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Home » City Government » Council » Minutes Archives; 2000 - 2003 » 2001 Council Minutes » July 10, 2001
July 10, 2001
The Lindon City Council held a special meeting on Tuesday, July 10, 2001 beginning at 5:30 P.M. in the Lindon City Council Chambers at 100 North State Street, Lindon, Utah.
Conducting: Larry A. Ellertson, Mayor
Pledge of Allegiance: Larry A. Ellertson, Mayor
Invocation: James Dain
PRESENT
Larry A. Ellertson, Mayor
Jeff Acerson, Councilmember
Toby Bath, Councilmember
Lindsey Bayless, Councilmember
James A. Dain, Councilmember
Jerald I. Hatch, Councilmember
Ott H. Dameron, City Administrator
Venla Gubler, Administrative Clerk
Gordon Duval, City Attorney
ABSENT
The meeting began at 5:36 P.M.
MINUTES
Review of the Minutes of June 19, 2001.
A review of the Minutes of the regular meeting of June 19, 2001 was held. The following corrections were made:
Page 9, Line 11: Replace the word “if” after the word “commercially” to the word “in.”
Page 9, Line 41: Delete the “n” in the word “an” to make the word “a.”
Page 11, Line 25: Add the word “be” before the word “piped.”
Page 12, Line 14: Delete the “ING” from the word “MEETING.”
Page 13, Line 19: Delete the word “be” after the word “may.”
Page 13, Line 26: Add the letters “ing” to the word “bother.”
Page 14, Line 7: Add an apostrophe to the word “neighbors” to make it “neighbor’s.”
Page 14, Line 14: Add a comma after the word “agreement.”
Page 16, Line 15: Add the word “pathway” before the word “profile.”
Page 16, Line 17: Add the word “just” before the word “bonded.”
Page 17, Line 30: Delete the word “the” before the word “utility.”
Page 19, Line 9: Add an “s” to the end of the word “Councilmember.”
Page 19, Line 10: Add a comma after the word “property.”
Page 19, Line 13,14: Replace the misspelled word “disucssion” with the word “discussion.”
Page 20, Line 14: Add the word “a” before the word “representative.”
Page 20, Line 19: Delete the phrase “had been sent.”
Page 20, Line 29: Add a “d” to the end of the word “hope.”
Page 20, Line 40: Replace the comma at the end of the sentence with a period.
Page 21, Line 30: Add a space between the word “June” and the number “15.”
COUNCILMEMBER HATCH MOVED TO APPROVE THE MINUTES OF THE REGULAR MEETING OF JUNE 19, 2001 AS CORRECTED. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
OPEN SESSION - Citizens Comments
There was no comment from the public.
MAYOR’S COMMENTS/REPORT
The Mayor had no report.
CONSENT AGENDA
There were no items.
CURRENT BUSINESS
1. Review and Action - SID Bond Resolution, Assessment Ordinance and Associated Documents. Jason Burningham, financial advisor, will be present to give the Council the final documentation for the issuance of the SID bonds for the Lindon Gateway Center and surrounding streets. Documents include the bond resolution, the assessment ordinance and a waiver and consent form signed by each of the three property owners to be assessed.
It was noted that Mr. Jason Burningham had not yet arrived. Mr. Dameron explained that Mr. Burningham had a prior meeting in Pleasant Grove and would be arriving shortly. Mr. John Thackeray commented that he had some peripheral issues to discuss and maybe this would be the time, since Mr. Burningham was delayed.
Mr. Thackeray observed that the new road configuration–widening the exit–would require new UDOT approvals to either move or rebuild the park and ride or lose the landscaping on the west side of Lindon Parkway Drive. Mayor Ellertson asked if the park and ride could be incorporated into the parking lot. Mr. Dameron reminded the Council that a “hook-ramp” had been requested in this spot previously. Mr. Thackeray agreed and mentioned that UDOT had not approved that request.
Mr. Dameron mentioned that there was a meeting on Monday, July 16, 2001 with Fehr and Peers, Traffic Engineers, UDOT, and FHWA concerning the improvements to the entrance and exit to the park. This may be the time to discuss this matter. Mr. Thackeray was invited to attend the meeting at 1:00 P.M. to be held at the Lindon City Center. Mr. Thackeray mentioned that the vacation of 800 West where it curves to the east also needed to be approved by UDOT. Mayor Ellertson observed that 800 West would be a city issue not a UDOT issue.
Mr. Thackeray stated that he was prepared to request the RDA for a release of bond proceeds. He said that he would be requesting two drawdowns, the first of which would exclude an amount equal to the estimated cost of the additional improvements and/or the contingency fund amount for the SID. After the Board of Equalization hearings in August and the protest period has passed, and after the SID construction is underway to the point where the City and the developers can see that there will be no further need for the contingency fund, the second draw will be submitted. The Mayor clarified the developer’s intentions. Mr. Dameron commented that this approach seemed reasonable.
Mr. Dameron introduced the bond resolution for the Gateway SID project. He informed the Councilmembers that the proceeds from the sale of the bonds would net the City $1.966 million with which to construct improvements. He reported that the bonds would be repaid in annual payments of which the 2002 payment would be interest only, and the interest and principle payments would become due in 2003. He observed that this would allow time for the tax increment to increase due to increased property values. The administration agreement approved on June 26, 2001 allowed for the sharing of the costs of issuance and administration. He pointed out the property owners signatures on the waiver and consent forms, including Mr. Thackeray for the Lindon Gateway LLC, Mr. Conroe for Exodus Communications, and Mr. Yarro for the Canopy Group. The waiver and consent forms agreed to the issuance of $2.4 million in bonds.
Mr. Dameron observed that the only question to be determined is the cost distribution in the “buckets” or the prioritization of costs. He reported that the Mayor, himself, Mr. Johansen, Mr. Thackeray, and Mr. Burningham had met to determine the priorities of the project. These had been included in the waiver and consent forms as Exhibit “C.”
Councilmember Bayless commented that the proposed agreement drawn up by Mr. Thackeray’s attorney between the city and Johansen/Thackeray was at variance to Exhibit “C”. Mr. Thackeray explained that the variable was a result of his reciting the conversation from memory to his attorney. He agreed with Exhibit “C.” Mr. Dameron noted the differences between his own worksheet and the bond resolution. He had the net amount as $1.9 million instead of $1.966 million. He also had listed the landscaping before the road improvements. Mr. Thackeray indicated that this was not an issue. Mayor Ellertson commented that one improvement may need to be completed before the other. Mr. Dameron agreed that the roads are usually finished before any landscaping is done.
Mayor Ellertson asked about the lighting scheme. Mr. Dameron reported on the negotiations on the lighting scheme. He told the Council that the discussion with the developers was that the developers would submit a lighting plan for Council consideration, but the actual construction would happen as development occurs within individual site plans. Mayor Ellertson wondered if the priorities in the “third bucket” would then need to be changed and new consent and waiver forms signed. Mr. Dameron verified that the lighting would be priority #3 and the extension of the parkway would be priority #4. He commented that he did not feel that the property owners would be concerned about the priorities, just the total amount. Mr. Burningham agreed.
Mr. Dameron told the Council that the original agreement in 1989 with previous developers of this site had specified that all water rights acquired with property would be turned in to the City. After examination of the agreement, the interpretation was that this will fulfill the requirement for developmental water rights. Councilmember Acerson questioned the fact that no additional money would be tendered to make up the deficiency in the number of shares. Mr. Dameron concurred that the present water shares and water rights would be considered sufficient. Mr. Thackeray commented that the developers felt that there were improvements included in the SID that were outside the scope of the original RDA. They felt that the trade off on the water shares equaled the amount of the improvements. He asserted that one of the trades was paying for slip-lining of the sewer line in exchange for water shares. He observed that there were pros and cons for both sides in this arrangement.
Mayor Ellertson asked if there were any further questions. Mr. Dameron pointed out two changes in the bond resolution that had been delivered in the staff report. He verified with Mr. Burningham that the changes had been made at the bond purchaser’s request. Mr. Dameron read the original language and then the new language. Mayor Ellertson verified with Mr. Burningham that any redemption of bonds would be in $5,000 increments after the first $100,000 lump sum. Mr. Burningham clarified the clause to read that redemption would only occur in minimum $100,000 increments. He asserted that this was typically not an issue as bonds were usually only redeemed with a refinance.
Mr. Burningham noted that the original signatures on the consent and waiver forms would be needed for the final bond resolution closing transcripts. He informed the Council that the City would also need to sign. The closing has been scheduled for July 17, 2001. There was a discussion on overnight mail of these signatures.
Mayor Ellertson asked for clarification of page 20 where the clause outlines the conditions assigning the assessments to the owners of record and when the entire assessment was due and payable in full. There was a short discussion with City Attorney Gordon Duval, Mr. Burningham, Mayor Ellertson and Mr. Dameron on the default of a property owner precipitating an acceleration of the entire note on that parcel. Mayor Ellertson was concerned observed that this situation could result in the payment of an amount less than $100,000 to clear the bonds. Mr. Burningham acknowledged that careful administration of the SID would help cover any instances of negative arbitrage.
Mr. Dameron observed that two motions would be needed. First, the assessment ordinance, and second, the bond resolution would need to be approved. Mr. Thackeray asked if the reimbursement agreement would be approved tonight. Mr. Duval pointed out a wording change he would recommend in this agreement. He felt that the contingent funds needed to be clarified, not that the improvements were contingent on funding. Mr. Dameron asserted that all of the items for the project area which have been discussed here tonight will have to be done whether or not there are funds from the SID or RDA to cover those expenses. The Councilmembers and John Thackeray agreed that this is indeed the case. It was decided to change the wording in the reimbursement agreement drawn up by Mr. Thackeray’s attorney to conform to Exhibit “C” of the waiver and consent form and bring it back for the Council’s consideration after review by the city attorney.
COUNCILMEMBER DAIN MOVED TO APPROVE RESOLUTION 2001-5, A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $2,400,000 LINDON CITY, UTAH SPECIAL ASSESSMENT BONDS, SERIES 2001 (SPECIAL IMPROVEMENT DISTRICT NO. 2000-1) , FIXING THE INTEREST RATES TO BE BORNE THEREBY, PRESCRIBING THE FORM OF BONDS, MATURITY AND DENOMINATION OF SAID BONDS; CREATING A RESERVE FUND AS PROVIDED BY STATUTE, A BOND FUND, AND A CONSTRUCTION FUND; AND RELATED MATTERS. COUNCILMEMBER BATH SECONDED THE MOTION.
Mr. Burningham suggested that it was critical that the assessment ordinance be approved first. COUNCILMEMBER DAIN WITHDREW HIS MOTION. COUNCILMEMBER BATH WITHDREW HIS SECOND.
COUNCILMEMBER BATH MOVED TO APPROVE ORDINANCE 2001-6, AN ORDINANCE CONFIRMING THE ASSESSMENT ROLLS AND LEVYING AN ASSESSMENT AGAINST CERTAIN PROPERTIES IN LINDON CITY, UTAH SPECIAL IMPROVEMENT DISTRICT 2000-1, FOR THE PURPOSE OF CONSTRUCTING IMPROVEMENTS CONSISTING OF ROADWAY IMPROVEMENTS INCLUDING ASPHALT OVERLAY, CURB & GUTTER, SIDEWALK, STORM DRAIN PIPE, DRIVEWAY APPROACHES AND EARTHWORK AND ALL OTHER MISCELLANEOUS WORK NECESSARY TO COMPLETE THE IMPROVEMENTS IN A PROPER WORKMANLIKE MANNER; ESTABLISHING A DEBT SERVICE RESERVE FUND; ESTABLISHING THE EFFECTIVE DATE OF THIS ORDINANCE; AND RELATED MATTERS. COUNCILMEMBER HATCH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
COUNCILMEMBER DAIN MOVED TO APPROVE RESOLUTION 2001-5, A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $2,400,000 LINDON CITY, UTAH SPECIAL ASSESSMENT BONDS, SERIES 2001 (SPECIAL IMPROVEMENT DISTRICT NO. 2000-1) , FIXING THE INTEREST RATES TO BE BORNE THEREBY, PRESCRIBING THE FORM OF BONDS, MATURITY AND DENOMINATION OF SAID BONDS; CREATING A RESERVE FUND AS PROVIDED BY STATUTE, A BOND FUND, AND A CONSTRUCTION FUND; AND RELATED MATTERS. COUNCILMEMBER ACERSON SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
COUNCILMEMBER HATCH MOVED TO AUTHORIZE THE MAYOR TO SIGN THE WAIVER AND CONSENT FORMS ON BEHALF OF LINDON CITY. COUNCILMEMBER BAYLESS SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
COUNCILMEMBER DAIN MOVED TO ADJOURN AT 6:30 P.M. COUNCILMEMBER BATH SECONDED THE MOTION. ALL PRESENT VOTED IN FAVOR. THE MOTION CARRIED.
APPROVED - July 17, 2001
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Ott H. Dameron, City Administrator/Recorder
Larry A. Ellertson, Mayor |
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