CITY OF OREM
CITY COUNCIL MEETING
56 North State Street Orem, Utah
August 28, 2012
5:00 P.M. STUDY SESSION
CONDUCTING Mayor James Evans
ELECTED OFFICIALS Councilmembers Hans Andersen, Margaret Black, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner
APPOINTED STAFF Jamie Davidson, Assistant City Manager; Greg Stephens, City Attorney; Richard Manning, Administrative Services Director; Stanford Sainsbury, Development Services Director; Karl Hirst, Recreation Director; Chris Tschirki, Public Works Director; Donna Weaver, City Recorder; and Rachelle Conner, Deputy City Recorder
UTOPIA Update
Richard Manning, Administrative Services Director, reviewed the history of UTOPIA. The timeline was as follows:
· 2002 – City participated in a study to determine the viability of Fiber to the Home (FTTH) concept
· 2004 – City joined UTOPIA and became a financial partner
· 2008 – Refinanced debt to $185 million and 11 Cities pledged to back this debt
· 2011 – Utah Infrastructure Agency (UIA) issued $29.5 million to continue construction and partially fund ongoing UTOPIA
o First year’s results
§ 2,337 new subscribers
§ 2,273 residential
§ 164 business
· Attained 49 percent of phase 1 subscriber goals
· Attained 92 percent of phase 1 revenue goals
o Auditors want revenues restated, which will show a dramatic increase in revenues
· Increased average revenue per subscriber significantly
o Now average $48 per subscriber
o Orem’s results
§ 567 new subscribers
§ 542 residential
§ 25 business
· UIA Business Plan
o 5 phase model
o Goals
§ Cover UIA debt
· Almost there
§ Cover operational deficit after 3rd phase
§ Help pay down $185 million
o UIA approved to issue up to $65 million in debt
§ Have approved $29.5 million
§ Received $17 million in stimulus grant
§ Each of 1st 3 trenches of debt planned to contain operational support for UTOPIA
· Phase 1 - $4.5 million
· Phase 2 - $2.65 million
· Phase 3 - $100,000
§ Phase 1 began June 2011
· Plan was to issue next round of debt June 2012
§ UTOPIA runs out of operational funds September 30
· Problems in Phase 1
o Tsunami in Japan took out most of world’s fiber production capability
o Smaller addressable market than projected by Dynamic City
o Construction Utility Easement (CUE)
o Failure to reach projected subscriber goals
· Response to Problems
o Developed lease program
o Increased focus on business generating roughly $10 to $1 per subscriber
o Savings in marketing has allowed UTOPIA to continue operating until end of September
· Options going forward
o Stop seeking to grow network
§ Will have to pay all of existing debt
· City has a schedule and knows to the penny how much that will be
§ Pay ongoing operational costs
· Operations will be reduced as no need for marketing, sales, construction, etc.
§ This creates in equity with the Cities
· Some have paid more than they received back
· Others received more than they have paid
§ Lose $6 to $7 million in unspent stimulus funds
o Shut Down
§ Have to pay all outstanding debt
§ No more operations costs
§ Inequality argument above comes into play
§ Lawsuits from those who have paid for connections that now have no service
o Sell the system
§ Will receive an unknown amount back on system
§ Will have to pay some portion of the debt
§ Current subscribers may or may not have to change providers
§ Need to determine an equitable distribution of assets prior to a sale
o Continue seeking to grow system
§ Next phase is $10 million
· $3 million operations
o Balance construction
§ Focus will be on selling along the stimulus route and business customers
§ Maximum additional exposure if not a single new customer subscribes $70 to $75,000 per year
§ There are options on how to grow the system
§ FTTH, wireless, air bridges, primarily business
· Recommendation
o Proceed with next phase if
§ UTOPIA produces a plan based upon current performances showing how operational costs of UTOPIA will be covered within 2 years
§ Hold UIA/UTOPIA accountable for reaching performance goals
· What to do if performance goals are not met
· UTOPIA/UIA Performance Goal
o Cover operations within the next 2 phases
§ Find top return on investment (ROI) opportunities
§ Increase average revenue per user (ARPU)
§ Increase market share through innovative deployment
§ Get Cities fully supportive of UTOPIA and enhance general image of UTOPIA
· Legislative Audit
o Nothing in audit suggests stopping
o 4 recommendations are being implemented
§ The Board strengthens its management controls through
· Formal development plan reviewed and approved by the Board
· Formally adopt new management practices
· Adopt a set of benchmark metrics to evaluate progress toward achieving goals and strategies
o This is being pursued diligently with meetings being dedicated to fleshing out goals and strategies
o A management audit is being considered with the aim to provide the Board specific recommendations to improve operations
§ Recommend the Board adopt financial controls required by the Uniform Fiscal Procedures Act for Cities
§ Ensure that its business is always conducted in a manner consistent with the Utah Open and Public Meetings Act
§ Reactivate its three standing committees
· Economic Development Committee
· Finance Committee
o Has been activated
· Network Advancement Committee
The City Council, staff, and UTOPIA staff discussed the options for moving forward. A follow up session will be scheduled for further discussion.
DISCUSSION – Care Giver Ordinance
Steve Earl, Deputy City Attorney, gave a brief background of why the City Council approved the over sixty-five ordinance. The main purpose was to help those over sixty-five have additional income that would help them continue to make their mortgage payment and allow them to stay in their home. It would also allow for them to have a live-in care giver. The reason the Council chose age sixty-five was because those people are normally empty nesters who live alone. They have fewer drivers, so there would be less impact on the neighborhoods.
Mr. Andersen observed that the City was only getting eight to ten new accessory apartments per year when the opportunity was open. He said that did not allow for very much new housing. Utah Valley University is growing, and if the City Council wants to increase housing, they should open the care-giver option to anyone that wants to do it.
Mrs. Black said they opened up accessory apartments, which will add more housing opportunities. She does not have any desire to open the care-giver ordinance to everyone. That would be doing away with single-family neighborhoods.
Mr. Andersen stated that if they do not want to change the ordinance to open it up to everyone, the City should focus on enforcing the ordinance on all illegal accessory apartments.
Mr. Seastrand advised that part of the overall housing strategy in Orem is to provide diverse options such as town homes, multi-units, single-family dwellings, senior housing, etc.
REVIEW OF AGENDA ITEMS
The Council and staff reviewed the agenda items.
CITY COUNCIL NEW BUSINESS
The Council adjourned at 5:55 p.m. to the City Council Chambers for the regular meeting.
6:00 P.M. REGULAR SESSION
CONDUCTING Mayor James Evans
ELECTED OFFICIALS Councilmembers Hans Andersen, Margaret Black, Karen A. McCandless (left the meeting at 7:11 p.m.), Mark E. Seastrand, Mary Street, and Brent Sumner
APPOINTED STAFF Jamie Davidson, Assistant City Manager; Greg Stephens, City Attorney; Richard Manning, Administrative Services Director; Stanford Sainsbury, Development Services Director; Karl Hirst, Recreation Director; Chris Tschirki, Public Works Director; Donna Weaver, City Recorder; and Rachelle Conner, Deputy City Recorder
PLEDGE OF ALLEGIANCE Larry Ballard
INVOCATION /
INSPIRATIONAL THOUGHT Trent Bowen
APPROVAL OF MINUTES
City Council Meeting of August 14, 2012
Mr. Seastrand moved to approve the minutes of the August 14, 2012, meeting of the Orem City Council. Mrs. Black seconded the motion. Those voting aye: Mr. Andersen, Mrs. Black, Mr. Evans, Mrs. McCandless, Mr. Seastrand, Mrs. Street, and Mr. Sumner. The motion passed unanimously.
MAYOR’S REPORT/ITEMS REFERRED BY COUNCIL
Upcoming Events
The Mayor referred the Council to the upcoming events listed in the agenda packet.
Upcoming Agenda Items
The Mayor referred the Council to the upcoming agenda items listed in the agenda packet.
Appointments to Boards and Commissions
Mayor Evans recommended Darla Baker be reappointed to serve on the Library Advisory Commission.
Mr. Seastrand moved to reappoint Darla Baker to serve as a member of the Library Advisory Commission. Mrs. McCandless seconded the motion. Those voting aye: Mr. Andersen, Mrs. Black, Mr. Evans, Mrs. McCandless, Mr. Seastrand, Mrs. Street, and Mr. Sumner. The motion passed unanimously.
Recognition of New Neighborhoods in Action Officers
Mrs. McCandless indicated Joyce Johnson is the Neighborhood Organizational Specialist. She has been involved with the City for many years, and she is retiring tomorrow. Mrs. McCandless thanked Mrs. Johnson for her many years of service.
The Councilmembers each took a turn to thank Mrs. Johnson for her service and to relay memories they had of her.
Mrs. McCandless moved to proclaim, August 29, 2012, as “Joyce Johnson Day” in recognition of her service to the City of Orem. Mrs. Street seconded the motion. Those voting aye: Mr. Andersen, Mrs. Black, Mr. Evans, Mrs. McCandless, Mr. Seastrand, Mrs. Street, and Mr. Sumner. The motion passed unanimously.
AWARD – Walter C. Orem
Mayor Evans read from a list of accomplishments and then presented Val Hale with the Walter C. Orem award.
Mr. Hale stated he has lived in Orem for forty-two years, and he loves everything about it. He expressed appreciation to the Mayor and Councilmembers for their service to the residents. Mr. Hale pledged his support to help Orem. He also voiced appreciation to his wife for her support.
REPORT – Metropolitan Water Board
Chris Tschirki, Public Works Director, introduced Jack Jones as the Metropolitan Water Board chair. Mr. Jones then recognized board members--Russ Brown, Vern Stratton, Rick Lewis, LaDell Gillman, Alex Lott, and Chris Tschirki.
Mr. Jones gave a brief history of the Metropolitan Water Board. He stated the City of Orem has enough water to support a full build out of the city. He thanked all of the Board members that have served the City of Orem diligently to make sure there is sufficient water for the City’s needs.
Mr. Tschirki stated the Board will be taking a tour in September, and they would like to invite the City Council to go on the tour with them. Mr. Tschirki then recognized Ruth Ann Ivie as the Board secretary and Neal Winterton and the Water Resources Division Manager. Mr. Tschirki said Orem’s forefathers had a lot of insight when looking at water issues for the city. He noted that in 1997, the District developed a water right impact fee. This was to help offset the costs to the residents and to have the impact fees pay for future water rights. This has helped plan for the future. He expressed appreciation to this Board and the previous Boards for their service to the City.
Mayor Evans added that Scera Park Elementary is celebrating its 50th Anniversary, and Mr. Gillman was a teacher there.
Mr. Andersen asked if any of the water Orem has is guaranteed as so many gallons, or if the city just gets a share of what is available.
Mr. Jones stated that they own water rights by shares in all of the irrigation companies. The City owns Alta Springs, Canyon Springs, and all of the nine wells. The only thing that can change that is if the State engineer starts to interfere with the water rights. The amount of water the City can have depends on what is available.
Mr. Gillman advised that sometime he would like to read a talk his father gave over the radio in 1939 promoting the City of Orem. He said it would give them a real insight into the changes that have taken place in the City of Orem since 1939.
Mayor Evans said they will get that scheduled. He said he would like to get a copy of that talk to display with the History of Orem.
CONSENT ITEMS
There were no consent items.
SCHEDULED ITEMS
6:00 P.M. PUBLIC HEARING
ORDINANCE - Amending Section 22-11-33 and Appendix O of the Orem City Code as They Pertain to the PD-21 Zone Located Generally at 1100 South Geneva Road
Stanford Sainsbury, Development Services Director, presented an applicant request that the City Council approve several amendments to the PD-21 zone located generally at 1100 South Geneva Road.
The PD-21 zone was created for the purpose of providing student housing and other high-density residential housing in a mixed-use village. With the Inter-model center being placed next door, the PD-21 zone has evolved into a transit oriented development (TOD) that caters to both UVU students and transit users. Over the years, ownership of the project has evolved from one owner of the entire zone to multiple owners. Although the development is separately owned, it is still the same integrated project with different emphasis being placed by the individual owners.
Flagship Luxury Apartments is proposed to be constructed primarily as married housing for both working couples and students and is identified at “Area 2” in Appendix O. For the proposal to be constructed as planned, several text amendments must be approved by the City. The proposed amendments are as follows:
22-11-33(P)(8)(a)
Parking for student housing units shall be provided at the rate of (0.65) parking spaces per occupancy unit.
The existing buildings were approved with a parking ratio of 0.7 stalls per occupancy unit. An occupancy unit is a bedroom of 110 square feet or less and for 1 occupant. A bedroom greater than 110 square feet can have 2 occupants. The proposed change in the parking requirement will not have an effect on the existing residential uses. The proposed change to the parking requirement from 0.7 to 0.65 reduces the number of required parking stalls by approximately 50 for the Flagship development. There is some validity to the case that the location of the UTA train station will reduce the need for parking stalls. Since housing in the PD-21 zone is no longer required to have a minimum percentage of student occupancy, those wishing to commute to work via the train may choose this location as a place to live.
22-11-33(P)(9)(b)
One (1) deciduous tree, at least two (2) inches in caliper measured at ground level, and one evergreen tree at least five (5) gallons in size is required for every three thousand (3,000) square feet or fraction thereof of landscaped area. Evergreen shrubs, at least five (5) gallons in size, are required at a ratio of one (1) each per dwelling unit. A licensed landscape architect is hereby given the discretion to substitute deciduous trees for evergreen trees based on soil condition and water table depth.
The applicant’s proposed landscape plan far exceeds the required number of trees and shrubs. They would like the flexibility to use more deciduous trees should the site conditions warrant such use.