2 of 1981 - A RESOLUTION OF INTENTION TO ISSUE ONE OR MORE ISSUES OF POLLUTION CONTROL REVENUE BONDS OF SALT LAK •
Salt Lake City, Utah _
January 20, , 1981
The City Council of Salt Lake City, Salt Lake County,
Utah, met in regular public session on the 7nrh day of Diea ,
1981, at the hour of 5:00 o'clock P .M., at the regular meeting
place of the City Council in Room 301, in the City and County
Building, Salt Lake City, Utah.
The meeting was duly called to order by the Chairman
of the City Council with the following members of the the City
Council being present, constituting a quorum of the City Council:
Ronald J. Whitehead Council Member
Edward W. Parker Council Member
Sydney R. Fonnesbeck Council Member
Ione M. Davis Council Member
Grant Mabey Council Member
Palmer DePaulis Council Member - Chairman
Alice Shearer Council Member
Absent: None
There were also present:
Ted L. Wilson Mayor
Mildred V. Higham City Recorder
Roger Cutler City Attorney
After the minutes of the preceeding meeting had been duly
read and approved, the City Recorder presented to the City Council
an affidavit evidencing the giving of not less than twenty four. . :
(24) hours' public notice of the agenda, date, time and place of
the Jan. 20, , 198u, meeting of the City Council in compliance
with the requirements of Section 52-4-6(2), Utah Code Annotated,
1953, as amended, by (1) posting written notice of the meeting
at the principal office of the City Council at301 city & Co. Buildilgg
Salt Lake City, Utah, and (2) providing notice to at least one
newspaper of general circulation within the general geographic
Jurisdiction of said city, or to a local media correspondent.
The affidavit was ordered recorded in the minutes of the meeting
and is as follows:
STATE OF UTAH
COUNTY OF SALT LAKE) ea.
On the 160h day of January, 1981 1 pets,-ally delivered a.opy of [Le forcgofng
notice to the Mayor and City Cauncil and posted copies of the aame Ln.asptcuous
at the following times and locations within the City and[aunty Building, Salt Laket City,
Utah:
1. At 4:45 p.m. in the City Recorder's Office, Room 200: and
2. At 4:50 p.m. in the newsroom, Room 301. 6
w
t��"tE(fNh D .� y: •ordee
Chief Deputy Cit yt Recorder
rder
Subscribed and sworn to before me this 16th day of January, 1981.
•.--`/•
'7/ / .
NOTARY PUBLIC re lding
in Salt Lake Cit , Utah
My Commisaioa Expires+
.STATE. OF UTAH )
)
COUNTY OF SALT LAKE )
I, the undersigned, the duly qualified and acting City
Recorder of Salt Lake City, Salt Lake County, Utah, do hereby
certify according to the records of said City in my official
possession, and upon my own knowledge and belief, that in
accordance with the requirements of Section 52-4-6(2), Utah
Code Annotated, 1953, as amended, I gave not less than twenty-
four (24) hours public notice of the agenda, date, time and
place of the Jan. 20 , 1981, public meeting held by the
City Council of Salt Lake City, Salt Lake County, Utah, by:
(a) causing a Notice of Public Meeting to be posted
at the principal office of the City Council at ant city & c,n 116-biding,
Salt Lake City, Utah, on Jan. 16 , 198J, at least twenty-four
(24) hours before the convening of the meeting, in the form
attached hereto as Exhibit A; said Notice of Public Meeting
having continuously remained so posted and available for
public inspection during the regular office hours of said City
until the convening of the meeting; and
(b) causing a copy of the Notice of Public Meeting in
the form attached hereto as Exhibit A to be provided on Jan. 16, ,
19811, at least twenty-four (24) hours before the convening
of the meeting, to Salt Lake Tribune & Des. Neisa newspaper of
general circulation within the geographic jurisdiction of said
City, and to each local media correspondent, newspaper, radio
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station or television station which has requested notification
of meetings of the City Council.
IN WITNESS WHEREOF, I have hereunto subscribed my offi-
cial signature and impressed hereon the official seal of Salt Lake
City, Salt Lake County, Utah, this 16th day of Jan , 1981•
�1f1�� Record
�/1 er
tedild/r1 C'C/2/
Salt Lake City- Chief Deputy
Salt Lake County, Utah
[SEAL]
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SALT LOGE c1TY C0L'.i0L AGENDA
CITY C00NCIL CIL:OEOS
ROOM 301 CITY AND CO1,-1 B'1ILDI5G
JAV.:ARY 29, :Gil
5:00?....
A. OPEN:\„CLRE.M :!ES
I. INVOCATION
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF MLNUTES
4. SPECIAL RECOGNITION
C. ADMINISTRATION RECOMMENDATION
1. Proposed ordinance amending Chapter 29 Consider amendments.
of Title Si relating to City Planning
and Zoning Comxiasion.
2. Reclassification of Larry Holiday. Approve reclassification from Real
Estate Acquisition Officer in the
Redevelopment Agency to Redevelopment
Appraisal Officer.
3. Reclassification of Doug Carlson. Approve title change from City Planner I
to Community Development Block Grant
Coordinator.
4. Reappointment of William H.Klbbie Consider reappointment.
to the Public Utilities Advisory
Committee.
5. Appointment of Mrs.Goldie Dennison Consider appointment.
to the Housing Advisory and Appeals
Board.
D. PLANNING 6 ZONING COFTIZSSION
1. Petition No. 364/SO, By Mrs. Ruth Than a public hearing be held o
Smith, et al -requesting that an alley February 24, 1981, t consider the
located o the n rth side of Block 4 vacation of the alley
Highland Park Plot"C", Lois 12 and 13,
be closed.
2. Petition No. 927/80, By Crossroads That a public hearing be held on
Development Corporation-requesting that February 17, 1981, to consider the
property located at 1616 South 1000 Nest rezoning.
Street be rezoned from"R-2" to"R-2A"
classification.
3. Petition No. 960/80,By Boyd F. Summer- That a public hearing be held o
hays-requesting that the ordinances February 17, 1981, to consider amending
be amended to allow a conditional use In the zoning ordinance.
the"11-3"zoning for health clubs and
spas.
4. Proposed changes in the Beet of the That a public hearing be held to consider
"R-7" zoning class Location. repealing the existing Chapter 19 of
the Zoning ordinance and replacing it
with a new Chapter 19.
EXHIBIT A
[Attach Notice of Public Meeting]
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Thereupon, after the conduct of other business not
pertinent to the following, the following resolution was intro-
duced in written form by Council Member Alice Shearer , was
read in full and pursuant to motion duly made by Council.Member
Shearer and seconded by Council.Member Whitehead
and was adopted by the following vote:
Aye: Ronald J. Whitehead Council Member
Edward W. Parker Council Member
Sydney R. Fonnesbeck Council Member
Ione M. Davis Council Member
Grant Mabey Council Member
Palmer DePaulis Council Member - Chairman
Alice Shearer Council Member
Nay: None
The resolution was thereupon presented to and approved
and signed by the Mayor in open meeting and was recorded by the
City Recorder in the official records of the City. The resolu-
tion is as follows:
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•
A RESOLUTION OF INTENTION TO ISSUE ONE OR MORE
•
ISSUES OF POLLUTION CONTROL REVENUE BONDS OF
SALT LAKE CITY, SALT LAKE COUNTY, UTAH, IN AN
AGGREGATE PRINCIPAL AMOUNT OF APPROXIMATELY
$10,000,000, TO FINANCE THE ACQUISITION AND
CONSTRUCTION OF POLLUTION CONTROL FACILITIES
FOR STANDARD OIL COMPANY (INDIANA) OR ANY
SUBSIDIARY THEREOF, INCLUDING AMOCO OIL COMPANY.
WHEREAS, SALT LAKE CITY CORPORATION (the "City"), a
municipal corporation of the State of Utah, is authorized and
empowered under the provisions of Title 11, Chapter 17, Utah Code
Annotated 1953, as amended (the "Act"), for the purposes stated
therein, to issue revenue bonds for pollution control purposes; and
WHEREAS, Standard Oil Company (the "Company"), an Indiana
corporation, has requested that the City issue pollution control
revenue bonds (the "Bonds"), to finance the cost of certain
pollution control facilities, described in Schedule 1 attached
hereto, which facilities are located at the Amoco Oil Company
Refinery of the Company at 474 West 900 North in Salt Lake City,
Utah, and which new facilities are proposed to consist of buildings,
improvements and equipment for pollution control purposes and to
constitute a "project" within the meaning of the Act (the "Project"),
at a cost of approximately Ten Million Dollars ($10,000,000);
and
WHEREAS, the City desires pursuant to the Company's
request to issue the Bonds to finance the cost of purchasing and
constructing the buildings, improvements and equipment for the
Project by the issuance of revenue bonds under the Act in the
amount of approximately Ten Million Dollars ($10,000,000); and
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WHEREAS, the Bonds will be secured by either a note
from the Company or mortgage upon the Project or the City's
ownership of the Project and lease thereof to the Company; and
WHEREAS, the Bonds will be payable solely from the
rentals, revenues and receipts delivered to the City by the
Company pursuant to said note or mortgage or lease and would not
constitute nor give rise to any general obligation or liability
of the City against its general credit or taxing powers; and
WHEREAS, the Company has agreed to negotiate and to
make certain disclosures and representations in regard to the
sale of the Bonds, guarantee payment of principal of, premium,
if any, and interest on the Bonds and appoint a Utah Trustee,
all with the approval of the City and in accordance with the
laws of the State of Utah; and
WHEREAS, the Company desires that the acquisition and
construction of the buildings, improvements and equipment
commence as soon as practically possible; and
WHEREAS, one purpose of this Resolution is to satisfy
the requirements of Section 1.103-8(a)(5) of the Internal Revenue
Service Regulations pertaining to Industrial Development Bonds,
dated July 5, 1972, as published in the Federal Register on August
3, 1972, as amended;
NOW, THEREFORE, BE IT RESOLVED by the City Council of
Salt Lake City as follows:
Section 1. That the City Council of Salt Lake City
hereby finds and determines that the issuance of the Bonds to
finance the cost of the Project will be in furtherance of the
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public purposes set forth in the Act, and that the Project will
promote the welfare of the City by reducing, abating and preventing
pollution.
Section 2. That the City Council of Salt Lake City
hereby approves the Project to be financed out of the proceeds of
approximately Ten Million Dollars ($10,000,000) principal amount
of the Bonds to be issued pursuant to the provisions of the Act.
Section 3. That City officials are hereby authorized
and directed to proceed with the necessary negotiations relating
to the Project and the preparation of the legal documents relating
thereto for final action by the governing body of the City.
Section 4. The officers and employees of the Issuer
are hereby authorized to take such further action as is necessary
to carry out the intent and purposes hereof to issue the Bonds
upon the terms and conditions and for the purposes stated herein.
Section 5. All resolutions and parts thereof in conflict
herewith are hereby repealed to the extent of such conflict.
Section 6. Immediately after its adoption by the City
Council and its approval by the Mayor this resolution shall take
immediate effect.
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PASSED AND APPROVED by the City Council and the Mayor
of Salt Lake City, Salt Lake County, Utah, this ___ lday of
January , 1981.
APPROVED:
Mayo sit ake City
Salt Lake County, Utah
Chairman of the City Council
Salt Lake City
Attest: Salt Lake County, Utah
City Recor eF/
(Other business not pertinent to the above appears in
the minutes of the meeting.)
Upon motion duly made and carried, the meeting was
adjourned.
rGC.6i t_. i
CChairman of the City Council
Salt Lake City
Salt Lake County, Utah
[SEAL]
Attest:
City Recorder
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STATE`OF UTAH
COUNTY OF SALT LAKE)
I, Mildred V. Higham, the duly qualified and acting
City Recorder of Salt Lake City, Salt Lake County, Utah, do
hereby certify, according to the records of said City in my
official possession, that the above and foregoing constitutes
a true and correct copy of excerpts from the minutes of a
regular public meeting of the City Council of Salt Lake
City, Salt Lake County, Utah, held on anuar9Iy PRXx 20 , �961,
including a resolution adopted at said meeting, as said minutes
and resolution are officially of record in my possession. Said
resolution has not been amended as of the date hereof.
IN WITNESS WHEREOF, I have hereunto subscribed my
official signature and impressed hereon the corporate seal of
Salt Lake City, Salt Lake County, Utah, this 20th day of
January
, 1981
City e der
[SEAL]
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SCHEDULE 1
Description of Pollution Control Facilities
Standard Oil Company(Indiana)
200 East Randolph Drive
Post Office Box 5910-A
Chicago,Illinois 60680
312-856-7939
Dale M.Iwatakl
Attorney
December 8, 1980
Mr. Albert E. Haines
Department of Finance and
Administrative Services
Salt Lake City Corporation
200 City & County Building
Salt Lake City, Utah 84111
Dear Mr. Haines:
Standard Oil Company/Amoco Oil Company:
Salt Lake City Refinery
We appreciate your taking the time to meet with us last Tuesday. Andy Kurz
and I hope that our Application for Official Action towards Issuance of
the City's Revenue Bonds will meet with your approval.
Please find enclosed two sets of our Application materials. I understand
that you and the City Attorney will review these materials prior to
submission to the Mayor and City Council on December 16. We will be
prepared to meet with the Council's Committee on December 18, and with
the full Council on December 30.
I am enclosing the proposed form of resolutions to be adopted and the
proposed form of an "inducement letter" from us. Bond Council has advised
us to forego a Memorandum of Agreement and to present a letter containing
the various representations you requested. Please review these drafts.
If everything is acceptable, we will send as many sets of our Application
materials as you may need, plus an executed inducement letter, for the
meeting on the 16th. I understand that a check in the amount of $750
should be handed over on the 30th. Another check in the same amount is
to be handed over at the time of the final bond resolution when we are
ready to market the bonds.
We would appreciate your phoning us if you wish us to make changes in
the Application, Proposed Resolutions, or Inducement Letter. If our
understanding on any matter stated above is mistaken, please inform us.
Mr_ Albert E. Haines •
Page 2
We look forward to working with you on this project.
Yours very truly,
Dale M. Iwataki
DMI/gr
Enclosures
A. G. Kurz
Standard Oil Company(Indiana)
200 East Randolph Dove
Post Office Box 5910-A
Chicago,Illinois 60660
8 s
_hOAS ,o
,k G V''i'v,,pL
'I 1 '
Januarg,20, 1981 s•O�s •
r
Officials of Salt Lake City e+
200 City&County Building
Salt Lake City,Utah 84111
Gentlemen:
In the Matter of Standard Oil Company's
Application For Resolution of Official Action
Towards Issuance of the City's Revenue Bonds:
In order to induce you to approve a Resolution of Official Action towards
issuance of your industrial revenue bonds or pollution control revenue bonds to
finance the construction of certain pollution control facilities at the refinery
of Amoco Oil Company,our wholly owned subsidiary,Standard Oil Company,
an Indiana corporation,on its own behalf and on behalf of its subsidiaries
(hereafter"Standard"), makes the following promises and representations:
1. Standard represents that the pollution control project described in its
Application is a"project"under the Utah Facilities Development Act,as
amended(11-17-2 of the Utah Code),and believes that Salt Lake City,
under that Act,is authorized to issue its industrial revenue bonds for the
purpose of defraying the cost of financing,acquiring,constructing,
maintaining,and equipping said project.
2. On the provision that Salt Lake City will issue its industrial revenue bonds
or pollution control revenue bonds upon terms and conditions to be
mutually satisfactory and for the purposes stated in Standard's
Application and in the Resolutions to be approved,Standard will
unconditionally guarantee payment of principal,premium(if any),and
interest on said bonds and as the same shall become due.
3. Standard represents that,to the best of its knowledge,all its own long-
term debt issues are"triple A"rated by the major rating agencies and
that all its previous pollution control revenue bond issues,when rated,
were rated"triple A"since they carried Standard's unconditional
guarantee.
4. Standard agrees to pay all necessary expenses in connection with the
issuance of the City's revenue bonds. Standard agrees to reimburse the
City,its officials and personnel,for all reasonable and necessary direct
out-of-pocket expenses which may be incurred in considering Standard's
Application materials,in approving the proposed resolutions pertaining
thereto,and in carrying out the performance of the obligations contained
in said resolutions,including expenses of counsel and consultants.
Standard,further,agrees to indemnify and save harmless the City,its
. Officials of Salt Lake City
Page 2
officials and personnel,from any and all liability arising out of the
transactions contemplated by the Application and proposed resolutions.
5. Standard agrees to disclose to the City the identity of the purchasers of
the revenue bonds in the event that they are privately placed and not sold
to the general public. Standard agrees to identify the underwriter or
underwriters to be involved when said party or parties are selected.
6. Standard agrees to select as trustee for the revenue bond issue a
reputable banking institution whose main office is located in the State of
Utah.
7. Standard agrees to pay$1500 to the City as a nonrefundable fee for
considering its Application.
The above promises and representations are made by a duly elected officer
responsible for financial transactions.
STANDARD OIL COMPANY
By: � can-T
Title: C�^' !'ta
.
-D_._RAFT
Standard Oil Company(Indiana)
200 East Randolph Drive
Post Office Box 59t0-A
Chicago,Illinois 60680
December 16, 1980
Officials of Salt Lake City
200 City&County Building
Salt Lake City,Utah 84111
Gentlemen:
In the Matter of Standard Oil Company's
Application For Resolution of Official Action
Towards Issuance of the City's Revenue Bonds:
In order to induce you to approve a Resolution of Official Action towards
Issuance of your industrial revenue bonds or pollution control revenue bonds to
finance the construction of certain pollution control facilities at the refinery
of Amoco Oil Company,our wholly owned subsidiary,Standard Oil Company,
an Indiana corporation,on its own behalf and on behalf of its subsidiaries
(hereafter"Standard"), makes the following promises and representations:
1. Standard represents that the pollution control project described in its
Application is a"project"under the Utah Facilities Development Act,as
amended(11-17-2 of the Utah Code),and believes that Salt Lake City,
under that Act,is authorized to issue its industrial revenue bonds for the
purpose of defraying the cost of financing,acquiring,constructing,
maintaining,and equipping said project.
2. If Salt Lake City will issue its industrial revenue bonds or pollution
control revenue bonds for the purposes stated in Standard's Application
and in the Resolutions to be approved,Standard will unconditionally
guarantee payment of principal,premium (if any),and interest on said
bonds when and as the same shall become due.
3. Standard represents that all its own long-term debt issues are"triple A" j •
rated by the major rating agencies and that all its previous pollution
control revenue bond issues,when rated,were rated"triple A"since they
carried Standard's unconditional guarantee.
4. Standard agrees to pay all necessary expenses in connection with the )
issuance of the City's revenue bonds. Standard agrees to reimburse the
City,its officials and personnel,for all reasonable and necessary direct
out-of-pocket expenses which may be incurred in considering Standard's
Application materials,in approving the proposed resolutions pertaining
thereto,and in carrying out the performance of the obligations contained
in said resolutions,including expenses of counsel and consultants.
Standard,further,agrees to indemnify and save harmless the City,its
Officials of Salt Lake City
Page 2
officials and personnel,from any and all liability arising out of the
transactions contemplated by the Application and proposed resolutions.
5. Standard agrees to disclose to the City the identity of the purchasers of
the revenue bonds in the event that they are privately placed and not
sold to the general public. Standard agrees to identify the underwriter
or underwriters to be involved when said party or parties are selected.
6. Standard agrees to select as trustee for the revenue bond issue a
reputable banking institution whose main office is located in the State of
Utah.
7. Standard agrees to pay$1500 to the City as a nonrefundable fee for
considering its Application.
The above promises and representations are made by a duly elected officer
responsible for financial transactions.
STANDARD OIL COMPANY
By:
Title:
CERTIFICATE
AS TO DESIGNATION OF
AUTHORIZED REPRESENTATIVE
As a duly elected officer of Standard Oil Company,an Indiana
corporation,I DO HEREBY CERTIFY that each of the individuals whose names
appear below has been designated an Authorized Representative of the
Company,and each of them,acting individually,is authorized to take all
actions and to do all things in connection with any proposed financing of
pollution control equipment and facilities at the Salt Lake City refinery of
Amoco Oil Company,Standard's wholly owned subsidiary,through tax-exempt
industrial revenue bonds or pollution control revenue bonds to be issued by Salt
Lake City Corporation. I do further certify that any one of these Authorized
Representatives is authorized to delegate his power to any other individual to
act on behalf of this company in regard to any manner concerning the issuance
of any such bonds.
J.R.Lyman,Jr.
D.E.Wilson
T.W.Timm
V.J.Long,Jr.
IN WITNESS WHEREOF,I hereby set my hand as of this 16th day of
December, 1980.
Title: Vice Presi ent and Tr surer
The undersigned hereby certifies that the above signature' the true
signature of F.S.Addy,Vice President and Treasurer of Standard Oil
Company.
IN WITNESS WHEREOF,I hereby set my hand and the seal of the
Company as of the above date.
A ant Seeretar
• SALT LAKE CITY CORPORATION
AN APPLICATION FOR RESOLUTION
OF OFFICAL ACTION TOWARDS
ISSUANCE OF THE CITY'S REVENUE BONDS
Standard Oil Company,an Indiana corporation,on behalf of itself and
its subsidiaries,including Amoco Oil Company,a Maryland corporation,
herewith submits an Application for Resolution of Official Action towards the
issuance by the City of Salt Lake City in the State of Utah of its industrial
revenue bonds or pollution control revenue bonds in order to finance the
construction of certain pollution control equipment at the refinery of Amoco
Oil Company located within the municipal boundaries of Salt Lake City.
Applicant states as follows:
1. Name of Applicant: Standard Oil Company,an Indiana corporation,on
behalf of itself and its subsidiaries,including Amoco Oil Company,a
Maryland corporation.
2. Addresses:
a. Principal office: 200 East Randolph Drive,Chicago,Illinois
60601
b. Local office: 474 West 900 North,Salt Lake City,Utah 84103
3. Incorporation information:
a. Standard Oil Company,incorporated in Indiana in 1889.
b. Amoco Oil Company,incorporated in Maryland in 1922.
4. Directors and executive officers:
a. Standard Oil Company
Name Position
John E.Swearingen Director,Chairman of the Board
Richard M. Morrow Director,President
James W.Cozad Director,Executive Vice President
Frank C.Osment Director,Executive Vice President
Walter R. Peirson Director,Executive Vice President
Blaine J. Yarrington Director,Executive Vice President
Leland C. Adams Director,President of Amoco
International Oil Company
George H.Galloway Director,President of Amoco
Production Company
John E. Kasch Director,Vice President
Karl D.Bays Director
James C.Fletcher Director
Robert H. Malott Director
Page 2
Arthur E.Rasmussen Director
Richard D. Wood Director
Joseph S.Wright Director
Joe P. Hammond Vice President,Public and
Government Affairs
Victor H.Brown Vice President and Controller
Edward A.Mason Vice President,Research
L.Bates Lea Vice President and General Counsel
Robert K.Boknecht Vice President,Employee Relations
Rady A.Johnson Vice President,Government Affairs
Terence B.Redmond Vice President,Planning and Economics
Norman J.Rubash Vice President,Supply
Frederick S. Addy Vice President and Treasurer
Robert D.Thompson Secretary
b. Amoco Oil Company
Name Position
H.Laurance Fuller Director, President
Lawrason D.Thomas Director,Executive Vice President
Gerard J.Carpency Director
Paul D.Collier Vice President
Benjamin D.Gill Vice President
John F. Horner Vice President
Keith W.McHenry Vice President
Sam G.Van Sickle Vice President
Richard H. Danielson Regional Vice President
Thomas J.McJoynt Regional Vice President
Rolland D.McMullen Regional Vice President
Robert J.Rauscher Regional Vice President
Donnell R.Stubbs Regional Vice President
Ronald A.Swanson Controller
Duane E. Wilson Treasurer
Robert D.Mitchell Secretary
5. Miscellaneous information:
a. Auditors: Price Waterhouse& Co.,Chicago,Illinois.
b. Proposed Bond Counsel: Chapman&Cutler,Chicago,Illinois.
c. Proposed Underwriter: Morgan Stanley&Co.,New York,
New York,or an investment adviser of similar national
reputation.
d. Bank References: The First National Bank of Chicago,The
Chase Manhattan Bank,Citibank,and others.
e. Contract Engineers: to be selected during the first week of
January, 1981.
. Page 3
6. Proposed Time Schedule:
a. Preliminary Resolution: on or by December 30, 1980.
b. Bond issuance: timing uncertain,depending on market
conditions.
c. Project construction: initiation to begin in January, 1981;
project to be completed in November, 1982.
7. Description of the Project:
Amoco Oil Company("Amoco")is a wholly owned subsidiary of Standard
Oil Company,primarily engaged in refining,transporting,and
marketing petroleum products in the United States. Amoco owns and
operates a refinery within the metropolitan boundaries of Salt Lake
City. It is one of ten domestic refineries owned and operated by
Amoco,and it has a daily operable capacity of 39,000 barrels of oil.
The project consists of installing an electrostatic precipitator in the
fluid catalytic cracking process at the refinery. At the present time
coke-laden catalyst from a reactor is taken to a regenerator where
controlled burning regenerates that catalyst(see Figure I attached). A
two-stage cyclone system in the regenerator separates out flue gas and
regenerated catalyst,removing up to 99.99%of the entrained catalyst
from the flue gas. But,at normal rates of catalyst and air circulation,
assuming 700 to 900 tons per hour of catalyst entering the cyclones,
about 270 pounds per hour of catalyst now enter the atmosphere with
the vented flue gas in the form of catalyst dust or"particulates." This
amount leaving the regenerator causes problems with certain
particulate emissions regulations of the Utah Bureau of Air Quality.
The Utah Bureau of Air Quality's regulations restrict emissions of
particulate matter to those achievable by application of reasonable
available control technology(RACT). These limits are emissions not to
exceed 17 pounds per hour and visible air contaminants not to exceed
20%opacity. Compliance must be achieved by December 31, 1982.
In order to meet the compliance schedule,the electrostatic precipitator
will be installed in the flue gas flow following the carbon monoxide
(CO)boiler which receives flue gas containing particulates from the
regenerator. Emissions from the CO boiler,instead of being vented to
the atmosphere, will be taken to an electrostatic precipitator which
will remove additional catalyst particles(see Figure II attached).
In addition to installing this electrostatic precipitator,the project
consists of an induced draft fan between the precipitator and a new flue
gas stack,duct work,piping,electrical,and other auxiliaries necessary
to complete installation. On November 18, 1980,the Executive
Secretary of the Utah Air Conservation Committee signed an approval
order for the above-described project.
Page 4
A related project to improve air quality in the Salt Lake City area
consists of installing vapor recovery facilities on a new light oils
loading rack at the refinery. At the present time light oils(that is,
gasoline,aviation fuel,and distillates)are loaded at two top-loading
racks within the refinery complex. Hydrocarbon vapors produced when
a transport truck is loaded and when the residual vapors in a transport
truck are displaced during loading operations are currently vented to
the atmosphere. The total amount of hydrocarbon vapors released in
this way is estimated to be 450 tons per year. This amount of emissions
causes problems with certain ozone regulations of the Utah Bureau of
Air Quality,for hydrocarbons are considered precursors of ozone.
The Utah Bureau of Air Quality's regulations restrict hydrocarbon
emissions to those achievable by application of reasonable available
control technology. The limit set by the regulations is hydrocarbon
emissions not to exceed 80 milligrams per liter of product loaded(0.64
pounds per 1,000 gallons loaded). Compliance with this limit must be
achieved by December 31, 1982.
In order to meet the compliance schedule,the vapor recovery facility
will be installed to capture all vapors emitted and displaced during the
transport loading operations. The captured vapors will be returned to
the refinery for further processing.
In addition to installing the vapor recovery unit,a new loading rack
featuring bottom loading(as opposed to top loading)will be erected to
ensure proper operation of the vapor recovery unit and compliance with
the regulations. Piping,electrical,and other auxiliaries will be
necessary to complete installation.
Cost Estimates: Please see attachments.
8. Financial Information:
Attached to this Application are copies of Standard's 10-K for 1979,its
Annual Report,and its latest 10-Q for the third quarter of 1980. In
these documents information can be found concerning Standard's
corporate structure,subsidiaries,material litigation,and future
expectations. As a wholly owned subsidiary with no reporting
requirements under the Securities Exchange Act of 1934,Amoco does
not publish separate financials.
9. Previous Pollution Control Revenue Bond Issues:
Pollution control revenue bonds have never been issued to construct
pollution control facilities at Amoco's Salt Lake City refinery. Nor
have any industrial development revenue bonds been issued in
connection with that refinery. Standard's involvement with pollution
control revenue bonds began in 1975. Several issues have been sold to
provide funds to construct pollution control facilities at one chemical
plant and five refineries owned by subsidiaries of Standard. For a summary
• Page 5
of the terms of these bonds,please refer to the attachments. It should
be noted that each issue is unconditionally guaranteed by Standard Oil
Company and that a local trustee handles the bond and construction
funds.
10. Public Impact:
Constructing the pollution control project will help Amoco's refinery
achieve compliance with air conservation regulations in a recognized
non-attainment area. The effect of such construction will be the
improvement of the ambient air quality in and around Salt Lake City.
Using tax-exempt revenue bonds will aid Standard in financing such
construction,for Standard will be able to save interest costs on funds
borrowed on a long-term basis at a tax-exempt rate rather than a
taxable rate.
It is expected that the Salt Lake City community will benefit in terms
of increased employment. Construction workers,pipefitters,welders,
flagmen,drivers,carpenters,laborers of all kinds will be drawn from
the area to install the pollution control facilities at the refinery. On a
larger scale,the construction will keep the refinery open and operating,
for it would come into compliance with environmental air regulations.
Quantifying such benefits is difficult,but it can reasonably be expected
that increased capital spending of the kind herein proposed will have a
beneficial ripple effect through the municipality's economy affecting
many people.
11. Specific Request:
Standard hereby requests Salt Lake City to approve official resolutions
to issue approximately$10 million of its industrial revenue bonds or
pollution control revenue bonds(Amoco Oil Company Project)upon such
terms and at such interest rates to be negotiated and approved by the
proper officials of the City.
STANDARD OIL COMPANY,
an Indiana corporation
December 16, 1980
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Attachment
Cost Estimates
Electrostatic Precipitator Project
Item Total
Work by Contractor $ 1,460,000
ISBL Electrical 136,000
Instruments 68,000
Catalyst Disposal Boxes 24,000
Induced-Draft Fan 300,000
Precipitator,Erected 3,000,000
Ductwork,Including Expansion Joints and Valves 890,000
Precipitator Stack 103,000
Structural Steel 174,000
Amoco Engineering 220,000
Contractor Engineering 760,000
OSBL Electrical Feeder,Installed 140,000
From SubStation 2 to Precipitator
Management Reserve 725,000
Totals $ 8,000,000
Vapor Recovery Unit Project
Item Total
Shelters $ 62,000
Electrical Power and Lighting 214,000
Rack Foam System 101,000
Rack Fire Water System 32,000
Concrete Paving 62,000
Underground Piping to Rack 146,000
Aboveground Piping 250,000
Excavation—Backfill 9,000
Painting 5,000
Pumps for Avgas 16,000
Vapor Recovery Unit 339,000
Knockout Tank 14,000
Sewer Lines 29,000
R&TE Engineering 116,500
Chicago Contract Engineering 17,500
Sub-Total 1,413,000
Management Reserve 141,000
Total $ 1,554,000
Total for Both Projects $ 9,554,000
. I
•
Page 2
Item Total
Estimated Costs of Issuance
(legal,underwriting,printing,
delivery,bond rating,and
miscellaneous fees and expenses) $ 446,000
Amount of Proposed Bond Issue $10,000,000
AGENDA ROUTING FORM
SUBJECT:' Application for Industrial Revenue Bond.for Standard Oil Company of Indiana -_
ORIGINATING DEPARTMENT Finance and Administrative Services DATE 12/11/80
ADDITIONAL DEPARTMENT REVIEWS:
DATE
DATE
DATE
DATE
EXECUTIVE APPROVAL -74k/tb DATE/L//I(
CLEARED FOR COUNCIL AGENDA ON 9Vill ` /0i/P V/l
REFERRED TO COUNCIL COMMITTEE DATE
COUNCIL REPORT BACK DATE
REPORTED OUT OF COMMITTEE DATE
RETURNED TO COMMITTEE DATE
c
SCHEDULED FOR COUNCIL: PUBLIC HEARING ACTION DATE
REFERRED TO DATE
SIGNED/VETOED
PUBLISHED
ADDITIONAL INFORMATION:
.1-2
v '
prPV
Resolution No. 2
By City Council
Resolution of Intention to issue one or
more issues of Pollution Control
Revenue Bonds in the amount of
$10,000,000 to finance the acquisition
and construction of pollution control
facilities for Standard Oil Company
(Indiana)or any subsidiary thereof,
including AMOCO Oil Company.
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