1995 JT MIN JUL 10 - Laserfiche WebLink

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CITY COUNCIL AND UTILITIES COMMISSION JOINT MEETING MINUTES JULY 10, 1995 In accordance with notice duly and legally given, a Joint Regular Meeting of the City Council of the City Of Colton and the Utilities Commission, was held on the above given date at 6:30 p.m., in the Council Chambers Of City, 650 North La Cadena Drive, Mayor Fulp and Chairperson Butler presiding. CITY r0TTVnTT_ ROLL - CALL: Councilmembers present were Hutton, Sandoval, Bennett, Cook, Sanders, Beltran and Mayor Fulp. Also present were City Manaer Martinez, City Attorney Biggs, and City Clerk Ramos. g ELECTRIC UTILITYDEPARTMENT � Prager Mcra-r+hxri_ p- oposal to Provide -Under i- i Enterrise1995 io-- wri for the Electric as and authorize Staff Pi Mayor Fulp reported this was I the same matter just approved by the Colton Public Financing Authority (CPFA). Moved by Councilmember Sandoval, seconded by Councilmember Beltran to accept Prager McCarthy's Proposal for Underwriting Services for the Electric Enterprise 1995 Bonds. Councilmember Bennett requested that all the comments she made at the CPFA Meeting be included in this meeting; they are as follows: Member Bennett asked why staff had chosen the perform bonds over revenue bonds. Director Vega stated the City is doing a revenue bond inasmuch as the city is committing its revenues to meet the debt payment. Member Bennett asked why it is being called a perform bond. She said with a perform bond u are debt and with the portfolio not being completeyoand this justdesignatinbeig ng the beginning of the process, it would make more sense to her to try to sell the bonds as revenue bonds. She felt there would be a problem with a three-year call on the bonds as it would make People nervous about investing. Director Vega replied the City is dealing with its bond rating and it is not insured and for these reasons this avenue of financing is being sought at this time. She said the City does have the Black and Veatch financing, which is basically a note, and the agreement states that they will finance the City until it can obtain other financing. Member Bennett asked if the three-year call would increase the cost, because the City would be refinancing it in three years. Director Vega said that would be an option; however, refinancing is not a requirement at the end of three years. 1 I