City Council Meeting - January 22, 2013

Work Session

We reviewed the agenda for Council meeting. Resolution for Herb Wilkinson has not yet been prepared so that item will be read at next meeting. For the Silver Beaver BSA award we will have everyone present except for Sherman Varney (injured) and George Reynolds (it was his dad who received the award). CM Jackman will have some changes to cattery ordinance. Ordinance on buildings over $400,000 changed to remove clause providing for retroactive enforcement (not legal) and to require a majority of votes not a majority of all registered voters. There will be an Emergency Management town hall in February. Ideas for Cedar Hills Champions program include having the day after the resolution be that Champion’s day, each will receive a certificate and be included on the plaque, invite them to be in the parade at Family Festival, encourage more nominations from residents. 

Council Meeting 

Public Comment

Michelle Demille - Three houses on her street were damaged after vandalism occurred in sewer system causing those houses to be flooded with sewage. She wants to put some closure to frustration. She was told it would be taken care of. Overall there were 350 gallons of sewage. She could have done cleaned it up herself instead of paying someone else if had known they would have no coverage from the City or homeowners insurance. She wants to have a settlement with city, would rather not hire an attorney. $9000 worth of belongings are now in her garage that was sitting in waste. Mayor Gygi said he would speak with other mayors who sit on the appeal board for City insurance as our insurance carrier has stated they will only reimburse each home $5000 as this issue was caused by vandalism. **The City is in the process of appealing this decision. We sent pictures of the vandalism (someone lifted the manhole cover and put a basketball, football, and several large branches wrapped in towels into the sewer system) and are asking our insurance carrier to reconsider their decision. Each manhole cover weighs over 100 pounds so it wasn’t little kids who did this.

Suzy Butler – Suzy was also affected by the sewage backup. She has been a resident for 30 years. Spent 15 years on septic tank but allowed easement when sewer main went through. Her house has been flooded 4 times, 3 times due to a faulty sewer pipe and this time from vandalism. She has cleaned up mess herself in the past. This last time was the worst as she suffered $25,000 worth of damage. She stated she is not convinced it is vandalism, thinks someone is purposely sabotaging the system. She thinks an adult lifted off the cover because it is heavy. She was told the city would cover it and would have cleaned it up herself if known that it would not be covered. She didn't find out insurance wouldn't cover the cleaning crew ($5000) until a week and a half later. When there is vandalism to park bathroom, the City pays for it so why not this? She wants us to have a remedy in place in case the insurance company doesn't come through

David Butler - Confirmed his wife's statements. He wants to have a remedy for the future to be sure this doesn't happen again. Wants to know why the City manhole covers are not locked down so this can’t happen.

Review/Action on Recognizing Cedar Hills Champions

From the City press release - As part of the Cedar Hills Champions program, the City Council recognized those residents who have received the Silver Beaver Scouting Award. This includes Sherman Varney, Sheldon Talbot, Arlene Smith, Gary Smith, Andrew Gibbons, Reed Swenson, Grant Bangerter, Grant Iverson, Pauline Iverson, Greg Harris, Bob Ogden, Jeffery Pyne, and Brad Sears. The Silver Beaver award is the highest recognition a Boy Scout council can bestow on an adult volunteer leader. The award is presented to those volunteers who have made outstanding contributions to the Scouting program through hard work, sacrifice, dedication, and many years of service. Nominations are recommended by the local council and approved by the National Council of the Boy Scouts of America.  

Discussion on Temporary Island Cutout on Cedar Hills Drive

Amsource is requesting a temporary cutout on Cedar Hills Drive so that drivers can exit the businesses on the corner by turning left onto Cedar Hills Drive. This has been discussed and rejected in the past due to safety concerns. The Council unanimously agreed to not allow this as the safety concerns still exist and we did not allow this for Harts.  

City Reports

David Bunker - New TSSD sewer plant 80% complete and is very impressive. Recommends Council go on a tour.

CM Jackman - Finance committee met today to kick off budgeting process. Timeline setup to make periodic presentations to Council.

CM Rees - Issued press release on Silver Beaver Award recipients. Discussed Daily Herald article on Lehi and executive retreat where City Council, City Manager, and department heads all get together to plan vision and goals. Called City Councilmember from Lehi to get feedback and was told they do this every year to work on year goals and 6 year goals. Feels it is important to have the city staff on board with goals and have buy in.

CM Zappala - Finance committee met. Agrees that we should have a retreat each year. Working on Emergency Preparedness townhall meeting. Lone Peak Fire has a system for radios that works great even when phones are down. Can receive calls from neighborhood leaders (Stake leaders, schools). Cedar Hills needs to get this information out and be sure stakes and schools have them, as well as area leaders for a neighborhood. Wants to meet once per month with three cities and schools and council and get that frequency up and running with drills. Radios are $175. City has several radios. LPPSD also has a big snowmobile trailer to rescue people in canyon and are getting a new heavy duty trailer to be a mobile EOC. CM Zappala is also working with students on helpful City Apps for budget transparency and a virtual library.

CM Martinez – Had interviews with YCC to assess commitment, communication, and follow-through. Our youth have commitments elsewhere in city, but we are not communicating to them our big events. Need to do a better job of communicating to church leaders about events. Junior Jazz going well. Basement plans are with architect for bid packets and will come in two parts. There are issues with elevator, so one option is an addition to west side. An ADA ramp will not work.

Review/Action on Cattery Ordinance

Chandler Goodwin presented. Changed maximum number of cats to be 6 over the age of 6 months. Added language concerning outdoor exercise area. Council brought up concern with large number of kittens under 6 months so language will be changed to only allow for one litter for breeding purposes. Will remove section 1.B.1.A and add as part of our business license procedures. This item has been continued.

Reviw/Action on Ordinance to Restrict Purchase or Construction of Public Buildings in Excess of $400,000

David Bunker presented. In 2011 a petition was submitted to the City for this purpose. The language required a majority of registered voters, not a majority of those voting in election and also allowed for the law to be retroactive, which isn’t legal. This was a hot topic at the last election. Council understands the concern and has no problem with this ordinance giving residents the opportunity to vote on new buildings over $400,000. This item passed unanimously.

Review/Action on Contract with PR Firm for Branding Campaign

Would include logo and rebranding of the City. Two firms were interviewed and Mayor and City Manager would like to enter into a contract with Radi8 Creative. We would need to amend budget for this in current year or wait for 2014 budget. Mr. Keith Irwin commented and stated that commitment comes from involvement so this process needs to involve residents. A branding process well-done engages many constituents in the community. He did have one concern that the contract only has one deliverable and we need to change it to include everything in their bid. CM Jackman has also asked for legal review of the contract and more information on where the funds will come from. Mr. Bunker recommends unrestricted funds, but CM Jackman would like him to also look at using some of the existing advertising funds already allocated to the Community Recreation Fund. Item has been continued.

Discussion on Town Hall Meeting Regarding Emergency Management

Will be held February 21^st. City responsibility is major infrastructure. CM Zappala recommended we use the Parlant system to get word out about the meeting. CM Jackman wants to increase the number of times we use Parlant, but when we do a survey ask questions about what type of info should be communicated. CM Zappala wants to be sure to use text messages where possible because they are less intrusive and more convenient.

Council Meeting - January 8, 2013

Work Session

Communities that Care

Pat Bird with Utah County Department of Drug and Alcohol presented. His group was contacted by Lone Peak High School last year after the death of some students related to drug use. They are recommending working with us to develop a road map for Cedar Hills, Alpine, and Highland to work together on prevention efforts with regards to drug and alcohol abuse. They have spent the past several months surveying teens, parents, and local leaders. Feedback they received from youth surveyed is that parents aren't giving clear messages about right and wrong (example given: parents are telling their children it is OK to drive with learners permit without parent in car).

The program needs to include all members of community - law enforcement, citizens, clergy, city council, PTA, parents, schools. They also propose a volunteer committee be appointed to work with Utah County Dept of Drug and Alcohol Prevention and Treatment to become aware of what other communities are doing to address these issues. This committee would consist of members from all three cities. The model they develop helps determine what is happening in the community that is manifesting in drug issues at high schools. The County is doing something similar called the SMART coalition. State, City, and County all financially contribute to the program. Really need a staff member to lead this and these contributions help pay for that staff member.

Council Meeting

Public Comment

Nobody signed up for public comment.

City Reports

CM Rees - Two press releases were issued, one coming this week for Lego League. Light Up winners were announced online and in the newsletter.

CM Zappala - Emergency Preparedness group having meeting next week to put together city plan.

CM Martinez - Emily Cox is resident advisor for YCC, Nicole Allen is staff member for YCC. She is making some changes to program to streamline some items. 750+ players have signed up for Junior Jazz. Rec department partnered with Snowbird for ski bus. Lego League is this Saturday at Cedar Ridge Elementary. Have 46 volunteers but need 50. Had Marisa Wright to present to the Council regarding weekly story time. This is now happening on Tuesdays and Wednesdays at 11:00am. This year they will also focus on teaching kids about local environment.

CM Jackman - Finance committee will be meeting soon to start budgeting process.

CM Augustus - Took ~270 photos of kids at Christmas Party. Planning Commission will be looking at restricting number of certain types of business such as PayDay loans and auto dealerships.

David Bunker - TSSD met and approved a new capital facilities plan study to be done by Bowen & Collins and rates may go up. Unified Fire study should be back to us within 30 days.

Review/Action Recognizing Cedar Hills Champion Herb Wilkinson

From the City press release - Cedar Hills officials and staff are proud to announce a new program, the Cedar Hills Champions. This program will recognize and honor Cedar Hills residents who achieve noteworthy accomplishments in academics, athletics, leadership, arts, business, and community service.

On January 8, 2013 the City Council will recognize the City’s first Cedar Hills Champion, Herb Wilkinson. Herb made the game-winning shot at the 1944 NCAA National Championship game while playing for the University of Utah basketball team and went on to be an All-Star player at the University of Iowa. Shortly after graduation, Wilkinson received an offer to play for the Minneapolis Lakers of the Basketball Association of America. He agreed with the stipulation that his contract include a provision that he not play on Sundays. He played several preseason games but when the owner noticed Wilkinson was absent one Sunday he was told he had to play Sundays or be released from the team. Wilkinson left the team and went on to serve a mission for The Church of Jesus Christ of Latter-Day Saints.

Wilkinson has participated in track and field events at various senior games. In 2012 he competed in the Huntsman Senior Games, a tournament similar to the Olympics representing more than 90 countries, where he won a silver medal and four gold medals. Overall, Wilkinson has won more than 160 medals.

“Mr. Wilkinson has a wonderful attitude and determination that has led to many successes throughout his life,” stated Mayor Gary Gygi. “He is an inspiration to us all and I am proud to recognize him on behalf of all Cedar Hills residents.”

You can view a YouTube video of his game winning shot at the 1944 games by following this link: http://www.youtube.com/watch?v=VVT0Fd_Vm-w

Review/Action Approving Audit Report

Diana Cannell presented the final audit for the FY 2012 budget. A few items she highlighted:

·  The assets of the City of Cedar Hills exceeded the liabilities as of the close of the most recent year by $41,703,893 (net assets). Of this amount, $3,338,923 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors.

·   In the general fund, revenues exceeded expenditures by $297,719 before inter-fund transfers.

·   At the close of the fiscal year, the fund balance of the general fund totaled $744,461 of which $13,193 is nonspendable, $83,421 is restricted, and $647,847 is unassigned. State statutes allow a maximum fund balance of 18 percent of next year’s total budgeted general fund revenues.

There was only one finding – The City monitored and revised the budget for legal services in the spring of 2012, but legal services ended up almost $40,000 more than the revision. The legal services expenditure line item caused the administrative department to exceed their budget by approximately $10,000.

The Council unanimously approved the audit.

Review/Action on Appointment of Mayor Pro Tempore

Protocol for electing the mayor pro tempore typically has rotated to the councilmember with the most votes from the previous municipal election. This means the mayor pro tempore for 2013 is CM Rees. This was unanimously approved.

Review/Action on Cattery Ordinance

The changes that were requested at last meeting were implemented; however, during this meeting there was a request to add wording about an outdoor run and the number of animals allowed in at a time, and to also increase the limit from four cats to six. This item has been moved to the next meeting.

Review/Action Approving Exterior Elevations of Bridgestone Plat

David, CM Augustus, and Mayor Gygi met with Brandon Dyer with Perry Homes regarding some changes on the outside materials for the 8 plex units in the Bridgestone subdivision. The request was made to add more brick. Perry presented new drawings with more brick but stated it wasn’t cost effective for them. Additionally, Mr. Chesworth (the HOA President of Bridgestone) stated the community didn’t like the new drawings as much as the previous drawings. Perry had indicated they would not build anything if the Council was going to require more brick. Mr. Dyer and Mr. Chesworth both asked the Council to approve the second set of drawings. There were concerns that were discussed, which are included in my last blog post. The motion approving the second drawings passed 3-2 with CM Zappala, Martinez, and Rees voting yes and CM Augustus and Jackman voting no.

Council Meeting - December 18, 2012

Work Session 

Randy Yates, a realtor with Mountainland Realty, has received offer for the nine acres of commercial space that the City owns. This same entity who is interested in our property has made an offer to the Smarts as well and they will probably accept that offer. They are interested in a long-term lease of our property (99 years).

Randy came to present this potential offer to the Council. Buyers are very experienced in developing commercial and residential properties and have the money for this project. Talked about various options - retail, restaurants, strip mall, office space, etc. Would like some residential in the back bordering existing residential property, either condos/apartments and/or multi-use with commercial on the main floor and residential on the upper floors. Mr. Yates won't give us the name of buyer until we enter into an agreement with him so he may receive a commission, which is common. Buyers want to develop as soon as possible. Mr. Yates is willing to either represent us through the whole process (as well as the buyer) or be paid a smaller fee for just introducing us to his buyer and having us represent ourselves. 

Council Meeting

Public Comment

Nobody signed up for public comment. 

Consent Agenda

The minutes from the following meetings were approved: October 16, 2012 City Council meeting, November 15, 2012 Special Council meeting, November 20, 2012 City Council meeting, and the December 4, 2012 City Council meeting. 

City Reports

CM Martinez - Santa's Workshop went very well. YCC did a great job. Helped approximately 60 Cedar Hills kids. Will send any uncollected toys to a shelter. City party was great. Received a lot of compliments. Lego League is coming up and we still need volunteers for this. Event is on January 12th. 

CM Rees - Issued one press release, working on another. 

Review/Action on Approval of Exterior Elevations for Bridgestone

Robert Chesworth and Monty Hickenlooper represent the Bridgestone HOA and were present. We have received modified architectural drawings from Perry homes for the 8-plex units. Additional brick has been added to the front. Hardy plank will be above the brick. On sides there will be 9 feet of brick. On the back there will be brick over the doors and rock, with rest being hardy plank. Mayor Gygi wants the community to stay a very nice place where people want to live. We have allowed several exceptions for this new unit and he feels like Perry Homes continues to ask for concessions. The Mayor has met with Mr. Chesworth and Mr. Hickenlooper and expressed his concerns. They both want this to move forward and are fine with the new drawings.  

Mayor Gygi is fine with allowing it to be approved with the new drawings, but wants Perry Homes to realize that the City has continued to make concessions on this project and this won't be a precedent for the future. I stated my main concern was that residents would be upset if it the design didn’t match the rest of the community, but if the residents in that area are fine with the new drawings then I am as well. CM Zappala stated he doesn't like the 8-plex units, but that has already been approved and can't be changed. CM Jackman is frustrated with the number of concessions we've made, but what residents want carries a lot of weight. CM Martinez is unhappy with the changes and wants Perry to be required to change the plans for the units to have 50% brick in order to match the other buildings in that area. She feels we have an obligation to future residents as well and these communities have a lot of move-ins and move-outs. CM Augustus is frustrated as well. Said that Brandon Dyer (President of Perry Homes) knew in July what was required and feels like we are now stuck in a difficult situation. The units will be here a lot longer than any of the resident and he feels we shouldn’t make exceptions now.  

Mr. Chesworth is the President of the HOA and represents the citizens of Bridgestone. He said that Perry Homes took this project over from McMullen Homes being under the impression they wouldn't have issues moving forward. The property now looks horrible with weeds and a large excavation hole and those residents want the property developed. Perry has stated that if they are required to use 50% brick then they will walk away from the project. This is not what the Bridgestone community wants. 

This item was tabled until there can be a meeting with Brandon Dyer (Perry Homes), the HOA, Mayor Gygi, David Bunker, and CM Augustus. 

Review/Action on Options for CoRec Basement

Staff proposed that we get construction bids for the basement. This would not encumber the City, but will give us better idea on what costs should be. Staff recommends we get bid for Plan B, but with a break down between North and South Side. It will cost about $15,000 to get these plans prepared to go out to bid. We've already paid a draftsman $2,000 to draw up plans.  

North side will have dance floor, mirrored walls, and ballet bar. South side will have more electrical outlets so it could be utilized for many different types of uses.  

The Council approved this item to receive bids so we can have a better understanding of the costs associated with the completion of the basement. CM Zappala requested that the bid include separate drawings for elevator vs ADA ramp so we can determine which option is best. 

There was no need for executive session.

Council Meeting - December 4, 2012

Work Session 

The Work Session was used to discuss items on the City Council meeting agenda.

Council Meeting 

Public Comment

Nobody signed up for public comment. 

Public Hearing on Kennel or Cattery

Nobody signed up for the public hearing. 

Consent Agenda

The minutes from the October 2, 2012 City Council meeting with unanimously approved. 

City Reports

David Bunker – There is one meeting for the City Council in December and no meetings for the Planning Commission. The CoRec has been decorated by Public Works staff. An Eagle Scout project for emergency preparedness will be held in December and this information will be in newsletter and on the City Facebook page. 

CM Rees - One press release was issued, one is being worked on. The City will host its first annual Christmas party for residents on December 10^th from 5pm-8pm at the CoRec. Santa will be there, and there will be hot cocoa, candy canes, and crafts for residents. We will also be collecting donations for the YCC Santa’s Workshop. 

CM Martinez - Junior Jazz signups going on for four more days. Santa’s Workshop is next week. Pizza Pie Cafe is having fundraiser this week, 25% of each Cedar Hills sale goes to the workshop. We have a lot of families in need this year who have teens. Residents can also bring donations to the City offices and to the Dec 10th event. We have programs that need volunteers. Jr. Jazz and Lego League both need volunteers. Residents can sign-up on the City website. Need 50 volunteers for Lego event. Also need volunteers for Family Festival. 

CM Zappala - Met with VOAD (Voluntary Organizations Active in Disaster). They help mobilize various organizations that can help in disaster. Utah County does not yet have a group but is working on forming one.  

Recognition of Golf Course Finance Advisory Committee Members

Mayor Gygi stated he is grateful for the time and effort given by this committee. Members had such integrity and honesty. Wishes the entire city could've seen the work they did. This project took a lot of time away from their families. On behalf of the City Council and City staff each member received a free meal for their family at the Grill. Committee members are Rob Crawley, Jared Bradley, Priscilla Leak, Rick Stewart, Mark Webb, and Rob Olsen. 

Review/Action on Ordinance Regarding Kennels and Catteries

The City was contacted by a resident who wanted to start a business in his home to board cats. Scott McMahon (Zoning Official) worked with the Planning Commission to create an ordinance that would allow for this. The primary concerns were management of noise and odor for surrounding residents. Scott contacted the North Utah County Animal Shelter and the Board of Health to get feedback and suggestions. The decision was made to only allow indoor boarding with exercise facility outside, only one animal at a time could be outside and never after 8pm or before 8am.  

The new ordinance states that a business can board four dogs or cats in addition to their personal animals. The ordinance does address space requirements for this type of business. Making the code simple likes this makes it easier for the code enforcement officer to enforce complaints. Anyone wanting to apply for this license would have to go through the Planning Commission to get approval. The City would notify any close residents regarding the application so they would be able to attend the public hearing. The Planning Commission has the ability to add additional conditions based upon the concerns expressed by neighbors.  

During the Council discussion it was brought up that some residents have expressed concern over allowing dogs, so the suggestion was made that we remove the kennel portion entirely and only allow catteries since we've only had a request for a cattery. The following changes were requested:

·       Page 1 - change working to "up to four" instead of four or more;

·       Page 5 - remove D1 and D2 as zoning and size of lot don't matter;

·       Page 2 - remove the URL mentioned so we don't have to change the ordinance if the URL is changed. Also, add fees to the fee schedule and not the ordinance so we don't have to update the ordinance if we change the fee;

·        Page 2 – remove wording about other licenses needed as these businesses will only need a business license from the City;

·       Add language that an annual inspection will be required to renew business license.

·       Remove all references to “kennel” and make this ordinance specific to catteries. 

This item has been continued tabled until the above changes are made to the ordinance. 

Review/Action on Resolution of GO Bond Refinancing by Pricing Committee

Marc Edminster came to discuss this with the Council. He recommended we appoint a pricing committee consisting of the Mayor, City Manager, and Finance Director who will have authority to move forward with the refinance of the golf course bond. Bond sale will take place next Wednesday via an online auction. The plan is to finalize on Dec 20th. Because there is not another council meeting we would either need to call a special meeting or authorize this committee to move forward on our behalf. The committee must operate within the parameters resolution previously approved by the Council. Interest rates are at the lowest they've been in 46 years for municipal bonds, so it's a good time to refinance. The City received AA- ratings from both Fitch and Standard& Poor. The savings over the life of loan savings should be approximately $595,148.47 or about $26,000k per year. Bonds won't exceed $5,725 million. This resolution was unanimously approved.  

Review/Action on City Council Meetings for 2013

In accordance with Utah Code, the City is required to set by ordinance the time and place for holding regular Council meetings. Currently, there was one meeting scheduled for April as the Council had traditionally gone to St. George in April to attend the ULCT conferences. This will be discussed further. CM Martinez and Jackman feel more time is spent working together in as a team in St. George as opposed to attending the fall conference in Salt Lake. I prefer to attend the fall as conference as it is cheaper for the City as we don’t need to be reimbursed for hotels or transportation. In the meantime, CM Jackman recommended we change the meeting schedule to include two meetings in April and we can later cancel it if it is decided to attend the St. George conference instead of the Salt Lake conference. This was unanimously approved with CM Jackman’s recommendations. 

Review/Action on Easement Agreement with Metropolitan Water District

In July 2012, Ammon Allen from the Metropolitan Water District of Salt Lake presented a proposal to modify the easement along Silver Lake Drive and Canyon Heights Drive as the easement currently goes through the backyard of those homes. This has prevented those residents from being able to build pools or other permanent structures in their backyards. The recommendation made was to shift the easement east, which would not affect any other private property owners. Staff will review with the City Attorney and City Engineer to make sure there are no additional concerns. Mr. Allen also stated that MWD will allow us to make improvements on the easement, such as small landscaping, sprinklers, paved trails, and grass. This item was unanimously approved.

Review/Action on Golf Cart Lease Agreement

After the discussion at the last Council meeting, Wade Doyle (Golf Operations Manager) solicited bids from golf cart distributors to replace 80 existing carts. The best agreement will increase the yearly lease payment by $20,000 but will reduce maintenance costs by at least $60,000 as there are many carts that need new batteries and other repairs. Year-to-year maintenance costs will go down by about the same amount of the increase for the new leases. The lease includes a four year bumper-to-bumper warranty. This item was unanimously approved. 

Review/Action on Policy of Non-Related Golf Activities on Golf Course

During the November 15^th work session Brian Cloud (Golf Course Superintendent) recommended that it would be costly to allow non-golf related activities on the course during the winter months as the damage is extensive. The recommendation made to the Council was to create an official policy not allowing non-golf activities on the course and to encourage residents to utilize parks for sledding and winter activities. This item was unanimously approved. 

Review/Action on Options for CoRec Basement

This item was tabled for a future meeting.

Discussion on Paige Osmond Day

Cedar Hills resident Paige Osmond has been given the lead role in the Nutcracker in Tennessee, which is part of Radio City Music Hall. Mayor Gygi spoke with her dad about having a Paige Osmond day and he is fine with it. This will occur in 2013 and will be put together in conjunction with the new Cedar Hills Champions Program. 

There was no need for executive session so the meeting was adjourned.

My Thoughts on the CoRec Basement

Finishing the CoRec basement is a hot topic for the Council and for residents. It’s no secret that I am opposed to finishing the basement at this time, but it’s not because I don’t care about the needs of our children (I have four kids ranging in ages from 18 to 1) and it’s not because I don’t recreate. I do see the benefit of having additional recreational opportunities for our residents and I wasn’t opposed to using recreation impact fees and/or CARE tax funds for the basement. However, the recreation impact fees are now gone and we only have approximately $100,000 in CARE tax money, which doesn’t come close to the money needed to complete the basement. My concerns with using unrestricted funds for this are based on the following reasons.

1. Financial forecasting

I am waiting to receive a forecast of our financial needs for the next 5-7 years. I don’t believe in making big financial decisions without financial forecasting and I’m concerned that, as a Council, we don't have a clear idea of what needs we should be budgeting for over the next five years. Earlier this year we hired Bowen, Collins, & Associates to perform a utility rate analysis for us. In this analysis they state “based on the current plan [of increasing utility rates], the City will need to draw approximately $1.1 million from reserve funds to cover expenditures in the first four years of the plan before it is paid back in later years. It is recommended that the City verify it has adequate reserve funds to cover this need.” Recently, we’ve been told that our golf carts need to be replaced, which is not something we planned for. These are two things we know of, but what of those things of which we are not aware? What other needs does our City have over the next five years that we should be budgeting for and that we can pay for with unrestricted funds? I don’t have an answer to this question as of yet. Our financial director is working on this analysis for us. I am hesitant to spend unrestricted funds until we have a better understanding of our financial needs.

2. Profit/Loss on current programs

I am waiting to receive a copy of a profit & loss analysis for the current recreation programs and the Grill and this is something our finance team is working on. I’ve been told that our current recreation programs and the Grill are losing money, but I don’t know how much. In the 2013 budget we assumed both would break even and we will have to budget amend if either will need a subsidy due to losses. It is still early in the fiscal year and things may change; however, I’m hesitant to add more recreation programs if our existing programs are losing money. If we increase our costs (which finishing the basement will do) and continue to lose money then it stands to reason that the needed subsidy will also increase. I would prefer to first implement the suggestions from residents and the Golf Course Finance Advisory Committee on ways to increase revenue and see if we can get closer to breaking even before spending more money on something that is losing money.

3. Already over budget

From what I’ve been able to tell after reviewing agenda minutes and talking with residents, the original approval for the CoRec was to spend $2.1 million, then it increased to $2.5 million. In the end with changes and updates the total cost was closer to $2.9 million. The intent of the building was to function as a clubhouse, a recreation center, and an events center. It feels now like the message is in order to really make it work for all three, we need to spend another $300,000 - $500,000 to complete the basement and then it will be profitable and serve all three functions. We’ve already spent a considerable amount of money to accomplish this and residents were told that the current center would  function as an events and recreation center. I feel we should allow more time to work out the scheduling conflicts before assuming we have to spend more money, especially as it is already almost half a million dollars over budget.

4. What is the potential?

We are told that there is a conflict between recreation and events as only one thing can be happening at the facility at a time, but if we finish the basement then we can have recreation and events occurring together. Maybe this is true and there is an opportunity cost to be considered by only having room for one or the other. However, I haven’t seen an analysis that realistically shows what the potential is. We couldn’t ask an investor to invest in our business by simply stating that we were going to have 1,000 new clients by the end of the year. We would need to show an understanding of the industry, our competitors, the market share, what was working and what wasn’t, and explain how we were going to meet that number. I’m not aware of an analysis showing what potential our CoRec has for events. How many events do other Utah County golf courses hold? How many receptions does the new center in Pleasant Grove hold each year? Are other golf courses realizing a profit when hosting events and tournaments? If we are going to be in the business of running an events center, then it’s time we start thinking like a business. I know that many businesses lose money before they begin to realize profits. However, we need to have a plan in place and an understanding of the business we are in before we are spending more money to accommodate more events.

5. Is this what residents really want?

Unfortunately, due to legal expenses we had to cut the Decisions Survey that was to be completed this year. I would’ve liked to ask about the basement as a portion of it is for a cardio room and a includes a plan for spin classes. Reading through the Decisions Survey done during FY 2011 there were two questions that stand out to me. The first was “Should the City provide adult recreation programs?” In that survey, 35% were in favor and 60% were against. The other question was “If adult programs were provided, would you participate?” 29% said yes and 65% said no. Additionally, we’ve had residents reach out to the Council expressing a desire for more park space. Our unrestricted funds can be used for anything, and after reviewing the last Decisions Survey and hearing from residents I’m not sure that the CoRec basement is something on which we should spend unrestricted funds. We did hold a townhall meeting to discuss this but there less than 20 residents who provided input during the public comment portion. It would be nice to hear from more residents on this issue.

Again, I am not opposed to recreation or the facility we currently have. As a mom, I appreciate all of the things the City does to make this a family-friendly community. I also realize that we are lucky to live near several other cities that also have recreation programs where my children can participate. I have thought over this topic for months and I’m just not at the point where I feel comfortable spending unrestricted funds without first resolving the five points listed above. I do realize I stand alone on this issue and I will support whatever is ultimately decided by the Council, but I felt it important to share my concerns so residents understand why I feel we should not finish the basement at this time.

Council Meeting - November 20, 2012

Work Session

Presentation by YCC on Santa’s Workshop Toy Drive

This program allows local families in need to pick up toys and other presents for their children for Christmas. The YCC meets with local bishops to get recommendations of families who may benefit from this program. All of the money that is raised from fundraisers throughout the year go towards this program, as well as toy donations from families. Last year the YCC helped 30 families. This year the YCC has raised approximately $500. The YCC encourages families to donate new or gently used toys to this program. Donation boxes will be located at the Public Works Building, the Community Recreation Center, Deerfield Elementary, and Cedar Ridge Elementary. Cash donations can be made at the City Office. Pizza Pie Café is having a special fundraising activity for Cedar Hills. Bring in your Pizza Pie card on Nov 27^th, 28^th, 29^th, Dec 4^th, 5^th, or 6^th and 25% of your order will go to help this program.

Discussion of Winter Activities on Golf Course

There have been several suggestions to have other winter activities on the golf course. The golf manager came to discuss his concerns and recommends not doing this. After talking with other courses and doing research he has determined that this causes a lot of damage to the course. He contacted the superintendent of Wasatch State Park as they do allow winter activities on their golf course and was told they sustain a lot of damage each year. Skiers don’t stay on the trails and the snow compact turns to ice, which damages the greens. He also spoke with a course in Idaho that allows other activities and was told they spend $5,000-$8,000 each year on repairs.

The previous golf director used to have snow removed from the course in the winter in order to have more rounds of golf played. Our current management recommends we do not continue this practice as the course benefits from having several weeks to recuperate. The recommendation was made that we identify other areas where residents can participate in winter activities and that the Council approve an official policy prohibiting sledding and other activities on the course. This will be continued to the next meeting.

Council Meeting

Public Comment

Marisa Wright – Wants to see the CoRec basement completed. Says only one resident at the townhall regarding the basement was against it after expressing fiscal conservatism. She is upset that the City settled with UVHBA. Some members of the Council have told her that now that the recreation impact fees are gone the basement can be completed with CARE tax funds and unrestricted general funds. Feels the basement needs to be completed to make the golf course break even operationally. Says the CoRec is the difference between a town and hometown. Doesn’t know why anyone would be against it unless they don’t recreate.

City Reports

David Bunker – Received bond ratings from Standard & Poor and Fitch. Both agencies rated the City at AA-, which is a very good rating. With both agencies giving us the same rating we will get a better refinancing rate on the GO bond. Interest rates are low right now so it is a good time to refinance.

CM Martinez – YCC working on Santa’s workshop. On December 10^th the City will be hosting a winter event at the CoRec. Santa will be there to see the kids and we will be serving hot cocoa. Hours will be 5pm-8pm. The Grill is recommending new winter hours of 8-5 with the grill portion only operating from 11-2. Food that will be served during the other hours will be soups, salads, and premade items. This recommendation is due to financial losses. December 7^th will be the last day of regular hours.

CM Augustus – The Planning Commission met to discuss the Dimond Subdivision, kennels and catteries. Attended a North Pointe Solid Waste board meeting and tipping fees will be increasing about $3 per household per year. Looking at changing access as it is very busy on Saturdays. He continues to work with draftsperson on plans for the CoRec basement.

Mayor Gygi – Met with three council members regarding goals and visions. Will meet with the other two soon. Will present overall goals for January.

CM Rees – Issued two press releases and getting more likes on Facebook. Working with CM Martinez on December 10^th event.

CM Zappala – Working on emergency plan for the City. Attended a board meeting for Utah Valley Special Service District. They are having issues hiring qualified people and are also looking for a new location. Mentioned Highland, Saratoga Springs, and Santaquin as possible locations. Working on a request for bids.

Recognition of Golf Course Finance Advisory Committee Members

As not all of the members were able to be present this item has been postponed.

Review/Acton to Approve Final Plat for Dimond Subdivision A

This is a proposed two lot subdivision located at 4000 West and 9486 North. The subdivision will consist of the existing home and a new lot. This subdivision originally received approval about two years ago and has gone through the Planning Commission again. Still need to submit water rights and a storm water protection plan. Plans include utilities to the new lot. This was approved.

Review/Acton on Water Conservation Plan Update

The State and the Division of Water Resources require that we update this plan every five years. Our current outdoor use is moderate to high and we need to develop some education materials for residents to reduce water consumption. We do not currently meter our PI usage, but it would cost approximately $1.5 million to install a metering system, plus higher O&M costs for replacement and maintenance. We haven’t looked at providing incentives to cut down on water use, but staff is open to this. Staff would like to create a water conservation committee to address this and other conservation issues. The new Water Conservation Plan was approved.

Discussion on Golf Cart Lease Agreement

Wade (golf director) went through each of the carts to review was is needed and determined that about half of our golf carts will not have enough battery life to get through the next season. He recommends we replace the carts. If we were to fix the issues with existing carts it would cost $36,000-$40,000 the first year and the same amount for the second year. This is in addition to the approximately $50,000 in cart maintenance costs over the next 24 months on the current fleet. He doesn’t feel it makes sense to spend that kind of money on used carts. Feels it makes more financial sense to sell the bad carts and get a lease for new carts. He has received several bids and the price is about $6,200/month for a four-year lease for the new carts. The four year lease includes a full warranty for the four years. We had previously been told that we could expect each cart to last eight years but Wade feels a more realistic expectation is four years. We’ve had issues with carts dying on the course and golfers having to be towed back to the clubhouse. We also had an instance where a golfer was injured after the brakes didn’t work on a cart. Mr. Gonzalez (cart maintenance technician) stated there is also a cost of labor and parts to continually be fixing broken down carts. This was a discussion item only so no decision was made.

Discussion on Cedar Hills Champions Program

I had been approached by a resident who wanted to recommend another resident as a Cedar Hills Champion. This section is on our website but was never an official program. I would like to implement this program and recognize a resident each quarter. I will work with David on drafting the parameters for this program and it will be on a future agenda.

No executive session was needed.

Council Meeting - November 15, 2012

Council Meeting

Public Comment

Nobody signed up for public comment.

Review/Action on Settlement Agreement with UVHBA

In April, the UVHBA filed an action against the City regarding the collection and use of impact fees for recreation facilities. Under the terms of the settlement agreement, the parties agree that no liability has been established and that by settling, the City does not admit to any wrongdoing. The Council unanimously agreed to pay $175,000, which is approximately the amount of recreation impact fees that had not yet been spent, and reimburse attorney’s fees in the amount of $15,000. More information can be found by reviewing the City’s press release at http://www.cedarhills.org/node/1790.

Review/Action on Ordinance Repealing Recreation Building Impact Fee

In association with the settlement agreement with UVHBA the City agreed to suspend and repeal the assessment and collection of the recreation facilities component of the park impact fee. The new ordinance repealing the collection of this impact fee was unanimously approved.

Review/Action on Interlocal Cooperation Agreement

Before the reconstruction of North County Blvd began the County agreed that certain municipal improvements needed to be installed in 4800 West. These improvements include a 12-inch culinary water line, a relocated sewer meter vault, the construction of a new sewer outfall line and metering vault to allow sanitary sewer flows to enter the TSSD mainline in 1100 East in American Fork, and water and sewer lines stub-outs in the undeveloped commercial properties east of 4800 West. Our portion of these improvements comes to $310,054.40, which is 60% of the overall cost and our portion of the overall usage. The other 40% will be paid by American Fork, which represents their portion of the usage. Adding the stub-outs now means we will not have to tear up the road to install these utility lines when commercial businesses start development in our commercial area. The funds will be allocated from capital improvement and impact fees according to the construction schedule. This was unanimously approved.

As the Council had an executive session prior to the meeting to discuss legal items there was no need for an additional executive session.