PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
TUESDAY, MAY 24, 1983
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET AS A COMMITTEE OF THE WHOLE ON TUESDAY, MAY 24, 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.
Council Chairman Grant Mabey presided at and conducted this meeting.
POLICY SESSION
Leigh von der Esch briefed the Council on the agenda. Mary Lee Peters, executive director of the Salt Lake Arts Council, was introduced to the Council. She expressed her willingness to meet with members of the Council to discuss the Arts Council. Councilmember Shearer asked whether the funding included in the proposed budget was sufficient for the Arts Council’s needs. Ms. Peters indicated that the Arts Council had been successful in raising funds through private sources to supplement funding from the City.
Members of the Council discussed possible amendments to the recommended Community Development Block Grant allocations. Doug Carlson briefed the Council on a change in CDBG funding relating to the housing authority. The housing authority requested that the $80,000 the Council previously appropriated for administrative costs for the housing authority be split between infrastructure costs for the Jefferson Circle project and administrative costs.
The policy session adjourned at 5:55 p.m.
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN REGULAR SESSION ON TUESDAY, MAY 24, 1983, AT 6:00 P.M. TN 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 Edward W. Parker conducted this meeting.
Invocation was given by Police Chaplain Dick Talbot.
Pledge of Allegiance.
Approval of Minutes:
Councilmember Shearer moved and Councilmember Davis seconded to approve the minutes, as amended, of the regular meeting of the Salt Lake City Council for the meeting held Tuesday, May 17, 1983, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(M 83-1)
Special Recognition:
#1. Councilmember Whitehead presented a proclamation to Richard V. Higham who is retiring from the Salt Lake City Airport Authority. This proclamation expressed appreciation to Mr. Higham for his many years of service. Mr. Higham said that he enjoyed working at the airport and he said that every year the airport continues to grow and improve.
Councilmember Whitehead moved and Councilmember Mabey seconded to approve the proclamation, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(C 83-17)
#2. Councilmember Parker presented a plaque to Richard Johnston, deputy city engineer, expressing appreciation to him for his work on the Sugarhouse beautification project. Mr. Johnston said that this project has given him a great deal of satisfaction. He could see the potential for a positive impact to Sugarhouse because of this project. He said that there has been a good spirit of cooperation between the City, the consultants, and the business owners in the area. Mr. Johnston said that it had been a pleasure working on the project. Councilmember Fonnesbeck expressed her appreciation to Mr. Johnston for his ability to effectively deal with citizens who complained about the project.
Councilmember Whitehead moved and Councilmember Mabey seconded to approve the plaque, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(G 83-18)
PETITIONS
Petition 400-50 of 1983 submitted by Linda Tracy/Benchmark 2100.
RE: The request that the property located on the west side of 21st East and north of 13th South be rezoned from its present Residential “R-2” to a Residential “R-3A” classification for the purpose of constructing a 12-unit residential condominium.
RECOMMENDATION: That the City Council hold a public hearing on June 14, 1983 at 6:30 p.m. to discuss this petition.
AVAILABILITY OF FUNDS: The petitioner is required to pay a $50 advertising fee.
DISCUSSION: The planning commission held an informal hearing on this matter at their meeting held May 12. Attached to the petition is a copy of that portion of the minutes of that meeting and also a staff report covering this request. Due to the size and shape of the property in question and its location just north of an existing business district, it is the recommendation of the planning commission that the property be rezoned as requested.
It is also recommended to consider at the public hearing the rezoning of a triangular piece of property located on the west side of 21st East Street starting at a point 140 feet north of 13th South Street running thence north approximately 700 feet and extending from 21st East west to Emigration Canyon Creek. This property would be zoned from its present Residential “R-2” to a Residential “R-3A” classification.
Councilmember Davis moved and Councilmember Shearer seconded to schedule a public hearing for June 14, 1983 at 6:30 p.m. to discuss Petition No. 400-50 of 1983, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(P 83-288)
Petition 400-52 of 1983 submitted by Dale Barton & Hardage Enterprises.
RE: The request to rezone the south side of Linden Avenue between 7th and 8th East from a Residential “R-6” to a Commercial “C-1” classification. This involves the extension of the existing “C-l” zoning on the north side of 4th South north to Linden Avenue.
RECOMMENDATION: That the City Council hold a public hearing on June 14, 1983 at 7:30 p.m. to discuss this petition.
AVAILABILITY OF FUNDS: The petitioner is required to pay a $50 advertising fee.
DISCUSSION: The planning commission held an informal hearing on this matter at their May 12 meeting. Attached to the petition is a staff report covering the request and also a copy of the planning commission minutes covering this portion of their meeting. In the opinion of the planning commission the proposed rezoning, which as explained by the petitioner would allow for the development of a residential-type motel complex, would create a buffer for the residents on the north side of Linden Avenue and would actually be a protection and an enhancement to the adjoining residential area. Therefore, the recommendation of the planning commission is to consider at the public hearing the rezoning of all that property now zoned Residential “R-6” on the south side of Linden Avenue and extending south to the boundary of the existing “C-1” zone between 7th and 8th East, excluding therefrom the properties facing on 8th East, to a Commercial “C-1” classification.
Councilmember Davis moved and Councilmember Shearer seconded to schedule a public hearing for June 14, 1983 at 7:30 p.m. to discuss Petition No. 400-52 of 1983, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(P 83-289)
DEPARTMENTAL BUSINESS
AIRPORT AUTHORITY
#1. RE: Public hearing to receive comment on the proposed construction and expansion project at the Salt Lake City International Airport and the proposed issuance by the City of its Airport Revenue Bonds, Series 1983, in the aggregate principal amount of $25,500,000.
A public hearing was held at 6:00 p.m. to discuss this issue. Ronald Ockey, bond counsel, said that the public hearing was required by the new tax code as enacted by the Tax Equity and Fiscal Responsibility Act of 1982. The notice for the hearing was published in the newspaper more than 14 days prior to this meeting. Mr. Ockey reiterated the purpose of the hearing and said that the hearing should be opened for public comment and suggested that the Council determine if any written comments regarding this matter were received by the recorder’s office prior to this hearing. Councilmember Parker opened the public hearing. The city recorder’s office indicated that no written comments had been received prior to this hearing. No one from the audience addressed this issue.
Councilmember Shearer moved and Councilmember Davis seconded to close the public hearing, which motion carried, all members voting aye except Councilmember DePaulis who was not present when the vote was taken.
(Q 83-1l)
#2. RE: Consideration of bids received for the purchase of the Airport Revenue Bonds, Series 1983, in the aggregate principal amount of $25,500,000.
RECOMMENDATION: That the City Council award the $25,500,000 Salt Lake City Airport Revenue Bonds, Series 1983, to the First Boston Corporation at a true interest cost of 10.1213%.
DISCUSSION: The low bidder for the purchase of the $25,500,000 Salt Lake City Airport Revenue Bonds, Series 1983, was the First Boston Corporation and Associates. The bid was submitted in compliance with all provisions contained in the Official Notice of Bond Sale and was accompanied by a certified good-faith check in the amount of $510,000. The Results of Sale outlines the bids received for the sale of the bonds (a copy of the Results of Sale is on file in the city recorder’s office). The bid of Smith Barney, Harris Upham and Co., Inc., was not received by the designated time as specified in the Official Notice of Bond Sale. However, such bid was neither first nor second as to the lowest true interest cost. Albert Haines presented the above information to the Council.
Councilmember Shearer moved and Councilmember Davis seconded to let the record show that the First Boston Corporation and Associates has submitted the lowest true interest bid on the airport bonds, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(Q 83-11)
#3. RE: Resolution approving letter agreements between the City and certain airlines relating to the airport expansion project. Ronald Ockey, bond attorney, said that this resolution would approve and ratify letter agreements previously negotiated between the City and certain airlines which made objections to the expansion project. Mr. Ockey said the resolution indicates that certain participating airlines which are parties to the use agreements filed objections to the expansion project and the method of funding and allocating costs. The resolution also indicates that the City and the objecting airlines entered into negotiations concerning this issue which culminated in certain agreements.
These letter agreements were approved by the airport authority May 11, 1983. The resolution indicates that a meeting was held before the Council on May 12, 1983 at which time representatives of some of the airlines addressed the Council about this matter. Finally, the resolution states that the Mayor has signed the letter agreements and the Council desires to approve and ratify the letter agreements. This resolution is on file in the city recorder’s office for inspection.
Councilmember Shearer moved and Councilmember Fonnesbeck seconded to adopt Resolution 43 of 1983 approving and ratifying certain letter agreements between the city and certain airlines relating to an expansion and construction project (the “1983 Project”) at the Salt Lake City International Airport; and related matters, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(Q 83-1l)
#4. RE: A supplemental resolution (the “1983 Supplemental Resolution”) to Resolution 81 of 1978 (the “Master Resolution”, as previously amended by Supplemental Resolution 82 of 1978) relating to the proposed airport expansion project. Ronald Ockey said that the Master Resolution and first Supplemental Resolution were adopted in 1978 and authorized the issuance of $37 million of airport revenue bonds. This second Supplemental Resolution to the Master Resolution is for the purpose of authorizing the issuance of $25,500,000 of airport revenue bonds for the purpose of financing part of the costs of the project which is defined in the resolution. Basically the project consists of certain expansions to Terminal Unit #2 and concourse “C”, construction of a new connector building between that terminal and a new concourse “D” which is to be constructed with the bond proceeds, and to the enlargement and certain improvements on the airfield with respect to a taxiway for the airplanes, and certain other related improvements.
Mr. Ockey said that this resolution defines and approves the Series 1983 Project; it also authorizes the construction of the project. The resolution authorizes the issuance of the bonds and outlines the maturity schedule. The terms of the bonds include that the interest will be payable semi-annually on June 1 and December 1 of each year starting with December 1, 1983; the bonds will be issued in coupons and fully-registered form. The bonds are redeemable at the option of the City commencing on June 1, 1993.
Mr. Ockey said that this resolution authorizes the bonds to be issued and sold to the First Boston Corporation and other purchasers at an aggregate price of $24,630,567.50 plus the accrued interest. The purchase is to be on the terms and conditions stated in the Official Notice of Bond Sale and the Official Bid Form. The resolution authorizes the Mayor and City Recorder to sign the Official Bid Form and authorizes the Mayor to sign the Final Official Statement.
Mr. Ockey said that the resolution further authorizes the Mayor, City Recorder, and other officers of the City to perform all acts necessary to close the sale and execute certain certificates and documents which will be necessary in order to deliver the bonds. The use of the bond proceeds and form of the bonds are also outlined in the resolution. Mr. Ockey said that these bonds are not general obligations of Salt Lake City; they do not pledge the tax power or general credit of Salt Lake City.
The bonds are payable solely from the revenues pledged for their payment by the Master Resolution. There is also a statement in the resolution indicating that the funds will not be used in a way that would cause the interest on the bonds to become taxable for federal income tax purposes. And there is a clause in the resolution which ratifies previous actions taken by the Council and other officials of the City in connection with the project. Mr. Ockey said that the resolution will be effective immediately. This resolution is on file in the city recorder’s office for inspection.
Councilmember Davis moved and Councilmember Shearer seconded to adopt Resolution 44 of 1983 authorizing the acquisition and construction of additions, improvements and extensions to the Salt Lake City International Airport (the “Series 1983 Project”); authorizing the issuance and confirming the sale of $25,500,000 Airport Revenue Bonds, Series 1983, of Salt Lake City, Utah (the “Series 1983 Bonds”), to pay part of the costs of acquisition and construction of the Series 1983 Project; defining certain terms; prescribing the terms, conditions and forms of the Series 1983 Bonds and coupons, designating the paying agents for the Series 1983 Bonds; authorizing the execution of an Official Bid Form accepting the bid for the purchase of the Series 1983 Bonds; approving and authorizing the execution of the Final Official Statement for the Series 1983 Bonds; establishing the Series 1983 Project Account for the project; authorizing deposits of moneys into certain funds and accounts; prescribing the application use and investment of the proceeds of the Series 1983 Bonds; stating certain covenants of the city; authorizing the execution, authentication and delivery of the Series 1983 Bonds and the execution and delivery of all other certificates and documents and the performance of all acts and other matters required in connection with the transaction and the project and to close the sale of the Series 1983 Bonds and the attendance of city officials and representatives at the closing; approving and ratifying all additions and changes made in the Official Notice of Bond Sale, the Official Bid Form and the Preliminary Official Statement and their use in connection with the solicitation of bids for the Series 1983 Bonds; approving and ratifying resolutions of the Municipal Council and actions taken by officials of the city and the airport authority with respect to the Series 1983 Bonds and the Series 1983 Project; providing a severability clause and an effective date; and related matters, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(Q 83-11)
#5. RE: A resolution authorizing and directing the publication of a Notice of Bonds to be issued relating to the airport revenue bonds. Ronald Ockey said that this resolution authorizes the publication of a notice pertaining to the issuance of bonds. There will be a 30-day waiting period after the notice is published since to give the public an opportunity to make any protests. At the end of the 30 days the bonds will be delivered in New York. Mr. Ockey said that this resolution outlines the form of the notice to be published and basically it summarizes the terms of the bonds, the purpose for the bonds, and related matters. This resolution is on file in the city recorder’s office and is available for inspection.
Councilmember Parker moved and Councilmember Mabey seconded to adopt Resolution 45 of 1983 authorizing the publication of a Notice of Bonds to be issued with respect to the $25,500,000 Airport Revenue Bonds, Series 1983, of Salt Lake City, Utah, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(Q 83-11)
*NOTE: The Official Proceedings, submitted by the bond counsel, dated May 24, 1983, and all information therein relating to the Airport Revenue Bonds including Resolutions 43, 44, and 45 of 1983, are hereby made a part of these Council minutes and are on file in the Office of the City Recorder for inspection.
DEVELOPMENT SERVICES
#1. RE: A resolution specifying the allocation of 9th Year Community Development Block Grant funds and specifying the allocation of Jobs Bill funds.
Councilmember Shearer moved and Councilmember Davis seconded to make the following amendments to the tentative budget for 9th Year CDBG programming: 1. Add $4,000 to Sugarhouse Code Enforcement (Housing), 2. Delete $105,000 from 900 West Street Improvements (Streets), 3. Add $125,000 to sidewalk, curb & gutter repair (Streets), 4. Add $25,000 to Jackson Boys’ and Girls’ Club addition (Public Service), 5. Add $26,500 to South/West Historical Survey (Planning), 6. Add $30,000 to the attorney’s office (Administration), 7. Delete $105,500 from contingency.
And to make the following amendments to the Jobs Bill allocation:
1. Delete $125,000 from sidewalk, curb & gutter repair, 2. Add $100,000 to emergency works program, 3. Add $25,000 to contingency for a total of $105,800. Councilmember Shearer’s motion was not voted on since a substitute motion was made later in the discussion. Mayor Wilson said that $100,000 for the emergency works program was a very small amount out of the Jobs Bill funds which total $1.1 million. The Mayor said that there are many people in the City out of work and this program needs to be funded for an amount greater than $100,000.
The Mayor suggested that $150,000 could be deleted from the $655,000 allocated to the 13th South project and the project would still be on schedule if the $150,000 is added to the budget next year. Mayor Wilson said he did not have objections to the other amendments suggested by Councilmember Shearer. Councilmember Shearer said that the projects in the budget that were originally recommended have long been promised. The 13th South curb and gutter district is an established project and was originally petitioned for about eight years ago. Councilmember Whitehead said that the people working on the Centro Civico project have been struggling to complete their project and if there are any slippage funds this project should be a top priority to be considered.
Councilmember DePaulis referred to the sidewalk, curb and gutter repair funding which was proposed to be divided between CDBG and Jobs Bill and asked what would happen to the allocation of the work. Councilmember Shearer said that the work would proceed more rapidly because the money will be available sooner; it is predicted that the Jobs Bill money will not be available until September. Councilmember DePaulis asked how the work could be accomplished in this construction year if the money was not going to be available until September. Arlo Nelson, capital planning and programming, said that it was not anticipated that all the money would be spent in the fall, projects will continue to next spring. He referred to the 13th South project and said that if money is taken from that project for the emergency works program the project could be constructed generally next spring and after July 1 when the money would be re-allocated to the budget for this project. Councilmember DePaulis expressed concern that the 13th South project would be delayed for a year. Councilmember Shearer said that the Mayor was recommending that money be removed from the 13th South project which means that all the money would not be available at the time the contract is let. She expressed concern that the Council was being asked to pre-promise the re-allocation of funds to next year’s budget for the 13th South project. Ms. Shearer said that a number of projects promised last year were lost in this year’s funding.
The Mayor reiterated that $100,000 from the Jobs Bill money is not enough to be used for the structurally unemployed. Mr. Nelson said that Rick Johnston, deputy city engineer, indicated that the Jobs Bill money would be available in September and minor items would be done with that money, in the spring and summer the entire project would be accomplished. Mr. Nelson reiterated that money taken from this project would have to be committed next year. Councilmember Whitehead suggested that if the bids for the 13th South project are lower than the estimated cost of the project the surplus money be allocated to the emergency works program.
Councilmember Fonnesbeck asked if it would make any difference to the project’s timetable if 13th South is not completely funded but only partially funded this year under Jobs Bill. Mr. Nelson said that Mr. Johnston has indicated that the project could be completed in next summer’s construction period; the project would not be started this fall because it would be too late. Councilmember Shearer said that she was concerned that the project be completed as expeditiously as possible and if construction has to be stopped in order to wait for more funding next July then the street could be under construction all summer.
A substitute motion to Councilmember Shearer’s motion was made by Councilmember Whitehead. Councilmember Whitehead moved and Councilmember Shearer seconded to make the following amendments to the tentative budget for 9th Year CDBG programming: 1. Add $4,000 to Sugarhouse Code Enforcement (Housing), 2. Delete $105,000 from 900 West Street Improvements (Streets), 3. Add $125,000 to sidewalk, curb & gutter repair (Streets), 4. Add $25,000 to Jackson Boys’ and Girls’ Club addition (Public Service), 5. Add $26,500 to South/West Historical Survey (Planning), 6. Add $30,000 to the attorney’s office (Administration),
7. Delete $105,500 from contingency. And to make the following amendments to the Jobs Bill allocation: 1. Delete $125,000 from sidewalk, curb & gutter repair, 2. Add $100,000 to emergency works program, 3. Add $25,000 to contingency for a total of $105,800 . Also, if the bid for 1300 South Street improvements is less than $655,000 then up to $100,000 of the savings will be added to the emergency works program, which motion carried, all members voting aye except Council Members Fonnesbeck and DePaulis who voted nay. Mayor Wilson reiterated the importance of the emergency work program and said that he would be willing to delay the 13th South project for two years if necessary to help these people. But the Mayor said that he thought the project would not have to be delayed and did not think there would be any problems with the project moving ahead. Stephanie Loker indicated that if the bid for 1300 South was let next spring any additional money for the emergency works program would not be available until then. She asked if the program would still be operating next spring.
Bill Biggs, State Department of Social Services, said that the highest use of the program was during the winter when no construction jobs were available. He indicated that he did not know if the program would be continuing in the spring. Councilmember Whitehead said that money could be used in the spring and summer months for clean-up projects around the City. Mayor Wilson said that the City’s use of the money in terms of allocations of jobs for the City is secondary. The money should be used for the structurally unemployed of the City. If the workers cannot be used in the City then the jobs can be allocated to private charities or not-for-profit groups. The people could be put to work within Salt Lake City and the City is not obligated to employ every person.
Councilmember Shearer referred to the proposed Statement of Community Development Goals and Objectives and indicated that an amendment needed to be made to the objective which reads, “To provide sidewalk, curb and gutter, and Street improvements in target neighborhoods.” Ms. Shearer proposed the following amendment to that objective: “...and, in addition, in specific areas where these improvements will favorably impact several neighborhoods or areas.’ The objective as amended would read, “To provide sidewalk, curb and gutter, and Street improvements in target neighborhoods and, in addition, in specific areas where these improvements will favorably impact several neighborhoods or areas.”
Councilmember Shearer said that this amendment would allow for money to be used outside of target areas that are CD eligible. She also said that this was a staff recommendation. Councilmember DePaulis asked if this amendment would be in keeping with current regulations. Councilmember Shearer said the money could be used on CD eligible projects. Councilmember Parker asked if this amendment would have a damaging effect upon the target neighborhoods. Arlo Nelson said that the main policy was to target various areas but in certain instances projects are outside target areas and are CD eligible so it is desirable to be able to use the money for those projects too.
Councilmember DePaulis asked how improvements would impact several neighborhoods. Mr. Nelson used 1300 South as an example and said that the street is used by a lot of people from other neighborhoods and areas. Councilmember Shearer said that this amendment was a supplement to the target areas; the projects would be done in target areas and also in areas that will have a favorable impact on several different neighborhoods.
Councilmember Shearer moved and Councilmember Whitehead seconded to amend the proposed goals and objectives by amending objective number three to read, “To provide sidewalk, curb and gutter, and street improvements in target neighborhoods and, in addition, in specific areas where these improvements will favorably impact several neighborhoods or areas.”, which motion carried, all members voting aye. Councilmember DePaulis said that he thought the emergency works program was critical and proposed to delete $70,200 from the Grace Court project and add it to the emergency works program. Mr. DePaulis encouraged the Council to take money from projects in their areas and add to this program.
Councilmember DePaulis moved and Councilmember Mabey seconded to delete $70,200 from the Grace Court project and add it to the emergency works program. This motion was not voted upon since a substitute motion was made later in the discussion. Councilmember DePaulis said that he understood the money would be used in Salt Lake City and would be non-administrative. Bill Biggs said that the Department of Social Services operates four districts which are fully staffed and the administration of this program would not require any additional staff. Salt Lake County will furnish job placement and workmans’ compensation will be provided by the state.
Councilmember Whitehead asked when the City’s money would be turned over to this program. Mr. Biggs said that the money would be contracted to the Department of Social Services, when it is received from HUD, with the stipulation that none of the money would be used for administration and every dollar would be used for grants to eligible residents of Salt Lake City. Councilmember Davis asked if reports would be given to the Council regarding expenditures. Mr. Biggs said that the department would be accountable and the information could be provided on a weekly basis.
Councilmember Fonnesbeck made a substitute motion to Councilmember DePaulis’ motion. Councilmember Fonnesbeck moved and Councilmember DePaulis seconded to delete the $70,200 from the Grace Court project and delete $30,000 from the Avenues (various locations) project for a total of $100,200 to be added to the emergency works program, which motion carried, all members voting aye except Councilmember Shearer who voted nay.
Councilmember Mabey said that the emergency works program would have $200,200 and asked Mr. Biggs if this would be sufficient for the winter months. Mr. Biggs felt that this amount would be sufficient for the winter months, however, it would not be enough for the full year. Councilmember Parker proposed deleting $100,000 from the Guadalupe Park acquisition and adding that amount to the Fairmont Park design. He felt that it would be wise to complete the Fairmont Park project before starting a new project. Councilmember Whitehead said that the Guadalupe area was improving and the land values would start to increase quickly. He said that the land proposed for the park may not be available if it is not acquired at this time. This is a targeted area and it would be a mistake not to acquire the land. Councilmember Parker said that inflation would also apply to construction taking place on the Fairmont Park project. Councilmember Davis said that Fairmont Park has been under construction for three years and she felt it should be completed so the Sugarhouse area would be finished.
Councilmember Whitehead felt that this amendment was an afterthought and should have been submitted before this meeting. Mayor Wilson said that he agreed that Fairmont Park needed the work done but Guadalupe Park is in the center of one of the most dynamic areas in the City. Councilmember Whitehead said that the Jackson-Guadalupe area was run-down; the Jackson area has greatly improved and the Guadalupe is starting to improve. This park in the Guadalupe area is one more phase to get Guadalupe back into a viable housing area close to downtown Salt Lake City.
Councilmember Parker said that he had not been informed that $200,000 was being deleted from the Fairmont Park project. Arlo Nelson said that $10,000 was allocated to Fairmont Park this year for design work. In the 1984-85 capital improvement program it is projected that $214,000 will be allocated for the construction phase. The Guadalupe Park has $100,000 allocated this year and another $100,000 is programmed next year to complete the project. Councilmember Davis said that she understood $21,000 had been appropriated to Guadalupe Park last year and none of the money has been spent. Mr. Nelson said the money was for the design phase and the design has to be applied to a specific site which has not yet been acquired. Councilmember Shearer asked if there was money available to finish the road and the grass at Fairmont Park. Mayor Wilson said money was available but the weather has delayed the project.
Councilmember Parker moved and Councilmember Davis seconded to delete $100,000 from the Guadalupe Park acquisition and add that money to the Fairmont Park design project, which motion failed, all members voting nay except Councilmembers Shearer, Davis and Parker who voted aye.
Councilmember DePaulis moved and Councilmember Mabey seconded to delete $20,000 from CDBG contingency and add it to the current appropriation to the Housing Outreach Rental Program making the total $38,800, the contingency would total $210,059, which motion carried, all members voting aye.
Councilmember DePaulis moved and Councilmember Shearer seconded to adopt Resolution 48 of 1983 adopting the final “Statement of Community Development Objectives and Projected Use of Funds”, as amended, for the 9th Year Community Development Block Grant and authorizing Mayor Ted Wilson to submit appropriate documents relating to 9th Year CDBG funding to Housing and Urban Development in Denver by June 1, 1983, which motion carried, all members voting aye.
Councilmember DePaulis moved and Councilmember Whitehead seconded to adopt Resolution 49 of 1983 adopting the final “Statement of Objectives and Projected Use of Funds” for the 1983 Jobs Bill Allocation, as amended, and authorizing Mayor Ted Wilson to submit appropriate documents relating to Emergency Jobs Appropriation Act funding to MUD by July 1, 1983, which motion carried, all members voting aye.
Councilmember DePaulis moved and Councilmember Shearer seconded to adopt the Housing Assistance Plan, which motion carried, all members voting aye. NOTE: Information relating to 9th Year CDBG and Jobs Bill funding is on file in the Office of the City Recorder.
(T 83-2)
#2. RE: Urban Parks and Recreation Recovery (UPARR) Program and Recovery Action Plan.
DISCUSSION: The Urban Parks and Recreation Recovery (UPARR) Program was established in 1978 to provide federal aid through the National Park Service to communities for the rehabilitation of recreation areas and facilities. Salt Lake City has received two grants under this program: one for $420,000 to rehabilitate Fairmont and Pioneer Parks, and another for $15,000 to prepare a Recovery Action Plan.
During 1981 and 1982, Congress did not fund the UPARR Program, but on March 23, 1983, President Reagan enacted the “Jobs Bill” which provided $40 million from UPARR rehabilitation grants. According to National Park Service regulations, only cities with Recovery Action Plans approved by May 27, 1983 will be eligible for UPARR grants under the Jobs Bill. The Salt Lake City Parks Department has prepared a Recovery Action Plan which meets National Park Service criteria. It must be adopted by the City Council as the official guide to recreation policy and action before final National Park Service approval can be given. The City has prepared a grant preapplication for $435,000 in UPARR funds to rehabilitate Rose Park Tot-Lot and Jordan Park. The required City match of $215,000 will come from projects budgeted in prior years.
Councilmember Davis moved and Councilmember Shearer seconded to approve the Parks Recovery Action Plan, which motion carried, all members voting aye, except Councilmember DePaulis who was absent when the vote was taken.
(T 83-11)
FINANCE AND ADMINISTRATIVE SERVICES
#1. RE: Industrial Revenue Bond application - Salt Lake Residence Corporation.
RECOMMENDATION: That the City Council set a date for a public hearing to consider an Inducement Resolution for an Industrial Revenue Bond application by Salt Lake Residence Corporation in the amount of $8,000,000, subject to the following conditions: 1. That the City Attorney approve the resolution as to form. 2. That the application meet all necessary financial requirements of the City. 3. That Salt Lake Residence Corporation pay the established non-refundable fee for processing.
DISCUSSION: The Company contemplates construction of a Brock Residence Inn consisting of 16 buildings with eight units per building, to be located at 4th South between 7th and 8th East Streets. The application was submitted to the planning and zoning department.
Councilmember Davis moved and Councilmember Shearer seconded to schedule a public hearing for June 14, 1983 at 7:45 p.m. to consider an Inducement Resolution for an Industrial Revenue Bond application by Salt Lake Residence Corporation in the amount of $8,000,000.00, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(Q 83-16)
#2. RE: An ordinance relating to local option sales and use taxes; providing for the levy and collection of sales and use taxes at a rate of seven-eighths of one percent (7/8%). Mayor Wilson said that he strongly recommended this item, not as a revenue raising device but rather as a compromise. House Bill 13 was passed at the state legislature authorizing local governments by their option and by their consent to raise the sales tax by 1/8 of one cent which would then go to a state-wide pool to provide money for the suburban cities that have not benefited directly from the point-of-sale distribution that has existed in the past.
This program would initiate a five-year phase in which would eventually give a 50-50 split on population versus point-of-sale distribution. There is a hold harmless agreement so that Salt Lake City would not lose what they have now. The Mayor said that he did not like recommending this option, but facing the political realities of the state legislature, either this is passed or else the money may be taken away from Salt Lake City and a good deal of the sales tax will be lost. The Utah Taxpayers’ Association did not oppose this particular item.
Councilmember Davis asked what the cities adjoining Salt Lake City had done. Mayor Wilson said that to his knowledge these cities were proceeding with the increase and he felt that a lot of cities were waiting for Salt Lake City’s decision. Councilmember Shearer suggested that an amendment be made to the proposed ordinance that the passage of this ordinance be conditioned upon the passage of ordinances increasing the local option sales tax to 7/8% by all local government units in Utah, Salt Lake, Davis and Weber counties. If any city, town or county within these counties fails, before the close of business on May 31, to notify the state tax commission of its determination to distribute part of its sales tax by other means than point of sale or use, as required by H.B. 13 of 1983, the Mayor shall withhold such notification on behalf of Salt Lake City and shall return this ordinance to the Salt Lake City Council for its further consideration. Councilmember Shearer said she was concerned that if not all the members in Salt Lake’s trading area join in the pool they may use this as a competitive advantage against Salt Lake City. She said that she did not want to see Salt Lake City merchants hurt by merchants in other areas advertising that they are cheaper than Salt Lake.
Councilmember DePaulis asked what would happen if not all municipalities participated. Mayor Wilson said that if major municipalities refused to participate it could destroy the concept because the pool would not flourish. Mayor Wilson said that Councilmember Shearer’s amendment would allow a very small town to determine Salt Lake City’s decision. Mayor Wilson suggested that the Council pass the ordinance and then follow the option of reviewing the ordinance every three months. He said that if in the next three months other major cities do not join then the ordinance could be repealed.
Councilmember Shearer said that her amendment allowed the ordinance to be brought back to the Council for further consideration at which time it could be passed if it is felt that those cities not participating would not be detrimental to Salt Lake City’s business. Ms. Shearer felt that Salt Lake City should be the last City to participate and felt this would be the best way to urge others to participate.
Councilmember Whitehead suggested that just the major shopping areas be considered in Councilmember Shearer’s amendment. He did not think that Salt Lake should base their decision on the decision of a small town. Councilmember Shearer said that the Council could consider a dollar amount of what a city collects in sales tax to determine which cities would be important to Salt Lake. Councilmember Whitehead said that he was in favor of the sales tax because of possible complications if it is not approved. He did not want to see Salt Lake’s decision based on a small town.
Councilmember Mabey figured that the increase would add an additional $1.25 to a $1,000 purchase; he felt that people would not drive out of their way to save such a small amount. Councilmember Shearer felt the same way but reiterated that merchants in non-participating cities might use the higher sales tax to advertise against shopping in Salt Lake City. Councilmember DePaulis suggested that the determining factor be a majority of the cities. Councilmember Shearer said that the major cities could decide not to participate and there could still be a majority; without the major cities Salt Lake would be hurt. Mayor Wilson reiterated that the City has the option every three months to reconsider this ordinance. He also reiterated that the best way to handle this situation would be to pass the ordinance and then review it in three months. Councilmember Whitehead agreed that evaluating the ordinance in three months would perhaps be the best thing to do. Mayor Wilson said that Salt Lake City’s leadership would be weakened if the ordinance is not passed since the City fought four years for this legislation. Councilmember Davis indicated that the three-month option for review was not specified in the ordinance. Roger Cutler said that the statute provides that changes can be made on a quarterly basis. This is not in the ordinance because if it is adopted it will be an on-going program but the Council can repeal or modify the ordinance on a quarterly basis.
Councilmember Whitehead said that this ordinance would not be voted on every three months, only in the event that there is a change. Councilmember DePaulis asked why the City would want to discontinue participation after three months if they fought four years for this legislation. Mayor Wilson said that if a large number of major cities use this as a marketing gimmick against Salt Lake then the City might want to consider not participating. Councilmember Shearer said that if a significant number of people decide not to shop in Salt Lake City then it might affect the 3/4% which is guaranteed by the bill. If the normal number of shoppers do not come to Salt Lake then the City would not get the 3/4%. Ms. Shearer thought that a significant number of people might be led to shop in other cities because of advertising. She felt that Salt Lake needed protection against other cities not participating and possibly hurting Salt Lake’s basic sales tax base.
Councilmember Shearer moved and Councilmember Davis seconded to amend the ordinance so that the passage of this ordinance be conditioned upon the passage of ordinances increasing the local option sales tax to 7/8% by all local government units in Utah, Salt Lake, Davis and Weber counties. If any city, town or county within these counties fails, before the close of business on May 31, to notify the state tax commission of its determination to distribute part of its sales tax by other means than point of sale or use, as required by H.B. 13 of 1983, the Mayor shall withhold such notification on behalf of Salt Lake City and shall return this ordinance to the Salt Lake Council for its further consideration, which motion failed, all members voting nay except Council Members Shearer, Davis and Parker who voted aye.
Councilmember DePaulis moved and Councilmember Mabey seconded to adopt Ordinance 28 of 1983, relating to local option sales and use taxes; providing for the levy and collection of sales and use taxes at a rate of seven-eighths of one percent (7/8%), which motion carried, all members voting aye except Council Members Parker, Davis and Shearer who voted nay.
Councilmember Shearer reiterated that she thought Salt Lake City should be the last to commit to this increase. Councilmember Whitehead said that he wanted to reconsider this ordinance in three months when the Council knows which cities have voted to participate. Mayor Wilson hoped that the Council Members who voted against this increase understood the implications of the vote. He indicated that if the ordinance had been rejected the City would have been vulnerable to a political onslaught and would have lost far more with a negative vote than a favorable vote. Councilmember Davis supported Councilmember Shearer’s recommendation and indicated that she felt as strongly about participation by other cities as Mayor Wilson felt about Salt Lake City’s participation. Councilmember Fonnesbeck felt that Salt Lake City should not relegate its authority on decisions to small towns. Councilmember Whitehead reiterated that the Council can reconsider this ordinance in three months.
Councilmember Davis moved and Councilmember Shearer seconded to place this matter on the Council agenda for the first meeting of July for purposes of review, which motion carried, all members voting aye except Councilmember Fonnesbeck who abstained from voting and Councilmember DePaulis who voted nay.
(O 83-17)
OFFICE OF THE MAYOR
#1. RE: Salt Lake Art Design Board.
RECOMMENDATION: Reappoint Virginia Frobes-Wetzel.
DISCUSSION: The term of Virginia Frobes-Wetzel on the Salt Lake Art Design Board recently expired. It is recommended that she be reappointed for another term. Her disclosure statement is on file in the recorder’s office.
Councilmember Davis moved and Councilmember Shearer seconded to approve the reappointment of Virginia Frobes-Wetzel to the Salt Lake Art Design Board, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(I 82-22)
#2. RE: Amendment to the Salt Lake City Budget for Fiscal Year 1982-83.
RECOMMENDATION: Set a date for a public hearing for June 7, 1983 at 6:30 p.m. to consider amendments to the 1982-83 budget.
DISCUSSION: The major point of discussion will be to correct some prior-year problems in the capital projects fund as discussed in the City’s Comprehensive Annual Financial Report (CAFR). Detail of this, other departmental requests, and emergency items will be distributed to the Council to clarify all the information in the budget amendment request.
Councilmember Davis moved and Councilmember Shearer seconded to schedule a public hearing for June 7, 1983 at 6:30 p.m. for consideration of items to amend the Salt Lake City Budget for Fiscal Year 1982-83, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(B 82-4)
PUBLIC UTILITIES
#1. RE: Interlocal license agreement for installation and maintenance of gauging stations.
RECOMMENDATION: That the Council approve the interlocal agreement and authorize the Mayor and City Recorder to sign on behalf of Salt Lake City.
DISCUSSION: Salt Lake County wanted to continue to monitor the flows of the streams and major canals within Salt Lake County at locations originally utilized by the United States Geological Survey under a previous agreement with Salt Lake City Corporation. This agreement would permit Salt Lake County to continue the monitoring program already established.
Councilmember Davis moved and Councilmember Shearer seconded to adopt Resolution 50 of 1983 authorizing the execution of an interlocal agreement between Salt Lake City Corporation and Salt Lake County for installation and maintenance of gauging stations, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(C 83-171)
PUBLIC HEARINGS
Industrial Revenue Bond for Pierpont Plaza.
RE: An inducement resolution changing the name of Commercial Concepts to Pierpont Plaza, Ltd., and increasing the amount of authorized funds from $2,000,000 to $3,500,000 subject to the following conditions: That the City Attorney approve the resolution as to form, that the application meet all necessary financial requirements of the City, and that Pierpont Plaza, Ltd. pay the established non-refundable fee for processing. The original inducement resolution was to finance the acquisition, restoration, refurbishing and improving of the old Salt Lake High School for offices and retail stores in a complex to be known as Pierpont Plaza. The original application was submitted and approved by the planning and zoning commission.
A public hearing was held at 6:30 p.m. to discuss this matter. Lance Bateman, city controller, said that the original inducement resolution approved by the Council was under the name of Commercial Concepts. The new inducement resolution indicates a change in partnerships and a change in the amount of money from $2,000,000 to $3,500,000. Finance and planning have reviewed this request and have given favorable recommendations. Roger Cutler, city attorney, said that he has reviewed this paperwork and it is in order. No one from the audience addressed this issue.
Councilmember Shearer moved and Councilmember Davis seconded to close the public hearing, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken. Councilmember Parker said that the budget/finance and administration committee unanimously recommended approval on this issue.
Councilmember Shearer moved and Councilmember Davis seconded to adopt Resolution 47 of 1983 authorizing and inducing the execution of a memorandum of agreement with Pierpont Plaza, Ltd., a Utah limited partnership, regarding the issuance of Industrial Development Revenue Bonds for a commercial project, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(Q 83-14)
Industrial Revenue Bond for Boyer-Jacobsen Airport East Partnership.
RE: An inducement resolution for an Industrial Revenue Bond in the amount of $5,000,000, subject to the following conditions: That the City Attorney approve the resolution as to form, that the application meet all necessary financial requirements of the City, that Boyer-Jacobsen pay the established non-refundable fee for processing. The project consists of two buildings for office development and will be built on property already owned by Boyer-Jacobsen at 1950 West North Temple. One building is started and almost complete with 50% occupancy, the second building will be started by May 1, 1983. The application was submitted to the planning director whose report is included with the application.
A public hearing was held at 7:00 p.m. to discuss this matter. Lance Bateman said that this application has been reviewed and it is presented with a favorable recommendation from finance and planning. Mr. Bateman said that the City Attorney needed to review the final legal document. John Ashton, bond counsel, said that the applicant is Boyer-Jacobsen Airport East Partnership, a Utah limited partnership; the general partner is Airport East Joint Venture, a Utah general partnership. The limited partners will be potential tenants and owners of these buildings.
Mr. Ashton said that the project is two commercial office buildings located in Airport East Business Park at approximately 1950 West North Temple. The project is designed to attract local, regional, and national tenants into the Salt Lake City area and it is projected to employ approximately 330 to 350 employees with a projected payroll as high as $8 to $9 million annually.
Mr. Ashton said that the bonds are in the amount of $5,000,000 and will be 25- to 30-year bonds with a ten-year call. The underwriter for the bonds will be through the Salt Lake Company of Bonneville Mortgage and the bonds will be guaranteed by Mutual of New York Mortgage Investors. A local trustee will be appointed by the applicants with the consent of the underwriter. No one from the audience addressed this issue. Councilmember Whitehead said that there had been a problem with fires in this area because of the open fields. He felt that this project would curb the fire problem. Mr. Whitehead said that the building which has already been constructed is attractive and the industrial park will be complimentary to that neighborhood. Councilmember Parker said that the budget/finance and administration committee has unanimously recommended approval of this project.
Councilmember Whitehead moved and Councilmember Mabey seconded to close the public hearing, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
Councilmember Whitehead moved and Councilmember Shearer seconded to adopt Resolution 46 of 1983 approving an inducement resolution for Industrial Revenue Bonds in the amount of $5,000,000 for Boyer-Jacobsen Airport East Partnership, which motion carried, all members voting aye except Councilmember DePaulis who was absent when the vote was taken.
(Q 83-13)
Employee Compensation Plan.
RE: Update of compensation plan of Salt Lake City employees. The compensation plan update contains primarily minor changes in wording in two sections. It is proposed to change the titles only of several executives and delete two positions from the executive pay plan. The only major change is a request to place the City treasurer on the executive pay plan. As this is a statutory office it requires a public hearing.
A public hearing was held at 7:15 p.m. to discuss this issue. Leigh von der Esch, executive director of the Council, said that if any changes to this recommendation were contemplated then the hearing should be continued to June 14. This item should be placed under unfinished council business on the June 7 agenda so that if changes are made the hearing can be held on June 14. Alan Bridge, personnel director, said that this hearing had not been published in the newspaper seven days before this meeting so for that reason Mr. Bridge recommended that the hearing be continued.
Mr. Bridge outlined the recommended changes to the compensation plan. He said that basically most of the changes are minor. It is recommended that wording be changed because of changes in the executive pay plan and also that extraneous wording be eliminated. The most major change is in the appendix on executive positions. It is recommended that two positions be eliminated from the executive pay plan, title changes be made to other positions, and the city treasurer position be added to the executive plan. Councilmember Davis asked if the Mayor’s salary as listed was existing or proposed. Mr. Bridge said that it was the existing salary and if any changes were contemplated to that salary the hearing would need to be continued to discuss the change. Mr. Bridge said that the positions recommended for deletion are management operations officer and airport deputy director of maintenance. The position of director of OBMP title is recommended to change to administrative services director. No one from the audience addressed this issue.
Councilmember Shearer moved and Councilmember Davis seconded to continue the public hearing to June 14, 1983, which motion carried, all members voting aye.
(O 83-19)
CITIZEN COMMENTS
#1. John Renteria said that he appreciated the opportunity to apply for funding for the Centro Civico project. He expressed his disappointment about not receiving funds for the project. He asked if the Council’s commitment from last year for $10,000 would still be met since the project coordinators have met all the requirements. Stephanie Loker, planning and zoning, said the money could be released as soon as the plans are submitted and the building permit is received.
Mr. Renteria said that he realized the difficult position of the Mayor and Council in deciding what projects are to receive funding. He said that there were emotional aspects involved in this experience, the appropriation process, which bear heavily on the concept of El Centro project. Mr. Renteria also said that people do not have to live on the west side to benefit by a future park in the area; he said that many people are impacted by the concept. Mayor Wilson said that through Mr. Renteria’s efforts he has built a constituency in favor of the Centro Civico project. He told Mr. Renteria not to get discouraged because some projects take several years. Mr. Renteria indicated that he would continue to pursue this project.
This meeting adjourned at 9:00 p.m.