City Council · 2025-06-10

Right, right, right. Okay, and the heat on the list, it shows Mobile. Okay, I'm filling in for the mayor today. He is having a great dinner in just a few— an hour. So that's kind of fun at the Best of State. So let's get started with our work session. Thank you everyone for coming. Um, item 2.1 is report of Utah Risk Management Agency by David Peterson, RMA executive director.

Thank you for having me. I will, uh, try to give a good overview of where IRMAA's at, where IRMAA's going, how that benefits Orem and their participation in IRMAA. Um, so next slide. We don't have a— oh, okay, I got it. Um, these are the cities that are currently in IRMAA. However, in our last board meeting, um, the board determined that they would admit, um, Riverton City, who requested admittance into IRMAA. We do not market in IRMAA like insurance companies do because we're a nonprofit governmental entity. Um, and we've also had inquiries from 3 other cities that I am meeting with in the next few weeks who are interested in participating in IRMAA. Our model is different than—

David, before you leave that, just, you know, make note we need to get you an updated logo, but also then our logo needs to be bigger than Centerville's.

Bigger than Centerville's? We want it right in the middle. I think I'm No taken.

Was that for Centerville, this presentation?

Because of their name, we do this in all the city councils, and maybe that didn't get the— our administrative assistant didn't, but that'll be correct.

I concur with the direction of our city manager.

Noted. Um, just by way of historical information, IRMAA's been around since 1985. It was one of the 4 founding members of IRMAA. What happened is insurance rates got just outrageously expensive, and IRMAA was one of the 4 founding members that decided that we wanted to self-insure a large portion of claims litigation and risk management. Each one of the unique things about IRMAA is, aside from some of the other accreditation things, but Each member has a seat at the board. So, um, Carrie represents you on our board as a board member. So she has a vote in policy decisions regarding IRMAA, very much like a city council directs policy for the city. Um, our IRMAA board does that for us. We're focused on risk reduction and not on claims and litigation management, although we do it really well, um, as a practice because it's just the nature of how things happen. We're focused on trying to reduce risk so we don't have to pay claims or manage them. And our model is different in that we're actuarial-based and not underwritten. Traditional insurance is underwritten, which means that if you have a bunch— well, I will be the bearer of bad news, please don't shoot the messenger— but those of you who have not renewed your property or auto policies this year are going to see significant increases, like anywhere from about 18 to 40%. Wow. Why? Because of huge losses of the fires in California and huge losses on the East Coast, Southeast Coast from flooding and hurricanes. So depending on what insurer you're with, you're going to see some significant increases because they underwrite to cover their losses and maintain their profit margin. Because we're a governmental entity, we don't cover other people's losses. So what happens in California happens in California and can stay in California. For all we care. Amen. That being said, it's a different model. So you're not affected by a bad insurance market somewhere else when it comes to our self-insured retention. Why people— we see people coming to IRMAA, all of these are reasons, but the most significant are it reduced costs of excess or catastrophic insurance, and the claims and litigation costs are significantly less. And I'll go over that later. It's not a traditional insurance program, meaning that if you have a claim, you don't call, file the claim, and you never hear anything back, you just pay your deductible. You are involved in making a determination about that claim. Do we wanna settle? Do we not wanna settle? Do you wanna fight it? Do you not wanna fight it? Additionally, It's reduced cost because it's a self-insured program, meaning that your losses you pay back. We're a large fund, you withdraw from the fund and you pay back. We're member-controlled. Our board determines the direction of IRMAA and what is covered and what isn't. And we'll talk about that a little bit in a few minutes when I talk about insurance coverage. For instance, you have land use coverage. Meaning that if you get sued over a land use related issue, we will cover that. Um, that coverage doesn't exist in the traditional insurance market. You can't buy it. It's not applicable, and nobody else in this state covers it.

Um, is there a limit on that?

$500,000. Yeah. Um, and you choose your own legal counsel, which has been a very significant thing. And I will tell you that The last 2 members to join IRMAA, Park City, and now Riverton, effective July 1st, that has been a significant issue for them. They do not like the idea of the insurance carrier telling them who's going to represent them and how that representation is going to be done. These are the services we provide, um, and The cost related to them, you pay in a contribution every year based on that actuarial number, but it's divided amongst 16 member cities. So you can see, like at the bottom, we have the premier risk management information system in the nation called Origami. For a city the size of 98,000 population, the cost for Origami would be Um, $50,000. Well, for $50,000, it would be $90,000, $98,000 a year. Orem shares the cost with other cities, and Orem's cost is $15,487. Um, if you were to go on your own, for instance, and say we want to self-insure, but we want Origami, your cost would be close to $150,000 a year just to purchase that. Premier risk management information system. We operate off data, not speculation. If I were to go around the room and say, what are the biggest risks to the city? Name the top 5, you would prioritize them differently. And it depends on what your perspective is, right? If you're in IT, you're probably going to say that cyber risk is the biggest and the worst and the baddest. If you're in law enforcement, you're going to say it's use of force claims. If you're somewhere else, you're going to say something else, and then we'd be prioritized differently. We don't do that. We only do data. We pull from a bunch of sources that we have access to, and we do the difference between correlation and causation. This is something that's always been fascinating to me. You have things that correlate, i.e., smoking and cancer, right? But smoking in and of itself does not cause cancer. Because cancer is cellular and it's byproducts of the combustion and the tobacco. People smoke and live to be 90 years old and die of old age and never have cancer. So there's a correlation there, there clearly is, but it's not necessarily causation. We only work with data. Let me give you an example. All of you've heard of the body mass index, the BMI? You've probably been the victim of that if you've had a physical where the doctor comes in and tells you that you're not perfect and you may weigh a little bit more than he thinks you should, or she thinks you should. Um, you know that that actually was a science experiment, social physics experiment in the 1830s, and we still use it today. It was adopted by the United States government in 1980 by the military, and doctors and medical schools are still trained in The BMI. If you look though, it ignores variations and there's no difference between muscle mass and tissue mass. So what you have is this. Dwayne The Rock Johnson is the same height and weight as I am. We are both considered morbidly obese because we have a 34.3 BMI. How many of you would argue that Dwayne is morbidly obese? I wouldn't want to do that argument either. I'm not going to raise my hand about the argument I made, but that's what it gets you in comparison. We are the same height and weight, and therefore we have the same BMI. So we don't operate that way. And I just say you don't look 270. Why, thank you. I'm not sure which way you were going with that.

I was shocked to see that number.

Um, here's another one that according to all the data that you see up there from all those sources, vehicle accidents, the top 5 causes, right? And 88% of all citations are written for what? You know this, speeding. Did you know that it's not, according to all the data, in the top 5? So what happens in risk management is we use the data to actually drive what we do to reduce risk. Now, most of you would probably look and go, you know what, I believe distracted driving is number 1 in vehicle accidents. Speed is a contributor to damages, but it is not the leading cause by any means. And only 6% of citations are issued for distracted driving. So what happens in risk management is we try to take the data and apply risk mitigation techniques that actually focus on the root cause of something. Okay, you are part of a self-insured fund, meaning you contribute to the fund based on an actuarial probability model. Each year you contribute to the fund, and then you withdraw essentially from the fund if you have a claim or settlement or costs associated with that. And then you pay them back at no interest over 5 years. And that's what keeps the fund solvent. It's no different than if you were to do it yourself and say, we're gonna go ahead and put $50 million in an account to pay all our claims. But there's some problems with that, trying to retain that kind of money and carryover and rainy day funds and things like that. Because it's an enterprise fund and it's based on an actuarial probability model, We can do that. So if Orem has a claim and they decide to settle the claim, we pay the claim, and over the next 5 years, Orem can then budget to repay it. Because it's impossible to determine what your claims are going to be in any one given year. You don't know when they'll settle. It takes between 3 and 5 years for something that goes to litigation to actually settle. That's been our history. That's what we've seen. Other claims settle quicker. The other thing that's unique about the IRMAA model is you only repay yours. So we've heard other people say, well, we don't want to be in a group with Ogden and West Valley. You're only in that group to benefit you in the, in the spread of costs. They share in costs proportionately based on their size, but as far as their claims, they repay their own claims into the fund. I will tell you right now that 99.83% of our claims are settled within the self-insured retention, which is $1 million. So any claim less than $1 million is settled out of that fund and just repaid to that fund.

So do you follow the model of when you have a loss, you pull money from investments and put it in a reserve?

No, no, we have a liquid reserve, and then we also have an investment. Okay. So the way it— the way it works with what they call actuarial probabilities, they tell us how much we have to have available for any given year based on loss history.

Okay.

And then we have that in an account that we can access at any time. And then some of the excess goes into investment funds. So we're earning interest or dividends or whatever. Of course, we do have to follow the The state government rules on investments. We're not able to go offshore and really make good money. We have to follow the government investing rules.

So, who is they that advises you on that?

The actuaries. There's an actuarial company we use, Aon. They're one of the largest actuarial insurance and actuarial firms in the nation. They might be international. I'm not 100% sure. We, we use Aon North America, so that's who it is. Some of the insurance concepts are you get group purchases at discounted rates. We are— if, if you were to go out, any one of our municipalities were to go out and purchase traditional insurance, you would find that you would pay 21% More overall to purchase traditional insurance because there's no pooling where the insurance company can go, we're going to get a lot more because we have multiple cities, so we can cover more losses for charging less premium. And you get coverage through IRMAA that you can't obtain on the market. And then we already talked about there's no premiums are not affected by losses like traditional insurance is, 'cause you pay them back. And you get more coverage than you could obtain individually. And we'll go over those coverages just so you have some idea of what they look like. But IRMAA carries $15 million worth of cyber risk. You couldn't afford to buy more than $5 million out on the market. It's incredibly expensive. As a matter of fact, I'll show you that here in just a minute. We have a general liability policy and we consider it catastrophic. It's anything over $1 million, right? So anything under $1 million, which is like 99.8% of our claims, are just settled internally with the reserve. But we do buy in case something goes terribly wrong. An individual policy— now, this is not counting losses. This is just using a standard underwriting factor for the city would cost $676,449 with $1 million, $2 million coverage, meaning $2 million aggregate per claim. Um, Irma, you pay $109,802 and you have $7 million in coverage and you have no aggregate. I have never seen this before in my life. I was 10 years— I was the managing director of risk for the BYU system. And before that, I did public safety risk management, um, in Clark County, Nevada. I've never seen a no aggregate policy before. This is the only place I've ever seen it, even at BYU. And I had a retention of $50 million. They capped me at $750 million. That's all the coverage they would give me. Um, cyber risk and individual policy for $5 million— for $1 million and then $5 million aggregate. would cost $725,660 using standard underwriting criteria. Um, IRMAA pays $562,000. The portion that Orem pays is $62,479 because it's divided amongst all the cities, and that's a $15 million aggregate. Next. Um, the IRMAA offset, I will tell you right now that one of the things that everybody's benefited from is because cyber rates have gone through the roof in the last 5 years. We were paying— 5 years ago, we were paying $65,000 a year for cyber. We're now paying $562,000. It's gone absolutely through the roof. The board determined that we have adequate funding in reserve. We went to the actuaries and said, are we okay to do this? And the board has offset $1.8 million in premiums for the last 5 years so that the cities didn't have to take as big of a hit. You're 18% below the property market. I didn't have the numbers readily available when I was putting the slide together. The individual, the off-duty vehicle policy would be $359,000 if you did it on your own. With IRMAA pays $320,000 for a combined policy and ORM's portion's $29,000. The high-value vehicle, these are your utility trucks, fire engines, all those kind of things. An individual policy for what, what Orem owns would be $631,000. Irma pays $569,000 for our entire policy, and that's all of our cities and all of their equipment. And Orem's portion is $29,000.

So if our fire truck had been in these LA riot things, What, and damaged and, you know, whatever? What is their maximum that you would pay to— how do you handle that type of property damage?

So on that, on that policy, it's a $50,000 deductible. We buy it separately because some of those losses are huge. I mean, you lose a fire truck, you're talking $750,000 to $1.5 million depending on which type, whether it was a pumper or an aerial apparatus or than what it was. They're expensive. And you can see, if you go back and look, because our insurer is our market, the fund is workers' comp fund, they only use information and data from Utah because they don't insure California, they don't insure New York or whatever. That's why our rate is so much lower, because if you look at that, we pay— our total premium is $320,000. IRMAA pays And then you pay your portion to reimburse, which is $29,000. What happens is, if they lost one fire truck in a year, it's blown all their premium. They've lost every bit of premium in a year. But because IRMAA does so well at managing risk, and IRMAA cities do so well at managing risk, we're at such a low risk to them that they insure us for minimal premiums. Um, we have an auto physical damage program. It's $270 per vehicle, $5,000 deductible, and it covers up to $50,000. Um, I wish I could find a personal lines insurer that would insure my vehicle up to $50 grand for $270. Um, but because we have a pool of almost 1,000 vehicles, we take in enough premium that we can pay it out in a year. And we can cover those losses. And that is a self-insured fund that you participate in. Land use, you have up to $500,000 in coverage. Nobody else in the state provides that coverage at all. But that was something our board decided they wanted because land use can be a volatile issue. And so they said, well, we'll cover up to $500,000 then. So, drone premiums, interestingly enough, It's not covered under general liability. You have to actually buy an aviation policy if you want to cover drones. The minimum premium for aviation in the insurance industry is $250,000. So our board said, no, we'll just cover drones. We're going to cover drone liability because that's ridiculous. Um, and then small transit. I don't know. I think you guys— do you have senior center buses, small transit buses? Yeah, what happens is the industry, it's $7,800 per vehicle. Irma board said we don't have that many of them throughout the state. I think there are 31 total in all the cities. We're just going to cover it through the self-insured retention. So you have up to $1 million coverage on small transit. Okay, claims, claims adjusters and claim managers are available. They're just part of your participation. in IRMAA. Libby Lowther and Associates does a lot of our litigate— our general liability. And then we have contracts with 2 different adjusting companies at reduced rates to do property. Libby will do property if it's aligned also with some sort of liability. And then you make the claims decision, and this is what's very popular with with our members, our cities, is if you feel on principle you do not want to pay that claim, you want to fight it, that's your decision to make. And IRMAA will promote that decision. Some cities on really small claims, they just handle them on their own. Some of them, they want to do them with IRMAA assistance, and some of them say, you know what, this is a complex claim, we want to turn it over to IRMAA. And you go ahead and manage it, just keep us appraised of what's going on, and we'll make final decisions about Settlements or anything like that. So it's entirely up to Orem City or any one of our cities who manages that claim. We don't get involved in claims unless the city requests it. This is another one that's very popular with Irma. You choose your own attorney. Our legal— the average, the realistic average rate is $325 per hour. That's the average in the Salt Lake and Utah area. According to AI, it's $291 an hour, but I'm not sure where they got their numbers from. Our rates are as low as $150 an hour because we negotiate with them because they want our business, and we send them business because we represent 16 cities. We also have an in-house claims litigation counsel. Um, who will do claims in-house. Um, so we don't have to go outside or pay the cost of outside, and legal consultation with him regarding litigation is free. So if your city attorney or anybody wants to run something by him or talk with him about what direction might be best, and maybe your city attorney isn't an employment law background, Brandon has that capability to offer that information. So the advantage to IRMAA is member-controlled. If you decide as members that you want to do $1 million worth of land use coverage, your board member can bring that up to the board. And if the board decides to do that, it'll be $1 million worth of coverage. We're full-service risk management. So we generate reports, we generate risk bulletins, we're monitoring the industry. So if there are things out there that people need to be aware of, things that create liability or risk to municipalities or government entities. We're monitoring that. We publish that information. Our coverage— the coverage levels, some of them bring not available individually. Like I said, I've never seen an unlimited aggregate before. That's the first time I've ever seen that. Because we pool and it's the law of large numbers, The excess insurance policies that we do purchase, we have significantly reduced rates. We have claims and litigation at reduced rates. You're not affected by other cities' losses, unlike traditional insurance. And then funds are retained in IRMAA, and they're liquid, so they're accessible if you need them to pay a claim. And that was it. And I think I timed it pretty close. I think I have about 5 minutes if I know what time I started. If anybody had any other questions, I'm happy to answer those. Um, yeah.

You talked a lot about risk management and how you're better at risk management than maybe traditional insurance. Can you just tell us what that looks like, like, especially on a practical level, like for Orem City?

Yeah, so I covered some of it intermittently throughout there, but we will do risk assessments for you as a city. An insurance company will not do that. Um, we will, we will come out if you say we have this that we're doing, we want to know what the risks associated with that are. We will come out, review it with you, go back and do all the research and the data, find out if there's previous claims and litigation, if insurance companies have paid losses. And then give you a mitigation strategy to reduce the potential risk, because everything has risk. We monitor the industry to see— so right now, one of the things that's been going on lately is people are after meeting minutes from safety meetings or claims review meetings and so on. So we met with our members in our risk management roundtables and said, Here's some things that you need to do to avoid plaintiffs' attorneys coming after your meeting minutes, right? So what we've recommended is at no point do you discuss fault. You discuss the root cause of why this happened, and then fault, if there is any, that's a discussion that needs to be done with supervisors and human resources separate from this meeting, because those records are confidential for the most part. I mean, Nothing is 100% secure, but for the most part. And then we have risk bulletins, for instance. And I don't know, I don't know where you guys are on this. So if it— we did a ton of research because we saw claims and litigation and a bunch of workers' comp claims on taser training. So in law enforcement, there's been a historical thing. Where part of taser training is you get tased.

It's laughing over here.

Yeah, am I right? I'm not lying, right? There are people who have adverse reactions to that. Most people just go through it fine. And, you know, and the standard is you hold their arms so they don't fall down and hit their head. But unfortunately, some people have unknown cardiac events or unanticipated cardiac events because it is a It is an electrical shock. So we actually did a bunch of research and went to Taser International. We've gone to POST. We've gone all over the 50 states. There is no requirement that you do that. It's more of a just a training thing. The theory being, well, you know what it's like, therefore when you deploy it and so on. If we went with that argument from a risk management standpoint, We would shoot every officer at the range. Just in the foot, though. Yeah, just in the foot. Yeah, not— yeah, not bad injury. Yeah, we're just— just so they know what it feels like to get shot, right? So we came out with an awareness bulletin that basically says we're not telling you you can't do that, but we are going to tell you what the risks are if you do. And the most significant risks are workers' comp claims, which the city pays. I mean, there's no way around it because Workers' comp is a sole source remedy in the state of Utah. So if somebody comes in and they fall down, they get hurt, and they say, I got hurt in taser training, that is an on-duty injury workers' comp claim, and you're going to pay. And so we will come out and say, when we, when we come across these things, we will come out and say, we're telling you what all the risks are and how to mitigate the risks. We would prefer, and most of our agencies have said, No, we're not tasing one another. It's not worth it. But because there's no requirement, and as of right now, well, as of last week, there are no cases out there where plaintiffs have made an argument that because you didn't get tased in training, you didn't do a taser correctly when you deployed it on my client. So, so it's things like that that we do. We also review data. We do the data analytics off the origami program. And if it looks like you have a trend, you're having a bunch of vehicular accidents, you're having a bunch of slips, trips, and falls, or whatever, we'll sit down with you and go over those. So you're aware that they're coming up. We do risk management roundtables, and we provide a great deal of training. Um, we have very popular law enforcement liability Program. Um, some agencies use it, some don't. We're not a required thing like an insurance company. Insurance company come in and say, you have 2 hours of law enforcement liability or we won't insure you. IRMAA doesn't do that. IRMAA comes in and says, here's the risk, here's what they are, here's what we can offer you to counter that risk or to mitigate it. It's up to you on whether you decide you want to do that. So it's there. We have 1,130-some-odd online available, and we have about 30 in person where we have subject matter experts that will come in and teach sexual harassment, defensive driving, law enforcement liability. For several of our cities, we do their new elected official orientation and their conflict of interest training. and their ethics training. So those are all available as far as additional risk services. And then probably the one that's most common for us is, I would say at least 2 or 3 times a day, we get a consultation call saying, hey, we had this happen. What are your thoughts? Do we have liability here? Do we not? What should we be putting in place? What should we not? And then we use Myself and Libby Lowther, who's our claims manager, and then also Brandon, our in-house counsel, do third-party investigations. So you can take it outside the city. Um, and because you're a member, those are free to you. But the nice part is when you get a conflict, an internal conflict, it was a third party that said, This policy was violated. This was— this was— we don't determine what disciplinary action is taken or anything else. We simply report the facts back to the city administration. Um, and then— oh, go ahead. And then probably the last one that's significant— there are quite a few more. Um, well, there's 2. We have a loss control inspection program that the board has adopted and said these are the things that we want our cities to be doing to reduce risk. And then the last one is we provide subrogation. Our in-house claims litigation attorney also subrogates. So if you have a 3rd party who does damage to city property, that will be covered under the property policy. But where there are costs that are not fully covered, we'll subrogate against the 3rd party.

What's your recovery rates?

That means to go after them for the money of the cost.

I used to work in the industry. What's your recovery rate?

Well, let's put it this way. For those that are using that, Spanish Fork has recovered more money in 2024 than they paid into IRMAA. So Brandon does very good at it. We historically send a letter to the insurance company or a letter to the insured, and they ignore that. And then Brandon files a lawsuit, and the next thing you know, we get a check in the mail.

So, yeah, I do have a question about reporting. Maybe Bryn can help here. But do you— and of course, much of this is confidential, so it would— to advise the council would have to occur in a closed-door session. But do you provide— how often do you have quarterly reports?

We do them on request. So, written Written stuff. So with the implementation of Origami, and I know you guys are moving that direction rapidly, that information is available currently. You can log into Origami and find out the status of any claim, what the attorneys have done, what the claims adjusters have done. You can look at reports, you can look at documents, everything. Whoever that is that's your administrator has the ability to get like real-time data. As far as speaking to specific litigation, we will come to a closed-door session, the attorney representing you, myself, or Brandon or Libby, and go over that with you, update you, and get direction from you usually. Do you want to settle? Do you not? What's your top amount? What would you prefer? I mean, those types of things. So, and then we do provide reports. And I know, um, they've been requested before from Orem. Historically, we don't— we respond to your requests. That's—

and I guess that would be— I mean, it looks like I need to turn and speak to this gentleman here and say, you know, I would like— I don't know how the rest of the council feels, but I would actually like to be updated more often on that. About 4 years ago, there was a charge that I thought was, um, not appropriate. And, um, of course, it's, you know, something we wouldn't talk about here, but, um, I, I just feel like from an oversight perspective and a checks and balances perspective, is that something you're providing already? Maybe we need to just chat about.

I've made note here to proactively get quarterly reports. Again, it'll be using this, uh, the software that is new to us. Maybe not completely new to IRMAA, but we can use that to make those reports available.

Yeah, you should be able to do that fairly easy, and we'll help you navigate that. The advantage to this, like I said, it's the premier software in the industry, is you can schedule them to be once a quarter, the 1st of every month, and it'll just email you the report. Where there are ones that are more complex and you have concerns, You are free to schedule with us a closed-door meeting to discuss that litigation. Sometimes when we have high-dollar values we're talking about, we want direction from the council on whether they do or don't want to settle, what, how much they consider a realistic settlement, and we'll offer you the data on what these historically settle for.

I mean, because we're looking at that, and it's not on you. I guess I'm, I'm, I think our city management does a great job. of that. Um, but good to know. I just would like to, maybe from my perspective, I don't know how other council members feel, but I, I— that would be a great thing to get some updates in that case.

But we're happy to do it.

Thank you so much. That was—

yeah, thank you.

Any other questions?

Thank you for your time.

Okay, item 2.2 is a presentation of Yuba Valley Home Consortium resolution by Heather.

Okay, this should be short and sweet. Um, we have a resolution that we have to enter into or an agreement we have to enter into every 3 years. I don't think I need that. Okay. Um, the HOME Inter— it's called the, uh, it's just the HOME Interlocal Agreement. So HUD has 2 block grants. They have the CDBG block grant, and then they have the HOME block grant. Um, CDBG covers low-income needs generally. Anything from food programs to housing to, you know, anything you can think of, home repair programs. But the HOME program is for low-income residents that specifically targets, um, housing opportunities. So we sit on this consortium, the Utah Valley HOME Consortium, in order to qualify for the minimum amount that HUD can give us. So, Provo, Orem, Lehi, Eagle Mountain, and— oh, how many are there now? Eagle Mountain just barely qualified. So, Provo, Orem, Lehi, Eagle Mountain, and Utah County. We are all in this consortium, and we've been on this for a while now. Um, I was sitting on the consortium last year. Some of the things that we funded were, um, homeless services, homeless shelters, domestic violence shelters for women who are trying to— and children who are trying to escape the situation. So, specifically for housing people in tough situations. Um, so again, this renews every 3 years. We have to renew this agreement every 3 years. I believe in order for us to get these funds, we have to be a consortium because none of our cities have either the demographic makeup or to qualify for the $500,000 threshold. So, um, either way, it benefits all of us. So, you know, from my experience, what I've seen is it benefits all of us, but we're up for another, um, agreement to go into effect on October 1st, and we have to also pass a resolution saying that we agree to go into this. Our city council has to vote on that. Are there any questions on this?

And this is on our consent agenda tonight? Yeah.

I just have a quick question on the cities. Is that based on size?

Population. The percentages are broken up. Uh, basically, the pool is split by population.

So, I know when they presented to us, it's been a year, maybe it's 2 years ago, they came and presented. One of the things that we kind of asked about, and they said they weren't able to do so much anymore because of the cost of housing, was down payment assistance, or actually getting people in owner-occupied housing. Is that even discussed in your meetings, or are we just putting fires out?

Um, you know, with owner-occupied, Um, well, it's been about— it's been over a year. Debbie, did you happen to go to that last meeting at Provo, the home consortium one?

No.

Okay. Um, I, I just recall from the last meeting I went to when we voted, and I was a voting member, so Debbie has since replaced me on that consortium. We voted mostly on, um, a domestic violence shelter to contribute to that. and add beds, homeless services, or homeless shelters. And, um, there was one particular developer that wanted help with building that. Yeah, basically, it was an interesting program where the developer contributes to this affordable housing— not affordable, like, they actually had, like, quarter-acre lots, but then, um, the homeowners actually had to contribute the labor to build the homes. So, just interesting things like that, combinations I actually don't I think that they may not have received that funding. I have to double check, but just different ways to get affordable housing. Um, there are down payment assistance programs. Yeah, I know Provo has one.

I'd like to, just from our perspective, bring some of that to Orem if we could. I mean, I can appreciate— I know we're helping fund the women's shelter up there on 8th North. Um, I would appreciate maybe shifting a little bit if we can to some of this renewal.

Yeah, the revitalization of older neighborhoods would be huge if you had any kind of money that could help citizens do that. That's got to be a—

I think the down payment assistance program is available to warm residents. I think it may— because Provo administers this program for us, it's like CDBG where it's just super complicated. They have specialists who just— this is their entire jobs. They go to trainings every year. Um, so I'll have to talk to Melissa McNally. She's just the wizard over there in Provo and ask her. We can just start having those conversations.

Let's see if we can bring that back to the top of the discussion list.

Revitalization. Sure.

Awesome.

We'll talk to Melissa about it. She's shaking.

I am too. I'm going to text Melissa.

Any questions from anyone else? Or—

perfect.

Thank you.

Perfect. Okay, next, I guess I am reporting on my boards and commissions. Right. Yep. Um, okay, let's see. I'm on the America 250 Committee. Um, that's just getting going, I guess. I really haven't done too much with that except for we've talked at the library of maybe, um, creating some book sets to bring some opportunities there. And that's— yeah, that's run by the state. Not a whole lot going on there. Cultural Advisory— Cultural Arts Advisory Commission. That one is a fun one. Um, Pete helps me with that every once a month on Fridays, and we have a great group of people. They are— we don't create art, we don't produce art. Our Arts Commission doesn't, like other cities. We instead bring opportunities to the artists in our community to come and perform on our stage or to the Rock Fest, you know, those types of things. We just support the art, the artists that are already here. So that's going really well. We have some great members there. Our Neighborhood Advisory Commission is going great. Debbie's amazing on that. She's helping with the My Hometown. Thank you. And the Days of Service, those are just amazing things are happening. We're getting ready to do the Sharon, um, kickoff for the My Hometown in that area, the CRC over there. Um, Orem Community Foundation Board, uh, that's our fundraising Meeting that for our Gold Star families mainly right now. Um, I serve on the Station Area Plan on the committee with MAG. It looks like we're going to be submitting ours in November, December-ish. The meeting— Yeah. That's going well. Uh, ULCT, um, the CHAW Commission on Housing Affordabilities. I've had 2 meetings with, uh, the league About the interim legislative session, some of the bills that are being created, some of the things that are being lobbied for. And that's quite an interesting— Steve is on that with me. Brenner, you, you sit in on those meetings sometimes, don't you?

The legislative policy.

Okay. Yeah, let's see Steve on the Zoom calls. We got great representation there. And then the last one is Utah Lake Authority Board, and that one is— I don't know if you guys have seen the Studio C Original cast video? Yes, about Utah Lake, where they're the German tourists. Yes, if you haven't, Google it.

Again, it shows up in the hazmat suit.

Yes, it's so cute. It's really good. And they're, they're— our theme is, you know, Utah Lake is my lake, and they're really doing some great things down there. So to kind of bring the public to Utah Lake and help us with conservation efforts and all of the trails, all of that. So Busy, busy. That's it. Okay, uh, let's do our agenda review. Okay, we have our call to order. We have our, um, invocation will be by Richard Wilkerson, uh, and the Pledge of Allegiance by Rachel Wilkerson. Those are from— and I invited them from Wilkerson Farms. We have our consent items. We're going to see appointment to the Library Advisory Commission. That's Chris. So, um, I don't know if he at that time has anything to say. We can see. And the resolution that Heather just presented will be our consent items. Um, oh, and we get fun stuff from Brandon. 9.1, the public hearing on our Enterprise Fund transfers. 9.2, an ordinance enacting compensation increases for specific city officers. And 9.3, public hearing ordinance adopting our fiscal year 2025-2026 budget. Anything about that, Brandon, you need to—

I know it's come up before. Some people have asked me, so you'll notice 9.1 is not an ordinance. Um, the idea behind the enterprise fund transfers, I mean, it's a state legal obligation to— and what I'm required to show you is also stated in that. Law. So it's really just a way to— for the public to be able to make comments about the transfers, but there's nothing to act upon because you do that as part of the adopted budget.

Okay, well, you have a presentation that you'll—

Yes, there is. Yes, there's a presentation for us. It's really a transparency effort.

Okay, so public hearing on all 3 of those. Um, personal appearances.

Um, to be clear, Steve, it's a separate public hearing for each of those.

Correct. Okay, so motions to open and close. Okay. Um, and then number 11, financial information. Is there anything we're— there's not just in the packet. Okay. Um, the manager information, and then we will be adjourning to our different RDA meetings. Special Services, the RDA consent items and the scheduled items, public hearing there too, with the motion as indicated on the agenda. Item 16 is then we go to our Special Service Lighting District. For some consent items and the schedule item. Once again, the motion with Brandon's presentation, um, and then Municipal Building Authority. So, Brandon, you have presentations for 2 of these?

So all 3 of the regular session, the RDA, and the SSLD. Nothing for the MBA.

Okay. Okay, and then we're done. Are there any questions, comments? Okay, got 6 minutes till we can start. You mentioned it.

Their associates just—

you're a world traveler. Activity, there was nothing. Oh, it's great if you had the opportunity. She's always a touchy subject.

Yeah, touchy subject, characterizing somebody that— oh, you can tell me your Everything you're going to do.

Let me know when you're going to do those after information. And for the most part, I mean, it's a pretty safe place.

And she told me that he served in Japan.

Test, test. I've got you. I'm here. I'm just waiting for the next. So thanks.

Yeah. Okay, we'd like to welcome you all here tonight to our city council meeting. Um, we will begin with a prayer by Richard Wilkerson and a Pledge of Allegiance by Rachel Wilkerson. We're so grateful to have them here and their cute little family. I appreciate their efforts with how they've entertained our community and really cared for our community food needs with your Wilkerson Farm. So we apologize for The situation you're in now, but we are just wanting to express our gratitude to you and all that you've, um, given to our community. So we'll go ahead and we'll start with the pledge— I'm sorry, the prayer by Richard, and then the pledge by Rachel. Thank you. Just come up to this mic right here, and there should be a button to turn the mic on. Thank you.

Hello. There we go. Dear Heavenly Father, we're grateful to come before thee in prayer, and we're grateful for hearing our prayers and answering our prayers. And we pray now that the Spirit will visit us, be with us, And guide us and direct us according to thy purpose and thy plan, Father, for our community and for our people here, that we might watch over them, protect them, look out for them, bless them, and love them. And we pray now for thy blessing to be with us in many of the difficult things that Have to be decided amongst us as a group. In the name of Jesus Christ, amen.

If we can all please stand for the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, One nation under God, indivisible, with liberty and justice for all.

Okay, so I'd like to take just a moment. I'm filling in tonight for Mayor Young, and I'd like to take a moment to just recognize his absence from tonight's meeting. Um, and just comment and say, this is the first standard city council meeting that Mayor Young has missed in 3 and a half years of dedicated service. We appreciate him and his service, uh, but there is a very special reason, and the reason for his absence reflects positively actually on our entire community. He is in Salt Lake City tonight receiving the Best of State Award for the best mayor in the state of Utah. How about that? This is the 2nd consecutive year that Mayor Young has received this honor. And while last year's nomination came from city staff, this year's recognition was initiated by members of our community who wanted to express their appreciation for the mayor's leadership, his vision, and his integrity. So despite his request to not be nominated by the staff again, uh, it looks like our community voices spoke out loudly and, and once again submitted a nomination for him, and he was chosen again. So So he has stated that this award is special because it's not about individual recognition. It is about what we have achieved together as a city. And Mayor Young being honored through the combined efforts of the city is being honored because of the combined efforts of our city council, our city staff, and of course, engaged residents of Orem. And because of that, we've accomplished some outstanding things for Family City USA. So, um, to that note, I— and we want to congratulate the mayor for that. I would also like to announce that in addition to the mayor up at the Best of State awards ceremony tonight, there are also representatives from the Orem Police Department, who was awarded the Best of State medal in the mental health services category for the many things that they do to prevent mental wellness both in the city and on the police force. And also, Orem's Parks and Rec were honored with the Best of State medal this year in the Parks and Rec category for their huge leaps forward in the city's amenities and recreation offerings. So we will have more about that on our council meeting in 2 weeks, but I just wanted to announce that tonight and Just say congratulations to all involved in their hard work that brought this incredible recognition to our great city. So, thank you to all of you. Um, okay, let's— oh, yes, we've got— we'd like to excuse Councilmember Tom McDonald. He could not be here tonight. We do have Councilmember Chris Kilpatrick online. Correct, Pete? Okay. And the rest of us are here, right? Perfect. Thank you. Um, our next item, 8.1. These are our consent agenda items. 8.1 is appointment to the Library Advisory Commission: Karina Lewis, Matthew Barton, Angela Waters, and Christine Corley. And 8.2 is a resolution for the Utah Valley Home Consortium. I have a motion to approve the consent items.

I make a motion that we approve the consent items.

I second.

Aye. Aye.

Aye. Aye.

Aye.

Hope I heard that. That was Chris. Okay, wonderful. Thank you so much. We'll move on to item 9.1. This is a public hearing. Um, our presenter will be Brandon Nielsen, and it is for the enterprise fund transfers for fiscal year 2025-2026.

Are we on?

Yeah, I don't think Brandon is going to move all night. Is he going to sit at the— he's a man.

Thank you, Mayor Pro Tem and city council members. So we are required as part of state law to provide some transparency in relation to funds transferred from our enterprise funds to any fund that is not an enterprise fund. surprise fund. In this case, these transfers come from the water sewer or water reclamation, stormwater, and street lighting funds into our general fund. The purpose of the transfers is basically because the state auditor required a number of years ago that we show the— So prior to that, The city obviously used water, used sewer free of charge because it was the city's facilities, city, so primarily, you know, parks-related things like that. State Auditor required that we show revenues to those various enterprise funds for the use of those things. And so there is a revenue that is recorded from an accounting perspective. within those funds. But then, with— in order to not raise rates or change rates at all, um, those funds are then transferred back to the general fund. So the general fund pays them to the utility funds, and then the enterprise funds transfer it back. So there's no impact to any of the funds prior— it's the exact same as prior to the requirement to show that. That said, the main reason for the ordinance, The law in the state was, um, some entities were taking advantage of that and just transferring funds with— for no, no special reason. And so that's why the ordinance was created. Um, uh, Orem has never done that. And so for us, it's simply a matter of transferring out and transferring the exact same amount of money back in. Um, as I mentioned, uh, it's on city-owned properties. Um. Related to the cost of supplying those services, and it's included— it was already included within utility rates even prior to the ordinance. Um, mentioned the state auditor, and the 3 choices we would have are listed there as far as raising taxes, cutting services, and transferring funds. We obviously have chosen number 3, just to transfer funds. And, um, and as I mentioned, it's already encompassed in the utility rates. So the general fund pays utility funds, as mentioned, and the amount for water, primarily for those— for primarily parks, but the other entities as well, areas as well— $900,000. Water reclamation or sewer is $16,000. Stormwater is $141,000. Stormwater relates to, say, parking lots and covered space. And street lighting is $15,000. As part of that requirement, you can see on the far right side the relationship of how much that transfer is in relation to the percentage of total expenditures for those individual funds. And those continue to decrease as those funds get larger. As part of the required information to be shown to you, you and the public tonight, Um, you can see the various service revenue sources for each of the various funds that are involved in those transfers, um, and then related to the various breakdown of those funds and their expenditure categories, um, in relation to their size. So you can kind of get that flavor for what that, you know, those— the size of each of those funds and the associated transfers are. Um, then there's a really, uh, requirement then to show a breakdown of the admin— administrative internal service charges, as well as those transfers. You can see down the 2nd line at the bottom there, the transfer fee return. That's where those funds are being transferred back to the general fund. A breakdown of the utility and each utilities and the various costs associated with them, and you can see the individual breakdown. Uh, the capital is obviously the single biggest part in most of those funds, except for the contracted services within water, which are related primarily to Jordan L, and as well as the cleaning up at the plant, treatment plant cleaning of the water. There's a breakdown here of those contracted service— that contracted services line that I just mentioned. Um, to see where those contracted services are coming from and what they're paying for. Are there any questions about the— those transfers? Great. I'll turn it over to you, Mayor Pro Tem.

Okay, let's open the public hearing for any comments on the enterprise fund transfers for fiscal year 2025-2026. Seeing there's no comment, we'll go ahead and close the public hearing. And do you want to do your presentation next? Yeah, for the next one. Okay, so 9.2 is an ordinance enacting compensation increases for specific city officers by Brandon. Do we vote on that? Okay.

Pete, do I have to do anything? Maybe it's just slow. Do I have to unplug and replug in? Oh, there we go. Okay. Um, uh, requirement last year from the state legislature was that cities and counties were required to indicate in a separate public hearing, um, the, uh, as part of their budget process, the anticipated or the expected budget increases for specific executive officers. That doesn't— that's more than just exec staff members, but as you can see, various members there that were identified through that law that needed to have, um, those stated. And so as part of that, it's an ordinance accepting that These increases will go into effect as part of the adopted budget. And that's all there is in relation to that. Are there any questions about any of those? The idea here is most of all these increases are in step with, generally speaking, our step increases that regular staff members, all of our step programs follow, are generally 3%.

Brandon, that is in the budget.

That is in the budget, correct?

Okay, we'll open the public hearing. Anyone wishing to comment on the ordinance enacting compensation increases for specific city officers? Okay, we'll go ahead and close the public hearing. Ready to entertain a motion?

I move to enact by ordinance the compensation increases for specific city officers. Second.

Aye.

Aye. Aye.

Okay, the motion passes. Oh, Chris.

Sorry.

Thank you, Chris. All right, the motion passes. We'll move on to 9.3, a public hearing for ordinance adopting the fiscal year 2025-2026 budget, and Brandon will give us that presentation.

As discussed in the tentative budget earlier, about a month ago, various meetings have been held throughout the year listed here regarding various elements of the city's budget, and concluding here today with hopefully the adoption of, of the tentative budget. Um, some of the budget highlights, again, revenues are increasing $17 million over the prior year. Uh, the various compensation packages, health insurance, and as well as pay have all been included within, and the STEP programs have all been included within this budget, as well as health insurance increase, the fleet replacement, and various capital projects. Primarily, you know, a large portion of the capital projects being roads, Waters and our enterprise systems. Uh, budget overview from a comparability standpoint. I mentioned the increase of $17 million in revenues. Um, $15 million of that is in new revenues. Um, about $3 million of that is in our general fund. $3 million of that is in our water fund, and approximately $9 million of that is in the water reclamation or sewer fund. Um, as we discussed in the tentative budget related to the upcoming water treatment facility expand— improvements that are going to be needed to be made there. Just to give you an idea of the breakdown of the revenues by major fund and where they are, you can see the largest being the general fund, which is where our entire public safety group is, as well as much of the administration and various other community development, et cetera. Very large portion of them are in that area. Um, although allocations do occur to, um, to other funds for staff member help in relation to any of those other funds. Specifically, I'm discussing the general fund being the largest fund of the city. You can see the $3 million increase in the general fund. Um, there's a variety of smaller sources for those increases. Sales taxes, property tax, cemetery, and ambulance, and our fire contracts with Vineyard and Linden all have accumulated to create that $3 million increase in general fund revenue. Just to give you an idea of where the general funds revenue sources come from, you can see the largest Of course, is taxes, primarily property sales and franchise taxes. And then the 2nd most being charges for services. And those are obviously whenever we have certain things that we're able to charge fees for that are specifically related to those elements. That's included within that charges for services. And those generally don't vary. Those percentages don't generally change a whole lot from year to year. They kind of fluctuate back and forth. Uh, in relation to expenditures, obviously the budgeted amount ties to our revenue amount as per state law, and the breakdown you can see from personnel costs to versus operations versus capital. This year, as mentioned, a large portion of the increase in the total budget is in relation to capital, and you can see that increase over fiscal year '25, and, and that has an impact in relation to the other 2 elements in relation to their percentages. Again, just to break down by fund, uh, some of the larger funds and, and how those personnel, operations, and capital items break down amongst those funds. You can see personnel significantly is the significant piece in the general fund as comparative to the others. And you can see down in the water reclamation, that $16 million in capital, which is quite a big increase from prior years. Specifically for this budget year, we have various general fund additions that are so on top of our regular recurring items. Um, various items that we are increasing the budget for, um, and AI software related to reporting for our officers, rifle replacement plan, and then the admin area amount set aside for the admin area over being remodeled over at the library. Um, various personnel related to— and some of these have revenue sources that are covering that, covering those costs. Um, but needless to say, we wanted to make sure we mentioned that, uh, we have those personnel being added, um, in, in primarily the fire and public works areas, um, in relation to Heritage Park, as well as our new fire training facility and, and other needs in relation to our contracts with Vineyard and Linden. Uh, moving on to our water fund, uh, we have, uh, an increase in the current year in relation to the our rate— water base rates, as well as the tier rates for water usage. Um, and then the other item being included in this year is, as we mentioned in the tentative budget, our impact fees that we have historically received and paid— been used to pay for our Jordan L water supply. Those fees have become very minimal, and so it has become necessary at this time to Uh, have a fee specifically tied to that Jordan L water cost. Um, and so we've added a specific fee this year for that, as well as for the Deer Creek projects that have been taking place in improving that facility and our portion of that, that caught those costs over the next number of years.

How are those going to show up on people's— is it just going to be under Central Utah Water, or will it be listed as Jordan L?

Uh, Chris, do you have a—

do you know?

A water source fee that could be used for Jordan L water supply or to complete a project. Okay, perfect.

Thank you. So water— he just— because I don't think you're mic'd. Okay, water source fee.

Water source fee. Can you repeat that?

What he said?

Yeah, so it'll be a water source fee, and there'll be— in essence, we've identified them individually, but they can be used interchangeably depending on the costs of each of those elements.

And then there will be an explanation. Also, perfect. Thank you so much for doing that.

Uh, our water reclamation or the sewer fund. Again, there'll be a sewer base rate increase this year as we prepare for for some significant capital improvements to the facility, as well as a volume charge increase in relation to treating the water at that facility and getting— being able to obviously get the sewer down to the treatment plant. And so those projects are all part of those increases. And then just to make you aware, so as I mentioned in the tentative budget meeting, a large portion of the increase is related to, um, Linden and Vineyard's share in the facility, in the water treatment facility, um, and whether they're, whether they're choosing to pay for their share all up front. Um, we've loaded that here. Um, we're— and I'm not sure if we made a decision on— have they made a decision as to how they're going to go forward? Yeah, so Linden is paying up front and Vineyard is Yeah, so, so, uh, just to reiterate that, uh, so Linden will be paying theirs all up front, uh, and, uh, Vineyard will be paying over time. Um, their share is 15% total. Okay, between the 2. Stormwater, uh, be a rate increase in the ESU rate from $849,000 to $900,000 just to cover operational costs, uh, and, and etc., inflation. Uh, Recreation Fund continues to do well, um, as their admin— annual membership— annual memberships, daily admissions, those will— as they continue to grow, and indoor class revenues are budgeted to grow pretty significantly as well. There Any variety of smaller increases? I don't believe we— Bryce, did we increase the admission? I don't— trying to remember. Memberships are set to stay the same. The admission is set to go up 50 cents. Okay, so memberships stay the same and the admission go up 50 cents. Solid waste fund, there are no proposed increases to the rates for the upcoming year. As even though Waste Management will be increased, as well as North Point will be increasing their fees, we felt that given the other rate increases that— and given the fund balance that was available in the solid waste fund, we could stay that for a year. As I mentioned, the rates right here are— you can see no changes, and just to keep that in mind is In your discussions, as that will, you know, a lot of these will eventually obviously come up in as people when they start receiving their bills in July. And just to give you an idea, again, talking about the total utilities for the City of Orem, the $128,000 that you see us near the bottom includes all of those changes for fiscal year. The rates for all of the other individual cities are based on their existing rates. And so you can see we still fare very favorably in relation to our other comparable cities.

When do you think they'll post theirs, their changes?

I would imagine that they are in a very similar situation as far as doing their adopted budgets this, you know, here at this time. You know, they all vary a little bit and we don't, You know, we don't try to then go and figure out what they are here at the last minute and update the table. And so we probably could, based on their tentative budgets. Um, but anyway, and that's all I have for our adopted budget.

Okay, and I think it's important to note that we have had many presentations. Regarding this. So this is just, um, review. We've all seen all these numbers several times, so appreciate all your work on that and the efforts to get this done before the deadline. Thanks, Brandon. Do we have a motion? Oh, I'm sorry, you're right. Can we open the public hearing, please? And we will close the public hearing.

I move to approve by ordinance the adopting of fiscal year 2025-2026 budget.

I second.

Aye. Aye.

Aye.

Aye.

Chris, thank you. Okay, motion passes. Okay, we'll move on to item 10, which is our personal appearances. Um, I didn't— Lori, did we have anyone sign up tonight? We did not. Tonight is a very slow night, isn't it? So no personal appearances tonight. Um, item number 11 is financial information. That's for information only. Um, that statement is in our packet. Um, item number 12. Our city manager, do you have any items you want to discuss? And then—

Yeah, just, um, just so you know, we, of course, had a very successful Orem Fest this last week. Um, we had very impressive numbers, but I won't take the wind out of the sails of our events groups, and they'll, they'll come back in a couple of weeks with a kind of a full, impressive presentation and show all the numbers. But To have such a successful event, not only in terms of everything going smoothly, but also just having it be something that, that our public is so excited about. It takes a lot of hands, a lot of hours, a lot of effort from volunteers and the commissions and boards and you. And, and we have participation literally from every department and division to make it all go on without a hitch. So I just. Thank you. I want to publicly express my appreciation for our staff for, for once again doing an even better Autumn Fest event than, than ever.

So, can I just add to that? Um, I was so impressed, and I know our staff isn't here to hear this, but maybe you guys could pass this on. I just was so grateful for all the work they did. I talked to some of them who had been there from 6 in the morning until midnight every day that week. And then when it was all said and done, they were there at 6 in the morning on Sunday to get the city cleaned up before life happened. So they were amazing, and I was So grateful for that. So thank you.

That was great. And that, um, Chris and Jen on our commission there, so thank you for your efforts on that. Um, I did have a couple things that I neglected to read here that were given to me. If, if—

I'll yield the time to you. Let me know what I can do.

So I just, I, I neglected to just give some additional information, some kudos to our Orem Police Department and our Parks and Rec. So if you don't mind, for— if you'll, you know, give me a moment here to just kind of reiterate the greatness of this Best in State award that they got. So, um, once again, the Orem Police Department was awarded the Best in State medal in the mental health services category for the many things that they do to promote mental wellness both in the city and on the force. Some of the contributing factors for this award include The police department's efforts to help and connect with those with mental health issues and get them the resources that they need. Our Orem Police Department's connection and work with the special needs community through their picnic that they had, right? The big event, the reading days in the parks, the annual autism picnic, and going above and beyond to make sure that our most vulnerable members of our community are shown respect and love. Few police departments in the state are doing more for mental wellness for their officers. Orem has been a leader in this effort for many years as required counseling sessions, post-incident debriefs, and family support services come as the standard. So we— I would just like to say just congratulations on that Best of State Medal. I don't know that we always know everything that goes into what our great police officers do and the way that affects them personally and their outreach to our community, those connections that they're always striving to make. So thank you, well deserved, well deserved on that one. And then just some more information on our Parks and Recreation. They were honored with the Best of State Medal in Parks and Recreation, and a few of the reasons why this award was given to our Parks and Rec was Last year, Orem's 21 parks had over 1 million visits. Orem's parks have hosted some of Utah Valley's most popular events, including Our Lights On, our Orem Fest, and the largest farmers market in the state. Orem's Hillcrest Park earned the Best Facility Award from the Utah Recreation Professionals Association, and the Orem Family Fitness Center just celebrated 4 years in operation And it continues to be a leader for recreational facilities and sets new records in attendance each year. Our Lakeside Sports Park has undergone some huge improvements with turf fields, new lights, and tens of thousands of players and spectators from around the region that have enjoyed these offerings. So once again, just congratulations, hats off. We're going to have everybody here at our next meeting and take some pictures, and they can show off their award. So, yeah, Brandon's like, can we just— there's a few of us here, but let's just clap. Okay, thank you, Bryn. That's—

Nothing else.

Okay, so I move that we adjourn to a meeting of the Arm Redevelopment Agency, RDA.

Second.

Aye. Aye.

Aye.

Aye.

Okay. Do we have another motion for consent items?

I'm making a motion to approve the meeting minutes, the consent items for May 13th, 2025.

Correct.

A second?

Aye. Aye.

Aye.

Aye.

And Chris, are you there?

Sorry. Yes, I—

Okay, thank you. Okay, so scheduled item, the RDA scheduled item is 15.1. This is a public hearing, a resolution adopting fiscal year 2025-2026 Redevelopment Agency of the City of Orem budget and amending the fiscal 2024-2025 budget with our presenter, Brandon Nelson.

Thank you again. Um, as you are probably well aware, but maybe citizens are not, uh, Redevelopment Agency of the City of Warham is a separate legal entity. Therefore, as a separate legal entity, it has to have its own budget. And this year we are proposing a budget as our, our RDA areas continue to All of them but the University Place, uh, CDA have expired. So we have funds remaining from the older, older RDAs that we gradually are spending on various projects as they come up in those particular areas. Um, and then the University Place CDA has an incentive agreement in relation to it. Um, as you can see there, kind of right in the middle of the screen, whereby as the property taxes that are developed in that, um, are received from that development area, um, uh, 90% of those are, um, sent back to Woodbury, who I'm— I know uses those towards paying off, uh, the debt associated with their— the building of the various, uh, infrastructure elements within the CDA. 5% is maintained, um, within the actual RDA fund for future infrastructure needs that the city may participate with in, and the other 5% goes back to our general fund as part of an RDA overhead admin element. And then right now, those are very basic things that are going on within the RDA. Any questions about those elements within that RDA?

Great. Okay, seeing no questions, we'll open the public hearing to discuss the resolution adopting fiscal year 2025-2026 Redevelopment Agency of the City of Orem budget and amending the fiscal year 2024-2025 budget. Seeing as there are no comments, we'll close our public hearing. Can entertain a motion.

I move to approve the adoption of the fiscal year 2025-2026 Redevelopment Agency of the City of Orem budget and amend the fiscal year 2024-2025 budget.

Second.

Aye. Aye.

Aye.

Aye.

Okay, thank you, Chris. Okay, the motion passes. Uh, number 16, item number 16.

I move we adjourn to a meeting of the Orange Special Service Lighting District, SSSLD.

Second. Aye.

Aye.

Aye. Aye.

Aye. Thank you, Chris. Okay, which takes us to item 17, our consent items. Approval of meeting minutes for May 13th, 2025, 17.1.

I move to approve this consent items approval of meeting minutes, May 13th, 2025. Second.

Aye.

Aye. Aye.

Aye.

Thank you. Consent items pass. And item 18, um, SSLD schedule items 18.1, a public hearing resolution adopting the fiscal year 2025-2026 Special Service Lighting District, SSLD, of the City of Orem, with Brandon presenting.

Thank you again. Uh, again, the Special Service Lighting District of the City of Orem is a separate legal entity created sometime in either the late '90s or thereabouts in order to change out all of the Lighting districts that were formerly with Rocky Mountain Power and all put in all those nice, nice poles that the City of Orem has. Now though, we're just about finished with the replacement of all of the old poles and having all the new poles, and we've moved in more to a stage of obviously repair and replace and maintain. And so the budget primarily focuses on Uh, that element, and you can see the various revenue sources primarily related to street lighting fees that are charged on citizens' utility bills. And in relation to the street lighting expenses in the current year, you can see the operating budget, and then this current year we've added a holiday lighting element to the— as you mentioned, you mentioned the lights on, and so a piece of that cost is borne by the street lighting fund, and that you can see that there. And then once upon a time, we had an energy-saving— we did a lease to replace all of the light bulbs for all of the streetlights with LED lights, and that's as well as some other elements. And And those energy savings, that lease is borne by this fund as well. So those are the items that are on there. We have an increase in relation to the fee, street lighting fee that is paid on your utility account, and businesses pay that, their street lighting fee in full upon renewal of their business license. That's what I have. Any questions?

Okay, seeing as there are no questions, let's open the public hearing. Anyone who would like to speak to the Special Service Lighting District budget? Seeing we have no comments, we'll close the public hearing. Ready to entertain a motion?

Yeah, I move to approve by resolution the adoption of the fiscal 2025-2026 Special Service Lining District SSLD of the City of Orem budget.

Second.

Aye.

Aye.

Aye.

Aye. Aye.

Okay, the motion passes. Item 19. Then, want to make a motion?

Yeah, uh, make a motion to adjourn to a meeting of the Orem Municipal Building Authority, MBA.

Okay, which takes us Oh, I second. Too many votes.

I second.

Okay, go ahead.

Aye.

Aye.

Aye.

Aye.

Perfect. Okay, let's go to item number 20, MBA consent items. 20.1 is approval of meeting minutes for June 18th, 2024.

I move that we approve the minutes— meeting minutes of June 18th, 2024 of the MBA consent items.

I second.

Aye. Aye.

Aye.

Aye.

Aye.

Okay, the consent items are approved. Item number 21.

I move that we adjourn.

Second.

Aye. Aye.

Aye.

Aye.

Okay, this meeting is now adjourned. Thank you so much, everyone. That was record time.