Loading...
Minutes - 2002 - City Council - 05/30/2002 - SpecialORIGINAL EAGLE CITY COUNCIL Special Meeting Minutes May 30, 2002 1. CALL TO ORDER: Mayor calls the meeting to order at 4:45 p.m. 2. ROLL CALL: MERRILL, BASTIAN, SEDLACEK, GUERBER. Bastian is absent. A quorum is present. Merrill moves to amend the Agenda by adding as Item gE. Design Review Appointment and an Executive Session for acquisition of property. Seconded by Guerber. Mayor moves to amend the Agenda by adding as Item #F. Discussion of the Promise Fellow Grant. Seconded by Guerber. ALL AYE: BOTH MOTIONS CARRY ........................... 3. ZGA will give an update on the new city hall pro. iect. (4:30- 5:30) Cathy Sewel and Tom Zabala present a massy model of the city hall and discuss the roof architecture. Discussion on general architecture of the building. Discussion on the window design and the materials. Council Member Bastian is present at 5:05 p.m. Further discussion on the colors and materials for the building. ZGA would like to submit to Design Review as soon as possible in June. ZGA will meet with the City Council on June 11, 2002 at 5:00 p.m. 4. City Hall Pro,iect: Bud Way with Wells Fargo will discuss financing. Mayor introduces the issue. City Attorney Buxton: I'm asking you to amend the agenda to add as an executive session item pending and threatened litigation. Merrill moves to amend the agenda and add pending and threatened litigation to the Executive Session. Seconded by Guerber. ALL AYE: MOTION CARRIES .................... Bud Way, Wells Fargo, discusses the financing of the new city hall. The City will need $350,000 a year over an 18 year period of time to finance the project. Recommends doing a repricing in five years. The principal sum for the new city hall is $4.2 Million dollars. I need to firm the principal amount tonight. Discussion on marketing and repricing. General discussion. Mike Moore, City Attorney: This is a straight lease/purchase. The structure that Bud is talking about is doable. Repricing in five years could possibly raise the lease purchase cost each year. There is an interest rate risk on the five year repricing. General discussion. City Attorney Buxton: We won't be able to act on the Resolution tonight. We need to have a final number determined tonight. Merrill moves to authorize the fiscal agent for the City to negotiate a lease purchase agreement up to $4.3 Million Dollars. Seconded by Bastian. Bastian: AYE; Merrill: AYE; Sedlacek: AYE; Guerber: AYE: ALL AYE: MOTION CARRIES ................ Guerber: I would like to have verification from our attorneys that the process we are going through is a legal and appropriate process. People in the community have told me that because we are not going to a vote that the lease purchase is not appropriate or legal within the guidelines of the State. City Attorney Moore: The City would only be obligated for one year at a time. The City has the right to appropriate or not appropriate in some future year. I think this is perfectly legal. There are several decisions by District Courts around the state have held that this is a legal process. This is how the County is paying for the Courthouse. This has been upheld by the District Court to be valid. The Idaho Supreme Court has never ruled on a lease/option purchase agreement. For that reason the opinion that we are going to give on this is going to say that our opinion is qualified to the extent that we must note that the Idaho Supreme Court has never ruled on this. Nevertheless, a number of District Court decisions have upheld this manner of financing and legally a sound and meritorious argument can be made in favor of this. General discussion. A. Resolution 02-08: A Resolution Of The City Of Eagle, Ada County, Idaho, Approving The Execution Of A Municipal Lease Pumhase Agreement And An Assignment Of Option Agreement, Between The City Of Eagle And Wells Fargo Brokerage Services, LLC; Authorizing The Mayor And City Clerk To Execute And Attest The Municipal Lease Purchase Agreement And The Assignment Of Option Agreement; And Providing An Effective Date. (SEB) Merrill moves to continue Resolution 02-08 to the June 11, 2002, City Council meeting. Seconded by Sedlacek. ALL AYE: MOTION CARRIES .......... Merrill moves to go into executive session for the discussion of property acquisition and pending and threatened litigation. Seconded by Guerber. Discussion. Merrill withdraws the motion. Second concurs. City Attorney Buxton: Ail water items are executive session items except the Master Plan and Budget Study. Mayor: lets take care of the other agenda items before the water issues. E. Design Review Appointment. Merrill moves to approve Mike Stanger to the Design Review Board. Seconded by Bastian. Discussion. ALL AYE: MOTION CARRIES ................. Merrill moves to send Daniel Howard a thank you letter for serving on the Design Review Board. Seconded by Guerber. ALL AYE: MOTION CARRIES ................ F. Promise Fellow Grant. Mayor: We have an opportunity for an asset builder to work in Eagle part time in conjunction with the YMCA. The YMCA will provide the office space and supervision responsibility. The cost would be split between the YMCA and the City. The application needs to be signed tomorrow. General discussion. The City'YMCA may or may not get the grant. Council Member Sedlacek and Bastian have some concerns about not having enough information about the grant and the agreement with the YMCA. General discussion. Merrill moves to authorize the grant application for the promise fellow/asset builder program in conjunction with the Association of Idaho City. Seconded by Guerber. Discussion. THREE AYES: ONE NAY: MOTION CARRIES ................ 5. Discussion Items: B. Master Plan and Budget Study (Holladay Engineering) 1. Inventory/Needs 2. Expenses a. Capital Repair and Replacement b. Depreciation Veto Brewer and Ken Rice, Holladay Engineering, provides Council with an overview of the Master Plan and Budget Study. Displays a well location map. General discussion. Mayor calls a recess at 7:25 p.m. Mayor reconvenes at 7:35 p.m. 6. EXECUTIVE SESSION - ACQUISITION OF PROPERTY AND PENDING AND THREATENED LITIGATION. Bastian moves to go into Executive Session for pending and threatened litigation and acquisition of property. Seconded by Sedlacek. Bastian: AYE; Merrill: AYE; Sedlacek: AYE; Guerber: AYE: ALL AYE: MOTION CARRIES ................ Council discusses pending and threatened litigation and acquisition of property in executive session. Council leaves Executive Session. Sedlacek moves to authorize legal counsel to draft a letter to United Water requesting a renegotlated contract and to include a proposed contract to start the negotiation process. Seconded by Merrill. ALL AYE: MOTION CARRIES .................. Bastian moves to authorize legal counsel to make an offer to the Chase Family to mitigate the domestic well as outlined in a document dated 5/30/02 regarding the Brookwood Well/Chase Protest and that we mitigate the large irrigation well as outlined in that document and we do not mitigate the small irrigation well nor do we agree to any of the remaining issues and Chase demands except the City agrees to reimburse the Chase Family for one-half of the attorney's fees not to exceed $7,500. Seconded by Merrill. Discussion. ALL AYE: MOTION CARRIES ................ Merrill moves to authorize the Council President to present an offer to purchase property not to exceed $5,000 per acre to the ACHD Commissioners. Seconded by Bastian. ALL AYE: MOTION CARRIES ................... 7. ADJOURNMENT: Guerber moves to adjourn. Seconded by Bastian. ALL AYE: MOTION CARRIES... Hearing no further business, the Council meeting adjourned at 11:00 pm. ?~ectfully submitted: SHARON K. MOORE CITY CLERK/TREASURER APPRO'~ED: RICK YZA~JIIt[RE, MAYOR