Dale Coulam stated that the City Council discussed this at the last Council meeting regarding how the City might finance the new City Hall. There had been prior mention of the City trying to find a way to finance the new City Hall using its own funds. That is no longer an option, particularly post COVID-19. That leaves two (2) scenarios: 1) the City finances $1 million on its own and pursues a loan for $3.5 million and; 2) if the City property closes on June 5, 2020, as scheduled, use all of the net proceeds of that sale, approximately $2.2 million, and obtain a loan for the balance. Lane Mecham indicated that if someone would like to make a public comment, there is a raised hand in the Zoom platform and one can click on that to make a comment. Board Member/Chair Hart opened the Public Hearing. Lane Mecham stated that there was one (1) hand raised and a comment was made by Michael Barton. Mr. Barton commented that given the status of the quarantine and COVID, he inquired if the City has looked at employees working from home. Board Member/Chair Hart indicated that there has been quite a lot of discussion regarding various scenarios and that will continue this evening. Michael Barton commented that there is an opportunity to do things differently and work a little smarter. Board Member/Chair Hart stated that was a good observation. There being no other attendees requesting to make a public comment. Board Member/Chair Hart closed the Public Hearing. Lane Mecham indicated that scenario two (2) would be where the City sells the property, uses the proceeds from the sell to finance a portion of the new City Hall and then requests a loan for the remaining $2.2 million dollars to finance the rest of the project. Board Member Mehr referred to the water fund and stated that through the eyes of a citizen, the water fund would be used to pay for water, the sewer fund would be used to pay for sewer, the storm fund would be used for storm drains and similar. He inquired what justification there was for using those funds to contribute to the new City Hall. Lane Mecham clarified that those funds are all directly related to Administrative Services and managed by Payroll, Human Resources, the City Attorney and similar so there is a direct correlation of the services and funds to use them for the new City Hall.
Board Member Elliott jointed the electronic meeting via the "Zoom" format at 5:07 p.m.
Lane Mecham referred to the language change in the agenda item of "up to" $3.5 million dollars, allowing the City to change the amount before the actual funding of the loan. Board Member Mehr inquired what the City's obligations were after they make application for the loan and it's approved. Lane Mecham clarified that the application does not lock them into the funding. The City would have to go before the CIB (Community Impact Board), obtain approval on the funds and then those funds have to be used for the new City Hall. There will be time between now and then for the Council to continue to discuss and analyze revenues. Board Member/Chair Hart commented that the application for the loan is due June 1, 2020 and the closing date for the sale of the property is not until June 5, 2020 after the application deadline. Board Member Mehr stated that he felt that the City should not proceed with building a new City Hall if the City does not sell the property. He was not in favor of incurring more debt and commented that if the loan was for the purpose of constructing City Hall, the amount the City should be applying for should not be $3.5 million dollars. The City should only be asking for the money necessary to cover the expense of building the new City Hall after the proceeds from the sale of the property have been applied. Board Member/Chair Hart indicated that would suggest that the City's application would be for $2.3 million and then to not proceed with the new City Hall if the City property is not sold. He requested that the other Board Members weigh in and if that should be discussed at this point in time. Dale Coulam stated that Board Member Mehr could decide what the application is going to be, make that motion and if the rest of the Governing Board Members agree, then there would be a motion to only allow an application for a loan of up to $2.3 million dollars but if the majority of the Board Members are okay with submitting an application for up to $3.5 million, knowing that amount can be reduced, altered or withdrawn, they could proceed with a motion for submitting an application of up to $3.5 million dollars. Applications are due June 1, 2020 and the closing on the City property is not until June 5, 2020. Until the net proceeds have been received, the City has to file an application that fits the amount of money that the City has. Board Member/Chair Hart indicated that an element that needs to be considered, is the fact that given the bidding environment due to the COVID pandemic, that will likely save the City a significant amount of money versus constructing a new City Hall post the COVID pandemic. Board Member Gordhammer stated that on the surface she agreed with Board Member Mehr and felt it would be hard to build a new City Hall if the City property doesn't sell but noted that it appeared that this discussion was about the loan amount and she was in favor of moving forward with an application of up to $3.5 million dollars, knowing that there will be a discussions before the City moves forward with a loan and takes the money. Board Member Johnson agreed. Board Member McDonald understood regarding why the City should apply for the full amount and the bidding environment, but his concern was making that much money available to the City and the City finding stuff to spend it on. Board Member Elliott agreed with Board Members Gordhammer and Johnson and indicated that the City should move forward with up applying for up to $3.5 million dollars for purpose of submitting the application.
MOTION: Governing Board Officer/Secretary and Treasurer Dennis Mehr moved for purposes of making application due to time of the closing of property and where the City has the opportunity to reduce, alter or revoke this application for the CIB, apply for a loan up to $2.5 million dollars to be applied towards the replacement City Hall
SECOND: Governing Board Officer Cheyne McDonald
VOTE: The motion failed.
| Governing Board Officer Cheyne McDonald |
AYE |
| Governing Board Officer/Secretary and Treasurer Dennis Mehr |
AYE |
| Governing Board Officer/Vice-Chair and Vice President Sue Gordhammer |
NAY |
| Governing Board Officer Jenny Johnson |
NAY |
| Governing Board Officer Miriah Elliott |
NAY |
Roll call vote. Board Members Mehr and McDonald voted in the affirmative. Board Members Gordhammer, Johnson and Elliott voted in opposition. The motion failed for lack of a majority vote.
MOTION: Governing Board Officer Miriah Elliott moved to approve submitting an application for a loan of up to $3.5 million dollars
SECOND: Governing Board Officer Jenny Johnson
VOTE: The motion carried.
| Governing Board Officer/Vice-Chair and Vice President Sue Gordhammer |
AYE |
| Governing Board Officer Jenny Johnson |
AYE |
| Governing Board Officer Miriah Elliott |
AYE |
| Governing Board Officer Cheyne McDonald |
NAY |
| Governing Board Officer/Secretary and Treasurer Dennis Mehr |
NAY |
Roll call vote. Board Members Gordhammer, Johnson and Elliott voted in the affirmative. Board Members Mehr and McDonald voted in opposition. The motion carried three (3) to two (2).