City Council Meeting June 21, 2016

Public Comment
Tom Cantrell - Thanked the Council for allowing Scout troop to attend and be part of the meeting. Gave Council a card thanking officials for service. Thankful the boy scouts have the opportunity to see how city government works.

Consent Agenda
The minutes from the May 3, 2016 and May 17, 2016 Council meetings were approved. James Dayrymple was appointed to the Arts Committee.

City Reports
CM Rees - Family Festival was a success once again. Carnival company is already scheduled for next year.

David Bunker - TSSD meeting was cancelled. Golf clinics started today. 10 golf tournaments have already been booked this month. We have 4-5 events at Community Center each week. Summer lacrosse going well. Rec programs available on website. Working with LPPSD on policy and procedures update.

Mayor Gygi - MAG transportation committee is looking at transportation funding. Options include doing nothing, trying again for a Prop 1, having Legislature discuss a bill that is specific to Utah County, or look at utility fees for road needs. SL County will join discussions.

CM Geddes - Utah Valley Dispatch met this month. New building is moving along and should be ready by October.

CM Crawley - North Pointe did not meet this month. Encourages water conservation.

Review/Action on Conditional Use Permit for Walmart Outdoor Storage and Sales
Public Comment
Dievo Hagan - Speaking on behalf of Charelle Hagan. Has concerns about what Walmart has done regarding outdoor sales. Need to follow guidelines that were setup when approval for Walmart was granted. Council at the time had restrictions about outdoor storage and sales. It was never the intention of the Council to allow for this. Wanted a nicer looking Walmart than others in the area. What is allowed to happen at Walmart will set a precedence. Please do not allow this to happen in commercial zone.

Walmart entered into a development agreement that prohibited the outdoor staging and sale of goods. The Development Agreement states: "9.4 Outdoor Storage: The developer agrees that except for the areas designated in the Approval Documents, or in subsequent and separate outdoor sales area conditional use permits, there will be no storage allowed temporarily or permanently outside of the Wal-Mart Facility." Walmart has staged flowers, pavers, fertilizer, mulch and other spring garden supplies on the outside of their store. They are proposing to continue to stage these goods through July, and are seeking a Conditional Use Permit allowing them to continue to store these goods for the duration of a year.

Walmart is proposing outdoor storage from May-September for the following:

• Soils, mulch, garden products
• Propane, grills, smokers
• Garden pavers, boarders
• Floral on pallets
• Floral
• Grills, pools, swing sets

Walmart has not requested a conditional use permit before this date, though they have been storing items outside, which is not allowed by their agreement. My argument has been that we should allow for flowers to be in the front, but that all other temporary outdoor storage and sales should be limited to the garden center and the south side of Walmart. The original agreement said nothing should be done outside so this is a concession. I believe the Council that approved this project spent a significant amount of time researching options, meeting with residents, and created a development agreement that met the desire of the community in having a nice looking commercial zone that was different from what other cities have allowed. I would approve allowing flowers in the front of the store but restricting all other outdoor storage and sales to the south side of the building in the garden center. 

CM Crawley said he appreciates Walmart. Wants to maintain look. Likes having flowers in front but keeping other outdoor items to the south side, but doesn't want anything in the parking areas. Does not want swimming pools and such in front.

CM Bailey said Walmart is largest retail in the country. Take feedback from shoppers and only bring in items that people will buy. They aren't bringing in stuff residents don't want. Feedback he is getting is that residents like that our Walmart is offering more items and they don't have to go to other stores to get the items they want. Feels if we limit them on where they can store then our residents will have to go to other stores to get it, which reduces revenue to the city. Likes the way it is setup. 

CM Geddes said Walmart is a great neighbor and has done a great job. Just because something was approved in 2007 doesn't mean it has to stay that way. Uses evolve and Walmart evolves to provide what residents want. Doesn't want a reputation of not being business friendly. If it's done in a tasteful way then should be allowed. Leary of reacting when only one or two people are complaining. As long as it's safe, clean, and neat, then he's fine with 

CM Zappala said in development agreement in 9.2.2, Walmart and the City Council agreed that City Council should be able to set parameters with regards to Conditional Uses. Agrees that we should limit storage and sales to south side. Items should be in the garden center. 

Representatives from Walmart presented. Josh is the Asst Manager for Walmart in Cedar Hills. Was told by the community that they wanted more items such as pavers, so they didn't have to go to Home Depot. Items are selling very well. Listened to what people want and every customer has said they have loved what Walmart is now offering. Flowers are better quality than Highland Nursery. Residents feel they can go to one location to get what they need. Want to serve community and don't want residents to have to go to AF to get what they want. Said they cannot offer what they do if they can't sell in parking lot and front of store. They keep everything safe and clean. 

My recommendation is they move flowers/trees to the front of the store in able to allow for more room on the south side for things such as the pavers, soil, etc. The whole intent of the development agreement, and our design guidelines is to keep a certain look and feel for our entire commercial area. If we change things now, we must allow all stores in the zone to store and sell items outside their store and defeats the purpose of the guidelines and development agreements. We've kept strict standards for Harts, for Walmart, for the Amsource property, and we should continue to adhere to those standards.

CM Crawley suggested that they can move some of the items that are less popular to the southwest side. 

CM Bailey said that this could impact our sales tax revenue. CM Zappala said that the way sales tax is calculated, there wouldn't be a big impact.

CM Geddes said that we aren't retailers and should get out of the way and let the store setup the way they want.

Motion was made to allow for living plants and flowers in zone 10 and 11 (front of store), all other outdoor items will be limited to zones 5, 6, 8, 9 (south side of store) and must be kept clean at all times. Motion was approved 5-0.

Review/Action on Golf Course Driving Range Fence
The City Council has discussed the driving range fence for the last few years and it has been recommended to be up for discussion once again. The City Council advised staff to go back to our vendors because we did not want to add additional poles to clutter the area up. Staff went back to our vendors and they were gracious enough to work out the following with us: We are able to replace all existing 30’ poles with (11) new 50’ pole that will span the entire length of the driving range to get everything done once and for all. Our netting vendor will also replace ALL the old netting and hardware on the areas that are currently 30’ high. So when the project is done the entire driving range fence will be 50’ high. The cost for this will be the following:

• Niels Fugal will install (11) new 50’ poles for $16,525 and West Coast Netting will replace all the netting/hardware for $21,300. 
• Niels Fugal will trade out $15,000 for a 2 year corporate pass, so the out of pocket total will only be $22,825 after the trade out. 

This is only approximately $1,800 more than the last bid which didn’t include doing the entire thing PLUS we are adding 4 additional poles. We are currently on their schedule to have installation begin the last week of September, we have to work with their tight schedule and this time of year they are very busy. This was approved 5-0.

Review/Action on Golf Cart Lease Agreement
We have issues with our golf carts dying on customers on the course; it has become so severe that we have had to change out the batteries on our entire fleet of golf carts to assure that our clientele would be able to make it at least 18 holes without getting stranded. The City cannot afford to lose tournaments in the future as a result of these issues. Staff has been keeping the records to the lease and presented them to RMT who has been working with EZ Go to get the warranty work done. EZ Go denied the warranty claim. Wade has been working with RMT, our leasing agent, and they agreed with him that the best thing to do would be to switch out all batteries. RMT will cover the cost of this even though EZ Go denied it. In return they have asked that we extend our lease for 1 year to help them offset their losses in sending us 320 new batteries. In addition RMT will give the city a $4,000 allowance for new tires next year. In the end our golf carts are still in great shape and by getting new batteries we basically have like new golf carts for the next 1 ½ years until we will go out to bid again for the next lease. RMT has been great to work with and we appreciate our relationship with them. We are having carts consistently run out of battery power each day on the course on our clients. The cost to extend the golf cart lease would be $6,200 per month plus taxes. Total cost would remain at approximately $78,500. The cost for us to replace the batteries would be $80,000.

Issues started about a month ago. Our golf course has a unique terrain, which causes more wear on batteries. Our discharge unit wasn't functioning correctly, which is why we didn't catch the issues sooner. We now have a new discharge unit to prevent this from happening. We are also now testing daily instead of weekly.

Legal counsel will review warranty to determine if we should push for the leasing company to cover costs. This extension was approved 5-0.

Review/Action on Fund Transfers to Cover Water and Sewer Charges for FY 2017
The Utah State Auditor provided guidance in an Auditor Alert May 8, 2014 for enterprise fund transfers, reimbursements, loans, and services relating to Utah Code 10-6-135. The auditor alert requires governmental entities to charge governmental funds for any services provided by enterprise funds. The City is also required to hold a public notice because it reimburses the governmental funds for new water and sewer charges incurred.

Budgeted enterprise fund transfers from the Water & Sewer fund offset estimated charges to the General fund of $8,500 and $31,000 Golf fund for water & sewer used during each fiscal year 2016-2017. This was approved 5-0.

Review/Action Certifying Tax Rate for FY 2017
Statutes require that each year a certified property tax rate be calculated. The certified property tax rate is the rate which will provide the same amount of property tax revenue as was charged in the previous year excluding the revenue generated by new growth. Tax rates went down the last few years, which offset the rising property values.

New property growth from new residential/commercial activity was calculated by Utah County as a $10,589 increase for the next fiscal year.

The County Auditor’s certified tax rate for 2016 is .002186 and the total levy amount is $1,005,624: General Operations: .001512 ($695,654) Interest and Sinking Fund/Bond: .000674 ($309,970)

Residential property tax is calculated based on 55% of the value of the home. This means a home with an assessed market value of $250,000 has a taxable value of $137,500, and $300.58 is due November 30th related to the city in property taxes.

The County Auditor’s certified tax rate for 2015 was .002315: General Operations: .001594 ($685,065) Interest and Sinking Fund/Bond: .000721 ($309,970)

The County Auditor’s certified tax rate for 2014 was .002410. The County Auditor’s certified tax rate for 2013 was .002873.

Staff was asked to look at impact if we reduced the tax rate to collect less than the previous year. $100,000 decrease/increase to property taxes impacts the rate by 0.000217. Decreasing/increasing the property tax rate changes the city’s allocation of motor vehicle fees, which are based on each government entity’s property levy amount. Last year the city received $107,754 in motor vehicles, which amounts to approximately 10% of property taxes levied. Lowering the overall property tax rate to .001900 or $131,546 causes the motor vehicle fee revenue projections to lower by approximately $13,000.

My concern with cutting the tax rate this much is that I don't want to get into a situation that PG or AF is in where we've cut our revenues to the point that we can't take care of the infrastructure needs that we may need now or in the future. Our expenses go up each year but our property tax revenue stays consistent each year. I appreciate that our city sets aside money in the Capital Projects Fund each year to take care of our wants and needs as they come up instead of kicking the can down the road. We do a good job keeping our infrastructure in good shape so that we don't have issues like other cities have had. Reducing the tax rate means we'd have to cut some things from the budget, whether that be recreation programs or delaying improvements.

Certified tax rate provided by the County was approved 5-0.

Review/Action Adopting FY 2017 Budget
Budgeting challenges:

• Development of commercial zone and the related impact on service costs and revenues 
• Pending litigation costs 
• Tight job market—causing a lack of applicants 
• Higher turnover rate requiring additional time to complete projects due to learning curve and availability of staff 
• Potentially higher costs for contracted services
• Installation costs of additional park and recreational areas 
• Ongoing maintenance contract of parks 
• Dying trees around parks and trails 
• Random water issues caused by pressurized irrigation systems running at maximum flow 
• Aging water lines breaking 
• Septic tanks potentially failing 
• Sewer lines needing additional capacity 
• Partners in public safety struggling with balancing budgets and put pressure on cities to pick up costs 
• Limited availability of lots for residential growth in the city 
• Solar panels impact on franchise fee revenues
• New growth for property taxes will be dependent on rate increases or limited new residential and nonresidential growth 
• Approximately 75% of sales tax revenues collected for Cedar Hills is population based and the city is close to build out 
• 65.7% of franchise tax revenues come from Rocky Mountain power, which will gradually decline as solar panel installations continue to decrease or eliminate what businesses and residents pay

GFOA Best Budgeting Practices

• Assess community needs, priorities, challenges, and opportunities 
• Adopt financial policies 
• Balanced budget—operating revenues equal to operating expenditures for all operating funds 
• All funds use fund balance for one-time expenditures and also as a rainy day fund 
• General fund unrestricted fund balance of at least 16.7% or 2 months of operating revenues 
• Equipment Replacement Plan 
• Capital Improvement Plan
• Building maintenance properly funded 
• Bowen, Collins Utility Rate plan designed with long-term pay as you go perspective 
• Debt service coverage for bonds is in compliance 
• Utilize grants strategically aligned with budget 
• Develop a budget consistent with vision and policies

2016-2017 Priorities with Significant Funding Requirements 

• Bayhill park 
• Golf maintenance building 
• Practice range fencing improvements 
• Heritage park improvements 
• Public works fencing 
• Reduce City’s Debt 
• Unfunded Priorities 
• Cedar Hills Drive roundabout 
• Sidewalks on Canyon Road

Revenue Budget Changes Compared to Last Year In All Funds—at least $10K 

• Certified property tax increased $10,589 
• Sales tax revenue increased $48,000 
• Telecom tax decrease $15,000 
• Building permits $10,000 
• Miscellaneous inspection fees $20,000 
• Class C Roads increased $25,000
• Family Festival income increased $10,000 
• Recreation programs increased $20,000 
• Event Center rentals increased $50,000 
• Pro shop revenue increased $10,000 
• Water fees increased $36,475 
• Storm drain fees increased $18,028 
• Sewer fees increased $57,039

Revenue Budget Updates from Tentative Budget Based on Trending 

• 10-31-100 Certified property tax rate amount $5,654 higher due to new residential/nonresidential growth 
• 10-31-500 Telecom tax decreased $5,000 
• 10-32-200 Building permits increased $10,000 due to solar activity 
• 10-32-210 Plan check fees increased $5,000 due to solar activity 
• 10-32-260 Miscellaneous inspection fees increased $20,000 related to Amsource and Lakeshore developments 
• The following revenues are from programs growth: 
• 10-35-100 Family Festival Income increased $10,000
• 10-35-110 Recreation programs increased $10,000 
• 10-35-111 Recreation & cultural classes increased $1,000 
• 10-35-112 Event center rentals increased $35,000 
• 10-35-120 Event center concessions decreased $9,360 
• 10-35-130 Park reservations increased $500 
• 10-36-100 Interest income increased $6,000 due to higher fed rate and Moreton asset management

Street Maintenance plan 

• Public works has been preparing streets to receive HA5 and other Holbrook asphalt overlay road treatments this summer. HA5 is a high density mineral bond surface treatment that extends asphalt life, and has a nice look. Ideally it is applied 2-3 years after a road has been paved to get the maximum benefit. 
• Cedar Hills drive, Box Elder Drive, the Cedars J-2 and J-3 subdivisions and the Meadows subdivision are on schedule to receive maintenance. 
• Bayhill drive, and Cottonwood drive are under evaluation, and may have some maintenance performed in fiscal year 2017-2018.

Expenditure Budget Updates $10K or Greater Based on Trending 

• 10-60-215 Contract labor increase $15,000 for solar building permits and plan check fees 
• 10-61-150 Employee benefits increase $11,259 for moving from single to family health plans for public works related employees 
• 10-61-310 Engineering services increase $20,000, which offsets the continued miscellaneous inspection fees for Amsource and Lakeshore developments 
• 10-65-120 Salary & wages (PT) increase $21,203 and 10-65-150 Employee benefits increase $1,712 offset revenue growth of $35,000 in events and recreation 
• 10-65-600 Family Festival celebration increase $10,000 to offset project increases in revenue 
• 10-69-910 Transfer to Capital Projects fund increase $14,000, due to improved revenues vs. expenditures 
• 10-69-913 Transfer to Golf fund decrease $21,500, because improving revenue trends, healthy fund balance, which allows one-time capital purchases instead of motor pool charges

Expenditure Budget Updates Based on Trending 

• Move to electronic formats instead of paper products has helped reduce the following accounts: 
• 10-40-200 Materials & supplies decrease $1,000 
• 10-44-200 Materials & supplies decrease $1,200 
• 10-50-200 Materials & supplies decrease $200 
• 10-60-200 Materials & supplies decrease $200 
• 10-61-200 Materials & supplies decrease $120 
• Other potential decreases from improved contracts include the following accounts: 
• 10-40-260 Office equipment decrease $1,300 
• 10-40-330 Professional/technical decrease $3,000 
• 10-40-975 Bad debt decrease $3,000

*At this point in the meeting I needed to leave as I had been sick all night. The rest of the notes below come directly from the Council packet with an update on the vote.

Review/Action on Adopting FY 2016 Budget Amendments
Based on the current trends 10-31-300 Sales & use tax revenues are estimated to be $100,000 higher, and 10-31-500 Telecom Taxes are estimated at $13,000 lower. The Sales & use taxes original revenue budget was based on a three-year average, because this revenue stream is very susceptible to decreases during downturns in the economy with our city’s population growth stagnant.

Budgets for 10-32-200 Building permits increased $45,000, 10-32-210 Plan check fees increased $30,000 and 10-60-215 Contract labor increased $25,000 related to the surge in solar installations. When state solar incentives expire in December 2016, the related building activity is expected to slow down.

10-35-100 Family Festival income increased $12,000 from ticket sales and donations. 10-65-600 Family Festival related expenses increased $9,000.

The following recreation and event budgeted revenues 10-35-110 Recreation programs increased $30,000, and 10-35-112 Event center rentals increased $60,000. 10-65-120 Salary & Wages (PT) increased $15,000 due to increased staffing needs. 10-35-120 Event center concessions decreased $10,000 due to contracted concessionaires having mixed results.

10-64-240 Park maintenance increase is $25,000 to make most of the park sprinkler systems more efficient to turn on and off during rainy weather.

10-69-910 Transfers out to Capital Projects fund is increased $400,000 and 40-30-801 Transfers in from General fund are increased $400,000 due to a strong economy, solar incentives, program improvements, public works staffing turnover, and slower legal activity than anticipated. These funds would be used to help fund projects and maintenance in the capital improvements plan.

$15,000 in combined golf trades with Chase Media and Valpak are recognized in 20-30-600 Season passes and 20-70-600 Advertising budgets.

$2,000 in 20-30-800 Other income and 20-50-100 Golf supplies is adjusted to recognize range balls sponsored by Pepsi as part of their concession contract with the city.

This was approved 4-0.

Review/Action on Amending Fee Schedule
Modifications are proposed to the City Fee Schedule in order to implement recommendations from the utility rate study as prepared by Bowen Collins & Associates and adopted by City Council in 2012. The fee schedule has also been updated to include non-residential impact fee rates, as adopted. Here is the updated fee schedule:

This was approved 4-0.

Review/Action Adopting Storm Water Management Plan
As part of the newly updated Uniform Pollutant Discharge Elimination System (UPDES) Phase II permit (March 1, 2016) enforced by the EPA through primacy of the State of Utah, the City is required to adopt an updated Storm Water Management Program. The program must address specific activities relating to six minimum control measures and the associated Best Management Practices (BMP’s) for storm water management and control.

Staff has spent several months preparing the updated Storm Water Management Program. A majority of the original program will remain in effect from the initial adoption of the 2004 Program and updated program in 2010. Some additional commitments are detailed in the new program as required by the permit. It is important to note the additional time requirements, for staff, including training and program administration. New development, design methods (LID) represents the most significant change.

This was approved 3-1.

Review/Action on E-Cigarettes, Park Curfew, and Noise in Parks
Parks are closed from 11:00 PM to 5:00 AM, this is the same as American Fork City (See AF Municipal Code 9.12.01). Noise regulations limit amplified sound from Labor Day to Memorial Day after 8:30 (9:30 on Friday and Saturday). And from Memorial Day to Labor Day after 9:30 (10:30 on Friday and Saturday). People can still be in the park after the amplified sound time limits, but not after 11:00 PM, see code 6-8-6. Elsewhere in the City, noise ordinance prohibits certain activities after 10:00 PM when adjacent to a residential zone (5-2-2). Currently, when a resident reserves a park, they are given a sheet of park rules and regulations.

Currently, the posted park rules prohibit the use of tobacco products in a city park. The proposed ordinance would place language in the Cedar Hills City Code prohibiting the use of tobacco product, including cigarettes, cigars, electronic cigarettes, chewing tobacco, and vaping products.

This item was tabled until the next Council meeting.

Review/Action on Placing Question on 2016 Ballot Regarding CARE Tax
In 2008, voters in the City of Cedar Hills considered and approved via general ballot opinion question, a local sales and use tax of 0.1% of particular transactions to fund cultural facilities and organizations, recreational facilities and programs, zoological facilities and organizations or botanical organizations.

Per Utah State Code Title 59, Chapter 12, Part 14, the tax may be reauthorized at the end of the eight-year period in accordance with said code, by submitting an opinion question to the residents of the city regarding the possible imposition of a city wide CARE Tax.

The city’s intent is to include this opinion question on the Utah County 2016 general election ballot for the residents of the city to consider. The proposed resolution is the next step in the process to advance the proposed opinion question to the ballot.

This was approved 4-0.

City Council Meeting - May 17, 2016

Discussion on Interlocal Agreement Between Utah County and the Cities of PG and Cedar Hills
County has come to the cities with a proposed agreement on taking care of Canyon Road. County is willing to spend approximately $9 million on fixing issues with Canyon Road, provide ongoing striping services, and ongoing pavement maintenance such as surface treatment. If fixes exceed the $9 million, the cities would have to cover the additional cost. Cities would be responsible for snow removal, perform pothole repair, removal of debris, provide law enforcement and some additional items. At the end of 20 years this agreement would terminate and the cities would be required to take ownership of the road. Cedar Hills and PG will have to agree on how to spend the $9 million. David (city manager) will be meeting with the city manager from PG to discuss further. Council was given the agreement tonight and will need to review over the next month and bring concerns to the next meeting in June. One of the concerns that CM Zappala brings up is that 20 years from now when the road is turned over to the cities, it will be in need of significant improvements that the cities will then be on the hook to pay for. He also wants to see a list of all county roads and their maintenance schedules to make sure that this road is being given the same considerations as other county roads.

Public Comment
Nobody signed up.

Consent Agenda
Minutes from the April 5, 2016, April 19, 2016, and May 3, 2016 City Council Meetings. CM requested that the minutes from the last meeting contain more information that was provided by the ULCT Director during his presentation. Feels the minutes were not adequate. Minutes from April 5th and 19th were approved, May 3rd will be tabled for next meeting.

Waste Management Report on Municipal Solid Waste and Recycling Totals
Beth Holbrook with Waste Mgmt presented. Thanked Council for continued partnership. Recycling activity is rising in Cedar Hills. Residents recycled 293 tons of aluminum, cardboard, paper, scrap metals, and plastics. 43% of that was mixed paper. Recycling tends to peak in the summer. Amount of recycling in Cedar Hills equates to enough electricity to power 69 homes for a year, conserved 3,144 trees, conserved 1,825,390 gallons of water, 1,060 cubic yards of landfill airspace, and avoided 1,041 metric tons of greenhouse gas emissions. Waste Management does ship recyclables across the country and even to other countries. Working with the city to provide additional education on recycling. Will be attending the Family Festival and sharing information and will provide classroom resources for teachers. Additional information on recycling can be found at recycleoftenrecycleright.com.

City Reports
David Bunker - TSSD will meet this week. Golf Course has been affected by rain. Junior golf clinics will be in June and several tournaments are booked for June. Soccer has started. Tball starts at the end of the month. Lacrosse registration just closed.

CM Zappala - LPPSD met. There will be a small increase to the budget. Highland would like to see the budget remain steady, but it's hard to make that kind of promise as there are many factors that affect the budget. The board is discussing this.

Mayor Gygi - LPPSD continues to discuss method on how cities are charged for public safety services.

CM Rees - Parks and Trails Committee had our annual Service Day last Saturday. We planted flowers at the roundabout and added rock to the Cedar Hills sign on Canyon Road. Family Festival starts on May 31st and events are scheduled Tuesday-Saturday.

CM Bailey - Thanked CM Zappala and Mayor Gygi for representing the needs of Cedar Hills at the LPPSD meetings.

Review/Action on Changes to Conditional Use Permits
Staff has prepared conditional use code to be adopted as part of Title 10, the City’s Land Use Code. The proposed code outlines an approval process for granting a CUP, as well as the standards upon which a CUP may be granted. Based on City Council input, staff has included a table in the proposed code, outlining the CUP approval authority in each case and when a public hearing is required. Minor administrative things can be approved by staff. Other projects must go to the Planning Commission and/or the City Council. The changes with the new table were approved.

Discussion on Amendments to Code Related to Appeals Authority
Representatives from Kirton McConkie presented information and a proposal to amend City Code Title 9, chapter 1 related to Appeal Authority. Germaine to the discussion is the requirement by State Code, Title 10, Chapter 9, that municipalities provide for an administrative appeal authority which has not first acted as the land use authority. The appeal authority may consist of one or more appeal authorities (individual, multi person board, body or panel), and may consist of laymen and/or land use professionals. Subsequent a duty to exhaust administrative remedy via appeal to the appeal authority, any adversely affected person may appeal to the district court.

One area our attorneys identified that needs to be addressed is adding language that states the City Council is the land use authority unless otherwise delegated to another board or individual. Another thing that needs to be changed is the ability for an application to appeal fees that are charged under Section 10-9a-510 of LUDMA.

Discussion on Amending City Records Access and Management Program
The City of Cedar Hills last updated the city ordinance regarding the city records access management program in 1995. By state statute, UCA 63G-2-701, the city is required to comply with the Governmental Records Access Management Act (GRAMA). Numerous changes have been made to the records management program at the state level. Several of the alterations and several of the sections of the State management program do not apply to municipalities. These would include courts, school districts, special service districts, counties, state departments, etc. Under the state code, a city may adopt an ordinance in compliance with Chapter 63G, which establishes criteria and policies related to GRAMA. Once a municipality adopts an ordinance or policy, a copy shall be sent to the state archives with a summary description.

Staff also removed items that we don't have in our city, such as records for the police department or a library. There are some areas where our staff is recommending a different retention schedule than the State has. City Recorder (Colleen Mulvey) is asking for the City Council to review the new policy and provide feedback. Once it is completed, it must be adopted by ordinance and sent to State Archives. The new policy is being reviewed by legal counsel.

Discussion on Open Fires and Fireworks
For the past several years, the city has monitored fire conditions and followed the recommendations of the Lone Peak Fire Department regarding regulations of fireworks and open fires. Staff invited Chief Freeman to update the city council on conditions of the hillside interface and fire sensitive areas. Chief Freeman and David Bunker recommend having a resolution of some sort giving the minimum restriction standard that would stay in place for every year and then just discuss more strict requirements each year as needed depending on weather. Proposes no aerial fireworks east of Canyon Road, open fires are okay as long as they have screen coverings. David Bunker will work on this resolution with the fire chief and bring it back to the next Council meeting.

City Council Meeting - May 3, 2016

Public Comment
Nobody signed up.

City Reports
David Bunker - Met with company that handles mass communications in emergency situations. County would like all cities in the County to be on the same platform. We are looking at moving over to Everbridge, which is the platform that the vast majorities of the cities in the County use. They also have an app that can be used by residents to submit public works concerns to the city, such as a street light that is out.

Utah Senate passed Resolution this legislative session that encourages all cities to begin metering all water, including secondary water. It was signed by the Governor in February. This may be the first step in the eventual requirement to meter PI water.

Recreation programs are doing well. Small decrease in teen soccer. Right now residents can sign up for t-ball and a youth computer programming class. Utah Jazz issued an award to the City for having so many participants in the Junior Jazz program.

To date, 22 residents have come this year to receive their annual free round of golf. We hope to see many more use their free pass.

CM Zappala - Has been working on revising zoning ordinances. Planning Commission met and had good discussion on the revisions. Has heard from residents who are unhappy that Walmart is storing merchandise outside as they need a conditional use permit to do so and have not obtained one. Staff continues to try to get in touch with the management team at Walmart but have been unable to reach anyone.

CM Bailey - Open burn season goes through end of the month. Must get a burn permit, which is free.

Mayor Gygi - Finance committee met and Charl will discuss during budget discussion. LPPSD board met and adopted a preliminary budget. In two weeks they will meet again as Highland wants to discuss changing how the cities are charged for fire and EMS services.

CM Rees - Family Festival is in three weeks and we still need several volunteers. Parks and Trails Committee is having their annual service day on Saturday, May 14th at 9:00am and will be working on the roundabout on Cedar Hills Drive as well as some other project throughout the city. We are looking for several volunteers for this as well.

Review/Action on Amendments to General Plan
For this item, as well as the next two items, CM Zappala put together a great blog post explaining the process and what we are trying to accomplish. You can find that information here.

Changes to the City’s Land Use Element are being proposed that would update the document from its original form. Changes include updating the established zones within the City, removing density thresholds in residential areas under the definitions, and other smaller typographical changes. The vision and goals that were established by the original document remain largely intact. Additionally, the Planning Commission recommends removing the Economic Element, as the goals and vision are found elsewhere, and the Economic Element is not a required element. This was approved 5-0.

Review/Action on Amendments to City Code Related to Planned Commercial Development
Council and staff have prepared an amendment to 10-6A that would incorporate the previous “Design Guidelines” into the Municipal Code.

Change requested to add language to 10-6A-3 that City Council is the final approving authority on conditional uses in that zone. CM Zappala will also fix the map to not include any current residential homes, that was done in error. This was approved 5-0.

Review/Action on Amendments to City Code Related to Conditional Use Permits
Staff has prepared conditional use code to be adopted as part of Title 10, the City’s Land Use Code. The proposed code outlines an approval process for granting a CUP, as well as the standards upon which a CUP may be granted. The biggest change being recommended by staff is to make the Planning Commission the land use authority for the city and not have requests for new conditional uses go to the City Council, which is the current process. The other change is to allow staff to be the land use authority for conditional use permit requests for existing structures where there are no external changes to the site.

My concern is the change to remove the Council from giving the final approval on a conditional use. If that had been the arrangement up until this time, the Blu Line project would be in process as it was approved by the Planning Commission. Members of the Planning Commission spend a lot of time researching land use code and making decisions based upon the code and their service is greatly needed and valued. I think the benefit of having the Council have the final say is that members of the Council are elected and accountable to voters and residents of the city. I like the current process that allows residents, through their elected officials, to have a voice in what is approved in the city, especially for the commercial area. Like the Planning Commission, the Council must make decisions based on city and state code; however, there have been times when members of the Council have had a different perspective on the intent and definitions in code. I prefer the current arrangement where there is discussion, feedback, and a vote from both bodies. We did change the general plan wording in the previous ordinance above to specifically state that the City Council gives final approval to developments in the SC-1 zone. CM Zappala recommended we create a table that lists types of conditional uses needed and list who is the approving authority for each, whether that is staff, Planning Commission, or City Council. This item was tabled for next meeting.

Review/Action to Adopt Tentative FY 2017 Budget
The City is also required to approve a tentative budget for 2016-2017 by the first Council Meeting in May based on Utah Code 10-6-135. The final budget will be approved in June.

Budget changes since March:

• Eliminated communications position to fund driving range fence
• Reduced fire contract increase to $7,000 based on LPPSD proposal
• Increased transfer to Capital Projects Fund to $20,000
• Added budget item for driving range fence to $35,000
• Adjusted dental benefit as costs are lower than expected
• Added $500,000 as a place holder for sewer line upgrades. Some of the existing lines are 20+ years old and will struggle with capacity. 

Projects Pending Pricing (won't know final costs until we ask for bids)

• Bayhill Park estimated at $446,000
• Maintenance Building Budgeted $300,000
• Arbor study
• Sewer study and related sewer improvements
• Secondary water meters
• Driving range fencing
• Fencing for public works building budgeted $25,000
• Heritage Park amphitheater improvements budgeted $50,000

This was approved 5-0.

Review/Action on Resolution Notifying County on City's Intent to Submit to Voters Question Regarding Imposition of CARE Tax
In 2008, voters in the City of Cedar Hills considered and approved via general ballot opinion question, a local sales and use tax of 0.1% of particular transactions to fund cultural facilities and organizations, recreational facilities and programs, zoological facilities and organizations or botanical organizations. Per Utah State Code Title 59, Chapter 12, Part 14, the tax may be reauthorized at the end of the eight-year period in accordance with said code, by submitting an opinion question to the residents of the city regarding the possible imposition of a city wide CARE tax. The city’s intent is to include this opinion question on the Utah County 2016 general election ballot for the residents of the city to consider. The proposed resolution is the first step in the process to advance the proposed opinion question to the ballot. This was approved 5-0 and will be on the 2016 ballot.

Discussion on City's Participating with Utah League of Cities and Towns
The City has been a participating member of the ULCT for over 30 years. The ULCT represents municipal government interests with a strong unified voice at the state and federal levels. They provide information, training and technical assistance to local officials on municipal issues in order to create greater public awareness and understanding of municipal responsibilities, governance and administration.

CM Crawley asked for this to be on the agenda as he has some concerns with ULCT. Feels training is beneficial, but was concerned that ULCT promoted the gas tax. A speaker at the ULCT meeting said that because of ULCT the gas tax was passed. It also appeared to him that ULCT was trying to influence voters to approve Prop 1. Feels residents he represents want to keep taxes low, and that we are paying a lobbying group that works to raise taxes. Says this is what is wrong with politics, that desire of residents should be listened to. Concerned that ULCT receives corporate sponsors. Feels they lobby for things that don't reflect the desires of those in Cedar Hills. Doesn't feel Cedar Hills is represented by ULCT. Would prefer that the $5000 we spend on membership go towards one of our city committees, which better benefits the city.

Ken Bullock with ULCT presented. Said he appreciates the sacrifices made by council members in the service to their communities. Thanked Mayor Gygi for serving on the ULCT Board and raising issues that are important to Cedar Hills. Feels accountable to every city. Clarified a few points raised by CM Crawley. On trainings, they work hard to make sure trainings are applicable to all cities in the State. Enthusiasm expressed for gas tax was because it has been 17 years since gas tax was raised and expenses for inflation haven't been accounted for. Cities were spending more than they were collecting in B&C road funds. This gave cities needed money for roads. Feels this was a significant accomplishment for communities. It isn't fun to raise taxes, but it does cost money to provide services. Most throughout the State understood it was time to make changes in order to continue to provide these services. Funds raised have to go to roads, can't be used to supplement the General Fund. On Prop 1, Mr. Bullock stated there has not been a more formidable opponent of what UTA has done in the past than him. Current chair of UTA is working on changing course and fixing issues. Mr. Bullock met with him to discuss having Prop 1 taxes go directly to cities and let cities decide how it is spent, but that wasn't what was approved. UTA is changing policies and working on better transparency. ULCT was not a proponent of UTA getting any money. They did ask for cities to pass resolutions expressing approval of Prop 1, but that was the extent of their involvement. Intent of ULCT is to provide city officials with materials to educate residents, but each official can do with it what they like. Some counties passed it, others didn't, but public funds weren't spent to advocate for Prop 1.

CM Crawley asked if ULCT contributes to any campaigns. Mr. Bullock said no. CM Crawley asked about a few of their budget line items, which Mr. Bullock provided explanations for. CM Crawley asked about their standards and principals and where he can find them. Mr. Bullock said their mission statement and values are on their website. Everyone who works for ULCT is dedicated to working for cities. CM Crawley said he feels ULCT is an extension of bad government. Mr. Bullock explained that there are laws discussed and passed at the State and Federal level that have an impact on municipalities. ULCT works to advocate for municipalities and educate elected officials on the proposed laws and the impact it may have on cities. Municipal services cost money and are paid for with taxes. If cities don't want to raise taxes to pay for increase costs of services, they have to determine how/if they will continue to provide them. ULCT also helps cities with land use planning as the population is expected to grow by quite a bit in Utah and cities need to plan for this. Also need to look at water and infrastructure planning. With population growth, cities will also need to look at justice system growth and issues. Transportation issues aren't going away and will continue to discuss how to fund. With Utah becoming known as a tech area, these types of planning discussions need to occur.

CM Zappala asked about membership. Almost every city in the State is a member. Board is selected through a nomination process. Must have representation from all areas of the State, including towns. It is a two year appointment. CM Zappala said there is no way every person on the Board is in favor of raising taxes and big government. There are differing points of view on the Board. Mr. Bullock said one big challenge is that elected officials have a lot on their plates and keeping them informed is a struggle. ULCT often asks for feedback. CM Zappala asked if they have ever received a donation from UTA, Mr. Bullock said no.

My thoughts - I feel we receive a benefit from participating with ULCT. I have taken advantage of numerous trainings every year. I like that we have access to professionals on things like municipal law and land use through ULCT. Whenever I've reached out to ULCT with questions or concerns, they have responded promptly and provided guidance related to city issues. I'm sure it is challenging for a group that represents almost every city in Utah to make every city happy, but we do have the ability to participate in direction ULCT goes by participating on the Legislative Policy Committee. Right now we only have one participant (Mayor Gygi), but we could add some staff and council members to that committee, which would give Cedar Hills more of a voice. I offered to participate in that.

City Council Meeting - April 19, 2016

Work Session
Discussion on water issues for the upcoming year. Questions staff looks at is if we will have enough water, flooding, mudslides, etc. Snow pack as of today is 63%, which is less than average. Timpanogos divide is at 85%. Staff doesn't feel there will be significant runoff this year. Feels runoff will all be consumed. Water will decrease as summer goes on. Flooding and landslide potential is low. Things may change if we get a lot of rain in April, but aren't anticipating this will be the case. PI containers will need to be augmented with culinary water, like every year. Both wells are up and running. Cottonwood Well was energized last week. Water conservation measures are in place, including restrictions. City will be working with Wilkinson's (our park maintenance company) to make sure that the city is also conserving water. Jeff Maag and David Bunker are working to put together a cost analysis of gradually converting some of the city park strips to xeriscaping with drip systems in order to better conserve water.

There was a water leak on Cedar Hills Drive after a pipe broke. AFPD noticed water coming up and contacted public works. Public works began working on the line at 3AM. One section of pipe had a lateral crack from end to end, so it needed to be replaced. The pipe in that area of the city is C200 pipe, and we use C900 pipe now, which handles more pressure. The C200 isn't made any more so staff used what was currently available but will need to make some additional fixes soon to make sure that C900 connection to the existing C200 doesn't have any issues.

Jeff Maag has updated the Storm Water Fact Sheet Statement of Basis as required by the EPA. EPA is now requiring that any new developments no longer build large retention basins; instead they will require smaller retention basins. This won't impact us too much as Cedar Hills is mostly built out. Identified our major pollutant is sediment (salt from snow, and dust) and we now have to implement in our plan how to reduce nitrogen and phosphorus pollutants. This will include resident education, public involvement, illicit discharge detection, and control of construction site run-off. City is now required to insure that contractors comply with regulations, not just monitor. EPA has hired a large number of inspectors. All Utah jurisdictions are being audited and fines are being applied. SL County just had a million dollar penalty, which they negotiated down to $250,000 and agreed to hire 6 storm maintenance employees for monitoring. Public Works Director has been told that we should expect to be audited as well. Our liability includes the golf course maintenance building, but Jeff feels we are in fairly good shape compared to other jurisdictions.

Council Meeting
Public Comment
Jason Harr - Thanks the Council for attention and time spent on researching driving range fence. Feels that raising the nets is a good thing for the community to keep the public safe.

Resolution Recognizing Officer Diego Garcia as a Cedar Hills Champion
As part of the Cedar Hills Champions Program, the city is recognizing American Fork Police Officer Diego O. Garcia for his service to the communities of Cedar Hills and American Fork. Officer Garcia is also being recognized for his heroic efforts in saving the life of a woman who had been reported missing and suicidal. Officer Garcia has been awarded, “Officer of the Year,” (medium-sized agency) at the recent Utah Chiefs of Police Association’s annual conference in St. George. The Utah Chiefs of Police Association only selects six officers each year to receive this prestigious award.

Here is the press release issued by the city:

CEDAR HILLS – For the past several years, Cedar Hills has been pleased to have a partnership with the American Fork Police Department. At their next meeting, the City Council will recognize Officer Diego Garcia for his service to the communities of Cedar Hills and American Fork, and for his heroic efforts in saving the life of a woman who had been reported missing and suicidal.

Officer Garcia was dispatched to the home of a family who reported the woman missing. The woman had left a suicide note on the bathroom mirror but no indication of where she had gone. Officer Garcia began driving through the city searching for her with nothing more than a description of her car and her license plate number. He found her car at a hotel and was able to get in the room where he found her on the bed, unconscious and with cut wrists. He was able to call for an ambulance and assist in getting her to a hospital. The woman survived and is receiving the help she needs.

“We appreciate the service and commitment of Officer Garcia,” stated Mayor Gary Gygi. “He went above and beyond in doing his best to find this woman and help her family. We are honored to have an outstanding relationship with the American Fork Police Department and consider them one of the best in the state.”

The recognition ceremony will take place during the April 19, 2016 City Council meeting at 7:00pm at the Cedar Hills Community Recreation Center located at 10640 N. Clubhouse Drive. At that meeting the Council will declare April 20, 2016 as Officer Diego Garcia day in Cedar Hills.

Consent Agenda
Minutes from the March 1, 2016 and March 15, 2016 City Council meetings were approved.

City Reports
David Bunker - Spring clean-up is happening now. There are large dumpsters throughout the city for residents to use. Sewer laterals will be stubbed in for three lots on 4000 West for PG homes boundary adjusting into Cedar Hills.

Chandler Goodwin - Resident in Cedar Hills has installed a deck but a permit wasn't obtained and the deck is in a slope failure zone. Decks of this type are not allowed in the slope failure zone because of type of hazard that exists in the event of an earthquake. City has given the resident a number of options in order to comply, but have not heard back from the resident. If nothing is done the city will need to file a notice of intent on the home to make notification that the deck does not comply with code. Options include building a concrete haunch so the deck is supported by the homes foundation instead of its own foundation. Can also do a cement pad instead of a deck. CM Geddes feels the deck won't be any more dangerous than the patio and feels the city might be taking too hard of a stance in this case, but will defer to building official.

CM Zappala - Has been working on revising city code. Waiting for a second round of legal review and for CM Zappala to implement a few more lines regarding colonial structures and outdoor storage restrictions. Chandler is working on revision for conditional use permit process. Mr. Shaw is working on revision for Board of Adjustment and Appeals process. Some changes to the General Plan need to take place to harmonize with the new Design Guidelines.Public Hearings for these changes have been noticed. Any changes need to be given to CM Zappala soon.

CM Rees - Met with CM Zappala to discuss communications. We put together a list of things we'd like to accomplish, especially if the Council decides not to hire a part-time communications person. Handed out a list to the Council for consideration and feedback. Council expressed approval. Family Festival Committee is doing well. We are looking for many volunteers still.

CM Bailey - Expressed appreciation to city staff for hard work on Sunday repairing pipe.

CM Geddes - Utah Valley Dispatch met, new building is going well. Budget is slightly higher than last year and our portion will need to be added to our budget.

Review/Action on Driving Range Fence
See previous notes as we've discussed as a Council. Chandler Goodwin presented. First option to raise 5 poles and nets is approximately $28,000 and to raise all nets is $48,000. Some of this could be paid with trades of two corporate passes, which is valued at $15,000. Funds would come from unrestricted fund balance. Currently we are budgeted to use unrestricted funds for the golf maintenance facility and for Bayhill Park. We don't have bids for either as of yet. Architectural rendering for maintenance building has been sent to Highland for review as it is in their boundaries. Unrestricted fund balance is currently $613,501. Mayor Gygi feels we should try some of the other recommendations first, such as installing a camera or targets on the driving range. CM Zappala said that only resolves the issue if people are purposely trying to go over the fence, but most people aren't intentionally going over. Golfers also can't see where the ball is going so they don't realize it has gone over the fence. I agree with CM Zappala. Cameras only work if we have so many cameras installed that we could identify the golfer, the ball they hit, and the damage it caused. It makes sense to me to raise the nets to mitigate the risk of damage or injury as much as possible. The following comes from an email I sent to the Council to be read at the last meeting that I was unable to attend:

In addition to the concerns Mr. Bottita and Mr. Harr have brought forward regarding damage to their homes and vehicles, a greater concern is that we have heard of residents who are walking/driving on Cottonwood or playing at Mesquite Park. One resident who is a photographer recently posted to Facebook that he was near the range while taking pictures of the mountains and a golf ball was within a foot of hitting him. A soccer club president has emailed indicating that their coaches have brought to their board concerns about the number of balls ending up in the field during soccer practice. I worry that one day someone will be seriously hurt from a golf ball coming over the fence. While raising the nets will most likely not eliminate all golf balls from coming over, I believe it will significantly reduce the number, especially if we focus of the portions of the net where the majority of balls are coming over.

As the city owns and operates the golf course, I feel it is the proper role of the city government to do what we can to protect the property and personal safety of those who are impacted by the business we choose to run. Just as we have required businesses in our community to install certain improvements as a condition to be in our community, and as a way to protect the property and atmosphere of those who live near those developments, we should also be willing to install improvement that will protect the property, the people, and the atmosphere of those who live near the golf course.

My recommendation for funding - we have allocated $20,000 for a part-time communications person. If CM Zappala and I are going to handle communications, we won't need to hire this new person. If we spent $35,000 to raise 7 sections, were given $15,000 in trades, we could use the $20,000 from communications to cover the remaining balance.

CM Geddes spent time at the driving range hitting some balls and hit one over the fence. He agreed that if the nets were higher his ball wouldn't have gone over. Agrees it makes sense to raise some of the sections.

CM Bailey said that fire department has never been called on an issue related to a golf ball and feels there are more pressing issues. Wants staff to make recommendation. He doesn't think raising the fence will do the trick. Says we need to hire someone to research options and tell us what the best option is.

CM Geddes moved that we approve up to $35,000 to add fencing up to the intersection of Mesquite and Cottonwood Drive with the trade and funding I suggested above. If trade is not available, then it needs to come back to the Council for further discussion. This was approved 5-0.

Discussion on Zoning Ordinance Changes
Council will read through updated documents and give any feedback to CM Zappala.

City Council Meeting - March 15, 2016

Public Comment
Joe Phelon - Discussed sign ordinance. Requests approval to place temporary signs in public areas to let residents know where and when caucus meetings will be held. Shouldn't be viewed as political if it is open to all political parties. Signs would be removed day after caucus. This is allowed by city code and will be allowed.

City Reports
CM Rees - Members of the Parks and Trails Committee have met with someone in the city who is interested in redoing the roundabout on Cedar Hills Drive as part of an Eagle Scout project. Staff has expressed some concerns with the project because of the number of utility lines going through the roundabout and the issues that surround making significant changes. We will discuss in our meeting this week and I will report back to the Council. Family Festival Committee continues to work on Family Festival.

David Bunker - ULCT semi-annual training in St. George is the first week of April. Rec department will be adding pickleball and a soccer tournament to the Family Festival. Easter Egg hunt is coming up. Golf course is open. Emergency Mgmt meeting was a huge success with over 300 attendees.

Mayor Gygi - Finance Committee met and items discussed will be discussed during budget session in Council meeting. LPPSD met and is dealing with employment issues.

CM Geddes - Utah Valley Dispatch met but he was unable to attend. No big issues discussed.

Consent Agenda
Minutes from the February 16, 2016 City Council meeting were approved.

Discussion on FY 2017 Water & Sewer Fund and Excise Tax Debt Service Fund
Bowen, Collins, and Assoc (BCA) was asked to look at how the city could finance PI meters if the city decided to go in that direction. BCA looked at several options and provided the city with four alternatives. The following comes directly from the BCA report:

Alternative One - No PI Meters
Our understanding is that the City has not made any final decisions with regards to installing PI meters in the City. For comparison purposes, the option to maintain the PI system without metering secondary use is included in this analysis.

Alternative Two - Install PI Meters Immediately, Pay with 5-year Bond
The City could reasonably plan for the design and installation of PI meters City-wide within the next calendar year and finance the project with a 5-year bond. This alternative uses a preliminary 5-year 
amortization schedule provided to the City by Lewis Young Robertson & Burningham (LYRB). Debt service payments would begin in either fiscal year ending (FYE) 2016 or 2017 and last for 5 years.

Alternative Three - Install PI Meters Immediately, Pay with 10-year Bond
The City could also potentially finance the project with a 10-year bond. This alternative uses a preliminary 10-year amortization schedule provided to the City by LYRB. Debt service payments would begin in either fiscal year ending (FYE) 2016 or 2017 and last for 10 years.

Alternative Four - Install PI Meters in Future, Pay with Cash Reserves
The final alternative would not require the City to take on any more debt, but would delay the timeline of the project substantially. Because current revenues from pressurized irrigation rates exceed the costs of paying for the PI system (including O&M, existing debt service, and other capital improvements), the City could deposit the excess revenues into reserves and pay cash for the $1.5 million metering project at some point in the future. While estimates will vary somewhat based on water needs, other capital improvements, growth (or lack thereof) within the City, and the current balance of cash on hand, BC&A has determined that this alternative would push the implementation of the PI metering project into the future approximately 10 years1 (FYE 2025) using the updated PI rate model.

The financing for options 1 and 2 would look like this:

BCA believes that installing PI meters would result in a savings in capital improvements and O&M. Again from their report:

Aside from smaller miscellaneous PI projects that would be required, the City anticipates the need for repair and replacement of several irrigation pumps over the planning window. Due to the additional wear and tear on the PI system from overconsumption, it has been assumed that approximately $300,000 of capital improvements would be required approximately every 5 years, beginning in FYE 2019 if meters are delayed or not installed. If PI meters are installed, capital costs for irrigation pump replacement will decrease substantially. It has been assumed that once PI meters are installed, approximately $150,000 (one half of $300,000) of capital improvements would be required approximately every 10 years, also beginning in FYE 2019.

There are also likely to be significant O&M savings that must be considered in the case that PI meters are installed. BC&A has estimated that approximately $70,000 in utility costs can be saved per year once PI meters are installed, due to decreased pumping demand in the system3. Over the estimated 20-year life cycle of the PI meters, these annual savings will total approximately $1.4 million.

Considering only the costs discussed in this memorandum, the net costs of each alternative are as follows:

• Alternative 1 - $1.2 million
• Alternative 2 – $581,340
• Alternative 3 – $705,425
• Alternative 4 - $1.6 million

In the short term, Alternatives 1 and 4 have less of an impact on the City’s cash flow into and out of the water fund. As expected, implementing PI meters immediately (Alternatives 2 and 3) will have an impact on the City’s short term cash flow, but due to O&M savings over time, have a net cost lower than the other alternatives.4 From a financial perspective, Alternative 2 is the most attractive option over the long term, and by about FYE 2030 is the least expensive option.

The entire BCA memo from January 2016 can be found on my Council blog here.

Questions I would like staff to research:

• The State has indicated they may mandate water metering and recognize they would need to help pay for this. I'd like to hear from ULCT as to what they think is happening with this. Mayor Gygi said he has talked with some legislators and ULCT and the Governor's office seems anxious to move forward but legislators are non-committal. 
• Some residents have expressed they feel that we would not see a reduction in usage now that residents receive an electronic statement and can auto pay. Some feel that people will just let the bill pay process be automatic and not reduce usage as they aren't paying attention to changes in monthly bills. I'd like to know what other cities who have implemented PI metering are seeing as far as reduction and if they handle utility bills the same way we do.
• I would like to see the study done by BCA where they determined savings realized by other cities to determine if we are doing an apples to apples comparison. I recognize this may be something we have to do, but it's going to be an unpopular decision and I want to be confident that anything we do is going to fix the issue we are trying to fix. I know many residents are frustrated feeling that the city bonded for PI system with the understanding residents could use as much PI water as they wanted at a flat rate. We now realize this isn't feasible; however, we need to make sure any new projects have a high probability of realizing the savings we are expecting.

Highlights for the Water & Sewer Fund for FY 2017:

• $711,032 wages and benefits
• $534,038 Timpanogos Special Service District (Sewer Charges)
• $399,000 principal payments on debt service
• Extra principal payment of $22,000 on 2009 Utility Revenue Bonds
• $225,512 interest and trustee payments on debt service
• 2006 Utility Revenue Bonds refunded with issuance of 2014 Utility Revenue Bonds for a $402,777.04 net present value benefit
• $294,037 Rocky Mountain Power electrical costs
• $202,349 water purchases—Central Utah Water Conservancy District, Pleasant Grove Irrigation Company, American Fork
• $78,856 excise tax bonds debt service allocation (Public Works building)
• $68,376 motor pool charges
• $68,103 storm drain maintenance
• $66,075 professional services for well rehab, utility rate study, and financial software
• $59,140 meter installation and maintenance--Bridgestone

Here is a helpful utility rate comparison with other nearby cities:

One of the reasons our rates are higher than most is because other cities collect much more in impact fees than we do, especially now that we are almost built out, so we are accruing for future O&M needs that won't be paid for with impact fees. Here is a comparison of impact fees collected:

In the 2012 study, gradual rate increases were proposed by BCA from 2013-2018 to cover estimated operating & maintenance costs for rehabilitation or replacement of system components, plus capital improvements, and debt service (pay as you go philosophy):

• Culinary water rates increase 6.4% a year
• Pressurized irrigation (PI) rates remain flat
• Sewer rates increase 5.5% a year
• Storm drain rates increase 6.5% a year
• Total utility increase 3.7%-4.3%

BCA Recommendations:

• Recommended storm rate increases decline from 6.5% to 6.0% 2022-2025
• Recommended sewer rate increases stays at 5.5% through 2025
• Recommended pressurized irrigation rate stays flat through 2025
• Recommended water rate update depends on alternative chosen to deal with water consumption
• Alternative 1—Status quo, no secondary meters and no additional wells
• Water fee increases 6.4% annually through 2025
• Alternative 2—New secondary meters $1.5 million w/five-year bonds at 2%
• $900,000 used from unrestricted net position and $600,000 from bonds
• Water fee increase the same until year 5, then 8.0% decrease
• Costs city approximately $230,000 less than alternative 3 annually
• 33% less demand
• $70,000 in power savings per year
• $45,000 in pump and equipment cost savings per year
• Alternative 3—Additional well and updates to pumps, pipelines $3.5 million
• Water fee increase additional 8.0% first year, and 5.8 % second year, 6.4% each year after that
• Timing Changes
• Old Town retention project moved from FYE 2016 to FYE 2020 $400,000, PG irrigation may change timing and scope
• Canyon road sewer moved from FYE 2014 to FYE 2021 $400,000
• 4000 West sewer moved from FYE 2016 to FYE 2020 $250,000
• 4600 West sewer moved from FYE 2018 to FYE 2020 $400,000*
• *Projects may be adjusted based on timing of road projects
• Migratory meter read project to continue through FYE 2017
• Other projects
• Harvey well chlorination station FYE 2020 $80,000
• Cottonwood well chlorination station FYE 2020 $60,000
• Cedar Hills drive sewer upgrade FYE 2020 $400,000
• Sewer outfall line extension FYE 2021 $500,000**
• **Following the SECAP study, sewer projects timing will be refined
• Additional capital improvements from 2012 study
• New Jet/Vacuum truck for FYE 2018 $300,000
• Storm drain improvements for golf maintenance building for FYE 2016 $100,000
• Irrigation pumps at Pond 10 and 12 will be adjusted, if necessary
• Harvey well replacement FYE 2025

Finance Director is requesting that we separate debt service from capital projects fund. Here are details on the reasons for this, per GASB:

• Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds.
• Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds.
• Excise Tax Debt Service Fund
• Move debt service related to Public Works building from the capital projects fund to a debt service fund for budget purposes
• Combine debt service fund with general fund for financial reporting purposes

Staff also provided information on creating a special fund to cover expected litigation costs:

• Alternative for budgeting volatile transactions like litigation and tort claims, which may allow the general fund to have more consistent legal expenses year to year
• Governmental Immunity Special Revenue Fund
• Create a risk insurance fund that funds and tracks litigation and tort claims
• Maximum tax levy rate allowed is .0001 or $42,982 in the current fiscal year
• May require truth-in-taxation, if combined aggregate rate exceeds certified tax rate
• Budget as a special revenue fund to manage and combine with general fund for reporting purposes
• Only increase property taxes if significant litigation expenditures are expected the next fiscal year, and/or current year litigation drains general fund reserves
• Amount allowed for tax under Tort Liability/Governmental Immunity 63G-7-704(2)(c) is 050 0.000100, which for us is equal to $42,982.

Questions I have for research:

• This year the State Legislature made some changes to cities bonding for judgments against cities. I'd like to know how this affects us if we do lose in any litigation and the pros and cons of going in this direction instead of creating this new fund. David Shaw is going to provide the Council with further information on this new law.

Discussion on Changes to Zoning Ordinance and Design Guidelines
We had a joint meeting with three members of the Planning Commission tonight. CM Zappala gave a brief overview of changes that were made to Design Guidelines. Has tried to remove duplicate language also found in city code. Language in introduction and vision are mostly unchanged from original document. Districts have been better identified. Zone for Walmart was updated to Neighborhood Retail as it is a high-intensity use. Use table has been completely updated and is based on use tables from other cities, especially PG and Provo. Still needing feedback from legal on changes that have been made to allowed uses. Residential uses now have very specific guidelines for density and location (ex: only allowed on second floor). Planning Commission a lot of valuable feedback and these suggestions/changes will be incorporated in to the document.

City Council Meeting - March 1, 2016

Work Session

Sent project to MAG for a traffic signal at the intersection of Cedar Hills Drive and Canyon Road. The Technical Advisory Committee (TAC) with MAG rates all the projects they receive requests for to determine which ones they will fund. This is an annual process and the funding varies each year based on what they receive from the federal government. This year MAG had about $40 million to allocate but approximately $200 million worth of projects were submitted for their review. Their emphasis is on regional projects and areas that are safety issues. Our project received a score of 68 out of 105, which puts it as a Tier 2 level as defined by MAG. It is unlikely that our project will be funded by MAG as the Tier 1 projects will consume their available funds for the year. David Bunker will continue to work with the County on Canyon Road improvement requests. We sent a letter to the County in partnership with Pleasant Grove suggesting some improvements with the two cities being willing to take on some maintenance, but so far, we have not heard back from the County on whether or not they are going to do any upgrades now that they own the road. CM Zappala suggested we also discuss with the County placing a sign redirecting large trucks to North County Blvd instead of Canyon Road in order to make it more safe and help the road last longer. David will discuss with the County.

Current property tax rate is .002315. Mayor asked for a review of revenue if the tax rate was dropped to .0019. The certified tax rate keeps revenues consistent year after year, even though expenses rise with inflation. Fire expenses have increased from $178,015 in 2006 to $675,000 expected in 2016. Police services increased from $276,943 to $406,368 in the same 10 years. We do get a great deal on our public safety services. Saratoga Springs pays $2.8 million/year just for police and they have a population of approximately 23,000. Their fire budget is around $400,000. Expenses have also increased for programs such as Family Festival, recreation, park expenses. Projects in the Capital Projects Fund rely on unrestricted fund balances year after year. Staff feels reducing the tax rate this significantly would require the city to stop offering some services, would negatively affect future planned projects, and would delay maintenance projects. This could put us in a similar position other cities are facing, such as Highland and PG, with roads not being maintained and services being cut.

Council Meeting

Public Comment
Ken Cromar - Has received a lot of abuse and has not received an apology. Cedar Hills Chat Room Facebook page shows that bearing of false witness is a problem. People don't understand what happened at Golf Course meeting, which was a hostile environment and he's never received an apology. Wants to know if Mayor has anything to say to correct the record or to apologize to him. Adds his voice to Curt Crosby and Sam Bushman in asking for the Mayor's resignation. Says he is unfit to be Mayor.

City Reports
David Bunker - TSSD met last month. Main topic was replacement of several of high speed blowers that change out air at sewer plant. Blowers that were purchased with plant expansion are having multiple issues and need to be replaced. March 8th is the annual emergency preparedness meeting. Notifications have been sent out through flyers, emails, and social media. The meeting will be at 7pm. Golf Course is now open. Jr Jazz went well. Adding a summer Minecraft Video Game Design class, which is being organized by Code to the Future. Advertising for this will start going out soon.

CM Zappala - LPPSD met and changed the structure of the executive committee, which changes operations on day-to-day basis. Cedar Hills will oversee fire budget, Alpine will oversee policy budget, and Highland will oversee operations overall. Working on better operational manual. Has been working on revising General Guidelines and we will be discussing later in the meeting. Changes have been made based on feedback by interested parties.

CM Rees - Parks & Trails Committee met and discussed plans for the year. Day of service is to work on roundabout on Cedar Hills Drive, and this will be held on May 14th. They will be removing some of the existing vegetation, raising the center, and planting new plants and flowers.

Mayor Gygi - Addressed what Mr. Cromar said. Last Council meeting we changed the ordinance regarding recording meetings, which benefited Mr. Cromar. If Mr. Cromar feels an apology is needed then they should meet together and determine what apologizes need to be made on both sides. Mr. Cromar challenged him to a debate on Sam Bushman's radio.

CM Geddes - Utah Valley Dispatch did not meet this month but he went to look at progress of the building.

CM Bailey - Arts Committee hasn't yet met and may be struggling.

CM Crawley - Read statement stating he feels the city was wrong limiting Mr. Cromar's ability to record meetings. Feels the city was wrong to create the original ordinance and was wrong to stop the meeting to discuss having Mr. Cromar removed. Says we have an obligation to stand up and defend the Constitution. He has seen Mr. Cromar harrassed for exercising his freedom. He apologized to Mr. Cromar and said his vote would be for the city to do so. He is going to do better standing up and defending the Constitution.

Mayor clarified that the original ordinance was created because meetings used to be held in a small room in the public safety issue and there were some issues with placement of cameras and safety for residents needing to exit the room. Now that we meet in a larger room the ordinance was unnecessary and the change was made.

Review/Action on 2016 Budget Amendments

• General Fund: 10-40-305 Legal Services increasing $100,000 for contracted services and $2,500 for ETJ Law (former attorney). This will be paid with unrestricted funds from the General Fund.
• Water & Sewer Fund: 51-16500 Water Improvements-Motor replacement for Cottonwood well requires up to $50,000 with the use of equity. The current motor is not working and needs to be rebuilt. New motor would be about $8000 more and wouldn't be ready for eight weeks. The rebuild will take 8-10 weeks, which means this well won't be available as a backup for the PI system. Hopefully this won't be an issue as demand isn't as high earlier in the summer and we anticipate higher runoff from the snow this year. CM Crawley suggested we keep a replacement motor always available. Staff indicated that the motor is quite large, so we don't have space to store it and don't have the ability to move it as it requires a crane. Motor is about 3 feet in diameter and about 5.5 feet tall. 

This was approved.

Discussion on FY 2017 General Fund, Golf Fund, and Golf Debt Service Fund
Items in updated budget include list of priorities from Council retreat in January.

Residents will need to vote this fall on whether or not to extend the CARE tax, which goes to arts and recreation. This is an added 1/10 of 1% on sales tax items. Things that have received CARE tax funds in our city include:

• FY 2011-2012 Heritage Park Basketball Court
• $36,245 Project—CARE tax allocation $24,938
• FY 2012-2014 Community Center Basement
• $385,917 Project—CARE tax allocation $122,840
• FY 2013-2014 Mesquite Soccer Park Bathroom
• $76,856 Project—CARE tax allocation $41,175
• FY 2015-2017 Art’s Committee Events
• CARE tax budget allocation $6,000 per year
• FY 2015-2017 Bayhill Park
• $464,224 Estimated project—CARE tax allocation estimated $80,621
• FY 2016-2017 Heritage Park Improvements
• $50,000 Estimated project—CARE tax allocation estimated $37,000

General Fund - Significant Changes

• Certified property tax new growth estimated $5,000-$20,000
• Motor vehicle tax increase estimated $5,000
• Sales tax revenues three-year average increase estimated $48,000
• Telecom general revenues estimated decrease $10,000
• Class C Roads restricted revenue estimated increase $25,000
• Garbage and recycling estimated increase $8,000 (based on usage, not fee increases)
• Processing, printing & postage fees increase $5,000
• Recreation programs increase $10,000
• Event center rentals increase $15,000
• Overall General fund revenues increase $110,935 or 2.85%

Wages and Benefit Changes

• Permanent employees proposed 3% merit increase $22,000
• Market analysis adjustment, potentially needed
• Health insurance premiums estimated increase 10%-12%
• PEHP dental insurance premium estimated 5%-10% increase
• Elected Officials’ alternative for life insurance $30 stipend option
• No change in rates proposed by the Utah Retirement System
• $9,000 set aside for health & dental benefit changes

Preliminary Street Maintenance Plan

• Public works is looking to use HA5 overlay road treatments this spring. It is a high density mineral bond surface treatment that extends asphalt life, and has a nice look. Ideally it is applied 2-3 years after a road has been paved to get the maximum benefit.
• The Cedars J-2 and J-3 subdivisions and the Meadows subdivision are on next year’s schedule to receive maintenance.
• Bayhill drive, Cedar Hills drive, Cottonwood drive, and Box Elder drive are under evaluation, and may have some maintenance performed in the next fiscal year.

Parks Expenditures

• Park maintenance and committee increase $10,225
• $2,370 Wilkinson park maintenance contract increase for existing parks
• $2,630 partial year maintenance costs for Bayhill Park
• $1,000 Cedar Hills drive roundabout landscape design
• $4,000 one-time decorative rock and electrical projects
• $2,000 Christmas lighting
• $1,200 service day
• $800 community breakfast
• $600 Santa night
• $500 beautification award
• $125 light up Cedar Hills

* Requested a bid from Wilkinson's to handle maintenance of flower beds in front of Community Center. Right now this is done by golf staff, but Parks & Trails Committee expressed concern that it was overlooked if golf staff was busy with course. They felt the flower beds should look nice as the entry the our Community Center. Staff will find out what the cost would be and report back to Council.

Other Expenditures

• Public works tech assistant full-time 40 hours a week $43,700
• $13,100 allocated to General Fund
• P/T communications specialist at 25 hours a week $20,000
• $10,000 allocated to General Fund
• Legal services $20,000 increase
• Fixed retainer fee $5,800 per month or $69,600 annually
• Fire projected increase $13,500
• Street and sidewalk maintenance increase $13,000
• Mobile resident request app $1,300-$7,400

CM Crawley feels there isn't a need to hire a communications person. I have advocated for this for many reasons. Most other cities have someone on staff who handles communication internally and externally. This person would be responsible for the mobile resident app that has been discussed (residents can use to report and track issues), communicate with residents via social media on city events, maintenance projects, and city issues/emergencies, help with GRAMA requests, work on education materials for things such as water conservation, and help the city utilize technology more to help residents who want to be involved. Other cities do things such as record City Council meetings and post to YouTube or live stream meetings with YouTube so residents who can't attend in person can still watch the meetings. This person would handle all communications externally, and would also act as a liaison between Council and staff on city issues that come up between Council meetings. CM Crawley felt those residents who want to be involved already have many ways to be involved. I feel that we have many residents who would like to be involved, but need other avenues available through technology to stay involved. Many have other commitments on Tuesday nights or prefer receiving information through methods such as email or social media instead of visiting the city's website. This is just a placeholder and will be discussed in more depth later on.

Golf Budget Highlights

• Green fees are projected at $562, 000 for the current fiscal year based on the last several years February through June average revenue amounts
• Windy, wet weekend weather during May 2015 caused green fees to decline over $17,000 lower than the prior year
• Golf pass trades: 2013-$17,500, 2014-$40,200, and 2015-$33,436
• Overall operational budgeted support from other funds $168,500
• 165 acres of open space or $1,021 of operating support required per acre
• 54 acres of irrigation lines or $3,120 per acre of irrigation
• Motor pool charges increase $10,750 for two fairway mowers
• 80 golf carts will be replaced February 2017 decrease $7,000
• Golf cart repair reduced $3,000 due to newer carts
• Green fees reduced $5,000
• Pro shop revenue increase $10,000 and corresponding expense $4,500
• $2,500 custodian allocation moved out of payroll to building maintenance
• Overall wages and benefits increase $3,750
• Supplies increase $2,500 for range balls
• Utilities increase $2,000 for electric costs
• Water pumping electric costs decreased $2,000

Golf Debt Fund Highlights

• Partially refunded 2005 General obligation was paid off 2/1/2016
• 2012 General obligation has principal and interest payment scheduled until 2/1/2035
• The principal and interest payments average approximately $384,000 annually
• The property tax debt levy was $309,970 for the current fiscal year
• The property tax debt levy is estimated at $309,770 for next fiscal year
• Motor vehicle fees allocated based on property tax levy amounts and approximately $10,000 in fund balance make up the difference

I brought up that I would like to see some funding to extend the golf course nets on the driving range. We know we continue to have an issue with balls going over the net. We did raise a portion of the net in one section, which did reduce the number of balls going over the net in that area. I have concerns with stray balls going into Mesquite Park or hitting someone walking on the sidewalk next to the driving range. We have residents who live in that area who have indicated they have hundreds of golf balls ending up in their yards from the driving range and have asked the Council to research options to reduce this. My suggestion is that we reduce the cost of the proposed golf maintenance shed by $35,000 to pay for the netting. Others feel that we should try other things first or that those affected should install nets on their own property to keep golf balls out of their yards. I don't mind trying other things if we feel they would be effective. My hope is that we can look at this from the perspective of community. We have residents on Canyon Road who want the the city to make improvements and lower the speed because of safety. We have residents who want us to install a sewer line in Canyon Road so when their septic tanks fail they can connect to sewer. We've had residents ask us to install a stop sign on Harvey Blvd due to speed issues. We had residents in the Cedars who wanted the school district to add a school bus route to their area because of safety issues with their kids walking to school. Last year we had PG residents whose septic systems failed asking to connect to our sewer lines even though they were not yet boundary adjusted into our city, and we bend over backwards to help them. We all may have issues that are important to us or cause us concern with regards to safety and these issues may not be important to others in the city, but we would hope that the Council would listen and attempt to address the issue. I dislike the attitude that anyone who built next to a golf course should've known better and, therefore, should expect issues with stray golf balls. We can't fix every issue, but I'd like residents to know that we give the concerns raised serious consideration and fix it if we can. If we as a city-operated business are causing an issue, then I'd like us to look at what we can do to minimize the impact. With businesses that have built in our city, we have required them to do certain things to minimize the impact to surrounding neighbors, such as installing sound barriers, certain lighting, landscaping, etc. As a city-owned business, I think it is right for us to look at what we can do to minimize the impact of our operations on surrounding neighbors, just as we expect other commercial developers to do. Staff has a concern with my suggestion of reducing the cost of the maintenance shed to cover the nets as they feel it's a slap in the face to the staff who work in the building. I sympathize, but I imagine the residents who are asking us to look into this issue may feel the same way when we tell them that they should install their own nets. 

Review/Action on Contract Extension with Waste Management
The city contract for waste and recycling services is currently under review. After receiving qualified bids from several service providers in April 2011, the city council authorized a five year contract with Waste Management of Utah for waste and recycling services. The original contract is set to expire May 1, 2016. The original agreement contains a provision for a two (2) year extension with the contractor subject to the approval of city council. Staff has reviewed the extension agreement and will present it to the city council. This was approved.

Discussion on Design Guidelines and Zoning Ordinance Changes
Public Comment - Candace Smart feels it would behoove the city to let the Blu Line project go through. Not letting it go through will raise legal fees for the city and keeps that property tax out of the city. Asks that we stop wasting tax dollars fighting the project. Three years is too long for them to sell their property.

CM Zappala has sent the draft revision to legal for review. Has shared the document with the rest of the Council and would like feedback. This will need to go to the Planning Commission for review and discussion on March 17th so Council needs to be prepared to send a product to PC by end of our next meeting.