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HomeMy WebLinkAboutMINUTES-07/29/1997-Adjourned' July 29, 1997 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, July 29, 1997, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Staff Members Present: Fischbach, Roy, Krajicek. Councilmember Smith made a motion, seconded by Councilmember Wanner, to change tonight's meeting location from the Senior Citizen Center to City Hall West. Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Ordinance No. 123, 1997 An Ordinance Amending Ordinance No. 74, 1992 ]The Bond Ordinance for the 1992 Stormwater Bonds]. Adopted on First Reading, The following is staff's memorandum on this item. "Executive Summaux The amendments to Ordinance 74, 1992, facilitate the refunding of the 1992 bonds and the substitution of a surety (insurance policy) for the reserve fund for the bonds. In effect, this allows the Storm Water Utility to release monies held in the reserve fund to he used to pay for prior bonds or for capital projects and other expenses of the utility. In 1992, the City of Fort Collins issaed $4,335, 000 of bonds for the Storm Water Utility. The bond ordinance provided that the City would maintain a reserve fund for the bonds or acquire a surety to provide reserves for the bonds. The bond ordinance also authorized changes in the fiture to maintain the investors security in the bonds. With the 1997 Storm Water Utility Refunding and Improvement Bonds, the Cityfinds it beneficial to substitute an surety from AMBAC insurance company to serve as the reserve fund Therefore, this Ordinance No. 123, 1997, makes the requisite changes to the 1992 Bond Ordinance. 32 July 29, 1997 BACKGROUND: Section SE of Ordinance No. 74, 1992, allows the City to substitute a surety or a letter of credit for the cash deposit reserve held far the 1992 Storm Water Revenue Bonds. By doing so, the City will be able to use the cash now held in the reserve to pay off prior bonds issued by the City. The net effect of this action is that the City will have monies to do capital projects for the Storm Water Utility. Ordinance No. 123, 1997, amends several sections of the prior ordinance: Section]. Definitions. Staff is inserting definitions for AMBAC, the provider of the surety policy. A definition of the Stormwater Utility Enterprise is provided. A defrriitionz of Giiarannty Agreement and Guaranty Obligations is provided. The SuretyBond and the Surety Bond Commitment are also added to the definitions. Section 3. The Bonds. This section is amended to incorporate the appropriate references to AMBAC. Section S. The reference to the Guaranty Obligations has been inserted. Section SE Debt Service Reserve Account. Bond counsel has added an extension to the language to describe how the surety bond works and the responsibilities of the Paying Agent Section SR The section is revised to note that the Stormwater Utility is an Enterprise. Section SG. This is a minor revision because it depends on revisions in other sections. Section 7. This section explains the priority of liens and payments. Section 7B(2). This change describes how the surety fits into the calculation of the additional parity bonds test. Section 8. Covenants. The City shall provide any necessary financial information to AMBAC on a time basis. Section 9. Defeasance. The Guaranty Obligations have been added to the wording regarding defeasance of the bonds. Section JOB and H. These have been revised to include AMBAC into the remedies for defaults and adds some wording regarding AMBAC's rights. Section]]. Amendment of Ordinance. Should the ordinance need to be amended in the future, . AMBAC will need to be notified and approve such changes. 33 July 29, 1997 Section 12. Miscellaneous. The changes conform the ordinance to the neiv definitions and add AMBAC's address for future notices. While these amendments constitute many changes to the original ordinance, they are primarily reflective of changes in definitions and the addition of AMBAC into the transaction. " Councilmember Wanner made a motion, seconded by Councilmember Byrne, to adopt Ordinance No. 123, 1997 on First Reading. Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. City Manager John Fischbach gave a staff report on the flood efforts, reporting on the location of shelters and the number of missing people as well as the number of reported fatalities. He stated the City and County have signed emergency proclamations and reported on meetings held with the Governor and Lieutenant Governor and of visits made to the locations that were hardest hit by the flood. Mayor Azari thanked Council, staff and the citizens for their efforts in helping flood victims. Councilmember Smith made a motion, seconded by Councilmember Kneeland, to adopt am Emergency Regulation with regard to the entry of premises and the recovery and disposition of items of personal property damaged or lost in the Spring Creek Flood of July 28-29, 1997. City Attorney Steve Roy explained provisions for emergency regulations and stated due to the situation a regulation was prepared to address the entry of evacuated premises and procedures for recovering and disposing of personal property items that may have been damaged or lost in the flood. He read the Emergency Regulation into the record and clarified there would be no costs to the victims for removal of vehicles, property, etc. The vote on Councilmember Smith's motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. 34 The meeting adjourned at 6:45 p.m. ATTEST: City Clerk Adjournment C-Ma'yor 35 Judy 29, 1997 0