City Council

Minutes of the MillcreekCityCouncil May 27, 2025 5:00 p.m. Site Visits 7:00 p.m. Regular Meeting The City Council of Millcreek, Utah, met in a public work meeting and regular meeting on May 27, 2025, at City Hall, located at 1330 E. Chambers Avenue, Millcreek, UT 84106. The meeting was recorded for the City's website and had an option for online public comment. PRESENT: Council Members City Staff Jeff Silvestrini, Mayor Mike Winder, City Manager Silvia Catten, District I Elyse Sullivan, City Recorder Thom DeSirant, District 2 (electronic) Francis Lilly, Assistant City Manager Cheri Jackson, District 3 Lisa Dudley, HR-Finance Director Bev Uipi, District 4 (electronic) Kurt Hansen, Facilities Director John Brems, City Attorney Rita Lund, Coinmunications Director Carlos Estudillo, Planner Attendees: Rick Hansen, Dwight Yee, Josiah Schultz, Miles Maynes, Jason Burningham, Lt. Luis Lovato, Chief Jason Mazuran SITE VISITS - 5:00 p.m. Site Visits to the Westerly (3257 S Richmond Street) and The Richmond Apartments (1280 E Villa Vista Avenue) REGULAR MEETING - 7:00 p.m. TIME COMMENCED: 7:02 p.m. 1. Welcome, Introduction and Preliminary Matters 1.I Pledge of Allegiance Mayor Silvestrini called the meeting to order and led the pledge of allegiance. 1.2 Unified Police Department Millcreek Precinct Officer of the Month for April 2025 Lt. Lovato announced Officer Ty Tharnmavongsa as Officer of the Month for April 2025. Officer Thamrnavongsa responded to a medical emergency call and provided-lifesaving  Millcreek City Council Meeting Minutes 27 May 2025 Page 2 of 10 efforts to an unconscious individual until Unified Fire personnel arrived and took over medical care. The individual passed away, but their spouse expressed appreciation for the officer's kindness and professionalism. 1.3 Public Comment Chief Jason Mazuran thanked Millcreek for hosting the Unified Police Department awards ceremony on May 22nd Mayor Silvestrini prefaced a concern raised by Josiah Schultz via email about field space at schools that might close and disposition of the properties. The mayor said the school district would not dispose of the properties but make long term lease agreements. Schultz thanked the council and expressed a desire to maintain green space east of Wasatch Boulevard. Elyse Sullivan read a public comment received from Joh Keifer via the city's website, "In regard to Neffs Canyon debris basin project, we request public cornrnent period during the Environmental Assessment scoping period." She noted John Miller, Public Works Director, had responded to Keifer via email. Mayor Silvestrini said Mr. Keifer raised concerns regarding the proposed Debris Basin Project in collaboration with the U.S. Forest Service near Neffs Canyon. The project aiins to reduce flood risk and enhance wildfire mitigation by constructing improved - firefighting infrastmcture, including a helipad and a localized water reservoir, which would elimin-ate the need to source water from more distant lo6-ationO like Jordanelle or - - Mountain Dell Reservoirs during emergencies. The project also addresses serious floodplain challenges affecting approximately 300 homes in the Mount Olympus cornrnunity. Under FEMA regulations, these homeowners face strict limitations on property improvements and reconstruction unless they elevate structures above the mean flood level, sometimes by as much as four feet, potentially violating local height ordinances and eliminating the possibility of basements. These constraints also prevent the city from rebuilding the essential UFA Fire Station 112 on Jupiter Drive, which is the only station in the region located above the freeway system and therefore vital in a major disaster such as an earthquake. The proposed improvements would not only enhance safety but also expand parking in Neffs Canyon by about 60 spaces. More importantly, they would allow FEMA to revise the floodplain designation, freeing affected homeowners from mandatory flood insurance requirements that can cost up to $1,000 per month. This would provide significant financial relief and improve property marketability. The city has secured nearly $25 million in federal funding for the project, with strong support from the Forest Service and Unified Fire Authority. The current step is to initiate a public comment period on the environmental study, during which community feedback will be welcomed and used to help refine the project as necessary. 2. Planning Matters First Readings 2.1 ZM-25-001, Request for Rezone from the R-1-8 (Residential Single Family) to the R-M (Residential Multi-Family) Zone with a Development Agreement at Approximately 4261 S 700 E by Applicant Myles Mayne Mfflcreek City Council Meeting Minutes 27 May 2025 Page 3 of 10 Carlos Estudillo said the applicant is requesting a rezone for the property at 4261 South 700 East from R-1-8 (single-family residential) to RM (multi-family residential) to construct a four-unit residential building (fourplex). This proposal is a revised version of a similar pla-n-fir-st introduced t6-thla-nning Commission in 2022,-w-hich was continu-e-d - due to concerns about future land use compatibility. The O.34-acre property currently contains a single-family home, which would be demolished if the project is approved. The revised project includes a 35-foot-tall fourplex, accessed via 700 East, with each unit featuring a two-car garage and two additional guest parking spaces-exceeding city requirements. The site plan meets landscaping and access standards, and the applicant intends to sell the units, aligning with city housing goals for owner-occupied units. A development agreement has been proposed to ensure project adherence to design, use, and ownership ternns, including a restrictive use clause to prevent full rental conversion by a single entity. While the site falls under the "Mixed Use 1 " category in the General Plan. supporting medium to high-density residential use, staff is not recommending a future land use amendment at this time, pending a broader review of the 700 East corridor. Despite the community council and Planning Commission both recommending approval based on neighborhood compatibility and housing diversity, city staff ultimately recorninends denial of the rezone and development agreement due to the lack of a corresponding land use map amendment. Estudillo presented the proposed site plan and building elevations for the fourplex. Myles Mayne, applicant, requested the owner occupancy deed restriction requirement be removed. Mayor Silvestrini said he liked the project and did not see a reason to deny the application. He would like to see owner occupied housing. Planning staff would look at revising the 700 E and 900 E corridors in the Future Land Use map, but there was no reason to hold up a development the city would otherwise like to see because the General Plan was not in alignment yet. Estudillo said the recoinmended denial is based on the Future Land Use map designation. Council Member Catten wondered to what end a denial would be at this point if it would be approved in the future. Council Member Jackson felt it would be punitive. Council Members Uipi and DeSirant echoed the sentiments. Francis Lilly requested direction on the deed restriction. Mayor Silvestrini said he was fine with removing the deed restriction if the CC&Rs limited occupancy to owners. John Brems noted the city could not enforce the CC&Rs, that was up to the residents of the development, but the deed restriction could be shortened. The mayor requested the applicant to work with staff on the restriction. 2.2 ZM-25-003, Request for an Amendment to a Development Agreement at Approximately 3956-3960 S 300 E by Applicant Dwight Yee Carlos Estudillo said the applicant is seeking an amendment to the existing development agreement to replace a previously approved playground, originally about 1,000 square feet in size, with a 675-square-foot pavilion or gazebo. This change arose during the design phase of their conditional use permit application. The proposed pavilion would include picnic tables, benches, a grill, and a trash receptacle, aligning with the recreational amenity standards outlined in the residential multi-family zoning code. The amendment would update the agreement to reflect this new amenity, which remains Millcreek City Council Meeting Minutes 27May2025 Page4ofl0 within the allowable recreational options for the zone. Staff recotnrnends approval of the amendment.to permit this change. Mayor Silvestrini asked why the playground was being replaced with a pavilion. Dwight Yee, representing the owner, said the pavilion was a more flexible space for a variety of residents and there was a concern about playground maintenance. He felt the larger green space could be used as a play place for kids. 3. Financial Matters 3.1 Public Hearing to Consider Amending the Fiscal Year 2024-2025 General Fund Budget Council Member Jackson moved to open the public hearing. Council Member Catten seconded. Mayor Silvestrini called for the vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Council Member Jackson voted yes, Council Member Uipi voted yes, and Mayor Snvestrini voted yes. The motion passed unanim<i usly Lisa Dudley said at the last meeting, the City Council approved only the departmental line item changes, despite all proposed amendments already presented to the Council and included in their meeting packets being available to the public. One key amendment - involved the General Fund, where the city sought to recognize additional administrative fees from the community reinvestment areas based on actual tax increment revenue from three activeproject areas. These fees represent reimbursement for managing the CRA - --- budget. Additional revenue was also recognized from foundation sponsorships, which are transferred to the General Fund, where the associated activities occur. In the capital - project funds, updates reflect year:to-date interest and collections in Fund 450 (CIP), as well as a contribution from Rocky Mountain Power and higher-than-anticipated interest earnings in Fund 451 (Millcreek Common Phase II). A $100,000 correction was made to reflect a grant award previously misreported as $2.4 million when it is actually $2.5 million. The amendment also includes bringing in the current cash balance firom the Park Impact Fee Fund to ensure timely use of the funds. Lastly, the stormwater fund amendments primarily account for higher-than-budgeted interest revenue and reclassify utility billing contracted services with Rocky Mountain Power into a distinct budget line for better tracking. There was no public comment. Council Member Jackson moved to close the public hearing. Coiuicil Member Catten seconded. Mayor Silvestrini called for the vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Councn Member Jackson voted yes, Councn Member Uipi voted yes, and Mayor Silvestrini voted yes. The motion passed unanimously 3.2 Discussion and Consideration of Ordinance 25-18, Amending the 2024-25 Fiscal Year Budget Council Member Jackson moved to adopt Ordinance 25-18, Amending the 2024-25 Fiscal Year Budget as presented. Council Member Catten seconded. The Recorder called for the Mnlcreek City Council Meeting Minutes 27 May 2025 Page 5 of 10 vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Council Member Jackson voted yes, Council Member Uipi voted yes, and Mayor Silvestrini voted yes. The motion passed-unanimously. 3.3 Discussion and Consideration of Resolution 25-19, A Resolution Of The City Council Of Mfflcreek, Utah (T he "City55), Authorizing And Approving The Form Of An Interlocal Sales Tax Pledge Agreement And The Issuance Of The City Obligation (As Defined Herein) Created Thereunder; Fixing The Maximum Aggregate Principal Amount Of The City Obligation, The Maximum Number Of Years Over Which The City Obligation May Mature, And The Maximum Interest Rate Which The City Obligation May Bear And The Maximum Discount From Par At Which The City Obligation May Be Sold; Providing For The Publication Of A Notice Of Public Hearing And Bonds To Be Issued; Providing For The Running Of A Contest Period And Setting Of A Public Hearing Date; Authorizing A Supplemental Indenture And Other Documents Required In Connection Therewith; Acknowledging The Issuance And Sale By The Mfflcreek Community Reinvestment Agency, Utah Of Sales Tax And Tax Increment Revenue Bonds, Series 2025; And Authorizing The Taking Of All Other Actions Necessary To The Consummation Of The Transactions Contemplated By This Resolution; And Related Matters Mayor Silvestrini said the parameters resolution sets the maximum allowable terms under which the city would issue bonds, such as the total bond amount, maximum interest rate, and other legally required conditions, prior to fonnally entering the bond market. The purpose of issuing these bonds is to finance a parking structure that will support a new mixed-use development on the east side of Millcreek Common. The proposed project includes a hotel, retail space, and owner-occupied condominiums, helping to meet community needs and support economic development. Revenue from leasing the parking structure to the hotel and condo residents is expected to cover the bond repayment, minimizing financial risk to taxpayers. The hotel is anticipated to generate transient room tax and additional sales tax revenue for the city, while also meeting an identified local demand-particularly from hospital visitors and potential federal developments, such as a veteran's outpatient clinic. While the parameters resolution does not finalize the issuance of bonds, it outlines the city's intent and conditions. A final decision will be made after Millcreek representatives meet with credit rating agencies in San Francisco this July to deteri'nine the city's bond rating, which will influence borrowing costs. Millcreek has previously achieved a strong AA+ bond rating, just below the highest possible AAA rating, and hopes to match or exceed that rating for this project. Jason Burningham said unlike the city's previous bonds issued in 2019 and 2021- backed by sales tax and issued directly by the City-this bond will be issued by the Community Reinvestment Agency (CRA), as the project lies within the Millcreek Center project area and generates tax increment. Issuing through the CRA allows for greater flexibility in pursuing public-private partnerships and enables the entire project to qualify as tax-exempt, resulting in a lower interest rate. The resolution outlines maximum bond parameters: a not-to-exceed amount of $25 million, a maximum term of 32 years, an interest rate cap of 7% (though the anticipated tax-exempt rate is under 5%), and a minimum bond price of 98% of par. In addition, the city council is being asked to authorize an interlocal sales tax pledge agreement to back the bonds, continuing the same approach used in 2019 and 2021. The resolution also sets a public hearing for June 23 to Millcreek City Council Meeting Minutes 27 May 2025 Page 6 of 10 receive public input on tlie sales tax pledge. Should market conditions shift unfavorably, the city retains the option to withdraw the issuance. A parallel resolution with the same parameters will be adopted during the CRA meeting, as both entities must act jointly for the bond issuance to proceed. Council Member Jackson moved to adopt Resolution 25-19, A Resolution Of The City Council Of Millcreek, Utah (The "City'5), Authorizing And Approving The Form Of An Interlocal Sales Tax Pledge Agreement And The Issuance Of The City Obligation (As Defined Herein) Created Thereunder; Fixing The Maximum Aggregate Principal Amount Of The City Obligation, The Maximum Number Of Years Over Which The City Obligation May Mahire, And The Maximum Interest Rate Which The City Obligation May Bear And The Maximum Discount From Par At Which The City Obligation May Be Sold; Providing For The Publication Of A Notice Of Public Hearing And Bonds To Be Issued; Providing For The Running Of A Contest Period And Setting Of A Public Hearing Date; Authorizing A Supplemental Indenture And Other Documents Required In Connection Therewith; Ar'knoivlcdging Tlie Issuance And Sale By The Millcreek ('nmmnnity Rpinvcstmciit Agency, Utah Of Sales Tax And Tax Increment Revenue Bonds, Series 2025; And Authorizing Th-e Taking Of All Other Actions Necessary To The Consummation Of The Transactions Contemplated By This Resolution; And Related Matters. Council Member Catten seconded. The Recorder called for the vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Council Member Jackson voted yes, Council Member Uipi voted yes, and Mayor Silvestrini voted yes. The motion passed unanimously. 3.4 Fiscal Year 2025-2026 Budget Discussion Lisa Dudley reviewed changes to the tentative budget since the council's May 12'h meeting.-The proposed changes to the General Fund budget primarily reflect the transfer of anticipated bond-related revenues and expenditures from the General Fund to the Community Reinvestment Agency (CRA), following the decision for the CRA to issue the bonds instead of the city. Additionally, there are a few minor adjustments, including an increase in a Salt Lake County grant for the Promise Program-from $94,500 to $104,500-as previously noted. On the expenditure side, aside from removing the bond- related items, a new allocation of $125,000 has been added to the tentative budget for a potential legacy project, pending City Council approval. Mayor Silvestrini noted the legacy project would be for the city's 10 year anniversary. Mike Winder said the Promise Program department was requesting a part time staff member for about $25,000 a year. Council Member Uipi asked if there were other part time staff requests. Mayor Silvestrini said not part time, there were requests for fulltime staff. Dudley said there were three full time positions requests; a purchasing agent and a shared position between plaru'iing and building funded through the General Fund, and a GIS position which will be funded through the Stormwater Fund. Dudley reviewed the CRA changes. As a result of moving certain transactions from the General Fund to other funds, the Millcreek Center Community Reinvestment Area will now house the debt and receive the proceeds from the upcoming bond issuance. Under the parameters resolution, the Community Reinvestment Agency will issue the bonds and then transfer the proceeds to the capital projects fund, where all construction-related expenditures will occur. This shift ensures tliat the capital projects fund receives funding Millcreek City Council Meeting Minutes 27 May 2025 Page 7 of 10 directly from the CRA rather than through a General Fund transfer. Overall, there is no net change to the capital projects fund-only a change in the source of the incoming funds. Dudley reported on CRA interfund loans. The city has outstanding interfund debt owed by the Millcreek Center Cominunity Reinvestment Area to the West Millcreek project area, resulting from cash flow support provided before tax increment began to generate. While state law allows such interfund loans, it requires formal documentation, including specific terms, repayment schedules, and interest rates. The loans must be approved by the governing body (in this case, the CRA Board) and caru'iot exceed 10 years in duration. Historically, some of these transactions were not forinally recorded, particularly from fiscal years 2020 through 2024, though they appear in the city's financial records. To address this, a forinal loan schedule is being proposed using the PTIF (Public Treasurers' hivestment Fund) average interest rates for each fiscal year. Several interfund loan schedules are being created to reflect past support and to ensure compliance with state code going forward. The intent is to clean up the records before the audit for the fiscal year ending June 30, 2025, by officially documenting all outstanding loans, setting repayment terms, and initiating payments using current tax increment revenue generated by the Millcreek Center project area. Mayor Silvestrini asked about making annual payments. Winder said this way was better for internal accounting. There will be a point where the Millcreek Center project area generates enough increment on its own that it no longer needs to borrow any from the West Millcreek project area to pay for the Millcreek Common bond and will start paying it back to West Millcreek. Dudley said interest payments are required and appropriate, as the funds must be used within the project areas and would have otherwise earned interest in the PTIF. In addition to the major loan between West Millcreek and the Millcreek Center, smaller loans were also issued: one to Woodland Avenue for professional services in fiscal year 2024, and another to the Olympus Hills for similar services. These loans, along with any potential new ones, are being tracked to ensure they stay within the 10-year repayi'nent window required by law. The current year's budget amendments already include the repayment schedules and any anticipated new debt, and a more formal ordinance with detailed exhibits will be presented at the next meeting for adoption. This discussion was intended to provide clarity and transparency ahead of that action. 4. Business Matters 4.1 Discussion and Consideration of Resolution 25-20, Approving a Grant Award Contract with the State of Utah Division of Outdoor Recreation for Funding Pursuant to the Utah Outdoor Recreation Grant Mayor Silvestrini said the resolution authorizes the city to formally accept a $1 million grant award from the State of Utah's Division of Outdoor Recreation, awarded through its recreation grant program for Millcreek Common Phase II. This resolution approves the grant agreement, enabling the city to receive and utilize the funds in support of the project. The award is part of a broader funding strategy that includes multiple grants. The successful application was a collaborative effort, with key contributions from Grants Millcreek City Council Meeting Minutes 27 May 2025 Page 8 of 10 Manager Kristopher Land, who managed the application process and coordinated scheduling to accommodate a presentation by staff to the grant review committee. Council Member Jackson moved to adopt Resolution 25-20, Approving a Grant Award Contract with the State of Utah Division of Outdoor Recreation for Funding Pursuant to the Utah Outdoor Recreation Grant. Council Member Catten seconded. The Recorder called for the vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Council Member Jackson voted yes, Council Member Uipi voted yes, and Mayor Silvestrini voted yes. The motion passed unanimously. 5. Reports 5.1 Mayor's Report Mayor Silvestrini reported he and staff will meet with the governor to discuss housing efforts, responding to concerns raised in recent news about some cities not meeting housing goals. Millcreek has a positive story to share, with a population increase of nearly 1,400 residents over the past year, driven by new housing developments in areas like west Millcreek and the city center, including both multifamily and owner-occupied starter homes. Despite high land values affecting affordability, the city continues to support housing growth and has prioritized these efforts to maintain eligibility for state grants, including transportation and recreation funding. The mayor thanked Francis Lilly for compiling a comprehensive housing report that will be shared with the council. Lastly, the mayor mentioned upcoming community engagement around the Neffs Canyon project and shared a lighter note about a recent outing of the department heads. 5.2 City Councn Member Reports Council Member Catten reported a playground was being installed at Big Cottonwood Park and would be completed by the end of June. Council Member Uipi attended a school district meeting regarding potential elementary school closures. She would like the council to consider potential funding of a feasibility study for a new school district to be earmarked in the budget should the movement go forward. Mayor Silvestrini said a new state statute went into effect on May 7'h which changed the process for splitting the Granite School District. Previously, a petition required approval by all district residents, but now a petition needs only 10% of registered voters within the proposed new district area, with the subsequent vote held solely by those voters. This change alleviates concerns about winning support from the larger district's west side. If the coinrnunities of South Salt Lake, Millcreek, Holladay, and parts of Murray and Emigration Canyon choose to pursue this, the funding for a feasibility study would likely be shared, making the financial impact manageable through a budget amendment. He emphasized the importance of hearing support from residents citywide, including those on the west side who would be affected. Ultimately, for him to support moving forward, broad community backing and cooperation from all involved municipalities will be necessary. It is also iinportant to recognize that this effort can proceed via citizen petition without city council approval, and successful grassroots organizing will be critical to advance the initiative. Council Member Jackson noted she attended the crossing guard appreciation luncheon. Millcreek City Council Meeting Minutes 27 May 2025 Page 9 of 10 5.3 Treasurer's Report Council Member Jackson reported as of May 27, 2025, the operating account has $1,456,040 and tlie state PTIF account has $38,499,-1-72,for a total amount of shared cash -of $39,955,212. For general revenue -sources colle-ct-ed,-tE6-6ity has received $11,895-,870 of property taxes, which is 99.87% of the estiinated revenues for this year. The city is likely to meet the budget amount of general sales tax revenue, which is eight months revenue because there is lag time in receiving the sales tax from previous months. The city has received $10,091,289, 66%. The city has received $1,082,642 for building permits and is likely to meet budget on that. The total General Fund revenues amounted to $33,560,827. For the expenses for the month of April, the city wrote 208 checks for the amount of $2,591,281, had 12 bank drafts for the amount of $225,414, and two payroll periods in the amount of $348,582. 5.4 Staff Reports Winder said constituents wondered what would happen to vacant school sites if they were closed. He said state law does give cities the right of first refusal if the school district ever decides to do anything else with that land, but they typically set up long term lease - agreements. Mayor Silvestrini relayed an example of UPD renting a school to house various units, and The Utah International Charter School was leasing the old Millcreek Elementai7 School. 5.5 Unified Police Department Report Lt. Lovato gave the crime statistics from April 2025. There were 2,457 calls for service, - 793 new police reports, 361 -citations, and 23 booking arrests. Millcreek has one vacancy. The response times for priority one calls were 9 minutes, priority two 6 minutes, and priority three 13 minutes. He provided statistics from the different units. There were 23 assaults, 18 burglaries, 19 drug offenses, 70 family offenses, 10 frauds, 58 larcenies, 1 robbery, 4 sex offenses, and 12 stolen vehicles. Millcreek detectives were assigned 47 cases and 5 were submitted for charges. There were 17 transient related calls and 47 mental health calls. He noted that four Millcreek officers did well in sergeant testing. 6. New Items for Subsequent Consideration There were none. 7. Calendar of Upcoming Meetings * Mt. Olympus Community Council Mtg., 6/2/25, 6:00 p.m. * Millcreek Comi'nunity Council Mtg., 6/3/25, 6:30 p.m. * Canyon Rim Citizens Association Mtg., 6/4/25, 7:00 p.m. * East Mill Creek Community Council Mtg., 6/5/25, 6:30 p.m. * City Council Mtg. 6/9/25 7:00 p.m. Council Member Jackson moved to go into closed session per Utah Code 52-4-205 (c) strategy sessions to discuss pending or reasonably imminent litigation and (a) discussion of the character, professional competence, or physical or mental health of an individual at 9:15 p.m. Council Member Catten seconded. The Recorder called for the vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Council Member Jackson Millcreek City Council Meeting Minutes 27 May 2025 Page 10 of 10 voted yes, Council Member Uipi voted yes, and Mayor Silvestrini voted yes. The motion passed unanimously Council Member Jackson moved to come out of closed session at 9:35 p.m. Council - Member Catten seconded. Mayor Silvestrini called for the vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Council Member Jackson voted y6*-, Councn Member Uipi voted yes, and Mayor Silvestrini voted yes. The motion passed unanimously. ADJOURNED: Council Member Jackson moved to adjourn themeeting at 9:35 p.m. Council Member Catten seconded. Mayor Silvestrini called for the vote. Council Member Catten voted yes, Council Member DeSirant voted yes, Council Member Jackson voted yes, Council Member Uipi voted yes, and Mayor Silvestrini voted yes. The motion passed unanimously ,ypgov.nn:b Jeff Silve;ffni, Mayor natee5"-?-!()2-"y= Attest: - -- ElLan, City Recorder I -