CITY OF OREM
CITY COUNCIL MEETING
56 North State Street, Orem, Utah
April 22, 2008
2:00 P.M. WORK SESSION – MULTIPURPOSE ROOM
1. DISCUSSION – Home Occupations - Youth Instruction
3:00 P.M. WORK SESSION – COUNCIL CHAMBERS
2. PRESENTATIONS – CARE--Facilities Grant Applicants
5:00 P.M. STUDY SESSION – MULTIPURPOSE ROOM
AGENDA REVIEW
3. The City Council will review the items on the agenda.
CITY COUNCIL - NEW BUSINESS
4. This is an opportunity for members of the City Council to raise issues of information or concern.
6:00 P.M. REGULAR SESSION - COUNCIL CHAMBERS
CALL TO ORDER
INVOCATION/INSPIRATIONAL THOUGHT: By Invitation
PLEDGE OF ALLEGIANCE: By Invitation
APPROVAL OF MINUTES
5. MINUTES of City Council Meeting – April 8, 2008
MAYOR’S REPORT/ITEMS REFERRED BY COUNCIL
6. UPCOMING EVENTS
7. UPCOMING AGENDA ITEMS
8. APPOINTMENTS TO BOARDS AND COMMISSIONS
Beautification Advisory Commission – 2 vacancies
Recreation Advisory Commission – 1 vacancy
9. RECOGNITION OF NEW NEIGHBORHOODS IN ACTION OFFICERS
10. PROCLAMATION – Arbor Day – April 25, 2008
11. PROCLAMATION – National Drinking Water Week – May 4-10, 2008
CITY MANAGER’S APPOINTMENTS
12. APPOINTMENTS TO BOARDS AND COMMISSIONS
Board of Adjustment – 1 vacancy
PERSONAL APPEARANCES
13. Time has been set aside for the public to express their ideas, concerns, and comments on items not on the Agenda. (Please limit your comments to 3 minutes.)
CONSENT ITEMS
14. RESOLUTION – Authorizing Expenditures out of the City Council Contingency Fund for the Utah Law Enforcement Memorial and the Utah Valley University’s Transition Celebration – UVUphoria
RECOMMENDATION: The City Manager recommends the City Council, by resolution, approve the expenditure of contingency funds for the Utah Law Enforcement Memorial (ULEM) and for the Utah Valley University’s (UVU) Transition Celebration.
POTENTIALLY AFFECTED AREA: Citywide
BACKGROUND: The Utah Law Enforcement Memorial is a non-profit entity dedicated to building a memorial on the Utah State Capitol grounds to remember and pay homage to law enforcement officers in the State of Utah who have sacrificed their lives on behalf of the citizens they served. The memorial replaces a previous one inside the Capitol, which was removed as part of the renovation project.
The memorial will cost $1.3 million. Much of the money has been raised, with contributions coming from individual citizens, corporations, police officers, police departments, and some governmental agencies. ULEM has requested the City also contribute to the memorial. While Orem has never lost an officer in the line of duty, a few have come close, and many have been injured.
The City Manager and Director of Public Safety recommend that the Council approve $5,000 from its contingency fund to go towards the memorial. This is a proper expenditure of public funds because it not only supports law enforcement statewide, but it expresses appreciation to our own police officers for their willingness to put their lives on the line in order to serve and protect us.
The City Manager also recommends the Council approve a sponsorship of up to $5,000 from its contingency fund to support Utah Valley University’s transition celebration from Utah Valley State College - UVUphoria. The money will sponsor the fireworks display.
SCHEDULED ITEMS
15. RESOLUTION - Approving a Speed Limit on Sandhill Road from University Parkway to 2000 South
REQUEST: The Orem Transportation Advisory Commission, Director of Public Safety, and City Engineer, request that the newly constructed Sandhill Road from University Parkway to 2000 South be posted at 35 miles per hour.
POTENTIALLY AFFECTED AREA: Lakeview Neighborhood
BACKGROUND: With the reconstruction, widening, and redesign of Sandhill Road, the City Engineer, Transportation Engineer, and Traffic Operations Engineer have completed an analysis for this portion of Sandhill Road for the purpose of determining an appropriate speed limit. Several factors have been taken into consideration, which include:
• The road geometric design is for 35 miles per hour (mph).
• The 85th percentile speed on Sandhill Road was 44 mph before the construction and 37 mph in the summer of 2007. The 85th percentile speed of a road means that 85 percent of the drivers are driving at or below that speed and 15 percent of the drivers are driving faster than that speed. The Manual on Uniform Traffic Control Devices (MUTCD) calls for speed limits to be posted close to the 85th percentile speed. This is because most of the traveling public drives at speeds that are considered safe and prudent. Imposing a speed limit that is not consistent with the 85th percent makes law breakers out of our citizens who are driving reasonably and prudently.
• A speed limit close to the 85 percent will create improved safety as the traffic flow becomes more uniform.
• Sandhill Road was classified as a minor arterial street on November 13, 2001, by City Council resolution. The Orem Street Classification Guidelines adopted on November 13, 2001, set speeds on minor arterial streets between 30 to 40 mph. This street classification is similar to 800 East north of University Parkway, 400 North west of State Street, 1600 North from 1200 West to 800 East and 1200 West. These streets had the speed limits changed from 25 to 35 mph on September 15, 2003. Studies on these streets have shown that actual speeds before and after the speed limit changes have not changed appreciably.
• An analysis by the City Engineer, Traffic Engineer and Traffic Operations Engineer indicates that a speed limit of 35 miles per hour is safe, prudent, and the appropriate speed for this road.
The City Transportation Advisory Commission reviewed the recommendation of the Director of Public Safety and the engineers and unanimously support their recommendation for a 35 mph speed limit on Sandhill Road.
6:30 P.M. PUBLIC HEARING
16. RESOLUTION – Authorizing and Approving a Pledge of its Sales Tax Revenues; Authorizing the Execution by the City of an Amended and Restated Pledge and Loan Agreement and any Other Documents Required in Connection Therewith; Authorizing and Approving the Taking of all Other Actions Necessary to the Consummation of the Transactions Contemplated by this Resolution; Providing a Severability Clause; Repealing Resolutions in Conflict; Providing an Effective Date; and Related Matters
RECOMMENDATION: The City Manager recommends the City Council, by resolution, authorize and approve a pledge of its sales tax revenues; authorize the execution by the City of an amended and restated pledge and loan agreement and any other documents required in connection therewith; authorize and approve the taking of all other actions necessary to the consummation of the transactions contemplated by this resolution; provide a severability clause; repeal resolutions in conflict; provide an effective date; and related matters.
POTENTIALLY AFFECTED AREA: Citywide
BACKGROUND: In 2002, the City of Orem joined thirteen other cities in forming the Utah Telecommunications Open Infrastructure Agency (UTOPIA). UTOPIA was created to build and operate a fiber to the home and business network throughout each member community. UTOPIA owns the fiber network infrastructure but leases the use of the network to multiple private service providers. Currently, four service providers offer services over the network.
Eleven of the original fourteen members are financially committed to the project, and the network has been constructed in all or a portion of their communities. In Orem, the network has been constructed in forty-five to fifty percent of the community with over 3,000 customers.
Overall, there are more than 7,000 subscribers on the network, which has provided highly reliable data and IP telephone service since 2004. Services are available in Orem, West Valley, Murray, Midvale, Lindon, and Payson. In addition, portions of the network have been constructed in Tremonton, Brigham City, Layton, and Centerville.
UTOPIA is delivering advanced services at very competitive rates. The network is providing economic development advantages to the member cities. Builders and developers are anxious to have the opportunity to provide these true broadband services to their buyers. As word about this advance system spreads, citizens and officials from other cities are inquiring about the opportunity to bring UTOPIA to their communities.
During the last several months, UTOPIA has undertaken a critical analysis of itself and has come to recognize two important issues.
1. The Rural Utility Services (RUS) of the U.S. Department of Agriculture has been an unreliable partner. The role of the RUS is to deploy broadband services to communities under 20,000 in population. Six of the eleven member cities where the network is being constructed qualified for this program. This was initially viewed as a very positive opportunity for UTOPIA. After two years, it has been determined that the delays caused by the RUS, and their failure to reimburse UTOPIA for millions of dollars of costs, are enough reason to sever the relationship with them.
2. UTOPIA has been overly reliant on the service providers marketing the network.
With these challenges in mind, UTOPIA began to develop a strategy to build on the current strengths of the network and to move forward in a positive manner. Key objectives of the new strategy are:
1. Preserve the core principles of UTOPIA:
• Maintain an open network with private service providers
• Provide and maintain a standards based, high-quality infrastructure
• Be a strong supporter of local economic development
• Provide a choice of low-cost, high-quality, innovative services
• Provide service to the entire community
2. Accelerate growth of the network.
3. Reduce the financial risk to the member cities.
To implement this strategy, UTOPIA has:
• Reduced its operating costs
• Adopted a new marketing and deployment plan
• Recommended a refinancing of the existing bonds
The new deployment model will provide an opportunity for the network to be constructed in new areas of Orem where the residents express a desire to receive the services. Construction will begin in areas with the greatest demand.
The new refinancing plan will pay off existing debts, provide two years of capitalized interest, and provide additional operating capital. The debt service on the bonds will be paid by revenues paid to UTOPIA by the service providers. As additional security, the bonds will be backed by a pledge of sales tax revenue from each of the participating communities. The existing pledges will be increased by 15.9 percent and will increase each year thereafter by up to two percent for thirty-two years. The City’s pledge will increase from $2,189,704 to $2,538,695. This increase allows the pledges to match the debt service.
No sales tax pledges have been drawn on for any debt service payments to date. UTOPIA has used its own resources to make the debt service payments on the existing obligations.
17. RESOLUTION - Adopt the City of Orem Fiscal Year 2008-2009 Tentative Budget
RECOMMENDATION: The City Manager recommends that the City Council, by resolution, adopt the Fiscal Year 2008-2009 Tentative Budget and set a public hearing to adopt the final budget on June 10, 2008, at 6:15 p.m.
POTENTIALLY AFFECTED AREA: Citywide
BACKGROUND: On April 22, 2008, the City Council will receive the Tentative Budget for Fiscal Year 2008-2009. A budget work session will be held for the City Council on Tuesday, May 13, 2008. The purpose of this item tonight is to accept the tentative budget and set the public hearing to adopt the final budget for 2008-2009.
COMMUNICATION ITEMS
18. There are no communication items.
CITY MANAGER INFORMATION ITEMS
19. This is an opportunity for the City Manager to provide information to the City Council. These items are for information and do not require action by the City Council.
ADJOURN TO REDEVELOPMENT AGENCY MEETING
Notice of Special Accommodations (ADA)
THE PUBLIC IS INVITED TO PARTICIPATE IN ALL CITY COUNCIL MEETINGS.
If you need a special accommodation to participate in the City Council Meetings and Study Sessions,
please call the City Recorder’s Office at least 3 working days prior to the meeting.
(Voice 229-7074) (TDD # 229-7037)
This agenda is also available on the City’s Internet webpage at orem.org