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Home My WebLink About1966-03-26 Council Minutes - Special MeetingAGEUDA SPEs��rMEyETIMaralFi 2� CITY COUNCIL v �-- ' / fill ?VA 2 A'�zl I-P&C4- "o AOL�1/4'lt is Canvass the results of the election of March 25th," 2. Reconsider the eotifn taken by the City Council at the specsei. meeting of Wednesday. March 231 1966, for the interim financing of the Airport Terminal Building QongtftatiojS„ ftact n98600SPY resolution to reaward the Contract for the a auction of the Terminal Building and sUmitanesus charge orders 40 fsP ..••i5'C•. � f': ':3iS :`,' •� • ' t -- •3P .::t'': .. �"•?�tix°.�•�'"` . e ( i I i i I 25 March, 1966 KENAI CITY COUNCTL MTILUTI;S - (special meeting to canvass ballots) Roll calls Members present - Billy McCann, Roger Meeks, none Morin, Mayor James G. Dye. Chester Cone came in after roll call, but was present in time to vote on first motion. Bud Lofstedt arrived after action on first motion. Members absent - Carl Seaman who requested leave of absence at the last meeting for medical attention Outside. Also present, City Manager J. 11. Harisun. As required by the City Code, the City Clerk delivered to the Council the Election Judges' certificate of election returns, Registration Cards, Ballots and four absentee ballots. The Mayor opened absentee ballots and called out four affirmative votes for the proposition. fie also inquired if there were any protests of election procedures. None had been received by the Clerk, and none were registered from the floor. Morin moved, seconded by Meeks, there being no protests of elec- tion procedures, either oral or written, that the canvassing of the ballots of the election of 25 March, 1966, be recorded as 108 votes for the Proposition and 1 (one) vote against the proposition relating to terminal airport facilities. Motion carried unanimously. Item #2; In view of subsequent analysis on proposals from Alaska State Bank and from National Bank of Alaska relating to interim financing for construction of the terminal building, Morin moved, Meeks seconded, to rescind the action relating to awarding bid to NBA on interim financing on Terminal Building Construction. A lengthy discussion followed with R. Halloran representing NBA, and Troy Rice and Jim Milder representing ASB. Halloran had re -computed his offer, reducing the effective inter- est rate from 1.85° to 1.34% bydecreasing the length of time from 153 to 138 days. Underrschedule submitted by NBA in Anchorage, at the request of the City Manager, interest ultimately paid to NBA amounted to $39546.62. Under Halloran's new computation, the cost would be $2,778.59. According to the City's Clerk's computation, interest paid to ASB would be $2,713.36; said computation based on the proposal which is on "as -needed" basis. Both banks were given identical requests for proposals, and the same schedule of payments as submitted by Architect Bunnell. Harrison said he doubted HUD would approve Council's action as ASB proposal was the least costly to the City. He said he had not figured closely enough when he recommended Council accept NBA figures. Council agreed they should have received the proposals and set up a mMting later for awarding the interim financing agreements � In this instance, the contractorraasalready granted a 30 days extension beford awarding the contract, and is in no mood to grant a further extension. Harrison said it had been his experience that City Councils a' - great percentage of the time moved for reconsideration after letting a contract. Mayor Dye regretted the haste, and wished the contract could be split between the two Banks. But, this would mean, new proposals and time does not allow for this. Alaska State Bank submitted a cost, based on their original pro- posal, of $2,506.98, which is lower than that figured by the Clerk, and is an effective interest rate of 1.4%. Rice pointed out no one knows for sure the rate of interest tube City Council Minutes 25 Mar 66 F. 2 had from investment of Truasury Bills. Right now, the market is a poor one, and interest rates are decreasing every day --on the other hand, they could go up. Thus, the discussion continued. Harrison po;.nted out, all. Coun- cil could consider was the two proposals as made under sealed bids. Further computations and elaborations could not legally be considered a part of the bid. Rice affirmed the bids should be accepted on the basis of what the bids were. The question was called for, and roll call vote was: Affirmative - Cone, Lofstedt, Meeks, Morin; Negative - McCann. Morin moved, Meeks seconded, the Alaska State Bank proposal for interim financing for Terminal Building construction be accepted. More discus- sion resulted, followed by roll call vote: Affirmative - Cone, Lofsted• Meeks, Morin; Negative - McCann. The Mayor thanked both Banks for their cooperation and expressed appreciation for their working with the City. Motion by Meeks, seconded by Morin, that the Council finds that the special meeting of 26 March, 1966, is justified to permit emergency . passage of a resolution relating to the proposed aipport terminal faci- lity for the Kenai Municipal Airport and the said meeting is required in the public interest so that action can be taken prior, to the next regular meeting scheduled for 6 April, 1966. Motion carried unanimousi Harrison presented Res. 066-14 and explained the need for same. HUD objected to the Citv's negotiating contractor's bid before acceptance, and suggested the low bid be accepted, and then change orders issued. Morin moved, Cone seconded, to adopt Res. 66-14 Making Award of the Kenai Terminal Building Construction to J. B. Warrack Co., Inc. Motion passed unanimously. Council entered into a discussion with Rice and Wilder (Halloran had absented himself from the meeting at the conclusion of the action on interim financing) relating to businesses coming to Kenai, and the ` availability of facilities to accomodate these business with the re- lated problem of housing. The Clerk retired to prepare documents for submission to Bond Counsel Thorgrimson for th& next morning's mail. E Discussion on housing, land -use, etc. being terminated, Morin moved, �r McCann seconded, to approve change Order No. 1 of the Terminal Bldg. contract. Motion was approved unanimously. Lofstedt was not present to vote on this motion. Meeting adjourned at 10:00 p.m. Respectfully submitted, Frances Torkilsen City Clerk +� This change order actually reduced thecost of the contract from $454,100,00 to $4099350J.00. Q,,�,aIL✓v moved, seconded by �, there being protests o e action procedures, ei. ier oral or written, that the canvassing of the ballots of the election of 25 March, 1966 be recorded as�votes for the Proposition and i votes again a proposition relating to terminal airport facilities. CONE L9l8 McCANN NEEKS Nei , , , A" . Sii #MCI DYE MDRIN 26 NAffl i 1966 Motion by � � seconded by , that the ounc s �a io special meeting bf .6zr , 19660 is justified to permit emergency passage of a resolu- tion relating to the proposed airport terminal facility for the Kenai Municipal Airport and the said meeting is requires;.,., in the public interest so that action can be taken prior to the next regular meeting schoduled for 6 April, 1966. C4,�IE b'k'CAiYN LOKS`Mff MESEKS 26 MMII 1966 DYE A1006 .1 04• ��, � � :.�:_•., rya�� -rye � ,i � � . 4n OI r INTRA-CEPAR7MENTAL 10JORRESPCNIMIENCE' sunurar. Analysis of Bank proposals for interim financing; for cATa: 24 March, 1966 Kenai Terminal Building: Alaska State Bank and National Bank of Alaska, both in Kenai, Alaska �� aeFcuea�ca� FAlM, City Clerk -Treasurer, Frances Torkilsen ATTBNTIOH OR City Manager and Kenai City Council r'1 Following is an analysis of the proposals as presented to thk: Council from above - named Banks as per attached letters: Schedule I - Alaska State Bank•® 3 3/4% on as -needed basis. Schedule for payments as submitted by Architect Arthur Bunnell: Interest payment End of April, borrow $100000 for 123 days ($1.04 per day $ 127.92 IIIIII MYof $1000000 �� 92. �� ($10242 �� It ! 958.64 Julie $200,000 �� 62 �� $20.85 �� 1,391.46 It July $70,000 31 7.29 '1) ) 225.99 August It$ 70, 000 " 15. 109 3S Total Interest paid to ASB $2,713.36. Scbe&de lI - National Bank of Alaska, $450,000 0 4% for 153 days, with investment of seewities, 'making as effective borrowing rate of 1.861". No one knows for certain the return on inves--nts but as 1 I►�a Dorn- r putation is a accurate as possible for an estimate, the loan o $450� ' 'it.1.�5I or 153 days $23013 per day) fasts the City $ 53 .89. Sumoatio l I terest paid to We -no $30S38.89 3 Less ASB ; 2, 713.36 13'D Additional coot to City, N8A proposal is$ SUM r 4 t . i c H I NATIONAL BANK OF ALASKA PROPOSED LOAN AND REINVESTMENT PROGRAM — $450,000 - Loan _ CITY OF KENAI - AIRPORT Estimated Unit Maturity Return Date Funds Amount of Funds Par Amount Market Rate L%tcha.se Purchase or on Required Required U.S. Treasury Bills Maturity Rate - 3 /22/66 Cost Price Sale Price Investment 4/15/66 $ 10, 000.00 , 5/15/66 100, 000. 00 $100, 000. 00 5/12/66 4.40 99. 670000 $ 99, 670. 00 $100, 000.00 $ 330.00 6/15/66 200,000.00 200,000.00 6/16/66 4.45 99.233611 198,467.22 200.000.00 1,532.78 7/15/66 46, 800. 00 47, 000. 00 7/14/66 4.50 98. 875000 46,471. 25 47, 000. 00 528.75 8/15/66 46, 800. 00 48, 000.00 8/11/66 4.60 98.492222 47, 276. 27 48, 000.00 723.73 9/15/66 46, 800.00 50, 000.00 9/15/66 4.65 98.023750 49, 011. 88 50, 000.00 988.12 $441, 200. 00 $440, 896. 62 $445. 000. 00 $4,103. 38 Bank Loan: $450, 000.00 4/15/66 to 9/15/66 Interim Loan Interest 7 months at 4% $ 7,650.00 Less: Estimated Income from the Above Schedule 4,103.38 Estimated Interest Cost Net 3.546.62 Net Effective Role 1.85