City Council · 2016-09-13

CITY OF OREM
CITYCOUNCILMEETING
56 North State Street Orem, Utah
September 13, 2016
3:00 P.M. WORK SESSION - PUBLIC SAFETY TRAINING ROOM
CONDUCTING Mayor Richard F. Brunst
ELECTEDOFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, Mark Seastrand, David Spencer 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; Karl Hirst, Recreation
Department 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, City Engineer; Steven Downs, Assistant to the
City Manager; and Jackie Lambert, Deputy City Recorder
DISCUSSION/Q&A - Impact Fees Study - Zions Bank Public Finance
Mr. Bybee said Zions Bank Public Finance (ZPFI) was selected through an RFP process to help
the City with impact fees analysis and a Parks Master Plan. He said ZPFI was working with a
team from Landmark Design, and the City liked the amount of public input ZPFI had figured
into their schedule. He turned time over to: Suzy Becker and Johnathan Ward for the
presentation.
Ms. Becker said ZPFI was excited to work with the City for this process. She said the purpose of
their presentation was two-fold: first, to walk the City through the process and second, to give
background on what impact fees are. She said the legislature regularly adjusted the code on
impact fees so it was good to review them often.
Impact Fees Analysis -- City of Orem
What is an Impact Fee?
OA one-time fee charged to new development to offset the capital costs of public
infrastructure associated with that new development
Must be system (v. project) capital improvements
O
System: community park with soccer fields, collector street
 Project: pocket park, neighborhood street
Connection Fee
City Council Minutes - September 13, 2016 (p.1)


One-time charge paid by new utility customer to cover the cost of setting up the
customer's services
Do not deal with systemwide capital improvements
Impact Fees -- Eligible Public Infrastructure
Water (culinary and secondary)
Sewer
Storm Water
Municipal Power
Roadways
o
Parks, Recreation, Open Space and Trails
o
Public Safety
Team Members
Landmark Design will be preparing the Parks Master Plan
Description IFFP IFA
Parks and Recreation ZPFI ZPFI
Culinary Water Bowen Collins ZPFI
ZPFI
Sewer Bowen Collins
Storm Drain Bowen Collins ZPFI
Public Safety ZPFI ZPFI
Transportation Horrocks ZPFI
*IFFP = Impact Fee Facilities Plan
*IFA = Impact Fee Analysis
Where are the Legal Requirements Found?
o Case Law
 Rational nexus between fee charged and benefit received
Impact Fees Act is found in Utah Code §11-36a
Specific requirements for Utah
Example: Cannot charge impact fees for fire vehicles that cost less
than $500,000
What are the Basic Documents Required?
0 Impact Fee Facilities Plan (IFFP)
Existing service levels
Park acres of trail miles per capita
GPD per household for water
Proposed service levels
Excess capacity
Demand created by new development
■
Consumption of excess capacity
New facilities needed and cost
Impact Fee Analysis - Proportionate Share
"Buy-In" excess capacity component
Construction cost of new facilities
■
Other costs -- engineering, financial, fund balances
■
Financing and credits
Amount perAverageDaily Trip (ADT)
RoadwayExample
Buy-In toExcess Capacity $123.20
New Construction $212.33
Consultant Cost $0.08
($56.20)
Fund Balance Credit
City Council Minutes - September 13, 2016 (p.2)


TOTALperADT $279.41
·Some CommonIssues
Definingservice areas
Projectv.Systemimprovements
Establishing service levels (Parks Example-Brent Bateman)
ReimbursementAgreements
O
O OutstandingDebt-Credits
ExcessCapacity-Actualcosts arenot available
O
ImpactFeeFundBalances
DetailedDocumentation
O
Schedule
Sept OctNov DecJanFebMar Apr
Master Plans
ParksMasterPlan
ImpactFeeFacilitiesPlan
CulinaryWater,Sewer,and
Transportation
Parks
PublicSafety
Impact Fee Analysis
Water,Sewer,Storm,Roads
Parks
Ms.Beckersaid Utah lawgave a clear list of thosepublicinfrastructures thatwere eligiblefor
impact fees. The only one ZPFI would not be addressing was municipal power, as Orem did not
have its own municipal power company. She said impact fees facilities plans (IFFPs)were
required by law, the most important part of which was to identify the service level.
Mr.Bybee asked Ms.Becker to clarify the differences between capital facilities plans and impact
fees facilities plans.Ms. Becker said the IFFPs were specifically designed to identify those
facilities that would be put in place in the next six to ten years because of new growth.She said
if therewas nogrowth there would be no needfor theIFFPs.Mr.Bybee added that theMaster
Planfor capital facilities would likely gobeyond the six to ten year timeframe.
Mayor Brunst said Orem had not really done impact fees in the past, but most cities did. Mr.
Macdonald asked if Provo had impact fees.Ms.Becker said that most cities did have impact
fees, particularly rapidly growing areas like Saratoga Springs or Herriman. She said she would
provide information to the Council showing impact fees in surrounding cities.
Ms. Becker said even if a city was not growing rapidly but had purchased land in anticipation of
growth,new development could then buy into the excess capacity in those existingfacilities and
repay the General Fund. Ms. Becker reviewed some of the common issues with impact fees,
including defining service areas,establishingservicelevels,reimbursement agreements,etc.She
added that developers closelywatchedopportunitiesto securehistorical prices bybuyingin to
excess capacity.
Mr. Lentz asked if it would be possible to get more specific for areas of need. Ms.Becker said
thatwouldbeestablished asthey narrowed thefocus of theIFFP and IFA.
City Council Minutes-September13,2016(p.3)


Ms. Becker finished her presentation by showing a proposed schedule or timeline for the various
plans.
Mrs. Lauret said when she previously worked for American Fork City they had implemented
impact fees right before the economic recession. She asked how often those fees should be
reexamined. Ms. Becker said they should be examined every few years, three to five years, and
any time there was a dramatic change. Mr. Bybee added that State guidelines specified that they
should be examined every five or six years.
Mr. Lentz asked about a study for all city fees, not just impact fees, and if this would be done in
studies because there were State laws and case law that needed to be specifically followed for
impact fee studies. Mr. Manning added that only a limited number of organizations could
conduct such studies, and they did not want to overburden those groups.
Mr. Ward said that this was the process of refinancing water and storm water bonds, and impact
fees on those systems. He said projects that were impact fee eligible would produce revenues
used to offset the costs of improvements. He estimated that 99 percent of municipalities used
impact fees for that reason.
DISCUSSION - CARE Survey Update
Mr. Downs introduced Scott Riding and Kyrene Gibb with Y2 Analytics to present information
about the upcoming arts spending survey.
Mr. Riding said when they conducted surveys like these they tried to write questions that were
broad enough to show patterns and give direction through results. It was not fair to place
complicated budget figures before the general public and ask them to make sense of them. He
said they would eliminate jargon from the survey, and had drafted the questions in such a way
that respondents could weigh in without in-depth knowledge of the subjects.
Ms. Gibb said they would look at how funds were currently distributed and the participation in
those programs, and how the allocation of grant money was perceived and prioritized by the
public. Mr. Riding specified that they were not going to ask whether residents had agreed with
how money was allocated in the past, but they would focus on the present and future.
Mayor Brunst asked about a past survey conducted on the same topic, and if that survey was
being considered in the drafting of the questions. Mr. Riding said they had borrowed or asked
surveys. Older surveys had been canvas-type but the survey Y2 Analytics would conduct was a
scientific survey.
Mr. Seastrand asked if the Orem Arts Council had been included in any of the discussion. Mr.
Downs said they had so far met with the CARE Advisory Commission members, and they could
receive input from the Arts Council at their upcoming meeting. Mr. Riding said they were
willing to speak to any group that may have valuable input, but they were working under the
time constraints the City had given them.
City Council Minutes - September 13, 2016 (p.4)


Mr. Downs said criteria selection and diversification of allocations was the driving force behind
the survey.
Mr. Riding said Y2 Analytics had a contract with the City and they spent a lot of time and cost
recruiting panelists that geographically and demographically represented the City. He said in
terms of survey research, they operated at a level higher than industry standard.
Mr. Sumner asked how they worked with the UVU and BYU student populations. Mr. Riding
said UVU President Holland's office had been helpful in recruiting student panelists, because
that group was particularly prone for turnover. When they broke down the results of the survey
they showed student and non-student populations broken out.
Mr. Lentz suggested that giving Y2 Analytics more time would not be a problem so they could
get more accurate information to the CARE grant applicants. Mr. Downs said they planned to
come back to the Council on October 25 with survey information.
DISCUSSION - Sober Living Facilities
               
facilities be raised from six occupants to eight occupants. He said Renaissance Ranch, which
operated two sober living facilities in Orem, had requested an increase for reasonable
accommodation. Staff believed it would be in the best interest of the City to allow for the
increase under fair housing regulations.
In response to questions from the Council, Mr. Earl said that sober living facilities did not have
any square footage requirements or restrictions. Based on federal Fair Housing requirements,
they could be located in any residential zone and there was little the City could do about the
locations of the facilities. Mr. Earl said many cities throughout the state had tried to deny
requests for reasonable accommodation from sober living facilities and were being taken to court
of the denials. He clarified that in those cases the cities usually lost the case and were often
required to pay substantial fees afterward.
Mr. Earl said they wanted to increase the number of occupants from six to eight for some of the
following reasons: (1) it put the City in a more defensible position in the case of a lawsuit. Some
lawsuits required that substantial fees be paid out if the case was lost, including the plaintiff's
attorneys fees. (2) He wanted to put the City in a better position to defend against requests for
more than eight residents. Mr. Earl said that typically sober living facilities were refurbished
single-family homes and so eight would be a reasonable maximum number of occupants.
However, groups occasionally purchased larger facilities in the hopes of having more beds and
reaping more revenue.
In subsequent discussion the Council expressed concerns about the following issues:
 Later requests for even higher occupancy rates
·
Parking
·
 Neighbors’ rights in residential areas
·
· Volume of 911 calls and public safety
City Council Minutes - September 13, 2016 (p.5)


Occupant evictions from sober living facilities for failed sobriety
· Zoning and City Code issues and enforcement
·Policies of neighboring cities for sober living facilities
Mr. Earl said it was his recommendation that the occupancy level be changed now to eight in an
effort to forestall some of the issues. He said most sober living facilities felt that having eight
occupants made their business more financially viable. He added that the Courts seemed to be
comfortable with eight as the highest number of occupants.
Mr. Earl said most times residents of sober living facilities did not have cars or were restricted
from driving, so parking was not typically an issue. Facility operators generally did not want
residents to have vehicles, and they would often position the facilities near bus stops or public
transit options.
Mr. Earl said the neighbors’ rights as it pertained to sober living facilities were the same of any
other neighbor. These kinds of facilities were required to be treated as any other dwelling under
Fair Housing requirements. He said neighbors were within their rights to contact police if there
were disturbances or disorderly conduct from residents, but they were to be treated like any other
residence.
Chief Giles said he was aware of some calls to sober living facilities but did not believe it was a
much higher volume of calls. Mr. Earl added that operators of the facilities usually had very
strict rules for their residents, so people regularly causing problems or failing in their sobriety
would likely be evicted from the home.
Mr. Earl said sober living homes were an exception to the rules about unrelated individuals
   s ss e    e s  s   
which carried with it building and fire inspection requirements. As far as the rules of occupancy
applying retroactively, operators would not need to reapply. He said they could not enforce
staffing requirements; other cities had tried to do so and been penalized. The general rule of
thumb was that residents of sober living facilities could not be treated according to stereotypes.
Onsite staff was not included in the number of occupants.
Mr. Earl said operators felt the higher occupancy allowed them to pay for more staff and to have
a better operated facility. Some would say allowing only six residents would not work for them
financially. Mr. Earl agreed that the City should not be concerned about the profit margin of a
sober living facility but they still needed to follow federal requirements and court mandates. He
said Orem had been in a better spot defensibly than many Utah cities because they had included
sober living facilities as permitted uses many years ago. Having it as a permitted use had not
drawn a disproportionate number of sober living facilities to the city, so he did not believe
changing the occupancy would either.
They had been able to regulate them to the greatest extent that the Fair Housing Act allowed.
Orem required thorough screenings, background checks, a 30-day sobriety requirement before
entering, random testing twice a week, four site visits every week, etc. Mr. Earl said they had
City Council Minutes - September 13, 2016 (p.6)


living facility operators took the rules very seriously for the viability of their programs and were
generally compliant with these requirements.
Mr. Earl asked the Council to consider the proposal of changing the occupancy from six
residents to eight, and said they would bring the matter before the Council at a future meeting.
UPDATE - All-Together Playground Build
Mr. Downs said that the week of September 5 through September 11 had been the build for the
All-Together Playground. He said over 20,000 man-hours and 4,100 unique volunteers had come
out to help build. He said the build brought the community together, and had been a great
experience for everyone that participated. Mr. Downs said there was ongoing fundraising and
still more pieces of the playground that would come together. They planned to have a ribbon
cutting for the park once all the pieces were in place. He said they anticipated a VIP night on
October 3 for build captains and those that had contributed significantly and then the ribbon
cutting for the public on October 4, 2016.
Mr. Macdonald asked about the major groups that had helped build. Mr. Downs listed many of
the major groups that had come to help build. He gave special thanks to Kena Jo Mathews with
Habitat for Humanity for helping with the organization of the build, and the groups that had sent
skilled workers and specialized tools to help. He apologized if he left any of the major groups off
of his list, but he said the volunteer effort had been amazing from Orem residents and businesses.
He was thrilled with the response from the community.
Mrs. Lauret said she had spoken with employees with the Leathers group (the playground
q a p  sd aa   n  sm s p n  (sy
efforts and the professionalism of all those who had helped throughout the build. Mr. Davidson
led the group in a round of applause for Mr. Downs and Mr. Wolfley.
UPDATE - Referendum Petition for BRT Project
Mr. Davidson said oral arguments for the petition were scheduled on October 14, 2016 at 10:15
a.m. at the Scott Matheson Courthouse in Salt Lake City. Mr. Stephens said the subject of the
oral arguments was the general “referrability" of the petition subject and the request for the
preliminary injunction.
Mr. Davidson said Orem had retained private counsel, as had Provo, for this matter. He said
Orem and Provo legal departments had been coordinating, but said there were some nuances
between the two cities’ issues. He said construction on the Provo/Orem TRIP project was
underway and utility work was taking place. He said Utah Valley Constructors were in joint
operations with Kiewit and Ww Clyde companies. Mr. Davidson felt the project was in a good
place, that they were receiving green lights and letters of no prejudice. They remained committed
to the project.
Mayor Brunst said the project was moving forward. Landscaping had been decided, buses had
been ordered, etc., and he believed it would be a real benefit to the community in the future. He
City Council Minutes - September 13, 2016 (p.7)


said the federal administration that had given grant money for the project was as anxious as the
cities were to see the project completed.
5:00 P.M. STUDY SESSION - PUBLIC SAFETY TRAINING ROOM
CONDUCTING Mayor Richard F. Brunst
ELECTED OFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, Mark Seastrand, David Spencer and Brent
Sumner
Jamie Davidson, City Manager; Brenn Bybee, Assistant
APPOINTEDSTAFF
City Manager; Greg Stephens, City Attorney; Richard
Manning, Administrative Services Director; Bill Bell,
Development Services Director; Karl Hirst, Recreation
Department 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; Steven Downs,
Assistant to the City Manager; and Jackie Lambert, Deputy
City Recorder
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
Mr. Davidson updated the Council about some upcoming agenda items. He specified that the
meeting of November 29, 2016 did not have any items scheduled for Council action, and
suggested that the Council might consider canceling the meeting. Due to the sparse agenda and
the timing of the meeting just after the Thanksgiving holiday, the general consensus of the City
Council was to cancel the November 29, 2016 City Council meeting.
Mr. Davidson said the Timpanogos Storytelling Festival announced, through joint press release
with the City of Orem, that the Festival would be moving to Thanksgiving Point in Lehi, Utah as
early as 2017.
Mayor Brunst asked Mr. Davidson to read the press release, which he did. Mayor Brunst thanked
Charlene Crozier, Library Department Director, for her hard work and the work of her dedicated
staff to make the Festival a success year after year.
Mr. Sumner said he was concerned about on-street parking issues near housing developments.
He thought it would be valuable to discuss how parking was calculated in the future.
City Council Minutes - September 13, 2016 (p.8)


The Council adjourned 5:47 p.m. to the City Council Chambers for the regular meeting.
6:00 P.M. REGULAR SESSION-COUNCIL CHAMBERS
CONDUCTING
Mayor Richard F. Brunst
ELECTED OFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, Mark Seastrand, David Spencer, 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; 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,
Communications Specialist; and Jackie Lambert, Deputy
City Recorder
INVOCATION/
INSPIRATIONALTHOUGHT Sandy Boley
PLEDGEOFALLEGIANCE
Michael Chantry
APPROVALOFMINUTES
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 referred the Council to the upcoming events listed in the agenda packet.
Appointments to Boards and Commissions
There were no appointments to boards and commissions.
Recognition of New Neighborhoods In Action Officers
There were no new NIA officers for recognition.
City Manager Appointment
On advice and consent of the Council, Mr. Macdonald moved to appoint R. Bryant Christensen
to the Board of Building and Fire Code Appeals. Mr. Seastrand seconded the motion. Those
City Council Minutes - September 13, 2016 (p.9)


voting aye: Richard F. Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand,
David Spencer, Brent Sumner. The motion passed unanimously.
PERSONALAPPEARANCES
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.
Sandy Boley, resident, said she was an active member of the Senior Friendship Center and the
Utah County Republican Women organization. She asked that the City Council keep seniors in
mind for opportunities for service. She said seniors had much to give to the community and
many were ready and willing when called upon. She also invited the City Council to attend
events attheSeniorCenter.
James Fawcett, resident, wanted to share a handout with the City Council. He said a Water
Master Plan was completed in April, and he felt the firm Bowen Collins & Associates had taken
a long time to hash out the details of the plan. He said he and Hans Andersen had pointed out
issues with Orem's water plans, particularly in regards to water storage. He said the election was
on a Tuesday night and that same Friday engineering companies were meeting together on how
to handle water storage in Orem. Mr. Fawcett said the City Council had not discussed the water
storage interlocal agreement with the Central Utah Water Conservancy District (CUWCD) for
storage of Vineyard's water. He said Bowen Collins was talking about $100 million in more
piping. He said someone should shut the valves off to Vineyard and have the wholesaler supply
the water, and if the wholesaler needed to run a pipeline through Orem then the City could give
them use of the property for free. He thought it should be to the benefit of Orem, not Vineyard.
He also felt KC Shaw should be removed from the Public Works Advisory Commission.
Tyson Dixon said he was a homeowner in Orem and an owner of Renaissance Ranch. He said
they worked with 25 staff members and over 65 clients, and one third of those clients were in
Orem. He said one third of the clients were in sober living homes, and he said there were strong
arguments for increasing capacity in sober living facilities. His first point was that sober living
facilities created therapeutic community environments to help residents be strong and supported
and held accountable in their sobriety. His second point was that an increase in occupancy would
help financially. He said the cost to staff the homes and support the individuals was extensive,
and increased occupancy would go a long way in helping that.
Alema Harrington said he was also an owner of Renaissance Ranch. He said he was advocating
the occupancy increase from six to eight in sober living facilities. He said he was a substance
abuse counselor and was himself a recovering addict, so he knew firsthand how important these
programs were for individuals and families. They wanted their clients to succeed, which would
not only benefit them as individuals but would benefit the community. He felt increasing the
Sara Bateman, resident, said she loved the community and enjoyed the opportunity to serve. She
said the playground build had fed her soul, and it was nice to work with City staff, Habitat for
Humanity, and other groups in the community. She came to the meeting to invite the City
Council to the Fall Free Swap to be held at the Rotary Pavilion at the City Center Park on
City Council Minutes -September 13,2016 (p.10)


September 24, 2016, from 9:00 a.m. to 1:00 p.m. She said the Free Swap was like a yard sale that
allowed residents to bring things they were no longer using that other could benefit from and
everyone could share and shopfor free.She said thisyear they were adding a newelement where
they had reached out to local produce growers to sell some of the healthy, but less aesthetically
pleasing, produce. They were calling it the Free Ugly Fruit Stand and hoped it would encourage
people to eat more local produce.
Andrew Redd said he was a grateful recovering addict and a coordinator with Renaissance
Ranch. He had been an Orem resident for eight years, and had seen the disease of addiction
affect families in Orem. He said his relationship with his wife and kids had been so affected by
his addictions it was not safe for him to live at home, but as there were few resources in Orem he
went to a sober living facility in Salt Lake City. He said he had met many who were able to hold
jobs, who were fathers and mothers who wanted to be near their families, but still needed a place
to live where they would be able to develop coping skills and be held accountable. He was an
    d   n  n i      e 
they need.
CONSENT ITEMS
There were no Consent Items.
SCHEDULEDITEMS
6:00 P.M. PUBLIC HEARING-Affordable Senior Housing Development Standards
ORDINANCE - Amending Section  22-12-7 of the Orem City  Code pertaining to
development standards in the Affordable Senior Housing (ASH) overlay zone
Mr. Bench presented Development Services’ request that the City Council amend Section 22-12-
7 of the Orem City Code pertaining to development standards in the Affordable Senior Housing
(ASH) overlay zone.
The Affordable Senior Housing (ASH) overlay zone was enacted by the City Council in 2012 to
provide affordable housing for low income seniors. The ASH zone was applied to all
residentially zoned property located within approximately one half mile of State Street.
The ASH zone was designed to encourage the construction of affordable (low rent) units that the
market would not otherwise provide. To encourage the construction of affordable units, the ASH
zone allowed the construction of up to four units on a single residential lot. It was hoped that
allowing the construction of four units on a single residential lot (instead of the normal one unit)
would lower the average cost per unit and allow a developer to charge a lower rent.
Since the ASH overlay zone was adopted, two developments (12 units) have been constructed,
one development (4 units) had been approved but not yet constructed, and an application for one
additional development (4 units) had been received but not yet approved. The square footage and
number of bedrooms for these projects are shown below:
Location Number of Units Square Footage/unit Bedrooms
443 E. 400 S. 8 1,722 3+
City Council Minutes -September 13, 2016 (p.11)


562 N. Main
4 1,736
3+
621 N. 400 W. 4
720 1
420 W. 600 N. 4
962 3
Staff was concerned that in some cases, units had essentially been operated as market rate
apartments instead of affordable units. A recent audit of rents being charged in eight ASH units
revealed that the average monthly rent was $1,011 with several units being rented at
$1,100/month. This suggested that some of the ASH projects appeared to simply be competing
with other market rate apartments in the City and were not meeting the need for low cost,
affordable housingfor the elderly.
In the opinion of Staff, part of the reason for this was that the units that were being constructed
were too large. This would drive up rents in two ways. First, larger units cost more to build and
therefore required higher rents to obtain an economic return. Second, the ASH ordinance based
rents on HUD's Fair Market Rents (FMRs) for Utah County. Under this standard, the maximum
rent that could be charged increased with additional bedrooms in a unit. For example, the
maximum rent for a one bedroom apartment was $639, the maximum for a two bedroom
apartment was $763, the maximum for a three bedroom was $1,103, and for a four bedroom
apartment the maximum was $1,351. These maximum rental rates will increase in 2017 to
$697/1 BR, $818/2 BR, and $1191/3 BR. As can be seen, there was a substantial jump in the
maximum rent when a third bedroom was added to a unit. This obviously provided an economic
incentive for developers to build units with more bedrooms as they could then charge
significantlyhigherrents.
In the opinion of Staff, units that could rent for $1,103 (and increasing to $1,191 in 2017 for a
three bedroom apartment) did not serve the needs of low income seniors, but instead simply
ended up competing with the existing stock of market rate apartments in the City. For example
the website for the Italian Villages at 980 West 950 North, which was a newer and higher end
apartment development, advertised three bedroom/two bathroom units with 1,320 square feet for
$1,145-$1,185/month. Similarly, the website for Village Park Apartments on State Street
advertised three bedroom /two bathroom units with 1,250 square feet for $1,030-$1,105/month.
A search of apartment listings on KSL classifieds on September 1, 2016 showed three separate
listings for 3-bedroom apartments renting for $900, $975 and $1,110 respectively.
In order to encourage the development of residential units that were truly affordable for low
income seniors, Staff recommended that the ASH zone be amended to limit the size of such units
to no more than 9o0 square feet and to limit the number of bedrooms to two. This would then
   o            
would provide a real and actual benefit to seniors as there was a very limited supply of
apartments that rent for $763 or less, while, as noted above, there was already a very substantial
supply of apartments that rent for between $900-$1,150.
When this matter was considered by the Planning Commission, there was significant interest on
the part of Planning Commission members and developers to allow units to be constructed with
three bedrooms in order to allow tenants to have extra space for storage, an office, or an
additional sleeping room. While the amenity of a third bedroom would undoubtedly be desirable
for some seniors, Staff believed that there were already significant housing opportunities in the
general market for seniors who wanted an apartment with three bedrooms. Staff believed that the
City Council Minutes -September 13,2016(p.12)


ASH was not designed to provide housing for seniors who could afford the additional
convenience of a third bedroom, as that need was already being met in the market. Instead, Staff
believed that the ASH was intended to help those seniors who could not afford the convenience
of a third bedroom and the higher rent that goes along with it.
As noted above, moving from a two bedroom unit to a three bedroom unit increases maximum
rent by $340 which was an increase of almost 50 percent. In the opinion of Staff, the maximum
rent that could be charged for three bedroom units would likely convert these units to market rate
apartments that would not benefit the low income seniors that the ASH zone was created to help.
The Housing Authority of Utah County (HAUC) had taken an approach similar to that proposed
by Staff in HAUC's efforts to provide affordable housing for low income seniors. The HAUC
did not provide three bedroom apartments and very few two bedroom apartments. According to
Lynell Smith, the executive director of HAUC, 95 percent of the units they provided for low
income seniors were one bedroom units with 650-700 square feet. Affordability was the goal and
in her opinion, units with three bedrooms and up to 1,200 square feet defeated that purpose.
In addition to the concerns about affordability, units with three bedrooms also provide a greater
opportunity and incentive to have more tenants in a unit. More tenants may be needed so that the
higher rents could be shared among more residents. Unfortunately, more residents also translated
into more traffic and more parking demand. Staff had observed a disproportionately high number
of vehicles parked on the street next to some of the larger ASH units that have been constructed.
This potentially makes ASH units less compatible with the neighborhoods in which they are
located. It was originally believed that since ASH units would be occupied by only one or two
seniors, both traffic generation and parking demand would be very low and therefore, even
       s     
incentive to rent to more tenants, allowing larger units could result in a greater negative impact
on surrounding residential properties.
In addition to the proposal to limit ASH units to 900 square feet and two bedrooms, Staff also
proposed to add language clarifying that utilities (excluding telephone) must be included in the
calculation of maximum rent and that the combined income of residents, for purposes of
determining eligibility, include the combined income of all residents. These provisions were
already a part of the existing law, but may not be commonly known among current and
prospective owners of ASH units.
Lastly, Staff had proposed modifications to the exterior finish requirements for ASH units. The
proposed amendments to the ASH zone are shown below:
F. Occupancy Requirements.
1. Age and Income Requirement. Affordable senior housing units may be occupied only by elderly persons
who are sixty (60) years of age or older and whose combined income (the income of all persons who occupy
the unit) is at or below eighty percent (80%) of the median income for the Provo-Orem Metropolitan
Statistical Area as published by the United States Department of Housing and Urban Development.
 2. Maximum Rent. The rent charged for affordable senior housing units may not exceed the standards and
limits set forth in the curent Department of Housing and Urban Development (HUD) published Fair Market
City Council Minutes - September 13, 2016 (p.13)


Rents (FMR) for Utah County. Pursuant to these_standards. rent includes the cost of utilities (except
telephone). For purposes of determining the maximum allowable rent, no unit shall be considered to have
more than two bedrooms.
The overall goal of the ASH overlay zone was to provide affordable housing to those that may
not have ability otherwise to afford a place to live. The second change pertained to limiting the
number of bedrooms, having a maximum square footage and the elimination of an optional
basement. These changes should reduce overall construction costs for future ASH projects. This
should provide an incentive to construct an ASH development that meets our goal of providing
affordable senior housing units and not simply building market rate housing for seniors.
O. Development Standards and Requirements.
(500) square feet. The maximum square footage per dwelling unit shall be nine hundred (900) square
feet.
34.Number of Bedrooms.The maximum number of bedrooms is two (2) per unit.
45. Floors Above Grade. The maximum number of floors above grade shall be one (1).
Basements shall not be allowed.
The last change does not deal directly with the ability to keep rent and occupancy at affordable
levels. However, the proposed amendments help reduce the visual impact the development may
have on adjacent residential uses.
The current architectural standard required certain materials but did not specify the percentage.
The final change will require each elevation to have a minimum percentage of materials. Other
materials used may be stucco or cement fiber board siding or combination of these materials.
       se  s    s
residential uses.
tofa
1314.Exterior Finishing Materials.The finish materials of all exterior walls shall consist
minimum of 40% brick or stone.Up to 40% of the exterior finishing materials may also consist of-brick,
stone cement fiber board siding (Hardiboard),or stucco, or aGombination-thereof. Board, batten or shake
material accents are permitted. Wood and vinyl siding is prohibited except for trim or soffits._The exterior
do not count in the percentages required.
The Planning Commission reviewed the request and recommended the City Council consider
allowing three (3) bedrooms per unit, up to 1,200 square feet per dwelling unit, add vinyl siding
as a building material and reduce the building material of brick and stone from 40 percent to 20
percent.
The AsH overlay zone was never intended to provide market rate housing. This was a special
exception to allow up to a fourplex in a single family neighborhood. This should not be used as a
tool to develop a fourplex based on market forces. This was a unique exception and should be
limited in scope with the City setting the standards and not relying on the market to dictate what
This was a very small segment of citizens and this type of development should be used as a
means to build an affordable fourplex to accommodate this unique segment of citizens and not be
the means to allow a basic fourplex in neighborhoods when a basic fourplex not currently
permitted.
City Council Minutes - September 13, 2016 (p.14)


Allowing 1,200 square foot units with three bedrooms as recommended by the Planning
Commission would not reduce or help mitigate the issues Orem was currently experiencing.
The Planning Commission recommended that the City Council amend Section 22-12-7 of the
Orem City Code pertaining to development standards in the Affordable Senior Housing (ASH)
overlay zone with the recommendation that the City Council allow three (3) bedrooms per unit,
up to 1,200 square feet per dwelling unit, add vinyl siding as a building material and reduce the
building material of brick and stone from 40 percent to 20 percent. However, the Planning staff
recommended the City Council approve the proposed amendments without modifications.
Mr. Bench invited Lynell Smith with HAUC to come forward. Mr. Bench said staff
recommendations to limit the square footage and number of permitted rooms in the units was to
get back to the intent of why they passed the overlay zone in the first place. He said they
recommended a maximum square footage of 9oo sq. ft. and a maximum of two bedrooms.
Basements would not be allowed, and utilities would need to be figured in as part of the rent. He
said the point was to have the units for fixed or low income seniors, not to allow market value
fourplexes to be built under a special overlay.
Ms. Smith said the HAUC had developed new projects as their precious little funding became
available. They would identify hardships and try to fill in the gaps as they could. She said density
for affordable housing was rarely available. There was a development built in 2o00 to help fixed
or low income seniors with affordable housing. The rents were made up of 30 percent of the
household income. They also received a Section 8 subsidy. Ms. Smith said the average head of
house for these units 78-years-old and the average annual income was $11,000. She said many of
the residents were recently widowed, and had been temporary living with children or bouncing
around. Often they were faced with the choice or paying for rent or paying for their food and
medication.
Ms. Smith said they found their model from 20o0 to be so successful they duplicated it in
Pleasant Grove. They were applying for funding to build 26 more units hopefully this fall. She
said Orem City had been progressive in providing affordable housing for seniors and had created
the ASH overlay. She said in 2015 the HAUC conducted a study and found that most market rate
apartments were well out of range of being affordable for seniors. She said 75 percent of Orem
residents, seniors or not, were not able to find affordable housing. There was a waiting list of
over 300 names for the 59 affordable senior units, and two thirds of those on the waiting list had
extremely low incomes. She said she currently had twelve elderly clients with Section 8
vouchers for housing that were unable to find affordable housing.
Ms. Smith said this was an extensive and growing problem, and could not be solved alone. She
was grateful that organizations like HAUC and Orem City worked in partnership to help this
population. She said the HAUC supported safe and quality rental units for seniors and supported
staff's proposals of limiting the square footage and the allowed number of rooms. She said there
was a huge need for one- and two-bedroom units.
Mr. Macdonald asked about the pricing of building materials, and whether certain building
materials would price people out of the market. Mr. Bench said the higher quality materials
City Council Minutes -September 13, 2016(p.15)


would keep the unit nicer for longer, but may be an issue to consider in development. Ms. Smith
said they tried to mimic the style of the neighborhoods the units were in.
Mr. Lentz asked about how utilities were factored for the units and how that played into the rent
amounts. Ms. Smith said the utilities were factored just like any other unit, but the rent could not
exceed the Fair Housing amounts. They considered the makeup of the appliances and building
materials to keep utilities lower, but they were what they were and the landlord typically
absorbed those costs.
Mr. Lentz asked if there were instances in which three-bedroom units were justified for senior
housing, i.e. grandparents that were primary guardians and caregivers of grandchildren. Ms.
Smith said those instances were rare, and there were alternative housing options for those rare
situations. Seniors wishing to have a third bedroom had many market rate options for units of
that size. She said affordable senior housing was to support life, not a lifestyle.
Mr. Bench added that they would rather err on the side of caution and build smaller units that
better met the majority's needs. He said the City would happily work with the HAUC on
building materials and keeping the costs of utilities low. In response to a question from Mr.
Lentz, Mr. Bench specified that this change would not affect projects currently under
construction but all those going forward.
in meeting the needs of affordable housing for the area's seniors. She said keeping the maximum
number of bedrooms at two would help in this endeavor.
Mayor Brunst opened the public hearing.
Debbie Gemble, resident of Lindon City, asked what “utilities” meant in this discussion as it was
a broad term that could cover many things. Ms. Smith said utilities covered gas, electric, water,
sewer, and garbage. It did not cover cable or phone service.
Mayor Brunst closed the public hearing.
Mayor Brunst moved, by ordinance, to amend Section 22-12-7 of the Orem City Code pertaining
to development standards in the Affordable Senior Housing (ASH) overlay zone with the
recommendation to allow 2 bedrooms per unit, allow up to 900 sq. ft. per dwelling, meet the Fair
Market Rent standards with utilities included, add vinyl as an acceptable building material, and
compromise to require only 30 percent of building materials as brick or stone. Mr. Spencer
secondedthemotion.
Mr. Seastrand asked about the change from 40 percent to 30 percent on building materials, and if
the change was to accommodate costs of building. Mayor Brunst said it was from an
affordability perspective for building and subsequent rents. Mr. Seastrand said his concern was
that the existing units in Orem were all brick.
Mr. Bench clarified that is was 30 percent per side, treating each side as a front. The intent was
for the mix of building materials was to better match and fit into the neighborhood in which the
units were built.
City Council Minutes - September 13, 2016 (p.16)


Mr. Lentz asked if it would be better to set to 20 percent and have staff review site plans to make
sure the building materials were a good fit for the community. Mr. Bench said he would prefer to
have a set standard than to require approval of materials for each build.
Mr. Macdonald said he liked the compromise, and added that the only limitation was that each
side needed to be at least 30 percent of specific building materials. That did not prevent someone
from building each side entirely out of brick.
The Mayor called for a vote. Those voting aye: Richard F. Brunst, Debby Lauret, Sam Lentz,
Tom Macdonald, Mark Seastrand, David Spencer, Brent Sumner. The motion passed
unanimously.
RESOLUTION - Authorizing the Mayor to sign the Interlocal Agreement between the City
of Orem and the jurisdictions of Utah County, Provo City, Pleasant Grove City, American
Fork City, Alpine City, Spanish Fork City, Santaquin City, Lehi City, Springville City.
Payson City, Mapleton City, Salem City, Saratoga Springs City, Lindon City, Lone Peak
Public Safety District, City of Cedar Hills, Highland City regarding the continued existence
of the Utah County Major CrimesTaskForce
Chief Gary Giles of the Orem Police Department presented the recommendation that the City
enter into the Interlocal Agreement between the City of Orem and jurisdictions of Utah County,
Provo City, Pleasant Grove City, American Fork City, Alpine City, Spanish Fork City, Santaquin
City, Lehi City, Springville City, Payson City, Mapleton City, Salem City, Saratoga Springs
City, Lindon City, Lone Peak Public Safety District, City of Cedar Hills, Highland City
regarding the continued existence of the Utah County Major Crimes Task Force.
The Utah County Major Crimes Task Force was established by Interlocal agreement in 1997 in
order to combat drug and violent crime problems throughout Utah County and in other areas
when those crimes affect Utah County. Orem has always played a large part in the Task Force as
we manage all of the financial accounts and one of our Police Department Lieutenants holds the
position of Task Force Director.
The Interlocal agreement was basically the same as previous agreements that had been signed by
the City except that Section 15 required that the Task Force Director review the agreement
annually and permitted him to submit updates and receive acknowledgements of updates as
necessary. This agreement also extended the expiration date of the agreement from December
2020 toDecember 2026.
By having the agreement updated and in place, the Task Force would be eligible and able to
submit for grants as well as receive forfeiture moneys from both the State and Federal
government.
Chief Giles said he had been involved with the Task Force since its beginning in 1997. He said
they had signed interlocal agreements in the past but the Department of Justice had ruled that the
agreements needed to be reviewed annually if organizations wanted to submit for funding at the
State and Federal levels. He said this agreement was basically the same agreement they had
City Council Minutes - September 13, 2016 (p.17)


signed in the past with two differences. The first difference was that the agreement would extend
through the year 2026 instead of the original 2020. The second difference was to allow the Task
Force director to execute the agreement yearly unless there were changes to the agreement. In the
case of any changes, the agreement would come back before the City Council for approval.
Mr. Lentz moved, by resolution, to authorize the Mayor to sign the Interlocal Agreement
between the City of Orem and the jurisdictions of Utah County, Provo City, Pleasant Grove City,
American Fork City, Alpine City, Spanish Fork City, Santaquin City, Lehi City, Springville City,
Payson City, Mapleton City, Salem City, Saratoga Springs City, Lindon City, Lone Peak Public
Safety District, City of Cedar Hills, and Highland City regarding the continued existence of the
Utah County Major Crimes Task Force. Mr. Seastrand 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.
COMMUNICATIONITEMS
There were no Communication Items.
CITYMANAGERINFORMATIONITEMS
Mr. Davidson said the Timpanogos Storytelling Festival announced, through joint press release
with the City of Orem, that the Festival would be moving to Thanksgiving Point in Lehi, Utah as
early as 2017.
Mayor Brunst led the audience in a round of applause to thank Charlene Crozier, Library
Department Director, for her hard work and the work of her dedicated staff to make the Festival
a success year after year. He said the Timpanogos Storytelling Festival had been an integral part
of the city for twenty-seven years and while he was sad to see them go he wished them well in
their future.
Mr. Davidson read the press release as follows:
September 13,2016
Orem, Utah
With an eye toward future needs, the City of Orem and the Timpanogos StorytellingInstitute are finalizing a.plan to
relocate the annual Timpanogos Storytelling Festival to Thanksgiving Point as earlyi as 2017.
Orem has been home to the Timpanogos Storytelling Festival for the past 27 years. The idea for this: new type of
Utahfestival developed asKarenAshton,dedicated library boardmember,and otherFriendsof theOremPublic
Library continued to pursue fundraising options to spur the construction of a new' Ghildren's Wing at the Library.
be both a fundraiser and an annual event that provided family-friendly entertainment while celebrating the'art of
traditional storytelling.
Growing crowds and Festival success have brought logistical challenges over the years. In the first 15 years of
existence, the Festival outgrew its first home in the backyard of the Ashton Residence and its second home on the
City Council Minutes - September 13, 2016 (p.18)


OlmstedpropertyownedbyRockyMountainPower.Since2005,theTimpanogosStorytellingFestivalhasbeen
presentedatOrem'sMt.TimpanogosPark,welcomingthousandsofvisitors andschoolchildrentothisbeautiful
parkinProvoCanyon.
Thecityhasbeen aconstant support to theFestival.Without thecity's support,itwould havebeen difficult to
sustainthekindofgrowththatwehavehadovertheyears.Likeachildwhoisleavingthebelovedandcherished
homeoftheirchildhood,weleavewiththesweetestmemoriesandlookforwardtotheongoinggrowthof
storytellinginawidercommunity."-KarenAshton,Founder
WiththeTimpanogosStorytellingInstitute'sincreasedinvolvementinyear-roundstorytellingactivities,movingthe
FestivalnorthtoThanksgivingPointwillaccommodateincreasedattendancefromnortherncountiesandschoolsas
wellasprovideadditionalparkingandotheramenities.Festivalorganizershavealsodecidedtomovetheeventto
s
withotherLaborDaytraditionstoparticipate.Whiletheproposedchangeswillbeanadjustmentformany,moving
thedateandlocationtogetherseemstomakethebestsense.
“WhiletheTimpanogosStorytellingFestival hasbeen an incrediblepart of Orem'shistory,theCityofOrem is
Oremfamilies,anditwillbeatraditionthatlivesoninourcommunity.Oremresidentscancontinuetoenjoy
storytellingprogramsattheOremPublicLibraryandotherlocalvenuesthroughouttheyear."-StevenDowns,
AssistanttotheCityManager
SomeofthenewopportunitiesforOremarethedevelopmentofalong-awaiteddogparkatMt.TimpanogosPark
andthedevelopmentofanauditoriumadjacenttotheOremPublicLibrary.Thescaled-downauditoriumproject
hasalsoevolvedovertheyears,butthemuch-neededspacewouldservethenearly60,oo0residentsbothyoungand
old,whoattendapproximately1,oooLibraryprogramseachyear.Fundraisingfortheauditoriumconstruction
continues.MasterplanningforOrem'sCityCenterblockisunderway,andtheOremCityCouncilcontinuesto
***NOTE: The power went out at 7:06 p.m.***
ADJOURNMENT
Mr.Macdonald moved to adjourn the meeting.Mr.Seastrand seconded the motion.Those
voting aye:Richard F.Brunst,DebbyLauret,Sam Lentz,TomMacdonald,Mark Seastrand,
DavidSpencer,BrentSumner.Themotionpassedunanimously.
The meeting adjourned at 7:08 p.m.
CORPORATE
SEAL
CmomaR.kav
DonnaR.Weaver,CityRecorder
Approved:October11,2016
CityCouncilMinutes-September13,2016（p.19)