HomeMy WebLinkAboutSpecial Committees Minutes 05.27.1998Laurel Task Force
Minutes
5/27/98
7:00 p.m.
Present: Bud Johnson, Miles Walton, Chuck Rodgers, Gay Easton, Ken Olson, Laurel Haggart, Dirk
Kroll, Don Hackmann, Larry McCann, Jason Rittal
Bud Johnson:
The reason for calling the task force meeting is that as everyone knows the SRF program is new and
the funding channels have not yet opened. The delay is between the EPA and the State.
We have 60 days from the time of bid opening to award the contractors the bids. That date comes
due the first part of July. We have awarded the project contingent upon funding. SRF funding may
not hit that window so a mechanism to ensure the project moves forward from a funding standpoint
needs to be put in place.
Jason Rittal:
The SRF program stated over a month ago that funds were expected to be in their hands so a
commitment could be issued within two weeks. That two weeks passed and a letter was received
outlining a timeframe for funding withing the following few weeks. Because that time has also
passed and no funds, nor a solid commitment for those funds, are in place a backup plan needs to
be implemented to ensure the project moves forward.
Everyone at the meeting has an update which outlines three options, timelines, and a
recommendation. The options are to wait for SRF, establish an interim loan, or sell a revenue bond
on the open market. It is Double-Tree's recommendation at this time to proceed with interim
financing and then wait for SRF financing. This will allow for the City to fully award both contracts.
Group Discussion:
The difference between INTERCAP and D.A. Davidson as interim lenders was discussed. The
INTERCAP program does not require that fees be paid as long as the long term financing is in place
within one year. D.A. Davidson would have to charge some sort of fees. The interest rates would
be comparable at just over five, but D.A. Davidson may go as high as 6%.
A discussion ensued about the timeline for dropping SRF as an option. It was recommended that
if the SRF financing is not in place by August 1 that a task force meeting be held to discuss the next
course of action. In actuality, the City has limited risk up to that one year timeline and that would
be discussed at the meeting in August.
The options were reviewed and the general consensus was that option 2 was the only reasonable
alternative at this time. Miles motioned to recommend option 2 (interim financing) to the council
on June 2. Ken seconded. All were in favor.
Jason will get the interim financing option rolling with the bond counsel and INTERCAP program.
Meeting Adjourned