City Council Minutes

Thursday, March 25,2010



ST. GEORGE CITY COUNCIL MINUTES
REGULAR MEETING
MARCH 25, 2010, 4:00 P.M.
ADMINISTRATION CONFERENCE ROOM

PRESENT:
Mayor Daniel McArthur
Councilmember Gloria Shakespeare
Councilmember Jon Pike
Councilmember Gil Almquist
Councilmember Ben Nickle
City Manager Gary Esplin
City Recorder Gay Cragun

EXCUSED:
Councilmember Gail Bunker

OPENING:
Mayor McArthur called the meeting to order and welcomed all in attendance. The pledge of allegiance was led by a Scout and the invocation was offered by Gloria Shakespeare.

RESOLUTION:
Consider approval of a resolution authorizing the issuance and sale of not more than $500,000 aggregate principal amount of General Obligation Refunding Bonds, Series 2010, of the City of St. George, Utah; fixing the maximum aggregate principal amount of the bonds, the maximum number of years over which the bonds may mature, the maximum interest rate which the bonds may bear, and the maximum discount from par at which the bonds may be sold; providing for the publication of a notice of bonds to be issued; providing for the running of a contest period; approving the distribution of a preliminary official statement with respect to the issuance and sale of the bonds; and related matters.

City Manager Gary Esplin explained this bond issue is related to the old parks and recreation bonds which were issued years ago. They have been refinanced a few times. Last fall a parameters resolution refunding $5,000,000 in one series was approved, and this is a subsequent issue in the amount of $500,000. Approval of the resolution will allow the City to issue new bonds at a lower interest rate to realize savings of 3-4%. This should generate around $175,000-$200,000 which could be used to do some trail work and landscaping near the Dixie Center.

Councilmember Almquist inquired if it was possible to borrow more in times of lower interest rates and bank it away for use in times of higher interest rates.

Bond Attorney Blaine Carlton explained that these bonds are General Obligation bonds which require an election. In adherence to federal bonding rules, the bonds cannot be issued too far in advance of when the bond proceeds are needed. He stated that now is the time to go into debt as the interest rates are almost at an all-time low.

City Manager Gary Esplin commented that the City also must have the revenue to pay it back.


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March 25, 2010
Page Two

Mr. Carlton advised that the Citys bond rating was just reaffirmed.

City Manager Gary Esplin advised the City was recently re-evaluated and because of its positive financial management was reaffirmed as a Double A Minus, which is incredible in this economy.

Councilmember Pike inquired if the term were being extended.

Mr. Esplin replied that it was not.

MOTION: A motion was made by Councilmember Pike to approve the resolution.
SECOND: The motion was seconded by Councilmember Almquist.
VOTE: Mayor McArthur called for a roll call vote, as follows:

Councilmember Pike - aye
Councilmember Almquist - aye
Councilmember Shakespeare - aye
Councilmember Nickle - aye

The vote was unanimous and the motion carried.

RESOLUTION:
Consider approval of a resolution to provide for the financing of equipment and related improvements for Apogee Enterprises, Inc., or any related company with respect to its Viracon facility located in St. George, Utah; authorizing and providing for the issuance by the issuer of its $12,000,000 variable rate demand Industrial Development Revenue Bonds, Series 2010 (Apogee Enterprises, Inc. Project) which will be payable solely from the revenues arising from the pledge of a loan agreement with Apogee Enterprises, Inc.; authorizing the execution and delivery of a loan agreement between the issuer and Apogee Enterprises, Inc.; authorizing the execution and delivery of an indenture of trust, a bond purchase agreement, and related documents; approving the use of an offering memorandum; confirming the sale of said bonds; and related matters.

City Manager Gary Esplin explained Washington County received federal funds under the recovery program while allows industrial revenue bonding-type projects. This allows the County to issue industrial development revenue bonds without being subject to a state cap. If there is any money allowed under that cap which is not allocated by a certain time, the state would like it back so it can be used before the end of the year when the recovery program ends.

Blaine Carlton explained that the Recovery Act adopted in 2009 allowed for $60,000,000 to go to Washington County. It is broad and flexible and allows types of projects which otherwise could not be financed through a typical IRB. This is a good opportunity for the City. It is a variable rate bond secured by a direct pay letter of credit. Even though the bonds are issued in the name of the City, so that the bonds can get tax exempt treatment, the City is acting as the conduit. If Apogee defaults,


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March 25, 2010
Page Three

the letter of credit bank would be drawn upon and the bonds would be paid off and the bank would end up owning the bonds. There is no risk to the City.

City Manager Gary Esplin advised it is possible that Apogee will be coming back for more money. He advised that Andy Whitehead who works with Apogee, the parent company of Viracon, would like to make an announcement at a later date as far as employment and benefits to the City. He explained that regular bonding is only available for value-added manufacturing facilities, however, this allocation is different and allows other types of businesses to qualify.

MOTION: A motion was made by Councilmember Almquist to approve the resolution.
SECOND: The motion was seconded by Councilmember Nickle.
VOTE: Mayor McArthur called for a roll call vote, as follows:

Councilmember Almquist - aye
Councilmember Nickle - aye
Councilmember Shakespeare - aye
Councilmember Pike - aye

The vote was unanimous and the motion carried.

PRESENTATION RE BLUFF STREET ENVIRONMENTAL ASSESSMENT:
Presentation from HW Lochner regarding the Bluff Street environmental assessment.

City Manager Gary Esplin explained an environmental assessment will be conducted as part of a traffic study with regard to the possibility of widening Bluff Street to accommodate traffic demands. HW Lochner is the engineer.

Brett Jensen with HW Lochner explained that he is the project engineer on the Bluff Street EA. He presented a power point presentation entitled Bluff Street Environmental Study covering the following topics: 2006 corridor study findings and recommendations, study area, project schedule, goals and major challenges.

ART FESTIVAL:
Leisure Services Director Kent Perkins invited everyone to attend the Art Festival next Friday and Saturday. There are 110 artist booths, 21 food booths and three stages. He advised that 285 artists apply for 110 slots. He invited the Mayor and Council to award ribbons for their favorite art.

ADJOURN TO EXECUTIVE SESSION:
MOTION: A motion was made by Councilmember Almquist to adjourn to an executive session to discuss litigation and a property purchase.
SECOND: The motion was seconded by Councilmember Pike.
VOTE: Mayor McArthur called for a roll call vote, as follows:

Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Nickle - aye

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March 25, 2010
Page Four

Councilmember Shakespeare - aye

The vote was unanimous and the motion carried.

Upon conclusion of the executive session, the meeting adjourned.




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Gay Cragun, City Recorder