All present included Mayor Hart, Council Member Elwell, Council Member McDonald, Council Member Jolley, Council Member Roberts, Council Member Rusick, and City Recorder Kari D. Jimenez.
STAFF: Director of Finance Alan Rae, and City Manager Judy Gubler.
EXCUSED:  None.

Audience: Alan Westenskow and others who did not sign in.

A.	Acknowledgement of Quorum

B.	Flag Salute

Council Member McDonald led the Flag Salute 

C.	Invocation

Council Member McDonald gave the Invocation

D.	Disclosures

The Mayor and City Council Members stated they had no conflicts of interest with items on this meeting's agenda.

A.	Discuss and Approve Private Placement Bond with Zions Bank

Alan Rae indicated the City has looked at the Economic Recovery Bonds, the Build America Bonds, Private Placement Bonds and Public Offering Bonds.  The City has also made application to the Community Impact Board.  Alan Rae referred to a Historic Township Financing Options spreadsheet, a copy of which is available by request through Ivins City Hall.  The options identified on the spreadsheet have been offered to the City with a number of different payment options.  With all of the options, the par amount is $3.5 million dollars.  The proceeds amounts on the spreadsheet are the amounts the City can use for the project and that is based on what the cost is to secure the bond and whether or not the City is going to be required to maintain a reserve fund.  A reserve fund is money the City cannot use out of the bond that has to be set aside as security for the bond.  Wells Fargo has given the City three options.  The first option would be a five (5) year note with a twenty (20) year amortization that will reprice in year five (5) at the prime rate plus 1.5%.  The second option would be a ten (10) year note with a twenty (20) year amortization that would require refinancing the loan in ten (10) years.  The third option is a three (3) year note with a twenty (20) year amortization that will reprice in year three (3) at the prime rate plus .75.  The best option for the City is to fix the rate for the longest period of time before the rate adjusts and that option is available through Zions Bank.  Zions Bank is offering a twenty (20) year amortization that will reprice in ten (10) years at a five (5) year rate.  They have a very good interest rate and at this point the City is not anticipating the requirement of a reserve fund with Zions Bank.  That is in the process of being confirmed.  Alan Rae and Judy Gubler recommend the City proceed with the private placement bond with Zions Bank.  Alan Rae thanked Alan Westenskow with Zions Bank for the timely work he has done.  The interest rate and the annual debt service are within what has been advertised to the residents and is adequate to replace the engineering costs that have already been expended.

Judy Gubler indicated that at this point what the approval would be by the City Council is whether or not the City is going to proceed using Zions Bank.  The formal approval with all of the documents will be addressed at another meeting.  Judy Gubler and Alan Rae indicated that even if a reserve fund is required, the option being offered by Zions Bank is the best option for the City.  Council Member Jolley inquired what would need to occur before the City would know about the reserve fund.  Alan Rae responded that due to the anticipated snow storm, Zions Bank sent their employees home early.  Alan Westenskow with Zions Bank stated he works with other cities in Washington County and indicated the bank needs to run a credit analysis and anticipates having a final decision on the reserve requirement by the first of next week. 

MOTION: Council Member Jolley moved to approve a Private Placement Bond with Zions Bank
SECOND:  Council Member Elwell

VOTE: The motion carried unanimously.

Council Member Elwell	AYE
Council Member McDonald	AYE
Council Member Jolley	AYE
Council Member Roberts	AYE
Council Member Rusick	AYE

MOTION: Council Member McDonald moved to adjourn
SECOND:  Council Member Roberts

VOTE: The motion carried unanimously.

Council Member Elwell	AYE
Council Member McDonald	AYE
Council Member Jolley	AYE
Council Member Roberts	AYE
Council Member Rusick	AYE

The meeting adjourned at 5:55 p.m.

Respectfully,

Kari D. Jimenez, CMC
Ivins City Recorder