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02/21/2017 - Work Study - MinutesCity of Port Orchard Council Meeting Minutes Work Study Session Meeting of February 21, 2017 CALL TO ORDER AND ROLL CALL Mayor Robert Putaansuu called the meeting to order at 7:00 p.m. Roll call was taken by the City Clerk as follows: Councilmember Chang Present Councilmember Clauson Present Councilmember Cucciardi Present Councilmember Ashby Present Councilmember Lucarelli Present Councilmember Diener Present Councilmember Donlin Present Mayor Putaansuu Present Staff present: City Clerk Rinearson, Public Works Director Dorsey, Treasurer Martin, Office Assistant II Whisenant, and City Attorney Cates were also present. Pledge of Allegiance Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 1. Presentation: Limited Tax General Obligation Bonds 2017 Tremont Widening Project Treasurer Martin introduced the presenters from D.A. Davidson Capital Markets, Dave Trageser and Alice Ostdiek, who are presenting the topic. Presenter Trageser explained details of what the City is looking at for a bond on the 2017 Tremont Widening Project, reviewing in detail: • Tentative Schedule of Events; • Bond Buyer Rates, stating the difference in lending rates versus ratings; • Sources and uses of funds; • Bond Pricing; and • Debt Service. Minutes of February 21, 2017 Page 2 of 3 Presenter Ostdiek overviewed municipal borrowing and its process, reviewing in detail: • Long term financing; • Tax exempt bonds; • Sources of repayments; • Participants in financing; • Expectations of Bond Counsel; and • Process Overview. Presenters, Mayor, Councilmembers, and staff discussed; bond amount based on bid, Code City versus Second Class City, debt services to be identified, and logical timeframes for all involved. The cash flow requirements were discussed, stating that this project has been factored into the budget within the supplemental portion and where the money would come from. Public Works Director Dorsey explained the cost management and foreshadowing of the project. Councilmembers and Staff discussed cost cuts made to minimize overall project cost. Council Direction: No direction was given. 2. Discussion: Energy Audit Mayor Putaansuu introduced the discussion on the Energy Audit topic and the main factors that need attention at this time, while being cost effective and inclusive to the budget; leaking roof, inefficient windows and siding, HVAC system, weatherization of doors, recirculation system for hot water, additional insulation, adding solar, and led light fixtures. Mayor, Councilmembers, and staff discussed the cash flow, possible grant funding, budget allocations, and the temperature variations throughout the building. Council Direction: No direction was given. 3. Discussion: Code City Mayor introduced the discussion topic with stating that the transition to move forward to a Code City is not as large of an undertaking as originally thought. City Attorney Cates discussed the topic on differences between Code City and Second Class City; Annexation Petitions for Election Method, Initiative and Referendum, and LID Assessment Collection Deferral. Minutes of February 21, 2017 Page 3 of 3 Councilmembers, Mayor, and staff discussed; details of the differences, the efficiencies with the changes, the impacts to current policies and code, voter impacts, timeline for implementation, and the process to become a Code City. Council Direction: Public Hearing is set to be held at the February 23th City Council Meeting; then depending on testimony it may be brought forward for consideration at the March 23th City Council Meeting. 4. Discussion: Fee Resolution Mayor Putaansuu explained that last year's adoption of the Property Tax Abatement Ordinance is requiring a fee and application be created, and those are going to be presented at next week's Council meeting. Public Works Director Dorsey stated that this is a current revision of what is in place, but they will be evaluating the fee schedule and presenting an amendment to the fee schedule in the future. Council Direction: No direction given. ADJOURNM ENT The meeting adjourned at 3:37 p.m. No other action was taken. Audio/Visual was successful. ~. -~---t:::~n, CMC, City Clerk Robert Putaansuu, Mayor