PROVO MUNICIPAL COUNCIL
Work Meeting Agenda
1:00 pm, Tuesday, June 15, 2021
- A presentation regarding a Local Government Disaster Fund. (21-066)
There has been a discussion about creating a Local Government Disaster Fund as authorized in UCA 53-2a-605. Creation of a Local Government Disaster Fund would be used to fund the services and activities of the local government in response to a declared disaster within the boundaries of the local government, the aftermath of the disaster within the boundaries of the local government, and emergency preparedness (it cannot spend more than 10% of the money budgeted to be deposited during a fiscal year for emergency preparedness). The State's Disaster Recovery Fund will make loans to local governments on preferential rates depending on the amount reserved in the fund over the five previous fiscal years; the local government must reserve at least 50% of the amount authorized in UCA 53-2a-605 over the previous five fiscal years to qualify for a loan. That number is based on a percentage of the total estimated revenues of the local government for the current fiscal period that are not restricted or otherwise obligated. There are a few issues that might be discussed: 1. Creation of a Local Government Disaster Fund itself 2. How to fund it. 3. How much should the fund balance should be.
If the Council decides to create the Disaster Fund the Finance Department would be asked to come back to the Council in a future meeting to discuss the funding options as well as what the maximum fund balance should be. This is a continuation of the discussion from the June 1 work meeting.If we are above the 25% threshold in the General Fund, I think we should fund the Disaster Fund more aggressively. A motion to establish the fund, to fund it with a nominal amount of $10,000, and to review at the end of the year to consider additional funding failed 2:5, with David Sewell, Shannon Ellsworth, Bill Fillmore, David Harding, and David Shipley opposed. A motion to establish the fund and use both funding sources (revenue surplus and carryover) to establish an ongoing revenue source for this fund was approved 6:1, with George Handley opposed. - A discussion regarding the Rental Dwelling License Fees. (21-063)
Currently the cost for a Residential Dwelling License (RDL)is $20.00 (twenty dollars) and no more than $60.00 (sixty dollars), the difference is determined by how many properties a license holder has. There are 2,713 RDL’s in Provo that are projected to generate $150,000 for FY 2022. The cost associated with administering the program is estimated to be $100.00 (one hundred dollars) per license. We are asking the Council for direction in reevaluating how costs for the licenses are assigned to ensure that the program is operating at a cost recovery model and not taking funds from the General Fund. This is a continuation of the discussion at the June 1 work meeting. The fees can not exceed the cost of the program. If the cost of administering the program to a specific license holder most strongly depends on the number of rental properties (not units) covered by the license, then the license fee should vary based on the number of properties, not based on the number of units. Also, if the once-every-three-year inspection isn't happening because of a lack of staffing, then the fees should be raised to increase the staffing needed to meet the program's needs. A motion that staff bring this item to the Code Compliance Committee to study and return with a recommendation was approved 7:0. - A presentation regarding Property Taxes (21-064)
As part of the FY 2022 budget discussions, a suggestion was made that additional police officers could be added if the city were to increase property tax revenues by increasing the certified tax rate by some amount. It was noted that property taxes have not been raised for several years and that the property tax portion of total general revenues is diminishing in significance. At the June 1, 2021 Work meeting staff presented on the Truth in Taxation process and the projected revenues a rate increase would generate. The presentation on June 15 will discuss the rates set by Utah County and its impact on the City's budget. I can make a compelling argument why our property taxes should be adjusted to offset inflation. I can also make a compelling argument for why they shouldn't. Presentation only. - A Resolution Transferring $200,000 from the General Fund to the Energy Fund for Land Acquisition and Appropriating $465,844 in the General Fund for a Metal Building and Incinerator. (21-058)
The Police Department is in need of space suitable to park and store equipment. The Energy Fund owns a piece of land that could be used for this purpose. The land would be purchased from the Energy Fund via a transfer from the General Fund. A metal building would be constructed on the property. A new evidence incinerator is also needed. An RFP was issued, and bids reviewed. The low bid was $421,000 for the building and $42,450 for the incinerator. I used to be confused why these proposals weren't part of the budget process. I've come to see them as part of the end-of-fiscal year process where budget surplus from either revenue greater than budgeted or expenses that were less than budgeted get used for one-off projects like this. I'm not sure how I feel about these discussions taking place outside of the prioritization discussions that we have. How long have we known that we had these storage needs? Were they considered as part of the space needs analysis that was done in conjunction with the public safety building design? Have these items shown up on any of our CIP or other longer-range plans? How would these needs be filled if we don't approve this? How have these needs been filled in the past? How does this need compare with the long-standing request for more officers? Presentation only. This item will return to the Council Meeting on July 6, 2021. - A presentation regarding the Intent Statement for the Southwest Area Plan. (21-067)
This will be a discussion about the Southwest Area Plan and the policies developed by the Westside Planning Committee. As development keeps happening in the Southwest Area of Provo we need to look at the policies that govern this area these include the General Plan, Westside Development Policies and the Southwest Area Future Land Use Map, to ensure that development in this area proceeds in a manner that is consistent with adopted Council Policies. Here is what I wrote for this item when we first heard it two weeks ago: "In 2017 the Council adopted the "Westside Development Policies," and later, a Future Land Use map was created, which visualized how these policies would be applied. Since then, there has been some disagreement about how "granular" the policy on housing-type mixture should be. This Intent Statement would clarify the Council's position on this issue and also touches on two related issues." Presentation only. This item was already scheduled for the Council Meeting on June 15, 2021. - An update on the agreement with Christensen Oil authorized by Ordinance 2020-21. (21-078)
At the May 05, 2020, Council Meeting the Council approved an ordinance amending the uses in the Light Manufacturing Zone (M1). There was a Development Agreement included within the ordinance, staff is making a presentation to the Council concerning the status and results of the negotiations regarding the Development Agreement.
We authorized the Administration to negotiate and execute this agreement as long as it followed the broad points of agreement. We don't need to approve the final version; this is just a courtesy presentation. Presentation only. - A presentation regarding the Redevelopment Agency operations. (21-070)
In response to questions from Council, staff decided to make a presentation outlining the Redevelopment Agency and some of its functions. It's easy to compare a future value to an original value. It's much harder to try to figure out the difference between a future value and a "what it would have been" value. Presentation only. - Approval of an Exclusive Negotiating Agreement with McWhinney Real Estate and Appropriate $100,000 from the New Development (Fund 279) Fund Balance to help pay for studies (21-072)
Through a RFP selection process, staff has selected McWhinney Real Estate from Denver, Colorado to redevelop the existing City Hall block once we vacate our offices and move into the new building. The attached Exclusive Negotiating Agreement allows McWhinney to perform studies to determine the size, scope and feasibility of the project. The Agency is asking to contribute $100,000 to that effort with the understanding we will be able to reimburse ourselves from the tax increment generated on the site. We are also going to receive copies of all studies performed on the property. This assumes that we will set up tax increment financing on this property. I'm not necessarily opposed to doing so, but I need to be convinced that it is in the best interest of the community. Also, I'm curious if we've gotten to the point where we know if we are headed in the direction of selling the property or if we will retain ownership and lease the property. Presentation only. This item was already scheduled for the Council Meeting on June 15, 2021. - A resolution regarding a Parking Sublicense Agreement between the Redevelopment Agency of Provo City, Provo Housing Authority, Norco Vista LLC., and 85 North Condominium Association Inc.. (21-077)
This is for the 85 N 100 E housing project which will house low income seniors and individuals with autism. This was a late add. As long as this is simply a transfer of control from one entity to another, I don't see any problem with it. Presentation only. This item was already scheduled for the Council Meeting on June 15, 2021. - An ordinance amending the Zone Map classification of approximately 3.8 acres of real property, generally located at 5600 N University Avenue, from Manufacturing Park (MP) to General Commercial (CG) Zone. Riverbottoms Neighborhood. (PLRZ20200272)
The applicant is asking for the properties on approximately 3.8 acres located at approximately 5600 N University Avenue to be rezoned from the Manufacturing Park (MP) to the General Commercial (CG). There are two properties, each with an existing building located on them. These buildings have been vacant for a while and have needed repairs and improvements. The applicant would like to bring new life and appeal to these buildings and this area at the northern entrance into Provo City by making the needed improvements. Planning Commission recommended approval. This appears to be a great proposal. I see no downsides and plenty of benefits. Presentation only. This item was already scheduled for the Council Meeting on June 15, 2021. - An ordinance amending the Zone Map classification of approximately .80 acres of real property, generally located at 690 E 500 S, from Residential Conservation (RC) to Medium Density Residential (MRD) zone. Maeser Neighborhood. (PLRZ20210086)
The 0.82-acre subject property lies in the RC Zone in an area of mixed uses. There are many residents in the area, which appear to be single-family. There is attached housing just to the south of the subject property. A large apartment complex is under construction just to the northeast of the property. There are a few small businesses near the subject property. The property lies approximately one-half block north of the Provo City Cemetery. Two dwellings and a detached garage lie on the subject land. The subject property has an abundance of open space that may be currently under-utilized. Planning Commission recommended approval with conditions. I'm supportive of the general concept. I worry though that MDR is too dense of a zone for this area. The concept plan, which shows 15 units replacing the two that currently exist, feels too tight, with only 4 of the units facing the public streets. Presentation only. This item was already scheduled for the Council Meeting on June 15, 2021. - An ordinance amending the Zone Map classification of approximately 23.5 acres of real property, generally located at 200 N Lakeshore Drive from Agricultural (A1.10) and (A1.5) to Residential (R1.8) and Residential Agricultural (RA) Zone. Fort Utah Neighborhood (PLRZ20210049)
Currently, Community and Neighborhood Services is overseeing a General Plan update. Recently the Council approved an expenditure to expand the Scope of Work for the contractor on the General Plan to include a section on Sustainability. The Foothills Protection Committee is making a presentation regarding the possible expansion of the Scope of Work for the General Plan to include sections covering plans for the Foothills and Canyons, Gateways, and possibly Lakes and Rivers. I don't believe this proposal is aligned with the intent of the Westside Development Policies. Presentation only. This item was already scheduled for the Council Meeting on June 15, 2021.
Business
Policy Items Referred from the Planning Commission
Closed Meeting
Adjournment
PROVO MUNICIPAL COUNCIL
Regular Meeting Agenda
5:30 PM, Tuesday, June 15, 2021
- A presentation commending Deputy Chief Jeremy Headman for completing the National Fire Academy Executive Fire Officer program and receiving the Executive Fire Officer Designation (21-074).
Presentation only. - A presentation regarding the Provo Freedom Festival (21-075).
Presentation only. Public Comment
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State Law prohibits the Council from acting on items that do not appear on the agenda. - A public hearing on transferring Utility Revenues to the General Fund & other funds (21-015)
State law requires that Provo City provide an annual disclosure of funds transferred from the utility enterprise funds to the General Fund. Historically, Provo has budgeted for the transfer of 10% of utility revenues to the General Fund as a "dividend" to Provo taxpayers as the result of the taxpayers' investment in the City's utility infrastructure. These funds are used each year to help cover the costs of important City services like police, fire, parks and recreation, and other City functions. The utility transfer, together with franchise fees, helps keep property taxes in Provo low. If City utility services were provided by private utility owners, these dividends would instead be paid to investor-owners. Because Provo taxpayers are the investor-owners, these dividends are used to offset what otherwise would be a significant increase in property tax rates. The 10% transfer totals $11,907,231 in the proposed 2022 budget.
Since 2013, a 1% transfer from utility fund revenues has been transferred to the General Fund to be used to enhance available funding for road maintenance. The 2022 budget proposes that $1,190,723 be transferred to the General Fund. It is more cost effective and operationally efficient for certain administrative functions such as legal, human resources, information technology, and finance to be administered on a city-wide basis. Transfers from the funds receiving the benefit of these administrative services to the General Fund totaling $1,258,504 have been included in the proposed 2022 budget. The transfers from utility fund revenues to the General Fund total $14,356,458 in the proposed FY2022 budget.The background information says it well. Public hearing only. - An ordinance adopting a budget for Provo City Corporation for the Fiscal Year beginning July 1, 2021, and ending June 30, 2022, in the amount of $303,469,053. (21-015)
The Mayor presented the Tentative FY2021-2022 Budget at the May 4, 2021 Council Meeting. It was tentatively approved in the May 18, 2021 Council Meeting. Utah State Code requires two public hearings regarding the proposed budget prior to final adoption. This is the last of two public hearings held. I feel pretty good about the budget. Approved 7:0. - Approval of an Exclusive Negotiating Agreement with McWhinney Real Estate and Appropriate $100,000 from the New Development (Fund 279) Fund Balance to help pay for studies (21-072)
This was item 8 on the work meeting agenda. See my preview for item 8 in the earlier meeting. Approved 7:0. - A resolution adopting a budget for the Redevelopment Agency of Provo City Corporation for the Fiscal Year beginning July 1, 2021, and ending June 30, 2022, in the amount of $1,184,648 (21-015).
This is the second of two public hearings; the first one was held on June 1, 2021. Tonight, the Governing Board will consider final adoption of the FY2022 Budget for Provo City Redevelopment Agency. Related to item 4. Approved 7:0. - A resolution regarding a Parking Sublicense Agreement between the Redevelopment Agency of Provo City, Provo Housing Authority, Norco Vista LLC., and 85 North Condominium Association Inc.. (21-077)
This was item 9 on the work meeting agenda. See my preview for item 9 in the earlier meeting. Approved 7:0. - A Public Hearing on transferring Stormwater Fund revenues to the General Fund and ERP Debt Service Fund (21-015)
State law requires that the Provo City Stormwater Service District provide an annual disclosure of Stormwater funds transferred from the utility to the General Fund. Historically, Provo has budgeted for the transfer of 10% of utility fund revenues to the General Fund as a "dividend" to Provo taxpayers as the result of the taxpayers' investment in the City's utility infrastructure. These funds are used each year to help cover the costs of important City services like police, fire, parks and recreation, and other city functions. The utility transfer, together with franchise fees, helps keep property taxes in Provo low. If City utility services were provided by private utility owners, these dividends would instead be paid to investor-owners. Because Provo taxpayers are the investor-owners, these dividends are used to offset what otherwise would be a significant increase in property tax rates. Related to item 3. Public hearing only. - A Resolution Adopting a Budget for the Provo City Stormwater Service District in the Amount of $5,068,938 for the Fiscal Year Beginning July 1, 2021 and Ending June 30, 2022. (21-015)
This is the second of two public hearings, the first one was held on June 1, 2021. Tonight, the Governing Board will consider final adoption of the FY2022 Budget for Provo City Stormwater Service District. Related to item 4. Approved 7:0. - A resolution regarding the adoption of the Fire Master Plan. (21-069)
This was presented at the June 1 work meeting. The review identified areas where the department can improve and lays out a long-term plan to address the evolving fire service needs for our community. Approved 7:0. - An ordinance amending the Zone Map classification of approximately 3.8 acres of real property, generally located at 5600 N University Avenue, from Manufacturing Park (MP) to General Commercial (CG) Zone. Riverbottoms Neighborhood. (PLRZ20200272)
This was item 10 on the work meeting agenda. See my preview for item 10 in the earlier meeting. A motion to substitute the exhibit for the implied motion to the ordinance authorizing a development agreement was approved 7:0, after which the ordinance was approved 7:0. - An ordinance amending the Zone Map classification of approximately .80 acres of real property, generally located at 690 E 500 S, from Residential Conservation (RC) to Medium Density Residential (MRD) zone. Maeser Neighborhood. (PLRZ20210086)
This was item 11 on the work meeting agenda. See my preview for item 11 in the earlier meeting. This item was continued by Council rule. - A resolution regarding the Intent Statement for the Southwest Area Plan. (21-067)
This was item 5 on the work meeting agenda. See my preview for item 5 in the earlier meeting. A motion to send the draft intent statement to the Planning Commission for recommendation for clarifications needed to the west side plan was approved 7:0. - An ordinance amending the Zone Map classification of approx 23.5 acres of real property, generally located at 200 N Lakeshore Dr. from Agricultural (A1.10) and (A1.5) to Residential (R1.8) and Residential Agricultural (RA) Zone. Fort Utah Neighborhood. (PLRZ20210049)
This was item 12 on the work meeting agenda. See my preview for item 12 in the earlier meeting. This item was continued.
