HomeMy WebLinkAboutminutes.council.19820719Special Meeting Aspen City Council July 19, 1982
Mayor Edel call the special Council meeting to order at 5:05 p.m.; with Councilmembers
Knecht, Collins and Parry present.
City Manager Chapman passed out a memorandum on the water storage facilities. The staff
received authority to enter into acquisition agreements for the tank sites. The city
has accepted bids for the water lines and for the water storage tank sites. The bids
on the water lines are $100,000 lowers than in original budget; the bids on the water
storage tanks are $180,000 lowers than the original budget. This might be because of
the construction market. Chapman told Council the staff has worked with Kirchner/Moore
and come up with a bond sale proposale with an interest rate of 12 per cent, which is
about as good as the bond market has been in sometime. Chapman stated the consensus is
that the prime rate won't bet any better. Chapman asked Council to authorize contracts
for the water storage contracts.
Councilman Knecht moved to authorize the city manager to enter into water storage tank
contracts for the Pfister site and the Aspen Grove site; seconded by Councilman Parry.
Mayor Edel asked if there were any problems with these. City Manager Chapman said the
city and the prospective tank sites are in agreement in principle on everything. All
that remains to be done is for the documents to be signed. The cemetery association is
anxious to get their money. Pfister will be getting city water to his house. Gary
Esary explained that Pfister will get tap and PIF for his house. If and when he gets
a development allocation, Pfister will donate the site to the city.
All in favor, motion carried.
ORDINANCE 934, SERIES OF 1982 - Bond Sale, $6,300,000 for water management plan
City Manager Chapman told Council this is the bond sale contract. The terms of the bond
sale of $6,300,000, a 15 year issue with a net effective interest rate of 12.1 per cent.
The issue is being sold at a discount; the proceeds to the city will be a little higher
than $6,000,000. One of the prime expenses is the insurance cost of $130,000. Joe
Barrows, Kirchner/Moore, explained interest discounting. Mayor Edel asked what happened
on the bond rating trip to Moody's. Barrows told Council the numbe~and figures
impressed Moody's. Moody's was pleased with the city's ability to react to changes.
They gave exactly the same rating as in the past. Barrows said with the overall economy,
the analysts are reluctant to change bond ratings.
Councilman Parry moved to read Ordinance 934, Series of 1982; seconded by Councilman
Knecht. All in favor, motion ~rried.
ORDINANCE ~34r
(Series of 1982)
AN ORDINANCE TO CONTRACT AN INDEBTEDNESS OF BEHALF OF THE CITY OF ASPEN,
COLORADO, AND UPON THE CREDIT THEREOF, BY ISSUING THE GENERAL OBLIGATION
BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF $6,300,000 FOR THE PURPOSE
OF IMPROVING AND EXTENDING THE CITY'S WATER SYSTEM, INCLUDING THE ACQUISITION
OF WATER RIGHTS: PRESCRIBING THE FOPS4 OF THE BONDS; PROVIDING FOR THE LEVY
OF TAXES TO PAY THE SA~E; PROVIDING OTHER DETAILS CONCERNING THE BONDS;
RATIFYING ALL ACTION HERETOFORE TAKEN IN CONNECTION THEREWITH; ~ND DECLARING
AN EMERGENCY was read by the city council
Councilman Parry moved to adopt Ordinance #34, Series of 1982, on first reading; seconded
by Councilman Collins. Roll call vote; Councilmembers Knecht, aye; Collins, aye; Parry,
aye; Mayor Edel, aye. Motion carried.
Councilman Parry moved to adjourn at 5:35 p.m.; seconded by Councilman Collins. All in
favor, motion carried.
~~ity Clerk' '