CITY OF OREM
CITY COUNCIL MEETING
July 25, 2000
5:00 P.M. STUDY SESSION
CONDUCTING Mayor Jerry C. Washburn
ELECTED OFFICIALS Council members, Judy Bell, Les Campbell, Bill Peperone, and Mike Thompson
APPOINTED STAFF Jim Reams, John Park, Paul Johnson, Stanford Sainsbury, Richard Manning, Jeff Pedersen, Mike Larsen, and Donna Weaver
EXCUSED Council members Joseph C. Andersen and Stephen E. Sandstrom
The Council and staff reviewed the agenda items and adjourned at 5:55 p.m. to the City Council Chambers for the regular meeting.
6:00 P.M. REGULAR SESSION
CONDUCTING Mayor Jerry C. Washburn
ELECTED OFFICIALS Council members Judy Bell, Les Campbell, Bill Peperone, Stephen E. Sandstrom (joined the meeting electronically via telephone at 6:45 p.m.), and Mike Thompson
APPOINTED STAFF Jim Reams, Paul Johnson, Stanford Sainsbury, Richard Manning, Melody Downey, and Donna Weaver
EXCUSED Councilmember Joseph C. Andersen
Mayor Washburn indicated that the meeting would be held electronically to enable Mr. Sandstrom to participate.
PLEDGE OF ALLEGIANCE Councilmember Judy Bell
INVOCATION Councilmember Bill Peperone
APPROVAL OF MINUTES
City Council Meeting of July 11, 2000
Mrs. Bell moved to approve the July 11, 2000, minutes. Mr. Campbell seconded the motion. Those voting aye: Mrs. Bell, Mr. Campbell, Mr. Peperone, Mr. Thompson, and Mr. Washburn. The motion passed unanimously.
MAYORS REPORT/ITEMS REFERRED BY COUNCIL
Upcoming Events
City Council Minutes - July 25, 2000 (p.15)
The Mayor referred the Council to the upcoming events listed in the agenda packet.
Appointments to Boards and Commissions
Mayor Washburn proposed that Judd Hixon be appointed to the Youth City Council Advisory Commission.
Mr. Campbell moved to approve the Mayor’s proposal. Mr. Thompson seconded the motion. Those voting aye: Mrs. Bell, Mr. Campbell, Mr. Peperone, Mr. Thompson, and Mr. Washburn. The motion passed unanimously.
WALTER C. OREM AWARD - Max De St Jeor
Mayor Washburn, presenting the Walter C. Orem Award to Max De St Jeor, invited him to shake hands with the Council.
CITY MANAGERS APPOINTMENTS
The City Manager did not have any appointments.
PERSONAL APPEARANCES
Time was allotted for the public to express their ideas, concerns, and comments on items not on the agenda.
No one came forward to speak.
CONSENT ITEM
Mrs. Bell moved to approve the following Consent Item. Mr. Thompson seconded the motion. Those voting aye: Mrs. Bell, Mr. Campbell, Mr. Peperone, Mr. Thompson, and Mr. Washburn. The motion passed unanimously.
RESOLUTION – Create Citizens Ad-hoc Committee - Design, Raise Funds, and Build - Veterans Memorial - City Cemetery.
SCHEDULED ITEMS
6:15 P.M. PUBLIC HEARING
ORDINANCE - Partial Street Vacation Request - Portion of 1600 South - Immediately West of Hidden Hollow Drive - South Side of Street.
Mr. Manning reviewed with the Council a recommendation to vacate a portion of 1600 South on the west side of the street immediately south on the Hidden Hollow intersection. He noted that this item has come before the City Council on three separate occasions. On June 13, 2000, the City Council tabled this item until the applicant reapplied. A public hearing was scheduled during the June 22, 2000, special City Council meeting.
Mr. Manning reminded the Council that Tyler Burgoyne is in the process of building a house for Mr. John Wiscombe. The lot is located on Hidden Hollow Drive. The property extends almost up to the hilltop and is adjacent to the City's right-of-way for 1600 South. This home is being built on an odd-shaped lot. When the footings and foundation were staked, they were marked in the wrong location. With an insufficient required setback of twenty-five feet, work on the building began before the mistake was discovered.
The builder is now requesting that the subdivision boundaries be adjusted to fit the home as it is being constructed on the lot. To meet the required setbacks, the builder has asked the City to vacate a portion of 1600 South street right-of-way to Mr. Wiscombe. The requested parcel of ground in the City's name is unused street right-of-way located behind the present sidewalk. The City obtained the property through a street dedication. This means that as long as the City needs the property as street right-of-way it belongs to the City. If the City vacates the property through the proper public process, the property reverts to the original owner or successors in interest. The City obtained the property from Roland Strong as a street dedication recorded on April 9, 1999. Mr. Strong later quit claimed a portion of the property to Mr. Wiscombe to help Mr. Wiscombe resolve his setback problem. If the City vacates the property, it will go back to Mr. Strong, who will then quit claim the necessary property to Mr. Wiscombe.
Mr. Manning noted that the Council was concerned that vacating this property may prevent the City from widening 1600 South in the future. A previous council determined that 1600 South would not be extended to the west from its current location. The City does not hold title to any additional right-of-way along this area of 1600 South. If 1600 South were widened the additional property needed for the widening would come from the north side of the street.
Roland Strong provided the Council with a history of his property and said that he has done a lot of work on his place to make it look nice. The area being vacated is on a hill, but it can be landscaped. He said that he would like to help out as much as he can. He indicated that he told Mr. Burgoyne today that he would deed over all the property that is vacated at $.75 per square foot.
John Wiscombe said that it has been a very confusing situation trying to decide who actually owns this strip of property.
Mrs. Bell moved to postpone the public hearings to the normal flow of the meeting. Mr. Campbell seconded the motion. Those voting aye: Mrs. Bell, Mr. Campbell, Mr. Peperone, Mr. Thompson, and Mr. Washburn. The motion passed unanimously.
The Mayor opened the public hearing, but when no one came forward, he closed the public hearing.
Mr. Campbell remarked that issues like this can sometimes become ugly. He complimented Mr. Strong for his willingness to work this out with Mr. Wiscombe.
Mr. Peperone moved, by ordinance, to vacate a described portion of 1600 South on the west side of the street immediately south of the Hidden Hollow intersection.
Mayor Washburn proposed that the motion be amended to include a stipulation that the vacation is contingent on the signing of an agreement between Mr. Wiscombe and Mr. Strong. Mr. Peperone accepted the amendment.
Mrs. Bell seconded the motion with the amendment. Those voting aye: Mrs. Bell, Mr. Campbell, Mr. Peperone, Mr. Thompson, and Mr. Washburn. The motion passed unanimously.
The Council took a break at 6:40 p.m. and reconvened at 6:45 p.m.
Mr. Sandstrom joined the meeting at 6:45 p.m. via telephone.
6:15 P.M. PUBLIC HEARING
RESOLUTION - Amend the Fiscal Year 2000-01 Budget to (1) Approve a Loan from the Water Fund to the Capital Improvements Project Fund (CIP Fund) to Complete Funding for the Construction of Lakeside Park Sports Complex, (2)Approve Transfers from the CIP Fund to the Debt Service Fund and (3)Amend the City’s Fees and Charges - Plan Review Fees.
Mr. Pedersen presented to the Council a recommendation to:
1. Approve a loan of $1,350,000 from the Water Fund to the CIP Fund for the construction of the Lakeside Park Sports Complex.
2. Amend the Budget for Fiscal Year 2000-01:
a. To appropriate reserves in the Water Fund and transfer the loan amount to the CIP Fund.
b. To approve a transfer from the CIP Fund to the Debt Service Fund for payments on two Lakeside Park trust deed notes.
3. Amend the Fiscal Year 2000-01 Fees and Charges for plan review fees.
He indicated that the proposed amendments to Fiscal Year 2000-01 Budget include:
Lakeside Park Sports Complex Construction
The current Fiscal Year 2000-01 Budget includes $1,049,301.61 for the construction of the sports complex at 400 South Vineyard Road. It was determined that a long-term loan of $1,350,000 from the Water Fund is needed to complete Phase I of the construction of the sports facility in time for competition in spring of 2001.
Park Property Land Purchase Debt Service
When the park property was acquired in June 2000, the City assumed the long-term obligation for the repayment of two Trust Deed Notes. The debt-service requirements for the current fiscal year total $93,638.70. This amount needs to be transferred from the Capital Improvements Fund to the Debt Service Fund.
Changes to the Schedule of Fees and Charges for Fiscal Year 2000-01:
Utah State Senate Bill No. 110 that passed in July 1999 required a justification of plan-review fees which the City can charge for such service. City staff has completed its review and proposes certain changes to the fee structure.
The Mayor opened the public hearing, but when no one came forward to speak, he closed the public hearing.
Mrs. Bell stated that this decision has been a long time coming. The sports complex is something that has to be done for Orem’s growth and to accommodate parking at the City Center, which has been a problem. She said the Council promised that the other ball field at the City Center would not be removed until this sports complex was built.
Commenting that this project is something Mr. Sandstrom campaigned for in the last election, Mr. Campbell moved, by resolution, to:
1. Approve a loan of $1,350,000 from the Water Fund to the CIP Fund for the construction of the Lakeside Park Sports Complex.
2. Amend the Budget for Fiscal Year 2000-01:
a. To appropriate reserves in the Water Fund and transfer the loan amount to the CIP Fund.
b. To approve a transfer from the CIP Fund to the Debt Service Fund for payments on two Lakeside Park trust deed notes.
3. Amend the Fiscal Year 2000-01 Fees and Charges for plan review fees.
Mr. Sandstrom seconded the motion. Those voting aye: Mrs. Bell, Mr. Campbell, Mr. Peperone, Mr. Sandstrom, Mr. Thompson, and Mr. Washburn. The motion passed unanimously.
6:30 P.M. PUBLIC HEARING
RESOLUTION – (1) Increase the Franchise Tax and the Municipal Energy Sales and Use Tax Rates, (2)Amend the Fiscal Year 2000-01 Budget, and (3)Approve Transactions with the Municipal Building Authority of the City of Orem (MBA) and the Special Service Lighting District of the City of Orem (SSLD) in Connection with the Construction of the Citywide Street Lighting Project.
Mr. Pedersen reviewed with the Council a recommendation to:
1. Increase the Franchise Tax rate from 5.36 to 6 percent, and amend the Budget for Fiscal Year 200001 to contribute the additional $370,000 of Franchise Tax revenues to the SSLD for personnel, operations, and maintenance of the lighting system.
2. Transfer the collateral value of the Public Safety Building for $5,500,000 to the MBA and transfer these funds to the Capital Improvements Project Fund (CIP Fund) for construction of a portion of the lighting system.
3. Receive $215,000 in lease payment on the lighting system from the SSLD and use these funds to make lease payments to the MBA for the Public Safety Building and a portion of the lighting system constructed and owned by the MBA.
He reviewed the following proposed amendments to Fiscal Year 2000-01 Budget:
Franchise Tax
The Franchise Tax rate be increased from 5.36 to 6 percent, which is the State maximum, to provide an additional $370,000 in Franchise Tax revenues. These additional revenues will then be contributed to the SSLD for personnel, operations, and maintenance of the lighting district. It is intended that this increase in the Franchise Tax rate of .64 percent be dedicated annually to the SSLD for such expenses.
Collateral Value of the Public Safety Building
According to the Public Safety Building Reimbursement Resolution, R-99-0014, dated February 23, 1999, the City may receive reimbursement for expenditures on the Public Safety Building of up to $5,500,000. In order to provide funding for the citywide street lighting project and to minimize the costs of providing the funding for this project, the City Manager recommends that the City transfer the collateral value of the Public Safety Building for $5,500,000 to the MBA as security for a portion of the bonds to be issued by that organization. These funds will then be transferred to the CIP Fund to construct a portion of the street lighting system.
Lease Payments from the SSLD and to the MBA
The MBA and the City will each construct a portion of the street lighting system. The City will lease the MBA’s portion and, in turn, sublease this portion to the SSLD. The City’s portion of the lighting district will also be leased to the SSLD. For the Fiscal Year 2000-01, the lease (sublease) payment from the SSLD will be approximately $215,000. These funds will be paid to the MBA for the lease on the Public Safety Building and a portion of the street lighting system constructed by the MBA. The MBA will use these funds for debt service on the bonds, which the MBA intends to issue to provide funding for the citywide street lighting system.
Because of a temporary power failure, Mr. Sandstrom’s telephone connection was broken at 7:53p.m.
The Mayor opened the public hearing.
Dan Pulver remarked that he is already paying for streetlights on a has rental property that is in a lighting district. He wondered if he would have to pay for this additional property tax as well.