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HomeMy WebLinkAbout03112015 City Council Special Meeting Minutes • City of Seward, Alaska City Council Special Meeting Minutes March 11, 2015 Volume 39, Page 485 CALL TO ORDER The March 11,2015 special meeting of the Seward City Council was called to order at 5:30 p.m. by Mayor Jean Bardarson OPENING CEREMONY Assistant City Manager Ron Long led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Christy Terry Marianna Keil David Squires Dale Butts Iris Darling comprising a quorum of the Council; and Ron Long, Assistant City Manager Brenda Ballou, Deputy City Clerk Absent—Ristine Casagranda CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING—None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approve Agenda and Consent Agenda Motion Passed Unanimous There were no consent agenda items. NEW BUSINESS Resolution 2015-017,Providing For The Issuance Of Electric Revenue Refunding Bond Of The City In The Aggregate Principal Amount Of Not To Exceed $6,200,000 Refunding Certain Outstanding Electric Revenue Bonds Of The City; Fixing Certain Details Of Said Bonds And Providing For Related Matters. Motion (Terry/Darling) Approve Resolution 2015-017 Assistant City Manager Ron Long said there was a laydown before council tonight that corrected some language in the resolution. City of Seward, Alaska City Council Special Meeting Minutes March 11, 2015 Volume 39, Page 486 Finance Director Kris Erchinger said she usually kept an eye on bonds for opportunities to refinance them. This particular bond was done in 2008, and would not normally have come up so soon,but given low interest rates,the timing was good and the bond bank was favorable.Although she could not provide a specific prediction on what Net Present Value(NPV)savings this refinance would yield until the very moment of resigning, she said she wanted to be in a position of capitalizing on obtaining NPV savings if they were substantial enough. She approximated the potential savings at$394,000 which represented an 8.1%savings over the life of the bond.The bond would mature in October 2038 rather than June 2038. This refinance would reduce the annual debt service payments in the amount of approximately$30,000 per year for the Electric Fund. In response to Darling, Erchinger said one could only refinance any given bond one time in its lifetime,'and that was an additional consideration she was mindful of.Long added that the federal government was planning to raise interest rates in June this year, so this was a good time to refinance. In response to Butts, Erchinger said she would consult with the city's contracted financial advisor, as well as the bond attorney, to determine whether or not to actually refinance at the moment.However,she speculated that they would recommend refinancing if there was a minimum of a 4% savings. Motion to Amend (Terry/Keil) Amend Resolution 2015-017 by adopting the laydown version. Motion to Amend Passed Unanimous Main Motion Passed Unanimous Resolution 2015-018, Providing For The Issuance Of Long Term Care Facility Revenue Refunding Bond Of The City In The Principal Amount Of Not To Exceed $25,900,000 To Refund Certain Outstanding Long Term Care Facility Revenue Bonds Of The City; Fixing Certain Details Of Such Bonds And Authorizing And Providing For Related Matters. Motion (Keil/Terry) Approve Resolution 2015-018 Long said the same logic and reasoning applied for refinancing this bond. Motion Passed Unanimous COUNCIL COMMENTS Darling thanked Kris Erchinger for putting this packet together. Long wanted to follow up on questions from Monday night's council meeting and reported that the following positions were being recruited for: Parking Supervisor, Parks Operations Supervisor, and Executive Liaison. The Corrections Officer position was on hold pending the outcome of the state's contract.He added that last Sunday's power outage resulted in the city being on generation power for three hours. City of Seward,Alaska City Council Special Meeting Minutes March 11, 2015 Volume 39, Page 487 CITIZEN COMMENTS—None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS—None ADJOURNMENT The meeting was adjourned at 5:50 p.m. V,&' B ens a Ballou, C can Bardarson Deputy City Clerk Mayor (City Seal) e Cq e� 5::.;e ,• CK o L'°'x"'-ri c st •�., 6n u c Fp e �:i "•,..4.-1:9, a aC •'h„•° na=.a r". o c.� to ^°� •''';:4;S:- ,,