February 13, 2013
MINUTES OF THE VINEYARD TOWN COUNCIL MEETING Vineyard Town Hall, 240 East Gammon Road, Vineyard, Utah February 13, 2013 PRESENT – Mayor Randy Farnworth Councilmember Sean Fernandez Councilmember Jeff Gillespie Councilmember Norm Holdaway
ABSENT – Councilmember Nathan Riley
Staff Present: Town Attorney David Church, Water Operator Sullivan Love, Town Planner Nathan Crane, Town Engineer Don Overson, Deputy Collin Gordon, Town Clerk/Recorder Debra Cullimore. Others Present: John Hadfield of Hadco, James Gilbert of Gilbert and Stewart The Vineyard Town Council held a Regular Meeting Wednesday, February 13, 2013, beginning at 7:00 p.m. The invocation was offered by Randy Farnworth.
Regular Session – The meeting was called to order at 7:00 p.m. MINUTES REVIEW AND APPROVAL – The Council reviewed the minutes of the meeting of January 23, 2013. COUNCILMEMBER FERNANDEZ MOVED TO APPROVE THE MINUTES OF THE MEETING OF JANUARY 23, 2013. COUNCILMEMBER HOLDAWAY SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY. STAFF REPORTS – Nathan Crane – Town Planner – Mr. Crane reviewed applications which will be reviewed by the Planning Commission on February 20, 2013. Applications have been submitted for a Conditional Use for a 60,000 square foot office warehouse facility in Eastlake, a subdivision plat at 400 North and Center Street, and a 300 unit apartment complex which will require an amendment to Regional Mixed Use zoning standards. He also reported that a Record of Survey will be recorded on a 275 acre parcel located in the Lake Oriented Mixed Use and Transit Center zones to accommodate pending development which will include residential and possible commercial components. Sullivan Love – Water/Sewer Operator Technician – Mr. Love reported that a resident experienced a sewer lateral back-up into their basement on Monday. The blockage which caused the back-up has been cleared, and the incident is under investigation to determine liability. He also reported that repairs are underway on the freezing damage at the west pump station. Don Overson – JUB Engineers – Mr. Overson reported on an OSHA safety violation notification issued to VanCon on the RDA project job site. Corrective action was taken, and a citation was not issued. No injuries were incurred as a result of the violation. Page 1 of 5; February 13, 2013, Vineyard Town Council Meeting
Mr. Overson also reported that he and Mayor Farnworth have been working with Orem City and CUP to discuss options to address water storage requirements for Vineyard. Discussions have been productive, and a solution to address water storage issues is expected in the near future. David Church – Town Attorney – Mr. Church suggested that the Council discuss availability of telecommunications services in the area prior to withdrawing from participation in UTOPIA. Mr. Overson suggested that the Council consider installation of telecommunications conduit during upcoming infrastructure construction projects. . Deputy Collin Gordon – Utah County Sheriff’s Department – Deputy Gordon had no business to report. BUSINESS ITEMS – 5.1 – Discussion and Action – Fiscal Year 2011-2012 Audit Report. Gilbert and Stewart, contract auditors for the Town of Vineyard, will present the annual financial audit report for fiscal year 20112012 for consideration and possible approval by the Council. Mayor Farnworth invited James Gilbert of Gilbert and Stewart to present the Audit Report for the Town and the Redevelopment Agency for fiscal year 2011-2012. Mr. Gilbert began by complimenting Town Hall staff on their responsiveness and assistance in completing the audit. He noted that due to an increase in development, population and budget operations, this audit was much larger and more complex than previous audits. Mr. Gilbert stated that the Town received and unqualified opinion on 2011-2012 Financial Statements and Audit Reports, which is the highest opinion possible. He reviewed specific elements of the report, including the management discussion, statement of net assets, balance sheets for the General Fund, Capital Projects Fund, Impact Fee Fund, Redevelopment Agency Fund, and Enterprise Funds. He noted that utility funds do not currently generate adequate revenue to cover costs and are supported in part by the General Fund. He noted that utility funds should begin generating adequate revenue to be self-supporting and development occurs. Mr. Gilbert explained that a footnote has been added to the audit regarding long term debt obligations for the RDA Tax Increment Revenue Bonds. He went on to review finding and recommendations regarding state compliance issues, including late filing of a building permit report and an over-expenditure in the General Fund. He clarified that the finding are not significant but that reporting was required under state law. He observed that the switch to Pelorus accounting software appears to be working well, and that staff seems to like the software and understand it well. Mayor Farnworth inquired as to the responsiveness of Lewis, Young, Robertson and Burningham in preparing the audit. Mr. Gilbert reiterated that his office worked with Town Hall staff to prepare the audit, and that Town Hall staff was able to provide all necessary information and reports in a thorough and timely manner. Mayor Farnworth called for further comments or discussion. Hearing none, he called for a motion. COUNCILMEMBER FERNANDEZ MOVED TO ACCEPT THE AUDIT REPORT AND FINANCIAL STATEMENTS FOR FISCAL YEAR 2011-2012 AS PRESENTED. COUNCILMEMBER GILLESPIE SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY WITH ONE ABSENT.
Page 2 of 5; February 13, 2013, Vineyard Town Council Meeting
5.2 – Discussion – Utility Rate Adjustment. Town Engineer, Don Overson, will present information regarding a possible utility rate adjustment. The proposed adjustment is being considered to generate necessary revenue for operational costs as well as maintenance, repair or replacement of utility infrastructure systems as necessary in the future. This item was previously discussed by the Council on October 10, 2012. Mr. Overson will present updated information for consideration by the Council based on the previous discussion. Mayor Farnworth invited Mr. Overson to present information regarding the proposed utility rate adjustment. Mr. Overson explained that the proposed increase is necessary to generate adequate revenue to cover operational, maintenance and replacement costs of the sewer and water system, as well as ongoing pass through payments to Orem City. Mr. Overson reviewed currently water rates which include a base rate of $20 per month for the first 12,000 gallons and $1 per 1,000 gallons thereafter. He presented a proposal which would increase rates incrementally through 2019 to a base rate of $26.09 with no gallons of credit, and a rate of $1.18 per thousand gallons usage. He observed the proposed rates will create a self-supporting system by 2019 based on maximum ERU’s. Mr. Overson suggested that proposed rates be reviewed every year to two years to assess whether the Town is on track to generate necessary revenue to cover associated costs. Mr. Overson reviewed utility rates charged by other municipalities for comparison. He suggested that the Council may want to consider implementation of a rate structure which would encourage conservation, such as a tiered rate which increases fees based usage. Mr. Overson went on to review sewer utility rates, which currently include a base rate of $17.36, which assumes 7,000 gallons usage. He presented a phased plan which drop the base rate to $16.04, and would also eliminate the usage credit over an eight year period. He suggested that the Council consider implementing utility rate adjustments before additional development which will be served by Timpanogos Special Service District is completed. Mr. Overson went on to discuss policy decisions which will need to be made regarding metering of multi-family developments. He observed that developers will likely request one master meter per building rather than individually metering each dwelling unit. The Council will discuss possible rate adjustments at future meetings with the intent of including rate changes in the budget for the coming fiscal year. 5.3 – Discussion and Action – Dedication of Public Facilities in The Shores Subdivision. The Council will review and possibly act to approve a request by Hadco and Perry Homes to accept dedication of public facilities including roadways, sidewalks and streetlights in the Shores Subdivision. John Hadfield of Hadco Construction was present as the representative for this application. Mayor Farnworth observed that if the public facilities are dedicated to the Town, the Town will take on responsibility for maintenance of the facilities. Mr. Overson stated that the road is in good condition, and that any necessary repairs will be completed prior to the Town taking ownership. He noted that street lights will also be energized and turned on prior to the taking ownership of those improvements. The Council discussed amendments to the plat, which included dedication of the roadways, as well as creation of a detention pond area which will also be dedicated to the Town. Mr. Overson explained to Mr. Hadfield that an area for the mail box bank will also need to be included on the plat. Mr. Hadfield stated that the necessary adjustments will be made to the plat prior to recordation. He also noted that the pillars at the gate area will be left in place, but the gates will be removed. Mr. Overson will review final changes to the plat and verify that all necessary repairs have been completed prior to accepting the plat. Mayor Farnworth called for further comments or discussion. Hearing none, he called for a motion. Page 3 of 5; February 13, 2013, Vineyard Town Council Meeting
COUNCILMEMBER GILLESPIE MOVED TO APPROVE THE REQUEST BY HADCO CONSTRUCTION FOR DEDICATION OF PUBLIC FACILITIES IN THE SHORES SUBDIVISION. COUNCILMEMBER FERNANDEZ SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY WITH ONE ABSENT. OPEN SESSION – Mayor Farnworth called for comments from the audience. There was no public comment. COUNCILMEMBER’S REPORTS – Councilmember Riley – Councilmember Riley was not present at the meeting. Councilmember Holdaway – Councilmember Holdaway had no business to report. Councilmember Gillespie – Councilmember Gillespie reported that he has made arrangements for the Town to work with Bill Hoopes to provide facilities and participate in obtaining necessary equipment to facilitate a youth recreation league which will include soccer and t-ball programs for four to nine year olds. Mayor Farnworth inquired as to any potential liability associated with the program. Mr. Church observed that the program may present minimal liability risks, but that those risks would be covered under the Town’s insurance policy. Councilmember Gillespie noted that Mr. Hoopes intends to provide the necessary insurance for the program. Councilmember Fernandez – Councilmember Fernandez requested an update in the Community Development Block Grant application submitted by the Town for the Holdaway Road sewer line project. Ms. Cullimore stated that the application was submitted, and that interviews will be held in March. Councilmember Fernandez also reported that he will attend Legislative Policy Committee meetings during the legislative session, and will report on any items of interest. MAYOR’S REPORT – Mayor Farnworth reported on discussions with the Department of Environmental Quality. He also commented on conversations with Alpine School District regarding development in the RDA area and associated payment obligations to the District. Mayor Farnworth also noted that there is no significant commercial development occurring in this area of the county at this time. Mayor Farnworth went on to report on a field trip with the North Point Solid Waste Special Service District Board to Hill Air Force Base, where over a million tons of garbage is processed each day. Mayor Farnworth noted that NPSWSSD is considering joining with South Point to form one organization which would have more influence at the legislative level. He also noted that due to successful recycling efforts, the life expectancy of existing landfills has increased from 50 to 100 years. Mayor Farnworth will participate in two Mountainland Association of Governments meetings during the coming month to review CDBG applications and award funding. ADJOURNMENT – The Council moved to adjourn the Town Council Meeting and convene the meeting of the Vineyard Redevelopment Agency at 8:29 p.m. The next Regular Town Council Meeting is scheduled for February 27, 2013. Page 4 of 5; February 13, 2013, Vineyard Town Council Meeting
MINUTES APPROVED ON – February 27, 2013
CERTIFIED CORRECT BY ______________________________ DEBRA CULLIMORE, TOWN CLERK/RECORDER
Page 5 of 5; February 13, 2013, Vineyard Town Council Meeting
ABSENT – Councilmember Nathan Riley
Staff Present: Town Attorney David Church, Water Operator Sullivan Love, Town Planner Nathan Crane, Town Engineer Don Overson, Deputy Collin Gordon, Town Clerk/Recorder Debra Cullimore. Others Present: John Hadfield of Hadco, James Gilbert of Gilbert and Stewart The Vineyard Town Council held a Regular Meeting Wednesday, February 13, 2013, beginning at 7:00 p.m. The invocation was offered by Randy Farnworth.
Regular Session – The meeting was called to order at 7:00 p.m. MINUTES REVIEW AND APPROVAL – The Council reviewed the minutes of the meeting of January 23, 2013. COUNCILMEMBER FERNANDEZ MOVED TO APPROVE THE MINUTES OF THE MEETING OF JANUARY 23, 2013. COUNCILMEMBER HOLDAWAY SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY. STAFF REPORTS – Nathan Crane – Town Planner – Mr. Crane reviewed applications which will be reviewed by the Planning Commission on February 20, 2013. Applications have been submitted for a Conditional Use for a 60,000 square foot office warehouse facility in Eastlake, a subdivision plat at 400 North and Center Street, and a 300 unit apartment complex which will require an amendment to Regional Mixed Use zoning standards. He also reported that a Record of Survey will be recorded on a 275 acre parcel located in the Lake Oriented Mixed Use and Transit Center zones to accommodate pending development which will include residential and possible commercial components. Sullivan Love – Water/Sewer Operator Technician – Mr. Love reported that a resident experienced a sewer lateral back-up into their basement on Monday. The blockage which caused the back-up has been cleared, and the incident is under investigation to determine liability. He also reported that repairs are underway on the freezing damage at the west pump station. Don Overson – JUB Engineers – Mr. Overson reported on an OSHA safety violation notification issued to VanCon on the RDA project job site. Corrective action was taken, and a citation was not issued. No injuries were incurred as a result of the violation. Page 1 of 5; February 13, 2013, Vineyard Town Council Meeting
Mr. Overson also reported that he and Mayor Farnworth have been working with Orem City and CUP to discuss options to address water storage requirements for Vineyard. Discussions have been productive, and a solution to address water storage issues is expected in the near future. David Church – Town Attorney – Mr. Church suggested that the Council discuss availability of telecommunications services in the area prior to withdrawing from participation in UTOPIA. Mr. Overson suggested that the Council consider installation of telecommunications conduit during upcoming infrastructure construction projects. . Deputy Collin Gordon – Utah County Sheriff’s Department – Deputy Gordon had no business to report. BUSINESS ITEMS – 5.1 – Discussion and Action – Fiscal Year 2011-2012 Audit Report. Gilbert and Stewart, contract auditors for the Town of Vineyard, will present the annual financial audit report for fiscal year 20112012 for consideration and possible approval by the Council. Mayor Farnworth invited James Gilbert of Gilbert and Stewart to present the Audit Report for the Town and the Redevelopment Agency for fiscal year 2011-2012. Mr. Gilbert began by complimenting Town Hall staff on their responsiveness and assistance in completing the audit. He noted that due to an increase in development, population and budget operations, this audit was much larger and more complex than previous audits. Mr. Gilbert stated that the Town received and unqualified opinion on 2011-2012 Financial Statements and Audit Reports, which is the highest opinion possible. He reviewed specific elements of the report, including the management discussion, statement of net assets, balance sheets for the General Fund, Capital Projects Fund, Impact Fee Fund, Redevelopment Agency Fund, and Enterprise Funds. He noted that utility funds do not currently generate adequate revenue to cover costs and are supported in part by the General Fund. He noted that utility funds should begin generating adequate revenue to be self-supporting and development occurs. Mr. Gilbert explained that a footnote has been added to the audit regarding long term debt obligations for the RDA Tax Increment Revenue Bonds. He went on to review finding and recommendations regarding state compliance issues, including late filing of a building permit report and an over-expenditure in the General Fund. He clarified that the finding are not significant but that reporting was required under state law. He observed that the switch to Pelorus accounting software appears to be working well, and that staff seems to like the software and understand it well. Mayor Farnworth inquired as to the responsiveness of Lewis, Young, Robertson and Burningham in preparing the audit. Mr. Gilbert reiterated that his office worked with Town Hall staff to prepare the audit, and that Town Hall staff was able to provide all necessary information and reports in a thorough and timely manner. Mayor Farnworth called for further comments or discussion. Hearing none, he called for a motion. COUNCILMEMBER FERNANDEZ MOVED TO ACCEPT THE AUDIT REPORT AND FINANCIAL STATEMENTS FOR FISCAL YEAR 2011-2012 AS PRESENTED. COUNCILMEMBER GILLESPIE SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY WITH ONE ABSENT.
Page 2 of 5; February 13, 2013, Vineyard Town Council Meeting
5.2 – Discussion – Utility Rate Adjustment. Town Engineer, Don Overson, will present information regarding a possible utility rate adjustment. The proposed adjustment is being considered to generate necessary revenue for operational costs as well as maintenance, repair or replacement of utility infrastructure systems as necessary in the future. This item was previously discussed by the Council on October 10, 2012. Mr. Overson will present updated information for consideration by the Council based on the previous discussion. Mayor Farnworth invited Mr. Overson to present information regarding the proposed utility rate adjustment. Mr. Overson explained that the proposed increase is necessary to generate adequate revenue to cover operational, maintenance and replacement costs of the sewer and water system, as well as ongoing pass through payments to Orem City. Mr. Overson reviewed currently water rates which include a base rate of $20 per month for the first 12,000 gallons and $1 per 1,000 gallons thereafter. He presented a proposal which would increase rates incrementally through 2019 to a base rate of $26.09 with no gallons of credit, and a rate of $1.18 per thousand gallons usage. He observed the proposed rates will create a self-supporting system by 2019 based on maximum ERU’s. Mr. Overson suggested that proposed rates be reviewed every year to two years to assess whether the Town is on track to generate necessary revenue to cover associated costs. Mr. Overson reviewed utility rates charged by other municipalities for comparison. He suggested that the Council may want to consider implementation of a rate structure which would encourage conservation, such as a tiered rate which increases fees based usage. Mr. Overson went on to review sewer utility rates, which currently include a base rate of $17.36, which assumes 7,000 gallons usage. He presented a phased plan which drop the base rate to $16.04, and would also eliminate the usage credit over an eight year period. He suggested that the Council consider implementing utility rate adjustments before additional development which will be served by Timpanogos Special Service District is completed. Mr. Overson went on to discuss policy decisions which will need to be made regarding metering of multi-family developments. He observed that developers will likely request one master meter per building rather than individually metering each dwelling unit. The Council will discuss possible rate adjustments at future meetings with the intent of including rate changes in the budget for the coming fiscal year. 5.3 – Discussion and Action – Dedication of Public Facilities in The Shores Subdivision. The Council will review and possibly act to approve a request by Hadco and Perry Homes to accept dedication of public facilities including roadways, sidewalks and streetlights in the Shores Subdivision. John Hadfield of Hadco Construction was present as the representative for this application. Mayor Farnworth observed that if the public facilities are dedicated to the Town, the Town will take on responsibility for maintenance of the facilities. Mr. Overson stated that the road is in good condition, and that any necessary repairs will be completed prior to the Town taking ownership. He noted that street lights will also be energized and turned on prior to the taking ownership of those improvements. The Council discussed amendments to the plat, which included dedication of the roadways, as well as creation of a detention pond area which will also be dedicated to the Town. Mr. Overson explained to Mr. Hadfield that an area for the mail box bank will also need to be included on the plat. Mr. Hadfield stated that the necessary adjustments will be made to the plat prior to recordation. He also noted that the pillars at the gate area will be left in place, but the gates will be removed. Mr. Overson will review final changes to the plat and verify that all necessary repairs have been completed prior to accepting the plat. Mayor Farnworth called for further comments or discussion. Hearing none, he called for a motion. Page 3 of 5; February 13, 2013, Vineyard Town Council Meeting
COUNCILMEMBER GILLESPIE MOVED TO APPROVE THE REQUEST BY HADCO CONSTRUCTION FOR DEDICATION OF PUBLIC FACILITIES IN THE SHORES SUBDIVISION. COUNCILMEMBER FERNANDEZ SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED UNANIMOUSLY WITH ONE ABSENT. OPEN SESSION – Mayor Farnworth called for comments from the audience. There was no public comment. COUNCILMEMBER’S REPORTS – Councilmember Riley – Councilmember Riley was not present at the meeting. Councilmember Holdaway – Councilmember Holdaway had no business to report. Councilmember Gillespie – Councilmember Gillespie reported that he has made arrangements for the Town to work with Bill Hoopes to provide facilities and participate in obtaining necessary equipment to facilitate a youth recreation league which will include soccer and t-ball programs for four to nine year olds. Mayor Farnworth inquired as to any potential liability associated with the program. Mr. Church observed that the program may present minimal liability risks, but that those risks would be covered under the Town’s insurance policy. Councilmember Gillespie noted that Mr. Hoopes intends to provide the necessary insurance for the program. Councilmember Fernandez – Councilmember Fernandez requested an update in the Community Development Block Grant application submitted by the Town for the Holdaway Road sewer line project. Ms. Cullimore stated that the application was submitted, and that interviews will be held in March. Councilmember Fernandez also reported that he will attend Legislative Policy Committee meetings during the legislative session, and will report on any items of interest. MAYOR’S REPORT – Mayor Farnworth reported on discussions with the Department of Environmental Quality. He also commented on conversations with Alpine School District regarding development in the RDA area and associated payment obligations to the District. Mayor Farnworth also noted that there is no significant commercial development occurring in this area of the county at this time. Mayor Farnworth went on to report on a field trip with the North Point Solid Waste Special Service District Board to Hill Air Force Base, where over a million tons of garbage is processed each day. Mayor Farnworth noted that NPSWSSD is considering joining with South Point to form one organization which would have more influence at the legislative level. He also noted that due to successful recycling efforts, the life expectancy of existing landfills has increased from 50 to 100 years. Mayor Farnworth will participate in two Mountainland Association of Governments meetings during the coming month to review CDBG applications and award funding. ADJOURNMENT – The Council moved to adjourn the Town Council Meeting and convene the meeting of the Vineyard Redevelopment Agency at 8:29 p.m. The next Regular Town Council Meeting is scheduled for February 27, 2013. Page 4 of 5; February 13, 2013, Vineyard Town Council Meeting
MINUTES APPROVED ON – February 27, 2013
CERTIFIED CORRECT BY ______________________________ DEBRA CULLIMORE, TOWN CLERK/RECORDER
Page 5 of 5; February 13, 2013, Vineyard Town Council Meeting
