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HomeMy WebLinkAbout05/12/1981 Adjourned Meeting (2) 352 MAY 12, 1981 STUDY SESSION The City Council met in session on this date at 6:30 p.m. in the Council Chambers of city Hall, Yakima, Washington. Council members present were Assistant Mayor Don Hinman, Lynn Buchanan, Lynn Carmichael, Bruce Crest and Shirley Doty. Council member Henry Beauchamp present after 6:40 p.m. Mayor Betty L. Edmondson absent. 1. OPEN DISCUSSION FOR THE GOOD OF THE ORDER . Assistant Mayor Hinman suggested that a copy of Jim'Smith's letter be sent to the Council Transit Committee. City Manager Zais commented that there have been quite a few responses sent to him. 2. CONSIDERATION OF APPOINTMENTS TO YAKIMA HOUSING AUTHORITY Following discussion regarding the number of applications received, it was MOVED by Crest, seconded by Beauchamp that Penny Milczewski be appointed to fill the unexpired term of In Reed on the Housing Authority. Unanimously carried by voice vote. Edmondson absent. It was the general consensus of the Council to request recommendaticms from the Housing Authority for the other vacancy. 3. REPORT FROM FINANCE DIRECTOR ON BOND NEEDS AND RATING REQUIREMENTS AND SUPPLEMENTAL REPORT ON TREATMENT PLANT COSTS Don Horan, Finance Officer, distributed and explained a memo dated May 12, 1981, regarding financing trends - interim and long-term. He stated that in the market today, the terms of the contracts are negotiated. He reported that the bank is willing to lend the City interim financing at 60% of prime rate, to be renegotiated every 30 days. He reported that there is sane good news in that the City can bond for twenty years. He explained that the bond can either go out for bid or go on a buy-out basis. He reported that the bonding con- sultant advised that we should not go out for bids. He stated that the price given for the buy-out would probably came in about 7 to 10 days prior to the confirmation of the sale. He further advised that he would continue to use a bonding attor- ney. He comnented that the bonding houses are discounting those entities that don't use accrual accounting methods and Yakima has an excellent accrual accounting system. He stated he would like Council's authority to proceed with a contrac- tual arrangement on the basis of the needs for $3.3 million of total bonding within the Water-Sewer Fund. He recommended that Council put the reserves in the bond issue and reported that both Harper and Foster & Marshall concurred. He stated that if federal funds become available after the bond issue has been completed, there are two options available. He explained the trust account method which was one of the op- tions. Assistant Mayor Hinman commented that without more information, he has a difficult time knowing if this is a good II/ deal. Mr. Horan stated that he consulted two investment houses and he would like Council to approve a contract to maintain the City's bond rating, authorize preparation of a prospective and market an issue. He comnented that investment houses don't particularly want municipal commodities; it has to be a type of buyer that likes the security of the market. It was MOVED by Buchanan, seconded by Doty to authorize staff to proceed with a contractual arrangement to seek bonding for the sewer plant construction project in the amount of $3.3 million. City Manager Zais and Don Horan explained the ex- hibits in the report. Council member Hinman requested infor- mation on the original contract with Mullen and Associates and What the original engineering contract was with R. W. Beck. He stated he wants to know haw much the City has paid them so he can tell where everything went wrong. He stated that we need to show the causes for the cash deficit. City Manager Zais 'coFTWILLth4, c hat is; for an audit and staff is not prepared to do that in thetimeftame we are working in. He MAY 5, 1981 351-A ADJOURNED MEETING -- URBAN AREA PLAN The City Council met in session on this date at 4:40 P.M. in the Council Chambers of City Hall, Yakima, Washington, to discuss strategy for the Urban Area Plan with the County Commissioners. Council members present were Mayor Betty L. Edmondson, Lynn Buchanan, Lynn Carmichael, Bruce Crest and Shirley Doty. Council members Beauchamp and Hinman absent. Council member Doty questioned how the other Council members would feel about using a caucus typ format in the joint meetings with the County Commissioners. It was the general consensus of the Council that there would be one spokesman following the caucus; that spokesman to be infor- mally decided at the tim of the caucus. There was a short discussion regarding the issue of the Regional Planning Commission. Carol Darby, Director of Community Devlopment, suggested that Council not talk about the number of persons serving on the Regional Planning Commission, but talk about the formula and if it should be based on population or geo- graphic or political reasons. The meeting was adjourned at the hour of 5:00 P.M., to then meet on Thursday, May 7, 1981, at 2:00 P.M. in the meeting room at Union Gap City Hall. Unanimously carried by voice vote. Beauchamp and 'Hinman absent. , , 0 0 -62A- ArWAPAO-GC READ AND CERTIFIED ACCURATE BY DATE:1 .J 36A/ ,t)UNCIL MEMBER r DATE �4/ COUNCIL EMBE ATTEST: OF. de 0, 40 11 - . .05 0 CITY C MAYOR 1