May 3, 2016

Minutes of the Centerville City Council meeting held Tuesday, May 3, 2016 at 7:00 p.m. at Centerville City Hall, 250 North Main Street, Centerville, Utah.

MEMBERS PRESENT

Mayor                           Paul A. Cutler

Council Members        Tamilyn Fillmore
William Ince
Stephanie Ivie
George McEwan
Robyn Mecham

STAFF PRESENT        Steve Thacker, City Manager
Jacob Smith, Assistant to the City Manager
Lisa Romney, City Attorney
Cory Snyder, Community Development Director
Brandon Toponce, Assistant Planner
Katie Rust, Recording Secretary

STAFF ABSENT        Blaine Lutz, Finance Director/Assistant City Manager

VISITORS            Interested citizens (see attached sign-in sheet)

PLEDGE OF ALLEGIANCE  

PRAYER OR THOUGHT    Mayor Cutler

OPEN SESSION

No one wished to comment.

MINUTES REVIEW AND ACCEPTANCE

The minutes of the April 19, 2016 work session and regular Council meeting were reviewed.  Councilwoman Fillmore requested changes to the Council meeting minutes.  Councilman McEwan made a motion to accept the April 19, 2016 work session minutes and regular Council meeting minutes as amended.  Councilwoman Fillmore seconded the motion, which passed by unanimous vote (5-0).

SUMMARY ACTION CALENDAR

a.    Approve Audit Contract with Keddington and Christensen
b.    Award bid for Miscellaneous Water Lateral Project 2016 for materials to Ferguson in the amount of $27,187.61 plus tax for waterline parts (Component One), Waterford Systems in the amount of $25,061.60 for mag meters (Component Two), and Mountainland in the amount of $8,521.87 for water meters; and to Merlin Daines in the amount of $118,446 for labor
c.    Amend Section 4.040 of the Centerville City Personnel Policies and Procedures to Designate City Attorney and Assistant Police Chief as Exempt Positions under Fair Labor Standards Act – Resolution No. 2016-12

Councilwoman Fillmore made a motion to accept items (a) and (c) on the Summary Action Calendar.  Councilman Ince seconded the motion, which passed by unanimous vote (5-0).

Referring to item (b) on the Summary Action Calendar, City Manager Thacker recommended removing work on Deerfield Drive from the Merlin Daines bid schedule, reducing the bid amount to $103,186.  Councilman Ince made a motion to approve item (b) on the Summary Action Calendar, changing the amount for the Merlin Daines contract to $103,186.  Councilwoman Mecham seconded the motion, which passed by unanimous vote (5-0).

PUBLIC HEARING – ZONING ORDINANCE AMENDMENTS REGARDING DEUEL CREEK HISTORIC DISTRICT

On January 5, 2016, the City Council ratified Ordinance No. 2015-30 creating the Centerville Deuel Creek Historic District and adopted Ordinance No. 2015-31 rezoning applicable properties to the Centerville Historic District Overlay.  On January 5th the Council also motioned to reconsider the provisions of Ordinance No. 2015-30 regarding incentives and design standards for commercial buildings and properties in the historic district and directed staff to refer these matters back to the Landmarks Commission and Planning Commission for review and recommendations.  Brandon Toponce, Assistant Planner, reported that the Landmarks Commission decided to recommend a tier system for commercial incentives similar to the tier system available to the rest of the Historic District.  For properties located on Main Street on the Landmarks Register, the Landmarks Commission recommends a building permit fee reduction of 100%, with a 50% fee reduction for contributing properties, and 0% for non-contributing properties.  Mr. Toponce explained that the Landmarks Commission also recommends adding the east side of 400 East to the Historic District.

At 7:22 p.m. Mayor Cutler opened a public hearing, and closed the public hearing seeing that no one wished to comment.

Councilwoman Fillmore made a motion to adopt Ordinance No. 2016-12 amending Chapter 12-49 of the Centerville Zoning Ordinance regarding incentives for buildings and properties in the Centerville Deuel Creek Historic District Overlay with suggested reasons 1-7.  Councilwoman Ivie seconded the motion, which passed by unanimous vote (5-0).

Reasons for the Action:

1.    The proposed amendments meet the requirements found in Section 12-21-080(4)(e).
2.    The proposed Zoning Text Amendments meet the goals and objectives of the General Plan concerning a historic district [Section 12-480-8(3)].
3.    Proposed amendments to Chapter 12-49, Centerville Deuel Creek Historic District, will be consistent with other objectives found in this Section.
4.    The proposed amendments will not have a negative impact on the surrounding community.
5.    Through research, site visits, three public work sessions and several meetings, the Landmarks Commission believes they have covered important aspects of location, guidelines and incentives.
6.    The Landmarks Commission believes the proposed district and subsequent created documents will be beneficial to the neighborhood.
7.    The proposed amendments meet the requested clarification by the City Council as stated at the January 5, 2016 Council meeting.

Councilwoman Fillmore made a motion to adopt Ordinance No. 2016-13 amending the Centerville Zoning Map to expand the boundaries of the Centerville Deuel Creek Historic District Overlay to include the east side of 400 East with suggested reasons 1-4.  Councilman McEwan seconded the motion, which passed by unanimous vote (5-0).

Reasons for the Action:

1.    The proposed amendment meets the requirements found in Section 12-21-080-(4)(e).
2.    The proposed Zone Map Amendment meets the goals and objectives of the General Plan concerning a historic district [Section 12-480-8(3)].
3.    Expanding the Centerville Deuel Creek Historic District to include the east side of 400 East will not have a negative impact on the surrounding community.
4.    The Landmarks Commission believes the proposed amendment to the overlay zone will be beneficial to the neighborhood by encouraging further preservation within Centerville.

ZONING ORDINANCE TEXT AMENDMENTS – CHAPTER 12-60 – ACCESSORY DWELLING UNITS

Councilwoman Ivie stated the more she becomes familiar with International Building Code requirements, the more she feels that passing an ADU ordinance would actually hurt the citizens it is intended to help.  She said that, in her opinion, an ADU ordinance would obligate the City to shut down known noncompliant situations, and she would prefer to not formally provide a legal way to have an ADU.  Councilwoman Mecham agreed, adding that she had not realized the scope of the requirements, which she believes could be prohibitive for those who would benefit most from an ADU.  Cory Snyder, Community Development Director, confirmed that the City is obligated to the State’s construction standards.  Councilwoman Fillmore stated she understands the concern, but is not comfortable with backing off completely just because some citizens would not be able to comply.  Councilwoman Mecham pointed out that existing City Code already allows a home owner to have two additional unrelated residents in the home.

Councilwoman Fillmore pointed out that, as explained by Ms. Romney at a previous meeting, tenants would need to be found by word of mouth for a home owner to retain a level of control in choosing tenants since, if an ADU is advertised, the home owner would have to comply with nondiscrimination regulations.  Councilwoman Fillmore stated that the proposed ADU Ordinance has been drafted to provide guidelines and desired clarity.  Explaining enforcement options, Mr. Snyder stated that, when ambiguity is present, the Board of Adjustments will always decide in favor of the property owner.  Ms. Romney responded that much of the Zoning Text is very specific, clear, and enforceable.  The proposed Ordinance provides more clarity for those wanting to legally have an ADU.  Councilman McEwan said he feels the proposed Ordinance would be setting the city up for more ambiguity.  He asked what the impetus was for the ADU discussions, and how many complaints the city actually receives about ADUs.  Mr. Snyder responded that Council ADU discussions were begun in 2002 as a way to potentially fill community needs.  He estimated that in the last ten years he has received 4-6 calls regarding too many people living in a home.  When the city receives a complaint, questions are asked and enforcement considered.  Councilman McEwan expressed confidence in staff’s ability to interpret existing codes and ordinances and act accordingly.

Councilman McEwan made a motion to deny Ordinance No. 2016-04.  Councilwoman Ivie seconded the motion.  Councilman Ince suggested the Council make it clear that the issue has been exhaustively studied.  Councilwoman Fillmore stated that she will vote against the motion only because she feels extraordinarily uncomfortable with the fact that those on the dais would not be able to clearly explain to a citizen what can and cannot legally be done.  She said she would prefer to put an ordinance in place to be followed by those citizens who desire a clearly legal path.  Councilwoman Ivie stated she does not feel the existing ordinance is ambiguous from an enforcement standpoint.  The motion to deny Ordinance No. 2016-04 passed by majority vote (4-1), with Councilwoman Fillmore dissenting.  The Council requested staff draft an explanation of what is currently allowed to post on the City website.

ACCESSORY BUILDING SETBACKS

The discussion of accessory building setbacks and potential amendments to the Flag Lot Ordinance are among the short-term goals the Council agreed upon in the March goal-setting work session.  Mr. Snyder used diagrams to explain setback requirements and buildable area, as well as roof pitch/height allowances.  He showed Google Earth images of accessory buildings in Centerville that do and do not conform, noting that increasing the setback for accessory buildings would make many more buildings non-conforming.  He reminded the Council that nonconforming structures cannot be expanded without Board of Adjustment approval.

Mayor Cutler asked Mr. Snyder to explain the argument against having accessory building setbacks based on building height.  Mr. Snyder responded that backyards have traditionally had fewer restrictions than front and side yards.  Mr. Snyder stated that citizens will not argue having increased setbacks for their neighbors, but he is not convinced that citizens would be willing to accept the consequences of increased accessory building setbacks for themselves.

POTENTIAL AMENDMENTS TO FLAG LOT ORDINANCE

Mr. Snyder explained existing flag lot setback requirements, and asked the Council to consider whether reducing the setbacks from 20 feet to 16 feet has caused significant impact.  Council members Ivie and Mecham stated they are uncomfortable with the idea that a tall home could be built in a backyard taking away the privacy of neighbors. Councilwoman Fillmore stated she feels that flag lots should be a rare exception.  Mayor Cutler said he can see some benefit to flag lots, especially on the north end of town.  Councilman Ince suggested the Council study the issue further and place it on an agenda in July.  The Council agreed.

FISCAL YEAR 2017 BUDGET

City Manager Thacker presented a Proposed Budget for FY 2017, and suggested the Council hold a public hearing on June 7, 2016, and adopt a final Budget on June 21st, with work sessions on May 17th, May 24th, or May 31st.  Councilman McEwan requested staff prepare data showing average annual salary increases given by the City over the last ten years.  He stated that, while the City values its employees, he has a desire for the City to be in line with compatible industry.  He said in his own career he has never had the expectation of an annual increase.  Councilman McEwan said he is not comfortable adopting the Tentative Budget with the proposed salary increases.  Councilwoman Fillmore said she is comfortable adopting and releasing the Tentative Budget to the public knowing it is understood that changes will be made.  Mr. Thacker suggested he include a line in the Budget Newsletter stating that the Council is still discussing the salary issue and invite comments at the public hearing.

Councilman Ince made a motion to adopt the FY 2017 Tentative Budget, schedule work sessions for May 17th and May 31st, and set a public hearing for June 7, 2016.  Councilwoman Ivie seconded the motion, which passed by majority vote (4-1), with Councilman McEwan dissenting.

The Council took a break at 9:06 p.m., returning at 9:13 p.m.

CLOSED MEETING

At 9:13 p.m. Councilman Ince made a motion to move to a closed meeting for the purpose of discussing pending or reasonably imminent litigation and the character and competency of an individual.  Councilwoman Ivie seconded the motion, which passed by unanimous vote (5-0).  In attendance were: Paul A. Cutler, Mayor; Council members Fillmore, Ince, Ivie, McEwan, and Mecham; Steve Thacker, City Manager; Lisa Romney, City Attorney; Jacob Smith, Assistant to the City Manager; Katie Rust, Recording Secretary; Heather White, Snow Christensen & Martineau; and Libby Lowther, URMMA.

The Council returned to regular meeting at 9:57 p.m.

APPOINTMENTS

Mayor Cutler reported he has communicated with an individual interested in serving on the Board of Adjustments.  One position will open on the Planning Commission this fall at the end of Commissioner Kjar’s second term. There is one open position on the Whitaker Museum Board, and two open positions on the Landmarks Commission.

RDA MEETING

At 9:59 p.m. Councilman Ince made a motion to move to a meeting of the Redevelopment Agency of Centerville.  Councilwoman Mecham seconded the motion, which passed by unanimous vote (5-0).  In attendance were: Paul A. Cutler, Chair; Stephanie Ivie, Vice-Chair; Directors Fillmore, Ince, McEwan, and Mecham; Steve Thacker, City Manager; Jacob Smith, Assistant to the City Manager; Lisa Romney, City Attorney; and Katie Rust, Recording Secretary.

The Council returned to regular meeting at 10:07 p.m.

MAYOR’S REPORT

Mayor Cutler reported on UTA’s plan for use of Proposition 1 revenues.

COUNTY-OWNED PROPERTY ON 100 SOUTH

Mr. Thacker updated the Council regarding the County-owned property on 100 South.  He said County staff has suggested the County develop the south portion of the property with access on 200 South, leaving the north portion undeveloped.  Mr. Thacker said the County has asked if the Council would consider waiving City development fees and impact fees (not engineering fees) at the time of subdivision (totaling approximately $10,000).  Ms. Romney suggested the Council request a conservation easement to ensure the north space remains open over time.  Councilwoman Fillmore said she believes it would be a good compromise, and said she would also want a trail easement between 100 South and 200 South.  Councilwoman Mecham said she does not like the idea of developing any part of the property – it is a unique jewel that cannot be replaced once gone.  Councilwoman Ivie expressed the opinion that the City should do everything possible to ensure that every piece of open land not already designated as buildable remain not buildable.  Mr. Thacker responded that the Council needs to look at the big picture and consider the potential benefit to the entire community when considering a large investment of funds.  Councilwoman Ivie stated she feels there is value in protecting open space.  She pointed out that until the Council changes the existing zoning it is not residential property, and expressed frustration with the appraised valuation of $400,000 that assumes residential zoning.  Councilwoman Ivie said she does not feel the Council should give special consideration to the County just because of the debris basin, since flood control is County responsibility and tax-payer money was used to fund the project.

Councilman Ince said he would like to ask the Community Foundation to raise funds to purchase the south portion of the property.  Mayor Cutler pointed out that the County Commissioners are trying to be good stewards of taxpayer dollars and not sit on unused assets.  He agreed that the most convenient option would be if a private group was willing to purchase and maintain the property.  Responding to Councilwoman Ivie’s comments, Mr. Thacker said he feels that Centerville City received a disproportionate share of benefit from the taxpayer dollars issued in the flood control bond.  Taxpayer dollars from all of Davis County benefited 200 property owners in the Centerville hazard zone with construction of the debris basin.  From his perspective, he said it would be unfair to threaten or refuse to rezone the property considering the history of partnership between the City and the County.

Councilwoman Mecham asked if the city is positive that the property is safe for building.  Councilman Ince pointed out that no one on the Council is competent to make that decision.  There is no way to really know the answer to her question.  Mr. Thacker pointed out that many homes have been built on the same alluvial fan.  The County would need to provide evidence that the proposed building design is suitable for the soil.  Councilwoman Fillmore commented that what retains the value of a neighborhood is a matter of opinion.  She said that, while she is not opposed to open space, new quality homes and new residents could be reinvigorating for a neighborhood.  She expressed concern with the idea that keeping everything the way it is will retain the value of the city, where the opposite might actually be true.  Councilman McEwan said he can still see a potential for conflict from the neighbors with the proposed compromise.  He said he does not see a way to make this a win-win situation, and the impact will be seen in years to come.

Referring to the implication that if something is open space it should remain open space, Ms. Romney pointed out that any refusal to deny rezone should be reasonable.  Councilwoman Ivie said she is in favor of asking the Community Foundation to see if anyone would be interested in investing in the property at the reduced price.  Mayor Cutler said he believes the County would be able to get at least $100,000-$125,000 per lot, and asked what the Council as taxpayers would want the County to do with taxpayer land.  Councilwoman Ivie responded that money is not always the issue.  Councilwoman Mecham said she would feel better about keeping half of the property undeveloped than none.  Councilwoman Fillmore said she believes the compromise is a reasonable solution.  Councilwoman Mecham said she would be in favor of a conservation easement.  Councilman McEwan agreed with Councilwoman Mecham.  Mr. Thacker pointed out that the Parks Committee should be consulted before the Community Foundation is asked to raise funds.  Councilwoman Fillmore pointed out the liability involved in owning the property.  Councilman Ince pointed out that a rezone does not guarantee building permit approval.  He suggested staff try to move things in the compromise direction as slowly as possible while the Council examines the possibility of a private party willing to invest in establishing a conservation area.

CITY MANAGER’S REPORT

•    Mr. Thacker reported that UDOT will perform a traffic study of the Parrish Lane corridor later this year, examining each intersection on Parrish Lane.
•    UDOT has agreed to an extension of the Cooperative Agreement for the Parrish Lane project.
•    Wasatch Front Regional Council will host a meeting regarding the update process for the long-range transportation plan on May 23rd at North Salt Lake City Hall.  Council members are invited to attend.

MISCELLANEOUS BUSINESS

•    Council members Fillmore and Ince reported on the ULCT Conference they attended in St. George.
•    Mayor Cutler recommended the Council appoint Kelly Hintze to the Parks and Recreation Committee, and Brandon Federico to the Trails Committee.  Councilman McEwan made a motion to appoint Kelly Hintze to the Parks and Recreation Committee, and Brandon Federico to the Trails Committee.  Councilwoman Mecham seconded the motion, which passed by unanimous vote (5-0).

ADJOURNMENT

At 11:03 p.m. Councilman McEwan made a motion to adjourn the meeting.  Councilwoman Ivie seconded the motion, which passed by unanimous vote (5-0).

____________________________        __05-17-2016______
Marsha L. Morrow, City Recorder            Date Approved

________________________________
Katie Rust, Recording Secretary

May 3, 2016 Work Session

Minutes of the Centerville City Council work session held Tuesday, May 3, 2016 at 5:30 p.m. in the Centerville City Council Chambers, 250 North Main Street, Centerville, Utah.

MEMBERS PRESENT

Mayor                           Paul A. Cutler

Council Members        Tamilyn Fillmore
William Ince
Stephanie Ivie (arrived at 5:37 p.m.)
George McEwan
Robyn Mecham

STAFF PRESENT        Steve Thacker, City Manager
Blaine Lutz, Finance Director/Assistant City Manager
Lisa Romney, City Attorney
Jolene Jackson, Treasurer
Jacob Smith, Assistant to the City Manager
Katie Rust, Recording Secretary

VISITORS            Brad Bennett, GBS Benefits, Inc.
Marcie Gentry, GBS Benefits, Inc.

EMPLOYEE HEALTH INSURANCE RENEWAL OPTIONS

Staff met recently with the City’s health insurance broker, GBS Benefits, to review the renewal offers for medical, dental, life and disability insurance coverage.  The brokers secured renewal offers for life and disability with no increase in premiums.  The renewal for dental insurance would be a 3% increase and the renewal for medical insurance would be a 4.54% increase for continuation of the same benefit plan.  The brokers represent these as very good renewal rates for the City compared to the trend they are seeing for their other Utah clients.  However, in response to interest expressed by several Council members, the brokers have also submitted an option for a Health Savings Account/High Deductible (HSA) medical plan.  Brad Bennett with GBS expressed the opinion that the eventual switch to an HSA is inevitable.  Mr. Bennett commented that the City offers a comparatively rich benefits package when compared with the private sector.  He emphasized the need to educate employees and their spouses to avoid confusion.  Mayor Cutler and Council members Fillmore and Ivie indicated they are in favor of adding an HSA option now, based on their personal experience.  Councilman McEwan commented that the first big difference for employees will be at the pharmacy.  Mayor Cutler asked Mr. Bennett how to make the switch less painful.  Mr. Bennett responded that employees with HSA experience will jump on the opportunity.  He recommended the City offer both traditional and HSA options, and expressed confidence that more employees will choose the HSA option as they become more familiar with it.  To offer both HSA and traditional plans, however, the deductible for the traditional plan should be increased from $750 (single) to $1,000.  He presented to the Council a traditional plan proposal with the $1,000 single deductible ($3,000 family), which would cost 2.47% more than the current traditional plan premium.  The Council discussed the options presented – i.e. $750 deductible plan, $1,000 deductible plan, and an HSA plan.  The City has the option of contributing to individual employee HSA accounts.  Marcie Gentry with GBS commented that the City could contribute a little more for employees with multiple dependents than for employees with no dependents, considering the difference in individual and family deductibles.  The City has traditionally paid 90% of the medical insurance premium.

Mayor Cutler asked staff how they think employees will react to the HSA option.  Jolene Jackson and Jake Smith responded that many employees are fearful, especially those with high pharmacy costs.  Mr. Smith agreed that education will be helpful.  Mr. Bennett stated that, on average, 20% of employees will reach their deductible in a year.  He explained HSA eligibility restrictions, including the fact that employees over the age of 65 are not eligible for an HSA.  Ms. Gentry expressed confidence in their ability to educate and explain the options to employees.  She suggested employee spouses be encouraged to attend the enrollment meeting.

Mayor Cutler said he believes the City should provide significant incentive, and suggested reallocating all of the savings from changing plans this year ($72,000) to incentivize HSA participation.  Councilman McEwan agreed that the City should not expect to save anything in year one.  Councilwoman Fillmore stated she is fine with a significant incentive in year one, but would hate to set up the expectation that similar contributions will continue.  Councilwoman Mecham expressed concern that if the HSA is funded too heavily in year one, employees will make the switch expecting it to continue.  Councilman Ince suggested the City make it clear that the significant contribution would only occur in year one.  Mr. Bennett suggested always reinvesting savings into employee accounts.  Councilman McEwan stated he does not see a reason to put off offering the HSA option.

At this point in the discussion, Jolene Jackson, the City’s employee benefits administrator, asked if an HSA plan could be implemented in the middle of the Flex Spending Account (FSA) period, which is currently on a calendar year basis.  Mr. Bennett acknowledged that since the City’s health insurance plan is on a fiscal year basis, an HSA plan cannot be implemented until the end of the FSA period. The Council and staff discussed options for bringing employees with FSAs into alignment with HSA enrollment.  Mr. Thacker suggested the City could go with an increased deductible ($1,000) plan as of July 1, 2016, then renew the FSA plan for only six months in January 2017, thereby allowing the HSA plan to be offered in July 2017.  Mr. Bennett agreed it would be most effective to wait until everyone is eligible in July 2017.  Mr. Bennett agreed to verify whether the “out-of-pocket” maximum limits showing in the $1,000 deductible plan are correct.  [Note: GBS subsequently informed staff these limits were not correct.]

ADJOURNMENT

Mayor Cutler thanked Mr. Bennett and Ms. Gentry, and adjourned the work session at 6:55 p.m.

___________________________        ___05-17-2016______
Marsha L. Morrow, City Recorder            Date Approved

________________________________
Katie Rust, Recording Secretary