CITY OF OREM CITY COUNCIL MEETING 56 North State Street, Orem, Utah June 12, 2007 5:00 P.M. STUDY SESSION CONDUCTING Mayor Jerry C. Washburn ELECTED OFFICIALS Councilmembers Margaret Black, Les Campbell, Dean Dickerson, Karen A. McCandless, Mark E. Seastrand, and Shiree Thurston APPOINTED STAFF Jim Reams, City Manager; Richard Manning, Assistant City Manager; Paul Johnson, City Attorney; Jeff Pedersen, Administrative Services Director; Stanford Sainsbury, Development Services Director; Bruce Chesnut, Public Works Director; Mike Larsen, Public Safety Director; Karl Hirst, Recreation Director; Louise Wallace, Library Director; Donna Weaver, City Recorder; and Rachelle Conner, Deputy City Recorder REVIEW OF AGENDA ITEMS The Council and staff reviewed the agenda items. CITY COUNCIL NEW BUSINESS The Council and staff discussed the SummerFest activities from the previous weekend. The general consensus was that the celebration was a success. Councilmember Black Mrs. Black read a letter from an eleven-year-old girl named Carolyn requesting the City Council make it illegal for residents to bring large dogs, such as pit bulls, to parades. 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 Jerry C. Washburn ELECTED OFFICIALS Councilmembers Margaret Black, Les Campbell, Dean Dickerson, Karen A. McCandless, Mark E. Seastrand, and Shiree Thurston City Council Minutes – June 12, 2007 (p.1) APPOINTED STAFF Jim Reams, City Manager; Richard Manning, Assistant City Manager; Paul Johnson, City Attorney; Jeff Pedersen, Administrative Services Director; Stanford Sainsbury, Development Services Director; Bruce Chesnut, Public Works Director; Mike Larsen, Public Safety Director; Karl Hirst, Recreation Director; Louise Wallace, Library Director; Donna Weaver, City Recorder; and Rachelle Conner, Deputy City Recorder INVOCATION / INSPIRATIONAL THOUGHT Lana Herre PLEDGE OF ALLEGIANCE Councilmember Seastrand APPROVAL OF MINUTES City Council Work Session of May 1, 2007, City Council Meeting of May 8, 2007, City Council Tour of May 14, 2007, Joint Orem/Provo City Council Meeting of May 22, 2007, City Council Meeting of May 22, 2007, and the Joint City Council/Alpine School District Meeting of June 6, 2007 Mrs. Thurston moved to approve the minutes of the City Council Work Session of May 1, 2007, City Council Meeting of May 8, 2007, City Council Tour of May 14, 2007, Joint Orem/Provo City Council Meeting of May 22, 2007, City Council Meeting of May 22, 2007, and the Joint City Council/Alpine School District Meeting of June 6, 2007. Mr. Seastrand seconded the motion. Those voting aye: Mrs. Black, Mr. Campbell, Mr. Dickerson, Mrs. McCandless, Mr. Seastrand, Mrs. Thurston, and Mayor Washburn. The motion passed unanimously. MAYOR’S REPORT/ITEMS REFERRED BY COUNCIL Upcoming Events The Mayor referred the Council to the upcoming events listed in the agenda packet. Upcoming Agenda Items The Mayor referred the Council to the upcoming agenda items listed in the agenda packet. Appointments to Boards and Commissions Mayor Washburn recommended Steve Baugh be appointed to serve on the Transportation Advisory Commission and Gamaliel Cancino-Macario and Anne Bishop be appointed to serve on the Library Advisory Commission. Mr. Seastrand moved to appoint Steve Baugh to serve as a member of the Transportation Advisory Commission and Gamaliel Cancino-Macario and Anne Bishop to serve as members of the Library Advisory Commission. Mr. Campbell seconded the motion. Those voting aye: Mrs. Black, Mr. Campbell, Mr. Dickerson, Mrs. McCandless, Mr. Seastrand, Mrs. Thurston, and Mayor Washburn. The motion passed unanimously. City Council Minutes – June 12, 2007 (p.2) Recognition of New Neighborhoods in Action Officers Joyce Johnson, Neighborhood Organization Specialist, presented Mark Bishop as the new chair in the Aspen Neighborhood. Mr. Bishop was invited to shake hands with the City Council. PERSONAL APPEARANCES Time was allotted for the public to express their ideas, concerns, and comments on items not on the agenda. Lana Herre, 349 West 1410 South, advised the City owns a parcel of land in her neighborhood that the neighbors would like developed as a park. She indicated she has a petition, which was signed by the neighbors on the east side of the property, expressing their favor of having a park at that location. The neighbors do not want the property sold to developers. Mr. Reams clarified that some of the neighbors have wanted a park in that area for sometime; however, there were access issues with some of the neighbors. They have possibly resolved those issues. The neighbors were told that the City engineers would have to survey the property and look at a design. It would then be brought to the City Council to determine whether to fund the park in the next year’s budget process. This may have to be a multiyear project. Carolyn McCartney, 326 West 1450 South, indicated that Jerry Ortiz, former Recreation Director, had previously developed a site plan for this park. There have been some preliminary plans done. She advised they talked with the neighbors on the west side a number of years ago about this concept, and they were in favor of it. There will be a number of footpaths in the park, which will allow neighborhood access from the west side. This park will provide a wonderful walking place for the neighborhood. Mrs. Black questioned whether this park would be mainly used as a walking path area. Mrs. McCartney stated that due to the lay of the land, there would not be space for a ball field. The property is too sloped. The previous design showed the park having a small playground and a picnic pavilion. Leo Lines, 1661 South 400 West, stated he is the chair for District 2 in the Lakeview Neighborhood. He presented a number of suggested improvements for his neighborhood, which included: Constructing a cul-de-sac at the top end of Hidden Hollow Condemning the Peterson property and putting 400 West through to 1430 South o Placing the road on the very east end so the Lakeview Condominiums are on one side of the road and the remaining Peterson property is on the other side Extending 1600 South to the east and then to the north to connect with 360 West Allowing only single-family residential on the east side of Sandhill Road Constructing a cul-de-sac south of the roundabout on 2000 South o Sell the land for development that would not connect to 2200 South o Construct a cul-de-sac at 2100 South from the Legacy at the Ercanbrack Development o Put an emergency exit between 2100 South and the old Sandhill Road City Council Minutes – June 12, 2007 (p.3) Carolyn McCartney, 326 West 1450 South, stated that Mr. Lines proposal directly affects the previous request for the park. She indicated that 1450 South is a much narrower road than Hidden Hollow Road, and there are many blind corners. Mayor Washburn commented that the City Council cannot make any decisions on the items presented in the personal appearance portion of the meeting. The Council will look at the requests and go through a formal process before any recommendations are made. Mayor Washburn noted these requests would be forwarded to the Transportation Advisory Commission to evaluate. CONSENT ITEMS There were no consent items. SCHEDULED ITEMS 6:15 PM PUBLIC HEARING ORDINANCE – Amending Sections 22-7-12(A), 22-7-12(B)(2), and 22-7-12(G)(2) of the Orem City Code Pertaining to Development Standards and Requirements in the PRD Zone Stanford Sainsbury, Development Services Director, reviewed a request that the City Council, by ordinance, amend Sections 22-7-12(A), 22-7-12(B)(2), and 22-7-12(G)(2) of the Orem City Code Pertaining to development standards and requirements in the PRD zone. He advised the Planning Commission did not give a recommendation due to the lack of a majority vote of 3 to 2. The applicant requests the City Council amend the Orem City Code to allow high-density PRD developments between Sandhill Road, I-15, 1500 South, and 2000 South. Currently, highdensity PRDs are only allowed north of Center Street and between Interstate 15 and 1200 West. High-density PRDs allow up to sixteen units per acre and can be stacked. The height shall not exceed forty feet and forty percent of the property must be in landscaping. This request encompasses approximately twenty-seven acres. Currently this area is made up of two zones, R8 residential and Highway Services. The applicants own 7.31 acres of property in this twenty-seven acre area and would like to develop a multi-story PRD with condominium units similar to what exists between 1200 West and I-15 north of Center Street. If the text amendment is not approved, there is no need to discuss the rezone application because it is based on the proposed amendment to the PRD ordinance. From a traffic perspective, a high-density PRD obviously produces greater traffic numbers than the current R8 zone. Traditional single-family neighborhoods generally produce fourteen trips per day per unit. Town homes and stacked units generally produce ten trips per day per unit. Staff is supportive of a traditional PRD zone in the residential area since traditional PRDs produce the same or less traffic than single-family neighborhoods. Traditional PRDs produce between six and eight trips per day per unit. Although there is a wide range of traffic numbers that can be produced from the commercial “Highway Services” zone, a high-density PRD and the kind of commercial that would be developed along Sandhill Road probably have similar numbers. City Council Minutes – June 12, 2007 (p.4) Staff has several concerns regarding this request. Allowing all of the properties between 1500 South and 2000 South, and Sandhill Road and I-15 to be eligible for high-density PRDs would allow everyone to ask for stacked units at a density of sixteen units per acre. Properties already zoned PRD would automatically have the new high-density PRD standards (former Steve Strait property). Staff feels the City should deal with each property independently, based on the developer’s proposal as well as the property’s size, shape, topography, traffic production, location, configuration, land use, and how these considerations relate to the surrounding properties. Staff is also concerned with the request since this will create stacked units in close proximity to Utah Valley University (UVU). Although only three students are allowed in each unit, the very nature of this development may entice owners of these units to rent to more than three students. We have not noticed this concern with the stacked units along 1200 West that are north of Center Street. We believe this is due to the fact that these units are not in proximity to UVU. The enforcement issue for student housing is an ongoing challenge for staff in proximity of UVU. For this reason, staff is concerned about any development that might add additional enforcement challenges. Staff prefers to see a traditional PRD development that does not contain stacked units. As mentioned previously, this concept was recently approved by the Council on the Steve Strait property. Staff could also see a development with town homes or twin homes but with a density less than what is requested. In Orem, side-by-side town home or twin home units under individual ownership have generally encouraged young couples or families to reside there as first time homeowners. Students will generally be excluded because of the higher rent price that would be required in a town home verses stacked units. There are currently 205.11 acres of Highway Services in the City with 8.1 acres left undeveloped. Highway Services is an important zone designed to meet the needs of the traveling public in close proximity to I-15. Staff is concerned with the reduction of available Highway Services. This property has excellent freeway visibility and is close to the University Parkway interchange. Although housing is the hot product right now, it is important to keep a balance between residential, commercial, and industrial. Staff also has concerns with the design. Every developer wants a zone that allows sixteen units per acre. The burden of proof is on the applicant to show why the current zones should be changed to allow sixteen units per acre. There ought to be a “wow” factor or at least a very good reason before a zone is changed to this high of density. The project is comprised of three-story stacked twelveplexes and town-homes. Although this could certainly be a nice project, there has been nothing that has convinced staff that it is better to change the zone than to leave it as it is. In the applicant’s favor, stacked units are more affordable and this development could assist in home ownership for those who do not have the means for a more expensive single-family, town, or twin home. This is an issue that is constantly being brought to staff’s attention by many who are seeking home ownership. The specific property the developer would like to apply the high-density PRD zone to is located adjacent to Interstate 15. The property to the south is a single-family residence, which is then adjacent to a PRD development with thirteen town home units at 7.7 units per gross acre. Property to the east is a single-family residential and the property to the north is zoned Highway Services. City Council Minutes – June 12, 2007 (p.5) 22-7-12 Development Standards and Requirements A. Density. A PRD located north of Center Street and between Interstate 15 and 1200 West and south of 1500 South between Sandhill Road and Interstate 15 may be developed at a maximum density of sixteen (16) dwelling units per gross acre. A PRD located in all other areas of the City may be developed at a maximum density of eight (8) dwelling units per gross acre. In order to encourage redevelopment of dilapidated or blighted areas, the total number of allowable dwelling units in a PRD may be increased by three (3) additional dwelling units for every principal residential structure that is removed from the property on which the new PRD is located. However, the total density including any bonus for removing an existing dwelling may not in any case exceed twenty (20) units per acre for a PRD located north of Center Street and between Interstate 15 and 1200 West and south of 1500 South between Sandhill Road and Interstate 15, or ten (10) units per acre in all other areas of the City. B. (2) Height. Areas north of Center Street and between Interstate 15 and 1200 West and south of 1500 South between Sandhill Road and Interstate 15. Structures in PRDs located north of Center Street and between Interstate 15 and 1200 West and south of 1500 South between Sandhill Road and Interstate 15 shall not exceed three (3) stories above grade and shall not exceed a height of forty (40) feet above grade G. (2) Landscaping. At least fifty percent (50%) of the net acreage (area of the development less public and private streets) of the entire development shall remain permanently landscaped. However, for a PRD located north of Center Street and between Interstate 15 and 1200 west and south of 1500 South between Sandhill Road and Interstate 15, the minimum landscaped area shall be forty percent (40%) of the net acreage of the entire development. Mrs. McCandless stated the proposed language allows up to twenty units per acre with density credits. Mr. Sainsbury clarified that the standard density is sixteen units; however, if the developer tears out existing houses, they can receive a density credit for up to twenty units per acre. Jay Henrie, applicant, introduced the members of his development team--Andy Davis, Curtis Livingston, Mark Hampton, Roger Dudley, Laren and Kelly Little. Mark Hampton, Rimrock Construction, indicated he is excited about this project and asked the City Council whether they had questions for him about the construction. Mayor Washburn advised that the Council is hearing the request for the PRD ordinance amendment at this time, and the actual project is the next item on the agenda. Mr. Henrie addressed some issues in the staff report. He noted that when he initially brought this request to the City, he wanted to apply for a PD zone, so this application would only affect his property. Staff told him the requirements for the PD zones had changed, and he would have to apply for a PRD. Mr. Henrie also stated that he does not want this development to turn into student housing, and the economics are not conducive for student housing. The developers will add whatever they can to the CC&Rs and bylaws to keep the students from living in this development. Mr. Henrie then briefed the Council on the benefits of the proposed project, which included: Combining five separate parcels for a total of 7.31 acres o 2.61 currently zoned R8 o 4.85 currently zoned Highway Services Condominium/Town home development – all units will be sold o 84 condominiums o 20 town homes City Council Minutes – June 12, 2007 (p.6) Large amount of open space Retains residential nature of neighborhood Provides affordable housing for young couples Less traffic impact on neighborhood than commercial development Visual benefit o Beautiful project o Well maintained landscaping Enhance the property values of the neighborhood Mr. Henrie advised that reducing the density for the project is not a viable option for them. It is a difficult property to develop, and the location is not the greatest location for a residential development. The City Council has approved other developments at this density. The developers would have to reduce quality if they were forced to reduce the density. He expressed his opinion that this is a “win-win” situation for the developers, the neighbors, and the City. Mr. Henrie advised they would be willing to enter into a development agreement with the City, and they would add restrictions to their CC&Rs prohibiting students from living in the development. He also proposed establishing a neighborhood advisory committee to invite neighborhood input. Mrs. McCandless asked Mr. Sainsbury to explain why the applicants were directed not to apply for a PD zone. Mr. Sainsbury explained the Council changed the requirements for PD zones and directed staff not to have requests come to them for a residential PD zone with a higher density. Mayor Washburn questioned what the advantages are for the applicant applying for a PD zone as opposed to the PRD language amendment. Mr. Sainsbury explained the PD zone applies to a specific property, while the PRD amendment would apply to numerous properties. Mr. Johnson read from the ordinance that indicated the PD zone cannot be used to increase density. Mrs. Black questioned whether the main purpose for PRD developments was to provide more housing options for senior citizens. Mr. Sainsbury noted that most of the PRD developments are geared for the senior population. They were designed to reduce the traffic impact on neighborhoods. The evidence has shown that most of the PRDs in the City do house the senior population. But there is also a high density PRD designation that is not meant to attract seniors. Mayor Washburn opened the public hearing. Mary Johnson, 434 West 1840 South, stated that she respects everything the developers are trying to do in maintaining the residential feel of the neighborhood. She indicated she represents the neighbors that surround the proposed development. She said they agreed with Mr. Henrie that they do not want anymore commercial in this area, and they do want a quality residential housing project; however, they would like a lower density for the following reasons: They received a guarantee from the City that the remaining property on the west side of Sandhill Road would be developed at residential. The proposed density is in violation of the Orem City Code, which currently allows eight units per acre. o The proposed development is asking for sixteen units per acre. City Council Minutes – June 12, 2007 (p.7) o This could set a precedence for the neighboring property owners The proposed development would increase the traffic in the area The higher density housing proposal would attract student rentals o It would be difficult to control who would be living in the units o The higher cost of the units will not deter people from renting them to students The high-density development would lower the value of the existing homes The current student housing in Orem has never been at full occupancy R8 developments have proven to be viable in this area o The City Council could require a twin home development on the property o It is not the responsibility of the City Council to make sure the developers make as large of profit as possible Ms. Johnson requested the City Council say no to the higher density and no to more commercial on Sandhill Road. Mr. Seastrand stated the City Council does not have the option to dictate that the developer has to build twin homes on the property. The parcel is zoned R8 and Highway Services, and the City Council cannot prohibit someone from requesting a commercial development on the Highway Services portion of the property. He noted the property owner could place anything allowed in the HS zone on the property if the City Council were to deny this request. When he asked which option Ms. Johnson would prefer, she commented they would prefer the Council say no to the PRD changes, and they would have deal with the commercial later. Rich Melville, 1890 South Sandhill Road, read a letter from Mike Whimpey, who is out of town. He requested the City Council say no to the project. The Development Review Committee has determined this application is not consistent with the General Plan. The PRD zone was developed to attract the senior population; however, this proposal would attract student housing. Orem staff has also recommended denying this request. Marion Baxter, 466 West 1640 South, advised she has lived in the area for twenty-five years. The property in this proposed request has two different zones. She had asked many of the residents on the east side of Sandhill Road whether they would choose a commercial or residential development with sixteen units per acre. Many of them said they would choose the higher density residential because they would rather have that then the unknown of the commercial. She recommended having a development agreement and establishing a neighborhood architectural committee assigned to this project that would be involved in every aspect of the development and possibly continue for other projects. LeAnn Swanson, 1756 South Sandhill Road, advised that she has lived in this area for ten years and has continually fought for the preservation of her neighborhood. She indicated the City Council recently approved a nice residential development on the Strate property and questioned why the Council would zone the property one hundred and fifty feet to the north from a R8 zone to a commercial zone. She advised that would not be fair to Mr. Strate. Ms. Swanson indicated she has lived by commercial developments and prefers residential. She noted she would prefer a twin home development like Tanglewood to the proposed development; however, she would prefer higher density to commercial. City Council Minutes – June 12, 2007 (p.8) Ms. Swanson then said she has a business behind her home that is in the county. She was told that she could not use her residential property as an access to the business behind her home. She indicated that the front part of the Davis property is residential and the back part is HS. She questioned whether he could access the HS portion from the residential. Mr. Sainsbury indicated he would be allowed access to the back property. Teresa Pond, 1785 South Sandhill Road, stated that she would rather have R8 on the property rather than commercial. This development will affect the homes on the east side of Sandhill Road the most. Reza Santi, property owner 1735 and 1745 South Sandhill Road, expressed his opinion that Utah Valley State College is going to continue to grow, and there will be more of a need for student housing. He advised that it would be good to have the housing spread out to the south of University Parkway. Mr. Santi stated that most of the concern he has heard has been the traffic impact. He advised that most of the traffic on Sandhill Road is accessing I-15. He suggested the City talk with the Utah Department of Transportation (UDOT) about putting an entrance to I-15 south of 2000 South at Provo’s 1700 North. Mayor Washburn stated that the City has already recommended that UDOT construct a collector/distributor road along the freeway to help with the traffic in that area. Leo Lines stated that Mrs. Swanson does not want to live next to commercial; however, she has a commercial business behind her home. Mr. Lines indicated the property was brought in as R-1-8, and it was said that the property would never develop as R-1-8. He indicated that the Council should not have any more residential on the west side of Sandhill Road because of safety issues with children crossing the street. Alvin Witt, 1611 South Sandhill Road, expressed concern with the high-density of this request; however, he said he understands it is not feasible to require single-family homes. He stated this development is straight across the street from his home, and he would prefer the residential idea to commercial. Mr. Henrie commented that Bill Rouse, Lakeview Neighborhood chair, had mentioned that he is in favor of this application. Mayor Washburn questioned how many unit credits the developers could receive by removing the homes on the property. Mr. Sainsbury explained the developer may receive three extra units for each home they remove. Mr. Sainsbury advised that could increase the maximum density of this project to sixteen and one half units per acre. Andy Davis, applicant, read two letters from residents on Sandhill Road stating that they do not want commercial on the proposed property. Mayor Washburn closed the public hearing. City Council Minutes – June 12, 2007 (p.9) Mrs. McCandless thanked the neighbors and developers for their efforts in working together. The developers took on a difficult situation when they purchased this property. She said the applicants have done the best they could with their proposal and presentation. She expressed the market may change and rents may be competitive, which might allow students to live there. Mrs. McCandless stated she understands Mr. Lines’ comments about children getting hurt crossing the street; however, there are many busy streets in Orem that have homes on both sides of the road. She commented that she likes the idea of having several pieces of property developed at the same time. Mrs. McCandless advised that the proposed ordinance would affect many parcels of property in that area, and she has to look at the big picture. This request does not comply with the General Plan; however, the General Plan can be changed depending on the nature of the area. Many property owners could come to the City Council with a high-density request, and the Council would have to approve them based on this application unless the Council could find a valid reason to deny the request. This is a beautiful proposal; however, she voiced concern with the wider applicability of the zoning. Mr. Seastrand stated he is struggling with the unknown. He expressed that he was impressed with the individuals that spoke this evening because they showed a true understanding of the challenges involved with this area. He thanked the developers for working so hard with the neighborhood. He stated he agrees with Mrs. McCandless and her concern for the high-density and future applications. Mrs. Black stated she is uncomfortable with the density, and that is the bottom line. She said would feel better if there were two less buildings and more open space. Mr. Dickerson noted he was uncomfortable with the density until he spoke with Mr. Henrie and Ms. Baxter. He indicated he would like to see residential developed on this property rather than commercial, and this project is probably the best the city will get in regards to this property. He echoed Mr. Seastrand’s compliments on the neighbors and developers working so well together. Mayor Washburn asked staff what options the Council has in terms of negotiating density for this project. Mr. Johnson noted the City Council could approve sixteen units per acre or anything less. Mrs. McCandless asked whether this application would affect the neighborhood north of University Parkway if the Council wanted to lower the density. Mr. Johnson stated it would have the same application that the sixteen units would have had. Mrs. McCandless then said that would not be fair to the property owners on the north side of the Parkway because they would not have known their density could have been reduced. Mayor Washburn questioned whether they could limit the density for this project only. Mrs. McCandless commented that she thinks they could; however, they would have to change the language in the ordinance. She suggested adding a sentence that would only limit the density south of 1550 South between Sandhill Road and I-15. Mayor Washburn asked Mr. Henrie whether they would be agreeable to the limited density. Mr. Henrie said they could look at the numbers; however, they had previously decided they would not be interested in anything less than sixteen units per acre. They would be interested in limiting the density to their property only, which is what they had wanted from the beginning. City Council Minutes – June 12, 2007 (p.10) Mr. Seastrand advised that Mr. Henrie had indicated earlier that they could not decrease the density without reducing the quality of the development. He asked whether the developers could look at a few minor quality enhancements that would make the lower density more feasible. Mr. Henrie advised they did not anticipate this type of discussion. They were just prepared for a yes or no vote. Curtis Livingston, applicant, stated the purpose of this application was for the applicant’s lot. The important thing to note is the City Council has the ability to limit this request to just this property. Mr. Johnson noted that they could do that; however, the Council would have to approve future applications at this same density unless they had a very good reason to deny it. Mr. Campbell questioned why the Council could not allow a PD zone on this property. He asked whether they could go back through the process and approve this request as a PD zone. Mr. Johnson clarified that even if this were to be a PD zone, other neighbors could request a PD zone with the same density. The Council would have to allow those also unless they had very good reasons for denial. Mrs. McCandless moved, by ordinance, to amend Sections 22-7-12(A), 22-7-12(B)(2), and 22-7-12(G)(2) of the Orem City Code pertaining to development standards and requirements in the PRD zone with the changes that a PRD located north of Center Street and between Interstate 15 and 1200 West may be developed at a maximum density of sixteen dwelling units per gross acre. A PRD located south of 1500 South between Sandhill Road and Interstate 15 may be developed at a maximum density of twelve dwelling units per gross acre. The density bonus for removing existing homes would be removed. The motion failed for lack of a second. Mayor Washburn noted the Council is struggling with the global impact of this application. There would be a huge impact on this area if all of the undeveloped parcels were to go high-density residential. Mr. Reams stated when staff looks at the impact they first look at traffic. This application would have approximately the same impact as a commercial development at this density. The traffic impact would be lower with a smaller density. It is hard to be exact without knowing what commercial use would go into that property. Mayor Washburn suggested changing the density to a maximum of fifteen units per acre and removing the density credit. Mr. Campbell moved, by ordinance, to amend Sections 22-7-12(A), 22-7-12(B)(2), and 22-7-12(G)(2) of the Orem City Code pertaining to development standards and requirements in the PRD zone. Mr. Dickerson seconded the motion. Mrs. McCandless expressed concern with the other properties along Sandhill Road. The City could end up with hundreds of units in that area. This change would realistically affect the entire corridor along Sandhill Road. City Council Minutes – June 12, 2007 (p.11) Mr. Seastrand stated the Council could deny the other applications if there is a legitimate reason to deny. Mr. Johnson clarified that there could be valid reasons for denial; however, none readily come to mind. Mr. Dickerson questioned whether Mr. Campbell’s motion was for this property only. Mr. Campbell stated he would prefer to have it specific for this property. Mr. Campbell made a substitute motion to include that the amendment was for this property only, the density would be limited to sixteen units per acre, and the density credit would be removed. Mr. Dickerson seconded the substitute motion. Mrs. McCandless expressed her opinion that it is bad public policy to do this. Mrs. Thurston indicated this reminds her of another part of town that a developer said was difficult to develop unless there was an increased density. She said she agrees with Mrs. McCandless that the Council will be opening this up to problems. Mr. Campbell noted Orem is running out of areas for affordable housing for young married couples to get started. He said he sees this as one of those opportunities. Mrs. McCandless responded she is not against affordable housing. She said she is very much in favor of providing affordable housing, but she is concerned with the wider implication of this application. Mr. Seastrand expressed there is a greater potential of having a sound barrier wall placed to separate the area from I-15 if there is residential development rather than commercial. He stated he does not like the sixteen units per acre; however, he would prefer residential to commercial. Mayor Washburn called for a vote. Those voting aye: Mrs. Black, Mr. Campbell, Mr. Dickerson, Mr. Seastrand, and Mayor Washburn. Those voting nay: Mrs. McCandless and Mrs. Thurston. The motion carried with a majority vote of 5 to 2. 6:15 PM PUBLIC HEARING – Brampton Park ORDINANCE – Amending Section 22-5-3(A) of the Orem City Code and the Zoning Map of Orem City by Rezoning Property Located Generally at 1700 South Sandhill Road from Highway Services and R8 to PRD Mr. Sainsbury reviewed a request that the City Council, by ordinance, amend Section 22-5-3(A) of the Orem City Code and the Zoning Map of the City of Orem by rezoning property located generally at 1700 South Sandhill Road from Highway Services and R8 to PRD. He advised the Planning Commission did not give a recommendation due to the lack of a majority vote of 3 to 2. The applicant request the City Council amend the Zoning Map by changing the zone on 7.91 gross acres located generally at 1700 South Sandhill Road from R8 and Highway Services (HS) to PRD. The purpose for this PRD zone is to construct 114 units of condominium housing. Applying the PRD zone to this property will allow a high-density PRD development with up to sixteen units per acre. City Council Minutes – June 12, 2007 (p.12) The applicants’ proposed development consists of seven buildings of three-story stacked units and seven buildings of town home-style units. The total number of units is 114 on 7.31 acres or a density of 15.6 units per gross acre. The applicants desire to condominiumize all units for individual ownership. The subject property is located adjacent to Interstate 15. The property to the south is a single-family residence, which is then adjacent to a PRD development with thirteen town home units at 7.7 units per gross acre. Property to the east is single-family residential and the property to the north is zoned Highway Services. Mayor Washburn opened the public hearing. No one came forward to speak, so the Mayor closed the public hearing. Mr. Seastrand moved, by ordinance, to amend Section 22-5-3(A) of the Orem City Code and the Zoning Map of the City of Orem by rezoning property located generally at 1700 South Sandhill Road from Highway Services and R8 to PRD. Mr. Campbell seconded the motion. Mrs. McCandless commented that she is going to vote aye on this because the Council approved the previous request. There is a law on the books that states this can happen here, and she said she feels bound that she needs to do this. Mrs. Thurston noted she is going to vote no because she wants to stay consistent. Mayor Washburn called for a vote. Those voting aye: Mrs. Black, Mr. Campbell, Mr. Dickerson, Mrs. McCandless, Mr. Seastrand, and Mayor Washburn. Those voting nay: Mrs. Thurston. The motion carried with a majority vote of 6 to 1. 6:15 P.M. PUBLIC HEARING -Northgate ORDINANCE – Amending Section 22-5-3(A) of the Orem City Code and the Zoning Map of the City of Orem by Rezoning Property Located Generally at 1023 North 900 West from the R8 to the PD-22 Zone ORDINANCE – Amending Various Sections of 22-22-35 and Appendix “Q” of the Orem City Code Pertaining to the PD-22 Zone Mr. Sainsbury presented a Planning Commission recommendation that the City Council, by ordinance, amend Section 22-5-3(A) of the Orem City Code and the Zoning Map of the City of Orem by rezoning property located generally at 1023 North 900 West from the R8 to the PD-22 zone, and by ordinance, amend various Sections of 22-11-35 and Appendix “Q” of the Orem City Code, as specified in the ordinance, pertaining to the PD-22 zone. The applicant proposes to rezone approximately 1,689 square feet of property from the R8 to the PD22 zone. The property is located in the northeast corner of the PD-22 zone. The applicant also proposes to modify the concept plan in Appendix “Q” to show the additional property. In addition to the rezone, the applicant proposes several changes to the concept plan and to several sections of the PD-22 zone. The changes are outlined as follows: City Council Minutes – June 12, 2007 (p.13) 1. Amend the concept plan to add additional property to the residential only area. The current line separating the residential only area from the commercial area will shift 165 feet to the west to create the additional area. The proposal is a way to offset the cost of incorporating the large detention area within the open space of Sorrento Village requested by the City. 2. The concept plan will also show an access on 900 West between 800 North and 880 North. The current concept plan does not show an access. 3. Amending a portion of Section 22-11-35(D) of the Orem City Code eliminating SLU 4712 Cellular Communication Antennae from the permitted uses in the PD-22 zone. Currently, Article 22-13 Wireless Telecommunications regulates cellular communications and it is not necessary to list SLU 4712 in the PD-22 zone. Section 22-11-35(D) Standard Land Use Code - 4. Permitted Uses. The following uses shall be permitted in the PD-22 zone: Category - Amending Section 22-11-35(L)(1) of the Orem City Code which shifts thirty-four residential units from the mixed-use areas to the residential only areas, but will not increase the overall number of units allowed in the PD-22 zone. Section 22-11-35(L)(1) 1. Allowable Density for Residential Units. A maximum of seven hundred (700) residential dwelling units shall be allowed in the PD-22 zone. These units may be located in the development as follows: Unit Location Residential Only Area Mixed-use Area Mixed-use Towers Area # of Units Up to 430 Up to 112 Up to 158 If the “Residential Only Area” is developed with less than 430 residential units, the difference between what is developed in the Residential Only Area and 430 may be moved to either the “Mixeduse Area” or the “Mixed-use Towers Area”. 5. Amending Section 22-11-35(2)(a) of the Orem City Code by allowing the owners of preexisting cellular monopoles within the PD-22 zone to obtain a conditional use permit in order to enclose or camouflage an existing monopole and exceed the maximum height outlined in appendix “Q” Section 22-11-35(L)(2)(a) a. Heights. No building roof structure shall exceed the height limitation specified in Appendix Q. However, notwithstanding the foregoing, the City Council may grant a conditional use permit to allow a stealth facility (as defined in Section 22-13-4) enclosing or camouflaging a pre-existing cellular monopole to exceed the height limitation otherwise applicable to structures in the zone. City Council Minutes – June 12, 2007 (p.14) 6. Amending Section 22-11-35(L)(2)(b)(3) of the Orem City Code by allowing covered parking closer than twenty feet when the top of the covered parking structure is below the top of the fence located on the property line. Section 22-11-35(L)(2)(b)(3) (3) Parking. No parking area shall be closer than twenty (20) feet to any dedicated street. No parking shall be located closer than twenty (20) feet to an outside boundary of the PD-22 one (other than a dedicated street) except in locations where the parking is located at least two (2) feet below the grade of the adjoining property, in which case the parking may extend to the property line. Covered parking may be located twenty (20) feet from an outside boundary of the PD-22 zone. However, covered parking may be located closer than 20 feet to the outside boundary of the PD-22 zone provided that the top of the structure is lower than the top of the required masonry fence. 7. Amending Section 22-11-35(L)(4)(b) of the Orem City Code by changing the parking requirements from a gross floor area calculation to a gross leaseable floor area calculations. Section 22-11-35(L)(4)(b) b. Non-residential Areas. Buildings containing only non-residential uses shall provide five (5) parking spaces for every one thousand (1000) square feet of gross leaseable floor area. 8. Amending Section 22-11-35(L)(14)(b) of the Orem City Code by allowing a portion of the storm water drainage (up to twenty percent) to be located in non-landscaped areas. Section 22-11-35(L)(14)(b) b. An overall Storm Water Master Plan is required with the first site plan submitted for approval. At least eighty percent (80%) of the required storm water detention areas (as measured by capacity) shall be located within landscaped areas. Mr. Campbell questioned whether there could be collocators placed on the existing monopole. Mr. Sainsbury stated that they could add collocators; however, they could not have any new monopoles in the residential area. Mr. Seastrand asked whether shifting the residential units would give the applicants more commercial space. Paul Washburn, applicant, stated they originally planned to have the master storm detention basin on this portion of the property. Fifty percent of the basin capacity is for the City of Orem. Shifting those units gives them more money to work with. It is a creative way of financing the project. The overall density of the project will not change. Mr. Seastrand questioned the benefit of changing the parking requirements. Paul Washburn noted he does not like rows of covered parking because it obscures the ability to see the units. The property has a large grade, and moving the parking cover closer to the fence would make it more “invisible” to the neighbors looking out their back windows. Paul Washburn then noted it is difficult to determine the number of needed parking stalls for office buildings. They have found with other developments in the city that they have an excess of parking. Rather than having empty parking spaces, they could have more retail space. They only want to change the gross leasable space on the larger commercial structures. City Council Minutes – June 12, 2007 (p.15) Mrs. Thurston asked about the additional access on 800 West. Paul Washburn stated the people accessing from 900 West would still access it from 880 North. It makes it easier for fire access. They had a traffic study done with this access and it remains at an “A” level. Mrs. McCandless questioned what conditions the City Council would put on the camouflaged monopole. She stated that she does not like conditional uses. Paul Washburn noted they are just looking at a way to decorate the monopole to make it more attractive. Mrs. McCandless notes she does not have a problem with allowing this; however, she would rather have it as a permitted use with the condition that it matches the architectural style of the development. Mayor Washburn opened the public hearing. No one came forward to speak, so the Mayor closed the public hearing. Mrs. McCandless moved, by ordinance, to amend Section 22-5-3(A) of the Orem City Code and the Zoning Map of the City of Orem by rezoning property located generally at 1023 North 900 West from the R8 to the PD-22 zone and to amend various Sections of 22-11-35 and Appendix “Q” of the Orem City Code, as specified in the ordinance, pertaining to the PD-22 zone with the change that camouflaging the cell tower is a permitted use, and the architectural style has to match the style of the PD-22 zone. Mrs. Black seconded the motion. Those voting aye: Mrs. Black, Mr. Campbell, Mr. Dickerson, Mrs. McCandless, Mr. Seastrand, Mrs. Thurston, and Mayor Washburn. The motion passed unanimously. The Council took at break at 9:27 p.m. The meeting resumed at 9:40 p.m. 6:15 P.M. PUBLIC HEARING RESOLUTION – Approving and Adopting a Budget for Fiscal Year 2007-2008, Adopting Compensation Programs, Adopting Fees and Charges, Setting the Property Tax, Franchise Tax, Municipal Energy Sales and Use Tax, Telecommunications License Tax, Transient Room Tax and E-911 Fee Rates, and Amending the Fiscal Year 2006-2007 Budget Jim Reams, City Manager, presented a staff recommendation that the City Council, by resolution, approve and adopt the Fiscal Year 2007-2008 Budget, adopt the compensation programs, adopt the fees and charges schedule, set the property tax, franchise tax, municipal energy sales and use tax, telecommunications license tax, transient room tax and E-911 fee rates, and amend the Fiscal Year 2006-2007 Budget. On April 24, 2007, the City Council received the tentative budget for the Fiscal Year 2007-2008. A budget work session was held on May 22, 2007, to discuss the budget. In addition, two public hearings were held to review CDBG budget requests. The purpose of this hearing is to consider the budget for Fiscal Year 2007-2008 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 2006-2007 Budget. City Council Minutes – June 12, 2007 (p.16) The national and local economies have continued to follow last year’s healthy upturn, which has allowed staff to propose a cautiously optimistic budget. With the exception of some minor adjustments to miscellaneous fees and charges, the only proposed fee increases are in the Water Fund and the Water Reclamation Fund. Property taxes are not increased, the franchise tax and municipal energy sales and use tax rates remain at six percent, and the transient room tax stays at one percent. The telecommunications license tax is reduced from four percent to 3.5 percent and the E-911 fee drops from $0.65 per month to $0.61 per month. Both decreases are made in accordance with changes in State statutes. A $1.00 per month water rate increase for a ¾” meter service (and a proportionate increase for all other meter sizes) as well as a $0.05 per 1,000-gallon increase is proposed in the Water Fund. This rate increase is necessary to address the anticipated bond debt service cost for a proposed $4 million revenue bond proposed in the Fiscal Year 2007-2008 Budget and to pay the Jordanelle water assessment increases. An inflationary increase of $0.07 per month and a $0.01 per 1,000-gallon in the sewer rate is proposed in the Water Reclamation Fund to provide additional funds for the Sewer Capital Improvement Master Plan. The Fiscal Year 2007-2008 budget includes funding for: A Development Service Technician to assist customers with zoning and building questions and applications Four Public Safety Officers with paramedic training to staff a fourth ambulance on a fulltime basis A part-time benefited Assistant Librarian for the Library Outreach Program Section Public Works Technicians for the following functions: o Street crew o Concrete crew o Water distribution crew o Storm sewer crew o Stormwater Pollution Prevention Plan (SWPPI) enforcement Since the presentation of the Tentative Budget, the following changes have been proposed: General Fund o Ambulance Billing Services $72,000 o Utah Lake Commission $20,100 o Utah Lake Commission $1,000 Water Fund o Increase Water Bond Amount $200,000 The Water Fund is proposing a bond issue to apply $4 million to water line replacements specifically in areas where road improvements are scheduled. In most of the areas targeted for road improvements, the corrosion in the soil has led to breakdowns and leaks in these old water lines. From a pragmatic viewpoint, the City must repair the water lines before the roads are improved in order to avoid costly, unsightly, and inefficient patches to newly overlaid roads. City Council Minutes – June 12, 2007 (p.17) Because of the City’s conservative estimation of anticipated revenues, additional funds are available in the current year budget (FY 2006-2007) for some one-time building projects. This public hearing also considers changes to the Fiscal Year 2006-2007 Budget. Some of the significant projects are: Traffic signals Renovation of Fire Station #2 New sidewalks Roadside landscape improvements Cemetery building, road, and sprinkler upgrades Park fence upgrades and replacements Park parking lot maintenance Miscellaneous facility repairs and equipment Mr. Reams briefed the City Council on economic conditions. Statewide Highs and Lows: o Record high job growth o Record high residential and nonresidential construction o Near record high retail sales growth o Record low unemployment statistics o Manpower Employment Survey released June 12, 2007, revealed that Orem businesses expect to hire at a vigorous pace Orem’s expectation of fifty-seven percent of business projecting increases in their work force outpaces both Salt Lake and Ogden Orem placed fifth in the nation in the expectation of hiring o Sales tax collection growth remains above twelve percent for the second straight year Sales tax represents forty-one percent of the current General Fund revenues Mr. Reams noted staff uses a conservative practice of underestimating income and overestimating expenditures. Last year they estimated sales tax at just over sixteen million; however, they brought in over nineteen million. Mayor Washburn stated it would be interesting to see a report, which shows that the City has consistently used this as a business practice. He said he would like to see the results of this practice. Mr. Reams advised they could compile a report for the last three years. Mr. Reams then reviewed the budget with the City Council. The proposed budget is as follows: 2007-2008 Proposed Budget 2007 General Fund $42,393,792 Road Fund 2,310,000 CARE Tax Special Revenue Fund 2,150,000 Debt Service Fund 3,569,273 CIP Fund 470,000 Water Fund 7,572,139 City Council Minutes – June 12, 2007 (p.18) 2008 $45,708,966 2,550,000 1,805,000 3,578,706 470,000 12,439,371 Water Reclamation Fund Storm Sewer Fund Recreation Fund Solid Waste Fund Fleet Maintenance Fund Purchasing and Warehousing Fund Self-insurance Fund Community & Neighborhood Services Fund 2007 5,938,000 2,635,000 1,506,450 2,975,299 592,995 316,606 1,187,521 ____695,674 $74,312,749 2008 6,110,000 2,709,824 1,632,748 3,119,248 618,311 332,809 1,286,144 ___721,061 $83,082,188 The major adjustments to the General Fund include: Personnel HAY Adjustment Health Insurance Development Services Technician Public Safety Officers (Paramedics) Assistance Librarian (1/2 Time- Shared with CARE Tax Total Major Adjustments – Personnel Operations Elections Building Maintenance Costs Miscellaneous Computer Equipment Replacement Postage CEDO Contribution Total Major Adjustments – Operations Equipment Fire Engine #1 Replacement Lease Payment One-time Cost – New Public Safety Officers Special Traffic Construction Signs Vehicle Replacement Total Major Adjustments – Equipment Total Major Adjustments – Expenditures $937,000 345,000 48,822 252,216 __28,260 1,611,298 100,000 90,000 33,000 20,000 _10,000 253,000 80,000 40,000 20,000 128,500 268,500 2,132,798 Mr. Campbell asked how low the annual increase for the employees has been in previous years. Mr. Reams noted that the increase has gone as low as one percent. Mr. Campbell questioned whether the four and one half percent increase was for every salaried employees. Mr. Reams noted this is an average. For some it is a little more and others it is a little less. Mr. Campbell then inquired how many salaried employees the City has. Mr. Reams responded they have approximately 400 full-time and 30 part-time employees with benefits. City Council Minutes – June 12, 2007 (p.19) The major adjustments to Other Governmental Funds include: Road (Excise Tax) Fund Public Works Technician Construction Technician Total Major Adjustment Road Fund CIP Fund Fiber-optics Network Ongoing Tennis Court Rehabilitation Existing Park Projects Miscellaneous Building Maintenance and Repair Total Major Adjustments – CIP Fund $48,824 __53,477 $102,301 $20,000 75,000 100,000 __49,562 $244,562 Enterprise Funds Water Fund Revenues Bond Proceeds Water Sales Total Major Revenue Adjustments Public Works Technician Mountain Oaks Drive and Miscellaneous Projects Bond Projects $4,000,000 __300,000 $4,300,000 $48,824 300,000 _4,000,000 $4,348,824 Water Reclamation Fund Sewer Service Charge $50,000 Storm Sewer Fund Public Works Technician (2) Solid Waste Fund $97,648 Appropriation of Surplus $85,848 Mr. Campbell stated that some advisory commissions spend money for lunches and others do not. He questioned whether there were guidelines that govern the use of funds. Mr. Reams responded that it is up to the commission members how the money is used. Some would rather use the funds for brochures or flags for the cemetery. Mayor Washburn opened the public hearing. Seth Perrins, 536 North 1080 East, advised the City Council has done a great job with the budget. Mayor Washburn closed the public hearing. City Council Minutes – June 12, 2007 (p.20) Mr. Dickerson moved, by resolution, to approve and adopt the Fiscal Year 2007-2008 Budget, adopt the compensation programs, adopt the fees and charges schedule, set the property tax, franchise tax, municipal energy sales and use tax, telecommunications license tax, transient room tax and E-911 fee rates, and amend the Fiscal Year 2006-2007 Budget. Mr. Seastrand seconded the motion. Those voting aye: Mrs. Black, Mr. Dickerson, Mrs. McCandless, Mr. Seastrand, Mrs. Thurston, and Mayor Washburn. Those voting nay: Mr. Campbell. The motion carried with a majority vote of 6 to 1. COMMUNICATION ITEMS There were no comments on the communication items. ADJOURN TO REDEVELOPMENT AGENCY MEETING Mr. Dickerson moved to recess the City Council meeting and adjourn to a Redevelopment Agency of the City of Orem meeting. Mr. Seastrand seconded the motion. Those voting aye: Mrs. Black, Mr. Campbell, Mr. Dickerson, Mrs. McCandless, Mr. Seastrand, Mrs. Thurston, and Mayor Washburn. The motion passed unanimously. The meeting recessed at 10:22 p.m. and reconvened at 10:34 p.m. CITY MANAGER INFORMATION ITEMS Mr. Reams noted that Telos has an agreement for open space and they would like to put in a sand volleyball set in the open space area. The Council agreed to allow the sand volleyball on the conservation easement. Point of Personal Privilege Mr. Campbell noted that he has always been disturbed by elected officials giving themselves a raise, and that is something he determined that he would never knowingly do. He said his opposition to the budget is nothing against the other Councilmembers or staff. Mr. Campbell indicated the increase he receives would go to a charitable organization. ADJOURNMENT OF MEETING Mr. Dickerson moved to adjourn the meeting. Mr. Seastrand seconded the motion. Those voting aye: Mrs. Black, Mr. Campbell, Mr. Dickerson, Mrs. McCandless, Mr. Seastrand, Mrs. Thurston, and Mayor Washburn. The motion passed unanimously. The meeting adjourned at 10:36 p.m. City Council Minutes – June 12, 2007 (p.21) Donna R. Weaver, City Recorder Approved: June 26, 2007 City Council Minutes – June 12, 2007 (p.22)