Members Present:
Sen. Beverly Evans, Senate Chair
Rep. David Ure, House Chair
Sen. Ron Allen
Sen. John L. Valentine
Rep. David N. Cox
Rep. Neil A. Hansen
Rep. Neal B. Hendrickson
Rep. Joseph G. Murray
Rep. A. Lamont Tyler
Members Absent:
Sen. Karen Hale
Sen. L. Alma Mansell
Rep. Duane Bourdeaux
Staff Present:
Mr. Brian Allred, Research Analyst
Mr. Keith Woodwell, Associate General Counsel
Ms. Joy L. Miller, Legislative Secretary
1. Welcome and Committee Business
Chair Evans called the meeting to order at 10:15 a.m. Sen. Hale was excused from the meeting.
MOTION: Rep. Murray moved to approve the minutes of the November 26, 2001 meeting. The motion passed unanimously with Sen. Allen and Sen. Valentine absent for the vote.
2. State Olympic Officer Report
Mr. Lane Beattie, State Olympic Officer, expressed his appreciation for all the many agencies that helped with the Olympic games to ensure their success and safety. He indicated that the $40 million legacy funds are in account and the state has been repaid $59 million which was divided between the state and local governments. Almost every entity has received its portion. He read a letter of release of indemnification to the state from Salt Lake City. He complimented Salt Lake City on its preparations for the games. Mr. Beattie mentioned that over 15,000 people came to the capitol to view the Declaration of Independence and the Washington at Valley Forge painting. He said they are in the process of planning an additional display on the Olympics. Mr. Beattie stated there is still a lot of work to do. There are many contracts that have not yet been closed out. He stressed the need to be sensitive towards the IOC and USOC since both organizations gave a great deal to the successes of the games.
Mr. Robert Garff, SLOC (Salt Lake Olympic Organizing Committee), stated he was pleased with the Olympic staff and their many efforts.
3. Salt Lake Olympic Organizing Committee Report
Mr. Fraser Bullock, SLOC, distributed a summary of the financial results of the Olympics. He said the Olympics received $6 million more than anticipated. There is a surplus of $56 million of which $6 million will be given to the Olympic Legacy Plaza and be used for venue enhancements. He pointed out that the IOC has agreed to donate its 10 percent to the UAF (Utah Athletic Foundation). He reviewed the anticipated disposition of the surplus funds beginning in January 2003. The UAF will receive $30 million, the USOC will receive $10 million, and the federal government will keep the remaining $10 million in funds that have not yet been drawn down. Mr. Bullock stated the $30 million that will be given to the UAF from the surplus fund will total $70 million and will allow them to maintain facilities in perpetuity including replacement costs as well as avoid any need for taxpayer funds in the future. It will also allow extensive youth programs and facilitate development of future Olympians. He strongly recommended that Soldier Hollow become part of the UAF. Mr. Bullock pointed out that SLOC will meet all its financial obligations and has been generous in its settlements with venue communities.
4. Utah Olympic Public Safety Report
Mr. Bob Flowers, State Olympic Public Safety Commander, said they were able to build one of the most unique and largest law enforcement agencies in the United States. Their expenses are being paid on time. He said there is only one agency that has not yet submitted a bill.
Mr. Dave Tubbs, State Olympic Public Safety Officer, indicated that Utah is the only state that has developed anything like the Utah Olympic Public Safety Command. The Olympic coordination center consisted of over 60 organizations. He said they are in the process of compensating the agencies that were involved. All of the expenses agreed to by the Memorandums of Agreement are being paid. He said there is the possibility of excess funds after all obligations have been met.
5. Utah Athletic Foundation Report
Mr. Randy Dryer, Chair, UAF, commented that on May 1, 2002, the UAF will become the owner/operator of the Olympic park and oval. All senior management is in place and restoration work is underway and there will be significant venue enhancements to the park and the oval. A conceptual agreement with USOC has been reached to continue use of the Olympic name for the two venues. He pointed out that the UAF has received the $40 million payment from SLOC. The projected $70 million endowment assumes that all the sponsors who have payments will make them on time. It also assumes that the potential claims are within the reserved amount. Mr. Dryer explained that it is the goal and intent of UAF to operate the facilities in perpetuity. He stated the board will be adopting a formal investment policy and approve an RFP to hire a professional money manager. He commented that there is no long-term significant operational history regarding the operational costs of the two venues. These venues will never be self sufficient. That is why it is important that the endowment fund be sufficient. Mr. Dryer stated the UAF recognizes the importance of the Soldier Hollow venue and that it is deserving of the opportunity to be financially viable long term. He said the UAF will be asking the board to create a task force to meet with the representatives of the Division of State Parks and Recreation, Soldier Hollow, and other interested parties to develop a way to make Soldier Hollow economically viable.
Mr. Mark Lewis, Olympic Properties - U.S., stated that the Olympic oval has the ability to hold long and short track speed skating, hockey, and curling. He discussed the many important events that will be hosted at the venues in the future.
6. Other Committee Business
Mr. Dave Winder, Department of Community and Economic Development, stated that during the Olympics it was determined that there are a number of projects that can be very valuable for the state. He stressed the need to begin the projects as soon as possible to take advantage of the success of the Olympic games. He indicated that one of the projects is to hold a Utah/Moscow games. The mayor of Moscow has challenged Utah to have youth athletic competitions. Mr. Winder said he will be identifying projects and involving the impacted communities.
MOTION: Sen. Allen moved to adjourn the meeting. The motion passed unanimously with Rep. Cox and Rep. Ure absent for the vote. Chair Evans adjourned the meeting at 11:30 a.m.