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City Council Meeting Minutes June 6, 2006 Page 5 of 16 ORDINANCE No. 1493, SERIES 2006 - AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF THE CITY OF LOUISVILLE, REVENUE BOND (DENTAL AID, INC. PROJECT) SERIES 2006, IN A TOTAL PRINCIPAL AMOUNT NOT TO EXCEED $850,000; MAKING DETERMINATIONS AS TO SUFFICIENCY OF REVENUES AND AS TO OTHER MATTERS RELATED TO THE PROJECT AND APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS RELATING THERETO - 2nd reading - public hearing (advertised Daily Camera 5/24/06) Mayor Sisk disclosed he is a member of the Board of Directors for Wells Fargo Bank. He recused himself from the discussion and vote on the ordinance and left the Council chambers. Mayor Pro Tem Brown requested a City Attorney introduction. City Attorney Light read Ordinance No. 1492, Series 2006. Mayor Pro Tem Brown requested a Staff introduction. Finance Director Patty Leslie reported Dental Aid of Louisville, has requested the City act as a conduit for tax-exempt revenue bonds issued by Wells Fargo Bank. Development Revenue Bonds are eligible tax-exempt financing mechanism under federal and state law, and were established under Colorado law by the County and Municipality Development Bond Act. This act enables cities to encourage the location, relocation, or expansion of manufacturing, industrial, or commercial enterprises within the corporate limits of the city. The Federal law allows for each municipality to act as a conduit passing along municipality's tax- exempt status for an amount up to $10,000,000 annually. Currently, the City of Louisville has no outstanding issues that fall within this act. Dental Aid, Inc. was founded in Boulder in 1974 as a referral organization and provides services to low income individuals. The Louisville clinic is a pediatric clinic and was opened in February 2002. Dental Aid is requesting a $645,000 bank qualified tax-exempt loan to provide funds to acquire their Louisville building and add a 1,000 square foot exam room. The City will incur some legal costs for the review of loan documents and publications, by the City Attorney and the City's bond counsel, Sherman & Howard, but will be reimbursed by Dental Aid and applied to loan issuance cost during the financing process. The City assumes no risk as Wells Fargo Bank takes on the credit risk and has obtained the 1 st deed of trust on properties of Dental Aid. The City does not record any liability on its balance sheet. However, there must be a footnote in the Comprehensive Annual Report referring to the bonds in future years. This transaction falls under the federal UTa x Equity and Fiscal Responsibility Act (UTEFRA U) of 1982, which requires a public hearing.