PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
TUESDAY, APRIL 5, 1983
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET AS A COMMITTEE OF THE WHOLE ON TUESDAY, APRIL 5, 1983, AT 5:00 P.M. IN ROOM 211 CITY AND COUNTY BUILDING.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: RONALD J. WHITEHEAD ALICE SHEARER GRANT MABEY IONE M. DAVIS SYDNEY R. FONNESBECK EDWARD W. PARKER PALMER DEPAULIS.
Council Chairman Grant Mabey presided at and conducted this meeting.
POLICY SESSION
Leigh von der Esch briefed the Council on items appearing on their agenda and on upcoming events. Mr. and Mrs. Boh Huc Chung addressed the Council. They own a small grocery store near Washington Elementary School. They have installed a video game machine, but have been told by the licensing department that due to their store’s proximity to the school (749 feet) they must remove the machine. Mr. and Mrs. Chung wanted to keep the machine because (1) it generates enough revenue to make their business viable (2) it attracts people to the store thereby serving to protect the business from robbery (3) they claim it is a benefit to the neighborhood as it provides recreation for area children.
They want the ordinance amended to allow for either a different distance requirement, a different measuring method, or a requirement that the game not be used by school children during school hours. Mr. and Mrs. Chung presented a petition to the Council signed by area residents which indicates neighborhood support for retention of the machine. The Council directed staff to research the question of distance requirements in the video game machine ordinance and in the liquor laws.
The policy session adjourned at 5:55 p.m.
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN REGULAR SESSION ON TUESDAY, APRIL 5, 1983, AT 6:00 P.M. IN ROOM 301 CITY AND COUNTY BUILDING.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: RONALD J. WHITEHEAD ALICE SHEARER GRANT MABEY IONE M. DAVIS SYDNEY R. FONNESBECK EDWARD W. PARKER PALMER DEPAULIS.
Mayor Ted Wilson, Albert Haines, Chief Administrative Officer, and Roger Cutler, City Attorney, were present at the meeting.
Council Chairman Grant Mabey presided at this meeting.
Councilmember Ione Davis conducted this meeting.
Invocation was given by Police Chaplain Kent Goble.
Pledge of Allegiance.
Approval of Minutes:
Councilmember Shearer moved and Councilmember Whitehead seconded to approve the minutes of the regular meeting of the Salt Lake City Council for the meeting held Tuesday, March 15, 1983, which motion carried, all members voting aye.
(M 83-1)
Resolution of Appreciation: Councilmember Parker read and presented Resolution of Appreciation to Mero Zolintakis upon his retirement from City employment. The resolution was accepted by Mr. Zolintakis.
Councilmember Mabey moved and Councilmember Shearer seconded to approve the Resolution of Appreciation, Resolution 23 of 1983, which motion carried all members voting aye.
(R 83-6)
Special Presentation: Jay Groen, general partner of Seagull Recycling Company, recent contractors for the City’s newspaper recycling campaign spoke to the Council. Mr. Groen gave a short presentation on the background which brought about award of the contract to Seagull Recycling. He also informed the Council about the progress of the campaign after one month of operation and some short range projections. Mr. Groen presented Mayor Wilson, Jim Telebreza, director of public works, Joe Anderson, superintendent of streets, lithiographs of paintings by Henry Groeri, father of Jay Groen, in appreciation for the assistance and cooperation received on the newspaper recycling campaign.
Bid Award: Council awarded bid for Street and Storm Drain Improvements for 1300 South Street from 400 West to 200 East Streets, Project No. 38-681. Councilmember Shearer moved and Councilmember Whitehead seconded to adopt Resolution 21 of 1983, awarding bid to Gibbons and Reed Contractors for Project No. 38-681, which motion carried all members voting aye.
(Q 82-34)
DEPARTMENTAL BUSINESS
CITY COUNCIL
#1. RE: Ordinance amending Title 25 of the Revised Ordinances of Salt Lake City, Utah, 1965.
RECOMMENDATION: That the City Council approve and adopt an ordinance amending Title 25 of the Revised Ordinances by adding a new Chapter 26, to be entitled “Animal Control Advisory Board”, thereby replacing Title 1.
Councilmember Shearer moved and Councilmember Parker seconded to adopt Ordinance 17 of 1983, adding a new chapter to Title 25 of the Revised Ordinances, titled “Animal Control Advisory Board,” subject to attorney’s affirmation as to proper chapter and numbering, which motion carried, all members voting aye.
(O 82-53)
#2. RE: Proposal for amending the animal control ordinance.
RECOMMENDATION: Approve and adopt an ordinance amending Section 100-1-8 of the Revised Ordinances of Salt Lake City, Utah, 1965, by adding a new subsection (2)(d) relating to dog license fees.
Councilmember Shearer moved Councilmember Whitehead seconded to approve and adopt Ordinance 14 of 1983, adding new subsection (2)(d) to Section 100-1-8 of the Revised Ordinances, which motion carried, all members voting aye.
(O 83-8)
#3. RE: Proposal for amending the solicitation, peddling, transient merchant ordinance.
RECOMMENDATION: Consider and adopt an ordinance amending Chapter 17 of Title 20 of the Revised Ordinances of Salt Lake City, Utah, 1965, as amended, by amending Section 20-17-33, 20-17-34, 20-47-35, 20-17-36, 20-17-37, 20-17-38, and 20-17-39 and by adding thereto new Sections 20-17-40, 20-17-41 and 20-17-42, relating to solicitations, peddling and transient merchants, etc.
Councilmember Shearer said she had some amendments that she wanted to make to the ordinance before it was adopted. She briefly outlined those changes, Section F, definition of the transient merchant sponsor should include two or more participants, also she thought the Council had agreed that the single transient merchant tax was to be $200 per day rather than the $100 as stated. She also felt that sections 20-17-36 and 20-17-37 were written negatively and should be rewritten. Councilmember Shearer suggested that this item be referred to the Committee of the Whole for further discussion.
Hurley Hansen, President of the Utah Education Association, spoke against the ordinance. He said the UEA is an annual event which attracts a number of educators and exhibitors/distributors and the ordinance would impact them, he urged the Council to carefully consider the imposition of an additional license fee for people who participate in the convention.
Councilmember Shearer said the non-profit organizations that participated in the convention would not be charged the proposed tax. Richard Fredericks, Regional Manager for Industrial Shows of America, said he was opposed to this ordinance also. Councilmember Davis referred both gentlemen to the Councils Executive Director to review the proposed ordinance and invited both to the Committee of the Whole meeting. Councilmember Davis referred this item without objection to the Committee of the Whole for April 7, 1983.
(O 83-9)
DEVELOPMENT SERVICES
#1. RE: Community Development (CDBG) construction financing for the Neighborhood Housing Services (NHS) owner-built housing project.
RECOMMENDATION: That the Council approve CDBG construction financing of up to $700,000 for the NHS owner-built housing project contingent on the development of a mechanism that guarantees repayment of the CDBG loan.
AVAILABILITY OF FUNDS: All 8th year CDBG funds are currently budgeted for ongoing projects (except for contingency balances). However, a CDBG loan is possible from unexpended funds the City does not anticipate drawing down from the Department of Housing and Urban Development (HUD) during the term of the proposed loan. All funds loaned to NHS must be returned to the City with interest before the existing 8th year projects require HUD draw-downs.
DISCUSSION: Salt Lake NHS is in the midst of planning an innovative owner-built housing project. Based on a successful model in Oakland, California, the project will provide an opportunity for 18 families to work cooperatively on the construction of their own homes. Selected owner-builders must commit a substantial number of hours of labor per family per week and be able to qualify for a $35,000 (approximately) mortgage loan.
NHS is in the process of designing the single family dwellings which are to be constructed on property purchased at 1000 Navajo street by the redevelopment agency with 7th year CDBG land write-down funds. NHS will serve as the sponsor and developer of the project, and will act on behalf of the owner-builders in buying materials, obtaining building permits and hiring necessary sub-contracts. A construction loan interest rate of 7 percent was used in calculating total costs; however, the Council may adjust the loan rate at their discretion. The construction cost figures are estimates, so the liberal loan figure of $700,000 will likely be adjusted when cost estimates are refined.
Conventional lenders have informed NHS that construction funds can be borrowed at the current prime rate (11 1/2 percent) plus 2 percent, plus a 2 percent loan origination fee. These costs, of course are passed on to the buyer. NHS’s basis for requesting CDBG construction financing is that the loan savings of approximately 7 1/2 percent will be passed on to the buyer, making it easier for moderate income families to qualify for a mortgage loan. The development services department strongly recommends that the Council only approve this request conditional upon the development of a mechanism that guarantees the loan or removes all risk from the City. As mentioned above all CDBG funds are currently budgeted for ongoing projects, if NHS failed to repay the loan, existing CDBG projects would have to be terminated. Construction loan interest earned by the City must be considered CDBG program income and can be appropriated by the Council for eligible CDBG projects or activities. Councilmember Davis referred this item without objection to the Committee of the Whole for April 7, 1983.
(T 83-6)
#2. RE: Interlocal cooperation agreement between Salt Lake City and Salt Lake County for jointly funded CDBG projects.
RECOMMENDATION: That the City Council approve and adopt a resolution authorizing the Mayor to sign an Interlocal Cooperation Agreement between Salt Lake City and Salt Lake County for jointly funded CDBG projects.
DISCUSSION: The agreement is necessary for Salt Lake County to reimburse the City for its’ share of agreed upon expenses relating to five CDBG projects. 1. Northwest Multi-Purpose Center Expansion (4th Year CDBG) 2. Hansen Planetarium Elevator (5th year CDBG) 3. Central City Community Center Expansion (5th year CDBG) 4. Northwest Multi-Purpose Center Expansion (6th year CDBG) 5. Tenth East Senior Citizens Center (7th year CDBG) The projects mentioned above have been administered by the City and are now complete. Upon passage of the proposed resolution and execution of the interlocal cooperation agreement by the Mayor, a billing will be submitted to the Salt Lake County community development division for reimbursement. Councilmember Davis referred this item without objection to the consent agenda for April 12, 1983.
(C 83-103)
FINANCE AND ADMINISTRATION
#1. RE: Industrial Revenue Bond application and UDAG application from Select Telephone Technologies for $10,000,000 and $4,500,000 respectively.
RECOMMENDATION: That the Council hold public hearings for the purpose and consideration of the approval of an Inducement Resolution for issuance of Industrial Revenue Bonds not to exceed $10,000,000 and approval of an application to the U.S. Department of Housing and Urban Development for an Urban Development Action Grant not to exceed $4.5 million, subject to the following conditions: 1. That the City Attorney approve the resolutions as to form. 2. That the applications meet all necessary financial requirements of the city. 3. That Select Telephone Technologies pay the established non-refundable fee for processing.
DISCUSSION: The applicant proposes to use the funds from an issuance of Industrial Revenue Bonds and a UDAG approval to finance the acquisition, equipping and improvement of existing buildings totaling approximately 315,000 square feet and related property consisting of approximately 28 acres and improvements located thereon at approximately 3880 West 1820 South, Salt Lake City. Due to the nature of the application and project, Salt Lake City personnel should be involved and/or updated on a regular basis as the financing proceeds, if the applications are approved. Councilmember Davis set public hearings, without objection, for Tuesday, April 12, 1983 at 6:00 p.m. and for Tuesday, April 19, 1983 at 6:00 p.m. to consider this request.
(Q 83-8)
OFFICE OF THE MAYOR
#1. RE: Art Design Board.
RECOMMENDATION: That the City Council consider and approve the appointment of Kazuo Matsubayashi to the Art Design Board.
DISCUSSION: There is presently a vacancy on the Art Design Board caused by the resignation of Ronald Clayton. It is the Mayor’s recommendation that Kazuo Matsubayashi be appointed to fill this vacancy. Mr. Matsubayashi’s resume and financial disclosure statement have been presented to the Council for consideration. Councilmember Davis referred this item without objection to the consent agenda for April 12, 1983.
(I 83-9)
#2. RE: Board of Adjustment.
RECOMMENDATION: That the City Council consider and approve the reappointment of Robert Lewis to the Board of Adjustment.
DISCUSSION: The term of Robert Lewis has expired on the Board of Adjustment. He was appointed to fill the unexpired term of Herman Hogensen. It is the Mayor’s recommendation that Mr. Lewis be reappointed for another five-year term. Mr. Lewis’ financial disclosure statement is on file in the recorder’s office. Councilmember Davis referred this item without objection to the consent agenda for April 12, 1983.
(I 83-10)
#3. RE: Metropolitan Water District.
RECOMMENDATION: That the City Council reappoint Charles W. Wilson as Director of the Board of the Metropolitan Water District of Salt Lake City.
DISCUSSION: Mr. Wilson was appointed in July of 1980 to fill the unexpired term of Walker Kennedy. That term now terminates on May 15, 1983. The statute provides that he shall continue as a director until reappointed or replaced. During Mr. Wilson’s three years on the Water District Board he has made an outstanding unselfish contribution to this District’s excellent operation. The new term of office should be for a six year period or until May 15, 1989. Councilmember Davis referred this item without objection to the consent agenda for April 12, 1983.
(I 83-11)
PUBLIC UTILITIES
#1. RE: Amendment to Chapter 6 of Title 49 of the Revised Ordinances of Salt Lake City, Utah, 1965, relating to culinary water.
RECOMMENDATION: That the City Council approve the proposed ordinance amending Section 49-6-55 of the Revised Ordinances, relating to payments required before water is turned on.
DISCUSSION: As a result of the recent performance audit of the customer service division of the Department of Public Utilities, it was recommended that the turn-on fee for water turn-ons be increased from $10 to $21 in order to recover the actual costs incurred to discontinue water service and restore it due to nonpayment.
Councilmember Shearer moved and Councilmember Whitehead seconded to adopt Ordinance 15 of 1983, amending Section 49-6-55 of the Revised Ordinances relative to payments required before water is turned on, which motion carried, all members voting aye.
(O 83-10)
#2. RE: Closure of City Creek Canyon for general public access and establish reservation and fee system for canyon use.
RECOMMENDATION: That the City Council adopt an ordinance (Section 49-4-13 and Section 49-4-14) restricting the use of City Creek Canyon and establish a fee system for reservation of canyon facilities.
DISCUSSION: In a letter dated June 24, 1982, addressed to Mayor Wilson, Utah State Senator Richard J. Carling called attention to the violence which has been experienced in City Creek Canyon and proposed limiting access to the canyon. This request was reviewed by the department of public utilities and in light of our experience in the canyon we concurred with the suggestion to better control the canyon. We believe that the best method to restrict canyon use is by requiring reservations and charging a fee for access. This recommendation is based on the following:
Canyon use. It is estimated that over the last five years canyon use has more than doubled. This increase is attributed to the closeness of this recreational area to the large population centered along the Wasatch Front and to high energy costs necessary to travel to more remote recreation areas. Another factor contributing to the increased use in City Creek is that most of the City and county parks and forest service facilities charge a fee for use; thus, City Creek Canyon provides free recreational opportunities which in turn, encourages more people to use this canyon.
Traffic Loading. With the increased use of the canyon there has been a corresponding increase in traffic on the narrow road creating accidents and numerous near-accidents. The road is not designed for heavy traffic or vehicles that exceed the posted speed limit.
Violence and vandalism. The number of violent incidences has increased, mainly related to drinking within the canyon. Over the past several years City police have forced beer drinking out of the City parks and the county sheriff’s department has patrolled the other major canyons to keep down the number of beer busts and large parties. According to a City police memorandum other problems exist in the canyon such as voyeurs, arson and drug activities.
The following items are included in the overall plan to close the canyon for general use and required reservation for entrance. 1. That the entire canyon require reservations similar to that required at the present time above the treatment plant facility. This will require one additional six-month employee in the public utilities department to answer phones, log reservations and collect fees and one additional employee to man the lower gate. The upper gate will stay in place as we still want to tightly control the canyon above the plant intake to protect water quality. 2. That the number of persons allowed in the canyon be reduced to a level consistent with available facilities.
3. That a fee be established for users within the canyon as follows: large pavilion, $30; small pavilion, $15; large picnic area, $10; regular picnic area, $5 and small picnic area, $2.50. These fees were recommended to the public utilities advisory committee and approved by the 1982-83 fiscal year for the area above the treatment plant, however, it is recommended that they now be applied to all facilities within the canyon. 4. That the effective date for canyon reservations and fee ordinance be May 1, 1983. Ms. Bernice Cook asked if the canyon was to be closed to vehicular traffic how were people to enter if they wanted to use the canyon picnic facilities.
Councilmember Davis said that the parks department would handle the reservation list which would be provided to a guard at a gate who would allow access to those on the list. Ms. Cook said that the older people were having to pay so much now for the use of picnic facilities and the fees were getting out of reason. Councilmember Fonnesbeck said that it was the policy of the Council to charge those who use the facilities rather than tax everyone including those who do not use the facilities. Mayor Wilson said that anyone can use the boweries and picnic tables in the parks without a reservation and without paying a fee as long at these facilities are not in use or have not been reserved for use. Mayor Wilson also said that the fee was for reservation service only, however this was not the case in City Creek Canyon where the main purpose was to control vehicular traffic. Also it was the senior citizens who were the victims of harassment, and by closing the canyon it will afford some security to these people through the screening process of the reservations.
Councilmember Whitehead moved and Councilmember Mabey seconded to adopt Ordinance 16 of 1983, closing City Creek Canyon to vehicular traffic and setting a reservation system, which motion carried, all members voting aye.
(O 83-11)
#3. RE: Fifth South Reservoir Landscaping Project.
RECOMMENDATION: That the City Council approve the proposed resolution authorizing the execution of an interlocal cooperative agreement between Salt Lake City Corporation and the University of Utah.
AVAILABILITY OF FUNDS: We have budgeted $14,000 in the 1983/84 Department of Public Utilities’ budget to cover the cost of this project.
DISCUSSION: The only portion of City-owned property bordering the University of Utah which has not been landscaped is the south side of the City’s 500 South reservoir bordering on 500 South. The University of Utah has agreed, through the proposed interlocal agreement, to maintain the landscaping on all of the City’s property at this reservoir site after the proposed landscaping has been completed. The agreement provides for the University to furnish the landscaping plans, subject to City approval, and the City will pay the actual costs of the landscaping up to a maximum of $14,000. This will improve the appearance of the area which is in close proximity to the Guardsman Way entrance to the University of Utah.
Councilmember Shearer moved and Councilmember Whitehead seconded the motion to approve Resolution 22 of 1983, authorizing the execution of an interlocal cooperation agreement between Salt Lake City Corporation and University of Utah, which motion carried, all members voting aye.
(C 83-79)
PUBLIC WORKS
#1. RE: Amendment to Parking Ordinance.
RECOMMENDATION: That City Council approve the proposed ordinance amending Article 8, Section 130(1) of the Salt Lake City Traffic Code.
DISCUSSION: The recommendation represents a clarification of the parking ordinance pertaining to traffic medians. This will allow the City to improve enforcement of streets where wide traffic medians are used for parking vehicles, such as 600 East Street. Councilmember Davis referred this item without objection to the consent agenda for April 12, 1983.
(O 83-14)
#2. RE: Amendment to Salt Lake City Council District Map No. 24871.
RECOMMENDATION: That the City Council approve the proposed resolution authorizing a correction of the Salt Lake City Council District boundaries.
DISCUSSION: The City Recorder has found a discrepancy on Salt Lake City Council District Map No. 24871, adopted by Council action on May 11, 1982. Two changes are proposed. The first change is in an area between 16th and 17th South on Roosevelt Avenue. The second change is on Military Drive. Both of these changes are required in order to provide clarity in defining voting districts and, therefore, accurately describe Council districts. The City Attorney has reviewed these proposed changes and has prepared the proposed resolution. Councilmember Davis referred this item without objection to the consent agenda for April 12, 1983.
(R 82-12
#3. RE: Notice of intention for alley refuse collection special service district in Federal Heights and Douglas Street area.
RECOMMENDATION: That the City Council adopt notice of intention and authorize the City to proceed with advertising of the notice of intention in accordance with the proposed schedule.
AVAILABILITY OF FUNDS: General fund $10,800 (299 homes at $3.01 per month) property owner assessments $16,470 (approximate).
DISCUSSION: Alley refuse collection in the Federal Heights and Douglas Street area is comprised of 19 alleys and 299 residential homes. The project will consist of providing a special refuse collection service for these residents. It is our intent to bid the project to private refuse collection services as they are already capable of handling this special service. A preliminary bid has shown that private service could be done at less expense compared to the City purchasing the special equipment and hiring extra personnel. If the project is approved, service could begin within the next four to six months. Councilmember Davis referred this item without objection to the Public Improvement Committee meeting on April 14, 1983.
(Q 83-7)
PUBLIC HEARINGS
Special Improvement District No. 40-R-5.
RE: Protest hearing to receive protests regarding the creation of Special Improvement District No. 40-R-5. This is a special assessment improvement district for miscellaneous curb, gutter, sidewalk, and driveway improvements on certain streets throughout Salt Lake City.
A public hearing was held before the Salt Lake City Council at 6:00 p.m. to discuss this issue. Jerry Lyons of the engineering department outlined the areas involved in the proposed special improvement district. The “target area” is located between 400 East to 700 East and from 400 South to approximately 4th Avenue, and contains mostly commercial property, with some residential. The second portion is a non-contiguous section which contains property throughout the City and consist basically of requests, received from people wanting to have their sidewalks and curbs and gutters replaced. The third area is St. Mary’s. Those three districts constitutes the special improvement district.
Mr. Lyons said that the percent of protests for the entire district is 4.9 percent. In the target area the percentage of protests was 4.4 percent. Many property owners called his office and verbally gave their support for the project. Councilmember Shearer asked if a survey of each individual’s property was performed or if every single block would be replaced. Mr. Lyons said that a block-by-block survey had been performed and only those specific sections which needed to be replaced were picked; they are not proposing to replace everything, only those portions of sidewalk, curb and gutter, and driveways that are in excess of City ordinance.
Councilmember Fonnesbeck asked how far west on 4th Avenue the area extended, as most of her complaints were coming from A and B Streets and, asked about the possibilities of adding these streets if they are not in the target area. Mr. Lyons said the area went to D Street only because they ran out of money, however if funds became available those streets could be added if the residents petitioned. Mr. Lyons said that Keith Knight, representing the Majestic Investment Company, was protesting the project. Mr. Knight felt that his letter stated his position well enough so he did not wish to address the Council.
Councilmember Whitehead moved and Councilmember Mabey seconded to close the public hearing, which motion carried, all members voting aye.
Councilmember Whitehead moved and Councilmember Mabey seconded to request the tabulation of protests for the meeting on Thursday, April 7, 1983, which motion carried, all members voting aye.
(Q 83-4)
Industrial Revenue Bonds Leads & Northrup Company.
RE: The proposed plan for issuing Industrial Development Revenue Bonds of Salt Lake City for the financing of the purchase of approximately 7 1/2 acres of land at 5425 West Amelia Earhart Drive and the construction, furnishing and equipping thereon of approximately a 40,000 square foot office and light manufacturing facility to be owned and operated by Leads and Northrup Company and adopting the enactment resolution relating thereto.
A public hearing was held before the Salt Lake City Council at 6:15 p.m. to discuss this request. Craig Terry, representing Leads & Northrup Company, gave a background overview of the company and the past actions of the City Council which allowed Leads & Northrup Company to commence on the acquisition of the property. He outlined the proposed usage of the facility in computer programming and development, testing of large energy management systems and the manufacturing of associated equipment. It has been provided that the repayment of the bonds was guaranteed by General Signal Corporation which is the parent corporation of Leads & Northrup. Mr. Terry said that construction of the building has been completed and the majority of the equipment has been obtained. Leads & Northrup Company is now ready to have the bonds marketed in the amount of $2.7 million.
Councilmember Parker moved and Councilmember Whitehead seconded to close the public hearing, which motion carried all members voting aye.
Councilmember Parker moved and Councilmember Whitehead seconded to adopt Enactment Resolution 20 of 1983 relating to the Leads & Northrup Industrial Development Revenue Bond subject to the attorney’s approval, which motion carried, all members voting aye.
(Q 83-6)
Budget for Fiscal Year 1982-83.
RE: Opening of the 1982-83 budget to increase appropriations for the following purposes: 1. Fleet Management - as a result of a garbage collection contract cancellation, public works is picking up three more refuse routes as of May 1983. This will necessitate the immediate order of four more garbage trucks costing $90,000 each. This appropriation request will also necessitate a loan from the City’s pooled cash. It is intended that public works will repay fleet management for the purchase of three of the trucks during the 1983-84 fiscal year. 2. Fleet Management - The fire department is in need of two fire pumpers immediately at a cost of $126,000 each. This will also result in a loan from the City’s pooled cash of $252,000. It is intended that the fire department will repay fleet management at a rate of $75,000 per year.
3. Fleet Management - A grading machine was purchased through a lease agreement for the public works department. An appropriation is requested for this purchase, which would have cost $121,880 if purchased outright. The offset to this appropriation is requested for the amount obtained through lease financing. 4. Fleet Management - Some purchases of capital equipment which were budgeted in the 1981-82 fiscal year were not received until July and August of the 1982-83 fiscal year. This resulted in a current year expenditure without an appropriation. There were five capital purchases in the category, totaling $129,700. We are requesting that a loan from the City’s pooled cash be appropriated as the offset. Through the use of pooled cash for fleet loans, as approved by the state auditor’s office, the city treasurer can make vehicle leasing decisions based upon sound financing criteria. 5. Development Services - It is requested to add one more building inspector II position to the building and housing services staff. There has been a substantial increase in the number of inspections required due to more permits than anticipated this year. The requested appropriation increase of $7,720 will be offset by an increase in permit revenue. 6. Development Services - It is requested that the budget be amended to correct an improper adjustment that was made in the January 12, 1983, budget opening. The $221,000 budgeted under the CDBG operating fund for a land write-down project should be moved under the capital projects fund, where a 7th year land write-down project is budgeted.
7. Public Works - It is requested that an error in the January 12, 1983, budget opening be corrected by moving $30,000 and $50,000 that was budgeted under the capital projects fund in the development services for improvements on Beldon Stanton and Jefferson Circle respectively, to the public works department. Public works will be responsible for the design of these street improvement projects and administer the contracts. 8. Public Works - Also in the January 12, 1983, budget opening, $173,000 was budgeted for property owner’s share of the new curb & gutter district to be created (District 681). The amount was budgeted under the capital projects fund but should have been budgeted under the special assessment fund.
9. Public Works - It is requested that appropriations on three capital improvement projects be increased for new county flood control money which has been received by the City as follows: Capital Hills Storm Drain $151,457, 4th Avenue Storm Drain, Phase II $99,887, 17th South State to 700 West Design $11,500, $262,844. 10. Public Works - It is requested that a shift in appropriations for the following capital improvement projects be approved: Close out (decrease): $(20,026) Highland Drive Storm Drain Increase: 4th Avenue Storm Drain, Phase II $8,185 17th South Storm Drain $11,841 $20,026 11. Finance and Administrative Services - It is requested that the appropriation for interest expense be increased in the cash management program to pay for the added costs of selling more tax anticipation notes than what was planned.
It was thought that an increase in interest revenue would have been available to offset the additional interest expense However, since interest rates fell, funds are not available to pay the additional $700,000 due on June 30, 1983. It is requested that $500,000 be appropriated from fund balance in order to bring the City into compliance with state law. Since the wave pool loan was not forgiven, the fund balance was $496,000 in excess of what the law allows. It is requested that $200,000 be transferred from non-departmental contingency.
12. Parks - It was the Council’s intent that the wave pool construction loan debt of $450,000 not be forgiven. Only the interest on the loan for the 1982-83 fiscal year was to be waived. Thus, since the original budget for the 1982-83 fiscal year reflected the loan being forgiven, this must be reversed. Therefore, it is requested that transfer-in and operating expense each be reduced by $450,000 for this fund, with an offset of the same amount shown in the general fund/non-departmental. 13. Non-Departmental - It was the Council’s intent that the wave pool construction loan debt of $450,000 not be forgiven. Only the interest on the loan for the 1982-83 fiscal year was to be waived.
Thus, since the original budget for the 1982-83 fiscal year reflected the loan being forgiven, this must be reversed. Therefore, it is requested that transfer-out and transfer-in each be reduced by $450,000 for the general fund, with an offset of the same amount shown in the park, recreation and development fund. It is also requested to make a transfer of $200,000 of non-departmental contingency to finance to offset a portion of the additional interest expense.
A public hearing was held before the Salt Lake City Council at 6:30 p.m. to discuss the budget requests. Lance Bateman, city controller, outlined the information as presented above. Councilmember Davis addressed issue number five and asked if the salary for the employee would be from the time they were hired to June 30; Mr. Bateman said that it would. Ms. Shearer asked what would happen to the additional money received over the estimate of the permit fees; Mr. Bateman said that as in all revenues, excess revenues over budget and also over expenditures at year end are put into fund balance. The permit fees are coming in greater than what had been budgeted so that income will be added to the revenue side.
Councilmember Davis addressed issue nine and asked if these were the next projects selected to receive the money. Mr. Bateman said that this was a request that public works made; they work with the county flood control people to determine where the money should be spent. Councilmember Mabey asked if some of the projects had not already been done. Jim Talebreza, public works director, said that the projects are finished, the money will be used to complete payment. Councilmember Davis addressed issue four and asked what the five capital purchases were. Mr. Bateman said that he would check and then he would let the Council know. Councilmember Shearer addressed issue seven, Beldon Stanton project, and asked if this was the parking lot. Doug Carlson said that it was the turnarounds; the money was a donation by the developer.
Ms. Shearer also asked about Jefferson Circle and Mr. Carlson said that this was in connection with the Jefferson Housing Project. He said the money was from the CDBG program income; the project was approved January 18.
Councilmember Shearer moved and Councilmember Parker seconded to close the public hearing, which motion carried, all members voting aye.
Councilmember Fonnesbeck asked what happens if the money is not paid back that the City lends to itself. Mr. Bateman said that the state law would not allow the City to go into a deficit position. The loans are being charged interest at the going rate and the City will budget to pay the money back. Albert Haines, chief administrative officer, said that there has been a tendency to lease equipment because the full appropriation was not available to purchase the equipment. Now on capital purchases, whether they are leased or purchased, the total value will be shown during the fiscal year that they are acquired.
Mr. Bateman said that the total appropriation will show in the budget and the decision as to whether to buy the equipment from City funds rather than lease it will be a finance decision. If the decision to buy the equipment is the best choice then it will be purchased even if the particular department does not have the money. Councilmember Shearer said that the money the departments are borrowing this year will increase their appropriation but future borrowing will not increase the particular department’s spending ability it will simply provide them with a cash flow. Mr. Bateman said that was correct.
Councilmember Shearer asked about the purchase of additional garbage trucks. Mr. Bateman said that even though the garbage collection contract was cancelled the City would have enough trucks to do the work if every truck was running, however, it is important to have additional trucks because the trucks will require maintenance and repair work. Councilmember Mabey said that a quarter of the money that was used for the garbage collection contract would purchase the trucks; Mr. Bateman said that was correct.
Councilmember Shearer said that she was concerned that the Council was being asked to approve business that had already taken place. She said that the Council had little choice in this matter and felt that the debts were incurred without the Council’s approval or acquiescence. Ms. Shearer said that she did not know how the Council could keep this from happening again. She said that she did not have a problem with funds being moved from one fund to another because this would make each fund internally consistent.
Mr. Bateman said that under the new automated purchasing system a department’s budget is checked for funds before purchases are made. A requisition will not be issued unless funds are available. Mr. Bateman said that he has informed everyone about this new system. Councilmember Shearer asked if this would include word processors. Mr. Bateman said that a leasing decision will be made where technology demands that the City lease. If lease plans are in the budget it would be for items like computers, word processors, copiers, etc. But the total appropriation will be put in the budget and the Council will see what the items will cost. Councilmember Whitehead said he felt that, in the future, the Council should not approve expenditures after the fact, however, at this point continued debate would not accomplish anything. Mr. Haines said that the procedure which caused these problems has been stopped. A correction has been made to the system. Councilmember Shearer said that the municipal fiscal code amendments required a change in this policy. Mayor Wilson said that this was not a major budgeting error and was not done to circumvent the Council. If the procedure continued it would be a serious matter but the corrections have been made. Mr. Haines said that the City recognized a problem with the system and the system has been changed; he felt that this represents good faith.
Councilmember Whitehead moved and Councilmember Mabey seconded to adopt Resolution 24 of 1983 amending budgets of Salt Lake City, Utah, for the fiscal year beginning July 1, 1982 and ending June 30, 1983, which motion carried, all members voting aye.
(B 82-4)
CITIZEN COMMENTS
Sam Taylor addressed the Council and Mayor regarding UTA service from the Salt Lake City International Airport to area ski resorts. He said UTA was wasting money because of the small number of people utilizing the buses and that the buses used the freeway where no fares were picked up. Mr. Taylor said that the City should make UTA drop the airport/ski service and use the money saved to purchase new buses.
The meeting adjourned at 9:05 p.m.