HomeMy WebLinkAbout2018CV149 - SUTHERLAND V. CITY OF FORT COLLINS, STEVE MILLER & IRENE JOSEY - 088N - EXHIBIT NELECTRIC UTILITY ENTERPRISE BOARD
March 20, 2018
7:27 PM
• CALL MEETING TO ORDER
PRESENT: Overbeck, Cunniff, Horak, Martinez, Stephens, Summers
ABSENT: Troxell
Staff Present: Atteberry, Daggett, Coldiron
1. Consideration and Approval of the Minutes of the January 2 and January 16. 2018 Electric Utility
Enterprise Board Meetings. (Adopted)
The purpose of this item is to approve the minutes from the January 2 and January 16, 2018, Electric Utility
Enterprise Board meetings.
Boardmember Cunniff made a motion, seconded by Boardmember Overbeck, to approve the
mi nut es of the January 2 and January 16, 2018 meetings.
RESULT:
MOVER:
SECONDER:
AYES:
ABSENT:
ADOPTED [UNANIMOUS]
Ross Cunniff, District 5
Bob Overbeck, District 1
Overbeck, Cunniff, Horak, Martinez, Stephens, Summers
Troxell
2. Items Relating to Electric Utility Enterprise Revenue Bonds, Series 2018. (Adopted on First
Reading)
A. First Reading of Ordinance No. 003, Authorizing the Issuance and Sale of Its Tax-Exempt Revenue
Bonds, Series 2018A, and Its Taxable Revenue Bonds, Series 20188, Providing for the Sources
of Payment of the Bonds and Providing Other Details Concerning the Bonds and the Enterprise's
System.
8. First Reading of Ordinance No. 004, Authorizing the Defeasance of the Enterprises Taxable
Revenue Bonds (Direct Pay Qualified Energy Conservation Bonds), Series 20108.
The purpose of this item is to consider two ordinances related to the Electric Utility Enterprise's issuance
of revenue bonds for the City's proposed Broadband System. Ordinance No. 003, authorizes the financing
and construction of a Municipal Broadband System to provide telecommunication facilities and services,
including the transmission of voice, data, graphics, and/or video to customers within Fort Collins. This
agenda item is consistent with Strategic Objective 3.9 from the 2016 Strategic Plan: Encourage the
development of reliable, high speed internet services throughout the community.
Ordinance No. 004, authorizes the defeasance of the Electric Utility Enterprise's 20188 outstanding bonds,
for which remaining payments total $5,270,000 principal and $513,328 interest through maturity in 2020.
This defeasance is necessary to eliminate certain restrictive covenants in the 20108 bonds that would
otherwise affect the Enterprise's ability to issue the 2018 bonds for the Broadband System.
The aggregate principal amount of the Bonds being issued shall not exceed $150,000,000. The net effective
interest rate shall not exceed 5.45% on either the 2018A or 20188 Bonds. The 2018A Bonds shall mature
no later than December 1, 2042, and the 20188 Bonds shall mature no later than December 1, 2032.
Mike Beckstead, Chief Financial Officer, stated this item is related to bonds to support brnadband
efforts and introduced the team members who have been working on this item.
Travis Stornin, Accounting Director, provided an overview of the bond structure stating this
issuance will fund $142.1 million of revenue bonds from the Light and Power utility. lflla•m•••••lll\
City of Fort Collins Page 11
I
•
I
DATE FILED: March 8, 2019 6:07 PM
FILING ID: 8864D66F6104C
CASE NUMBER: 2018CV149
March 20, 2018
Vice~President Horak clarified the decision as to whether the City will proceed to provide
broadband service for its citizens will occur in the next month.
Boardmember Martinez made a motion, seconded by Boardmember Summers, to adopt Ordinance
No. 003, on First Reading.
RESULT:
MOVER:
SECONDER:
AYES:
ABSENT:
ORDINANCE NO. 003 ADOPTED ON FIRST READING [UNANIMOUS]
Ray Martinez, District 2
Ken Summers, District 3
Overbeck, Cunniff, Horak, Martinez, Stephens, Summers
Troxell
Boardmembcr Cunniff slated he would support the motion and asked if local investors will be
made aware of their opportunity to invest in this local utility. Stornin replied that is frequently
accomplished through newspaper advertisements with the underwriting team.
Boardmember Summers supported a broad marketing approach to the community.
Boardmember Martinez made a motion, seconded by Bom·dmember Summers, to adopt Ordinance
No. 004, on First Reading.
RESULT:
MOVER:
SECONDER:
ORDINANCE NO. 004, 2018, ADOPTED ON FIRST READING [UNANIMOUS]
Ray Martinez, District 2
j
AYES:
ABSENT:
Ken Summers, District 3
Overbeck, Cunniff, Horak, Martinez, Stephens, Summers
Troxell ........ ·····----·----J
• OTHER BUSINESS
• ADJOURNMENT
The meeting adjourned at 7:51 PM.
ATTEST:
Secret
City of Fort CoWns Page 12
I
•
I