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03/22/1990 - Minutes Minutes of the Committee of the Whole March 22, 1990 451 South State Street, Room 325 Salt Lake City, Utah 84111 5: 10 p.m. to 7: 40 p.m. In attendance: Ron Whitehead, District One; Wayne Horrocks, District Two; Nancy Pace, District Three; Tom Godfrey, District Five; Emilie Charles, Executive Assistant, Mayor Palmer DePaulis, Lee King, Deputy Director, Policy/Budget Analyst; Bob Buchanan, Grant Acquisition & Project Coordinator; Jim McGuire, Clark Financial; Doug Buchi, Clark Financial; Dennis Sargent, Fire Chief; Gordon Nicholl, Battalion Chief; Jim Considine, Human Resource Specialist; Everett Joyce, Sugar House Planner; Scott Gardiner, Recreation Director; and other City and Council staff and members of the Press. Alan Hardman, District Four was excused; Roselyn Kirk, District Six was excused; Don Hale, District Seven, was excused. Nancy Pace, Vice Chair called the meeting to order at 5: 10 p.m. SUGARHOUSE DEVELOPMENT Councilmember Pace requested that Lee King brief the council on the Shopko development. Mr. King stated that Jim McGuire and Doug Buchi of Clark Financial were present to answer any questions on financing that the Councilmembers may have and that a staff member would be briefing the Council along with him. Mr. King then handed out a worksheet showing a breakdown of funding and the loan terms if the City approved the project. Mr. King stated that on April 3 , 1990 the Council would be asked to approve the loan for the Sugarhouse Development. Mr. King stated that the Council had already adopted legislative intent to fund the Sugarhouse Bonding from a revolving loan fund which would be created from Urban Development Action Grant loan payments. Mr. King stated that currently three companies are paying quarterly revolving loan funds payments and that these activities are made eligible under the HUD Requirements, Title 1. Mr. King stated that we would submit an application to HUD for authorization. Councilmember Pace asked if the terms were the same. Mr. King stated that they were not and that he would brief the Council on that momentarily. Mr. King stated that Clark Financial requested action by March 31, 1990 and that April 3, 1990 was the closest date to their request for a City Council meeting. Mr. King stated that HUD requires necessary and appropriate destination of funds. It is deemed necessary and appropriated by the number of jobs created by the development, other development that is created as a spin-off, tax base increases, and service increases. Mr. King then stated that he would like Bob Buchanan to take over. Mr. Buchanan stated that he wanted to briefly respond to the City's anticipations on the revolving fund. Mr. Buchanan stated that the land would be sold to Shopko and that Shopko would contribute the funds into the revolving fund. Mr. Buchanan stated that the information provided by Clark Financial has reasonable figures after review by Capital Planning and they feel comfortable with this agreement, and that the land would be classified as a land use partnership. Mr. McGuire stated that the land had not been acquired from Clark Financial. Councilmember Pace asked if this was the Sugarhouse Development Project. Mr. Buchanan stated that it was. Mr. Buchanan stated that there was one error in the paperwork they had passed out in the retirement of back taxes. Mr. Buchanan stated that the taxes listed are on the development site alone, not on other areas. Councilmember Godfrey asked who owed the back taxes. Mr. McGuire stated that the existing partnership owed the back taxes and that the back taxes will be included in the financing of the new project so that the taxes would be brought current. Councilmember Pace asked who the members of the existing partnership were. Councilmember Hardman requested that Jim McGuire and Doug Buchi be called to the table so that the Council could address them more readily. Mr. McGuire stated that the back taxes owed were for the Sugarhouse One Associates and the Sugarhouse Two Associates and that Clark Financial has holdings in these partnerhsips. Mr. McGuire stated that these two partnerships would be included in the new partnership. Councilmember Godfrey asked if Clark Financial was involved in both of these associations. Mr. McGuire stated that they were and that Clark's involvement was as the general proprietor. Councilmember Hardman asked if the back taxes should be assessed to particular buildings. Mr. McGuire stated that they should, and that Sugarhouse One Associates owns the strip along Simpson Avenue, and that the Sugarhouse Two Associates owns the Ogden Carpet and surrounding businesses running west on Highland Drive. Councilmember Whitehead asked if the streets and alley buy-out would be included in the agreement with the City. Mr. McGuire stated that the agreement stated that improvements would be done for the City in consideration of the streets and allies situation. Councilmember Pace asked if these were items that Clark Financial would normally do as a developer. Mr. McGuire stated that they were not. Councilmember Godfrey asked what the final cost was to purchase these streets and alleys. Mr. McGuire stated that a final figure was not available because the appraisals were not completed. Councilmember Godfrey asked for a "ball-park figure" . Mr. McGuire stated that the "ball-park" figure was around $650, 000. Councilmember Godfrey asked if it was a normal procedure for the bank to loan money to cover back taxes. Mr. Buchi stated that a bank would loan money to cover back taxes only if the development value exceeded the loan amount. Councilmember Godfrey asked what the land owner development debt is. Mr. McGuire stated that this is created when the existing debt still owed is payed off and new debt is created. Councilmember Pace asked if this was basically a consolidation loan. Mr. McGuire stated that it was. Councilmember Hardman asked if the Council had any further questions. Councilmember Godfrey asked if the City was committed by their Letter of Intent to obtain a loan for $900, 000 to pay off the owners of the streets and developers. Mr. McGuire stated that the City was and that this money would be obtained by tax increment financing. Councilmember Godfrey asked if the listing of Shopko paying $3 million for the development was correct. Mr. McGuire stated that Shopko is paying 1/3 of all costs involved in the development, that Salt Lake City would be paying $900, 000 and that $300, 000 is appropriated for other debts. Councilmember Pace indicated that she did not understand what Mr. McGuire was saying. Mr. McGuire stated that there are two different figures because the land is already partly owned. Councilmember Hardman asked if there were any further questions. Councilmember Pace asked if the employees would have job security and if there would be a sufficient number of full-time jobs created. Mr. McGuire stated that the figures listed included Shopko and that they were very conservative. Mr. McGuire also stated that this was included in the Letter of Intent that the Council had approved. Councilmember Pace asked what the Letter of Intent was. Mr. Buchi stated that a Letter of Intent from the Council is similar to Legislative Intent. Mr. McGuire stated that a letter of intent is a legal document and just short of the commitment when a contract is signed. Mr. Buchanan stated that there would be no increase in sales tax or property taxes, but that the increase in jobs and the development itself would create a spin-off effect which would enhance other businesses in the area. Councilmember Hardman asked how the sales tax figures were estimated. Mr. McGuire stated that they were based upon conservative sales tax revenue figures. Mr. Buchanan stated that Capital Planning had some reservations about the sales at Shopko and had calculated the sales tax revenue at a highly conservative rate at about $120, 000 to $140, 000. Mr. Buchanan stated that a stipulation had been added to require that no additional debt be added above that what was already listed. Mr. Buchanan stated that the incentive terms were that there would be no principal repayment during the first five years and that interest would be assessed to the loan amount at the rate of 5% for this period, that between years 5-10 interest would be accrued at the rate of 6%, and that the next 10-20 year payments would also be accrued at a different rate. Councilmember Godfrey asked if this is the same way other items have been processed. Mr. Buchanan stated that yes it was, although the exact terms for each loan are often different and usually the loan period was for 20-30 years. Mr. Buchanan stated that there was usually owner turnover in this type of business and that if the loan was refinanced the City would be reimbursed in full. Councilmember Hardman asked if, after 10 years of the loan the City would see any money. Mr. Buchanan stated that the City would be reimbursed in full, if the owner refinanced the loan. Mr. Buchanan stated that the City would not sign a contract until all of the paperwork had been seen and that financing would not be arranged until all of the other financing sources have been guaranteed. Mr. Buchi stated that the First Security loan amount may be low to protect all of the parties involved. Councilmember Godfrey asked if this was a contingency. Mr. Buchi stated that it was not and it was a precautionary action. Councilmember Hardman asked if the Council had any further questions. Councilmember Pace stated that she thought a letter of credit was needed. Mr. McGuire stated that the reason the letter of credit was obtained was because there was no other security for the tax increment financing. Councilmember Pace stated that she was nervous because of the back taxes owing and was concerned about the project. Councilmember Pace asked why the location was chosen because it was not consistent with the Sugarhouse Master Plan. Mr. McGuire stated that the phasing in of new developments had caused changes in the master plan due to market changes and that Shopko wanted to develop in this area. Councilmember Godfrey stated that the 3-Phase Plan was worded such that if changes developed then the Master Plan could be changed. Councilmember Hardman asked if this was a two - step process, since the $900, 000 funding will not be available until September. Mr. Buchanan stated that it was and that first a commitment was needed. Mr. King stated that a commitment would mean passing a resolution as a contractual agreement and that it would take close to a year for the City to have the whole loan amount available. Councilmember Hardman asked if the resolution would stipulate this. Mr. Buchanan stated that it would. Councilmember Godfrey asked if this would come back to the Council for approval. Ms. Gust-Jenson said that it would, that the first step would be to pass the resolution committing the funding and the second being to transfer the money into the account. Councilmember Pace asked if the money was in essence being transferred to a "pot of money. " Mr. King stated that it was. Mr. Buchanan stated that First Security Bank is enthusiastic about the project and has a stringent set of standards that have to be met prior to financing and that the City was not being reckless but very conservative. Councilmember Horrocks asked when the back taxes would be paid. Mr. Buchi stated that the taxes would be paid on the Shopko project area before the construction could begin. Councilmember Hardman asked if there were any further questions. No further questions were asked so Councilmember Hardman requested that Dennis Sergeant, Fire Chief begin his presentation. FIRE DEPARTMENT BUDGET DISCUSSION The slide presentation presented by the Fire Department indicated that their requests would have a minimal impact on the budget. They stated that the first item of importance was to increase Community Fire Awareness to decrease false fire alarms, deaths, etc. They stated that this was needed because the Fire Department is required to respond to all calls, including hang- ups, to protect the citizens, i.e. , people that cannot speak, people that are ill, burglars that are preventing the person from speaking. They stated that this would pay for itself by a decrease in costs from false alarms. The second request was on fire station locations based upon Selection Criteria. They stated that insurance rates are determined upon the usage of emergency assistance in the area. They indicated that moving Station #7 will increase the coverage in the Rose Park area and that it is scheduled to open in 1991. They stated that the maximum effective response time for health is 6 minutes. They are recommending that fire station locations be based on call volume criteria for the correct amount of coverage and that they would like to be as close to the I. S.L. recommendations as possible, and that sometimes the City's response time is 6-10 minutes. They indicated that the West Side of Salt Lake City lacks adequate coverage but that the East Side is covered adequately. The Fire Department is recommending that Fire Station #9 be fully staffed. It is currently vacant. They indicated that all the equipment needed to operate the station is there, and all that is needed is the staffing to operate it. They indicated that this fire station being opened is essential, and that it will increase protection. Chief Sargant asked if the Council had any questions. Councilmember Horrocks asked what had happened to the Rose Park area and indicated that coverage for this area was needed. Councilmember Whitehead asked if a location for Station #7 had been established. Chief Sargant stated that a location had not been selected and that they were recommending the station be moved further Northwest to provide adequate coverage. Chief Sargant indicated that there was a coverage problem on 800 South in the industrial area and that long term increases were needed in the Centennial Park area. Councilmember Pace asked if equipment was needed to make Station #9 operational. Chief Sargant indicated that everything was there and that staff was the only item required. Councilmember Godfrey asked what the response time was for these two areas. Chief Sergeant stated that on the East Side the response time is 3 minutes, in the Rose Park area 4-5 minutes is the response time. Mr. Zuhl asked if the average response time was 6 minutes. Chief Sargant stated that it was, that there were some 7-8 minute response times and a few 9-10 minute response times for the far Northwest end of the City and that the response time for the International Center was 12-14 minutes. Councilmember Hardman asked if there were any further questions concerning this issue before they proceeded to negligently caused fires. NEGLIGENTLY CAUSED FIRES Councilmember Hardman indicated that there were two ordinances being considered. The first concerning negligently caused fires, and the second, regarding hazardous material spills. Councilmember Hardman requested that the Fire Department review these items with the Council. Councilmember Horrocks indicated that he had taken a tour of his District with Gene Devenport of the City/County Health Department. Councilmember Horrocks indicated that they discovered hazardous materials and he asked how property owners can abandon buildings without taking care of these hazardous materials. Battalion Chief Nicholl's stated that the Fire Department wants to evaluate the cost effectiveness of the hazardous waste policy and that Bruce Baird, Assistant City Attorney had indicated it should be written this way. Battalion Chief Nicholl's indicated that the Fire Department feels that arson, accidental fires, notes of violations received by owners and whether these violations contributed to the fire are areas to look at. Battalion Chief Nicholl's stated that the Fire Department wants to establish a policy to assess fees to individuals responsible for negligently caused fires. Battalion Chief Nicholl's stated that the billing would need to be handled by the Treasurer's office and that a mutual agreement between Salt Lake City and Salt Lake County had been established, and that they agreed it was appropriate to charge for materials and supplies used, and possibly for personnel. Councilmember Hardman asked if the high use areas were known and if so, he suggested that the City should develop an approach to motivate owners to secure abandoned buildings. Battalion Chief Nicholl's stated that the Fire Department needed to establish a positive attitude, that circumstances have changed and that the negligent fire hazards policy should be updated. Councilmember Godfrey asked why the proposed policy was worded such that the individual/individuals admitted to no liability and only negligence. Battalion Chief Nicholl's stated that he would need to talk to Bruce Baird, City Attorney to get the clarification on the wording. It was suggested that a Citizen Board could be established to review charges of negligently caused fires if the policy was approved. Councilmember Horrocks asked if a time period had been established for the appeal process. Battalion Chief Nicholl's indicated that it had and that it had been set at 15 days, with action on the appeal taking place within 30 days. Councilmember Horrocks indicated that the Salt Lake City taxpayers should not be required to pay for other individuals negligence, and this is why he recommended the two ordinances. Battalion Chief Nicholl's indicated the Fire Department felt this was inappropriate and had supported this ordinance with this reasoning. Councilmember Pace asked if the board would be a Mayor designated board. Ms. Gust-Jenson indicated that it would be Mayor appointed if the board was established administratively. Councilmember Horrocks indicated that he was pleased with the proposed time period for the appeal process. Councilmember Horrocks then requested that he be notified when the meeting with the City Attorney on the ordinance was arranged because he would like to participate. Ms. Gust-Jenson asked the Council if they agreed that the issues to be resolved include: the liability issue of the ordinance, the time frame for the appeal process, and the review board idea. The Council agreed to these items. Ms. Gust-Jenson stated that the item in question was the wording and that would be clarified with the City Attorney. The Council agreed to this. Ms. Gust-Jenson asked the Council if they had any further concerns. Councilmember Hardman asked if a written policy had been established to validate these ordinances. Battalion Chief Nicholl's indicated a policy draft had been established. Chief Sargant indicated that they had included copies of the policies with the packet he had distributed. The Council indicated that they did not have these copies and Chief Sargant apologized and stated that he would get them copies during the break. Chief Sargant indicated that he was pleased that the Council had initiated this policy and the Europe currently has such a policy and that this indicates that Salt Lake City is very progressive. Chief Sargant also indicated that Europe has a significantly lower rate of fires and that he believes this policy will decline our rate also. The meeting was adjourned for dinner at 6: 15 p.m. The meeting was reconvened at 7: 00 p.m. GOLF COURSE RESERVATION POLICY Councilmember Hardman requested that Scott Gardner brief the Council on the proposed change in the golf course reservation policy. Mr. Gardner indicated that the change in policy recommendation came from the revenue study completed by Cam Caldwell, Auditor/Budget Analyst, as per the Council's request. Mr. Gardner stated that the current policy allows one group to use one golf course one day per week and that the fee for the group is $25. 00. Mr. Gardner indicated that currently, tournaments are booked on a minimum basis because the department wanted the keep the golf courses open to the public as much as possible. Mr. Gardner stated that they are now recommending that the golf courses be opened up to a tournament one Saturday and one Sunday per month, with two tournaments a week being allowed. Mr. Gardner stated that a tournament group would be required to rent a golf cart to speed up the playing of the game. Mr. Gardner also indicated that a fee increase would be established and each person in the tournament would pay a $21. 00 fee. Councilmember Godfrey asked if a person was to bring their own cart to use at the tournament, would they encounter problems? Mr. Gardner stated that everyone playing in a tournament would be charged for the use of the City's golf cart even if they were to bring their own golf cart to the tournament, but that they would be allowed to use their own golf cart on the course if they so desired. Mr. Gardner stated that it has been recommended this way because the motive is to increase revenues. Councilmember Godfrey stated that the proposed policy stated that no private carts would be allowed. Mr. Gardner indicated that this was not correct and would need to be revised. Councilmember Hardman asked if he was understanding the issue correctly and that participants in a tournament would be required to pay for the use of the City's carts whether or not they used them. Mr. Gardner stated that this was correct and that currently tournaments being played at the City's golf courses utilize the majority of the carts anyway. Councilmember Pace asked if the public would be at a disadvantage if the policy was approved by minimizing the amount of individual play. Mr. Gardner stated that it would have a minimal effect by limiting the tee times that would be available for individual play, but that this would be off-set by the alternation of tournaments from one golf course to another. Councilmember Godfrey stated that he recalled when he was a caddy that Tuesdays and Thursdays were very busy days for individual play and asked if Salt Lake City had the same type of busy days where you would not want to book tournaments. Mr. Gardner stated that it was more popular on particular days which varied upon the golf course. Councilmember Pace asked if figures on the projected income for tournaments had been made. Mr. Gardner said that they had and an additional $50, 000 in revenue had been projected. Mr. Gardner stated that this figure was arrived by the increase in cart use, ball rental increase, and the fee increase of $2 . 00. Mr. Gardner stated that the City had resisted allowing golf tournaments but that this had resulted in the tournaments going to other City's golf courses and that Salt Lake City had lost revenue because of it. Mr. Gardner stated that the proposed policy was adopted from the policy of from Murray City. Mr. Gardner stated that they would book tee times for 4 groups every 7 minutes to cover all of the holes, and that to book a tournament the fees must be paid 100 percent up front, one (1) week prior to the tournament. Councilmember Hardman asked what was to prevent people from lying and setting up tee times as individuals instead of as a group to avoid the fees. Mr. Gardner stated that it was not very likely to occur because only one reservation is allowed per call and that to book a group as individuals would require that the individual call, make a reservation, hang-up, and call again. Mr. Gardner stated that with this method it is very unlikely that the individual would get the next tee time after his because by the time he had made the first reservation, hung-up, and called again, another reservation would have been made by another individual for the time after his scheduled tee time. Councilmember Godfrey asked if the companies write checks for the tournament. Mr. Gardner stated that they do. Councilmember Pace asked what the Golf Advisory Board's opinion was on the proposed policy. Mr. Gardner stated that they had approved it unanimously. Councilmember Godfrey asked why all of the tournaments wouldn't be scheduled at Mountain Dell, since this is such a popular course. Mr. Gardner stated that to increase revenue, they would alternate tournaments between golf courses to equalize the distribution of revenue, and to distribute the use of the courses for tournaments. Mr. Gardner also stated that weekday tournaments were not that popular. Councilmember Hardman asked if each golf course had the flexibility of setting their own days for the weekday tournaments. Mr. Gardner stated that they did and that weekends would be the only days that were specifically assigned. Councilmember Horrocks asked how the tournaments were paid for. Mr. Gardner stated that usually by personal check and that perhaps the time length for payment should be changed to 10 days to allow for clearing of the check prior to the tournament. Councilmember Hardman asked what the increase in fees were. Mr. Gardner stated that there was a total of $8. 00 per person on a nine-hole course. Councilmember Horrocks asked if this would adversely effect the public golfer. Mr. Gardner stated that it wouldn't cause adverse effects because of the limiting of the tournaments to a number of weekdays and assignment of weekend tournaments. Councilmember Horrocks asked if this was a Pilot Program. Mr. Gardner stated that it was not and if it was approved, it would become policy. Councilmember Horrocks asked if Salt Lake County was in the process of building new golf courses. Mr. Gardner stated that Dimple Dell is the only current project and that it would be years before a decision could be made in the courts on using the Dimple Dell area for a golf course facility. Councilmember Hardman asked when the Council will see this item on the agenda. Ms. Gust-Jenson stated it was on the agenda for April 16 and that it was placed on the agenda as a courtesy because it was not a requirement for it to be placed on the agenda. Councilmember Hardman asked if a phone reservation system would be possible in the future. Mr. Gardner stated that fees are involved in a phone reservation system, but that golfers may be willing to pay the fee to cover costs for a phone reservation system that would computerize the reservations for golf course tee times. Councilmember Pace asked if a telephone reservation system was initiated, would that be the only way an individual could make a reservation? Mr. Gardener stated that one-day a week would be scheduled for person-to-person reservations. Councilmember Pace stated that this could negatively effect the tourists because they would not have access to the telephone reservation system. Mr. Gardner stated that two studies completed by separate firms have suggested the telephone reservation system. The individual would need to purchase a phone reservation card for a fee of $25. 00. Mr. Gardner stated that after two no-shows an individual would lose the privilege and have their card revoked; therefore, a decrease in no-shows would be made. Mr. Gardner also stated that the City could operate a "900" line that tourists could call to get golf course reservation information and that the cost would call $2 . 00 per call. Councilmember Hardman asked if the phone reservation system was likely to be addressed this year. Mr. Gardner stated that the time frame was not specified, but that they would like to have it operational by Spring of 1991, and have eight golf courses in the system, but that to have the system operational by July of this year would be pushing it. Councilmember Hardman asked if a reservation center was too costly to be an effective alternative. Mr. Gardner stated that this has not been ruled out but that to have a reservation center run by individuals would cost the City more money and it is likely to be computerized eventually anyway. Councilmember Hardman asked the Council if they had any further questions. Mr. Gardner stated that the Council should see the policy in April if it is approved by the Mayor. EXECUTIVE DIRECTOR BRIEFING Councilmember Hardman indicated that Executive Director, Cindy Gust-Jenson had some items to discuss before the meeting could be adjourned. Ms. Gust-Jenson asked the Council if they had a problem meeting on a Redevelopment Agency item prior to the District Meeting on Tuesday; she stated that the Councilmembers should have a copy of the agenda for the District Meeting. The Council agreed they would be able to meet at this time. Ms. Gust-Jenson reminded the Council of the League of Cities & Towns Convention in St. George on April 6 and April 7 . Ms. Gust-Jenson stated that the Real Property Conveyance for Quail Meadows had been changed because a technical error had been made and the department wanted to speed up the approval process. Ms. Gust Jenson stated that Councilmember Whitehead and Councilmember Kirk would be back for the Tuesday, March 27, District Meeting. The Meeting was adjourned at 7: 40 p.m. Minutes of the Meeting of the Committee of the Whole March 15, 1990 5 : 00 p.m. to 8 : 30 p.m. City Council Conference Room 325 City and County Building 451 South State Street Salt Lake City, UT 84111 In Attendance: Ron Whitehead, District One; Wayne Horrocks, District Two; Nancy Pace, District Three; Alan Hardman, District Four; Tom Godfrey, District Five; Roselyn Kirk, District Six; Don Hale, District Seven; Palmer DePaulis, Mayor; Cindy Gust-Jenson, Executive Director; Mike Zuhl, Chief of Staff; Emilie Charles, Mayor's Assistant; and other City and Council Staff members. Councilmember Alan Hardman opened the meeting. NORTHWEST COMMUNITY MASTER PLAN AREA TOUR Due to an unforeseen scheduling problem with the van, the tour was not given and will be rescheduled at a later time. BUDGET AMENDMENT #5 BRIEFING Steve Fawcett reviewed the format of the budget summary sheet for the Council. He reviewed the proposed amendments, and the transfer of monies to the different accounts where applicable. Lee King reviewed the projects proposed under the Special Revenue Funds classification. A copy of the budget opening detail is attached to these minutes. PUBLIC WORKS DEPARTMENT BRIEFING Members of the Public Works Department provided a briefing regarding the issue of a storm water quality program. The City does not currently have such a program in place. Planning for this is in line with and in anticipation of the final ruling from the National Pollutant Discharge Elimination System, (NPDES) , expected in August, 1990. The report names Salt Lake City as one of the cities required to prepare the NPDES permit. Fines would be assessed by the Environmental Protection Agency if the permit were not sought, however, the need for this program is recognized by the City in order to protect the urban environment. The program addresses management and control of runoff, through SPAA specialized drainage systems, to prevent detrimental effects to the environment. The Department's plan includes measures to meet the EPA requirements, the establishment of an advisory board, and management of the permit application. The cost to prepare Part One of the permit is $70, 000, and a service level increase to hire an additional engineer technician has also been requested. The meeting was adjourned. Alan G. Hardman, Council Chair date Kathryn Marshall, City Recorder date