CITY OF OREM COUNCIL

MEETING MINUTES

December 16, 1980

7:00 p.m.

CONDUCTING:Mayor James E. Mangum

ELECTED OFFICIALS:Mayor James E. Mangum; Councilmembers Earl Farnworth, Harley Gillman, Richard Jackson, Gareth Seastrand and Stella Welsh

APPOINTED STAFF:Daryl Berlin, City Manager; Phil Goodrich, Director of Administrative Services, Ed Stout, City Planner; Jack Jones, Public Works Director; Bryce McEuen, City Attorney; and Chris Moores, Secretary

INVOCATION:Councilman Farnworth

Work Session - 6:00 p.m.

Dick Christensen of Burrows, Smith and Company met with the Council to discuss Industrial Revenue Bonds. Recently the City has received numerous requests regarding industrial revenue bond financing of a variety of proposed private development projects. Lending institutions have been suggesting that their clients contact the City regarding different types of financing due to its potential for lower interest rates and tax free status.

The Council discussed how the bonds would affect the City's bond rating and if the current policy is reasonable. The Council also asked questions regarding the request for industrial bonds to be presented at Council Meeting. No decisions were reached by the City Council in this work session.

The work session adjourned at 6:55 p.m.

Approval of Minutes

Mr. Gillman moved to approve the minutes of the December 9, 1980, Council Meeting with the following correction: on page 1, first paragraph, add that the Chamber of Commerce made known their desire to retain the ratio of commercial to residential property. Mrs. Welsh seconded the motion which passed unanimously.

Appointments to Commissions and Committees

The Mayor asked to defer this item until the first meeting in January.

County Fire Service Agreement

The Mayor reported he met last Wednesday with the County Commission and there will be another meeting December 17 to discuss this issue.

Consent Items

The Council questioned if the prospective buyers would know that the streets in the Hidden Park PRUD were private and the City wouldn't be expected to maintain them. The Council questioned the right-of-way dedication on Palisade Drive in the Rawson Subdivision. Mr. Gillman moved to approve final plats for Hidden Park P.R.U.D - Plat A, 1650 South 800 East (5 lots), Rawson Subdivision - Plat A, 600 South Palisade Drive (3 lots) and Robinson Subdivision - Plat A, 1455 North 950 West (1 lot). Mrs. Welsh seconded the motion which passed unanimously.

Mr. Jackson joined the meeting at this time after a Board of Appeals Meeting.

Presentation of 1980 Audit

Gus Glissmeyer, Mark Stevens and Eric Despain, representing Deloitte, Haskins and Sells met with the Council to present the 1980 Audit. Mr. Glissmeyer reviewed the financial statements and answered the Council's questions regarding them. Mr. Seastrand joined the meeting during this item. Mr. Stevens reviewed the management letter with the Council. Mr. Despain reviewed the management letter regarding the EDP services. Mr. Gillman moved to accept the 1980 Audit Report. Mr. Jackson seconded the motion which passed unanimously.

Report Beautification of 1300 South Entrance to Orem

Mrs. Connie Andersen, chairman of the Beautification Committee introduced the members of the Beautification Committee that were present: Bruce Smith, Jackie Parker, and Michael Lee. Mrs. Andersen explained that over the past several months, the Beautification Committee has been developing a proposed plan to improve the 1300 South entrance to Orem by Signetics. The proposal involves the installation of a new sign which would include landscaping and lighting. She mentioned the committee would also like to see the Shade Tree Plan implemented which includes planting strips in new neighborhoods, planting 1 tree per 6 car stalls in parking lots, etc. Mike Lee presented the design of the proposed sign. Bruce Smith explained the landscaping and told the Council the committee intended that the sign be a community effort. It was suggested that the City appropriate $3,000 to get the project started. The Council discussed this and felt at this time the City could not appropriate any funds. Mr. Gillman moved to accept the design the committee presented for the 1300 South entrance sign and encourage the committee to work with the Chamber of Commerce and other civic groups to get the work done. Mr. Seastrand seconded the motion which passed unanimously.

Industrial Revenue Bond Financing - Borup, Hawkins and Cloward

Ron Hawkins and David Cloward requested that the Council approve the issuance of $700,000 in Industrial Revenue Bonds with a 25 year amortization program. The bonds would finance a new 15,000 square foot professional office building at approximately 1100 South and 800 East. The major tenant in the building will be Borup, Hawkins and Cloward, a local accounting firm, which has been in business since 1948. The application submitted meets the application and general criteria specified in the City Council's recently adopted policy on the issuance of Industrial Revenue Bonds. Mr. Hawkins and Mr. Cloward answered specific questions the Council had regarding the financing.

Fred Olson, representing Dick Fox, the bond attorney, and Dick Christensen of Burrows, Smith and Company, answered questions regarding the interest rates, and the procedures involved with the mortgage companies.

Mr. Gillman moved to approve the inducement resolution to Borup, Hawkins and Cloward for a period of two years. Mr. Jackson seconded the motion which passed unanimously.

Social Security Replacement Program

Approximately two years ago, the City Council authorized the filing of a Letter of Intent with the Social Security System. By law, at the end of two years of having such a letter on file, the City is automatically out of the Social Security System unless the City takes action to withdraw its Letter of Intent prior to December 31, 1980. There has been educational material distributed and several surveys with the final survey indicating that 65% of the employees. wish to withdraw from Social Security. Based on the strong feelings of the City employees, a replacement program has been prepared which will provide for a mandatory disability insurance program and an individual employee optional retirement program.

The replacement program for Social Security benefits is made up of two major areas dealing with mandatory participation in a long term disability insurance program for injuries which occur off the job and an individual employee option to participate in a matching Deferred Compensation program.

The Council discussed the positive and negative aspects of withdrawing from Social Security and also the employees desire to withdraw. Mr. Farnworth moved that we accept the recommendation of the employees of the City and allow the City to withdraw from Social Security and approve the replacement program. Mrs. Welsh seconded the motion. The voting was as follows: Mr. Farnworth, Mr. Gillman and Mrs. Welsh, aye. Mr. Jackson and Mr. Seastrand, nay. The motion carried.

Deeding of Lot - Canyon Hills Development

Mr. Jones explained that the Canyon Hills Development Corporation developed Plat A of the Canyon Hills Subdivision but failed to install all of the required improvements. The home owners of the subdivision contacted the City and demanded that action be taken to install the necessary improvements. Dave Hawkins of the Canyon Hill Development, Corp. has agreed to deed the lot to the City instead of going through foreclosure proceedings. Mr. Hawkins asked that he be given the option of repurchasing the lot. Mr. McEuen explained the agreement will provide Mr. Hawkins six months after deeding the lot to repurchase it if he pays for all improvements plus interest. The Council discussed the improvements which have already been installed and Mr. Jackson inquired as to who authorized the contractor to proceed and if the City had the authority to do so. Mr. Gillman moved to approve the agreement with Canyon Hills Development, Corp. and authorize the Mayor's signature on the agreement with the terms to include the interest rate to be set at 20%. Mr. Seastrand seconded the motion which passed unanimously.

Communication - Proposed Legislation

This was written communication from Burrows, Smith & Company regarding industrial revenue bonds for the Council's information.

Mr. Jackson moved that the meeting adjourn. Mr. Seastrand seconded the motion which passed unanimously. The meeting adjourned at 10:00 p.m.