City Council Minutes 2015 04 07 - Laserfiche WebLink

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City Council Meeting Minutes April 7, 2015 Page 3 of 25 PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH - 2nd Reading — Public Hearing Mayor Muckle requested a City Attorney introduction. City Attorney Light introduced Ordinance No. 1683, Series 2015. Mayor Muckle opened the public hearing and requested a staff presentation. Public Works Director Kowar explained Ordinance No. 1683, Series 2015 authorizes a loan agreement between the City of Louisville and the Colorado Water Resources & Power Development Authority (CWRPDA). This loan will provide funds for the City's Wastewater Treatment Plant Upgrade Project and the Storm Sewer Outfall Improvements Project. CWRPDA will issue federally- subsidized bonds to provide financing for the loan agreement. The final sale and pricing of the bonds, as well as the bids on the two projects, will determine the final structure of the loan. The bond closing is scheduled for the middle /end of May. The bid openings for the Wastewater Treatment Plant Upgrade Project and the Storm Sewer Ouffall Improvements Project are April 22, 2015 and May 20, 2015, respectively. The proposed ordinance authorizes the City Manager and Finance Director to make final determination regarding the interest rate on the loan, the amount of the loan, and the term of the loan, subject to the following parameters: • The interest rate on the loan shall not exceed 3.25%, • The principal amount of the loan shall not exceed $43 million, and • The final maturity of the loan shall not be later than December 1, 2037. The loan will be repaid solely from the revenues of the Combined Utility Fund: In addition to operation, maintenance, and replacement, the Combined Utility Fund will be required to generate enough revenue to satisfy the current water utility debt service and to equal 110% coverage of the wastewater utility and storm water utility debt service on the CWRPDA loan. Wastewater Treatment Plant Project Description: Of the maximum loan amount of $43 million, approximately.$36 million would be applied to this project. Storm Sewer Outfall Improvements Project Description: Of the maximum loan amount of $43 million, approximately $7 million would be applied to this project, The complete transaction including the $5 million use of reserves will be addressed in the May 5, 2015 budget amendment. Staff recommendation: Staff recommended the City Council conduct a public hearing and adopt Ordinance No. 1683, Series 2015 on second and final reading.