City Council · 2017-03-03

OREMCITYCOUNCILRETREAT
The Homestead
700 North Homestead Drive
Midway, Utah 84049
March 3, 2017
2:00P.M.RETREAT
CONDUCTING Mayor Richard F. Brunst
Councilmembers Debby Lauret, Sam Lentz, Tom
ELECTEDOFFICIALS
Macdonald, Mark Seastrand, David Spencer, and Brent
Sumner
Jamie Davidson, City Manager; Brenn Bybee, Assistant
APPOINTEDSTAFF
City Manager; Richard Manning, Administrative
Services Director
Mayor Brunst welcomed all in attendance. He reviewed the agenda for the retreat, and turned
the time over to Mr. Bybee.
Mr. Bybee presented the City's accomplishments for 2016. He said the vast majority of Orem
residents had a broadly positive view of the quality of life in Orem. In a survey, the following
question was asked of participants: “All things considered, on a scale from 0 to 100, with 0 being
very low and 100 being very high, how would you rate your overall quality of life in Orem?" In
a 2015 survey wherein the same question was asked, the average number seventy-seven. In
2016, the average number was eighty. He reviewed accomplishments of the following individual
departments:
City Manager's Office
Administrative Services
Master utility account numbers were created to link Library, Fitness Center and
Cemetery patrons
Spearheaded a new City-wide supervisor training program
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Court document imaging upgrade
Continued to provide an award-winning CAFR and improved budget document
Development Services
0Designed, bid and managed $5,675,000 in City Capital Improvement Projects
City Center Overlay, 400 West waterline, City Center and other parking
lot reconstructions
Developed a draft design guide for developers and engineers to help in the
O
development process
0Awarded a $200,000 EPA grant
 Legal Services
Spent extensive time working on lawsuits filed against the City
Resolved the Anderson, Tanaka and Barr cases
Diligently pursued criminal cases brought to the City's Legal Office for
prosecution
City Council Retreat Minutes - March 3-4, 2017 (p.1)


Drafted complicated contracts including the Orem/Vineyard/EMS, and the
Siemens agreements
Fire and EMS
Purchased a Pierce 107 foot ladder truck -for much less than traditional trucks
0 Completed a system-wide upgrade of the City's vehicle exhaust system for each
fire station
Purchased battery-operated extrication tools for each front line apparatus, which
Police
Body cameras outfitted on all patrol and SROs (64 total)
Upgraded body armor from soft to ceramic and Kevlar
Virtually consolidated 911 Center using a grant for five county PSAPs acting as
o
one
Increased community outreach, including Kids Camp, Trunk-or-Treat, 30,000
followers on Facebook
Public Works
0Adopted the 2016 Water, Sewer and Storm Drain Master Plans
City Council endorsed the seven-year water and sewer rate increase
schedules and the five-year schedule for Storm Water
Completed the Water Storage Study with CUWCD and Vineyard
Identified locations for storage needs and a new major water transmission
line from the treatment plant to the center of Orem
Library
Improved ILS software and related processes
Hosted 937 programs in the last twelve months to an audience of 62,471
Legos Curriculum
Wizard Rock Band
■ Nutcracker Gala
Detective Night
■
Facility/Atmosphereimprovements
Painted pillars and other areas
■ New furniture
■ Designed new study rooms
Recreation
Capital Replacement Projects
Myrtha Liner in lap pool
Hot tub remodel
■
Steam room remodel
■
Dry sauna remodel
Diving blocks
Significant sewer line work
LED light replacements
Wholesale natural gas agreement which resulted in more than thirty-five percent
savings to the City
City Council
oUTOPIA
1Expanded PWAC to focus on solutions
City Council Retreat Minutes - March 3-4, 2017 (p.2)


Added online petition, availability map and FAQs
Completely covers operational expenses
■ Additional Wi-Fi access in parks
2015
**Note: The Council took a break at 2:50 pm.
**Note: The meeting resumed at 3:00 pm.
Mayor Brunst introduced Ron Harris, BYU Professor of Geology, to discuss seismic concerns in
Orem and Utah Valley.
Mr. Harris introduced himself and stated his professional background. He said he focused his
research on looking at ways to save lives from natural hazards. He said the formula for a disaster
was a high concentration of people near a natural hazardous place. He said the most important
form of emergency preparedness was addressing existing problems within the City. Disaster
prevention was significantly less of a financial burden on a City than disaster relief. He said
there would be an earthquake on the Wasatch Front, and they didn't know when it would happen.
Cities needed to be prepared.
**Note: The Council took a break at 5:20 pm.
**Note: The meeting resumed at 5:27 pm.
The time was turned over to Richard Manning to present the proposed revenues and key
expenditures for the Fiscal Year 2017 to 2018 budget. Mr. Manning discussed ways in which
they could, as a City, find balance with “the big rocks" of the budget. Some of the major funding
issues in Fiscal Year 2018 were that the General Fund Revenue was out of balance. The three
main tax sources in Fiscal Year 2016 were sales tax (fifty-eight percent), franchise tax (twenty-
three percent) and property tax (nineteen percent). He explained that the State created the
incentive for cities to rely upon sales tax, which followed the economy. Property tax was stable;
however, the manner of increasing property taxes was painful. Without more balance in revenue
sources, the City would always be at the mercy of economic swings.
Mr. Manning explained that in regards to compensation, additional revenue was required each
year to maintain competitive salaries. Components included wages, Medicare, 457 and URS.
Utility master plans already anticipated three percent annual operational increases.  The
additional General Fund compensation was equal to a three percent annual increase in sales tax
revenues.
The City owned 550 lanes miles of streets, valued at $135 million. The City's pavement quality
index goal was 82.4, and in order to maintain this level of service the City needed to invest $3
million per year. The City's current annual investment was $2.4 million per year. Mr. Manning
presented various funding sources, which included:
· New usage fee for wear and tear on streets from garbage trucks ($209,000)
· Implementation of a road fee, similar to what was done in Provo
City Council Retreat Minutes-March3-4,2017(p.3)


·Funds from the State gas tax
·General Fund reserves ($300,000)
0It was noted that they would still be short $400,000 per year
0 The General Fund reserves could not be counted on as a sustainable funding
source for roads
Mr. Manning reviewed the annual subsidy amounts for the Fitness Center and Outdoor Pool for
the Fiscal Years 2014 through 2018. The range was $202,800 in 2014 up to $404,000 budgeted
for Fiscal Year 2018. This equated to an annual approximate household subsidy range of $8.50
(2014) to $17.00 (2018), and was based on 23,685 households. Some of the challenges of the
Fitness Center included competing nearby facilities, a 1970s building model and evolving fitness
trends. Mr. Manning then briefly reviewed the City's funding philosophy in regards to
recreation.
Staff and elected officials discussed the following information regarding UTOPIA and street
lights in the City:
· The City's UTOPIA pledge increased two percent per year
The Fiscal Year 2018 pledge was $3.1 million
 0 The pledge was coming from General Fund Revenues
 One question to consider was what could the City do with $3 million per year
。
Streetlights: $3.25/ELU
Currently billing 23,386 ELUs
Last Debt Service Payment was March 2018
Each neighborhood would pay $3.25 fee for seventeen years
o
The City planned to complete the system with revenues paid after the debt was
paid off
The anticipated goal for winding down was to go from paying 900,000 in Fiscal
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Year 2019 to 3,000 by Year 2023
Projects planned using the revenues from ELU fees included:
Install City-style lights in expired SID lighting areas
Twelve expired areas
Two Parks
。
Finish State Street, 800 North, University Parkway and Geneva Road
。
Lastly, staff and elected officials discussed options and consequences of the $3.25 ELU fee
revenues. They also discussed what options would be available to the City if they no longer
pledged funds to UTOPIA, such as:
$500,000 to $800,000 annual street maintenance shortage would be covered
$400,000 Fitness Center deficit would be covered
Ongoing CIP for General Fund needs of $2 million would be funded
·
· Firefighters for Station #4 would be funded
Mayor Brunst thanked Mr. Manning for his presentation. He then went over the agenda for the
second day of the retreat. The Council adjourned at 6:20 pm for dinner and group activities.
City Council Retreat Minutes - March 3-4, 2017 (p.4)


OREMCITYCOUNCILRETREAT
The Homestead
700 North Homestead Drive
Midway, Utah 84049
March 4, 2017
8:00 A.M. RETREAT
CONDUCTING Mayor Richard Brunst
ELECTEDOFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, Mark E. Seastrand, David Spencer, and
Brent Sumner
APPOINTEDSTAFF Jamie Davidson, City Manager; and Brenn Bybee,
Assistant City Manager
Mayor Brunst welcomed everyone back and reviewed the day's schedule, noting that they would
first be discussing City Council concerns.
Economic Development Incentive Policy and Discussion - Mrs. Lauret
Mrs. Lauret said the right type of incentives were effective tools for drawing businesses to Orem,
thereby creating jobs and broadening the City's tax base. She said incentives could be created
using revenues from property tax, as well as in working with school districts and the State. State
incentives were usually measured on performance and paid through a percentage of payroll
taxes. She said she preferred this performance approach to incentives, rather than paying
companies money upfront, and the rest of the Council agreed. Mrs. Lauret suggested the Council
discuss incentive programs in greater depth in a future work session meeting. There was
subsequent discussion about providing equal incentive opportunities to all new businesses.
Programs could be tailored based on the size of the business, whether it was a small businesses
       s       
information available to the public.
CARE Allocation Discussion -Mr.Macdonald
The Council discussed pending legislation pertaining to how municipalities transferred money
from enterprise funds to another fund. Mr. Macdonald then addressed the allocation of CARE
funds to different organizations within the City. He discussed whether or not the current process
for allocating CARE funds was making the most significant impact to the community as
possible. He asked the Council to consider whether or not they wanted to continue subsidizing
the Hale Center Theater Orem (HCTO) ticket prices or if they wanted to invest into specific
legacy projects, particularly on the recreation side of the CARE tax. He also discussed ways to
make the SCERA a more vibrant organization.
Mayor Brunst commented that in regards to continuing to fund HCTO, there was a legacy in the
people. He suggested the distribution process be based on percentage rather than dollar amount.
He said HCTO was working on a project at University Place, and in order to get a loan they
needed a commitment from the City that their CARE tax allotment would be the same each year.
City Council Retreat Minutes -March 3-4, 2017 (p.5)


There was further deliberation on the best method of allocating CARE funds based on the City's
long term goals.
Housing -Location and Densities -Mr. Davidson
Mr. Davidson discussed high density housing and said the City continued to have conversations
with developers in and around Utah Valley University (UVU). He said PEG Development
purchased the Palos Verdes neighborhood, in cooperation with the UVU Foundation. There was
one home that had not been purchased yet, and was valued at approximately $320,000.
However, PEG Development had since been in contact with that property owner and submitted
an offer of approximately $600,00o. The owner had not accepted that offer, and Phase 1 of PEG
Development's project was designed around the home in question. Phase 1 was for a building
that 300 units, 997 beds and four-stories. There was a parking garage below on Campus Drive
that would be five stories.
Mr. Davidson said there were other developers, including Ivory Homes, that also discussed
developing in this same area; however, PEG Development was the only company that had
submitted plans. They anticipated taking those plans before the Planning Commission by the
end of the month, and to the Council shortly thereafter. PEG Development wanted to complete
their project by summer 2018 in time for the fall 2018 semester.
Mr. Davidson provided updates on the Meadow Gold property. He said the City's Planning
Department had received multiple inquiries from developers interested in the property in
question. Mr. Davidson said when the City modified the PD Ordinance several years ago, a de
facto moratorium was placed on high density apartments along State Street, 800 North and
University Parkway.  The Council discussed the best approach to meeting the demands for
multifamily housing in Orem.
**Note: The Council took a break at 10:00 am.
**Note: The meeting resumed at 10:10 am.
Mayor Brunst and Mr. Davidson presented a side-by-side comparison of the Springville, Orem
and Provo libraries. Their analyses included the population, budget, staffing, programs and cost
per resident of each city. Next, he reviewed the history for the Center for Story. The original
plan included the following:
· 385 fixed seats (290 floor and ninety-five balcony, plus 115 portable)
23,000 square feet
Balcony
Lobby for displays
Sixty seat classroom
?
Recording Studio
?
Gift Shop
Food Service Area
Storytelling Offices
·
·$6.5 million fundraising goal
The proposal from Hughes General Contractors included:
City Council Retreat Minutes - March 3-4, 2017 (p.6)


Seating: 6,440 square feet (500 fixed seats)
Stage and Stage Support: 3,630 square feet
Bathrooms: 952 square feet
Entrance and pre-function space: 2000 square feet
Office and retail: 1000 square feet
Total square footage: 14,000 square feet
Hughes General Contractors Construction Estimate
· 14,000 square feet at $225 per square foot, for a range total of $3.65 to $3.85 million
0 Architectural fees: seven percent, equal to $220,500
Permits, impact, connection: five percent, equal to $157,500
Testing: two percent, equal to $63,000
Fixtures, furniture and equipment: three percent, equal to $94,500
Construction cost inflation was estimated to be approximately five percent for
next year's construction
Center for the Story Funding Sources:
· Ashton Family Foundation: $1 million
· Orem CARE tax: $1.7 million
Balance of Fund 72:$561,471
Utah County Community Action Grant: $300,000
Miscellaneous donations: $189,324
Sorensen Legacy Foundation: $50,000
Eccles Family Foundation: $50,000
TOTAL: $3.86 million
Mayor Brunst then led a discussion on the proposal for a new City Center facility. The history of
the Orem City Center was reviewed. In 1938, Orem purchased the 37.5 acre Stratton Farm for
$14,000, which included a farmhouse used for the Town Hall, Library and Post Office. In 1970,
the City Center was built for $1.5 million, and the University Mall subsequently opened in 1972.
In 1995, the Children's Wing of the Library was built for $4 million. In total it was 35,220
square feet, which broken down cost $113 per square foot. The project was paid using donations
and transfer of bond payments. Also in 1995, the Senior Friendship Center was built for $3
million. The project was funded using money from an insurance payment from a previous center
burning down, as well as various grants. In 2000, the Public Safety Building was constructed for
$5.4 million. The building had 33,000 square feet, which broken down cost $164 per square
foot. In 2006, the Public Works Building was constructed for $7 million. The building had
85,000 square feet, which broken down cost $82 per square foot. The costs were partially paid
by the sale of the old Public Works land, as well as bonds. Images of the Council Chambers City
Center exterior and communications antenna were then presented.
Mr. Bybee presented the following goals and objectives for Orem's Municipal Center Master
Planning:
Support effective and efficient
Delivery of Municipal Service
·
Address required seismic and building system upgrades and improvements
City Council Retreat Minutes - March 3-4, 2017 (p.7)


Address current and future
Space requirements
Incorporate appropriate
Sustainability opportunities
Existing Municipal Center
New Library...... ..30,111 square feet
Old Library...... 20,460 square feet
Existing Justice Court.. .7,650 square feet
Public Safety Building..... .35,000 square feet
.17,959 square feet
Existing City Hall Basement..
Existing City Hall Main Floor..... 20,916 square feet
Existing City Hall Second Floor... .6,808 square feet
Mr. Bybee said that according to the 2015 seismic analysis, the grand total preliminary cost
estimate was $2.6 million. It had been determined at that time that nearly all of the main level
shear walls and masonry walls under the two story section of the building were over stressed
when subjected to the design lateral seismic force. As these walls failed, the loads were
redistributed to the remaining walls which would in turn fail. He presented the following
recommendations:
Code/Useful life/energy electrical upgrades
o Replace existing switchgear
Fire alarm, UPS and generator
。
Lighting controls
Mechanical Upgrades:
Replace air handlers and duct work associated with seismic upgrade
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Mr. Bybee presented updated cost estimates for seismic retrofitting on the City's facilities. His
analysis included data from the previous 2015 study, and accounted for third quarter inflation
rates in 2017 of thirteen percent. The total estimated construction costs were $9.9 million, which
broke down as $190.23 per square foot. The total estimated project cost, which included
temporary relocation expenses and miscellaneous contingency fees, was $12.4 million. If they
included energy and operational upgrades to the construction estimates, the total project cost
wouldhavebeen$15.4million. He said seismic renovations would provide limited
improvement towards the following:
Creating citizen friendly access and way finding
Providing additional multipurpose community spaces
Providing space for additional staffing and operational efficiency
Improving staff safety and security
Creating a healthy/sustainable work environment
Right sizing the Municipal Center would involve needs assessment interviews for current and
future requirements to determine space efficiencies for a new facility. The new City Hall and
well as aerial maps of Orem's City Center:
Option 1
City Council Retreat Minutes - March 3-4, 2017 (p.8)


Reinforce State Street activity
Effective site utilization
0 Campus connectivity
Option 2
Reinforce State Street activity
Effective site utilization
Campus connectivity
Economic return with lease or sale of commercial space
Planning Concepts:
oCreate a one-stop center for most citizen needs
General information
Most development service requests
■
■ City Recorder/passports
■ Utility questions and fees
Human services
Mr. Bybee reviewed the Municipal Center construction budget estimates.、 The total estimated
project cost was $16.3 million, which included: demolition, construction, allowance.for
connection to an existing Library and Public Safety Building, site improvements, temporary
relocation expenses, and contingency allowances. He said the interim information center
renovations allowed for phased construction, improved security of private work areas, public
restrooms adjacent to Council Chambers, and space for additional staff.
The Mayor and Council discussed other historical buildings in the area that were undergoing
significant seismic upgrades. Furthermore, they deliberated on whether to pursue renovating
existing buildings versus constructing new facilities. They discussed concerns related to cost
estimates associated with different general layouts.
Mayor Brunst thanked Mr. Bybee for his presentation.
**Note: The Council took a break for lunch at 12:00 pm.
**Note: The meeting resumed at 12:45 pm.
Mr. Davidson led a discussion on the City Council's goals and areas of focus for 2017 to 2018.
Some of the items that were reviewed in subsequent discussion included:
The City's water rates
·
Vote-by-mail
·
Good Landlord program
Procedures/decorum during public meetings
Term limits for City elected officials and appointed volunteer positions
Invocations at the beginning of Council meetings; Legal Counsel had advised that they
refrain from asking staff and elected officials to participate in that effort due to the
separation of church and state. The Council suggested preparing an inspirational thought
instead of offering a prayer. Clergy from other denominations could also be invited to
offer thoughts as well.
City Council Retreat Minutes - March 3-4, 2017 (p.9)


Mr. Davidson said last year the Council's primary areas of focus were UTOPIA and the City
Center. He said good progress had been made in both areas and asked if the Council wanted to
continue focusing on these areas or amend the City's priorities. After subsequent discussion,
Mayor and Council indicated that in addition to the aforementioned areas of focus, they also
wanted to focus on connectivity to the citizens.
Mayor Brunst thanked the Council members for their hard work and dedication in service to their
community. He expressed appreciation for the efforts of City staff to make the retreat the
successful event it hadbeen.
The meeting adjourned at 1:45 p.m.
OREM
CITYOF
CORPORATE
SEAL
OmaK.Okaver
DonnaR.Weaver,CityRecorder
Approved: April 11, 2017
City Council Retreat Minutes-March3-4,2017(p.10)