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11/09/2021 - Work Session - Meeting MaterialsSALT LAKE CITY COUNCIL AGENDA WORK SESSION November 9,2021 Tuesday 2:00 PM This Meeting Will be an Electronic Meeting Pursuant to the Chair’s Determination. SLCCouncil.com 7:00 pm Local Building Authority (LBA)and Formal Meeting (See separate agenda) Welcome and public meeting rules The Work Session is a discussion among Council Members and select presenters.The public is welcome to listen.Items scheduled on the Work Session or Formal Meeting may be moved and /or discussed during a different portion of the Meeting based on circumstance or availability of speakers. Please note:Dates not identified in the FYI -Project Timeline are either not applicable or not yet determined.Item start times and durations are approximate and are subject to change at the Chair’s discretion. Generated:09:48:21 This meeting will be an electronic meeting pursuant to the Chair’s determination. As Salt Lake City Council Chair,I hereby determine that conducting the Salt Lake City Council meeting at an anchor location presents a substantial risk to the health and safety of those who may be present. Members of the public are encouraged to participate in meetings.We want to make sure everyone interested in the City Council meetings can still access the meetings how they feel most comfortable.If you are interested in watching the City Council meetings,they are available on the following platforms: •Facebook Live:www.facebook.com/slcCouncil/ •YouTube:www.youtube.com/slclivemeetings •Web Agenda:www.slc.gov/council/agendas/ •SLCtv Channel 17 Live:www.slctv.com/livestream/SLCtv-Live/2 If you are interested in participating during the Formal Meeting for the Public Hearings or general comment period,you may do so through the Webex platform.To learn how to connect through Webex,or if you need call-in phone options,please visit our website or call us at 801-535-7607 to learn more. As always,if you would like to provide feedback or comment,please call us or send us an email: •24-Hour comment line:801-535-7654 •council.comments@slcgov.com More info and resources can be found at:www.slc.gov/council/contact-us/ Upcoming meetings and meeting information can be found here:www.slc.gov/council/agendas/ We welcome and encourage your comments!We have Council staff monitoring inboxes and voicemail,as always,to receive and share your comments with Council Members.All agenda- related and general comments received in the Council office are shared with the Council Members and added to the public meeting record.View comments by visiting the Council Virtual Meeting Comments page. Work Session Items 1.Informational:Updates from the Administration ~2:00 p.m. 30 min. The Council will receive an update from the Administration on major items or projects, including but not limited to: •COVID-19,the March 2020 Earthquake,and the September 2020 Windstorm; •Updates on relieving the condition of people experiencing homelessness; •Police Department work,projects,and staffing,etc.;and •Other projects or updates. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Recurring Briefing Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 2.Informational:Updates on Racial Equity and Policing ~2:30 p.m. 15 min. The Council will hold a discussion about recent efforts on various projects City staff are working on related to racial equity and policing in the City.The conversation may include issues of community concern about race,equity,and justice in relation to law enforcement policies,procedures,budget,and ordinances.Discussion may include: •An update or report on the Commission on Racial Equity in Policing;and •Other project updates or discussion. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Recurring Briefing Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 3.Informational:American Rescue Plan Act Funding Proposal ~2:45 p.m. 45 min. The Council will receive a briefing about the proposal of the American Rescue Plan Act (ARPA)funding.The ARPA funding proposal focuses on ensuring the recovery and revitalization of the City,and prepare for equitable response for future waves of the disease. The administration proposes to launch this funding with specific branding and a community- facing dashboard for accountability,similar to the Funding Our Future initiative. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,November 9,2021 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 4.Informational:Sorenson Impact Center Social Investment Study and Recommendations Follow-up ~3:30 p.m. 20 min. The Council will receive a follow-up briefing about the Sorenson Impact Center Social Investment study and recommendations.This requests the approval of $150,000 for Phase II and $10m from American Rescue Plan Act (ARPA)in a restricted account contingent upon delivery of Phase II and approval to release the funds with a goal of driving equitable economic development in Salt Lake City. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,October 19,2021 and Tuesday,November 9,2021 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 5.Tentative Break ~3:50 p.m. 20 min. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -n/a Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 6.Ordinance:Budget Amendment No.4 for Fiscal Year 2021-22 ~4:10 p.m. 75 min. The Council will receive a briefing about an ordinance that would amend the final budget of Salt Lake City,including the employment staffing document,for Fiscal Year 2021-22.Budget amendments happen several times each year to reflect adjustments to the City’s budgets, including proposed project additions and modifications.This amendment includes creating a new Community Health Access Team or CHAT program,creating a new park ranger pilot program,several items to spend American Rescue Plan Act or ARPA funds including a new Westside perpetual housing fund,one-time community grants for non-profits and businesses,and additional funding for the Community Commitment Program,among other items. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,November 9,2021 Set Public Hearing Date -Tuesday,November 9,2021 Hold hearing to accept public comment -Tuesday,November 16,2021 at 7 p.m. TENTATIVE Council Action -Tuesday,December 7,2021 7.Resolution:Master Lease Agreement -JP Morgan Chase Bank ~5:25 p.m. 10 min. The Council will receive a briefing about a resolution that would authorize the approval of a Municipal Master Lease Agreement between Salt Lake City Corporation and JP Morgan Chase Bank,N.A.regarding vehicle leasing and purchasing services.The City may enter into lease agreements up to $7M,not to exceed an aggregate of $35M over the five-year term of the agreement. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,November 9,2021 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -Tuesday,November 16,2021 8.Resolution:Annexation at approximately Rose Park Lane and 2350 North (Hunter Stables)~5:35 p.m. 20 min. The Council will receive a briefing about the Hunter Stables annexation application and petition located at approximately Rose Park Lane and 2350 North.The City Council has 14 days from the date of receipt by the Recorder’s office to accept or deny the Petition,which includes the application.If no action is taken within the 14-day window,the Petition will be considered accepted.Accepting the Petition is not approval of the annexation request.Acceptance begins the next step in the annexation process which includes notices sent to property owners,a protest period and the final consideration by the Council.The designation of the zoning of the property will be considered throughout the process and defined in the ordinance considered by the Council.The Council has the option to request Planning Commission review the petition in their public meeting,and forward a recommendation on the proposed annexation and zoning. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,November 9,2021 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -Tuesday,November 9,2021 9.Board Appointment:Parks,Natural Lands,Urban Forestry and Trails (PNUT)Advisory Board –Clayton Scrivner ~6:00 p.m. 5 min. The Council will interview Clayton Scrivner prior to considering appointment to the PNUT Board for a term ending November 9,2024. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,November 9,2021 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -Tuesday,November 9,2021 10.Board Appointment:Parks,Natural Lands,Urban Forestry and Trails (PNUT)Advisory Board –Nathan Manuel ~5:55 p.m. 5 min. The Council will interview Nathan Manuel prior to considering appointment to the PNUT Board for a term ending November 9,2024. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,November 9,2021 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -Tuesday,November 9,2021 11.Council District One Vacancy Applicant Interviews ~6:05 p.m. 25 min. The Council will interview applicants for the vacant Council District One seat.Each applicant will have up to five minutes to speak to the Council on topics of their choice. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,November 9,2021 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -Tuesday,November 9,2021 Standing Items 12.Report of the Chair and Vice Chair Report of Chair and Vice Chair; •New Staff and Intern Introductions. 13.Report and Announcements from the Executive Director Report of the Executive Director,including a review of Council information items and announcements.The Council may give feedback or staff direction on any item related to City Council business,including but not limited to scheduling items. 14.Tentative Closed Session The Council will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: a.discussion of the character,professional competence,or physical or mental health of an individual; b.strategy sessions to discuss collective bargaining; c.strategy sessions to discuss pending or reasonably imminent litigation; d.strategy sessions to discuss the purchase,exchange,or lease of real property, including any form of a water right or water shares,if public discussion of the transaction would: (i)disclose the appraisal or estimated value of the property under consideration; or (ii)prevent the public body from completing the transaction on the best possible terms; e.strategy sessions to discuss the sale of real property,including any form of a water right or water shares,if: (i)public discussion of the transaction would: (A)disclose the appraisal or estimated value of the property under consideration;or (B)prevent the public body from completing the transaction on the best possible terms; (ii)the public body previously gave public notice that the property would be offered for sale;and (iii)the terms of the sale are publicly disclosed before the public body approves the sale; f.discussion regarding deployment of security personnel,devices,or systems;and g.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code §78B-1-137,and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. CERTIFICATE OF POSTING On or before 5:00 p.m.on _____________________,the undersigned,duly appointed City Recorder,does hereby certify that the above notice and agenda was (1)posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701,and (2)a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda,including but not limited to adoption,rejection,amendment,addition of conditions and variations of options discussed. People with disabilities may make requests for reasonable accommodation,which may include alternate formats,interpreters,and other auxiliary aids and services.Please make requests at least two business days in advance.To make a request,please contact the City Council Office at council.comments@slcgov.com,801-535-7600,or relay service 711. Administrative updates November 9, 2021 Clinics this week See the full list here: www.slcschools.org Mayor Mendenhall's Rescue Plan proposal Social impact investment WHAT: Working in partnership with the University of Utah’s Sorenson Impact Center to answer the question: if we could do one thing as a City to improve access to opportunity and build economic strength for our residents, what would it be? One year of research has pointed us toward making a major investment in childcare, early childhood education, and workforce training to increase the skills and earning potential of parents. WHY: Investing in our City’s at-risk young children, and extending that investment to their families, can make an impact that creates an intergenerational cycle of progress -a pathway that truly enhances the equitable growth of our communities. We can change lives and lifetimes with this funding. HOW MUCH:Proposing the Council reserves at least $10 million for potential allocation after Phase 2 work is complete. Park Ranger program WHAT: The creation of the Salt Lake City Public Lands Park Rangers, and the hiring of 16 Park Rangers to oversee operations at Liberty Park, Pioneer Park, Jordan Park and its parkway, and Fairmont Park. The Rangers will be resources to park visitors, with information on park history, area wildlife, and natural resources. They can help with directions, park rules, and public events. And, they will play an important role in fostering safety in our City’s parks. WHY: City Parks are one of our most precious resources. With a growing city, and all the changes that naturally come with that growth —good and bad —now is the time for us to create a better level of parks stewardship to ensure they are welcoming, safe and positive places for all to enjoy. HOW MUCH: Proposing the Council invest $3.9 million in the creation of the Salt Lake City Public Lands Park Rangers. Community Grants WHAT: The creation of the Community Grant pool would focus grant funding toward nonprofit support and business assistance with the goal of equipping community -based organizations to support residents and businesses with COVID-related impacts. WHY: COVID-19 has and continues to have monumental impacts on people and businesses in Salt Lake City. Community based organizations could address COVID -related issues for our residents ranging from legal services for eviction assistance, to access to healthcare, as well as grants and support for small, local, and art or artisan businesses. HOW MUCH: Proposing the council fund $4 million toward the creation of the Community Grant pool. Westside Community Land Initiative WHAT: The Westside Community Land Initiative will serve as an urban land fund to help residents access affordable housing and build financial foundations. Led by the RDA, this Initiative will involve the acquisition of property and land with the goal of holding it in perpetuity in order to keep housing affordable over the long term. Revenue generated from that ownership would be reinvested in the fund to go directly back into the community. And the City will create a shared equity homeownership program, which gives residents an affordable way to become homeowners and allows them to retain their portion of the home’s appreciation should they sell. WHY: Access to housing and housing affordability are essential factors in the safety and stability of our City’s residents, but as availability and affordability shrink, the gap for equitable access to these fundamental needs widens. This initiative will aim to remove those barriers for our residents who face the steepest challenges to housing. HOW MUCH: Proposing the council fund $4 million toward the creation of the Westside Community Land Initiative. Rapid Intervention Team WHAT: Creation of the Community Commitment Program Rapid Intervention Team, which will work to effectively and rapidly respond with outreach, intervention and resources for those in need, and help our public spaces remain clean, safe, and accessible to all. WHY: There are fewer large encampments throughout Salt Lake City, but projections estimate that in 2021 the City will receive around 6,000 CitySourced reports through our SLC Mobile app asking for help with smaller encampments. That’s triple the number of reports from years past, and our response needs to be more nimble to address that need without pulling other city resources away from their core functions. HOW MUCH: Proposing the Council fund $2.9 million toward the creation of the Community Commitment Program Rapid Intervention Team. Revenue loss and salary restoration WHAT: Direct a significant portion of rescue plan funding toward employee compensation and revenue losses that the City has experienced and will continue to experience due to COVID impacts. WHY: According to the U.S. Treasury, at the height of the pandemic, amidst a record number of job losses, communities across the nation have dealt with hiring freezes or layoffs coupled with declines in revenue. Salt Lake City will utilize the Rescue Plan funding as recommended by the federal government to cope with the rising costs and falling revenues it has faced. We want to continue to be in a strong position to care for the day -to -day needs of our City’s residents, and that means ensuring our City’s financial foundation is secure, that the City is fully staffed, our services are fully functioning, and our employees are paid a living wage. HOW MUCH: $55 million budgeted through 2023. Council Update Chief Mike Brown Recently released our Revised Crime Control Plan We have four (4) overall goals: These goals will be achieved through our short, medium and long-term strategies. Strategy: Recruitment, Hiring and Retention Shared Recruitment and Retention Bonus Housing Incentive Take-Home Car Policy Strategy: Community Reestablishment Efforts In mid-2020, Salt Lake City Police Department launched a formalized and extensive downtown community reestablishment and crime mitigation More than 50 officers have participated in these overtime focused area shifts Because their successful efforts, the department is now able to focus on its secondary goal of this program: crime reduction Strategy: Violent Crimes Task Force SLCPD will use COPS Hiring grant funds to create squads to specifically address violent crime The department intends to further address violent crime by forming a 10-person Violent Crimes Task Force (VCTF) The VCTF will work directly with the Salt Lake County District Attorney’s Office and the Project Safe Neighborhood partners to investigate and refer criminal gun-crimes for prosecution Strategy: Police Civilian Response Team We are in the process of implementing a “Police Civilian Response Team” (PCRT) that will start with the hiring of Police Telephonic Specialists (PTS). Non-sworn positions will take telephonic police reports on low-level calls that don’t need an officer response. This will keep sworn officers available for high-prioirty calls to help lower the department's response time. Strategy: Call Diversion and Online Reporting The Department will work with the incoming director of SLC911 to ensure certain low priority calls for service are processed as telephonic calls for service or the caller is directed to online reporting services. Types of calls eligable for potential call diversion and online reporting: non-injury/non-blocking hit and run, ID theft, Lost/Found Property, Theft, Vanadlism, and Car Prowls. Strategy: Business Community Engagement Officer The Department intends to create a Business Community Engagement Officer (BCEO) who will be a direct point of contact for business operators and owners. The BCEO will work directly with SLC911 and Watch Command to respond to non-emergency calls for service that tend to impact our business districts disportionately. BCEO will provide problem solving models to reduce patrol response times for calls for service. October Response Time - 2021 Our average priority 1 response time for October was 14 minutes and 16 seconds. This is up only two seconds from September. October Response Time - 2021 The average Priority 3 average response time dropped 21 minutes and 30 seconds from Sept. to Oct. October Response Time - 2021 The combined average response time for Priorities 1, 2 and 3 dropped 10 minutes and 02 seconds from Sept. to Oct. ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 Memorandum To: Cindy Gust-Jensen and Jennifer Bruno From: Rachel Otto and Lisa Shaffer Date: October 16, 2021 Re: Updated proposal for Rescue Plan funding Dear Cindy and Jennifer, Thank you for your patience with us as we’ve worked toward putting together this updated proposal for American Rescue Plan Act (Rescue Plan) funding, attempting to take into account the FY 2022 budget as adopted and the ongoing obligations therein, other federal COVID relief funding (CARES and ERAP), the potential funding allocated to the City through the federal infrastructure bill, and our ongoing revenue losses due to the continuing pandemic. Our goal with this memo is to provide the overall picture of the Administration’s proposal for Rescue Plan funds in preparation for a future discussion with the City Council. Mayor Mendenhall’s Proposal for American Rescue Plan funds Early in the COVID-19 pandemic, we identified three principles of recovery, revitalization, and preparation for the next wave of this virus: • We will cooperate and act consistently with state and county government actions, but on a timeline driven by local data. • We will ensure that recovery, revitalization, and preparation for future waves of the disease are equitable. • We will learn, evolve, and prepare both internal city operations and external city services. As we passed the one-year mark of COVID-19, we evaluated our current status and re-focused our principles. While we enjoyed a phase of re-opening that felt like a shift back toward “normal,” we are now facing the reality that the virus and its variants will continue to plague our residents and require us to continue to adapt the economic and social structures that form the underpinning of our lives. President Biden’s American Rescue Plan fund proposal focuses on principles 2 and 3, and incorporates the Mayor’s primary objective of furthering equity- driven projects that create lasting change with tangible, positive impacts. This memo describes Mayor Mendenhall’s proposal to use Rescue Plan funds in four main areas: (1) Taking care of the City’s financial health; (2) Homelessness and Public Safety; (3) Creating Community Resilience; and (4) Community Grants. ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 1. Taking care of the City Mayor Mendenhall’s first priority for Rescue Plan funding is ensuring that the City’s financial house is strong and that we remain in a position to care for the employees, residents, and businesses that rely on the City for employment, safety, and services. That means ensuring that our lost revenues are accounted for and our employees are paid fairly. Additionally, the Administration has pledged $2 million for required match funding for the City’s application for a State water and sewer infrastructure project grant fund. This grant is highly competitive and funding is not guaranteed. 2. Homelessness and Public Safety: the City’s greatest current needs Mayor Mendenhall’s second priority for Rescue Plan funding is directed toward our city’s greatest current needs -- resources for those experiencing or at a high risk of experiencing homelessness, and enhanced public safety measures. The Salt Lake Valley Coalition to End Homelessness has identified a need for 300 overflow shelter beds and 450 units of permanent supportive housing in order to vastly reduce the number of unsheltered people on our city’s streets. Salt Lake City has always gone above and beyond when it comes to providing deeply affordable housing and emergency shelter, and while we continue to push for contributions and solutions from sister jurisdictions and other levels of government, we are also committed to seeking creative solutions in our city. Furthermore, the City has experienced a drastic increase in calls for service to our police department, and call response times are lagging. We will continue to recruit more police officers and push forward a new call diversion program in the Police Department, but are also committed to initiating other creative solutions to enhance public safety as well. To that end, Mayor Mendenhall is proposing funding for two new programs: Public Lands Park Rangers and the Community Commitment Program Rapid Intervention Team. Mayor Mendenhall is also proposing that the Council set aside approximately $1 million of the City’s Rescue Plan allocation for emergency winter shelter anywhere in Salt Lake County. Such funds could be used to assist the shelter operator with operations costs, or go toward other expenses such as public safety or neighborhood mitigation. A. Park Ranger Program Over the past few years, Public Lands has experienced a dramatic increase of individuals experiencing homelessness using the parks for overnight camping. This vulnerable population also attracts an increase in people who prey upon them and impact other park users with drug use, drug sales, and other crime. Public Lands employees have found themselves in the middle of this extremely complex community crisis, without training or resources to work safely in this new environment. Public Lands relies on the SLCPD to enforce camping and anti-loitering ordinances, to assist in clearing areas so staff can complete their duties, and to respond to calls for public safety in parks. However, SLCPD has city-wide responsibilities and is not always available for non-urgent park safety needs. The Park Ranger program will maximize public safety, protect park resources, and provide services and information to park visitors. Park rangers may serve as public safety stewards, environmental experts, interpreters of cultural and historical points of interest or a combination of the three. The program is intended to meet the following success indicators: ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 • Making people feel welcome and safe in our parks • Deterring inappropriate activity • Gaining voluntary compliance of park codes and rules • Reducing the number of annual vandalism incidents • Reducing annual costs to repair/replace damaged landscape & infrastructure B. CCP Rapid Intervention Team In September 2020, Mayor Mendenhall launched the Community Commitment Program through the Homeless Engagement and Response Team. The CCP prioritizes outreach to individuals experiencing homelessness while also emphasizing the need to keep public spaces safe, clean, and accessible to all. The first phase of the CCP was a 12-week enhanced neighborhood cleaning program based on neighborhood hot spots reported in CitySourced via the SLC Mobile app. The second phase, which has transitioned into an ongoing partnership with Salt Lake County and over a dozen service providers, focused on intensive encampment outreach of varying lengths of time depending on the size and other characteristics of camps. After approximately 9 months of this second phase, the City and our partners have been in a maintenance stage, during which the City has fewer large encampments but is still attempting to handle the nearly 6,000 CitySourced reports over this past year. This figure is triple the number of complaints reported in the app in years past. To more effectively and rapidly address these complaints from residents and businesses, the Mayor is proposing the creation of a Rapid Intervention Team coordinated through HEART. The HEART coordinator (via a position that was funded by the Council in the FY23 budget) will ensure that complaints are responded to with the appropriate level of outreach through the SLCPD’s CCC or VOA, SLCPD officers to standby if necessary, as well as a City cleaning team working with Advantage Services. By having a dedicated team to respond, Public Services and Waste & Recycling employees will not be pulled away from their regular duties, as they are currently when the County Health Department requires camp abatement support. The Public Services and Waste and Recycling employees will also be available to respond to illegal dumping complaints throughout the City. 3. Creating Community Resiliency through the Westside Community Initiative and a Social Impact Investment Mayor Mendenhall’s third priority for Rescue Plan funding is grounded in the tenet that we need to build strength and resiliency in our city for the segments of our population who have traditionally been left behind. The Westside Community Initiative has been supported by the RDA Board; Phase 1 of the Social Impact Investment exploration was funded by the City Council in 2020. A. Westside Community Initiative As a function of utilizing the tax differential collected by the Inland Port Authority and allocated to the RDA for affordable housing, the RDA Board has endorsed the creation of an Urban Land Fund in order to develop and secure perpetual housing affordability on the City’s west side. Under the direction of the RDA, the fund would maximize opportunities for affordability in both rental housing and home ownership as well as limited commercial uses ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 within mixed use developments. RDA staff is currently working on potential options for the structure of the land fund. This process includes the evaluation of opportunities for community wealth building and cooperative housing models within a perpetual housing fund. The allocation of this funding source is intended to offset the impacts on the Westside from the Inland Port development. The opportunity of this program is to strengthen the community by providing a mechanism to help reverse the historical impacts of disinvestment and inequality on the residents in this area of the City. Mayor Mendenhall proposes the allocation of $5 million in seed funds for implementing the policy proposals that emerge from the current study, incorporating the following goals: • Land with a Long-Term Approach to Continuously Serve a Community-Defined Purpose WCI will take a long-term approach to land development and community building so that the RDA may retain the fee ownership to and a reversionary interest in the property. By ground leasing to development partners, the RDA will provide an opportunity to receive revenue generation to serve other public benefits. • Create Opportunities for Revenue Generation while Balancing the Implementation of Public Benefits WCI will strive to balance the development of property with the incorporation of public benefits. Benefits such as affordable housing and below-market commercial space which generate limited or no cash flow would potentially be subsidized with land uses that generate positive cash flow. Revenue generated by projects and received by the RDA will then be reinvested back into the WCI with the goal of furthering shared prosperity. • Assist the Westside in Mitigating Gentrification and Displacement WCI will acquire land with the goal of holding it for the community in perpetuity, thereby removing land from the speculative market so that it serves low and moderate- income residents in perpetuity. Housing will remain affordable even as neighborhood change occurs and gentrification pressures mount, which protects families from displacement. • Give Lower Income Households the Opportunity to Build Wealth Through Ownership WCI will create opportunities for families to buy homes at affordable prices by focusing on a shared-equity model. A shared equity model offers an alternative form of ownership that provides benefits traditional markets cannot, such as long-term housing affordability and the ability for low and moderate-income families to build equity. When families decide to sell, they will receive their portion of the appreciation but the RDA remains as the land owner and is in the position to continue to sell the home at a below- market price, making it affordable to another family of limited means. Keeping the home affordable, from family to family, will benefit future generations by acting as a stepping stone for low-income families to go from renting to building wealth. • Engage Community Members in Development Decisions The RDA will involve the community in the planning and goals regarding long term land use and housing development. This can translate into residents actively involved in creating positive change within their communities and projects that reflect the value of its residents. The result will be projects that incorporate a shared mission and vision with the community. • Leverage Resources for Other Neighborhood Development Purposes Revenues acquired through ground leases or partnerships could contribute to other purposes, including subsidizing deeply affordable housing, below-market commercial space, infrastructure, public art, etc. ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 • Collaborate with Other Partners to Broaden the Pool of Funding and Expertise The RDA would actively work to acquire outside funding sources and professional resources by bringing together financial institutions, the private sector, nonprofits, public officials, other government agencies, researchers, and practitioners to collaborate on community and economic development activities. • Carry Out Efforts with a “Collective Impact” Approach The RDA will continuously evaluate how projects work together to address common goals through a “collective impact” approach that produces measurable results. These measurable results will be tracked and reported on to promote data-driven and outcome-based decisions. B. Social Impact Investment In October 2020, the Department of Economic Development contracted with the Sorenson Impact Center (SIC) to research and propose a series of solutions that can be financed through social investments that would support the growing needs of Salt Lake City residents and operate within the goals and priorities of Salt Lake City. These include improving the City’s Opportunity Index Score and access to economic opportunity, while providing an avenue to improve the lives and economic mobility of City residents. SIC has identified two impactful interventions -- Early Child Care & Education and Workforce Opportunity, described briefly here: (i) Early Child Care and Education: • Expansion of Salt Lake City School District Pre-K. We estimate this intervention will provide additional access for at least 640 low- and moderate-income (LMI) 3 and 4 year olds, while increasing coaching for secondary impact of 640-1,000 children over a 5 year period. • Expansion of Head Start classrooms and access. We estimate this intervention will provide additional access for at least 1,700 underserved 3 and 4 year olds living in Salt Lake City over 5 years. • Implementation of a City resident focused home visiting program to improve outcomes, including infant and maternal health, economic self-sufficiency and increased economic mobility, increased child cognitive development and reducing incidences of child neglect and abuse. • Increased capacity of free or low-cost, high-quality child care and early childhood education and access in target neighborhoods. • Professional development and wage supplement for child care educators to attract and retain a more high-quality and stable workforce. This will impact overall accessibility, availability, and quality of child care programs for Salt Lake City residents. (ii) Workforce & Opportunity: • Workforce interventions focused toward increasing skills and earnings of working adults, targeted towards LMI communities and, in particular, working mothers currently undocumented by unemployment numbers. By supporting individuals with immediate family, the program will have a secondary impact on broader family networks. • Workforce interventions focused on high school completion and early workforce engagement, targeted at LMI and first generation students. ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 In Budget Amendment 4, Mayor Mendenhall proposes to allocate $150,000 in General Fund money to complete Phase 2 of this study. Mayor Mendenhall further proposes that the City Council hold approximately $10 million of the City’s Rescue Plan appropriation until the completion of Phase 2, when the City and Sorenson Impact Center have fully completed a recommendation on the financial structure of the investment, including but not limited to the contributions of private investors and the long-term financial viability of these programs. Because Rescue Plan funds need not be spent until the end of 2024, Mayor respectfully requests that the Council leave a portion of the City’s funds un-allocated until the completion of Phase 2, which is anticipated to take 6-9 months, at which point the Administration and Council can make an informed decision on seed funding for this initiative. During this time, the Administration will also be working with potential investment partners with the ultimate goal of funding a $100 million social impact project on the two interventions Sorenson has identified as the most impactful to the long-term economic health of City residents. 4. Community grants Mayor Mendenhall’s final proposed allocation is a $4 million community grant fund. These grants will give community organizations and local businesses the opportunity to propose to the City what COVID-related problems they are trying to solve City staff and volunteers from relevant City boards and commissions would select grantees at the conclusion of an open solicitation process. The Administration proposes to split these grant funds into two categories, with half of the allocation going to Economic Development and half to Community and Neighborhoods. These departments will scope the challenge facing residents and businesses, and launch two solicitations seeking proposals on the COVID-related problem that the applicant desires to address under the following broad categories: o CAN grants -- Nonprofit support (to be further refined by CAN): This could include programs like retraining of displaced workers, nonprofit legal services for eviction assistance, expanded educational opportunities, resources to mitigate the digital divide, access to healthcare for underserved populations, mental health assistance, etc. o DED grants -- Business assistance (to be further refined by DED): This could include grants for businesses not included in other government programs during the pandemic, especially small and local businesses, and support for artist/artisan businesses. Conclusion Thank you again for your collaboration on this generational funding. We know that the Mayor and City Council share the desire to create both immediate and lasting relief for the City’s residents and look forward to continuing this conversation with you. COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Jennifer Bruno, Deputy Director DATE: October 19, 2021 RE: Informational/Future Budget: Sorenson Impact Center Social Investment Study and Recommendations PROJECT TIMELINE: Briefing 1 October 19, 2021 Briefing 2 Nov 9, 2021 Set Date: TBD Public Hearing: TBD Potential Action: TBD Follow up discussion The attached slide deck is what the Administration provided at the last Council briefing on October 19th. It contains some extra information and financial detail that helps illustrate the potential division and scope of potential programs, including potential administrative fees, over the 5 year investment term. In subsequent conversations, Council Members still had quite a few questions, some of which may be addressed by work in phase 2. A selection of those questions includes: - How has this funding been prioritized over other City issues, and how can that be explained to constituents? - To what extent have other entities been brought into the conversation and at what commitment level (State, County, School district) - How can this program benefit children into the future, beyond the 5 year horizon outlined in the proposal? - Please reference Page 3 of this staff report for other policy questions. As a result of these subsequent conversations, Council Staff has outlined a couple of principles or conditions that could be added to the $150,000 requested to complete Phase 2 of this study, in Budget Amendment #4 (which is the next item on the agenda): -The Council allocates $150,000 in Budget Amendment #4, for the Sorenson Impact Center to continue work on this potential program, with the understanding that: Page | 2 o That the Goal of the program is generational change, and in order to do that it must be ongoing beyond the initial investment term, and that the City’s funding is intended to leverage investment from the private/philanthropic sector. o The City’s investment will not supplant existing programs and funding, and that assurances are obtained from partner agencies that this understanding will continue for the duration of any program created with this seed money. o That the Sorenson Impact Center engage the totality of groups that provide these services and conduct transparent evaluation processes to determine which partners are best positioned to deliver this long term generational change. o That there be strict and transparent metrics to show goals are reached, particularly that the opportunity index score is improving in areas where it currently lags. The following information was provided for the October 19th discussion. It is provided again for reference. ISSUE AT-A-GLANCE The Council will receive a briefing on a proposal laying the groundwork for the City’s first Social Impact Investment Project. Social Impact Investing, sometimes referred to as a social impact bond, is a financing strategy that leverages private investment in government programs to pay for specific desired outcomes, and passing some dividend on to investors for achieving those outcomes. (Staff note: in this specific case the concept of passing savings on to investors is not applicable as the City is not currently paying for early childhood education) The proposal before the Council calls for the Sorenson Impact Center (SIC) at the University of Utah, to continue work on Phase II of their social investment study for the City, by allocating $150,000 from General Fund Balance, and allocating $10 million from the City’s American Rescue Plan Act (ARPA) dollars into a restricted account to implement recommendations (Note: The Administration may be providing an updated recommendation for ARPA dollars, so this amount is subject to change. Staff has not received that update as of the printing of this report). The overall intent of this effort is to increase the Opportunity Index Score1 in all areas of the City. The Opportunity Index is a composite measure of economic, educational, health and community indicators, and increasing this score is referenced as one of the equity goals in Plan Salt Lake, adopted in 2015 (see page 37 of Plan Salt Lake, Attachment 4).2 Note: work on Phase II has already begun using $50,000 allocated from the Wasatch Front Regional Council (WFRC). The Administration will be providing an overview of all City ARPA dollars in a separate transmittal that will be discussed at a future meeting, but specific to this initiative the Mayor’s office has provided the following: Each of these categories could easily justify greater allocation, but Mayor Mendenhall is targeting a significant portion of this funding on an investment that will make a tangible, generational difference in our City. The SIC researched the City’s demographics, current data and needs assessments, and conducted interviews with local service providers to identify current and intergenerational barriers to economic opportunity. A key takeaway is that children who grow up in poverty, even for a short time are more likely to live in poverty as adults, and that in Salt Lake City, this is disproportionately concentrated on the City’s west side. The Administration’s transmittal notes “…improving outcomes for at risk children and families enhances the equitable economic growth of communities.”(p. 3) See Attachment 1 https://opportunityindex.org/methods-sources/ 2 http://www.slcdocs.com/Planning/Projects/PlanSaltLake/final.pdf Page | 3 2 for full Phase 1 report. SIC is proposing multiple interventions aimed at interrupting this cycle, including (see Administrative transmittal for more program details): - Early Child Care and Education o Expanding existing Pre-K with the Salt Lake City School District (SLCSD) o Expanding Heard Start access o Implementing a home visiting program to improve infant and maternal health o Increase low-cost child care in target neighborhoods o Enhance wages for child care providers to attract and retain a more stable workforce - Workforce & Opportunity o Increasing skills of working adults, targeting working mothers and Low/Moderate Income communities o Focus on high school completion and early workforce engagement, targeting first generation students and Low/Moderate Income Communities The Administration indicates that if this effort goes forward after Phase 2, it could leverage up to $90 million in private investment. Phase 2 will identify how the above interventions can be structured in a financially sustainable way, and will also evaluate complementary/additional programs including – outcome incentive fund, child care infrastructure capacity, on-time high school graduation, improved data infrastructure. The Administration has indicated that Phase 2 is split into two parts, and the Council may wish to schedule a discussion after Phase 2a is complete to identify if key financial questions are answered in a way that makes the Council comfortable moving forward with Phase 2b. The transmittal states that the goal is to start these interventions as early as Spring 2022. The Sorenson Impact Center and Economic Development have provided a summary of different pay- for-success models, and a flowchart of how funds flow from the City, Private Sector, and back to investors (See Attachment 1). Staff note: to actually appropriate and release both sets of funds, the request would have to go through a Budget Amendment/public hearing process. Finance has indicated they will work with the Economic Development Department to facilitate that processing if the Council is supportive. Allocating these dollars before the second distribution of ARPA dollars is received by the City (estimated in June 2022) could complicate the FY 23 budget process to the extent that programs funded in FY 22 need to continue. The Council may wish to discuss the timing of allocation with Finance further. Policy Questions 1. The Council may wish to ask for a separate briefing on the concept of Social Impact Investing/Bonds, as there have been different structures across the country in recent years. 2. Staff clarified with the Administration that the $10 million investment from the City could be seen as “seeding” the investment of private sector dollars, and that some of the City funds could be used to repay investors (through a third party) if outcomes are achieved. Staff also clarified with the Administration and Sorenson Impact Center that some investors may be philanthropic and may not need to be repaid. The Council may wish to discuss with the Administration whether it has explored setting up this program solely with philanthropic dollars, as repayment to investors with City funds is a new concept for Salt Lake City. 3. The Council may wish to ask the Administration at which point the program is officially a “go”. While the $10 million in ARPA dollars are in a restricted account and would only be released with Council approval after Phase 2 (needed to address a number of questions), given the work Page | 4 invested by the School District and Utah Community Action, as well as private investor commitments, it would seem hard for the City Council to not release the funds at that point. Economic Development Staff has indicated that a potential decision point could be after phase 2a is complete. The Council may wish to confirm this understanding. 4. The Council may wish to ask for more information about the repayment metrics for investors (including guaranteed and contingent). There has been increased scrutiny of some Social Impact Bonding programs nationwide in large part due to metrics set early in the process. 5. The Council may wish to ask if there is an opportunity to change course or restructure/rethink programs once Phase 2 is concluded if there are key strategies that are identified as more or less critical, or if other urgent City needs arise. 6.The Council may wish to ask the Administration how this proposal impacts the City’s overall ARPA “budget”, specifically the funds from ARPA committed in the FY 22 budget that will likely need to continue to FY 23 (expanded Youth City programs for example), as well as other ARPA funding proposals as described in the pending overall ARPA transmittal, particularly if there is a delay in the second distribution of these federal funds. 7. The Council may wish to ask if spend-down requirements from the federal government on ARPA dollars would complicate or prohibit repayment to investors at a later date. 8.The Council may wish to discuss with the Administration how efforts will be scaled if in future years these programs are not as financially sustainable as they are initially, either because of changes in partner participation or other investment levels well into the future. For example is there a possibility that a City investment beyond the initial $10 million in ARPA funds will be needed? 9. The Council may wish to ask the Administration if other goals identified in Plan Salt Lake were reviewed by the Sorenson Impact Center for their bearing on the Opportunity Index Score, and/or if those indicators could be viewed through the lens of traditional municipal services, considering this is essentially a municipal investment. 10. The Council may wish to ask the Administration who will be making decisions about prioritizing among the many worthy endeavors noted in the Phase 1 recommendations and the Phase 2 potential complementary programs. 11. The Administration indicates that if sufficient private funds are not raised, that the proposal will be scaled accordingly. The Council may wish to discuss how this scaling will logistically happen, and what bearing that may have on the long-term financial viability of these programs. 12. The Council may wish to ask whether the Administration intends to consider as Administrative the costs to engage with the Sorenson Center, establish more contracts, monitor the program, coordinate with the other service delivery partners and coordinate with investors, and whether those costs are covered in the City’s allocation or if additional resources are needed. 13. The Council may wish to have a policy discussion about how to define “City Funds” and whether that includes all of the following categories – property taxes, sales taxes, fees, state/federal grant dollars – in the context of expanding beyond the City’s typical municipal scope with City dollars. 14. The Council may wish to have a policy discussion about whether to engage with State, County and School District leaders to discuss the extent to which those entities consider it relevant or necessary to either retain or to re-think the traditional and somewhat discrete roles of each level of government. The ‘traditional roles’ of each entity may be less clear than they have traditionally been, simply based on the number of needs outstripping the available resources. The flexibility of the ARPA funding, and desperate community needs due to the Page | 5 increase in the number of persons experiencing homelessness, and the pandemic may contribute to all entities to stepping outside their organization's traditional role. ADDITIONAL INFORMATION A. At the request of the Administration the Council funded an agreement with Sorenson Impact Center in Budget Amendment #7 of 2020 ($50,000 from the General Fund). The Department of Economic Development contracted with the Sorenson Impact Center in October of 2020 to research and propose the most impactful social investments with the intention of laying the groundwork for the City’s first social impact investment/bond program. The Administration indicated at that time the objective would focus on improving upward mobility for Westside residents. See attachment 2 for original scope. This is the write up from that time: A-7: Sorenson Impact Center Contract for Social Impact Bond Consulting – (General Fund Balance - $50,000) Funding is being proposed for a contract with the Sorenson Impact Center at the University of Utah for social impact bond consulting. The City has never participated in a social impact bond. The consultant would produce social impact bond options for the City to consider. The Administration stated these options would focus on improving upward mobility for westside residents through specific interventions to be identified. In general terms, a social impact bond is a contract between a government and organizations providing upfront financing. The goal is to achieve better social outcomes that save the government money. If the program is successful, then the government shares some of the savings with the investors in addition to paying back the original investment. B. As a part of Phase I SIC reviewed literature and historical research on how to reduce inequities, conducted a review of existing programs in and partners in SLC, developed a strategy included in their report, and briefed the City Administration. C. Staff inquired about the potential for duplication of services from other government sectors and the Administration provided the following helpful information (emphasis added): “Sorenson Impact Center (SIC) engaged the Salt Lake City School District Early Childhood Director, the Executive Director of Utah Community Action (Head Start), Salt Lake Community College Westpointe Director, the Utah Office of Child Care, Nurse Family Partnership, State of Utah Office of Child Care. This project would expand preschool, Head Start and home visiting in SLC (not duplicating existing services) and a promising workforce development model, potentially at the SLCC Westpointe campus on our west side. SIC would be leveraging partnerships with the school district and the County (they have a home visiting program that includes Nurse Family Partnership). In Phase I, we ensured there wouldn’t be duplication but collaboration. Current estimates indicate that demand far exceeds supply of services. The purpose of Salt Lake City taking the lead is to ensure investment benefits our target area, which is west Salt Lake City.” D. The Administration indicates that they are closely watching federal discussions of potential additional funding for pre-K and that the need for these programs greatly outpaces even what is being discussed at a federal level. E. The Administration has provided the following timeline for phase 2 and implementation: Page | 6 a. Early July 2021 – Achieve strategy approval from Mayor’s Office, SLC Council, Dept of Economic Development (staff note: this briefing is the first public discussion for the SLC Council. Brief small group discussions occurred in Sept) b. Phase 2 - To be determined (Staff note: Phase 2 can begin once the $50,000 approved by the WFRC are paid to Sorenson) c. 4-6 months if funds are direct appropriation and donations, 6-8 months if investors are needed - Feasibility assessment complete, “initial term sheet & closing” (see policy question above) d. Fall 2022 – Target date for programs to begin ATTACHMENTS -Attachment 1- Pay-for-success models overview and flowchart -Attachment 2 - Phase 1 Study -Attachment 3 - Phase 1 Scope -Attachment 4 - Plan Salt Lake (Adopted 2015) Driving Equitable Economic Development in SLC, UT Prepared by the Sorenson Impact Center 1 Table of Contents Overview of the Following Slides +Background & Context +Method & Findings +Outlining a Solution +Path to Implement 2 Background & Context 3 Sorenson Impact Center The Sorenson Impact Center at the University of Utah David Eccles School of Business helps organizations achieve their impact vision by connecting capital to social and environmental solutions, helping organizations measure and improve impact, and advocating for data-driven impact decisions. Learn more at http://www.sorensonimpact.com 4 Background Review of Sorenson Impact Center Phase I work in partnership with SLC DED. Goal To Identify opportunities to use a social impact investment in support of: +Salt Lake City DED Goals and Priorities, using the “Opportunity Index Score”, the benchmark index used by SLC DED +Mayor Erin Mendenhall’s 2020 Plan for Salt Lake City +Equity, Inclusion, and Belonging & Geographic Equity Transition Memo 5 Methods & Findings 6 Our Phase I Process 7 Our methods for Phase I included : +Literature Review: Comprehensive review of existing needs assessment reports, interviews, and existing initiatives in Salt Lake City +Data Review: Data analysis and aggregation, including a break down of metrics and methods used in the Opportunity Index +Landscape Analysis: Review of existing programs and partners in Salt Lake City, UT +Interviews & Feedback: Discussion with local service providers already working with target communities Opportunity Index: Dimensions & Indicators Dimension: Economy 1.Jobs: Unemployment rate (percentage of the population ages 16 and older who are not working but available for and seeking work) 2.Wages: Median household income (in 2010 dollars) 3.Poverty: Percentage of the population below the federal poverty level (the amount of pretax cash income considered adequate for an individual or family to meet basic needs) 4.Income Inequality: 80/20 ratio (ratio of household income at the 80th percentile to that at the 20th percentile) 5.Access To Banking Services: Number of banking institutions (commercial banks, savings institutions and credit unions) per 10,000 residents 6.Affordable Housing: Percentage of households spending less than 30 percent of their income on housing-related costs 7.Broadband Internet Subscription: Percentage of households with subscriptions to broadband internet service 8 Dimension: Education 1.Preschool Enrollment: Percentage of 3- and 4- year olds attending preschool 2.High School Graduation: On-time high school graduation rate (percentage of freshman who graduate in four years)* 3.Postsecondary Education: Percentage of adults ages 25 and older with an associates degree or higher Dimension: Health 1.Low birth weight: Percentage of infants born weighing less than 5.5 pounds. 2.Health insurance coverage: percentage of the population (under age 65) without health insurance coverage 3.Deaths related to alcohol/drug use and suicide: deaths attributed to alcohol or drug poisionging or suicide (age-adjusted rate per 100,000 population) Dimension: Community 1.Volunteering: Percentage of adults (ages 18 and older) who reported they volunteered during the previous year 2.Voter Registration: Percentage of adults ages 18 and older who are registered to vote 3.Youth Disconnection: Percentage of youth (ages 16-24) not in school and not working 4.Violent Crime: Incidents of violent crime reported to law enforcement agencies (per 100,000 population)* 5.Access to primary health care: number of primary care physicians (per 100,000 population) 6.Access to healthy food: number of grocery stores and produce vendors (per 10,000 population) 7.Incarceration: number of people incarcerated in jail or prison (per 100,000 population 18 and older* *Indicator only contributes towards the state level dimension score. We have focused on interventions that will impact the Economy and Education due to their influence on economic mobility, opportunity and success as well as compatibility with social impact investment structures. Exploring factors to significant differences in median household income by race and ethnicity A myriad of interconnected factors contribute to median household income, particularly in the context of race and ethnicity; including but not limited to*: +Societal factors, including discrimination +Intergenerational transfers of wealth and the cumulative impacts of this over time +Demographic factors such as age, household size, and marriage and cohabitation rate +Economic factors such as earnings per worker, years of experience, educational attainment, number of hours worked, and occupation +Behavioral factors like choice and effort *Factors acknowledged in the Gardner Policy Institute Data Book: Diversity in Utah Race, Ethnicity, and Sex. May 2021. 9 Key Findings in SLC: Diversity, Education, & Income +Communities of Color: City Council Districts 1 and 2, which include Rose Park, Glendale, Downtown SLC, are majority- persons of color. The largest demographic group is the hispanic/latine community (48.3% and 47.8% respectively. +School-Age Children: City Council District 2 has the highest share of children under age 5 (9.2%) and between ages 5-17 (22.8%). City Council District 1 has the second-highest share. +Educational Attainment: In City Council Districts 1 and 2, less than 20% of residents 25 or older hold a Bachelor’s or higher (District 2 at 13.5% and District 1 at 17.1%). City Council Districts 1 and 2 have the highest share of those without a high school diploma (27.7% and 32.9%) +Median Household Income. The Median Household Income in Districts 1, 2 and 4 are the lowest in Salt Lake City. (Kem C. Gardner Policy Institute, Salt Lake City Data Book, 2020) 10 Non-White Population % (by City Council) Median Household Income (by City Council) Identifying Intervention Sector: Needs in Workforce Opportunity & Early Care and Education SLC requires citywide investment in social infrastructure to support greater access to quality workforce opportunity through on time graduation, training and job placement in addition to increased access, affordability, and quality early care and education. Together, interventions in these areas can support: +Economic Mobility: Children who grow up in poverty, even for just a few years, are more likely to live in poverty as adults. Children who have never lived in poverty are 10x more likely to complete a college degree by 25, compared with children who grew up persistently poor. Census tracts within Salt Lake City along and west of the I-15 corridor face the highest barriers to economic opportunity, including challenges in obtaining employment and education. These areas also have higher poverty rates, contributing to a persistent cycle of intergenerational poverty. +Equitable Growth: These census tracts have a more diverse population, higher population growth rates, and the highest number of school aged children (0-17). That being said, Salt Lake City as a whole, has a need for greater access to early care and education. 11 Generational Needs in Salt Lake City Outlining a Solution 12 SLIDE SLIDE BASIC SLIDES SECTION Early Education and Care and Home Visiting Workforce Opportunity Target population: Young Adults (high school and post-high school but pre post secondary education), primarily residents living west of I-15 Target Geography: Salt Lake City Target Outputs: improve high school graduation, post-secondary enrollment, and employment Target Outcomes: improved wages/income, reduced income inequality, greater financial stability We focus on two areas of intervention - workforce opportunity and early care and education - to approach equitable economic growth through multiple generations. By enhancing the lives of children and the families that support them, we can foster an ecosystem of change for lasting results. 13 There is no silver bullet solution to equitable economic growth. Target population: Children ages 0 - 6, residents of Salt Lake City Target Geography: Salt Lake City Target Outputs: increased enrollment in child care and preschool programs, access to home visiting for mothers with high risk factors Target Outcomes: improved Kindergarten readiness: literacy and numeracy scores, greater parent workforce participation, improved maternal and infant health Multi- Generational Interventions: Improve the Opportunity Index Score & Have Lasting Impact 14 Workforce Opportunity targeted at Young Adults Economy (4/7) - Jobs, Wages, Poverty, Income Inequality Education (2/3) - High School Graduation*, Post Secondary Education Community(3/7): Youth Disconnection, Violent Crime*, Incarceration* Health (1/3): Health Insurance Coverage Improving Early Care & Education Access, Affordability, and Quality Economy (3/7) - Jobs, Poverty, Income Inequality Education (3/3) - Preschool Enrollment, High School Graduation*, Post Secondary Education Community (3/7): Youth Disconnection, Violent Crime*, Incarceration* Health (2/3): Low birth-weight, Health Insurance Coverage Together, interventions across these two areas can address over half of the indicators feeding into the Opportunity Index We can address multiple generations through a combination of interventions in workforce development and early care and education. Complementary wraparound services for families recognizes the interconnectedness between children and their caregivers. By supporting adults in children's’ lives, we will see positive outcomes for children, as the adults are better able to meet their needs and their children’s needs at the same time. Program Interventions 15 In the context of our research, we have identified 4 programs that most effectively meet the goals and priorities of SLC DED in improving the City’s Opportunity Index Score, promoting equitable economic growth, and that further advance the goals of the SLC as outlined in the Mayor’s 2020 plans. The following slides provide conservative estimates on cost and target population size. These numbers will be finalized during Phase II, in which Sorenson Impact Center will conduct a full feasibility assessment for each of the 4 interventions, working in partnership with service providers and the communities they serve. 16 Supporting Families through Targeted & Complementary Interventions: Social Impact Investment Interventions Type of Intervention Target Population # served (over 5 yrs)Est. % of need addressed Est. min. Cost (over 9 years) Est. max cost (over 9 years) Est. SLC Cost (max cost over 9 years) Workforce Development LMI, young adults (single mothers), preferably living along or west of I-15 corridor 845 individuals, additional impact to families TBD $4.3m $5m $3.8m PreK (two discrete programs) 3 and 4 year olds (target LMI); at risk 3 and 4 year olds Additional access for at least 640 children (plus impact for an additional 640 -1,000 from increased coaching); 1,700 individuals ~33%$19m $21.9m $11.8m Home Visiting**LMI families prenatal and with young children 1,000 families TBD $7m $8.7m $4.4m Total Total estimated project costs over 9 years* $30.3m $36m $20m Additional Project Costs (Legal, Project Manager, Evaluation)Total est. $1.6m* *The total program and project costs will be split across funding sources. In addition to contributions from Salt Lake City, we will seek to support financing structure through capital from foundations and federal funding (stimulus and non-stimulus). **Home visiting provider could serve 560 families per year (2600 over 5 years) Countywide with additional funding. We included 200 families per year. 17 Financing Social Impact Investment Interventions and Project Costs 18 Leveraging City Dollars Based on estimates following Phase I, we have identified four interventions with strong evidence, making a use-case for a total $37m social impact investment over 9 years. In addition to $10m from the City towards this initiative, we will source capital from additional funders. 19 Supporting Families through Targeted & Complementary Interventions: Additional Opportunity for Impact Our team has primarily focused on the $37m social impact investment, however the the Administration has discussed the potential for partner funding that may substantially scale efforts in the neighborhood of $100m. Path to Implement 20 21 Transition to Phase II Target Timeline for Phase II and Implementation: +Phase IIa will take approximately 2 - 4 months +Phase IIb will take approximately 6 months www.sorensonimpact.com 22 DEPARTMENT of ECONOMIC DEVELOPMENT ERIN MENDENHALL MAYOR BEN KOLENDAR DIRECTOR CITY COUNCIL TRANSMITTAL _______________________ Date Received: ___________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: ____________ __________________________________________________________________ TO: Salt Lake City Council DATE: August 25, 2021 Amy Fowler, Chairperson FROM: Benjamin Kolendar, Director, Department of Economic Development SUBJECT: Sorenson Impact Center Social Investment Study and Recommendations STAFF CONTACTS: Jacob Maxwell, Workforce Development Manager, Jacob.maxwell@slcgov.com DOCUMENT TYPE: Budget Request RECOMMENDATION: For City Council to approve the $150,000 for Phase II and $10m from American Rescue Plan Act (ARPA) in a restricted account contingent upon delivery of Phase II and approval of City Council to release the funds. BUDGET IMPACT: ● Expense: The request from the Administration is $150,000 for completion of Phase II and a $10m appropriation of American Rescue Plan Act funds in a restricted account contingent upon delivery and approval of Phase II recommendations. ● Revenue Consideration: The City will leverage the $10m to fund a $100m project. ● Revenue Consideration: The project will also seek to increase the tax base. The estimated impacts will be determined in Phase II. Lisa Shaffer (Sep 15, 2021 12:33 MDT) 09/15/2021 09/15/2021 BACKGROUND/DISCUSSION: In October of 2020, the Salt Lake City Department of Economic Development (DED) contracted the University of Utah Sorenson Impact Center (SIC) to research and propose a series of solutions that can be financed through social investments that would support the growing needs of Salt Lake City residents, and operate within the goals and priorities of the Department of Economic Development, Mayor Mendenhall, and Salt Lake City Corporation. This phase was funded by the City Council in August 2020 for $50,000. Objectives include improving the City’s Opportunity Index Score and access to economic opportunity, while providing an avenue to increase the City’s tax base. During this phase, considerable attention was paid to areas west of I-15 within Salt Lake City, which have seen historic disinvestment and redlining practices. SIC has provided additional insights into the census tracts along and west of I-15 in Salt Lake City, which experience higher rates of poverty and unemployment, larger populations of school-aged children (aged 0-17) and diverse populations as a percentage of total (on the west side of Salt Lake City, over 75% of children under 5 and aged 5-19 are children of color), and lower median household income and rates of educational attainment, (see attached presentation for more information). SIC highlights that children who grow up in poverty, even for just a few years, are more likely to live in poverty as adults. Children who have never lived in poverty are 10x more likely to complete a college degree by 25, compared with children who grew up persistently poor. Census tracts within Salt Lake City along and west of the I-15 corridor face the highest barriers to economic opportunity and potential for continuing in the cycle of intergenerational poverty, including challenges in obtaining employment and education. As such, SIC proposes interventions targeted at multiple generations - by enhancing the lives of children and the families that support them, we can foster an ecosystem of change for lasting results. To inform Phase I recommendations, SIC used administrative data, existing needs assessments and reports, system and provider level interviews, and reference to the Opportunity Zone Index, a tool used to guide priorities of the SLC Department of Economic Development (Opportunity Index can be found at https://opportunityindex.org/). The Opportunity Index Score is the metric in the 2015 Plan Salt Lake Master Plan for measuring equity. Upon assessment, review, and synthesis of these data and research, SIC has identified several areas of intervention to combat intergenerational poverty, tackle inequity, and provide more equitable and long-term economic opportunity for all residents of Salt Lake City, beginning with children and their families. This strategy will also promote the City’s economic and equitable growth. The areas currently being explored for intervention include: ● Early Child Care and Education: ○ Expansion of Salt Lake City School District PreK. We estimate this intervention will provide additional access for at least 640 Low to Medium Income (LMI) 3 and 4 year olds, while increasing coaching for secondary impact of 640-1,000 children over a 5-year period. ○ Expansion of Head Start classrooms and access. We estimate this intervention will provide additional access for at least 1,700 at risk 3 and 4 year olds living in Salt Lake City over 5 years. ○ Implementation of a City resident focused home visiting program to improve outcomes including infant and maternal health, economic self-sufficiency and increased economic mobility, increased child cognitive development and reducing incidences of child neglect and abuse. We estimate this intervention will provide additional access for at least 1,000 LMI families prenatal and with young children living in Salt Lake City over 5 years. ○ Increased free or low-cost quality child care and early childhood education capacity and access in target neighborhoods. This will impact future child care accessibility and availability. ○ Professional development and wage supplement for child care educators to attract and retain a more high-quality and stable workforce. This will impact overall accessibility, availability, and quality child care programs for Salt Lake City residents. ● Workforce & Opportunity: ○ Workforce interventions focused towards increasing skills and earnings of working adults, targeted towards LMI communities and in particular, working mothers currently not recorded by unemployment numbers. We estimate this intervention will provide education certification, career coaching, and quality job placement for at least 840 LMI young adults (with preference of residents living West of I-15) over a 5-year period. By supporting individuals with family, the program will have a secondary impact on broader family networks. ○ Workforce interventions focused towards high school completion and early workforce engagement, targeted at LMI and first generation students. The intervention areas are anticipated to primarily address economic barriers for lower income individuals and families, and were selected according to goals and priorities of the City and Department of Economic Development, including, but not limited to: A. Increased access to economic and education opportunity for all SLC residents; intentional equity, every day; B. Improvement to the Opportunity Index Score; C. Growing the tax-base for Salt Lake City; and D. Long-term sustainable solutions and strategies for economic growth. Research shows that investing in at-risk young children and families improves their short and long-term educational, labor market, health and well-being outcomes, creating a virtuous intergenerational cycle that benefits individuals, families, communities and government. Further, improving outcomes for at risk children and families enhances the equitable economic growth of communities. To meet these goals and priorities, the Salt Lake City Department of Economic Development, in partnership with SIC, request a $10m appropriation. This appropriation provides an opportunity to leverage an additional amount of private investment, up to $90m, to support the strategy and interventions described above that promote more equitable growth in Salt Lake City. SIC will support the City through the next phase of work, which includes feasibility assessments for all interventions to ensure implementation success and intended outcomes will be achieved, financial analysis and structuring to secure private funding, and implementation of interventions. In addition to expansion of Salt Lake School District PreK, Headstart, home-visiting, and targeted workforce development program, SIC will support evaluation, feasibility and implementation of complementary intervention and programs, including: ● Outcome Incentive Fund ● Child care Infrastructure and Labor Capacity ● On-Time High School Graduation for First Generation High School Students ● Improved Data Infrastructure ● Programmatic Sustainability (Evergreen Fund) Final recommendations for the interventions will be a part of Phase II. Once Phase II is approved by Council, the $10m appropriation would be released for the program structure. Sorenson Impact Center and the Department of Economic Development will be at the table to present. Next Steps SIC has completed “Phase I” of their contract with the Department which has been paid in full through 2020 BA7. In this Phase I scope of work, SIC has: ● Performed literature review & landscape analysis: historical evidence on how to reduce existing inequities and improve equities ● Conducted review of existing programs and partners in Salt Lake City, UT ● Established background and foundation for a comprehensive, evidence-based strategy to achieve economic and societal benefits ● Developed a comprehensive and coordinated strategy ● Briefed City policy makers The Department of Economic Development would like to move to Phase II, which has a total cost of $200,000. The first $50,000 was paid for with EDA funds distributed by the Wasatch Front Regional Council. This funding is referred to as the Phase II(A) Scope. Phase II of this Social Impact Investment work includes two major workstreams: (1) Feasibility Assessment; and (2) Financial Analysis and Structuring. We anticipate this work beginning with a goal of implementing the target interventions during the first half of 2022. ATTACHMENTS: ● Next Steps: Phase II Scope of Work 32 Transition to Phase II Prerequisites from Salt Lake City + Strategy Approval from SLC Mayor’s Office, SLC CIty Council, SLC Dept. of Economic Development + Soft Commitment to proceed with the intention of funding outcomes ($20m appropriation) Other Prerequisites + Confirmed interest and capacity from service providers for each intervention Target Timeline for Phase II and Implementation: + Early July 2021: Achieve prerequisites listed above + 1 July 2021: Begin Phase II + Early December 2021 - 31 March 2022: Feasibility Assessment Complete, Transaction Structuring targeting initial Term Sheet & Closing + Closing - 31 May 2022: Target Intervention to begin* 33 Activities in Social Impact Phase II A: Feasibility Assessment Feasibility Assessment: +Activities for each intervention: +Validate estimations of size and characteristics of the eligible target population +Identify outcome metrics for each intervention and target population +Estimate expected baseline projected impact for each metric and target population +Ensure data and data capacity to measure outcome metrics +Identify the appropriate evaluation methodology +*Assess capacity to make effective use of funding to meet measurable outcomes (known for four interventions included in SIL, relevant to other $63m) +*Identify and estimate the potential social impact of improving the outcome metrics for each target population (*this will require use of assumptions and may exceed scope) 34 Activities in SIL Phase II B: Transaction Structuring Transaction Structuring +Activities for each intervention: +Identify potential pool of investors likely to invest in the project +Support in the procurement process (RFP development, selection criteria), if applicable. +Develop methodology to quantify payment terms, timing, and performance threshold +Build economic and financial model for transaction +Prepare marketing materials for investors and assist in due diligence +Identify independent evaluators for the Project and assist in procurement process (if necessary) +Identification and description of the roles and responsibilities of all project partners and assist in selection of stakeholders Executive Committee for the Project +Assist in investor outreach and recruitment of appropriate mix of investors (“the capital stack”) for the project +Develop project implementation plan and assist in the launch of the Project +Additional activities for Social Impact Loan +Develop KPIs and assist in development of the Offering of Memorandum and Prospectus (if applicable) +Develop payment terms for the Offering, including guaranteed and impact contingent payment schedules +Participate in investor education, if applicable. CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 COUNCIL.SLCGOV.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY tinyurl.com/SLCFY22Budget TO:City Council Members FROM: Jennifer Bruno, Ben Luedtke, Sylvia Richards, Allison Rowland, and Kira Luke Budget and Policy Analysts DATE:November 9, 2021 RE: Budget Amendment Number Four FY2022 ________________________________________________________________________________ Budget Amendment Number Four includes forty-one proposed amendments and requested changes to thirteen funds. Total expenditures coming from Fund Balance are $2,884,735, and the Administration is requesting straw polls for two items which are found in Section A (New Budget Items). Additionally, the Council may wish to note that the Administration is proposing to add twenty-two ongoing FTE’s paid with one-time grant funding. If all the items are adopted as proposed, then Fund Balance would be $502,894 below the 13% minimum target established by the Council in FY 20. Fund Balance would however remain $3 million above 12%. American Rescue Plan Act (ARPA) Proposed Spending Items There are several proposed items that would spend nearly $14.5 million of American Rescue Plan Act or ARPA funding. This is one-time funding from the Federal Government for the City to respond to pandemic-related impacts and address recovery needs including revenue loss replacement and employee compensation. Many of the proposed ARPA-funded items would use one-time funding for one-time uses. However, a few items like the park ranger pilot program and expanded Community Commitment Program would add new full-time employees (FTEs) which create new ongoing costs. This is in addition to ongoing costs (FTEs/programs) paid for with ARPA dollars in the F22 budget, totaling approximately $22.3 million. These would add to the General Fund’s growing structural budget deficit in future fiscal years. It’s important to note that approving the items as proposed would also set in motion the need to spend ARPA dollars in FY23 (or use another funding source or identify budget cuts) to cover some of the new ongoing costs particularly new FTEs and ongoing police overtime. The Administration’s transmittal includes a summary spreadsheet showing how the City’s entire $85 million ARPA award has been used to-date, items proposed in this budget amendment and potential uses in FY23 and FY24. The Council may wish to discuss with the Administration how the City’s FY23 and FY24 annual budgets could be impacted by ARPA-funded items proposed in this budget amendment plus the $22.3 million of ongoing expenses in the FY22 annual budget paid for with one-time ARPA funding. Sales Tax Update (See Attachment 1) This attachment shows the confirmed sales tax revenues through the end of FY21. The data table shows sales tax in FY21 was $7.4 million higher than FY20 particularly the months of February through June. June was the highest sales tax revenue month on record for the City. The wholesale trade increased, and the biggest decline remains accommodation and food services. Inflation could also be a contributing factor to greater sales tax receipts. Project Timeline: Set Date: Nov. 9, 2021 1st Briefing: Nov. 9, 2021 2nd Briefing: Nov. 16, 2021 Public Hearing: Nov. 16, 2021 3rd Briefing: December 7, 2021 (if needed) Potential Action: December 7, 2021 Page | 2 Revenue for FY 2021-22 Budget Adjustments Because the fiscal year just started the Fiscal Year 2022 projections are at budget. The following chart shows a current projection of General Fund Revenue for fiscal year 2022. Updated revenue projections are expected to be available for the next budget amendment and after the Comprehensive Annual Financial Report is completed. Page | 3 Fund Balance Update The Administration is recommending to go below the 13% minimum target established by the Council in FY 20. This means the Fund Balance would be $502,894 below the target. Fund Balance would however remain $3 million above 12%. Previously the City has been advised that downward trends in fund balance percentage could have the potential to impact the City’s bond rating (needed to get desirable interest rates), and the previous minimum threshold was identified at 10%. Updated Fund Balance projections are expected to be available for the next budget amendment and after the Comprehensive Annual Financial Report is completed. Impact Fees Update The Administration provided a summary of impact fee tracking, details on refunding amounts and dates and lists of unfinished projects with impact fee funding. The information is current as of October 29, 2021. An update since the information was transmitted is that the four police impact fee refunds listed for July through October in FY22 are not needed based on the adopted annual budget. As a result, the City is on-track with impact fee budgeting to have no refunds during all FY22. The Administration reports work is nearing completion to update the fire and parks sections of the impact fee plan. The transportation section was updated last year. Eligible projects for police impact fees are being identified. Page | 4 Type Unallocated Cash “Available to Spend”Next Refund Trigger Date Amount of Expiring Impact Fees Fire $1,487,183 More than a year away - Parks $8,948,216 More than a year away - Police $415,503 More than a year away - Transportation $6,101,644 More than a year away - Note: Encumbrances are an administrative function when impact fees are held under a contract $1,583,500 ARPA Holding Account Update In the FY22 annual budget, the Council placed $1,583,500 into a holding account from 10 items proposed by the Administration. The Administration indicates that the holding account items are no longer being recommended. During deliberations in May and June the 10 items were determined to not be eligible for ARPA funding under the U.S. Treasury’s ARPA guidance. The holding account was created to give the Administration time for exploring whether any of the 10 items could be modified to be ARPA eligible. The Council could act in this budget amendment to free these dollars. Section A: New Items (note: to expedite the processing of this staff report, staff has included the Administration’s descriptions from the transmittal for some of these items) A-1: Risk Excess Liability and Cyber Insurance Costs ($128,888 from General Fund Balance and $294,820 from Enterprise Funds) The City has carried both excess liability and cyber security insurance since Fiscal Year 17 (FY17) and has not yet had to use either. However, premiums for each rose significantly higher than budgeted in the current fiscal year. Excess liability The Administration shared the following definition of excess liability insurance: Excess liability insurance covers judgments and claim settlements in excess of the City's $1,000,000 self-insured retention. While most claims against the City are subject to judgment limitations under the Governmental Immunity Act, federal claims, such as civil rights and employment claims, are not. The Administration attributes the increase to claims in the past year that met thresholds the City is required to report to the City’s insurance carrier. Cyber security The Administration shared the following definition of cyber security insurance: Cyber insurance covers third-party liability resulting from security breaches. It also covers data recovery, data breach response and crisis management, cyber-extortion, and ransomware. In recent years, the City has funded upgraded security resources, including more advanced systems and more cybersecurity training for City staff. The FY22 budget for the IMS Department also included $50,000 for an audit of the City’s current network security. Requests in future budgets are likely to continue including hardware and software upgrades that will improve security, as the City works to keep up with rapidly-advancing technology and increasing threats. Although these investments ultimately reduce the need to use the insurance, trade publications for the municipal information technology sector report a large increase in cyberattacks across the board, leading to higher premiums throughout the industry. Policy Question: The Council could confirm with the City Attorney's office whether an executive session on deployment of security and/or pending litigation could allow the Council to learn about any current claims and the City’s security profile. A-2: Department of Air Quality Lawnmower Exchange ($250,000 from General Fund Balance) The Utah Department of Air Quality (UDAQ) administers an annual gas-powered lawnmower and yard equipment exchange in order to reduce criteria pollutants in the areas of the Wasatch Front that are in non-attainment with the Clean Air Act air quality standards. Because the Wasatch Front is on track for attainment of wintertime PM2.5, Page | 5 UDAQ is not running a snowblower exchange this year. Instead, they are focusing on programs to reduce summertime ozone pollution, for which the Wasatch Front is out of attainment. UDAQ has $900,000 set aside to continue the exchanges for the foreseeable future. The size of the lawnmower exchange varies each year depending on the size of financial contributions from partners. UDAQ typically contributes between $300,000 and $400,000. The Sustainability Department is proposing a budget amendment of $250,000 from General Fund Balance to partner with UDAQ in FY22 on a gas-powered lawnmower exchange. This would facilitate exchanges for approximately 1,000 Salt Lake City residents. Salt Lake City participated in 2021, spending nearly $161,000 which helped 582 residents participate. In total, 509 gas powered mowers were exchanged (the remaining participants bought new mowers without exchanging an old one). This is the equivalent of removing 4.02 tons of pollution from the airshed each year. A majority of residents also opted to participate in the City’s Call 2 Haul program to have their gas mower picked up curbside and recycled by Salt Lake City Waste and Recycling. The Administration proposes continuing this program in FY 22 (spring 2022). The goal will be to increase participation from 582 to 1,000 with a continued focus on our Westside neighborhoods. The Administration anticipates greater awareness and uptake of the program in the coming year due to increased familiarity with the program, and plans to work with UDAQ on earlier, targeted outreach given the lessons learned from spring 2021. UDAQ anticipates the program logistics will change in FY 22 to facilitate easier participation and lower administrative burden. In particular, they are hoping to develop a phone app that participants will use to sign up and upload any required receipts. UDAQ is also envisioning the next program will offer a promotional discount code to be used toward the purchase of electric lawn equipment and an app would also help separate Salt Lake City residents from other participating Wasatch Front residents. This will reduce confusion as to who is eligible for curbside pickup of their old mowers. The Administration also indicates that they also hope the app will help keep the exchange open longer for Salt Lake City residents instead of opening, closing it, and opening it again while UDAQ verifies addresses. While the exact amount of the discounts have yet to be determined, the Sustainability Department proposes using $250,000 in City General Funds to facilitate approximately 1,000 gas-powered mower exchanges. This budget amendment would also fund temporary staffing expenses to assist with running curbside collection of old mowers through Call 2 Haul. This benefit was very popular last year and helped make this program more equitable to those who might not have the ability to haul their own mower to a metal recycler. Policy Questions: Expanding Program Beyond Lawnmowers – Council Members recently expressed interest in expanding this exchange to include other common gas-powered yard maintenance equipment like leaf blowers, chainsaws, trimmers, etc. The Council may wish to ask the Administration what would be necessary to expand the exchange program along these lines? Sustainability Funding Contributions – The Council may wish to ask if the Sustainability Department’s refuse, energy, or environment dollars could be available to contribute to this program? Context with the Annual budget – Given that this program is proposed to be funded with General Fund dollars, the Council could ask that it be included in the annual budget in future years. A-3: COVID Safe Building Improvements ($844,000 from General Fund Balance; $131,000 goes to IMS Fund) The Public Services Department identified several recommended building improvements to provide a safer environment protecting against the spread of disease. Consultants, health officials and current employees collaborated to identify these changes. The total cost is estimated at $844,000 and includes the following: - $250,000 for improved indoor air quality by upgrading existing HVAC systems to better capture airborne particles and contaminants using needlepoint devices - $165,000 for enhanced janitorial cleaning five days a week for the rest of the fiscal year. The cleaning schedule would adjust to COVID case counts and feedback from the public and employees Page | 6 - $131,000 for teleconferencing and meeting equipment for virtual and hybrid public meetings. This equipment and training would be available to the Mayor’s Office, Council Office and the City’s two dozen boards and commissions - $100,000 for reconfiguring cubicle office spaces - $100,000 for various personal protective equipment (PPE) and cleaning supplies including facemasks, hand sanitizer, disposable gloves, etc. - $44,000 for new chairs, tables, reconfigurations and small digital signs in meeting rooms (potentially including Room 138, Cannon Room and others) - $17,000 for one seasonal employee working 40 hours/week for six months except holidays to assist with visitors to the City & County Building - $16,000 for new chairs in the Committee of the Whole room - $10,000 for a public noticing digital sign within the ADA entrance at the City & County Building and at Plaza 349 - $6,000 for desks and chairs to create two check-in areas: one on the first floor between elevators, a second near the east entrance o CBI guards would cover the check-in desk as part of the City’s existing contract o Procedures are being developed for this new function - $5,000 for appointment management software at the entrance of the building which allows IDing and monitoring building occupancy Policy Questions: Equipment for Hybrid Meetings – The Council may wish to ask the Administration what virtual and hybrid meeting equipment and training would be made available to the City’s two dozen boards and commissions. The Council may also wish to ask if the Administration has looked into providing hybrid meeting training to community councils. Public Access to City & County Building – The Council may wish to ask the Administration if a policy is being developed to govern public access during the pandemic to the City & County Building and how the public would make appointments on the new management software. Currently some departments report offering limited hours for walk-in visitors and other departments are scheduling appointments. Public Notice Digital Signs – The Council may wish to ask the Administration if public noticing digital signs are also needed at the Main Library and the Public Safety Building so the same information is available at multiple locations across the Civic Campus. Many notices are currently posted on doors with paper. Other Funding Sources for this Project – The Council may wish to ask the Administration if ARPA dollars could be used for these expenses (note: this is not recommended for ARPA dollar use by the Administration). A-4: Pulled prior to Submission A-5: Community Health Access Team (CHAT) Program Vehicles ($150,000 from $2 Million Holding Account; $150,000 goes to Fleet Fund) *straw poll requested* Note this item is related to items A-10 and C-1 In the FY22 annual budget, the Council created a holding account with just over $2 million from “Funding our Future” public safety dollars, for diversifying public safety civilian response models. This item is requesting $150,000 which would be the first use of that holding account. Note that the Council carried over into FY22 a separate almost $2.3 million holding account originally created in FY21 for implementing recommendations from the Racial Equity in Policing Commission, the Council’s audit of the Police Department, and the public. The $150,000 would purchase three new hybrid Ford Explorer SUVs to accommodate increased program staffing. Two of the vehicles will be used by CHAT staff and the third by the Medical Division in the Fire Department supporting the program. The estimated cost per vehicle is $50,000 including fuel, upgrades, and maintenance. The CHAT program currently has one vehicle for two paramedics responding as a team. The program is overseen by a captain. Item A-10 proposes transferring three social worker FTEs from the Police Department to the Fire Department. This staffing increase and corresponding vehicle increase would allow the CHAT program to operate Page | 7 two separate teams. The social workers in the CHAT Program would operate out of the Public Safety Building rather than the Community Connections Center. The Administration stated the CHAT Program would operate independent of the Social Worker Program. The paramedic would assess a subject’s medical condition and the social worker would assess their psychological condition. The Fire Department responds to approximately 24,000 medical assessment calls annually. If the CHAT program provides better response options to this frequent call type, then the Fire Department may seek to further expand the program in the future. The Fire Department and 911 Department presented the expanded CHAT program proposal to the REP Commission in September which was supportive of this proposal. An expanded CHAT program with the added skillsets of social workers would respond to calls related to mental health and homelessness. Some call types are ineligible for CHAT program response including when a weapon is present or there are threats of violence. This has the potential to divert some calls away from a law enforcement response so police officers could address other calls for service. The Administration stated the CHAT program responds to calls for service that (1) do not meet the criteria for emergency service or (2) do not benefit from the scope of training provided to paramedics and EMTs Policy Questions: Identifying and Tracking Calls for Service Diversions from Police to CHAT Program – The Council may wish to ask the Administration if there are plans to track calls for service diverted from a police officer response to the CHAT program or other alternative response models. The information could help measure the success and demand for the City’s civilian response models. The Council may also wish to ask how the 911 Department identifies calls for service that are good candidates for diversion. The City’s alternative response options include the CHAT program, Crisis Intervention Team (CIT) and the Social Worker Program (potentially a new Park Ranger program and police civilian responder program too). Equity in Access to Medical and Mental Health Services – The Council may wish to ask the Administration how an expanded CHAT program could improve access to medical and mental health services, especially in communities that historically have disproportionately less access. Aligning Operating Hours to Mental Health Crisis Call Times – The Council’s operational audit of the Police Department recommended social worker program and Crisis Intervention Team (CIT) hours change to include evenings. The Council may wish to ask the Administration if an expanded CHAT program would have operating hours in the evening. The auditors provided the below graphics showing most mental health-related calls occur in the evening which is outside the CIT program’s operating hours. Mental Health-related Calls for Service by Hour of the Day Page | 8 Straw Poll Request: Does the Council wish to hold a straw poll for this item? The Administration has requested a straw poll given the significant delays in receiving vehicle orders during pandemic-related supply shortages. A-6: Non-Represented Employees’ Job Salary Survey ($75,000 from General Fund Balance) *straw poll requested* This request is intended for consultative services to be provided by a qualified third-party consultant or firm to conduct a compensation survey to assess, evaluate and compare the overall pay structure, including actual base pay and other job elements, of Salt Lake City’s non-represented employees to other public and private sector entities with whom the City competes for talent. The recommended survey project includes data collection, analysis, and the development and presentation of a report with recommendations for the City’s Department of Human Resources, Citizens Compensation Advisory Committee (CCAC), and elected officials to consider. The survey will be conducted with a primary focus on cash compensation and rely on the same caliber and methodology as surveys previously completed for the City's public safety and AFSCME-covered employee groups (as completed by Mercer in early 2019 and 2020, respectively). Straw Poll Request: Does the Council wish to hold a straw poll for this item? The Administration has requested a straw poll to allow additional time for selecting a consultant, allowing the CCAC to review at a special meeting in the spring, and so that results might be available to inform the Mayor’s Recommended Budget for FY2023. A-7: Sugar House Special Assessment Area Analysis (SAA) ($60,000 from General Fund Balance) In June, the Sugar House Community Council wrote a letter to the Economic Development Department requesting the City explore an SAA for economic promotion in the business district. The only existing economic promotion SAA in the City is for the Downtown. Utah Code defines eligible economic promotion activities as “sponsoring festivals and markets, promoting business investment or activities, helping to coordinate public and private actions, and developing and issuing publications designed to improve the economic well-being of the commercial area.” (Utah Code 11-42-102 Section 19) The $60,000 of funding would allow the Department to hire consultants and bond counsel to determine specific rates and revenue estimates, impacted parcels, cost per property owner, legal description of the boundaries and draft the notice of intent to designate. There is a potential for the assessment to reimburse the General Fund for those upfront costs. Page | 9 There is some flexibility in what method is used to measure the assessment such as property frontage, property area, taxable value or a combination of these. The Council would need to adopt a resolution designating the rates, budgets, allowable uses and boundaries. An RFP would be issued to accept bids of interested organizations. The Sugar House Chamber may submit a bid. A letter would also be sent to all impacted property owners notifying them of the SAA process. An SAA requires support from at least 61% of property owners (not tenants / businesses leasing space) and periodic approval such as every three years for the Downtown SAA. Policy Questions: SAA Activities – The Council may wish to discuss with the Administration what activities the new SAA would provide. For example, would an ambassador program be paid for like in the Downtown, North Temple, and Central Ninth/Ballpark areas? SAA Reimburse General Fund Balance – The Council may wish to request the Administration include reimbursement of the General Fund Balance for upfront costs be included in the SAA analysis. SAA Boundaries – The Council may wish to discuss whether to support the potential boundaries or if adjustments should be considered. For example, should the residential neighborhood north and south of Simpson Avenue be included when the SAA is focused on commercial areas and economic promotion? Council staff created the below map to show the potential boundaries. Note: once notices are sent it is very expensive to change boundaries, and may cause additional delays. Context with Annual Budget - Given that this is a new proposal to be funded with General Fund dollars, the Council could ask that it be evaluated in the context of the annual budget rather than a budget amendment. Approximate Potential Boundaries for Sugar House SAA 700 East; Interstate 80; 1300 East; Hollywood Avenue with extension north on 1100 East to Ramona Ave to 1200 East Page | 10 A-8: Sorenson Impact Center Social Investment Study – Phase 2 Funding – ($150,000 from General Fund Balance) The Administration is requesting $150,000 from General Fund balance to continue the contract with the Sorenson Impact Center to work on Phase 2 of a Social Impact Investment study. A separate agenda item and staff report is planned for the larger scope of this topic. The Council may discuss adding the following principles/conditions in considering allocating the funding for the phase 2 work (note: this may change given the discussion during that agenda item): - The Council allocates $150,000 in Budget Amendment #4, for the Sorenson Impact Center to continue work on this potential program, with the understanding that: o The goal of the program is generational change, and in order to do that it must be ongoing beyond the initial investment term. o The City’s investment will not supplant existing programs and funding, and that assurances are obtained from partner agencies that this understanding will continue for the duration of any program created with this seed money. o The Sorenson Impact Center engage the totality of groups that provide these services and conduct transparent evaluation processes to determine which partners are best positioned to deliver this long-term generational change. o There be strict and transparent metrics to show goals are reached, particularly that the opportunity index score is improving in areas where it currently lags. A-9: Pulled prior to Submission A-10: Community Health Access Team (CHAT) Program Personnel Transfer (Budget Neutral) Note this item is related to items A-5 and C-1 This item would transfer three FTEs from the Police Department to the Fire Department including two social workers and one case manager that is a licensed clinical social worker. See A-5 for the full write-up. A-11: Rose Park Golf Course Water & Energy Efficiency Grant (Matching Funds) ($1,800,000 from the Golf Fund) *straw poll requested* The Departments of Public Lands and Public Utilities are working together on a grant application to help fund installation of an updated landscape irrigation system and other water conservation measures at Rose Park Golf Course. The grant is sponsored by the federal Bureau of Reclamation and would total $1,889,371. Salt Lake City’s match for the grant would consist of the following: Cash Staff Labor Contracted Services Department of Public Lands | Golf Division $1,800,000 $61,023 $0 Department of Public Utilities $0 $21,348 $7,000 Subtotal $1,800,000 $82,371 $7,000 Total City Cost-Share $1,889,371 The resulting $3,778,742 would be used to replace the existing irrigation system with new equipment, including high-efficiency nozzles that allow the watering levels to match turf type. In addition, some areas of fairway grass, which requires a lot of water, will be removed and re-seeded with drought-tolerant grasses, and the square footage of out-of-bounds rough areas will increase. The Golf Division estimates that Rose Park’s total irrigated areas can be reduced by 25% this way without impacting play, leading to significant water savings and furthering the goal of this grant funding. Note that these changes are distinct from those begun in 2015, under a contract with Siemens, in which a process was developed and implemented to draw secondary water from the Jordan River. That work included a new storage vault, pump system and some existing head upgrades, while this grant and the City’s match would fund the irrigation system itself, as well as the turf changes. In response to a Council staff question about the potential to access Bureau of Reclamation funds for similar projects at the City’s other courses, the Golf Division identified two limits: Page | 11 1.the challenges the Division faces with setting aside large amounts for matching funds; and 2.the level of competition for these grants. They believe that Rose Park is a particularly attractive candidate for these funds because of the potential to shift such a large share of fairway turf to be drought tolerant. The three other courses the Division reports as needing irrigation system replacements are Mountain Dell, Nibley and Forest Dale. Bonneville and Glendale were upgraded as part of the 2015 Siemens contract. Straw Poll Request: Does the Council wish to hold a straw poll for this item? The Administration has requested a straw poll given the timing of the expected grant award and when the City would need to confirm acceptance if the application is successful. A-12: Public Lands Park Ranger Pilot Program ($1,577,291 from General Fund Balance; $195,720 goes to Fleet Fund; $69,247 from ARPA) Note: this item is related to items C-1, E-3 and E-4 The Administration is proposing creation of a pilot program with 19 new FTEs in the Public Lands Department including two sergeants, 16 rangers and one support position. The total annual cost for a sergeant is estimated at $138,787 and for a ranger is estimated at $111,400. Job descriptions for the two positions were pending at the time of publishing this staff report. The Administration stated 12 rangers would be needed at a minimum to launch this new pilot program. The 19 FTEs are being recommended for a larger program. The program would operate from 8am to midnight seven days a week. The Administration states the rangers may serve as law enforcement officers. However, rangers would be unarmed and unlike police officers would not be Peace Officer Standards and Training (POST) certified. Rangers would operate out of existing City facilities in parks including the soon to be redeveloped Fisher Mansion Carriage House and possibly temporary trailers. Rangers would focus on the Jordan River Trail, Pioneer Park, Liberty Park, and Fairmont Park. Rangers are not expected to operate in the Foothills or outlying natural areas. The total annual cost is estimated at $2,350,983. The request before the Council is for a half year funding of $1,175,491 and $401,800 of one-time costs including three trucks and two light response vehicles. The total cost for the remainder of FY22 is estimated at $1,577,291. The nearly $1.6 million cost in FY22 is proposed to be paid for from General Fund Balance. This item also proposes a reimbursement to Fund Balance for salary restorations resulting from the FY21 hiring freeze. ARPA dollars would provide $1,508,044 to Fund Balance as flexible General Fund dollars available for any use. This is the maximum salary restoration amount allowed under U.S. Treasury guidance. The remaining gap of $69,247 would come directly from ARPA for eligible supplies and services such as homeless outreach. The salary restoration using ARPA dollars in FY23 is estimated at $1,545,746 which creates a funding gap of $805,237 compared to the program’s annual cost. Creation of this new ongoing pilot program and the limited available use of one-time ARPA dollars means the structural deficit in the annual budget could be larger in FY23. The Public Lands Department (formerly Parks Division within Public Services Department) previously paid for police officer overtime in parks. The table below summarizes these costs from recent fiscal years. Fiscal Year Police Officer Overtime Cost Notes FY2018 $63,226 Overtime was paid over a four month period FY2019 $226,569 Overtime was paid over a seven month period FY2020 $23,835 Prolonged reduced staffing of police officers resulted in significantly reduced overtime in parks FY2021 $9,738 Prolonged reduced staffing of police officers resulted in significantly reduced overtime in parks FY2022 $0 Private security firm used to lock park restrooms at night and provide park security patrols The pilot program’s purpose and goals include: - Serving as law enforcement officers in parks (not POST-certified like police officers) Page | 12 - Providing services and information to park users - Assisting with homeless outreach efforts - Making people feel welcome and safe in parks - Deterring inappropriate activity - Gaining voluntary compliance of park codes and rules - Reducing the number of annual vandalism incidents and associated costs for repair/replacement Policy Questions: Effectiveness of Civilian Rangers Addressing Criminal Issues in Parks – The Council may wish to discuss with the Administration the limits of civilian park rangers addressing criminal issues in parks and when rangers would need to rely on a police officer response. The Administration states the rangers may serve as law enforcement officers but would not be POST-certified like police officers. The Council may also wish to ask the Administration how park rangers would coordinate with the Police Department’s parks bike squad. Private Security Guards in Parks – The Public Lands Department currently hires private security guards to lock restrooms in parks and provide security patrols. The Council may wish to ask the Administration for the pros and cons of creating a park ranger program instead of continuing the current practice of hiring private security guards. Identifying and Tracking Calls for Service Diversions from Police to CHAT Program – The Council may wish to ask the Administration if there are plans to track calls for service diverted from a police officer response to park rangers or other alternative response models. The information could help measure the success and demand for the City’s civilian response models. The Council may also wish to ask how the 911 Department identifies calls for service that are good candidates for diversion. The City’s alternative response options include the CHAT program, Crisis Intervention Team (CIT) and the Social Worker Program (potentially this new Park Ranger program and police civilian responder program too). Growing Structural Deficit for FY23 Budget – The Council may wish to ask the Administration to provide a mid-year briefing on the estimated structural deficit for FY23 and how ARPA funding this fiscal year creates ongoing costs that could need ARPA funding next fiscal year. Request REP Commission Review – The Council may wish to ask the Administration to present the park ranger proposal to the REP Commission and share feedback and recommendations. Training and Equipment for Park Rangers – The Council may wish to ask the Administration what training and equipment would be provided to park rangers. The rangers would not have firearms. Reviewing Staffing Level – The Council may wish to ask the Administration when and how the pilot program’s staffing level will be reviewed to determine if fewer or more positions are warranted to meet the level of community need. A-13: WITHDRAWN BY THE ADMINISTRATION Section B: Grants for Existing Staff Resources Section (None) Section C: Grants for New Staff Resources Section C-1: ARPA Funding – Public Safety and Homeless Outreach – Public Lands Park Ranger Program ($1,064,368 – Miscellaneous Grants) (See Items A-12, E-3 and E-4.) Note: this item is related to items A-12, E-3 and E-4. See item A-12 for the full write-up. This item is an accounting step for transferring funding to the General Fund. C-2: Community Commitment Program Rapid Intervention Team ($164,750 from ARPA) Note: this item is related to items E-5, E-6 and E-8 The Administration is requesting the Council approve three new FTEs to work in the Waste & Recycling Division of the Sustainability Department. The employees would provide a new City cleaning team working with Advantage Page | 13 Services and the Homeless Engagement and Response Team coordinator in CAN. Sometimes employees in the Public Services and Sustainability departments are diverted from regular duties to assist the Community Commitment Program and Health Department. The titles and job descriptions for the three new FTEs were pending at the time of publishing this staff report. The total annual estimated cost per FTE is $87,600 which would be $262,800 for a full fiscal year. This item is requesting $164,750 to provide seven and a half months of funding in FY22. The three FTEs would be listed on the grant-funded section of the staffing document. As with the park ranger program in earlier items, these new FTEs could add to the structural budget deficit by using one-time funding for a new ongoing cost. Policy Questions: Three New FTEs Sunsetting with ARPA – The Council may wish to ask the Administration whether the three new FTEs would sunset with ARPA funding availability. Staffing Level and Community Need – the Council may wish to discuss with the Administration if the three additional FTEs would meet the level of need in the community and maximize the City’s partnership with the County Health Department. CAN Supervising Sustainability Employees – The Council may wish to ask why the three new employees would be in the Waste & Recycling Division of Sustainability but be coordinated by a supervisor in CAN? Section D: Housekeeping D-1: Economic Development Loan Fund Move Housing ($100,000 – Housing and $100,000 – General Fund) Last March, in Budget Amendment #7 of FY21, the Administration requested, and the Council approved, a $100,000 appropriation to the Economic Development Loan Fund (EDLF) to assist restaurants and bars by offering funding to expand outdoor dining as an aid to pandemic recovery. The Department of Economic Development (DED) stated at that time that its intent in using the EDLF was to ensure that funding would not lapse due to delays caused by the processes of program development and identification of recipients. As it turned out, DED did not distribute any of these funds because “forgivable loans are not permitted under the EDLF Loan guidelines.” Now the Department is requesting the funds be moved from EDLF to a separate account so that these funds may be distributed as grants, rather than loans. If the Council chooses to do so, DED would transmit a resolution for consideration to set the guidelines for the proposed Outdoor Business Activity Grant Program. The program would provide up to $5,000 for outdoor dining/retail costs or $10,000 for costs incurred in hosting an “Open Streets” event. The Department noted in the BA #7 discussions that they would prioritize areas of the City using “social justice datasets,” and reach out directly to businesses located within these areas, as well as work with the diverse Chambers of Commerce, Community Councils, and other community partners. Since that time, the City’s Chief Equity Officer has been named and is working on frameworks and measurements to be implemented Citywide. In the meantime, the Chief Equity Officer provided DED the GARE (Government Alliance on Race and Equity) Racial Equity Toolkit, and DED is using that framework in all new project creation, including this project. Policy Question: Would the Council like to consider its support for this program now or after more specific guidelines are proposed by the Department? If these funds stay in the EDLF they will not drop to fund balance. D-2: Increase Grant Fund ($0.00 – Miscellaneous Grants) The annual budget proposed funding from the American Recovery Plan Act (ARPA) for revenue replacement. During budget adoption, the expense was adjusted based on updated grant guidelines. This increased the expense side of the grant fund, but recognition of the revenue was not included. This request adjusts the revenue side to recognize the revenue side of the transaction in the Grant Fund. This proposal will bring the Fund into balance in accordance with Generally Accepted Accounting Principles. Page | 14 D-3: Premium Holiday – Other Funds (Refuse, Golf, Fleet and IMs) ($0.00 – Miscellaneous Grants) The Premium Holiday was submitted with the budget with the transfer from the Insurance Fund, but the transfer into other funds was not included. This amendment is to balance the inter-fund transfers. D-4: GPS Housekeeping ($74,600 – General Fund and Fleet Fund) For FY22 there is an accounting change to put the GPS fees for vehicles in the Fleet budget. We missed the piece to move the current budgets over to Fleet. Public Services has a budget of $39,203; Public Lands has a budget of $26,797; and CAN has a budget $8,600 that we need to move to Fleet. D-5: Signage FTE Correction ($51,847 – General Fund) In the Mayor's Recommended Budget, an FTE for Signage for the Planning & Ecological Services Division was initially approved, but later reduced. However, the funding was again inadvertently reduced at the Council level, thus doubling the reduction. This housekeeping request is to replace the funding that was inadvertently cut from the Signage budget. D-6: General Obligation Series 2021A Bonds ($23,400,000 – CIP Fund, and $200,000 – Debt Service) In November 2018, voters authorized the issuance of up to $87 million in general obligation bonds to fund street construction. The General Obligation Bonds, Series 2021A will be issued in November 2021 as the third issuance of the authorization. This amendment creates the revenue budget for the receipt of bond proceeds and the expenditure budget to pay for construction of the street projects associated with the bonds. It also creates expenditure budget to pay the costs of issuance for the bonds. Bond proceeds will be allocated to five project cost centers in Fund 83 and one cost center in Fund 81 for the costs of issuance associated with the bond. Two cost centers will receive $6,000,000 each for the 200 South Phase 1 & 2 (400 W to 900 E) projects. A third cost center will receive $6,800,000 for the 1100 East (900 S to Warnock Ave) project. The fourth cost center will receive $1,600,000 for the 300 North (300 W to 1000 W) project. The fifth cost center will receive $3,000,000 for local streets. The proceeds to pay the costs of issuance associated with the bonds will be deposited to the debt service cost center in Fund 81. D-7: Sales Tax Refunding Revenue Bonds Series 2021A ($10,665,000, $10,400,000 and $4,900,000 – Debt Service) Sales and Excise Tax Revenue Bonds, Series 2012A, were issued in June 2012 for the purpose of replacing the North Temple Viaduct and improving North Temple Boulevard. Sales and Excise Tax Revenue Bonds, Series 2013B, were issued in November 2013 for the purpose of financing a portion of the costs of the Sugarhouse Streetcar and paying for the portion of various improvements to create a "greenway" within the corridor. The Series 2012A and 2013B bonds are being refunded with the Sales Tax Refunding Revenue Bonds, Series 2021A. This budget amendment will create the revenue budget for the receipt of bond proceeds and the expenditure budget to pay off the old bonds and to pay the costs of issuance for the bonds. Two Local Building Authority bonds will also be refunded by the Series 2021A bonds. This budget amendment creates the budget for the transfer to the LBA to pay those off. A separate LBA budget amendment is being submitted to create budget for paying off those bonds. D-8: Budget Carry Forward ($1,175,000 – General Fund) In the General Fund there were several budgets that did not have encumbrances at the close of fiscal year 2021 the Administration would request Council approval to roll budget for the projects into fiscal year 2022. The budgets requested are listed below: CC CC Name OC OC Description Amount 0900503 Demographer Contract 2329 Other Professional & Tech Serv $50,000.00 0900925 Financial Risk Assessment 2329 Other Professional & Tech Serv $100,000.00 0900930 Gentrification Mitigation Study 2329 Other Professional & Tech Serv $100,000.00 0900705 Washington DC Contract 2324 Special Consultant $75,000.00 0900513 NW Northpoint Plan Airport 2329 Other Professional & Tech Serv $50,000.00 0900508 Home to Transit Program 2590 Other Expenses $800,000.00 TOTAL $1,175,000.00 Page | 15 Section E: Grants Requiring No New Staff Resources E-1: COVID-19 Local Assistance Matching Grant Program – New Water Reclamation Facility: Influent Pump Station and Force Mains (Water and Sewer Infrastructure) ($2 million from ARPA) See Attachment 2 for the grant memo and Council staff report The Mayor‘s Administration has submitted a grant application requesting funding of $10 million from the State of Utah to help fund the construction of the new Influent Pump Station force mains, (a sub-project of the Water Reclamation Facility), and replace the existing pump station and force mains which are at the end of their service life. This budget amendment item proposes to set aside $2 million in ARPA funds for the required match. The Council may wish to note that as part of the grant application, the City has committed a $40 million dollar match for the grant to increase the competitiveness of the application. According to the Administration, the source of the match includes the Department of Public Utilities planned utility revenue bond issuances, and the secured loan through the Federal Water Infrastructure Financing and Innovation Act. E-2: Winter Shelter Support ($1 million from ARPA) This item would provide $1 million of flexible funding for emergency winter shelter support potentially including shelter operations. The funding is for winter shelter anywhere in Salt Lake County. U.S. Treasury guidance allows municipalities to spend outside of city limits and/or pool ARPA funding for regional projects and programs for eligible activities subject to compliance with reporting requirements and showing a benefit is being received for City residents proportionate to the ARPA funding amount. Policy Questions Funding Winter Shelter Outside or Inside City Limits – The Council may wish to ask the Administration if the funding would go to a winter shelter outside or inside of city limits. Hotel/Motel Voucher Flexibility – The Council may wish to ask the Administration if the funding could be used for hotel/motel vouchers instead of costs related to a winter shelter. E-3: Public Safety and Homeless Outreach – Salary Restoration – Public Lands Park Ranger Program (See Items A-12, C-1, and E-4) ($443,677 from ARPA) Note: this item is related to items A-12, C-1, and E-4. See item A-12 for the full write-up. This item is an accounting step for transferring funding to the General Fund. E-4: Public Safety and Homeless Outreach – Public Lands Park Rangers (See Item A-12, C-1 and E-3) ($69,244 from ARPA) Note: this item is related to items A-12, C-1 and E-3. See item A-12 for the full write-up. This item is an accounting step for using ARPA to directly fund eligible homeless outreach services and supplies in the new program. E-5: Community Commitment Program Rapid Intervention Team Vehicles ($160,500 from ARPA) Note: this item is related to items C-2, E-6 and E-8. See the other items for additional info. This item would purchase two F-350 pickup trucks and a trailer to be used by the three new employees in Waste and Recycling as part of the expanded Community Commitment Program. E-6: Community Commitment Program Additional Police Support ($1,505,920 from ARPA) Note: this item is related to items C-2, E-6 and E-8 The Administration is requesting $1,505,920 of funding for the Police Department to provide staffing to support the homeless encampment cleanup and camp re-establishment stabilization as requested by the Salt Lake County Health Department. Police officers working extra overtime shifts will provide security to ensure the cleanups can proceed in an environment that will be safe for all involved. Staffing numbers will vary depending on the size, number of cleanups and the location. Activity # days Officers # hours Rate Amount Requested Major Cleanups 14 40 10 $65 $364,000 Minor Cleanups*and area stabilization 122 24 6 $65 $1,141,920 Total Requested $1,505,920 *previously utilized on-duty resources that are no longer available Page | 16 It’s important to note that these overtime shifts are voluntary and there is no guarantee all shifts will be filled. Prior overtime shifts for the Community Commitment Program were approximately 75% filled. As of the October 2, the Police Department had spent $859,460 of the $1,741,890 overtime budget which is 49% of the available budget. If this trend continues, then the Police Department would be projected to go over the available overtime budget around mid-fiscal year. The Council increased the ongoing overtime budget by $650,000 as part of the FY22 annual budget. Policy Questions: Total Cost of the Community Commitment Program – The Council may wish to ask the Administration what is the total cost of the Community Commitment Program if Budget Amendment #4 is approved as requested? This information was requested and was pending at the time of publishing this staff report. Area Stabilization Examples – The Council may wish to ask the Administration for examples of area stabilization outside of immediate cleanup sites. E-7: Pulled prior to Submission to allow for the completion of Phase 2 of the Social Impact Investment. E-8: Community Commitment Program Rapid Intervention Team Cleaning by Advantage Services ($57,000 from ARPA) Note: this item is related to items C-2, E-5, and E-6 This item would provide $57,000 of additional funding for Advantage Services to conduct cleaning services related to the Community Commitment Program. Policy Questions: Public and/or Private Property Cleaning – The Council may wish to ask the Administration if Advantage Services cleaning is limited to publicly owned property or if private property is ever eligible. Quintuple Funding Next Fiscal Year – The Administration indicates the use of ARPA for cleaning by Advantage Services is expected to increase five-fold from $57,000 to $290,000 in FY23. The Council may wish to ask why the increase is planned and what changes to the cleaning services could the public expect. E-9: ARPA Westside Community Initiative (Perpetual Housing Fund) ($4 million from ARPA going to a New Holding Account in the Grant Fund) See Attachment 3 for the September 14 transmittal with the proposed framework. The Administration is requesting $4 million from ARPA to seed a perpetual housing fund dedicated to the Westside of the City defined as west of Interstate 15. The dedicated housing funds from the Inland Port Authority Jurisdictional Boundary would provide an ongoing revenue stream. The RDA Board received an initial briefing on this concept at the September 14 meeting. RDA staff are refining the draft policy and will return to the Board for a follow up discussion in the coming months. The Council could wait to appropriate the $4 million or place it into a holding account until the policy is adopted by the RDA Board. The draft program goals include: - Develop land with a long-term approach to continuously serve a community-defined purpose (could use a ground-lease approach) - Create opportunities for revenue generation while balancing the implementation of public benefits (revenue would be reinvested back into the fund) - Assist the Westside in mitigating gentrification and displacement (the City’s ongoing study to mitigate gentrification could inform the program policy) - Give lower income households the opportunity to build wealth through ownership (similar to a community land trust model aka a shared-equity model) - Engage community members in development decisions - Leverage resources for other neighborhood development purposes (such as subsidizing deeply affordable housing, commercial space, public infrastructure and art) - Collaborate with other partners to broaden the pool of funding and expertise Page | 17 - Carry out efforts with a collective impact approach (including measurable results to report back to the RDA Board and the public) E-10: Nonprofit and Business Assistance Community Grants ($4 million from ARPA going to a New Account in the Grant Fund) The Administration is proposing $4 million for new one-time community grants split into two separate offerings: $2 million for business assistance managed by the Economic Development Department (EDD) and $2 million for nonprofit assistance managed by the Community and Neighborhoods (CAN) Department. The grants must be used for eligible activities under the U.S. Treasury’s ARPA guidance and meet Federal reporting, compliance and spending deadlines. Meeting these requirements could create a significant workload for the City’s Finance Department and Attorney’s Office. For example, some potential categories are narrowly eligible only for evidence based programs and practices which must have published research supporting interventions producing desired outcomes. The Treasury is also expected to issue updated final guidance in the coming months. An ad-hoc committee, or two (unclear at time of publishing this report), would be created to review applications, question applicants, and have delegated final funding authority from the Council to make funding awards. The committee(s) would include staff from the two departments managing the grants (EDD and CAN), Mayor’s Office, Council Office, and a to be determined number of volunteers from several City boards and commissions. The two departments report a request for proposals would be issued with a one-month window for applicants to submit proposals. Then the committee(s) would score and rank applications over two weeks and make final decisions. Funding would be distributed the following month. Policy Questions: Delegation of Authority for Deciding Funding Awards – The Council may wish to discuss whether to delegate authority to the ad-hoc committee(s) or use another approach. For example, the Council could elect to use the established process the City has for the Capital Improvement Program (CIP), annual grants like CDBG from the U.S. Housing and Urban Development (HUD) Department, and one-time CARES Act relief grants. Under the existing process, the CDCIP Board reviews applications submitted during the open and competitive process, asks questions of applicants at public meetings, then provides funding recommendations to the Mayor who provides a second set of funding recommendations, next the Council deliberates the proposed recommendations, holds a public hearing and makes final funding awards. Equity Considerations – The Council may wish to discuss whether funding should have equity considerations built-in to the framework. For example, during the pandemic Council Members discussed the following categories in other grant programs: businesses in and nonprofits serving the Westside, women-owned and/or minority-owned businesses, nonprofits serving low-income residents, programs bridging the digital divide, food insecurity, increasing access to medical services and vaccines, etc. Applicant Assistance – The Council may wish to ask the departments what community assistance resources will be available for interested organizations to fill out applications? For example, where will in-person computer labs be publicly accessible, in what languages will the applications and instructions be available, who is the single-point of contact for each of the two grant programs, how will potential applicants learn about the opportunity, etc. Framework for the Grants – The Council may wish to ask the departments to return with proposed details of a grants framework such as the CIP and CDBG processes. This could include information like recommended grant program categories, funding minimums and/or maximums, required application information, and public engagement steps. Section F: Donations (None) Section G: Council Consent Agenda Page | 18 G-1: Police Department Asset Forfeiture Grant ($1,500 – Miscellaneous Grants) The Salt Lake City Police Department applied for and received a $1,500 grant award from the State of Utah, Commission on Criminal and Juvenile Justice (CCJJ), under the State Asset Forfeiture Grant (SAFG) program. The SAFG program funds crime prevention and law enforcement activities within specific guidelines. CCJJ developed the SAFG program as a means of evaluating and distributing state forfeiture funds. The funds will be used for confidential informant funds to enhance investigations in narcotics-related cases. A public hearing was held 9/7/21 for this grant application. G-2: Utah Department of Health – Bureau of Emergency Medical Services (EMS) Grant, FY22 Per Capita Allocation ($10,250 – Miscellaneous Grants) The Fire Department applied for and was awarded $10,250 of grant funding from the Utah Department of Health, Bureau of Emergency Medical Services. This funding will be used towards the purchase of a 12-Lead Cardiac Monitor and medical supplies relating to the provision of Emergency Medical Services as funding permits. A Public Hearing was held on 2/16/21 for the grant applications on this award. G-3: State of Utah, CCJJ (Commission on Criminal and Juvenile Justice), Jurisdictions with Halfway Houses and Parole Violator Center Grant, Law Enforcement Services Account (LESA) The Police Department has applied for and been awarded a $295,570 grant from the State of Utah, Commission on Criminal and Juvenile Justice, in support of the Jurisdictions with Halfway Houses and Parole Violator Centers grant. This grant provides funding for law enforcement agencies that provide services directly to areas with halfway houses or parole violator centers, or both. The Police Department will use these funds for law enforcement overtime related to reducing criminal activity including targeted enforcement operations, increased patrol response, and responding to mental health calls for service. The Department will also utilize funds for case transcription services, six overt camera units and maintenance/repairs/supplies for units in the Department's camera program. A public hearing was held 9/7/21 for this grant application. G-4: Utah State Office for Victims of Crime, 2021-23 VOCA Victims of Crime Act Grant ($364,162 – Miscellaneous Grants) The Police Department applied for and received a $364,162.48 grant from the State of Utah, Office for Victims of Crime under the Victims of Crime Act (VOCA) program, to be used for the continuation of the Victim Advocate Program. These funds will be used to pay for salary and fringe for 4 existing full-time Victim Advocate positions and all of the part-time Victim Advocate positions. This grant also covers the costs for Rita, the program's facility dog. Additionally, there are supplies for the program, emergency funds for assisting victims, and training for Advocate staff. No match is required by the funding agency. VOCA funds cover local and national conferences and trainings needed to meet statutory training requirements for the Victim Advocates. It also provides and emergency fund that can be used when no other victim funding options are available - these funds can be used for food, clothing, shelter, transportation and 911 phones for victims of violent crime. Additionally, it provides for supplies such as Victim Advocate brochures, Traumatic Death Handbooks, cell phone costs, etc. A $109,938.89 match is required which will be satisfied by the salary and benefits of City funded Victim Advocates and the Program Coordinator. In-kind matching funds are provided by the student interns/volunteers that participate in the Victim Advocate Program. A Public Hearing was held 9/7/21 on this grant application. G-5: Department of Workforce Services, Housing & Community Development Division, FY22 Homeless Shelter Cities Mitigation Grant Program ($370,735 – Miscellaneous Grants) The Community and Neighborhoods Dept. applied for and received State Department of Workforce Services funding of $370,735 to continue efforts to encourage businesses, residents, Homeless Resource Center (HRC) operators and guests to participate in constructive community engagement opportunities and encourage service-based interventions in order to successfully integrate the HRCs into the fabric of their host neighborhoods and ensure the safety of those neighborhoods. The SLC Mitigation team currently consists of a SLC Community Engagement Coordinator, VOA Business and Community Liaison, and VOA Outreach Case Manager. This application requests to continue the current team and expand the team to include an additional VOA Business and Community Liaison, additional VOA Outreach Case Manager, and a VOA Outreach Peer Support Specialist, and three new positions as part of the City's existing Page | 19 Downtown Ambassador program - tailored to the areas surrounding the HRCs (King, Miller, and Youth). A Public Hearing was held on October 5, 2021. G-6: Utah State Department of Public Safety – 2021 Emergency Management Performance Grant (EMPG) ($42,500 – Miscellaneous Grants) The Emergency Management Services Division received a $42,500 FY2021 EMPG grant from the State of Utah, Department of Public Safety. This grant is awarded on an annual basis to jurisdictions to help offset costs of planning and updating emergency preparedness plans, conduct emergency preparedness exercises and produce materials and other media for public educational outreach and training pertaining to emergency preparedness. SLC's population increases from 180,000 to an estimated 310,000 each workday. Should a disaster occur during the workday, employees become a part of the SLC emergency response, but are not trained to assist themselves or others. These funds will offset costs in providing National Incident Management System (NIMS) training to SLC staff with emergency response responsibilities during a disaster or other significant event. The funds will be used to fund community preparedness activities, purchase training materials, supplies and equipment including books, brochures, handouts, etc. The grant requires a 50% match which will be satisfied with the Community Preparedness Coordinator's time and budgeted for within Emergency Management’s general fund. A public hearing will be held for this grant application. G-7: Cities of Service, Johns Hopkins, Justice for the Jordan Grant – Love your Block – ($100,000 – Miscellaneous Grants) The office of the Mayor applied for and received $100,000 in grant funding for the Justice for the Jordan, Love your Block grant. The grant provides: 1. $60,000 to hire a Love your Block Fellow for 2 years. 2. $40,000 to distribute to the community as mini grants 3. The City is also required to engage 2 AmeriCorps VISTA volunteers, one each year of the grant. 4. The City also receives technical assistance from Cities of Service The Cities of Service Love Your Block program connects mayor’s offices with community residents to revitalize their neighborhoods one block at a time. Typically, cities implementing Love Your Block invite community groups to identify priority projects and award mini-grants to support volunteer-fueled solutions that the community can implement. The City identifies a problem and then engages with volunteers within the neighborhoods of focus and engages them early in the project design phase as well as implementation and evaluation. The City identified the neighborhoods adjacent to the Jordan River in Glendale (census tract 1026, 1027.01, and 1028.01) as the target area. A public hearing was held October 5, 2021. G-8: Utah State Office for Victims of Crime, Violence Against Women Act, Domestic Violence Victim Advocate The City Prosecutors office applied for and received a $101,039 grant from the State of Utah, Office for Victims of Crime under the Victims of Crime Act (VOCA) program, to be used for the Violence Against Women’s Act to fund Salt Lake City Prosecutor Domestic Violence Victim Advocate. The Prosecutor’s Office is requesting a Victim Advocate to assist and support victims of domestic violence as their cases move to the prosecution and adjudication phases. The services include information, education and advocacy through the case and prosecution, assistance with victim impact statements, support and accompaniment to court and meetings with investigators and prosecutors. The Victim Advocate assists in post release safety planning, preparation for court appearances, and jail release agreements. Until this year, Salt Lake County District Attorney Victim Services has provided this support for victims whose cases are adjudicate in Salt Lake City Justice Court. Funding cutbacks required the county to reassign the advocates to County prosecutions. Salt Lake City is applying for this new city position to fill the gap in services. The match is $12,630 each fiscal year, for a total of $25,260 for the two-year performance period of the grant. The match is met with cash available in the Office of the Attorney’s budget. A Public Hearing was held 6/15/21 on this grant application. Page | 20 Section I: Council Added Items I-1: Council Office Reclassifications and Amending FY22 Appointed Pay Plan The table below summarizes the reclassifications of six FTE appointed positions in the Council Office. Vacancy savings will cover the cost difference for the current fiscal year. Old Title / Grade New Title / Grade Communications Director / 31x Public Engagement & Communications Specialist III / 31x Public Engagement & Communications Specialist I / 26x Public Engagement & Communications Specialist II / 28x Public Policy Analyst II / 31x Senior Public Policy Analyst / 33x Public Policy Analyst II / 31x Senior Public Policy Analyst / 33x Associate Deputy Director / 37x Deputy Director / 39x Senior Public Policy Analyst / 33x Legislative & Policy Manager / 37x ATTACHMENTS 1. Sales Tax Update and Chart 2. COVID-19 Local Assistance Matching Grant Program – New Water Reclamation Facility: Influent Pump Station and Force Mains (Memo from Administration and Council staff report) 3. Westside Communities Initiative RDA Transmittal from September 14 ACRONYMS ADA – Americans with Disabilities Act AFSCME – American Federation of State, County and Municipal Employees ARPA – American Rescue Plan Act CAN – Community and Neighborhoods Department CCAC – Citizens Compensation Advisory Committee CCJJ – Commission on Criminal and Juvenile Justice CCP – Community Commitment Program CDBG – Community Development Block Grant CHAT – Community Health Access Team CIP – Capital Improvement Program CIT – Crisis Intervention Team EDLF – Economic Development Loan Fund EMPG – Emergency Management Performance Grant EMT – Emergency Medical Technician FTE – Full Time Equivalent Position FY – Fiscal Year GARE – Government Alliance on Race and Equity HRC – Homeless Resource Center HUD – United States Housing and Urban Development Department HVAC – Heating, Ventilation, and Air Conditioning PPE – Personal Protective Equipment RDA – Redevelopment Agency REP – Racial Equity in Policing Commission SAA – Special Assessment Area TBD – To Be Determined UDAQ – Utah Department of Air Quality VISTA – Volunteers in Service to America VOCA – Victims of Crime Act 1Subject:FW: Sales Tax Update Through FY 2021These are the Actuals of the 1% Sales Tax Through FY 2021.  The last half of the year was big especially in the last quarter averaging  33.8% higher than the previous year.  There are inflationary factors that play into this as well.  The last 3 quarters have shown record highs, when you adjust the revenue by cpi the last month of June was the still the highest month on record. 1% sales tax revenue received, not adjusted for inflation Month of Sale 2019 2020 diff 20‐19 % Change 2021 diff 21‐20 %Change Note July  5,166,159    5,509,305    343,146  6.6%   5,506,282   (3,023) ‐0.1% August  5,494,943    5,453,557   (41,386) ‐0.8%   5,363,921   (89,636) ‐1.6% September  5,990,942    5,979,661   (11,281) ‐0.2%   6,506,479    526,818  8.8% October  4,966,702    5,463,847    497,146  10.0%   5,190,694   (273,154) ‐5.0% November  5,186,889    5,461,007    274,119  5.3%   5,880,648    419,640  7.7% December  6,321,763    6,883,312    561,549  8.9%   7,020,529    137,217  2.0% January  4,901,735    5,697,416    795,681  16.2%   5,255,105   (442,311) ‐7.8% February  4,925,841    4,468,260   (457,581) ‐9.3%   5,280,150    811,890  18.2% March  5,739,003    5,980,157    241,154  4.2%   7,133,537    1,153,380  19.3% April  4,743,045    4,607,410   (135,635) ‐2.9%   6,304,088    1,696,678  36.8% May  5,480,257    4,834,144   (646,112) ‐11.8%   6,319,024    1,484,880  30.7% June  5,980,148    5,986,060     5,912  0.1%   8,017,577    2,031,517  33.9%  Total   64,897,427     66,324,138     1,426,711    73,778,034     7,453,896  Accommodation and Food Services is still slow because of the pandemic. 2020 to 2021 ‐ Sale Tax Actuals 2020 2021 Sector Name   sales_credit   Diff FY  Y/Y % Ch % of Total   sales_credit   Diff FY  Y/Y % Ch % of Total Retail Trade   37,076,952   1,471,251  4% 41.4%   36,696,900   (380,052) ‐1% 42.4% Wholesale Trade   11,887,403    523,932  5% 13.3%   12,281,114    393,711  3% 14.2% Accommodation and Food Services   10,358,167    (2,386,736) ‐19% 11.6%   7,629,468    (2,728,698) ‐26% 8.8% Manufacturing   5,846,937    496,178  9% 6.5%   5,755,063   (91,874) ‐2% 6.7% Real Estate and Rental and Leasing   4,261,171   (610,243) ‐13% 4.8%   3,810,664   (450,508) ‐11% 4.4% Attachment 1 - Sales Tax Revenues Update through End of Fiscal Year 2021 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 COUNCIL.SLCGOV.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY www.slccouncil.com/city-budget TO: City Council Members FROM: Sylvia Richards, Budget Analyst DATE: November 16, 2021 RE: PUBLIC HEARING FOR GRANT APPLICATION SUBMISSION PROJECT TIMELINE: Briefing: Not required. Set Date: Not required. Public Hearing: Nov. 16, 2021 Potential Action: TBD _________________________________________________________________ ISSUE AT-A-GLANCE The Administration has submitted seven grant applications. In an effort to ensure that the City Council, Council staff and the public has adequate opportunity to see and comment on them, the grant application notifications will be included in the Council meeting agendas under Public Hearings. There won’t be a set date since this is not a required hearing. 2. New Water Reclamation Facility: Influent Pump Station and Force Mains – COVID-19 Local Assistance Matching Grant Program Purpose/Goal of the Grant: If awarded, the grant monies will be used to help fund the construction of the new Influent Pump Station Force Mains, (a sub-project of the Water Reclamation Facility), and replace the existing pump station and force mains that are at the end of their service life. Grant Amount: $10 million dollars Requested by: Department of Public Utilities Funding Agency: Utah’s Governor’s Office for Policy and Budget in conjunction with Utah Division of Water Quality Match Requirement: $40 million dollars – Sources: The Department of Public Utilities planned utility revenue bond issuances, and the secured loan through the Federal Water Infrastructure Financing and Innovation Act. The City committed a $40 million dollar match for this project to increase the competitiveness of the application. Note: There is a request in Budget Amendment #4 to set aside $2 million in miscellaneous grant funds towards the $40 million required match. Staff Recommendation: Please refer to motion sheet. Grant Application Submission Notification Memo TO: Jennifer Bruno, Cindy Gust-Jenson, Rachel Otto, Lisa Shaffer, Mary Beth Thompson CC: Sarah Behrens, Laura Briefer, Jaysen Oldroyd, Melyn Osmond, Sylvia Richards, Linda Sanchez, Recorders (All), Jordan Smith, Jesse Stewart, Lehua Weaver FROM: Elizabeth Gerhart eg DATE: September 17, 2021 SUBJECT: COVID-19 Local Assistance Matching Grant Program – New Water Reclamation Facility: Influent Pump Station and Force Mains FUNDING AGENCY: Utah Governor’s Office for Policy & Budget GRANT PROGRAM: COVID-19 Local Assistance Matching Grant Program REQUESTED GRANT AMOUNT: $10,000,000 DEPARTMENT: Department of Public Utilities COLLABORATING AGENCIES: Utah Division of Water Quality DATE SUBMITTED: September 15, 2021 SPECIFICS: □ Equipment/Supplies Only □ Technical Assistance □ Provides FTE □ Existing □ New □ Overtime □ Requires Funding After Grant Explanation: □ Match Required □ In-Kind and □ Cash GRANT DETAILS:  Salt Lake City Department of Public Utilities requested $10,000,000 for the New Water Reclamation Facility: Influent Pump Station and Force Mains project.  The Influent Pump Station and Force Mains is a sub-project of the new Water Reclamation Facility and replaces the existing pump station and force mains that are at the end of their service life.  Salt Lake City Department of Public Utilities committed a $40 million match for the influent pump station and force mains construction from its planned utility revenue bond issuances and from the secured loan through federal Water Infrastructure Financing and Innovation Act for the new Water Reclamation Facility to increase the competitiveness of the application. SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO DATE: August 26, 2021 PREPARED BY: Tammy Hunsaker RE: Westside Community Initiative – Initial Briefing REQUESTED ACTION: Briefing on the framework for a new program intended to utilize Inland Port Housing Funds to advance development activities on the City’s Westside. POLICY ITEM: Affordable housing; 9 Line and North Temple project area development. BUDGET IMPACTS: Inland Port Housing Funds. EXECUTIVE SUMMARY: Earlier this year, the Board of Directors of the Redevelopment Agency of Salt Lake City (“RDA”) directed staff to develop a proposed program for the utilization of funds received by the RDA from the Inland Port Authority. These funds are received pursuant to Utah Code Title 11-58 Utah Inland Port Authority Act, which provides that a portion of tax differential generated within Inland Port Authority Jurisdictional Land shall be paid to the RDA to be utilized for housing. As such, RDA staff is working to develop a new program, tentatively called the Westside Community Initiative (“WCI”). While the proposed WCI is based on community land trust and cooperative-style housing development, it is broader in nature to carry out other project types for a collective impact. As proposed, the WCI shall facilitate the implementation of transformative housing and mixed-use projects with a focus on affordable homeownership as a way of building community cohesion and personal wealth. The geographic scope of the initiative is proposed to be the City’s Westside defined as west of I-15. The RDA’s 9 Line and North Temple project areas are included in this larger geographic area. Affordable and mixed-income housing projects will be leveraged with additional public benefits including neighborhood services, economic opportunity, and transit-oriented development. By taking a long-term approach to development projects, the WCI will balance the implementation of public benefits with the ability to generate revenue to be reinvested back into the community. Inland Port Housing Funds are required to be utilized for the purposes outlined in Utah 17C - Community Reinvestment Agency Act, section 17-C-1-412 – Use of Housing Allocation, which generally limits eligible activities to the development and preservation of housing targeted to households at or below 80% of the area median income (“AMI”). Under the statute, funds can be utilized to implement mixed-income projects, mixed-use projects, and related improvements. As such, funds can be leveraged as part of housing projects for a broad array of other public benefits, including infrastructure improvements, economic development, sustainable building practices, and the redevelopment of undesirable land uses. While the primary source of revenue for the initiative is anticipated to be Inland Port Housing Funds, the Board would be able to allocate other revenue sources to the WCI. In addition, the RDA would actively work to acquire outside funding sources and resources to collaborate on projects and activities. This could broaden the eligible uses of funding dedicated to the WCI. This memorandum includes initial information on the proposed framework for the WCI , including the budget and policy structure, goals, and activities. RDA staff will incorporate the Board’s feedback as specific details of the initiative are developed for the Board’s consideration at a future date. ANALYSIS & ISSUES: Additional details on the proposed framework of the WCI are as follows: I. Budget & Policy Structure: To implement the WCI, the following efforts would need to be carried out by the Board: 1. Update the RDA Housing Allocation Funds Policy, resolution R-4-2021, to earmark the Inland Port Housing Funds for the WCI and to allow for allocations from other revenue sources. This would be a minor change to the existing policy. 2. Create a new policy for the WCI that establishes the purpose, goals, activities, metrics, and reporting requirements for the initiative. If the Board is supportive, this policy would be based on the information contained herein. While the WCI policy would identify the purposes, goals, and activities of the initiative, projects would be administered pursuant to existing RDA programs and tools. Additionally, a new policy would be developed for a Shared Equity Development program. Programs and tools the WCI would be administered pursuant to are as follows: • RDA Loan Program Policy: Resolution R-37-2016 • Tax Increment Reimbursement Program Policy: Resolution R-9-2017 • RDA Real Property Disposition Policy: Resolution R-6-2021 • Housing Development Loan Program: Resolution R-7-2021 • Shared Equity Housing Program: Resolution Forthcoming Refer to Attachment A for a chart depicting the proposed structure of the WCI. II. Goals: The goals for the WCI are proposed as follows: • Develop Land with a Long-Term Approach to Continuously Serve a Community- Defined Purpose WCI will take a long-term approach to land development and community building so that the RDA may retain the fee ownership to and a reversionary interest in the property. By ground leasing to development partners, the RDA will provide an opportunity to receive revenue generation to serve other public benefits. • Create Opportunities for Revenue Generation while Balancing the Implementation of Public Benefits WCI will strive to balance the development of property with the incorporation of public benefits. Benefits such as affordable housing and below-market commercial space which generate limited or no cash flow would potentially be subsidized with land uses that generate positive cash flow. Revenue generated by projects and received by the RDA will then be reinvested back into the WCI with the goal of furthering shared prosperity. • Assist the Westside in Mitigating Gentrification and Displacement WCI will acquire land with the goal of holding it for the community in perpetuity, thereby removing land from the speculative market so that it serves low and moderate -income residents in perpetuity. Housing will remain affordable even as neighborhood change occurs and gentrification pressures mount, which protects families from displacement. • Give Lower Income Households the Opportunity to Build Wealth Through Ownership WCI will create opportunities for families to buy homes at affordable prices by focusing on a shared-equity model. A shared equity model offers an alternative form of ownership that provides benefits traditional markets cannot, such as long-term housing affordability and the ability for low and moderate-income families to build equity. When families decide to sell, they will receive their portion of the appreciation but the RDA remains as the land owner and is in the position to continue to sell the home at a below-market price, making it affordable to another family of limited means. Keeping the home affordable, from family to family, will benefit future generations by acting as a steppingstone for low-income families to go from renting to building wealth. • Engage Community Members in Development Decisions The RDA will involve the community in the planning and goals regarding long term land use and housing development. This can translate into residents actively involved in creating positive change within their communities and projects that reflect the value of its residents. The result will be projects that incorporate a shared mission and vision with the community. • Leverage Resources for Other Neighborhood Development Purposes Revenues acquired through ground leases or partnerships could contribute to other purposes, including subsidizing deeply affordable housing, below-market commercial space, infrastructure, public art, etc. • Collaborate with Other Partners to Broaden the Pool of Funding and Expertise The RDA would actively work to acquire outside funding sources and professional resources by bringing together financial institutions, the private sector, nonprofits, public officials, other government agencies, researchers, and practitioners to collaborate on community and economic development activities. • Carry Out Efforts with a “Collective Impact” Approach The RDA will continuously evaluate how projects work together to address common goals through a “collective impact” approach that produces measurable results. These measurable results will be tracked and reported on to promote data-driven and outcome-based decisions. III. Activities: The activities of the WCI are proposed as follows: • Strategic Acquisitions Strategic property acquisitions that may include distressed properties characterized by high crime rates, properties that are located at target locations, and other opportunities that align with the City’s objectives and meet predefined policy priorities. Properties will be redeveloped as elevated real estate development projects that have profound impacts on people, particularly low-income and vulnerable populations, in order to uplift others, create economic opportunities, improve health outcomes, and influence the physical and socioeconomic landscape of Salt Lake City. • Shared Equity Models of Development o Land Trust Development The RDA will retain ownership of land and provide for the sale or rental of housing to lower-income households. To make certain would-be homeowners and renters benefit from the arrangement for years to come, the resale prices and rents of the housing will be capped, maintaining affordability for the next family. o Multifamily Cooperative Housing Development The RDA will facilitate the development of cooperative housing projects to provide a framework for homeownership by bringing people together to own the building in which they live. A housing cooperative or "co-op" is a type of residential housing option that is a corporation whereby the owners do not own their units outright. Instead, each resident is a shareholder in the corporation based in part on the relative size of the unit that they live in. The co-op housing model provides low-income households with a way to accumulate personal wealth, through equity accumulation and mortgage interest deductions. • Residential and Mixed-Use Rental Housing Development The RDA will facilitate the development of rental mixed-income and mixed-use projects that are part of a larger coordinated effort to co-locate housing with the services and resources to increase a person’s likelihood for upward mobility. • Other Public Benefits While it is anticipated that the WCI will focus on affordable housing due to certain funding source restrictions, there is opportunity to leverage housing projects with broader public benefits. Furthermore, there is opportunity to broaden the WCI’s funding sources, with both internal and external sources, to expand the eligible activities funded through the WCI. Other public benefits could include infrastructure improvements (both street and green infrastructure), housing for a broad array of AMIs, job creation, small-business development, street activation, publicly visible art, historic preservation, adaptive reuse, neighborhood services, among others. IV. Next Steps RDA staff will incorporate the Board’s feedback on the information contained herein and will return to the Board with the following: 1. Revisions to the RDA Housing Allocation Funds Policy, resolution R-4-2021, to earmark Inland Port Funds for the WCI. The policy will also be revised to allow for allocations of other sources of revenue to the initiative. 2. A new policy resolution for the WCI that establishes the purpose, goals, activities, metrics, and reporting requirements for the initiative. 3. A new policy for a Shared Equity Housing Development program that provides for homeownership by bringing people together to own the building in which they live while the land is owned by the RDA, or another entity, to preserve affordability in perpetuity. PREVIOUS BOARD ACTION: • May 2021 – The RDA Board directed RDA staff to develop a proposed program for a community land trust type program for the City’s Westside that utilizes Inland Port funds. ATTACHMENTS: • A – Westside Community Initiative: Proposed Framework Chart WESTSIDE COMMUNITY INITIATIVE (WCI) PROPOSED FRAMEWORK Note: The Initiative’s activities shall be administered pursuant to the following policies: RDA Loan Program Policy: Resolution R-37-2016 Tax Increment Reimbursement Program Policy: Resolution R-9-2017 RDA Real Property Disposition Policy: Resolution R-6-2021 Housing Development Loan Program: Resolution R-7-2021 Shared Equity Housing Program: Resolution Forthcoming • Develop Land with a Long-Term Approach to Continuously Serve a Community-Defined Purpose • Create Opportunities for Revenue Generation while Balancing the Implementation of Public Benefits • Assist the Westside in Mitigating Gentrification and Displacement • Give Lower Income Households the Opportunity to Build Wealth Through Ownership • Engage Community Members in Development Decisions • Leverage Resources for Other Neighborhood Development Purposes • Collaborate with Other Partners to Broaden the Pool of Funding and Expertise • Carry Out Efforts with a “Collective Impact” Approach GOALS PURPOSE The implementation of transformative housing and mixed-use projects with a focus on homeownership and affordability as a way of building community cohesion and personal wealth. Housing projects will be leveraged with additional public benets including neighborhood services, economic opportunities, and transit-oriented development. A Westside Community Initiative policy will be created that identies the purpose, goals, and activities of the initiative. Projects will align with the intent of the WCI and will be administered through RDA programs and polices. INLAND PORT HOUSING DIFFERENTIAL OTHER SOURCES ALLOCATED BY BOARD WCI REVENUE WCI HOUSING FUND FUNDING SOURCES (revenues) ACTIVITIES (expenses) STRATEGIC ACQUISITION SHARED EQUITY DEVELOPMENT OTHER PUBLIC BENEFITS RESIDENTIAL & MIXED-USE DEVELOPMENT Note: The RDA Housing Allocation Funds policy, resolution R-4-2021, will be updated to provide for the earmarking of Inland Port Housing Funds, WCI revenue, and other funds as determined by the BOD for the WCI. As the Policy currently stands, there is a NWQ Housing Fund that receives Inland Port Housing revenue. This fund would be renamed to the WCI Housing Fund. DEPARTMENT OF FINANCE POLICY AND BUDGET DIVISION 451 SOUTH STATE STREET, ROOM 238 PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394 ERIN MENDENHALL Mayor MARY BETH THOMPSON Chief Financial Officer CITY COUNCIL TRANSMITTAL ___________________________________ Date Received: ________________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: ___________ ______________________________________________________________________________ TO: Salt Lake City Council DATE: October 25, 2021 Amy Fowler, Chair FROM: Mary Beth Thompson, Chief Financial Officer SUBJECT: Budget Amendment #4 - Revised SPONSOR: NA STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or Mary Beth Thompson (801) 535-6403 DOCUMENT TYPE: Budget Amendment Ordinance RECOMMENDATION: The Administration recommends that, subsequent to a public hearing, the City Council adopt the following amendments to the FY 2021-22 adopted budget. BUDGET IMPACT: REVENUE EXPENSE GENERAL FUND $ 1,772,794.00 $ 4,657,529.00 WATER FUND 0.00 18,118.00 SEWER FUND 0.00 7,941.00 STORM WATER FUND 0.00 2,278.00 AIRPORT FUND 0.00 39,790.00 REFUSE FUND 24,907.00 4,109.00 GOLF FUND 14,310.00 1,802,257.00 FLEET FUND 438,905.00 423,258.00 IMS FUND 161,380.00 135,492.00 MISCELLANEOUS GRANT FUND 17,497,861.48 15,751,215.48 DEBT SERVICE FUND 26,165,000.00 26,165,000.00 CIP FUND 23,400,000.00 23,400,000.00 RISK FUND 212,897.00 212,897.00 TOTAL $ 69,688,054.48 $ 72,619,884.48 Lisa Shaffer (Oct 25, 2021 17:23 MDT) BACKGROUND/DISCUSSION: Revenue for FY 2021-22 Budget Adjustments Because the fiscal year just started the Fiscal Year 2022 projections are at budget. The following chart shows a current projection of General Fund Revenue for fiscal year 2022. Projections for fiscal year 2021 are coming in better than expected, more detail will be shared as the audit progresses. Given the available information fund balance would be projected as follows: With the current use of fund balance from this budget amendment fund balance drops to 12.86%. FOF GF Only TOTAL FOF GF Only TOTAL Beginning Fund Balance 6,625,050 82,617,126 89,242,176 7,018,483 50,124,619 57,143,102 Budgeted Change in Fund Balance 2,924,682 (7,810,302) (4,885,620) (4,759,137) (19,471,917) (24,231,054) Prior Year Encumbrances (3,733,743) (6,165,453) (9,899,196) - - - Estimated Beginning Fund Balance 5,815,989 68,641,371 74,457,360 2,259,346 30,652,702 32,912,048 Beginning Fund Balance Percent 16.62%23.32%22.61%5.60%9.64%9.18% Year End CAFR Adjustments Revenue Changes - - - - - - Expense Changes (Prepaids, Receivable, Etc.) - (5,676,583) (5,676,583) 5,759,137 7,652,037 13,411,174 Fund Balance w/ CAFR Changes 5,815,989 62,964,788 68,780,777 8,018,483 38,304,739 46,323,222 Final Fund Balance Percent 16.62%21.39%20.88%19.87%12.05%12.93% Budget Amendment Use of Fund Balance BA#1 Revenue Adjustment - - - - - - BA#1 Expense Adjustment - - - - 5,138,235 5,138,235 BA#2 Revenue Adjustment - - - - 490,847 490,847 BA#2 Expense Adjustment - (288,488) (288,488) - (986,298) (986,298) BA#3 Revenue Adjustment - - - - - - BA#3 Expense Adjustment - (6,239,940) (6,239,940) (1,000,000) (1,000,000) (2,000,000) BA#4 Revenue Adjustment - - - - 1,772,794 1,772,794 BA#4 Expense Adjustment - - - - (4,657,529) (4,657,529) BA#5 Revenue Adjustment - (242,788) (242,788) - - - BA#5 Expense Adjustment - (2,783,685) (2,783,685) - - - BA#6 Revenue Adjustment - - - - - - BA#6 Expense Adjustment - (63,673) (63,673) - - - BA#7 Revenue Adjustment - 540,744 540,744 - - - BA#7 Expense Adjustment - (6,582,824) (6,582,824) - - - BA#8 Revenue Adjustment - - - - - - BA#8 Expense Adjustment (1,000,000) (1,000,000) (2,000,000) - - - BA#9 Revenue Adjustment - 439,809 439,809 - - - BA#9 Expense Adjustment - 362,532 1,555,532 - - - Change in Revenue 2,202,494 3,018,144 5,220,638 - - - Fund Balance Budgeted Increase - - - - - - - - Adjusted Fund Balance 7,018,483 50,124,619 58,336,102 7,018,483 39,062,788 46,081,271 Adjusted Fund Balance Percent 20.05%17.03%17.71%17.39%12.28%12.86% Projected Revenue 35,000,000 294,345,168 329,345,168 40,359,137 317,980,599 358,339,736 2021 Projection 2022 Projection The Administration is requesting a budget amendment totaling $69,688,054.48 of revenue and expense of $72,619,884.48. The amendment proposes changes in thirteen funds, with $2,884,735.00 from the General Fund fund balance. The proposal includes forty-one initiatives for Council review. Including the addition of 22 FTEs in the General Fund supported by grant funding. A summary spreadsheet document, outlining proposed budget changes is attached. The Administration requests this document be modified based on the decisions of the Council. The revision corrects numbering issues in section E of the Detail Document. The budget opening is separated in eight different categories: A. New Budget Items B. Grants for Existing Staff Resources C. Grants for New Staff Resources D. Housekeeping Items E. Grants Requiring No New Staff Resources F. Donations G. Council Consent Agenda Grant Awards I. Council Added Items PUBLIC PROCESS: Public Hearing SALT LAKE CITY ORDINANCE No. ______ of 2021 Fourth amendment to the Final Budget of Salt Lake City, including the employment staffing document, for Fiscal Year 2021-2022 In June of 2021, the Salt Lake City Council adopted the final budget of Salt Lake City, Utah, including the employment staffing document, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022, in accordance with the requirements of Section 10-6-118 of the Utah Code. The City’s Budget Director, acting as the City’s Budget Officer, prepared and filed with the City Recorder proposed amendments to said duly adopted budget, including the amendments to the employment staffing document necessary to effectuate the staffing changes specifically stated herein, copies of which are attached hereto, for consideration by the City Council and inspection by the public. All conditions precedent to amend said budget, including the employment staffing document as provided above, have been accomplished. Be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Purpose. The purpose of this Ordinance is to amend the final budget of Salt Lake City, including the employment staffing document, as approved, ratified and finalized by Salt Lake City Ordinance No. 32 of 2021. SECTION 2. Adoption of Amendments. The budget amendments, including amendments to the employment staffing document necessary to effectuate the staffing changes specifically stated herein, attached hereto and made a part of this Ordinance shall be, and the same hereby are adopted and incorporated into the budget of Salt Lake City, Utah, including the amendments to the employment staffing document described above, for the fiscal year beginning 2 July 1, 2021 and ending June 30, 2022, in accordance with the requirements of Section 10-6-128 of the Utah Code. SECTION 3. Filing of copies of the Budget Amendments. The said Budget Officer is authorized and directed to certify and file a copy of said budget amendments, including amendments to the employment staffing document, in the office of said Budget Officer and in the office of the City Recorder which amendments shall be available for public inspection. SECTION 4. Effective Date. This Ordinance shall take effect upon adoption. Passed by the City Council of Salt Lake City, Utah, this _____ day of __________, 2021. ________________________ CHAIRPERSON ATTEST: ______________________________ CITY RECORDER Transmitted to the Mayor on __________________ Mayor’s Action: ____ Approved ____ Vetoed _________________________ MAYOR ATTEST: _______________________________ CITY RECORDER (SEAL) Bill No. _________ of 2021. Published: ___________________. Salt Lake City Attorney’s Office Approved As To Form Senior City Attorney Initiative Number/Name Fund Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs 1 Risk Excess Liability and Cyber Insurance Costs Risk 212,897.00 212,897.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs GF 128,888.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs Water 18,118.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs Sewer 7,941.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs Storm Water 2,278.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs Airport 39,790.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs Refuse 4,109.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs Golf 2,257.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs Fleet 2,938.00 - - One-time - 1 Risk Excess Liability and Cyber Insurance Costs IMS 4,492.00 - - One-time - 2 Department of Air Quality Lawnmower Exchange GF - 250,000.00 - - One-time - 3 COVID Safe Building Improvements GF - 844,000.00 - - One-time - 3 COVID Safe Building Improvements IMS 131,000.00 131,000.00 - - One-time - 4 Pulled Prior to Submission - - - - 5 Community Health Access Team Vehicles GF - 150,000.00 - - One-time - 5 Community Health Access Team Vehicles Fleet 150,000.00 150,000.00 - - One-time - 6 Non Represented Employee Job Salary Survey GF - 75,000.00 - - One-time - 7 Sugar House SAA GF - 60,000.00 - - One-time - 8 Sorenson Impact Center Social Investment GF - 150,000.00 - - One-time - 9 Pulled Prior to Submission - - - - - 10 Community Health Access Team (CHAT) FTE Transfer GF - - - - Ongoing - 11 Rose Park Golf Course Water & Energy Efficiency Grant (Matching Funds) Golf - 1,800,000.00 - - One-time - Fiscal Year 2021-22 Budget Amendment #4 Council ApprovedAdministration Proposed Section A: New Items 1 Fiscal Year 2021-22 Budget Amendment #4 Initiative Number/Name Fund Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs (Continued) 12 ARPA Funding -Housing & Homelessness - Salary Restoration - Public Lands Park Ranger program (see Item C-1 & E-3 & E-4) GF 1,064,368.00 1,064,368.00 - - Ongoing 19.00 12 ARPA Funding -Housing & Homelessness - Salary Restoration - Public Lands Park Ranger program (see Item C-1 & E-3 & E-4) GF 443,676.00 443,676.00 - - One-time - 12 ARPA Funding -Housing & Homelessness - Salary Restoration - Public Lands Park Ranger program (see Item C-1 & E-3 & E-4) Fleet 195,720.00 195,720.00 - - One-time - 13 ARPA Funding – Housing & Homelessness - CCP Rapid Intervention Teams (See Item C- 2 & E-5) GF 164,750.00 164,750.00 - - Ongoing 3.00 1 ARPA Funding -Housing & Homelessness - Salary Restoration - Public Lands Park Ranger program (See Item A-12 & E-3 & E4) Misc Grants 1,064,368.00 1,064,368.00 - - Ongoing - 2 ARPA Funding – Housing & Homelessness - CCP Rapid Intervention Team (See Item A- 13 & E-5) Misc Grants 164,750.00 164,750.00 - - Ongoing - Council Approved Section C: Grants for New Staff Resources Section B: Grants for Existing Staff Resources Administration Proposed Section A: New Items 2 Fiscal Year 2021-22 Budget Amendment #4 Initiative Number/Name Fund Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs 1 Economic Development Loan Fund Move Housing - (100,000.00) - - One-time - 1 Economic Development Loan Fund Move Housing 100,000.00 - - One-time - 1 Economic Development Loan Fund Move GF 100,000.00 100,000.00 - - One-time - 2 Increase Grant Fund Misc Grants 1,746,646.00 - - - Ongoing - 3 Premium Holiday - Other Funds Refuse 24,907.00 - - - One-time 3 Premium Holiday - Other Funds Golf 14,310.00 - - - One-time 3 Premium Holiday - Other Funds Fleet 18,585.00 - - - One-time 3 Premium Holiday - Other Funds IMS 30,380.00 - - - One-time 4 GPS Housekeeping GF - (74,600.00) - - One-time - 4 GPS Housekeeping GF - 74,600.00 - - One-time - 4 GPS Housekeeping Fleet 74,600.00 74,600.00 - - One-time - 5 Signage FTE Correction GF - 51,847.00 - - Ongoing - 6 General Obligation Series 2021A Bonds CIP 23,400,000.00 23,400,000.00 - - One-time - 6 General Obligation Series 2021A Bonds Debt Service 200,000.00 200,000.00 - - One-time - 7 Sales Tax Refunding Revenue Bonds, Series 2021A Debt Service 10,665,000.00 10,665,000.00 - - One-time - 7 Sales Tax Refunding Revenue Bonds, Series 2021A Debt Service 10,400,000.00 10,400,000.00 - - One-time - 7 Sales Tax Refunding Revenue Bonds, Series 2021A Debt Service 4,900,000.00 4,900,000.00 - - One-time - 8 Budget Carry Forward GF - 1,175,000.00 One-time - Council Approved Section D: Housekeeping Administration Proposed 3 Fiscal Year 2021-22 Budget Amendment #4 Initiative Number/Name Fund Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs 1 ARPA Funding - Water and Sewer Infrastructure Projects Misc Grants 2,000,000.00 2,000,000.00 - - One-time - 2 ARPA Funding - Housing & Homelessness - Winter Shelter Support Misc Grants 1,000,000.00 1,000,000.00 - - One-time - 3 ARPA Funding - Housing & Homelessness - Salary Restoration - Public Lands Park Ranger program (See Item A-12, C-1 & E4) Misc Grants 443,676.00 443,676.00 - - Ongoing - 4 ARPA Funding - Housing & Homelessness - Public Lands Park Ranger program (See Item A-12, C-1 & E-3) Misc Grants 69,244.00 69,244.00 - - Ongoing - 5 ARPA Funding – Housing & Homelessness – CCP Rapid Intervention Team (See Item A-13 & C-2) Misc Grants 160,500.00 160,500.00 - - One-time - 6 ARPA Funding - Housing & Homelessness - CCP Rapid Intervention Team (Police Support) Misc Grants 1,505,920.00 1,505,920.00 - - One-time - 7 Pulled Prior to Submission to allow for the completion of phase 2 of the Social Impact Investment Misc Grants - - - - - 8 ARPA Funding - Housing and Homelessness - HEART Rapid Intervention Team (Advantage Services) Misc Grants 57,000.00 57,000.00 - - One-time - 9 ARPA Funding – Building the lifeboat with Urban Land Fund Misc Grants 4,000,000.00 4,000,000.00 - - One-time - 10 ARPA Funding – Community Grants Misc Grants 4,000,000.00 4,000,000.00 - - One-time - - Section F: Donations Section E: Grants Requiring No New Staff Resources Administration Proposed Council Approved 4 Fiscal Year 2021-22 Budget Amendment #4 Initiative Number/Name Fund Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs Consent Agenda #2 1 Police Department State Asset Forfeiture Grant Misc Grants 1,500.00 1,500.00 - - One-time - 2 Utah Department of Health - Bureau of Emergency Medical Services (EMS)grant, FY22 Per Capita Allocation Misc Grants 10,250.00 10,250.00 - - One-time - 3 State of Utah, CCJJ (Commission on Criminal and Juvenile Justice), Jurisdictions with Halfway Houses and Parole Violator Centers Grant, Law Enforcement Services Account (LESA) Misc Grants 295,571.00 295,571.00 - - One-time - 4 Utah State Office for Victims of Crime, 2021- 2023 VOCA Victims of Crime Act Grant Misc Grants 364,162.48 364,162.48 - - One-time - 5 Department of Workforce Services, Housing & Community Development Division, FY22 Homeless Shelter Cities Mitigation Grant Program Misc Grants 370,735.00 370,735.00 - - One-time - 6 Utah State Department of Public Safety - 2021 Emergency Management Performance Grant (EMPG) Misc Grants 42,500.00 42,500.00 - - One-time - 7 Cities of Service, Johns Hopkins, Justice for the Jordan Grant, Love Your Block Misc Grants 100,000.00 100,000.00 - - One-time - 8 Utah State Office for Victims of Crime, Violence Against Women Act, Domestic Violence Victim Advocate Misc Grants 101,039.00 101,039.00 - - One-time - Total of Budget Amendment Items 69,688,054.48 72,619,884.48 - - 22.00 Administration Proposed Council Approved Section I: Council Added Items Section G: Council Consent Agenda -- Grant Awards 5 Fiscal Year 2021-22 Budget Amendment #4 Initiative Number/Name Fund Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs Total by Fund Class, Budget Amendment #4: General Fund GF 1,772,794.00 4,657,529.00 - - 22.00 Water Fund Water - 18,118.00 - - - Sewer Fund Sewer - 7,941.00 - - - Storm Water Fund Storm Water - 2,278.00 - - - Airport Fund Airport - 39,790.00 - - - Refuse Fund Refuse 24,907.00 4,109.00 - - - Golf Fund Golf 14,310.00 1,802,257.00 - - - Fleet Fund Fleet 438,905.00 423,258.00 - - - IMS Fund IMS 161,380.00 135,492.00 - - - Miscellaneous Grants Fund Misc Grants 17,497,861.48 15,751,215.48 - - - Housing Fund Housing - - - - - Debt Service Fund Debt Service 26,165,000.00 26,165,000.00 - - - CIP Fund CIP 23,400,000.00 23,400,000.00 Risk Fund Risk 212,897.00 212,897.00 - - - - - - Total of Budget Amendment Items 69,688,054.48 72,619,884.48 - - 22.00 Administration Proposed Council Approved 6 Fiscal Year 2021-22 Budget Amendment #4 Current Year Budget Summary, provided for information only FY 2021-22 Budget, Including Budget Amendments FY 2021-22 Adopted Budget BA #1 Total BA #2 Total BA #3 Total BA #4 Total BA #5 Total ^^ Total Through BA#5 ^^ General Fund (FC 10)367,582,070 (5,138,235.00) 986,298.00 2,000,000.00 4,657,529.00 370,087,662.00 Curb and Gutter (FC 20)3,000 3,000.00 DEA Task Force Fund (FC 41)2,033,573 2,033,573.00 Misc Special Service Districts (FC 46)1,550,000 1,550,000.00 Street Lighting Enterprise (FC 48)5,699,663 7,098.00 5,706,761.00 Water Fund (FC 51)127,365,555 460,716.00 18,118.00 127,844,389.00 Sewer Fund (FC 52)268,213,796 221,826.00 7,941.00 268,443,563.00 Storm Water Fund (FC 53)19,201,013 19,705.00 2,278.00 19,222,996.00 Airport Fund (FC 54,55,56)706,792,500 1,350,949.00 39,790.00 708,183,239.00 Refuse Fund (FC 57)24,713,505 36,538.00 4,109.00 24,754,152.00 Golf Fund (FC 59)9,697,417 19,649.00 88,749.00 1,802,257.00 11,608,072.00 E-911 Fund (FC 60)4,056,856 4,056,856.00 Fleet Fund (FC 61)28,090,576 18,999.00 112,646.00 423,258.00 28,645,479.00 IMS Fund (FC 65)24,302,487 219,193.00 135,492.00 24,657,172.00 County Quarter Cent Sales Tax for Transportation (FC 69) 5,307,142 5,307,142.00 CDBG Operating Fund (FC 71)5,341,332 5,341,332.00 Miscellaneous Grants (FC 72)18,684,617 10,427,551.76 1,522,743.00 15,751,215.48 46,386,127.24 Other Special Revenue (FC 73)273,797 273,797.00 Donation Fund (FC 77)2,752,565 2,752,565.00 Housing Loans & Trust (FC 78)16,121,000 - 16,121,000.00 Debt Service Fund (FC 81)31,850,423 26,165,000.00 58,015,423.00 CIP Fund (FC 83, 84 & 86)29,503,216 (150,753.00) 23,400,000.00 52,752,463.00 Governmental Immunity (FC 85)2,933,913 24,843.00 2,958,756.00 Risk Fund (FC 87)52,939,489 19,705.00 212,897.00 53,172,091.00 Total of Budget Amendment Items 1,755,009,505 7,688,537.76 2,559,683.00 2,000,000.00 72,619,884.48 - 1,839,877,610.24 Budget Manager Analyst, City Council Contingent Appropriation 7 Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 1 Section A: New Items A-1: Risk Excess Liability and Cyber Insurance Costs Risk $212,897.00 GF $128,888.00 Water $18,118.00 Sewer $7,941.00 Storm Water $2,278.00 Airport $39,790.00 Refuse $4,109.00 Golf $2,257.00 Fleet $2,938.00 IMS $4,492.00 Department: Attorney - Risk Prepared By: Tamra Turpin For Questions Please Include: Tamra Turpin, Sandee Moore, Katherine Lewis, Aaron Bentley (1) The cost of excess liability insurance increased significantly for FY22 – more than a 65% increase in premium cost over the previous policy period. The bulk of this is driven by recent claim development. Last year’s premium was $267,278. The renewal premium cost is $443,112.54. We had projected a 15% increase and the actual cost is more than we could cover with our allocated budget. The City’s insurance brokers were able to arrange for us to pay the premium in two installments with the second half ($221,556.27) being due by 1/1/2022 to give us time to request a budget amendment. (2) The cost of cyber liability insurance also increased significantly for FY22 -- 320%. Last year’s premium was $45,490. The renewal premium cost is $190,887.60. Although we had projected an increase, the actual cost is far more than we could have anticipated. There are a number of reasons for this; particularly the fact that public agencies are becoming frequent targets, and the number and cost of claim payouts have increased exponentially. After conferring with the City's Chief Information Officer and City Attorney, it was agreed that allowing the City's cyber coverage to lapse would be too risky. The City’s insurance brokers were able to arrange a 45-day extension and then a 90-day premium payment deferral in order to get a budget amendment in place. The cost will be allocated to all funds as shown in the amendment. A-2: Department of Air Quality Lawnmower Exchange GF $250,000.00 Department: Sustainability Prepared By: Gregg Evans For Questions Please Include: Debbie Lyons, Sophia Nicholas, Gregg Evans The Utah Department of Air Quality (UDAQ) administers an annual gas-powered lawnmower and yard equipment exchange in order to reduce criteria pollutants in the areas of the Wasatch Front that are in non-attainment with the Clean Air Act air quality standards. Because the Wasatch Front is on track for attainment of wintertime PM2.5, UDAQ is not running a snowblower exchange this year. Instead, they are focusing on programs to reduce summertime ozone pollution, for which the Wasatch Front is out of attainment . UDAQ has $900,000 set aside to continue the exchanges for the foreseeable future. The size of the lawnmower exchange varies each year depending on the size of financial contributions from partners. Typically, UDAQ contributes between $300,000 and $400,000 per exchange. Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 2 The Sustainability Department is proposing a budget amendment of $250,000 General Funds to partner with UDAQ in FY22 on a gas-powered lawnmower exchange. This would facilitate exchanges for approximately 1,000 Salt Lake City residents Salt Lake City participated in 2021, spending nearly $161,000 which helped 582 residents participate. In total, 509 gas - powered mowers were exchanged (the remaining participants bought new mowers without exchanging an old one). This is the equivalent of removing 4.02 tons of pollution from the airshed each year. A majority of residents also opted to participate in our Call 2 Haul program to have their gas mower picked up curbside and recycled by Salt Lake City Waste and Recycling. The Administration proposes continuing this program in FY 22 (spring 2022). The goal will be to increase participation from 582 to 1,000 with a continued focus on our Westside neighborhoods. The Administration anticipates greater awareness and uptake of the program in the comin g year due to increased familiarity with the program, and plans to work with UDAQ on earlier, targeted outreach given the lessons learned from spring 2021. UDAQ anticipates the program logistics will change in FY 22 to facilitate easier participation and lower administrative burden. In particular, they are hoping to develop a phone app that participants will use to sign up and upload any required receipts. UDAQ is also envisioning the next program will offer a promotional discount code to be used towar d the purchase of electric lawn equipment and an app would also help separate Salt Lake City residents from other participating Wasatch Front residents. This will reduce confusion as to who is eligible for curbside pickup of their old mowers. We also hope the app will help us keep the exchange open for longer for Salt Lake City residents instead of opening, closing it, and opening i t again while UDAQ verifies addresses. While the exact amount of the discounts have yet to be determined, the Sustainability D epartment proposes using $250,000 in City General Funds to facilitate approximately 1,000 gas-powered mower exchanges. This budget amendment would also fund temporary staffing expenses to assist with running curbside collection of old mowers through Call 2 Haul. This benefit was very popular last year and helped make this program more equitable to those who might not have the ability to haul their own mower to a metal recycler. A-3: COVID Safe Building Improvements GF $844,000.00 IMS $131,000.00 Department: Public Services Prepared By: Dawn Valente For Questions Please Include: Lorna Vogt, Dawn Valente At the beginning of the year, and in anticipation of the reopening of the City and County Building, the Public Services Department identified a series of critical improvements to minimize the spread of diseases such as COVID -19. Following recommendations from hired consultants (see attached COVID annex) as well as health officials, changes include a multi - level approach to keeping building occupants safe, from controlled access through a check-in desk and appointment management software, to improved indoor air quality. The Department has been informed previously that the following list of items are likely eligible to be covered under ARPA: * Needlepoint Devices. When installed in the air handling system of a building, indoor air quality improves reducing airborne contaminants $250,000 (CCB) * Open and Public Meeting Rooms: Redesign public meeting rooms for spacing and cleaning considerations. This i ncludes replacing chairs for disinfecting purposes. $60,000 * Lobby Appointment management software to be installed at the entrance to the building, allowing for IDing and occupancy control. $5,000 * Entrance furniture. Desk and chairs to be installed at the entrance to the building, creating a check-in area $6,000 * Noticing Board outside of the City & County and Plaza 349 Buildings: Due to State noticing adjustments and the building access being limited, public notices are not addressing the community in the various accessible options (walking public, visitors to the building, etc.). Hybrid meetings and other noticing requirements are required to be completed and are currently being posted on the doors that are frequently accessed. $10,000 * Staffing Entrance. Customer service-oriented staff, under seasonal status, to welcome and direct visitors to the building. $17,000 Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 3 * Enhanced Janitorial. Adjusting the cleaning schedule of all areas of the building from 3 to 5 days a week. (9 months) $165,000 * Cubicle Pieces. To accommodate office reconfigurations. $100,000 * COVID Supplies/PPE. These supplies are being made available throughout buildings, including facemasks, hand sanitizer and disposable gloves. $100,000 * Teleconference and Recording Meeting Equipment. Required to accommodate virtual and hybrid public meetings, and training/orientation including those for Mayor's Board & Commissions, and City Council. $131,000 $844,000 TOTAL A-4: Pulled Prior to Submission A-5: Community Health Access Team Vehicles GF $150,000.00 Fleet $150,000.00 Department: Fire/Public Services Prepared By: John Vuyk For Questions Please Include: Karl Lieb, Chris Milne, Clint Rasmussen, Lorna Vogt, Nancy Bean, Dawn Valente Community Health Access Team, CHAT (formerly known as the Community Healthcare Paramedic Team) was initially established in 2013, comprised of one SLCFD paramedic. It quickly grew to include a SLCFD Captain and then another paramedic. The two Paramedics responded as a team to patients that were identified by fire EMS crews as: (1) not meeting the criteria for emergency service, or (2) not benefitting from the scope of training provided to fire department Paramedics and EMTs. The CHAT initiative proposes adding two (2) social workers to increase the team’s scope and the ability of the team to address the overall needs of their patients particularly pertaining to the challenges of mental health and homelessness. Currently, the Community Heath team operates with one vehicle. The addition of two social workers will create the need for two vehicles as two teams will be operating simultaneously. This budget amendment will allow the fire department to replace the current vehicle, a larger inefficient Chevy Tahoe with a fuel-efficient hybrid Ford Explorer. Additionally, a second vehicle of the same kind will be purchased for the additional team. The third purchased fuel -efficient hybrid Ford Explorer will replace an additional Chevy Tahoe in the Medical Division which will be used to support the CHAT initiative immediately and provide for the anticipated rapid expansion of the CHAT program. The three hybrid Ford Explorers will need to be outfitted with graphics, radios, tablets, etc. The $50,000 cost pe r vehicle is the fully loaded cost. Cost of Vehicle 42,500 127,500 Make ready 2,500 7,500 GPS 316 948 Fuel 2,950 8,850 Maintenance 1,734 5,202 TOTAL 50,000 150,000 A-6: Non-Represented Employees' Job Salary Survey GF $75,000.00 Department: Human Resources Prepared By: David Salazar For Questions Please Include: Debra Alexander, David Salazar, John Vuyk This request is intended for consultative services to be provided by a qualified third -party consultant or firm to conduct a compensation survey to assess, evaluate and compare the overall pay structure, including actual base pay and other job elements, of SLC’s non-represented employees to other public and private sector entities with whom the city competes for talent. The recommended survey project includes data collection, analysis, and the development and presentation of a report with recommendations for the City’s Department of Human Resources, Citizens Compensation Advisory Committee (CCAC), and elected officials to consider. The survey will be conducted with a primary focus on cash compensation and rely Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 4 on the same caliber and methodology as surveys previously completed for the City's public safety and AFSCME-covered employee groups (as completed by Mercer in early 2019 and 2020, respectively). A-7: Sugar House SAA GF $60,000.00 Department: Economic Development Prepared By: Ben Kolendar For Questions Please Include: Ben Kolendar The City received a request from the Sugar House Community Council regarding the creation of an economic promotion special assessment area (SAA) for the Sugar House for roughly west/east boundaries of 700 East to 1300 East and north/south of Hollywood Avenue (possibly extending north on 1100 East to Ramona Avenue to include supporters in that area) to I-80. The Department of Economic Development would run the Initial phases of the assessment and present considerations to Council prior to formal action. The funding request will provide consulting services for shape files, tax revenue estimates. The funding will also provide bond counsel for the language in the draft notice of Intent to designate. A-8: Sorenson Impact Center Social Investment GF $150,000.00 Department: Economic Development Prepared By: Ben Kolendar For Questions Please Include: Ben Kolendar The Administration would like to request $150,000 for the completion of Phase II of the Sorenson Social Impact investment project. A-9: Pulled Prior to Submission A-10: Community Health Access Team (CHAT) Personnel Transfer GF $0.00 Department: Fire Development Prepared By: Clint Rasmussen For Questions Please Include: Karl Lieb, Clint Rasmussen CHAT (formerly known as the Community Healthcare Paramedic Team) was initially established in 2013, comprised of one SLCFD paramedic. It quickly grew to include a SLCFD Captain and then another paramedic. The two Paramedics responded as a team to patients that were identified by fire EMS crews as: (1) not meeting the criteria for emergency service, or (2) not benefitting from the scope of training provided to fire department Paramedics and EMTs. The CHAT initiative proposes transferring two (2) social workers and one (1) case manager (LCSW) from the Police Department to increase the team’s scope and the ability of the team to address the overall needs of their patients particularly pertaining to the challenges of mental health and homelessness. This amendment would transfer three (3) PCNs from the Police Department to the Fire Department and adjust the staffing document. The funding for these positions remains in Non-Departmental. A-11: Rose Park Golf Course Water & Energy Efficiency Grant (Matching Funds) Golf $1,800,000.00 Department: Public Lands Prepared By: Bryce Lindeman Dawn Valente For Questions Please Include: Kristen Riker, Bryce Lindeman, Dawn Valente, Laura Briefer The Administration is recommending recognizing $1.8 million in Golf revenue as matching funds for a potential grant. The grant funds and cash match will be used for the installation of water conservation landscape irrigation measures for the Rose Park Golf Course. The existing simple grid irrigation system will be replaced with a head-to-head system with high efficiency nozzles that enable watering to match turf type. Turf removal will reduce square footage of high -water fairway grass types and increase square footage of out of bounds rough areas re -seeded with low water grass types. The project is a shared priority for the City's Department of Public Utilities and Department of Public Lands. Department of Public Utilities is the project lead for the grant application. Any additional match committed at the time of application Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 5 that is over and above $1.8 million requested in this budget amendment will be in the form of the cash value of the dedication of effort by existing full-time position(s) in the Department of Public Utilities and/or Department of Public Lands to the project. A-12: ARPA Funding -Public Safety and Homelessness Outreach - Salary Restoration - Public Lands Park Ranger program (see Item C-1, E-3 & E-4) GF $1,064,368.00 GF $443,676.00 Fleet $195,720.00 Department: Mayor’s Office & Public Lands Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, Kristen Riker, John Vuyk Over the past few years, Public Lands has experienced a dramatic increase of individuals experiencing homelessness using the parks for overnight camping. This vulnerable population also attracts an increase in people who prey upon them and impact other park users with drug use, drug sales, and other crime. Public Lands employees have found themselves in the middle of this extremely complex community crisis, without training or resources to work in this new environment. Public Lands relies on the SLCPD to enforce camping and anti-loitering ordinances, to assist in clearing areas so staff can complete their duties, and to respond to calls for public safety in parks. However, SLCPD has city-wide responsibilities and is not always available for non-urgent park safety needs. SLC Public Lands is proposing a Park Ranger program to maximize public safety, protect park resources, and to provide services and information to park visitors. Park rangers may serve as law enforcement officers, environmental experts, interpreter of cultural and historical points of interest or a combination of the three. This proposal is intended to meet the following program success indicators:  Making people feel welcome and safe in our parks  Deterring inappropriate activity  Gaining voluntary compliance of park codes and rules  Reducing the number of annual vandalism incidents  Reducing annual costs to repair/replace damaged landscape & infrastructure The Mayor is proposing to allocate $5.1 million toward a Public Lands Park Ranger program. Funding for the program will be partially supported through the use of eligible salary restoration dollars. The program will help ensure park safety, including homeless outreach in the parks. The Program will include the addition of nineteen employees in the Public Lands Department. The positions are two Park Ranger Sergeants, sixteen Park Ranger Officers and one support person. The projected annual cost for personnel including uniforms, training and operational costs is $2,350,983. The amendment proposes to add these positions on January 1 at a cost of $1,175,491 for the current fiscal year. The proposed funding will also support one-time costs to implement the program of $401,800, including the purchase of three trucks and two light response vehicles. Funding for personnel and ongoing costs will be transferred to the General Fund while funding for the vehicles will be transferred to Fleet. This funding will be established through a capture of funding for salary restoration from the current fiscal year. A-13: ARPA Funding – Housing & Homelessness - Salary Restoration – CCP Rapid Intervention Team – (See Item C-2 & E-5) GF $164,750.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson and John Vuyk Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 6 In September 2020, Mayor Mendenhall launched the Community Commitment Program through the Homeless Engagement and Response Team. The CCP prioritizes outreach to indi viduals experiencing homelessness while also emphasizing the need to keep public spaces safe, clean, and accessible to all. The first phase of the CCP was a 12 -week enhanced neighborhood cleaning program based on neighborhood hot spots reported in CitySour ced via the SLC Mobile app. The second phase, which has transitioned into an ongoing partnership with Salt Lake County and over a dozen service providers, focused on intensive encampment outreach of varying lengths of time depending on the size and other characteristics of camps. After approximately 9 months of this second phase, the City and our partners have been in a maintenance stage, during which the City has fewer large encampments but is still attempting to handle the nearly 6,000 CitySourced reports over this past year. This figure is triple the number of complaints reported in the app in years past. To more effectively and rapidly address these complaints from residents and businesses, the Mayor is proposing the creation of a Rapid Intervention Team coordinated through HEART. The HEART coordinator (via a position that was funded by the Council in the FY23 budget) will ensure that complaints are responded to with the appropriate level of outreach through the SLCPD’s CCC or VOA, SLCPD officers to standby if necessary, as well as a City cleaning team working with Advantage Services. By having a dedicated team to respond, Public Services and Waste & Recycling employees will not be pulled away from their regular duties, as they are currently when the Cou nty Health Department requires camp abatement support. The Public Services and Waste and Recycling employees will also be available to respond to illegal dumping complaints throughout the City. The program will add three FTE’s for the Rapid Intervention Team. These employees will be covered in part the first year. This funding will be established through a capture of funding for salary restoration from the current fiscal year. Section B: Grants for Existing Staff Resources Section C: Grants for New Staff Resources C-1: ARPA Funding – Public Safety and Homeless Outreach – Public Lands Park Ranger program (See Item A-12, E-3 & E-4) Misc Grants $1,064,368.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk Over the past few years, Public Lands has experienced a dramatic increase of individuals experiencing homelessness using the parks for overnight camping. This vulnerable population also attracts an increas e in people who prey upon them and impact other park users with drug use, drug sales, and other crime. Public Lands employees have found themselves in the middle of this extremely complex community crisis, without training or resources to work in this new environment. Public Lands relies on the SLCPD to enforce camping and anti-loitering ordinances, to assist in clearing areas so staff can complete their duties, and to respond to calls for public safety in parks. However, SLCPD has city -wide responsibilities and is not always available for non-urgent park safety needs. SLC Public Lands is proposing a Park Ranger program to maximize public safety, protect park resources, and to provide services and information to park visitors. Park rangers may serve as law enforcement officers, environmental experts, interpreter of cultural and historical points of interest or a combination of the three. This proposal is intended to meet th e following program success indicators:  Making people feel welcome and safe in our parks  Deterring inappropriate activity  Gaining voluntary compliance of park codes and rules  Reducing the number of annual vandalism incidents  Reducing annual costs to repair/replace damaged landscape & infrastructure • Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 7 The Mayor is proposing to allocate $5.1 million toward a Public Lands Park Ranger program. Funding for the program will be partially supported through the use of eligible salary restoration dollars. The program will help ensure park safety, including homeless outreach in the parks. The Program will include the addition of nineteen employees in the Public Lands Department. The positions are two Park Ranger Sergeants, sixteen Park Ranger Officers and one support person. The projected annual cost for personnel including uniforms, training and operational costs is $2,350,983. The amen dment proposes to add these positions on January 1 at a cost of $1,175,491 for the current fiscal year. The proposed funding will also support one-time costs to implement the program of $401,800, including the purchase of three trucks and one light response vehicle. Funding for personnel and ongoing costs will be transferred to the General Fund while funding for the vehicles will be transferred to Fleet. This funding will be established through a capture of funding for salary restoration from the current and future fiscal years. C-2: ARPA Funding – Housing & Homelessness– CCP Rapid Intervention Team (See Item A-13 & E-5) Misc Grants $164,750.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk In September 2020, Mayor Mendenhall launched the Community Commitment Program through the Homeless Engagement and Response Team. The CCP prioritizes outreach to individuals experiencing homelessness while also emphasizing the need to keep public spaces saf e, clean, and accessible to all. The first phase of the CCP was a 12-week enhanced neighborhood cleaning program based on neighborhood hot spots reported in CitySourced via the SLC Mobile app. The second phase, which has transitioned into an ongoing partne rship with Salt Lake County and over a dozen service providers, focused on intensive encampment outreach of varying lengths of time depending on the size and other characteristics of camps. After approximately 9 months of this second phase, the City and ou r partners have been in a maintenance stage, during which the City has fewer large encampments but is still attempting to handle the nearly 6,000 CitySourced reports over this past year. This figure is triple the number of complaints reported in the app in years past. To more effectively and rapidly address these complaints from residents and businesses, the Mayor is proposing the creation of a Rapid Intervention Team coordinated through HEART. The HEART coordinator (via a position that was funded by the Council in the FY23 budget) will ensure that complaints are responded to with the appropriate level of outreach through the SLCPD’s CCC or VOA, SLCPD officers to standby if necessary, as well as a City cleaning team working with Advantage Services. By having a dedicated team to respond, Public Services and Waste & Recycling employees will not be pulled away from their regular duties, as they are currently when the County Health Department requires camp abatement support. The Public Services and Waste and Recycling employees will also be available to respond to illegal dumping complaints throughout the City. The program will add three FTE’s for the Rapid Intervention Team. These employees will be covered in part the first year. Section D: Housekeeping D-1: Economic Development Loan Fund Move Housing -$100,000.00 Housing $100,000.00 GF $100,000.00 Department: Economic Development Prepared By: Jolynn Walz / Randy Hillier For Questions Please Include: Ben Kolendar, Loreno Riffo Jensen, Jolynn Walz, Randy Hillier Under Budget Amendment #7 of FY 2021, $100,000 was appropriated to the Economic Development Loan Fund (EDLF) within the Housing Fund (FC78) to provide funding for outdoor dining activities and events in the form of forgivable lo ans. The purpose of these loans is to assist restaurants and bars recover from the financial effects of the pandemic by offering funding to expand outdoor dining. Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 8 After further examination of the EDLF guidelines, DED was unable to provide forgivable loans . DED has determined that a traditional grant program is the best way to distribute these funds to businesses and is proposing the $100,000 be moved to a separate account, allowing DED to administer the grant program. D-2: Increase Grant Fund Misc Grants $0.00 Department: Finance Prepared By: John Vuyk For Questions Please Include: Mary Beth Thompson, John Vuyk The annual budget proposed funding from the American Recovery Plan Act (ARPA) for revenue replacement. During budget adoption, the expense was adjusted based on updated grant guidelines. This increased the expense side of the grant fund, but recognition of the revenue was not included. This request adjusts the revenue side to recognize the revenue side of the transaction in the Grant Fund. This proposal will bring the Fund into balance in accordance with Generally Accepted Accounting Principles. D-3: Premium Holiday – Other Funds Refuse $0.00 Golf $0.00 Fleet $0.00 IMS $0.00 Department: Finance Prepared By: John Vuyk For Questions Please Include: Mary Beth Thompson, John Vuyk The Premium Holiday was submitted with the budget with the transfer from the Insurance Fund, but the transfer into other funds was not included. This amendment is to balance the inter-fund transfers. D-4: GPS Housekeeping GF -$74,600.00 GF $74,600.00 Fleet $74,600.00 Department: Public Services Prepared By: Dawn Valente For Questions Please Include: Mary Beth Thompson, John Vuyk, Dawn Valente For FY22 there is an accounting change to put the GPS fees for vehicles in the Fleet budget. We missed the piece to move the current budgets over to Fleet. Public Services has a budget of $39,203; Public Lands has a budget of $26,797; and CAN has a budget $8,600 that we need to move to Fleet. D-5: Signage FTE Correction GF $51,847.00 Department: Public Services Prepared By: Dawn Valente For Questions Please Include: Lorna Vogt, Dawn Valente, John Vuyk In the Mayor's Recommended Budget, an FTE for Signage for the Planning & Ecological Services Division was initially approved, but later reduced . However, the funding was again inadvertently reduced at the Council level, thus doubling the reduction. This housekeeping request is to replace the funding that was inadvertently cut from the Signage budget. Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 9 D-6: General Obligation Series 2021A Bonds CIP $23,400,000.00 Debt Service $200,000.00 Department: Finance Prepared By: Brandon Bagley / Marina Scott For Questions Please Include: Brandon Bagley, Marina Scott, Mary Beth Thompson, John Vuyk In November 2018, voters authorized the issuance of up to $87 million in general obligation bonds to fund street construction. The General Obligation Bonds, Series 2021A will be issued in November 2021 as the third issuance of the authorization. This amendment creates the revenue budget for the receipt of bond proceeds and the expenditure budget to pay for construction of the street projects associated with the bonds. It also creates expenditure budget to pay the costs of issuance for the bonds. Bond proceeds will be allocated to five project cost centers in Fund 83 and one cost center in Fund 81 for the costs of issuance associated with the bond. Two cost centers will receive $6,000,000 each for the 200 South Phase 1 & 2 (400 W to 900 E) projects. A third cost center will receive $6,800,000 for the 1100 East (900 S to Warnock Ave) project. The fourth cost center will receive $1,600,000 for the 300 North (300 W to 1000 W) project. The fifth cost ce nter will receive $3,000,000 for local streets. The proceeds to pay the costs of issuance associated with the bonds will be deposited to the debt service cost center in Fund 81. D-7: Sales Tax Refunding Revenue Bonds, Series 2021A Debt Service $10,665,000.00 Debt Service $10,400,000.00 Debt Service $4,900,000.00 Department: Finance Prepared By: Brandon Bagley / Marina Scott For Questions Please Include: Brandon Bagley, Marina Scott, Mary Beth Thompson, John Vuyk Sales and Excise Tax Revenue Bonds, Series 2012A, were issued in June 2012 for the purpose of replacing the North Temple Viaduct and improving North Temple Boulevard. Sales and Excise Tax Revenue Bonds, Series 2013B, were issued in November 2013 for the purpose of financing a portion of the costs of the Sugarhouse Streetcar and paying for the portion of various improvements to create a "greenway" within the corridor. The Series 2012A and 2013B bonds are being refunded with the Sales Tax Refunding Revenu e Bonds, Series 2021A. This budget amendment will create the revenue budget for the receipt of bond proceeds and the expenditure budget to pay off the old bonds and to pay the costs of issuance for the bonds. Two Local Building Authority bonds will also b e refunded by the Series 2021A bonds. This budget amendment creates the budget for the transfer to the LBA to pay those off. A separate budget amendment for the LBA is being submitted to create budget for the payoff of those bonds. D-8: Budget Carry Forward GF $1,175,000.00 Department: Finance Prepared By: John Vuyk For Questions Please Include: Mary Beth Thompson, John Vuyk, Teresa Beckstrand In the General Fund there were a number of budgets that did not have encumbrances at the close of fiscal year 2021 the Administration would request Council approval to roll budget for the projects into fiscal year 2022. The budgets requested are listed below: CC CC Name OC OC Description Amount 0900503 Demographer Contract 2329 Other Professional & Tech Serv $50,000.00 0900925 Financial Risk Assessment 2329 Other Professional & Tech Serv $100,000.00 0900930 Gentrification Mitigation Study 2329 Other Professional & Tech Serv $100,000.00 0900705 Washington DC Contract 2324 Special Consultant $75,000.00 0900513 NW Northpoint Plan Airport 2329 Other Professional & Tech Serv $50,000.00 0900508 Home to Transit Program 2590 Other Expenses $800,000.00 TOTAL $1,175,000.00 Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 10 Section E: Grants Requiring No New Staff Resources E-1: ARPA Funding – Water and Sewer Infrastructure Projects Misc Grants $2,000,000.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Laura Briefer, Mary Beth Thompson, John Vuyk The Mayor proposes to set aside $2 million for required matching funding as we prepare to apply for State funds for water and sewer infrastructure projects. E-2: ARPA Funding – Housing & Homelessness –Winter Shelter Support Misc Grants $1,000,000.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk Mayor Mendenhall is proposing that the Council set aside approximately $1 million of the City’s Rescue Plan allocation for emergency shelter needs. Such funds could be used to assist the shelter operator with operations costs or go toward other expenses such as public safety or neighborhood mitigation. E-3: ARPA Funding – Public Safety and Homeless Outreach – Salary Restoration - Public Lands Park Ranger program (See Item A-12, C-1 & E-4) Misc Grants $443,677.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk Over the past few years, Public Lands has experienced a dramatic increase of individuals experiencing homelessness using the parks for overnight camping. This vulnerable population also attracts an increase in people who prey upon them and impact other park users with drug use, drug sales, and other crime. Public Lands employees have found themselves in the middle of this extremely complex community crisis, without training or resources to work in this new environment. Public Lands relies on the SLCPD to enforce camping and anti-loitering ordinances, to assist in clearing areas so staff can complete their duties, and to respond to calls for public safety in parks. However, SLCPD has city -wide responsibilities and is not always available for non-urgent park safety needs. SLC Public Lands is proposing a Park Ranger program to maximize public safety, protect park resources, and to provide services and information to park visitors. Park rangers may serve as law enforcement officers, environmental experts, interpreter of cultural and historical points of interest or a combination of the three. This proposal is intended to meet t he following program success indicators:  Making people feel welcome and safe in our parks  Deterring inappropriate activity  Gaining voluntary compliance of park codes and rules  Reducing the number of annual vandalism incidents  Reducing annual costs to repair/replace damaged landscape & infrastructure The Mayor is proposing to allocate $5.1 million toward a Public Lands Park Ranger program. Funding for the program will be partially supported through the use of eligible salary restoration dollars. The program will help ensure park safety, including homeless outreach in the parks. The Program will include the addition of nineteen employees in the Public Lands Department. The positions are two Park Ranger Sergeants, sixteen Park Ranger Officers and one support person. The projected annual cost for personnel including Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 11 uniforms, training and operational costs is $2,350,983. The amendment proposes to add these positions on January 1 at a cost of $1,175,491 for the current fiscal year. The proposed funding will also support one-time costs to implement the program of $401,800, including the purchase of three trucks and one light response vehicle. Funding for personnel and ongoing costs will be transferred to the General Fund while funding for the vehicles will be transferred to Fleet. This funding will be established through a capture of funding for salary restoration from the curren t fiscal year. E-4: ARPA Funding – Public Safety and Homeless Outreach – Public Lands Park Rangers (See Item A12, C-1 & E3) Misc Grants $69,244.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk Over the past few years, Public Lands has experienced a dramatic increase of individuals experiencing homelessness using the parks for overnight camping. This vulnerable population also attracts an increase in people who prey upon them and impact other park users with drug use, drug sales, and other crime. Public Lands employees have found themselves in the middle of this extremely complex community crisis, without training or resources to work in this new environment. Public Lands relies on the SLCPD to enforce camping and anti-loitering ordinances, to assist in clearing areas so staff can complete their duties, and to respond to calls for public safety in parks. However, SLCPD has city -wide responsibilities and is not always available for non-urgent park safety needs. SLC Public Lands is proposing a Park Ranger program to maximize public safety, protect park resources, and to provide services and information to park visitors. Park rangers may serve as law enforcement officers, environmental experts, interpreter of cultural and historical points of interest or a combination of the three. This proposal is intended to meet t he following program success indicators:  Making people feel welcome and safe in our parks  Deterring inappropriate activity  Gaining voluntary compliance of park codes and rules  Reducing the number of annual vandalism incidents  Reducing annual costs to repair/replace damaged landscape & infrastructure The Mayor is proposing to allocate $5.1 million toward a Public Lands Park Ranger program. Funding for the program will be partially supported through the use of eligible salary restoration dollars. The program will help ensure park safety, including homeless outreach in the parks. The Program will include the addition of nineteen empl oyees in the Public Lands Department. The positions are two Park Ranger Sergeants, sixteen Park Ranger Officers and one support person. The projected annual cost for personnel including uniforms, training and operational costs is $2,350,983. The amendment proposes to add these positions on January 1 at a cost of $1,175,491 for the current fiscal year. The proposed funding will also support one-time costs to implement the program of $401,800, including the purchase of three trucks and one light response vehicle. Funding for personnel and ongoing costs will be transferred to the General Fund while funding for the vehicles will be transferred to Fleet. This funding will be a direct charge to the ARPA grant.. E-5: ARPA Funding – Housing & Homelessness – CCP Rapid Intervention Team (See Item A-13 & C-2) Misc Grants $160,500.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 12 In September 2020, Mayor Mendenhall launched the Community Commitment Program through the Homeless Engagement and Response Team. The CCP prioritizes outreach to individuals experiencing homelessness while also emphasizing the need to keep public spaces saf e, clean, and accessible to all. The first phase of the CCP was a 12-week enhanced neighborhood cleaning program based on neighborhood hot spots reported in CitySourced via the SLC Mobile app. The second phase, which has transitioned into an ongoing partne rship with Salt Lake County and over a dozen service providers, focused on intensive encampment outreach of varying lengths of time depending on the size and other characteristics of camps. After approximately 9 months of this second phase, the City and ou r partners have been in a maintenance stage, during which the City has fewer large encampments but is still attempting to handle the nearly 6,000 CitySourced reports over this past year. This figure is triple the number of complaints reported in the app in years past. To more effectively and rapidly address these complaints from residents and businesses, the Mayor is proposing the creation of a Rapid Intervention Team coordinated through HEART. The HEART coordinator (via a position that was funded by the Council in the FY23 budget) will ensure that complaints are responded to with the appropriate level of outreach through the SLCPD’s CCC or VOA, SLCPD officers to standby if necessary, as well as a City cleaning team working with Advantage Services. By having a dedicated team to respond, Public Services and Waste & Recycling employees will not be pulled away from their regular duties, as they are currently when the County Health Department requires camp abatement support. The Public Services and Waste and Recycling employees will also be available to respond to illegal dumping complaints throughout the City. The program will add three FTE’s for the Rapid Intervention Team. These employees will be covered in part the first year. This funding will be established through a capture of funding for salary restoration from the current fiscal year. E-6: ARPA Funding – Housing & Homelessness – CCP Rapid Intervention Team (Police Support) Misc Grants $1,505,920.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk The Administration is requesting $1,505,920 of funding, to provide funding for Clean Neighborhoods Teams for the Police Department to provide staffing to support the homeless encampment cleanup and camp re -establishment stabilization as requested by the Salt Lake County Health Department. Police of ficers working extra overtime shifts will provide security to ensure the cleanups can proceed in an environment that will be safe for all involved. Staffing numbers will vary depending on the size, number of cleanups and the location. Activity # days Officers # hours Rate Amount Requested Major Cleanups 14 40 10 $65 $364,000 Minor Cleanups* 122 24 6 $65 $1,141,920 And area stabilization Total Requested $1,505,920 *previously utilized on-duty resources that are no longer available E-7: Pulled Prior to Submission to allow for the completion of phase 2 of the Social Impact Investment In Budget Amendment 4, Mayor Mendenhall proposes to allocate $150,000 in General Fund money to complete Phase 2 of this study (Item A-9). Mayor Mendenhall further proposes that the City Council hold approximately $10 million of the City’s Rescue Plan appropriation until the completion of Phase 2, when the City and Sorenson Impact Center have fully completed a recommendation on the financial structure of the investment, including but not limited to the contributions of private investors and the long-term financial viability of these programs. Because Rescue Plan funds need not be spent until the end of 2024, Mayor respectfully requests that the Council leave a portion of the City’s funds un -allocated until the completion of Phase 2, which is anticipated to t ake 6-9 months, at which point the Administration and Council can make an informed decision on seed funding for this initiative. During this time, the Administration will also be working with Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 13 potential investment partners with the ultimate goal of funding a $100 million social impact project on the two interventions Sorenson has identified as the most impactful to the long -term economic health of City residents. E-8: ARPA Funding – CCP HEART Rapid Intervention Team Misc Grants $57,000.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Mary Beth Thompson, John Vuyk, Michelle Hoon To more effectively and rapidly address these complaints from residents and businesses, the Mayor is proposing the creation of a Rapid Intervention Team coordinated through HEART. The HEART coordinator (via a position that was funded by the Council in the FY23 budget) will ensure that complaints are responded to with the appropriate level of outreach through the SLCPD’s CCC or VOA, SLCPD officers to standby if necessary, as well as a City cleaning team working with Advantage Services. By having a dedicated team to respond, Public Services and Waste & Recycling employees will not be pulled away from their regular duties, as they are currently when the County Health Department requires camp abatement support. The Public Services and Waste and Recycling employees will also be available to respond to illegal dumping complaints throughout the City. Work will be coordinated with Advantage Services. The program will be monitored for the first six months to evaluate the effectiveness of the service. E-9: ARPA Funding – Westside Community Initiative Misc Grants $4,000,000.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Ben Kolendar, Danny Walz, Mary Beth Thompson, John Vuyk As a function of utilizing the tax differential collected by the Inland Port Authority and allocated to the RDA for affordabl e housing, the RDA Board has endorsed the creation of an Urban Land Fund in order to develop and secure perpetual housing affordability on the City’s west side. Under the direction of the RDA, the fund would look to maximize opportunities for affordability in both rental housing and home ownership as well as limited commercial uses within mixed use developments. RDA staff is currently working on potential options for the structure of the land fund. This process includes the evaluation of opportunities for community wealth building and cooperative housing models within a perpetual housing fund. The allocation of this funding source is intended to offset the impacts on the west side from the Inland Port development. The opportunity of this program is to strengthen the commun ity by providing a mechanism to help reverse the historical impacts of disinvestment and inequality on the residents in this area of the City. Mayor Mendenhall proposes the allocation of $4 million in seed funds for implementing the policy proposals that emerge from the current study, including the following goals:  Develop Land with a Long-Term Approach to Continuously Serve a Community-Defined Purpose WCI will take a long-term approach to land development and community building so that the RDA may retain the fee ownership to and a reversionary interest in the property. By ground leasing to development partners, the RDA will provide an opportunity to receive revenue generation to serve other public benefits.  Create Opportunities for Revenue Generation while Balancing the Implementation of Public Benefits WCI will strive to balance the development of property with the incorporation of public benefits. Benefits such as affordable housing and below-market commercial space which generate limited or no cash flow would potentially be subsidized with land uses that generate positive cash flow. Revenue generated by projects and received by the RDA will then be reinvested back into the WCI with the goal of furthering shared prosperity.  Assist the Westside in Mitigating Gentrification and Displacement WCI will acquire land with the goal of holding it for the community in perpetuity, thereby removing land from the speculative market so that it serves low and moderate-income residents in perpetuity. Housing will remain affordable even as neighborhood change occurs and gentrification pressures mount, which protects families from displacement. Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 14  Give Lower Income Households the Opportunity to Build Wealth Through Ownership WCI will create opportunities for families to buy homes at affordable prices by focusing on a shared-equity model. A shared equity model offers an alternative form of ownership that provides benefits traditional markets cannot, such as long-term housing affordability and the ability for low and moderate -income families to build equity. When families decide to sell, they will receive their portion of the appreciation but the RDA remains as the land owner and is in the position to continue to sell the home at a below-market price, making it affordable to another family of limited means. Keeping the home affordable, from family to family, will benefit future generations by acting as a steppingstone for low-income families to go from renting to building wealth.  Engage Community Members in Development Decisions The RDA will involve the community in the planning and goals regarding long term land use and housing development. This can translate into residents actively involved in creating positive change within their communities and projects that reflect the value of its residents. The result will be projects that incorporate a shared mission and vision with the community.  Leverage Resources for Other Neighborhood Development Purposes Revenues acquired through ground leases or partnerships could contribute to othe r purposes, including subsidizing deeply affordable housing, below-market commercial space, infrastructure, public art, etc.  Collaborate with Other Partners to Broaden the Pool of Funding and Expertise The RDA would actively work to acquire outside funding sources and professional resources by bringing together financial institutions, the private sector, nonprofits, public officials, other government agencies, researchers, and practitioners to collaborate on community and economic development activities.  Carry Out Efforts with a “Collective Impact” Approach The RDA will continuously evaluate how projects work together to address common goals through a “collective impact” approach that produces measurable results. These measurable results will be tracked and reported on to promote data-driven and outcome-based decisions. E-10: ARPA Funding – Community Grants Misc Grants $4,000,000.00 Department: Mayor’s Office Prepared By: John Vuyk For Questions Please Include: Rachel Otto, Lisa Shaffer, Ben Kolendar, Blake Thomas, Mary Beth Thompson, John Vuyk Community grants Mayor Mendenhall proposes an allocation of $ 4 million toward community grants. These grants will give community organizations and local businesses the opportunity to propose to the City what COVID -related problems they are trying to solve City staff and volunteers from relevant City boards and commissions would select grantees at the conclusion of an open solicitation process. The Administration proposes to split these grant funds into two categories, with half of the allocation going to Economic Development and half to Community and Neighborhoods. These departments will scope the challenge facing residents and businesses, and launch two solicitations seeking proposals on the COVID -related problem that the applicant desires to address under the following broad categories: o CAN grants -- Nonprofit support (to be further refined by CAN): This could include programs like retraining of displaced workers, nonprofit legal services for eviction assistance, expanded educational opportunities, resources to mitigate the digital divide, access to healthcare for underserved populations, mental health assistance, etc. o DED grants -- Business assistance (to be further refined by DED): This could include grants for businesses not included in other government programs during the pandemic, especially small and local businesses, and support for artist/artisan businesses. Section F: Donations Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 15 Section G: Consent Agenda Consent Agenda #2 G-1: Police Department Asset Forfeiture Grant Misc. Grants $1,500.00 Department: Police Department Prepared By: Jordan Smith / Melyn Osmond For Questions Please Include: Melyn Osmond, Jordan Smith, Shellie Dietrich The Salt Lake City Police Department applied for and received a $1,500 grant award from the State of Utah, Commission on Criminal and Juvenile Justice (CCJJ), under the State Asset For feiture Grant (SAFG) program. The SAFG program funds crime prevention and law enforcement activities within specific guidelines. CCJJ developed the SAFG program as a means of evaluating and distributing state forfeiture funds. The funds will be used for confidential informant funds to enhance investigations in narcotics-related cases. A public hearing was held 9/7/21 for this grant application. G-2: Utah Department of Health - Bureau of Emergency Medical Services (EMS)grant, FY22 Per Capita Allocation Misc. Grants $10,250.00 Department: Emergency Management Prepared By: Brittany Blair/ Melyn Osmond For Questions Please Include: Melyn Osmond, Clint Rasmussen, Brittany Blair The Fire Department applied for and was awarded $10,250 of grant funding from the Utah Department of Health, Bureau of Emergency Medical Services. This funding will be used towards the purchase of a 12 -Lead Cardiac Monitor and medical supplies relating to the provision of Emergency Medical Services as funding permits. A Public Hearing was held on 2/16/21 for the grant applications on this award. G-3: State of Utah, CCJJ (Commission on Criminal and Juvenile Justice), Jurisdictions with Halfway Houses and Parole Violator Centers Grant, Law Enforcement Services Account (LESA) Misc. Grants $295,571.00 Department: Police Department Prepared By: Jordan Smith / Melyn Osmond For Questions Please Include: Melyn Osmond, Clint Rasmussen, Brittany Blair The Police Department has applied for and been awarded a $295,570 grant from the State of Utah, Commission on Criminal and Juvenile Justice, in support of the Jurisdictions with Halfway Houses and Parole Violator Centers grant. This grant provides funding for law enforcement agencies that provide services directly to areas with halfwa y houses or parole violator centers, or both. The Police Department will use these funds for law enforcement overtime related to reducing criminal activity including targeted enforcement operations, increased patrol response, and responding to mental health calls for service. The Department will also utilize funds for case transcription services, six overt camera units and maintenance/repairs/supplies for units in the Department's camera program. A public hearing was held 9/7/21 for this grant application. G-4: Utah State Office for Victims of Crime, 2021-2023 VOCA Victims of Crime Act Grant Misc. Grants $364,162.48 Department: Police Department Prepared By: Wendy Isom/ Melyn Osmond For Questions Please Include: Melyn Osmond, Wendy Isom, Jordan Smith, Shellie Dietrich Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 16 The Police Department applied for and received a $364,162.48 grant from the State of Utah, Office for Victims of Crime under the Victims of Crime Act (VOCA) program, to be used for the continuation of the Victim Advocate Program. These funds will be used to pay for salary and fringe for 4 existing full-time Victim Advocate positions and all of the part-time Victim Advocate positions. This grant also covers the costs for Rita, the program's facility dog. Additionally, there are supplies for the program, emergency funds for assisting victims, and training for Advocate staff. No match is required by the funding agency. VOCA funds cover local and national conferences and trainings needed to meet statutory training requirements for the Victim Advocates. It also provides and emergency fund that can be used when no other victim funding options are available - these funds can be used for food, clothing, shelter, transportation and 911 phones for victims of violent crime. Additionally, it provides for supplies such as Victim Advocate brochures, Traumatic Death Handbooks, cell phone costs, etc. A $109,938.89 match is required which will be satisfied by the salary and benefits of City funded Victim Advocates and the Program Coordinator. In-kind matching funds are provided by the student interns/volunteers that participate in the Victim Advocate Program. A Public Hearing was held 9/7/21 on this grant application. G-5: Department of Workforce Services, Housing & Community Development Division, FY22 Homeless Shelter Cities Mitigation Grant Program Misc. Grants $370,735.00 Department: Community and Neighborhoods Prepared By: Michelle Hoon / Melyn Osmond For Questions Please Include: Melyn Osmond, Michelle Hoon, Brent Beck The Community and Neighborhoods Dept. applied for and received State Department of Workforce Services funding of $370,735 to continue efforts to encourage businesses, residents, Homeless Resource Center (HRC) operators and guests to participate in constructive community engagement opportunities and encourage service-based interventions in order to successfully integrate the HRCs into the fabric of their host neighborhoods and ensure the safety of those neighborhoods. The SLC Mitigation team currently consists of a SLC Community Engagement Coordinator, VOA Business and Community Liaison, and VOA Outreach Case Manager. This application requests to continue the current team and expand the team to include an additional VOA Business and Community Liaison, additional VOA Outreach Case Manager, and a VOA Outreach Peer Support Specialist, and three new positions as part of the City's existing Downtown Ambassador program - tailored to the areas surrounding the HRCs (King, Miller, and Youth). A Public Hearing will be scheduled for the application on this grant. G-6: Utah State Department of Public Safety - 2021 Emergency Management Performance Grant (EMPG) Misc. Grants $42,500.00 Department: Emergency Management Services Prepared By: Audrey Pierce / Melyn Osmond For Questions Please Include: Melyn Osmond, Audrey Pierce, Clint Rasmussen The Emergency Management Services Division received a $42,500 FY2021 EMPG grant from the State of Utah, Department of Public Safety. This grant is awarded on an annual basis to ju risdictions to help offset costs of planning and updating emergency preparedness plans, conduct emergency preparedness exercises and produce materials and other media for public educational outreach and training pertaining to emergency preparedness. SLC's population increases from 180,000 to an estimated 310,000 each workday. Should a disaster occur during the workday, employees become a part of the SLC emergency response, but are not trained to assist themselves or others. These funds will offset costs in providing National Incident Management System (NIMS) training to SLC staff with Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 17 emergency response responsibilities during a disaster or other significant event. The funds will be used to fund community preparedness activities, purchase training materials, supplies and equipment including books, brochures, handouts, etc. The grant requires a 50% match which will be satisfied with the Community Preparedness Coordinator's time and budgeted for within Emergency Managements general fund. A public hearing will be held for this grant application. G-7: Cities of Service, Johns Hopkins, Justice for the Jordan Grant, Love Your Block Misc. Grants $100,000.00 Department: Office of the Mayor Prepared By: Hailey Leek / Melyn Osmond For Questions Please Include: Melyn Osmond, Hailey Leek The office of the Mayor applied for and received $100,000 in grant funding for the Justice for the Jordan, Love your Block grant. The grant provides: 1. $60,000 to hire a Love your Block Fellow for 2 years. 2. $40,000 to distribute to the community as mini grants 3. The City is also required to engage 2 AmeriCorps VISTA volunteers, one each year of the grant. 4. The City also receives technical assistance from Cities of Service The Cities of Service Love Your Block program connects mayor’s offices with community residents to revitalize their neighborhoods one block at a time. Typically, cities implementing Love Your Block invite community groups to identify priority projects and award mini-grants to support volunteer-fueled solutions that the community can implement. The City identifies a problem and then engages with volunteers within the neighborhoods of focus and engages them early in the project design phase as well as implementation and evaluation. The City identified the neighborhoods adjacent to the Jordan River in Glendale (census tract 1026, 1027.01, & 1028.01) as the target area. A public hearing will be held for this grant application. G-8: Utah State Office for Victims of Crime, Violence Against Women Act, Domestic Violence Victim Advocate Misc. Grants $101,039.00 Department: Attorney’s Office Prepared By: Scott Fisher / Melyn Osmond For Questions Please Include: Melyn Osmond, Katherine Lewis, Scott Fisher The City Prosecutors office applied for and received a $101,039 grant from the State of Utah, Office for Victims of Crime under the Victims of Crime Act (VOCA) program, to be used for the Violence Against Women’s Act to fund Salt Lake City Prosecutor Domestic Violence Victim Advocate. The Prosecutor’s Office is requesting a Victim Advocate to assist and support victims of domestic violence as their cases move to the prosecution and adjudication phases. The services include information, education and advocacy through the case and prosecution, assistance with victim impact statements, support and accompaniment to court and meetings with investigators and prosecutors. The Victim Advocate assist in post release safety planning, preparation for court appearances, and jail release agreements. Until this year, Salt Lake County District Attorney Victim Services has provided this support for victims whose cases are adjudicate in Salt Lake City Justice Court. Funding cutbacks required the county to reassign the advocates to County prosecutions. Salt Lake City is applying for this new city position to fill the gap in services. The match is $12,630 each fiscal year, for a total of $25,260 for the two-year performance period of the grant. The match is met with cash available in the Office of the Attorney’s budget. A Public Hearing was held 6/15/21 on this grant application Salt Lake City FY 2021-22 Budget Amendment #4 Initiative Number/Name Fund Amount 18 Section I: Council Added Items FY2021 FY2022 FY2023 FY2024 TOTAL Taking Care of the City: Revenue Loss (Based on Calendar Year Calculations)11,432,646$ 34,372,399$ -$ 45,805,045$ 1 Salary: Bonus 1,193,000$ 1,193,000$ Salary: Police Retention and Recruitment 7,798,233$ 7,798,233$ Council Adopted ARP Allocation - Special Projects Assistant for Community Commitment Program (CAN)93,829$ 93,829$ - Youth & Family Community and Program Manager (from BA#2) (CAN)90,633$ 90,633$ - Youth & Family COVID Programming Continuation (CAN)711,350$ 711,350$ - Economic Development Strategic Plan (Economic Development)50,000$ 50,000$ - Economic Development Staff (Economic Development)290,000$ 290,000$ - Grant Administrator (Finance)101,020$ 101,020$ - Grant Manager (Finance)95,000$ 95,000$ - Apprenticeship Program (All Departments)1,000,000$ 1,000,000$ - MRT Expansion [6 Months] (Fire)136,762$ 136,762$ - MRT Expansion [One-Time $46,700] (Fire)46,700$ 46,700$ Water and Sewer Infrastructure 2,000,000$ 2,000,000$ Council Added BA2 - Annex Building Renovation for Odyssey House 500,000$ 500,000$ Homelessness and Public Safety: the City's Greatest Current Need Clean Neighborhoods teams 1,505,920$ 1,505,920$ Public Lands Park Rangers (from Salary Restoration)1,508,044$ 1,545,746$ 792,195$ 3,845,985$ 2 Public Lands Park Rangers (One-time directly from ARPA funding)69,247$ CCP clean-up 325,250$ 329,500$ 164,750$ 819,500$ HEART 57,000$ 290,000$ 290,000$ 637,000$ Advantage Services Contract -$ Emergency Shelter Set Aside 1,000,000$ 1,000,000$ Building Community Resilience Social Impact Investment 10,000,000$ 10,000,000$ 3 Urban Land Fund 4,000,000$ 4,000,000$ Community Grants Community Grants 4,000,000$ 4,000,000$ TOTAL 1,193,000$ 36,811,634$ 46,537,645$ 1,246,945$ 85,719,977$ Amount of Distibution 85,411,572$ Salt Lake City ARPA Budgeted Funding FY2021 FY2022 FY2023 FY2024 TOTAL Salt Lake City ARPA Budgeted Funding Items listed in Blue are new proposals. 1 Projected Amount. This funding is not allocated to projects, creates flexible spending dollars. Revenue Loss Dollars can potentially cover all or a portion of these expenses in FY2023 and FY2024 Police Retention and Recruitment (Salary Enhancements)7,993,189$ 4,096,509$ 12,089,698$ Special Projects Assistant for Community Commitment Program (CAN)96,175$ 49,290$ 145,464$ Youth & Family Community and Program Manager (from BA#2) (CAN)92,899$ 47,611$ 140,509$ Youth & Family COVID Programming Continuation (CAN)729,134$ 373,681$ 1,102,815$ Economic Development Strategic Plan (Economic Development)51,250$ 26,266$ 77,516$ Economic Development Staff (Economic Development)297,250$ 152,341$ 449,591$ Grant Administrator (Finance)103,546$ 53,067$ 156,613$ Grant Manager (Finance)97,375$ 49,905$ 147,280$ Apprenticeship Program (All Departments)1,025,000$ 525,313$ 1,550,313$ MRT Expansion [6 Months] (Fire)140,181$ 71,843$ 212,024$ Park Ranger Program 805,237$ 383,297$ 1,188,534$ Fiscal Year 2022 One-Time Revenues ARPA Revenue Loss 11,432,646$ 11,432,646$ One Time Use of General Fund Balance 15,335,334$ 15,335,334$ One Time Use of General Fund Balance (FOF)2,129,483$ 2,129,483$ 46,157,818$ 2 Park Ranger Program Annual Costs 1,175,491$ 2,350,983$ 1,175,492$ One-Time Costs 401,800$ TOTAL 1,577,291$ 2,350,983$ 1,175,492$ Available Salary Restoration Funding 1,508,044$ 1,545,746$ 792,195$ Difference (Another Funding Source is needed, possibly revenue loss)(805,237)$ (383,297)$ 3 Social Impact Investment Focus will be on two specific interventions -- early childhood education and workforce training -- that will increase residents’ access to opportunity and economic mobility. Request to hold allocation of approximately $10 mil until the completion of Phase 2. Can be adjusted based on actual spending. Impact Fees ‐ Summary Confidential Data pulled 7/27/2021 Unallocated Budget Amounts: by Major Area Area Cost Center UnAllocated Cash Notes: Impact fee - Police 8484001 525,991$ A Impact fee - Fire 8484002 1,084,253$ B Impact fee - Parks 8484003 9,384,420$ C Impact fee - Streets 8484005 5,571,233$ D 16,565,896$ Expiring Amounts: by Major Area, by Month 202007 (Jul2020)2021Q1 -$ -$ -$ -$ -$ 202008 (Aug2020)2021Q1 -$ -$ -$ -$ -$ 202009 (Sep2020)2021Q1 -$ -$ -$ -$ -$ 202010 (Oct2020)2021Q2 -$ -$ -$ -$ -$ 202011 (Nov2020)2021Q2 -$ -$ -$ -$ -$ 202012 (Dec2020)2021Q2 -$ -$ -$ -$ -$ 202101 (Jan2021)2021Q3 -$ -$ -$ -$ -$ 202102 (Feb2021)2021Q3 16,273$ -$ -$ -$ 16,273$ 202103 (Mar2021)2021Q3 16,105$ -$ -$ -$ 16,105$ 202104 (Apr2021)2021Q4 1,836$ -$ -$ -$ 1,836$ 202105 (May2021)2021Q4 14,542$ -$ -$ -$ 14,542$ 202106 (Jun2021)2021Q4 30,017$ -$ -$ -$ 30,017$ Current Month 202107 (Jul2021)2022Q1 10,107$ -$ -$ -$ 10,107$ 202108 (Aug2021)2022Q1 6,804$ ^ 1 -$ -$ -$ 6,804$ 202109 (Sep2021)2022Q1 5,554$ ^ 1 -$ -$ -$ 5,554$ 202110 (Oct2021)2022Q2 3,106$ ^ 1 -$ -$ -$ 3,106$ 202111 (Nov2021)2022Q2 -$ -$ -$ -$ -$ 202112 (Dec2021)2022Q2 -$ -$ -$ -$ -$ 202201 (Jan2022)2022Q3 -$ -$ -$ -$ -$ 202202 (Feb2022)2022Q3 -$ -$ -$ -$ -$ 202203 (Mar2022)2022Q3 -$ -$ -$ -$ -$ 202204 (Apr2022)2022Q4 -$ -$ -$ -$ -$ 202205 (May2022)2022Q4 -$ -$ -$ -$ -$ 202206 (Jun2022)2022Q4 -$ -$ -$ -$ -$ 202207 (Jul2022)2023Q1 -$ -$ -$ -$ -$ 202208 (Aug2022)2023Q1 -$ -$ -$ -$ -$ 202209 (Sep2022)2023Q1 -$ -$ -$ -$ -$ 202210 (Oct2022)2023Q2 -$ -$ -$ -$ -$ 202211 (Nov2022)2023Q2 -$ -$ -$ -$ -$ 202212 (Dec2022)2023Q2 -$ -$ -$ -$ -$ 202301 (Jan2023)2023Q3 -$ -$ -$ -$ -$ 202302 (Feb2023)2023Q3 -$ -$ -$ -$ -$ 202303 (Mar2023)2023Q3 -$ -$ -$ -$ -$ 202304 (Apr2023)2023Q4 118$ -$ -$ -$ 118$ 202305 (May2023)2023Q4 469$ -$ -$ -$ 469$ 202306 (Jun2023)2023Q4 276$ -$ -$ -$ 276$ Total, Currently Expiring through June 2021 78,774$ -$ -$ -$ 78,774$ Notes ^1 FY 2023Calendar Month 7/27/21: We are currently in a refund situation. We will refund $15k in the next 3 months without offsetting expendituresFiscal Year 2021FY 2022Fiscal Quarter E = A + B + C + D Police Fire Parks Streets Total Impact Fees Confidential Data pulled 7/27/2021 AAA BBB CCC DDD = AAA - BBB - CCC Police Allocation Budget Amended Allocation Encumbrances YTD Expenditures Allocation Remaining Appropriation Values Description Cost Center Sum of Police Allocation Budget Amended Sum of Police Allocation Encumbrances Sum of Police Allocation YTD Expenditures Sum of Police Allocation Remaining Appropriation Impact fee - Streets Westside 8484005 -$ -$ -$ -$ Police'sConsultant'sContract 8419205 5,520$ 3,507$ 1,955$ 58$ Police Impact Fee Refunds 8421102 438,897$ -$ -$ 438,897$ Police Refunds 8418013 539,687$ -$ 69,291$ 470,396$ A PolicePrecinctLandAquisition 8419011 1,410,243$ 239,836$ -$ 1,170,407$ Grand Total 2,440,385$ 289,381$ 71,246$ 2,079,759$ Fire Allocation Budget Amended Allocation Encumbrances YTD Expenditures Allocation Remaining Appropriation Values Fire refunds 8416007 82,831$ -$ -$ 82,831$ Fire Station #14 8415001 6,650$ 6,083$ 567$ -$ Fire Station #14 8416006 52,040$ -$ 7,428$ 44,612$ Fire Station #3 8415002 1,568$ -$ -$ 1,568$ Fire Station #3 8416009 1,050$ 96$ 485$ 469$ Impact fee - Fire 8484002 -$ -$ -$ -$ Impact fee - Streets Westside 8484005 -$ -$ -$ -$ Study for Fire House #3 8413001 15,700$ -$ -$ 15,700$ B FireTrainingCenter 8419012 46,550$ -$ 46,550$ -$ Fire'sConsultant'sContract 8419202 10,965$ 4,883$ 6,024$ 58$ FY20 FireTrainingFac. 8420431 66,546$ -$ 10,516$ 56,031$ Fire Station #3 Debt Service 8421200 541,106$ -$ 541,106$ -$ Fire Station #14 Debt Service 8421201 339,172$ -$ 339,172$ -$ Grand Total 1,164,177$ 11,063$ 951,846$ 201,268$ Parks Allocation Budget Amended Allocation Encumbrances YTD Expenditures Allocation Remaining Appropriation Values Impact fee - Parks 8484003 -$ -$ -$ -$ JR Boat Ram 8420144 125,605$ 15,561$ 110,044$ -$ Three Creeks Confluence 8419101 173,017$ -$ 173,017$ -$ Cnty #2 Match 3 Creek Confluen 8420426 515,245$ 88$ 515,157$ -$ Park'sConsultant'sContract 8419204 7,643$ 4,815$ 2,786$ 42$ Folsom Trail/City Creek Daylig 8417010 766$ -$ 620$ 146$ Cwide Dog Lease Imp 8418002 24,056$ 23,000$ 526$ 530$ C Rosewood Dog Park 8417013 16,087$ -$ 14,977$ 1,110$ Jordan R 3 Creeks Confluence 8417018 11,856$ -$ 10,287$ 1,570$ 9line park 8416005 86,322$ 19,702$ 64,364$ 2,256$ Jordan R Trail Land Acquisitn 8417017 2,946$ -$ -$ 2,946$ Warm Springs Off Leash 8420132 27,000$ 15,811$ 6,589$ 4,600$ Fairmont Park Lighting Impr 8418004 50,356$ 43,597$ 605$ 6,155$ FY Parks and Public Lands Compreh 8417008 7,500$ -$ -$ 7,500$ Rich Prk Comm Garden 8420138 27,478$ 4,328$ 14,683$ 8,467$ Redwood Meadows Park Dev 8417014 15,939$ -$ 6,589$ 9,350$ ImperialParkShadeAcct'g 8419103 10,830$ -$ -$ 10,830$ Park refunds 8416008 11,796$ -$ -$ 11,796$ IF Prop Acquisition 3 Creeks 8420406 350,000$ 1,905$ 291,986$ 56,109$ Parks Impact Fees 8418015 102,256$ -$ 875$ 101,381$ UTGov Ph2 Foothill Trails 8420420 200,000$ 22,524$ 64,916$ 112,560$ FY20 Bridge to Backman 8420430 727,000$ 574,709$ 4,080$ 148,211$ 9Line Orchard 8420136 195,045$ -$ -$ 195,045$ Waterpark Redevelopment Plan 8421402 225,000$ -$ 753$ 224,247$ Trailhead Prop Acquisition 8421403 275,000$ -$ -$ 275,000$ Bridge to Backman 8418005 350,250$ 10,285$ 59,974$ 279,990$ Parley's Trail Design & Constr 8417012 327,678$ -$ -$ 327,678$ Cnty #1 Match 3 Creek Confluen 8420424 400,000$ 7,790$ 11,523$ 380,688$ Jordan Prk Event Grounds 8420134 431,000$ -$ -$ 431,000$ Wasatch Hollow Improvements 8420142 490,830$ -$ 1,142$ 489,688$ Fisher House Exploration Ctr 8421401 540,732$ 1,883$ 16,843$ 522,007$ Marmalade Park Block Phase II 8417011 1,145,394$ 34,222$ 50,965$ 1,060,208$ Fisher Carriage House 8420130 1,098,764$ -$ -$ 1,098,764$ Pioneer Park 8419150 3,442,199$ 229,022$ 98,295$ 3,114,882$ Grand Total 11,415,591$ 1,009,242$ 1,521,594$ 8,884,756$ Streets Allocation Budget Amended Allocation Encumbrances YTD Expenditures Allocation Remaining Appropriation Values 9 Line Central Ninth 8418011 152,500$ 152,500$ -$ -$ IF Roundabout 2000 E Parleys 8420122 455,000$ -$ 455,000$ -$ Impact fee - Streets Westside 8484005 -$ -$ -$ -$ 500/700 S Street Reconstructio 8412001 41,027$ 32,718$ 8,309$ -$ Transportation Safety Imp 8418007 147,912$ -$ 147,912$ -$ 500 to 700 S 8418016 575,000$ 96,637$ 478,363$ -$ Trans Master Plan 8419006 13,000$ 13,000$ -$ -$ 700 South Reconstruction 8414001 310,032$ -$ 310,032$ -$ D 700 South Reconstruction 8415004 1,157,506$ 2,449$ 1,155,057$ -$ LifeOnState Imp Fee 8419009 124,605$ -$ 124,605$ -$ Transportation Safety Improvem 8417007 22,360$ -$ 20,916$ 1,444$ Gladiola Street 8406001 16,544$ 13,865$ 435$ 2,244$ Trans Safety Improvements 8419007 210,752$ 87,472$ 115,100$ 8,180$ Street'sConsultant'sContract 8419203 39,176$ 17,442$ 9,360$ 12,374$ Complete Street Enhancements 8420120 125,000$ -$ 89,608$ 35,392$ Transp Safety Improvements 8420110 250,000$ 20,697$ 191,220$ 38,083$ 1300 S Bicycle Bypass (pedestr 8416004 42,833$ -$ -$ 42,833$ Indiana Ave/900 S Rehab Design 8412002 124,593$ -$ -$ 124,593$ Bikeway Urban Trails 8418003 200,000$ -$ -$ 200,000$ TransportationSafetyImprov IF 8421500 375,000$ -$ 72,947$ 302,053$ IF Complete Street Enhancement 8421502 625,000$ -$ -$ 625,000$ Street Improve Reconstruc 20 8420125 2,858,090$ 1,469,774$ 607,870$ 780,446$ Traffic Signal Upgrades 8419008 251,316$ -$ 29,628$ 221,688$ Traffic Signal Upgrades 8420105 300,000$ 300,000$ -$ -$ Traffic Signal Upgrades 8421501 875,000$ -$ -$ 875,000$ Grand Total 9,292,247$ 2,206,554$ 3,816,363$ 3,269,330$ Total 24,312,401$ 3,516,240$ 6,361,049$ 14,435,112$ E = A + B + C + D TRUE TRUE TRUE TRUE 9,384,420$ 5,571,233$ 16,565,896$ 8484002 8484003 8484005 525,991$ $1,084,253 8484001 UnAllocated Budget Amount MARY BETH THOMPSON Chief Financial Officer ERIN MENDENHALL Mayor DEPARTMENT OF FINANCE 451 SOUTH STATE STREET, ROOM 245 SALT LAKE CITY, UTAH 84114 TEL 801-535-6403 CITY COUNCIL TRANSMITTAL ________________________ Date Received: ___________________ Rachel Otto, Chief of Staff Date sent to Council: ______________ _____________________________________________________________________________ TO: Salt Lake City Council DATE: August 30, 2021 Amy Fowler, Chair FROM: Mary Beth Thompson, Chief Financial Officer___________________________________ SUBJECT: Master Lease Agreement – JPM Chase STAFF CONTACT: Russell Sundquist, Deputy Controller 801-535-6460 DOCUMENT TYPE: Resolution RECOMMENDATION: Adopt BUDGET IMPACT: N/A BACKGROUND/DISCUSSION: We are re-newing the master lease agreement with JPM Chase. While there are currently no obligations under this agreement, The City may enter into lease agreements up to $7M, not to exceed an aggregate of $35M over the five-year term of the agreement. Used by Public Services for managing fleet needs. PUBLIC PROCESS: N/A EXHIBITS: 1. Resolution 2. Municipal Master Lease Agreement rachel otto (Sep 7, 2021 15:24 MDT) 09/13/2021 09/13/2021 1 RESOLUTION NO. _____ OF 2021 Authorizing the approval of a Municipal Master Lease Agreement Salt Lake City Corporation and JP Morgan Chase Bank, N.A. regarding leasing and purchasing services. WHEREAS, the attached Municipal Master Lease Agreement (“Agreement”) has been prepared to provide Salt Lake City Corporation (“City”) with the ability to utilize certain leasing and purchasing services provided by JP Morgan Chase Bank, N.A. (“JP Morgan”); and WHEREAS, the City Council finds that the Agreement will enable the City to enter into leasing and purchasing arrangements that will be of benefit to the City and its citizens; THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah as follows: 1. The City Council does hereby approve the execution and delivery of the attached Agreement under which JP Morgan will provide leasing and purchasing services to the City; 2. 3. The effective date of the Agreement shall be the date on which the fully executed Agreement is recorded by the Salt Lake City Recorder. 4. Erin Mendenhall, Mayor of Salt Lake City, Utah or her designee is hereby authorized to approve, execute, and deliver said Agreement of behalf of Salt Lake City Corporation, in substantially the same form as now before the City Council and attached hereto, subject to such minor changes that do not materially affect the rights and obligations of the City thereunder and as shall be approved by the Mayor or the Mayor’s designee, their execution thereof shall constitute conclusive evidence of such approval. Passed by the City Council of Salt Lake City, Utah, this _____ day of _________, 2021 SALT LAKE CITY COUNCIL By: ______________________ CHAIRPERSON ATTEST: ___________________________ CITY RECORDER APPROVED AS TO FORM: _________________________ Salt Lake City Attorney’s Office Salt Lake City Corporation CAMP DOCUMENT ROUTING FORM CITY SIGNATURE AND ACTIVATION PROCESS August 2, 2021 Contract Number: 01-1-21-3000 Project: Contractor: 43436 JP MORGAN CHASE BANK NA Contract Title: MASTER LEASE ·C AUG O 1 2021 Monitor: TERESA BECKSTRAND Please complete your Step and forward to the next Step. CITY RECORDER STEP 1 ACCOUNTING DIVISION -Encumber Funds ,AUGo:a tU'U I certify that funds are available. OR . .-.Acco unting Signature Date I certify that no encumbrance is required at this time and any future encumbrance will be checked against available budget by theacc m s te . . \ /I ;1 17;\ • • A ' - " l.c:< V V vtYWL/"-- coun tini'° Signature Date Funding $ {d-: Source: _ Dept Cost Center Object Code Attach additional paperwork if more funding sources are needed. Limit$ _ STEP2 CITY ATTORNEY'S OFFICE-Final A iproval ank For ) Attorney: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Insurance Required: N Perf Bond Required: N N This document has been approved as to fo Date STEP3 - Sign Document For l)ale Sta1up INSTRUCTIONS: Si n ALL documents. Dept/Div Forward ALL Signed documents to the Recorder's Office STEP4 RECORDER'S OFFICE-Activate [late Stan1p INSTRUCTIONS: When activated, keep 1 signed document, send other signed document(s) to: Name Department or Division Phone CONTRACT NO. 01-1-21-3000 Rev. July 26, 2021/nb RECORDED AUG O 3 2021 MUNICIPAL MASTER LEASE AGREEMEN f TY RECORDER CITYWIDE THIS AGREEMENT is between SALT LAKE CITY CORPORATION, a Utah municipal corporation ("City" or "Lessee"), and JP MORGAN CHASE BANK, N.A., an Ohio corporation ("Lessor"), and is dated as of the date the City Recorder attests the applicable City signature (which date shall be the recordation date). RECITALS 1. Lessor desires to provide certain leasing and purchasing services for Lessee. 2. Lessee desires to engage Lessor for such services. AGREEMENT In consideration of the promises and covenants hereinafter contained, the parties agree as follows: 1. This Agreement in its entirety consists of this Agreement and the following Exhibits, all of which are attached hereto and incorporated by this reference: Exhibit "A" - Master Lease-Purchase Agreement; Exhibit "B" - Master Lease-Purchase Addendum (Self Insurance); Exhibit "C" - Lease Schedule; Exhibit "D" - Schedule A-1 Equipment Description; Exhibit 'E" - Payment Schedule; Exhibit "F" - Vehicle Schedule Addendum; Exhibit "G" - Prepayment Prohibition Schedule Addendum; Exhibit "H" - Prepayment Schedule Addendum (Lockout Period); Exhibit "I" - Prepayment Schedule Addendum (24-month Lockout Period); Exhibit "J" - Form of Opinion of Counsel; Exhibit "K" - Certificate of Incumbency; Exhibit "L" - Escrow Agreement; Exhibit "M" - Escrow Funding Schedule Addendum and Arbitrage Certificate; Exhibit "N" - Escrow Receipt Certificate/Payment Request; Exhibit "O" - IRS 8038 Form; Exhibit "P" - Proceeds Disbursement Authorization; Exhibit "Q"- Request for Tax Payer Identification Number and Certificate (W9). 2. For services provided to City, Contractor shall be paid as specified under Exhibit "E" (Payment Schedule). Lessor shall provide certain leasing and purchasing services for Lessee, upon the execution of certain leases/purchasing agreements (collectively the "Leases" or the "Lease Agreements") that consist of the attached Exhibits, for a term of five (5) years commencing as of July 10, 2021, or the date of this Agreement if later than the aforementioned date. City shall have the right to extend this Agreement for an additional term of up to four (4) months by giving Lessor written notice at least ten (10) days before the expiration of the original term, provided, however, that City may terminate such additional term by giving Lessor at least five (5) days prior written notice of such termination. Upon the expiration of the terms, the parties may no longer enter into new Lease Agreements, but the other terms of this Agreement shall continue until the lease terms and payments for all existing leases have been completed, whereupon the term of this Agreement shall expire. This Page 2 of 59 is a non-exclusive Agreement and the Lessee reserves the right to acquire the services and/or equipment, at its discretion, from other sources during the term of this Agreement. All financial commitments by Lessee shall be subject to the appropriation of funds approved by the City Council and the limitations on future budget commitments provided under applicable Utah law, including the Utah Constituti on. 3. For each lease of equipm ent, including veh icles, the parties shall complete and sign a Lease Schedule in the form attached as Exhibit "C" and other related documents , which shall be deemed and referred to as a separate Lease. Each Lease shall include only such equipment as Lessee and Lessor by mutual agreement determine to be essential use equipment. Each Lease shall have a term determined in accordance with this Agreement , whic h may be for three (3), four (4), five (5), seven (7), or ten (10) years , as mutually agreed between the Lessee and the Lessor , and the related Payment Schedules shall provide for six (6), eight (8), ten (10), fourteen (14), and twenty (20) semi- annual payments in arrears, respectively. Each new Lease entered into hereunder shall be subject to all of the terms and conditions of this Agreement. 4. For any Lease as to which the Equipment to be leased has not been received by the Lessee, such that an acquisition fund (escrow) arrangement is required , the parties shall enter into an Escrow Agreement in the form attached hereto as Exhibit " L". Each new Escrow Agreement entered into hereunder shall be subject to all of the terms and conditions of this Agreement. 5. The following indemnification requirements apply to this Agreement: A. Lessor shall indemnify, save harmless, and defend Lessee, its officers and employees, from and against all losses, cla ims, demands , actions, damages, costs, charges, and causes of action of every kind or character, including attorney's fees, arising out of Lessor's intentional, reckless, or negligent performance hereunder. If Lessee's tender of defense, based upon this indemnity provision, is rejected by Lessor , and Lessor is later found by a court of competent jurisdiction to have been required to indemnify Lessee , then in addition to any other remedies Lessee may have, Lessor shall pay Lessee's reasonable costs, expenses , and attorney's fees incurred in proving such ind emnification, defending its elf, or enforcing this provision. Nothing herein shall be construed to require Lessor to indemnify the indemnitee against the indemnitee's own negligence. The provisions of this section 5 shall survive the termination of this Agreement. B. Lessee has no responsibility for Lessor's employees. Nothing in this Agreement shall be construed to create a partnersh ip, joint venture , or employment relationship. 6. Lessor shall obey all federal, state , c oun ty, and municipal la ws, ordinances, regu lations, and rules applicable to its operations. Said laws i nclu de, but are not limited to, the Equal Employment Opportunity la ws, the Fair Labor Standards Act, Occupational Safety & Health Administration (OSHA) la ws, Family Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and the Utah Immigration Accountability and Enforcement Act. Any violation of applicable law shall constitute a breach of this Agreement and Contractor shall hold City harmless from any and all liability arising out of, or in connection wit h, said violations including any attorney's fees and costs incurred by Lessee as a result of such violation. 7. Lessee may terminate this Agreement for any reason , and without any liability there for, upon giving Lessor 30 days prior written notic e. Any obligations the parties have assumed pursuant to Lease Agreements entered into prior to the termination of this Agreement will not be eliminated or Page 3 of 59 otherwise affected by such cancellation, and any provisions of this Agreement that pertain to such Lease Agreements will remain in full force and effect until the parties' obligations have been fully satisfied. 8. [Reserved.] 9. [Reserved.] 10. Lessor, for itself, its successors and assigns, as part of the consideration provided under this agreement, covenants that no person shall be excluded from participation in, denied the benefits of, or be otherwise subject to unlawful discrimination in the furnishing of services hereunder on the grounds of race, color, national origin, age, sex, religion, disability, sexual orientation or gender identity, unless the characteristic in question is a bona fide occupational qualification. 11. REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY OFFICERS AND EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES. Lessor represents that it has not: (1) provided an illegal gift or payoff to a City officer or employee or former City officer or employee, or his or her relative or business entity; (2) retained any person to solicit or secure this contract upon an agreement or understanding for a commission, percentage, or brokerage or contingent fee, other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business; (3) knowingly breached any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or (4) knowingly influenced, and hereby promises that it will not knowingly influence , a City officer or employee or former City officer or employee to breach any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code. 12. GOVERNMENT RECORDS ACCESS AND MANAGEMENT ACT. City is subject to the requirements of the Government Records Access and Management Act, Chapter 2, Title 630, Utah Code Annotated or its successor ("ORAMA"). All materials submitted by Lessor pursuant to this Agreement are subject to disclosure unless such materials are exempt from disclosure pursuant to ORAMA. The burden of claiming an exemption from disclosure shall rest solely with Lessor. Any materials for which Lessor claims a privilege from disclosure shall be submitted marked as "Business Confidential" and accompanied by a concise statement of reasons supporting Lessor's claim of business confidentiality. City will make reasonable efforts to notify Lessor of any requests made for disclosure of documents submitted under a claim of business confidentiality. Contractor may, at Lessor's sole expense, take any appropriate actions to prevent disclosure of such material. Lessor specifically waives any claims against City related to disclosure of any materials required by ORAMA. 13. For the municipal master equipment lease/purchase financing services provided by the Lessor with respect to each Lease entered into pursuant hereto, the Lessor shall be paid as specified in the related Payment Schedule(s). The total amount of all Leases originated pursuant hereto is not anticipated to exceed $7,000,000.00 per year and will not exceed $35,000,000 over the five (5) year Master Lease Purchase Agreement term. 14. Payments shall be made as provided in the applicable Payment Schedule(s). The City shall have the right to prepay the lease payments due pursuant to any Lease before the end of the Lease Term for such Lease. Any prepayment would be subject to early termination penalties stated in the Page 4 of 59 applicable Prepayment Schedule Addendum executed with the Lease Schedule (Exhibit "G", Exhibit "H", or Exhibit "I"). The total amount of the payments provided for in any Payment Schedule, including the principal and interest components thereof, and any other charges or fees stated therein, shall represent the total amount that the Cit y will be required to pay pursuant to such Lease to acquire the applicable item(s) of Equipment. No additional charges shall be levied on the City by the Lessor for the acquisition of such item(s) of Equipment. 15. Interest rates for each Lease shall be determined as follows: The Interest Rate and related payment shall be based on current market rates as indicated by the two (2), three (3), four (4), and five (5) Year H.15 Interest Rate Swap ("Index Rate") as published by the Federal Reserve using the calculations shown in the following example. The rates as of July I, 2015 are listed in the example. For every change (increase or decrease) in the Index Rate between July 1, 2015 and the Commencement Date of each schedule a corresponding adjustment will be made per the formulas below. The rate will be set 3 days prior to closing. The rates stated below will be increased by 15 basis points if the Lease includes prepayment pursuant to Exhibit "H" and 6 basis points if the Lease includes prepayment pursuant to Exhibit "I". For Motor vehicles and other Equipment: Indexmg Examp e Term in Mon. Reference Interest Rate Swap All schedules Swaps* .79 +Spread= Rate 36 2-Year (0.286 * 0.79) + 0.5461 = 0.7720% 60 3-Year (0.503 * 0.79) + 0.8046 = 1.2020% 84 4-Year (0.774 * 0.79) + 0.8765 = 1.4880% Note: Rate will be indexed off of applicable Interest Rate as estimated 3 days prior to closing as referenced above. 16. City is self-insured and, through its self-insurance program, will provide liability insurance and casualty insurance with respect to Equipment leased pursuant hereto throughout the term of the applicable Lease. In the event that City elects to not self -insure, the Lessor shall be an additional insured for purposes of liability insurance and a loss payee to the extent of the unpaid principal component and accrued interest on each Payment Schedule for the purposes of casualty insurance. 1 17. The Lessor, if doing business under an assumed name, i.e. an individual, association, partnership, corporation, or otherwise, shall be registered with the Utah State Division of Corporations and Commercial Code. 18. The Lessor shall possess and keep in force all licenses and permits required to perform the services contracted for pursuant to this Agreement. 1 The self-insurance addendum will override these insurance provisions. However, the parties will keep them intact in case the parties enter into a Schedule that is not self-insured for some reason. Page 5 of 59 -- -- - - 19. No guarantee of City draw-downs or of the execution of any Leases is implied or expressed by this Agreement; such actions shall be determined by the City ' s actual needs. 20. Lessor is not an employee of Lessee for any purpose whatsoever. Lessor is an independent contractor at all times during the performance of the services specified herein. 21. All notices shall be directed to the following addresses: Lessee: Lessee: Salt Lake City Corporation Attn.: City Contracts Administrator, Purchasing (For U.S. Postal Service delivery) P.O. Box 145455 Salt Lake City, UT 84114-5455 -OR- (For hand delivery or express courier delivery) 451 South State Street, Room 235 Salt Lake City, UT 84111 With a copy to: Department of Finance Attn.: Finance Director (For U.S. Postal Service delivery) P.O. Box 145451 Salt Lake City, UT 84114-5451 -OR- (For hand delivery or express courier delivery) 451 South State Street, Room 248 Salt Lake City , UT 84111 Lessor: JP Morgan Chase Bank, N.A. Attention: GHNN Operations Managers 1111 Polaris Parkway, Suite A-3 Columbus, OH 43240_ 22. This Agreement may be assigned by either party but only with the prior written consent of the other party, provided that such written consent is not required if Lessor makes an assignment to JPMorgan Chase & Co. or any of its subs idiaries. 23. Lessor's obligations are solely to Lessee and Lessee ' s obligations are solely to Lessor. This Agreement shall confer no third-party rights whatsoever. 24. This Agreement embodies the entire Agreement between the parties relating to the subject matter of this Agreement and shall not be altered except in writing signed by both an authorized representative of Contractor and by City ' s Mayor or the Mayor ' s designee. The terms of this Agreement shall supersede any additional or conflicting terms or provisions that may be set forth or printed on Contractor ' s work plans, cost estimate forms, receiving tickets, invoices, or any other Page 6 of 59 related standard forms or documents of Contractor that may subsequently be used to implement, record, or invoice services hereunder from time to time, even if such standard forms or documents have been signed or initialed by a representative of City. The intent of the parties is that the terms of this Agreement shall prevail in any dispute between the terms of this Agreement and the terms printed on any such standard forms or documents, and such standard forms or documents shall not be considered written amendments of this Agreement. 25. This Agreement shall be enforced in and governed by the laws of the state of Utah. ********************************************************************************* (Signature page follows) Page 7 of 59 "' ---- J - - The parties are signing this Agreement as of the date stated in the introductory clause. ATTEST AND SALT LAKE CITY CORPORATION By ±1-10,'if?' fi fa0--.pa <--. Title C r-:4-: l') APPROVED AS TO FORM Salt Lake City Attorney's Office Date - - Recordation Date RECORDED AUG O 3 2021 CITY RECORDER Sign >--..._.j. t. .. L..- :,: Print n l2l JP MORGAN CHASE BANK, N.A . By '1 G. .%MAL Title A h-.\)., \ Lt. \) · c_M , -------.--- - _.._"'-----"....., Page 8 of 59 CHASE EXHIBIT "A" CONTRACT NO. 01-1-21-3000 MASTER LEASE-PURCHASE AGREEMENT Dated As of: Lessee: SALT LAKE CITY CORPORATION This Master Lease-Purchase Agreement together with all addenda, riders and attachments hereto, as the same may from time to time be amended, modified or supplemented ("Master Lease") is made and entered by and between JPMORGAN CHASE BANK, N.A.("Lessor") and the lessee identified above ("Lessee"). 1. LEASE OF EQUIPMENT. Subject to the terms and conditions of this Master Lease, Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, all Equipment described in each Schedule signed from time to time by Lessee and Lessor. 2. CERTAIN DEFINITIONS. All terms defined in the Lease are equally applicable to both the singular and plural form of such terms. (a) "Schedule" means each Lease Schedule signed and delivered by Lessee and Lessor, together with all addenda, riders, attachments, certificates and exhibits thereto, as the same may from time to time be amended, modified or supplemented. Lessee and Lessor agree that each Schedule (except as expressly provided in said Schedule) incorporates by reference all of the terms and conditions of the Master Lease. (b) "Lease" means any one Schedule and this Master Lease as incorporated into said Schedule. (c) "Equipment" means the property described in each Schedule, together with all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. (d) "Lien" means any security interest, lien, mortgage, pledge, encumbrance, judgment, execution, attachment, warrant, writ, levy, other judicial process or claim of any nature whatsoever by or of any person. 3. LEASE TERM. The term of the lease of the Equipment described in each Lease ("Lease Term") commences on the first date any of such Equipment is accepted by Lessee pursuant to Section 5 hereof or on the date specified in the Schedule for such Lease and, unless earlier terminated as expressly provided in the Lease, continues until Lessee's payment and performance in full of all of Lessee's obligations under the Lease. 4. RENT PAYMENTS. 4.1 For each Lease, Lessee agrees to pay to Lessor the rent payments in the amounts and at the times as set forth in the Payment Schedule attached to the Schedule ("Rent Payments"). A portion of each Rent Payment is paid as and represents the payment of intere st as set forth in the Payment Schedule. Lessee acknowledges that its obligation to pay Rent Payments including interest therein accrues as of the Accrual Date stated in the Schedule or its Payment Schedule; provided, that no Rent Payment is due until Lessee accepts the Equipment under the Lease or the parties execute an escrow agreement. Rent Payments will be payable for the Lease Term in U.S. dollars, without notice or Page 9 of 59 demand at the office of Lessor (or such other place as Lessor may designate from time to time in writing). 4.2 If Lessor receives any payment from Lessee later than ten (10) business days from the due date, Lessee shall pay Lessor on demand as a late charge five per cent (5%) of such overdue amount, limited, however, to the maximum amount allowed by law. 4.3 EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 6 HEREOF OR IN ANY WRITTEN MODIFICATION TO THE LEASE SIGNED BY LESSOR, THE OBLIGATION TO PAY RENT PAYMENTS UNDER EACH LEASE SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS AND SHALL NOT BE SUBJECT TO ANY SETOFF, DEFENSE, COUNTERCLAIM, ABATEMENT OR RECOUPMENT FOR ANY REASON WHATSOEVER. 5. DELIVERY; ACCEPTANCE; FUNDING CONDITIONS. 5.1 Lessee shall arrange for the transportation, delivery and installation of all Equipment to the location specified in the Schedule ("Location") by Equipment suppliers ("Suppliers") selected by Lessee. Lessee shall pay all costs related thereto. 5.2 Lessee shall accept Equipment as soon as it has been delivered and is operational. Lessee shall evidence its acceptance of any Equipment by signing and delivering to Lessor the applicable Schedule. If Lessee signs and delivers a Schedule and if all Funding Conditions have been satisfied in full, then Lessor will pay or cause to be paid the costs of such Equipment as stated in the Schedule ("Purchase Price") to the applicable Supplier. 5.3 Lessor shall have no obligation to pay any Purchase Price unless all reasonable conditions established by Lessor ("Funding Conditions") have been satisfied, including, without limitation, the following: (a) Lessee has signed and delivered the Schedule and its Payment Schedule; (b) no Event of Default shall have occurred and be continuing; (c) no material adverse change shall have occurred in the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder (collectively, the "Code"); (d) no material adverse change shall have occurred in the financial condition of Lessee or any Supplier; (e) the Equipment is reasonably satisfactory to Lessor and is free and clear of any Liens (except Lessor's Liens); (f) all representations of Lessee in the Lease remain true, accurate and complete; and (g) Lessor has received all of the following documents, which shall be reasonably satisfactory, in form and substance, to Lessor: (1) evidence of insurance coverage required by the Lease; (2) an opinion of Lessee's counsel; (3) reasonably detailed invoices for the Equipment; (4) Uniform Commercial Code (UCC) financing statements; (5) incumbency certificates for the person(s) who will sign the Lease; (6) such documents and certificates relating to the tax-exempt interest payable under the Lease (including, without limitation, IRS Form 8038G or 8038GC) as Lessor may request; and (7) such other documents and information previously identified by Lessor or otherwise reasonably requested by Lessor. 6. TERMINATION FOR GOVERNMENTAL NON-APPROPRIATIONS. 6.1 For each Lease, Lessee represents and warrants: that it has appropriated and budgeted the necessary funds to make all Rent Payments required pursuant to such Lease for the remainder of the fiscal year in which the Lease Term commences; and that it currently intends to make Rent Payments for the full Lease Term as scheduled in the applicable Payment Schedule if funds are appropriated for the Rent Payments in each succeeding fiscal year by its governing body. Without contractually committing itself to do so, Lessee reasonably believes that moneys in an amount sufficient to make all Page 10 of 59 Rent Payments can and will lawfully be appropriated therefore. Lessee directs the person in charge of its budget requests to include the Rent Payments payable during each fiscal year in the budget request presented to Lessee's governing body for such fiscal year; provided, that Lessee's governing body retains authority to approve or reject any such budget request. All Rent Payments shall be payable out of the general funds of Lessee or out of other funds legally appropriated therefore. Lessor agrees th at no Lease will be a general obligation of Lessee and no Lease shall constitute a pledge of either the full faith and credit of Lessee or the taxing power of Lessee. 6.2 If Lessee's governing body fails to appropriate sufficient funds in any fiscal year for Rent Payments or other payments due under a Lease and if other funds are not legally appropriated for such payments, then a "Non-Appropriation Event" shall be deemed to have occu rred. If a Non- Appropriation Event occurs, then: (a) Lessee shall give Lessor immediate notice of such Non- Appropriation Event and provide written evidence of such failure by Lessee's governing body; (b) on the Return Date, Lessee shall return to Lessor all, but not less than all, of the Equipment covered by the affected Lease, at Lessee's sole expense, in accordance with Section 21 hereof; and (c) the affected Lease shall terminate on the Return Date without penalty to Lessee, provided, that Lessee shall pay all Rent Payments and other amounts payable under the affected Lease for which funds shall have been appropriated, provided further, that Lessee shall pay month -to-month rent at the rate set forth in the affected Lease for each month or part thereof that Lessee fails to return the Equipment under this Section 6.2. "Return Date" means the last day of the fiscal year for which appropriations were made for the Rent Payments due under a Lease. 7. LIMITATION ON WA RRANTIES. LESSOR MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, AS TO THE MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY OF THE EQUIPMENT OR AS TO THE VALUE, DESIGN, CONDITION, USE, CAPACITY OR DURABILITY OF ANY OF THE EQUIPMENT. For and during the Lease Term, Lessor hereby assigns to Lessee any manufacturer's or Supplier's product warranties, express or implied, applicable to any Equipment and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee's sole expense. Lessee agrees that (a) all Equipment will have been p urchased by Lessor in accordance with Lessee's specifications from Suppliers selected by Lessee, (b) Lessor is not a manufacturer or dealer of any Equipment and has no liability for the delivery or installation of any Equipment, (c) Lessor assumes no obligation with respect to any manufacturer's or Supplier's product warranties or guaranties, (d) no manufacturer or Supplier or any representative of said parties is an agent of Lessor, and (e) any warranty, representation, guaranty or agreement made by any manufacturer or Supplier or any representative of said parties shall not be binding upon Lessor. 8. TITLE; SECURITY INTEREST. 8.1 Upon Lessee's acceptance of any Equipment under a Lease, titl e to the Equipment shall vest in Lessee, subject to Lessor's security interest therein and all of Lessor's other rights under such Lease including, without limitation, Sections 6, 20 and 21 hereof. 8.2 As collateral security for the Secured Obligations, Lessee hereby grants to Lessor a first priority security interest in any and all of the Equipment (now existing or hereafter acquired) and any and all proceeds thereof. Lessee agrees to execute and delive r to Lessor all necessary documents to evidence and perfect such security interest, including, without limitation, UCC financing statements and any amendments thereto. Page 11 of 59 8.3 "Secured Obligations" means Lessee's obligations to pay all Rent Payments and all other amounts due and payable under all present and future Leases and to perform and observe all covenants, agreements and conditions (direct or indirect, absolute or contingent, due or to become due, or existing or hereafter arising) of Lessee under all present and future Leases. 9. PERSONAL PROPERTY. All Equipment is and will remain personal property and will not be deemed to be affixed or attached to real estate or any building thereon. 10. MAINTENANCE AND OPERATION. Lessee agrees it shall, at its sole expense: (a) repair and maintain all Equipment in good condition and working order and supply and install all replacement parts or other devices when required to so maintain the Equipment or when required by applicable law or regulation, which parts or devices shall automatically become part of the Equipment; and (b) use and operate all Equipment in a careful manner in the normal course of its operations and only for the purposes for which it was designed in accordance with the manufacturer's warranty requirements, and comply with all laws and regulations relating to the Equipment. If any Equipment is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement by a party reasonably satisfactory to Lessor. No maintenance or other service for any Equipment will be provided by Lessor. Lessee will not make any alterations, additions or improvements ("Improvements") to any Equipment without Lessor's prior written consent unless the Improvements may be readily removed without damage to the operation, value or utility of such Equipment, but any such Improvements not removed prior to the termination of the applicable Lease shall automatically become part of the Equipment. 11. LOCATION; INSPECTION. Equipment will not be removed from, or if Equipment is rolling stock its permanent base will not be changed from, the Location without Lessor's prior written consent which will not be unreasonably withheld. Upon reasonable notice to Lessee, Lessor may enter the Location or elsewhere during normal business hours to inspect the Equipment. 12. LIENS, SUBLEASES AND TAXES. 12.1 Lessee shall keep all Equipment free and clear of all Liens except those Liens created under its Lease. Lessee shall not sublet or lend any E quipment or permit it to be used by anyone other than Lessee or Lessee's employees. 12.2 Lessee shall pay when due all Taxes which may now or hereafter be imposed upon any Equipment or its ownership, leasing, rental, sale, purchase, possession or use, upon any Lease or upon any Rent Payments or any other payments due under any Lease. If Lessee fails to pay such Taxes when due, Lessor shall have the right, but not the obligation, to pay such Taxes. If Lessor pays any such Taxes, then Lessee shall, upon demand, immediately reimburse Lessor therefore. "Taxes" means present and future taxes, levies, duties, assessments or other governmental charges that are not based on the net income of Lessor, whether they are assessed to or payable by Lessee or Lessor, including, without limitation (a) sales, use, excise, licensing, registration, titling, gross receipts, stamp and personal property taxes, and (b) interest, penalties or fines on any of the foregoing. 13. RISK OF LOSS. 13.1 Lessee bears the entire risk of loss, theft, damage or destruction of any Equipment in whole or in part from any reason whatsoever ("Casualty Loss"). No Casualty Loss to any Equipment shall relieve Lessee from the obligation to make any Rent Payments or to perform any other obligation under any Lease. Proceeds of any insurance recovery will be applied to Lessee's obligations under this Section 13. Page 12 of 59 13.2 If a Casualty Loss occurs to any Equipment , Lessee shall immediately notify Lessor of the same and Lessee shall, unless otheiwise directed by Lessor, immediately repair the same. 13.3 If Lessor determines that any item of Equipment has suffered a Casualty Loss beyond repair ("Lost Equipment"), then Lessee shall either : (a) immediately replace the Lost Equipment with similar equipment in good repair, condition and working order free and clear of any Liens (except Lessor's Liens), in which event such replacement equipment shall automatically be Equipment under the applicable Lease, and deliver to Lessor true and complete copies of the invoice or bill of sale covering the replacement equipm ent; or (b) on earlier of 60 days after the Casualty Loss or the next scheduled Rent Payment date, pay Lessor (i) all amount s owed by Lessee under the applicable Lease, including the Rent Payments due on or accrued through such date plus (ii) an amount equ al to the Termination Value as of the Rent Payment date (or if th e Casualty Loss payment is due between Rent Payment dates, then as of the Rent Payment date preceding the date that the Casualty Loss payment is due) set forth in the Payment Schedule to the applicable Lease. If Lessee is making such payment with respect to less than all of the Equipment under a Lease , then Lessor will provide Lessee with the pro rata amount of the Rent Payment and Termination Valu e to be paid by Lessee with respect to the Lost Equipment and a revised Payment Schedule. 13.4 To the extent not prohibited by State law, Lessee shall bear the risk of loss for, shall pay directly, and shall defend against any and all claims, liabilities, proceedings, actions, expenses (including reasonable attorney's fees), damages or losses arising under or related to any Equipment, including, but not limited to, the possession, ownership, lease, use or operation thereof. These obligations of Lessee shall survive any expiration or termination of any Lease. Lessee shall not bear the risk of loss of, nor pay for, any claims, liabilities, proceedings, actions, expenses (including attorney's fees), damages or losses which arise direc tly from events occurring after any Equipment has been returned by Lessee to Lessor in accordance with the terms of the applicable Lease or which arise directly from the gross negligence or willful misconduct of Lessor. 14. INSURANCE. 14.1 (a) Lessee at its sole expense shall at all times keep all Equipment insured against all Casualty Losses for an amount not less than the Termin ation Value of the Equipment. Proceeds of any such insurance covering damage or loss of any Equipment shall be payable to Lessor as loss payee. (b) Lessee at its sole expense shall at all times carry public liability and third party property damage insurance in amounts reasonably satisfactory to Lessor protecting Lessee and Lessor from liabilities for injuries to persons and damage to property of others relating in any way to any Equipment . Proceeds of any such public liability or property insurance shall be payable first to Lessor as additional insured to the extent of its liability, and then to Lessee. 14.2 Lessee may satisfy the requirements of Paragraph 14 through Lessee ' s self-insurance program. In the event Lessee does not use Lessee ' s self-insurance program to satisfy the requirements of Paragraph 14, those requirements may be satisfied through Lessee ' s excess liability insu rance, which carries a $1,000,000 self-insured retention. All insurers shall be reasonably satisfactory to Lessor. Lessee shall promptly deliver to Lessor satisfactory evidence of required insurance coverage , and all renewals and replacements thereof. Each insurance policy will require that the insurer give Lessor at least 30 days prior written notice of any cancellation of such policy and will require that Lessor's interests remain insured regardless of any act, error, misrepresentation, omission or neglect of Lessee. The insurance maintained by Lessee shall be primary without any right of contribution from insurance which may be maintained by Lessor. Page 13 of 59 15. PREPAYMENT OPTION. Upon thirty (30) days prior written notice by Lessee to Lessor, and so long as there is no Event of Default then existing, Lessee shall have the option to prepay Lessee's obligations under a Lease on any Rent Payment due date by paying to Lessor all Rent Payments then due (including accrued interest, if any) for such Lease pl us the Termination Value amount set forth on the Payment Schedule to such Lease for such date. Upon satisfaction by Lessee of such prepayment conditions, Lessor shall release its Lien on such Equipment and Lessee shall retain its title to such Equipment "AS-IS, WHERE-IS", without representation or warranty by Lessor, express or implied, except for a representation that such Equipment is free and clear of any Liens created by Lessor. 16. LESSEE'S REPRESENTATIONS AND WARRANTIES. With respect to each Lease and its Equipment, Lessee hereby represents and warrants to Lessor that: (a) Lessee has full power, authority and legal right to execute and deliver the Lease and to perform its obligations under the Lease, (b) the Lease has been duly executed and delivered by Le ssee and constitutes a legal, valid and binding obligation of Lessee, enforceable in accordance with its terms; (c) the Lease is authorized under, and the authorization, execution and delivery of the Lease complies with, all applicable federal, state and local laws and regulations (including, but not limited to, all open meeting, public bidding and property acquisition laws) and all applicable judgments and court orders; (d) the execution, delivery and performance by Lessee of its obligations under the Leas e will not result in a breach or violation of, nor constitute a default under, any agreement, lease or other instrument to which Lessee is a party or by which Lessee's properties may be bound or affected; (e) there is no pending, or to the best of Lessee's knowledge threatened litigation of any nature which may have a material adverse effect on Lessee's ability to perform its obligations under the Lease; and (f) Lessee is a state, or a political subdivision thereof, as referred to in Section 103 of the Inte rnal Revenue Code, and Lessee's obligation under the Lease constitutes an enforceable obligation issued on behalf of a state or a political subdivision thereof. 17. TAX COVENANTS. Lessee hereby covenants and agrees that: (a) Lessee shall comply with all of the requirements of Section 149(a) and Section 149(e) of the Internal Revenue Code, as the same may be amended from time to time, and such compliance shall include, but not be limited to, executing and filing Internal Revenue Form 8038G or 8038GC, as the case may be, and any other information statements reasonably requested by Lessor; (b) Lessee shall not do (or cause to be done) any act which will cause, or by omission of any act allow, any Lease to be an "arbitrage bond" within the meaning of Section 148(a) of the Internal Revenue Code or any Lease to be a "private activity bond" within the meaning of Section 141(a) of the Internal Revenue Code; and (c) Lessee shall not do (or cause to be done) any act which will cause, or by omission of any act allow, the interest portion of any Rent Payments to be or become includable in gross income for Federal income taxation purposes under the Code. 18. ASSIGNMENT. 18.1 Lessee shall not assign, transfer, pledge, hypothecate, nor grant any Lien on, nor otherwise dispose of, any Lease or any Equipment or any interest in any Lease or Equipment. 18.2 Lessor may assign its rights, title and interest in and to any Lease or any Equipment, and/or may grant or assign a security interest in any Lease and its Equipment, in whole or in part, to any party at any time. Any such assignee or lienholder (an "Assignee") shall have all of the rights of Lessor under the applicable Lease. LESSEE AGREES NOT TO ASSERT AGAINST ANY ASSIGNEE ANY CLAIMS, ABATEMENTS, SETOFFS, COUNTERCLAIMS, RECOUPMENT OR ANY OTHER SIMILAR DEFENSES WHICH LESSEE MAY HAVE AGAINST LESSOR. Unless otherwise agreed by Lessee in writing, any such assignment transaction shall not release Lessor Page 14 of 59 from any of Lessor's obligations under the applicable Lease. An assignment or reassignment of any of Lessor's right, title or interest in a Lease or its Equipme nt shall be enforceable against Lessee only after Lessee receives a written notice of assignment which discloses the name and address of each such Assignee; provided, that such notice from Lessor to Lessee of any assignment shall not be so required if Lessor assigns a Lease to JPMORGAN CHASE & CO. any of its direct or indirect subsidiaries. Lessee shall keep a complete and accurate record of all such assignments in the form necessary to comply with Section 149(a) of the Code and for such purpose, Lessee hereby appoints Lessor (or Lessor's designee) as the book entry and registration ag ent to keep a complete and accurate record of any and all assignments of any Lease . Lessee agrees to acknowledge in writing any such assignments if so requested. 18.3 Each Assignee of a Lease hereby agrees that: (a) the term Secured Obligations as used in Section 8.3 hereof is hereby amended to include and apply to all obligations of Lessee under the Assigned Leases and to exclude the obligations of Lessee under any Non -Assigned Leases; (b) said Assignee shall have no Lien on, nor any claim to, nor any interest of any kind in, any Non -Assigned Lease or any Equipment covered by any Non-Assigned Lease; and (c) Assignee shall exercise its rights, benefits and remedies as the assignee of Lessor (including, without limitation, the remedies under Section 20 of the Master Lease) solely with respect to the Assigned Leases. "Assigned Leases" means only those Leases which have been assigned to a single Assignee pursuant to a written agreement; and "Non-Assigned Leases" means all Leases excluding the Assigned Leases. 18.4 Subject to the foregoing, each Lease inures to the benefit of and is binding upon the heirs , executors, administrators, successors and assigns of the parties hereto. 19. EVENTS OF DEFAULT. For each Lease, "Event of Default" means the occurrence of any one or more of the following events as they may relate to such Lease : (a) Lessee fails to make any Rent Payment (or any other payment) as it becomes due in accordance with th e terms of the Lease, and any such failure continues for ten (10) days after the due date thereof; (b) Lessee fails to perform or observe any of its obligations under Sections 12.1, 14 or 18.1 hereof; (c) Lessee fails to perform or observe any other covenant, condition or agreement to be performed or observed by it under the Lease and such failure is not cured within thirty (30) days after receipt of written notice thereof by Lessor; provided, however, that if the failure to comply o r perform is of the nature that it cannot be cured within thirty (30) days, Lessee shall have up to sixty (60) additional days to cure so long as Lessee has commenced efforts to cure within such original thirty (30) day cure period and diligently pursues a full cure thereafter; (d) any statement, representation or warranty made by Lessee in the Lease or in any writing delivered by Lessee pursuant thereto or in connection therewith proves at any time to have been false, misleading or erroneous in any material respect as of the time when made; (e) Lessee applies for or consents to the appointment of a receiver , trustee, conservator or liquidator of Lessee or of all or a substantial part of its assets, or a peti tion for relief is filed by Lessee under any federal or state bankruptcy, insolvency or similar law, or a petition in a proceeding under any federal or state bankruptcy, insolvency or similar law is filed against Lessee and is not dismissed within ninety (90) days thereafter; or (f) Lessee shall be in default under any other Lease or under any other financing agreement executed at any time with Lessor. 20. REMEDIES. If any Event of Default occurs, then Lessor may, at its option, exercise any one or more of the following remedies: (a) Lessor may require Lessee to pay (and Lessee agrees that it shall pay) all amounts then currently due under all Leases and all remaining Rent Payments due under all Leases during the fiscal year in effect when the Event of Default occurs together with interest on such amounts at the rate of Page 15 of 59 twelve percent (12%) per annum (but not to exceed the highest rate permitted by applicable law) from the date of Lessor's demand for such payment; (b) Lessor may require Lessee to promptly return all Equipment under all or any of the Leases to Lessor in the manner set forth in Section 21 (and Lessee agrees that it shall so return the Equipment), or Lessor may, at its option and during normal business hours after giving notice to Lessee, enter upon the premises where any Equipment is located and repossess any Equipment, without any court order or other process of law and without liability for any damage occasioned by such repossession; (c) Lessor may sell, lease or otherwise dispose of any Equipment under all or any of the Leases, in whole or in part, in one or more public or private transactions, and if Lessor so disposes of any Equipment, then Lessor shall retain the entire proceeds of such disposition free of any claims of Lessee, provided, that if the net proceeds of the disposition of all the Equipment exceeds the applicable Termination Value of all the Schedules plus the amounts payable by Lessee under clause (a) above of this Section and under clause (f) below of this Section, then such excess amount shall be remitted by Lessor to Lessee; (d) Lessor may terminate, cancel or rescind any Lease as to any and all Equipment; (e) Lessor may exercise any other right, remedy or privilege which may be available to Lessor under applicable law or, by appropriate court action at law or in equity, Lessor may enforce any of Lessee's obligations under any Lease; and/or (f) Lessor may require Lessee to pay (and Lessee agrees that it shall pay) all out-of-pocket costs and expenses incurred by Lessor as a result (directly or indirectly) of the Event of Default and/or of Lessor's actions under this section, including, without limitation, any attorne y fees and expenses and any costs related to the repossession, safekeeping, storage, repair, reconditioning or disposition of any Equipment. None of the above remedies is exclusive, but each is cumulative and in addition to any other remedy available to Lessor. Lessor's exercise of one or more remedies shall not preclude its exercise of any other remedy. No delay or failure on the part of Lessor to exercise any remedy under any Lease shall operate as a waiver thereof, nor as an acquiescence i n any default, nor shall any single or partial exercise of any remedy preclude any other exercise thereof or the exercise of any other remedy. 21. RETURN OF EQUIPMENT. If Lessor is entitled under the provisions of any Lease, including any termination thereof pursuant to Sections 6 or 20 of this Master Lease, to obtain possession of any Equipment or if Lessee is obligated at any time to return any Equipment, then (a) title to the Equipment shall vest in Lessor immediately upon Lessor's notice thereof to Lessee, and (b) Lessee shall, at its sole expense and risk, immediately de-install, disassemble, pack, crate, insure and return the Equipment to Lessor (all in accordance with applicable industry standards) at any location in the continental United States selected by Lessor. Such Equipment shall be in the same condition as when received by Lessee (reasonable wear, tear and depreciation resulting from normal and proper use excepted), shall be in good operating order and maintenance as required by the applicable Lease, shall be free and clear of any Liens (except Lessor's Lien) and shall comply with all applicable laws and regulations. Until Equipment is returned as required above, all terms of the applicable Lease shall remain in full force and effect including, without limitation, obligations to pay Rent Payments and to insure the Equipment. Lessee agrees to execute and deliver to Lessor all documents reasonably Page 16 of 59 requested by Lessor to evidence the transfer of legal and beneficial title to such Equipment to Lessor and to evidence the termination of Lessee's interest in such Equipment. 22. LAW AND FORUM SELECTION. Each Lease shall be enforced in and governed by the laws of the state where Lessee is located (the "State"). 23. NOTICES. All notices to be given under any Lease shall be made in writing and either personally delivered or mailed by regular or certified mail or sent by an overnight courier delivery company to the other party at its address set forth herein or at such address as the party may provide in writing from time to time. Any such notices shall be deemed to have been received five (5) business days subsequent to mailing. 24. FINANCIAL INFORMATION. As soon as they are available after their completion in each fiscal year of Lessee during any Lease Term, Lessee will deliver to Lessor, upon Lessor's request, the publicly available annual financial information of Lessee. 25. SECTION HEADINGS. All section headings contained herein or in any Schedule are for convenience of reference only and do not define or limit the scope of any provision of any Lease. 26. EXECUTION IN COUNTERPARTS. Each Schedule to this Master Lease may be executed in several counterparts, each of which shall be deemed an original, but all of which shall be deemed one instrument. If more than one counterpart of each Schedule is executed by Lessee and Lessor, then only one may be marked "Lessor's Original" by Lessor. A security interest in any Schedule may be created through transfer and possession only of: the sole original of said Schedule if there is only one original; or the counterpart marked "Lessor's Original" if there are multiple counterparts of said Schedule. 27. ENTIRE AGREEMENT; WRITTEN AMENDMENTS. Each Lease, together with the exhibits, schedules and addenda attached thereto and made a part hereof and other attachments thereto constitute the entire agreement between the parties with respect to the lease of the Equipment covered thereby, and such Lease shall not be modified, amended, altered, or changed except with the written consent of Lessee and Lessor. Any provision of any Lease found to be prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remainder of the Lease. 28. REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY OFFICERS AND EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES. Lessor represents that it has not: (1) provided an illegal gift or payoff to a City officer or employee or former City officer or employee, or his or her relative or business entity; (2) retained any person to solicit or secure this contract upon an agreement or understanding for a commission, percentage, or brokerage or contingent fee, other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business; (3) knowingly breached any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or (4) knowingly influenced, and hereby promises that it will not knowingly influence, a City officer or employee or former City officer or employee to breach any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code. ********************************************************************************* (Signature page follows) Page 17 of 59 SALT LAKE CITY CORPORATION (Lessee) By: Title: JPMORGAN CHASE BANK, N.A. (Lessor) By: Title: Authorized Officer ATTEST AND COUNTERSIGN: City Recorder Recordation Date APPROVED AS TO FORM Salt Lake City Attorney's Office Date Sign: _ Print: Page 18 of 59 CHASE O EXHIBIT "B" CONTRACT NO. 01-1-21-3000 MASTER LEASE-PURCHASE ADDENDUM (Self Insurance) Lessee: Salt Lake City Corporation Master Lease-Purchase Agreement Date: Reference is made to the above Master Lease-Purchase Agreement identified therein as amended ("Master Lease"), by and between JPMORGAN CHASE BANK, N.A.("Lessor") and the above lessee ("Lessee"). This Addendum amends and modifies the terms and conditions of the Master Lease and is hereby made a part of the Master Lease. Unless otherwise defined herein, capitalized terms defined in the Master Lease shall have the same meaning when used herein. NOW, THEREFORE, as part of the valuable consideration to induce the execution of the Master Lease, Lessor and Lessee hereby agree to amend the Master Lease as follows: 1. CASUALTY LOSS. Notwithstanding anything to the contrary in Section 14 of the Master Lease or in Exhibit F attached to the Master Lease, Lessor agrees that Lessee may self-insure against risk of casualty loss of or physical damage to the Equipment; provided, that upon written notice from Lessor to Lessee, Lessee agrees to secure and maintain commercial insurance against such risks to the Equipment as otherwise required by the Master Lease if an event of default has occurred and is continuing under the Master Lease. 2. THIRD PARTY LIABILITY. Notwithstanding anything to the contrary in Section 14 of the Master Lease or in Exhibit F attached to the Master Lease, Lessor agrees that Lessee may self-insure against risk of injuries to persons and damage to property of others relating in any way to any Equipment ; provided, that upon written notice from Lessor to Lessee, Lessee agrees to secure and maintain commercial insurance against such risks as otherwise required by the Master Lease if an event of default has occurred and is continuing under the Master Lease. 3. COMPLIANCE WITH LAW; ACTUARIALLY SOUND BASIS. Lessee agrees that its self insurance arrangements as described herein shall comply with applicable State law related thereto or, if there is no State law applicab le to such self insurance arrangements, then Lessee's self insurance arrangements shall be maintained on an actuarially sound bas is . 4. GENERAL. Except as expressly amended by this Addendum and other modifications signed by Les sor and Lessee, the Master Lease remains unchanged and in full force and effect. 5. REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY OFFICERS AND EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES. Lessor represents that it has not: (1) provided an illegal gift or payoff to a City officer or employee or former City officer or employee , or his or her relative or business entity; (2) retained any person to solicit or secure this contract upon an agreement or understanding for a commission, percentage, or brokerage or contingent fee, other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business; (3) knowingly breached any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or (4) knowingly influenced, and hereby promises that it will not knowingly influence, a City officer or employee or former City officer or employee to breach any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code. ********************************************************************************** (Signature page follows) Page 19 of 59 IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date of the Schedule first referenced above. SALT LAKE CITY CORPORATION (Lessee) By: Title: JPMORGAN CHASE BANK, N.A. (Lessor) By: Title: Authorized Officer ATTEST AND COUNTERSIGN: City Recorder Recordation Date APPROVED AS TO FORM Salt Lake City Attorney's Office Date Sign: _ Print: Page 20 of 59 EXHIBIT "C" CONTRACT NO. 01-1-21-3000 LEASE SCHEDULE Dated as of: Lease No.: This Lease Schedule, together with its corresponding Payment Schedule, Equipment Description Schedule, Vehicle Schedule Addendum (if applicable), Prepayment Schedule Addendum, Opinion of Counsel, Certificate of Incumbency, Escrow Agreement (if applicable), and Escrow Funding Addendum and Arbitrage Certificate (if applicable), are attached and made a part of the Master Lease-Purchase Agreement described below ("Master Lease") between the Lessee and Lessor named below. All terms and conditions of the Master Lease are incorporated herein by reference. Unless otherwise defined herein, capitalized terms defined in the Master Lease will have the same meaning when used herein. Master Lease-Purchase Agreement dated _ A. EQUIPMENT DESCRIBED: The Equipment includes all of the property described on Schedule A-1 attached hereto and made a part hereof. B. EQUIPMENT LOCATION: See Attached Schedule A-1 C. ACCEPTANCE OF EQUIPMENT: AS BETWEEN LESSEE AND LESSOR, LESSEE AGREES THAT: (a) LESSEE HAS RECEIVED AND INSPECTED ALL EQUIPMENT; (b) ALL EQUIPMENT IS IN GOOD WORKING ORDER AND COMPLIES WITH ALL PURCHASE ORDERS, CONTRACTS AND SPECIFICATIONS; (c) LESSEE ACCEPTS ALL EQUIPMENT FOR PURPOSES OF THE LEASE "AS-IS, WHERE-IS"; AND (d) LESSEE WAIVES ANY RIGHT TO REVOKE SUCH ACCEPTANCE. D. ESSENTIAL USE; CURRENT INTENT OF LESSEE: Lessee represents and agrees that the use of the Equipment is essential to Lessee's proper, efficient and economic functioning or to the services that Lessee provides to its citizens and the Equipment will be used by Lessee only for the purpose of performing its governmental or proprietary functions consistent with the permissible scope of its authority. Lessee currently intends for the full Lease Term: to use the Equipment; to continue this Lease; and to make Rental Payments if funds are appropriated in each fiscal year by its governing body. E. RENTAL PAYMENTS; LEASE TERM: The Rental Payments to be paid by Lessee to Lessor, the commencement date thereof and the Lease Term of this Lease Schedule are set forth on the Payment Schedule attached to this Lease Schedule. F. RE-AFFIRMATION OF THE MASTER LEASE: Lessee hereby re-affirms all of its representations, warranties and obligations under the Master Lease (including, without limitation, its obligation to pay all Rental Payments, its disclaimers in Section 7 thereof and its representations in Sections 6.1 and 16 thereof). G. REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY OFFICERS AND EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES. Lessor represents that it has not: (1) provided an illegal gift or payoff to a City officer or employee or former City officer or employee, or his or her relative or business entity; (2) retained any person to solicit or secure this contract upon an agreement or understanding for a commission, percentage, or brokerage or contingent fee, other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business; (3) knowingly breached any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or (4) knowingly influenced, and hereby promises that it will not knowingly influence, a City officer or employee or former City officer or employee to breach any of the ethical standards set forth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code. Page 21 of 59 H. GOVERNMENT REGULATION; ANTI-CORRUPTION LAWS AND SANCTIONS. Lessee and its respective officers and employees and to the knowledge of the Lessee its directors and agents, are in compliance with Anti- Corruption Laws and applicable Sanctions in all material respects [and are not knowingly engaged in any activity that would reasonably be expected to result in the Lessee being designated as a Sanctioned Person]. None of (a) the Lessee or any of its respective directors, officers or employees, or (b) to the knowledge of the Lessee, any agent of the Lessee that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing or use of proceeds or other transaction contemplated by this Agreement will violate any Anti- Corruption Law or applicable Sanctions. For the purposes of this Section: "Anti-Corruption Laws" means all laws, rules, and regulations of any jurisdiction applicable to the Lessee or its subsidiaries from time to time concerning or relating to bribery or corruption. "Person" means any individual, corporation, partnership, limited liability company, joint venture, joint stock association, association, bank, business trust, trust, unincorporated organization, any foreign governmental authority, the United States of America, any state of the United States and any political subdivision of any of the foregoing or any other form of entity. "Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State. "Sanctioned Country" means, at any time, a country, region or territory which is the subject or target of any Sanctions (as at the time of this Agreement, Crimea, Cuba, Iran, North Korea, Sudan and Syria). "Sanctioned Person" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person. Equipment/Escrow Acceptance Date ------------------------------ 20 SALT LAKE CITY CORPORATION (Lessee) By: JPMORGAN CHASE BANK, N.A. (Lessor) By: Title: _ Title:Authorized Officer ATTEST AND COUNTERSIGN: City Recorder Recordation Date APPROVED AS TO FORM Salt Lake City Attorney's Office Date Sign: _ Print: _ Page 22 of 59 EXHIBIT "D" SCHEDULE A-1 Equipment Description CONTRACT NO. 01-1-21-3000 Lease Schedule No. ------- dated The Equipment described below includes all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. Equipment Location: Equipment Description: Expected Equipment Purchase Price Minus Lessee Down Payment/Trade-in Net Amount Financed $-------------- $-------------- This Schedule A-1 is attached to the Lease Schedule or a Receipt Certificate/Payment Request relating to the Lease Schedule. Salt Lake City Corporation (Lessee) JPMorgan Chase Bank, N.A. (Lessor) By: By: Title: Title: Authorized Officer Page 23 of 59 CONTRACT NO. 01-1-21-3000 EXHIBIT "E" PAYMENT SCHEDULE This Payment Schedule is attached and made a part of the Lease Schedule identified below which is part of the Master Lease-Purchase Agreement identified therein, all of which are between the Lessee and Lessor named below. Lease Schedule No. Accrual Date: Amount Financed: $ _ Dated Interest Rate: % per annum Rent Rent Rent Interest Principal Principal Termination Number Date Payment Portion Portion Balance Value SALT LAKE CITY CORPORATION (Lessee) By: JPMORGAN CHASE BANK, N.A. (Lessor) By: Title: Title: Authorized Officer Page 24 of 59 CHASE ... EXHIBIT "F" CONTRACT NO. 01-1-21-3000 VEHICLE SCHEDULE ADDENDUM Dated As of: Lease Schedule No: Lessee: SALT LAKE CITY CORPORATION Reference is made to the above Lease Schedule ("Schedule") to the Master Lease-Purchase Agreement identified in the Schedule ("Master Lease") by and between JPMORGAN CHASE BANK, N.A.("Lessor") and the above lessee ("Lessee"). This Addendum amends and modifies the terms and conditions of the Schedule and is hereby made a part of the Schedule. Unless otherwise defined herein , capitalized terms defined in the Master Lease shall have the same meaning when used herein . NOW, THEREFORE, as part of the valuable consideration to induce the execution of the Schedule, Lessor and Lessee hereby agree to amend the Schedule as follows: 1. In the event that any unit of Equipment covered by the Schedule is a vehicle or trailer under applicable State law, then the following provisions shall also apply to the Schedule: (a) each manufacturer's statement of origin and certificate of t itle shall state that Lessor has the first and sole lien on or security interest in such unit of Equipment; (b) the public liability insurance or self -insurance required by the terms of clauses (b) of Section 14.1 of the Master Lease shall be in an amount not less than $1,000,000.00 combined single limit per unit per occurrence. Physical damage should not be less than the replacement cost coverage for the equipment identified on the Schedule A-1; (c) Lessee shall furnish and permit only duly licensed, trained, safe and qualified drivers to operate any such unit of Equipment , and such drivers shall be agents of Lessee and shall not be agents of Lessor; and (d) Lessee shall cause each such unit of Equipment to be duly registered and licensed as required by applicable State law with Lessor noted as lienholder and Lessee as owner. 2. Except as expressly amended by this Addendum and other modifications signed by Lessor, the Schedule remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first referenced above. SALT LAKE CITY CORPORATION (Lessee) By: JPMORGAN CHASE BANK, N.A. (Lessor) By: Title: Title: Authorized Officer Page 25 of 59 EXHIBIT "G" CONTRACT NO. 01-1-21-3000 PREPAYMENT PROHIBITION SCHEDULE ADDENDUM Lease Schedule No. _ Lessee: Salt Lake City Corporation Reference is made to the above Lease Schedule ("Schedule'') and to the Master Lease-Purchase Agreement ("Master Lease'') identified in the Schedule, which are by and between JPMORGAN CHASE BANK, N.A.("Lessor'') and the above lessee ("Lessee''). As used herein: "Lease" shall mean the Schedule and the Master Lease, but only to the extent that the Master Lease relates to the Schedule. This Schedule Addendum amends and supplements the terms and conditions of the Lease. Unless otherwise defined herein, capitalized terms defined in the Lease shall have the same meaning when used herein. 1. Solely for purposes of the Schedule, Lessor and Lessee agree that , notwithstanding anything to the contrary in the Lease (express or implied), Lessee's option under Section 15 of the Master Lease to purchase the Equipment or to prepay the Lease obligations is deleted and Lessee may not exercise such option 2. The parties acknowledge that the Termination Value column of the Payment Schedule to the Schedule is included solely for purposes of the calculations required by Section 13.3 of the Master Lease (casualty loss of Equipment) and Subsection 20(c) of the Mast er Lease (post-default remedies of Lessor) and said Termination Value column does not negate the restrictions on purchase options or voluntary prepayment in paragraphs 1 and 2 of this Addendum. 3. Except as expressly amended or supplemented by this Addendum and other instruments signed by Lessor and Lessee, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date of the Schedule first referenced above. SALT LAKE CITY CORPORATION (Lessee) By: _ Title: JPMORGAN CHASE BANK, N.A. (Lessor) By: _ Title: Authorized Officer Page 26 of 59 CONTRACT NO. 01-1-21-3000 EXHIBIT "H" PREPAYMENT SCH EDULE ADDENDUM (Lockout Period) Dated As Of _ _ _ _ _ _ _ _ _ _ Lease Schedule No. ____________________ Les:sSalt Lake City Corporation Reference is made to the above Lease Schedule ("Schedule " ) and to the Master Lease-Purchase Agreement ("Master Lease") identified in the Schedule, which are by and between JPMORGAN CHASE BANK, N.A .("Lessor"), and the above lessee ("Lessee" ). As used herein : "Lease" shall mean the Schedule and the Master Lease, but only to the extent that the Master Lease relates to the Schedule. This Schedule Addendum amends and supplements the terms and conditions of the Lease. Unless otherwise defined herein, capitalized terms defined in the Lease shall have the same meaning when used herein. Solely for purposes of the Schedule, Lessor and Lessee agree as follows: 1. Notwithstanding anything to the contrary herein or the Lease, Lessee and Lessor agree that Lessee shall not exercise its prepayment or early purchase rights under the Lease (including, without limitation, Section 15 of the Master Lease as it relates to the Schedule) or this Addendum prior to the end of the Lock-Out Period specified below. Lock-Out Period: the first 12 months of the Lease Term of the Schedule 2. Notwithstanding anything to the contrary in the Lease (including, without limitation, Section 15 of the Master Lease as it relates to the Schedule), Lessee and Lessor agree that so long as no Event of Default has occurred and continues under the Lease and so long as Lessee gives Lessor at least 20 days prior written notice (the " Notice Period") and so long as the above Lock-Out Period has expired, Lessee may elect to prepay its obligations under the Schedule by paying to Lessor on the Rent Payment due date (a "Prepayment Date" ) following the Notice Period the total of the following (the "Prepayment Amount"): (a) all accrued Rent Payments, interest, taxes, late charges and other amounts then due and payable under the Lease; plus (b) the remaining principal balance payable by Lessee under the Schedule as of said Prepayment Date. 3. The parties acknowledge that the Termination Value column of the Payment Schedule to the Schedule is included solely for purposes of the calculations required by Section 13.3 of the Master Lease (casualty loss of Equipment) and Subsection 20(c) of the Master Lease (post-default remedies of Lessor) and said Termination Value column does not negate the restrictions on purchase options or voluntary prepayment in paragraphs 1 and 2 of this Addendum. 4. The prepayment or early purchase option rights granted herein shall control in the event of any conflict between the provisions of this Addendum and the Master Lease as it relates to the Schedule. Except as expressly amended or supplemented by this Addendum and other instruments signed by Lessor and Lessee, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first written above. SALT LAKE CITY CORPORATION (Lessee) By: _ _ _ _ _ _ _ _ _ _ _ _ _ Title: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ JPMORGAN CHASE BANK, N.A. (Lessor) By: _ _ _ _ _ _ _ _ _ _ _ _ Title: Authorized Officer CONTRACT NO . 01-1-21-3000 Page 27 of 59 EXHIBIT "I" PREPAYMENT SCHEDULE ADDENDUM (24-Month Lockout Period) Dated As Of Lease Schedule No. _ Lessee: SALT LAKE CITY CORPORATION Reference is made to the above Lease Schedule ("Schedule") and to the Master Lease-Purchase Agreement ("Master Lease") identified in the Schedule, which are by and between JPMORGAN CHASE BANK, N.A.("Lessor"), and the above lessee ("Lessee"). As used herein: "Lease" shall mean the Schedule and the Master Lease, bu t only to the extent that the Master Lease relates to the Schedule. This Schedule Addendum amends and supplements the terms and conditions of the Lease. Unless otherwise defined herein, capitalized terms defined in the Lease shall have the same meaning when used herein. Solely for purposes of the Schedule, Lessor and Lessee agree as follows: l. Notwithstanding anything to the contrary herein or the Lease, Lessee and Lessor agree that Lessee shall not exercise its prepayment or early purchase rights under the Lease (including, without limitation, Section 15 of the Master Lease as it relates to the Schedule) or this Addendum prior to the end of the Lock-Out Period specified below. Lock-Out Period: the first 24 months of the Lease Term of the Schedule 2. Notwithstanding anything to the contrary in the Lease (including, without limitation, Section 15 of the Master Lease as it relates to the Schedu le) , Lessee and Lessor agree that so long as no Event of Default has occurred and continues under the Lease and so long as Lessee gives Lessor at least 20 days prior written notice (the "Notice Period") and so long as the above Lock-Out Period has expired, Lessee may elect to prepay its obligations under the Schedule by paying to Lessor on the Rent Payment due date (a "Prepayment Date") following the Notice Period the total of the following (the "Prepayment Amount"): (a) all accrued Rent Payments, interest, taxes, late charges and other amounts then due and payable under the Lease; plus (b) the remaining principal balance payable by Lessee under the Schedule as of said Prepayment Date. 3. The parties acknowledge that the Termination Value column of the Payment Schedule to the Schedule is included solely for purposes of the calculations required by Section 13.3 of the Master Lease (casualty loss of Equipment) and Subsection 20(c) of the Master Lease (post-default remedies of Lessor) and said Termination Value column does not negate the restrictions on purchase options or voluntary prepayment in paragraphs 1 and 2 of this Addendum. 4. The prepayment or early purchase option rights granted herein shall control in the event of any conflict between the provisions of this Addendum and the Master Lease as it relates to the Schedule. Except as expressly amended or supplemented by this Addendum and other instruments signed by Lessor and Lessee, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first written above. SALT LAKE CITY CORPORATION (Lessee) By:-------------- Title: _ JPMORGAN CHASE BANK, N.A. (Lessor) By: _ Title: Authorized Officer CONTRACT NO. 01-1-21-3000 Page 28 of 59 EXHIBIT "J" FORM OF OPINION OF COUNSEL (To Be Typed on Attorney ' s Letterhead Stationery) Date: Lessee: SALT LAKE CITY CORPORATION Lessor: JPMORGAN CHASE BANK, N.A. Re: Lease Schedule No. dated together with its Master Lease-Purchase Agreement dated as of by and between the above-named Lessee and the above-named Lessor. Sir/Madam: I have acted as counsel to Lessee with respect to the Lease Schedule and its Addenda, the Master Lease-Purchase Agreement and its Addenda, and all other agreements described above or related thereto (collectively, the "Agreements") and various related matters, and in this capacity have reviewed a duplicate original or copy of the Agreements and such other documents as I have deemed necessary for the purposes of this opinion. Based upon the examination of such documents, it is my opinion that: 1. Lessee is a political subdivision of the State of UT (the "State") duly organized, existing and operating under the Constitution and laws of the State. 2. Lessee is authorized and has power under State law to enter into all of the Agreements, and to carry out its obligations thereunder and the transactions contemplated thereby . 3. The Agreements and all other documents related thereto have been duly authorized , approved and executed by and on behalf of Lessee, and each of the Agreements is a valid and binding contract of Lessee enforceable in accordance with its terms, except to the extent limited by State and Federal laws affecting creditor's remedies and by b ankruptcy, reorganization or other laws of general application relating to or affecting the enforcement of creditors' rights. 4. The authorization, approval and execution of the Agreements and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all applicable Local, State and Federal laws (including open meeting laws and public bidding and property acquisition laws). 5. To the best of my knowledge, there is no litigation or proceeding of merit pending before any court, administrative agency or governmental body, that challenges: the organization or existence of Lessee; the authority of its officers; the proper authorization, approval and execution of any of the Agreements or any documents relating thereto; the appropriation of monies to make payments under the Agreements for the current fiscal year; or the ability of Lessee otherwise to perform its obligations under the Agreements and the transactions contemplated thereby. 6. Lessee is a political subdivision of the State as referred to in Section 103 of the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder. 7. Lessee is organized under the Mayor-Council form of government as provided by the laws of the State. The Mayor, or the Mayor's designee, has authority to execute the Lease and to bind the Lessee thereby without any requirement of a resolution authorizing such by the city council. Lessor, its Assignee and any of their assigns may rely upon this opini on. Very truly yours, Attorney Page 29 of 59 CONTRACT NO. 01-1-21-3000 EXHIBIT "K" CERTIFICATE OF INCUMBENCY Lessee: Salt Lake City Corporation Master Lease-Purchase Agreement Dated _ I, the undersigned City Recorder identified below, do hereby certify that I am the duly elected or appointed and acting City Recorder of the above Lessee (the "Lessee"), a political subdivision duly organized and existing under the laws of the State where Lessee is located , that I have the title stated below, and that, as of the date here of, the individuals named below are the duly elected or appointed officers of the Lessee holding the offices set forth opposite their respective names. Such individuals are authorized to execute the Lease Schedule and its accompanying documents as demonstrated by the documents attached heret o. [NOTE: Use same titles as Authorized Representatives stated in Resolutions.] Name Title Signature Name Title Signature IN WITNESS WHEREOF, I have duly executed this certificate as of the date set forth below. Signature of City Recorder Print Name:---------------- Date:------------------ NOTE: In case the City Recorder is also the authorized representative that executes the Master Lease-Purchase Agreement I documents by the above incumbency, this certificate must also be signed by a second officer. Print Name: Signature: Title: Page 30 of 59 EXHIBIT "L" ESCROW AGREEMENT (Gross Fund-Earnings to Lessee) CONTRACT NO. 01-1-21-3000 Dated as of: ----- 20 This Escrow Agreement together with all addenda, riders and attachments hereto, as the same may from time to time be amended, modified or supplemented ("Agreement") is made and entered as of the date set forth above by and among the Escrow Agent identified below ("Escrow Agent"), the Lessee identified below ("Lessee") and JPMorgan Chase Bank, N.A. ("Lessor"). As used herein, "Party" shall mean any of Lessee, Lessor or Escrow Agent, and "Parties" shall mean all of Lessee, Lessor and Escrow Agent. The Parties hereby authorize the Escrow Agent to act as escrow agent hereunder . All references to Escrow Agent shall mean Deutsche Bank Trust Company Americas in its capacity as escrow agent only, and all references to Lessor shall mean JPMorgan Chase Bank, N.A. in its capacity as lessor only. Escrow Agent: Lessee: Deutsche Bank Trust Company Americas Salt Lake City Corporation For good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows: SECTION 1. RECITALS. 1.01 Lessor and Lessee have entered into the Lease identified below whereby Lessor has agreed to lease and sell certain property generally described in the attached Schedule A-1 (the "Equipment") to Lessee, and Lessee has agreed to lease and purchase the Equipment from Lessor, in the manner and on the terms set forth in the Lease. 1.02 "Lease" means, collectively, the Lease Schedule identified below and the Master Lease- Purchase Agreement identified in said Lease Schedule (to the extent that it relates to said Lease Schedule) together with all exhibits, schedules, addenda, riders and attachmen ts thereto. The Escrow Agent shall neither be responsible for, nor chargeable with, knowledge of, nor have any requirements to comply with , the terms and conditions of any other agreement, instrument or document between Lessee and Lessor, in connection herewith, if any, including without limitation the Lease, nor shall the Escrow Agent be required to determine if any person or entity has complied with any such agreements, nor shall any such obligations of the Escrow Agent be inferred from the terms of such agreements, even though reference thereto may be made in this Agreement. In the event of any conflict between the terms and provisions of this Agreement, those of the Lease. any schedule or exhibit attached to the Agreement. or any other agreement among the Parties, the terms and conditions of this Agreement shall control. Page 31 of 59 Lease Schedule No. 1000:XXXXXX 1.03 LESSOR'S DEPOSIT: $ • Lessor shall pay or cause to be paid to the Escrow Agent the amount of the Lessor's Deposit. The date that the Lessor's Deposit is paid to the Escrow Agent shall be referred to as the "Lessor's Deposit Date". Escrow Agent shall credit the Lessor's Deposit to the Equipment Acquisition Fund established in Section 2 hereof on the Lessor's Deposit Date. To the extent that the purchase price of the Equipment exceeds the Lessor's Deposit, Lessee shall either notify Escrow Agent and then deposit with Escrow Agent funds which will be credited to the Equipment Acquisition Fund and used to pay the balance of the purchase price of the Equipment or Lessee shall pay such balance directly to the suppliers. 1.04 FUNDING EXPIRATION DATE: ("Funding Expiration Date"). Lessee and Lessor agree that all Equipment should be delivered and installed, and all funds disbursed from the Equipment Acquisition Fund, no later than the above Funding Expiration Date. 1.05 Under the Lease, Lessee will cause each item of Equipment to be ordered from the applicable suppliers. Lessee shall furnish to Lessor as soon as available, a copy of the purchase orders or purchase contracts for all Equipment ordered pursuant to the Lease, showing the supplier, the purchase price and the estimated delivery dates. 1.06 Subject to such control by Lessee and Lessor as is provided herein, Lessor and Lessee agree to appoint the Escrow Agent and the Escrow Agent accepts such appointment to receive, hold, invest and disburse the moneys deposited with the Escrow Agent as described in this Agreement. The Escrow Agent shall not be obligated to assume or perform any obligation of Lessee or Lessor under the Lease or of any supplier with respect to any Equipment by reason of anything contained in this Agreement. Escrow Agent shall have only those duties as are specifically and expressly provided herein, which shall be deemed purely ministerial in nature, and no other duties shall be implied. Any funds in the Equipment Acquisition Fund not needed to pay the purchase price of Equipment will be paid to Lessor or Lessee, all as hereinafter provided. 1.07 This Agreement is not intended to alter or change in any way the rights and obligations of Lessor and Lessee under the Lease, but is entirely supplemental thereto. The provisions of this Agreement may be waived, altered, amended or supplemented, in whole or in part, only by a writing signed by all Parties. 1.08 Each of the Parties hereto has authority to enter into this Agreement, and has taken all actions necessary to authorize the execution of this Agreement by the officers whose signatures are affixed hereto. Where, however, the conflicting provisions of any such applicable law may be waived, they are hereby irrevocably waived by the Parties hereto to the fullest extent permitted by law, to the end that this Agreement shall be enforced as written. SECTION 2. EQUIPMENT ACQUISITION FUND. 2.01 The Escrow Agent's sole responsibility prior to the Lessor's Deposit Date shall be to establish an escrow account designated as the Equipment Acquisition Fund (the "Equipment Acquisition Fund"). Escrow Agent shall keep such funds deposited into the escrow account separate and apart from all other funds and money held by it, and shall administer such funds as provided in this Agreement. Escrow Agent's rights and responsibilities under this Agreement, other than establishment Page 32 of 59 of the Equipment Acquisition Fund, shall begin on the Lessor's Deposit Date , which may be on or after the date of this Agreement. 2.02 The Lessor's Deposit and any funds deposited by Lessee under Section 1.03 hereof shall be credited to the Equipment Acquisition Fund on the Lessor's Deposit Date and shall be used to pay the balance of the purchase price of each item of Equipment subject to the Lease . The Escrow Agent shall pay to the suppliers of the Equipment the payment amounts then due and payable with respect thereto upon receipt of a written request executed by an Authorized Representative (as defined in Section 7) of the Lessor, delivered to the Escrow Agent in accordance with Section 9.02, and after the Escrow Agent has satisfied any applicable security proc edures as required by Section 7. The written request will specify the supplier/beneficiary, its address or wire instructions and the applicable portion of the Equipment Acquisition Fund to be paid (the "Receipt Certificate/Payment Request"). As between Lessee and Lessor only, Lessee agrees that it will submit to Lessor for Lessor's signature a Receipt Certificate /Payment Request that has been executed by Lessee together with (a) the suppliers' invoices specifying the applicable portion of the purchase price of the items of Equipment described in said Receipt Certificate, (b) if the item of Equipment is a titled vehicle, a copy of the Manufacturer's Statement of Origin (MSO) covering such item showing Le ssor as fust and sole lienholder, and (c) any other documents required by the Lease , and Lessee agrees that Lessor shall not be obligated to execute any such Receipt Certificate until all of the foregoing have been submitted to Lessor. 2.03 If an Authorized Representative of the Lessor delivers to the Escrow Agent written notice of the occurrence of an event of default under the Lease or of a termination of the Lease due to a non-appropriation event or non-renewal event under the Lease, then the Escrow Agent shall immediately remit to Lessor the remaining balance of the Equipment Acquisition Fund. After its receipt of a notice of an event of default under the Lease, the Escrow Agent shall comply with all written instructions from an Authorized Representative of Lessor without further consent from Lessee or any other person. After its receipt of a notice of an event of default under the Lease, the Escrow Agent shall not accept or act upon any instruction from Lessee nor shall it permit any distribution or release of any part of the Equipment Acquisition Fund without written authorization from an Authorized Representative of the Lessor. 2.04 Upon the Escrow Agent's receipt of a Full Funding Notice (as defined below), the Escrow Agent shall apply the balance remaining in the Equipment Acquisition Fund: first, to all reasonable fees and expenses incurred by the Escrow Agent in connection herewith as evidenced by its statement forwarded to Lessee and Lessor; and second, to Lessor to be applied by Lessor for benefit of Lessee either: (a) toward the principal and interest portion of the Rent Payment next coming due under the Lease; or (b) to reimburse the Lessee for the interest portion of their Rental Payments previously made within the past 18 months; or (c) toward a partial prepayment of the principal amount remaining due under the Lease and thereupon Lessor shall prepare and deliver to Lessee a revised Payment Schedule reflecting such partial prepayment of principal. "Full Funding Notice" means written notification by an Authorized Representative of the Lessor to the Escrow Agent of the Lessor's receipt of the Final Receipt Certificate /Payment Request which confirms that all Equipment covered by the Lease has been delivered to and accepted by Lessee under the Lease and that the full amount of the Lessor's Deposit has been paid to the applicable suppliers. Page 33 of 59 2.05 Upon the Funding Expiration Date stated in Section 1.04 above, the Escrow Agent shall apply the remaining balance in the Equipment Acquisition Fund: first, to all reasonable fees and expenses incurred by the Escrow Agent in connection herewith as evidenced by its statement forwarded to Lessee and Lessor; and second, to Lessor to be applied by Lessor for benefit of Lessee either: (a) toward the principal portion of the Rent Payment next coming due under the Lease; or (b) to reimburse the Lessee for the interest portion of their Rental Payments previously made within the past 18 months; or (c) toward a partial prepayment of the principal amount remaining due under the Lease and thereupon Lessor shall prepare and deliver to Lessee a revised Payment Schedule reflecting such partial prepayment of principal. Upon the Funding Expiration Date stated in Section 1.04 above, the Escrow Agent shall apply the interest earnings on the Equipment Acquisition Fund as set forth in Section 2.04 above. 2.06 The Escrow Agent shall not be responsib le for the sufficiency of the moneys credited to the Equipment Acquisition Fund to make the payments herein required. 2.07 This Agreement shall terminate upon disbursement by the Escrow Agent of all money held by it hereunder, subject to the provisions of Section 4. SECTION 3. MONEY IN EQUIPMENT ACQUISITIONS FUND; INVESTMENT. 3.01 The money and investments held by the Escrow Agent under this Agreement are irrevocably held in escrow for the benefit of Lessee and Lessor, and such money, together with any income or interest earned thereon, shall be expended only as provided in this Agreement, and shall not be subject to any security interest or lien, by or for the benefit of any creditor of either Lessee or Lessor; provided, that the money and investments held by the Escrow Agent under this Agreement shall be subject to the security interests provided in Sect ions 3.07 and 4.03 hereof and further shall be subject to Section 12.04. 3.02 Money held by the Escrow Agent hereunder shall be invested and reinvested by the Escrow Agent at the written direction executed by an Authorized Representative of Lessee in Qualified Investments (as defined below). Such investments shall be registered in the name of the Escrow Agent and held by the Escrow Agent. The Escrow Agent may purchase or sell to itself or any affiliate, as principal or agent, investments authorized by this Section . Such investments and reinvestments shall be made giving consideration for the time at which funds are required to be available . No investment instruction shall be given that would cause the Agreement to be deemed an "arbitrage bond" within the meaning of Section 148(a) of the Internal Revenue Code of 1986, as amended. 3.03 The Escrow Agent shall have no discretion whatsoever with respect to the management, disposition or investment of the Equipment Acquisition Fund. Lesse e acknowledges and agrees that all investments made pursuant to this section shall be for the account and risk of Lessee and any losses associated with investments shall be borne solely by Lessee . Escrow Agent shall from time to time invest and reinvest the funds held in the Equipment Acquisition Fund account, as and when instructed by an Authorized Representative of Lessee, in writing , in any one or more of the following (hereinafter, "Qualified Investments"): (a) obligations of the United States of America or any agency created thereby; (b) general obligations of any State of the United States of America; (c) general Page 34 of 59 obligations of any political subdivision of a State of the United States of America, if such obligations are rated by at least two recognized rating services as at least AA; (d) certificates of deposit of any national bank or banks (including, if applicabl e, Escrow Agent or an affiliate of Escrow Agent) insured by the Federal Deposit Insurance Corporation (FDIC) with a net worth in excess of $100,000,000.00 ("Acceptable Bank"); (e) obligations of State or Municipal Public Housing Authorities chartered by th e United States of America and guaranteed by the United States of America; (f) demand interest bearing accounts of Escrow Agent or an affiliate of Escrow Agent if Escrow Agent or an affiliate of Escrow Agent is an Acceptable Bank; (g) money market funds whose assets are solely invested in obligations listed in (a) through (f) above, including repurchase agreements secured by such obligations and which money market funds are rated in either of the two hig hest categories of any Rating Agency at the time of purchase, including, without limitation, the Deutsche Bank Trust Company Americas Funds, or any other mutual fund for which the Escrow Agent or an affiliate of the Escrow Agent serves as investment manager, administrator, shareholder servicing agent, and/or custodian or subcustodian, notwithstanding that (1) the Escrow Agent or an affiliate of the Escrow Agent receives fees from such funds for services rendered, (2) the Escrow Agent charges and collects fees for services rendered pursuant to this Agreement, which fees are, separate from the fees received from such funds and (3) services performed for such funds and pursuant to this Agreement may at times duplicate those provided to such funds by the Escrow Agent or its affiliates; and (h) any other obligations approved in writing by Lessor. Unless otherwise directed in writing by an Authorized Representative of the Lessee, the Escrow Agent shall invest the Equipment Acquisition Fund, including all income earnings, as selected by the Lessee on schedule 1 hereto ("Schedule 1"} upon the execution of this Agreement. In the event that no election is made by an Authorized Representative of Lessee by the Lessor's Deposit Date, Escrow Agent shall invest the Equipment Acquisition Fund in an investment available through the Escrow Agent's Trust Platform or in an interest bearing account that the Escrow Agent has agreed to and upon written direction to the Escrow Agent. 3.04 If any of the above-described Qualified Investments are not legal investments of Lessee, then an Authorized Representative of the Lessee shall immediately notify Escrow Agent which of said Qualified Investments are not legal investments of Lessee, and shall provide Escrow Agent with direction to invest funds in accordance with Section 3.03. It is the sole responsibility of the Lessee to ascertain that all investments comply with all applicable federal, state, and local laws, statues, and policies. 3.05 The Escrow Agent shall, without further direction, sell such investments as and when required to make any payment from the Equipment Acquisition Fund. Any income received on such investments shall be credited to the Equipment Acquisition Fund. 3.06 The Escrow Agent shall furnish a monthly statement listing all investments to Lessor and to Lessee. The Escrow Agent shall not be responsible or liable for any loss suffered in connection with any investments of moneys made by it in accordance with this Section . Market values, exchange rates and other valuation information (including without limitation, market value, current value or notional value) of any Qualified Investment furnished in any report or statement may be obtained from third party sources and is furnished for the exclusive use of the Parties. The Escrow Agent has no responsibility whatsoever to determine the market or other value of any Qualified Investment and makes no representation or warranty, express or implied, as to the accuracy of any such valuations or that any values necessarily reflect the proceeds that may be received on the sale of a Qualified Investment. Page 35 of 59 3.07 Lessee hereby grants Lessor a security interest in the money and investments held by the Escrow Agent under this Agreement as collateral security for the payment and performance of all of Lessee's obligations under the Lease, this Agreement and any agreement, contract or instrument related to the Lease or this Agreement. Lessee represent s and warrants to Lessor that the money and investments held by the Escrow Agent under this Agreement are free and clear of any liens, security interests or encumbrances other than the security interests created under this Agreement. Escrow Agent hereby acknowledges that it holds the money and investments held by the Escrow Agent under this Agreement subject to such security interest created by Lessee as bailee for Lessor; provided, that Escrow Agent's security interest in such money and investments as created under Section 4.03 hereof shall be superior to Lessor's security interest therein. It is understood that Escrow Agent has no responsibility with respect to the validity or perfection of the security interest other than to act in accordance with the terms of this Agreement. SECTION 4. ESCROW AGENT'S AUTHORITY; INDEMNIFICATION. 4.01 The Escrow Agent may: act in reliance upon any writing, notice, certificate, instruction, instrument or signature which it, in good faith, believes to be genuine and to have been signed by an Authorized Representative of the applicable Party or Parties; assume the validity and accuracy of any statement or assertion contained in such a writing, notice, certificate, instruction or instrument ; and assume that any person purporting to give any such writing, notice, certificate, instruction or instrument in connection with the provisions hereof has been duly authorized to do so. Except as expressly provided otherwise in this Agreement, the Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form of, the manner of execution of, or the validity, accuracy or authenticity of any writing, notice, certificate, instruction or instrument deposited with it, nor as to the identity, authority or right of any person executing the same. The Escrow Agent shall not be liable for any action taken, suffered or omitted to be taken by it except to the extent that a final adjudication of a court of competent jurisdiction determines that the Escrow Agent's gross negligence or willful misconduct was the primary cause of any loss to either Party. The Escrow Agent's duties hereunder (including, without limitation, its duties as to the safekeeping, investment and disbursement of moneys in the Equipment Acquisition Fund) shall be limited to those specifically provided herein. 4.02 Lessee and Lessor jointly and severally shall indemnify, defend and save harmless the Escrow Agent from any and all claims, liabilities, losses, damages, fines, penalties and expenses (including out-of pocket and incidental expenses and fe es and expenses of in house or outside counsel) ("Losses") arising out of or in connection with (i) its execution and performance of this Agreement, except to the extent and that such Losses are determined by a court of competent jurisdiction through a final order to have been caused by the gross negligence or willful misconduct of the Escrow Agent, or (ii) its following any instructions or other directions from Lessee or the Lessor, except to the extent that its following any such instruction or direction is expressly forbidden by the terms hereof . The provisions of this Section 4.02 shall survive the termination of this Agreement and the resignation or removal of the Escrow Agent for any reason. The indemnifications set forth herein are intended to and shall include the indemnification of all affected agents, directors, officers and employees of the Escrow Agent. In no event shall the Escrow Agent be liable for special , incidental, punitive, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. 4.03 Lessee and Lessor hereby grant Escrow Agent a first priority security interest in the money and investments held by the Escrow Agent under this Agreement as collateral security for the Page 36 of 59 costs and expenses of the foregoing of Section 4.02 and for any other expenses, costs, fees or charges of any character or nature which may be incurred by the Escrow Agent (including reasonable attorneys' fees and court costs) relating to any suit (interpleader or otherwise) or other dispute arising between Lessee and Lessor as to the correct interpretation of the Lease, this Agreement or any instructions given to the Escrow Agent hereunder, with the right of the Escrow Agent, regardless of the instructions aforesaid, to hold the said property until and unless said expenses, costs , fees and charges shall be fully paid. 4.04 Except as otherwise provided in accordance with Section 2.03 above, if Lessee or Lessor disagree about the interpretation of the Lease or this Agreement, about their rights and obligations under the Lease or this Agreement , or about the propriety of any action contemplated by the Escrow Agent hereunder, then the Escrow Agent may, but shall not be required to, file an appropriate civil action to resolve the disagreement. Les see and Lessor shall pay all costs, including reasonable attorneys' fees, in connection with such action. Unless the Escrow Agent has received a notice of an event of default under the Lease in accordance with Section 2.03 above, if Escrow Agent receives conflicting instructions from the Parties, the Escrow Agent shall be entitled and fully protected in (a) suspending all or any part of its activities under this Agreement until it shall be given a joint written direction executed by Authorized Represen tatives of the Parties which eliminates such conflict or by a final court order or (b) file an action in interpleader. Lessor and Lessee agree to pursue any redress or recourse in connection with any dispute without making the Escrow Agent a party to the same. 4.05 Escrow Agent may execute any of its powers and perform any of its duties hereunder directly or through affiliates or agents. 4.06 The Escrow Agent may consult with counsel of its own choice and shall have full and complete authorization and protection with the opinion of such counsel. The Escrow Agent shall otherwise not be liable for any mistakes of facts or error s of judgment, or for any acts or omissions of any kind unless caused by the Escrow Agent's gross negligence or willful misconduct. None of the provisions contained in this Agreement shall require the Escrow Agent to use or advance its own funds in the performance of any of its duties or the exercise of any of its rights or powers hereunder. SECTION 5. CHANGE OF ESCROW AGENT. 5.01 Upon agreement of the parties hereto, a national banking association or a state bank having capital (exclusive of borrowed capital) and surplus of at least $10,000,000 .00, qualified as a depository of public funds, may be substituted to act as Escrow Agent under this Agreement. Such substitution shall not be deemed to affect the rights or obligations of the parties hereto. Upon any such substitution, the Escrow Agent agrees to assign to su ch substitute Escrow Agent all of its rights under this Agreement. 5.02 The Escrow Agent may resign and be discharged from its duties hereunder at any time by giving thirty (30) calendar days' prior written notice of such resignation to the Lessee and Lessor. The Lessee and Lessor may remove the Escrow Agent at any time by giving thirty (30) calendar days' prior written notice to the Escrow Agent. Upon such notice, a successor escrow agent shall be appointed by the Lessor and Lessee, who shall provide written notice of such to the resigning Escrow Agent. Such successor escrow agent shall become the escrow agent hereunder upon the resignation or removal date specified in such notice. If the Lessor and Lessee are unable to agree upon a successor escrow agent within thirty (30) days after such notice, the Escrow Agent may, in its sole discretion, Page 37 of 59 deliver the Equipment Acquisition Fund to the Lessor at the address provided herein or may apply to a court of competent jurisdiction for the appointment of a successor escrow agent or for other appropriate relief. The costs and expenses (including its att orneys' fees and expenses) incurred by the Escrow Agent in connection with such proceeding shall be paid by the Lessee and Lessor. Upon receipt of the identity of the successor escrow agent, the Escrow Agent shall either deliver the Escrow Property then held hereunder to the successor Escrow Agent, less the Escrow Agent's fees, costs and expenses or other obligations owed to the Escrow Agent to be paid from any interest earned in respect of the Escrow Property, or hold any interest earned in respect of the Escrow Property (or any portion thereof), pending distribution, until all such fees, costs and expenses or other obligations are paid. Upon its resignation and delivery of the Escrow Property as set forth in this Section, the Escrow Agent shall be discharged of and from any and all further obligations arising in connection with the Escrow Property or this Agreement. 5.03 The Escrow Agent may appoint an agent to exercise any of the powers, rights or remedies granted to the Escrow Agent under thi s Agreement, to hold title to property or to take any other action which may be desirable or necessary hereunder. 5.04 Any corporation, association or other entity into which the Escrow Agent may be converted or merged, or with which it may be consolidated, or to which it may sell or otherwise transfer all or substantially all of its corporate trust assets and business to any corporation, association or other entity resulting from any such conversion, sale, merger consolidation or other transfer to which it is a party, ipso facto, shall be and become successor escrow agent hereunder, vested with all other matters as was its predecessor, without the execution or filing of any instrument or any further act on the part of the parties hereto, notwithstanding anything herein to the contrary. SECTION 6. ADMINISTRATIVE PROVISIONS. 6.01 The Escrow Agent shall keep complete and accurate records of all money received and disbursed under this Agreement, which shall be available for inspection by Lessee or Lessor, or the agent of either of them, at any time during regular business hours. 6.02 This Agreement shall be construed and governed in accordance with the laws of the State where Lessee is located. Each Party irrevocably waives any objection on the grounds of venue, forum non-conveniens or any similar grounds and irrevocably consents to service of process by mail or in any other manner permitted by applicable law and consents to the jurisdiction of the courts located in the State where the Lessee is located. To the extent that in any jurisdiction either Party may now or hereafter be entitled to claim for itself or its assets, immunity from suit, execution, attachment (before or after judgment) or other legal process, such Party shall not claim, and hereby irrevocably waives, such immunity. 6.03 The Parties represent, warrant and covenant that each document, notice, instruction or request provided by such Party to Escrow Agent shall comply with applicable laws and regulations. Any provision of this Agreement found to be prohibited by law shall be ineffective only to the extent of such prohibition, and shall not invalidate the remainder of this Agreement. 6.04 This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. Any entity into which the Escrow Agent may be merged or converted or with which it may be consolidated, or any entity to which all or substantially all the escrow business may be transferred, shall be the Escrow Agent under this Agreement without further Page 38 of 59 act. Specifically, the term "Lessor" as used herein means any person or entity to whom Lessor has assigned its right to receive Rent Payments under the Lease and any other payments due to Lessor hereunder from and after the date when a written notice of such assignment is filed with the Escrow Agent. Neither this Agreement nor any right or interest hereunder may be assigned by any Party without the prior consent of Escrow Agent and the other Party; unless the assignment is to JPMorgan Chase & Co., then consent will not be required. 6.05 This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same Agreement. Except as expressly provided in Section 4 above, nothing in this Agreement, whether express or implied, shall be construed to give to any person or entity other than Escrow Agent and the Parties any legal or equitable right, remedy, interest or claim under or in respect of the Equipment Acquisition Fund or this Agreement. 6.06 All signatures of the Parties to this Agreement may be transmitted by a Portable Document Format ("PDF"), and PDF will, for all purposes, be deemed to be the original signature of such Party whose signature it reproduces, and will be binding upon such Party. SECTION 7. SECURITY PROCEDURES. In the event funds transfer instructions are given (whether in writing or by PDF), executed by the appropriate Party or Parties as evidenced by the signatures of the person or persons signing this Agreement or one of their designated persons as set forth in Schedule 2 (each an "Authorized Representative"), and delivered to the Escrow Agent in accordance with Section 9.02, the undersigned is authorized to certify that the signatories on Schedule 2 are specimen signatures of each of their respective Authorized Representatives. The Escrow Agent and the beneficiary's bank in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided by the Lessee or Lessor to identify (i) the beneficiary, (ii) the beneficiary's bank, or (iii) an intermediary bank. The Escrow Agent may apply any of the escrowed funds for any payment order it executes using any such identifying number, even where its use may result in a person other than the beneficiary being paid, or the transfer of funds to a bank other than the beneficiary's bank or an intermediary bank designated. The Lessor and Lessee acknowledge that these security procedures are commercially reasonable. SECTION 8. ESCROW AGENT FEES. $1,500 ("Administration Fee"). As compensation for Escrow Agent's services hereunder, Lessee agrees to pay Escrow Agent the above Administration Fee. If the Administration Fee is payable by Lessee, then Lessee authorizes Escrow Agent either to deduct said Administration Fee from the interest and earnings otherwise payable to Lessee under this Agreement or to bill and collect said Administration Fee at any time. In addition, Lessee agrees to reimburse Escrow Agent for its reasonable out -of-pocket costs and expenses and any extraordinary fees and expenses for performing its obligations hereunder (including, but not limited to, attorney's fees and expenses) and to pay all other amounts expressly due and payable to Escrow Agent hereunder. The Escrow Agent may impose, charge, pass-through and modify fees and/or charges for any account established and services provided by the Escrow Agent, including but not limited to, transactions, maintenance, balance -deficiency, and service fees, agency or trade execution fees, and other charges, including those levied by any governmental authority. Page 39 of 59 fil' SECTION 9. NOTICES. 9.01 Notwithstanding anything to the contrary as set forth Section 9.02, any notices and demands under or related to this document shall be in writing and delivered to the intended Party at its address stated herein. Notice shall be deemed sufficiently given or made (a) upon receipt if delivered by hand, (b) on the Delivery Day after the day of deposit with a nationally recognized courier service, (c) on the third Delivery Day after the day of deposit in the United States mail, sent certified, postage prepaid with return receipt requested, (d) only if to Lessee, on the third Delivery Day after the notice is deposited in the United States mail, postage prepaid, and (e) upon receipt if delivered by confirmed facsimile. "Delivery Day" means a day other than a Saturday, a Sunday, or any other day on which national banking associations are authorized to be closed . Any Party may change its address for the purposes of the receipt of notices and demands by giving notice of such change in the manner provided in this provision. 9.02 Any instructions setting forth, claiming, containing, objecting to, or in any way related to the transfer or distribution of funds, including but not limited to any such funds transfer instructions that may otherwise be set forth in a written instruction permitted pursuant to Section 2 of this Agreement, shall be given to the Escrow Agent in writing, be executed by an Authorized Representative and sent as a PDF attached to an email only. No instruction for or related to the transfer or distribution of the Equipment Acquisition Fund shall be deemed delivered and effective unless Escrow Agent actually shall have received it on a Delivery Day as a PDF attached to an email only at the email address set forth in this Section 9.02 and as evidenced by a confirmed transmittal to the Party's or Parties email address and Escrow Agent has been able to satisfy any applicable security procedures as may be required hereunder. The Escrow Agent shall not be liable to any Party or other person for refraining from acting upon any instruction for or related to the transfer or distribution o f the Equipment Acquisition Fund if delivered to any other fax number or email address, including but not limited to a valid email address of any employee of the Escrow Agent. The Lessor and Lessee acknowledge that there are certain security, corruption, transmission error and access availability risks associated with using open networks such as the internet and the Parties hereby expressly assume such risks. Notices shall be addressed as follows: (i) If to the Lessee: SALT LAKE CITY CORPORATION PO BOX 145451 451 S. STATE Rm 248 SALT LAKE CIT¥1.. 84114-5451 Attn: RUSSELL Surlj.uOUIST Telephone: 801-535-6460 Cell: 801-655-1681 Email: Russell.Sundguist@slcgov.com (ii) If to the Lessor: JPMORGAN CHASE BANK, N.A. 1111 POLARIS PARKWAY, SUITE 4N MAIL CODE OHl-1085 COLUMBUS, OHIO 43240 Attention: GHHN Operations Manager Email: cefi.escrow.disbursement.request@jpmchase.com (iii) If to the Escrow Agent: DEUTSCHE BANK TRUST COMPANY AMERICAS Page 40 of 59 60 WALL STREET, 24th Floor NEWYORK,NY 10005 Attn: DBNY MP Escrow #----- Telephone: 212-250-6647 Email: dbny-mpescro\\ a list.db.com SECTION 10. FORCE MAJEURE. Notwithstanding any other provision of this Agreement, no Party to this Agreement is liable to any other Party for losses due to, or if it is unable to perform its obligations under the terms of this Agreement because of acts of God, war, terrorism, fire , floods, strikes, electrical outages, equipment or transmission failures, or other causes reasonably beyond its control. SECTION 11. JURY WAIVER. ALL PARTIES TO THIS AGREEMENT WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTER CLAIM BROUGHT BY ANY PARTY AGAINST ANOTHER PARTY ON ANY MATIER WHATSOEVER ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY RELATED TO THIS AGREEMENT. SECTION 12. MISCELLANEOUS. 12.01 Patriot Act Section 326 Customer Identification Program. In order to comply with the laws, rules, regulations and executive orders in effec t from time to time applicable to banking institutions, including, without limitation, those relating to the funding of terrorist activities and money laundering, including Section 326 of the USA PA TRIOT Act of the United States ("Applicable Law"), the Escrow Agent are required to obtain, verify, record and update certain information relating to individuals and entities which maintain a business relationship with the Escrow Agent. Accordingly, each of the parties agree to provide to the Escrow Agent , upon their request from time to time such identifying information and documentation as may be a vailable for such party in order to enable the Escrow Agent to comply with Applicable Law. 12.02 Taxpayer Identification Numbers ("TINs"). The other Parties have provided the Escrow Agent with their respective fully executed Internal Revenue Service ("IRS") Form W -8, or W- 9 and/or other required documentation . The other Parties each represent that its correct TIN assigned by the IRS, or any other taxing authority, is set forth in the delivered forms. 12.03 Tax Reporting. All interest or other income earned under the Agreement shall be allocated to the Lessee and reported by the Escrow Agent to the IRS , or any other taxing authority, on IRS Form 1099 or 1042S (or other appropriate form) as income earned from the Equipment Acquisition Fund by the Lessee whether or not said income has been distributed during such year . The Lessor and Lessee hereby represent to the Escrow Agent that no other tax reporting of any kind is required given the underlying transaction giving rise to this Agreement. Escrow Agent shall withhold any taxes it deems appropriate, including but not limited to required withholding, in the absence of proper tax documentation or as required by law, and shall remit such taxes to the appropriate authorities. 12.04 Court Orders. In the event that any of the Equipment Acquisition Fund shall be attached, garnished, levied upon, or otherwise be subject to any court order, or the delivery thereof Page 41 of 59 shall be stayed or enjoined by an order of a court, the Escrow Agent is hereby expressly authorized, in its sole discretion, to obey and comply with all such orders so entered or issued, which it is advised by legal counsel of its own choosing is binding upon it, whether with or without jurisdiction, and in the event that the Escrow Agent obeys or complies with any such order it shall not be liable to any of the Parties hereto or to any other person by reason of such compliance notwithstanding such order be subsequently reversed, modified, annulled, set aside or vacated. Section 13. USE OF ELECTRONIC RECORDS AND SIGNATURES BY ESCROW AGENT (a) Notwithstanding any other provision of this Agreement, in such format and delivered in such manner as Lessor may specify, this Agreement, and any notice, consent, amendment, communication, or other document or information provided for herein or related to the Escrow Agreement (collectively, "Documents"), including without limitation any Document required to be written or in writing, may be in the form of an electronic record ("Electronic Record"). Electronic Records and "Electronic Signatures" (as that term is defined under the New York Electronic Signatures and Records Act, N.Y. Laws SIT - State Technology Article 3, and, to the extent applicable, the federal ESIGN Act, 15 U.S.C. § 7001 et seq.) may be used by Escrow Agent in place of written documents and handwritten signatures. Any Document may be executed in as many counterparts as necessary or convenient, including both counterparts that are executed on paper and counterparts that are Electronic Records and executed by Escrow Agent using Electronic Signatures. Each executed counterpart shall be deemed an original, and all such counterparts shall constitute one and the same Document. (b) Notwithstanding any other provision of the Escrow Agreement, Electronic Records may be sent electronically by Lessor to Escrow Agent by sending the Electronic Record to Escrow Agent's Authorized Email Address as an attachment to an email. In the absence of actual notice of non- delivery received by the sender, and except as otherwise expressly required by applicable law, an Electronic Record sent electronically pursuant to the Escrow Agreement shall be deemed given when the Electronic Record is sent and shall constitute notice of the Electronic Record. As used in this subparagraph, "Authorized Email Address" means any email address Escrow Agent provides to Lessor as Escrow Agent' email address or the email address of Escrow Agent's authorized representative, including as provided in any authorization or certification provided by Escrow Agent to Lessor. (c) Lessor and Lessee will accept Electronic Signatures from Escrow Agent generated only through the electronic signature platform of DocuSign, Inc. ("DocuSign"). Any Document consisting of an Electronic Record bearing Electronic Signatures executed through DocuSign (an "Electronically Signed Document") must, when viewed in a PDF viewer, produce a signature panel evidencing the document has not been modified since the signature was applied ("Signature Panel") and must include a certificate of completion providing details about each signer on the document, which may include the signer's IP address, email address, signature image and timestamp ("Certificate of Completion"). In choosing not to use (or, in the case of encryption, not having the capability to use) any one or more security features ofDocuSign, Escrow Agent accepts the risks associated with not using such security measures. Escrow Agent shall be liable for any loss or costs suffered by Lessor or Lessee as a result of not using such security measures. Any Electronically Signed Document that (i) contains the Certificate of Completion and (ii) shows that the email address of the signer contained in the Certificate of Completion is an Authorized Email Address previously provided to Lessor by Escrow Agent (or Lessor has otherwise received a verification email from such Authorized Email Address) for an Authorized Signer (defined below), is prima-facie evidence of it having been executed by the person whose electronic signature appears thereon, regardless of the appearance or form of such electronic signature. Escrow Agent agrees that an Electronically Signed Document shall be deemed to have the same effect as an original Document manually signed by an Authorized Signer. Page 42 of 59 (d) Lessor and Lessee will accept delivery from Escrow Agent of Electronically Signed Documents (i) which conform to the parties' negotiated and agreed terms and the requirements herein , and (ii) which were created and sent by Escrow Agent acting on Lessor's behalf as its designated custodian solely for purposes of Section 9-105 of the Uniform Commerc ial Code (" Designated Custodian") until receipt of delivery by Lessor of the Document. L essor, Lessee and Escrow Agent agree that the copy of an Electronically Signed Document received by Lessor from Escrow Agent is the authoritative electronic copy of such Electronic Record (each an "Authoritative Copy"). Notwithstanding anything to the contrary herein, Lessor shall have the righ t to reject for any reason any Electronically Signed Document received from Escrow Agent, including by way of example and not limitation , any failure of such Document to conform as provided here in, and may require Escrow Agent to execute and deliver such Document on paper. Upon receipt and acceptance of the executed Authoritative Copy by Lessor, Escrow Agent shall decommission, permanently mark as a copy that it is not the Authoritative Copy, or otherwise render inactive or inaccessible all copies of the Documents held by Escrow Agent as Designated Custodian and certify the same as part of the transmittal to Lessor. (e) At the Lessor ' s option, an Authoritative Copy of the Document may be converted to paper and marked as the original by the Lessor (each a "Paper Original"). In the event the Authoritative Copy is converted to a Paper Original, the parties hereto acknowledge and agree that: a. the electronic signing of the Document also constitutes issuance and delivery of the Paper Original, b. the Electronic Signature(s) associated with the Document, when affixed to the Paper Original, constitutes legally valid and binding signatures on the Paper Original, and c. the Escrow Agent's obligations will be evidenced by the Paper Original after such conversion. (f) Escrow Agent will separately provide Lessor with documentation (i) showing or certifying the authority of its authorized signers ("Author ize d Signers") to sign documents on behalf of Escrow Agent and (ii) containing the correct name, Authorized Email Address, and telephone numbers for each Authorized Signer ("Authori ty Documents "). Escrow Agent represents and warrants that the information contained in the Authority Documents is accurate and complete, and that the Escrow Agent will promptly notify Lessor if there are any changes to the Authority Documents, including if an Authorized Signer' s authority is modified or revoked. Lessor is authorized to rely on the information set forth in the Authority Documents until it receives and has had a reasonable time to act on such notice . The Lessor has no obligation to verify whether the Electronic Signature for any Authorized Signer in an Electronically Signed Do cument matches the specimen signature held by the Lessor, the name, or other information or characteristic of the Authorized Signer, or otherwise verify in any way that the Electronically Signed Document was actually executed by that Authorized Signer. (g) Escrow Agent represents and warrants on a continuous basis that (i) Electronically Signed Documents shall be deemed to have the same effect as an original document manually signed by an Authorized Signer; and (ii) each Electronically Signed Document has be en validly executed by duly Authorized Signer(s) in accordance with the requirements ofapplicable law and, to the extent relevant, the Escrow Agent' s organizational documents; (iii) each Electronically Signed Document constitutes a valid, legal, enforceable and binding obligation of the Escrow Agent; and (iv) each Electronically Signed Document consisting the Document was created and delivered by Escrow Agent to Lessor in Escrow Agent ' s capacity as Designated Custodian. The Escrow Agent acknowledges that the Lessor and Lessee has relied on the foregoing representations and warranties when accepting Electronically Signed Documents . The Escrow Agent confirms that each Electronically Signed Document constitutes an Electronic Record established and maintained in the ordinary course of business and an original written record when printed from electronic files. Such printed copies will be treated to the same extent and under the same conditions as other original business records created and maintained in documentary form. The Escrow Agent represents and warrants that it has commercially reasonable policies and procedures intended to prevent unauthorized access to email messages delivered to any Page 43 of 59 Authorized Signer at the Authorized Signer' s business email address, which include the following : (i) each Authorized Signer is assigned a unique business email address; (ii) the Authorized Signer' s access to the business email account requires at least the use of a unique username and password; and (iii) the Authorized Signer is required to maintain the security of the log-in password and other security used to access the business email account and not to reveal them to any other person. (h) Lessor assumes no responsibility or liability arising from the transmission, treatment or storage of any data by any e-signature platform, including, without limitation, any personal data. In consideration of the Lessor and Lessee accepting Electronically Signed Documents, the Escrow Agent indemnifies and holds the Lessor and Lessee, and their agents, employees, officers and directors, harmless from and against any and all claims, damages, demands,judgments, liabilities, losses, costs and expenses (including attorneys ' fees) arising out of or resulting from the Lessor's or Lessee's reliance on this Agreement or on an Electronically Signed Document executed on behalf of the Escrow Agent. IN WITNESS WHEREOF, the parties have executed this Agreement. SALT LAKE CITY CORPORATION (Lessee) By: Titl e: JPMORGAN CHASE BANK, N.A. (Lessor) By: Title: Authorized Officer DEUTSCHE BANK TRUST COMPANY AMERICAS, as escrow agent (Escrow Agent) By: Titl e: DEUTSCHE BANK TRUST COMPANY AMERICAS, as escrow agent (Escrow Agent) By --------------- - Title: Attachments: Schedule 1 (Investment Authorization) Schedule 2 (Name/telephone# of call-back person(s) designated by Section 7 above) Page 44 of 59 SCHEDULE 1 Investment Authorization Lessee: Lease No.: SALT LAKE CITY CORPORATION 1000:XXXXXX Investment: SELECT QUALIFIED INVESTMENT BELOW [ ] During the term of this Agreement, the Equipment Acquisition Fund shall remain in a Non-Interest Bearing Account. [ ] A money market mutual fund, including without limitation a JPMorgan Money Market Mutual Fund (collectively, "MMMF"), as selected by Lessee below. Check One (if the money market mutual fund option is selected above): _ JPMorgan 100% U.S. Treasury Securities Money Market Fund (675) JPMorgan U.S. Government Money Market Fund Morgan Shares (3916) _ JPMorgan U.S. Treasury Plus Money Market Fund Morgan Shares (3919) _ JPMorgan Federal Money Market Fund Morgan Shares (353) JPMorgan 100% U.S. Treasury Money Market Fund Morgan Shares (677) _ JPMorgan Tax Free Money Market Fund Morgan Shares (2) _ Federated U.S. Treasury Cash Reserves Money Market Fund Institutional Service Shares (632) _ Federated Government Obligations Tax -Managed Money Market Fund Institutional Service Shares (637) Federated Treasury Obligations Money Market Fund Institutional Service Shares (398) _ Federated Government Obligations Money Market Fund Institutional Service Shares (395) Notes related to MMMFs: 1) An investment in any of the above investment options is subject to the availability of such money market mutual fund. If the selected investment is not available at the present time you will be contacted by a Deutsche Bank Trust Company Americas representative. 2) Each investment instrument above has a rating not lower than the highest rating categ ory from both Standard & Poor's and Moody's. 3) Lessee acknowledges that an affiliate of Escrow Agent, Deutsche Bank Trust Company Americas, serves as investment manager for the selected MMMF and receives fees from the invested funds for services rendered separate from the fees for services rendered by Escrow Agent as further provided within this Agreement. MMMFs have rates of compensation that may vary from time to time based upon market conditions. The Escrow Agent shall not be responsible or liable for any loss suffered in connection with any investments of moneys made by it in accordance with Section 3 of the Agreement. Page 45 of 59 4) The Lessee, hereby acknowledges and confirms that it makes its own investment decisions and has not been offered any advice or recommendat ion on investing in any MMMF and if selected above, is based upon Lessee's independent review of prospectuses previously delivered to Lessee. The Lessee recognizes and agrees that the Escrow Agent has not and will not provide supervision, recommendations or advice relating to either the investment of moneys held in the Equipment Acquisition Fund account or the purchase, sale, retention or other disposition of any Qualified Investment. 5) Market values, exchange rates and other valuation information (including without limitation, market value, current value or notional value) of any MMMF furnished in any report or statement may be obtained from third party sources and is furnished for the exclusive use of the Lessee and Lessor. Escrow Agent has no responsibility whatsoever to determine the market or other value of any MMMF or other non-cash Qualified Investments and makes no representation or warranty, express or implied, as to the accuracy of any such valuations or that any values necessarily reflect the proceeds that may be received on the sale of an MMMF or such Qualified Investments. 6) SHAREHOLDER SERVICES FEES: Lessee acknowledges that the Fund is authorized to make payments from its management fee or any other source available to parties such as banks or broker-dealers ("Service Organizations") that provide shareholder support services to the Fund and that Service Organizations currently are compensated at a rate of up to the Maximum Rate of .50% annually of the average net assets of each Fund with respect to which they provide or have provided shareholder support services. Lessee further acknowledges that Deutsche Bank Trust Company Americas is a Service Organization and is paid, and hereby consents to such payment, by the Fund up to the Maximum Rate annually of the average daily balance of the Account invested in the Fund for shareholdersupport services rendered to the Fund by Deutsche Bank Trust Company Americas, which services may include, without limitation, answering client's inquiries regarding the Fund, assistance to clients in changing dividend options, account designations and addresses, processing purchase and redemption transactions, providing periodic statements showing a client's account balance and the integration of such statement with other transactions, arranging for Deutsche Bank Trust Company Americas wires, and providing such o ther information and services as the Fund's distributor or Lessee reasonably may request. Lessee further acknowledges that the Fund may purchase securities from or through Deutsche B ank Trust Company Americas or its affiliates, may engage in repurchase transactions with Deutsche Bank Trust Company Americas or its affiliates, may place funds on deposit in accounts with Deutsche Bank Trust Company Americas or its affiliates and receive interest income thereon and may obtain other services from Deutsche Bank Trust Company Americas for which Deutsche Bank Trust Company Americas is paid a fee. This investment authorization and direction will remain in effect until and unless expressly revoked or superseded in writing and shall specify the type and identity of the investments to be purchased and/or sold. Page 46 of 59 SCHEDULE 2 Telephone Number(s) and Signature(s) for Person(s) Designated to Give Funds Transfer Instructions If from Lessee: Name Telephone Number Signature 1. 2. 3. If from Lessor: Name Telephone Number Signature 1. Stacey R. Roth 614-213-1537 (Standing Signature on File) 2. Karen L Williams 312-385-7005 (Standing Signature on File) 3. Anastasia L. McClellan 614-213-4876 (Standing Signature on File) 4. Terri E. Sayers 614-213-4521 (Standing Signature on File) 5. Cherie L. Oliveto 614-213-3246 (Standing Signature on File) 6. Mary T. Short 614-213-4881 (Standing Signature on File) 7. Kris Hewitt 614-213-8581 (Standing Signature on File) 8. Kelsey A. Bruck 614-213-9516 (Standing Signature on File) 9. Meron Gola 614-217-4670 (Standing Signature on File) 10. Teri L. Fancelli 614-213-2270 (Standing Signature on File) 11. Ruhe, Nathaniel J. 614-213-3859 (Standing Signature on File) 12. Mullennix, Debbie J. 614-213-5797 (Standing Signature on File) Page 47 of 59 13. Lourdes Roman 312-732-6444 (Standing Signature on File) 14. Kerry Stygler 614-213-4400 (Standing Signature on File) All instructions, including but not limited to funds transfer instructions, whether transmitted by facsimile or set forth in a PDF attached to an email, must include the signature of the Authorized Representative authorizing said funds transfer on behalf of the Party. Page 48 of 59 SCHEDULE A-1 (Equipment List) Expected Equipment Purchase $0.00 Price: Net Amount Financed: $0.00 Equipment Location: Equipment Description: TOGETHER WITH ALL ATTACHMENTS, ADDITIONS , ACCESSIONS, PARTS, REPAIRS, IMPROVEMENTS , REPLACEMENTS AND SUBSTITUTIONS THERETO. This Schedule A-1 is attached to the Lease Schedule lO00xxxxxx or a Receipt Certificate/Payment Request relating to the Lease Schedule. Page 49 of 59 EXHIBIT "M" ESCROW FUNDING SCHEDULE ADDENDUM AND ARBITRAGE CERTIFICATE Dated as of: Lease Schedule No.: CONTRACT NO. 01-1-21-3000 Lessee: Escrow Agent: SALT LAKE CITY CORPORATION JPMORGAN CHASE BANK, N.A. Escrow Agreement dated as of: Amount To Be Deposited Into Escrow: $ ("Lessor's Deposit") Reference is made to the above Lease Schedule ("Schedule") to the Master Lease-Purchase Agreement identified in the Schedule ("Master Lease") by and between JPMORGAN CHASE BANK, N.A.("Lessor") and the above lessee ("Lessee"). As used herein, "Lease" shall mean the Schedule and the Master Lease, but only to the extent that the Master Lease relates to the Schedule. This Addendum amends and modifies the terms and conditions of the Lease and is hereby made a part of the Lease. Unless otherwise defined herein, capitalized terms defined in the Master Lease shall have the same meaning when used herein. NOW, THEREFORE, as part of the valuable consideration to induce the execution of the Lease, Lessor and Lessee hereby agree to amend the Lease as follows: 1. Lessee and Lessor together with the above Escrow Agent ("Escrow Agent") have entered into the above Escrow Agreement ("Escrow Agreement") establishing a fund ("Equipment Acquisition Fund") from which the Purchase Price of the Equipment will be paid. 2. Lessor shall deposit such amount into escrow as is required by the Escrow Agreement, which amount shall be credited to the Equipment Acquisition Fund. Lessee shall pay the balance of the Purchase Price of the Equipment, either by deposit in escrow to the Equipment Acquisition Fund or by direct payment to the Suppliers of the Equipment. 3. The Lease Term of the Lease shall commence on the earlier of the date specified in the Payment Schedule to the Schedule or the date of Lessor's deposit of funds into the Equipment Acquisition Fund. Notwithstanding the statements regarding delivery and acceptance of the Equipment in the Schedule, the parties acknowledge that the Equipment will be accepted as provided in the Escrow Agreement. 4. The delivery of documents and the satisfaction of any other conditions required by the Escrow Agreement or this Addendum shall be additional Funding Conditions for the Lease. 5. Upon Lessee's execution of the Escrow Agreement, Lessee hereby represents and warrants to Lessor that: (a) Lessee has full power, authority and legal right to execute and deliver the Escrow Agreement and to perform its obligations under the Escrow Agreement; (b) the Escrow Agreement has been duly executed and delivered by Lessee and constitutes a legal, valid and binding obligation of Lessee, enforceable in accordance with its terms; and (c) the Escrow Agreement is authorized under, and the authorization, execution and delivery of the Escrow Agreement complies with, all applicable federal, state and local laws and regulations (including, but not limited to, all open meeting, public bidding and public investment laws) and all applicable judgments and court orders. 6. The opinion of Lessee's legal counsel will include statements to the same effect as the representations of Lessee in paragraph 5 above. Page 50 of 59 7. It shall be an additional event of default under the Lease if Lessee fails to pay or perform any of its obligations under the Escrow Agreement or this Addendum or if any of the represent ations of Lessee in the Escrow Agreement or this Addendum prove to be false, misleading or erroneous in any material respect. 8. ARBITRAGE CERTIFICATE. The authorized representative of Lessee who executes this Addendum hereby certifies that he/she is the duly qualified and acting representative of Lessee with the title set forth below his/her signature hereon; that Lessee has executed and delivered the Schedule and the Master Lease (collectively , the "Lease"); that Lessee is a political subdivision of the State identified in the Lease; and that in his/her official capacity as such officer he/she is responsible for executing and delivering , on behalf of the Lessee, the Lease and this Addendum. This paragraph of this Addendum (hereinafter, this paragraph shall be identified as the "Arbitrage Certificate") is being issued by Lessee as a "no arbitrage certificate" pursuant to Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and Treasury Regulations, Sections 1.148-0 through 1.148.11 (the "Regulations"). Lessee represents and warrants to Lessor that the following facts, estimates and circumstances are in existence on the date of this Arbitrage Certificate or are reasonably expect to occur hereafter. (a) The Lease provides for the lease of the Equipment described in the Lease by Lessor to Lessee. Under the Lease, Lessee is required to make Rent Payments with respect to the Equipment, comprising principal and interest, on the dates and in the amounts stated in the Payment Schedule to the Lease. (b) Pursuant to the Lease and for the purpose of meeting its obligations thereunder and assuring the Lessee of the availability of monies needed to pay the cost of the Equipment when due, Lessee, Lessor and the Escrow Agent have executed the Escrow Agreement. (c) Contracts or purchase orders providing for the acquisition and delivery of the Equipment have been issued by Lessee to Equipment Vendors therefore and the Equipment will be acquired and installed with due diligence. Based upon the provisions of the contracts or purchase orders, the Equipment will be acquired and installed no later than eighteen (18) months from the date of the Escrow Agreement ("Funding Expiration Date"). (d) The Escrow Agreement provides that Lessor shall deposit the Lessor's Deposit into escrow to be credited to the Equipment Acquisition Fund created by the Escrow Agreement and utilized to pay for the Equipment as provided therein. It is presently expected that all such funds initially credited to the Equipment Acquisition Fund shall be disbursed to pay for the Equipment, but any such amounts ultimately determined not to be needed for such purposes and the interest earnings on the amounts held in escrow shall be utilized on or after the Funding Expiration Date to pay part of the principal due under the Lease, as provided in the Escrow Agreement. (e) All of the spendable proceeds of the Lease will be expended on the Equipment and related expenses on or before the Funding Expiration Date. (t) The original proceeds of the Lease, and interest to be earned thereon, do not exceed the amount necessary for the purpose for which the Lease is issued. (g) The interest of Lessee in the Equipment has not been and is not expected during the term of the Lease to be sold or disposed of by Lessee. (h) No sinking fund is expected to be created by Lessee with respect to the Lease and Rental Payments. (i) Lessee represents , warrants and covenants to one of the following statements of this clause (i) as is initialed by Lessee below [and if Lessee fails to initial its selection, then subclause (A) shall be deemed to have been selected by Lessee]: (A) 100% of the proceeds of the Lease shall be paid for the acquisition of the Equipment within 18 months of the date of the Escrow Agreement in accordance with the following schedule: No les s than 15% within 6 month s of the date of the Escrow Agreement; No less than 60% within 12 months of the date of the Escrow Agreement; and No less than 100% within 18 month s of the date of the Escrow Agreement. Page 51 of 59 (B) 100% of the proceeds of the Lease shall be paid for the acquisition of the Equipment within 6 months of the date of the Escrow Agreement. (C) Lessee qualifies for the "small issuer" exe mption in section 148(f)(4)(D) of the Code because all of the following are true: (1) Lessee is a governmental unit with general taxing powers , and (2) the Lease is not a "private activity bond" as defined in Section 141 of the Code, and (3) 95% or more of the proceeds of the Lease shall be used for the governmental activities of Lessee, and (4) the aggregate face amount of all tax exempt bonds and other tax exempt obligations (other than "private activity bonds") issued by Lessee (and any subordinate entities of Lessee as contemplated by Section 148(f) of the Code) during the calendar year in which the Lease is issued is not reasonably expected to exceed $5,000,000.00. U) Lessee hereby covenants that Lessee shall comply with all of the requirements of the Code and Regulations relating to the rebate of arbitrage profit to the United States of America (including, without limitation Section 148(f) of the Code) and will rebate to the United States of America all arbitrage profit required thereby. (k) To the best of the knowledge and belief of the unde rsigned, the expectations of Lessee, as set forth above, are reasonable; and there are no present facts , estimates and circumstances which would change the foregoing expectations. (I) Lessee has not been notified of the listing or proposed listing of it by the Internal Revenue Service as an issuer whose arbitrage certificates may not be relied upon. 9. If there is a partial prepayment of principal pursuant to the terms of either clause (b) of Section 2.04 second of the Escrow Agreement or clause (b) of Section 2.05 second of the Escrow Agreement, then in addition to the payment of the Partial Principal Amount , Lessee shall also pay to Lessor a break funding premium equal to the amount, if any, by which (i) the present value of all Remaining Payments (as defined below) discounted to the date of said partial prepayment of principal (the "Prepayment Date") at a rate equal to the Interest Rate Swap rate having a term to maturity nearest to the remaining Average Life (as defined below) of the Schedule as reported on the Federal Reserve H.15 report as of the business day preceding the Prepayment Date exceeds (ii) the presen t value of all Remaining Payments discounted to the Prepayment Date at a rate equal to the Interest Rate Swap rate having a term to maturity nearest to the original Average Life of the Schedule as reported on the Federal Reserve H.15 report as of the Commencement Date of the Schedule , said amount further multiplied by the Partial Prepayment Fraction (as defined below). "Remaining Payments" means all remaining installment payments and all other amounts (including, without limitation, any balloon payment and any other payments required to be paid by Lessee at the end of the Lease Term of the Schedule) payable under the Schedule after such Prepayment Date to the end of the Lease Term of the Schedule. "Average Life" means the average duration of the original or remaining (as the case may be) principal payments included in the installment payments and any balloon payment payable under the Schedule weighted by the amount of the principal payments. "Partial Prepayment Fraction" is a fraction in which the numerator is the Partial Principal Amount and the denominator is the remaining principal balance of the Schedule as of the Prepayment Date. If the Federal Reserve Board ceases publication of Interest Rate Swap rates in its Federal Reserve H.15 report or a similar repo rt, then Lessor shall select an alternate publication for interest rate swap information in its reasonable discretion. 10. Except as expressly amended by this Addendum and other modifications signed by Lessor, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first referenced above. SALT LAKE CITY CORPORATION (Lessee) By: _ T itle : _ JPMORGAN CHASE BANK, N.A. (Lessor) By: _ Title: Authorized Officer Page 52 of 59 EXHIBIT "N" CONTRACT NO. 01-1-21-3000 ESCROW RECEIPT CERTIFICATE/PAYMENT REQUEST Dated: _, 20 Lease Schedule No: Escrow Agreement Dated: 1. The undersigned Lessee of the above Lease Schedule and its Master Lease -Purchase Agreement (collectively, the "Lease") hereby acknowledges receipt in good condition of all of the Equipment described on Schedule A-1 to this Receipt Certificate/Payment Request as of the following Acceptance Date and hereby confirms that the Equipment has been installed at the following location: Acceptance Date: _ Equipment Location: See Attached Schedule A-1 ********* FINAL REQUEST: Yes OR No (Please Circle Choice)******** If this is the FINAL REQUEST Lessee hereby confirms that said Equipment together with all other property covered by Receipt Certificates delivered prior to this Receipt Certificate represents all of the Equipment to be subject to the Lease. 2. Lessee agrees that (a) the undersigned Lessor has no t selected, manufactured, sold or supplied any of the Equipment, (b) Lessee has selected all of the Equipment and its suppliers, and (c) Lessee has received a copy of, and approved, the purchase orders or purchase contracts for the Equipment. 3. AS BETWEEN LESSEE AND LESSOR, LESSEE AGREES THAT: (a) LESSEE HAS RECEIVED, INSPECTED AND APPROVED ALL OF THE EQUIPMENT; (b) ALL EQUIPMENT IS IN GOOD WORKING ORDER AND COMPLIES WITH ALL PURCHASE ORDERS OR CONTRACTS AND ALL APPLICABLE SPECIFICATIONS; (c) LESSEE IRREVOCABLY ACCEPTS ALL EQUIPMENT FOR PURPOSES OF THE LEASE "AS -IS, WHERE-IS" WITH ALL FAULTS; AND (d) LESSEE UNCONDITIONALLY WAIVES ANY RIGHT THAT IT MAY HAVE TO REVOKE ITS ACCEPTANCE OF THE EQUIPMENT. 4. Lessee and Lessor hereby request that the Escrow Agent identified in the above Escrow Agreement pay from the Equipment Acquisition Fund established under the Escrow Agreement to each party designated below as Payee, the amount stated below in payment of all or part of the Purchase Price (as such term is used in the Escrow Agreement) as stated below . Lessee hereby confirms that said amount is due and payable under a purchase order or contract relating to the Equipment described herein and has not formed the basis of any prior request for payment. Page 53 of 59 Amount: $ _ Wire Instructions: Payee #1: Name: Address: Invoice Number: Date: _ Amount: $ Wire Instructions: Name of Bank: ABANo: Account Number: Payee #2: Name: Address: Invoice Number: Date: Amount: $ Wire Instructions: Name of Bank: ABANo: Account Number: Payee #3: Name: Address: Invoice Number: Date: Page 54 of 59 SALT LAKE CITY CORPORATION (Lessee) JPMORGAN CHASE BANK, N.A. (Lessor) By: By: Title: Title:Authorized Officer Contact #1: Name: Title: Direct Telephone: General Telephone: Contact Signature: Name of Bank: ABA No: Account Number: 5. If this is a Final Request, then this Receipt Certificate/Payment Request shall constitute a Full Funding Notice and if any funds remain in the Equipment Acquisition Fund established pursuant to the Escrow Agreement (including any remaining amount of the Lessor's Deposit and/or any earnings thereon; collectively referred to as the "Escrow Balance"), then Lessee hereby directs Escrow Agent to pay the Escrow Balance as follows: (a) to Lessee if the Escrow Balance is less than $500.01; and (b) otherwise to Lessor and Lessor is hereby authorized to apply the Escrow Balance as follows: (i) If Escrow Balance is less than interest paid on the Lease during the previous 18 months the Escrow Balance will be reimbursed to the Lessee (ii) if the Escr ow Balance is equal to or less than the next Rent Payment due under the Lease, apply the Escrow Balance to said Rent Payment; or (iii) if the Escrow Balance is greater than the next Rent Payment due under the Lease, apply the Escrow Balance as a partial prepayment of principal under the Lease and Lessor is authorized to send a revised Payment Schedule for the Lease that reflects said prepayment. 6. Lessee will confirm wire instructions by telephone (if required by Lessor) by designating an Authorized Contact ("Contact") for Lessee below. This Contact must be someone who has the requisite knowledge to verify the instructions outlined above AND must be someone other than the authorized signer hereto. Lessee should consider designating more than one Contact to avoid funding delays. Page 55 of 59 Contact #2: Name: Title: Direct Telephone: General Telephone: Contact Signature: Page 56 of 59 SCHEDULE A-1 Equipment Description (This Schedule A-1 is attached to a Receipt Certificate /Payment Request relating to the Lease Schedule.) Lease Schedule No: dated Month xx, 2021 The Equipment described below includes all attachments , additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. Equipment Location: Equipment Description: Page 57 of 59 CONTRACT NO. 01-1-21-3000 EXHIBIT "0" IRS Form 8038 / G (supplied by Lessor) Page 58 of 59 EXHIBIT "P" PROCEEDS DISBURSEMENT AUTHORIZATION CHASE EQUIPMENT FINANCE, INC. 1111 Polaris Parkway, Suite A3 (OH1-1085) Columbus, OH 43240 CONTRACT NO. 01-1-21-3000 Date: 20_ Re: Disbursements Of Proceeds Under The LEASE PURCHASE AGREEMENT Referred To Below Reference is made to that certain Lease Purchase Agreement Referred to Below dated ,20 between SALT LAKE CITY CORPORATION, ("Lessee") and JPMORGAN CHASE BANK, N.A.(the "Lessor")- / hereby instruct you and authorize you to disburse $0.00 to the account number(s) as specified below: Wire: Name of Bank: ABANo.: Payee #1 Account Number: Account Name: Amount: Re: Check: Name of Vendor: Address: City/State/Zip Invoice#: Amount: By signing below, Lessee authorizes Lessor to issue checks or direct fund transfers to the payees, in the amounts, and per the instructions (if applicable) set forth above. Lessee also acknowledges that it may be responsible for paying other fees directly to third parties, such as Lessor's counsel, and making other disbursements in connection with the lease transaction per the terms of the lease documents. Lessor may rely and act on the instructions set forth herein and shall not be responsible for the use or application of the funds, and Lessee shall indemnify, defend and hold harmless Lessor from and against any and all losses, costs, expenses, fees, claims, damages, liabilities, and causes of action in any way relating to or arising from acting in accordance therewith. Nothing herein shall be construed to require the Lessee to indemnify Lessor against Lessor's own negligence. In the event of any conflict with any other instruction set forth herein, the ABA # and Account # shall control. IN WITNESS WHEREOF, the Lessee has caused this Proceeds Disbursement Authorization to be executed as of the day and year first above written. SALT LAKE CITY CORPORATION (Lessee) By: _ Title:. _ Page 59 of 59 EXHIBIT "Q" CONTRACT NO. 01-1-15-8065 Request for Tax Payer Identification Number and Certificate (W9) (supplied by Lessee) Salt Lake City Corporation Contract Activation Contract Nbr:01 1 21 3000 Title: MASTER LEASE Status: A City Wide: N Vendor 43436 JP MORGAN CHASE BANK NA Dept Contact: TERESA BECKSTRAND 535-6416 Starts: Ends: Term: Units: Limit: $0.00 Contract Activation was successful. Signature: Email:Garrett.Danielson@slcgov.com Salt Lake City Corporation Contract Activation Contract Nbr:01 1 21 3000 Status: A City Wide: N Title: MASTER LEASE Vendor 43436 JP MORGAN CHASE BANK N A Dept Contact: TERESA BECKSTRAND 535-6416 Starts: Ends: Term: Units: Limit: 0.00 Contract Activation was successful. Item H3 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 MOTION SHEET CITY COUNCIL of SALT LAKE CITY TO: City Council Members FROM: Nick Tarbet Policy Analyst DATE: November 9, 2021 RE: Annexation: 2350 North Rose Park Lane PLNPCM2021-01124 MOTION 1 I move the Council accept a petition to annex a parcel of land at 2350 north rose park lane for further consideration. MOTION 2 I move the Council deny a petition to annex a parcel of land at 2350 north rose park lane for further consideration. COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Nick Tarbet, Policy Analyst DATE: November 9, 2021 RE:Annexation: 2350 North Rose Park Lane PLNPCM2021-01124 PROJECT TIMELINE: Briefing: Nov 9, 2021 Set Date: Public Hearing: Potential Action: Nov 9, 2021 ISSUE AT-A-GLANCE The Council will receive a briefing about the Hunter Stables annexation application and petition located at approximately Rose Park Lane and 2350 North. The City Council has 14 days from the date of receipt by the Recorder’s office to accept or deny the Petition, which includes the application. If no action is taken within the 14-day window, the Petition will be considered accepted. Accepting the Petition is not approval of the annexation request. Acceptance begins the next step in the annexation process which includes notices sent to property owners, a protest period and the final consideration by the Council. The designation of the zoning of the property will be considered throughout the process and defined in the ordinance considered by the Council. The Council has the option to request Planning Commission review in their public meeting, with a request for a recommendation on the proposed annexation and zoning. See next page for policy questions. Page | 2 POLICY QUESTIONS The Council may wish to ask the Administration what happens with the petition if the Council denies it acceptance. If accepted, does the Council wish to request the Planning Commission review the petition as part of the public process and forward a recommendation to the City Council? If accepted, does the Council wish to request the Planning Staff review and forward options for appropriate zoning districts for the Council to consider? ERIN MENDENHALL DEPARTMENT of COMMUNITY Mayor and NEIGHBORHOODS Blake Thomas Director SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 404 WWW.SLC.GOV P.O. BOX 145486, SALT LAKE CITY, UTAH 84114-5486 TEL 801.535.6230 FAX 801.535.6005 CITY COUNCIL TRANSMITTAL ________________________ Date Received: _________________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: _________________ ______________________________________________________________________________ TO: Salt Lake City Council DATE: Amy Fowler, Chair FROM: Blake Thomas, Director, Department of Community & Neighborhoods __________________________ SUBJECT: PLNPCM2021-01124 Hunter Stables Annexation located at approximately STAFF CONTACT: Nick Norris, Planning Director (nick.norris@slcgov.com or 801-535-6173) DOCUMENT TYPE: Resolution RECOMMENDATION: That the Council accept the annexation application by adopting the resolution. If accepted, it means that the City will process the Annexation proposal and return to the City Council for a final decision as prescribed by Utah Code. BUDGET IMPACT: None at this time. BACKGROUND/DISCUSSION: On September 23, 2021 the Notice of Intent to Annex was received by the City Recorder’s office. Following the receipt of the County’s certification of mailing (as required by State Code 10-2-403(2)) on October 27, 2021, the City Recorder’s office provided the Petition to the applicant. Upon receipt of the Petition on November 1, 2021, the County was notified by the petitioner and notice was provided via email to the City Council of the completed Petition submission. The Planning Division assigned PLNPCM2021-01124 to this application and the fee was paid. The City Council is now tasked to determine if they accept the Petition by resolution or deny by motion within the 14-day window from the date of the notice. For this reason, the Council has provided the option to transmit the information and Petition speedily. If no action is taken within the 14-day window, the Petition will be considered accepted. November 4, 2021 Lisa Shaffer (Nov 4, 2021 10:57 MDT) 11/04/2021 11/04/2021 If the Council accepts the Petition a 30-day period of noticing begins, and a Certification of Petition requirements met is completed. Upon Certification, within 10 days the Recorder’s office on behalf of the Council will mail a notice to each owner of real property locating within the proposed annexation area and post physical notices, post notice on the Utah Public Meeting Site, post on the website, and mail written notice to each affected entity. At this stage, protests may be submitted regarding the annexation. If protests are filed, the City Recorder will coordinate with appropriate entities and provide a written update to the City Council. Upon resolving protests, or if no protests are filed, the City Council is required to hold a public hearing. Prior to the public hearing, the Planning Division will provide a transmittal with the proposed ordinance to annex the property with a proposed zoning. Adopting the zoning of the property is done as part of the annexation process and is not subject to the typical zoning process outlined in Utah Code or in City Ordinance. The rationale behind that is that the city cannot apply zoning outside of the city boundaries and State Code requires all land within the City to be zoned and therefore the zoning is adopted at the same time as the annexation is approved. State Code also does not require a recommendation from the Planning Commission on annexations or on the proposed zoning associated with annexed land. However, the City Council has the discretion to ask the Planning Commission for a recommendation. The annexation process is not subject to the 45-day public notice required by City Code. Due to noticing requirements outlined in Utah Code, applying the 45-day notice period may result in the City Council not being able to comply with the timing requirements for annexations in State Code. The Petition includes a desired zoning designation of RMF-75. This zoning district would allow buildings up to 75 feet in height. According to the annexation Petition, the land to be annexed includes 17.21 acres of land. In the RMF-75 zoning district density is calculated at 500 square feet per unit for properties over one acre in size. This could result in as many as 1,499 housing units on the property. The zoning will be further analyzed if the Council accepts the petition. PUBLIC PROCESS: Notices required to be completed through the Annexation process has been completed. EXHIBITS: 1) Resolution 2) Annexation Application Materials RESOLUTION NO. ________ OF 2021 ACCEPTING A PETITION TO ANNEX A PARCEL OF LAND AT 2350 NORTH ROSE PARK LANE FOR FURTHER CONSIDERATION PURSUANT TO UTAH CODE SECTION 10-2-405 WHEREAS, on November 1, 2021, JAW Development, LLC (“Petitioner”) submitted a petition (Petition No. PLNPCM2021-01124) to annex into Salt Lake City approximately 17 acres of land located at 2350 North Rose Park Lane in unincorporated Salt Lake County (the “Property”); and WHEREAS, the Property is contiguous to the corporate limits of Salt Lake City and is identified as an expansion area described as “Study Area 1 - West Airport” in the city’s annexation policy plan titled, “A MASTER ANNEXATION POLICY DECLARATION for Salt Lake City, Utah” adopted in 1979 and as shown on the map accompanying that plan titled, “SALT LAKE CITY Annexation Policy Declaration Proposed Future Boundaries”; and WHEREAS, Utah Code Section 10-2-405 provides that a municipal legislative body may, within 14 days of receiving an annexation petition, accept an annexation petition for further consideration or deny it; and WHEREAS, accepting an annexation petition for further consideration pursuant to Section 10-2-405 does not constitute final approval of the annexation by the municipal legislative body and does not establish whether any particular zoning designation may be appropriate for potentially annexed land; and WHEREAS, because the Property is within Salt Lake City’s expansion area in its 1979 annexation policy plan and because the Property is congruous to Salt Lake City corporate limits, the Salt Lake City Council finds that it should accept the subject annexation petition for further consideration. NOW, THEREFORE, be it resolved by the City Council of Salt Lake City, Utah: That Petitioner’s petition to annex approximately 17 acres into Salt Lake City is hereby accepted by the Salt Lake City Council for further consideration as provided by Utah Code Section 10-2-405. DATED this ______ day of ________________, 2021. Passed by the City Council of Salt Lake City, Utah, this _____ day of ________________, 2021. SALT LAKE CITY COUNCIL By:___________________________ CHAIRPERSON ATTEST AND COUNTERSIGN: ______________________________ CITY RECORDER Resolution accepting Hunter Stables annexation petition APPROVED AS TO FORM Salt Lake City Attorney’s Office Date:__________________________________ By: ___________________________________ Paul C. Nielson, Senior City Attorney 1. Resolution 2. Annexation Application Materials ΔΔΔ3/21/19March 21, 2019 ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: 10/19/2021 Rachel Otto, Chief of Staff Date Sent to Council: 10/19/2021 TO: Salt Lake City Council DATE: 10/19/2021 Amy Fowler, Chair FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Appointment Recommendation: Parks, Natural Lands, Trails, and Urban Forestry Advisory Board. STAFF CONTACT: Jessi Eagan jessi.eagan@slcgov.com DOCUMENT TYPE: Board Appointment Recommendation: Parks, Natural Lands, Trails, and Urban Forestry Advisory Board. RECOMMENDATION: The Administration recommends the Council consider the recommendation in the attached letter from the Mayor and appoint Clayton Scrivner as a member of the Parks, Natural Lands, Trails, and Urban Forestry Advisory Board. ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 October 19, 2021 Salt Lake City Council 451 S State Street Room 304 PO Box 145476 Salt Lake City, Utah 84114 Dear Councilmember Fowler, Listed below is my recommendation for membership appointment to the Parks, Natural Lands, Trails, and Urban Forestry Advisory Board. Clayton Scrivner - to be appointed for a three year term starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this appointment. Respectfully, Erin Mendenhall, Mayor Cc: File ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: 9/16/2021 Rachel Otto, Chief of Staff Date Sent to Council: 9/16/2021 TO: Salt Lake City Council DATE: 9/16/2021 Amy Fowler, Chair FROM: Rachel Otto, Chief of Staff Office of the Mayor SUBJECT: Board Appointment Recommendation: Parks, Natural Lands, Urban Forest and Trails Advisory Board STAFF CONTACT: Jessi Eagan jessi.eagan@slcgov.com DOCUMENT TYPE: Board Appointment Recommendation: Parks, Natural Lands, Urban Forest and Trails Advisory Board RECOMMENDATION: The Administration recommends the Council consider the recommendation in the attached letter from the Mayor and appoint Nathan Manuel as a member of the Parks, Natural Lands, Urban Forest and Trails Advisory Board. ERIN MENDENHALL Mayor OFFICE OF THE MAYOR P.O. BOX 145474 451 SOUTH STATE STREET, ROOM 306 SALT LAKE CITY, UT 84114-5474 WWW.SLCMAYOR.COM TEL 801-535-7704 September 16, 2021 Salt Lake City Council 451 S State Street Room 304 PO Box 145476 Salt Lake City, Utah 84114 Dear Councilmember Fowler, Listed below is my recommendation for membership appointment to the Parks, Natural Lands, Urban Forest and Trails Advisory Board. Nathan Manuel - to be appointed for a three year term starting from the date of City Council advice and consent. I respectfully ask your consideration and support for this appointment. Respectfully, Erin Mendenhall, Mayor Cc: File RESOLUTION NO. ___ OF 2021 Appointing ___________ as a Member of the Salt Lake City Council to Fill the Unexpired Term of the Vacated Office Representing District 1 WHEREAS, the Salt Lake City Council, on November 9, 2021, met in an open and public Council meeting for the purpose of interviewing applicants to fill the midterm vacancy on the City Council representing District 1; and WHEREAS, after fully and appropriately considering and interviewing all interested applicants, the Council desires to appoint ______________ as a member of the Salt Lake City Council representing District 1 until the date a successor is duly elected, qualified and sworn into office. NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, that _____________ is hereby appointed, pursuant to Utah Code section 20A-1-510, to fill a partial term of the office vacated by James Rogers in Council District 1, effective upon completion of the Oath of Office. The City Recorder is authorized and directed to administer the oath of office electronically and, after the oath is administered, ______________ will fully participate as a member of the City Council. Passed by the City Council of Salt Lake City, Utah this ___ day of November 2021. _________________________ City Council Chair Approved as to Form ___________________ __________________________ City Recorder Boyd Ferguson Senior City Attorney RESOLUTION_Vacancy Final Audit Report 2021-11-04 Created:2021-11-04 By:Cindy Trishman (cindy.trishman@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAA4UyLwa_Lb2-EMdL26OMIWHdRomVGXSAf "RESOLUTION_Vacancy" History Document created by Cindy Trishman (cindy.trishman@slcgov.com) 2021-11-04 - 9:25:23 PM GMT Document emailed to Boyd Ferguson (boyd.ferguson@slcgov.com) for signature 2021-11-04 - 9:25:44 PM GMT Email viewed by Boyd Ferguson (boyd.ferguson@slcgov.com) 2021-11-04 - 10:09:28 PM GMT Document e-signed by Boyd Ferguson (boyd.ferguson@slcgov.com) Signature Date: 2021-11-04 - 10:13:48 PM GMT - Time Source: server Agreement completed. 2021-11-04 - 10:13:48 PM GMT 1 Shafer, Lauren From:Michelle Blue <MBlue@slco.org> Sent:Friday, October 29, 2021 12:01 PM To:Stewart, Thais; Shafer, Lauren Cc:Trishman, Cindy Lou Subject:(EXTERNAL) RE: SLC District One Vacancy - Jahn P. Curran Hello, Jahn Curran is a qualified candidate for Salt Lake City Council District 1. This person is an active registered voter. This individual also meets residency requirements as they registered to vote in the city at least 12 months ago, have voted in the city’s elections for at least 12 months, and they currently reside in Council District 1. Best, Michelle Blue Administration/Finance Manager Salt Lake County Clerk MBlue@slco.org 385-468-7425 SLCo Clerk Website From: Stewart, Thais <Thais.Stewart@slcgov.com> Sent: Friday, October 29, 2021 11:02 AM To: Michelle Blue <MBlue@slco.org>; Shafer, Lauren <Lauren.Shafer@slcgov.com> Cc: Trishman, Cindy Lou <Cindy.Trishman@slcgov.com> Subject: SLC District One Vacancy - Jahn P. Curran Good Morning, Please verify if the applicant is an active registered voter within Salt Lake City, and if possible, the date they registered in the district and/or their voter history to determine the 12 month residency requirement (SLC District One). Please reply all to this email. Thank you for all your help! Thais Stewart Deputy Recorder Operations Recorder’s Office Salt Lake City Corporation 801-535-6225 www.slcgov.com 1 Shafer, Lauren From:Michelle Blue <MBlue@slco.org> Sent:Wednesday, October 13, 2021 8:11 AM To:Shafer, Lauren Subject:(EXTERNAL) RE: D1 Vacancy - Richard Barnes Hi Lauren, Richard David Macpherson Barnes is a qualified candidate for Salt Lake City Council District 1. This person is an active registered voter. This individual also meets residency requirements as they registered to vote in the city at least 12 months ago, have voted in the city’s elections for at least 12 months, and they currently reside in Council District 1. Best, Michelle Blue Administration/Finance Manager Salt Lake County Clerk MBlue@slco.org 385-468-7425 SLCo Clerk Website From: Shafer, Lauren <Lauren.Shafer@slcgov.com> Sent: Tuesday, October 12, 2021 2:30 PM To: Michelle Blue <MBlue@slco.org> Subject: D1 Vacancy - Richard Barnes Hi Michelle, Please verify if the applicant is an active registered voter within Salt Lake City, and if possible, the date they registered in the district and/or their voter history to determine the 12 month residency requirement (SLC District One). Thank you for all your help! Best, Lauren LAUREN SHAFER Deputy City Recorder Elections RECORDER’S OFFICE SALT LAKE CITY CORPORATION 801-535-6221 www.slcgov.com 1 Shafer, Lauren From:Michelle Blue <MBlue@slco.org> Sent:Friday, October 22, 2021 2:41 PM To:Shafer, Lauren Subject:(EXTERNAL) RE: D1 Vacancy - Blake Perez Hi Lauren! Blake Perez is a qualified candidate for Salt Lake City Council District 1. This person is an active registered voter. This individual also meets residency requirements as they registered to vote in the city at least 12 months ago, have voted in the city’s elections for at least 12 months, and they currently reside in Council District 1. Best, Michelle Blue Administration/Finance Manager Salt Lake County Clerk MBlue@slco.org 385-468-7425 SLCo Clerk Website From: Shafer, Lauren <Lauren.Shafer@slcgov.com> Sent: Friday, October 22, 2021 2:30 PM To: Michelle Blue <MBlue@slco.org> Subject: D1 Vacancy - Blake Perez Hi Michelle, Please verify if the applicant is an active registered voter within Salt Lake City, and if possible, the date they registered in the district and/or their voter history to determine the 12 month residency requirement (SLC District One). Thank you for all your help! Best, Lauren LAUREN SHAFER Deputy City Recorder Elections RECORDER’S OFFICE SALT LAKE CITY CORPORATION 801-535-6221 www.slcgov.com 1 Shafer, Lauren From:Michelle Blue <MBlue@slco.org> Sent:Friday, October 29, 2021 12:05 PM To:Stewart, Thais; Shafer, Lauren Cc:Trishman, Cindy Lou Subject:(EXTERNAL) RE: SLC District One Vacancy - Victoria Petro-Eschler Hello, Victoria Petro-Eschler is a qualified candidate for Salt Lake City Council District 1. This person is an active registered voter. This individual also meets residency requirements as they registered to vote in the city at least 12 months ago, have voted in the city’s elections for at least 12 months, and they currently reside in Council District 1. Best, Michelle Blue Administration/Finance Manager Salt Lake County Clerk MBlue@slco.org 385-468-7425 SLCo Clerk Website From: Stewart, Thais <Thais.Stewart@slcgov.com> Sent: Friday, October 29, 2021 10:52 AM To: Michelle Blue <MBlue@slco.org>; Shafer, Lauren <Lauren.Shafer@slcgov.com> Cc: Trishman, Cindy Lou <Cindy.Trishman@slcgov.com> Subject: SLC District One Vacancy - Victoria Petro-Eschler Good Morning, Please verify if the applicant is an active registered voter within Salt Lake City, and if possible, the date they registered in the district and/or their voter history to determine the 12 month residency requirement (SLC District One). Please reply all to this email. Thank you for all your help! Thais Stewart Deputy Recorder Operations Recorder’s Office Salt Lake City Corporation 801-535-6225 www.slcgov.com City Council Announcements November 9, 2021 Information Needed By Staff A. Council School Board Leadership Meeting The Council/School Board leadership is scheduled to meet on Friday, November 19, 2021.  Please let Council staff know if you have any topics you wish to have on the agenda for leadership to discuss. Redistricting is a topic that has been suggested by Council staff.