Minutes of the Centerville City Council meeting held Tuesday, October 17, 2006 at 7:00 p.m. in the Centerville City Council Chambers, 250 North Main, Centerville Utah.  

MEMBERS PRESENT:

Mayor:                                    Ronald G. Russell                                              

Council Members:               Justin Y. Allen

                                                 Paul A. Cutler

                                                 Jack Dellastatious

                                                 David R. Gutke

                                                 Sherri Lyn Lindstrom

STAFF OR OTHER CITY            

OFFICIALS PRESENT:           Steve Thacker, City Manager

                                                   Blaine Lutz, Finance Director/Assistant City Manager

                                                   Lisa Romney, City Attorney

                                                    Randy Randall, Public Works Director

                                                    Von Steenblik, Detective Sergeant

                                                    Niles Bartleson, Patrol Sergeant

                                                    Jake Alexander, Police Officer

                                                    Dwight Christensen, Detective

                                                    Jason Read, Police Officer

                                                     Rob Kirkham, Police Officer

                                                     John Spencer, Patrol Sergeant

                                                     Neal Worsley, Police Chief

                                                     Gary Lister, DARE Officer

                                                     Susan Burton, Office Technician

                                                     Debbie Olsen, Office Technician

                                                     Karrie Carlson, Recording Secretary                                                            

PLEDGE OF ALLEGIANCE                       

INVOCATION                              Mayor Ronald G. Russell                          

VISITORS:                            Interested Citizens              

COMMENDATIONS AND AWARDS

              Mayor Russell presented Sergeant Von Steenblik with a plaque and dinner certificate for his twenty years of service as a Centerville City Police Sergeant.  The Mayor commended Sergeant Steenblik for his service and dedication to the city.              

OPEN SESSION               No one present wished to comment.              

CONTINUE HEARING ON HOLLY ENERGY PARTNERS PROPOSED PIPELINE PROJECT AND FRANCHISE AGREEMENT

              Mayor Russell explained that associates in his law firm represent Holly Energy Partners (HEP) and he, therefore, disclosed a potential conflict of interest regarding this matter earlier this year and has not or will not participate in the discussion or voting regarding this matter.  Mayor Pro Tem Cutler will conduct this portion of the meeting.  Mayor Russell excused himself from the Council chambers.

               Mayor Pro Tem Cutler reviewed the schedule of topics for this item on the agenda.  Steve Thacker, City Manager, explained to the Council that the City Attorney and staff are still working on revisions to the franchise agreement and will have another draft for the Council to review at a future meeting.  Mr. Thacker reviewed material and actions the City and HEP have taken to date to follow up from the previous meeting.  This list was provided in the backup material provided to the Council and the public in attendance at the meeting.  Mr. Thacker explained that the City has hired Pete McDonough, a civil engineer with extensive pipeline experience and seismic credentials.  He reviewed Mr. McDonough’s credentials with the Council.  The City received two documents from Gary Christensen of the Utah Geological Survey (UGS).  One is an email commenting on the seismic study.  The other is a letter comparing the relative risks of the Pages Lane and Lund Lane (i.e., mountainside) alignments.  The Council viewed an aerial map of Centerville showing the Pages Lane alignment as well as other alternative alignments.  Mr. Thacker reviewed the concerns of the alternative alignments as expressed by Mr. Christensen.  He also explained the City Engineer and Public Works Director have met with HEP to discuss construction plans.  These discussions are ongoing.  The City has received a letter from Philip Cook, HEP’s appraiser, regarding the impact of underground utility lines on property values.  A summary of the property values along the pipeline route has also been received by the City, prepared by Mr. Cook.  The City has also received comments (a letter) from both the Centerville City Police Chief and the South Davis Metro Fire Agency Chief with their comments on the pipeline project.  Mr. Thacker reviewed a list of recommended actions for the Council to consider regarding this matter.  Some of these recommendations included arranging a meeting with City staff, Pete McDonough and HEP to discuss design criteria for addressing the earthquake fault; determine design criteria set by regulatory agencies pertaining to earthquake faults; and to hire an appraiser to help determine fair value of an easement on City’s mountainside property and use of public right-of-way for this pipeline.

               Steve Thacker, City Manager, also reviewed a list of follow-up items HEP was to work on and address from the last meeting.  Jim Townsend, HEP, responded to questions and reported on ongoing research and discussion to date with property owners.

                At 7:50 p.m. Mayor Pro Tem Cutler opened the public hearing.

               Heather Mckenzie Campbell, 579 East Pages Lane – Ms. Campbell questioned how flammable this crude product is and how the residents will know what type of crude is flowing through the pipeline at any given time.  She also asked if boring will cause damage to existing homes.  Ms. Campbell is concerned regarding property values and air and health issues.  She also commented that many of the web pages on the HEP site are still under construction.

               John Hall, 209 West 1350 North – Mr. Hall questioned when the project would start and how business owners along Pages Lane would be affected during construction.

               Gary Brown, 641 East 850 South – Mr. Brown asked why HEP is not following an existing pipeline path to their refinery.

               Morris Jackson, 832 South 700 East – Mr. Jackson asked about the plan for boring.  He noted that there are three boring areas and wanted to know if they would be done simultaneously or separately.  He also questioned how leaks will be detected and repaired in the pipeline.

               Joyce Cushing, 1504 North 725 East, Bountiful - Ms. Cushing questioned whether home owners will need to disclose anything about the pipeline when selling their homes and how this may affect property values.

               Monica Gardner, 952 South 800 East – Ms. Gardner explained she has met twice with HEP representatives to discuss her concerns regarding the pipeline.  Despite her meetings with HEP representatives, she still has great concern with the safety of her family in the event of an earthquake or major leak.  She questioned why Bountiful is not concerned regarding their recharge zones.  Ms. Gardner also questioned why the City is concerned about locating the pipeline close to its water recharge zones if they believe the pipeline is safe.

               Holly Rechis, 827 Sunrise Circle – Ms. Reichis explained that she also has met with HEP regarding the placement of the pipeline which will be located very near her property.  She is concerned about property values to the homes in her area and the safety of her family during the construction process as well as dangers involved with an underground pipeline. Ms. Reichis urged the City to force Holly to condemn and not negotiate with HEP.

               Heather McKenzie Campbell, 579 East Pages Lane – Ms. Campbell asked about the cleanup plan in the event there is a leak in the pipeline.  She asked for information regarding exactly how many gallons of crude oil could be released in the event of a major catastrophe.

               At 8:10 p.m. the public hearing was closed.

               Mr. Townsend responded to questions raised in the open session.  He explained that the type of crude oil transported in the pipeline is not self ignitable, but will have some flammability potential.  The risk of this potential varies depending on the outside temperature.  He also stated that due to recent soil tests, HEP is not expecting any damage to homes from boring.  He said that when refineries expand, they are subject to more stringent air quality regulations.  Mr. Townsend agreed that accommodations will need to be made during the construction process to provide access into and out of the property.  He also explained web pages are in the process of being updated and will continue to be updated.  Mr. Townsend stated that HEP would like to start construction sometime in May and finish by end of summer in the urban area.  Following this timeline will help to address safety concerns regarding the school on Pages Lane.   Access to business along the pipeline corridor should not be closed.  Mr. Townsend explained that boring will be done in front of businesses and the only traffic disruption will be pipe laying on top of roadway.

                When addressing the question regarding why HEP has chosen not to use existing paths to their refinery, Mr. Townsend stated that the two pipelines currently coming into the valley are at capacity and expanding the corridor is not a viable option.  Adding to this challenge is the fact that these other pipelines do not want to transport heavier crudes.  Mr. Townsend reviewed the inspection process and requirements to monitor and maintain the pipeline.  He also explained how leaks that are deep in the ground are detected and repaired.  The proposed pipeline will consist of a ½ inch wall pipe which is in excess of current requirements and is estimated to have a life expectancy in excess of 50 years.

                Mr. Townsend also addressed the concerns that were expressed in the open meeting regarding property values.  He explained that HEP must go by past histories of properties located along other existing pipelines.  The history shows no devaluation of property in these areas. He also noted that a decrease in property value usually is a result of the property in question not being used for its highest and best use.  Nuisance problems can also be contributing factors in lower property values.  Mr. Townsend stated that this should not be the case along the Pages Lane corridor.  He added that a single-family home is to be constructed on the vacant lot to preserve the highest and best use and once pipeline construction is completed, it should not create a nuisance.

               Randy Randall, Public Works Director, explained that recharge zones are areas that have to be protected against any utility crossing.  He added that Bountiful City is also concerned about recharge zones, but explained that the Pages Lane corridor is best for both cities because it would have the least interference with recharge zones in both cities.  HEP stated that because of many comments regarding safety concerns they would be willing to look into adding additional stop valves to help address leak concerns during and after a seismic event.  Mr. Randall also explained that staff has met with the Reichis family to discuss their suggestion of another alternative route that would cross an open area along Island View Drive.  This area is a vacant area without homes.  Staff reviewed a map of the area and explained reasons this route is not the preferred route.  Staff was directed to look again at this alternative and the possibility of placing the pipeline on the other side of the vacant lot further away from the Reichis home and report back to the Council.  Mr. Randall also tried to give perspective on how much oil could be released in the event of a catastrophe.  He added that other utility supply lines (i.e., water or natural gas) should cause more concern in an earthquake event.  Mr. Randall explained that HEP is required to build the pipeline to survive in the event that there is an earthquake or other natural catastrophe.

               The Council discussed these issues and compiled a list of follow-up items that need to be addressed or researched prior to the next meeting to continue this discussion.  Staff was directed to review the traffic mitigation plan and shutoff valve locations for the November 8th meeting.  Staff and HEP also discussed the requirement of conducting inspections after any specific size seismic event.  Council also directed staff to study alternative pipeline placement in and around Sunrise Circle area.  The Council also expressed the need of ongoing communications between HEP and the residents along Pages Lane and Sunrise Circle. The Council will continue with discussions regarding the pipeline and the franchise agreement with HEP at the November 8, 2006 City Council meeting.  

              At 9:17 p.m. the Council took a ten minute break.  During the break, Mayor Russell returned to conduct the remainder of the meeting.

               REPEAL PEDDLER’S ORDINANCE – CENTERVILLE MUNICIPAL CODE, TITLE 6, CHAPTER 8 (SOLICITORS, CANVASSERS, PEDDLERS AND ITINERANT MERCHANTS) – ORDINANCE No. 2006-18A

              Mayor Russell explained that he met with the Police Chief to discuss the effect of repealing this ordinance and what needs to be done to adopt another ordinance.  Several cities are working together to draft a new ordinance for the Council to consider.  The  current ordinance is being repealed as part of a lawsuit settlement.

               Councilwoman Lindstrom made a motion to approve Ordinance No. 2006-18A repealing Chapter 8 (Solicitor, Canvassers, Peddlers and Itinerant Merchants) of Title 6 of the Centerville Municipal Code.  The motion was seconded by Councilman Gutke and passed by unanimous roll-call vote (5-0).              

QUARTERLY FINANCIAL REPORT

              Blaine Lutz, Finance Director, reviewed the quarterly financial report with the Council.  He explained that so far this fiscal year the City is doing well.  He provided the Council with several reports of the various funds for their review.  Mr. Lutz responded to questions and comments from the Council.              

SUMMARY ACTION CALENDAR

              The City staff and Mayor Russell clarified some items on the Summary Action Calendar and responded to questions from Council.

               Councilman Gutke made a motion to approve items a-c on the Summary Action Calendar.  The motion was seconded by Councilman Cutler and passed by unanimous roll-call vote (5-0).  Approved were:

a.      Bid award to L3 Communications in the amount of $18,129 for digital camera system for police cars

b.      Authorization of construction of subdrain on recently purchased park property in the amount of $30,170 by Workman Construction for labor

c.      Approval of easement for UTOPIA hub site              

MINUTES REVIEW AND ACCEPTANCE

              The minutes of the October 3, 2006 City Council meeting were reviewed.  Councilman Dellastatious made a motion to approve the minutes.  The motion was seconded by Councilman Cutler and passed by unanimous vote.

               The minutes of the October 3, 2006 City Council closed meeting were reviewed.  Councilman Dellastatious made a motion to approve the minutes.  The motion was seconded by Councilman Cutler and passed by unanimous vote.

MAYOR’S REPORT

               Mayor Russell reviewed the proposed budget for the South Davis Metro Fire Agency with the Council.

               The City has received verification that a grant application for Main Street planning was approved for $8,000.  The City Manager explained that staff is preparing a request for proposals for professional consulting services.

CITY MANAGER’S REPORT

              Steve Thacker, City Manager, updated the Council on various miscellaneous matters related to the City, some of which include: employee disaster readiness; Historic Sites Committee meeting on October 19th to discuss Whitaker Home feasibility study; possible dates for a joint City Council and Planning Commission joint work session; and an upcoming meeting with representatives of the Viewmont Ute Conference Little League Football Association regarding field usage for next year.  

MISCELLANEOUS

              Mayor Russell reported on his visit to the waste transfer facility taken prior to the City Council meeting.

               The Council was asked to give any input or suggestions to staff for the November/December newsletter.

               The Council discussed possible dates to hold an open house sometime in early 2007.  

              At 10:40 p.m. the meeting was adjourned.                                                                                 

Marilyn Holje, City Recorder                                                Date Approved      

Karrie Carlson, Recording Secretary