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)
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