Agenda 05/12/2009 - Laserfiche WebLink

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April 14, 2009 The Members of the Council voted as follows on the foregoing Ordinance: Aves Navs Absent Abstentions Adopted this 14th day of April, 2009. The undersigned Clerk of the City Council of the City of Martinsville, Virginia hereby certifies that the foregoing constitutes a true and correct extract from the minutes of a meeting of the City Council held on April 14, 2009, and of the whole thereof so far as applicable to the matters referred to in such extract. r hereby further certity that such meeting was a regularly called meeting and that, during the consideration of the foregoing Ordinance, a quorum was present. Dated this _ day of 2009. Clerk, City Council of City of Martinsville, Virginia Ted Cole and Paul Jacobson discussed the Bond Ordinance authorizing the issuance of up to $5,535,000 maximum principal amount of general obligation bonds. This ordinance has three separate projects that can be adopted in entirety, not adopted at all, or In part as follows: (1) refinancing of three outstanding bond obligations in the aggregate amount of $4,335,000. (2) $400,000 to fund regular FYIO capital needs, including enhancements to City courtrooms, Municipal Building improvements, and a bucket truck for the Electric Department. (3) Landfill project for approximately $800,000 if determined to be a profitable venture. Davenport, on behalf of the city, drafted, distributed, negotiated, and received bids from financial institutions interested in providing the City with the necessary financing to refund some of its existing debt and provide for capital improvements. Four firm bids were received. The results of the proposal process and negotiations leave the following for consideration by Council: interest rates provided by Carter Bank & Trust are lower than other proposals; Carter Bank & Trust provides the most flexible Terms and Conditions which include: the loan may be prepaid in whole or in part without penalty at any time, no bank costs/fees, can provide funding within the city's desired timetable, and no escrow requirements; per discussion with staff, Davenport has structured the savings achieved through the Refundings to be recognized primarily in FY20 1 0; Carter Bank & Trust has provided attractive borrowing interest rates with respect to the amortization periods requested by the City. Preliminarily, staff has provided guidance with respect to matching the amortization periods-bucket truck estimated useful life of 10 years and landfill improvements estimated useful life of 20 years; based upon these proposals, Davenport recommends that the City consider awarding the financing to Carter Bank & Trust with a debt service savings of $88,103. This proposed Ordinance