HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/17/2007 - CONSIDERATION AND APPROVAL OF MINUTES FROM THE JUN ITEM NUMBER: 3
AGENDA ITEM SUMMARY DATE: July 17, 2007
STORMWATER UTILITY ENTERPRISE STAFF: Wanda Krajicek
SUBJECT
Consideration and Approval of the Minutes of the June 19, 2007 Meeting.
June 19, 2007
STORMWATER UTILITY ENTERPRISE BOARD
A meeting of the StormwaterUtility Enterprise Board was held on Tuesday, June 19,2007 at 10:50
p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the
following Boardmembers: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell.
Staff Members Present: Atteberry, Krajicek, Roy.
Ordinance No. 008,
Authorizing the Issuance of City of Fort Collins, Colorado,
Stormwater Utility Enterprise, Storm Drainage Revenue Refunding Bonds,
Series 2007, in the Maximum Aggregate Principal Amount of$21,820,000, in the
Stormwater Utility Fund.
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
In 1997, the City issued$9,465,000 of Storm Drainage Revenue Refunding and Improvement Bonds
(the "Bonds'), and in 1999, the City issued$19,980,000 of Storm Drainage Revenue Bonds (the
"Bonds'). The Bonds provide for a special call(early payment) of the Bonds in 2007. The 1997
Bonds to be refunded carry interest rates that range from 4.7%to 5.2501o, and the 1999 Bonds to be
refunded carry interest rates that range from 4.75% to 5.25%. Interest rates are currently at
relatively low historic rates. The proposed refunding, at current market rates, will be below 4.25%;
however, the final rate will be a function of the market and is subject to change. Over the remaining
term of the bonds, and at the current market rate, the savings is estimated to be approximately
$820,000 in present value terms. This estimate is subject to final interest rates. The savings will
accrue to the Stormwater Utility Fund through lower debt service payments from 2007 through
2019.
EXECUTIVE SUMMARY
The City of Fort Collins and its Stormwater Utility Enterprise have issued bonds to fund needed
capital improvements that provide a storm drainage service to property owners within the city. In
1997 and 1999, the City issued$9,465,000 and$19,980,000, respectively, to provide funding for
capital improvements in various stormwater basins within the city. According to the provisions of
the bonds, all or a portion of the 1997 bonds are eligible to be refinanced, and a portion of the 1999
bonds are eligible to be refinanced. The city will be paying off higher cost bonds with new bonds
that will have much lower interest rates. The refunding Bonds in this Ordinance will likely carry
interest rates under 4.2591o, but the final rates will be a function of the market and are subject to
change. "
City Manager Atteberry stated the bonds are a refinance that will save the Stormwater Utility
approximately$750,000. The terms are not being extended for this refinancing;it will still be within
the original time frame.
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June 19, 2007
Councilmember Ohlson made a motion, seconded by Councilmember Manvel,to adopt Ordinance
No. 008 on First Reading.
Councilmember Ohlson expressed his desire for the Stormwater Utility to examine rainfall standards.
He believed the current rainfall standards were an overreaction to the flood of 1997 and it appeared
the current standards had led to the highest stormwater fees for individuals and businesses in the
country. Spending those fees had led to projects that were overengineered and overbuilt, too
expensive and were environmentally destructive. A previous Council increased the standards. For
example, when completed, the Red Fox Meadow Project, which is part of a $20 million project,
because of the rainfall standards, on both sides of Taft Hill Road at Prospect will look like a
moonscape. Ten thousand loads of dirt will be removed from the area, stripping it to make large,
dry basin detention areas. This project is proceeding because of the current rainfall standards. He
wanted to examine the policy of the rainfall standards before beginning the project which would turn
a natural area and stormwater area into a moonscape. The rainfall standards have impacts on
development and the environment. He did not believe the Red Fox Meadow Project needed to
proceed as it was overkill and unnecessary.
City Manager Atteberry stated reassessing the rainfall standards is a two-year process, including
much consulting work and getting FEMA approval and will require much information gathering.
At Councilmember Ohlson's request, he will bring the $20 million Red Fox Meadow Project to
Council for its approval. It is a very important flood control project and when the project is
completed, the area will be an improved natural area.
Councilmember Brown asked if the project would be a barren landscape when completed.
Councilmember Ohlson stated the project would clear the area of current vegetation and is an
unnecessary project that is based on the current rainfall standards.
The vote on the motion was as follows: Yeas: Brown,Hutchinson, Manvel, Ohlson, Poppaw,Roy
and Troxell. Nays: None.
THE MOTION CARRIED.
Adjournment
The meeting adjourned at 11:05 p.m.
Mayor, Ex Officio President
ATTEST:
City Clerk, Ex Officio Secretary
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