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HomeMy WebLinkAbout2000-04-27city council minutesBook 41 Page 78 SPECIAL COUNCIL MEETING APRIL 27, 2000 12:00 O'CLOCK NOON The Meeting was called to order by Mayor Nancolas. The Mayor requested that everyone stand for the Pledge of Allegiance to the Flag. The Roll of the City Council was called with the following members present: Gable, Callsen, Earl, Ozuna, Langan, and Wells. Absent: none. ADDITIONS OR DELETIONS TO THE AGENDA The Mayor requested that the City Council add one item to the Agenda as Item 1 A which was to accept a right of way deed to the City of Caldwell for the Canyon Industrial Park Road from Ralph E. Smeed. MOVED by Earl, SECONDED by Gable to add an Item IA, acceptance of a right of way deed to the City from Ralph Smeed. Roll call vote. Those voting yes: Earl, Ozuna, Langan, Wells, Gable, and Callsen. Those voting no: none. Absent and not voting: none. MOTION CARRIED (ACCEPTANCE OF RIGHT OF WAY DEED FROM RALPH SMEED) The Mayor explained that this was the right of way deeded to build the road to the Canyon Industrial Park. This will facilitate the Engineering Department beginning the construction on the infrastructure for that roadway. It was from Ralph Smeed. MOVED by Gable, SECONDED by Earl to accept the right of way deed from Ralph Smeed as presented. Roll call vote. Those voting yes: Gable, Callsen, Earl, Ozuna, Langan, and Wells. Those voting no: none. Absent and not voting: none. MOTION CARRIED (RECEIVE BIDS FOR THE SALE OF OBLIGATION BONDS, SERIES 2000, FOR THE NEW CALDWELL POLICE STATION) The Mayor explained that this Special Meeting was called for the purpose of receiving bids for the sale of obligation bonds, series 2000, for the new Caldwell Police Station. He then introduced Bud Way, Vice President for Public Finance for First Security Van Kasper. Mr. Way reported to the Council that he first wanted the Council to see the document that was sent out to advertise this bond issue and also presented to them a summary that they could use as they open the bids. The firms listed were those who expressed an interest in bidding on this bond issue earlier this week. At one time they had ten or eleven firms indicating that interest which was quite remarkable. Mr. Way further stated that they would not go through all of the coupons and etc., but would announce the net interest cost in dollars over the life of the issue that will be charged to the City. That will equate into a true interest cost and that interest rate will be how they determine the lowest bid submitted today. After further explanation regarding the process, the bids were then opened by Mr. Way as follows: Book 41 Page 79 1. ZIONS BANK SALT LAKE CITY $3,917,108.40 — 5.476636% True interest rate. interest rate. 2. U.S. BANCORP PIPER JAFFRAY: $3,900,442.70 — 5.464348% True $3,909,092.95 — 3. SALOMON SMITH BARNEY MORGAN STANLEY: 5.47951% True interest rate. 4. A.G. EDWARDS AND SONS: $3,991,565.00 — 5.614% True interest rate. 5. DANE RAUSCHER: $3,978,440 —5.5828% True interest rate. 6. SEATTLE NORTHWEST SECURITIES: $3,953,506.25 — 5.5508123% True interest rate. 7. FIRST SECURITY BANK: $3,877,085.60 — 5.430647% True interest rate. 8. J.C. BRADFORD & CO: $4,004,752.50 — 5.6441% True interest rate. At the completion of the presentation of the bids, Mr. Wey stated that they would like to verify the three or four lowest bids submitted today. This was being done right now to be sure that they comply with all of the regulations. First Security does have the lowest bird announced and if the bid was determined to be true and correct, the State Statutes designates what they would have to do as the City's financial advisors. Mike Moore, Attorney at Law and serving as Bond Counsel in this matter, explained that according to law the City's Financial Advisor was permitted to submit a bid as it was competitive bid sale. The Law doesn't regard that as giving them any kind of an insight track. The Law does require and City Ordinance requires that if First Security has the winning bid, they cannot also be compensated as your Financial Advisor. Mr. Wey asked for a short recess to verify the three or four lowest bids. This process was proceeding at the moment. Mayor Nancolas stated that the Council would continue with the Executive Session and come back into the Regular Meeting when Mr. Wey had the information. (REQUEST FOR EXECUTIVE SESSION) MOVED by Earl, SECONDED by Gable, that the City Council pursuant: to Idaho State Code, 67 -2345, convene into an Executive Session for the purpose of discussing pending litigation. Roll call vote. Those voting yes: Earl, Ozuna, Langan, Wells, Gable, and Callsen. Those voting no: none. Absent and not voting: none. MOTION CARRIED Councilman Langan indicated that he would like to be excused at this time. The Council convened into Executive Session at approximately 12:30 p.m. At 1:10 p.m., it was MOVED by Earl, SECONDED by Gable to reconvene into the Special Council Meeting. Roll call vote. Those voting yes: Earl, Ozuna, Wells, Gable, and Callsen. Those voting no: none. Absent and not voting: Langan. MOTION CARRIED Book 41 Page 80 (CONSIDER RESOLUTION 39 -00 APPROVING THE SUCCESSFUL BID FOR THE GENERAL OBLIGATION BONDS) Mr. Way was again recognized by the Mayor and informed Council that during their Executive Session, they had an opportunity to verify the three lowest bids. They were correct and he was prepared to recommend that the Council accept the lowest and best bid submitted today for the financing of the Police Station. That bid was submitted by First Security Van Kasper Corporation at a rate of 5.430647. This was a separate bid by a separate subsidiary of First Security Bank. To avoid any appearance of conflict, we are not resigning as the City's Financial Advisor, but we would be forfeiting any financial compensation that the City would have paid us under the contractual arrangement that we have entered into with the City. They will be submitting a letter to the Council so stating. Mr. Way continued stating that they have indicated in the notice of sale official statement that we will be prepared to close this issue on or about May 16, 2000. We want to make sure that we have all of the documents prepared, adopted, bonds printed, and all of the resolutions necessary to have this issue close on time. Mr. Mike Moore, the City's Bond Counsel, informed Council that Resolution No. 39 -00 needs to have the name of the successful bidder on page I which they would do. Mr. Moore pointed out one change that would be made on Page 2. This was due to some phone calls about some concern and confusion regarding bond redemption provision. Therefore, a new Section 3 was added as follows: For purposes of extraordinary redemption of bonds from unexpended proceeds pursuant to Section 813, Ordinance No. 2322, the City hereby opts to call bonds only in inverse order of maturity and by lots selected by the bond registrar. What this means was that the City has reserved the right that if it doesn't spend all the bond proceeds on the third year that the bonds were out on the third anniversary of the bonds, the City would use those unexpended monies to redeem bonds. People who were interested in bidding saw that and wanted to know which bonds would be called. It was unclear as originally printed and could have been read that the City could any bonds maturing at any time. Therefore, several bidders requested that they put in that the longest bonds would be called first. In conclusion, Mr. Moore recommended that with that change, the City Council adopt the Resolution. The Mayor read Resolution No. 39 -00 by title only as follows: A RESOLUTION OF THE CITY OF CALDWELL, CANYON COUNTY, IDAHO, AUTHORIZING THE SALE OF GENERAL OBLIGATION BONDS, SERIES 2000, IN THE AGGREGATE PRINCIPAL AMOUNT OF $5,695,000, TO THE SUCCESSFUL BIDDER; DIRECTING THE PREPARATION, EXECUTION, AND DELIVERY OF THE BONDS; PROVIDING FOR RELATED MATTERS; AND PROVIDING AN EFFECTIVE DATE. MOVED by Gable, SECONDED by Earl that the Resolution be adopted awarding the sale of the bonds to First Security Van Kasper in accordance with their bid and adding the new Section 3 as described. Roll call vote. Those voting yes: Gable, Callsen Earl, Ozuna, and Wells. Those voting no: none. Absent and not voting: Langan. MOTION CARRIED (ADJOURNMENT) MOVED by Gable, SECONDED by Callsen that since there was no further business, the meeting be adjourned at 1:20 p.m. Book 41 Page 81 Roll call vote. Those voting yes: Gable, Callsen, Earl, Ozuna, and Wells. Those voting no: none. Absent and not voting: Langan. MOTION CARRIED i Mayor ouncil erson C f ilpe vson Couilperson Co un l rson ��an. Councilperson Cotmcilperson APPROVED AS written THIS 1st DAY OP May , 2000. ATTEST: C� g City Cleric