HomeMy WebLinkAbout01182016 City Council Special Meeting Minutes City of Seward,Alaska City Council Special Meeting Minutes
January 18, 2016 Volume 40,Page 6
CALL TO ORDER
The January 18,2016 special meeting of the Seward City Council was called to order at 5:30
p.m. by Mayor Jean Bardarson.
OPENING CEREMONY
City Manager Jim Hunt led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Jean Bardarson presiding and
Marianna Keil Dale Butts
Sue McClure Deborah Altermatt
comprising a quorum of the Council; and
Jim Hunt, City Manager
Brenda Ballou, Deputy City Clerk
Absent—David Squires, Ristine Casagranda
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING—None
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Altermatt) Approval of Agenda and Consent Agenda
Motion Passed Unanimous
There were no consent agenda items.
Special Orders, Presentations And Reports—None
NEW BUSINESS
Resolution 2016-002, Confirming That The City's Moral Obligation Set Forth In The City's
Resolution No.2007-050 Extends To Long Term Care Facility Revenue Refunding Bonds,And
Bonds Issued On Party Therewith.
Motion (Keil/McClure) Approve Resolution 2016-002
Finance Director Kris Erchinger said this resolution was being brought forward on the °
recommendation of the city's bond attorney. This was the third attempt by Erchinger to refinance
City of Seward,Alaska City Council Special Meeting Minutes
January 18, 2016 Volume 40,Page 7
("refund") these bonds in the past 18 months, and the market was currently looking favorable to
carry it through this time.The extra savings of this refinancing could amount to approximately$1.3
million over the life of the bond. In preparation, Erchinger had reached out to the city's financial
advisor, Don Grimes, to confirm that this was an appropriate action to take, and Grimes had
supported it. Erchinger stated this was a moral obligation and not a legal requirement.
In response to Bardarson,Erchinger said this refunding would not shorten the 17 years that
currently remained on the life of this bond,but it would reduce the annual payment by approximately
$300,000 each year, and that it where the cumulative savings would come from.
In response to Altermatt,Erchinger explained that there were two scenarios available:refund
the bonds if market conditions yielded a minimum of 4%savings at the time of refunding,or refund
the bonds if market conditions yielded a minimum of 4%savings at the time of refunding and pay
down the bond at the same time by$3.5 million in order to obtain an additional$1.3 million over the
remaining life of the bond.
In response to Butts,Erchinger said the bond reserves goal was currently at$6 million;there
was a requirement that the city maintains $2 million in reserves, and the additional $4 million was
extra.At the end of the bond's life,the city would be required to have approximately$6 million on
hand in order to meet the final payment obligation.
Motion Passed Unanimous
Resolution 2016-003,Authorizing The Defeasance Of$3.5 Million Of 2008 Long-Term Care
Facility Revenue Bonds In Conjunction With The Upcoming Refunding Authorized In The
City's Resolution No. 2007-050,And Appropriating Funds.
Motion (Kei/McClure) Approve Resolution 2016-003
Motion Passed Unanimous
COUNCIL COMMENTS
Bardarson shared information she received about an upcoming council member training in
case anyone was interested; council agreed that the training they received at AML was sufficient.
Bardarson also brought council's attention to a communication the mayor had received from the
office of the governor asking for council's support for the governor's proposed budget. Bardarson
admonished council to be diligent about checking their emails and responding to them, as
appropriate.
CITIZEN COMMENTS—None
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS—None
City of Seward,Alaska City Council Special Meeting Minutes
January 18, 2016 Volume 40,Page 8
ADJOURNMENT
The meeting was adjourned at 6:01 p.m.
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