Tuesday, September 18, 2007 7:00 p.m.

Public Safety Building

3925 W Cedar Hills Drive, Cedar Hills, Utah

Portions of this meeting were held electronically via telephone to permit one or more of the council members to participate.

Present:           Mayor Mike McGee, Presiding

Council Members: Charelle Bowman, Jim Perry, Eric Richardson, Joel Wright

                        Konrad Hildebrandt, City Manager

                        Kim Holindrake, City Recorder

                        Greg Robinson, Assistant to the City Manager-Planning

                        David Bunker, City Engineer

                        Courtney Hammond, City Meeting Transcriber

                        Eric Johnson, City Counsel

Others: Mark Edminster, Ken Kirk, Clifton Chandler, Karissa Neely, Brent Uibel, Scott Jackman, Nicholas Banks, Diane Kirk, Shawn Richins, Craig Clements (8:36 p.m.), Zonda Perry (8:41 p.m.)


1.         This City Council meeting of the City of Cedar Hills, having been posted throughout the City and the press notified, was called to order 7:13 p.m. by Mayor McGee.

            Invocation given by C. Perry

            Pledge of Allegiance

2.         Public Comment (7:14 p.m.)


          Brent Uibel: Mr. Uibel stated that two weeks ago, the Council received training on open meetings. He has seen instances where there are several different conversations going on between Council members and staff that make it difficult for the public to hear and understand what is going on. He asked that Mayor McGee and the Council members take their responsibilities seriously and be considerate in their discussions so that the public can hear what is being said.


3.         Amendments to the City Code, Title 10, Chapter 5, Section 15, Home Occupations (7:17 p.m.)

            No comments.


C. Perry said that he has received feedback from residents who said it is difficult for them to determine the type of change being made to the ordinance. He also had difficulty figuring out the proposal. He asked that the listed agenda items and supportive material be more specific so that residents can easily ascertain what will be discussed. Kim Holindrake said that residents call for additional information when needed, which is rare. Mayor McGee requested that the specific proposed changes be included in the Council packet and on the website. Residents can then be referred to the website.


4.         Minutes from the September 4, 2007, Regular City Council Meeting (7:22 p.m.)

MOTION: C. Bowman - To approve the consent agenda. Seconded by C. Wright.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                 Motion passes.


5.         Review/Action on Golf Course Reconfiguration (7:23 p.m.)

Staff Presentation:

See handouts. Konrad Hildebrandt stated that in the last Council meeting, the City Council requested feedback from a golf course architect about the proposed changes to the golf course. John Bush chose not to participate because he has not been in the golf course design field for some time. Mayor McGee contacted Damian Pascuzzo of Pate and Pascuzzo. He visited the golf course and reviewed all the course design details. Mr. Pascuzzo made a statement that many courses around the country have introduced an innovative driving range with nets and a training facility. He also said that courses are starting to be more innovative, using non-traditional models in the design of golf courses that take a more business-like approach. The proposed simulators provide that kind of innovative shift. Konrad Hildebrandt reported that through the end of August the total revenue from April to August increased by $100,000 with equivalent costs. Between now and the next meeting, staff will put the hole design out to bid.


Mayor McGee stated that Damian Pascuzzo initially said that he would not recommend developing the golf course range, under any circumstances. He was under the impression that the driving range was bringing in a lot of money. Since that time and knowing all the facts, he recommended developing the driving range as the only viable option. Jim Madsen, Director of Golf, had the opportunity to present his golf hole ideas to Damian Pascuzzo. Mr. Pascuzzo is willing to put a proposal together for the new hole.

Council Discussion:

C. Perry emphasized that an engineer is not an artist. Bidding out the design won’t hurt the City. The costs may turn out to be prohibitive, but there is value in getting a professional design so it’s worth at least getting bids.

MOTION: C. Bowman - To approve further action on the golf course reconfiguration and direct staff in putting out to bid the design of the new hole 17. No second. Motion dies.

Further Discussion:

          C. Wright said he would like to have Civil Science design and configure the hole. He does not think a golf course architect will add much value. David Bunker said that engineers are not architects and will design a straightforward hole.

          By way of illustration, C. Perry stated that the Timpanogos Cove Park was designed by Civil Science. It has a fabulous play area and a parking lot, but there is no walkway from the play area to the parking lot. A professional park architect would likely have included a walkway in the design. He is not convinced that Civil Science is the best choice for the beauty and design elements of the golf hole. He pointed out that the City will spend more on interest on the golf course bond over the next couple weeks, than the cost of getting a golf course designer.

          Konrad Hildebrandt pointed out that everything that is paid toward a golf course architect is less money to pay toward the golf course. Timpanogos Cove Park was originally designed by a park architect and then had to be drastically changed because of engineering. There would be value to a golf course architect, though the City could internally develop a nice golf hole.

          David Bunker stated that there needs to be balance. An engineer can design the hole though it may not be aesthetically pleasing. An architect can design it, but there may need to be tweaking based on the physical survey. Engineers will need to be involved, no matter what.

          Mayor McGee suggested having Civil Science design it, then sending the plan to Damian Pascuzzo for suggestions.

          C. Bowman stated that she does not want it done wrong, requiring the City to spend money to fix it. She would like it designed the right way at the beginning.

MOTION: C. Bowman - To approve further action on golf course reconfiguration and direct staff in putting out to bid the design of the new hole 17, including Damian Pascuzzo’s assistance. No second. Motion dies.

Further Discussion:

          C. Perry stated that the legal counsel’s opinion should be carefully weighed before moving forward on the reconfiguration.

          Eric Johnson cautioned that if the City is not ready to act on something, it may want to wait to have a professional move forward, out of courtesy to their time.


14.       Motion to go into Executive Session, Pursuant to Utah State Code 52-4-5 

MOTION: C. Bowman - To go into Executive Session to discuss purchase or sale of real property. Seconded by C. Perry.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.


15.       Motion to Adjourn Executive Session and Reconvene City Council Meeting

MOTION: C. Bowman - To adjourn the Executive Session. Seconded by C. Wright.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                 Motion passes.

C. Bowman participating via phone. (8:35 p.m.)

MOTION: C. Wright - To ask City Staff to continue with what the Council told them on the golf course, parallel with that to get some bids from golf course architects on how to best configure the driving range into a golf hole. Seconded by C. Bowman.

Further Discussion:

          Eric Johnson said that regarding reconfiguration, he has not been directed to do anything. The discussion in the Executive Session should remain in Executive Session.

          C. Wright clarified that the previous direction that has been given staff is specifically C. Maxwell’s motion in the last meeting.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.


6.         Public Comment/Review/Action on a Resolution Finalizing the Terms and Conditions of the Issuance and Sale by the Issuer of its Utility Revenue Bonds, Series 2007 in the Aggregate Principal Amount of $2,090,000; Awarding and Confirming the Sale of Said Series 2007 Bonds; Authorizing the Execution by the Issuer of a Second Supplemental Indenture of Trust, and Other Documents Required in Connection Therewith; and Authorizing the Taking of All Other Actions Necessary to the Consummation of the Transaction Contemplated by this Resolution; and Related Matters (8:40 p.m.)

Staff Presentation:

See handouts. Mark Edminster stated this is the final action prior to closing on the bonds. The state will purchase the bonds at a lower than market interest rate - 2.71%. The current rate is 4.44%. Over the 20-year life, the City will pay about $640,000 in interest. For comparison at market rate, interest would be about $1 million. The dollar amount of the bond can be lowered if the bids come in lower. When the state purchases a bond, they give incremental advances. The advantage is that the City is only paying interest on what it actually uses. Mayor McGee stated the City received a letter from a resident in regards to the issuance of bonds. The letter will be entered in the minutes and mailed to the state.

Meeting adjourned for five minutes. (8:50 p.m.)

C. Bowman returned in person and meeting reconvened (8:55 p.m.)

Council Discussion:

          C. Perry asked when and if the Council should consider other bond counsel. Although pleased with the service of Lewis Young, C. Perry wants to ensure the City follows due process and considers all options. Eric Johnson said that there are three major providers in Utah: Zions, Wells Fargo and Lewis Young. Lewis Young was retained about two years ago. It was the only one of the three interested. The advantage of Lewis Young is that it is independent. Zions declined to bid on the golf course bond. Eric Johnson feels the City has received excellent service from Lewis Young at a competitive rate. C. Perry stated that he is very happy with Lewis Young. Due to the fact that Zions was the holder of the original golf course bond and a few prior council members advocated default on that bond, he is not surprised that Zions did not bid on the golf course bond.

          Eric Johnson said that this bond can be paid in advance. At 2.72%, he would not advise prepaying the bond. The City is required to build a debt service reserve fund over the period of 120 months equivalent to one year’s debt service on the bond. In building the debt reserve the City can earn interest that does not need to be arbitraged back.

MOTION: C. Perry - To approve Resolution 9-18-2007A, as presented. Seconded by C. Bowman.

Further Discussion:

          C. Bowman stated that this well was discussed before she was on the Council. Originally it was discussed at $1 million. It has cost a lot of money to wait. She wishes it had been done years ago.

          C. Perry stated that this is something the City needs to do to provide service to its residents.

Vote taken by roll call.           Aye     -          C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.

7.         Review/Action to Award the Drilling Contract for the New Well (9:08 p.m.)

Staff Presentation:

See handouts. David Bunker stated that the drilling portion of the Cottonwood Well project went to bid. The site improvements will need to go to bid because they will cost $40,000-50,000. Drilling will take up to the first part of February. The low bid is Henkle Drilling and Supply at $619,560. David Bunker has followed up on references and has received positive feedback.

MOTION: C. Perry - To approve a contract with Henkle, to complete drilling and development of the proposed Cottonwood Well project, in the approximate amount of $619,560. Seconded by C. Bowman.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.

Further Discussion:

          C. Perry asked whether this well could be used to feed into the pressurized irrigation (PI) system for peak usage. David Bunker said that there is not a direct feed into the PI system. It is possible to pump into a pond and overflow the upper tank.

          C. Bowman would like to ensure that the City is being responsible with water usage on City land.

          C. Wright would like a discussion to meter the top water users on a future agenda. C. Perry said that the Council already decided that the top water users should be metered. C. Bowman would like a cost analysis of what it would cost to meter. David Bunker estimated that the golf course, parks and high school use 50% of the water.


8.         Review/Action on Resolution Adopting the Interlocal Cooperation Agreement with Utah County for Election Services (9:34 p.m.)

Staff Presentation:

See handouts. Kim Holindrake stated that when Governor Huntsman called for a state-wide election on the school vouchers, Lieutenant Governor Herbert asked that the counties and municipalities work together and adopt a contract. Cities were asked to provide an estimate of what was budgeted for their November election. The City estimated $3,500 for the election. The County will provide $1,882 and the state will contribute $4,028.

Council Discussion:

C. Perry said that he felt the City usually paid more than $3,500 for an election. Kim Holindrake explained that the budgeted amount for elections includes some contingencies as well as other costs that the City will still pay for this election such as signage, noticing, and meals. The $3,500 figure just includes the amounts for equipment, ballots and judges.

MOTION: C. Wright - To approve Resolution 9-18-2007B, a resolution authorizing the Mayor to execute an Interlocal Cooperation Agreement between Utah County and the City of Cedar Hills for services for the 2007 General Municipal Election. Seconded by C. Bowman.


C. Perry asked what entity is responsible to cover any potential cost overruns. Kim Holindrake clarified that this puts the City under contract for $3,500. If the election costs go over, the City is only responsible for $3,500.


Vote taken by roll call.           Aye     -          C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.


9.         Review/Action on Ordinance Amending the City Code, Title 10, Chapter 5, Section 15, Home Occupations (9:55 p.m.)

Staff Presentation:

See handouts. Kim Holindrake stated that the business license section in Title 3 of the code was revamped last November. This amendment cleans up the inconsistencies left in Title 10. All references to Title 10 for business licensing are changed to Title 3, and old regulations are removed.

MOTION: C. Wright - To approve Ordinance 9-18-2007A amending Title 10 of the City Code of the City of Cedar Hills, Utah, deleting Section 10-5-15, Home Occupations and amending Code references pertaining to Section 10-5-15. Seconded by C. Perry. Vote taken by roll call.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.

10.       Review/Action on Providing Cedar Hills Services to Non-Residents (10:02 p.m.)

Staff Presentation:

See handouts. Konrad Hildebrandt stated that the Council previously passed a resolution and proclamation regarding providing services to nonresidents. This addresses the logistics. There are five nonresidents receiving City services. Some of them want to come into Cedar Hills, but Pleasant Grove has been unwilling to let them out. Kim Holindrake stated that about five years ago, Cedar Hills and Pleasant Grove were close to an interlocal agreement, and Cedar Hills allowed these five residents to hook onto the sewer. Then the interlocal agreement fell through. As a result, Cedar Hills will no longer allow anyone to hook onto utilities unless they are boundary adjusted.

Council Discussion:

          C. Bowman suggested giving the nonresidents until the end of the year to start paperwork on boundary adjustment. If they do not start the paperwork, their utility rates go up significantly.

          C. Perry said the definition of a city is a group of people that band together to share services. He agrees with the letter, but it should be amended to clarify that Cedar Hills will boundary adjust only those Pleasant Grove residents to whom Cedar Hills can provide services rather than any Pleasant Grove resident who requests it. The reality is that the actual cost of providing the services now and in the future is a guess, and Cedar Hills residents end up making up the difference. His intent is not to be punitive, and 10 times feels punitive. Four times the normal rate may be a good place to start.

          Mayor McGee stated that there needs to be another element that addresses those that are receiving Cedar Hills services and want to disconnect from Pleasant Grove.

          Kim Holindrake said that the purpose of the policy is to get the resident to be proactive. If boundary adjustment doesn’t work, they can pursue a disconnection.

MOTION: C. Wright - That the City inform the five people and hold them to the following, and any others who might be receiving services from our great city who are not living on property that is part of our city; that City staff use all reasonable means to inform each household that if they have not filed to boundary adjust before January 1, 2008, the City will quadruple their price—not double, but quadruple; if they have not boundary adjusted before July 1, 2008, the City will increase it to eight times the rate charged to Cedar Hills residents. Seconded by C. Perry.

Further Discussion:

          C. Perry added that item 3 in the letter needs to be changed to state “Cedar Hills will boundary adjust those Pleasant Grove residents to which Cedar Hills can provide services.”

          C. Bowman stated that the letter needs to be changed to reflect the utility rates and deadlines referenced in the motion.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.

MOTION: C. Bowman - To table item 11 due to the fact that two council members are missing, and I think it would be effective for all to be here. No second. Motion dies.

11.       Review/Action on City Council Procedures (10:31 p.m.)


See handouts. C. Perry stated that the procedures are outdated and contradictory. He would like to see following changes:

          Strike repetitions of the state code. The state code should be referenced and attached.

          References to presiding officer should be referenced as such, not as mayor.

          Fix language in 4.5 work session to reflect whether a final vote is allowed.

          5.1.G.5 change reference from city administrator to city manager.

          7.7 reconsideration needs to be defined. Currently, it is confusing.

          10.3.D Strike the last sentence.

          10.3.F Strike the paragraph.

          12.1.G (4) should not be numbered.

MOTION: C. Bowman - To continue item 11, the Review/Action on City Council Procedures until next Council Meeting and include all the changes by C. Perry to be reviewed at the next meeting. Seconded by C. Perry.


Aye-C. Bowman

C. Perry

                                                                        C. Wright                                Motion passes.

12.       City Manager Report and Discussion (11:00 p.m.)


          Eric Johnson reported on creating a separate agency for a recreational facility. There are three options: (1) Special Service District. One of the entities has to be the sponsoring entity and the City Council of that sponsoring entity is the governing body. (2) Local District. A public hearing, protest period, and an election is required. If sufficient numbers protest, it cannot be called for an election. The district would operate independently of the municipalities that call the election. The governing body is appointed by the county commission. (3) Interlocal Entity via an Interlocal Agreement. There are not many rules about how an interlocal entity is governed. The drawback is that an interlocal entity has a maximum life of 50 years. Mayor McGee reported that the mayor of Highland is supportive of creating a separate agency. The city council of Highland is divided, and their city will vote on it in the November election. It will also be on the Alpine ballot, though the mayor and two council members are opposed.

          The playground equipment in Heritage Park was damaged. The bid to replace it is around $18,000. The Council feels that security measures should be investigated.

          The Metropolitan Water District wants some trees removed on Bayhill Drive.

          Flag Football referees are needed.

          Rich Knapp has accepted a position as City Manager of Bluffdale.

          Greg Robinson presented information on moratoriums. A process needs to be followed, including creating an interim ordinance. Five conditions make moratoriums valid: adoption by the local government in good faith, the moratorium cannot be discriminatory, it needs to be of limited duration, the purpose of a moratorium needs to be for the development of a comprehensive zoning plan, and the government needs to act promptly to adopt the plan. If the Council wants to proceed, more direction is needed. C. Perry encouraged the Planning Commission members to not continue to approve high density developments.

          Mayor McGee and C. Richardson spoke with Eric Johnson, Mark Edminster, and Laura Lewis about the parkland impact fees. The nine acres on 4800 West will be included in the impact fee analysis.


13.       Board and Committee Reports

            No reports.


16.       Adjourn


This meeting was adjourned at 11:16 p.m. on a motion by C. Wright, seconded by C. Perry, and unanimously approved.


/s/ Kim E. Holindrake

Approved by Council:                                                Kim E. Holindrake, City Recorder

   October 2, 2007