FM102202
FINANCE COMMITTEE - CITY OF MUSKEGO Approved
MINUTES OF MEETING HELD TUESDAY, OCTOBER 22, 2002
The meeting was called to order at 7:21 pm by Mayor Slocomb with Committee Members Ald.
Petfalski and Salentine present. Ald. Sanders was absent. Also present were Ald. Damaske,
Le Doux, Madden and Patterson as well as Clerk-Treasurer Marenda, Finance Director
Gunderson, Dave Anderson of Ehlers, and Atty. Feeley. Those present recited the Pledge of
Allegiance.
The Mayor stated the meeting was noticed in accordance with the Open Meeting Law.
APPROVAL OF MINUTES
Ald. Salentine moved to approve the minutes of the meeting held October 16, 2002. Ald.
Petfalski seconded; motion carried.
NEW BUSINESS
1. Review Request to Amend Industrial Development Revenue Bond Finance on Behalf
of Mick Properties, LLC/A.G. Industries, Inc.
Atty. Dave Schultz representing A.G. Industries, Inc. was present. For cash flow reasons, the
company is requesting to amend the amortization of the industrial development revenue bond
financing, which was issued in 1996. The maturity date will not change, only the amortization,
which will be converted to 15-year straight line. The Finance Director noted that the original
issue amount was $1.7 million and the outstanding principle is approximately $935,000. Ald.
Petfalski moved to recommend approval of the amendment. Ald. Salentine seconded; motion
carried.
Discuss Possible Change to Quietwood Creek Subdivider’s Agreement
Mayor Slocomb stated the issue relates to the timing for the bike path installation. The
agreement requires installation of the path at the same time as the final lift of asphalt. The
final asphalt will be installed this week; however, the path will not be able to be completed this
year. The Public Works Committee recommended an extension until July 1, 2003. Ald.
Petfalski moved to recommend approval of the amendment to July 1, 2003. Ald. Salentine
seconded; motion carried. The Mayor stated that the developer has agreed to extend the
Letter of Credit. Mr. Turk clarified that Sections IV, X and XVI will need to be amended. The
specific language should be reviewed by legal counsel and then approved by the Common
Council. Motion to recommend approval of the amendment carried.
Review Initial Borrowing Resolutions
Finance Director Gunderson presented an overview of the proposed borrowings to finance the
City’s 2003 capital projects. The necessary resolutions are on the Council agenda. The dollar
amounts have been reviewed during the budget process; however, a modification was made to
include funds for the proposed athletic field project that the City is reviewing with the school
district. Mr. Anderson distributed preliminary financing information regarding the general
obligation bonds in the amount of $4,100,000 and the general obligation promissory notes in
the amount of $1,850,000. The projects to be financed by bonds must be identified for specific
purposes and are generally for long-term projects. Funding for the proposed athletic field
project has been included in the general obligation note category and could be used for
another purpose if something changed. Interest rates are at all time lows. There are different
rules if the City borrows under $5 million and under $10 million per year. The outcome of the
advisory referendum will determine if the City will borrow both the notes and bonds this year.
Ald. Salentine moved to recommend approval. Ald. Petfalski seconded; motion carried. Mr.
Anderson was dismissed.
Finance Committee Minutes Page 2
10/22/2002
MAINTENANCE AGREEMENTS
Election Systems & Software - One Tabulator
Clerk-Treasurer Marenda was present to respond to any questions regarding the maintenance
agreement for the spare election tabulator, which was purchased last year. The warranty
expired this fall and the City was billed for maintenance on the equipment for the remainder of
the year. The agreement will cover the tabulator for a 12-month period beginning January 1,
2003 at a cost of $264. Ald. Petfalski moved to approve. Ald. Salentine seconded; motion
carried.
Library Copier for Public Use
Ald. Salentine moved to approve annual maintenance agreement for the library copier
pursuant to request of Director Sanhuber in the amount of $44.43/month. The current cost is
$42.35 per month. This is the copier used by the public. Ald. Petfalski seconded; motion
carried.
VOUCHER APPROVAL
Ald. Petfalski moved to recommend approval of payment of General Vouchers in the amount
of $1,411,680.30 and Utility Vouchers in the amount of $274,540.86. Ald. Salentine
seconded; motion carried.
ADJOURNMENT
Ald. Petfalski moved to adjourn at 7:45 pm. Ald. Salentine seconded; motion carried.
Respectfully submitted,
Jill Blenski, CMC
Deputy Clerk