09-13-11 CSDS & Finance Committee MinutesJoint Community Services/Development Services and
Finance Committee Meeting
September 13, 2011
Elected Officials Present
Council Member Adrienne Fraley-Monillas, Chair
Council Member Diane Buckshnis
Council Member Lora Petso
The joint committee meeting convened at 6:00 p.m.
Staff Present
Phil Williams, Public Works Director
Jim Tarte, Interim Finance Director
Rob English, City Engineer
Sharon Cates, City Attorney
Stephen Clifton, Community Services and
Economic Development Director
Carrie Hite, Parks & Recreation Director
A. Discussion of Refunding and Issuing New Bonds
Alan Dashen and Scott Bauer, A. Dashen & Associates, provided a bond market update,
explaining rates have gone down since they spoke to the Council in February 2010. Mr. Bauer
reviewed the City's outstanding LTGO bonds, identifying bonds that are candidates for
refunding and the estimated savings via current refunding and advance refunding. Mr. Dashen
advised they are meeting with ECA Executive Director Joe Mclalwain later this week to discuss
the 2002 bonds that funded acquisition and renovation of the ECA.
Mr. Bauer reviewed outstanding Water & Sewer Revenue bonds and estimated savings via
current refunding and advance refunding. If the Water & Sewer Revenue bonds are refunded,
Mr. Williams suggested issuing bonds for new water, sewer and wastewater projects, funded by
the utilities, at the same time. He described approved rate increases and assumptions in the
rate study regarding issuance of debt.
Mr. Dashen described how bonds are sold, competitive sale versus negotiated sale, and the
ability for the Council to delegate authorization of bond documents.
Councilmember Petso requested staff consider extending the 2001 bond that funded park land
purchase to reduce the annual bond payment.
ACTION: Move to full Council, tentatively the September 27 meeting. Mr. Dashen to make
presentation to Council and staff to present draft ordinances to, 1) refund LTGO bonds and 2)
refund Water and Sewer Revenue bonds and issue new bonds for water, sewer, wastewater
projects.
B. Change Order Policy Discussion
Mr. Williams reviewed a draft change order policy, updated since first proposed at the August
23, 2011 City Council meeting. Councilmembers suggested several changes:
• Coordinate change order policy with Ordinance 3789
• Add language regarding cumulative change orders (paragraph 4)
• Have Council Committees review change orders
Page 1 of 2
September 13, 2011
Joint CSDS/Finance Committee Meeting
Involve the Council President along with Mayor in emergency change orders to provide
accountability to Council (paragraph 6)
Notify Council via email of Mayoral approval of change orders and request retroactive
formal approval at next Council meeting (paragraph 6)
Ensure language is suitably broad enough to allow adaptation to situations that arise in
the field (paragraph 6)
ACTION: Move to full Council.
C. Update on Interurban Trail
Mr. English summarized problems encountered on the Interurban Trail project that resulted in
change orders. He described an approximately $50,000 change order to improve the road
surface as well as address drainage issues on 74th Avenue. Change orders to date and this
change order do not exceeded the 10% contingency amount.
Mr. Williams commented on the effect the change order policy would have on this project.
ACTION: Move forward with chanae order and inform Council via email.
D. Report on Final Construction Costs and Approve Change Order No. 6 for the Lift
Station 7 & 8 Rehabilitation
Mr. English described the five previous change orders and Change Order #6, $70,215 for
removal of contaminated soil from Lift Station 7. With the addition of Change Order #6, the
change orders on this project will exceed the 10% contingency. Mr. Williams commented of the
$224,000 contingency, $190,000 was for change orders due to contaminated soil. Mr. Williams
requested approval of Change Order #6 and acceptance of the project as complete.
Mr. Williams commented on the effect the change order policy would have had on this project.
ACTION: Move to full Council.
Meeting adjourned at 7:33 p.m.
Page 2 of 2
September 13, 2011
Joint CSDS/Finance Committee Meeting