PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
TUESDAY, SEPTEMBER 28, 1982
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN REGULAR SESSION ON TUESDAY, SEPTEMBER 28, 1982, AT 6:00 P.M. AT GLENDALE INTERMEDIATE SCHOOL, 1430 ANDREW AVENUE.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: GRANT MABEY PALMER DEPAULIS SYDNEY R. FONNESBECK IONE M. DAVIS.
Mayor Ted Wilson was present at this meeting.
Council Chairperson Sydney R. Fonnesbeck presided at and conducted this meeting.
Approval of Minutes:
Councilmember Davis moved and Councilmember DePaulis seconded to approve the minutes of the regular meeting of the Salt Lake City Council for the meeting held Tuesday, September 21, 1982, which motion carried, all members present voting aye.
(M 82-2)
DEPARTMENTAL BUSINESS
OFFICE OF THE MAYOR
#1. RE: $353,000 Special Assessment Bonds, Series 1982 Special Improvement District Curb and Gutter Extension No. 38-622.
Cheryl Cook, City Treasurer, read a letter addressed to the Council from Albert Haines (this letter is on file in the Office of the City Recorder). The letter stated that the apparent low bidder for the purchase of the $353,000 Special Assessment Bonds, Series 1982 Special Improvement District Curb and Gutter Extension No. 38-622, dated October 1, 1982, was the bid submitted by Burrows Smith/Bache. The Burrows Smith/Bache bid was submitted in compliance with all provisions contained in the Official Notice of Sale and was accompanied with a certified good faith check in the amount of $7,060. The bid of Dam Bosworth Incorporated did not include the $7,060 good faith check as specified in the Official Notice of Bond Sale and as such was not a valid bid.
Mr. Haines recommended that the City Council award the $353,000 Special Assessment Bonds, Series 1982 Special Improvement District Curb and Gutter Extension No. 38-622 to Burrows Smith/Bache at a net effective interest rate of 9.9385%. Councilmember Fonnesbeck asked why there was no check with the Dam Bosworth bid. Ms. Cook stated that the check and the bid had been mailed to Burrows Smith’s old address and had not been received. Mr. Richard Fox, Fox, Edwards & Gardiner, distributed a letter outlining the details (this letter is on file in the Office of the City Recorder). The Council did not discuss this matter further.
Councilmember Mabey asked if the adjustment, discussed at an earlier time, had been made; it had been discussed that the city would subsidize towards the interest rate. Ms. Cook distributed a letter regarding this question; the letter addressed the interest cost difference between the 7% interest rate being assessed the property owners and the 9.93% interest rate on the bonds (this letter is on file in the Office of the City Recorder). Richard Fox stated that this bond resolution is different in that there is a special covenant covering the interest shortfall; the city agrees with the bond holders to pay the difference out of a Guaranty Fund.
Councilmember Mabey moved and Councilmember DePaulis seconded to adopt Resolution 88 of 1982, confirming the sale of the $353,000 Special Assessment Bonds, Series 1982 Special Improvement District Curb and Gutter Extension No. 38-622 to Burrows Smith/Bache at a net effective interest rate of 9.9385%; and also adopt Resolution 89 of 1982, authorizing the issuance and providing for the sale of bonds and continuance of the Guaranty Fund Levy, which motion carried, all members present voting aye.
(Q 82-3)
#2. RE: A resolution approving the transfer of $45,000 from the General Fund Contingency to the Public Works Department to establish a trust fund to pay the costs of sampling wells at the Rose Park Waste Disposal Area. Councilmember Mabey asked if all the legalities had been worked out so if this was approved Amoco would still be held accountable if a problem should occur. Paul Barber, Mayor’s Office, stated that an agreement has not been reached with Amoco concerning the language which needs to be inserted into the interlocal cooperation agreement to protect the city’s liability; this is still being negotiated.
Councilmember Mabey thought the Council should only approve this based on that language. Mr. Barber thought it would be fine if it was an approval of the agreement in substance with final approval subject to the City Attorney inserting language into the agreement which specifies that the city will not stand alone if the containment structure fails to contain the sludge as required by law. Mr. Barber stated that there were two resolutions before the Council. One was to approve the interlocal agreement and the other was to appropriate the money.
Councilmember Mabey moved and Councilmember DePaulis seconded to adopt Resolution 90 of 1982, approving the transfer of $45,000 from the General Fund Contingency to the Public Works Department to establish a trust fund to pay the costs of sampling wells at the Rose Park Waste Disposal Area, which motion carried, all members present voting aye.
(C 82-583)
#3. RE: A resolution authorizing the execution of an interlocal cooperation agreement between Salt Lake City Corporation, Salt Lake City/County Health Department, Utah State Department of Health, United States Environmental Protection Agency, and Amoco Oil Company.
Councilmember DePaulis moved and Council Davis seconded to adopt Resolution 91 of 1982, authorizing the execution of the interlocal cooperation agreement subject to the following language: Approve the agreement in substance with final approval subject to the City Attorney inserting language into the agreement which specifies that the city will not stand alone if the containment structure fails to contain the sludge as required by law, which motion carried, all members present voting aye.
(C 82-582)
The meeting adjourned at 6:30 p.m.