PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
THURSDAY, APRIL 28, 1983
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN SPECIAL PUBLIC SESSION ON THURSDAY, APRIL 28, 1983 AT 12:00 NOON IN ROOM 211 CITY AND COUNTY BUILDING.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: PALMER DEPAULIS IONE M. DAVIS ALICE SHEARER EDWARD W. PARKER.
Council Vice Chairman Edward Parker presided at this meeting. Council Vice Chairman Edward Parker conducted this meeting.
Wally Miller, deputy city attorney, was present at the meeting.
DEPARTMENT BUSINESS
AIRPORT AUTHORITY
#1. RE: A resolution authorizing the advertisement for sale of $25,500,000 Airport Revenue Bonds, Series 1983, of Salt Lake City, Utah, including approval of an official notice of bond sale, an official bid form and a preliminary official statement of the city with respect to said bonds; describing the airport construction and expansion project for which the proceeds of the bonds will be used; setting the date, time and place for, and directing publication of a notice of, a public hearing on the issuance and sale of said bonds and said project; and related matters. The “Airport Authority Resolution” approving a construction and expansion project and recommending the issuance and sale of $25,500,000 of Airport Revenue Bonds, was presented to the Council.
Councilmember DePaulis asked if the $25,500,000 was a fixed figure. John Wheat, deputy director of airport finance and administrative services, said that was correct. Councilmember Parker asked about the concerns various airlines had in regards to the project. Mr. Wheat said that the airport is currently in negotiations for objecting airlines and alternatives have been discussed with regards to their concerns and what the airport authority and airlines feel would be fair and equitable in regards to the project. Mr. Wheat said that negotiations were well under way and although nothing had been finalized or settled the airport felt confident about the situation.
Councilmember DePaulis asked if the description of the concourse as outlined in the resolution was in order as far as the number of parking positions and the unfinished shell. Mr. Wheat said that it was and the structure is basically a 12-gate concourse but only eight gates will be finished. Councilmember Davis said that there would still be a public hearing on this issue on May 24. She asked Mr. Wheat if he could foresee any objections to this project being made at the public hearing. Mr. Wheat said that at this stage it was hard to predict. Councilmember Parker asked if any action taken at this meeting could be rescinded if the need arose. Cheryl Cook, city treasurer, said that in this meeting the Council was only approving the preliminary official statement and its distribution and the advertisement of the sale. She said that there can be, and probably will be, changes to update the statement. Councilmember DePaulis asked if the pending objections of certain airlines would be made part of the packet on the bonds. Councilmember Shearer said that the information was included in the preliminary official statement.
Councilmember DePaulis asked if the litigation would have an affect on the ability to bond the issue. Ms. Cook said that it would but the issue was currently being discussed. Albert Haines, Nick Smith and Alan Blodgett were meeting in New York with the rating agency, the insurers, and two large investment banking firms to discuss this situation in order to get a good idea of the market acceptance. Councilmember Shearer felt that there was considerable reason to believe that an agreement would be worked out so that the litigation section could be changed. Ron Ockey, bond counsel, outlined the proposed resolution. He said that a public hearing has been scheduled for the 24th of May in order to comply with the new requirements of the federal tax code.
Mr. Ockey said that in this resolution the Council was not approving either the project or the issuance of the bonds; they were merely authorizing bids to be solicited so that when the Council considers whether to go forward on the 24th of May they will know what the interest rates will be and who would be the prospective purchaser. Mr. Ockey said that the notice of public sale as outlined in the resolution would be published in the newspaper at least two weeks prior to the 24th of May. Mr. Ockey said that the resolution also approves the publication of the notice of sale in a financial journal in New York, Bond Buyer. This is a short notice stating that bids are being received and inviting interested parties to obtain a copy of the preliminary official statement, the official notice of bond sale, and the official bid form.
Mr. Ockey said that the official notice of bond sale and the bid form were also outlined in the resolution; the official notice of bond sale basically states the terms of the sale that the bidders will be required to comply with in order to submit an acceptable bid. Councilmember Davis said that the bids were being opened prior to the public hearing and asked if this is usually how it is done. Mr. Ockey said that by opening the bids before the hearing the tabulation of the bids will be available at the hearing.
Even though the bids are opened prior to the public hearing the bid will not be awarded at that time. Ms. Cook said that opening the bids prior to the hearing will give staff a chance to review the bids and if there are any irregularities there would still be time during business hours to check into any problems; also the Council is not delayed in their public hearing while the tabulation of bids is determined. Ms. Cook said that the Council Members were welcome to attend the bid opening. Mr. Ockey said that the bids would be opened publicly and announced publicly; Mr. Haines, or his designee, has been designated as the party to be responsible. At 6:00 the Council would convene for the public hearing and after that, the bids would then be presented for consideration. If the bid is awarded a resolution would then be presented authorizing the bonds to be issued.
Mr. Ockey said that 98.5% was the minimum amount that the bonds would be able to be sold at; the bidders could bid a discount of up to 1.5% and still have an acceptable bid. They will have to pay the City 98.5% of the par value of $25,500,000 in order to have a proper bid. Mr. Ockey said that the notice of sale contains a statement concerning the present objections that have been made by various airlines and reference is made to a more detailed statement found in the preliminary official statement. The resolution also contains the official bid form.
Councilmember Shearer moved and Councilmember Davis seconded to adopt Resolution 32 of 1983 authorizing the advertisement for sale of $25,500,000 Airport Revenue Bonds, Series 1983, of Salt Lake City, Utah, including approval of an official notice of bond sale, an official bid form and a preliminary official statement of the City with respect to said bonds; describing the airport construction and expansion project for which the proceeds of the bonds will be used; setting the date, time and place for, and directing publication of, a notice of a public hearing on the issuance and sale of said bonds and said project; and related matters, which motion carried, all members present voting aye. Mr. Wheat thanked the Council for taking the time to have a special meeting to consider this matter.
(Q 83-11)
CITY COUNCIL
#1. RE: Ratification of an ordinance amending Section 24-4-4 of the Revised Ordinances of Salt Lake City, Utah, 1965, adopted by the City Council on April 21, 1983, relating to meeting schedules of the Salt Lake City Council.
Councilmember Shearer moved and Councilmember Davis seconded to ratify the ordinance adopted April 21, 1983, Ordinance 22 of 1983, amending Section 24-4-4 of the Revised Ordinances of Salt Lake City, Utah, 1965, relating to meeting schedules of the Salt Lake City Council, which motion carried, all members present voting aye.
(O 83-15)
The meeting adjourned at 12:30 p.m.