State Building Ownership Authority

STATE BUILDING OWNERSHIP AUTHORITY

Pending Minutes of the November 21, 2017 Meeting

Rampton Board Room, C-200, State Capitol

Salt Lake City, UT 84114

Authority Members Attending:

Spencer Cox, Lt. Governor and Chair of the State Building Ownership Authority (telephonically)

Ned Carnahan, Vice Chair of the State Building Ownership Authority (telephonically)

David Damschen, State Treasurer and Secretary of the State Building Ownership Authority

Others in Attendance:

Kirt Slaugh, Office of the Utah State Treasurer

Johnathan Ward, Zions Public Finance

Tom Shaw, Division of Facilities Construction and Management

Lee Fairbourn, Division of Facilities Construction and Management

James Burr, Chapman & Cutler LLP

Reed Stringham, Assistant Attorney General

Blake Wade, Gilmore and Bell (telephonically)

Aaron Wade, Gilmore and Bell

Eric Pehrson, Zions Public Finance

Jon Bronson, Zions Public Finance

Rob Muir, University of Utah

Miranda Jones, Governor’s Office of Management and Budget

Treasurer David Damschen called to order the meeting of the Utah State Building Ownership Authority.

Approval of Minutes

Mr. Ned Carnahan made a motion to approve the minutes of the March 23, 2016 meeting of the State Building Ownership Authority. Treasurer Damschen seconded the motion. The motion passed unanimously with Mr. Carnahan, Mr. Damschen, and Lt. Cox all voting in favor.

Adoption of Resolution

Treasurer Damschen introduced a parameters resolution for consideration by the Authority. Mr. Damschen explained that the authorized amount of $60 million in lease revenue bonds, series 2017, includes capacity for an anticipated advanced refunding that, depending on market conditions, may or may not create compelling savings sufficient to require that refunding. He further stated that he and the state’s municipal advisor, Zions Public Finance, were keeping a close eye on market conditions in order to take proper action. The amount of new money projects were estimated at around $18.25 million par. Mr. Bronson briefly reviewed the financial assumptions supporting the requested amount of bond financing.

Mr. James Burr, bond counsel to the Authority, presented the parameters resolution authorizing the sale of bonds not to exceed $60 million. The resolution parameters include a maximum interest rate not to exceed 5.5% , a maximum maturity of the bonds of 23 years, and a maximum discount from par of 2%. The resolution also authorizes the issuance of refunding bonds.

Lt. Cox made a motion to approve the parameters resolution authorizing the issuance of the bonds. Mr. Carnahan seconded the motion. The motion passed unanimously with Mr. Damschen, Mr. Carnahan and Lt. Cox all voting in favor.

Mr. Damschen stated that the Authority should have the opportunity to review and adopt a post issuance compliance policy at the next meeting. The policy was discussed briefly and it was determined that the policy would be shared by the State Bonding Commission and that both the State Building Ownership Authority and State Bonding Commission would adopt the same policy in their respective board meetings.

Lt. Cox moved to adjourn the meeting. The motion was seconded by Mr. Carnahan. The motion passed unanimously with Mr. Damschen, Mr. Carnahan and Lt. Cox all voting in favor.