City Council

Minutes of the Millcreek City Council June 14, 2021 7:00 p.m. Regular Meeting The City Council of Millcreek, Utah, met in a regular public meeting on June 14, 2021 at City Hall, located at 3330 S. 1300 E., Millcreek, UT 84106. The meeting was live streamed via the City's website with an option for online public comi'nent. PRESENT: Council Members City Staff Jeff Silvestrini, Mayor John Brems, City Attorney Silvia Catten, District 1 Elyse Sullivan, City Recorder Dwight Marchant, District 2 Francis Lilly, Planning & Zoning Director Cheri Jackson, District 3 Kurt Hansen, Facilities Director Bev Uipi, District 4 (arrived at 7:10 pm) Laurie Johnson, HR-Finance Director Mike Winder, Assistant City Manager Attendees: Thom DeSirant, Peter Frost, Stanford Bell, and Chief Steve DeBry. REGULAR MEETING - 7:00 p.m. TIME COMMENCED: 7:02 p.m. 1. Welcome, Introduction and Preliminary Matters 1.1 Pledge of Anegiance Mayor Silvestrini called the meeting to order then led the pledge of allegiance. He recognized the day as Flag Day. 1.2 Public Comment There were no comments. 2. Planning Matters 2.1 First Reading on ZT-21-001, Amendments to Title 18 Regarding Title Report Requirements; Francis Lilly, Planning & Zoning Director Francis Lilly said as a matter of practice, planning staff requires a title report for subdivisions. He said the title report has infon'nation that is necessary for the plat. The title reports would be required within 90 days of recording a plat. Mayor Silvestrini expressed the importance of updated title reports. Millcreek City Council Meeting Minutes 14 June 2021 Page 2 of 8 2.2 Discussion and Consideration of Ordinance 21-24, Approving an Amended Development Agreement for Capri Village for Property Located at or Near 3612 South 805 East Francis Lilly said the Council previously approved a development agreement for 40 new deed restricted senior living condos for Capri. The condos will replace the old pitch and putt course. There will be a new community center, new homes, and additional parking. Mayor Silvestrini said the development also provided a contribution to the City's affordable housing stock. Lilly said 6 of the units would be deed restricted for sale at a lower cost at $173,203 per the old agreement. He said that figure was based on the 2016 market and the cost of construction had gone up since then, so the developer asked to change that price to $233,824.05 and would stay in the 80% AMI (Area Median Income) threshold. The amended agreement would stipulate that the maximum sale price of those units would be at $233,824.05. Stanford Bell, Northstar Builders, said the cost of lumber in 2019 was $13,000 per building and it was currently $50,000 per building. The cost greatly affected the developer's ability to complete the project. He said the AMI had jumped up 35o/o since 2019. Mayor Silvestrini said he appreciated what Northstar Builders had done for the community. Council Member Marchant moved to approve Ordinance 21-24, Approving an Amended Development Agreement for Capri Village as presented. Council Member Jackson seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously 3. Financial Matters 3.1 Public Hearing on a Monetary Appropriation to the Asian Association of Utah Mayor Silvestrini said the Asian Association of Utah was affiliated with the Millcreek refugee community. They operate the center on 3900 S. which provides a place for kids to go, an after-school program, and they partnered with the Millcreek Promise Program. Due to budget cuts in connection with the pandemic, the center was short $100,000. The Association asked if Millcreek could assist them. The Mayor said a study was conducted to establish a basis for taxpayer funds with a finding that the appropriation would be to the benefit of the general welfare of residents and therefore would be appropriate. Mayor Silvestrini asked the Council to appropriate $100,000 to the Association in FY 2021-22 from the American Rescue Plan Act. He said it was an eligible expense since it was pandemic relief as revenue replacement. He would like the Council to make a similar contribution during the next year fiscal year. Peter Frost, Director of Youth and Family Services at the Asian Association of Utah, said he had enjoyed participating in the Education Subcommittee associated with the Millcreek Promise Program. He said people benefited from the Sunnyvale Neighborhood Center and this funding would allow them to continue the after-school programs. He said the center was open year-round and he appreciated the appropriation. Council Member Marchant asked where his office was located. Frost said he split his time between the Center and an office downtown. Council Member Catten asked how the Suru'iyvale Center was usually funded. Frost said as a nonprofit organization, they received funding from various sources such as private donations, city/county/state funding, and even Millcreek City Council Meeting Minutes 14 June 2021 Page 3 of 8 federal funding. He said in the past it had primarily been funded from the State Department of Workforce Services. He said the County did provide some funding and that had been cut. Council Member Uipi asked about the budget specific to the Sunnyvale program. Frost said the hard costs of the center and the program costs were about $400- 450,000 a year. The Center was looking to reimplement English classes. Mayor Silvestrini said Frost had submitted a detailed budget request to him. Council Member Uipi moved to open the public hearing. Council Member Catten seconded. Mayor Silvestrini called for the vote. All Council Members voted yes. The motion passed unanimously. There were no comments. Council Member Uipi moved to close the public hearing. Council Member Marchant seconded. Mayor Silvestrini called for the vote. All Council Members voted yes. The motion passed unanimously. 3.2 Discussion and Consideration of Ordinance 21-21, Approving a Monetary Appropriation to the Asian Association of Utah Council Member Uipi moved to approve item 3.2, Ordinance 21-21. Council Member Catten seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously 3.3 Public Hearing to Receive Input from the Public with Respect to (a) the Issuance of Approximately $39,000,000 of Sales Tax Revenue Bonds and (b) Any Potential Economic Impact that the Project to be Financed with the Proceeds of Said Bonds May Have on the Private Sector Mayor Silvestrini said the Council had already passed a parameters resolution which said that if the City could get the set minimum terms, then the City was authorized to borrow $39 million to build a city hall. He said by issuing a sales tax revenue bond at this time, the City would be able to take advantage of low interest rates and it would enable the City to build a city hall at Millcreek Cornrnon. The city hall needs to be relocated because of the impending termination of the lease on the current building. The public hearing was an opportunity to hear feedback from the public on the matter. He said city staff and bond counsel would be making a rating presentation to Standard and Poor's (S&P) that week. Council Member Uipi moved to open the public hearing. Council Member Catten seconded. Mayor Silvestrini called for the vote. All Council Members voted yes. The motion passed unanimously. Mayor Silvestrini said because of the sales tax revenue the City was receiving, staff was confident the City would be able to pay for the bonds without raising taxes. Thom DeSirant, 718 E. Nibley View Court, asked if this bond was the same as the bond the City took out for the $20 million for Millcreek Common. Mayor Silvestrini said yes, the difference was that these bonds would be repaid from the General Fund rather than tax increment. DeSirant asked if sales tax revenue went down, if the bond would be paid Millcreek City Council Meeting Minutes 14 June 2021 Page 4 of 8 with increased property taxes in the future. Mayor Silvestrini said it was possible, but the City still had three times the coverage to make the payments if there was no revenue. He said the likelihood was extremely low. DeSirant asked about other taxing entities' share. Mayor Silvestrini said the taxing entities participate in the community reinvestment area, so Millcreek was ensured of their increment for twenty years. Council Member Marchant said it was highly unlikely that Millcreek's revenue would go down. Council Member Uipi moved to close the public hearing. Council Member Catten seconded. Mayor Snvestrini called for the vote. All Councn Members voted yes. The motion passed unanimously. Mayor Silvestrini said the City's financial counsel felt the rating from S&P would be sufficient since they gave the City a favorable rating the last time. Council Member Catten asked if anyone had given any cornrnent to the Mayor on the matter. The Mayor said he had not received any negative comments. He said he appreciated Woodbury & Associates for allowing the City to rent the current city hall building at a discounted rate. Mike Winder said he had receisred positive feedback about the proposed city hall and that even with the bond, Millcreek was one of the least leveraged cities in the Salt Lake valley because of its solid financial position. Laurie Johnson said once she had run the numbers in a spreadsheet, she knew that Millcreek could make payments on the bond. The budget projected revenues conservatively and expenses realistically. 3.4 Discussion and Consideration of Ordinance 21-22, Adopting a Final Budget; Making Appropriations for the Support of Millcreek for the Time Period Beginning July 1, 2021 and Ending June 30, 2022, and Determining the Rate of Tax and Levying Taxes Upon All Real and Personal Property within Millcreek (the Resulting Tax is the Same Amount of Tax Previously Collected by Mfflcreek and will not Result in a Tax Increase to Residents of Mfflcreek) Mayor Silvestrini said the Council had reviewed and tentatively adopted a tentative budget. He said Millcreek would not need a tax increase. Laurie Johnson reviewed the General Fund revenue changes from the tentative budget. She received the certified tax rate from the County on June 1 l'h. The County determined the rate, and it would be 0.001841 compared to the previous year of O.001699. Mayor Silvestrini said if property values go up, the city tax revenue does not go up. The rate is adjusted so the same revenue amount is collected. Johnson said the new growth in property tax revenues was $80,011. Johnson reviewed the General Fund expense changes. There was a small increase to the Animal Services contract with Salt Lake County. She rounded the Unified Police Department contract amount up as well. She increased postage and shipping costs in the Corninunications budget for newsletters. In the Non-Departmental budget, it increased $6,500 as a contribution to Fund Balance. A position was eliminated in the Facilities budget. In the Fleet budget, an additional $35,000 was added for another pool vehicle. Johnson reviewed the Fund Balance projections and projected it at 34.82%. She said the American Recovery Act funds was received in the current fiscal year but would be considered deferred revenue to be recognized in the next fiscal year. Mayor Silvestrini said the decision to not recognize it was recommended by the City's auditor. Johnson Millcreek City Council Meeting Minutes 14 June 2021 Page 5 of 8 said it gave the Council time to decide how to spend it. There were no changes in the Capital Improvement Fund budget. The Storm Water Fund budget included costs for a camera truck at $60,000. Mayor Silvestrini asked for public comment. There was no comment. Council Member Uipi moved to approve item 3.4, Ordinance 21-22. Council Member Marchant seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously. Mayor Silvestrini mentioned that Millcreek would be shifting from using iWorQ software to Tyler Technologies for permitting in July. 3.5 Discussion and Consideration of Resolution 21-18, Acknowledging Receipt and Acceptance of the Millcreek Fiscal Year 2020-21 Fraud Risk Assessment and Direction to File it with the State Auditor Laurie Johnson said Millcreek first did the fraud risk assessment the prior fiscal year and there were not many changes since then. She said Millcreek was considered low risk. She thanked Council Member Marchant for signing the oritgoing checks. Council Member Marchant moved to approve Resolution 21-18, Acknowledging Receipt and Acceptance of the Millcreek Fiscal Year 2020-21 Fraud Risk Assessment and Direction to File it with the State Auditor. Council Member Catten seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously 4. Business Matters 4.1 Discussion and Consideration of Resolution 21-19, Approving the Name Change of 2940 East Street and 3835 South Street to McBride Drive Council Member Uipi presented a map of the affected residences that would have the street name change and a proposed notice to those residents. She requested the Council continue the resolution to the next meeting so that all the residents could be noticed of the address change. Council Member Uipi asked if the City could consider renaming the entire "U" shape of the street. Mayor Silvestrini said county code did not allow it because it would create duplicate addresses and multiple entrances to the same street. Council Member Catten moved to continue item 4.1, Resolution 21-19, to the next city council meeting. Council Member Jackson seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously. 4.2 Discussion and Consideration of Ordinance 21-23, Amending Title 2 Chapter 49 of the Mfflcreek Code of Ordinances Entitled Street Addressing and Property Identification Mayor Silvestrini said the Council had a first reading of the item. John Brems said with the amendment, the petitioner would be required to pay the street name change fees and put a notice on the petition, and the street name change would be from intersection to intersection. Millcreek City Council Meeting Minutes 14 June 2021 Page 6 of 8 Council Member Uipi moved to approve item 4.2, Ordinance 21-23, excluding McBride Drive. Council Member Jackson seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously. 4.3 Discussion and Consideration of Resolution 21-20, Approving the Execution of an Interlocal Cooperative Agreement with the City of South Salt Lake Providing for the Joint Participation in a Pavement Project for 3900 South Between the Jordan River and 700 East Mayor Silvestrini said the interlocal agreement was between South Salt Lake and Millcreek and the project had already been completed but the paperwork had not been. Council Member Jackson moved to adopt Resolution 21-20, Approving the Execution of an Interlocal Cooperative Agreement with the City of South Salt Lake Providing for the Joint Participation in a Pavement Project for 3900 South Between the Jordan River and 700 East. Council Member Catten seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously. 4.4 Discussion and Consideration of Resolution 21-21, Approving an Interlocal Agreement for Animal Services Amendment No. 4 Mayor Silvestrini said this agreement was an extension to the current agreement. There was an increase in cost to include a 2.5% cost of living adjustment. He said the rate billed was the same for all municipalities. Council Member Jackson asked if the concerns the Council had were addressed. Mayor Silvestrini said Millcreek adopted certain portions of the County's animal control ordinance prior to the County amending it. The County would still enforce what Millcreek adopted. Councn Member Catten moved to approve Resolution 21-21, Approving an Interlocal Agreement for Animal Services Amendment No. 4. Council Member Uipi seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously. 4.5 Discussion and Consideration of Resolution 21-22, Approving an Interlocal Agreement for Justice Court Services Amendment No. 1 Mayor Silvestrini said the cost for justice court services was the same rate as before. Council Member Uipi moved to approve item 4.5, Resolution 21-22. Council Member Jackson seconded. The Recorder called for the vote. All Councn Members voted yes. The motion passed unanimously. 4.6 Discussion and Consideration of Resolution 21-23, Approving the Appointment of Jeff Silvestrini to the Community Renewable Energy Board and John Brems as an Alternative to the Community Renewable Energy Board Mayor Silvestrini said he and John Brems were familiar with the ongoings of the program. Council Member Uipi asked why a council member was not the alternate. Mayor Silvestrini said John Brems was more familiar with it, but a council member could serve instead. Council Member Jackson said there was accountability with an elected official. She said she would serve as the alternate. Millcreek City Council Meeting Minutes 14 June 2021 Page 7 of 8 Council Member Uipi moved to approve item 4.6, Resolution 21-23, to appoint Mayor Jeff Silvestrini to the Community Renewable Energy Board with the amendment of substituting Council Member Cheri Jackson as the alternative to the Community Renewable Energy Board instead of John Brems. Council Member Catten seconded. The Recorder called for the vote. All Council Members voted yes. The motion passed unanimously 5. Reports 5.1 Mayor's Report Mayor Silvestrini said he went with two members of staff, Aimee McConkie and Mike Winder, to Lenexa, Kansas and Rapid City, South Dakota the prior week. Staff had been modeling Lenexa for Millcreek Common and went to see it in person. Lenexa has been a city since 1901 and has a population of about 50,000. Staff will be able to learn from their experiences with the council chambers, and kitchens and shops in the market space. Their city hall has a public market that serves as a food hall. He said they built their city hall too large for their needs, so they rent space to a private university. He suggested that there not be a "council chambers" in the new city hall, but a "community forum" as Lenexa had. In Rapid City, staff learned about their splash pad and ice ribbon. Staff felt the trip was invaluable in helping to plan for Millcreek Common. He also mentioned that the two Venture Outs that had taken place already had been successful. 5.2 City Council Member Reports Council Member Catten recommended expanding the 4'h of July parade. She said the coming Friday was the grand opening of the Re'fugee Justice League Resource Center. Council Member Jackson said the new Youth Council had met and assisted with Venture Out. 5.3 Staff Reports Mike Winder said the American Recovery Fund restrictions were stricter than the CARES Act funds, so staff was looking into the potential uses of the funds. Francis Lilly reported on the "International Making Cities Livable" conference he attended in Carmel, Indiana and on Carmel's city center. He learned that once their city center was complete, they had more projects continuously happening in connection to it throughout the city for decades. 6. Consent Agenda 6.1 Approval of May 24, 2021 Work Meeting and Regular Meeting Minutes Council Member Jackson moved to approve item 6.1, the meeting minutes from May 24'h. Council Member Uipi seconded. Mayor Silvestrini called for the vote. All Council Members voted yes. The motion passed unanimously. 7. New Items for Subsequent Consideration There were none. 8. Calendar of Upcoming Events * PlanningCornmissionMtg.,6/16/21,5:OOp.m.atCityHall Millcreek City Council Meeting Minutes 14 June 2021 Page 8 of 8 @ City Council Mtg., 6/28/21, 5:00 p.m. at City Hall Council Member Jackson reported that she would not be available to attend the June 28th meeting. Council Member Uipi asked if the Council had the option for a virtual meeting on June 28th because she might be enroute during that time. Elyse Sullivan told the Council that any future Council meetings held electronically would need to be noticed accordingly so she would need advanced notice. Council Member Uipi said she would confirm her availability with Sullivan. Mayor Silvestrini said the meeting could be noticed electronically and directed that it be. ADJOURNED: Council Member Uipi moved to adjourn the meeting at 9:15 p.m. Council Member Catten seconded. Mayor Silvestrini called for the vote. All Council Members voted yes. The motion passed unanimously. Jeff Silvestrini, Mayor Attest: J!ityuecoraer