D A T E T U E S D A Y N O V E M B E R 15, 2016
THE SALT LAKE COUNTY COUNCIL, STATE OF UTAH, MET ON TUESDAY, NOVEMBER 15, 2016, PURSUANT TO ADJOURNMENT ON TUESDAY, NOVEMBER 8, 2016, AT THE HOUR OF 4:07:33 PM, AT THE SALT LAKE COUNTY GOVERNMENT CENTER, 2001 SO. STATE STREET, ROOM N1-110, SALT LAKE CITY, UTAH.
COUNCIL MEMBERS
PRESENT: JENNIFER WILSON
RICHARD SNELGROVE
JIM BRADLEY
ARLYN BRADSHAW
MICHAEL JENSEN
AIMEE WINDER NEWTON
SAM GRANATO
STEVEN DEBRY
MAX BURDICK, Chair
OTHERS IN ATTENDANCE: BEN MCADAMS, MAYOR
By: LORI BAYS, DEPUTY MAYOR
COUNCIL MEETING
SIM GILL, DISTRICT ATTORNEY
By: RALPH CHAMNESS, DEPUTY DISTRICT ATTORNEY
PLANNING & ZONING MEETING
By: ZACHARY SHAW, DEPUTY DISTRICT ATTORNEY
JASON ROSE, LEGAL COUNSEL, COUNCIL OFFICE
SHERRIE SWENSEN, COUNTY CLERK
By:GAYELENE GUDMUNDSON & KIM STANGER, DEPUTY CLERKS
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Council Member Burdick, Chair, presided.
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Ms. Sally Jacobsen led the Pledge of Allegiance to the Flag of the United States of America.
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Council Member Burdick opened the meeting by offering condolences to the family of Police Officer Cody Brotherson who was hit by a stolen car while laying out spike strips. A minute of silence was held to honor Officer Brotherson.
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Council Member Bradshaw, seconded by Council Member Jensen, moved to approve the minutes of the Salt Lake County Council meeting held on Tuesday, November 1, 2016. The motion passed unanimously, showing that all Council Members present voted “Aye.”
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Mr. Mark Elieson spoke under “Citizen Public Input” requesting the $1.5 million set aside to provide services to the new townships be transferred out of the General Fund into the Municipal Services Fund. He stated he met with a group of newly elected township officers and they all agreed to this request. Additional requests relating to the newly established townships will be forthcoming.
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Ms. Alexandra Eframo spoke under “Citizen Public Input” requesting that Council agendas be available to the public no later than 3:45 p.m. She also talked about the budget request to encourage economic development in Salt Lake County. She is still upset that the Council voted to deny the Community Development Area for Facebook. Also, the Council should have listened to citizens in regards to the $9.4 million bond that was paid off, but the Council voted to continue the tax.
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Mr. Steve Van Maren spoke under “Citizen Public Input” regarding the Utah State website for public notice of meetings. He stated he did not receive the notifications he signed up for and had to contact the State administrator to start receiving them again. He asked if the Central Wasatch Commission interlocal agreement that will be discussed during the special meeting to be held on November 8, 2016, at 6 p.m., will be the same version that was submitted to the Council on October 4, 2016.
Council Member Newton stated yes.
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Mr. Kevin Jacobs, County Assessor, submitted a letter requesting that a refund in the amount of $393.74 be issued to U.S. Bank National Association for overpayment of personal property taxes on property identified as Tax Roll #01B079175/7516. Taxes were erroneously paid on equipment located in Davis County.
Council Member Bradshaw, seconded by Council Member Jensen, moved to ratify the vote taken in the Committee of the Whole meeting. [Council Member Jensen, seconded by Council Member Granato, moved to approve the tax matter and forward it to the 4:00 p.m. Council meeting for formal consideration. The motion passed unanimously. Council Members DeBry and Bradshaw were absent for the vote.] The Council motion passed
unanimously, authorizing the County Treasurer to effect the same, showing that all Council Members present voted “Aye.”
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THIS BEING THE TIME heretofore set for a public hearing to receive public comments regarding the issuance of $14,000,000 of College Revenue Refunding Bonds (Westminster College project).
Council Member Jensen, seconded by Council Member Bradley, moved to open the public hearing. The motion passed unanimously, showing that all Council Members present voted “Aye.”
Mr. Steve Van Maren requested additional information regarding this bond.
Mr. Eric Hunter, Chapman and Cutler, stated this is a refunding bond for Westminster College, which will be issued through the County in order to receive tax exemption status. This will save Westminster College 8 percent or more on the outstanding obligations. The resolution authorizes up to $14 million, with a maximum interest rate of 5.5 percent for 13 years.
Ms. Alexandar Eframo stated the County needed to be more transparent in its dealings. She asked how much this bond would cost individual homeowners.
Council Member Bradshaw stated there will be no cost to property owners. All costs will be borne by Westminster College. The County is just the conduit to help with financing. Westminster College pays the County a fee to do this.
Council Member Jensen, seconded by Council Member DeBry, moved to close the public hearing and approve the following resolution.
RESOLUTION NO. 5136 DATE: November 15, 2016
A Resolution authorizing the issuance of up to $14,000,000 of College Revenue Refunding Bonds (Westminster College Project), Series2017, of Salt Lake County, Utah, for the Purpose of refunding the Issuer’s College Revenue and Refunding Bonds (Westminster College Project) Series 2007; Authorizing the execution and delivery of a Trust Indenture, a Loan Agreement, a Bond Purchase Agreement, an Escrow Agreement, and a Tax Exemption Certificate and Agreement in connection with the Bonds; approving an Official Statement to be distributed in connection with the sale of such Bonds; providing for the publication of a Notice of Bonds to Be Issued and for the running of a contest period, and designating the times and place where a copy of the proceedings authorizing the issuance of the bonds may be examined; and providing for related matters.
Whereas, pursuant to the Utah Industrial Facilities and Development Act, Title11, Chapter 17, Utah Code Annotated 1953, as amended (the “Act”), Salt Lake County, Utah (the “Issuer”) is authorized to issue revenue bonds for the purpose of defraying the cost of financing, acquiring, constructing, improving, maintaining, equipping, furnishing or funding any “project” (as defined in the Act) and to secure the payment of the bonds as provided in the Act; and
Whereas the Issuer desires to authorize the issuance of its College Revenue Refunding Bonds (Westminster College Project), Series2017 in a principal amount of up to $14,000,000 (the “Bonds”) in accordance with the provisions of the Act and to loan the proceeds from the sale of the Bonds to Westminster College, a Utah nonprofit corporation (the “College”) for the purpose of refunding the Issuer’s College Revenue and Refunding Bonds (Westminster College Project) Series 2007 (the “Refunded Bonds”) and paying costs of issuance of the Bonds; and
Whereas it is necessary to authorize the execution and delivery of an Indenture of Trust, dated as of January 1, 2017 (the “Indenture”), between the Issuer and Wells Fargo Bank, National Association, as trustee (the “Trustee”), to secure the Bonds; and
Whereas it is necessary to authorize the execution and delivery of a Loan Agreement, dated as of January 1, 2017 (the “Loan Agreement”), between the Issuer and the College to provide for the loan and application of the proceeds of sale of the Bonds and the repayment of the Bonds; and
Whereas it is necessary to authorize the execution and delivery of a Bond Purchase Agreement (the “Bond Purchase Agreement”), among the Issuer, the College and KeyBank Capital Markets Inc. (the “Underwriter”) providing for the purchase of the Bonds by the Underwriter; and
Whereas it is necessary to authorize the execution and delivery of a Tax Exemption Certificate and Agreement, to be dated the date of the delivery of the Bonds, by and among the Issuer, the College and the Trustee (the “Tax Agreement”), and an Escrow Agreement among the Trustee, the Issuer and the College (the “Escrow Agreement”); and
Whereas the County Council has reviewed the form of the Preliminary Official Statement (the “Preliminary Official Statement”) circulated in connection with the sale of the Bonds, and the Official Statement for the Bonds (the “Official Statement”) will be in substantially the form of the Preliminary Official Statement with such changes as are necessary to conform to the final provisions of the Bonds, the Indenture and the Loan Agreement, and the County Council considers it necessary and desirable to approve the Preliminary Official Statement and to authorize the execution and distribution of the Official Statement; and
Whereas the Act and all documents to be signed by the Issuer provide that the Bonds are not secured by the full faith and credit or the taxing power of the Issuer, the State of Utah or of any political subdivision thereof, do not constitute or give rise to a pecuniary liability of the Issuer or a charge against the general credit or taxing power of the Issuer or the State of Utah or any political subdivision thereof and are payable solely out of the payments to be made by the College under the Loan Agreement; and
Whereas it is desirable to publish a Notice of Bonds to Be Issued pursuant to Section11-17-16 of the Act; and
Whereas the County Council deems it necessary and advisable to proceed with the transactions as above described, including the issuance and sale of the Bonds;
Now, Therefore, Be It Resolved by the County Council of Salt Lake County, Utah, as follows:
Section1. Findings. Pursuant to the provisions of the Act and based upon representations and information furnished by the College to the Issuer, it is hereby found, determined and declared as follows:
(a) It is deemed necessary, desirable and in the best interests of the Issuer for the purpose of refunding the Refunded Bonds and paying costs of issuance of the Bonds, that the Issuer issue Bonds pursuant to the Indenture and loan the proceeds of the Bonds to the College as provided in the Loan Agreement.
(b) The payments required to be made by the College pursuant to the Loan Agreement are sufficient to enable the County to pay timely the principal of and interest on the Bonds.
Section2. Authorization of Bonds and Indenture. The Bonds are hereby authorized and ordered to be issued by the Issuer pursuant to the Indenture for the purposes described above. The Bonds shall be dated the date of original issuance and delivery thereof and shall bear interest payable on each April 1 and October 1, commencing April 1, 2017, or on such other dates specified by the Designated Officer in the Bond Purchase Agreement, at the interest rates per annum determined by the Designated Officer pursuant to the Bond Purchase Agreement. The Bonds shall be in authorized denominations, shall be payable, and shall be executed and delivered all as provided in the Indenture. The Bonds shall be in fully-registered form, shall be payable at the times, places, manner and from the sources, shall be executed by the officers of the Issuer and shall contain such provisions, all as provided in the Indenture, as executed and delivered. The Bonds shall be executed, authenticated and delivered as provided in Article II of the Indenture.
The Mayor and the County Clerk or any Deputy County Clerk (collectively, the “County Clerk”) are hereby authorized and directed to execute and deliver the Indenture, in substantially the form attached hereto as Exhibit A and containing substantially the terms and provisions set forth therein with such insertions, deletions, changes, omissions and variations as the Mayor may deem appropriate (such approval by the Mayor of any such changes shall be conclusively established by the execution of the Indenture by the Mayor).
The Bonds may be registered to and held by The Depository Trust Company or its nominee or other securities depository, and the Issuer is hereby authorized to enter into the standard letter of representations or other standard document required by such securities depository, and make such other arrangements with such securities depository from time to time as needed.
For purposes of this Resolution, “Designated Officer” means the Mayor or any other officer or employee of the County who is duly authorized to execute contracts, obligations or other documents of the County.
There is hereby delegated to the Designated Officer, subject to the limitations contained in this Resolution, the power to determine and effectuate the following with respect to the Bonds:
(a) the principal amount of the Bonds necessary to accomplish the purpose of the Bonds set forth in the preamble to this Resolution and the aggregate principal amount of the Bonds to be executed and delivered pursuant to the Indenture and this Resolution; provided that the aggregate principal amount of the Bonds shall not exceed $14,000,000;
(b) the maturity date or dates and principal amount of each maturity of the Bonds to be issued; provided, however, that the Bonds shall mature over a period of not to exceed 13 years from their date or dates;
(c) the interest rate or rates of the Bonds, provided, however, that the interest rate or rates to be borne by any Bond shall not exceed 5.5% per annum and shall be such that the refunding of the Refunded Bonds by the issuance of the Bonds shall provide net present value savings of at least 8%;