CITY OF OREMexe.orem.org/minutes/CCMin/2001-2050/2012/2012-06-12… · Web view12/06/2012 · CITY OF OREM. CITY COUNCIL MEETING. 56 North State Street Orem, Utah. June 12, 2012

CITY OF OREMCITY COUNCIL MEETING

56 North State Street Orem, UtahJune 12, 2012

5:00 P.M. STUDY SESSION

CONDUCTING Mayor James Evans

ELECTED OFFICIALS Councilmembers Hans Andersen, Margaret Black, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner

APPOINTED STAFF Bruce Chesnut, City Manager; Jamie Davidson, Assistant City Manager; Greg Stephens, City Attorney; Richard Manning, Administrative Services Director; Stanford Sainsbury, Development Services Director; Mike Larsen, Public Safety Director; Karl Hirst, Recreation Director; Chris Tschirki, Public Works Director; Donna Weaver, City Recorder; and Rachelle Conner, Deputy City Recorder

REPORT – Annual Gang Loitering Free Areas ReviewNick Thomas, Gang Task Force, reviewed statistics from the previous year. Things have been relatively mild; however, there have been some robberies in Orem. They were able to make arrests in reference to those crimes. The number of graffiti reports has decreased over the past few years. In 2007 the total number of gang-related crimes was 491. In 2011 the total number was 118. They are also working with Utah County Major Crimes Task Force to keep the numbers down.

REVIEW OF AGENDA ITEMS

The Council and staff reviewed the agenda items.

CITY COUNCIL NEW BUSINESS

Councilmember BlackMrs. Black indicated that over a year ago Jose Enriquez spoke with the City Council about the Community of Friends Program. She said she has been asked to serve as a member of their board.

The Council adjourned at 5:55 p.m. to the City Council Chambers for the regular meeting.

6:00 P.M. REGULAR SESSION

CONDUCTING Mayor James Evans

City Council Minutes – June 12, 2012 (p.1)

ELECTED OFFICIALS Councilmembers Hans Andersen, Margaret Black, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner

APPOINTED STAFF Bruce Chesnut, City Manager; Jamie Davidson, Assistant City Manager; Greg Stephens, City Attorney; Richard Manning, Administrative Services Director; Stanford Sainsbury, Development Services Director; Mike Larsen, Public Safety Director; Karl Hirst, Recreation Director; Chris Tschirki, Public Works Director; Donna Weaver, City Recorder; and Rachelle Conner, Deputy City Recorder

INVOCATION / INSPIRATIONAL THOUGHT Levi Hilton, Scout Troop 986

PLEDGE OF ALLEGIANCE Samuel Seegmiller, 986 Scout Troop

APPROVAL OF MINUTES

City Council Work Session of May 15, 2012, and the City Council Meeting of May 22, 2012Mrs. Street moved to approve the minutes of the May 15, 2012, City Council work session and the May 22, 2012, meeting of the Orem City Council. Mr. Andersen seconded the motion. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner.

MAYOR’S REPORT/ITEMS REFERRED BY COUNCIL

Upcoming EventsThe Mayor referred the Council to the upcoming events listed in the agenda packet.

Upcoming Agenda ItemsThe Mayor referred the Council to the upcoming agenda items listed in the agenda packet.

Appointments to Boards and CommissionsMayor Evans recommended Wally and Fran Fairbanks to serve on the Beautification Advisory Commission.

Mrs. Black moved to appoint Wally and Fran Fairbanks to serve as members of the Beautification Advisory Commission. Mrs. McCandless seconded the motion. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner. The motion passed unanimously.

Recognition of New Neighborhoods in Action OfficersNo new Neighborhood in Action officers were recognized.

City Council Minutes – June 12 2012 (p.2)

REPORT – Senior Citizen Advisory Commission Karl Hirst, Recreation Director, indicated the City of Orem has a very large and active senior population. The City Council has supported that population with a beautiful Senior Friendship Center and continuous support of its programs and activities. The Senior Friendship Center runs with a large group of volunteers. Part of those serve on the Senior Citizen Advisory Commission. He introduced Kay Bradford as the chair of the commission.

Kay Bradford, chair, said the seniors took a tour of the City Creek Center that day. They shopped and had lunch at the Blue Lemon. She recognized staff members for the great job they do for the seniors. She said there are 1,500 senior members who are involved at the Senior Center, and there are many activities and tours available for the seniors to participate in.

RECOGNITION – Orem High School Girls Track Team – 4A State ChampionsMr. Seastrand read a proclamation recognizing the Orem High School Girls Track Team for their efforts in winning the 4A State Championship.

PERSONAL APPEARANCES

Time was allotted for the public to express their ideas, concerns, and comments on items not on the agenda.

Bob Wright, resident, read a statement asking the City Council to put the property tax increase on the ballot in 2013 for the residents to vote on.

Anita Raymond, senior resident, expressed concern that she will be taxed out of her home. She asked whether there is any move to put a cap on the tax amount senior citizens who have lived in their homes for many years have to pay. She said she is against any new taxes.

Peggy Burdett, resident, said Orem owns two golf courses that compete with each other. The information available to the residents is very limited. The City is somehow involved in the Sleepy Ridge Golf Course with tax dollars. She suggested that someone should look into this. The City could sell the golf course property to raise money for the UTOPIA payment. She asked the City Council to email her with their suggestions for an alternative to a property tax increase. She said a property tax increase in this economy is not a good idea. There are many residents who are unemployed and there are many voting senior residents who will be impacted by this. She questioned how many tax dollars are being spent on the golf courses. She would like that money put back into the budget so the City does not have to raise property taxes.

Charles Hart, resident, stated that he is not happy about paying for UTOPIA when he cannot get it in his neighborhood. He said he recognizes the City’s obligation to pay for it. The challenge now is to increase the revenue and get people to use it. He encouraged residents to sign up for it if it is available. He suggested the City start sending out a notice in the City bill to talk about UTOPIA and how it is a great deal. He volunteered to help the city promote UTOPIA.

Mr. Chesnut clarified that the City does own the property for the two golf courses, but they are held with long-term leases. No tax payer dollars are going into the operation of either golf course. They are independently operated.


Peter Anderson, resident, voiced concern with UTOPIA. He expressed his opinion that it is never going to pay for itself. He said he will never have UTOPIA available at his home because he lives on Carterville Road. It will not make it to that area. Instead of increasing everyone’s salary he recommended a bonus for the employees that are not getting as much salary as others. A $2,000 to $3,000 bonus for the police officers and firefighters to be used to purchase silver or gold would make a much better investment over time. He suggested shutting off every other City street light, passing on credit card payment fees to users, and putting a cap on all benefits.

Sharon Anderson, expressed concern with the Center for Story. She said the Orem newsletter claimed that over 57,000 resident enjoyed programs at the library last year; however, it is her opinion that many of those people saw more than one program rather than the 57,000 all being new patrons. She noted the SCERA could host these events, and she did not believe the library is the best place to hold these programs. She said she would like to know how many of the library programs last year had an attendance over the 295, if the library programs could be held somewhere else, if the larger events could be scheduled for two consecutive nights, and why the public was not informed that CARE Tax revenues were being held in reserve for the Center for Story instead of being used to enhance existing facilities. She expressed her opinion that the City does not need a Center for Story, and the upkeep and maintenance will cost the City. She said if no new people are needed to staff the Center for Story then they might have overstaffing right now.

Wallace Harkness, resident, thanked the City for the wonderful Summerfest the residents enjoy every year, and expressed appreciation to the Councilmembers for their service. As a prior business owner in the City and as an informed resident, he knows that a lot of time, effort, and energy has gone into each study the City does. He said he has not lost any services while the revenues have been down, and he appreciates that as well. The City Council has to make a lot of tough decisions, and he trusts that they do He said he disagreed with the comments about the Center for Story. He noted storytelling is more than just telling a story. There are workshops going on through the entire year, which is part of that 57,000 number. Storytelling is a misnomer because it also teaches presentation skills, kids are taught how to write and communicate better and more effectively, and storytelling is recording data and keeping track of historic events. He has had children participate in that, and there is some real value there. It is not being funded by the City per se; it is a one-time expense paid for with CARE tax funds and is very beneficial. He again thanked the City Council for the tough decisions they have to make.

Wayne Burr, resident, noted he spoke to the City Council a month ago. He expressed his desire to have the residents vote on the tax increase and the arts center. He noted he has two members of his family who work for very large companies. One of them had to take a three percent wage cut and has to take a one week sabbatical without pay each year in addition to his vacation time. The other’s employer had the large wage earners take up to a ten percent cut in pay. Mr. Burr stated he had spoken with an employee who had read a statement about reducing the pay for the large wage earners in Orem. The employee had said it was a good idea because the City is in a financial crunch right now. The employee had asked if they are going to get that money back if the recession goes away. Mr. Burr said he had told the employee that he does not think the recession is going away any time soon. Mr. Burr asked the City Council to consider not raising the property taxes and to figure out some other way to pay the bills off.


Bob Myers, resident, advised that his neighbors are saying some very hard things. It is their perception that the City Council is a bunch of “tax and spend” liberals. He is hearing that people are angry enough to start paying their taxes under protest, which will be a problem for the City. There are foreclosure signs throughout Orem, and it is thought the City Council is saying the recession is over so it is okay to raise taxes. That might be political suicide for Councilmembers wanting to remain in office. When people hear the Orem librarian makes $166,000 in salary and benefits, their eyes pop. People are becoming active and are getting angry.

CONSENT ITEMS

Mrs. McCandless moved to approve the following consent item. Mrs. Street seconded the motion. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner. The motion passed unanimously.

RESOLUTION – Authorizing the Mayor to Sign the Interlocal Agreement Between Provo City, the City of Orem, and Utah County for the 2012 Byrne Justice Assistance Grant Program Award and Approving the Agreement

SCHEDULED ITEMS

6:00 P.M. PUBLIC HEARINGORDINANCE - A mending Section 22-11-26(J) of the Orem City Code by Changing the Front Setback of Accessory Structures in the PD-14 ZoneRESOLUTION – Approving a Conditional Use Permit for Multiple Accessory Structures Located Generally at 1415 North 450 East in the PD-14 Zone

Stanford Sainsbury, Development Services Director, presented an applicant request that the City Council:

1. By ordinance, amend Section 22-22-16(J) of the Orem City Code pertaining to front setbacks in the PD-14 zone; and

2. By resolution, approve a conditional use permit to construct several accessory buildings located generally at 1415 North 450 East in the PD-14 zone.

The applicant wishes to construct several accessory buildings on his property but would like the ordinance amended by changing the front setback from sixty feet to forty-two feet. The change to forty-two feet will match the required minimum front setback for the dwelling. The PD-14 zone is site specific and only applies to Old Orchard Estates, which contains thirty-eight lots and thirty-four homes.

The standard accessory building front setback outside of any PD zone is forty feet. This locates the structure (usually) behind the front building line of the house. When the PD-14 zone was approved, the front setback of an accessory structure was to be located sixty feet behind the front property line while the dwelling was to be at least forty-two feet behind the front property line. Since the PD-14 zone was approved, there have been approximately sixteen accessory structures built at least sixty feet from the front property line. The proposed ordinance is as follows:


22-11-26J. Accessory Building Setbacks. The minimum setbacks for accessory buildings shall be as follows:

1. Front facing a dedicated street: forty-two feet from the back of curb.2. Side facing a dedicated street: twenty-five feet from the back of the curb.3. Rear and side not adjacent to a street: ten feet. For accessory building or structures requiring a

conditional use permit the City Council may require greater setback distances for rear and side yards.

Advantages: Probably little impact with the larger lots and forty-two foot setback Provides greater flexibility for location of an accessory building

Disadvantages: Several accessory structures have already been built at least sixty feet from the front

property line Reducing the setback gives an accessory building a more prominent location on the

property

The applicant wishes to construct four accessory buildings in the PD-14 zone. Because each accessory structure exceeds twenty-four feet in height, a conditional use permit is required. The accessory structures to be constructed are a garage, clock tower, garden room, and restroom/laundry room. The dimension of each is as follows:

The garage is proposed at 32’4” and 932 square feet The clock tower/breezeway is proposed at 28’2” and 182 square feet The restroom/laundry room is proposed at 25’9” and 422 square feet The garden room is 25’6” and 555 square feet

The PD-14 zone requires any accessory building exceeding 1,000 square feet or 24 feet in height to be approved with a conditional use permit. The design of the accessory buildings the applicant desires requires a change to the ordinance with respect to the front setback of an accessory building. A neighborhood meeting was held concerning the proposal with five people in attendance and all expressed support for the idea. One written letter of support has also been received.

Advantages: Allows owner to fully develop property Increases owner’s property value

Disadvantages: None identified

Mr. Sainsbury commented that they have received feedback from many of the neighbors and they are all supportive of this application.

Mrs. McCandless questioned why they had the sixty-foot setback in the original ordinance. Mr. Sainsbury explained in the R8 zone the setback is twenty-five feet and the accessory structures are forty-two feet back. This zone has a forty-foot setback, and the accessory structure are always set farther back.


Paul Washburn, applicant, said they have contacted everyone that lives in the zone about this proposal. The standards are extremely high and most of the neighbors indicated they had held off on doing anything like this because the setbacks were so egregious. There is an active homeowners association that did come to the Planning Commission meeting to represent that they are in favor of this change. The architecture of the homes in this neighborhood are beautiful, and the structures being proposed with this application will enhance the neighborhood.

Mayor Evans opened the public hearing. No one came forward to speak, so Mayor Evans closed the public hearing.

Mrs. Street questioned whether they had a statement of support from the homeowners association. Mr. Sainsbury said they do not have an actual document from the homeowners association; however, he has letters from many of the neighbors expressing their support of this project.

Mayor Evans moved, by ordinance, to amend Section 22-22-16(J) of the Orem City Code pertaining to front setbacks in the PD-14 zone, and by resolution, to approve a conditional use permit to construct several accessory buildings located generally at 1415 North 450 East in the PD-14 zone. Mrs. Black seconded the motion. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner. The motion passed unanimously.

6:00 P.M. PUBLIC HEARINGORDINANCE – Amending Sections 17-6-6(D)(3)(e) and 17-7-2(A) of the Orem City Code Pertaining to Subdivision Requirements

Mr. Sainsbury presented a staff request that the City Council, by ordinance, approve modifications to Chapter 17 of the Orem City Code pertaining to driveways and approving authorities.

The Development Services Department recently reviewed Chapter 17 of the Orem City Code pertaining to driveways and the approval of lot bond valuations. Originally, the City required six-foot monolithic combination sidewalks throughout the city. Because it was more cost effective, the City required that the drive approaches be installed as part of the subdivision and with the sidewalk improvements. When drive approaches were installed on the wrong side of the lot because of how a house was built, the existing drive approaches were required to be removed and a new one installed in the correct position. While this was an added expense to the cost of home construction, it happened infrequently.

Now that the City requires a separated sidewalk with an eight-foot planter strip, the cost of removing and replacing a driveway has become very expensive. Developers are electing to postpone installing the driveway until a building permit is applied for and the location of the driveway in known. This amendment of Section 17-7-2(A) would require that the driveways would now be installed as part of the building permit process. After a request from developers and reviewing how other Cities in Utah County respond to driveways and planter strips, staff felt it is reasonable to change the ordinance.


The amendment of Section 17-6-6(D)(3)(e) is a housekeeping change that reflects what division handles lot bond value determination.

Advantages: The changes bring the ordinance up to date with current practices and procedures; and The changes eliminate unnecessary requirements

Disadvantage: None determined

The proposed amendments are outlined below:

17-6-6(D)(3)(e) e. The estimated value of any lot submitted as a lot bond shall be determined by the City Engineer ,

taking into account any appraisals or other information available to him.

17-7-2(A)A. Driveways shall be provided for all residential building lots and shall be installed and bonded for

in conjunction with the building permit. The drive approach for the driveway shall be at least twenty feet (20') wide.

Mr. Seastrand asked if they would use that curb-cutting process where they actually trim down that aspect of the curb. Mr. Sainsbury explained that once the contractor knows where the driveway will be placed, they will come in with a concrete cutter and cut out the curb and sidewalk if needed to put in the driveway.

Mayor Evans opened the public hearing. No one came forward to speak, so Mayor Evans closed the public hearing.

Mrs. Black moved, by ordinance, to approve modifications to Chapter 17 of the Orem City Code pertaining to driveways and approving authorities. Mr. Sumner seconded the motion. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner. The motion passed unanimously.

ORDINANCE - Approving a 20-mph Speed Limit on Hidden Hollow Drive from 1600 South to 350 West

Mike Larsen, Public Safety Director, presented a Transportation Advisory Commission recommendation that the City Council, by ordinance, change the posted speed limit on Hidden Hollow Drive from 1600 South to 350 West from 25 miles per hour (mph) to 20 mph.

The City Engineer, Transportation Engineer, and Traffic Operations Engineer have completed an engineering analysis for this portion of Hidden Hollow Drive that considered the design speed of the road, prevailing vehicle speeds, accident history, traffic and roadside conditions, and other safety factors. They recommend a 20-mph speed limit. The City Transportation Advisory Commission reviewed the recommendation of the Engineers and supports their recommendation for a 20-mph speed limit on Hidden Hollow Drive. It is recommended that the speed limit for Hidden Hollow Drive from 1600 South to 350 West be changed from 25 mph to 20 mph.


Staff checked the accident data on the road since January 2009. There was only one recorded accident. It occurred on January 18, 2010, and was reported at 8:01 a.m. The narrative from the police report is as follows: "A non-reportable accident form was completed and turned into my supervisor." "Accident - grn pc hit tree, stuck in snow - not blocking, no injury".

Mr. Seastrand noted that the City Council is only considering the speed limit tonight. He asked what is going to happen with the other issues such as parking and warning signs.

Public Safety Director, Mr. Larsen, explained that the change to the speed limit is a legislative action handled by the City Council. The other issues are administrative actions and will be handled by staff.

Mrs. McCandless asked Keith Larsen, Traffic Engineer, whether the 20 mph is a good speed limit from an engineering standpoint. She said when she drives that road she feels the most comfortable going 20 mph.

Keith Larsen explained there are some parts of the road that do not meet the 25 mph speed requirements. It does feel uncomfortable. It is narrow, only one side of the street has sidewalks, and the houses are closer to the street than those in regular subdivisions. He said he can support this recommendation.

Mike Larsen explained that another reason they are recommending the speed decrease is the topography of the road. There is no way to make the road wider, and it a narrow gulch that runs through there.

Mayor Evans opened the meeting for public comment.

John Kimber, resident, said he is not against the 20 mph speed limit. He drives on that road several times a day. Some of the neighbors put their garbage cans out in the street, which causes a problem. The people who live at 302 West have multiple vehicles parked in the street and on the sidewalks, which causes a problem for the children trying to walk safely in the area. He said he does not know these neighbors, but he would ask them to obey the law. It was his understanding the no-parking signs kept disappearing from in front of some of the houses. He expressed concern that if they try to narrow the street even further, it would cause a larger problem.

Judy Cox, resident, indicated she is the one who wrote the letter to the City Council, and she now has the signatures of sixty-one residents. She questioned this is even before the Council tonight because they have been down this path many times over the years. She said she does not object to the change to the speed limit, but she does ask that due consideration be given to the other issues such as parking. She lives at the bottom of Hidden Hollow on 350 West. Speed has always been an issue, but so has the parking on the sidewalks and into the roadway. She asked the City Council to look at Fisher Hill and 400 West to see if it would be effective to make the whole area a reduced speed zone. That would solve a lot of problems for the entire area. She said she understands the concerns of the new neighbors, but the issues are much grander than just the speeding aspect.


Mariah Craig, resident, agreed that speed is not necessarily the only issue in that area. The issue for the majority of people that signed Mrs. Cox’s letter is that they are tax paying residents, and the safety of the drivers using this road should have some consideration as well. The residents put items in the roadway that prevent the drivers from staying within the lines. She drives a smaller car, and she has the right to protect her car as well from the objects in the road. She asked the City Council to consider these other issues as well as the speed limit.

LoriAnne Eldridge, resident, agreed with some of the things that have been said; however, she did not agree that the City Council should delay a decision in reducing the speed limit. The other streets in question have parking on both sides of the street. Most of the tickets written in this area have not been for speeding but for crossing the double yellow lines. If the construction trucks cannot drive within their lane, they should take another route. She said she can drive her suburban on the street on garbage day going 20 mph and was able to stay in her lane. The cars just need to slow down.

Michael Brooks, resident, agreed that the whole area should have a reduced speed limit, but he would like the City Council to vote to reduce the speed limit on Hidden Hollow that evening. It is the narrowest street in the area. There is really just one house that parks multiple vehicles on the street. It is not the entire neighborhood.

Mr. Seastrand advised that he lives in this area, and he is aware of the number of times the City has tried to find solutions for this road. He said he agrees with reducing the speed limit to 20 mph and would like to find solutions for the other problems. He indicated he would like to have a traffic study done to see if the resulting outcome has had an impact on the surrounding roads.

Mr. Seastrand then moved, by ordinance, to change the posted speed limit on Hidden Hollow Drive from 1600 South to 350 West from 25 mph to 20 mph. Mrs. Black seconded the motion.

Mrs. McCandless said that it seems like every time she drives down this street, it is garbage day. The garbage trucks sometimes replace the cans farther into the street after emptying them than where the residents had placed them. She said she asked Keith Larsen a question about engineering because she sat through Transportation Advisory Commission meetings where this was discussed, and other engineers have said the road and the design is not safe at 25 mph. She is not sure people will actually slow down, but the experts say 20 mph is an appropriate speed there. She said she was comfortable driving down the street at 20 mph; however, that is just one component. They need to look at the parking and work with the neighbors on that. They should also look at the entire neighborhood to see if a reduced speed would be appropriate on other streets as well. She said 1700 South is a very steep hill and should be examined.

Mr. Andersen said he seconded what Mrs. McCandless said. The City has put pillars and chains on Fisher Hill to catch the vehicles before they drive into a neighbor’s yard when the road is slick. It would not hurt to reduce the speed on that road as well. There are blind spots and have been some accidents.

Mrs. Black agreed that the City Council should go forward with the 20 mph speed limit tonight and look at the other areas for consideration.


Mr. Seastrand modified his motion to include instructions for the City do additional traffic studies in the surrounding areas of concern to see if a reduction of speed in those areas could also be warranted. Mrs. Black seconded the motion.

Mr. Stephens suggested the City Council add language to the ordinance stating that the City Council hereby sets the speed limit on Hidden Hollow Drive at 20 mph. Mr. Seastrand and Mrs. Black agreed to that change.

Mr. Seastrand asked if staff could talk with the garbage company and ask them a to take extra care in replacing the cans in that area. Mr. Chesnut said staff would talk with them.

Mayor Evans called for a vote. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner. The motion passed unanimously.

6:00 P.M. PUBLIC HEARINGMOTION - Considering the Budget for Fiscal Year 2012-2013, Holding a Public Hearing, and Continuing the Public Hearing Until June 19, 2012, at 6:00 p.m.

Bruce Chesnut, City Manager, presented a staff recommendation that the City Council hold a public hearing to discuss the Fiscal Year 2012-2013 Budget and then, by motion, continue the public hearing to June 19, 2012, at 6:00 p.m.

1On May 8, 2012, the City Council received the tentative budget for the Fiscal Year 2012-2013. A budget work session was held on May 22, 2012, to discuss the budget. In addition, two public hearings were held to review CDBG budget requests. In the May 8th City Council meeting, the City Manager, Bruce Chesnut, recommended the City Council consider a property tax increase for operations for the first time since 1978. Accordingly, Mr. Chesnut recommended that public hearings be set for June 12, 2012, and June 19, 2012, to discuss the tentative budget, and for August 14, 2012, to hold a Truth in Taxation hearing to consider a property tax rate increase in excess of the certified tax rate.

The national and local economies have shown some signs of improvement over the past year; however, it is commonly believed that any recovery will be a slow process. The Fiscal Year 2012-2013 Tentative Budget is a balanced budget that was formulated with this environment in mind as it recognizes that the continued pressure of the UTOPIA debt guarantee obligation combined with the rising costs of operational expenditures such as wages, benefits, insurance, gas, oil, and fleet replacement cannot be addressed by the anticipated increases in property tax and sales tax revenues nor any other revenues available to the General Fund of the City.

Although an increase in the certified property tax rate is proposed, the franchise tax and municipal energy sales and use tax rates remain at 6 percent and the transient room tax stays at 1 percent. The telecommunications license tax is 3.5 percent and the E-911 fee is $0.61 per month, both unchanged from current rates. With the exception of some minor adjustments to miscellaneous fees and charges, the only proposed fee changes are represented in the Budget Issues Section below. Personnel wage increases, fleet, and computer and technology


replacements are also included in the Budget Issues Section.

Mr. Chesnut reviewed the various ways the City has tried to get the information about the budget out to the residents, which included:

Holding five open houses Meeting with the Herald editorial board and writers from the Salt Lake Tribune Meeting with the Tax Payers Association Meeting with State representatives Meeting with various civic organizations Discussions with many resident via email and telephone Information is on the City website Information posted on Facebook and the Mayor’s blog Recreation Department held some open houses to get information on the recreation

component They sent out a newsletter to the residents outlining the budget issues and advertising the

open houses Sent flyers home with thousands of elementary students

Mr. Chesnut then reviewed the proposed budget with the Council. The budget issues included:

Budget Issues Section

Budget Issue #1 – Water Rate

Should the monthly base rate for a ¾” meter be raised by $0.41/month from $12.66 to $13.07 to pay for the new allocation of Jordanelle water and to cover increased operational costs?

Budget Issue #2 – Sewer Rate

Should the sewer usage rate be increased by $0.03/1,000 gallons from $1.39/1,000 gallons to $1.42/1,000 gallons?

Budget Issue #3 – Street Lighting Fee

Should the Special Service Lighting District establish a $2.00/month Street Lighting Operations and Maintenance Fee?

Budget Issue #4 – Residential Solid Waste Container Fee

Should the primary residential solid waste container fee be reduced by $0.50/month from $10.60/month to $10.10/month?

Budget Issue #5 – Vehicle Replacement Program

Should $600,000 of General Fund reserves be appropriated for vehicle replacement?


Budget Issue #6 – Employee Compensation

Should the budget include a 2 percent adjustment for all employees?

Budget Issue #7 – Computer and Technology Upgrades

Should approximately $160,000 be included for computer and technology upgrades in the General Fund?

Budget Issue #8 – General Fund, UTOPIA, and Capital Improvement Needs

Should the City increase the certified tax rate sufficient to increase General Fund property tax revenues by $3,000,000 to address the UTOPIA obligation (principally) and other General Fund requirements as well as approximately $350,000 for tort liabilities?

The purpose of this hearing is to consider a tentative budget for Fiscal Year 2012-2013, subject to the outcome of the Truth in Taxation hearing on August 14, 2012, along with the compensation program and the fees, charges and tax rates of the City. Additionally, the City Council is reviewing amendments to the Fiscal Year 2011-2012 Budget.

Mayor Evans thanked staff for all the work they have done with the budget and with the open houses they held for the residents. Mayor Evans asked those speaking to limit their comments to three or four minutes or less. He also asked that they leave copies of their written statement at the Recorder’s desk.

Mayor Evans then indicated the City Council has received comments on all sides of the issues. They will be hearing more of them tonight. Mayor Evans reflected that when he was first on the City Council back in the 1980s, he had had to make a tough vote on a zoning issue, and he felt good about the decision. However, when he got out to the lobby, someone who was not happy with his vote confronted him. When he drove home that night, he told himself that from there on out, no matter what he did, he was going to make what he felt were the best possible decisions he could, even though not everyone would be happy with his decisions. He has used that as a governing principle ever since. Mayor Evans then asked those speaking to give their names, and to advise if they are related to anyone on the Council.

Mayor Evans opened the public hearing.

Bob Wright, resident, gave his opinion to the various budget issues. He said the Water Department has a $3 million reserve, so an increase in the water rate is not needed. The sewer rate is based on an estimated winter usage between summer and fall meter readings and should not be increased by $.03 per estimated gallon usage. The street lighting fee increase of $2 per month on present customers is ridiculous. Most of the Orem streets have been in service for years with little or no maintenance. The residents should not be asked to subsidize new construction areas. He asked why the City does not reduce the number one garbage can to an even $10. Mr. Wright stated the 2 percent pay increase should be implemented for the


nonexempt hourly employees making $50,000 or less. Exempt high-salary employees should remain at their present salary range. He asked the Council to leave the certified tax rate alone. The City has sales tax, property tax, franchise tax, utility taxes, substantial debt reserves, invested funds with Zions Bank, Federal notes, and numerous earmarked fund balances in savings accounts. The City is not suffering and does not need to change the UTOPIA present sales tax debt service reserve fund payment program. He said they should cancel the Truth in Taxation property tax increase hearing and avoid an additional burden on the resident of Orem in this economic situation. He stated this is a simple solution to the public outcry.

Linda Jardine, resident, expressed concern with the employees’ salaries. According to Orem’s Dan Jones survey, 51 percent of Orem’s residents said their yearly salary was $70,000 or less with 40 percent under $40,000. Only three percent have an income between $150,000 to $200,000. The Orem City Attorney receives total compensation of $185,000 and the Orem City Manager receives $184,000. The median salary for the city managers in 2008 was about of that amount according to the Bureau of Labor Statistics. The Development Services Director receives $184,000 and the same position in Boise, population 200,000, received $130,000. Orem City has 103 employees who receive total compensation of over $100,000. Orem’s compensation packages are too high, and they need to be adjusted downward, not increased. It is not morally justifiable that people receiving so much are doing so on the backs of those making far less. Mrs. Jardine gave a few ideas for saving money, which included:

Cut salarieso Cut six percent off the top 100 City employee benefits and hold off on raises

Savings of $1 million The University Mall has failed to qualify for its annual subsidy

o Savings of $1 million Have employees making over $70,000 pay $250 of their health insurance costs

o Savings $700,000 Cut 4 percent off the employees 22 percent retirement package, which does not cut their

take home payo Savings of $600,000

Residents that pay the City with credit cards should be charged a feeo Savings of $200,000

Mrs. Jardine indicated these savings alone would total $3,420,000. The tax increase is supposed to bring in $3,350,000. This forty-seven percent tax increase is not necessary. She said she has to cut her budget when she does not have enough money, and so should the City of Orem. The City Council is responsible to the residents and should fire the City Manager for proposing such an out-of-touch budget. In the next election, the Council will find that people will pay attention to this vote and the member who vote for this budget.

Ernesto Lazalde, resident, said he is a City employee, and he also pays property tax to the City. He thanked the Councilmembers for the time they spent in researching this budget. The City of Orem has consistently been listed as one of the top places to live in the country and has always been one of the top five cities in the country for innovation and technology. Some employees have put in a lot of extra hours without extra compensation and with no regrets because they want to do their part to keep the City of Orem as one of the top cities in the country. The City has had great leaders and role models who have come and gone through the years, who have


instilled these values in the organization through their example. These last three and one half years have been challenging for many employees. The budget has been cut to the bone, more work is required to maintain older equipment, and they have done this with fewer people. This year there is a budget deficit of around $3 million that needs to be balanced and having to absorb another $3 million budget cut would start to hurt the level and quality of the services. It may not be felt immediately, but as technology changes, the City will find itself further behind. At some point, cuts will start to erode some of the innovative spirit that has been the hallmark of this organization. Once this happens, it is very difficult to restore. He expressed his hope that the City Council would take these issues into consideration. He said he knows they have studied it, and he knows they will make the best decision.

Bob Myers, resident, asked why the $975,000 subsidy is still being paid to the University Mall. He understands that there are some private businesses in Orem that pay their own way and do not receive any subsidy. The City has given $60 million to a few dozen private businesses since 1985. He wondered why the City of Orem is subsidizing private industry, including UTOPIA. Now the residents are being asked to pay more taxes to support a private business. If the City eliminated the mall subsidy, that is about one-third of the entire tax increase. He questioned why the City is paying $230,000 toward food and travel for City employees. He said when he worked for universities in other states and there was a tax crisis, their travel budget was cut. This is not without precedent. The State employees in the 1990s had to take a 5 percent cut in pay. That is not without precedence. He noted the City employees could pay $250 per month for their insurance, which would save an additional $600,000. This is a total savings of $1,805,000, which is over half of the $3 million property tax increase. He asked the Council to have the courage to do some budget cutting rather than following the examples of the California cities that are totally bankrupt.

Peter Anderson, resident, said he is not sure if the City Council is aware of this, but China and Japan are no longer going to be using the dollar in their exchanges. The dollar is being eliminated by most of the countries in South America. The U.S. is in trouble dollarwise. He said he is expecting a total breakdown of the dollar in the United States within the next two years. The City Council would be making a terrible mistake by making people pay more in taxes. He said he has a real problem with that and so do fifty-seven of his neighbors.

Jared Jardine, resident, said as he understands the City has a $3 million shortfall. He said what disturbs him is the operational budget. Page 14 of the budget has the various departments and on page 15 it lists how many employees those departments have. The City Manager Department has 10 full-time employees. Beyond the nearly $1 million they have in salaries, they have $3.7 million in operations. That is $7,000 per week per employee, which seems excessive to him. The Administrative Service Department has 40 employees and an operational budget of $10 million. That is $5,500 per employee per week. He said he would like an in-depth accounting of how the money is being spent. He noted he would also like a detailed accounting of how the $185 million was spent on UTOPIA. He understands the City is contracted for its portion of the debt, but it seems ridiculous that the City would continue to push forward with something when only a third of the city has this service available to them.

Gary Downey, resident and City employee, stated he has lived in Orem for thirty-five years and has worked for the Orem Police Department for twenty-eight years. He said he loves his job, and


he and sixty-six other Orem officers are willing to put their life on the line for anyone that needs it. The officers go through a lot, but they take it every day and they take it for what they get paid. None of them are rich. He said he been an officer for twenty-eight years, and he owns two used vehicles. He said he went into this job knowing it was not a high-paying job. It is tough as a police officer because they have to do a lot of unpleasant things. They have to notify family members that loved ones have passed away. He wondered how much that is worth and how many people would be willing to do that for what the officers get paid. He said he has done a lot of death notifications over the years. He worked in the Detective Division for twelve years, and he worked on the dead body calls. He remembers them all and probably will for the rest of his life. He served on interview boards for the Police Department and has discovered that they get what they pay for. He wants Orem’s to remain a good Police Department. They have not had a raise in four years, and some of the officers have tested at other agencies. If something does not happen, they will lose more good officers. He said he is favor of the tax increase.

Dick Brunst, resident, thanked the police officer who just spoke for his and his follow police officers and firefighters for their service. Mr. Brunst noted the Salt Lake Tribune had an article that day that listed the median income in the last 4 years for the average citizen as having fallen by 7.7 percent and the median family net worth by 50 percent. He indicated that in these discussions it is very important to realize there are two sides to the budget. One is the people who spend the money and the other is those who are actually producing the money. Those who are producing the money are hurting. Mr. Brunst then read Council statements from a previous meeting. He said he is concerned with the proposed increases and did not realize the 2 percent wage increase was in the works. He expressed his feelings that the top employees in the City are already well compensated, and he does not believe they should receive a 2 percent increase. This would save a considerable amount of money. He said the top 100 paid employees in the City make 4 percent more in total compensation than Provo and 6 percent more than Ogden. The library staff itself has 53 employees, as does Provo, and Orem has a budget that is $400,000 more than Provo. He was initially in favor of increasing taxes to help balance the budget; however, as he looks at the budget and the employee compensation, he is suggesting the Council hold off on the $3 million tax increase and the 2 percent raise. The City can use some of the reserves they have, and look at other ways to find savings in the budget to help offset that $3 million tax increase. A $3.3 million tax increase today to pay for 27 years of UTOPIA payments will actually equal $110 million and once they put the tax increase on, it will not come off. He would really like to look at cutting costs to help the residents.

Kip Jardine, resident, stated the seniors and nonseniors need to stand together. They cannot break it up and say the seniors get one benefit and others get a different benefit. That is the strength of this country. A lot of times they lose that in thinking they can make a benefit for one and not the others. Regarding the employees who are making salaries that are excessive, it is not Orem’s goal to beat other cities in what they pay in salaries. It is Orem’s goal to pay people what competitively they have to in order to get good people. Of the staff who are making the high salaries, they can replace almost every one of them with a competent person from Orem at half the salary. That is what needs to be looked at. He said they could ask the members of this audience if they would like a job at half the pay and how good of a job they would do. He reiterated what his wife said earlier that the City Manager should be replaced for even thinking of doing this. Mr. Jardine said he does not think the Council realizes how mad the people are. This is not something that should be taken lightly.


Dave Spencer, resident, said he attended the open house at the Senior Friendship Center to get information about the proposed budget. He stopped at the budget display which said that $3.7 million had been saved in the past four years. He spoke with one of the employees and asked how much was cut off the budget each year, and he was told the $3.7 million had been cut the first year and everything was status quo the other three years. Mr. Spencer said if $3.7 million is divided by 4, the total savings is $920,00 per year, which is one percent of the proposed budget. That is pretty low. The display made it look like the City had made such a great savings and has tried to cut the budget costs. At work, he personally has had to cut his budget every year for the past four years. He has had to lay off people and cut expenses and operating costs in all departments. It was a tough decision, but he had to do it if he wanted to keep his job. If he went to his boss and said he cut $3.7 million in 4 years and it was only one percent of his budget, his boss would find someone who could better manage the budget. Mr. Spencer recommended that the City Council put this budget decision on hold until the Department Managers can look at their budgets and come up with at least a 10 percent cut. A 10 percent cut would save the City and residents of Orem $9 million per year. This would show the residents the City Management is vested in moving the City forward. Mr. Spencer said the Council needs to think about what they are doing to the residents in Orem. Nearly every household in Orem has made cuts in their personal budgets as the economy has progressively gotten worse. A 47 percent increase in property tax may not seem a lot to the Council, but it does to those who have no jobs, who are working 2 or 3 jobs, who are on a fixed income, or who have other financial obligations in taking care of their families. The nation is still in a recession. To expect the residents of Orem to pay for all the proposed increase, they also need to make more cuts to the 2012-2013 budget and understand that they are all in this together. Mr. Spencer then stated that another poster at the open house showed that the benefits for the City employees were in line with the private sector for those that work in businesses with over 500 employees. He works for a company that has 13,000 employees in the United States. His health care benefit is not even close to what the employees in Orem are getting each month. For example, in his company if someone makes over $90,000, they to pay a monthly payment of $400 per family benefit plus copay and deductible. In Orem the employee has to pay $50 a month plus copay and deductible. If the City were truly in line with the private sector, this would save the residents of Orem nearly $750,000. Another problem he sees with the budget is the request of a 2 percent salary increase for all of the employees. The top 100 employees make over $12 million combined. The 2 percent increase for those employees would take up 43 percent of that pay increase, which would leave 57 percent for the rest of the City employees. He asked why the Council is putting this pain and burden on the residents of Orem when they have done very little over the past 4 years to make cuts or be frugal with the tax payers’ money. They are still in the recession, and if they make the tough cuts today, Orem will prosper in the future.

Tom Phelon, resident, said he stayed until the end of the last meeting when this was discussed and he will stay to the end of this meeting. The City Council will hear a lot of the same issues. He noted the Fire Department goes out on every emergency call, which is required. Those trucks get less than one gallon per mile, and there is a cost of $900 to replace each tire. He questioned it there was a way to use another vehicle for calls at houses other than auto accidents that probably need a fire truck there. They have 5,000 street lights, which range from $1.81 per hour to $9.68 per hour for every street light in the city. He said he called Rocky Mountain Power and was told there is no meter on the City. It is all estimated. He recommended the City look at LED lights,


which would save 90 percent of the electricity costs for the lighting on the street lights. They are the same amount of wattage, so when the City goes to replace the lights, they could use the LED lights. There are many ways to save costs without cutting jobs. Mr. Phelon noted some of these things are so simple. The law that was just passed to reduce the speed limit to 20 mph is going to make the City a lot of revenue for the 61 people that live there. Their insurance will be raised because of the speeding tickets they will get, when all that should have been done was to put in speed bumps. That would have solved the problem. If they wanted to raise money, they could make the speed limit 20 mph everywhere in Orem.

Edward Madsen, resident, said he would like to address the street lighting fee. They need to get rid of about half the lights they have right now. There is a new street where 1200 West was realigned to match up with 1160 West, which is 50 South. It has four street lights in a twenty-five-yard radius. There are no buildings or trees. He said he could mow his lawn at midnight. His wife just spent money to buy darker drapes to keep the light out, and the City wants to charge $2 more. He noted they could cut the budget by cutting out half of the lights. He said he knows a whole bunch of people who would volunteer to shoot them out. UTOPIA was oversold to the City and overdone. He stated he has UTOPIA, and he has no problem with the service itself, but he does have a problem that the City owes them all this money so they have to do this. Everyone is having a hard financial time and they can have one, too. He does not care what UTOPIA’s problem is. Orem was oversold a bill of goods that they would have all these people join. He never hears UTOPIA advertising but he sees plenty of ads each day for Comcast and Centurylink. To increase the property tax to pay for UTOPIA is ridiculous.

Benjamin Devey, resident, expressed appreciation for the Councilmembers and the comments that have been made. One thing that has not been spoken about is the City matching retirement funds for the employees. He said he has been unemployed for three and one half years, he is on a fixed income, and he cannot afford to pay more property taxes. He is living on his own retirement. The City pays 17.9 percent into the employees retirement funds, which is a luxury that many resident do not have. He suggest the City changing that structure like cities in other states have done. He seconded a lot of the savings suggestions that have been made that evening and suggested that the Council make every effort to cut costs and overhaul the City organization before requiring the residents to pay more property tax.

Carl Hernandez, resident, voiced appreciation to the Councilmembers for the service they give. He said he appreciates the passion that people are speaking with on this particular issue; however, he said the Mayor and Council should not allow personal attacks. This is not something that should become personal. This is an issue that really should be focused on the problem and not the people. In particular, Mr. Chesnut has been the focus of many comments that do not lead to civil discourse. Mr. Hernandez indicated the City is at a cross roads right now. This is an important time in Orem’s history, where they have a problem that he does believe will cause issues with the quality of life if they do not get this right. He has heard comments about line items and what not, and that is what they hire professionals to do. That is what the City Council is trusting with the employees. Mr. Hernandez said he is not sure this issue can be solved by going line by line in the budget. He said if they boil this down to two simplistic points, it might be helpful for the City Council to reach the appropriate decision. The first point is that if they do not pass a tax increase, the City will have to decrease the services that are given to the residents of Orem. It is fairly obvious they cannot cut $2 million from a budget without losing


services. The second point is they can pass the increase and maybe the appropriate focus of the increase is only to deal with UTOPIA and to cover the legal obligation they have to pay for UTOPIA. Integrity tells them they have to meet that obligation. The City has made a promise. Parents teach their children if they make a promise, they need to fulfill that promise. In the end, if the City is able to pay that obligation, they will be able to maintain the level of service that the residents have all appreciated and enjoyed over these past several years. Mr Hernandez said he appreciates the difficulty the Council is facing with these issues, but to him it boils down to those two critical issues.

Wallace Harkness, resident, stated the comparison in Orem’s rates was interesting to him, and that Orem is lower than any other city with their rates. He said he appreciates the article that was discussed earlier about the 7.7 decrease in median income in the state, noting that Orem has not experienced a 7.7 decrease in services as Mr. Hernandez mentioned. Mr. Harkness said he does not want a cut in services. He likes that this garbage is picked up every week and that his sewer works all the time. A reduction in services is critical. He is also concerned about the police officer saying that good officers are leaving the city. They pay for what they get. Mr. Harkness does not want to lose those good servicemen and great city workers. When he hears the issue with lighting, in his years of study, he realizes the correlation of safety and lighting. There might be a some lights in areas that are not perfect, but he likes the security and safety and their correlation with lighting. He does not want more mischief occurring in dark places. It is tough to work with a budget, and he agrees with Mr. Hernandez’s comments about every line item. They have professionals already doing that. There has not been an salary increase for four years. Employees are all carrying more work in their responsibilities.

David Jardine, resident, noted that, in terms of UTOPIA, the City has to recognize when they have a loser on their hands. They are 10 years into a contract, and they do not have even half of Orem with the service. Now they are talking about a massive fee for the new people to hook up. Given 2 years, they can have anyone in the private sector provide Internet anywhere in Orem. At the rate they are going, it will be thirty years to have Internet to the city. The City has to look at that and evaluate the contract they have with these people. They keep talking about how the City has made promises and there is a contract, but UTOPIA made promises as well. He said he cannot imagine that they are not in breach of the contract after 10 years in not getting Internet to the city. That seems ridiculous to him. It also seems ridiculous that they would be looking at any increase in taxation in a terrible economy. This is the worst economy since the Great Depression. People are really hurting out there. Mr. Jardine said he went back to school several years ago. He has a law degree and an MBA. He has been applying for jobs since September of 2010, and he cannot find what he needs. He is doubling up with family members and has been for a year. There are a lot of the residents in Orem who are doubling up as well. They would just like to get to where they can afford rent somewhere. He said the Council should evaluate that. The City is looking at losing revenues. The mall is on the verge of going dark. Once they lose the anchors, they will start losing other tenants. There is going to be a domino effect if the Woodburys do not get their act together. The City needs to evaluate before they raise a bunch of taxes for a bunch of programs that some people may not want to lose the services, but the City cannot afford the services. Regardless of whether they want to lose them or not. He has a lot of things he would like, such as a new car, but he does not go buy it when he cannot afford it. The City is at one of those crossroads and needs to look at that very seriously in this budget.


Vic Deauvono, resident, said he has been involved in numerous engineering projects in Orem for several years. He, along with Dr. Thurgood, created the first circle around Utah Valley University that is working wonderfully. He said he has been a state delegate and held many positions on different boards in businesses in this area and in Salt Lake. As a State delegate, he is an elected official and he has an obligation to take care of the people who live in this area. The City Council is the Supreme Court for the residents of Orem. The Supreme Court is here to dictate and to do the will of the people. He said he has also been an eleven-year safety officer and has given of his free time to the North Fork Fire Department and Search and Rescue. He has given over 3,000 hours of service up Provo Canyon, and he is very fond of and holds dearly public safety. He said he does not like to tell people his finances, but he has struggled for the past four years because of the things that have happened in the economy with the banking and the building industry. He expressed his opinion that the City has failed to look at the decrease and two things that tell how the residents and City have been hurt. There is a decrease in sales tax and a decrease in building permits. He said he was here and fought the lights because there were too many lights. They approved the budget for the lights and then had to go back and buy 1,000 more lights. In reference to the Center for Story, the Mayor said in the newsletter that no property tax or money from the City’s general operating funds would be used to build the facility. These were the same things that he was told about the streetlights, but now staff is recommending an increase in the street lighting fee. He indicated the residents are hurting. The Treasury Department had released statistics that forty percent of incomes and investments have been lost around the country. He indicated he has lost forty percent of his income over the years and is living off his savings because it is difficult out there. He said he is sixty-four years old, and the things he was relying on in 2006-07 are no longer there. All of them are in this together. He asked the City Council to hold tight to keep employees but to not increase anything. If they have to reduce something, they have to do it. He expressed his hope that the City Council, as the Supreme Court of this city, will be prudent right now in representing the residents in addition to the employees. They must balance the budget, and if they have to reign it in right now, do it.

Taylor Oldroyd, Provo resident and Utah County Association of Realtors, said he is speaking in opposition of the property tax increase. Property taxes should be reserved for services that all residents receive. UTOPIA is not a utility or service that all residents enjoy. The Utah County Association of Realtors is against the property tax increase. Orem has seen a reduction in sales tax revenue in part because of changing demographics with the growth in other communities. People are tightening their belts. A reduction in revenue is a sign that the economy is still a worry. A dip in sales tax revenue should not be an excuse to raise taxes or fees, but rather an opportunity to offer incentives to spur growth. Businesses are getting creative on how to attract customers and increase sales. The City should do the same. He indicated Orem currently has a moratorium on accessory apartments which keeps people, residents, and shoppers away. Allowing and encouraging building in Orem would bring in more buyers, which would lead to more sales and an increase in revenue. It would also bring in additional impact fees from the building. This would help people on fixed incomes receive financial help. Homeowners are a desirable commodity in every community. An increase in taxes pushes the buying power down and delays possible ownership. Homeowners in America pay ninety percent of all taxes. Any additional burdens on homeownership at this time hits really hard. He expressed appreciation for the City trying to balance the level of service residents have come to expect; however, dipping into the pocket of homeowners is not an option unless they seek further drops in revenue. Tax increases will result in further drops in revenue. He suggested incentive and lowering taxes and


fees like some of the neighboring communities have. He encouraged the City Council to expedite the removal of the accessory apartment moratorium so residents will improve the sales tax situation and boost the General Fund. The bottom line is tax payers are taxed enough already. People cannot buy and sell homes, let alone other items, if they cannot afford them.

Barbara Petty, resident, said she has lived in Orem for seventeen years and has attended a lot of City Council meetings. She has applauded service and events and has also objected to things, including the City Council involving Orem in UTOPIA. The City Council has heard a lot of suggestions on how to reduce the budget and not raise property taxes. All of the Councilmembers come from a position of comfort, and they are listening to the citizens the Council is supposed to represent, who are not coming from a position of comfort. The Council needs to take into consideration how to meet their needs. She said she is a senior citizen, and she can be considered as being on a fixed income. She also has some investments that have taken hits with the downturn in the economy, which affects cash flow. There are many aspects to be considered as the Council tries to make decisions on this. The City Council has a great responsibility to provide proper police services for the residents. If the good police officers in this city are leaving, perhaps the employees in more comfortable positions, such as the City Manager and other administrative salaries that are large, should be cut and those amounts given to the police officers. She wondered how affected the City Council really is in listening to the people who have spoken to them tonight. This is a very serious decision the City Council has to make.

Lester Moody, resident, said he remembers the discussions the former Mayor of Provo had about their system. Over a series of years, the Mayor kept saying this is it, this is it, but it never was it. Mr. Moody said he understands the need to raise the taxes to pay for UTOPIA, but he is smart enough to know that there is another one coming and another one after that. The service of UTOPIA is way behind the schedule that they were given. For the City to say that the residents will not get another tax increase to pay for UTOPIA is not the truth. The second issue he wanted to speak about is that $28 is the average cost for water. When he made a decision 18 years ago to put in a one-inch meter, there was very little difference between the cost of the ¾-inch and 1-inch meters. Now his cost on the 1-inch meter is $32. On 850 East between 800 South and 600 South, the contractor put 1-inch meters in all the houses. Those people are also paying more than the average cost, just on the meter charge and not on the water.

Judy Cox, resident, said she appreciates Mr. Hernandez’s reminder that the residents should not personally attack the employees such as the City Manager. She said Mr. Hernandez also asked that they trust those who put forth the proposed budget. They are paid to do that, and that is their training. However, that is requiring a lot of trust from the residents because they do not know the employees got it right. The reason the City is going through this process is to allow the residents of Orem to express their good ideas. The City Council should really listen to those. Mr. Hernandez also made the comment that the City has an obligation to pay for UTOPIA and that they teach their children to pay for their obligations. Ms. Cox said she did not ask for this obligation. This was a decision that was made for her personally by other people, and she cannot even get the service. She is willing to pay for the services she has access to. She is willing to pay for the police and ambulance, roads and streetlights because she has access to them. She said she does not think she will ever have access to UTOPIA. She noted her neighbor had asked what the constitutionality is in requiring a resident to pay for something that they cannot have access to.


Mrs. Cox wanted to know if it was legal for the City Council to charge her for something she does not have access to. Earlier, a man commented that streetlights improve safety. Her neighborhood has three lights in a very small area. A couple of weeks ago, a vehicle parked directly across from the streetlight was broken into, and the thief took his or her time in removing the various items.

Paul Goodrich, resident, indicated he is not going to bark at the City Council tonight because he is actually pretty happy. It has been his experience that angry people come out to the meetings and happy people stay home. He remembered when University Parkway was built in Provo. To him, it was like a blind squirrel getting a nut. The residents were really blessed by that happening. Orem turned into a regional shopping destination, mainly because of that wonderful improvement. He said he did not know if there were budget problems at that time, or if people were complaining that the City should not be spending money, but that was something that made the City economically viable for many years. He and many other Orem residents have actually saved on taxes and utility rates. That is why he is happy. He said the reason he is here tonight is because he is fearful because the tax generating engine Orem has had for so many years is not producing what it used to. He asked the City Council not to follow the “tea drinkers” because that would “put a noose around the City’s neck”. They need to cut where they can and be reasonable, the personal attacks need to end, and they all need to work together. He noted he is grateful the Councilmembers have been elected because they are going to spend a lot more hours on these decisions than he has to. Orem has been so blessed for so many years. He asked them to not “kill the goose that laid the golden egg” but to find a way to feed it. Sometimes that takes money. So many people are complaining about the money the State is paying on I-15. He expressed appreciation that the State Legislature had the wisdom to do that. Utah is probably leading the country in economic recovery. They are not there yet, and a lot of people are hurting, but many states are asking why they cannot be more like Utah. Mr. Goodrich said he and his wife toured many of the western states last year, and it was scary to see some of those towns that were in decline. At one time, those cities were riding very high. He asked the Council not to put a tourniquet around Orem and force them into a low. He expressed his gratitude for the type of government the City of Orem has, reiterating that the Council is going to spend a lot more time on this issue. He said he knows the majority of Councilmembers will make the right decision.

Charles Hart, resident, thanked Mr. Andersen for the list of suggestions he provided. Mr. Hart said he added it up and it came to almost $6 million in potential savings. One of the suggestions was to cut pay of the Councilmembers that had voted for UTOPIA. Mr. Hart said that is a good idea, and they should take responsibility for something that did not work out well. The second thing is to cut the pay of highly compensated employees. This is not a big deal; it happens all of the time. When times are tough, everybody shares in the pain. When the City talks about saving money, they saved money by laying off people. Those people paid the price, but nobody currently in the City has paid any price. They got a pay raise of 4 percent in 2008 when everyone else’s income was heading down. The employees went 4 years, in a deficit budget, not living within their means, and drew down the City’s savings account. He said a ten percent across-the-board cut for everybody over $100,000 is very doable.

Paul Meyers, resident, declared to anyone who has even suggested that it is rational to consider shoving UTOPIA over the side, that that boat has sailed. There is no possibility for this entity or any competent entity like it to do such a thing. The City is bound. The payments they make are


not going to UTOPIA. That money goes into a fund that they have pledged, which goes to pay down the bond debt. There is not a mechanism or a legal way for the City to get out of that. They could chuck further bond indebtedness over the side and say they will stay with what they have got with UTOPIA, but that seems like shooting themselves in the foot. It seems like they have spent this much money and contracted for part of a system, and now most of Orem cannot use it because they have not figured a way to present themselves with a value that it provides. There is a huge value to a system such as UTOPIA that is under appreciated by a certain segment of the populous here. There are many features that would make this a great thing for the City, and the City was intending to stand as a beacon to attract people because of this technological awareness. To get people who are at the top of their game to come here because the City believed in high-quality infrastructure. No one believes that about them anymore because they have not finished the system. They need to form a committee of people who are interested in this process, can figure out how to help the process, not get in the way of it, and figure out what metrics they can establish that will allow the City to positively fund the completion of the system. Mr. Meyers then stated, in reference to the street lighting, that he could not figure out how 25,000 households times $24.00 a year works out to $250,000. It is more like $450,000 dollars. He questioned whether there are fewer households than he thought. He also noted that they cannot screw LED light bulbs into the fixtures they have and make it work. The physics do not work. The City is using the most efficient physics available to generate light in the city, and LEDs would do nothing but cause a whole bunch of wasted money to start the process. The City is already doing the best it can. The people who administer this know what they are doing in terms of engineering and laying out lighting for Orem. Whether that is the right number at $250,000 he does not have a clue, but he can say there is no magic fix for altering the kind of lights they have in place to get better lights or a more cost effective structure.

Leslie Nelson, resident, said she has owned a business in Orem for twenty-seven years. Her business has struggled over the years, but she believes in investments, and the City Council appears to be on the right track. It seems to her that the City is being prudent in its projections, and she is in favor of them. It bothers her to hear the residents say things like the government has no right to their money. The City has great buying power as its residents band together to do things for the greater good. She said she believes that is the Council’s intentions, and she applauds their efforts.

Kathy Bunnell, employee, said she works with intelligent people, and they have done a great job in preparing the budget. She noted she does not live in the City of Orem. She lives in Pleasant Grove, and every city is facing the same challenges. American Fork just improved its budget that includes an increase in the property tax. She said she does not speak for a raise for herself, but she has four wonderful ladies who work in her division that take a lot of abuse while providing excellent service. Mrs. Bunnell asked the Council to consider that the employees provide the service because they love the city. Someone had mentioned earlier that they can replace everyone. She invited that person to come to her office tomorrow and start doing her job. She does not appreciate the comments towards Bruce Chesnut. He is a wonderful man, and she supports him and the Council. She said she does not appreciate the cheap shots that are coming from people who do not even pay their utility bills on time. The City has people working here that know what they are doing, and the employees have to take a lot of abuse but they come to work every day and try to provide 100 percent service to everyone.


Neal Winterton, resident, stated he is an Orem employee. He said he believes he is the employee that Mr. Burr referred to earlier. Mr. Winterton said he was misquoted in saying that he was okay with taking two percent from the top employees, and he wanted to clear that up. Mr. Winterton said he had told Mr. Burr that taking two percent from the top to give to those at the bottom is a Marxist philosophy. Mr. Winterton said the reason Orem is such a great place is not because of chance. It is because of the staff members people are taking cheap shots at. Bruce Chesnut has worked for the City for twenty-seven years. He has given his heart and soul to the City night in and night out. Mr. Winterton expressed appreciation for Mr. Chesnut’s service to the City in every capacity in which he has served. Mr. Winterton asked the Council to listen to every comment that is made that evening. He said he respects everyone’s comments and thoughts, but he asked them to also listen to the silent 80,000 in Orem who are happy and content and are not at the City Council meeting because they are happy with the way things are. They are happy with the decisions the City Council is making. They are happy with the tentative budget. They are happy with the services. They are happy with the City Council. They have had it good, and they are happy with the decisions that have been proposed. There is so much rhetoric and misinformation out there.

Melodee Andersen, resident, said she is not related to anyone on the Council, but she is married to Councilmember Andersen. She noticed that everyone that had come up to speak in favor of the property tax increase are the ones that are employed by the City. They have to say nice things about their manager.

Leslie Nelson indicated she is not employed by the City.

Mayor Evans advised that there have been many people who are not employed by the City.

Mrs. Andersen said she just wanted the City Council to realize that.

Amylynn Hahn, resident, noted she only recently heard about the tax increases and the whole bit with UTOPIA, so she is not entirely informed on everything that is going on. With all of the comments that have been going on tonight with the various ways to cut the budget, with most of them being at the expense of the employees’ salaries, which she understands that these employees have worked hard to get to where they are at and their jobs are demanding. She would not like it for someone to come and tell her husband he should give up his pay in order for them to cover expenses for his company. However, she thinks the City should be able to come up with something where they can meet halfway. Her biggest concern with the tax increase that is being proposed it that it sets a precedent that if the City gets into a situation where they have committed the City to more than they can afford, they can just fix the problem by raising taxes. She can appreciate the fact that Orem has not had a tax increase since 1970, if that statistic is correct, but she does not want to set that precedent now. She is concerned with when it will end. She asked whether there is a way to put an expiration on the tax increase so it can be there for the time it takes to pay off their debt for UTOPIA and then it can decrease again. They are proposing a decrease in the cost for garbage service, and people are happy with that. It seems people will also be happy to hear the debt is paid off and they will be able to produce that tax again. Her concern is that they will end up getting themselves in a situation where again they would overcommit themselves. People have started talking about the Center for Story and how the CARE Tax is going to be used for that. All of these things make her a little leery. She would


prefer that Orem sets the precedent for other cities that Orem does not pay for things they cannot afford. They are not going to commit themselves to more projects, like UTOPIA, that could end up being a future tax burden for the residents. She clarified that just because the other 80,000 residents are not in attendance tonight does not mean they have opinions one way or the other or that they are absolutely happy with everything that is going on. Sometimes they do not know and other times they just cannot make it, which has often been her case.

Mayor Evans said when the Council continues the public hearing, staff will clarify some of the things that have been said this evening, so the residents do not go away from the meeting with misinformation. The Councilmembers will give their thoughts and proposals on the feedback they have received through this process.

Mrs. Andersen asked why the City Council will be holding a public hearing on August 14, 2012, if there is a meeting next week. Mayor Evans indicated if the City Council decides to go through with the Truth in Taxation hearing, it is scheduled for August 14, 2012. That date is set by the State. If the City Council decides not to look at the property tax increase, that meeting will not be needed.

Mrs. Andersen questioned if they have to decide as a group to go ahead with that or if each person has a separate vote. Mayor Evans stated the Council will consider input for the next week. They will take the comments they have received from the residents and come to a decision about the budget next week. If the property tax is part of that, they will go ahead with the August 14, 2012. That will be another public hearing to consider the property tax increase itself.

Mr. Wright said he has read the budget book from cover to cover, and he has read the finance book from cover to cover. He has also read the UTOPIA rules and amendments. It started out with an $85 million bond and with all of the amendments, they have now refinanced it for the original amount again. Every two years, they do another amendment. He expressed his concern that it will be refinanced for the original amount again. There are a bunch of questions there, and the Truth in Taxation proposal is in this budget, but it is not mandatory. It is up to this Council to make this decision that they do not need the Truth in Taxation hearing. They can manage this UTOPIA thing the way it has been going. The City is obligated to pay for it. It is a priority.

Mayor Evans said it is correct the City Council will take this feedback and after another public hearing next week, they will have deliberation and come to a decision on this budget. If they decide not to have a property tax increase, there will be no need for the meeting on August 14, 2012.

David Craig, resident, said he is neutral, and he hears two sides of the story. He has heard those completely fighting against the tax increase, and he understands there are financial difficulties. He said he does not mind his taxes going up to help someone else out. However, there is a fiduciary responsibility by the City Council to weigh carefully, because it affects all classes of people, that the funds they are using should be considered sacred. They are hard earned dollars by the people. He said there should be some type of compromise. There are some people who think they should not pay any taxes. He said the critical thing is that there can be cuts made especially in hard and lean times. That is logical and reasonable. He said he did not understand where the City Council stood when he went into the first meeting, but he was told that everyone


was in favor of the budget except for one Councilman. He wanted to hear from that Councilman as to why he opposed it versus why everyone else favored it. Mr. Craig asked whether this is a majority vote that transpires.

Mayor Evans indicated it is done by majority vote, and that will take place next week.Mr. Craig said he is concerned by people who are on tight budgets. It is not just the City taxes that are affecting them. It is the combination of taxes from federal, state and local levels that affect people. As a bystander, he asked the City Council to be mindful of the poor in the valley and be mindful that many residents are well to do and better off than others, but they do have a responsibility to represent the people in a far way and maybe they do have to bite the bucket on both sides.

Mrs. McCandless moved to continue the public hearing to June 19, 2012, at 6:00 p.m. Mr. Seastrand seconded the motion. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner. The motion passed unanimously.

Mr. Chesnut expressed appreciation to the City Council for their willingness to hold two public hearings. In the past they have only had one public hearing during the budget process. He appreciates the passion the residents and employees have for the city. He clarified the following information from comments that had been made:

The City Manager’s Department has a $3.6 million operation budget, and $3.1 million of that is for the Solid Waste Operation.

The $10 million in the Administrative Services Department is the debt service, insurance liability, and the purchasing and warehouse operations.

Mr. Seastrand said Mr. Spencer indicated there were some cost savings that were only applicable spread over a few years. He asked staff to clarify that.

Mr. Pedersen stated Mr. Spencer indicated that savings was really over one year. A good deal of that took place in about a two and one half year period. He talked about the budget being $90 million, but the City budget is actually somewhere around $70 million.

Mr. Sumner stated Mr. Wright had indicated there is a $3.5 million reserve in the water fund. Mr. Chesnut stated that is correct.

Mrs. Black asked about the travel costs for employee training. She asked staff to clarify what steps had been taken to cut those costs.

Mr. Chesnut explained that the numbers were generated by staff. Travel has been limited as far as who goes to what. They have to do certain training within the City to keep certification in specific areas. They are going to workshops and training, and that costs money to attend. As far as attending a conference outside of Utah, they do not participate in those. They have allowed some executive management to go to one conference per year, to receive training in their fields. Travel has been limited and has been cut operationally. That money also includes many classes they attend locally.


Mrs. McCandless said Mr. Moody spoke about the fee increase for the water meters. She said, as she recollects, that is put in the budget every year, and if there is going to be a fee increase, that is part of the budget process.

Mr. Chesnut agreed, saying it reflects all sizes of meters and how much the increase will be. When they do a comparison with other cities, they are comparing the ¾-inch meter. The fee is based on the consumption of water going through those meters. That information is available online in the budget on page 14 under the Fees and Charges section.

Mrs. McCandless then asked about the constitutionality of requiring someone to pay for UTOPIA without having access to the service.

Greg Stephens, City Attorney, said if the City were proposing a separate fee to pay for UTOPIA, that would have some constitutional concerns; however, tax revenue can be used for general government purposes, including UTOPIA.

Mrs. Black noted that Mr. Deauvono had mentioned that property taxes were being used to pay for the streetlights. She asked if that is correct. Richard Manning clarified that no property taxes were being used for streetlights.

Mrs. Street said she wished the room was as full now as it was at the beginning of the meeting. She asked the audience to visit the website www.orem.org/utopia if they are against UTOPIA, or if they think the City should get out of UTOPIA. She said she wants the residents to have accurate information and history. She expressed her wish that the people who are getting signatures on petitions and are distributing information that is negative about UTOPIA were also encouraging the residents to visit this resource, which is part of the Orem City website, to get an accurate accounting of what decisions have been about UTOPIA and where they stand right now. She clarified that Orem is UTOPIA. There is no “them” out there. It is a “we” thing, and “we are UTOPIA.” Orem is one of the sixteen original cities that created UTOPIA in 2002. These cities agreed to form a consortium of cities to band together with their resources to roll out a fiber optic network throughout those municipalities. Part of that initiative was because they have a very high concentration of technology workers and knowledge-based workers. They are raising a very intelligent population in Utah. This is one of those things that is important to the economic development for the entire state and is one of those things that has given them a competitive advantage over the years. It is one of those things they need to be personally and municipally committed to as they move forward. At the time the decision was made by the cities, private enterprise was not doing it. She views fiber to the home and fiber to the business as essential infrastructure. She does not want multiple providers tearing up her streets to put in multiple strands of parallel fiber unless she needs redundant fiber infrastructure for her business. That is when it makes sense, but that is not where they are right now. There are service providers that want to put fiber throughout the city parallel to the fiber that is already being placed throughout the city. She asked the residents to stop and get the information they need to understand the difference between what is a Comcast and what is a UTOPIA. For the past two years, she has served on the UTOPIA Board of Directors. She does not get paid to do that. It is part of her duty as a Councilmember. She spends time with other member cities working with the people who have been hired to manage the day-to-day operations of UTOPIA. Orem has also created a Citizen’s Advisory Committee to help advise the City on how to make UTOPIA more


http://www.orem.org/utopia

successful in the community. She welcomed those interested in participating with this process to leave their contact information.

Mrs. Street then advised that over the last two months as the City Council has received information about UTOPIA, two things have stood out. There are those people who are angry because they think the City should not have never gotten into it. The fact of the matter is that Orem is “it.” They cannot undo that, and they cannot cut off their nose to spite their face. Those people need to understand who UTOPIA is. The other group has said they are mad because they cannot get UTOPIA. That is something that can be addressed something done about. They can get behind UTOPIA and support it. The fact of the matter is that the $185 million obligation is not all Orem’s. Orem is a member city with the other member cities, and that number was never intended to fully build out all sixteen cities. This is not an albatross or a failed enterprise. They are in the middle of a process. The City could choose to make that process go faster. There are things they can do, such as decide to roll UTOPIA out citywide and be even more aggressive. If they had residents who understood what it would take to do that and how quickly it could be done, they might be having a different conversation tonight. It might be a conversation the City needs to have. For right now, as they are discussing the budget, she is passionate about this. She wants people to understand and does not want them to be angry and upset about something they do not have full information about yet. Mrs. said stated this decision does have a far-reaching benefit for the community. When they talk about how cities get paid, the main funding source is sales tax. They spend a lot of time talking about sales tax, and that is indeed part of the problem. They rely on something in a changing world. If the residents want to do something to support Orem, shop local. There are a lot of things within the control of residents to make sure they can pay for City services. Residents can chose not to buy things from Internet retailers that do not collect sales tax. Residents can choose to support UTOPIA and to tell the Council to do whatever it takes to roll it out and make it successful. What that does is help make this an environment where technology workers want to live. Where they live, the housing values go up, and where they live is typically where the shop and eat, which supports the local economy so they can continue to pay for the Recreation Center and the parks. There are decisions the residents can make, and they can direct the Council to make decisions that put the City out there, whether they are politically expedient or not. It may be politically convenient to say no tax, but it is often the people who are willing to say they will do what it takes to be successful and do what it takes to support this community, even if it is not politically expedient. That is where the City is right now. She expressed appreciation for the comments of the people who say please be creative. The City wants to be creative. It is not just what they cut, but good decisions to spend and to make sure they support the services they need to support to help make this a viable and economically vibrant community.

Mr. Andersen stated that he is the one out of six who is against a property tax increase. He said he loves this country, and he thinks he got to come down to earth now because he loves freedom. He does not like to have others telling him what to do. He likes to be able to speak up, and he has to obey the law once it is in place. He just loves this country. They can sit up there and have discussions, and they can get excited, worked up and so forth, but they still manage to not shoot each other. They still manage to have their freedom. The primary reason he is opposed to the property tax increase is he does not think they should do it. He voted against the Truth in Hearing Taxation they held in May because, as with the discussion tonight, most of the people are against it. It could have been settled by the City Council letting the residents vote on a


property tax increase. They could have done that, but they did not. They waited until after the election. Most people did not know what was coming, but he knew. He is a pencil pusher. He had figured it out. He was within $.10 of what the City predicted was going to come, but nobody believed it. He was the odd duck then and still is. He expressed his opinion that when a representative government departs from the will of the people and does not let them know what is coming, they have lost their moral right to represent the people. This whole discussion would not even be held if the residents could have voted on it last year. They would not be discussing these things or others that they will discuss later if they had let the people vote on it. They would not be discussing what they might cut. They would be discussing what they would cut. Provo went through this same thing. They put out all seven of their City Councilmembers in the last years for the same type of stuff—not listening to the vote of the people. They put them out. That is what happens and they have had a few people threaten that here, and that will be decided next year. He said he thinks if there was a vote of the people on this tax increase, if it had been held, it would have been turned down. Mr. Andersen said he likes to think he is one who represents what the people would have done. That is why he is the odd man out here. They would not discuss what might happen, they would discuss what would happen. Mr. Andersen then gave options for cutting the budget, which included:

Eliminate City paid credit card fees $235,000 yearlyo Pass the cost to the user

The City has given the University Mall $11 million over the last 10 yearso Do not give any more money to the mallo Make them carry their own weight like the rest of the businesses have to

Cut the fees the City pays for dues in the amount of $147,000o Utah League of Cities and Towns

Cut Travel Expenses for employee training Make cuts to Economic Development (CEDO)

o Subsidizes some private entities and not others Cut City’s match of employee retirement accounts

o City matches 4 percento $960,000 savingso He is not saying to cut all of this, but it should be looked at

City spends several million dollars on health and dental insuranceo Have employees pay $250 per montho $850,000 savings

Cut proposed computer replacement to $80,000 Cut Councilmembers pay that voted for UTOPIA (humor)

o $150,000 savings, but that would not pay half of 1 months payment for UTOPIA Cut the highly compensated employee wages by 10 percent

o $900,000 savings Sale City surplus land

o He does not have a list of those properties right now, but there is one for $250,000

Turn off half of the street lights.o $337,000 savings


Mr. Andersen said he is sure he will come up with more next week as he gets more information. He concluded that if the residents had been allowed to vote on this, they would not be having this discussion. He expressed his opinion that the residents had no idea what was coming and that is why he has raised these issues. These should not be what they might do and ignore it. These would be what they are going to do. If the people had been allowed to vote, they would be having an entirely different discussion out there about how to spend what they do have and not what they want to have.

Mrs. McCandless expressed appreciation for the residents for coming this evening. She showed a list of the thirty people who spoke this evening, noting that she has eight pages of notes. Mr. Hart wanted to know how the City Council was feeling tonight, but she has always been of the opinion that she likes to get public comment and process it before she comes up with a final decision. There are some things she learned tonight that she would like to discuss with staff. She agreed with Mrs. Street’s comments about UTOPIA, and she is one of the residents who is upset because she cannot get UTOPIA. Mrs. McCandless clarified that the Center for Story has nothing to do with the proposed tax increase. If the residents go to centerforstory.org, they can learn about the funding sources for that project. She indicated that she has received emails and has talked to people. She has made a list of suggestions and has additional suggestions from the comments made this evening. She will compare them to what she believes is in the best interest of the entire city, and she will compare them to the fact that she was elected because people believed in what she stood for. She will go through these suggestions and compare them to what she stands for. That will be a huge factor in how she makes her decision. That is what she was elected to do. She was elected to do her very best in doing what she feels is in the best interest of the community. She reiterated that she is going through the information and comments she has received, and she has met with staff to get clarification on the information. She said next week she will have a whole bunch to say, but tonight she just wants to express her appreciation for the comments and thoughts.

Mr. Seastrand voiced his gratitude for the comments this evening, He has received many comments for and against the tax increase. In the past four years he has been on the City Council, they have made a lot of strides at both one-time cost cutting as well as structural changes. They have asked the employees to do a lot things. They have reduced the number of head counts, which are structural changes. They have asked the employees to do a number of things that were not a part of their normal duties, such as cleaning their own offices, cleaning the bathrooms, and picking up the other duties the City used to contract for, and they have done a tremendous job. They have asked the employees to do quite a bit in shouldering the financial difficulties and challenges the City has had over the last four years. He expressed appreciation to the employees for not only picking up the burden, for working hard, and for doing it with a good attitude. He has worked for organizations before where cost cutting was the standard operating procedure. He knows what it is like, and he knows it is something the City can do. He does not think there is anything the City cannot do here. As a City Council they can say they are going to do this, this, and this. However, he knows that everything they do has a consequence. While they may want to ignore the consequences of some of these decisions, it does not change the fact that there are consequences. For example, they can charge a fee for credit cards, but the end result would be that people would stop using credit cards to pay for that service. The employees would have more checks to process and more employees would be needed to help with that. The County government used to charge a credit card fee for vehicle registration, but they no longer


http://centerforstory.org/

do that because it was counterproductive. Mr. Seastrand said that is not saying the City cannot do it, because they can. They just have to recognize that every action they do has a consequence. What he wants to look are structural changes that are long-term sustainable and to look at one-time costs. Mr. Wright suggested they continue to take more money out of reserves, which would bleed it dry. They can do that, until they reach a point that the State says they have gone too low. However, they have to ask themselves whether that is a prudent move. It does have a consequence. If something should happen, they might not have the financial resources to carry on. Mr. Seastrand said his approach is to look at what he envisions for Orem. Whether it is one that continues to have good services, where people feel safe, how they prioritize the objectives within the city, and how they come to the best most optimized evaluation of how they can provide those services in a way that is a great value to the residents. He said he is proud of Orem City. He is proud of the leaders that came before him. He is proud of the comparison rates with other cities. Orem is a great value. They have great parks, resources, facilities and employees, and that does not come by accident. It comes by great leadership and foresight. He said he feels a responsibility in making this decision, and he does not take a tax increase lightly. He knows it affects a lot of people. He does not take the consequences of budget cuts lightly. He knows that affects people in different ways. He will look at the suggestions that were given, and staff will give their feedback on those. There is an element of what they need to do to maintain the services they have or at least make a conscientious decision that it is okay to cut those services. He said they are fooling themselves if they think they can continue to take things out of the structural side of the budget and there will not be some unintended consequence. Sometimes they just do not know what it will be.

Mrs. Black said this is a serious decision. She expressed appreciation to the staff. She has seen the budget cutting that has gone on and the pain that comes with it. To have people indicate that staff has not been trying to cut the budget is totally not right. Over the last four years, the department heads have met and they have been “all for one and one for all” in saying they will make cuts in their departments to help another department. She applauded staff for that effort. The employees give great value for the service they provide. She noted the City Manager does a wonderful job, and he makes about $30,000 less than other city managers in this valley. He does a great job for the residents and manages 436 full-time employees in addition to a lot of part-time employees. In the private sector he would be paid a lot more than he is in this public sector job. She said she appreciated the value that the experienced professionals give them. The idea of getting rid of all the employees and getting new ones would be very unwise. They need the great experience and professionalism that they have in the City. She said that, as far as the tax consideration, it is a very serious consideration, but one thing she does know is that relying too heavily on sales tax does not help the City because it is such a fluctuating tax. A property tax is even, so they can rely on it better. There needs to be a balance between those taxes. The Council needs to look at that and achieve the right balance. They have not raised the property tax since 1978, and they probably should have raised it slowly over a period of time. She went to a Tax Payers Association meeting where Howard Stephenson said the exact same thing. The City should be having Truth in Taxation hearings every few years. Mrs. Black said as they look at these things, it is a serious matter and she, like the other Councilmembers, is looking at every aspect of it. She expressed appreciation for the efforts people have made to attend the meeting. It is a great effort on their part. She thanked them for their comments and willingness to express their opinions. She thanked them for attending the open houses and being willing to learn the facts and for going to orem.org to learn about UTOPIA and centerforstory.org to learn the real


facts. There has been a lot of misinformation out there that needs to be addressed. She stated if the residents will do that, she promised they will learn things that will help in making a decision. She promised the residents that she will study, she will listen, and will look at all of the aspects of a situation. They have heard a lot of allusions to next year’s election this evening. Last year someone called her up before the election, and said if she voted a certain way on an issue she would gain the support of a lot of people. Mrs. Black said she told that person that she has to look herself in the mirror. What she does with every vote is to study all sides, and she makes the very best decision she can. Then she can say she has done what is right. That is what she will continue to do. She never makes a decision until after the public hearing is over.

Mr. Sumner echoed what Mrs. Black said about the City employees. They are the best, and many of them have been here thirty to thirty-five years. They are dedicated to their jobs. Mr. Sumner said he will not even consider cutting wages or benefits. He has been in on that when a publisher came in and cut wages thirty percent. The morale of that organization is still suffering today. He welcomed anyone to come and talk to him about that situation. He has been on the City Council for two and one half years, and this is probably the toughest decision and the toughest vote he will be involved in during his tenure. He has not made up his mind on what to do and will not do so until after the public hearing next week. He has emailed the City Manager some very uncomfortable questions on his end. Mr. Sumner said he is not a big fan of UTOPIA, but in 2002 that train left the station. Cities do not take out bankruptcy, so they are obligated for that bond. He will have more to say next week when he receives feedback from staff on his questions. He invited any resident to call or email him. He values their input, and he listens. He wants to do the very best he can and do it with his head and not necessarily his heart.

Mayor Evans indicated there are multiple sides of the issue. Mr. Andersen believes that if this went to a vote of the people, they would vote against it. However, he has talked with people who support it. There has been a lot of talk about the City employee salaries. He has worked in both the government and the private sectors, so he sees both perspectives. He is able to balance it. One of the reasons he left State government and went into the private sector fourteen years ago is because he got tired of not being able to get rid of people that were not producing or pay the people that were. He has looked at the studies, and he understands the HAY System and Cold Pepper. He knows what they do for benefits, and in the last year, his company has lost some really good people because he was not going to pay them more money. He has had to adjust his employee’s salaries where he could. The area he is focusing on a lot is the benefits because he has to do that for his company as well. He said Mr. Chesnut is a lot more than $30,000 down from what someone would be making running a business the size of this city. Some industries do better in the economy than others, and the City has to represent all ends of the spectrum. The City Council has never said it will raise the property tax. The vote of 6 to 1 was to consider a property tax increase. If they had already decided to raise the tax, there would be no reason to be here tonight. The City Council is really listening. Mayor Evans said Mr. Andersen has his beliefs, and he is true to those. The rest of the Council stated they would look at that in the Tentative Budget, but none of them have said that they are going to do that. Mayor Evans indicated that back in October his life was busy and happy. He was not going to put his name on the list when Mayor Washburn passed away, but in the end he decided to because he did not come to this job with an agenda. He had not been tracking the Center for Story. He just loves Orem and wanted to contribute and keep Orem going. He asked the residents to keep giving feedback and input to the Council. The Council will see a lot of the same faces next Tuesday,


and they will try to come together as a Council to get a majority vote to pass a budget that is prudent and that keeps the great services moving ahead, while still realizing the times they are in.

Mr. Chesnut indicated State law requires the City to adopt a working budget by June 22, 2012. He noted if the City Council has a different direction for staff, they need to let him know as soon as possible.

COMMUNICATION ITEMS

There were no communication items.

CITY MANAGER INFORMATION ITEMS

There were no information items.

ADJOURNMENT

Mrs. McCandless moved to adjourn the meeting. Mrs. Street seconded the motion. Those voting aye: Councilmembers Hans Andersen, Margaret Black, Jim Evans, Karen A. McCandless, Mark E. Seastrand, Mary Street, and Brent Sumner. The motion passed unanimously.

The meeting adjourned at 10:31 p.m.

Donna R. Weaver, City Recorder

Approved: June 19, 2012


Documents

CITY OF OREMexe.orem.org/minutes/CCMin/2001-2050/2012/2012-06-12… · Web view12/06/2012 · CITY OF OREM. CITY COUNCIL MEETING. 56 North State Street Orem, Utah. June 12, 2012