08232004 Regular Meeting - Laserfiche WebLink

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Regular Meeting August 23, 2004 176. Page 7 provides GO Bonds, Certificates of Obligations, Revenue Bonds and Electric utility Bonds be considered on emergency. He stated the proposal or a bid from the investment banking community is typically put together on the day or the day before bid opening, because those interest rates are only good for a short period of time. He also stated these Ordinances are done on emergency because they are time and interest rate-sensitive. Mayor Narvaiz inquired as to the process if this Ordinance was not adopted on emergency. Mr. Wegmiller stated if this proposed Ordinance is not adopted on emergency, the interest rate would not be set and the bids would be thrown out because the investors would wait until the third reading to submit an interest rate bid. Mayor Narvaiz inquired to the impact of not adopting on emergency. Mr. Wegmiller stated he feels this would send a signal to investors the City of San Marcos is not committing to follow through with the scheduled sale and would essentially illuminate the City from being involved in competitive rates and ratings. Mayor Narvaiz inquired what the process would actually be once the City sold the bonds and when the Council would consider of what projects these monies would be used on. Mr. Mark Taylor stated Mr. Wegmiller explained the proposed Ordinance approves the sale of these Revenue Bonds for a general purpose of improvements to the City's Water and Wastewater Systems. He stated the Staff has identified specific projects, but the purpose language is not confined to those specific projects. He also stated when the City moves forward with projects to implement the expenditure of these funds, the City Council is presented at that time with a choice of how to use the proceeds. He stated these projects are listed on the Agenda Cover Sheet. He also stated the reclaim water line is something the City Council needs to decide on. Mayor Narvaiz inquired whether the vote tonight is to approve the General Use for Water/Wastewater Projects and at a future Council Meeting the Council will vote on each project. Mr. Mark Taylor stated the vote tonight is only to approve the General Use for Water/Wastewater Projects. Mr. Thomaides stated Council was given ten different Water and Wastewater Projects is entered into. He stated he would not support any specific project related to the Hotel/Conference Center. He stated he feels the City should not borrow money for those projects before a Hotel and Conference Center Agreement. He stated he also feels part of the Water/Wastewater Improvements are scheduled for other CIP Projects, like the annexed area Wastewater Plan. He stated he supports the Wastewater Treatment Plant Solids Handling, the Rio Vista Neighborhood Wastewater Improvements and the Rio Vista Water Improvements for a total of seven million. Mr. Mihalkanin stated he has been on the Council for several years and he can never remember not voting on emergency on bond issues. He stated this is a normal practice because of the interest rates and it would be difficult to hold these types of Ordinances for a month. Mr. O'Leary stated Staff estimated the interest rates for budgeting purposes at 6 percent and the interest rate Mr. Wegmiller is recommending is 4.329 percent. Mayor Narvaiz stated the projects listed on the Agenda Request Form were talked about moving up. Mr. O'Leary stated some projects moved back a year in an attempt to insure lower rates. On roll call the following vote was recorded: