Council Meeting - August 28, 2012

Work Session

The Work Session was used to discuss items on the agenda for Council Meeting.

Council Meeting

Public Comment
There were no sign-ups for public comment.

City Reports
City Manager - Reminded the Council about the ULCT meeting in September.

CM Rees - I am attending a meeting in September regarding the U.S. Military and the Community Covenant Program. I will report on what is discussed. The State of the City newsletter is complete and is now with a graphic designer. She will have a sample layout to me by the end of the week. The plan is to have it to residents no later than September 18th, and we then have a town hall meeting scheduled on September 25th at 7:00pm to cover those topics. We are getting more likes on our Facebook page. The Yard of the Month program is almost complete and the Beautification Committee is discussing plans to do a Lights Up contest for the month of December. I spoke with CM Martinez about merging the Beautification Committee with the Parks & Trails Committee as these two frequently overlap. She agreed and we would like to proceed with this. Both Stephanie and I would work with this new committee.

CM Jackman - He has a few upcoming meetings. No new updates at this time.

Mayor Gygi - The County is still talking about restructuring the TSSD board. Mayor Gygi has reached out the various special service districts and let them know that Cedar Hills wants representation on each of them. Mayor Gygi will not be giving CM Zappala any assignments as of yet while we wait to see what happens with these boards.

CM Martinez - YCC is having a car wash fundraiser on September 4th from 3:30pm - 5:30pm. Proceeds go to the Santa's workshop. This will be near the roundabout by Walmart. Tot soccer is now going and sign ups for flag football are happening. Other cities are going to be highlighting our recreation programs in their newsletters as we don't have non-resident fees. We have hired two recreation staff coordinators. We've also hired a new Golf Operations manager as Jim Madsen has left. This new manager comes from Fox Hollow golf course. The new fall fitness calendar is now online. The Grill has new fall hours of 10am-8pm. Hart's is planning a grand opening for October 4th, but that is not yet certain so we will not advertise until we have a definite date. Family Festival dates for 2013 are June 10th-15th.

CM Zappala - Having a meeting with residents on August 30th at 5pm to discuss resident involvement in planning town hall meetings.

Discussion on Community Recreation Center Basement Options
Greg Gordon and Kaity Whittaker presented four options for the completion of the basement. Those options with their pros and cons can be viewed on the City's website at http://www.cedarhills.org/sites/default/files/agendas/city-council-agenda-packet-2012-08-28.pdf.
A general list:

• Plan A is finishing the entire basement at this time. Allows for more recreational opportunities and frees up the Vista Room for golf tournaments and other events. This option is the most expensive.
• Plan B is finishing the basement but does not include any recreation equipment or a bouldering wall. This is cheaper than Plan A and still allows for the Vista room to be utilized for revenue generating events; however, it limits the amount of recreation that residents can participate in if there is no equipment. Would mainly be used for classes.
• Plan C is finishing just the North side of the basement. This is cheaper than Plan A & B but still allows for current recreation classes to be moved downstairs so that the Vista room is used for revenue generating activities. Limited recreational activities for residents, but would allow for the same classes we currently offer and a few more for instructors who want a more traditional flooring.
• Plan D is doing nothing with the basement. There is no cost associated with this option; however, we do have an opportunity cost that comes with losing the ability to open the Vista room to revenue generating activities, such as golf tournaments and other events.

We have asked for a cost breakdown for Plans A, B, and C. The approximate construction cost is $50 per square foot. Mr. Bunker also mentioned that CARE tax funds could be used for this project. We currently have a little over $100,000 in CARE tax funds.

My two cents - I am hesitant to complete the basement at this time. I understand the need to open up the Vista room for tournaments and events that may bring in additional revenue. My concern is that we do have an open lawsuit against the City filed by the Utah Homebuilders Association. This announcement can be found in the August newsletter. This lawsuit is regarding our recreation impact fees and the building itself and I am uncomfortable spending any additional money on the CoRec until we see what happens with this lawsuit. Unfortunately, because this is an open lawsuit I cannot give more details at this time. I have expressed my opinion several times that we should wait and see what happens with this lawsuit before proceeding with the basement. However, I would also encourage residents to reach out to other councilmembers who disagree with me as they have very good arguments for moving forward.

Secondly, I suggested that we get more resident input before proceeding. During the Mayoral and Council appointments we heard over and over from the applicants that the City needed to be more proactive in getting resident input before spending money on large projects. I completely agree. The Council agreed this was a good decision so opted to have our next work session focus on getting resident input on the different basement options. On September 18th we will have an open house and work session regarding the CoRec basement. The open house will be from 5pm-6pm and will give residents a chance to look around and talk with Councilmembers one on one. The work session will start at 6pm and residents will be encouraged to give feedback and thoughts on how we should proceed. Again, I would recommend that residents speak to Councilmembers beforehand and during the open house.

Review/Action on Communications Stipend
David Bunker presented this analysis. Currently, the City spends $36.05 per agenda packet per Councilmember for the printing and assembling of paper agenda packets. We average about three agenda packets each month. The suggestion is to stop printing paper agenda packets and instead provide each Councilmember with an iPad valued at $550 to receive an electronic agenda packet. The cost for this over a four-year term would be $11.50 per Councilmember per month, with an overall savings of $1180 per Councilmember over a four-year term.

After some discussion the Council decided that instead of having the City purchase iPad's for each Councilmember, it would instead give a technology stipend to each one and they would be responsible to purchase their own device. Each Councilmember will also decide whether to receive a monthly stipend in the amount of $11.50 per month or could choose to receive the entire $550 upfront if they needed it to purchase a device right away. While the full amount of the stipend will be provided upfront for any council member who needs it, each will be expected to reimburse the city for the remaining balance if they don’t complete a four-year term. The technology allowance will be prorated for the existing Council based upon the number of months left in their term.

The motion to approve the communications stipend passed. The press release can be viewed at http://www.cedarhills.org/node/1616.

Review/Action on Appointment of New Members to the Planning Commission
Cliff Chandler has resigned from the Planning Commission and Daniel Zappala is now a Councilmember and can no longer serve on the Planning Commission. David Driggs and Tonya Edvalson who have been serving as alternates will fill these two open seats. However, this agenda item has been postponed for a future time as David is reviewing noticing and application requirements to fill the open alternate spots.

Discussion on Commercial Zone Line Extension Agreements
Hart's Gas Station has installed water, sewer, and PI lines in their development and would like the City to enter into an agreement to protect these assets. They would like the City to agree that if another developer builds along those improvements and wants to connect to them then that developer will be responsible to reimburse Hart's for a portion of the improvements. Hart's has provided the City with a sample agreement. This agreement is being reviewed by our attorney who will provide us with a revised copy that is specific to Harts and Cedar Hills.

There was no executive session.

Council Meeting - August 7, 2012

Work Session

The Work Session was spent reviewing items on the agenda for Council meeting.

Council Meeting

Public Comment
Nobody signed up for public comment.

Consent Agenda
Minutes from the June 5, 2012 Council meeting and June 19, 2012 Council meeting and public hearing were approved.

City Reports
Rees - I am continuing to work on the State of the City newsletter and plan on having it out by the end of August or first part of September.

Martinez - Sign-ups are happening for tot soccer. Lego teams are meeting this month. The YCC was in charge of the family games for Relay For Life in Lehi and did a great job with it. Recreation staff needs direction from the Council on our fields. Other groups use our fields for sports programs and staff is wondering if we should charge for the use. Currently we do not charge, so we do not recover any costs for maintenance or damage. Mayor Gygi asked David Bunker to research how other cities handle this and to give a recommendation to the Council.

Augustus - Working with a contractor on drawings for the CoRec basement.

Gygi - North Pointe Solid Waste has renewed their contract with Waste Management. Utah Valley Dispatch is still looking for a new location.

Bunker (City Manager) - The Utah League of Cities and Towns annual conference is this fall in September. He and Mayor Gygi had a meeting with Pleasant Grove to discuss some of the issues. He met with Zions Bank to discuss low interest rates, but it still doesn't make sense to refinance the golf course bond at this point due to negative arbitrage issues.

Review/Action on Appointment of City Recorder
Colleen Mulvey was hired as our new City Recorder. She served as the Deputy City Recorder in Pleasant Grove for some time. The Council approved this appointment and Ms. Mulvey was sworn in by Gretchen Gordon.

Public Hearing on Boundary Adjustment (Earl Property)
Nobody signed up to comment during the public hearing.

Review/Action on Boundary Adjustment Between Pleasant Grove and Cedar Hills (Earl Property)
No action can be taken at this time. In order for this to be approved the homeowners need to have a surveyor create a plat map and must also paid the appropriate fees. The homeowner has not yet done either of these things. Pleasant Grove has had their public hearing so we are waiting on these two items before approval can be given.

Review/Action on Resolution Recognizing Arielle Martin
Arielle Martin is originally from Cedar Hills and was to compete with the U.S. BMX Olympic team in the 2012 London Olympics. During her last training run Arielle was badly injured and could not go to London. CM Augustus has had contact with her family and let them know the City would like to recognize Arielle for her hard work and determination. CM Augustus read the resolution making August 8, 2012 Arielle Martin day in Cedar Hills. The resolution was approved by the Council. A news article on this can be viewed at http://www.deseretnews.com/article/765595650/Cedar-Hills-declares-Aug-8-Arielle-Martin-Day.html.

Discussion on Vision and Goals for City Council and Staff
Mayor Gygi would like to work with the City Council on creating a mission statement for the City and then work together to set goals for the Council and staff. These should be focused on what our city should be known for. Mayor Gygi will be giving assignments out at a later time, and we will also be looking for resident feedback. More information will be provided in the September newsletter.

The Mayor and Council did go into Executive Session.

Council Meeting - July 31, 2012

Work Session

The Council had a joint work session with the Pleasant Grove Mayor and City Council. Mayor Gygi and Mayor Call will be meeting together over the next few months to discuss ongoing issues or concerns between the two cities to see if and how these can be resolved. We discussed coordinating the Family Festival and Strawberry Days each year so that the Cedar Hills Family Festival is one week before Strawberry Days, therefore allowing residents from each city to attend both instead of competing against each other.

The PG Council discussed their promenade, which is every Thursday night from 5pm-9pm during the summer months. They have approximately 80-90 vendors and live concerts. On September 8th is their annual Heritage Festival and they invited Cedar Hills to participate. We then gave them a tour of our Community Recreation Center and Grill.

Council Meeting

Public Comment
Nobody signed up for public comment.

Review/Action on Final Plan for Bridgestone, Plat C
Perry Homes submitted their final development plans to the Council after having gone through the Planning Commission. This is for the 8-plex units being built near Deerfield Elementary. The HOA in that area is very anxious for this development to be approved and move forward. After listening to the recommendations of the Planning Commission Perry Homes has agreed to remove the existing apple trees and replace with different trees and evergreens. The Planning Commission has also recommended an 8 foot sidewalk in that area instead of the existing 6 foot sidewalk, and has recommended that the back of the structures be changed to used a variety of materials and/or colors instead of the one color and material in the current drawings. Perry Homes has agreed to both of these recommendations, though said they would like the ability to use a combination of stucco, hardy plank, stone and brick as using only brick is very expensive.

Councilmember Augustus had some concerns with some of the materials being used as he felt it didn't match the rest of the neighborhood, which are mainly brick homes. His recommendation is that these units conform more with the look and feel of the rest of the neighborhood.

Final approval was granted with the recommendation of using materials more consistent with other homes in that area.

Appointment of City Manager
As per City Code 1-6A-1: The Mayor, with the advice and consent of the City Council, shall appoint a city manager. We received a total of 12 applications for this position and Mayor Gygi spoke with the 10 he felt were most qualified. He recommended that we appoint David Bunker to be the City Manager as he understands the history and issues of Cedar Hills and has done and excellent job as Acting City Manager since May of this year. The Council agreed and approved the appointment of David Bunker as City Manager subject to a mutually agreeable contract and removed the requirement that he must live within the city limits.

Mr. Bunker was sworn in by Deputy City Recorder, Gretchen Gordon. He also announced that a new City Recorder was hired. Colleen Mulvey will be filling that position. She has worked as an Assistant City Recorder for Pleasant Grove and is excited to join our team.

Adjourn
The Council did go into Executive Session.

Council Meeting - July 10, 2012

Work Session

Joint Work Session with Pleasant Grove
David Bunker has a meeting with the City Manager of PG to discuss many outstanding issues. The Council has proposed a joint work session with PG on July 31st to discuss these outstanding issues, which include items such as Harvey Street, the Manila Water Dissolution agreement, sewer connections on 4000 West, and a current PG resident who is hooked on to the Cedar Hills sewer system yet is not paying the bill. The hope of the Council is to get all of the issues on the table and find acceptable ways to work through them with the PG Council.

Agenda
The Council reviewed the agenda items for Council meeting.

Council Meeting

Briant Platt with Blaisdell and Church (our city attorney) first addressed the Council with the following prepared statement:

“In light of recent events, the City Council urges all participants in Council meetings to treat one another with civility and respect.  While individuals may feel passionately regarding certain issues and concerns under consideration before the Council, we encourage participants to avoid incendiary language and accusations that can quickly degrade the level of our discourse and the effectiveness of our interaction.   Due to threats by a resident made in a recent Council meeting, the City Council also takes this opportunity to affirm that City Council meetings are legislative meetings.  The Cedar Hills City Council has asked the City Attorney to provide direction on when statements in Council meetings may subject the speaker to liability for defamation.  The City Attorney has advised the City Council that statements made by the City Council members in legislative proceedings are absolutely immune from liability for defamation if the matter is reasonably related to the proceeding.  It is an open question under Utah law whether members of the public are afforded the same absolute immunity or are instead subject to a lesser, qualified protection from liability for defamation relating to comments made during a Council meeting.  Accordingly, the City Council encourages all participants in Council meetings to treat each other courteously and respectfully, and invites all members of the public to address any issue on its agenda and express their opinions regarding what the City Council should do and why in a civil and thoughtful manner.”

Acting Mayor Martinez emphasized the desire for the public comment period to be used to address the Council with concerns, but that things should stay civil and respectful.

Public Comment
Ken Cromar - Mr. Cromar expressed his happiness about the clarification in the most recent newsletter regarding a statement made in Sept 2011 on the golf course finances. He feels the September 2011 newsletter impacted the election. He cares about the correct information getting out. He would like the City to republish the clarification on the front page of the next newsletter instead of where it currently is. Mr. Cromar filed a complaint with the Utah County Recorders office against resident Marisa Wright and provided a copy to the Council.

Pat Weber - Mrs. Weber purchased a home next to Timpanogos Cove park and is having several issues. People are loud late at night, even until 1:00am. She has seen drug deals occurring and people having sex in the park. Things have been stolen from her car and garage. She has not seen a police presence and is requesting a consistent patrol so people will get the message to leave when the park closes at 10:00pm.

Consent Agenda
The minutes from the May 15, 2012 town hall and Council meeting and from the June 5, 2012 Council meeting were approved.

City Reports
David Bunker - Harts Gas Station is being built and is planning on a completion end of September or first of October. The new fiscal year started on July 1st.

CM Jackman - Attending an emergency meeting with LPPSD on the Quail Fire. Utah County, Unified Fire, and the Forest Service also helped control this fire. Approximately 2200 acres were burned with about 200 acres being in the district. The district will be responsible for approximately $31,000 of the final bill. Cedar Hills' portion is about 1/4 of that amount, but may be less pending the results of the investigation. Acting Mayor Martinez will serve on the LPPSD board until a new mayor is appointed. The Public Safety Bldg is now fully dedicated to public safety as all City employees have moved to the Public Works Bldg. He is working with Chief Freeman on how that space will be utilized.

CM Gygi - NP Solid Waste continues to discuss the contract with Waste Mgmt. Utah Valley Dispatch is still looking for a new location.

CM Augustus - Planning Commission met. They have some suggestions on the Bridgestone project and will be presenting to the Council at a later meeting. Still researching sheds and other items located on setbacks on residential lots. Some members of the Planning Commission would like to opt out of receiving compensation.

CM Rees - July Yard of the Month winners are on the website. City Facebook page is now live and Twitter account will be next. Email contest was announced in the July newsletter. The goal is to have multiple avenues of communication with residents so that messages can get out quickly and frequently. CH resident wants to work with Highland and Alpine to put together a parade for the LPPSD firefighters. This effort will be led by residents.

CM Martinez - YCC met and the new group will be doing a team building activity. Tot soccer and flag football registration is starting soon. AFPD is kicking people out of Timp Cove park every night and giving tickets, but people just come back. Ordinance needs to be changed to say the park closes at 10pm (current ordinance says at dusk) so AFPD has more authority to enforce. Talked about options to lock the park at night. She will work with David on ways to fix this issue.

Discussion on Metropolitan Water District Easement Exchange
Ammon Allen with MWD presented. This district was created in 1936 by Salt Lake City to partner with the Federal Government on the Provo River Project. This 42 miles of aqueduct provides drinking water to SLC. In 2006 the U.S. Congress gave the title of these lands to the district. In 2000 the developer had a survey done, which shows the correct easement. However, the County recorded the wrong location of the easement (David Bunker concurs with this) leaving some residents in Canyon Heights with an easement in their backyard. While the former city manager told these residents it was fine to build pools or retaining walls in their backyards, the reality is that they cannot build on this easement. MWD would like to work with Cedar Hills to move the easement east where there is no development. This would move the easement between 25-50 feet east of where it is currently.

The Council asked Mr. Allen about landscaping or creating a trail on the easement. Mr. Allen stated it is OK to build a trail and OK to landscape on the easement. MWD would want a gate closing access to the easement on both sides so that only bikes and pedestrians could access - no motor vehicles or ATV's. Landscaping is OK, including grass and sprinklers, provided that it can be easily moved with excavation equipment and the City understands MWD is not responsible for any repairs if access is needed.

The Council advised David Bunker to work with Mr. Allen on language for an agreement as all agreed that moving the easement is a good idea.

Review of City's Emergency Action Plan
LPPSD currently has an emergency action plan that is being utilized for the City, but the City does not one. David Bunker will provide the Council with a copy of LPPSD's plan. Mr. Bunker will work with LPPSD, AFPD, the Public Works department, and the Council to create an emergency action plan for the City.

Review/Discussion on Consideration of Bond Refinancing
There was a lengthy discussion on this topic at the May 15th Work Session and my notes can be found at http://jenneyreeschcc.blogspot.com/2012/05/council-meeting-may-15-2012.html. Mr. Edminster came to present again. He still advises not to refinance the GO bond at this time due to negative arbitrage. Wells Fargo is still willing to refinance the PI2 bond if the Council chooses to do so. CM Gygi and CM Jackman will continue to work with the Finance Committee on options and present suggestions at a later time.

Discussion on Recreation Center Basement
Final draft of plans for basement will be presented to the Council at a later meeting. Programming is still being discussed by the recreation team but that won't hold up plans for build out.

The Council did go into executive session.

Council Meeting - June 19, 2012

Work Session

There were no specific items for work session so the Council discussed the items on the agenda for Council meeting.

Council Meeting

Public Comment

Ken Cromar - Mr. Cromar stated he felt like a victim at the May 15th Council meeting as many residents complained about him. He warned the Council about potential lawsuits if he continues to feel attacked by what he considers propaganda. Compared this situation to Nazi propaganda. Feels the public comment on May 15th was a parade of misinformed individuals. Mr. Cromar was upset that some residents were given more than three minutes to speak though he was kept to three minutes. Feels he was defamed. He cautioned the Council against approving the May 15th meeting minutes until after legal counsel was consulted. He also warned the Council that on June 13th he copyrighted his name and that any unapproved use of his name would result in a fee of $500,000 to be paid to him. He warned the Council to not destroy any of the emails that he is requesting.

Paul Sorensen - Mr. Sorensen read a letter he prepared stating that on May 1st the Council meeting started 15 minutes late and that an illegal meeting between Council members occurred during this time. He wants a detailed account of what was discussed during that 15 minutes. He is also sending this complaint to the Utah County Attorney. **The 15 minute delay occurred because Councilmember Gygi was very kind and brought in a pie and ice cream to celebrate my birthday. The Council did meet in the grill to eat pie and ice cream and to wish me a happy birthday. Grill staff were in and out during this time and also included.

Marisa Wright - Mrs. Wright is upset about the additional money being included in the budget for legal fees due to residents who continue to bring forth lawsuits. She is disgusted that residents have to pay for this. Mrs. Wright stated she ran a background check on Ken Cromar and found out that he owes $800,000 in taxes and is being sued by the IRS. She said he doesn't pay his share yet continues to cause problems in our city.

Consent Agenda

Minutes were approved for the following Council meetings: April 3, May 1, and May 8.

City Reports

CM Augustus - No recent meetings with Planning Commission. He is working with David Bunker on Phase II of the CoRec.

CM Gygi - North Point Solid Waste met and are looking at new contract with Allied Waste. Utah Valley Dispatch is looking for a new physical location.

CM Martinez - Family Festival was amazing and she appreciates the help of staff, Council, and the many volunteers.

CM Rees - City will announce a contest to obtain emails from residents. This contest will take place in July, August, and September. More information will be provided on the website and in the newsletter. CM Rees and Martinez will be working together on goals and vision for the City.

Review/Action on Acceptance of Agreed-Upon Engagement Report Squire and Associates was hired to do a forensic audit of the City's financials after recent charges were filed against Mayor Richardson. These charges have nothing to do with his actions as Mayor; however, the Council felt it would be appropriate to have this additional audit done to reassure residents that nothing inappropriate has occurred. Squire and Associates looked into four different areas and their findings are as follows:

1. Squire reviewed all charges the Mayor made with his City credit card (there were only two) and verified proper documentation was included. They determined there were no instances of noncompliance with the City's policies and procedures.

2. Squire verified that the Mayor is not an authorized signatory on any City bank accounts. Additionally, they looked at online bank transfers that occurred between 2009 and 2012. They only found one exception - a transfer of money from the General Fund to the Cottonwood Well Capital Facility Replacemet Fund, which did not reach the intended account. Research found that this money had been transferred to the Cottonwood Improvement District's account, but was returned to the City on the next day. Squire commended city personnel for finding this error so quickly and having it resolved within one day.

3. Squire obtained the City's procurement policies and related internal control documentation. They sampled 450 disbursements from July 1. 2009 through May 21, 2012 and found three findings. Squire stated that having only three findings out of 450 is "amazing". The findings were:

a. Two check disbursements only had one of the two required signatures. One was to Black Clover for $49.25 and the other was to Tanner Lacey for $40.00.

b. One check had no signatures, that was to Home Depot for $523.61. Research on the check to Home Depot showed that payments made on the Home Depot credit card are generally done via EFT. The City's accounting system auto generates a check which is then voided. In this instance the unsigned check was accidentally mailed to the vendor, which was presented to the bank and honored by the bank.

c. One check did not have a purchase order as required by the City's policies. Further research showed that this check was paid to a relative of the former City Manager for services performed under contract. Other City personnel refused to sign the purchase order based on their concern of a potential conflict of interest.

4. Squire reviewed the transfer and use of $371,726 of impact fees that was transferred from the Capital Projects Fund to the Golf Course Fund. Their research shows that the dollar amount transferred matched the amount expended on the construction of the CoRec. Squire determined the transfer of this money is compliant with applicable accounting standards.

The Council approved the acceptance of these findings.

Public Hearing on Fiscal Year 2012 Budget Amendments

Nobody signed up for comments for the public hearing.

Review/Action on Fiscal Year 2012 Budget Amendments

Five budget amendments needed to be made for the current fiscal year.

1. Transfer of $500,000 from the General Fund to the Capital Projects Fund - State law mandates a maximum amount of money that is allowed to be in the General Fund at the end of the fiscal year. In order to be compliant it was recommended that we approve this transfer of money from the General Fund to the Capital Projects Fund.

2. Transfer of $8,000 from property taxes to pay for forensic audit - The forensic audit discussed above was an unexpected expense. The money used to pay for this came from an overall increase in property tax revenue. Our increase in property tax revenue is a result of us having a 96% collection rate for FY 2012, which is higher than usual.

3. Transfer of $4,000 from property taxes to pay for contract labor used for building plan checks and inspections - The City has been using contract labor for these plan checks and inspections as we no longer have a Building and Zoning official.

4. Transfer of $8,000 from property taxes to fund separation agreements - Severance packages for Konrad Hildebrandt, Kim Holindrake, and Brad Kearl were not anticipated in the 2012 budget so this required a transfer of funds.

5. Transfer of $50,000 to be used for the Public Works Building - All City staff are moving to the Public Works building and the Public Safety Building will be used only by Lone Peak Public Safety. This required some reconfiguration of the basement and parking areas of the Public Works Building. The $50,000 was transferred from the money set aside for the building of a Civic Center.

These budget amendments were approved.

Review/Action on Changes to the Fee Schedule

A study was performed by Bowen & Collins on the City's water, sewer, PI, and storm drain accounts to determine if our rates are accurate. The study can be found at http://www.cedarhills.org/sites/default/files/utility-rate-study-2012.pdf. Bowen & Collins did recommend increases to all but the PI fund. I included a breakdown of this in a prior post as well.

CM Jackman previously recommended that we adjust the culinary water and PI rates to more accurately reflect the actual cost of these items as currently the PI revenue subsidizes the culinary water fund. Becky Tehero recommended we not make this change at this point as we have around 130 new residents who are not currently connected to the PI system and would be greatly affected by this change to the culinary rates. The Council agreed to not make this change all at once but gradually over time.

The Council approved the utility rate increases suggested by Bowen & Collins. Please feel free to contact any Councilmember and/or the Mayor with any questions.

Review/Action of the 2012 Certified Tax Rate

Traditionally the City has kept the tax rate the same each year instead of adopting the certified tax rate suggested by the County. This meant that as property values dropped the City received less property tax revenue and as values went up the City received more property tax revenue. For the past few years the City has received less revenue as values have gone down. The City tax rate is .003153. The County is recommending .003183 in order to keep 2013 revenues consistent with what was collected in 2012. The Council discussed this and concluded that we would go with the County Certified Tax Rate, which means property taxes will not go down this year. The Council reached this decision as we are already cutting services to residents to pay for additional legal fees and we felt it would be very difficult to cut even more out of the budget by keeping the tax rate at .003153 and lowering revenue.

Review/Action to Adopt the Fiscal Year 2013 Budget This has been a topic for discussion during several Council meetings. A few of the most recent changes:

1. $95,000 transfer from the CARE tax fund to the Capital Projects Fund. $75,000 will be used to pay for equipment for the CoRecc and $20,000 will be used to construct restrooms and a storage facility at Mesquite park.

2. An increase from $75,000 to $115,000 for legal services. The original budget was $75,000 in 2012 but the Council had to approve a budget amendment to increase the 2012 amount to $115,000. Because we continue to be threatened with legal action and complaints we have no reason to believe that our 2013 legal expenses will be any less than they were in 2012. In order to increase the budget for legal expenses the following items were cut from the budget:

a. Park maintenance was reduced by $5,000

b. Contract labor for building and zoning was reduced by $5,000

c. Eliminated the resident Decisions Survey

d. Family Festival budget was reduced by $10,000

e. Utilities expenses for the Public Safety Building were reduced as we are moving all staff to the Public Works Building. However, LPPSD has not included this additional expense in their budget so we are unsure how this will work at this point.

The FY 2013 budget was approved.

Review/Action on Fireworks Restrictions

Utah law changes the dates for fireworks to be June 26th through July 26th. The Lone Peak Public Safety District has expressed concern about the very dry conditions and the possibility of fires due to fireworks. LPPSD recommended a ban of all fireworks and open fires on the East side of Canyon Road. After discussion with the Fire Marshal the Council agreed to ban ALL fireworks east of Canyon Road but will allow open fires. LPPSD will be posting signs in the firework closure areas and will also supply all stores in Cedar Hills, Alpine, and Highland with flyers to be handed out stating guidelines, laws, and penalties.

The Council did have an executive session.

Council Meeting - June 5, 2012

Work Session

Pleasant Grove Strawberry Days Royalty
The PG Royalty came with an invitation to Strawberry Days and also brought a delicious strawberry cheesecake. Strawberry Days occur the week after our Family Festival. Councilmember Martinez asked each girl to talk about the pageant and what entailed. Each girl said the main focus was on the service provided to their community. These service projects were focused on providing education on a variety of topics such as healthy eating, breast cancer, and the dangers of distracted driving.

Review of Location of Sheds on Corner Lots and Fencing Requirements
At a previous Council meeting two residents came to discuss a change in the ordinance that would allow them to place a shed in the setback of their property. Mayor Richardson explained that corner lots have a larger setback so there is less usable space under the current rules. The Council has asked the Planning Commission to come up with suggestions on ways corner lots can better utilize these setback areas and to present their suggestions to the Council.

The fencing discussion came up after a resident on Sugarloaf asked to build a privacy fence in their backyard. Currently these homes have a wrought iron fence that goes along the walking trail. There is some confusion as to whether this is due to a development agreement, CC&R's, and/or city ordinance. Greg Robinson will do some research to determine what is currently setup for this street and come back to the Council. This may also be something that goes to the Planning Commission for additional suggestions.

Council Meeting

Public Comment
Craig Clement - Mr. Clement came to express his appreciation to the Mayor and Council for the work being done.

Rob Crawley - Mr. Crawley came to discuss the golf course financials analysis he put together last year during the election and to defend his work. He feels his numbers were and are accurate based on the information he has been provided. He recently became aware of Konrad's rebuttal to his analysis and says he has not seen any new numbers that change his analysis. He is happy to be serving on the Golf Course Finance Advisory Committee and feels clarification will come through this committee.

Consent Agenda
Minutes from the April 3rd, May 1st, May 8th, and May 15th meetings are continued until the next meeting as it has been requested that the public comment from the May 15th meeting be transcribed verbatim. The resolution indicating the intent of Cedar Hills to adjust the boundary with PG for one residence was approved.

City Reports
David Bunker - A water report was sent to every resident with their June utility bill. Ames Construction has been awarded the project to put in an underground pedestrian walkway under Canyon Road as part of the canal project. They are starting this week (I believe they have already started) and this will require some closing of Canyon Road. Canyon Heights Road will also be closed and residents in that area will only be able to access via Box Elder.

CM Martinez - Asked Miss Northern Utah County to discuss her pageant experiences and her service projects. She will also be helping with the Family Festival. Rec center classes are going well. YCC is having elections soon. Family Festival begins this week.

CM Jackman - LPPSD met and approved the budget but it doesn't include changes on handling rent. The revenue loss from ambulance services will need to be addressed within the next few years. The Finance Committee met and decided to close the snack shack at the golf course so golfers will be directed to the grill at the rec center.

CM Rees - Beautification Committee announced five yard of the month winners and pictures are available on the City website. City Facebook page will be up soon now that the Council has agreed to how it will function. City newsletter will be available in the rec center. We will start a content to obtain resident email addresses for better communication. Contest winners will receive a credit on their utility bill.

CM Augustus - Planning Commission has not met since last report.

Review/Action on Acceptance  of Audit by Squire & Company
This item was continued as the audit was not yet complete.

Review/Action on Approval of Final Utility Rate Study
No changes were made to the final utility rate study and details of the recommendations made at the May 1st meeting can be found on my blog at http://jenneyreeschcc.blogspot.com/2012/05/city-council-meeting-may-1-2012.html. Some important points for this approval:

• Adopting the study does not formally adopt the fee changes, this is done at a later meeting if it is decided to go that direction
• The 2013 budget revenues assume the rate increases recommended are approved
• Suggested fee increases do not take into account any TSSD increases, which the City has no control over

CM Jackman asked the Finance team to revise the utility rates so that each entity (water, sewer, PI, storm drain) covers its own costs. Currently the PI system revenues subsidize the water system. CM Jackman would like the revenues and expenses to be consistent in covering the actual costs for each system instead of having one subsidize the loss of another. This wouldn't change the overall amount paid by residents, it would just more accurately reflect how much is being paid for each service.

Public Hearing on FY 2013 Budget
Nobody signed up to comment at the public hearing.

Review/Action on Resolution Adopting FY 2013 Budget
Final approval was not made as changes are still being made to the budget and we are also waiting on property tax numbers from the County. Items discussed at this meeting:

• Line item 10-33-400 (LPPSD rent) - This shows more rent revenue coming in from LPPSD as all city employees are moving to the Public Works Bldg. However, this hasn't been approved by LPPSD.
• Line item 40-95-200 - Money needed for phase 2 of the recreation center, which will finish the basement
• Line item 40-95-201 - Money needed for phase 3 of the recreation center (discussions are to build a splash pad at the CoRec)
• Line item 10-60-120 - This increase is for two part-time employees. One for business licensing and one for zoning enforcement.
• Line item 75-35-300 - This is an estimated subsidy for the golf course in the amount of $65,000. Previously the City was accruing what was considered a loan from the City to the golf course. This seemed to cause confusion so a dollar amount will now be shown on the budget as transferred from the General Fund to the Community Recreation Fund to show how much is subsidized each year. The Council has asked the Finance team to change the wording for this line item to clearly reflect it is a subsidy.
• Line item 10-40-305 - Legal services are projected to be $75,000 for 2013. However, the actual amount spent in legal fees for FY 2012 to date are closer to $115,000. Since we are continually threatened with additional litigation there is no reason to believe that our legal expenses for 2013 will be less than 2012. The Council has asked the Finance team to revise this number to $115,000 in anticipating of further legal proceedings.
• The Council has asked the Finance team to come back with suggestions on what should be cut from the budget if expected revenues are not met. Preliminary suggestions from the Finance team include the 2013 Decisions Survey, park maintenance, library reimbursement, Family Festival parade and carnival, and communications.

Release of Durability Bond for Walmart
The Mayor and City Manager did a walk through with Walmart to inspect the improvements that have been made. The suggestion was made to authorize the release of the durability guarantee. This was approved.

Discussion on Completion of the CoRec Basement
Phase two of the CoRec is the completion of the basement for additional classroom space and cardio equipment. There is currently $180,000 of recreation impact fees left after phase one as well as $70,000 in CARE tax revenue. A final approval has not been made on how to spend these funds; however, the Council does agree that finishing the basement is a high priority. Each Council meeting has consisted of a lot of discussion on what will be included in the basement and how it will be funded. Mayor Richardson suggested the Council agree to work on a budget for the construction now and the equipment at a later point. The goal is to have the basement built by Labor Day. CM Augustus and Martinez will work with staff on designing the layout of the basement and to determine construction costs.

Discussion on a Civic Center
There is currently $500,000 in unrestricted funds that have been set aside for the building of a new Civic Center. This is another item that has been discussed a number of times. The Mayor recommended, and the Council agreed that these funds should not be used for a Civic Center but instead on community wants, such as a splash pad and for the CoRec.

Goals and Focus for City Council and Staff
Mayor Richardson asked me and CM Martinez to work together to come up with a plan for the goals and focus for the City.

The Council did have an executive session. The meeting was then closed.

Council Meeting - May 15, 2012

Work Session
The work session was a town meeting regarding the possible refinancing of two bonds - the golf course bond and one of the pressurized irrigation bonds (PI2). This possible refinance would be to lower our interest rates, which is available to us due to our recent increase in bond rating. Our financial advisor, Marc Edminster, came to present options.
The current PI2 bond has an approximate balance of $900,000. The current interest rate is 5.99% and cannot be called without a penalty. Wells Fargo is offering to refinance that bond and is giving two options:

1. Fixed rate of 3.08% for the first seven years, variable rate after that,
2. Fixed rate of 2.92% for the first five years, variable rate after that

Both options would also allow us to call the bond at anytime without penalty. Having a lower interest rate would save us money, but the risk is not knowing what the variable rate would be after the fixed rate expires. It most likely only makes sense to refinance this bond with one of these options if the bond could be paid off during the fixed rate period, however, this would most likely only happen through an increase in fees. My personal opinion is to not refinance this bond at this time as the utility rate analysis performed recently is already recommending a rate increase to cover future improvements and growth. Increasing utility rates and increasing fees to pay off the bond more quickly would be a sizable increase for residents. However, this is only in the discussion phase at this point and more research is being done by the finance team and committee.

The GO bond for the golf course was issued and sold in the public markets with no ability to prepay for ten years, which means prepayment cannot occur before 2016. Mr. Edminster was concerned about the negative arbitrage opportunity so recommended waiting at least five months before doing a refi on this bond. The savings realized can either be taken upfront for one year or in small amounts yearly over the life of the loan. This savings would be on property taxes.

Council Meeting

Public Comment
Ken Cromar - Mr. Cromar again discussed the November 6, 2011 Daily Herald article written by Caleb Warnock regarding the golf course. Mr. Cromar would like a newsletter correction regarding the golf course financials. He also expressed concern that his letter read at a recent Council meeting was not included in the official minutes. He has contacted the state records ombudsman regarding GRAMA requests he has made.
   **The Golf Course Finance Advisory Committee has met once already and is continuing to meet to review the golf course financials and to present a comprehensive overview of where things stand. This information will be provided to residents once it is complete.

Jan Streeter - Ms. Streeter read an open letter to Mr. Cromar and his supporters. She reminded him that he did not get enough votes to be on the Council. She believes the golf course is an asset to the city even though she is not a golfer. She voted for Councilmembers Gygi, Augustus, and Rees because she felt they had the best ideas for the long term. She feels Mr. Cromar's views discourage business and that his approach shows lack of respect for others.

Robert Wetzel - Mr. Wetzel wanted to express his support for the Council and Mayor. Cedar Hills is a beautiful community. He appreciates the work of the Council, he loves WalMart, and the loves the city. Said Mr. Cromar does not represent him.

Ken Kirk - Mr. Kirk expressed appreciation for the Mayor and Council. He is appalled by those who do not want the Mayor to have an opportunity for justice through the legal system. He condemns the attempts to ruin the Mayor and our city through the media. He asked Mr. Cromar to stop the attacks.

Kim Groneman - Mr. Kirk read a letter from Mr. Groneman. He is upset over the money and staff hours being spent because of attacks made by Mr. Cromar. City does yearly audits and these are sufficient, there is no need for an additional audit. Without these attacks the city staff could focus on more important things. Residents voted for the City Council to make important decisions. Ken Cromar doesn't represent the majority of residents.

Charelle Hagan - Ms. Hagan wanted to recognize the hard work of the Mayor and Council. She previously served on the Council and knows the golf course has always been an issue. It is OK to not agree, but it is upsetting to see the personal attacks that are happening. It is hurting the city and families. She is opposed to any petition asking for the Mayor to resign.

Cameron Tovey - Mr. Tovey is tired of seeing the city in the news. He voted for not defaulting on the golf course bond as he believes in paying your debt and honoring commitments. He is disgusted by the attempts to ruin the lives of elected officials. He is against the petition asking the Mayor to resign. GRAMA requests are costing too much time and money. Feels men who have been arrested and charged with tax evasion are not qualified to serve on the Council.

Wanda Badger - She appreciates the Council, loves the new Community Recreation Center, and appreciates all the work being done.

Jim Perry - Mr. Perry served on the Council for eight years. While on the Council an investigation was launched on a former mayor due to allegations from this same small group but nothing was ever found. This small but vocal group does not represent the silent majority.

Tonya Edvalson - Ms. Edvalson appreciates the work of the current and past Councils. She is proud of Cedar Hills and feels safe and accepted here. Loves the sense of community. Says the city already does audits and nothing of concern has been found. She would like Mr. Cromar to stop the attacks, they are unwanted. She feels it is unfortunate the media doesn't want to tell her story.

Zonda Perry - Mrs. Perry lived in Cedar Hills for 11 years. Councilmembers and Mayor sacrifice a lot to serve. The minority hurts others by the way they go about things. Citizens vote every two years and have made their voices heard. It is unfortunate how much money is being spent to defend against lawsuits.

David Jackman - Doesn't want Council to spend a lot of money on a forensic audit and wants to sign a petition in support of the Mayor.

Darryl Acumen - Loves Cedar Hills and WalMart. He is the state chair for the Republican Party for one area of Cedar Hills and wanted to get a waiver on the fee in order to go door-to-door for voting purposes. Gretchen will work with Mr. Acumen on this.

Nate Cramer - Supports the Mayor and Council and their efforts. Feels the Mayor has always been transparent in discussions. He sees the Mayor wants real world solutions to our issues.

Angela Johnson - Hoped Mayor would step down after federal charges were filed, she feels that would be easier for the City. She supports a forensic audit. She was concerned over an event in 2011 where Kim Holindrake told the Mayor that there was not a current contract on file for Konrad Hildebrandt and was later reprimanded.

Consent Agenda
The minutes from the April 3, 2012 were already approved at a prior meeting and there were no new minutes to approve.

City Reports
David Bunker - In the process of approving the 2013 budget. A public hearing for the budget will be scheduled. Family Festival is next month.

CM Gygi - Attended a meeting for North Point Solid Waste and contract with Allied is coming up. Utah Valley Dispatch is encouraging other cities to join. Working with the Finance Committee on changes to the budget.

CM Jackman - Finance Committee is also discussing refi of bonds. He is attending an LPPSD meeting this week.

CM Rees - Three residents have joined the Beautification Committee and the committee met to discuss a variety of new plans.

CM Augustus - Has a Planning Commission meeting this month.

Mayor Richardson - On behalf of CM Martinez reported that rec classes start on May 22nd.

Discussion on Fiscal Year 2013 Budget
The Council has been reviewing portions of the budget for the past several meetings and the overall budget was presented by Rebecca Tehero. She is still working with Jim Madsen on getting some better and more accurate figures for the golf course. One thing that is changing on the golf course financials is a new line item which will show a dollar amount transferred to the golf course from other funds to subsidize any losses. In the past the golf course considered any losses a loan from the City but this seems to have caused confusion and concern. Moving forward the financials will show any loss as a subsidy from another fund so residents can easily see this information.

Review/Action on Boundary Adjustment on Earl Property
A resident of Pleasant Grove with property located on 9540 N Canyon Road has requested a boundary adjustment to move their property into Cedar Hills. They have already submitted the required paperwork to PG to authorize a public hearing. The Council voted to approve this resolution indicating the intent to adjust the boundary accordingly and authorizes a public hearing to take place.

Review/Action on Parameters Resolution for Refinance of PI2 Bond
As mentioned above, the town meeting held earlier discussed the possible options for a refinance of this bond. A parameters resolution does not approve the refi or obligate us to move forward, but it starts the process so a public hearing can be held. The parameters resolution was approved.

Review/Action on Parameters Resolution for Refinance of GO Bond
Same as above.

Review/Action on Forensic Audit
The Council had requested that Ms. Tehero request bids on a forensic audit after charges were filed against Mayor Richardson. The charges filed have nothing to do with city finances or any of his work as Mayor; however, we understand it has caused many questions. Ms. Tehero reviewed the bids and felt the bid received from Squire & Co. most closely aligned with what the Council wanted to review. The proposal is for $7,600 and would audit the following from the past three years:

• Allegations made against the Mayor by Mr. Severn and Mr. Sorensen regarding use of impact fee money,
• Review the policy on disbursement of funds,
• Verify that controls are working,
• Review the accounting for the golf course
• Review the three transactions Mayor Richardson made on his city credit card

Public comment was received during this time:

Ken Cromar - Wants the audit done. Says insiders are feeding him information and that is how he found out about Konrad hiring his son-in-law.

Jerry Dearinger - Wants to make it clear the audit was not suggested by his group, he was asked for his opinion by CM Gygi. He wants the audit to go back farther than three years.

Ken Kirk - Outside audits are done each year and nothing illegal has been found. Doesn't want audit. Doesn't want Council to try to appease Ken Cromar or his group as they won't believe the results any way.

Angela Johnson - It wasn't Mr. Cromar's idea to do an audit. Feels the $7,600 audit is not enough. The research she's done for the type of audit she feels we need would cost $100,000 per year audited.

Charelle Hagan - OK with audit, but don't spend $100,000. Asked Council to please use taxpayer money wisely.

Debbie Severn - She believes many of the allegations are factual and wants the Council to answer them. Mayor Richardson stated that Mr. Severn never came to talk with him prior to filing the allegations and he would've met with him any time. Will still meet with Mr. and/or Mrs. Severn any time they want.

Marisa Wright - Doesn't want audit. Says Mr. Cromar misleads residents and won't trust audit results anyway.

The Council approved the audit 3 to 1. CM Gygi voted against. it.

My thoughts - I am not worried about trying to appease a small group of residents. I fully understand that anything we do will never be considered good enough for some. My vote had nothing to do with appeasing a few. Instead, I was thinking of the many residents in Cedar Hills who aren't as politically involved but have read some very disturbing articles in the media recently and are wondering what is going on in our city. I've had several residents approach me with concerns over flyers they've received and news articles they've read. I also thought it was very important to follow the advice of our City Attorney who strongly recommended the forensic audit. It was these two considerations that had the greatest impact on my vote.

Discussion on Civic Center
There is no new information on this so the discussion will be continued at another time.

Appointment to North Utah Valley Animal Shelter
Brad Kearl was the CH representative on this Board. CM Gygi was appointed by the Mayor to now serve as the representative.

Adjourn
The Council did go into Executive Session.