Young Robertson & Burningham Inc.
(LYRB) to share how the City would like to proceed in saving the City money in a refund
option.
Ms. Lewis said that this could be the easiest decision they make. She explained that interest rates
are low, and while the current bonds are not callable until July 15, 2018, they are able to do
advance refunding by creating new bonds for 2016. The proceeds of the bonds will be used to
buy treasury securities which will go into an escrow, as well as towards the fees of the old bonds.
Ms. Lewis explained that the 2008 bonds and 2016 bonds, when combined together, will for a
short period look like the outstanding bond. However, on the call date, only the new 2016 bond
will be outstanding; the City will no longer be responsible for the call portion of the bonds after
Mr. Macdonald asked if for a period the City will have two sets of liabilities and one asset. Ms.
Lewis stated that the asset fully defeases the bonds that are to be called, and then they are no
longer the City's liability. Ms. Lewis said a third party group will conduct escrow sufficiency
City Council Minutes - June 14, 2016 (p.1)


verification; this is required before they can close, so that the bond holders know that they are no
longer relying on the City. Rather, they are now relying on the escrow.
Ms. Lewis said that the new bond would be issued as tax exempt, and will not be extending the
maturity. The City will simply be taking advantage of the savings. The true interest costs on the
outstanding bonds is about 5.1 percent, whereas the true interest costs for the refunding bond will
be about 2 percent. The savings will be about $1 million on a net present value basis, or about
$89,000 per year. There will be no new money built in with the water projects, which means that
a public hearing is not required. The only action item would be to adopt a parameters resolution
next week, which will be setting the max bond amount as well as establishing a taxing
committee. Ms. Lewis stated that the City should move forward with due diligence; while the
indicated that they would raise rates about four times this year, but this has yet to take place.
Mr. Sumner asked how many years the new bond would extend, to which Ms. Lewis answered
12years.
Mr. Macdonald asked why this was not done before. Ms. Lewis said that there are indicators they
watch, and there has not been a better time until now. She explained that tax law is such that
once a City has outstanding tax exempt debt, they can only do advanced refunding prior to the
call date. It is undesirable to have a lot of outstanding bonds that are not funding projects. LYRB
tries to take advantage of timing which will be the most fortuitous to the City. As a minimum
standard, they want to generate about a 3 percent net present value savings. The City will be able
to leap over that threshold by refinancing now. Mr. Macdonald asked for the total dollar amount
of the bonds, to which Ms. Lewis answered, will be $5.8 million. The City will be saving
between 15 percent to 20 percent net present value of savings. Ms. Lewis stated that the City will
want to be cognizant of negative arbitrage, which is the difference of interest earned in escrow
and the escrow cost. As it currently stands, the City's savings is more than double the negative
arbitrage. She noted that the cost of the refinancing is built into the net savings.
Mr. Davidson said that this issue has been on the watch list for about two years. LYRB has been
revisiting rates and negative arbitrage periodically. He said that since they are facing potential
uncertainty with the interest rates, the time to pull the trigger is now.
Ms. Lewis said that they moved things forward due to the limited number of meetings in July.
Bond related documents will be reviewed at the next Council meeting.
In response to a question from Mr. Lentz, Ms. Lewis said that the City will save a little under
$1.4 million. In the couple of years while waiting for call date, there will be some payments
during which they will not be saving. Mr. Lentz stated that a side-by-side comparison would be
helpful in moving forward with a decision. Ms. Lewis agreed, and said that they also have a
sensitivity model they can get to the Council.
Mrs. Lauret asked if the savings would go into the water fund. Mr. Davidson said that it could,
and that it could also go towards needs other than debt service.
In response to a question from Mayor Pro Tem Spencer, Ms. Lewis noted that the bond will
extendto2028.
City Council Minutes - June 14, 2016 (p.2)


Mr. Davidson asked if there were any other concerns. Mayor Pro Tem Spencer said that there is
no additional risk or balance sheet exposure. Mr. Macdonald said that he was comfortable
proceeding in getting everything in motion to facilitate this action.
ANNUALREVIEW-GangLoiteringFreeAreas
Chief Giles said that in 2009, the State passed Code Section 76-9-902, pertaining to gangs. He
then identified what gangs are and defined the gang loitering issue. In August 2009, the Orem
City Council passed a resolution designating City parks and public schools as gang loitering free
areas. They also directed the Director of Public Safety, now the Chief of Police, to give a report
on the effectiveness of the ruling. Chief Giles explained that gang activity in Orem has been
fairly low for a long time. In the late 1990s, they pursued the issue hard, and put several
individuals in jail to try to mitigate the issues. Over last several years, law enforcement has done
a good job identifying when and where gang members have moved into the area. Oftentimes, it
members is by way of graffiti. He explained that they recently found graffiti which lead them to
tracking down a gang member who had moved to the area with his mother from West Valley
City. They found him immediately, and he is no longer in the area. In the past year, there have
been 157 reports of graffiti and not all of them have been gang-related.
Chief Giles reported that on September 16"h of last year, there was a fight and stabbing at 600
North Main. An individual ended up in the hospital and was not cooperative when the authorities
tried to speak with him. Later, there was a drive-by shooting at the home where suspects lived.
Investigators in the Orem Police Department conducted a successful investigation that lead to the
arrest of four gang members. They were unable to identify the actual shooters, but they received
many leads. On January 14", complaints were received about a drug apartment, which ended up
involving the same individuals who were also part of the drive-by shooting. A search warrant
was granted to search the apartment, and there have not been any other problems since that time.
Mr. Macdonald asked if there is an increase in gang related activity during Summerfest or other
large community gatherings. Chief Giles said that could happen sometimes, but not always; the
real problems occur when members of rival gangs confront each other. However, because there
Mayor Pro Tem Spencer said that the Citizen's Academy was starting soon, and was worth
attending.
EDUCATION/OUTREACH -City Utilities
Mr. Tschirki presented samples of actual bills at an address showing water usage from June and
July of 2015. In some cases 20 gallons were used, and in other instances 90 gallons were
consumed within that billing period. It showed in red what the water usage would cost after
November 1, 2016, once the new rates went into effect. An asterisk on the bill showed a
comparison with the same amounts. Mr. Tschirki stated that he was open to hearing criticism,
ideas, corrections, etc. from the Council, in order to make the billing simpler and straight
forward.
CityCouncilMinutes-June14,2016(p.3)


Mr. Macdonald said that Mayor Brunst wanted to emphasize that a new State law required these
tiered changes. He thought there should be an educational outreach to explain why. Mr. Tschirki
Mr. Lentz suggested that the bill show what it would have been be prior to the changes, so that
residents can see the comparison. Mr. Davidson said it would be important to show the patrons
how to read the bill. Mr. Tschirki said they will provide detailed instructions on the actual bill.
They will also give patrons four months of sample bills to see what their bills will look like once
the tiered system is implemented. Mr. Sumner said it would be important to point out the
differences between meter sizes.
Mr. Lentz said that since they are implementing changes to water billing, perhaps similar
communication could be shared regarding the sewer base rate. He stressed the importance of
educating the public on the matter. Mr. Winterton said that the sewer base rate would not be
increasing.
Mr. Tschirki said that the storm water increase took effect on April 1", and the City has not done
anything to specifically notate the change. Mrs. Lauret asked if there has been much push back.
avoid confusion. Mr. Tschirki stated that water usage was changing dramatically with the tiered
structure.
Mr. Davidson said that it may be helpful to break the bill down by indicating what the cost
would be in each of the tiers. Mr. Tschirki stated that the bill will show dollar and percentage
increases between old and new bills. It was noted that Staff's original proposal to the Council
was to adopt a seasonal rate structure, which did not occur. Mr. Tschirki showed a comparison of
what the bill would have been with a seasonal rate structure. He stated that it would have either
been more or less expensive, depending on the user. There was subsequent discussion regarding
why the Council opted to adopt the State's recommended tiered system over a seasonal rate
structure.
Mr. Sumner asked if the franchise tax went up too, and Mr. Tschirki answered affirmatively. In
adopting conservation rates, they are anticipating that overall usage will decrease; however, total
revenues will still increase. This revenue will help to continue running the program.
Mr. Tschirki said that ideally, consumers will use the online calculator to see what their bill
would have been during a certain period. Staff can get this calculator online in the next day or
two. Mr. Lentz said that it would be helpful to show individual households under which tier they
are categorized. Mr. Tschirki said that this information would be mailed as an independent
informational flier.
Mrs. Lauret asked if the numbers were run for apartment dwellers. Mr. Tschirki stated that bills
for apartments will go to the owner, and not to the tenants.
Mr. Sumner asked about assistance for those living on a fixed income. Mr. Tschirki stated that
the City did not have anything in place, but they could contact Community Action on the matter.
City Council Minutes - June 14, 2016 (p.4)


OVERVIEW--Proposed FY 2016CapitalProjectsfromSurplus
Mr. Manning explained that staff went over surplus projects with the Council in April. He
explained that the State will not allow the City to have more than 25 percent as a set aside in the
capital projects. The City's target surplus amount is 15 percent. Rating agencies do not care at
what level cities set their target, as long as they hit the target. During the recession, Orem could
not hit 25 percent; therefore, if they would have set that target amount to 25 percent, it would
have damaged their rating.
Mr. Macdonald asked if debts could be paid off using surplus funds. Mr. Manning answered in
the affirmative. Mr. Davidson said that the funds could also be used for items that are
traditionally leased or financed. For example, Orem City is in the process of purchasing a new
fire truck, for which they have paid cash instead of leasing. Because surplus money is onetime
revenue, it is best to use it on onetime expenses.
Mr. Manning explained that in order to meet the 15 percent requirement, the Council will be
asked to move almost $4.9 million out of the General Fund in capital funds as part of a budget
amendment. Mr. Davidson said that this request is made with the understanding that they are
approaching the end of a Fiscal Year, and they anticipate that the City will not spend everything
in the budget. Beginning July 1", that 15 percent will grow on savings accumulated during the
last Fiscal Year. Mr. Davidson said that the rationale was that it did not make sense to hold larger
fund balances when there were projects that needed to be done. There are practical purposes for
which the money can be spent.
Mr. Sumner asked how neighboring cities compared in savings. Mr. Davidson explained that
Lehi is having such dramatic growth that they are hitting the 25 percent target. Furthermore, their
entire infrastructure is new and they do not have to make as many investments. Orem, on the
other hand, has infrastructure that has been in operation for up to 50 years. The same goes for
Provo. While everyone would love to be at a ++25 percent surplus, it is not always possible.
In response to a question from Mr. Lentz, Mr. Nelson explained that surplus percentage is
determined based on the revenues made in the General Fund compared to what is available as
unassigned reserves. Mr. Lentz asked if it included balance transfers, and Mr. Nelson answered
in the negative.
Staff and Council subsequently reviewed the proposed Capital Projects from surplus, for the
Fiscal Year 2016. They were outlined as follows:
charging station, and enhanced disaster recovery of audio files.
With regards to the Recreation Center, Staff would like to minimize operational expenses
and maximize space. They will be studying trends before spending money on various
projects.
Various economic projects along the northern end of Geneva Road “Wedge", as per
suggestions from the study done by Zions.
Development of nodes, as outlined in the State Street Plan.
Enhancing building security with cameras.
FireStation #1 needs tobe rewired.
City Council Minutes -June14,2016(p.5)


. The rotunda area could be better utilized by putting in more meeting rooms.
 Fire and Ambulance needs include putting stretchers, cardiac monitors and other
extrication equipment on an annual replacement list.
The Library needs study room furnishings.
Sewer lateral repair.
Spillman software for the Police Department would create a more efficient transfer of
information from Officers to the Courts.
Equipment for three new Police Officers will be covered using surplus funds.
Traffic projects and ITS (traffic signal controlling software).
Installation of internet fiber to some of the City's facilities. It was noted that some of the
Councilmembers are sensitive about keeping UTOPIA funds specifically allocated for the
UTOPIAdebt.
Street project at the intersection of Center Street and 4oo West; the right turn pocket for
eastbound drivers turning south.
Traffic light and HAWK signal near Orem Elementary and Canyon View Jr. High
School.
Pedestrian ADA compliance projects in several locations.
Asset protection projects for existing parking lots.
Resurfacing of the City Center parking lot.
Increased handicapped parking.
Drop-off areas for buses.
Park system and asset maintenance.
Northridge Park paved walking path.
Bonneville Park; rebuilding the tennis courts and stationing outlets throughout the park.
SCERA Park playground equipment replacement.
 Needs for the new cemetery property include an internal road network and the installation
of walk markers. It was noted that the space will continue to be available for casual play,
but will not be programmable. Furthermore, a landscaping place is not in place yet, but
the sprinkler system has been put in. Layout of the cemetery was briefly discussed.
Landslide mitigation projects.
According to a traffic flow study, traffic needs to be addressed on 1600 North.
Roundabout upgrade at Utah Valley University. It was noted that this project will be
matched with funds from the Mountainland Association of Governments (MAG). While a
portion of this roundabout is part of the BRT project, certain areas are unaffected by BRT
and therefore need to be financed through Orem City. The 800 North beautification
project will be part of the process.
Mr. Macdonald asked how much money will be spent for all of these projects. Mr. Manning
stated that they will cost around $4.7 million, and that the City will still maintain the 15 percent
target surplus.
Mr. Sumner asked about apartments being built, and wondered if any money would be going
towards traffic flow in those areas. Mr. Davidson said that RDA money was going to help fund a
turn pocket at the development in question.
City Council Minutes - June 14, 2016 (p.6)


5:00P.M.STUDYSESSION-PUBLICSAFETY TRAININGROOM
Councilmember David Spencer
CONDUCTING
ELECTEDOFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, and Brent Sumner
APPOINTEDSTAFF Jamie Davidson, City Manager; Brenn Bybee, Assistant
City Manager; Greg Stephens, City Attorney; Richard
Manning, Administrative Services Director; Bill Bell,
Development Services Director; Chris Tschirki, Public
Works Director; Scott Gurney, Fire Department Director;
Gary Giles, Police Department Director; Charlene Crozier,
Library Director; Steve Earl, Deputy City Attorney; Jason
Bench, Planning Division Manager; Neal Winterton, Water
Division Manager; Steven Downs, Assistant to the City
Manager; and Jackie Lambert, Deputy City Recorder
EXCUSED Richard F. Brunst and Mark Seastrand
PreviewUpcomingAgendaItems
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
There was no City Council new business.
The Council adjourned 5:48 p.m. to the City Council Chambers for the regular meeting.
6:00P.M.REGULARSESSION-COUNCILCHAMBERS
CONDUCTING Mayor Pro Tem David Spencer
Mayor Richard F. Brunst*, Councilmembers Debby Lauret,
ELECTEDOFFICIALS
Sam Lentz, Tom Macdonald, Mark Seastrand*, David
Spencer, and Brent Sumner (* participated electronically)
APPOINTEDSTAFF 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; Steven Downs,
Assistant to the City Manager; Pete Wolfley,
City Council Minutes - June 14, 2016 (p.7)


Communications Specialist; and Jackie Lambert, Deputy
City Recorder
INVOCATION/
INSPIRATIONALTHOUGHT Steven Downs
PLEDGEOFALLEGIANCE Ernesto Lazalde
APPROVALOFMINUTES
Mr. Macdonald moved to approve the May 10, 2016 and May 24, 2016 City Council meeting
minutes. Mr. Sumner seconded the motion. Those voting aye: Richard F. Brunst, Debby Lauret,
Sam Lentz, Tom Macdonald, Mark Seastrand, David Spencer, Brent Sumner. The motion passed
unanimously.
MAYOR'SREPORT/ITEMSREFERREDBY COUNCIL
Upcoming Events
The Mayor Pro Tem referred the Council to the upcoming events listed in the agenda packet.
Mayor Pro Tem Spencer invited Genelle Pugmire, resident, to present about the Colonial
Heritage Festival, Cries of Freedom, and Military Vehicles Display. Ms. Pugmire stated for the
record that she was presenting as an Orem resident, and not as a representative of her employer,
The Daily Herald. She explained that the aforementioned events are held at SCERA Park every
year, and that they are a fantastic opportunity for families to attend during the summer months.
She said that two years ago there were 50,000 people who attended throughout the summer. Last
year, Colonel Gail Halvorsen's flight brought in 70,000 people in three days. Ms. Pugmire stated
that Mr. Sumner has worked the Festival in the past, and she invited other Council Members to
participate as well. Events grow every year and interest has been expressed by several
organizations, including University Place.
Ms. Pugmire thanked event sponsors including Orem City, the CARE Tax, the Freedom Festival,
and Utah County for their travel and tourism dollars. These donations keep costs low for
 s   d d       o 
experiences. Ms. Pugmire stated that this year Adam Robertson, with the SCERA Center, will be
sponsoring a Heritage Fireside on July 3", at the SCERA shell, at 8:00 pm. The event will be
free to the public. Former Mayor, Jim Evans, will be the VIP for the event. The Heritage Fireside
will feature a debate with the founding fathers about religious freedom, and Ms. Pugmire
encouraged local attorneys to attend. The event will last approximately one hour and 15 minutes,
and will showcase a lot of music and patriotism. Also at the Fireside, they will be honoring
Colonel Gail Halvorsen, age 96, who hopes to be in attendance; if he is unable to attend, he will
be honored through his daughter.
In addition to the Fireside, Mr. Robertson and the SCERA Theater will be holding multiple
showings of Walt Disney's Classic, “Johnny Tremain", at no cost to the public. The movie is 80
minutes long, and is a chance for families to come get some respite from the heat and learn more
about the Revolutionary War. There will be three times as many military vehicles as there have
been in the past, along with some interactive activities for kids. A separate stage will be set up at
the Cries of Freedom event which will feature dancing, music, debates, etc. Ms. Pugmire said
City Council Minutes - June 14, 2016 (p.8)


that it will be a destination location for people from all over to attend as part of Independence
Day celebrations. Ms. Pugmire stated that the Festival is grateful for a local arts district, and that
none of these events would be possible without the support of the City. Lastly, she mentioned
that three shuttle busses will be provided, and that she can be contacted for further information.
Appointments to Boards and Commissions
     ,      
Commission. Mr. Sumner seconded the motion. Those voting aye: Richard F. Brunst, Debby
Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand, David Spencer, Brent Sumner. The motion
passed unanimously.
REPORT-SeniorAdvisory Commission
Mr. Hirst introduced the Senior Advisory Commission members that were in attendance. Ms.
Kay Bradford, Chair, presented the report for the Senior Advisory Commission. Ms. Bradford
said that every day is a celebration that is full of opportunities, and noted that the Orem Senior
Friendship Center has 3,434 members. They put on many activities, including a Grammy Awards
event. Their latest celebration was a wedding between two seniors who met and fell and love at
the Friendship Center. Ms. Bradford mentioned that the wedding was highlighted in the local
newspaper. She stated that every year the Senior Friendship Center has a “humor day", where
anyone can come and tell a joke. She then shared a joke she likes to tell. At the Friendship
Center, they celebrate birthdays and play BINGO. Last month over 700 people came and played
BINGO, and they served over 1,200 meals.
Ms. Bradford presented a copy of their new newsletter, which highlights the Senior Friendship
Center's activities. She announced June 23"d is “Flamingo Day". Ms. Bradford stated that she
hears about Facebook a lot, and joked that she is applying similar “Facebook principles" in her
everydaylife.
PERSONALAPPEARANCES
Time was allotted for the public to express their ideas, concermns, 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 orless.
Jim Fawcett, resident, relayed an experience he had in elementary school, when his 6"h grade
teacher complimented a yard in his neighborhood. Unbeknownst to the teacher, the neighbor had
painted concrete green to look like grass. Mr. Fawcett stated that in this time that the City is
trying to conserve water, there are artificial alternatives that could be used instead of traditional
landscaping. Mr. Fawcett said that he came to Orem from southern Califormia where there were a
lot of brown lawns as a result of draught, and so he loved all of the greenery in Utah when he
first moved to the area. He stated that in light of new State mandates to conserve water, cities
need to find a way to help residents maintain nice lawns, which he suggested could be done by
making modifications to the City's ordinances.
Mike Christensen, resident, explained that he wanted to address the City today regarding
Summerfest, and ways that it could be improved. Mr. Christensen said that he is grateful to have
Summerfest, but it rains almost every year; therefore, he suggested that it be moved to a weekend
City Council Minutes - June 14, 2016 (p.9)


coinciding with those of the Grassroots Shakespeare Company, which can negatively affect the
experience. He stated that he would like stage performances to start on time, and feels that time
slots should be respected.
CONSENTITEMS
There were no Consent Items.
SCHEDULEDITEMS
6:00 P.M. PUBLIC HEARING - Strawberry Fields Development
ORDINANCE - Amending the General Plan land use map by changing the land use
designation on 3.02 acres at 676 East Timpanogos Parkway from Professional Services to
Low Density Residential, amending Section 22-5-3(A) and the zoning map of the City of
Orem by changing the zone on said property from  PD-6 to PlannedResidential
Development (PRD) and amending Appendix “RR" by adding the concept plan and
building elevations of the Strawberry Fields PRD
Note: At 6:26 pm, Mayor Brunst and Mr. Macdonald recused themselves from the discussion,
due to personal dealings with the applicant and financial interests.
  e       s   sd a 
designation on 3.02 acres at 676 East Timpanogos Parkway from Professional Services to Low
Density Residential, amend Section 22-5-3(A) and the zoning map of the City of Orem by
changing the zone on said property from PD-6 to Planned Residential Development (PRD) and
amend Appendix “RR" by adding the concept plan and building elevations of the Strawberry
Fields PRD on 3.02 acres at 676 East Timpanogos Parkway.
The applicant desires to develop a PRD on 3.02 acres of property at 676 East Timpanogos
Parkway. The property is located in the Timpanogos Research and Technology Park and is
currently vacant. In 2014, the City Council denied a request to rezone this property from PD-6 to
the PO (Professional Office) zone for use as a private school.
The applicant's proposed PRD development contains 15 residential units which works out to
4.97 units per acre. The units are single story with a basement and are twin home style with one
single stand-alone unit. Exterior finish materials would consist of stucco, brick, and fiberboard
siding. The height of the proposed units is 25 feet.
The applicant has submitted a concept plan showing the layout and building elevations of the
proposed PRD. If approved, the concept plan will be included in Appendix “RR" and the
development will be required to substantially conform to the concept plan.
The Economic Development Division has reviewed this request and strongly recommends that
the City Council deny the proposed rezone. The property is located in a PD zone that contains
the Canyon Park Technology Center. It is a successful business park that accounts for over 7,000
jobs and contributes significant revenue and economic benefits to the City through property taxes
and job creation. The subject property is bordered on three sides by office park development
City Council Minutes - June 14, 2016 (p.10)


while the southern border is adjacent to two residential units. The residential units are located on
land that was originally part of the PD-6 zone.
When Canyon Park Technology Center was developed as the former WordPerfect campus, the
City Council at the time made the difficult decision to rezone an orchard into a technology
campus located near residential neighborhoods. The decision has positively impacted Orem's
economic base ever since.
The Economic Development Strategic Plan (EDSP) completed in December, 2014, identified
fifteen economic districts throughout Orem's commercial centers of retail and office
development. The Canyon Park Technology Center economic district generates $7,059 per acre
of tax revenues to the City. This is the fourth highest revenue generating economic district in the
City. The top three are located on University Parkway and consist of retail sales. The top
economic district generates $9,665 per acre.
revenues through property taxes. This type of development helps diversify the City's revenues
and lowers the dependence upon sales tax. Additionally, the economic impact the City has
received from the over 7,ooo jobs located on the Canyon Park campus over the years is immense.
Allowing the subject parcel to remain part of the PD-6 zone and to develop with additional office
and technology uses has the potential to further increase the economic benefit to the City in
terms of tax revenue and job creation. Because Orem is well over 90% developed, there are few
vacant parcels available where this type of development can occur and even fewer available in
of this property to residential uses would result in the loss of property that is uniquely suited to
office and technology uses similar to those currently in the Canyon Park development.
Although the property has been vacant for many years and the owner would understandably like
to develop the property immediately, Staff believes it would be in the best long-term interest of
the City to maintain the property for future office development.
For the aforementioned reasons, it is highly recommended that the City Council deny the
proposed rezone and allow the 3.02 acres to be developed for additional office uses as part of the
PD-6zone.
A neighborhood meeting was held on April 4, 2016, with several neighbors in attendance.
The Planning Commission recommends the City Council deny the request to amend the General
 s          n   
from Professional Services to Low Density Residential; deny the request to amend Section 22-5-
3(A) and the zoning map of the City of Orem by changing the zone on said property from PD-6
to Planned Residential Development (PRD); and deny the request to amend Appendix “RR" by
adding the concept plan and building elevations of the Strawberry Fields PRD on 3.02 acres at
676 East Timpanogos Parkway. Staff supports the recommendation of the Planning Commission.
City Council Minutes -June 14,2016(p.11)


Mr. Bench presented the aforementioned staff report, as well an aerial map of the subject
property. The subject property is near Canyon Park, and has a small, private drive with four
units. He also presented images of the proposed elevations.
Mr. Seastrand asked if there was a compelling reason why it could not be developed as
commercial. Mr. Bench said that it has been held in reserve by the property owner, who is
waiting for development to occur. There is no reason why it could not be developed as part of
CanyonPark.
Mayor Pro Tem Spencer opened the public hearing.
Mark Stubbs, resident, said that his lot is most affected by the development, and opined that the
economic numbers in the report were misleading. He stated that the average taxes in the DaVinci
development are approximately $2,000 per year per lot. The economic report indicates that the
City anticipates between $6,000 and $9,000 per acre to be generated once the vacant property is
developed. He argued that property taxes would be greater for a residential development. Mr.
Stubbs stated that it is misleading to categorize Canyon Park as a technology park; rather, he
feels that it is more of a call center park. He said that Adobe could have bought the property and
leased the space; however, they opted to relocate. While the owners indicate that Canyon Park is
full, it has not been at 100% occupancy in the last six years. When Canyon Park was approved, it
was the exception to the rule; everything in the neighboring areas was residential. Mr. Stubbs
stated that there are no commercial outlets in the park, and asked what is generating sales tax
revenue. He stated that if Canyon Park is going to be used for technology, why hasn't it been
used as such within the past 11 years. The only offer that has come forward on the vacant
property has been for residential developments. He stated that if the Council denies the request
and waits for an office building, they will have weed patch there for the next ten years.
Rick Chatwin, developer, stated that upon completing his first development he had the Orem
City Council come see the project, and they called it the prettiest street in the City. He said that
anyone who drives to Penny lane and Peach lane will agree; it is attractive, high quality
craftsmanship. The development has brought high quality people to neighborhood, and before it
was a swampy field. Because the first project was so successful, Mr. Chatwin decided that Orem
was a prime location. He discovered that Canyon Park owned seven acres of land, which has
been for sale for many years. He echoed Mr. Stubbs comments and stated that it will remain for
sale for the next ten to twelve years until the zoning is changed.
Mr. Chatwin stated that the three acre parcel that he wants to purchase backs right up to the
DaVinci development. He continued that Canyon Park had no problem selling to Ivory Homes
for the DaVinci development several years ago, which was also originally zoned for a
technology/business park. Mr. Chatwin said that he has heard that currently there are three large
companies at Canyon Park that are planning to leave for a better location. The location is no
longer optimal for technology/business uses, and the seller has had the property on the market for
12 years with no offers. If this zoning were changed to allow for residential development, it
would bring fifteen new families to Orem. Mr. Chatwin stated that a high-density housing
development was recently approved, despite a petition of 422 signatures opposing the project. He
said that in this particular instance, concerned citizens who attended the Planning Commission
meeting were mocked. He concluded by saying that it appears that the Council has already made
City Council Minutes - June 14,2016 (p.12)


up their minds on the matter. He was of the opinion that the zoning will change in the future
Tom Dockendorf, resident, said his property will be influenced by tonight's decision. He was in
favor of approving the applicant's proposal to develop residential on the subject property. He and
his wife were grateful for the opportunity to move to the DaVinci neighborhood. He has seen
several signs at Canyon Park for space that is available to lease or buy. He stated that residential
would be permanent tax revenue, whereas businesses come and go. Furthermore, there are other
office spaces available in the City, and he doesn't feel that these three acres will make much of a
difference. Mr. Dockendorf said that they moved to Orem in 1980, when WordPerfect wanted to
buy the orchard and develop it into a technology center. At the time, there was very little
neighboring development. He said he understood the importance of growth, and asked the
Council to consider the developer's proposal. He concluded by stating that he will be a good
neighbor to any development that comes in on the subject property.
Gloria Harris stated that she is the co-owner of the building that is located directly east of
Strawberry Fields. She explained that the property taxes on their building are over $24,000 per
year. Mr. Smart was trying to sell the building and the land together for years. Mr. and Mrs.
Harris came in and proposed to Mr. Smart that he sell the building and the land separately, which
is why the land is now available. When Mr. and Mrs. Harris were looking to locate their
business, they were at the research center next to their building. She explained that they are a
high-tech research company, and are not a call center. They were specifically drawn to the zone,
and if the zoning were changed to residential it would decrease their property value. Mrs. Harris
stated that they bring significant income to the City by paying property taxes and providing jobs.
Sherri Page, resident, stated that a proposal came forward a year ago for a school in this
particular area. It was approved by the Planning Commission, and the public presented reasons
as to why they did not want it in that location; therefore, the Council denied the request. It's now
a year later and the subject property is being highly contested. Ms. Page stated that she has lived
in the area for six and a half years, and she always sees signs for rent/sale in that area; nobody is
buying the property. She said that residential was a better fit and would be a great asset to the
City, and did not believe that traffic would be a problem. Furthermore, the technology is moving
toward the freeway and up north, and she does not think that the current zone is bringing much
tax base to the City. Ms. Page asked the Council to reconsider their position.
Dr. Guy Grenny, resident of DaVinci, said that he looks out his back windows into a field of
     n         s  s
residential on the subject property and that most, if not all his neighbors are highly in favor of
seeinghomesthereaswell.
Allen Finlinson, President of Canyon Park Technology Center, as well as one of the partners and
owners of the Canyon Park, said that most of the park's owners are local Orem and Provo
residents. They have owned Canyon Park since 2000, which is longer than WordPerfect and
Novell combined. Mr. Finlinson wanted to address the argument of Canyon Park not being a
technology park. He stated that some of their tenants include NTT out of Japan, which is a $92
billion technology company, Wayfair, which surpasses Amazon in annual sales at $3.9 billion,
and BlueHost, which was the first lease after Canyon Park was purchased by the current
partnership. Fishbowl is another leading company at the park. Mr. Finlinson explained that they
City Council Minutes -June 14,2016 (p.13)


had an incubator program to help foster business growth with local entrepreneurs. Omniture, for
example, was an incubator company. However, they have since been purchased and relocated.
Mr. Finlinson stated that during the economic downturn, Canyon Park dipped below desired
occupancy rates; however, they have been in the high 80s and low 90s during the 16 years of the
current partnership. The majority of the tenants are technology companies. Friday they have a
technology company moving in called Social Dental, which will bring about 250 additional jobs
to Orem. He stated that they spend hundreds of thousands of dollars in taxes each year, in
addition to spending millions of dollars refurbishing the park. They are currently talking with
two companies to develop the eight acres of land. In conclusion, Mr. Finlinson requested that the
subject property remain a technology park. If residential is built, one of their current tenants has
a clause in their lease that would allow them to relocate, which would be a loss of 350 jobs.
Logan Harris, co-owner of building, said that he has heard two main concerns from the
neighbors tonight; first, the technology park becoming a call center and secondly, the weeds. He
believed that with planning and zoning, commercial development could occur that would take
care of those concerns. The park is very well kept, and the neighbors coming into the area will be
of the same caliber. Mr. Harris stated that the property by itself has only been available for less
than a year. There has not been enough time for it to be sold as a separate property to another
commercial entity. He was of the opinion that they need to give it more time before approving a
rezone for residential.
Mayor Pro Tem Spencer closed the public hearing.
Mr. Lentz asked about the tax revenue per acreage. As per the presentation, the average total tax
the figures only reflect the commercial buildings in the area in the form of property taxes. There
was further review and discussion pertaining to the total tax revenue for the Strawberry Fields
area, for both the developed and undeveloped portions.
Mrs. Lauret asked Mr. Finlinson about the demand for the office space, and if there were long-
term plans to develop more of it in the future. Mr. Finlinson said that they were working with
two different companies to develop the vacant eight acres. Up north, tenants have to pay more
per square foot, which gives Canyon Park an advantage. Mr. Finlinson noted that today there
were three different tours by potential tenants. They are able to remain competitive because they
are not the Class A type of location. While they get a fair amount of calls for call centers, only
about 80,000 square feet out of 900,000 is used for that purpose; everything else is leased by
technology companies. In response to a question from Mrs. Lauret, Mr. Finlinson said they do
not currently own the three acres; however, they have made several offers to purchase the land,
and have not been able to come to terms yet.
Mrs. Lauret invited Mr. Chatwin to return to the podium, and stated that she admires his homes
and the quality at which they are built. She asked about the size and sale price of the homes he
would build if the rezone were to be approved. Mr. Chatwin said that the homes would be 2,000
square feet per floor, would be single level with a basement, and would have a garage. The price
of the homes would be approximately $400,00o, depending on how they are equipped and
landscaped.
City Council Minutes - June 14, 2016 (p.14)


Mr. Sumner asked how much acreage is left in Orem for technology growth. Mr. Bench said that
there is one location in the CM zone, and that Canyon Park was the only other office park in the
City. Mr. Sumner stated that Orem is growing and running out of land for various uses. Although
Mr. Chatwin has a great product and proposal, Mr. Sumner was concerned about running out of
space for technology business. Furthermore, Canyon Park brings 7,0oo jobs to the area.
Mr. Lentz asked if Canyon Park's tax revenue was primarily property and not sales tax. He noted
that property tax is based more off the property itself, and less about whether or not it is
occupied. Mr. Bench said that the County will assess a base value depending on what is on the
property. The assessed value and property taxes of the undeveloped land will increase once a
building is developed. The base property tax for commercial is 100 percent taxable, whereas
residential is 55 percent taxable. Mr. Lentz asked about the twin homes, and if they would get a
tax discount for being owner occupied. Mr. Bench answered in the affirmative, noting that they
would get a 45 percent discount.
Mayor Pro Tem Spencer asked what the property taxes are for the vacant area, and Mr. Bench
saidhewasnotsure.
Mr. Seastrand said that he appreciated all of the input from Staff, Council and the public. In
looking at the area, he and his wife have driven through the DaVinci neighborhood and
 u a e a e    a n   e ne  
that he struggles with the need to change the zone, and asked if there is any reason why the
existing zone does not work. Typically, when rezoning from commercial to residential, there
there was an economic downturn and things stayed empty; however, there has since been a
significant increase in commercial movement. It appears that the park has a lot of activity within
the existing zoning. While he recognized that Mr. Chatwin builds beautiful homes, he did not
believe that there was enough reasoning behind approving the proposed rezone.
Mr.Lentz requested that staff look up the County's assessed value of the undeveloped land, so as
to include all the data points on the issue. The numbers as outlined in the 2015 Economic
Strategic Plan were briefly discussed while the County information was being retrieved.
Mr. Lentz asked if the ratio of square footage of office space per acre is similar to what to expect
on the three acre parcel. Mr. Bench said that Strawberry Fields is about 78 percent houses and 22
percent are streets and parks. Mr. Lentz said that the property tax value for the three acre center
is $10,000, of which the City would get $1,500. Mr. Bench stated that the value of the property
would come with the development. Mr. Lentz explained that if the parcel was developed similar
to the DaVinci development, it would increase by a factor of about three times the current
property value; however, 45 percent of those taxes would be reversed based on the owner-
occupied discount. On the other hand, if the property is developed commercially it would be
increased by a factor of 14 times the current property value, and would be 100 percent taxable.
Mr. Sumner stated that he was very concerned with Orem having insufficient space for
technologygrowth in thefuture.
Mr. Sumner moved, by resolution, to DENY the request to amend the General Plan land use map
by changing the land use designation on 3.02 acres at 676 East Timpanogos Parkway from
City Council Minutes-June14,2016(p.15)


Professional Services to Low Density Residential, amending Section 22-5-3(A) and the zoning
map of the City of Orem by changing the zone on said property from PD-6 to Planned
Residential Development (PRD) and amending Appendix “RR" by adding the concept plan and
building elevations of the Strawberry Fields PRD. Mr. Lentz seconded the motion. Those voting
aye: Debby Lauret, Sam Lentz, Mark Seastrand, David Spencer, Brent Sumner. The motion
passed unanimously.
Note: At 7:13 pm, Mayor Brunst and Mr. Macdonald rejoined the meeting.
6:00 P.M. PUBLIC HEARING - Rezone - 1425 South 800 East
ORDINANCE - Amending Section 22-5-3(A) and the zoning map of the City of Orem by
changing the zone on property at 1425 South 800 East from R7.5 to R6
Mr. Bench presented AnnJanel Allen's request that the City amend Section 22-5-3(A) and the
zoning map of the City of Orem by changing the zone on property located at 1425 South 800
East from R7.5 to R6.
The applicant owns a 16,552 square foot lot at 1425 South 800 East in the R7.5 zone. The
applicant would like to remove the house and subdivide the property into two lots. However,
although the applicant can meet the minimum lot size requirements of the R7.5 zone for both
lots, the applicant would be unable to meet the minimum R7.5 lot width requirements. The R7.5
zone requires a minimum lot size of 7,500 square feet and a minimum lot width of 75 feet.
The applicant would like to rezone the property to R6 which requires a minimum lot size of
6,000 square feet and a minimum lot width of 60 feet. The applicant's proposed two-lot
subdivision would comply with these requirements.
The General Plan land use designation for this property is Medium Density Residential. Under
this classification, appropriate zones are R6, R6.5, or R7.5. A rezone to the R6 zone would thus
be consistent with the General Plan land use designation.
A neighborhood meeting was held on March 16, 2016, with neighbors expressing support for the
request.
The Planning Commission recommends the City Council amend Section 22-5-3(A) and the
zoning map of the City of Orem by changing the zone on property at 1425 South 800 East from
R7.5 to R6. Staff supports the recommendation of the Planning Commission.
Juliann Bennett, the applicant, noted that she was present at the meeting.
Mr. Lentz asked if this property was designed for ADA specifications, to which Ms. Bennett
answered affirmatively.
Mr. Sumner asked Ms. Bennett to describe her plan. Ms. Bennett said she would live in one of
the homes, and noted that in about twenty years she will be wheelchair bound. Her sister
currently owns the home that will be torn down.
City Council Minutes - June 14, 2016 (p.16)


Mr. Macdonald asked if the site plan for the new home will be subject to standard City approval,
and Mr. Bench answered affirmatively.
Mayor Pro Tem Spencer opened the public hearing. There were no public comments, so Mayor
Pro Tem Spencer closed the public hearing.
Mr. Seastrand asked which direction the homes will face when the lot is split. Ms. Bennett said
that they will both be facing west to avoid potential hazards with ice. The homes will be side by
side, and will share a driveway. They will be single-family detached homes.
Mr. Sumner asked if the driveways would be problematic with 1400 South or 800 East. Mr.
Bench explained that there will be a minimum distance from 1400 South, which is 50 feet. Mr.
Sumner asked if this distance would interrupt traffic, and Mr. Bench answered in the negative.
Mr. Macdonald said it would probably be closer to 70 feet away from the street, thereby creating
better visibility coming out of the street.
Mayor Pro Tem Spencer moved, by ordinance, to amend Section 22-5-3(A) and the zoning map
of the City of Orem by changing the zone on property at 1425 South 800 East from R7.5 to R6.
Mr. Macdonald seconded the motion. Those voting aye: Richard F. Brunst, Debby Lauret, Sam
unanimously.
6:00 P.M. PUBLIC HEARING -Rezone - 1750 South 50 East
ORDINANCE - Amending Section 22-5-3(A) and the zoning map of the City of Orem by
changing the zone on property at 1750 South 50 East from R5 to R6
Note: At 7:20 pm, Mrs. Lauret briefly stepped out of the meeting.
Mr. Bench presented Philroy Brown's request that the City Council amend Section 22-5-3(A)
and the zoning map of the City of Orem by changing the zone on property at 1750 South 50 East
from R5 to R6.
The City Council recently amended the General Plan land use designation for the subject
property from Low Density Residential to Medium Density Residential. The applicant requested
a change to the General Plan land use map to facilitate the future rezone of the property. The
applicant now requests the property be rezoned from the R5 zone to the R6 zone.
The applicant desires to change the zone on his property from R5 to R6 in order to have an
accessory apartment which is not permitted in the R5 zone. The General Plan land use map
change to Medium Density Residential facilitates a rezone request to the R6 zone as it will now
be consistent with the General Plan. The appropriate zones under the General Plan Medium
Density designation are R6, R6.5, and R7.5.
Staff recommends that the City enter into a development agreement with the applicant to require
the applicant to submit and obtain approval of an amended subdivision plat that meets the
requirements of the R6 zone. The applicant's lot is currently one foot short of meeting the side
setback requirement of six feet on the north side of the lot. The applicant has previously
City Council Minutes - June 14, 2016 (p.17)


indicated that he will be able to acquire an extra foot of property from the adjoining property
owner (the applicant's daughter) to correct the setback deficiency.
The Planning Commission recommends the City Council amend Section 22-5-3(A) and the
zoning map of the City of Orem by changing the zone on property at 1750 South 50 East from
R5 to R6. Staff supports the recommendation of the Planning Commission.
Mr. Macdonald stated that this property came before the Council about a month ago. A
clarification was made that the one foot setback is in the side yard. The project timeline was then
come into compliance.
*Note: Mrs. Lauret returned to the meeting at 7:23 pm.
Mayor Pro Tem Spencer opened the public hearing. There were no public comments, so Mayor
Pro Tem Spencer closed the public hearing.
Mayor Pro Tem Spencer moved, by ordinance, to amend Section 22-5-3(A) and the zoning map
of the City of Orem by changing the zone on property at 1750 South 50 East from R5 to R6. Mr.
Lentz seconded the motion. Those voting aye: Richard F. Brunst, Debby Lauret, Sam Lentz,
Tom Macdonald, Mark Seastrand, David Spencer, Brent Sumner. The motion passed
unanimously.
6:30 P.M. PUBLIC HEARING- Create Orem Natural Resources Stewardship Committee
ORDINANCE/RESOLUTION - Adopting Article 2-36 of the Orem City Code creating the
OremNatural ResourcesStewardship Committee
Mr. Davidson explained that due to scheduling conflicts, Staff recommends the City Council
continue the public hearing concerning this request to the June 21, 2016, City Council meeting at
6:30 p.m.
Mayor Pro Tem Spencer moved to continue the public hearing concerning this request to the
June 21, 2016, City Council meeting at 6:30 p.m. Mr. Seastrand seconded the motion. Those
voting aye: Richard F. Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand,
RESOLUTION - Authorizing the Mayor to execute an interlocal agreement related to
providing Fire & EMS services to the Town of Vineyard
Mr. Bybee requested that the City Council authorize the Mayor to execute an agreement related
to providing Fire & EMS services to the Town of Vineyard.
The Town of Vineyard has been experiencing explosive growth over the last couple of years. In
response to their rapidly growing demand for Fire and Emergency Medical Services (EMS)
specifically, a more accurate method of charging for these services has been created. This new
methodology will actually provide a solution that is not only equitable for both Vineyard and
Orem, but is also feasible and responsive given the growth they've been experiencing.
City Council Minutes - June 14, 2016 (p.18)


Establishing a Common Level of ServiceStandard:
Primarily with the intent to find an apples-to-apples comparison method to assess this Charge for
Service, the City of Orem worked with Vineyard to obtain historical building permit information.
This information showed that by the end of Calendar Year 2015, the Town of Vineyard has a
total of 1,576 residential units (519 single-family units and 1,057 multifamily units). Vineyard
also has 14.55 acres of permitted industrial area and 264,467 square feet of commercial/retail
building space. Using the same basis that Orem uses to convert nonresidential areas into the
"Equivalent Residential Units" (or ERUs), Staff estimates this industrial acreage and retail
building square footage to have the same impact as 82 residential units (1 Industrial Acre = 4
ERUs and 43,560 building sq. ft. = 4 ERUs). This brings Vineyard's grand total to 1,658 ERUs.
Establishing ERUs is a great way to assess commonality now and into the future because it
inherently accounts for different land uses, different demand for Fire/EMS with different uses
and densities, and different population amounts both in terms of residents and workers.
The City of Orem estimates a total of 32,962 ERUs exists within its city limits. This ERU
information is important for establishing a common level of service standard. The level of
service that the City of Orem currently provides its citizens is one Fire Station for about every
9,988 ERUs and resident population of 28,485. There are three full fire stations within the
boundaries of Orem and Orem also benefits from the use of 30% of a fire station located in
Lindon City. This is important to note because the closer the Town of Vineyard gets to this
"benchmark" of average ERUs and population within their town boundaries, the closer they
should get to actually building another physical fire station.
Actual Costs:
The actual costs were determined by adding up all the annual costs associated with one full fire
station. This includes Operations and Maintenance expenses as well as Capital and Equipment
expenses, as listed in the following tables:
Operations&MaintenanceDescription
Employees (Full Compensation)
17.5 Firefighters, Captains, Batt. Chiefs, Inspector $1,595,280
Ancillary (Uniforms, Fuel, Hazmat, Dispatch, Etc.) $364,450
Administration @ 12% (Chiefs, Clerical, It, Hr, Etc.) $260,743
Full Worker's Compensation And Liablitiy Insurance $120,787
Total $2,341,260
Capital&EquipmentDescription Total Cost Useful Life Annualized Cost
Station (Fe&E) $3,800,000 40 $95,000
$375,000 100 $3,750
2AcresOf LandForStation
Equipment
Apparatus $625,000 14 $44,642
7 $14,732
0.5Apparatus(Reserve) $103,125
Ambulance $200,000 5 $40,000
0.75Ambulance(Reserve) $75,000 5 $15,000
$213,125
Total $5,178,125
City Council Minutes - June 14, 2016 (p.19)


Charge for Service Proposal:
By dividing the grand total of actual annual costs associated with each fire station of $2,554,384,
by the number of ERUs currently built within the Town of Vineyard of 1,658; Staff came to a
Charge for Service that is both equitable and feasible at $242.95 per ERU. This amount includes
the total cost that Orem residents currently pay per ERU, for the same level of service they also
enjoy, including proactive fire prevention efforts the City of Orem provides through inspections
during the development and building review process associated with each new building
development. This amount also includes the cost of an added benefit Vineyard requested to have
additional insurance coverage, rather than the City of Orem's high-deductible worker's
compensation and liability insurance coverage. Based on the total number of ERUs permitted by
the Town of Vineyard by the end of 2015, the total Charge for Fire & EMS Services would be
$402,808.
ResponsivetoFutureGrowth:
Since the costs listed above are in “today's dollars" the City should allow for regular updates on
an annual basis. The Charge for Service as outlined above also lends itself to respond to
Vineyard's rapid growth by having their staff submit building permit information to the City of
Orem, at the beginning of each new calendar year. To illustrate the difference this would have
made during the five-year period between 2011 and the end of 2015, consider the following
table:
Year
TotalERU's Charge For Fire &ems services
2011 69 $16,764
2012 147 $35,714
2013
354 $86,004
2014 1,355
$329,197
2015 1,658 $402,808
At the start of Fiscal Year 2017, this model proposes that Vineyard would pay the total annual
Charge for Service for the amount of permitted buildings by the end of the last calendar year
(converted into ERUs). All of the base costs (personnel, operations, equipment, capital, etc.)
would be reviewed annually for the following fiscal year, in order to keep up with the cost of
inflation.
The Assistant City Manager recommends that the City Council authorize the Mayor to execute
the following in an agreement related to providing Fire & EMS services to the Town of
Vineyard.
 e   s          
from the City's border to the lake, and Vineyard is growing exponentially. It will be important
for the City of Orem and Vineyard to look at putting in a new fire station within the Town of
Vineyard, and stated that this agreement is important.
Mr. Seastrand asked what Vineyard's input was to the agreement, and if they were on board with
all aspects of it. Mr. Bybee noted that the agreement was approved this past week at their
Council meeting, and that they were involved entirely in making the calculations.
City Council Minutes - June 14, 2016 (p.20)


Mr. Sumner said that when reading the agreement, he was under the impression that the Town of
Vineyard would be responsible for the costs of building a fire station. Mr. Bybee said that similar
to what occurred in the City of Lindon; they would purchase and build the building, and Orem
would provide staffing and equipment. The fire station would need to be built once Vineyard
reaches 5,500 permitted units.
Mr. Macdonald said that it is work like this that put Mr. Bybee on the “40 under 40" list from
Utah Valley Magazine.
Mayor Brunst asked when Vineyard expects to reach 5,500 units. Mr. Bybee explained that as of
the end of the 2015 calendar year, Vineyard was at 1,658 permitted units; he anticipates that this
same trend will continue.
Mayor Brunst moved, by resolution, to authorize the Mayor to execute an agreement related to
providing Fire & EMS services to the Town of Vineyard. Mr. Macdonald seconded the motion.
Those voting aye: Richard F. Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark
Seastrand, David Spencer, Brent Sumner. The motion passed unanimously.
6:00 P.M. PUBLIC HEARING - Adopt Final Budget Fiscal Year 2016-2017
ORDINANCE - Approving and Adopting a Budget for Fiscal Year 2016-2017, Adopting
Compensation Programs, Adopting Fees and Charges, Setting the Property Tax, Franchise
Tax, Municipal Energy Sales and Use Tax, Telecommunications License Tax, Transient
Room Tax, and E-911 Fee Rates
Mr. Manning and Mr. Nelson presented the City Manager's recommendation that the City
    1        
compensation programs, adopt the fees and charges schedule, set the property tax, franchise tax,
municipal energy sales and use tax, telecommunications license tax, transient room tax, and E-
911 fee rates.
On May 10, 2016, the City Council received a draft of the Tentative Budget for the Fiscal Year
2016-2017. Budget work sessions were held on March 29, April 12, and April 26, 2016, to
discuss the budget. In addition, two public hearings were held to review CDBG budget requests.
The purpose of this hearing is to consider the budget for Fiscal Year 2016-2017, along with the
compensation program and the fees, charges, and tax rates of the City.
Property taxes will not be increased, the franchise tax and municipal energy sales and use tax
rates remain at 6 percent, and the transient room tax stays at 1 percent. The telecommunications
license tax remains at 3.5 percent and the E-911 fee stays at $0.61 per month. Various
adjustments and/or additions to miscellaneous fees and charges are proposed in many
departments.
A $1.30 per month water base rate increase for a %" meter service (and a proportionate increase
for all other meter sizes) and a new tiered usage rate structure was adopted in the May 24, 2016,
Council meeting, and is reflected in the Water Fund. A portion ($0.25) of the base rate increase
City Council Minutes - June 14, 2016 (p.21)


is due to the allocation of Jordanelle water to the City (per agreement with the Central Utah
Water ConservancyDistrict).
The following corrections and/or adjustments were made to the original FY 2016-2017 Tentative
Budget document:
Water Fund revenues were increased by $1 million due to the City Council's approval
·
at the Council meeting on May 24, 2016, of an increase in the base rate as well as
instituting a new tiered water use rate structure. A corresponding expenditure increase
On page 15 in Exhibit “B" Fees & Charges of the FY 2016-2017 Tentative Budget
under the Sewer Rates section, the Base Rate description was changed from
"connection" to “"living unit’ and the Base Rate-Multiple Units description was
D  sm o  , m n  ns, on n is, o 
"for each additional living unit."
Mr. Manning said this has been a six-month process, and he is grateful for the help from Council
and Staff. This year the City reached the milestone of exceeding a $100 million annual budget.
Some of the goals that were outlined at the Council Retreat included looking at City Facilities
and addressing UTOPIA. Mr. Manning explained that several new positions will be created to
keep up with the City's demanding work load. Additionally, operational expenses are expanding,
a fleet replacement program has been put into place, and there are several forthcoming capital
projects. Mr. Manning noted that the amount dedicated to Jordanelle will stay in place until
2047.
Mr. Manning reviewed the aforementioned tax rates, and explained that rates are decreasing.
Utah is a revenue driven state, meaning property values have increased. If one's home this year
was worth a quarter of a million dollars, they would have paid to the City $227; this year they
will pay $213. However, home values may change for various reasons. Mr. Manning explained
that of the total budget of $101 million, $85 million are new, ongoing revenues. Transfers back
and forth are just under $17 million, and the City will have a small surplus.
Mr. Manning said that part of this public hearing is to discuss transfers. For many years, the City
has transferred money from utility funds to the General Fund to keep overall cost of services
low. This includes funds for the City Center, Police, and Sewer, to name a few, and the City pays
for fair market value for what is used. If the City makes cash payments to those respective
departments, then the General Fund has to come up with those same amounts in cash. There are a
couple of ways of coming up with these funds; the City can either raise taxes or reduce services.
Mr. Manning stated that the same people pay for both utilities and property taxes. In order to
make services available at a rate to which residents are accustomed, the City goes through this
transfer process. Only in the last three years has the City been required to show how this money
has been moved.
The General Fund is the City's largest fund, and accounts for $52 million. Approximately $47
million within the General Fund is new, ongoing money. The Public Safety departments also
bring in a fair amount of revenue through the Vineyard contract. Mr. Manning reviewed several
other revenue sources, and pointed out that the biggest revenue generator is sales tax. In the
upcoming Fiscal Year, Staff has conservatively estimated that the City will bring in
approximately $20 million.
City Council Minutes - June 14,2016 (p.22)


Mayor Brunst asked about a 20 percent to 55 percent bleed-in to the community with regards to
sales. Mr. Manning said that while the bleed-in percentage is not as strong as it used to be, Orem
is a commercial hub in Utah County.
Mr. Manning stated that the bulk of the General Fund is used for personnel and operational
expenses; it is also used for CIPs and fleet replacement. This coming year, just under $1.5
million will be in new personnel costs. Furthermore, there will be a 3 percent increase for
benefitted employees, and 1 percent increase for nonbenefitted employees.
Mr. Spencer said that figures for personnel could flex upwards in order to retain employees. He
stated that he wants to safeguard employees. Mr. Davidson explained that Staff assesses
personnel every year, and in the event that they need to do something outside of the bounds of
the budget, a budget amendment is presented to the Council for review and approval. As of now,
Staff feels confident that they have a system that compensates employees fairly and
competitively as compared to other cities.
Mr. Macdonald stated that the amount could be allocated flexibly.
Mr. Lentz asked if full-time employees were allocated extra monies as they deemed fit in the
same way as part-time employees. Mr. Davidson stated that a department director may allocate
personnel funds as they see fit, and explained that employees are rewarded based on
performance.
Mr. Manning reviewed several new positions that have been added for the new Fiscal Year. New
benefitted positions include:
Building Inspector
Fleet Mechanic
·
Police Officers (3 new)
PublicWorksManagement Analyst
·Public Works Technician (Water)
· IT support (Internet)
The Building Inspector has been built into the budget by raising building fees, and the Fleet
Mechanic will be funded through utility fees and the General Fund. Mr. Spencer asked if these
positions had been filled, and Mr. Manning answered in the negative. He did not know when the
new employees would come on board. It was noted that the numbers presented in the budget
reflect total compensation and not just salaries.
New nonbenefitted positions include:
· Human Resources Intern
Development Services Technician
Planning Intern
Staff anticipates that when the City renews the indigent defense contract they will have
additional staffing needs. The attorneys have reached a point where they need more staff support.
City Council Minutes - June 14, 2016 (p.23)


Ongoing Operations and Expansions were reviewed as follows:
· Tuition reimbursement program
· In-house trainings
Paramedic equipment replacement
Murdock Canal Trail maintenance
Fleet maintenance
Road funds for preventative maintenance
Various projects near Utah Valley University
?
Debt service
Mr. Manning noted that while the City does not own the fleet, they are responsible for
maintaining the vehicles. He also mentioned that IT has their own fund to meet all of their needs.
The water rates were increased this May, which will be reflected in the final budget. New money
coming in will go towards the water capital program for various projects. Mr. Manning explained
that water reclamation is ongoing, and that as of July 1", the previously passed per door fee will
go into effect. The City is working diligently to implement the Storm Water Plan, which includes
a series of steps. Revenues come from various sources to meet debt service requirements, and
General Obligation debt is backed by General Fund sources. Mr. Manning stated that the City is
currently paying more principal than interest, meaning they are in the downward slope with their
current debt. With regards to the recreation fund, the City is currently seeing a trend where there
are more costs than revenues. This is an issue which Staff has discussed at length, and they need
to come up with a plan to keep that fund stabilized. The solid waste fund is purely a contract, and
the rates are staying the same this year. Mr. Manning then provided a brief overview of the
City's self-insurance, risk management, and the community development fund.
Mr. Manning said that he was not planning to address many of the fees, but stated that Staff can
address any questions the Council may have. Mr. Hirst said that the rates for the Orem
Timpanogos Aquatics Club (OTAC) will increase, to change how pool time is charged. These
changes will put them on par with neighboring teams.
Mayor Pro Tem Spencer opened the public hearing. There were no comments, so Mayor Pro
Tem Spencer closed the public hearing.
In response to a question from Mr. Sumner, Mr. Davidson explained that the City's Building
Inspectors are extremely busy, and often have to run from one project to another. Mr. Macdonald
stated that the hiring of a new Building Inspector was discussed for months in various meetings.
Tonight's presentation regarding that and other new positions was a simplified overview of more
extensive discussions that have already taken place.
Mr. Lentz said that at the Council Retreat, they discussed that UTOPIA was to be a priority. He
               s   
established before voting on the budget. He realizes that budgets can be amended later; however,
he expressed concerns that the whole City is paying taxes on a debt for a service that less than
half of the City can access. Only about 48 percent of the City is currently eligible to connect, and
if that number increased to 70 percent, it would be almost impossible to get a majority of the
City on board with the idea of investing more into the project. He would like a long-term plan in
place where the UTOPIA and UIA boards are focused on driving business revenue, as well as
City Council Minutes - June 14, 2016 (p.24)


in making the service available to everyone who is paying for the service. From his perspective,
the current budget, as it stands, sends a message that the City is moving in the opposite direction.
He wanted to make sure that the Council's actions were reflective of their goals.
Mayor Pro Tem Spencer expressed concerns about Orem Youth Baseball and their fees. He has
spoken to the football and soccer programs, but has not spoken to the Salt Lake Storm or the
Rangers. In total, approximately 87 percent of Orem youth participate in these sports. He stated
that while the participation fee was fine for Group 2, he proposed putting Orem Youth Baseball
on the same line as Group 2 rather than Group 3. He also stated that he wants to get rid of the
field prep fee, and that certain groups are getting a better deal than others.
Mr. Davidson said that tonight the specific conversation is supposed to be about a proposed
budget, and if the Council wishes to amend fees within the budget they have the flexibility to do
that. However, if the Council wants to modify recreation funding allocations, these actions would
Mr. Lentz asked if the reason why baseball fees were higher was because the fields required
more maintenance, and Mr. Hirst answered affirmatively. The only maintenance required for
soccer is to mow the grass; the soccer programs also purchase their own equipment. Orem City
provides both field maintenance and labor for Orem Youth Baseball. Mr. Hirst recommended
looking at all of the sports fees in a budget amendment in the near future, rather than tonight.
Staff noted that the new sports fees will be assessed next sports season, rather than this year.
Amending fees in July is the worst time because they have been advertised as otherwise.
Therefore, the City is about a year and a half out from implementing a change.
s   n po o   n o   s  
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discussion on how much Orem representation is on those teams.
Mr. Sumner stated with regards to soccer, The Rangers and Celtic Storm are basically 90 percent
nonresidents. Their field time infringes upon the field time of community groups, and they are
not paying much more than local leagues. Mr. Hirst said that on a participant basis, private
organizations pay much higher than the City's recreational programs. However, because they are
elite groups, Orem needs to decide whether or not to bump them out of the City. Mr. Sumner
said that priority should be given to Orem youth.
Mr. Davidson stated that the direction Staff received was to find a way to make those who use
the facilities pay for them. They have approached the matter with the philosophy that there
would be a certain discount to local organizations with predominantly Orem youth participants.
Mr. Seastrand said the intent was to find something that was fair all around, and that he would
like input from the Recreation Advisory Commission on the matter. He stated that he was
comfortable moving forward with the current rates, and reassessing them at a later date.
Furthermore, he was favorable of finding a policy that not only covers costs equitably, but also
encourages kids to play in a good environment.
City Council Minutes -June 14, 2016 (p.25)


Mr. Davidson said that it will be impossible to please everyone when developing a fee schedule.
He noted that Orem currently offers the best field rates in the County, as compared to Alpine
School District and other cities. There was continued discussion on the matter.
Mr. Seastrand stated that having been on the Council for many years, he remembers the
recession era, at which time Orem took a significant hit and had to make sacrifices. When he
looks at the budget, he looks at it from the standpoint of long-term sustainability, and whether or
not they would be able to address certain matters if there were to be another economic downturn.
He asked Mr. Davidson if he feels that the City has developed the basic structure of the City's
budget to a point that cuts would make it a serious struggle for them to continue operating.
Mr. Davidson said that there were a few things done in this Fiscal Year budget to soften what
potential fall could result in the future, if the economy were to turn in the other direction. For
example, at the time of the economic downturn there were several positions that were eliminated
because of the decline, particularly in development. However, now that the City has these
resources, it becomes necessary to provide enough staffing to meet the demand. That being said,
Staff would have to consider the future of these new positions if the economy went south. Mr.
Davidson said that the City's Building Inspectors are extremely busy right now. They are about
to embark on some significant CIPs, and the new proposed positions are appropriate based on the
        d     
included $710,000 in this budget as contingency, which will remain as unallocated funds. If
economy goes south, the City still will have this buffer to soften the blow. However, if the
economy continues to be healthy, then they can dedicate those funds to additional City priorities.
He stated that the majority of the budget is focused on providing core services.
Mr. Seastrand said that he likes how the City has been aggressive in building up reserves. He
takes pride in the appearance of the City's Police and Fire Departments. Overall, he feels that the
budget is sound, and that they are appropriating the funds to make a significant impact. As a
City, they need to keep high alerts with regards to what could happen in the future, and protect
taxpayer dollars as best as they can. Mr. Davidson said that when the City went through the last
downturn, there was a question as to how they were going to meet their UTOPIA obligation. He
stated that they have found a way to meet that requirement with the existing budget, especially if
revenues continue to grow. This was not the position that the City was in five years ago.
Mayor Brunst said he would like to see a recreation study as compared to other cities. He
commented that the budget was well done, and stressed the importance of building up the City's
reserves during good economic times. He was confident that should there be another downturn
the City would be able to adjust accordingly. While he does not like the UTOPIA debt, he feels
that they are going in the right direction. The Council briefly discussed reviewing fees in an
upcomingCityCouncil Premeeting.
Mayor Brunst moved, by ordinance, Approving and Adopting a Budget for Fiscal Year 2016-
2017, Adopting Compensation Programs, Adopting Fees and Charges, Setting the Property Tax,
S          
Transient Room Tax, and E-911 Fee Rates. Mrs. Lauret seconded the motion. Those voting aye:
Richard F. Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand, David Spencer,
Brent Sumner. The motion passed unanimously.
City Council Minutes - June 14,2016 (p.26)


COMMUNICATIONITEMS
Therewereno CommunicationItems.
CITYMANAGERINFORMATIONITEMS
There were no CityManager Information Items.
OFOREM
Mr.Macdonald moved to adjourn to a meeting of the Redevelopment Agency of the City of
Orem.Mr. Lentz seconded the motion.Those voting aye: Richard F. Brunst, Debby Lauret, Sam
Lentz, Tom Macdonald,Mark Seastrand,David Spencer, Brent Sumner.The motion passed
unanimously.
The meeting adjourned at 8:31 p.m.
CORP.ORATE
UTAH
lomaR.deaver
DonnaR.Weaver,CityRecorder
Approved:July12,2016
City Council Minutes-June14,2016（p.27)