Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $7,720,000 OF NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF IMPROVING CITY-OWNED PROPERTY LOCATED AT 5810 HUDSON DRIVE BY CONSTRUCTING, FURNISHING, EQUIPPING AND OTHERWISE IMPROVING (i) A NEW SALT STORAGE FACILITY AND (ii) A NEW BUS MAINTENANCE AND STORAGE FACILITY AND CLEARING, IMPROVING AND EQUIPPING THE SITE.
Brief Description: This ordinance allows for the refinancing of existing financial obligations of the City. It allows for the sale of notes to finance the cost of the new bus garage and salt storage facility.
Body
Legislative History
17-135 - Resolution authorizing the City Manager to advertise for bids and enter into contract for construction of new Hudson City Schools bus garage facility and city salt storage structure.
17-193 - Ordinance authorizing issuance and sale of $500,000 of notes in anticipation of bonds for construction of salt storage facility and bus maintenance facility.
18-165 - Ordinance authorizing issuance and sale of $7,500,000 of notes in anticipation of bonds for construction of salt storage facility and bus maintenance facility.
19-155 - Ordinance authorizing issuance and sale of $7,725,000 of notes in anticipation of bonds for construction of salt storage facility and bus maintenance facility.
20-119 - Ordinance authorizing issuance and sale of $7,725,000 of notes in anticipation of bonds for construction of salt storage facility and bus maintenance facility.
Purpose & Explanation
The purpose of this ordinance is to allow the sale of notes to finance the construction of the new bus garage and salt storage facility. We intend to roll the notes into bonds as part of the Downtown Phase 2 project. The debt service payments for this project will come from proceeds from Tax Increment Financing (TIF) once Phase 2 is complete. The notes will be sold competitively.
Because the original $500,000 note was issued five years ago, we are required to pay it down by a minimum of 10% ($5,000). We will use $5,000 of the Downtown Phase 2 fund to pay down the note.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes [if so, explain why]
X No
Recommendation
Suggested Action
Staff recommends Council pass this ordinance to allow for timely sale of the notes.
Submitted by,
Thom Sheridan, City Manager
Jeff Knoblauch, Asst. City Manager/Finance Director