1981/11/12 Council Minutes - Laserfiche WebLink

518 November 12,1981 Mr.Hulbert..id if only Articles I through IX were approved fla not Article X it was possible the P.U.D.would not enter tnto the j:' agreement. Bruce Jones then sald the only problems he could see with Articles I through IX is there might be water quality problems in the Stage II reservoir but that is a chance the City would have.to take. Roll was called on the motion to authorize the Mayor to sign Articles/ through IX of the P.U.D.agreement with all Councilmen voting yes. Motion Carried Bruce Jones then discussed Article X and the$3 million dollar contribution proposed by the 1.1.0. 112 5411 this would not constitute 991019911018 • prospectus for the bonds. This would also result in a.310 rate Increase to water users to cover the difference between the proposed 3 million and the 4.75 million 09:00 900461 felt necessary. Moved by Councilman Overstreet,seconded by Councilman Aldcroft,to authorise the Mayor to enter into the agreement with the P.U.D.,in- 71104 eluding Article X,as presented,except in Section 3 which will show the District's contribution to be 54.7 million,and that Bruce Jones be given an opportunity to adJust certain funding language in this article. Mr.Hulbert again stressed the P.U.D.'s contribution would not be uust tIle$3 million and said he felt further negotiating could be worked out. '14 Councilman Overstreet said if the City's bonding and legal counsel recommended the$4.7 he would rely on their expertise and asked that • Council unanandously vote In support of these recommendations. — - Mr.Hulbert then suggested a compromise of a dollar-for-dollar contribution by the P.U.D.after the project reaches the$30 million dollar amount. The P.U.D.would still contribute the$3 ndllion referred to in Article X. This way the Distriot would share in any over and:0020:0:6. Mary Haglund,of the Public Works Department,then suggested that the City's contribution be redeced to 916.25 million and the P.U.D.s 06 1207 at 93 ndllion and then both would share in any 10290:1 interest rates. Bruce Jones then reported be had just talked to Dick Kennedy,Investment Couselor,who suggested that-Article X could be amended to show the City's contribution as$16.50 8111190 091 the District's as$4 million. This would allow sufficiently for contingencies in the project. An exhibit Just applicable for Article X could be produced that would enable sale of the Inonds with the understanding there were provisions in the event of unforeseen circumstances. Councilman Overstreet pointed out 114 10 had only progressed so far an this because of tile P.U.D.`s request and now it appeared 531435,300 be getting cold feet and the City could come up short. Mayor Moore then nuggested leaving the ProPosal ls with the.hY P.U.D.sharing 50-50 in the contingencies. Moved by Councilman Aldcroft,seconded by Councilman Michelson,to amend the motion by showing the City's contribution of up to$18 million and the District's Contribution of up to$4 million dollars.