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Home My WebLink About1992-10-26city council minutesBook 33 Wage 212 Special Meeting October 26, 1992 12:00 Noon The meeting was called to order by Mayor Dakan. 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: Nancolas, Simmons, Carpenter, Houchins, and Ozuna. Absent: Raymond. (CONSIDERATION OF BILL NO. 33, THE BONDING ORDINANCE FOR L.I.D. 92- 1 AND ESTABLISH THE INTEREST RATE FOR L.I.D. 92 -1) Mayor Dakan explained that this was the time set for considering the Bonding Ordinance for Local Improvement District 92 -1 and to also set the interest rate. The Mayor further informed Council that Nicholas G. Miller, Attorney at Law, and Floyd Ayers from George K. Baum and Company, Investment Bankers, were present at the meeting to present the necessary documents. Mr. Nicholas G. Miller, Attorney at Law, was recognized by the Mayor and stated that he was from the firm of Hawley, Troxell, Ennis, and Hawley, the bond counsel firm that will render the legal opinion as to the validity and tax exemption of the Local Improvement District bonds. Mr. Miller reviewed each of the documents briefly which consisted of Record of Proceedings, the actual Bond Ordinance, and a Bond Purchase Agreement between the City of Caldwell and George K. Baum and Company. He stated that the Ordinance authorizes the issuance of $172,319.43 total amount of the bonds. A chart was included on page 5 indicating the maturity and interest rates. The bonds are dated November 1, 1992, and will be paid by November 1, 2002, making it a ten year bond issue. Mr. Miller explained further items included in the Bonding Ordinance. After Mr. Miller's comments, Mr. Floyd Ayers was recognized by the Mayor. Mr. Ayers explained the contents of the Purchase Contract stating that it indicates the conditions for the purchase of the bonds. He further stated that the interesting information was on the last pages of the Agreement which was with regard to the interest rates and debt service schedule for this issue over the ten year period. The average rate on the bonds was 6.5% as shown on Exhibit B. Also, provided in the legal documents for the City to add was a one -half percent administrative fee for administering this Local Improvement District over the ten year life of the bonds. A copy of both Exhibit A and B indicating the description of the bonds and the bond maturity schedule are attached to these minutes. After Mr. Ayers's presentation, the Mayor read Bill No. 33 by title only as follows: AN ORDINANCE PROVIDING FOR THE SALE AND ISSUANCE OF A BOND FOR LOCAL IMPROVEMENT DISTRICT 92 -1 FOR THE CITY OF CALDWELL, IDAHO; PROVIDING FOR THE PAYMENT AND COLLECTION OF SPECIAL ASSESSMENTS LEVIED IN SAID LOCAL IMPROVEMENT DISTRICT; PROVIDING FOR THE HANDLING OF FUNDS RECEIVED FROM SPECIAL ASSESSMENTS AND THE CREATION AND ENFORCEMENT OF LIENS IN CONNECTION WITH THE SALE AND ISSUANCE OF A BOND; PROVIDING FOR THE CREATION OF A LOCAL IMPROVEMENT DISTRICT BOND FUND AND INTEREST FUND; PROVIDING FOR THE CREATION OF AND PAYMENT FROM A GUARANTEE FUND; PRESCRIBING DETAILS CONCERNING THE FOREGOING; ALLOCATING Book 33 Page 213 TO ".'SSE DIS'T?ICT 1, ?ORTICA OF THE CITY`S SMALL ISSUER AUTKOTITY FOP PURPOSES OF EXEMPTION FRO.'! ARBITR - REBATE, PROVIDING FOR A REASSESSMENT OF ASSESSMENTS i=.YD 7HE REITSUE OF A i=OND; R'- ,?7ALIN'G CONFLIC''a PROCEEDINGS; ORDERING PUBLIC`,.TION; PROVIDING IRREPEALAFi`LITY; PROVIDING SEVERABI,L::'-TY, AN DECLARING AN B ERGENC.'. MOVED by Nancolas, SECONDED by 'Eouchins to waive the rule requi T_ng tha a bill. :e :read at three separate times and that the bill be re<.a in for one read-ing. Rc.,,.'. cal.. vote. Those, voting yes: Nancolas, Simmons, Carpenter, Houchins, and 'Qlzuna. ^hose Noting no: none. Absent and not voting Raymond. MOTION CARRIED MOVED by Nancolas, S!ECON:DE. by Houc',nins that Bill No. 33 be passe. d after the o na reading by title only and entitled Ordinan.e No. 69. Rol! call vote. Those ";7oting yes: Nancolas, Simmons, Car enter, Houchins, and Ozona. Those voting no: none. Absent and nct voting: Raymond. MOTION CARI'.I ED Mayo:_ Dakan informed Council that the next item would be to officially acknowledge the interest rate which is set in the body of the ordinance. l'he avera, e rate indicated was 6.50460 as show -n in Ex1 i A nd B . iCh are attached to these mi.; ,,.tes fog reference. MOVED by Houchins, SECONDED by Carpenter that the interest rates as herein .st fort:: in Ore. nance too. 1969 be established for Local. Tmprovo -ent Dist -rice 92 -1. Roll -'.all voce, Those voting yes: h1ouchins, Ozuna, Nancolas, Simmons�. ana C: ?rpente� °. Those voting no: none. Absent and not voti�-g: Ray �.ond. MOTION CARRIED (PURCHASE COMTRACT W7TH GEOd ^E K. ?', AND COMPANY FOR PURti:r;ASE OF BONDS FOR LvuLl IMPRO',JEMENT 3; =STRIC" NiO. Mayor Dakan asked for a .,lotion from the City Council apprcva the agreement i4th George K. .Daum and Company for the purchase of the bonds 3:or the ._;.I.D. MOVED by 'ancolas, SECONDED by Carpenter to approve the contract with George K. Bauu and Company for the purchase of bonds For Loral Improvement D_stri.ct No. 92 -v.. Roll cal' vote. Those: voting yes: Nancolas, Simmons, Carpenter, Houchins, and Ozuna. Those voting no: none. and ^t votl_nn: Ra <y'rr,ond. ;MOTION CARRIED (APPROVE DRAFT :^ WITH uR,'aDWEL :,: RIGAT.'O ^? LATEA.;AL DISTRICT AND SET '_.::u PU£:,_ -;C HEARINO) The Mayor r stated that the Boara for the Caldwell Irrigation Lateral .:_strict -:-as not. ._n attendance at this t :me. He 'then asi.�ad the C-.ty Attc:, ney i W , .e had communicated with them since the st RVg..:7_ar Ccuncil Mec- , zing. Mr. Gi c _ ,y, the City Attr_ iz..formed Council ;:hat as :::ar as the status of the agreement with Lateral Dis"ict, he was no'-- convi that they were at a point where a hearing can be set. Mr. Gi dray stared that he spoke with Wean Uranga, the Book 33 Page 214 Attorney for the Lateral District, just before the Council Meeting. He also spoke with her previously where she acknowledged that she would be representing the Lateral District. At that time, she pointed out some of the concerns the new District had, but there was nothing specific. Ms. Uranga informed him that she did fax a letter to her client, but had not received an answer as yet. Mr. Gigray further said that he could inform Council what some of those issues are. First of all, he anticipated that there would be a request from them for an advance of $80,000 rather than the $44,400 and some odd dollars as recommended; they want to have a provision in the Agreement that the audit will be completed by mid November; that they want the ability to have their own auditor review the audit; they would like a provision in the agreement that the City will have a proposal back to them on final distribution and dissolutionment within thirty days of the date of the agreement; Ms. Uranga has some concerns about the use of the Joint Exercise of Power Agreement language in the proposed agreement; to clarify that the agreement is an interim agreement only; they want to have some kind of estimate of what the retainage amount would be and the cost charged against the funds which will ultimately be transferred. Mr. Gigray stated that after receiving information from Ms. Uranga, he would suggest that a meeting be called with the City Staff to determine what the recommendations would be. (ADJOURNMENT) MOVED by Houchins, SECONDED by Nancolas that since there was no further business, the meeting be adjourned at 12:30 p.m. Roll call vote. Those voting yes: Houchins, Ozuna, Nancolas, Simmons, Carpenter. Those voting no: none. Absent and not voting: Raymond. MOTION CARRIED APPROVED AS written THIS 2nd DAY OF November 1992. Councilperson ATTEST: -- City C rk