City Council Minutes

Thursday, March 24,2005



ST. GEORGE CITY COUNCIL MINUTES
SPECIAL MEETING
MARCH 24, 2005, 4:00 P.M.
ADMINISTRATIVE CONFERENCE ROOM

PRESENT:
Mayor Daniel McArthur
Council Member Rod Orton
Council Member Bob Whatcott
Council Member Suzanne Allen
Council Member Gail Bunker
Council Member Larry Gardner
City Manager Gary Esplin
City Attorney Shawn Guzman
City Recorder Gay Cragun

OPENING:
Mayor McArthur called the meeting to order and welcomed all in attendance. The pledge of allegiance was led by Council Member Whatcott and the invocation was offered by Council Member Allen.

RESOLUTION:
Consider approval of a final resolution authorizing the issuance of the City of St. George, Washington County, Utah, Golf Course Revenue Refunding Bonds, Series 2005, in the par amount of $407,000 maturing on April 1, 2010, and related matters.

City Manager Gary Esplin explained that due to the recent flooding, JP Morgan, the holder of the bonds, has agreed to extend the bonds for another year at an interest rate of 4.05%. The bond attorney and fiscal agent have also agreed to waive their fees.

MOTION: A motion was made by Council Member Orton to approve the resolution.

SECOND: The motion was seconded by Council Member Allen.

VOTE: Mayor McArthur called for a roll call vote, as follows:

Council Member Orton - aye
Council Member Allen - aye
Council Member Bunker -aye
Council Member Whatcott - aye
Council Member Gardner - aye

The vote was unanimous and the motion carried.

RESOLUTION:
Consider approval of a resolution providing for the issuance by the Issuer of its not to exceed aggregate amount of (1) $3,315,000 City of St. George, Utah Senior Housing Subordinate Revenue Bonds (OK Foundation projects) Series 2005A, and (2) $300,000 City of St. George, Utah Senior Housing Subordinate Revenue Bonds (OK Foundation projects) Series 2005B (taxable) (collectively, the ?Bonds?) for the purpose of lending the proceeds of the bonds to OK Senior Housing Cottonwood Creek, LLC, a Utah limited liability company, OK Senior Housing The Meadows, LLC, a Utah limited liability company and OK Senior Housing the Wellington LLC, a Utah limited liability company (collectively, the ?Borrowers?) to refund the Issuer?s City of St. George, Utah Senior Housing Subordinate Revenue Bonds (OK Foundation projects) Series 2004B (?Series 2004B Bonds?) and to refinance, in part, the costs of acquiring, rehabilitating, and equipping three multifamily rental housing developments located in the City of St. George, Utah, and Salt Lake County, Utah (the ?Projects?); authorizing execution and delivery of certain subordinate financing agreements among the Issuer, U.S. Bank National Association, as Trustee, and the respective Borrowers; authorizing the execution and delivery of a subordinate trust indenture, a bond purchase agreement, amendments to tax regulatory agreements, assignments and related documents; authorizing the distribution and use of a limited offering memorandum in connection with the sale of the bonds and confirming the sale of the bonds; and related matters.



St. George City Council Minutes
March 24, 2005
Page Two

Kent Norton explained that the senior bonds closed in December as rated bonds guaranteed by Fannie Mae rather than junk bonds. He stated that all three properties had outperformed everyone?s expectations, and he is ready to proceed with expansion of the Meadows whenever the City is ready.

City Manager Gary Esplin commented that the bonds placed no financial obligation on the City.

MOTION: A motion was made by Council Member Gardner to approve the resolution.

SECOND: The motion was seconded by Council Member Whatcott.

VOTE: Mayor McArthur called for a roll call vote, as follows:

Council Member Gardner - aye
Council Member Whatcott - aye
Council Member allen - aye
Council Member Orton - aye
Council Member Bunker - aye

The vote was unanimous and the motion carried.

PUBLIC HEARING:
Public hearing regarding the issuance and sale of not more than $5,000,000 aggregate principal amount of Sales Tax Revenue Bonds, Series 2005, of the City of St. George, Utah.

City Manager Gary Esplin explained that the bond will be paid back by revenue from the RDA. By doing a sales tax issue, the City guarantees payments through sales tax and then is reimbursed through revenues from the RDA. This revenue stream will allow the City to issue debt for a good portion of the Plaza and water walk. The City has an agreement with the School District allowing them to receive more than half of the money the City is now putting in.

Mayor McArthur opened the public hearing. There being no public comment, he closed the public hearing.

FLOOD UPDATE:
City Manager Gary Esplin explained that NRCS funds will provide protection from the Riverwood Subdivision on the north side of the Santa Clara River to Valley View Drive, and on the south side of Valley View Drive past the Olive Grove development, bypassing the big ledge which does not need rip-rap and picking up again by Plant World Nursery. Protection will be provided for four to five homes located north west from Valley View Drive along the south side of the river, then stopping because an easement could not be obtained from a property owner, and picking up at the gazebo to Dixie Drive to protect the water and sewer line. The City will build the road on top of the sewer line for access to the park. Protection will also be provided on the north side of the stretch all the way from Valley View Drive to Dixie Drive, and from there up the river toward Sunbrook for 1000 ft. on both sides of the river and picking up two homes by the end of the driving range. The City received word today that additional NRCS funds will be spent in Enterprise. The NRCS has not funded any protection along the Virgin River or Springs Subdivision. The County will receive $5,000,000 in funding for these protection projects, with a match of 25%. The County has been using lava rock provided by Shan Gubler as its 25% match.

REPORT ON WATER TREATMENT PLANT:
Water Services Director Barry Barnum explained that usage the past few days has been less than last year at this time. The treatment plant is ready to bring back on line at 20 million gallons per day. By mid April this amount will be up to 35 million gallons, and in May there will be full capacity at 40 million gallons. The contractor left the pipeline in poor condition, and even though it belongs to the County, City crews are cleaning it so that it can be used. The big tank will hold 9 million gallons, and it is being readied to fill for a super-flush.

ADJOURN TO EXECUTIVE SESSION:
MOTION: A motion was made by Council Member Bunker to adjourn to an executive session to discuss litigation and a land purchase.

St. George City Council Minutes
March 24, 2005
Page Three

SECOND: The motion was seconded by Council Member Allen.

VOTE: Mayor McArthur called for a roll call vote, as follows:

Council Member Bunker - aye
Council Member Allen - aye
Council Member Whatcott - aye
Council Member Gardner - aye
Council Member Orton - aye

The vote was unanimous and the motion carried.

RECONVENE:
MOTION: A motion to reconvene was made by Council Member Gardner.

SECOND: The motion was seconded by Council Member Allen.

VOTE: Mayor McArthur called for a vote, and all voted aye. The motion carried.

DISCUSSION RE POOLING:
A discussion took place concerning pooling water resources within the County and
the demands of growth. Water Services Director Barry Barnum distributed and reviewed a handout on pooling water resources. After discussion, it was the consensus of the City Council that they were not ready to make a decision on pooling.

QUALITY OF LIFE RESOLUTION:
Council Member Gardner advised he was approached by a citizen who would like the City to adopt a resolution reaffirming the community?s standards to protects its quality of life. The group sponsoring the resolution would like to make a presentation to the City Council.

BATHROOMS AT COX PARK:
Council Member Allen advised that she has been contacted by several residents who do not want restrooms built at Cox Park. It was the consensus of the City Council to schedule this item for a work meeting.

ASBESTOS CERTIFICATION:
City Manager Gary Esplin explained that in order to be certified to handle its own asbestos problems, the City will need to form an asbestos removal company, certified by the State.

SCHEDULE NEIGHBORHOOD MEETINGS:
Neighborhood meetings with the City Council will be scheduled throughout the City to discuss items of interest and concern within each area.

ADJOURN:
MOTION: A motion to adjourn was made by Council Member Gardner.

SECOND: The motion was seconded by Council Member Allen.

VOTE: Mayor McArthur called for a vote, and all voted aye. The motion carried.



_____________________________________
Gay Cragun, City Recorder