HomeMy WebLinkAbout08/21/1989 City Council 00881,
MINUTES OF THE CITY COUNCIL MEETING
HELD ON
AUGUST 21, 1989
The Regular Session of the City Council of the City of The
Colony, Texas was called to order at 7:30 p.m. on the 21st day of
August, 1989 at City Hall with the following Council roll call:
Don Amick, Mayor Present
Rick Harris, Mayor Pro-rem Present
Steve Withers, Councilman Present
Mike Alianell, Councilman Present
Steve Glazener, Councilman Present
Dick Weaver, Councilman Present
Joel Marks, Councilman Present
and with seven present, a quorum was established and the
following items were addressed:
1. PLEDGE OF ALLEGIANCE
Mayor Amick led the Council and audience in the Pledge of
Allegiance to the flag of the United States of America.
2. CITIZEN INPUT
There was none.
3. RECOGNITION OF VOLUNTEER SERVICE BY KATHY PHILLIPS
Mayor Amick read a certificate of appreciation recognizing
the volunteer service rendered by Ms. Phillips for the past
several years to the City by serving on the Little League
Association, the Park and Recreation Board, the PARDners, and
many other areas, and then presented the certificate to Ms.
Phillips.
Councilman Glazener noted that he had worked with Kathy and
praised her efforts in getting the Triathlon organized, stating
we (the city) need more people like to her.
4. CONSIDERATION OF A REQUEST FROM MICHAEL RAY TO BUILD A
BRIDGE AT SCOUT PARK AS AN EAGLE SCOUT PROJECT
Michael Ray, an Eagle Scout, presented the Council with
plans for a bridge, he would like to build in Scout Park. Mr.
Ray said this would be his Eagle Scout project, noting that all
the material will be donated by Home Depot and other area
merchants. Councilman Harris moved to approve the project and
Councilman Glazener seconded the motion. Councilman Glazener
said it takes several years of effort to get where Michael is
today, and that this is a worthwhile project. Councilman Harris
asked if staff will be monitoring this project and Mr. Hall said
yes, and offered Mr. Ray any help if needed. Mayor Amick asked
when the project would be finished. Mr. Ray said it depends on
when he receives the material, but he hopes to have the bridge
complete by Christmas.
The motion then carried with a unanimous roll call vote.
5. PUBLIC HEARING AS REQUIRED BY THE TEXAS DEPARTMENT OF
COMMERCE IN REGARD TO APPLYING FOR STATE FINANCIAL
ASSISTANCE FOR RESIDENTS IN THE EASTVALE AREA FOR CONNECTION
TO A PROPOSED SEWER LINE
Councilman Harris moved to open the public hearing and
Councilman Marks seconded the motion which carried with all
members voting Aye.
Mr. Bob van Til gave a presentation regarding the
application process, showing slides of the area. Mr. van Til
said this grant application is for financial assistance to low-
moderate income residents in the Eastvale addition to connect to
the proposed sewer line, for which a loan has been applied
through the State Revolving Fund. Mr. van Til said this is the
003310
first of two public hearings, the second of which will be held in
the Eastvale Addition on August 28. Mr. van Til then covered the
items required to be on the agenda of the first public hearin9
(see attachment "A"). Those items being:
1. Need of the area
2. Available funding
3. All eligible activities
4. Past TCDP funds
5. Final item
Councilman Alianell asked if the figures were set and Mr.
van Till said no, explaining how the money would be spent, and
stating that by the next public hearing the figures should be
finalized. Councilman Alianell also asked if the City could
apply for another grant under another category, ie,
Community/Senior/Social Service Centers. Mr. van Til stated we
could only apply for one type grant in one year.
Councilman Marks asked if this is to benefit all residents
and commercial in the Eastvale. Mr. van Til said all low-
moderate income persons, but no commercial.
Councilman Alianell moved to close the public hearing and
Councilman Glazener seconded the motion which carried with all
members voting Aye.
8. CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 19 OF THE
CODE OF ORDINANCES OF THE CITY OF THE COLONY, TEXAS,
RELATING TO TRAFFIC, AMENDING SCHOOL ZONES
Mayor Amick read the caption of the Ordinance and the
streets on which there are school zones as follows:
AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS AMENDING
THE CODE OF ORDINANCES OF THE CITY BY AMENDING CHAPTER
19 OF THE CODE RELATING TO TRAFFIC; AMENDING SCHOOL
ZONE AREAS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING
THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL OTHER
ORDINANCES OF THE CITY RELATING TO TRAFFIC EXCEPT TO
THE EXTENT OF CONFLICT HEREWITH; PROVIDING A PENALTY
NOT TO EXCEED THE SUM OF TWO HUNDRED DOLLARS ($200.00)
AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH
DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES;
DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE
Squires Drive From a point 280 feet East of its
intersection with Taylor Dr., to a point 280
feet West of its intersection with Taylor Dr.
Taylor Drive From its intersection with Squires Dr., to a point 280 feet South of Squires Dr.
N. Colony Blvd. From a point 280 feet East of its
intersection with Taylor Dr., to a point 280
feet West of its intersection with Taylor Dr.
N. Colony Blvd. From a point 280 feet East of its
intersection with Keys Dr., to a point 280
feet West of its intersection with Keys Dr.
N. Colony Blvd. From a point 460 feet East of its
intersecting point with Ragan Dr. to a point
560 feet West of its intersection with Ragan
Dr.
N. Colony Blvd. From a point 250 feet East of its
intersecting point with Farm Rd. Hwy 423
(Main St.) to a point 260 feet West of its
intersecting point with Farm Rd. Hwy 423
(Main St.)
N. Colony Blvd. From a point 250 feet East of its
intersection with Paige Rd. to a point 250
0033 1 j
feet West of its intersection with Paige Rd.
S. Colony Blvd. From a point 300 feet East of its
intersection with Blair Oaks Dr. to a point
20 feet West of its intersection with Alta
Oaks Ln.
Keys Drive From a point 280 feet East of its
intersection with Anderson Dr . , to its
intersecting point with the south alley of
Elliot Drive.
Nash Drive From a point 250 feet West of its
intersection with John Yates Street to its
intersecting with Miller Dr.
Paige Road From its intersecting point with N. Colony
Blvd. to 250 feet south of its intersection
with N. Colony Blvd.
Paige Road From its intersecting point with Slay Dr. to
its intersecting point with Gates Dr.
Augusta St. From a point 250 feet East of Anderson Dr. to
a point 730 feet West of Anderson Dr.
Anderson Dr. From a point 540 feet South of Augusta St. to
its intersection with Augusta St.
Curry Drive From a point 250 feet North of its
intersection with N. Colony Blvd . to its
intersection with Hale St.
Blair Oaks Rd. From a point 300 feet North of its
intersection with S. Colony Blvd . to its
intersection with Arbor Glen Rd.
Arbor Glen Rd. From its intersection with Ash Glen Lane to a
point 200 feet East of Blair Oaks Rd.
John Yates St. From its intersection with Roberts Dr. to its
intersection with Shannon Dr.
Councilman Harris asked about the deletion of the crossing
at Joy Drive and N. Colony. Mr. Hall said that there is a 4 way
crossing at 423 and N. Colony and at Blair Oaks and N. Colony,
going on to say that staff felt it was not a necessary crossing,
and that due to the berm in the median , the view of persons
crossing in that area is blocked to drivers, making it an unsafe
crossing.
Mayor Amick stated to Chief Ristagno, that when there are
heavy rains, he might consider placing an officer in that area,
due the flooding that occurs and the children walking in that
area may need assistance.
Councilman Marks moved to approve the ordinance as written
and Councilman Alianell seconded the motion, which carried with a
unanimous roll call vote.
9. FIRST READING OF AN ORDINANCE PROHIBITING PARKING OF
OVERSIZE VEHICLES IN GENERAL RETAIL, SHOPPING CENTER AND
NEIGHBORHOOD SERVICES AREAS OF THE CITY OF THE COLONY, TEXAS
Mayor Amick read the caption of the ordinance as follows :
AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS AMENDING
CHAPTER 19 OF THE CODE OF ORDINANCES OF THE CITY
RELATING TO TRAFFIC BY ADDING A NEW SUBSECTION 19-12 (i)
PROHIBITING THE PARKING, STOPPING, STANDING OR STORAGE
OF MOTOR VEHICLES OTHER THAN A PASSENGER CAR, LIGHT
TRUCK, MOTORCYCLE , MOTOR DRIVEN CYCLE OR MOPED ON
PRIVATE PARKING FACILITIES IN THE GR GENERAL RETAIL, SC
SHOPPING CENTER AND NS NEIGHBORHOOD SERVICE ZONED
0033
DISTRICTS ; AUTHORIZING THE REMOVAL OF ANY SUCH
ILLEGALLY PARKED VEHICLE; PROVIDING FOR A PROBABLE
CAUSE HEARING ; REQUIRING THE POSTING OF SIGNS;
PROVIDING EXCEPTIONS TO THE SAID PARKING PROHIBITION;
PROVIDING DEFINITIONS ; PROVIDING A SAVINGS CLAUSE ;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY
NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500.00)
FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED
COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION
OCCURS OR CONTINUES ; DECLARING AN EMERGENCY AND
PROVIDING AN EFFECTIVE DATE
Mayor Amick stated this ordinance is aimed at keeping
tractor trailer trucks from parking in the parking lots at the
shopping centers, going on to say the lots are being torn up, the
truck parking is unsightly and they are also tearing up the
medians and curbs when turning into the parking lots.
Councilman Alianell asked if there is a designated area for
truck parking . Bill Hall said no , the only area would be
districts zoned light commercial , and noted that there is one
south of the city limits off FM 423 . Councilman Alianell asked
what a driver would do if he lives in the City or wishes to
visiting for a day or two. Mayor Amick stated there are truck
terminals available for that purpose. Councilman Withers said he
understands the property owners desire the trucks not to park
there and Mr. Hall said that is correct and then passed around
some pictures of the Wal-Mart parking lot , reflecting trucks
parked in the lot today. Mr. Hall said he had spoken to Chief
Auto Parts and to Southland Corp. who both have solicited the
City' s help in this problem.
Councilman Harris asked if it is the intent of staff to tow
the vehicles and Mr. Hall said that is an option. Mayor Amick
said signs will be placed noting the ordinance number and the
possible fine. Councilman Harris said he just wants to know if
the ordinance is passed, it will be enforced.
Councilman Marks asked Chief Ristagno if the police
department responds if there is an accident between two passenger
cars in a private parking lot. Chief Ristagno said that is our
option , however , State law does not require us to do so .
Councilman Marks said that the Council does not want truckers in
the city, asking why we are worried about private parking lots,
going on to say that other cities do not respond to problems in
private lots.
Councilman Harris said no city provides truck terminals.
Councilman Marks asked why not, stating that once before this
problem had come up and 8 of the 12 truckers living in the city
moved out.
Mayor Amick said anyone driving a truck can live here just
as anyone who flies a plane can live here, but we don 't want a
plane parked in our shopping centers. The Mayor went on to say
that the shopping centers were not built to provide truck
parking, which is evident by the holes in the lots.
Councilman Glazener agreed with Harris and Amick, noting the
city has been trying to solve this problem for some time.
Councilman Marks said he is not asking the city to put in a
terminal , but asked what the city is going to do for
them (truckers ) , also asking if the city bought a "boot" . Mr.
Hall said no the boot was not purchased , due to liability
factors, plus the company went out of business.
Councilman Marks asked what would happen if the property
owners said it is O. K . Councilman Harris said the ordinance
would still stand. Councilman Marks asked if we are doing this
now because the property owners don' t want the trucks parking in
their lots. Mayor Amick said this is not just for the property
owners, but the citizens of the City, stating this is an eyesore
and there have many complaints regarding this.
Councilman Marks asked if the city is liable for damages to
the trucks due to towing and the Mayor said the city would pay if
the trucks are damaged.
Agnes Foster asked about parking in the streets and the
Mayor noted that is covered under a separate ordinance.
Debbie Ehrman, 5004 Blair Oaks Rd. , stated that she does not
0332i
feel this is against truck drivers, but that she as an employee
of Wal-Mart thinks it is necessary. Ms. Ehrman said the money to
repair the parking lot comes from the profit of the store, which
comes from the employees profit sharing , noting that the
employees are citizens also.
Mayor Amick closed discussion and asked the City Secretary
to bring this ordinance to the Council on September 11, 1989 for
action.
10. FIRST READING OF AN ORDINANCE PROHIBITING THE OPERATION OF
RADIO CONTROLLED AIRPLANES IN CITY PARKS, INCLUDING BUT NOT
LIMITED TO, STEWART CREEK PARK
Mayor Amick read the caption of the ordinance as follows:
AN ORDINANCE OF THE CITY OF THE COLONY , TEXAS AMENDING
CHAPTER 14 OF THE CODE OF ORDINANCES OF THE CITY
RELATING TO PARKS AND RECREATION BY AMENDING SECTION
14-6 RELATING TO UNLAWFUL ACTS WITHIN A CITY PARK BY
ADDING A NEW SUBSECTION (21) PROHIBITING THE USE OF ANY
RADIO CONTROLLED AIRPLANE WITHIN A CITY PARK; PROVIDING
A SAVINGS CLAUSE ; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A PENALTY NOT TO EXCEED THE SUM OF FIVE
HUNDRED DOLLARS ( $500 . 00 ) FOR EACH OFFENSE AND A
SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY
DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES;
DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE
Mayor Amick said this ordinance was brought about by recent
hazardous conditions observed at city parks due to radio
controlled airplanes being flown where there are crowds of
people. Councilman Harris asked if this effects school yards and
Nick Ristagno , Chief of Police said it does not, however that
could be added. Bill Hall said the school district would have to
restrict this activity.
Councilman Weaver asked if this includes tethered airplanes
and the Chief said it covers all aeronautical devices.
Ms . Vivian Bedell said she would like to see an area
designated for this activity. Mayor Amick said that is a good
idea , but he is not sure there is such an area in our city.
Chief Ristagno said there is a club on 5th St. in Frisco, just
off Preston Rd. where people can fly these type airplanes.
Mr. Hall said this ordinance does not prohibit the planes in
the city but in parks and playground areas.
Mayor Amick asked if this ordinance should include empty
lots around residences. Chief Ristagno said it could be added.
Mayor Amick directed the Chief to add a provision for certain
distances from homes and asked him to contact the schools to see
if they want their property to be included.
Agnes Foster said if we are eliminating this activity in
parks and empty lots then why not restrict it completely. Mayor
Amick said the intent is to restrict these planes in heavily used
parks and recreational areas. Councilman Harris said this is a
fun hobby, but it is dangerous in park areas. Mayor Amick closed
the discussion on this ordinance.
6. ACCEPTANCE AND AWARD OF BIDS FOR INSURANCE COVERAGE FOR CITY
EMPLOYEES
Bill Hall stated that five bids had been received¢'opened on
August 14 , 1989 . Ms . Katherine Martinez , Personnel Director
advised the Council that insurance rates had gone up again this
year, stating that the low bidder was Washington National . Ms.
Martinez said the city is currently using Washington National and
her recommendation is to award the bid to them again, since the
other proposals had been more expensive for less benefits .
Councilman Harris asked about the deductible and Ms. Martinez
said she recommends the $100 .00 deductible. Councilman Weaver
asked if employees are satisfied with this policy. Bill Hall
said that after some initial problems, the company has been
handling claims satisfactorily. Councilman Alianell asked if the
city pays for coverage other than the employee and the Mayor said
00332
no , the city pays 100% of the employee ' s coverage but the
employee has to pick up the difference for spouse, child and
family coverage.
Councilman Alianell moved to accept the bids and award the
contract to the low bidder, Washington National with a $100 .00
deductible and Councilman Harris seconded the motion. There
followed a brief discussion clarifying the amount of the
premiums. At this time, the motion carried with a unanimous roll
call vote.
Mayor Amick then advised all present that Washington
National had forwarded a letter to the city stating that they had
re-evaluated their proposal and the rates would be about 10%
lower than bid. The Mayor explained that these rates could not
be considered until the bids were accept4ed and awarded as
originally proposed.
EMERGENCY AGENDA ITEM
Mayor Amick called a recess so Council could review the
following two items.
1. CONSIDERATION OF ACCEPTANCE AND AWARD OF BIDS FOR THE
INSTALLATION OF TRAFFIC LANE MARKINGS ON NORTH COLONY
BOULEVARD FROM MORNING STAR DRIVE TO ETHRIDGE DRIVE
Mayor Amick stated that three bids had been received as
follows:
American Striping $30 ,020 . 65
Traffic Systems $30 ,253 . 75
Lectric Safety Lights $31 ,318 .85
Councilman Harris moved to accept the bids and award the
contract to the low bidder, American Striping in the amount of
$30,020. 65 . Councilman Alianell seconded the motion.
Councilman Weaver said he is against spending the money at
this time when there are higher priorities, going on to say we
need to be careful where our money is spent. Councilman Marks
said he is concerned with the money also, asked if the width of
North Colony can accept 4 lanes, and stated that we could do only
the center lane for $13 ,000.00 .
Mike Russell , Operations Manager, said he believes if this
project is done, it should be done completely and feels strongly
the city should go forward with this. Mr. Russell stated the
lanes are wide enough. Mr. Hall also recommended doing all the
project or none due to liability, stating that if we only mark
the center lane, we are making a statement that we know what the
requirements are for marking that street and it should be done
but we are not doing it.
Councilman Weaver said if we do this project, we cannot
repair the streets.
Mayor Amick said he supports this and it is long overdue,
stating he is very aware of all the projects and he feels this is
top priority , and that it will make the street safer during
school . Councilman Harris agreed, stating this has been put off
for too long.
Councilman Marks asked if Lectric Safety references had been
checked . Mr. Hall said all companies had been checked and found
to be capable, with no reason to reject any of them. Councilman
Marks asked if the City has employees trained to maintain the
markings . Mr . Hall said yes , that employees will be trained .
Councilman Withers asked if by making N. Colony 4 lanes, the jog
at the medians will be too narrow. Mr. Russell said there is
plenty of room, noting it is over the minimum standards and in
fact wider than 423 lanes.
Councilman Weaver asked where the money is coming from and
Mr. Hall said from the contingency fund from IBM.
Councilman Marks asked about street repair , stating it
should be a higher priority and if we button N. Colony, how will
we repair it. Mayor Amick said the buttons can be removed, the
00332d
street repaired and the buttons replaced.
Councilman Marks asked if there are guidelines as to how to
spend contingency funds . Mayor Amick and Mr . Hall both
responded, this is by Council approval .
Councilman Glazener called for the questions.
The motion then carried with the following roll call vote:
Harris - Aye ; Withers - Aye; Alianell - Aye; Glazener - Aye;
Weaver - No; Marks - No; Amick - Aye
7. CONSENT AGENDA
Mayor Amick summarized the items on the consent agenda for
the Council and audience.
A. CONSIDERATION OF APPROVAL OF MINUTES OF THE COUNCIL
MEETINGS HELD ON AUGUST 7 AND 14, 1989
Councilman Withers moved to approve the minutes as written
and Councilman Alianell seconded the motion which carried with a
unanimous roll call vote.
B. CONSIDERATION OF AN ORDINANCE AUTHORIZING A CONTRACT
FOR INSURANCE COVERAGE FOR CITY EMPLOYEES
Councilman Withers moved to approve the ordinance as written
and Councilman Alianell seconded the motion which carried with a
unanimous roll call vote.
2 . CONSIDERATION OF AN ORDINANCE AUTHORIZING A CONTRACT FOR
INSTALLATION OF TRAFFIC LANE MARKINGS ON NORTH COLONY
BOULEVARD FROM MORNING STAR DRIVE TO ETHRIDGE DRIVE
Councilman Alianell moved to approve the ordinance as
written and Councilman Harris seconded the motion which carried
with the following roll call vote:
Harris - Aye; Withers - Aye; Alianell - Aye; Glazener - Aye;
Weaver - No; Marks - No; Amick - Aye
11 . CITY MANAGER' S REPORT
1 . Introduced the proposed Thoroughfare Plan for the City,
stating this had been coordinated with surrounding cities and
will be brought back to Council at a later date for action.
2. Preliminary results are in on the street testing, per
Hal Jones. Two problems; no sub-base and the scaling is due to
little or no air in the concrete.
3. Mr. Hall has written a letter to the manager of the
shopping regarding the noise complaints voiced by the residents
in the area of S. Colony and Paige, however he has not received a
response.
12. WORK SESSION TO REVIEW FINANCING OPTIONS WITH FINANCIAL
CONSULTANT, FIRST SOUTHWEST COMPANY
Mr . Boyd London, from First Southwest Company advised the
Council of his company ' s recommendation for refinancing of
assumed MUD debt . (See attachment "B") Mr. London said this
would extend the debt 4 years , but would save the city
approximately $200 , 000. 00 a year.
There was a lengthy discussion regarding the process and how
this would benefit the city , with Mr . London and Mr . James
England, Finance Director fielding questions of the Council .
Councilman Harris suggested this be acted upon before the
1989/90 budget is finalized. Mayor Amick, with Council approval
directed Mr. London to begin the process of refunding the MUD
bonds and to bring this back to Council for final approval . Mr.
London said he would probably be back by the first meeting in
October.
003324
Mayor Amick then directed the staff to prepare a resolution
for the August 28 agenda supporting this refunding procedure.
Mr. London elaborated on the complicated refunding process,
stating it should be complete within 90 days of approval.
With no further business to address , Councilman Alianell
moved to adjourn the meeting and Councilman Harris seconded the
motion which carried with all members voting Aye.
Mayor Amick adjourned the meeting at 10: 00 p.m.
APPROVED:
Don mick, Mayor
ATTEST:
421,Z - 4.
Patti A. Hicks, City Secretary
[SEAL]
00332o
ATTACHMENT "A"
1989
TEXAS COMMUNITY DEVELOPMENT PROGRAM
FIRST REQUIRED PUBLIC HEARING AGENDA
August 21, 1989 7:30 P.M. City Hall
5151 North Colony Blvd.
The Colony, Texas 75056
1. NEED OF THE AREA
The 1989 Application for grant monies under the TCDP is for assistance
to low to moderate income people to tie into a proposed sewer collection
system provided by the City of The Colony.
2. AVAILABLE FUNDING
The North Central Texas region was allocated slightly more than
$ 35 million in 1989-a 10% increase over 1988.
In July, the Regional Review Committee (RRC) decided that each
"entity" is eligible to apply for a maximum amount of $ 250,000.00.
3. ALL ELIGIBLE ACTIVITIES
Following is a partial list of eligible activities for funding under TCDP:
A. Water System Improvements
B. Housing Rehabilitation
C. Affordable New Housing
ID. Wastewater Improvements
E. Road/Street Improvements
F. Drainage Improvements
G. Gas Systems Improvements
H. Solid Waste Disposal/Landfills
I. Handicapped Accessibility Improvements
J. Fire Protection Facilities
K. Community/Senior/Social Service Centers
4. PAST TCDP FUNDS
The City of The Colony has never received any TCDP Grant Funds.
However, .the former City of Eastvale received a planning/capacity
grant in'1986. This grant was recently closed-out in early 1989 and
the project completed.
5. FINAL ITEM
Citizens are encouraged to submit their views and proposals regarding
Eastvale's Community Development needs. Written comments can
be submitted to the City's planning office prior to August 28, 1989.
0 0 ( 3 2 0
-T--7-E•frt
ATTACHMENT "13"
MEMORANDUM
.)UNCILMEMBERS
,01-0NY
4DON, JR.
. , 1989
.• RE: REI :ING OF ASSUMED MUD DEBT
The City is facing escalating MUD debt service costs of approximately $194,000 in
Fiscal Year 1990 and $120,000 in Fiscal Year 1991, totaling approximately $314,000.
Attached is a computer run illustrating a restructuring proposal to lower the average
annual principal and interest requirements to approximate what the City is now
paving. Although debt repayment had to be extended by four years, it should not have
a material effect on the City's bond rating.
P...,:ase note that our proposal is to refund the Series 1985 bonds issued at an average
• rate of 9.60%, although the MUD bonds are the one's giving the City the problem right
now. The rationale benind this is that all debt of the City is being paid from a tax
levy, so it should not matter which debt we refinance, as long as the levy is
moderated. Second, the 1985 issue has some savings associated with 'a lowering of the
interest rate, so it is the most logical candidate. As the City begins to transfer
moneys from water and sewer operations to help defray the MUD debt, we can then
structure future issues to reflect the nature of those transfers and their favorable
impact on the tax structure. Third, if we refunded the MUD bonds, it would be the
last refunding available under current tax, law. With the 1985 issue, we would still
have one more refunding available.
The difference between the present value of the cash flows between the old and new
financing is p'sitive (advantageous to the City), further indicating that the lowering of
th... interest Rtes on the Series 1985 bonds had a positive effect.
Thc transactim can be completed ninety (90) days from authorization. All numbers
illustrated ind.ude costs of issuance, and are net to the City.
W131,:sgm
Attachment
I
i 0 Z
P"a�. -1 Y 2
Z � P 7
7' 4.
Less : Plus :..
New O t."iscal Year Outstanding Refunded Refunding D bt Requirenien.:_ `
e.w
1990 3 , 210, 246 581, 088 347 , 766 2,976 , 924 Y.
1991 3 , 314 , 286 566 , 088 228 , 510 2 , 976 ,709
1992 3 , 275,751 574 ,588 273 , 823 2 , 974 , 986
1993 3 , 262, 491 556 , 588 267 , 498 2 , 973 , 401
1994 3 , 261, 356 562 , 088 270 , 803 2 , 970 , 071
1995 3 , 208 , 879 541 , 088 302 , 408 2 , 970 , 199
1996 3 , 210 , 636 545, 388 307 , 088 2 , 972 , 336
1997 3 , 216, 471 550 , 063 305,780 2 , 972 , 189
1998 3 , 221 , 953 553 ,563 303 , 628
1999 3 , 225, 376 554 , 538 300, 659 2 , 97
' 2000 3 , 220,083 .. 552, 938 306 , 563 2 , , _ , 708
2001 3 , 214 , 751 548 , 713 .306 ,153 2 , 972 , 191
•
2002 3 , 261 , 224 565, 719 275, 635 2 ,971 , 140
• 2003 3 , 246 , 793 554 , 000 279 , 885 2 , 972 , 678
2004 3 , 256,750 563 , 625 277 , 848 2 , 970 , 973
2005 3 , 263 , 975 569 ,750 279 ,518 2 , 973 , 743
2006 3 , 173 , 625 548 , 625 345, 000 2, 970 , 000
2007 1, 985, 000 985 ,000 2 ,970 , 000 •
2008 2 ,970,000 2, 970 , 000 .
2009 2 , 970 ,000 2, 970 , 000
2010 2 , 970,000 2 , 970 , 000
Totals 57 , 029 , 646 9 , 488 , 444 14 , 873 ,560 62 , 414 , 762