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HomeMy WebLinkAbout1974-03-08 Council Minutes - Special MeetingA G Ii N D A SPECIAL MEETING, KENAI CITY COUNCIL MARCH 8, 1974, 12:00 NOON CITY MANAGER's OFFICE I A: ROLL CALL PAGE G: NEW BUSINESS 1. Bond Refunding 1-2 2. Letter from City Attorney 3 3. Budget $ Audit Committee 3 MINUTES KENAI CITY COUNCIL SPECIAL MEETING 0ii4A MARCH II, 1974 12: 00 NOON CITY MANAGER'S OFFICE ROLL CALL: Members present - A. L. Hudson, C. E. Johnson, H. J. Steiner, Tru McGrady and Mayor Steinbeck. Also present - Carl Hille, Art Evans 6 Dan Whelan of the Mayor's Committee on Audit, Budget 6 Finance Committee; Harold Carlson, Citizen: George Navarre, City Manager and David Chen, Finance Director. Members absent - James Doyle 6 Robert Norene, Councilmen and Dick Stetler, Audit, Budget 6 Finance Committee. BOND REFUNDING Mayor Steinbeck called the meeting to order to evaluate comments from the Audit & Budget Committee to let the Seattle First National Bank have the final decision on the bond refunding prior to the closing of the work day today. The City Manager requested input from the Audit E Budget Committee. f-I Carl Hille stated the advanced refunding is a valid technique that is going to save the taxpayers a bunch of bucks and definitely should be pursued. Mr. Navarre stated the question has been brought up about certain moralities and certain legalities. He asked Mr. Hille if he feels the bond counsel will adequately protect the City In their opinions and their ordinance? Mr. Hille stated this is not the problem, as he was told. The problem is a Charter provision that may make It impossible, for no matter who, to perform. Even if you award the proposal, they will turn it down if there is a problem. Mr. Navarre stated we are using our bond counsel that worked on all our bonding, and we are relying on their opinion to protect us. He further stated that in his review of the proposal we are accepting are not necessarily the best dollar savings now. We are taking into consideratilon the City's need, the recall feature, which dollar amounts can not be set to. The Borough is a little different than ours in that they can took at it as a dollar saved now. Mr. Chen stated we have taken several precautions. The City has their own special attorney, the bond counsel that worked on all our bonding. Not their counsel. Every proposal is based on the assumption that they can buy Federal Securities. The Charter says the City's money can be invested into Treasury Bills and other general obligated securities of the United States. All recom- mendations are subject to the bond counsel's opinion. MINUTES, SPECIAL KENAI CITY COUNCIL MEETING,, MARCH 8, 1974 Page two Councilman Hudson asked If this report will be submitted to Council before April 1st. Mr. Chen stated the bond counsel Is going to prepare the ordinance and you will have time to review it. Mayor Steinbeck asked Mr. Whelan if he had any comments. Mr. Whelan stated he had no feelings one way or the other on bond refunding. He stated he was Instrumental In refunding a State agency a few years ago and it worked out fine and using the same bond counsel you are using. The only comment he had was on the timing of the emergency ordinance. Mr. Navarre stated he is not in favor of an emergency ordinance but emergency ordinances are designed for certain purposes. Where we have a regular ord- inance, we have a thirty day waiting period before that ordinance is in affect. In this case we are not taking adverse affect on the public. If we were doing something that would charge the publ is $228, 000, 1 would be opposed to an emergency ordinance, but this is a direct benefit to the public. 04 Mr. Whelan stated he felt the concept should have been approached first. Mr. Chen stated it was on the last monthly report and he verbally reported it to Council at the last meeting and at a work session. Mr. Navarre stated we bring these things to Council after we have done the research. After we educate ourselves, we bring it to Council to educate them. This is what we 04 are hired for. Councilman Hudson felt a major operation such as this should come from the result of some policy Council has set. We had the words it was going to happen and nothing else until we arrived at the meeting. That is his only objection to the whole thing. Mr. Chen stated he can appreciate that point. We don't like to make snap decisions either. However, the City has a unique situation because we have all kinds of problems including financial problems. We are caught in a surprise too. One of the letters states this is an immediate proposal, either you reject it Immediately or accept it immediately. We were running against time. Councilman McGrady stated he would like to hear from Art Evans. Mr. Evans stated some of his comments were construed to be highly critical against the ability of Dave to get together such a package. It was certainly not his Intent. The only thing that concerns him is the suddeness of this. The Borough is making similar arrangements and are working for a May 1st target date. It was presented to the Assembly so that everybody Is properly Informed. After further discussion, Steiner moved and Johnson seconded we go ahead and accept the bond proposal as submitted last Wednesday night with Seattle First National Bank. The motion carried unanimously by roll call vote. Voting yes; Hudson, Johnson, Steiner, McGrady and Steinbeck. MINUTES, SPECIAL KENAI CITY COUNCIL MEETING, MARCH 8, 1974 Page three LETTER FROM CITY ATTORNEY The Council received a letter from the City Attorney Indicating he would not)le- taking the case of Kenai Property Owners Association vs the City of Kenai. Mr. Navarre asked for direction as we have to answer this complaint within 20 days or lose by default. After some discussion Council directed the City Manager to get Mr. Fisher on the phone. After speaking with Mr. Fisher he stated he would reconsider and let Council know if he would take the preliminary steps. There were no objections from Council that if Mr. Fisher comes back with a negative answer, to retain another lawyer to get started on the case. BUDGET S AUDIT COMMITTEE Mayor Steinbeck stated, for your Information, Mr. Evans handed in his resignation from the Mayor's Committee on Budget S Audit and that Mr. Stetler and Mr. Whelan indicated they would be resigning. This will be something to think about and take up at the next Council Meeting. MEETING ADJOURNED Respectfully submitted, `lSharon Loosli, City Clerk t�