HomeMy WebLinkAboutMINUTES Town Board Study Session 10-09-2007 Town of Estes Park, Larimer County, Colorado, October 9, 2007
Minutes of a Regular meeting of the TOWN BOARD STUDY SESSION of
the Town of Estes Park, Larimer County, Colorado. Meeting held at Town
Hall in said Town of Estes Park on the 9th day of October, 2007.
Committee: Mayor Baudek, Trustees Blackhurst, Eisenlauer, Homeier,
Levine, Newsom and Pinkham
Attending: All
Also Attending: Deputy Administrator Halburnt, Director Goehring, Town
Attorney White and Town Clerk Williamson
Absent: Administrator Repola
Mayor Baudek called the meeting to order at 5:30 p.m.
FUNDING FOR L&P SUBSTATION/DISTRIBUTION SYSTEM – ENGAGE BY THE
END OF 2007.
Jim Manire/James Capital Advisors, Inc. explained the advantages of tax exempt
financing for Town projects. He stated if the Town borrows $10 million or less it would
be eligible for certain discounts.
Dir. Goehring reviewed the upgrades to the Mary’s Lake substation facility that includes
new transformers and distribution upgrades. Improvements are scheduled to begin
April/May and be complete within 90 to 120 days. The distribution system would be
designed in 2008 and completed by June 2009. The upgraded system would have an
approximate life of 50-years.
Mr. Manire stated this bond issuance would be similar to the 1999 bonds; therefore, a
template already exists. He is recommending the facility upgrades and the distribution
upgrades be combined into one bond issue to save money on the issuance of two
separate bonds and to make the offer more attractive to the bond market. An ordinance
approving the issuance of $6.5 million would be presented at the October 23, 2007
Town Board meeting and would include the improvements, insurance policy, and cost to
issue the bond. The insurance policy would guarantee the investors a second position
to the L&P’s cash reserves after O&M costs are paid. The bond would have a 20-year
debit service payment of approximately $460,000/year. The 1999 bonds mature in
2011 and have a debit service payment of approximately $300,000/year.
A competitive bond market would be used for the sale of the bond through the internet
with four to eight bids expected and closing on the transaction on December 11, 2007.
IRS regulations require the funds be used within 3 years of issuance and limits the
amount of interest the Town can make on the money.
FUTURE FUNDING ISSUES
Stanley Fairground Barn
Mr. Manire informed the Board the new Barn at the Stanley Fairgrounds would be
financed through a lease purchase, similar to the golf course financing in 1990. The
Town would need to identify a collateral package of $2.5 million for the lease package.
In 1990, the golf course was used as the lease asset; however, restrictions in the deed
prevent the course from being used in such a transaction. He recommends the Town
approach a bank for direct financing and bring the lease package forward in
February/March for approval.
Town Board Study Session – October 9, 2007 – Page 2
Water
Dir. Goehring reviewed the upgrades necessary at the Mary’s Lake Water Treatment
facility for both increased demand and new water quality improvements. Phase I will
increase the facility from 2 Million Gallons per Day (MGD) capacity to 4 MGD and
change the treatment type to membrane filtration at a cost of $5.1 million with $370,000
for engineering and design. The project would begin in May 2008 and be completed
March 2009. Phase II would increase the capacity of the facility by an additional 2 MGD
for a total capacity of 6 MGD or build a new facility at the Glacier Creek facility.
Mr. Manire stated the financing is similar to the L& P project; however, the Water and
Power Authority may be a source of funding through a subsidized loan program
available in May of 2008. The loan rates are approximately 80% of the prime rate. This
issue may come to the Board in March 2008 for approval.
Dir. Goehring informed the Board the Water Department would need to purchase the
membranes, $1.2 million, from the Water Fund prior to establishing the loan/bond.
Therefore, a reimbursement resolution would need to be adopted by the Town Board to
repay the Water Fund from the loan/bond in May of 2008.
Golf Course
The current golf course lease purchase is due to mature in 2009. The EVRPD would
like to fund a new irrigation system, construction to begin after the next golf session,
with the golf course as collateral. The Town is responsible for the lease payments if the
Rec. District were to default because the Town owns the property used for collateral.
There being no further business, Mayor Baudek adjourned the meeting at 6:35 p.m.
Jackie Williamson, Town Clerk