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06/10/2003 - Minutes (2) PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, DUNE 10 , 2003 The City Council of Salt Lake City, Utah, met in a Work Session on Tuesday, June 10, 2003, at 5:30 p.m. in Room 326, City Council Office, City County Building, 451 South State Street. In Attendance: Council Members Carlton Christensen, Van Turner, Eric Jergensen, Nancy Saxton, Jill Remington Love, Dave Buhler and Dale Lambert. Also in Attendance: Cindy Gust-Jenson, Executive Council Director; Michael Sears, Council Budget and Policy Analyst; LuAnn Clark, Housing and Neighborhood Development Director; Diana Karrenberg, Community Affairs Manager; Dan Mule' , City Treasurer; Linda Hamilton, Investigator Civilian Review Board; DJ Baxter, Mayor' s Senior Advisor; Steve Fawcett, Management Services Deputy Director; Edwin Rutan, City Attorney; Louis Zunguze, Planning Director; Gary Mumford, Council Deputy Director/Senior Legislative Auditor; Russ Weeks, Council Policy Analyst; Lehua Weaver, Council Constituent Liaison; Rocky Fluhart, Mayor' s Chief Administrative Officer; Mayor Ross C. "Rocky" Anderson; Kathy Ricci, Salt Lake City Housing Authority; Blake Wade, Ballard, Spahr, Andrews and Ingersoll; Rosemary Kappas, Salt Lake City Housing Authority; Dick Young, Ballard, Spahr, Andrews and Ingersoll; Laurie Dillon, Budget Analyst; Alison Weyher, Community and Economic Development Director; and Beverly Jones, Deputy City Recorder. Councilmember Christensen presided at and conducted the meeting. The meeting was called to order at 5:34 p.m. AGENDA ITEMS #1. REPORT OF THE EXECUTIVE DIRECTOR, INCLUDING REVIEW OF COUNCIL INFORMATION ITEMS AND ANNOUNCEMENTS. Ms. Gust-Jenson said a listing of potential motions for Main Street had been prepared. She said in the Council' s packet, Item A-9, Budget Issues, contained information the Council had requested. She said the Mayor's response was labeled Item 7F. #2. INTERVIEW ELEANOR MUTH PRIOR TO CONSIDERATION OF HER APPOINTMENT TO THE COMMUNITY DEVELOPMENT ADVISORY COMMITTEE. Ms. Muth said she had been a resident of Salt Lake City for 40 years. She said during that time she had demonstrated a commitment to the community through her volunteer efforts. She said she had worked for the JC Penney Company for 28 years as a liaison for the intermountain area. #3. INTERVIEW TEDDI VELARDE PRIOR TO CONSIDERATION OF HER APPOINTMENT TO THE POLICE CIVILIAN REVIEW BOARD. Ms. Velarde said she had social work background and had also been a probation officer. #4. RECEIVE A BRIEFING REGARDING THE CITY TAX AND REVENUE ANTICIPATION NOTES. View Attachment Dan Mule' and Gary Mumford briefed the Council from the attached handout. Councilmember Christensen said last year interest rates dropped fast and interest earned became less than interest due on the notes. Mr. Mule' said the current 2002 Series were issued with a coupon of 2.5%. He said the yield on those was paying 1.5%. He said through the end of April the City's year to date average rate was approximately 2.5%. 03 - 1 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, DUNE 10 , 2003 #5. RECEIVE A FOLLOW-UP BRIEFING REGARDING ECONOMIC DEVELOPMENT REVENUE BONDS FOR SPRING AIR-MOUNTAIN WEST. View Attachment Dan Mule' , LuAnn Clark and Gary Mumford briefed the Council from the attached handout. Mr. Mumford said the Council had held a tefra hearing on this item. He said bond counsel had notified him that disclosures and public notices were not advertised correctly. He said bond counsel had provided the City with the proper public notice and requested the hearing be held again. #6. RECEIVE A BRIEFING REGARDING RESTRICTIONS OF RAILROAD HORNS AND WHISTLES ON THE 900 SOUTH RAIL LINE. View Attachment DJ Baxter and Russell Weeks briefed the Council from the attached handout. Mr. Weeks said the Administration said that Utah Department of Transportation (UDOT) would retain the authority to override the proposed ordinance if safety conditions warranted. Councilmember Christensen asked why the proposed ordinance did not include the Guadalupe area. Mr. Baxter said Union Pacific (UP) was willing to try the change on 900 South. He said that crossing did not receive as much traffic as some of the main lines and trains were not moving as fast. Councilmember Jergensen asked what the status of the quiet zones was. Mr. Baxter said UDOT's approval was complete, but they had not received approval from the Federal Railroad Administration (FRA) . He said the proposed ordinance was an interim measure on 900 South so residents could get relief until quiet zones could be implemented. Councilmember Jergensen asked about funding for improvements. Mr. Baxter said one funding option was fund balance. He said downtown improvements could also be covered by money set aside by the Redevelopment Agency (RDA) years ago. He said another possibility was to identify eligible RDA housing funds. He said costs could be reduced on 900 South improvements by closing intersections. He said the average cost at intersections was $300,000 per crossing. He said seven roads crossed railroad tracks on 900 South. He said bonding could also be considered. He said the cost range could be anywhere from $500,000 to $2.5 million. He said if the FRA allowed the City to put in the least expensive improvements at every crossing, it would cost approximately $500, 000. Councilmember Christensen asked how housing funds could be used. Mr. Baxter said RDA had confirmed that funds for housing related projects outside a project area could be used. Councilmember Christensen said a public hearing needed to be held by the City or by UDOT. Mr. Baxter said there were two options: 1) the Council could advertise and hold a formal public hearing, or 2) agenda the item for a future meeting and allow people to comment during citizen comments. He said UDOT would hold a 15-day public comment period regardless of what approach the City took. He said if UDOT received a certain number of comments, they would hold a public hearing as well. Councilmember Christensen asked if any Council Members were opposed to holding a public hearing on July 1, 2003. All Council Members were in favor. #7. RECEIVE A BRIEFING REGARDING THE SALT LAKE CITY HOUSING AUTHORITY/HOUSING DEVELOPMENT CORPORATION BOND REFINANCING. View Attachment Dan Mule' , LuAnn Clark, Dick Young, Kathy Ricci, Blake Wade and Gary Mumford briefed the Council from the attached handout. Councilmember Christensen asked if there was a cap on the interest rate after 10 years. Mr. Wade said Zions Bank had indicated a 12% cap. 03 - 2 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, DUNE 10 , 2003 Councilmember Turner asked if interest rates increased tremendously, would the Housing Authority consider selling properties. Ms. Clark said if the interest rate was higher after the 10-year period and the Housing Authority felt they could not afford the rates, then there were several options. She said one option was to sell assets. She said an analysis would be done before that decision was made. Councilmember Saxton asked if the Housing Authority had ever sold property to pay off a debt. Ms. Ricci said no. She said selling assets was an option so the bond would not become the City's responsibility. #8. RECEIVE A FOLLOW-UP BRIEFING REGARDING THE MAIN STREET PLAZA, INCLUDING BUT NOT LIMITED TO CLOSING, VACATING, AND ABANDONING A PEDESTRIAN ACCESS AND PASSAGE EASEMENT LOCATED ON THE FORMER MAIN STREET RIGHT-OF-WAY BETWEEN NORTH AND SOUTH TEMPLE STREETS PURSUANT TO PETITION NO. 400-03-01, AND RELATED MATTERS. No discussion was held. #9. DISCUSS POLICY DIRECTION AND OTHER ISSUES RELATED TO THE BUDGET. View Attachment Gary Mumford, Michael Sears and Sylvia Jones briefed the Council from the attached handouts. Mr. Sears referred to a handout labeled Item A-9. He said Item No. 2, Capital Improvement Program (CIP) critical projects, the sum of the projects was $1,575,000. He said one $400,000 project was listed in additional funding sources. He said the Mayor' s recommended CIP budget was $27, 600,000. He said that money was broken down into categories: ongoing, general fund allocation, general fund balance allocation ($3 million) , impact fee allocation ($1.2 million) , Class CCIP allocation ($1.4 million) , the Library general obligation bond ($6. 9 million) , Community Development Block Grant (CDBG) CIP portion ($1.96 million) and additional funding source allocation ($2.1 million) . Mr. Sears said 9% of the recommended budget was $13, 881,275. Councilmember Buhler asked if last year the Council budgeted 9% of ongoing revenue and then augmented it with one-time revenue. Mr. Sears said that was correct. Councilmember Jergensen asked what the basis was for 9%. Ms. Gust-Jenson said the CIP committee had asked the Council to perform a study because they felt between deterioration of capital assets and the spending of the capital program, the City was taking more money out than they were putting in. She said the committee had looked at long term needs. Councilmember Lambert said some new projects on the CIP list ranked higher by the committee and the Mayor's proposed budget. He asked how much of the proposed CIP budget was new projects as opposed to replacing aging infrastructure. Mr. Sears said he would get that information. Councilmember Jergensen said the entire 9% could be allocated towards new projects. He said new projects would do nothing to replace existing and deteriorating infrastructure. Mr. Sears said Item No. 3, was quiet zone funding. Ms. Gust-Jenson said staff needed direction on whether Council wanted the motion sheet to include moving the $2.5 million now or if they wanted to wait until later in the year to allocate the money. Councilmember Christensen suggested the Council wait to appropriate the monies. Councilmember Jergensen said he wanted to wait until Council had a specific funding source. He asked if construction projects such as quiet zones had to come from CIP. Ms. Gust-Jenson said Council could take money from any source and place it in CIP. Councilmember Jergensen said RDA options could present viable funding alternatives for quiet zones. 03 - 3 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, DUNE 10 , 2003 Councilmember Buhler said he also wanted to wait to fund quiet zones. He suggested Council approve the time sensitive list with the exception of Sugar House lighting and with $300,000 for Rose Park lighting. Councilmember Lambert said he agreed. He said he was willing to defer funding for quiet zones, but the Council needed to keep in mind that this could be funded from fund balance. Councilmember Love said she wanted to wait to fund quiet zones until they had more cost information. She said she was in favor of Councilmember Buhler's proposal to go ahead with time sensitive CIP projects. Mr. Sears said Item No. 4, Legislative Intents, A thru N, were new intents. Councilmember Lambert said he felt it was better to select a few legislative intents and follow-up on them. Councilmember Christensen said Intent Statement A was bonding for efficient irrigation systems for parks and golf courses. Council Members were in favor. He said Intent Statement B was a grant writing team. Council Members were not in favor. Councilmember Christensen said Intent Statement C was retirement payouts. A discussion was held regarding putting $13 million in a separate account for employee retirement. Councilmember Christensen requested the Administration come back to the Council by September 1st, 2003 with additional information. Mr. Sears said Intent Statement D was collection of fines. All Council Members were in favor. Mr. Sears said Intent Statement E was Salt Lake City resident golf discount passes. Council Members were not in favor. Mr. Sears said Intent Statement F was actual vehicle expenses. Councilmember Christensen suggested that the Council watch this issue in the department' s budget review. Mr. Sears said Intent Statement G was library fiscal controls. All Council Members were in favor. Mr. Sears said Intent Statement H was semiannual reports on the status of legislative intent statements and action items. All Council Members were in favor. Mr. Sears said Intent Statement I was City management consolidation. Council Members were not in favor. Mr. Sears said Intent Statement J was City policy coordination. Council Members were in favor. Mr. Sears said Intent Statement K was the Fleet Division audit/Fleet implementation plan. Council Members were not in favor. Mr. Sears said Intent Statement L was revenue collection. Council Members were in favor. Mr. Sears said Intent Statement M was early retirement program. Ms. Gust- Jenson said language could be changed to provide options and additional information by a certain date. Council Members were in favor. Mr. Sears said Intent Statement N was City employee benefit plan review. Councilmember Christensen said the date for the review could be changed to January 15th of each year. Council Members were in favor. Councilmember Buhler suggested that contingency language be put in the appropriation for traffic calming. He said that would give policy direction to traffic calming programs. Mr. Sears said staff would work on language and bring it back to the Council. Mr. Sears said Item No. 5 was potential Council budget policies. Councilmember Christensen suggested this item be discussed during the Council' s retreat in January. Mr. Sears said a comment had been made. He said if midyear revenue was less than anticipated and positions needed to be eliminated, that should be considered during February of 2004. He said that way there would be a full half year of savings. Councilmember Christensen said that could be discussed at the Council's retreat. 03 - 4 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH TUESDAY, JUNE 10 , 2003 Mr. Sears said Item No. 6 was fund balance. He said they were calculating the current fund balance at $24,773, 000. A discussion was held on how to use fund balance. Mr. Sears said Item No. 7 was follow-up responses from the Administration. He said 7A, Career Ladder Program in the Prosecutor' s Office, was addressed in a memo from the Mayor to the Council Chair. Councilmember Christensen asked if any Council Members wanted to change their position. No Council Members did. Councilmember Christensen said the Council would recognize the Administration's cuts of $96,000 from Public Services for salting and snow removal and $278,500 from the general fund contingency. The meeting adjourned at 10:33 p.m. bj 03 - 5 i SALT LAKE CITY COUNCIL STAFF REPORT DATE June 6,2003 SUBJECT: TAX AND REVENUE ANTICIPATION NOTES STAFF REPORT BY: Gary Mumford REQUESTED ACTION: Salt Lake City issues Tax and Revenue Anticipation Notes (TRAN's) each July to assist with cash flow needs of the General Fund. Property taxes, one of the City's major sources of revenue, are primarily received in December. The City normally borrows funds for General Fund operations in anticipation of receiving property taxes. The federal government restricts the amount of borrowing (at the lower tax-exempt rates) to actual needs as determined by a formula. The City generally borrows close to the maximum allowed because of the advantage of earning greater interest revenue than the interest expense. The notes are issued and funds borrowed for slightly less than a • one-year period. For fiscal year 2002-2003, the City borrowed $25 million. The Administration is proposing to issue $21 million for fiscal year 2004. Bids from potential buyers of the TRAN's are scheduled to be opened on July 1, 2003. That evening, the Administration will ask the Council to authorize the award of the sale of the notes to the lowest bidder. The City Treasurer will provide the Council with a summary of the results of the sale including the number of bids received and the net effective interest rate of the low bid. The actual closing and receipt of funds is scheduled to take,place on July 15, 2003. The Notes mature and will be repaid on June 30, 2004. MATTERS AT ISSUE/POTENTIAL QUESTIONS FOR ADMINISTRATION: By issuing Tax and Revenue Anticipation Notes, the City can typically earn a significant amount of additional interest income. However, the overall interest rate environment during the period that the Notes are outstanding is a key factor in determining the effectiveness of the borrowing. The City Treasurer is expecting to earn between 25 and 50 basis points (0.25% and 0.50%) on the amount borrowed over the amount of interest that it pays. An analysis of the cash flows forecasted by month for next fiscal year (July 2003 through June 2004) shows that the General Fund anticipates incurring a maximum deficit of$20,897,260 without considering the planned • $21,000,000 borrowing. During the 2002-2003 fiscal year, the City met the following federal spend- down requirements to allow the City to keep excess interest earned over • interest expense: • 90% of the proceeds plus interest on the tax and revenue anticipation notes must be spent within six months; or • At some point within the first six months, the actual cash flow ending balance must be less than or equal to 5% of the prior year's actual disbursements. Since the maximum allowed amount of the proposed Notes for fiscal year 2003-04 is less than the amount borrowed during fiscal year 2002-03, the • City Treasurer is projecting that interest income will be $60,000 less than the amount included in the Mayor's recommended budget. The City Treasurer anticipates a coupon rate of 2% on the tax notes, which will save about $80,000 over the amount of interest expense included in the Mayor's recommended budget. The Council's options relating to the proposed budget include: 1. Decrease budgeted interest revenue by$60,000 and decrease interest expense by$80,000. This will free up $20,000 for other Council priorities. The budget for interest expense can be adjusted by budget amendment if the actual coupon rate is greater than 2%. 2. Decrease both interest revenue and interest expense by$60,000. This will allow some leeway in case the coupon rate is greater than 2%. The • budget for interest expense can be adjusted by budget amendment depending on the actual coupon rate. cc: Rocky Fluhart,David Nimkin,Dan Mule,DJ Baxter JUN 0 5 2003 DANIEL A. MULE' .►o� i 0+t a'J .i .19 4 a �,�®" ROSS C. "ROCKY" ANDERSON CITY TREASURER DEPARTMENT OF MANAGEMENT SERVICES MAYOR TREASURER TO: Rocky J. Fluhart, Chief Administrative Officer DATE: June 3,2003 FROM: Daniel A. Mule, City Treasurer SUBJECT: Tax and Revenue Anticipation Notes, Series 2003 (TRAN's Series 2003) STAFF CONTACT: Daniel A. Mule, City Treasurer TELEPHONE NUMBER: 535-6411 RECOMMENDATION: That the City Council hold a discussion and schedule the adoption of a resolution authorizing the issuance and confirming the sale of$21 million in Tax and Revenue Anticipation Notes for fiscal year 2004. • DOCUMENT TYPE: Briefing/Discussion BUDGET IMPACT: Approximately$420,000 (based on an estimated coupon of 2.0% and a yield between 1.00% and 1.25%) in interest expense in the General Fund during fiscal year 2004 and a correspondingly higher amount in interest income, depending on the level of interest rates throughout the fiscal year. The spread between interest income and interest expense is expected to be between 25 and 50 basis points. DISCUSSION: TRAN's are short term borrowing instruments (debt) issued for one year or less in anticipation of future tax collections. The purpose of the borrowing is to provide financial assistance to the City's General Fund during its "cash-poor" period until the major portion of property taxes are received, usually in December. The exact amount to be budgeted for interest expense will not be known until the Notes are sold on July 1, 2003 at which time the actual coupon will be determined. To assure compliance with applicable federal and state regulations, sizing restrictions are adhered to when determining an allowable principal amount, and actual cash flows relative to spend down requirements are regularly monitored to avoid rebate. • H:\Treas\DansDocs\council cover letter 451 SOUTH STATE STREET, ROOM 228, SALT LAKE CITY, UTAH 84111 TELEPHONE: 801-535-7946 FAX: 801-535-6082 ��i ECVELEP PAPER r R WELLS FARGO • Public Finance MEMORANDUM TO: Carlton Christensen and Members of the Salt Lake City Council , ��,✓ FROM: Kelly Murdock,Financial Advisor to Salt Lake City DATE: June 5, 2003 RE: Proposal to Refund Salt Lake City Housing Authority's Series 1995 Bonds • Thepurpose of this memorandum is to offer our comment and perspective on the p P proposed issuance of Series 2003 Refunding Revenue Bonds by the Salt Lake City Housing Authority (the "Housing Authority") for the defeasance of bonds issued by the Housing Authority in 1995. As a matter of course, a municipality normally pursues the refunding (refinancing) of one of its bond issues for one or more reasons. These might include: • To achieve lower overall debt service costs (due to lower current interest rates); • To rewrite outdated or burdensome bond covenants; • To restructure debt service payments to better fit new cash flow requirements;or • To free up cash reserves. In the case of the refunding issue currently being proposed by the Housing Authority, Wells Fargo Public Finance has observed that the transaction in question is, in fact, being pursued for reasons that include all of those stated above. According to requests made by both the Housing Authority and the City, Wells Fargo has undertaken an independent review of refunding analysis that has been provided to us by Mr. David Miner, Financial Advisor to the Housing Authority. • Memorandum to Salt Lake City Council • June 5,2003 Page 2 of 3 Wells Fargo's refunding analysis of the Housing Authority's Series 1995 Bonds has produced the following conclusions: 1. Based upon an offer by Zions First National Bank to purchase the Series 2003 Bonds with a 10-year fixed rate of approximately 4.05% (in today's market), our analysis indicates that the Housing Authority should be able to achieve over the next 10 years net-present-value savings of approximately $825,000, confirming estimates made by Mr. Miner; 2. With the complete defeasance of the Series 1995 Bonds, the Housing Authority also appears to be able to secure a smaller debt service reserve requirement ($500,000) through the Zions Bank private placement, thus freeing up additional cash reserves. These additional monies appear targeted for needed Housing Authority capital improvements and renovations. An additional benefit of reducing the bond's debt service reserve requirement is the reduction in negative arbitrage currently experienced in the Housing Authority's 1995 debt service reserve fund. The Series 1995 Bonds pay an average coupon rate of 6.14%, yet the current rate of return on the bond's reserve fund is approximately 1.70%, resulting in excess of 440 basis points 110 of negative arbitrage currently); 3. The proposed refunding transaction will also place the Housing Authority's annual debt service requirement on a level basis rather than a steadily increasing one. This should assist the Housing Authority's budgeting efforts vis-a-vis its ongoing cash flow requirements and potentially alleviate the need for rent adjustments or the further deferring of needed maintenance to meet an ever-increasing debt service requirement. Wells Fargo would also point out (as has Mr. Miner) that there are certain elements of risk associated with this proposed refunding. Given that the Series 2003 Bonds' interest rates will only be fixed for the next ten years, these bonds will be exposed to the risk of a higher interest rate reset in 2013—possibly even higher than those of the Series 1995 Bonds. This may be offset, however, by the fact that the Housing Authority could, if it desired, sell either some or all of its properties in 2013, and pay off the remaining principal balance on the bonds, or choose instead to refinance through another method. Another risk factor in this bond transaction is that which is born directly by the City itself through its affirmative pledge to replenish, through an emergency appropriation, any and all draws that the Housing Authority makes on the bond's debt service reserve fund in the event of a Housing Authority cash crisis. It should be noted that this "moral obligation pledge" of the City has necessarily existed since the initial issuance of the bonds and is not new to this particular refunding transaction. The reason for its inclusion is to essentially provide necessary credit enhancement to the bond issue. Simply stated, without it, the bonds would have been, and would continue to be, extremely difficult if not impossible to sell due to the narrow cash flow margins that have been historically exhibited by the . Memorandum to Salt Lake City Council June 5, 2003 Page 3 of 3 Housing Authority's rental properties. Wells Fargo would point out, however, that the risk to the City of having to make an emergency appropriation to replenish a Housing Authority draw on its bond reserve fund is actually lessened through this refunding transaction, not increased. It is also Wells Fargo's current opinion that without the City's moral obligation pledge on this bond transaction, a savings refunding opportunity would not exist. It is, therefore, Wells Fargo's conclusion that the proposed refunding transaction makes good sense from a number of perspectives. In today's interest rate market, the Housing Authority should be able to generate net-present-value annual debt service savings over the initial ten-year fixed rate period, it should also be able to generate approximately $500,000 for needed repairs and improvements, and it should be able to restructure its annual debt service payments from ascending to level. While there are risks associated with this transaction, we would note that there also appear to be real risks associated with not pursuing this refunding transaction. We would also note that the Housing Authority's Financial Advisor, Mr. Miner, should be complemented on identifying this advance refunding opportunity for the Housing Authority. Due to certain technical changes in the federal tax code in 1986, such a refunding opportunity was not immediately apparent but has subsequently been verified by the Housing Authority's bond counsel. • • SALT LAKE CITY COUNCIL STAFF REPORT DATE: June 6,2003 SUBJECT: INDUSTRIAL DEVELOPMENT REVENUE BOND SPRING AIR MOUNTAIN-WEST AFFECTED COUNCIL DISTRICTS: District 3 STAFF REPORT BY: Gary Mumford ADMINISTRATIVE DEPT. Community and Economic Development AND CONTACT PERSON: Luann Clark CC: Rocky Fluhart,David Nimkin,Alison Weyher,David Dobbins,LuAnn Clark, Bob Gore,Ed Rutan,Chris Bramhall,Dan Mule,DJ Baxter Spring Air Mountain-West,Inc.,located in Salt Lake City at 402 West 300 North,is requesting that the City issue industrial development revenue bonds in an amount not to exceed$4,600,000 to help the company finance expansion and modernization of its manufacturing facility. Repayment of the bonds will be the responsibility of Spring Air Mountain-West. The bonds will not be considered an obligation of the City. Spring Air Mountain-West has finalized its direct-pay letter-of-credit with U.S.Bank to 41 guarantee repayment of the bonds. Under this direct-pay letter-of-credit,U.S.Bank will make the bond repayments regardless of whether Spring Air Mountain-West is financially able to reimburse the bank. On February 7,2003,the Council received a briefing regarding Spring Air Mountain- West's application for industrial development revenue bonds. On February 18th,the Council adopted a resolution giving preliminary approval for the issuance of the bonds. On March 1111,the Council held a public hearing in compliance with the Tax Equality and Fiscal Responsibility Act(TEFRA). No one spoke at the public hearing. Bond counsel notified Council staff that the advertising didn't make all necessary disclosures. Bond counsel is requesting that the TEFRA hearing be held again to be sure that it is valid. Bond counsel has provided the Council Office with the suggested wording for the notice of the public hearing. (See attached.) The IRS has set a"volume cap"for each state($150 million per year for Utah)for entities issuing industrial development revenue bonds or private activity bonds. (Providers of health care or educational services are not subject to the volume cap.) The Utah Legislature has established priorities for allocating the volume cap with most going to the Utah Housing Finance Agency for fist-time single-farhily homeowners or to college student loan programs. On January 8,2003,the Utah Private Activity Bond Authority authorized up to$4,455,000 for industrial revenue bonds subject to City • Council approval and issuance. This authorization was valid for 90 days. Spring Air Mountain-West received an extension that is valid until July 10th. Spring Air Mountain- West will apply for an additional extension in case there are any delays in closing the sale of the bonds. Spring Air's bond counsel requests that the Council set the date for a TEFRA hearing to be held on July 1st. Following the hearing,Spring Air Mountain-West requests that the Council consider a resolution authorizing and approving the issuance of industrial 11111 development revenue bonds,authorizing the execution,delivery and performance of an indenture,a loan agreement,a bond purchase agreement and other documents related to the bonds;and authorizing and directing that other necessary and appropriate actions be taken in connection with the bonds. (See attached draft of the resolution.) CHRONOLOGY: January 3,2003- Spring Air Mountain-West submitted an application requesting Salt Lake City to act as a conduit issuer of industrial revenue bonds. January 8,2003- The Utah Private Activity Bond Authority authorized up to $4,455,000 for industrial development revenue bonds subject to approval and issuance by a local government. The allocation was valid for 90 days. The authorization was later extended until July 10, 2003. Spring Air Mountain-West will apply for another extension in case there are any delays in closing the sale of the bonds. January 24,2003- The City's Small Business Revolving Loan Fund Committee reviewed the application and approved it to be forwarded to the Mayor and City Council. • February 7,2003- The Council discussed the application from Spring Air Mountain- West at its work session. Council Members were generally supportive of issuing the bonds. February 18,2003- The Council adopted a resolution giving preliminary approval for the issuance of the bonds. March 11,2003- The Council held a public hearing. No one spoke at the hearing. Bond counsel notified Council staff that the advertising didn't make all necessary disclosures. Bond counsel is requesting that the TEFRA hearing be held again to be sure that it is valid. 41111 Draft Distributed: June 4,2003 RESOLUTION NO. OF 2003 A RESOLUTION AUTHORIZING AND APPROVING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 2003 (SPRING AIR MOUNTAIN WEST PROJECT), AUTHORIZING THE EXECUTION, DELIVERY AND PERFORMANCE OF AN INDENTURE, A LOAN AGREEMENT, A BOND PURCHASE AGREEMENT AND OTHER DOCUMENTS RELATED TO THE 2003 BONDS; AND AUTHORIZING AND DIRECTING THAT OTHER NECESSARY AND APPROPRIATE ACTIONS BE TAKEN IN CONNECTION WITH THE 2003 BONDS. WHEREAS,the City Council of Salt Lake City, Salt Lake County, Utah(the"City") has authority under Utah Code Title 11 Chapter 17 (the "Act") to issue revenue bonds to finance industrial development projects, including manufacturing projects; and WHEREAS, the City has received a Certificate of Allocation dated January 8, 2003, allocating it $4,455,000 of 2003 Small Issue Account/Manufacturing Facility Volume Cap from the Utah Private Activity Bond Review Board; and WHEREAS,the City has received and reviewed an application (the "Application") from 1 Spring Air Mountain West, Inc., a Utah corporation, LeDuc Properties LLC, a Utah limited liability company, and Thomas C. LeDuc (collectively, the "Applicant") for industrial development revenue bonds in an amount not exceeding$4,600,000 for the purpose of financing the expansion of the Applicant's current manufacturing facility (the "Project"). The Project consists of renovating, restoring and bringing the Applicant's existing building up to current code; constructing a new addition on the north side of the property, increasing building square footage from nearly 29,000 square feet to approximately 94,000 square feet; modernizing plant layout, design and automation equipment, and making other improvements to the interior and exterior of the manufacturing facility. The Project is located at 402 West 300 North, Salt Lake City, Utah 84103; and WHEREAS, pursuant to Resolution No. of 2003 the City has given its preliminary approval to the issuance of Industrial Development Revenue Bonds; and WHEREAS, the Revenue Bonds shall be limited obligations of the City payable solely from amounts derived by the City from payments made by the Applicant as the result of the financing the Project, and from payments made under a Letter of Credit issued for the account of the Applicant by U.S. Bank,National Association to secure the payment of the Bonds; and WHEREAS, the City has now determined that it is in the interest of the City to authorize the issuance of Revenue Bonds pursuant to the Act for the purposes of financing a portion of the costs of the Project and to pay costs of issuance related to obtaining such funding and any other lawful costs related to the Project; and Resolution No. ,Page 1 DOCSPN W I-#3291 I-v I-Salt_Lake_City_Spring_Air_Bond_Resolution I.DOC Draft Distributed: June 4,2003 City Recorder Resolution No. , Page 4 DOCSPN W I-#32911-v 1-Salt_Lake_City_Spring_Air_Bond_Resolution l.DOC 4111 MEMORANDUM DATE: June 6,2003 TO: City Council Members FROM: Russell Weeks RE: Briefing:Ordinance to Reduce Train Whistle Distance on 900 South Rail Line CC: Cindy Gust-Jenson,Rocky Fluhart,David Nimkin,D.J.Baxter This memorandum is intended to address a proposed ordinance to reduce the distance at which train whistles sound their horns along the 900 South rail line.The Administration proposes that the City Council schedule a public hearing on the proposed ordinance.The hearing would take the place of a Utah Department of Transportation public process.The department would waive its public process if the City Council holds the public hearing. ISSUES/QUESTIONS FOR CONSIDERATION 411 • According to the Administration's transmittal,the proposed ordinance would be an "interim measure"until the establishment of railroad crossing quiet zones on the 900 South line between 700 West Street and Redwood Road. • Should the proposed ordinance contain a sunset provision tied to the implementation of quiet zones along the 900 South line? DISCUSSION-BACKGROUND The proposed ordinance stems from a an agreement earlier this year between the City and Union Pacific Railroad to mitigate the effect of trains on neighborhoods surrounding the 900 South rail line between 700 West Street and Redwood Road.As noted,the Administration views the proposed ordinance as an"interim measure"until quiet zones are established where the rail line intersects City streets.(The Administration provided a copy of the final agreement,and it is attached to this memorandum.) The agreement became effective on March 24,2003.Under the agreement the Administration and Union Pacific have worked to develop a"mutually agreeable for crossing improvements to the 900 South Line."The plan has been submitted to the Utah Department of Transportation and the Federal Railroad Administration.The Department of Transportation has approved the plan. The Railroad Administration has yet to approve it,but may soon.If the Railroad Administration approves the plan,Union Pacific then will prepare a cost estimate for implementing the plan because Union Pacific will perform most of the work on the project. According to the Administration,no funds have been allocated for the project.The Administration's rough estimate of the project's cost is$2 million.According to the • Administration,the general timetable for quiet zone implementation is to have them operational by late fall this year. 1 The proposed ordinance would reduce the distance that train engines would have to blow whistles to meet safety standards from the current 1,800 feet before an intersection to 900 feet. • According to the Administration's transmittal,the Utah Department of Transportation has approved the proposed ordinance based on Utah Law 56-1-14.The law reads in part," ... local authorities in their respective jurisdictions may by ordinance approved by the Department of Transportation... may further restrict such ringing of bells or sounding of whistles ... so as to provide for ...the elimination of the sounding of such bells or whistles or sirens,except in cases of emergency." According to the transmittal,the Administration has proposed that the City Council schedule a public hearing on the proposed ordinance.The main reason for scheduling the hearing would be to use the hearing instead of UDOT's public process.The transmittal contains a letter by a UDOT official that says in part,"Assuming that the public will be able to comment on the ordinance before it is passed,the Department will waive the public notification period that is normally required when modifications are made to a crossing." According to the Administration,implementing quiet zones on the 900 South rail line will require adopting another ordinance.The City Council may wish to consider amending the proposed ordinance to include a sunset date tied to the adoption of the anticipated quiet zone ordinance. • 2 U SLC CONTRACT NO. 08-1-03-7064 MAR 2 4 2003 IP AGREEIbILNT RV V� `�P •QER THIS AGREEMENT is made this day of , 2003, between SALT LAKE CITY CORPORATION, a municipality and political subdivision of the state of Utah ("City"), and UNION PACIFIC RAILROAD COMPANY, a corporation of the state of Delaware ("Union Pacific"). RECITALS: A. City and Union Pacific are parties to pending litigation relating to Union Pacific's use of a rail line in Salt Lake City between Redwood Road and 700 West known as 900 South and shown on Exhibit A attached and by reference made a part of this Agreement(the"900 South Line"),namely,Salt Lake City Corporation v. Union Pacific Railroad Company, Case No. 02-4080 in the U.S. Court of Appeals for the 10th Circuit, and Salt Lake City Corporation v. United States of America, Case No. 02-9526 in the U.S. Court of Appeals for the 10th Circuit. B. City and Union Pacific have reached agreement on certain issues involved in or relating to the litigation and Union Pacific's use of the 900 South Line, and wish to memorialize that agreement. AGREEMENT: • For and in consideration of the mutual covenants and agreements contained in this Agreement, City and Union Pacific agree as follows: Section 1. Quiet Zone. (a) Whistle Sounding Requirements. Union Pacific agrees to support City's efforts in obtaining Utah Department of Transportation ("UDOT") approval pursuant to Utah Code Annotated Section 56-1-14 of a City ordinance under which the required distance for whistle sounding for the grade crossings on the 900 South Line shall be decreased to 900 feet. City agrees to promptly seek enactment, and seek UDOT approval of,the ordinance. This ordinance shall, by its terms,be subject to and superceded by any other City ordinance that further restricts the use of locomotive whistles in connection with the implementation of the quiet zone contemplated in this Agreement. (b) FRA Quiet Zone Interim Order. City and Union Pacific will work together to develop a mutually agreeable plan for crossing improvements to the 900 South Line and the Downtown Area to serve as the basis for petitioning the Federal Railroad Administration("FRA") to establish the 900 South Line and the Downtown Areas as quiet zones. After the plan is developed, Union Pacific agrees to petition the Federal Railroad Administration("FRA") for interim orders creating quiet zones for the 900 South Line and the Downtown Area pursuant to 49 U.S.C. Section 20153. City agrees to cooperate with and assist Union Pacific in obtaining such FRA interim orders, including enlisting the support and assistance of UDOT. • N:\My Documents\UP\Settlement\Phase 1 Agreement 2-6-03-FINAL.doc 1 • SLC CONTRACT NO. 08-1-03-7064 1. The 900 South Line is defined as Union Pacific's rail line, running east-west and located just south of 900 South Street in Salt Lake City, from 700 West to Redwood Road, inclusive. The quiet zone shall apply to all crossings along the line in this defined area. 2. The Downtown Area is defined as Union Pacific's main line,running north-south from 600 North to 200 South inclusive. The quiet zone shall apply to the following at-grade crossings along the line in this defined area: 500 North, 400 North, 300 North, South Temple/600 West, 100 South, and 200 South. (c) Proposed FRA Quiet Zone Rule. Promptly after the proposed FRA quiet zone rules published at 65 Fed. Reg. 2230 (January 13, 2000)become effective, City agrees to designate the 900 South Line and the Downtown Area as quiet zones, and to file with the FRA for acceptance of the quiet zones. City also shall enlist the support and assistance of UDOT. Union Pacific agrees to support and assist the City in preparing and progressing the quiet zone applications. (d) Sequencing of Petitions. The petitions/applications under(b) and(c)above for 900 South and the Downtown Area shall be filed as a joint petition/application for the proposed quiet zones unless it is determined that combining both quiet zones in one petition/application will jeopardize the quiet zone for 900 South. If such a determination is made, separate petitions/applications will be filed and the filing sequence will be in the order perceived as the most favorable for FRA approval of the 900 South quiet zone. (e) Compliance with Conditions to UDOT Approval/FRA Orders. City and UP agree that the cost and expense of any conditions to obtaining the UDOT approval and FRA orders referred to above in Section 1, including, without limitation, crossing improvements, shall be borne by City, and that work toward implementing the quiet zone conditions will proceed only upon approval of funds by the Salt Lake City Council. After the necessary improvements shall have been determined and designed, and the City and Union Pacific shall have established a mutually agreeable procedure for payment by the City to Union Pacific for the cost and expense of any such improvements that,by their nature, may be installed only by Union Pacific, Union Pacific will order the necessary materials for such improvements within thirty(30) calendar days of receipt of payment from City, and, after delivery of the materials, shall prioritize the work of installing such improvements so that such improvements shall be installed, tested, and fully functional as soon as reasonably practicable. Notwithstanding the foregoing, if the parties determine it would be more economical for City to order the materials for the improvements to be installed by UP, such materials shall be ordered by City and not by UP. (f) Maintenance. City shall bear responsibility for maintaining in a fully functional condition all signage and street improvements required as supplemental safety measures to implement the quiet zones. Union Pacific shall bear responsibility for maintaining in a fully functional condition all crossing signals and crossing gates installed as supplemental safety measures in the quiet zones. City will reimburse Union Pacific fully for any repair or replacement of crossing signals or gates resulting from damage or destruction to City-funded signals or gates • N:\My Documents\UP\Settlement\Phase 1 Agreement 2-6-03-FINAL.doc 2 SLC CONTRACT NO. 08-1-03-7064 caused by the acts of anyone other than Union Pacific, except that the City shall not be required to make such reimbursement if the Federal Railroad Administration(FRA) shall, by rule, place the financial obligation for such repair or replacement on the railroad. City shall not be responsible for maintenance,repairs, or replacement of railroad crossing equipment due to ordinary wear and tear. Any equipment (such as,by way of example but not in limitation, directional horns, traffic signals and enforcement cameras)that is interconnected to, but not an integral component of, UP's signal equipment, shall, for purposes of this Section 1, be deemed to be a street improvement. Section 2. Transportation of Nuclear Materials. Union Pacific agrees that it shall not transport over the 900 South Line spent nuclear fuel, as defined in 40 CFR 191.02(g), or transuranic radioactive waste, as defined in 40 CFR 191.02(i), carried by special manifest trains to Yucca Mountain or any other temporary or long-term storage facility, unless such transportation is due to emergency, or is required on the 900 South line by specific directive of the United States Government or order of a court of competent jurisdiction. Union Pacific agrees not to initiate or support any request for such order. For purposes of this Section 2, the term "emergency" means the occurrence of an event such as a landslide, mudslide, derailment, labor strife or other substantial damage to or blockage or disruption of another rail line of Union Pacific, such that the shipment of the nuclear materials in question will be significantly delayed unless the 900 South Line is utilized for their transport. Section 3. Speed Limits. Union Pacific represents that current track conditions, equipment and • operating standards do not allow trains on the 900 South Line to exceed thirty(30)miles per hour because of the curve off the rail line to Provo just north of Roper Yard, and that this speed limitation is reflected in the current Union Pacific General Orders (timetable): Union Pacific will not initiate any upward revision of this speed limitation without first providing the Salt Lake City Mayor and City Council at least ninety(90) days' advance written notice and making representatives available to meet with the Mayor and City Council to discuss the justification for the proposed change. Section 4. Fencing. City and Union Pacific will work together to develop a mutually agreeable plan for appropriate fencing and other barriers (such as Jersey barriers at closed crossings) for portions of the right of way of the 900 South Line. Within thirty(30) days after the plan is developed, Union Pacific shall advance to City all funds necessary to purchase and install all fencing/barriers, except for barriers needed to effectuate street closures, which shall be installed at the City's expense. Upon receipt of such funds, City agrees to install, repair or replace fencing/barriers in accordance with the plan. City shall be solely responsible for maintaining the fencing/barriers at its cost and expense. Section 5. Crossing Guards. Union Pacific agrees to reimburse the City for the cost of crossing guards at Navajo and Emery Streets through December 31, 2002. City agrees to hire or contract for such crossing guards and, effective January 1, 2003, to bear the entire cost and expense of such crossing guards at least through July 1, 2006, or whatever period of time City deems necessary to establish safe rail crossing habits among school children, whichever is longer. N:\My Documents\UP\Settlement\Phase 1 Agreement 2-6-03-FINAL.doc 3 SLC CONTRACT NO. 08-1-03-7064 Section 6. No Admission of Liability. This Agreement is entered into pursuant to settlement discussions between the parties concerning the Litigation and Union Pacific's use of the 900 • South, and is not and shall not be deemed an admission of liability with respect to any matter relating to the Litigation or Union Pacific's use of the 900 South Line. Section 7. Funds Subject to Appropriation. Any obligation by City to expend funds or incur costs and expenses under this Agreement is subject to applicable law and appropriation by the Salt Lake City Council. Section 8. Representations. UP represents that it has not: (a)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; (b)retained any person to solicit or secure this Agreement upon an agreement or understanding for a commission,percentage, brokerage or contingent fee, other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business; (c) knowingly breached any of the ethical standards set forth in the City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or(d) 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 the City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code. IN WITNESS WHEREOF, Salt Lake City Corporation and Union Pacific Railroad Company have caused this Agreement to be duly executed by their authorized representatives as of the date first above written. RECORDED • ° 2 SALT LAKE CITY CORPORATION CITY LLAtu b By: Its: � ;yeL wwm.,e ATTEST AND COUNTERSIGN: ��yP •C12r1;N,+, CHIEF DEPUTY -IT • 'CO' cr s'�~N, DRATti '� 1N PACIFIC RAI ROA COMPANY B . Y Its: d or 0 i N:\My Documents\UP\Settlement\Phase 1 Agreement 2-6-03-FINAL.doc 4 SLC CONTRACT NO. 08-1-03-7064 APPROVED AS TO FORM: ISTOPHER B' • HALL Senior City Attorney • • N:\My Documents\UP\Settlement\Phase 1 Agreement 2-6-03-FINAL.doc 5 ]U:',1 0 2 2003 • 5 C. "ROCKY" ANDERSON - `I AI GI'.Yµ GORPORATIO ` MAYOR OFFICE OF THE MAYOR COUNCIL TRANSMITTAL TO: Rocky J. Fluhart 7i/ DATE: May 28, 2003 Chief Administrative Officer FROM: ;' -D.J. Baxter Senior Advisor to the Mayor SUBJECT: Ordinance to Reduce Train Whistle Sounding Distance on 900 South ACTION ITEMS: (1) Schedule briefing, public hearing, and vote before the City Council to enact section 14.44.095 of the Salt Lake City • Code. Hearing will require 7 days published notice. DISCUSSION: As part of Salt Lake City's Phase I agreement with Union Pacific regarding 900 South, Union Pacific agreed to reduce the approach distance for blowing its whistles on the 900 South line. The railroad's typical practice is that a certain distance before reaching a street crossing, the trains will begin blowing the whistle, and continue blowing until the locomotive has reached the crossing. Currently, this distance on the 900 South line is about 1800 feet. Under our agreement, instead of starting the whistle blow 1800 feet before the crossing, Union Pacific has agreed to not start blowing until 900 feet before the crossing, reducing significantly the amount of whistle-blowing on the line. This is just an interim measure which we hope will provide some relief to the residents until we get the full quiet zone in place. The means for implementing this change is enacting a new city ordinance, which UDOT must approve, setting forth the new whistle sounding distance requirement. The City Attorney's office has drafted the attached ordinance, and UDOT has provided written approval. Union Pacific has committed to make the • changes as soon as Salt Lake City adopts the ordinance. 451 SOUTH STATE STREET, ROOM 306, SALT LAKE CITY, UTAH 841 1 1 TELEPHONE: 801-535-7704 FAX: 80 1-535-6331 Recv��eo PnPca ATTACHMENTS: (1) Proposed Ordinance Section 14.44.095 (2) UDOT Approval Letter CONTACT PERSON: D.J. Baxter, 535-7735 • 2 SALT LAKE CITY ORDINANCE No. of 2003 (900 South Railroad Line Whistle Restrictions) AN ORDINANCE ENACTING SECTION 14.44.095, SALT LAKE CITY CODE, RELATING TO RESTRICTIONS OF RAILROAD HORNS AND WHISTLES ON THE 900 SOUTH RAIL LINE . Be it ordained by the City Council of Salt Lake City, Utah: SECTION I. That Section 14.44.095, Salt Lake City Code, relating to Restrictions of Railroad Horns and Whistles on the 900 South rail line, is hereby enacted to read as follows: 14.44.095 900 SOUTH STREET RAILROAD HORN QUIET ZONE: Nothwithstanding the provisions of Section 14.44.090, with respect to the rail line that parallels 900 South Street at approximately 950 South, and effective for all streets from Redwood Road to 700 West Street, inclusive, no operator of a railroad locomotive or any other railroad vehicle shall cause or permit any locomotive-mounted audible warning device to be sounded any further than 900 feet distant from any street/track crossing, measuring such distance from the front of an approaching locomotive or other railroad vehicle to the middle of the pavement of an upcoming street, except when, in the judgment of the operator of the locomotive or vehicle, it is necessary or prudent to sound such device to prevent damage to property or injury to persons. 1 SECTION 2. This ordinance shall take effect thirty days after the date of its first • publication. Passed by the City Council of Salt Lake City, Utah this day of , 2003. CHAIRPERSON ATTEST: CHIEF DEPUTY CITY RECORDER Transmitted to Mayor on Mayor's Action: Approved. Vetoed. S MAYOR ATTEST: CHIEF DEPUTY CITY RECORDER (SEAL) Ordinance No. of 2003. Published: ATTEST: G:\Ordina03\Quiet Zone OrdinanceF.doc 2 ✓' f TH` VD; } 1rit F / c tJ 11,1 W Michael O. Leavitt State of Utah John R. Njord, P.E. Governor Department of Transportation Executive Director May 7, 2003 D.J. Baxter Senior Advisor Mayor's Office, Salt Lake City 451 South State Street#306 Salt Lake City, UT 84111 Re: Proposed City ordinance for 900 South Railroad Line Whistle Restrictions Dear Mr. Baxter: The Utah Department of Transportation has reviewed the proposed city ordinance restricting locomotive horns on the 900 South railroad line. In accordance with Utah Code 56-1-14, the Department of Transportation has found that restricting the locomotive horns to sounding within 900 feet of the crossing will not cause undue reduction in user safety at the crossings included in the ordinance. Therefore, Salt Lake City is hereby granted permission to enact the proposed ordinance. Please notify this office when the proposed ordinance comes before the City Council. Assuming that the public will be able to comment on the ordinance before it is passed, the Department will waive the public notification period that is normally required when modifications are made to a crossing. Once the Mayor has approved the ordinance, the Department will authorize Union Pacific Railroad to make the necessary operational and signing changes to enact the ordinance. The Utah Department of Transportation retains the right to revoke this permission to restrict locomotive horns should the Department find that safety conditions are negatively impacted by the proposed ordinance. I appreciate the opportunity to work with you to improve the conditions for the citizens located in this area. 41111 Lath! Where ideas connect" Calvin L.Rampton Complex 4501 South 2700 West • Salt Lake City,Utah 84119-5998 • Telephone(801)965-4000 • Fax(801)965-4338 • www.utah.gov • Page 2 May 7, 2003 Proposed City ordinance for 900 South Railroad Line Whistle Restrictions I am available to meet with the Council if you think it would be helpful in answering questions regarding this proposed ordinance, or any other railroad related questions. Please feel free to contact nie at 801-965-4176 should questions arise. Sincerely, Ly( Michael S. Seely, P.E. Chief Railroad &Utilities Engineer cc: Jim Marshall • Randy Park Carlos Braceras. SALT LAKE CITY COUNCIL STAFF REPORT DATE: June 6,2003 SUBJECT: REFINANCE HOUSING AUTHORITY BONDS AFFEc IEv COUNCIL DISTRICTS: Citywide(guarantee of bonds from Citywide revenue) STAFF REPORT BY: Gary Mumford ADMINISTRATIVE DEFT. Community and Economic Development AND CONTACT PERSON: Luann Clark CC: Rocky Fluhart,David Nimkin,Alison Weyher,David Dobbins,LuAnn Clark,Dan Mule,DJ Baxter KEY ELEMENTS: The Salt Lake City Housing Authority is requesting approval from the City Council to refinance Housing Authority bonds to take advantage of low interest rates. Salt Lake City assisted in credit enhancing bonds issued by the Housing Authority in 1987. • MATTERS AT ISSUF/QUESTIONS FOR THE ADMINISTRATION: The Housing Authority issued the bonds to finance housing projects primarily for the elderly. The Housing Authority loaned the proceeds to a non-profit subsidiary of the Housing Authority, the Housing Development Corporation (HDC). The City assisted in credit enhancing the bonds, which allowed the Housing Authority to use the City's bond rating to obtain favorable fmancing. A few years after the bonds where issued, the Housing Development Corporation had financial difficulties and did not have adequate funds to make the bond payments. In 1991, the City made loans to the Housing Development Corporation. As part of the solution to reduce the deficit, the bonds were refmanced in 1995. Because of the slow economy and higher than usual vacancy rates, the Housing Development Corporation is again experiencing some cash flow problems and has had to defer maintenance. Refinancing the 1995 bonds will decrease the debt service requirements and free up some bond reserves to be used for roof repairs, replacing stairways, refinishing hallway decks, and replacing interior doors. The refmancing is proposed to be a private placement with Zions First National Bank. The refunding of the bonds will not change the City's obligation on the 40 bonds. The bonds will be outstanding for 20 years, but the interest rate is guaranteed for the first 10 years. After 10 years the rate will be adjusted to an independent index. If interest rates increase tremendously in 2013, the Housing Authority could consider selling projects to pay off the bonds. There are several schedules attached to the Administration's transmittal. • Perhaps the most informative is the "Savings Analysis" schedule prepared by Municipal Bond Consulting noted as page 3 at the bottom. This schedule shows the current debt service requirements, the proposed debt service and the total savings. Another schedule, titled "Additional HDC Debt 8s Revenues," (noted as page 10) shows that the Housing Development Corporation anticipates a negative cash balance beginning in fiscal year 2006 when the City's loans begin to be due. The Council may wish to discuss with City administration and with representatives of the Housing Authority risks to the City and any other options explored for resolving the cash-flow difficulties. Attached is a letter from the City's fmancial advisor confirming the savings estimates made by the Housing Authority's fmancial advisor. BACKGROUND: In 1987, the Salt Lake City Housing Authority issued $14,900,000 of bonds and loaned the proceeds to the Housing Development Corporation, a non-profit subsidiary of the Housing Authority to purchase land and improve properties. Salt Lake City guaranteed the bonds. Bond proceeds were used to purchase the Riverside Apartments, Ben Albert Apartments, and to purchase land. The • City loaned $800,000 ($500,000 federal grant and $300,000 of CDBG funds) to help purchase the Ben Albert Apartments. Loan repayments begin in 2006. A few years after the bonds were issued, the Housing Development Corporation had financial difficulties and did not have sufficient funds to make the bond payments. The City established a team to explore solutions. The team recommended that the Housing Development Corporation build a housing project on land previously purchased. The Housing Development Corporation built Hawthorne Court on the land with the remaining bond proceeds. The City loaned $495,000 of CDBG funds to purchase a new boiler for the Ben Albert Apartments. The City purchased the Canterbury project for the Housing Development Corporation using CDBG funds. In 1995, the bonds where refinanced to take advantage of declining interest rates and to lower annual debt service requirements. Recently, the Housing Development Corporation has had to defer some maintenance because cash flow difficulties. The proposed bond refmancing will reduce annual debt service by$70,000 to $130,000 per year and free up $500,000 of debt service reserve funds for urgent capital improvements. Refinancing the bonds may help the Housing Development Corporation in the long-term to meet its bond repayments as well as repay the City. 4110 MAY 3 0 2003 ALISI N WEYHER ~P..�� 1�A a� "' ��`� `T,�OPRAII`v � ROSS C. "ROCKY" ANDERSON • DIRECTOR COMMUNITY AND ECONOMIC DEVELOPMENT MAYOR COUNCIL TRANSMITTAL TO: RockyFluhart, Chief Adminis tive Offi< - DATE: May 30, 2003 FROM: Alison Weyher, CED Directo RE: Salt Lake City Housing Authority/Housing Development Corporation Bond Refinancing STAFF CONTACT: LuAnn Clark,HAND Director DOCUMENT TYPE: The bond resolution and appropriate legal documents will be transmitted when they are received from bond counsel. BUDGET IMPACT: See the discussion below. DISCUSSION: The Salt Lake City Housing Authority issued$14,900,000 of bonds in 1987 at an average rate of 7.25%, and loaned the proceeds to the Housing Development Corporation(HDC), a non-profit subsidiary of the Housing Authority, to • purchase land and improve properties. Salt Lake City secured the bonds and used its bond rating to help the bonds gain a more favorable reception in the market place. A lease/sub-lease agreement was executed whereby the HDC leased the projects to the City, and the City subleased them to the Housing Authority. The bonds were also secured by deeds of trust on the Riverside Apai tiiients and other land that was owned by the HDC. A few years after the bonds were issued, the HUD had financial difficulties and did not have adequate funds to make the bond payments. The City put together a team to develop a"bail out"plan for the HDC to ensure that the bond payments were made and that the City's interests were protected. A plan was developed which included the City purchasing the Canterbury project using CDBG funds for a Section 108 loan($300,000 for 6 years and the rents of the Canterbury were used to make the 108 loan payments). The City also applied for a discretionary federal grant in the amount of$500,000 and used $300,000 of CDBG funds to purchase the Ben Albert project. The remaining HDC funds were invested in a variety of instruments, including municipal bonds and treasury notes, that were receiving attractive interest rates. The monies received from rents at Ben Albert and Riverside, as well as the interest earnings,were combined to make the annual bond payments. In late 1991, interest rates began to drop and some of the HDC municipal bonds were called and the HDC was not able to invest the cash in high interest earning investments. The HDC projected a deficit that would have grown to approximately$6.2 million in 2030. In addition, the Ben Albert project needed a new boiler and reserve funds were not available. The City used$495,000 of CDBG funds to purchase a new boiler, and rents at 451 SOUTH STATE STREET, ROOM 404, SALT LAKE CITY, UTAH 84111 TELEPHONE: B01-535-6230 FAX: 801-535-6005 RECYOLCO PAPER the Ben Albert and the Riverside projects were escalated with subsidies found for lower income residents. Because of the projected deficit the bailout team was reconvened. 10 The bailout team recommended in 1993 that the HDC build a housing project on the Hawthorne property(700 East 600 South). The project was designed to provide a cash flow to the HDC to reduce the deficit and provide adequate funds to make bond payments. Also, it was recommended that the$14,780,000 of Series 1987 Bonds be refunded at a lower interest rate. The bonds were refunded in 1995 with proceeds of $15,770,000 bonds at average rate of 6.06%. The lease structure remained the same, debt service increased 1.5%per year, with a prepayment penalty of 2%, issuance costs of 1.8%, and negative arbitrage of$400,000. As part of the refunding a reserve fund for the properties was established and an agreement signed for the repayment of the City's $800,000 in CDBG money advanced for the purchase of the Ben Albert property and repayment of the$495,000 for the boiler replacement at the Ben Albert with payments starting in 2006. The Housing Authority is requesting approval from the City to refund the Series 1995 Bonds because the rental market has struggled for the last two years, and interest rates are at historic lows. The current interest quotes are at approximately 4.06% for 10 years. The Series 1995 Bonds can be advance refunded to generate $1,278,000 of net savings over the next 10 years ($824,000 net present value), restructure future debt service to be level, reduce the debt service reserve fund from$1,456,000 to $500,000, free up $500,000 for urgent capital improvements which will reduce operating expenses by $60,000 per year and prolong the life of the projects, reduce the annual debt service by $70,000 to $130,000 per year, and reduce the principal balance in 2013 from $13,005,000 to $12,215,000 which is a net reduction of$790,000. Attached is a list of the urgent capital repairs the Housing Authority will make with the$500,000 received from the reduction of the reserve fund. The risks to refinancing are that the interest rate is only locked for 10 years and subject to rate adjustment thereafter. However, the properties can be sold or refinanced at that time, or new bonds may be issued to generate additional savings to the extent the new rate is less than 6.06%. Refinancing also costs money—a call premium of 1.0%, transaction costs of 1.5%,negative arbitrage of$690,000 (4.0%). Waiting one year will offset 31 basis points (41 basis points taxable), or waiting two years will offset 65 basis points (87 basis points taxable). The risks of waiting, however, are that interest rates rise and savings evaporate,the Housing Authority has insufficient funds for capital improvements, and the Housing Authority will be unable to cover debt service from project reserves. The refunding of these bonds does not change the City's obligation on the bonds. The lease agreement obligates the City to pay to the HDC, as an additional rental for the projects, any amount necessary to maintain the reserve fund at an amount equal to the reserve fund requirement. The lease agreement provides that payments made by the City to replenish the reserve fund shall be made by the City within twelve months from the date the City receives notice that the amount on deposit has fallen below the requirement. • This additional rent obligation however, is explicitly subject to annually budgeted appropriations being made by the City for such purpose. If the City decided not to appropriate the funds an"event of non-appropriation"will occur and the City would be required to vacate the projects. However, such an event would likely have a serious negative impact on the City's bond ratings. The goal of the City has always been to make the HDC self sufficient and create a situation wherein the HDC would not need to come back to the City for further financial assistance. The current bond refunding would assist the HDC to meet the City's goal. The City's financial advisor, Kelly A. Murdock, Senior Vice President of Wells Fargo, has reviewed the refunding proposal to ensure that it is in the City's best interest, and is supportive of going forward with it at this time. Attachments: 1. Salt Lake City Housing Authority/HDC Bond Refinancing Discussion Outline 2. Financial Summary of Salt Lake City Housing Authority Multifamily Housing Lease Revenue Refunding Bonds 3. List of Capital Repairs from the Housing Authority • • • Salt Lake City Housing Authority HDC Bond Refinancing Discussion Outline May 29,2003 1. HA issued $14,900,000 of bonds in 1987 at average rate of 7.25%. 2. Bonds proceeds were loaned to Housing Development Corp. (HDC), a wholly owned non-profit subsidiary of the Housing Authority. 3. HDC purchased land and improved property at market peak. 4. Bonds were secured by a deed of trust on properties a. Riverside Apartments b. Ben Albert Apartments (elderly housing) c. Other land 5. Bonds were additionally secured by lease/sub-lease with Salt Lake City. a. HDC leases project to City b. City subleases project to HA c. City has moral obligation to replenish debt service reserve fund 6. City built Hawthorne Court in 1993-95 with remaining bond proceeds. 7. $14,780,000 of Series 1987 Bonds were refunded in 1995 with proceeds of $15,770,000 bonds at average rate of 6.06%. a. Same lease structure,rated single-A. • b. Debt service increased 1.5% per year c. Paid 2% prepayment penalty, issuance costs of 1.8%, $400k of negative arbitrage 8. Rental market has struggled for past two years 9. Interest rates are at historic lows a. Current quotes at approximately 4.06% for 10 years 10. The Series 1995 Bonds can be advance refunded to: a. Generate $1,278,000 of net savings over next 10 years ($824,000 net present value) b. Restructure future debt service to be level c. Reduce debt service reserve fund from$1,456,000 to $500,000 d. Free up $500,000 for urgent capital improvements i. Capital improvements will reduce operating expense by $60,000 per year and prolong life of projects e. Reduce annual debt service by$70,000 to $130,000 per year f. Reduce principal balance in 2013 from$13,005,000 to $12,215,000, a net reduction of$790,000. 11. Risks/Downside to refinancing a. Interest rate is only locked for 10 years; subject to rate adjustment thereafter. • i. Can sell properties or refinance ii. New bonds will generate additional savings to the extent the new rate is less than 6.06%. • iii. Rate will adjust to MMD 5-year"Baa" index rate, currently 2.92%. b. Refinancing costs money i. Call premium of 1.0% ii. Transaction costs of 1.5% iii. Negative arbitrage of approximately$690,000 (4%) 1. Wait 1 year; offset of 31 basis points (41 bp taxable) 2. Wait 2 years; offset of 65 basis points (87 bp taxable) iv. New principal amount will be approximately$16,245,000. 12. Risk of Waiting a. Interest rates rise and savings evaporate b. HA has insufficient funds for capital improvements c. HA is unable to cover debt service from project revenues • • • Salt Lake City Housing Authority Multifamily Housing Lease Revenue Refunding Bonds, Series 1995 PV @ Date Principal Rate Interest P & I 4.05% FY Totals 07/01/03 10/01/03 $457,591 $457,591 $453,022 04/01/04 $150,000 5.250% $457,591 $607,591 $589,573 $1,065,181 10/01/04 $453,653 $453,653 $431,454 04/01/05 $160,000 5.375% $453,653 $613,653 $572,029 $1,067,306 10/01/05 $449,353 $449,353 $410,551 04/01/06 $175,000 5.400% $449,353 $624,353 $559,106 $1,073,706 10/01/06 $444,628 $444,628 $390,252 04/01/07 $185,000 5.500% $444,628 $629,628 $541,648 $1,074,256 10/01/07 $439,541 $439,541 $370,609 04/01/08 $200,000 6.000% $439,541 $639,541 $528,530 $1,079,081 10/01/08 $433,541 $433,541 $351,169 04/01/09 $225,000 6.000% $433,541 $658,541 $522,821 $1,092,081 10/01/09 $426,791 $426,791 $332,101 04/01/10 $240,000 6.000% $426,791 $666,791 $508,545 $1,093,581 10/01/10 $419,591 $419,591 $313,653 04/01/11 $260,000 6.000% $419,591 $679,591 $497,916 $1,099,181 . 10/01/11 $411,791 $411,791 $295,712 04/01/12 $285,000 6.000% $411,791 $696,791 $490,433 $1,108,581 10/01/12 $403,241 $403,241 $278,180 04/01/13 $310,000 6.000% $403,241 $713,241 $482,261 $1,116,481 07/01/13 $6,940,000 6.000% $104,100 $7,044,100 $4,715,347 07/01/13 $6,065,000 6.125% $92,870 $6,157,870 $4,122,101 $15,195,000 6.047% $8,876,408 $24,071,408 $17,757,015 $10,869,438 i Prepared by Municipal Bond Consulting, Inc. Page 1 5/29/2003 HDC 2003 Refunding v.6a.xls 0 Salt Lake City Housing Authority Multifamily Housing Lease Revenue Refunding Bonds, Series 2003 PV @ Date Principal Rate Interest P& I 4.05% FY Totals 07/01/03 01/01/04 $180,000 1.93% $316,581 $496,581 $486,715 07/01/04 $180,000 1.93% $314,844 $494,844 $475,376 $991,426 01/01/05 $180,000 2.05% $313,107 $493,107 $464,296 07/01/05 $185,000 2.16% $311,262 $496,262 $457,982 $989,370 01/01/06 $185,000 2.30% $309,264 $494,264 $447,076 07/01/06 $185,000 2.43% $307,137 $492,137 $436,307 $986,401 01/01/07 $190,000 2.61% $304,889 $494,889 $430,030 07/01/07 $190,000 2.78% $302,410 $492,410 $419,374 $987,299 01/01/08 $195,000 2.90% $299,769 $494,769 $413,011 07/01/08 $195,000 3.01% $296,941 $491,941 $402,492 $986,710 01/01/09 $200,000 3.15% $294,006 $494,006 $396,151 07/01/09 $205,000 3.28% $290,856 $495,856 $389,734 $989,863 01/01/10 $205,000 3.43% $287,494 $492,494 $379,401 07/01/10 $210,000 3.57% $283,979 $493,979 $372,984 $986,473 01/01/11 $215,000 3.74% $280,230 $495,230 $366,499 07/01/11 $220,000 3.90% $276,210 $496,210 $359,928 $991,440 01/01/12 $220,000 3.96% $271,920 $491,920 $349,727 . 07/01/12 $225,000 4.02% $267,564 $492,564 $343,227 $984,483 01/01/13 $230,000 4.09% $263,041 $493,041 $336,734 07/01/13 $235,000 4.15% $258,338 $493,338 $330,242 $986,379 07/01/13 $12,215,000 4.15% $12,215,000 $8,176,766 $16,245,000 4.054% $5,849,840 $22,094,840 $16,234,052 $9,879,840 Series 1995 Series 2003 Savings Principal &interest $24,071,408 $22,094,840 $1,976,568 less cash -$698,394 Future Value Savings $1,278,173 8.41% Present value $17,757,015 $16,234,052 $1,522,963 less cash -$698,394 NPV Savings $824,568 %of old bonds 5.43% • Prepared by Municipal Bond Consulting, Inc. Page 2 5/29/2003 HDC 2003 Refunding v.6a.xls 0 Salt Lake City Housing Authority Multifamily Housing Lease Revenue Refunding Bonds,Series 2003 Savings Analyis:to rate reset date, level amortization Principal& Current Proposed Proposed Cash Increased Accrued interest Debt Principal Debt Flow Principal Cumulative Date Balance Service Balance Service Savings Reduction Savings 07/01/03 $15,423,795 $16,245,000 -$821,205 Cash -$1,706,045 -$1,007,650 -$698,394 -$1,519,599 07/01/04 $15,271,827 $1,065,181 $15,885,000 $991,426 $73,756 $210,000 -$1,235,843 07/01/05 $15,109,677 $1,067,306 $15,520,000 $989,370 $77,937 $205,000 -$952,907 07/01/06 $14,932,314 $1,073,706 $15,150,000 $986,401 $87,305 $195,000 -$670,601 07/01/07 $14,744,770 $1,074,256 $14,770,000 $987,299 $86,958 $195,000 -$388,644 07/01/08 $14,541,770 $1,079,081 $14,380,000 $986,710 $92,372 $190,000 -$106,272 * 07/01/09 $14,313,395 $1,092,081 $13,975,000 $989,863 $102,219 $180,000 $175,947 * 07/01/10 $14,069,795 $1,093,581 $13,560,000 $986,473 $107,109 $175,000 $458,055 07/01/11 $13,805,895 $1,099,181 $13,125,000 $991,440 $107,742 $175,000 $740,797 07/01/12 $13,516,620 $1,108,581 $12,680,000 $984,483 $124,098 $160,000 $1,024,895 07/01/13 $13,201,970 $1,116,481 $12,215,000 $986,379 $130,103 $155,000 $1,309,998 07/01/14 $12,861,945 $1,122,881 $11,730,000 $986,943 07/01/15 $12,486,395 $1,137,781 $11,225,000 $986,608 07/01/16 $12,075,320 $1,150,581 $10,700,000 $985,443 Savings over 10 years %of par 07/01/17 $11,628,720 $1,161,281 $10,150,000 $988,448 Debt service savings $291,203 1.89% 07/01/18 $11,141,520 $1,174,881 $9,575,000 $990,311 Net principal reduction $986,970 6.40% 07/01/19 $10,608,645 $1,191,081 $8,980,000 $986,241 Total savings $1,278,173 8.29% 07/01/20 $10,025,020 $1,209,581 $8,355,000 $991,238 Plus cash for improvements $500,000 07/01/21 $9,385,570 $1,230,081 $7,705,000 $990,093 Plus benefit of level debt service 07/01/22 $8,685,220 $1,252,281 $7,030,000 $987,806 S07/01/23 $7,918,895 $1,275,881 $6,325,000 $989,483 Net present value of savings $824,568 5.35% 07/01/24 $7,081,520 $1,300,581 $5,590,000 $989,914 07/01/25 $6,157,870 $1,336,081 $4,825,000 $989,100 07/01/26 $5,142,558 $1,371,481 $4,030,000 $987,041 07/01/27 $4,035,867 $1,400,231 $3,200,000 $988,738 *Note:breakeven occurs in 5.5 years. 07/01/28 $2,817,492 $1,443,469 $2,335,000 $988,878 07/01/29 $1,477,280 $1,489,969 $1,435,000 $987,669 07/01/30 $0 $1,544,119 $0 $1,484,904 $30,955,637 $26,171,044 $291,203 $986,970 $1,278,173 • Prepared by Municipal Bond Consulting,Inc. Page 3 5/29/2003 HDC 2003 Refunding v.6a.xls Salt Lake City Housing Authority • Multifamily Housing Lease Revenue Refunding Bonds, Series 1995 Debt Service Reserve: $1,456,045 Avg. P& I: $1,220,997 First Call Call Date Principal Rate Interest P& I FY Totals Date Price _ 07/01/03 04/01/04 $150,000 5.250% $915,181 $1,065,181 $1,065,181 NC 04/01/05 $160,000 5.375% $907,306 $1,067,306 $1,067,306 NC 04/01/06 $175,000 5.400% $898,706 $1,073,706 $1,073,706 4/1/2005 101% 04/01/07 $185,000 5.500% $889,256 $1,074,256 $1,074,256 4/1/2005 101% 04/01/08 $200,000 6.000% $879,081 $1,079,081 $1,079,081 4/1/2003 101% 04/01/09 $225,000 6.000% $867,081 $1,092,081 $1,092,081 4/1/2003 101% 04/01/10 $240,000 6.000% $853,581 $1,093,581 $1,093,581 4/1/2003 101% 04/01/11 $260,000 6.000% $839,181 $1,099,181 $1,099,181 4/1/2003 101% 04/01/12 $285,000 6.000% $823,581 $1,108,581 $1,108,581 4/1/2003 101% 04/01/13 $310,000 6.000% $806,481 $1,116,481 $1,116,481 4/1/2005 101% 04/01/14 $335,000 6.000% $787,881 $1,122,881 $1,122,881 4/1/2005 101% 04/01/15 $370,000 6.000% $767,781 $1,137,781 $1,137,781 4/1/2005 101% 04/01/16 $405,000 6.000% $745,581 $1,150,581 $1,150,581 4/1/2005 101% 04/01/17 $440,000 6.000% $721,281 $1,161,281 $1,161,281 4/1/2005 101% 04/01/18 $480,000 6.000% $694,881 $1,174,881 $1,174,881 4/1/2005 101% • 04/01/19 $525,000 6.000% $666,081 $1,191,081 $1,191,081 4/1/2005 101% 04/01/20 $575,000 6.000% $634,581 $1,209,581 $1,209,581 4/1/2005 101% 04/01/21 $630,000 6.000% $600,081 $1,230,081 $1,230,081 4/1/2005 101% 04/01/22 $690,000 6.000% $562,281 $1,252,281 $1,252,281 4/1/2005 101% 04/01/23 $755,000 6.000% $520,881 $1,275,881 $1,275,881 4/1/2005 101% 04/01/24 $825,000 6.000% $475,581 $1,300,581 $1,300,581 4/1/2005 101% 04/01/25 $910,000 6.000% $426,081 $1,336,081 $1,336,081 4/1/2005 101% 04/01/26 $1,000,000 6.125% $371,481 $1,371,481 $1,371,481 4/1/2005 101% 04/01/27 $1,090,000 6.125% $310,231 $1,400,231 $1,400,231 4/1/2005 101% 04/01/28 $1,200,000 6.125% $243,469 $1,443,469 $1,443,469 4/1/2005 101% 04/01/29 $1,320,000 6.125% $169,969 $1,489,969 $1,489,969 4/1/2005 101% 04/01/30 $1,455,000 6.125% $89,119 $1,544,119 $1,544,119 4/1/2005 101% $15,195,000 6.137% $17,466,681 $32,661,681 $32,661,681 I • Prepared by Municipal Bond Consulting, Inc. Page 4 5/29/2003 HDC 2003 Refunding v.6a.xls • Salt Lake City Housing Authority Housing Lease Revenue Refunding Bonds, Level Amortization Debt Service Reserve: $500,000 Avg.P&I: $988,095 Date Principal Interest FY Totals 07/01/03 07/01/04 $360,000 $631,426 $991,426 07/01/05 $365,000 $624,370 $989,370 07/01/06 $370,000 $616,401 $986,401 07/01/07 $380,000 $607,299 $987,299 07/01/08 $390,000 $596,710 $986,710 07/01/09 $405,000 $584,863 $989,863 07/01/10 $415,000 $571,473 $986,473 07/01/11 $435,000 $556,440 $991,440 07/01/12 $445,000 $539,483 $984,483 07/01/13 $465,000 $521,379 $986,379 07/01/14 $485,000 $501,943 $986,943 07/01/15 $505,000 $481,608 $986,608 07/01/16 $525,000 $460,443 $985,443 07/01/17 $550,000 $438,448 $988,448 07/01/18 $575,000 $415,311 $990,311 07/01/19 $595,000 $391,241 $986,241 • 07/01/20 $625,000 $366,238 $991,238 07/01/21 $650,000 $340,093 $990,093 07/01/22 $675,000 $312,806 $987,806 07/01/23 $705,000 $284,483 $989,483 07/01/24 $735,000 $254,914 $989,914 07/01/25 $765,000 $224,100 $989,100 07/01/26 $795,000 $192,041 $987,041 07/01/27 $830,000 $158,738 $988,738 07/01/28 $865,000 $123,878 $988,878 07/01/29 $900,000 $87,669 $987,669 07/01/30 $1,435,000 $49,904 $1,484,904 $16,245,000 $10,933,694 $27,178,694 • Prepared by Municipal Bond Consulting, Inc. Page 5 5/29/2003 HDC 2003 Refunding v.6a.xls • Sources & Uses of Funds Sources Principal $16,245,000 Old DSR $1,456,045 Cash with trustee $250,000 $17,951,045 Uses Escrow cost $16,704,944 New DSR $500,000 Project improvements $500,000 Issuance costs Purchaser's fee $81,225 0.50% Placement fee $81,225 0.50% Bond counsel $45,000 Trustee $6,000 Escrow agent $3,500 CPA Verification $2,500 Title insurance $9,000 Other $10,000 Misc.&rounding $7,650 1.5% $17,943,394 • Cash before $1,706,045 Cash after $1,007,650 Net cash used $698,394 10 year savings analysis Net future value savings $1,278,173 8.41% Net present value savings $824,568 5.43% Note: The rate index for principal coming due after 2013 is the"Baa"5-year index as published by MMD(2.92%today). • Prepared by Municipal Bond Consulting, Inc. Page 6 5/29/2003 HDC 2003 Refunding v.6a.xls 0 Salt Lake City Housing Authority Series 1995 Escrow Calculation date: 07/01/03 Maturing Called 1%Call Interest Escrow Investment Escrow Principal Principal Premium Due Req'ts. Rate Cost(est'd.) 07/01/03 $1,210,000 $12,100 $18,150 $1,240,250 0.00% $1,240,250 10/01/03 $421,291 $421,291 1.05% $420,189 04/01/04 $150,000 5.250% $421,291 $571,291 1.10% $566,610 10/01/04 $417,353 $417,353 1.15% $411,414 04/01/05 $160,000 5.375% $417,353 $14,389,103 1.30% $14,066,482 04/01/05 5.400% $175,000 $1,750 04/01/05 5.500% $185,000 $1,850 04/01/05 6.000% $7,250,000 $72,500 04/01/05 6.125% $6,065,000 $60,650 04/01/05 $310,000 $14,885,000 $148,850 $1,695,438 $17,039,288 $16,704,944 $15,195,000 Escrow cost @ market rates $16,704,944 Escrow cost @ new bond yield $16,021,714 Negative arbitrage $683,230 Call premium $148,850 Costs of issuance $246,100 Total transaction costs $1,078,181 • Net savings over 10 years $1,278,173 41111 Prepared by Municipal Bond Consulting,Inc. Page 7 5/29/2003 HDC 2003 Refunding v.6a.xls Proposed New Debt Service Debt service reserve: $500,000 Period New Debt Annual bond Less DSR Net Ending Service Expenses Earnings @ Debt Service 4.05% 7/1/03 7/1/04 $991,426 $4,000 -$20,250 $975,176 7/1/05 $989,370 $4,120 -$20,250 $973,240 7/1/06 $986,401 $4,244 -$20,250 $970,395 7/1/07 $987,299 $4,371 -$20,250 $971,419 7/1/08 $986,710 $4,502 -$20,250 $970,962 7/1/09 $989,863 $4,637 -$20,250 $974,250 7/1/10 $986,473 $4,776 -$20,250 $970,999 7/1/11 $991,440 $4,919 -$20,250 $976,109 7/1/12 , $984,483 $5,067 -$20,250 $969,300 7/1/13 $986,379 $5,219 -$20,250 $971,348 7/1/14 $986,943 $5,376 -$20,250 $972,068 7/1/15 $986,608 $5,537 -$20,250 $971,894 7/1/16 $985,443 $5,703 -$20,250 $970,896 7/1/17 $988,448 $5,874 -$20,250 $974,072 7/1/18 $990,311 $6,050 -$20,250 $976,112 • 7/1/19 $986,241 $6,232 -$20,250 $972,223 7/1/20 $991,238 $6,419 -$20,250 $977,406 7/1/21 $990,093 $6,611 -$20,250 $976,454 7/1/22 $987,806 $6,810 -$20,250 $974,366 7/1/23 $989,483 $7,014 -$20,250 $976,247 7/1/24 $989,914 $7,224 -$20,250 $976,888 7/1/25 $989,100 $7,441 -$20,250 $976,291 7/1/26 $987,041 $7,664 -$20,250 $974,456 7/1/27 $988,738 $7,894 -$20,250 $976,382 7/1/28 $988,878 $8,131 -$20,250 $976,759 7/1/29 $987,669 $8,375 -$20,250 $975,794 7/1/30 $1,484,904 $8,626 -$520,250 $973,280 $162,839 -$1,046,750 $26,294,783 • Prepared by Municipal Bond Consulting, Inc. Page 8 4:37 PM 5/29/2003 HDC FinPlan v.6a.XLS • Project Financing Summary 1111 Estimated Debt Service Coverage Total Net New Net Estimated Surplus Date Revenues Debt Service Coverage (Shortfall) 7/1/03 $1,037,962 7/1/04 $994,243 -$975,176 102% $19,068 7/1/05 $1,018,209 -$973,240 105% $44,970 7/1/06 $1,011,728 -$970,395 104% $41,333 7/1/07 $1,049,762 -$971,419 108% $78,342 7/1/08 $1,074,517 -$970,962 111% $103,555 7/1/09 $1,099,864 -$974,250 113% $125,614 7/1/10 $1,125,818 -$970,999 116% $154,819 7/1/11 $1,152,394 -$976,109 118% $176,285 7/1/12 $1,179,606 -$969,300 122% $210,306 7/1/13 $1,207,470 -$971,348 124% $236,122 7/1/14 $1,236,002 -$972,068 127% $263,933 7/1/15 $1,265,217 -$971,894 130% $293,323 7/1/16 $1,295,134 -$970,896 133% $324,238 7/1/17 $1,325,767 -$974,072 136% $351,696 7/1/18 $1,357,136 -$976,112 139% $381,024 7/1/19 $1,389,257 -$972,223 143% $417,034 7/1/20 $1,422,149 -$977,406 146% $444,742 7/1/21 $1,455,830 -$976,454 149% $479,376 7/1/22 $1,490,320 -$974,366 153% $515,954 7/1/23 $1,525,639 -$976,247 156% $549,392 7/1/24 $1,561,806 -$976,888 160% $584,918 7/1/25 $1,598,842 -$976,291 164% $622,551 7/1/26 $1,636,768 -$974,456 168% $662,312 7/1/27 $1,675,605 -$976,382 172% $699,224 7/1/28 $1,715,377 -$976,759 176% $738,618 7/1/29 $1,756,105 -$975,794 180% $780,311 7/1/30 $1,797,813 -$973,280 $824,532 $37,456,337 -$26,294,783 • Prepared by Municipal Bond Consulting, Inc. Page 9 4:37 PM 5/29/2003 HDC FinPlan v.6a.XLS Additional HDC Debt & Revenues • Other Loan Surplus Cumulative Date Repayments (Shortfall) cash flow 7/1/03 7/1/04 -$18,395 $672 $672 7/1/05 -$18,395 $26,574 $27,246 7/1/06 -$112,179 -$70,846 -$43,600 7/1/07 -$112,179 -$33,837 -$77,437 7/1/08 -$112,179 -$8,624 -$86,061 7/1/09 -$112,179 $13,435 -$72,626 7/1/10 -$112,179 $42,640 -$29,987 7/1/11 -$112,179 $64,105 $34,118 7/1/12 -$112,179 $98,126 $132,245 7/1/13 -$112,179 $123,943 $256,187 7/1/14 -$112,179 $151,754 $407,941 7/1/15 -$112,179 $181,143 $589,085 7/1/16 -$99,000 $225,238 $814,323 7/1/17 -$99,000 $252,696 $1,067,018 7/1/18 -$99,000 $282,024 $1,349,042 7/1/19 -$99,000 $318,034 $1,667,076 7/1/20 -$99,000 $345,742 $2,012,818 7/1/21 $0 $479,376 $2,492,195 7/1/22 $0 $515,954 $3,008,149 7/1/23 $0 $549,392 $3,557,541 7/1/24 $0 $584,918 $4,142,459 7/1/25 $0 $622,551 $4,765,009 7/1/26 $0 $662,312 $5,427,321 7/1/27 $0 $699,224 $6,126,545 7/1/28 $0 $738,618 $6,865,163 7/1/29 $0 $780,311 $7,645,474 7/1/30 $0 $824,532 $8,470,007 -$1,653,585 $8,470,007 • Prepared by Municipal Bond Consulting, Inc. Page 10 4:37 PM 5/29/2003 HDC FinPlan v.6a.XLS Detail of Other HDC Debt (All Unsecured) • SL Co. HA City Loan Total Other Date Note Repayment Debt Payments 1/0/00 7/1/03 $18,395 $18,395 7/1/04 $18,395 $18,395 7/1/05 $18,395 $18,395 7/1/06 $18,395 $93,784 $112,179 7/1/07 $18,395 $93,784 $112,179 7/1/08 $18,395 $93,784 $112,179 7/1/09 $18,395 $93,784 $112,179 7/1/10 $18,395 $93,784 $112,179 7/1/11 $18,395 $93,784 $112,179 7/1/12 $18,395 $93,784 $112,179 7/1/13 $18,395 $93,784 $112,179 7/1/14 $18,395 $93,784 $112,179 7/1/15 $18,395 $93,784 $112,179 7/1/16 $99,000 $99,000 7/1/17 $99,000 $99,000 • 7/1/18 $99,000 $99,000 7/1/19 $99,000 $99,000 7/1/20 $99,000 $99,000 7/1/21 $0 7/1/22 $0 7/1/23 $0 7/1/24 $0 7/1/25 $0 7/1/26 $0 7/1/27 $0 7/1/28 $0 7/1/29 $0 7/1/30 $0 $239,141 $1,432,840 • Prepared by Municipal Bond Consulting, Inc. Page 11 4:37 PM 5/29/2003 HDC FinPlan v.6a.XLS 1 200 FHLB Seattle 9-10 Year Advance History monthly average rates 1 o.00 6.00 - yr. Zgr.Woit;ireakevty2=S,50, i!Z 5 o0 I Ar.w��� bec�Kcveh=5au7 z'q1-.,..yo ,l •b976 -redasi 4.00 - 2.00 - 0.00 00 00 0� O O� 9331' 00 0 0 43 OP 00 06 0\ O\ O`b 0� 00 0 0 00 O\ O\ 01' O o7 J� J� ,rdt` ,J� �aC sJ\ �raC �; ,aO ,J� �JC\ �J\ ,rd� ,J 1 ,J� ,dt\ 'J\ )aC 'J\ ,ate ,J\ � J • • • • 5/30/2003 Capital Repairs From Release of Bond Reserves Hawthorne Court Roof over the Parking Deck 260,000 Hallway Decks Refinish 30,000 Canterbury Apartments Reroof all Buildings 90,000 Replace Stairways 78,000 Ben Albert Replace Interior Doors 42,000 Total 500,000 • • 1?(643174411 Item A-9 The Council will discuss policy direction and other issues related to the budget. 1 . Clarification on Revenue Estimates Now that the State Tax Commission has recognized the calculation error on the City's property taxes, Council staff's revenue estimates are only $219,000 less than the projected revenue included in the Mayor's Recommended Budget. The Council may wish to adopt the more conservative revenue estimates, or the Council may wish to adopt the revenue projections in the Mayor's Recommended Budget since the difference is only 1/10 of 1%. 2. CIP Critical Projects The Administration has provided a list of time sensitive CIP projects in response to a Council request made during the May 29 Council briefing. The listing of the projects is attached. The sum of the projects is $1,575,000. There is one project listed in the additional funding sources section of the CIP that is $400,000. The Mayor's Recommended Budget for CIP is $27,601,997. The following categories make up this amount: On-going General Fund Allocation =$10,878,731 General Fund Balance Allocation =$ 3,002,544 Impact Fee Allocation =$ 1,203,160 Class C CIP Allocation =$ 1,400,000 GO Bond Allocation =$ 6,950,559 CDBG CIP Allocation =$ 1,968,000 Additional Funding Sources Allocation =$ 2,199,003 Total =$27,601,997 • During the May 29, 2003 meeting the Council tentatively decided to fund the debt projects and those obligations not related to the Pay-as- you-Go projects. The Council would appropriate an amount equal to the Pay-as-you-Go portion of the CIP to a "holding" account in the CIP so that the Council could consider funding specific projects at a later time. If the Council decides to fund projects that it considers time • sensitive then the appropriation to the "holding" account would be reduced by the sum of the time sensitive projects. During the discussion on General Fund revenue on June 5, 2003 the Council tentatively decided that it wanted to reduce revenue projections by $219,000, reduce General Fund balance appropriation by $1,002,544 and did not want to recognize the $326,675 in anticipated revenue from increases in Telecom Fees. To maintain 9% funding for CIP, the appropriation to CIP would be reduced by $139,339. (Note: One Council member inquired about the 9% CIP calculation. For calculation purposes each 1% of General Fund Revenue equals $1,545,000.) Please see attached for Administration's response. 3. Quiet Zone Funding The City has entered into an agreement with Union Pacific Railroad to II mitigate the effect of trains on neighborhoods surrounding the 900 South rail line between 700 West Street and Redwood Road. The agreement became effective on March 24, 2003. The proposed mitigation plan has been submitted to the Utah Department of Transportation and the Federal Railroad Administration. The Department of Transportation has approved the plan. The Railroad Administration has yet to approve it, but may soon. If the Railroad Administration approves the plan, Union Pacific then will prepare a cost estimate for implementing the plan because Union Pacific will perform most of the work on the project. According to the Administration, no funds have been allocated for the project. The Administration's rough estimate of the project's cost is $2 million. According to the Administration, the general timetable for quiet zone implementation is to have them operational by late fall this year. Because this is a potential obligation of the City and the City entered into an agreement that became effective in March 2003, the Council • may wish to consider funding this item as part of the Fiscal Year 2003-2004 Budget instead of considering this issue during a future • budget opening. 4. Legislative Intent Statements Please see attached for a list of potential Legislative Intent Statements for fiscal year 2003-2004. 5. Potential Council Budget Policies One Council Member indicated an interest that Council Members may wish to consider adopting a Council Budget Policy regarding honoring negotiated union contracts. As listed in the potential Legislative Intent Statements (item L), if the fiscal year revenue information that is reported to the Council is less than the anticipated revenue as contained in the Council adopted fiscal • year 2003-2004 budget, the Council may wish to consider reducing department budgets to reflect the revised revenue information during February 2004. 6. Fund Balance Please see attached for a detailed list of uses and sources of fund balance. 7. Follow-up Responses from the Administration a. Career Ladder Program in the Prosecutor's Office Please see attached for the Administration's response. b. Events Coordinator Position • Please see attached for the Administration's response. c. Emergency Management Position 0 Please see attached for the Administration's response. d. Police Community Mobilization Program Please see attached for the Administration's response. e. Personal Leave Program Attached is an issue paper that was included in the Mayor's Recommended Budget book for fiscal year 1997-98 regarding establishing a personal leave program. This paper provides background information of the personal leave program including benefits of reducing employee absenteeism and reducing the long- term liability to the City. The City's audited financial statements as of June 30, 2002 report a liability of $13.3 million for accumulated vacation and sick leave (portion based on likelihood of employees remaining with the City until retirement). This liability excludes • enterprise funds. One Council Member has expressed interest in allocating fund balance to an account to address this unfunded liability. f. Council Requested Budget Reductions from the Administration. Please see attached for the Administration's response. 8. Council potential budget reductions Please see attached for list. • 2 JUN 0 5 2003 Yq�'m ..� s3'�y` ,t-re'"'?';5���.1��^�- £ ' �`=�?[? �' :fir' www �_.,vR A'a .i...�-.,4,..i .:A -s To: Michael Sears CC: Rocky Fluhart, Steve Fawcett, Gordon Hoskins, Rick Graham, Tim Harpst, Max Peterson From: Randy Hillier Date: June 4, 2003 RE: Time Sensitive CIP Requests During the May 29 Council Briefing, the suggestion was made to delay the adoption of the entire fiscal year 2004 CIP budget until the Council has a better understanding of budgetary conditions, with the exception of CIP funds dedicated to debt service obligations. Although delaying the bulk of CIP projects, even for a few months, will not adversely impact their construction start or completion date, there are some projects which will benefit from an earlier decision. Engineering schedules projects as soon as they are budgeted so each project can be accomplished in as timely and efficient a manner as possible, while ensuring a complete and high quality design process is followed. As a general rule,the design process for the smaller, less complicated projects is begun immediately following the July 1 budget approval. This allows for construction bidding in February or March of the following year, with construction to begin in late spring or early summer. Projects which can be bid • early in the calendar year, while contractors are looking for next summer's work, generally receive lower bids. Shown below is a list of projects and a discussion of the reasons why a timely decision is best. Quayle Avenue Street Construction This request is for$120,000. The design survey and geotechnical investigation need to start in July to allow for the project to be bid by February of 2004. Sidewalk Replacement Special Improvement District This request is for$400,000. The field inventory of existing sidewalk conditions needs to begin in July if possible. This inventory allows Engineering to determine the extent of the defective sidewalk which must be addressed by the Special Improvement District. This also permits Engineering to begin the Special Improvement District process early enough to allow for projects to be bid in the spring of 2004. Jordan Park Peace Garden Irrigation Phase 2 This request is for$190,000. The project is designed and ready for bid this coming July. Construction can begin this summer if funding is approved. Rose Park Street Lighting SID This request is for$300,000. The project requires renewal of the existing SID to . increase rates 50%. The renewal process cannot begin until it is known how much City-provided funding will be available so the geographic area that will receive the 1 new lights can be fixed (Any amount less than approximately$1,000,000 will necessitate doing less than the entire Rose Park area). Once the SID renewal is completed, a contractor will be retained to install the new lights and underground 41 conduit. This type of work can be done year round, so the sooner the SID renewal can be started; the sooner lights can be installed. Sugar House Street Lighting As mentioned above, this request for$675,000 can also be filled by RDA funds. Either way, the project is fully designed and ready to go to bid. Delay in funding would delay going to bid. The work can be done any time of the year,excluding the holiday shopping season. Pedestrian Safety Devices This request is for$150,000 to continue the efforts such as countdown timers, ped- actuated flashing lights at crosswalks, etc. The $150,000 fund that was approved two years ago is now depleted. Not funding this now, or even a smaller portion as an interim measure will delay plans to order more countdown timers and require continued reliance on the flashing lights at crosswalks. New and Replacement Streetlights This request is to continue the $60,000 annual fund to replace non-SID lights as needed. Every year, lights require replacement or major maintenance such as pole replacement. The current year's fund is depleted. Not having this fund available July 1 eliminates the ability to effect repairs. Based on recent history, there is a need on a regular basis to effect emergency repairs on the existing lights. Periodically, new lights are installed; but this is less frequent and they can be placed on temporary hold. Sugar House Park Irrigation,Phase 3 • This request is for$80,000 and entails funding only. The$80,000 represents a portion of the total amount needed for the completion of the irrigation system. The remaining funding for this phase of construction will come from the Sugar House Park Authority and Salt Lake County. Delaying the transfer of funds to the Sugar House Park Authority may cause unanticipated delays. Also, per the Council's request, there are several mission critical CIP projects that should be mentioned. Although these are mission critical projects, a delay of a few months will not effect the construction start date. These projects are listed below. Local Streets Reconstruction,FY 2004 The local streets scheduled for 2004 are designed and Engineering is awaiting funding approval. Delaying this project a few months will no delay the construction start date. Liberty Park Improvements, FY 2004 Rather than a delay in funding, it will be preferable to use funds remaining from the FY 2003 Liberty Park budget allocation to begin the design of projects for FY 2004. • 2 , ADA Sidewalk Access Ramps, Sidewalk Rehabilitation,Traffic Signal Upgrade, 4111 Pedestrian Safety Devices and ADA Playgrounds at Stratford and Steenblik Parks Design work for these projects would not begin until after budget approval. Delaying these projects two months will not delay the construction start date. After discussion with Engineering, it is also worth mention that Engineering is generally on schedule with projects in the Capital Improvement Program. For example, a review of projects approved for fiscal year 2002-03 CIP reveals that all of the projects assigned to Engineering are either complete or under construction, with the exception of ADA compliance in Jackson Park and two projects in Liberty Park. Jackson Park is scheduled to be bid in the next month, as are the two projects in Liberty Park, the North Shelter and the Tennis Center Building. III 410 June 10, 2003 1+ June 10th Discussion re FY04 Legislative Intent Statements II Based on Council Members'discussions and comments, following are potential Legislative Intent Statements for fiscal year 2003-2004. Does the Council Potential Legislative Intent Statements wish to consider for Fiscal Year 2003-2004 this statement or any others? A. Bonding for Efficient Irrigation Systems for Parks and Golf Courses - It is the intent of the City Council that the Administration investigate the possibility of bonding for improving the water efficiency of some of the City's golf courses, parks and other green space. Efficient systems should include secondary water systems using reclaimed water, springs, shallow ground water, or other water sources. It is the intent of the City Council that the study include the repayment of the bonds through savings in the cost of water including projected future increase to the cost of culinary water. B. Grant Writing Team — It is the intent of the City Council that the grant writing team serve a wide variety of City needs, rather than focusing so heavily on youth programs. Specifically, it is the Council's intent that the grant writing resources are allocated so that writers spend at least % of • their time seeking grants for programs other than youth- oriented grants. (or that the total dollar amount of grants submitted for youth programs shall not exceed the total dollar amount of grants submitted for housing, law enforcement and other programs.) C. Retirement Payouts - It is the intent of the City Council that the Administration consistently budget for payments of vacation leave and other retirement payouts. The Administration should consider budgeting for these payments in a separate fund or account rather than requiring departments to leave positions vacant or otherwise make cuts in operations to finance these payments, D. Collection of Fines - It is the intent of the City Council that the Administration report quarterly on the successfulness of its special collection effort. This report is to include quantitative information as well as progress regarding the City's efforts to work with the State and with collection agencies. The report information is to be separated based on the age of the fine (6 month, 1 year, etc.) per the information available from the Justice Court GEMS computer program. II 1 of10 June 10, 2003 E. SLC Resident Golf Discount Pass — It is the intent of the City Council that the Administration develop a discount pass system that enables City residents to play on City Golf Courses • at a reduced rate. F. Actual Vehicle Expenses — It is the intent of the City Council that the Fleet Division develop and implement an operating and billing system that charges users (General Fund and Enterprise Fund Departments) the actual costs incurred for the vehicles utilized by each department. G. Library Fiscal Controls— It is the intent of the City Council that the Library Fund follow all of the ordinances, policies and fiscal controls in place for other City departments. Further, it is the intent of the Council that controls be put in place to require that any transfer of funds between the basic Library budget and the Library contingency and capital funds be approved by the City Council._ H. Semiannual Reports on the Status of Legislative Intent Statements and Action Items - It is the intent of the City Council that the Administration provides reports regarding the status of all active legislative intent statements (including unresolved statements from previous years and statements adopted outside of the official budget process) and all active legislative action items. The semiannual reports are to be submitted to the Council Office by January 31 and the first • Tuesday in May each year. I. City Management Consolidation — It is the intent of the City Council that the Administration, through the implementation of the City Council adopted Early Retirement Program and staff attrition, evaluate the City's mid- management structure and attempt to identify and eliminate management positions with the City that can be consolidated. 3. City Policy Coordination — It is the intent of the City Council that the policies adopted by the City Council be noted by Redevelopment Agency of Salt Lake City employees and incorporated in staff reports to the Redevelopment Agency Board of Directors as relevant so that funding decisions remain consistent between the two organizations. K. Fleet Division Audit / Fleet Implementation Plan - It is the intent of the City Council that the Administration report to the City Council by September 1, 2003 on the recommendations contained in the Fleet Division Audit/ Fleet Implementation Plan and brief the Council on necessary facility modifications and the anticipated capital budget that will be needed to make the changes. i 2 ofl0 June 10, 2003 L. Revenue Collection - It is the intent of the City Council that • 110 the Administration report to the City Council by January 15, 2004 on fiscal year 2003-2004 revenue collections. M. Early Retirement Program - It is the intent of the City Council that the Administration transmit to the City Council by July 31, 2003 information and recommendations necessary to implement an Early Retirement Program on September 1, 2003. N. City Employee Benefit Plan Review - It is the intent of the City Council that the Administration and the Citizens Compensation Advisory Committee review the City's Employee Benefit Plans and transmit to the City Council by September 1, 2003 information, comparisons and recommendations for option relating to the benefit package; the Council is particularly interested in options that would reduce the amount of the vacation and personal time payout upon employee retirement or resignation. S June 5th Discussion re FY04 Legislative Intent Statement s is Does the Council wish Legislative Intent Statements to reiterate,amend Adopted for Fiscal Year 2002-03 or close this statement? 1. Funding of Governmental Immunity Reserves - It is the intent of the City Council to support the Administration's proposal to accumulate a reserve in the Governmental Immunity Fund equal to three times the rolling average claim payout. (Attorney) 2. Encourage Safety and Accountability - It is the intent of the City Council that the Administration considers adding more departmental accountability to the City's loss control program that encourages and promotes safety. It is also the intent of the City Council that the Council be provided with periodic reports on losses by departments. (Attorney) II 3 of10 June 10, 2003 3. Home-Buyer Incentive Program - It is the intent of the City Council that a proposal be prepared and • submitted to the Council for consideration regarding the development and implementation of a home-buyer incentive program for City employees based on programs offered by other cities and organizations, in collaboration with and in addition to Federal programs or opportunities. (Management Services) 4. Constituent Tracking System - It is the intent of the City Council that the Administration investigates the feasibility of a customer service/work order tracking system. (Management Services) 5. National League of Cities Conference - It is the intent No longer applicable of the City Council that the Administration develops a budget and staffing plan to address the impact of the National League of Cities conference to be held in Salt Lake City. The plan should be presented to the Council no later than October 2, 2001 and include the City's host duties, anticipated staffing, benefits associated with hosting the conference, estimated expenses to be incurred by Salt Lake City, a proposal to fund the expenses, and a comparison of anticipated expenses in respect to anticipated revenues. • 6. Channel 71 - It is the intent of the City Council that the This is now channel Administration uses Channel 71 to promote City programs 17. and functions including those events sponsored by other organizations that receive City financial support. More emphasis should be placed on making the promotional segments more dynamic and interesting. Further, it is the intent of the City Council that the Administration explore opportunities for partnering with schools in this endeavor. (Management Services) 7. Water Fund - It is the intent of the City Council that the Department of Public Utilities continues developing secondary water systems for parks and golf courses and considers including a secondary parallel water system in new developments within the Northwest Quadrant. (Public Utilities) 8. Street Reconstruction - It is the intent of the City Council that local street reconstruction be funded within the Capital Improvement Program on an annual basis in accordance with the Council's adopted Five-Year CIP Plan. (Management Services) • 4 of10 June 10, 2003 9. Set Aside Money for Severance Pay - It is the intent IP of the City Council that the Administration sets aside a portion of severance pay that is estimated to eventually be paid on historical experience or other factors. These moneys should be expensed in the years accrued and recorded as fund liabilities. (Management Services) 10. Biennial Budget Submission - It is the intent of the City Council that the Administration presents a biennial budget that is balanced in both fiscal years using one-time funds for one-time expenses, with no less than nine percent of ongoing General Fund revenues invested annually in the Capital Improvement Program fund. It is further the intent of the City Council to maintain a healthy fund balance of at least 10% of General Fund revenue. Finally, it is the intent of the City Council that the Administration presents comprehensive budget information to the City Council by the first Tuesday in May of the current fiscal year regarding the second fiscal year of a biennial budget. (Management Services) 11. Fiscal Note on Proposed CIP Projects - It is the intent of the City Council that the Administration provides the Council with a fiscal note on proposed capital improvement IIIprojects that require additional ongoing operations and maintenance (new parks, additional buildings, etc.). (Management Services) 12. Submission Format for Proposed CIP Projects - It is the intent of the City Council that information relating to proposed Capital Improvement Program projects be submitted in a format similar to that of the comprehensive CDBG reports, including all applications, CIP Citizen Board recommendations, and the Mayor's final CIP recommendations. (Management Services) 13. CIP Budget - It is the intent of the City Council that the Administration submits the Capital Improvement Program budget at least thirty days in advance of the General Fund budget to allow ample time for review, and to ensure that the Council's policy of 9% of ongoing revenue is followed. (Management Services) • 5 of10 June 10, 2003 14. Street Lighting District - It is the intent of the City Council that the Administration briefs the Council regarding • the possibility of using accumulated reserves in the street lighting districts for converting assessment districts to the privately-owned streetlight program (at the option of the neighborhood), for upgrading streetlights to more decorative residential oriented lighting, or for reducing assessments to property owners. (Community & Economic Development) 15. Radio-Reading Water Meter Pilot Program - It is the intent of the City Council that the Administration briefs the Council on the effectiveness of the radio-reading water meter pilot program after approximately 4,000 hard-to- read meters are replaced with radio reading devices and the Administration calculates the cost versus the benefits of the program including long-term benefits. (Public Utilities) 16. Grant Writing Team - It is the intent of the City Council that the Administration evaluates creating a centralized grant writing function that includes all General Fund employees who perform grant writing duties. (Management Services) 17.Community Education in the Fire Department - It is . the intent of the City Council that the Administration explores the feasibility of training non-sworn civilian staff or volunteers to perform community education services to Salt Lake City schools. (Fire Department) 18. Economic Development Corporation of Utah - It is the intent of the City Council that the Administration coordinates with the Economic Development Corporation of Utah to provide semiannual written information to the Council regarding the accomplishments of EDCU that benefit Salt Lake City. (Community & Economic Development) 19. Impacts of Special Events - It is the intent of the City Council that the Administration explores the feasibility of charging reimbursement fees for the use of police officers or other City services at special events where a fee is being charged to participants, and in other circumstances as appropriate. (Management Services) • 6 of10 June 10, 2003 20. Golf Program - It is the intent of the City Council that the Administration briefs the Council during a Work Session meeting in September on the marketing plans for the golf program, including the new incentives created during the fiscal year 2001-02 budget process. (Public Services) 21. Emergency Response Employees - It is the intent of the City Council that the Administration present options to the Council regarding a requirement that, as a condition of employment, any emergency-response personnel hired after August 31, 2001 be required to live within a 10 mile radius of the City &County Building. (Management Services) 22. Semiannual Reports on the Status of Legislative Intent Statements and Action Items - It is the intent of the City Council that the Administration provides semiannual reports regarding the status of all active legislative intent statements (including unresolved statements from previous years and statements adopted outside of the official budget process) and all active legislative action items. 23. Funding of Compensation Liability - It is the intent of the City Council that the Administration work with the Council to begin to accumulate a reserve in a separate fund or account to fund the City's accrued compensation liability for vacation and other payments that employees may receive upon retirement. Further, it is the Council's intent that the Administration provide estimates on the potential annual financial impact for the next ten or more years. 24. Retirement Payouts - It is the intent of the City Council that the Administration consistently budget for payments of vacation leave and other retirement payouts. The Administration should consider budgeting for these payments in a separate fund or account rather than requiring departments to leave positions vacant or otherwise make cuts in operations to finance these payments. • 7 of10 June 10, 2003 . 25. Overtime within the Police Department - It is the intent of the City Council that the Police Department make 0 every effort to keep within its overtime budget ($716,000 for fiscal year 2002-2003) and submit a written report to the Council quarterly on actual overtime incurred and steps taken to reduce reliance on overtime. Specifically, the Council requests that the Administration complete a detailed analysis on approaches to reduce overtime. This analysis should include but not be limited to: a. All options to reduce the number of vacant positions (i.e. hiring officers more frequently; b. All options of workforce scheduling; c. Opportunities to anticipate and accommodate the natural and consistent level of turnover that occurs in the initial months after hiring (including the potential to train more officers than the actual number of positions available); d. Ways in which the Legislative Branch could help address the issue, including the potential of adding positions to allow the Police Department to take approaches as outlined in item "c"above. e. The extent to which the Police Department believes it is beneficial to use overtime in place of regular full 1111 time employees in order to manage costs (expenses for cars, equipment, benefits vs. overtime pay) the extent to which holding positions open and using overtime could have a service level impact or policy impact. 26. Overtime within the Fire Department - It is the intent of the City Council that Fire Department continue to take measures to reduce the reliance on overtime and submit quarterly reports to the Council outlining total amount spent for constant staffing at a straight-time rate and amount spent at an overtime rate. 27. Parking Meter Collection - It is the intent of the City Council that the Administration consider collecting parking meter revenue using bonded agencies or employees rather than paying overtime rates. 28. Volunteers - It is the intent of the City Council that the Administration investigates ways to expand the use of volunteers and/or retired personnel for providing City services. • 8 ofl 0 June 10, 2003 29. Process Service - It is the intent of the City Council that 0 the Department of Management Services investigates or tests the service of documents using mail similar to the success reported by the City Prosecutor. 30. Grant Writing Team — It is the intent of the City Council that the Administration complete the centralization of the grant writing function by transferring any remaining grant writer positions to the central team in the Department of Management Services. Further, it is the Council's intent that the Administration provide a quarterly report on the grants submitted and grants received. _ 31. Grant Monitoring— It is the intent of the Council that the Administration confirm that the grant application and the grant monitoring / management function are appropriately separated in different divisions, to ensure that the grant monitoring and management is conducted by individuals other than those submitting the grants. Further, it is the Council's intent that all grants and requests for funding be tracked in a central location to ensure that the requests are consistent with the City's policies, and to ensure that the applications are submitted in a manner that leaves the City maximum flexibility in determining how the grants will III be used. Further, it is the Council's intent that the Administration provide a quarterly accounting of grant monies received and the specific manner in which they were spent. 32. Economic Development Promotion - It is the intent of the City Council that the Administration coordinate economic promotion with other entities that provide these services. The Council requests a written report on the overall economic development activities including the Economic Development Corporation of Utah (EDCU), the State Department of Community and Economic Development, the Salt Lake Chamber of Commerce, the Downtown Alliance and the City's Department of Community and Economic Development. The Council urges the Administration to review the funding formula and staffing needs of the EDCU and report the findings to the Council. • 9 of10 June 10, 2003 33. Impacts of Special Events - It is the intent of the City Council that the Administration continue to explore the III feasibility of charging reimbursement fees for the use of police officers or other City services at special events where a fee is being charged to participants and in other circumstances as appropriate. The Council requests a quarterly report listing special events approved by the City, including police and other City services that are provided. The listing should include: a. Services provided for which a fee was charged, and the amount of the fee; b. The actual cost of the service to the City; c. Services provided for which no fee was charged; d. Other relevant information. e. Further, the Council requests a listing of special City services provided for events that do not require a permit, including large gatherings at established venues. In approving this Legislative Intent the Council is not expressing opposition to special events, but is seeking more information with which to consider policy options. 34. Speed Boards — It is the intent of the City Council that all seven speed boards be placed on City streets at least • five days per week from 6:30 a.m. to 7:30 p.m. (except when boards are out of service waiting for parts or otherwise not available). It is the intent of the Council that the Administration consider contracting for this service. 35. Privatization of the City's Impound Lot Operations — It is the intent of the City Council that the request for proposals to privatize the impound lot operations be broad enough to allow the existing employees to bid as a group, if they so desire. 36. Engineering Costs — It is the intent of the City Council the cost of engineers and architects within the Department of Public Services be more fully allocated to capital improvement projects. The Council requests that the Administration provide a quarterly report to the Council regarding the costs that were allocated compared to total costs. • 10 of10 6 DETAIL USES AND SOURCES OF FUND BALANCE Fiscal year 2002 and Fiscal year 2003 0 Beginning fund balance as of June 30, 2001 $ 25,489,000 One-time Olympics revenue(portion not appropriated) 932,000 State retirement on police certification pay(ruling from Retirement Board) (70,000) Fleet management review (80,000) Olympic appropriation carryover (890,900) Olympic CED employee (25,000) Carryover of funds for outsourcing internal audit function (100,000) Utah Arts Festival-sponsorship (42,700) Olympic Planning needs (400,000) Olympic reconciliation (expenditures exceeded budget) (39,300) Additional costs of cash payments upon retirement (750,000) Excess revenue over budget including one-time revenue 2,269,600 Expenditures less than budget 4,859,300 Fund balance as of June 30, 2002 31,152,000 IIOne-time Olympics revenue(portion not appropriated) 963,200 Liberty Park Playground (1,000) Seven Canyons Fountain (5,000) Railroad Ordinance Paralegal (59,000) Washington square restoration (39,700) Library block open space development (3,505,500) Downtown decorations and performances (550,000) Downtown winter festival (80,000) Youth program (47,400) Risk subrogation transfer 423,000 One-time money for CIP/Housing Trust Fund/Leonardo (1,625,000) Impound lot-retention of management (42,500) Use of fund balance to help offset revenue shortfall (1,810,100) Excess revenue over budget ? Expenditures less than budget ? 0 Fund balance as of June 30, 2003 $ 24,773,000 SUMMARY USE AND SOURCES OF FUND BALANCE • Beginning Fund Uses of Sources of Ending Balance Fund Balance Fund Balance Fund Balance FY1994-95 $ 14,113,000 $ 1,476,000 $ 12,637,000 FY1995-96 12,637,000 692,000 11,945,000 FY1996-97 11,945,000 5,520,000 17,465,000 FY1997-98 17,465,000 351,000 17,114,000 FY1998-99 17,114,000 3,285,000 20,399,000 FY1999-00 20,399,000 6,299,000 26,698,000 FY2000-01 26,698,000 1,209,000 25,489,000 FY2001-02 25,489,000 2,398,000 8,061,000 31,152,000 FY2002-03 31,152,000 7,765,000 1,386,000 24,773,000 IA To: Gary Mumford III Fr: Sim Gill Re: Salary Inquiry Dt: 6-6-03 There are several reasons for the career ladder: 1) The career ladder is an objective measurement of movement articulated by HR. It specifies certain levels of competence and takes into account the talent, experience and investment of time the City makes into the overall competence of the employee. It is the result of an objective Job Classification Process, identified by Human Resources, which was implemented not as a part of a compensation package but as a part of an objective systemic improvement that identified such a career ladder as a necessary component of increasing efficiency and productivity for this particular job in the City. 2) The career ladder was the result of a study, and a response to, the high turnover rate of employees in the prosecutor's office. In 1996 the study identified a turnover rate of 28%. The career ladders objective was, and is, to reduce this turnover rate because as such it demonstrated an inefficiency and loss of productivity. 3) The purpose of advancement attempts to retain attorneys who have demonstrated their competence in the office. Their investment of time results • in efficiency and productivity which is a valued asset to the City as an administrative objective as well as a delivery and quality of service. The more time an attorney spends at his/her job the better and more efficient he/she becomes. The ability to retain such experience allows the office to increase its efficiency. 4) The inability to promote and reward competence leads to a high turnover rate. The higher the turnover rate the higher the frequency of dropping the overall quality of the work product and lost efficiency through the loss of talent. Each new hire cannot function at the same level of competency as a more experienced attorney. It will generally take anywhere from 6-9 months to master the job. The loss of historical knowledge is also over detrimental. If there is no possibility of advancement then one can only attract people with no experience and once they obtain it they will not be retained for a longer period of time. 5) The current structure of pay between the Civil and Criminal side shows the inherent difference between two classes of attorneys. One is not better than another but they do different things. Nor is one more important than another especially if you are the victim of a crime or if as community you are dealing with criminal conduct which impacts your quality of life or safety. The compensation package is an objective measurement of experience and talent. One in the current comparative inequity still produces significant return for every dollar invested. • ! 6) The workload and the nature of the work are highly stressful and extremely demanding. In response to today's request, I pulled up responses from the 1110 attorneys from 1986. It was enlightening to read the level of the stress had not changed but the quality of job satisfaction had. The current corps of attorneys is rewarded on the principles of efficiency,productivity and longevity. They are highly motivated individuals who perform at incredible demands not because they wish to be punished but because we have communicated to them that they will be rewarded for their loyalty to the City and their competence in performance. They know that if they wish to make this job a career they can do so because their talent will be objectively recognized. 7) The sacrifices demanded from this office are met and the objectives obtained because there is a trust that their efforts on behalf of the City will not be overlooked. This office has, and will continue to, make cuts and seek out efficiencies, whether the Council and administration requests it or not, but because it is the right thing to do. This trust is the result of knowing that there is an objective and predictable method of evaluation and advancement. 8) It is hoped that any such concerns will be equally applied. If the concern is that an extraordinary budget requires extraordinary sacrifices then these sacrifices inherently more fair if applied to all departments and individuals (career ladders equally)but not targeted at specific individuals or departments. Inherent fairness requires that all shoulder the weight equally. This poses an additional challenge as it focuses on individuals in transition but would exclude all those who have already obtained the advancement. As a manger, this poses a significant challenge for fairness and morale. . 9) Finally, for us in particular, it is of concern that the message that be consistently be sent out is that sacrifices obtained voluntarily are not rewarded with further cuts and that if the fat is voluntarily cut it does not come back to haunt you because we did not build in a cushion of waste to absorb such cuts. • 78 R 'lima i GAR "a .�/ f ROSS C. "ROCKY"ANDER. RICHARD GRAHAM wk �,r w ri .per-4.1..�,�-..r _ : PUBLIC SERVICES DIRECTOR DEPARTMENT OF PUBLIC SERVICES MAYOR Memorandum To: Carlton Christensen, Chair Salt Lake City Council From: Rick Graham 1)16 Date: June 10,2003 Re: Use of City Event Resources At Rocky Fluhart's direction, I am sending you the attached which represents a response to the questions Cindy asked in her June 5,2003 e-mail. I have also provided Rocky Fluhart with a copy of this response. cc: Rocky Fluhart David Nimkin 451 SOUTH STATE STREET, ROOM 148, SALT LAKE CITY, UTAH B41 1 1 TELEPHONE: B01-535-7775 FAX: 1301.535-7789 Why would the events at the Gallivan center not be funded by RDA? • Gallivan events are funded by the RDA. The RDA has contracted with Public Services to both maintain and program the plaza and it support facilities. Public Service Department staff organize and put on approximately 320 events at the Gallivan Center each year. A small number of these events are sponsored by the RDA and promoted as SLC events. The majority of the events are rentals. In addition,the City's Community Event Program,which is a general fund program,has a small staff and budget within Public Services that has traditionally funded the 24th of July,Million Dollar Hole in One,the SLC Classic and others city wide events. Some of these events,like the Classic,utilize Gallivan even though the expense is funded through the general fund. The 9th&9th Street Festival and the Avenue Street Festival are planned and organized by volunteers. Why would the City take on this responsibility for 15m&15th? Will we also take it on for the 9th&9th Avenues? The City is not planning the 15th&15th event. It has simply volunteered to consult and support the event organizers. The City will assist in permitting and other logistical issues. It will also assist others who are planning events if the request is made. Up to this point,those who organize the 9th&9th and Avenues Fair have not sought any support from the City. • There is a cultural fair on Main Street listed for this Saturday but we aren't aware of any publicity for it. Is it going forward? Yes. There was a Cultural Fair on Main Street last Saturday,June 7th. The plan is to have one each month,with dates scheduled for July 12,August 2, September 6th. It is on the Downtown alliance calendar of events and a press release was sent out. It was on FOX 13,Saturday night. These cultural events are part of Mayor Anderson's downtown event program and are organized by Talitha Day and supported by the City's general fund Community Events program. One Council Member expressed concern about the City stepping into areas of hosting that would be best handled by private or non-profit organizations. The City event planners are concerned about this issue also. The RDA built the Gallivan Center specifically to host City sponsored events and to add a wonderful downtown venue that can be used by the public for a variety of uses. Most events held at Gallivan and in other public spaces such as parks are organized by outside organizations. Up to this point in time,the City is not aware that a competition problem exists • 1 The same Council Member expressed concern about the fundraising in competition with non-profit entities and wondered whether the City should consider prioritizing and then funding some of the events. This is already in place. For example the Salt Lake City Jazz Festival is partially funded by the City, and City staff is assisting in the production of the event. The July 24th event in Liberty Park is partially funded by the City. On things like the 911 display and the Ted Wilson event, is it correct to say that City staff just serves as a liaison to get the groups connected to the resource they need, or is City staff involved in organizing the event? Yes, we serve as a liaison to help the organizer navigate the City system. This is not a City sponsored event, but the organizer is using a City facility. Might this staff person be the appropriate person to organize sister city events in cooperation with the committees? There are some special events coming up in July and currently they are being organized by other CED staff, I think. Yes. The City events manager, Talitha Day, could be the point person and even assist in the planning and production of Sister City events or on all City hosted events. Past history indicates the organizers in charge of the Sister City events do an incredible job. I am not aware of other events organized by CED staff that are scheduled for July. One Council Member asked whether there could/should be some link between this position and the Arts Council, due to their Twilight Concert series and hosting of the Living Traditions event. Yes, there should be and currently is a link between the event planning being done by the City Arts Council and the other special event planners of the City. Coordination currently exists so that events are not duplicated. The question could be asked, should the City Arts Council event planners be combined with other event planners at Gallivan? I believe the answer to that question is no, not yet. The City Arts Council only organizes two City events a year outside of its own facility; Living Traditions and Twilight Concerts (these are multiple events at the same site). Since its outside programming is so small when compared to the other event planning functions, it is felt that it can manage its own events efficiently as long as the City coordination continues to take place. With the shift to Public Services, will this staff person be available to assist CED with economic development related events on an on-going basis?Will the person be available to assist other departments? (can't think of an example, but there must be one!) r 2 Yes, shifting the CED event planning function to Public Services did not change • the focus or intent of its downtown event planning function. None of Talitha Day's or the special event planning responsibilities has changed. The objective of the transfer was to combine like functions into one area without losing effectiveness. Also, it is hoped that the combining of functions and resources will also produce some sharing of resources that will create greater efficiency and coordination. Also, if other departments need event planning help, assistance will be provided as long as the resources exist. • Message Page 1 of 1 Sears, Michael 7G From: Fawcett, Steve - nt: Tuesday,June 10, 2003 2:51 o: Sears, Michael Cc: Fluhart, Rocky Subject: FW: Council Briefing Today Importance: High Categories: Program/Policy Michael: I'm forwarding the information I said I had on the Emergency Manager position. If you have questions or if anyone has questions I'm sure Mike will be happy to comply. Please note that I strongly urge the Council to maintain this position. As pointed out by both Police and Fire, an Emergency Manager is crucial to the operations of the City, not only in "big"emergencies but also in "little"ones. Planning for the big one is not enough. We must continually manage the plan and enhance it when new issues arise. I verified with the Mayor the other day also about his reliance on Mike during a major emergency and he concurred that he indeed does rely on Mike. Allow me to make a personal comment. Mike is highly marketable, is sought after within the State for his expertise and presentations before large groups of contingency planners, emergency management folks as well as every day people such as church or civic groups and it would be a great disservice to our citizenry to lose him. • • 6/10/2003 Salt Lake City Emergency Management Strategic • Alliances Attendance/membership justification code: 1 = Networking, information sharing 2 = Provide training 3 = Required by Grant conditions 4 = Advisory board 5 = By Assignment Name of Host Meeting Schedule Justification Meeting Organization Project Impact FEMA Region Monthly 1,3 Conference Call VIII 3rd Thursday Local Emergency SLC Fire Monthly 1,5 Planning Department 2nd Wednesday Committee (LEPC) Terrorism SLC Fire Monthly 1,5 Working Group Department 2nd Thursday i Mgt. Services Management Weekly 1,5 Staff Meeting Services Wednesday Code Red Police Monthly 1,5 Terrorism Varied Times Response National Stratigic Health Department Monthly 1,5 Stockpile Varied Times Planning Association of ACP Monthly 1,4 Contingency 2nd Thursday Planners (ACP) City and County Utah Div. of DES Quarterly 1,3 Directors (as scheduled) Meeting CEM Advisory Utah Div. of DES Quarterly 1,4 Board (as scheduled with C&C Director's Meeting) CERT SLC CO Monthly 1,4,5 • • Utah Seismic University of Utah Quarterly 1,4 Safety (Schedule varies) Commission (USSC) Mayor's City Monthy 5 Disabilities Council Metropolitan Salt Lake City Fire Monthly 1 Medical Department 3rd Thursday Response System National Disaster Department of Quarterly 1,4 Medical System Health (Schedule Varies) (NDMS) Volunteer VOAD Monthly 1,4,5 Organizations Last Friday Active in Disaster (VOAD) SLC Employee SLC Risk Quarterly 1 Safety Meeting Management (Schedule varies) • Utah Emergency UEMA Quarterly 1,4,5 Managers (schedule varies) Association (UEMA) Salt Lake County Salt Lake County Monthly 1, 5 Emergency Emergency (Schedule Varies,) Managers Services Utah Counter Utah Monthly 1,5 Terrorism Dept. of DES (Schedule Varies) Coordination Council • Impact Statement: • With the exceptions of two counties and one city, all emergency management functions for jurisdictions our size are performed by civilian emergency managers. Some civilian emergency management persons are housed in management systems and other's in public safety systems. Regardless of where emergency management is housed, the reason emergency management responsibilities are handled by civilians is that said responsibilities (disaster mitigation, preparedness, response and recovery) are normally not in the scope of already understaffed police and fire duties. Status of Emergency management (similar sized jurisdictions) in Salt Lake County: • Salt Lake County=All Civilians(Under the Fire Department) • Sandy=Civilian(Under City Manager) • West Valley City= Sworn Officer(Fire Department) Status of Emergency Management (similar sized jurisdictions) in neighboring jurisdictions: • Logan=Civilian(City Manager's Office) • Weber County=Civilian(Sheriff's Office) • Ogden City= Civilian(Fire Department) • Davis County= Sworn Officer (Sheriff's Department) • Provo =Civilian(Mayor's Office) • • Utah County= Sworn Officer(Sheriffs Department) • Summit County= Civilian(Sheriff's Department) Totals: • 4 Cities s have civilian emergency managers that are housed in Management organizations • 4 Counties have civilian emergency managers that are housed in public safety organizations • 2 Counties and 1 City have sworn officers as emergency mangers • Comparable US Cites with Civilian Emergency Managers • Reno, Nevada • Little Rock, Arkansas • San Bernardino, CA • Amarillo, Texas • Worchester, Massachusetts • Providence, Rhode Island Comparable US Cities with Emergency Managers under public safety(Research did not show if they were civilian or sworn officers) • Fairfax, VA(Fire Department) • Long Beach N.J. (Police) • Seattle, WA(police0 • • Emergency Management Grants and Funding • Current grants and funding for SLC Emergency Management (Federal FY-03): State and Local Assistance Grant $24,500 CERT (I am giving this to F.D.) $ 5, 550 Citizen Corps $14,636 All-hazards planning $30,000 TOTAL $74,686 Potential grants applied for by Emergency Management(applications in process or waiting for application guidance) WMD Response Equipment $1,483,880 (estimated) (This equipment will go to SLC Depts. mainly Police And Fire) Earthquake Hazard Mitigation Project (SLC School retrofit) $250,000 (estimated) TOTAL $1,733,880 • ® TYPICAL DUTIES 1. Analyzes, develops, and coordinates city-wide disaster mitigation programs by establishing liaisons with all levels of government, schools, volunteer organizations business and industryl. Coordinates with Risk Management. . Serves as point of contact for FEMA. Includes hazard analysis and hazard mitigation planning. 2. Analyzes, develops, and coordinates city-wide disaster preparedness programs by establishing liaisons with all levels of government, schools, volunteer organizations, business and industry. Establish and support city-wide disaster preparedness teams2. Develop Emergency Response Plans. Identify roles and responsibilities for city departments. Conduct training, as needed for city employees and department responders. Implements community emergency preparedness activates.' 3. Analyzes, develops, and coordinates city-wide disaster response programs by establishing liaisons with all levels of government, schools, volunteer organizations business and industry. Conduct regular table top, functional, and full scale exercises. Evaluates exercises. Coordinates the city Emergency Operations Centers. Coordinates Emergency Alert System(EAS)protocols and operations. Plans for Rapid Situation Assessment. 4. Analyzes, develops, and coordinates city-wide disaster recovery programs by establishing liaisons with all levels of government, schools, volunteer organizations, • business and industry. Incident after action reports will be written and distributed. Organizes city-wide disaster recovery team. Insurance training is provided on current standards and procedures. Coordinates with Risk Management. 5. Manages and coordinates administrative and budget responsibilities. Prepares and manages emergency management budget. Prepares reports, makes public presentations and keeps current on disaster management and recovery methods. Research is expected and training and travel will be required to remain current. Other city emergency management agencies,County Emergency Services,State Comprehensive Emergency Management(CEM),FEMA,Local emergency Planning Committee(LEPC),Utah Transit Authority (UTA), SCL Schools,universities and colleges,all utilities,American Red Cross(ARC), Amateur Radio Emergency Services(ARES),Association of Contingency Planners(ACP),Terrorism Working Group,Metropolitan Medical Response System (MMRS),National Domestic Preparedness Program, National Disaster Medical System(NDMS),Utah Safe School Leadership Coalition,Utah Seismic Safety Commission(USSC),Utah Olympic Public Safety Command(UOPSC)Olympic Emergency Management Subcommittee,UOPSC Olympic Infrastructure Subcommittee 110 2 Departmental disaster preparedness teams,Lifeguards,CERT. 3 "It's Our Fault: Earthquake Preparedness week",Neighborhood Emergency Preparedness Fairs D • COMMUNITY ACTION TEAMS OPERATIONAL PLAN In an effort to continually assess and increase operational efficiency, customer satisfaction and meet the objectives of the Salt Lake City Police Department mission statement, the following programmatic changes are proposed for the Community Action Teams. Co-Locate: Both squads will be relocated to the new Pioneer Precinct in the same work area. The advantages of co-locating these units will be realized through; fostering a team building environment, unity, and encouraging/providing better access for information sharing between the various team members. It also allows for closer supervision of the Community Action Teams. Increased Supervision: • Current) the CAT operates under the direction of one sergeant responsible Y- p 9 p to two separate Divisions. Coinciding with the move, an increase in direct supervision will be enacted by increasing the staff allocation from one to two supervisors. The CAT teams will be divided into two groups (Pioneer and Liberty) and they will be responsible up through their respective chain of command beginning with those respective first line supervisor.. The additional supervisor will be achieved through redeployment of existing personnel. Having two supervisors: • provides closer supervision, direction and accountability for each team and individual • will enable the team to have a more manageable span of control • will facilitate more team building meetings such as line up, weekly project meetings, daily debriefs • provide for a more distinct chain of command (employees will have more immediate feedback of job performance as well as quarterly • merit reviews) Information Dissemination: The gathering, sharing and dissemination of information is critical for the success of the CAT process. To promote this information movement the CAT Database will be used on a daily basis. Each team member will be responsible to enter their own information relative to the cases and activities they are involved in each day. The benefits of entering information on the database are: • When team members enter the information on the system, it is automatically emailed to the Mayor's Office, City Council, Police supervisors, other Agencies, and constituents who are on the database. This gives instant updates to all parties of the current status, activities and plans to solving issues or problems in the various Council Districts. • Crime stats will be available to the City Council and the Mayor's Office simply by making a request through their respective CAT officer or sergeant. The CAT Sergeants will meet with the City Council staff and Mayor's staff personnel on a biweekly or as needed basis to provide updates, field questions and disseminate information. Deployment Strategy: The concept of CAT operations dictates a need for team member schedules to be flexible in meeting the needs of the community. The objective of the management will be to ensure a schedule commensurate with activities as much as possible. Furthermore, system redundancy (case overlap) will ensure that no case is dropped due to the unavailability of the assigned team member. The police department management will continually evaluate and update this plan to meet the needs of the community and constituents. Team Member Responsibilities: Each team member has a different role on the CAT team. Members are tasked with functioning as a cohesive team yet able to act independently in • • their own area of expertise. For each team to function effectively it is important for them to discuss, share, and co-ordinate information and assignments. It is imperative that all team members understand the importance of fostering and maintaining good working relationships with the different agencies, units and organizations they serve (i.e.; Mayors Office, City Council, Patrol Divisions, etc.) There is a clearly delineated chain of command within the police department for each team member to follow. Information, suggestions and recommendations that have fiscal, policy and/or management prerogative implications will be approved through the chain of command. This may include but is not limited to CEPTED reviews, special projects/event requests or anything that may affect management prerogatives, formal or informal. Team member roles are more clearly defined by the job description attached. It is noteworthy that Community Mobilization Detectives are • sworn police officers assigned to the unit on a rotating basis (generally 18 months). Community Mobilization Specialists are civilian employees and are permanently assigned as CAT team members. Ensuring mission continuity, retaining inherent job skills and knowledge and serving to train newly assigned personnel dictate the need to maintain these positions indefinitely. , COMMUNITY MOBILIZATION DETECTIVE • TYPICAL DUTIES: Under the general direction of the Sergeant, develops crime prevention and safety programs, to include Crime Prevention Through Environmental Design (CPTED) Reviews. Makes public presentations and represents the police department to individuals, citizens groups, councils, schools and other organizations. Schedules and presents a variety of classes including Personal Safety, Home Security, etc. Initiates and coordinates programs such as the Neighborhood Watch, Children's Watch, and participates on boards and committees as assigned. Participates as a member of Community Action Teams (CAT), working collaboratively with Mayor's Office, City Council, Juvenile Probation, City Prosecutors Office, Boys and Girls Club, Health Department, Building and Housing, and other agencies as needed based on the community's needs. Conduct surveys and make recommendations to businesses regarding robberies, shoplifting, internal theft and any other crime prevention • information applicable for the particular business. Also conducts background investigations of applicants for other positions. In uniform, operates TC (Talking Car) at schools and other events and works as "McGruff" as needed in conjunction with other community programs presented by the department. Provides ride-alongs for council members, members of citizen groups and others as necessary. Provides law enforcement advice to the Community Mobilization Specialist, and performs all duties and responsibilities of any other sworn officer of the department. These job descriptions are intended to describe the general nature and levels of work being performed by officers assigned to the job. They are not intended to be an exhaustive list of all duties, responsibilities and skills required. Community Mobilization Detectives are expected to receive, schedule and follow through on work assignments in their assigned districts with appropriate supervision. In addition, the position requires flexibility of scheduling to meet the needs of the community and the department. In II • order to attend Community Council Meetings etc., Community Mobilization Detectives often work evenings and occasionally work weekends. COMMUNITY MOBILIZATION SPECALIST JOB SUMMARY: Under the direction of the Sergeant, Promotes positive police relations with individual citizens, community groups, government agencies, private agencies and the media. Provide the Salt Lake City Police Department with highly responsible staff support. Facilitates problem solving through creative means and enhances citizen involvement in community and neighborhood endeavors. TYPICAL DUTIES: Works closely with the Mayor's Office, City Council, community/neighborhood councils and other organizations to determine issues, problems and concerns. Schedules meetings and provides training for various crime prevention and • other community awareness and prevention programs. Participates in the Community Action Team, which can include representatives from city, county, state and private agencies. Investigates constituent complaints, provides request for service. Gathers information from appropriate agencies and follows complaint through resolution. Works closely with crime analysis to track trends of criminal activity and calls for service. Using a Crime Prevention Through Environmental Design (CPTED) concept makes home and business security inspections. Recommends ways to deter crime and enhance security through improvements to lighting, landscaping, property and building design. Reviews architectural plans for proposed building and development in Salt Lake City. Assists neighborhood groups with organization and other mobilization efforts to implement Neighborhood Watch and other programs. Responsible for training community volunteers and providing them with the assistance and resources necessary to maintain these programs. May design and conduct public surveys to assess community concerns • regarding crime issues and police department services. Develops additional programs as needed as a tool for problem solving in the community. Performs other related duties as assigned. Hours need to be flexible, may work evenings and unusual hours to attend meetings and make presentations. YOUTH AND FAMILY SPECIALIST JOB SUMMARY: Under the direction of the Sergeant, provides emergency response, prevention, education, and intervention services for at-risk youth and their families. These services include cases involving reports of abuse, neglect, domestic violence, juvenile delinquency, and child endangerment. Provides follow-up as a caseworker, makes appropriate referrals, and arranges for placement of children in shelter through DCFS when warranted. TYPICAL DUTIES: . Provides referrals and case management services for at-risk youth. Conducts needs assessment and develops goals and objectives for youth and parents. Obtains appropriate services necessary to achieve established goals. Works as a member of the first responder's team. Assesses narcotic crime scenes for child endangerment, removes children) from immediate areas of interrogation. Searches and gathers necessary information regarding identity, medical issues and other facts required for child protective services. Contacts necessary individuals and agencies to arrange placement. Trains diverse groups within the community on Methamphetamine and Child Endangerment. Meets regularly with youth and families to assess progress. Makes progress reports to Third District Juvenile Court and allied agencies as appropriate. Identifies and tracks juveniles who have been cited for offenses in the community. Provides information for parents regarding the Parental . l b • Accountability Ordinance. Tracks cases and families who continue to commit offenses and provides appropriate referrals to intervention agencies. Screens families with the City Prosecutor's office who fail to respond to corrective efforts. Develops working partnerships with agencies such as Third District Juvenile Court, Boys & Girls Clubs, schools, Division of Child and Family services, etc. Monitors and provides follow-up for domestic violence incidents where children are present. Reports all cases involving children to Child Protective Services, and makes contact with families to provide additional assistance when appropriate. Attends weekly Community Action Team meetings and coordinates case management and service delivery. Provides investigation and assessment for families referred to the Community Action Team and reports findings and actions taken. Maintains confidential information. • Tracks and reports statistics and other data on assigned cases. Makes presentations at Community Council meetings, local conferences, educational trainings, and other community meetings. Performs other duties as assigned. Note: The above statements are intended to describe the general nature and level of work being performed by persons assigned to this job. They are not intended to be an exhaustive list of all duties, responsibilities and skills required of personnel. • . • 1 1,111 Policy Issues rl 11 Management Services Department Currently,Salt Lake City employees earn 15 days of sick leave each '1I,4 year. These days may be used when the employee is unable to work ' IIL, due to illness or accident,or,under qualifying circumstances,to care for Issue: Sick Leave Policy a dependent.In addition,paid leave is alsoprovided for vacation �, � 1,1�, lq holidays,bereavement,hospital confinement,career incentive,jury and 1+1I. Policy military duty. ' 1I' Salt Lake City should offer its employees an alternative to the current Salt Lake City employees are allowed to save sick leave hours without IAa sick leave policy to provide employees choice and flexibility,improve limit.Annually,each eligible City employee may convert up to eight days income continuity during times of personal emergency,reduce employee of accumulated sick leave to an equal number of vacation days. I E absenteeism,and reduce long-term liability to the City. Anything not used or converted may be carried over from year to year, �' and ultimately,hours not used may be traded for cash at retirement--a s 1 practice common to public sector organizations. ti Background 'I Twelve years ago,the City's average sick leave use was about four !(;° Traditionally,companies implement sick leave policies to provide income days,per year,per employee. That figure started climbing in the mid- ^4 protection and continuity for employees in the event they are unable to 80s,and is almost double that today.Despite high usage rates,the fl work due to illness or accident.However,over the years changes in sick number of accumulated sick leave hours has reached 1.5 million. leave practices have resulted in a complex array of supplemental income Twenty-five percent of saved hours are converted to cash at normal programs,in place of the original objective.As a result,numerous public retirement;or,if the employee chooses,50 percent of the accrued sick and private employers,nationwide,are reevaluating their sick leave leave value can be placed in a medical coverage,premiums-payment I� policies. account. ,l�f' ;s1 The Commerce Clearing House(CCH),reports that many U.S. There's also a special provision in ordinance—separate from union 111 organizations are shifting to a policy of personal leave.This approach contracts and compensation plans—designed to encourage eligible combines paid leave,for sickness and personal use,with a plan for short employees to retire early. It may provide a sick leave cashout of up to term and long term disability benefits.Such an approach,combining 100 percent,depending on the employee's circumstance and which pay ?1j:. personal leave,short term disability and long term disability,provides class he or she is in. 1I1 employees a more effective defense against loss of income due to illness or accident. The result is an accrued liability to Salt Lake City Corporation,for accumulated sick leave hours,totaling about$29 million.Currently, 1' Governmental Accounting Standards Board(GASB)accounting 1?;I;, ;, Section I, B-11 r'kil i Il Policy Issues �` practice does not require governmental agencies to record more than a approach to replace sick leave with 10 days of personal leavebe relatively small portion ofthis accrued value;however,the administration combined with a Short Term Disability Program. Benefits would be believes GASB accounting rules may change,as predicted,requiring the based upon the employee's length of City service and be linked to the accumulated unfunded liability be funded on an actuarial basis.If that City's existing Long Term Disability Program. The recommended GASB change were to be implemented today,it could put the City's approach creates a bridge between personal leave and disability 'i; reserves at risk,affecting the City's bond rating and the ability to programs ensuring that employees are protected against loss of income respond to financial emergencies.Even if GASB is never evoked,it is due to illness or accident,while eliminating the need for large accruals. I' notgood business practice for Salt Lake City to continue to grow an The proposed features of this policy include the following components: 1' I unfunded liability ofthis magnitude. ; Personal Leave: . 1 . Salt Lake City tasked its Benefits Committee—which includes • Personal days would be awarded at the beginning of each plan year. 'i • At the end of eachplanyear,unusedpersonal days would be cashed representatives from all employee unions,the Professional Employee Y , Quality Council(PEQC)and various City departments to study how out at 50 percent. 1 1'! Maximum yearly cashout-one week's pay. Cashout is at the base to reduce pending liability to SLCC while preserving benefits to the • 1 �; employees. salary rate then in effect. II 11 After the Committee debated issues and examined existing data, As designed,the personal leave would cover sick leave,dependent !' meetings were held throughout the City to advise employees of the leave,hospital leave,and career incentive leave. It would not 1:, !; study's objectives,and to gain their direct input on what needs must be include vacation leave nor holidays(including personal holiday), satisfied to make a new plan acceptable. Among the many points that bereavement leave for close family members,military leave or jury il employees said were important,three stood out: duty leave. I. "!' • There must be an equitable exchange of value. Public and private employers who offer similar cash incentives for u responsible use of personal leave have universally seen a reduction in r , • Any new arrangement must give employees nearing retirement absenteeism. • I (usually long service or older employees)a fair choice. This plan would also include a severance account provision to preserve a , some value for employees in their accumulated sick leave hours. • Employees who don't use excessive amounts of sick leave should be • Set aside in a Severance Account a fair portion of current accrued treated differently than employees who do. hours. • Allow hours from the Severance Account to be used for The Benefits Committee and union deliberations prompted months of emergencies,after Personal Leave Hours are exhausted and with review and numerous cost analyses,which ultimately recommend an supervisory approval. Section I, B-12 j , aI v+ • S III 1 • i i ,,,,. t, Policy Issues y • Cash out the full value of the Severance Account at retirement or Analysis/Alternatives 1 layoff,based on the salary rate current at that time. Business as Usual i,;�: Short Term Disability Benefits: IP e' • The STD Plan would provide up to 12 weeks of paid leave for each Salt Lake City could choose not to offer an alternative to its existing sick different disability. leave policy.This approach would not address employees needs and J1 • The eligibility for STD would start over again in the same year,even desires,nor would it lessen the City's liability.Conversely,if the current y. for disability related to the same cause,if absence is separated by at plan is allowed to continue as is,the fiscal impact will worsen with time, i1 11 least two consecutive weeks at work. and the unfunded liability for the City will continue to grow indefinitely rg;I; • And in all cases,coverage begins anew each year. i I Offer An Alternative Personal Leave Policy To The Existing Sick u' The City would pay the cost of the STD plan,thus benefits received by Leave Policy IIr the employee would be taxable as income,just as they are under the current sick leave program.The short term disability(STD)benefits Provide an alternative plan to the existing sick leave program which 11 begin after an employee's absence equivalent to one scheduled work provides employees with more flexibility,more utility—and thus more y!"'r week resulting from an employee's illness or accident. value—than sick days,since the employee doesn't have to be sick to use them.The personal leave approach recommended by the Benefits Long Term Disability: Committee accommodates employees'need to balance time between l'r work and family,and is fair to workers who rarely use sick leave. N; Long Tenn Disability(LTD)benefits,which are optional to the �1; employee,begin after 13 consecutive weeks of qualifying disability. Recommendation ,I Therefore,Therefore,LTD picks up where STD leaves off.This portion of the plan Vi I works the same as it does currently,with the employee paying the Salt Lake City should offer its employees an alternative to the current I�t' nominal cost through payroll deduction.Because the employee pays for sick leave policy to provide employees choice and flexibility,improve aP the coverage,benefits are received tax-free under IRS rules. income continuity during times of personal emergency,reduce employee absenteeism,and reduce long-term liability to the City. l,i Ili, I li Section I,B-13 I,11 la 4 it ROSS C."ROCKY"ANDERSON ; (I e) Q t f' 1 fV' j17 D�e NM MAYOR ����, ��=!l+�i,� SALT LAKE 2002 OFFICE OF THE MAYOR MEMORANDUM To: Carlton Christensen, Chair, Salt Lake City Council From: Ross C. Anderson, Mayor Date: 6/1o/zoo3 Re: Alternative budget adjustments to balance FY2oo4 On May 6, I submitted a recommended balanced budget to the City • Council. That budget reflected many hours of grueling debate about continued delivery of the high quality of services our citizens enjoy and have come to expect. It reflected input of our Department Directors. It also reflected the input of union leaders. The City Council has straw-polled suggested changes and has offered me the opportunity to debate those changes and suggest alternatives. I appreciate this opportunity and thank you for the cooperative spirit in which it was offered. In that same spirit of cooperation, I hope you will consider seriously my recommendations below. Notwithstanding the adjustment recommendations I offer herein, I maintain that the residents and businesses of Salt Lake City would be best served by the adoption of my original recommended budget. Nevertheless, if changes must be made, I would support the following alternatives: 451 SOUTH STATE STREET,ROOM 306,SALT LAKE CITY,UTAH 84111 TELEPHONE:801-535-7704 FAX:801-535-6331 June io, zoo3 I.) Remove from CIP the $700,00o for Olympic Legacy projects and • apply that money toward FYzoo4 CIP projects. It is critical that we successfully prioritize the City's true CIP needs. When I see sidewalks that are almost impassable, I cannot resist comparing the need for basic repairs with the desire by some to spend sioo,000 on a neighborhood "Child of Light" sculpture. Spending this kind of money on projects that are not part of the twenty-year inventory of need contradicts the Council's own policy. If these projects were of city-wide benefit, they would be more defensible. However, under present circumstances, I implore you to spend this money on projects that are essential to the maintenance of the City's infrastructure. a.) Temporarily reduce the 9% CIP amount by .18%io. or $27o,817. This would allow us to progress through these tough economic times without reducing service levels. If revenue improves throughout the year, those additional funds could be used to replace this percentage elimination. 3.) Utilize $278,5oo currently allocated to the Non-Departmental Contingency Account. This amount can be used to help balance the budget, and fund balance can be used to cover future unforeseen needs. • 4.) The Public Services Department can offer additions to its estimated savings in the areas of fleet maintenance, fuel, and road salt, totaling $96,000. Based on the most recent data, billings for fleet maintenance and fuel next year may be lower than originally calculated during the preparation of the Mayor's Recommended Budget. Due to ongoing improvements in fleet replacement practices, and usage, it appears we will save a larger amount than originally projected. Furthermore, we are anticipating that the current weather pattern will continue and we will experience savings from reduced fleet maintenance needs related to snow removal. If these savings do not materialize, we will need to approach the City Council for additional budget funds during the coming year or delay spending in other areas in the Public Services Department. 5.) Do not eliminate any additional staff. Over the last three fiscal years 40.0o FTEs have been eliminated from the General Fund. These 2 June io, zoo3 • eliminations for the most part did not reduce services, but moved the responsibility to other employees. While this approach can foster more efficient delivery of services, the Council should be aware that in cases where service levels must be maintained and services were already being delivered efficiently, staff reductions place tremendous burdens on the remaining employees and often lead to serious morale problems, as well as a reduced level of services. Many of the City's hardest working employees already commit long hours and numerous evenings to their City jobs. It is frequently these employees who are asked to assume the duties of eliminated positions without any additional pay, benefits, or opportunities for advancement. This added burden further exacerbates their difficult schedules, reduces their ability to accomplish their core functions, and damages morale throughout the division or section from which the position was eliminated. As illustrated in the table below, force reductions in recent years . have been significant. With 4o FTEs removed from various departments, remaining employees must now absorb the work that was accomplished in the 83,2oo work hours that have been lost in order to maintain our FY zoos service levels. Department/Position FYzooz FY2oo3 FY2oo4 Total Attorney Asst. City Attorney Secretary -r.00 -2.00 CED Deputy Director-HAND -i.00 Building Inspector -i.00 Special Events Admin Asst -t.00 Planner II Development Review -i.00 • 3 June io, zoo3 • Department/Position FYzooz FYzoo3 FYzoo4 Total Building Inspector II Planning Research Asst -r.o0 -6.00 Fire Administrative Secretary -r.00 Office Tech CERT Firefighters -3.00 Tech Support Service Manager -r.00 Fire Prevention Specialist -r.00 -7.00 Internal Audit Internal Auditor -z.00 -r.00 Internal Audit Manager -r.00 -4.00 Management Services Special Improvements Coord. -r.00 Policy Specialist -r.00 City Payment Processor • Human Resource Associate -r.00 -4.00 Police Records Clerk Administrative Secretary Office Tech -r.00 Mobile Watch Coordinator -r.00 Youth and Family Specialist -r.00 Police Records Clerk -r.00 Community Mobilization Specialist -r.00 Youth and Family Specialist -r.00 Victim Advocate -r.00 -9.00 4 June io, 2003 • Department/Position FYzooz FY2oo3 FY2,004 Total Public Services Graffiti Response Office Tech -I.00 Asst SID Coordinator -t.00 Engineer III -i.00 Equipment Operator -I.00 Field Supervisor -r.00 General Maintenance Worker -i.00 General Maintenance Worker IV -r.00 Engineering Tech III -t.00 -8.00 Totals -7.00 -18.00 -15.00 -40.00 6.) Restore the $219,000 of tax revenue deducted from the Mayor's recommended budget. The tax revenue estimates were carefully calculated by the City's economist. The winter season ended with relatively low valley snowfall and the demands for road salt were very low, generating additional savings in the salt budget. The end-of-the- season salt inventory is larger than we usually have on hand and will allow us to enter the coming year with significantly lower salt purchases. This will permit a budget reduction for next fiscal year. 7.) Do not reduce the Equal Employment Opportunity Manager position. Eliminating this position would deliver a serious blow to our efforts to diversify our work force. Salt Lake City's residents benefit tremendously from a diverse, representative Salt Lake City workforce. Having employees who represent all geographic, racial, cultural, and demographic segments of our community better enables the City to serve the needs of all residents. Our efforts to diversify our workforce must continue if we are to serve all of the City's residents well. Furthermore, Salt Lake City is legally required to have an EEO Officer, develop and publish an annual affirmative action plan, train • 5 June io, zoo3 employees on EEO laws, and promptly and objectively investigateII internal and external claims of discrimination. The City has tried in the past to combine the EEO function with others, such as training and labor relations. This resulted in delays or gaps in affirmative action plans, long delays in investigations, and significant burdens on all other Human Resources staff. In the last year the City reduced the labor relations function to one individual in order to dedicate one of the staff to EEO responsibilities. The potential cost to the City if this function is not carried out properly is obvious: one successful discrimination claim could cost the City hundreds of thousands or even millions of dollars. Salt Lake County, for example, has paid over a million dollars in claims in the past few years. We must maintain this full-time position. 8.) Do not cut the Organizational Development and Training Manager. The Organizational Development and Training Manager supervises the City-wide training program, managing a trainer and overseeing sixty to one hundred training sessions per year. The training staff is far smaller than would be expected for an organization this size. This position also manages the implementation of the new IIII performance appraisal program, a work in progress that represents a major structural change in an organization where performance appraisals have, unfortunately, been inconsistent or lacking. A competitive process resulted in the selection of Performance Impact, the current industry leader in performance management and appraisal systems. This system is primarily managed on-line but can also be used with a paper form. Using the City's balanced scorecard business plan as a guide, employees and supervisors set goals and identify job competencies. The City has invested considerable money and time into the new system. Making the system work will require extensive training and coordination, including acknowledging and addressing the kind of resistance expected when such a major change is implemented. There is simply too much work for one person. Human Resources staff will be called in to help train, but the HR staff is stretched thin, since Human Resources lost a briefly vacant HR Associate position in 6 • June io, zoo3 • the administration's proposed budget. To imagine that this manager can also manage the City's Equal Employment Opportunity work stretches credulity. Much of the actual burden for EEO duties, at least until the incumbent receives additional training in EEO, would fall on the Human Resources Director, who is already stretched beyond what could reasonably be expected. Additionally, the City Council recently sponsored an audit of Human Resources, conducted by Deloitte and Touche. This audit did not conclude that Human Resource Management was in any way overstaffed. In fact, the auditors repeatedly indicated to Human Resources staff that the staff size was smaller than would be expected in an organization of this size. Subsequently, the staff was cut by still one more position, when a professional staff member resigned and the administration cut the position. This was a substantial cut in the Human Resource budget, and removed the one staff member who could provide back-up support and research to the rest of the professional team, including EEO research. • 9.) Do not eliminate the dedicated Capital Improvement Coordinator. In addition to being extremely valuable to me in promoting and implementing the City's commitment to making CIP improvements on our west side and throughout the entire city, this cut could not be made without reducing service levels to the public and to city decision makers. Capital improvement planning, budgeting and management is a detailed task that includes working with numerous employee groups to gather CIP information, working with numerous people and organizations in the community, coordinating the CIP Board's deliberations, working with the administration and the Council, and preparing plan documents. During the next fiscal year we will also be completing a comprehensive inventory of needs and preparing a five-year funding plan. To accomplish these functions, as well as the day-to-day monitoring and accounting of the existing capital improvement program, we need a dedicated staff person. If this function were assigned to existing Community and Economic Development staff, either current • 7 June to, zoo3 CED functions or the CIP planning process would suffer severely for • lack of adequate attention. io.) Do not cut the Deputy Director of Business Services and Licensing. This position is responsible for the following duties of the division: • preparation of budget and allocation of resources; • liaison to IMS on maintenance and development of all programs; • oversight of building inspectors, including one supervisor and eleven inspectors • oversight of the Permit Counter (planners, plans examiners and permit processors), which includes one supervisor, nine employees, and one temporary employee who scans documents; • oversight of Business Licensing, which includes one supervisor and six employees; • provision of technical back-up on codes and standards to the permits counter; • oversight of the division's capital budget; and • serving as Acting director in Director's absence. • In 1997, Harrington Consulting of Davis, California conducted a management audit of Building Services and Licensing. Two major sections of the report dealt with organizational structure and staffing and operational improvements. The delegation of supervisory responsibilities by the director was one of the issues noted, along with the recommendation of a "trained administrative assistant or similar position to assist the Division on budget preparation and administration." The recommendation regarding the administrative assistant position was never acted upon. The Director of Building Services and Licensing has tried to delegate as much responsibility as he can but the Deputy Director and the supervisors have a tremendous workload, which includes helping out with inspections or working at the public service counters. This is compounded by vacation or sick leave use. 8 • June io, zoo3 • The loss of the Deputy Director's position would have a far- reaching result because the Director and supervisors would have to assume the additional workload. We have already lost the positions of an inspector and unit legalization planner this year and we could expect to see increased complaints because of the length of time for plan review and delay of requested inspections would increase. Both the Director and Deputy Director are called upon to assist or help expedite special projects or requests from the administration. A significant decrease in customer service will be the result if the Deputy Director position is eliminated. II.) Do not cut the career ladder adjustment in the City Prosecutor's Office. The City Prosecutor's Office has a career ladder, which allows prosecutors to pursue career development in their positions. The career ladder is part of the City's classification and compensation system. Like the dozens of other career ladders in the City, the prosecutor's career ladder was the result of thorough research and analysis to determine the appropriate job classification. In this case, Coopers and Lybrand provided the City Council with an independent analysis in their management review of the City Prosecutor's Office in 1996. The City conducted further study and finally implemented the career ladder in 1999. A major factor in developing the career ladder was the high turnover rate among the City Prosecutors, resulting in lost productivity and high training costs. This particular career ladder is being singled out among others in the City, in spite of the fact that it may be the most studied and analyzed—and the most successful—advancement program in the City. Clear criteria for advancement are included, and advancement is not automatic, but is subject to management approval and available funds. Conclusion The combined impact of the changes I have outlined in paragraphs 1-4 totals much more than the $864,317 needed by the City Council to balance the budget without making the devastating staffing cuts that have been proposed. The residents of Salt Lake City have come to expect high levels of service from well-trained, courteous, and professional City employees. Although the temptation to cut positions is undoubtedly • 9 June io, 2°03 strong, I assure you that the cuts proposed will result in significant w reductions in the City's ability to function efficiently. I have proposed, and I hope you will accept, several sources of revenue that will enable us to balance this year's budget without implementing these harmful staffing cuts, which would reduce service levels and impose an even higher burden on the remaining employees who must assume additional duties to cover the workload of the eliminated positions. Finally, if any of the Council's proposed cuts relate to perceived performance problems with the person holding a particular position, I hope you will work with me to resolve those issues through the appropriate personnel channels, rather that cutting the position entirely. We have repeatedly seen both the temptation and the pitfalls of addressing personnel matters through organizational changes. While this approach to personnel matters may seem cleaner and may offer the added benefit of saving money in the short run, it is short-sighted to eliminate or relocate an FTE just because of factors that relate to the person holding that position. Also, it does not account for the loss of a full time employee to complete tasks that are critical to the City's operations. Any proposal to eliminate a position simply because of rumor or innuendo • concerning particular employees might very well constitute a denial of due process and an unlawful end-run around our well-established merit employee disciplinary/termination process. Thank you for the opportunity to offer my views and some alternatives to the proposed changes. I am happy to discuss the ideas presented here with any and all members of the City Council. Please do not hesitate to contact me. 10 • POTENTIAL REVENUE ISSUES Total Total MRB Anticipated Revenue $ 164,485,893 A Use of fund balance to meet on-going expenditures(Council supported$2 million appropriation,Mayor's Recommended Budget is $ 3,002,544 $ (1,002,544) reduced by approximately$1 million) B Conservative Revenue Projections $ 219,000 $ (219,000) C Anticipated delinquent fine and forfeiture collections(Council supported recognizing revenue) $ 500,000 D One-time cuts in Police Department to meet on-going expenditures(Council supported recognizing revenue) $ 326,000 E One-time cuts in Prosecutor's Office to meet on-going expenditures(Council supported recognizing revenue) $ 42,350 F Fund Neighborhood Matching Grant Program with on-going revenue(Council supported Mayor's Recommended Budget) $ 250,000 G Telecom fee(Council opposed appropriating revenue) $ 326,675 $ (326,675) Total Council Anticipated Revenue $ 162,937,674 OPTIONAL BUDGET REDUCTIONS Total Total MRB Expenditures $ 164,485,893 Proposed Additional FTE IMS 1 Eliminate proposed IMS network technician FTE $ 75,936 $ (75,936) 2 Eliminate proposed IMS web programmer $ 75,936 $ (75,936) Proposed Additional FTE Attorney's Office 3 Eliminate proposed paralegal position in Prosecutor's Office(Council supported Mayor's recommendation) $ 52,500 4 Eliminate proposed paralegal position in City Attomey's Office(Council supported Mayor's recommendation) $ 52,500 Proposed Existing FTE Redaction in Management Services 5 Consolidate Cl?Administration with Finance/Engineering(1 FTE Layoff($32,000 to Housing and Neighborhood Development $ 31,468 $ (31,468) Division) 6 Transfer EmergunryMat tfmdioninDept.ofManagementServicetoPoliceandFire(°FTElayoffjTotalbudget $ 45,000 $105,000;entetpiise fmds paW for$64000:(Coimcil to discuss) 7 Consolidate EEC)function with existing BR positions(1 FTE Layoff) $ 78,115 8 Transfer Organizational Development function in HR to Policy Analysts(1 FIB Layoff) $ 78,768 or 8a Consolidate EEO and Organizational Development function in HR(1 FTE) $ 78,115 $ (78,115) Proposed Existing FTE Reduction in Police 9 Investigate collaborative opportunities to reduce Crime Lab staffing(1 FTE Layoff)or include this item as a legislative intent. $ 35,500 (Council staff withdraws recommendation) 10 Eliminate duplication inConannoitylvhiliffization Program in Police Department(1.19..b layoff is$52,000,?FTE layoffs is. $ 208,000 $104,000)(Couocilto dien.cs) .. - Proposed Existing FTE Reduction in CED 11 Consolidate inspection services in City(1 FIE Layoff) $ 87,000 $ (87,000) 12 Transfer Traffic Calming position to CIP $ 49,815 Proposed Existing FTE Reduction in Public Services 13 Transfer e couttlinationrimcticata existing PUblic SerYiee employees(1 tb Layoff)(Council to discuss) $ 68,928 Proposed Other Reductions Reduce Bus Pass Expenditure to reflect actual anticipated amount $ 30,000 $ 0,000) Eliminate career ladder program in Prosecutor's Office • $ 18,482 $ 8,482) Potential Policy Shifts Early Retirement Program Eir a conarlyRetditi ementons of this program will include limitations on rehiring or come with retirees b. 90 Day participation period 16 c.Management discretion in timing of employee departure $ 500,000 d. $ per month for toward health insurance,or option of$ lump sum deposited to 401 or 457,or cash payment of $ (subject to taxation) (Total yearly savings is anticipated to be$1,140,000,timing of departure will affect savings amount.Investment of one-time funds is required.)(Consider Legislative Intent to establish program by September) Transfer retirement payout liability(with one-time funds)to a separate retirement liability account and pay out anticipated 17 retirement expenses from that account;eliminate ongoing expenditure $ 650,000 $ (650,000) Personal Leave Program Changes(Consider Legislative Intent to request review) 18 Eliminate personal leave payout at reduced rate $ 210,200 19 Restructure accumulated sick leave/personal leave benefit plans and"freeze"the cash value of accumulated sick leave to eliminate future additional expenses.Refer this item to the Compensation committee for further review. Pay Increase(Council supports Mayor's Recommended Budget) 20 No Pay Increase-General Fund Impact(Union=$1,920,177,Non-Union=$904,994) $ - 21 1%Pay Increase-General Fund Impact(Union=$1,417,4588,Non-Union=$653,147) $ - 22 2%Pay Increase-General Fund Impact(Union=$914,740,Non-Union=$401,300) $ - 23 2%Pay Increase rather than proposed pay increase(Non-Union=$235,300) $ - 24 Fund grant writer positions on the condition that X%of total dollar amount of grant applications are non youth oriented grants.(This $ item is listed as a proposed Legislative Intent statement) 25 Transfer Data&Information Resource Officer to Police(1/4 to Housing and Neighborhood Development) $ - Constant staffing in Fire Department(Council supports Mayor's Recommended Budget) 26 Maintain 4 handed crews except covering'unplanned'sick,funeral leave,dependent leave $ 260,000 27 Maintain 4 handed crews except covering vacation,sick,funeral leave,dependent leave $ 390,000 28 Maintain 4 handed crews except covering vacation,sick,funeral leave,dependent leave,department business,training $ 525,000 Total Council Anticipated Expenditures $ 163,438,956 Total Council Expenditure Reductions $ (1,046,937) Amount Remaining to Reduce(Council requested$l million in reduction options from the Administration;gap was later determined $ (501,282) to be$501,282) (The Administration may clarify some of the cut amounts and may provide additional cuts to replace Council proposed reductions) deseretnews.com Page 1 of 3 deseretnews.com • Deseret News, Monday, June 09, 2003 Big money backs Rocky Has mayor about-faced on his 1999 campaign By Brady Snyder Deseret Morning News A pair of multimillionaire backers — one a co-founder of the now-defunct WordPerfect Corp. in Orem, the other president of The Gateway developer Boyer Co. — have helped funnel tens of thousands of dollars into Mayor Rocky Anderson's re-election campaign war chest, a Deseret Morning News review of Anderson's campaign finance report has found. While the bankrolling by Bruce Bastian and Kem Gardner isn't illegal, it does circumvent the intent of the city's campaign finance reform ordinance that then-Councilwoman Deeda Seed pushed through City Hall five years ago. Besides foiling Seed's intent,the millionaire money has rolled in despite the campaign finance reform views Anderson championed when he made his first mayoral run in 1999. "We should have at least a limit of$1,00o per individual (donor), that's plenty,"Anderson • told the Deseret News in 1999. "Right now a husband, a wife, even each of the children can each give $7,500. That's really no limit at all." Five years ago, Seed, who later became Anderson's chief of staff, was bent on making it hard for big money and special interests to sway the municipal electorate by bankrolling candidates. The law she helped pass states that "no person" can make contributions to a single campaign exceeding $7,500. But there are holes in the law allowing for "bundling," so a husband and wife can give $7,500 each or an individual and his or her multitude of companies can give $7,500 each, making one person's influence many times greater than $7,500. "We created something that's very imperfect, and we're seeing that in the current mayoral race," Seed acknowledged in an interview this week. "We talked about how to get at the issue of bundling, which is basically what's happening, and there really isn't a way to do it that's legal. . . . I was surprised that Rocky's been doing better at fund raising, and clearly it's because of these larger contributions." Seed had hoped to open up the mayor's race to the Average Joe, not just those with political connections to high rollers. In the mayoral election of 1999, she felt the law was working. If not for the law, mayoral candidates "could have found one or two sugar daddies out there to give them $50,000 or $60,000.At least with the limit they had to diversify their support base," Seed said then. Anderson acknowledges he has used the law's deficiencies to gain donations. http://deseretnews.com/do/print/1,1442,505038930,00.html 6/10/2003 I deseretnews.com Page 2 of 3 "Everyone knew, I think, when they passed those limits, that individuals, their spouses and 0 their businesses could all contribute $7,500 each,"Anderson said Sunday. "Anyone who contributes to my campaign knows that I am not going to be any more likely to support their position." The mayor has acquired contributions from Gardner's brothers, daughters and sons and from various companies owned by Bastian. The two multimillionaires, largely representing two special interests —The Gateway development and gay and lesbian issues — have been able to funnel at least $42,000 into Anderson's accounts.And there are still six months before November's municipal election. For perspective, the two contributors have given roughly as much to Anderson's campaign as first-time candidate Molonai Hola has in his entire war chest and, using various business enterprises and personal accounts, have accounted for about 15 percent of Anderson's total contributions. A Deseret News review found that Bastian, who supports gay and lesbian causes in Utah and nationally, has been the largest single contributor to the mayor's re-election bid. Using his own name and his companies BWB Properties and Diaural LLC, an Ogden stereo company he co-founded, Bastian has contributed $22,500, tripling the $7,500 limit. Bastian makes no apologies for the large contributions and seems ready to give more but says he probably can't. 410 "I don't think I can donate any more," he said. "I don't want to do anything illegal." In the case of Diaural's contribution, Bastian noted, the decision wasn't totally his, since he owns only half the company. "I believe (Anderson) has the courage to do what he thinks is right," Bastian said. "He's not afraid to take a stand and he's not a puppet to the Mormon Church." Another multimillionaire, Gardner, has similarly been working hard supplying cash to Anderson's coffers. Using five separate company names —The Boyer Co., Boyer Ambassador, Boyer Block 57 Associated, Gateway Associates and 420 East Partnership — Boyer Co. holdings have given thousands to the campaign to re-elect Anderson. Moreover, Gardner, along with his wife and members of his family— including two brothers living in Davis County, a daughter and a son — have also contributed thousands. The amount given by one of Gardner's companies or the Gardner family totals $20,000. Like Bastian, Gardner makes no apologies. His family has a significant monetary interest —by way of The Gateway— in how Salt Lake City is governed. Were donating because Rocky is the only one right now to show leadership in keeping • Nordstrom in the city," Gardner said. "He's not letting Meier&Frank dictate if(Nordstrom) will stay." http://deseretnews.com/dn/print/1,1442,505038930,00.html 6/10/2003 1 deseretnews.com Page 3 of 3 Nordstrom has said it will leave Crossroads Plaza when its lease expires in 2005 and will leave • Salt Lake City altogether if it can't relocate to The Gateway. "It's pretty obvious why we're contributing. Our family has a very important financial interest in Salt Lake and it's important for us to continue to see the city grow and prosper, and I think that's best under Rocky." Of the $20,000 the Gardners and Boyer have donated to date, $7,500 of that came before Anderson's reversal of his Nordstrom position, while roughly $12,50o came afterward. Earlier this year Anderson chose to change his view on Nordstrom and now wants to allow the store to move off Main Street to The Gateway There was a time when Anderson decried big money from big developers like Boyer. Once while sparring with his 1999 mayoral opponent Stuart Reid,Anderson lambasted Reid for taking money from contractors.At the time,Anderson said the developer contributions "points out how corrupt the campaign finance system is in this town, where one group in one segment of our society contributes a disproportionate amount to any one candidate's campaign. "These businessmen are clearly trying to buy their way into the mayor's office, and if(Reid wins) they will reap huge returns, unfortunately at the expense of regular citizens, on their investment." Anderson said his development money now, is different than that of Reid, who he claimed was • beholden to developers back in 1999.Anderson said he has a more diversified support base, making him less dependent on any one group for support. Seed said that Anderson's millionaire money— much from a development company that is actively soliciting Nordstrom's support from city leaders — continues the trend of special interests unduly influencing local politics. "Everyone's taking money from these people (special interest groups) who you can bet are clearly going to come back and say, 'We want this,' " she said. "Maybe they think they're buying access, that's what it's coming down to. You certainly get a listening ear for that money. Whether you get what you want is a different story." E-MAIL: bsnuder@desnews.com ©2003 Deseret News Publishing Company • http://deseretnews.com/dn/print/1,1442,505038930,00.html 6/10/2003 Other Council Member Initiatives/Concerns Total 29 Restore 50/50 Program $ 168,564 30 Allocate staffing from 50/50 Program to the Curb & Sidewalk programs currently funded through CDBG & $ 168,564 CIP 31 Restore Fire Prevention Educator $ 45,435 32 Allocate one-time money for design review guidelines $ - 33 Allocate one-time money to Housing Trust Fund $ - • • • • Fiscal Year ll;_p.I('IP Project Application lien/int,s _ CIP Board trl ayor FY 2003-2004 FY 2003-2003! FY 2003.2004 Stall Proposed Proposed Recommended Cumulative Total Cumulative Total Operating Budget jr m o: Title of Project Request Estimated Cost Amount Amount Amount Adj Board Cost Council Amount Adj Board Cost Impact NBA&MFET(Class C)CIP Bond Debt Service $4,221,474 $3,787,314 $3,787,314 $3,787,314 $3,787,314 $3,787,314 $3,787,314 Negligible Debt service for several MBA and MFET bonds used to Portion is Impact Fee Eligible complete various capital Improvements throughout the city. c City&County Building Debt Service $2,401,967 $2,401,967 $2,401,967 $2,401,967 $6,189,281 $2,401,967 $6,189,281 Negligible .2 Debt service payment on the bond used to rehabilitate 1 and refurbish the City&County Building.This bond n will mature in 2011. 0 Police/Fire Radio'800 Trunked Radio System $540,794 $540,794 $540,794 $540,794 56,730,075 $540,794 $6,730,075 Negligible aTo pay the lease purchase on radio equipment for Police and Fire.This is the final payment Pollee/Fire Radio'800 Tower Repeater System $61,717 $81,717 $61,717 $61,717 $6,791,792 361,717 $8,791,792 Negligible To pay the lease purchase for the tower repeaters associated with the 800 Dunked radio system. Final payment will be in FY 2005. Percent tor Art $60,000 $60,000 $6,851,792 560,000 $6,851,792 Negligible Provide enhancements such as decorative pavement, railings,scultures,fountains,and other works of art. 24 7 1 Rose Park Lighting Protect $300,000 $300,000 $300,000 $300,000 $7,151,792 $6,851,792 Negligible To remove all existing over head street lighting and install new decorative poles with underground wiring - throughout the Rose Park Community Council District. An additional$581,000 is being provided through a special Improvement district(SID)bond. 10 10 2 Quayle Avenue from 9th W to 10th W $120,000 $120,000 $120,000 $120,000 $192 • $6,851,792 Negligible To design end construct curb,gutter,sidewalk and a roadway on Quayle Ave near 900 West and 1700 South.$75,000 will be contributed through an area special improvement district(SID)bond. 14 2 3 Sugar House Rails w/Trails $264,000 Impact Fee Eligible None To develop a paved bike/pedestrian trail In shared right. To be maintained by of-way with commuter light rag development on the the County UTA Sugar House spur,500 East to Highland Drive. Various other improvements wet be made as well. 3 4 4 Liberty Park Improvements $2,990,000 $2,000,000 $2,000,000 $2,000,000 $9,271,792 $6,851,792 Negligible To provide for the fourth phase of master planned improvements for the park. Some of the gems included are;the Merry-Go-Round roof;the Horseshoe Area&Duck Pond;Rice Terrace Pavilioin up-grade; Chase home fountain rebuild;park-wide culinary water. 23 1 6 13th E Street Crossing $420,00D $420,000 $420,000 $420,000 $9,691,792 $6,851,792 Negligible To create a passage across 130D East Street,south of Estimated that O&M the 2100 South intersection,connecting Sugar House Costs will be$1,000 Park with Hidden Hollow Natural Area and the Sugar in FY 04-05 House Business District.$120,000 of this funding will cover 100%of the construction design cost 1 3 6 Irrigation System-Sugar House Park I Phase III $80,000 $80,000 $80,000 $80,000 $9,771,792 $6,851,792 None To partially fund phase Ill of the Sugar House Park Park is maintained by irrigation refurbishment to bring the entire park the County irrigation system up to date with a more efficient irrigation equiprent.The portion of the Irrigation - system that has not been refurbished is currently • • 1 OP Board Mayor FY 2003-2004 FY 2003-2004 FY 2003-2004 Staff Proposed Propound Recommended Cumulative Total Cumulative Total Operating Budget ;7 7 Title o1 Protect Request Estimated Cost Amount Amount Amount Anti Bo od Cost Council Amount Ad)Board Cost Impact 13 6 7 Strafford Park ADA Playground 3100,000 3100,000 3/00,000 $100,000 $9,871,792 $6,851,792 Negligible To replace the eldating playground equipment In the park,located at 20th East and 2600 South,which is not ADA accessible.Also,to redo the existing landscape to be In harmony with the new playground equipment and Wool 21 6 8 North Bdekyard Neighborhood Park Design $30,000 Impact Fee Eligible Negligible To design a park on a half-acre site owned by Salt Once constructed, Lake City located on the Jordan Canal corridor Parks 08M costs will between Crandall and Zenith Ave,at 1140 East 2905 increase 32,00010 South. 33,000 26 12 a Steenbllk Mini Park ADA Playground $150,000 $150,000 $150,000 $150,000 610,021,792 $6,651,792 Negligible To replace the existing non-ADA accessible playground equipment in the park,located at 1069 West and 800 North,as well es up-grades to the irrigation system. _ 18 16 10 Pedestrian Safety Devices $150,000 3150,000 $150,000 $150,000 $10,171,792 $6,851,792 Negligible To provide for the installation of pedestrian safety devices throughout the city.These Include pedestrian signals with countdown timers,in-pavement or overhead crosswalk lighting,or improved pavement _ markings.These devices era Installed throughout t 17 19 11 Jordan River Trail Security Lighting 3165,000 $165,000 $165,000 $165,000 $10,336,792 $6,851,792 Negligible To add security lighting to the 1300 South to 1700 South portion of the Jordan River Trelway System. This is a continuation of the lighting system. 22 20 12 Rosewood Park Master Plan $50,000 450,000 • $80,000' $50,000 610,388,792 $6,851,792 Negligible To crests a master plan for Rosewood Park Including a plan for use of the 40 acre parcel to the north of the park.Rosewood Park Is located at 1400 North and 1200 West. 28 24 13 Constitution Park ADA Playground A Tennis $200,00D $200,000 $200,000 $200,000 $10,586,792 $6,851,792 Negligible Upgrade To replace the existing non-ADA accessible playground equipment,upgrade the tennis courts and modify the irrigation system.Constitution Park Is located at 1300 West 300 North.4 8 14 ADA Ramps/Comer Repairs $300,000 $300,000 $250,000 $250,000 $10,836,792 $6,851,792 Negligible To construct various ADA pedestrian ramps and related repairs to corners,including sidewalk,curb end gutter. 16 9 16 Pedestrian Blke Path Development $100,000 3100,000 $50,000 $50,000 610,866,792 68,851,792 Negligible To develop.design and construct pedestrian end bike paths,routes,and facilities throughout the city as opportunities arise. 16 14 16 Local Street Rehabilitation $1,500,000 $1,500,000 $1,000,000 $1,019,483 $11,906,275 $6,851,792 Negligible To reconstruct or rehabilitate deteriorated local streets to include replacement of street pavement, replacement of defective sidewalk,curb and gutter and Improvement to drainage.Streets rehabilitation Is done and an as needed basis according to the pa 6 15 17 Sidewalk Replacement SID $600,000 3600,000 $400,000 $400,000 $12,306,275 $6,851,792 Negligible To replace defective sidewalk and remove tripping hazards in the designated special Improvement district (SID)area.This project will also install ADA pedestrian ramps,provide some tree replacement where trees have damaged sidewalk,and improve drainag - - • • 2 • 7,, • CIP Board Mayor FY 2003-2004 FY 2003-2004 °.-� FY 2003-2004 Staff Proposed Propcsed Recommended Cumulative Total Cumulative Total Oper;rting Budget Title of Project Request Estimated Cost Amount Amount Amount Adj Board Cost Council Amount Adj Bo,trd Copt im p;iet 16 13 18 New end Replacement Streetlights $80,009 $60,000 $60,000 $60,000 $12,366,275 $6,851,792 Negligible To replace existing streetlights that are no longer servkeble or install new streetlights on and as needed basis.To be coordinated with other city projects. 27 11 18 Sugar House Lighting Protect $875,000 $675,000 $675,000 $675,000 $13,041,275 $6,651,792 Negligible To remove all existing over head street lighting and Install new decorative poles with underground wiring. Street lights would be replaced on 2100 South from 700 East to 1300 East,and Highland Drive from Ramona to 1-80 and Wilmington. 11 18 20 Sidewalk Rehabilitation•Concrete Sawing $200,000 $200,000 $150,000 $150,000 513,191,276 $6,851,792 Negligible To provide sidewalk rehabilitation and a reduction of tripping hazards through a relatively new concrete sawing technique.This process elirnnates existing sidewalk displacements of up to one Inch through use of a specialized saw which slices off the din 2 17 21 Traffic Signal Upgrade $625,000 $625,000 $500,000 $500,000 $13,691,275 $6,851,792 Negligible To remove existing traffic signal equipment and upgrade with mast arm poles,new signal heads, pedestrian signal heads with countdown timers, improved loop detection and left turn phasing. Planned upgrades wilt take place at 300 West and 1700 South,400 20 21 22 Jordan Park Peace Garden•Irrigations System $190,000 $190,000 $190,000 $190,000 $13,881,275 $6,851,792 Negligible Phase II To provide for the second phase of Peace Gardens irrigation construction.The Irrigation system Is being • replaced to maximize water efficiency and to attach it to the Central Control System.Jordan Park Peace Garden le located 1000 West 1000 South. 26 23 23 200 S Reconstruction $3,250,000 $3,250,000 $3,250,000 $13,881,275 $6,851,792 Negligible To reconstruct deteriorated and substandard street on 200 South,from 400 West to 900 West,to include pavement reconstruction,installation of new curb, gutter and sidewalk,storm drainage,street lighting, street landscaping and traffic control features 12 22 24 Traffic Calming $250,000 $250,000 S200,000 $13,881,275 $6,851,792 Negligible To Install traffic calming devices such as bulb-outs, speed humps,raised crosswalks,traffic circles, medians,etc.,on streets where these types of devices ere deemed appropriate in eligible areas of the City. 31 26 Herm Franks Park•Pardng and Storage $130,000 $130,00D $130,000 $13,881,275 $6,851,792' Negligible To plan and construct new landscape along the 709 East frontage.Also,to make changes to the irrigation system and to add security lighting.Henn Franks Park Is located at 1350 South 700 East. _ 32 26 EOCITnlning Center $8,000,000 $8,000,000 $8,000,000 $13,881,275 $6,851,792 Unknown To provide for the completion of a building through a joint venture with the area Red Cross to build an Emergency Operations Center(EOC)ITraining Center. • • 3 rY - CIP Board Mayor FY 2003-2004 FY 2003-2004 -- , °,c FY 2003-2004 St el Propoucd Proposed Recommended Cumulative Total Cumul:rtve Total Operating Budget '5 m z Title of Protect Reouest Estimated Coot Amount Amount Amount Adj Board Cost Coerced Amount Adj Board Coot Impact 30 27 700E Street Lighting Upgrade 52,000,000 $2,000,000 $2,000,000 $13,881,275 $6,851,792 Negligible To remove all existing over head street lighting on 700 East from South Temple to 2700 South,and install new decorative poles with underground wiring. 8 28 ADA Transition Plan Improvements-City Wide $100,000 $100,000 6100,000 $13,881,275 $6,861,792 Negligible To design and constuct in parks,city-wide,that have been identified as accesstgity Issues as defined by the Americans with DlsabNittee Act. 6 29 SMCC Chlorine Tank $70,000 $70,000 $70,000 $13,881,275 96,851,792 Negligible To prolong the normal service life of the boiler at the Sorenson Multi-Cultural Center,the chlorine tank needs to be moved from the room where the boier is located,due to the corrosive nature of chlorine fumes. The Sorenson Center is located at 865 We 33 30 Popperton Park ADA Playground 8,Master Plan $120,000 $120,000 6120,000 $13,881,275 86,851,792 Negligible To replace the existing non-ADA accessible playground equipment as well as up-grades to the irrigation system. 28 31 Sugar House Ramp and Paver Replacement $400,000 $400,000 $400,000 213,881,275 $6,851,792 Negligible To replace substandard ADA pedestrian ramps and sidewalk pavers in the Sugar House business district. 36 32 CIP Grants Matahing Funds $100,000 $100,000 2100,000 $13,881,275 $6,851,792 Negligible To provide funds to be evadable for use as CIP grants matching money. 38 33 Lindsey Garden Park-Master Plan $50,000 $50,000 $50,000 513,681,27b $6,851,792 Negligible To create a master plan for Lindsey Garden Park to determine the best future use of the park. 38 34 Main Pollee Station $44,174,300 $44,300 04,300 $13,881,275 $6,851,792 Unknown To provide for the purchase of approximately 113 of an acre contiguous to the existing Public Safety Budding, to demolish the existing apartment building,the Public Safety Building,the parking structure and the annex, and to construct a new main police 7 35 Traffic Signal Installation $375,000 $375,000 2375,000 $13,881,275 $6,851,792 $270 To Install new traffic signals at intersections where they are warranted. 37 36 Westminster ADA Playground dl Parking Turn- $200,000 $200,000 5200,000 513,881,275 $6,861,792 Negligible Around To replace the existing non-ADA accessible playground equipment,to up-grade the irrigation system,and to modify the existing parking tom-around to allow easier access and exit.Westminster Park is located at 090 East 1700 South. 8 37 Fire Station Repairs and Improvements $70,000' 570,000 $70,000 $13,881,275 $6,851,792 Negligible To provide for necessary repairs to all City fire stations. 34 38 1200 E Street/Median Rehabilitation $805,000 $805,000 5805,000 813,881,275 $8,851,792 Negligible To provide street and median island rehabyitatton to 1200 East,from 300 South to 500 South,to include replacement of deteriorated street pavement,curb and gutter,median curb,median irrigation and landscaping. • • 4 C Board Mayor FY 2003.2004 FY 2003-2004 FY 2003-2034 Still Proposed Proposed Recommended Cumulative Total Cumulative Total Operating Budget 33 © m Title of Project Request Estimated Cost Amount Amount Amount All Board Cost Council Amount All Board Cost Impact Withdrawn c Jordan River Trail Railroad Crossing Design $65,000 Withdrawn To design the railroad crossing and to study the costs associated with building a bridge over,or a tunnel under the tracks at this section of the Jordan River Traliway Project.(Request is being withdrawn since Tres•• Street determined that available fun 1- • 160 W Quint* $135,000 Curry Wm and Yalecreet Ave Withdrawn $0 Curb Realignment for intersection of Military Dr.and Withdrawn $0 1700 East Railroad Overpass Withdrawn $0 $0 Class C $0 Class C $0- cuee c io Class C $0 $0 Cass c SO 10 To upgrade pavement,and sidewalk,curb and gutter on this section of street(Recommended that this street be included In the 2004/2005 CIP Local Streets Reconstruction project,pending funding approval for the"-• ' Rossayn Heights-11100 East Street Improvements $364,000 To reconstruct 1900 East between 2100 South and Parley's Way,also Improving sidewalk,curb and •utter befit admin. and street leh. •. CIP Board Member determined that these Issues would require going through the Special Improvement District(SID) riffrillizsinirizazififfrigrissiiiiiiiimmimmiliworimmairisim* Impact FOS Projects $425,000 $425,000 $425,000 Construct various Police,Fire,Park and Street capital Improvement projects identified in the Impact Fee Analysis,Capital Facilities Plan. MBA Debt Ssrvloe for Pioneer Precinct Bond $434,160 $434,160 $434,160 Debt service for the MBA bond used to complete the Pioneer Precinct. Impact fees may be used to pay for 19%of the coat of the facility. 14 2 Sugar Nouse Rails w/Trails $264,000 $264,000 $264,000 To develop a paved bike/pedestrian trail in shared right. of-way with commuter light rill development on the UTA Sugar House spur,500 East to Highland Drive. Various other knprovements will be made as well. 21 HI North Brickyard Neighborhood Park $30,000 $30,000 $30,000 To design a park on a half-acre site owned by Salt Lake City located on the Jordan Canal corridor between Crandall and Zenith Ave,or 1140 East 2905 South. Plaza 349 EOC Construction $50,000 $50,000 $50,000 To complete the construction of an Emergency Operations Center in Plaza 349 $1,203,160 $1,203,160 • • 5