In October of 2017 the Eagle Mountain City Council voted on a bond, which included $1.5 Million for improvement on the failing White Hills sewer.
The second bond was for $1.5 million. It also is a Water and Sewer revenue bond. This bond will incur additional debt for the city. Paul Jerome, explains, “This bond issue, called Series 2017B, was for the authorization and issuance of water and sewer revenue bond for the construction of a sewer pipeline and pump station and repairs to the existing sewer system for the White Hills subdivision. The bonds would have a 32-year term and be paid back primarily by a 1% state loan and a state grant. The pipeline would connect the White Hills sewer system to Eagle Mountain’s wastewater plan.
EM City Council Bonds for $6.5 Million
The bond passed with a 3:1 vote, with Colby Curtis voting Nay on the bond. This leads to the question, and thus the Watch Dog report, how has the improvements gone, and what is the status of the bond. To answer this question I did a GRAMA request with the city for the information pertaining to the bond. I was given a 26 page PDF file that contained the information. I have made the information a little more readable and have included it here for those who may be interested along with some context information.
White Hills History
Prior to the annexation of White Hills into Eagle Mountains (WHSSD) boundaries, the White Hills area was served by the White HIlls Special Service District for sewer services.
Discussion to start to annex White Hills started in January of 2009 during the Eagle Mountain City Council Meeting. The events were reported in the Daily Herald.
Developer Nathan Shipp of DAI said they are proposing a large industrial/commercial area within the 3,000 acres that they believe would bring 5,000 jobs to Cedar Valley. They also said they would build the city a new rodeo grounds, boasting “warm-up rings, grandstands and chutes” to be open for the 150th anniversary of the Pony Express in 2010. …
Developers showed maps of proposed public trails through the land and a link to a proposed ATV trail in the city. They said they would reserve space for five schools, including a junior high, and said they have already talked to Associated Foods about eventually bringing a grocery store to the White Hills area, as well as “a big-box store — a Home Depot, a Lowe’s, Olive Garden. We don’t anticipate that happening immediately.
Eagle Mountain agrees to consider annexation of White Hills
The article also points out that White Hills has the pressing problem of failing sewer lagoons. White hills had collected $100,000 in impact fees, but the system still needed $500,000 worth of work.
The City officially approve the annexation on January 19, 2010. in the annexation agreement there is a section on the WHSSD. “This agreement specifically incorporates the terms and obligations of the three (3) separate agreements which are found to be in the public interest and are required as conditions of annexation of the PCIG Property to the City. The City has concluded an Agreement with the SHSSD providing for the transfer of the properties and facilities of the WHSSD to the City in return for the City assuming service obligations of the WHSSD.”
The agreement also talked about an Eagle Mountain Rodeo Grounds at Pole Canyon, and was mentioned by the Developer during the annexation meetings.
On Aug 21, 2018 the Utah County Commissioners voted to revoke any authority given to the WHSSD. The State of Utah followed suit on September 30th 2020.
The Bid Award and Payment
During the April 17, 2018 City Council meeting the City Council awarded a bid to S & L Inc, for the White Hills Sewer Project. The bid was “for the construction of a transmission pipeline system to pump sewage from White Hills to Eagle Mountain wastewater treatment facility located south of City Center. The system would replace a nonfunctional lagoon system White Hills has been connected to.”
NOTE: S&L Incorporated is a contractor that the city has used several times, including the construction of Corey B Wride Memorial park. The company is located in Lindon and state records show that Stephen Larsen is the registered agent.
| Date | Amount | Person/Firm |
|---|---|---|
| 2/14/2019 | $380,522.63 | S&L Incorporated |
| 4/10/2019 | $285,929.35 | S&L Incorporated |
| 10/22/2019 | $70,173.65 | S&L Incorporated |
| 11/26/2019 | $374,254.97 | S&L Incorporated |
| 3/7/2019 | $57,350.00 | Root Masters |
| 10/14/2020 | $370,874.40 | Landmark Excavating |
| 5/19/2013 | $15,895.00 | Jackson Engineering |
| 5/19/2013 | $2,000.00 | Jackson Engineering |
| 5/19/2013 | $29,700.00 | Jackson Engineering |
| 5/19/2013 | $50,300.00 | Jackson Engineering |
| TOTAL: | $1,637,000.00 |
The total amount eligible for reimbursement from the bond from the list above is $1,539,105. The other $97,895 was paid by DWQ from PTIF.
PTIF – The Utah Public Treasurers’ Investment Fund (PTIF) is available to state and local government entities as a short-term cash investment vehicle. The PTIF invests primarily in investment-grade corporate notes, top tier commercial paper, and money market mutual funds. The PTIF invests only in securities authorized by the Utah Money Management Act.
Developers Contribution
During the October 2017 discussion council member Westmoreland, currently the Mayor of Eagle Mountain, asked about the revenue sources that would be used to pay off the bonds. Jeremy Cook, contracted to serve as the City’s Attorney, explained, “… White Hills sewer system was operated by the White Hills Special Service District. It was a lagoon system, and the lagoons failed. They needed to be replaced by a pipeline to the wastewater plant. User rates for the new system would normally be over $50/month; however, the City had promised residents of White Hills essentially the same user rate as the South Service Area. Because these fees would be inadequate to operate the sewer system, other revenue for payments was necessary. These bonds would make up part of that revenue.” Mr. Cook continues, “Tentative arrangement was for the developers to pay enough impact fees to cover any shortfall in the debt service payments for the first five years. The City would also receive funds from the sale of the lagoon property. The combination would provide enough to cover the debt service payments for the first 10 years.”
I have asked the city to give me information on the developers payments as well as the lagoon property sale. At time of publication I have not received that information from the city.
NOTE: It should be noted that the developer for the Pole Canyon development is DAI Managers LLC, Nathan D Shipp. DAI contributed $8,000 to Mayor Westmorland’s Campaign Fund during the 2021 Election cycle and has also contributed $2000 to candidates during previous elections, according to the Election Contribution Database.
Supporting Document
Mike Kieffer is an IT geek by hobby and trade, with a BS in Information Systems & Technology. He is a proud father of 10, a grandpa, an author, a journalist, and internet publisher. His motto is to “Elevate, Inspire and Inform”, and he is politically conservative and a Christian. Mike has a passion for technology, writing, and helping others. With a wealth of experience, he is committed to sharing his knowledge with others to help them reach their full potential. He is known for his jackassery or his form of self-expression that encourages boldness, creativity, and risk-taking. It can be a way to push the boundaries and challenge traditional norms, leading to creative solutions and positive change.
Good job following this. I am usually very much against bonds and debt but i am for this one. Thats what we get for forcing them to become a part of EM.