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It is 7:04 PM so we will get
our town of Frederick Board

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of Trustees meeting going.

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Would you please take
the roll for us, Trish.

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Mayor Crites, present.

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Trustee Mahan, here.

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Trustee TeVelde, here.

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Trustee March, here.

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Trustee Lamach.

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Mayor Pro Brown, present

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Trustee

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Padia, here.

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Mayor, you have quorum.

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Wonderful. Thank you.

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All right, let's stand and
join each other in the Pledge

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of Allegiance, please.

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I pledge allegiance to the flag
of the United States of America

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and to the Republic
for which it stands.

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One nation under
God, indivisible,

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with liberty and
justice for all.

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Thank you.

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All right.

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Do we have any changes
to our agenda tonight.

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No changes.

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Mayor no changes and no
special presentations.

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Correct? Correct.

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All right.

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Thank you.

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We'll move into
our public comment.

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This portion of our
agenda is provided

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to allow members of our
audience to provide comments

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to the Board of Trustees.

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Please sign in and
you will be called.

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If your comments
or concerns require

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an action on that item, or items
will be moved to a later agenda.

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Please limit the time of your
comments to three minutes.

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No sign-ups tonight.

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Thank you.

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So we'll move swiftly
into our staff reports.

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We've got Bryan's
town manager report.

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Any questions.

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Comments Bryan, would you like
to share anything regarding

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your town manager report.

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Yes I'm mayor.

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Members of the board.

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Just a couple of items.

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On the report.

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The first one is, we do
have for the scholarship,

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the school is putting
on, and it's

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a little bit
different this year.

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But it's a wonderful
opportunity.

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On April 30, it's a dinner
at 6 o'clock PM, I know.

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Emily sent out an email.

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Just send, if you're
available to go,

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that would be great,
and we'll make sure

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that you're registered for it.

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We will have town
representation there,

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so we'll certainly represent
Frederick in support of the kids

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for Frederick high school.

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That's on April
30 at 6PM.

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The other key item
is we are in, I think

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this is the fourth
round, on Thursday

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of Public Works/Engineering
Director interviews.

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Certainly, I know Mayor is
going to be able to help

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out a little bit with that.

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The team has vetted
four strong finalists.

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We had HR Advantage do
a head hunt on this.

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And so we've got four
finalists that all have PEs.

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So we're pretty excited.

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And we'll run them through
the gauntlet on Thursday

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as vetting it out
with the organization-

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a huge step forward.

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And hopefully we have some
good news in the next couple

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of weeks in regards to that.

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And then the final
item is just an item

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that's in the Admin Report.

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Just some great work that was
done with the Police Department

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in solving a murder case, as
mentioned in communications,

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that happened,

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I think it was about 15-
plus years ago, 2007.

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Yeah, so that was a
really cool thing.

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We applaud the team
for the great work

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that they had done on that
and bringing some resolution

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to that which was powerful.

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So grateful for them.

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With that, I'm happy
to take any questions.

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Questions for Bryan?

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Very helpful report.

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Thank you.

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Appreciate that.

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No other questions.

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All right.

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We'll move into
our consent agenda.

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Our consent agenda items
are considered to be routine

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and will be enacted by
one motion and vote.

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There will be no separate
discussion of our consent agenda

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items unless a board member.

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So requests, in
which case that item

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will be removed from
the consent agenda

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and considered at the end
of the consent agenda.

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You have three items under
consideration tonight.

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Would anyone like to remove
any or provide some direction

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on our consent agenda, please.

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Madam Mayor, I move that
we approve the consent

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agenda as presented.

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Second Motion and a second.

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Thank you, Trustee Mahan.

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Yes trustee

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TeVelde yes.

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Trustee March.

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Yes Mayor Pro Brown.

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Yes trustee.

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Padia yes.

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Motion passes 5 to 0.

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Thank you.

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All right.

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We have one action agenda
item, ordinance number 1404,

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for clarity tonight.

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Is this just a reading or
are you looking for direction

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from the board this evening.

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So this would be direction on
first reading for the board

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this evening.

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OK thank you.

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And Mayor, to introduce this
Item, for the first reading

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for the execution of
the delivery of a site

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lease or lease purchase
agreement, for the certificate

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purchase agreement authorizing
the sale of certificate

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of participation.

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This is something that as part
of the great work that the team

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has done over the
last two years in

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regards to the public
works facility,

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we had an update at the last,

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I think it was in last month's
board meeting on the project.

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This is just the financing
mechanism of how we're

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going to proceed with that.

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I want to introduce just
a couple of team members.

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First, Kurtis Adams, who's
our Finance Director.

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I know Anthony Bixby is here.

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They'll be key team
members and helping

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us continually move this project
forward from the town side.

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And then obviously we have
Maddie from Hilltop Securities,

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who's a senior vice president.

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That's just going to run through
a quick, short presentation.

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Just in general, from
the understanding

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of what a certificate
of participation is.

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And then certainly if
there's any questions

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in relation to that, we're
happy to answer that.

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Maddie.

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Thank you.

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Good evening.

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Thank you for having me.

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So yes, as Bryan just
mentioned, I'm just going

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to I have a few slides here.

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I'm not going to
read them in detail,

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but just to provide a bit of
information about what a COP is,

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what we're doing here, and then
a little bit of a market update.

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Although I did this like
a week and a half ago.

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And as if anybody
that's been paying

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attention to the market over
the last week, it has changed.

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So what I am going to talk
about a little bit today

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is the overview of
your finance team.

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You've brought in
several consultants

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to help get this
across the finish line.

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A high level overview of what
the legal structure is here.

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A brief description of
the authorizing ordinance.

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I know it's a lot of
words, but some of the key

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highlights of what we
deem to be relevant

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and what you all should
probably be caring about.

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And then big picture financing
timeline and that market update.

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So for a financing team
perspective, the town hired us,

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I think, a year or so ago.

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As you all were starting to
go down this path of getting

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ready to finance this
project, Hilltop Security

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serves as the town's
municipal advisor.

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We have a fiduciary
duty to the town

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and are required to act
in your best interest.

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So we essentially help
guide the transaction along

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and oversee the issuance
and pricing process.

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Kutak rock is serving as
Bond and disclosure counsel.

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You have a representative
here this evening.

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They are the ones that got to
draft those lovely documents

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that are in front of
you and will obviously

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be giving legal
opinions as it relates

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to the issuance of the COPs.

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Stifel was selected
through a brief RFP process

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to serve as underwriter
for this transaction.

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They are locally
based in Denver,

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and I know I believe actually,
Alan had been up here previously

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to help through thinking through
some capital needs of the town.

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And then UMB bank as
trustee, which is

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more so important in the
legal structure of things.

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But they operate more
so behind the scenes.

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So there's a lot
of words on here.

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But the big picture
perspective is

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that COPs are a very common
financing technique or tool used

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by Colorado local governments.

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It's essentially creating
a lease structure

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by which a property
that you already

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own or are going to build
is leased to a trustee.

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And then you are
leasing it back.

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Your annual payments, which
loosely are called debt service,

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but we legally would like to
call them base rental payments

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are subject to
annual appropriation

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that you're making as part
of your budget process.

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From a TABOR
perspective, it is not

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00:08:36,020 --> 00:08:38,600
considered a multi fiscal
year obligation because

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of that annual
appropriation nature

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rather than a revenue pledge.

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After going through that
slide a number of times

216
00:08:46,280 --> 00:08:48,230
with many different
organizations,

217
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I decided that a picture was a
little bit easier to understand

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what's happening here.

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So that building in the middle,
although it looks like a school,

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it says government
on it, I promise.

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00:08:57,390 --> 00:09:01,230
So that is meant to represent
your leased property.

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00:09:01,230 --> 00:09:03,560
So in this instance that
would to be constructed

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00:09:03,560 --> 00:09:05,720
public works facility.

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00:09:05,720 --> 00:09:08,850
You are leasing
that to the trustee.

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00:09:08,850 --> 00:09:11,390
They are giving you an upfront
payment, which in this instance

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is your project fund.

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00:09:12,690 --> 00:09:15,710
So our targeted $46
million of proceeds.

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And then you are leasing
it back from them.

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00:09:18,000 --> 00:09:19,790
And those annual
base rental payments

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are then what goes to
certificate holders

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to repay that obligation.

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00:09:23,640 --> 00:09:25,430
So that's essentially
what's represented

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00:09:25,430 --> 00:09:30,390
there but described on the prior
slide. Bit of the credit detail,

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So from a lease
property perspective

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00:09:32,210 --> 00:09:35,690
you're not required to use
the project that you are

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00:09:35,690 --> 00:09:36,840
building as the lease property.

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00:09:36,840 --> 00:09:40,290
You can use an alternate
project or alternate facility.

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00:09:40,290 --> 00:09:42,590
That said, in this instance,
it works very well because we'd

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00:09:42,590 --> 00:09:45,200
like to find something that's
approximately equal in value

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00:09:45,200 --> 00:09:46,290
of what you're borrowing.

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00:09:46,290 --> 00:09:48,890
And if it's $46 million
that we're borrowing

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and that's how much it
costs to build the facility.

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00:09:50,810 --> 00:09:53,150
That's a pretty good
one to one ratio,

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00:09:53,150 --> 00:09:56,650
but we can look alternatively,
and other entities

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00:09:56,650 --> 00:10:00,800
do so from time to time
from a perspective.

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00:10:00,800 --> 00:10:03,130
These will be rated, so
we expect them to have

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00:10:03,130 --> 00:10:05,530
an investment grade rating.

248
00:10:05,530 --> 00:10:09,250
We will be using standard
and Poor's or S&P for rating

249
00:10:09,250 --> 00:10:10,780
of these certificates.

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00:10:10,780 --> 00:10:13,540
Typically, they will
do their analysis

251
00:10:13,540 --> 00:10:16,360
and they'll assign you
essentially an issuer credit

252
00:10:16,360 --> 00:10:19,360
rating, which is the equivalent
of a general obligation bond

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00:10:19,360 --> 00:10:20,000
rating.

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00:10:20,000 --> 00:10:22,790
And then our COP rating
is one notch below that.

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00:10:22,790 --> 00:10:25,150
But so as an example,
if your issuer

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00:10:25,150 --> 00:10:27,670
credit rating or
rating is AA, then

257
00:10:27,670 --> 00:10:29,900
your COP rating is AA minus.

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00:10:29,900 --> 00:10:32,590
That obviously does result in
a slightly higher interest rate

259
00:10:32,590 --> 00:10:36,290
than if you're at the
AA and the AA rating.

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00:10:36,290 --> 00:10:38,020
But usually we say
it's about five

261
00:10:38,020 --> 00:10:39,800
basis points for every notch.

262
00:10:39,800 --> 00:10:42,100
So in the grand scheme of
things, actually relatively

263
00:10:42,100 --> 00:10:44,900
immaterial your actual
cost of the project.

264
00:10:44,900 --> 00:10:48,730
And obviously given what's
happening currently and as far

265
00:10:48,730 --> 00:10:51,490
as tariffs or inflation, those
are actually much more impactful

266
00:10:51,490 --> 00:10:54,910
to your overall repayment
and borrowing costs

267
00:10:54,910 --> 00:10:58,210
than your credit rating.

268
00:10:58,210 --> 00:11:00,640
So this evening you are
considering on first reading

269
00:11:00,640 --> 00:11:03,550
the authorizing ordinance,
which is what actually gives

270
00:11:03,550 --> 00:11:06,430
the permission for
the town to go execute

271
00:11:06,430 --> 00:11:07,960
the certificates
of participation

272
00:11:07,960 --> 00:11:10,930
so long as we stay within a box.

273
00:11:10,930 --> 00:11:12,920
And that's what those
parameters create is.

274
00:11:12,920 --> 00:11:15,620
So as long as we're able
to meet those parameters,

275
00:11:15,620 --> 00:11:17,260
then that gives
the authorization

276
00:11:17,260 --> 00:11:20,920
to the designated officials
to issue the COP essentially

277
00:11:20,920 --> 00:11:22,570
on behalf of the town.

278
00:11:22,570 --> 00:11:24,760
In addition to that
ordinance, you also

279
00:11:24,760 --> 00:11:26,020
have several other
documents that

280
00:11:26,020 --> 00:11:28,090
are being approved as
to form that again, just

281
00:11:28,090 --> 00:11:30,340
create that legal structure.

282
00:11:30,340 --> 00:11:32,080
You have several attorneys
in the room that can

283
00:11:32,080 --> 00:11:33,320
speak to that in more detail.

284
00:11:33,320 --> 00:11:35,360
So I will not bore
you with that,

285
00:11:35,360 --> 00:11:37,120
but you feel free
to ask questions.

286
00:11:37,120 --> 00:11:39,770
And then the other piece is the
preliminary official statement,

287
00:11:39,770 --> 00:11:41,650
that is the disclosure
document that

288
00:11:41,650 --> 00:11:44,620
will be used by Stifel to
go market these certificates

289
00:11:44,620 --> 00:11:46,010
to investors.

290
00:11:46,010 --> 00:11:48,540
And that really just has a lot
of information about the town.

291
00:11:48,540 --> 00:11:52,290
So your financials, historical
operations, revenues,

292
00:11:52,290 --> 00:11:54,620
fund balances, et
cetera to really paint

293
00:11:54,620 --> 00:11:57,390
the rosiest picture, so
to speak, of the town,

294
00:11:57,390 --> 00:11:59,930
to then be able to
communicate the credit

295
00:11:59,930 --> 00:12:02,030
worthiness of the town
to potential investors

296
00:12:02,030 --> 00:12:03,130
that would buy those COPs.

297
00:12:03,130 --> 00:12:06,110


298
00:12:06,110 --> 00:12:08,750
And this next slide, we
just have the parameters

299
00:12:08,750 --> 00:12:10,520
which are again,
the important piece

300
00:12:10,520 --> 00:12:12,690
here from the box perspective.

301
00:12:12,690 --> 00:12:16,310
So we're essentially saying
that the term of the COPs

302
00:12:16,310 --> 00:12:20,390
shall not be longer than
it's technically 29 years as

303
00:12:20,390 --> 00:12:23,060
opposed to 30 just because
of some legal requirements

304
00:12:23,060 --> 00:12:23,970
within statute.

305
00:12:23,970 --> 00:12:27,620
So essentially the final
maturity potentially here

306
00:12:27,620 --> 00:12:32,840
would be in 2054 that an up
front payment from the trustee

307
00:12:32,840 --> 00:12:35,100
shall not be less
than $46 million.

308
00:12:35,100 --> 00:12:36,210
So that's your project fund.

309
00:12:36,210 --> 00:12:38,300
So we're making sure that
you're getting exactly what

310
00:12:38,300 --> 00:12:40,310
you need to build the facility.

311
00:12:40,310 --> 00:12:42,350
Our maximum annual
repayment amount

312
00:12:42,350 --> 00:12:46,450
is we're capping that
at $4 million per year,

313
00:12:46,450 --> 00:12:48,810
and then our maximum principal
amount of COPs that you're

314
00:12:48,810 --> 00:12:50,230
issuing is 47 million.

315
00:12:50,230 --> 00:12:53,040
The difference
between the 46 and 47

316
00:12:53,040 --> 00:12:54,780
has to do with other
cost of issuance

317
00:12:54,780 --> 00:12:57,790
and things, in addition to
that 46 million project fund.

318
00:12:57,790 --> 00:13:00,133
We actually expect those to
be far less than $1 million,

319
00:13:00,133 --> 00:13:01,800
but we'd just like to have
a little bit of cushion

320
00:13:01,800 --> 00:13:05,700
depending on how market changes.

321
00:13:05,700 --> 00:13:08,620
So next steps obviously
starting at the top,

322
00:13:08,620 --> 00:13:11,710
we are here in front of you all
this evening for first reading.

323
00:13:11,710 --> 00:13:14,860
This will be considered your
next meeting on second reading.

324
00:13:14,860 --> 00:13:18,190
And then we'll really go
through the heavy lift,

325
00:13:18,190 --> 00:13:20,310
I guess I'd say of
the financing process

326
00:13:20,310 --> 00:13:22,030
as far as town staff time.

327
00:13:22,030 --> 00:13:26,340
So we'll have that rating call
with S&P. We'll be working

328
00:13:26,340 --> 00:13:28,800
with Stigel and Kutak to
finalize that disclosure

329
00:13:28,800 --> 00:13:31,380
document, the preliminary
official statement,

330
00:13:31,380 --> 00:13:35,190
and get that ready to post
and allow Stifel to go market

331
00:13:35,190 --> 00:13:37,000
the transaction to investors.

332
00:13:37,000 --> 00:13:39,450
We're currently targeting
a pricing date of May 28

333
00:13:39,450 --> 00:13:41,160
and closing on June 10.

334
00:13:41,160 --> 00:13:43,750
That said, this is
not set in stone,

335
00:13:43,750 --> 00:13:47,100
and the same is true for
the authorizing ordinance.

336
00:13:47,100 --> 00:13:49,210
It is allowing you to do so.

337
00:13:49,210 --> 00:13:50,800
It's not requiring you to do so.

338
00:13:50,800 --> 00:13:54,900
So obviously, as things
change and market volatility

339
00:13:54,900 --> 00:13:57,570
depending if it calms
down or continues,

340
00:13:57,570 --> 00:14:00,330
we are not obligated to
stay on this timeline.

341
00:14:00,330 --> 00:14:03,040
The ordinance does
allow for reimbursement.

342
00:14:03,040 --> 00:14:06,310
So if the town needed to
proceed with the project,

343
00:14:06,310 --> 00:14:08,970
but we were not in a place
to issue certificates yet,

344
00:14:08,970 --> 00:14:11,190
you can use available
funds of the town

345
00:14:11,190 --> 00:14:13,980
and then reimburse yourself
with proceeds once we actually

346
00:14:13,980 --> 00:14:15,050
go to do that issuance.

347
00:14:15,050 --> 00:14:17,730


348
00:14:17,730 --> 00:14:19,900
And then sitting here
where we are today.

349
00:14:19,900 --> 00:14:23,220
So I think we're still working
through the actual term

350
00:14:23,220 --> 00:14:24,550
of the financing with the town.

351
00:14:24,550 --> 00:14:27,960
The parameters were built to
give you flexibility to do up

352
00:14:27,960 --> 00:14:31,440
to that 29 year term,
but also potentially

353
00:14:31,440 --> 00:14:33,220
as short as a 20 year term.

354
00:14:33,220 --> 00:14:35,490
Obviously, this is
a long term facility

355
00:14:35,490 --> 00:14:38,730
that you're constructing
that has a long, useful life.

356
00:14:38,730 --> 00:14:42,330
It really usually comes down to
a budgetary perspective of what

357
00:14:42,330 --> 00:14:44,690
that annual payment
needs to look like,

358
00:14:44,690 --> 00:14:46,410
so we'll continue to
work through that.

359
00:14:46,410 --> 00:14:48,510
That's not something that
needs to be decided today.

360
00:14:48,510 --> 00:14:51,630
We'll continue to evaluate that
as the market moves forward.

361
00:14:51,630 --> 00:14:55,790
I will note that interest
rates from this date

362
00:14:55,790 --> 00:14:59,690
are up about 25 basis
points just given,

363
00:14:59,690 --> 00:15:02,780
rates went down last
week and now are back up

364
00:15:02,780 --> 00:15:06,710
over these last two trading
days and hopefully reach

365
00:15:06,710 --> 00:15:09,630
some consensus here
moving forward.

366
00:15:09,630 --> 00:15:10,560
It's been a little hectic.

367
00:15:10,560 --> 00:15:15,150
So we are anticipating a rating
of AA minus for these cops.

368
00:15:15,150 --> 00:15:18,870
So essentially an issuer credit
rating or a rating of AA.

369
00:15:18,870 --> 00:15:21,230
The town does have
sales tax bonds

370
00:15:21,230 --> 00:15:22,880
outstanding that
are rated by S&P

371
00:15:22,880 --> 00:15:26,570
and are rated at
that AA category.

372
00:15:26,570 --> 00:15:31,080
And then these COPs will have a
call date, unlike your mortgage,

373
00:15:31,080 --> 00:15:33,140
where you can go back
to a bank and refinance

374
00:15:33,140 --> 00:15:34,670
at any point in time.

375
00:15:34,670 --> 00:15:38,180
Municipal bonds are typically
issued with essentially a 10

376
00:15:38,180 --> 00:15:42,380
year lock out provision where
you can't refund in that period

377
00:15:42,380 --> 00:15:45,530
or refinance or prepay, but
any time on or after that date

378
00:15:45,530 --> 00:15:46,350
you can do so.

379
00:15:46,350 --> 00:15:49,740
And so that will be structured
into this transaction.

380
00:15:49,740 --> 00:15:51,830
So that hopefully 10 years
from now interest rates

381
00:15:51,830 --> 00:15:54,020
are lower or potentially
you've accumulated some cash

382
00:15:54,020 --> 00:15:57,715
to be able to pay off
or refinance these COPs.

383
00:15:57,715 --> 00:16:01,760


384
00:16:01,760 --> 00:16:02,700
I think that's it.

385
00:16:02,700 --> 00:16:04,286
Yes any questions.

386
00:16:04,286 --> 00:16:10,790


387
00:16:10,790 --> 00:16:13,320
I mean, I have a question
for Kurtis most likely,

388
00:16:13,320 --> 00:16:18,830
but just on what we're thinking
on the rate on the was it

389
00:16:18,830 --> 00:16:20,937
4.65 or 4.95.

390
00:16:20,937 --> 00:16:21,570
Is that what I saw.

391
00:16:21,570 --> 00:16:22,140
Oh the.

392
00:16:22,140 --> 00:16:23,220
Yes our current.

393
00:16:23,220 --> 00:16:24,870
Yes So yes.

394
00:16:24,870 --> 00:16:29,600
So the currently are the 20
year option here is at a 450

395
00:16:29,600 --> 00:16:31,790
basically that on the left.

396
00:16:31,790 --> 00:16:33,270
Our option on the right.

397
00:16:33,270 --> 00:16:35,640
That 465 is that 29 year term.

398
00:16:35,640 --> 00:16:39,150
So the difference of that final
maturity between 2045 and 54.

399
00:16:39,150 --> 00:16:40,920
Those are not our only options.

400
00:16:40,920 --> 00:16:43,440
You really can do
anything in between there.

401
00:16:43,440 --> 00:16:46,310
But obviously you can see it
impacts that annual payment

402
00:16:46,310 --> 00:16:49,430
at roughly 3.5 million
on the shorter term

403
00:16:49,430 --> 00:16:53,750
that a 20 year term and then
a little under 3 million

404
00:16:53,750 --> 00:16:55,760
under the longer term,
but obviously then costs

405
00:16:55,760 --> 00:16:57,840
you more money in the long run.

406
00:16:57,840 --> 00:17:00,620
So we have not had
any conversations yet

407
00:17:00,620 --> 00:17:02,640
with the town about preference.

408
00:17:02,640 --> 00:17:04,650
We're just leaving
the options open.

409
00:17:04,650 --> 00:17:08,119
But I don't know if Kurtis
has anything he wants to add.

410
00:17:08,119 --> 00:17:11,089
Yeah, I would say just kind
of recently being looped

411
00:17:11,089 --> 00:17:14,000
into this overall project.

412
00:17:14,000 --> 00:17:19,400
My suggestion is that with Bryan
and any other senior leadership

413
00:17:19,400 --> 00:17:24,170
members, have a
discussion as to what

414
00:17:24,170 --> 00:17:29,810
the current operational
load of the general fund.

415
00:17:29,810 --> 00:17:33,900
I'm going to suggest more
in line with the option two.

416
00:17:33,900 --> 00:17:36,990
I know that's a slightly
higher interest rate,

417
00:17:36,990 --> 00:17:41,840
but in light of the general
FTE growth of the town.

418
00:17:41,840 --> 00:17:43,520
That's going to
be my suggestion,

419
00:17:43,520 --> 00:17:46,780
but I want to have those
necessary conversations with

420
00:17:46,780 --> 00:17:48,320
Bryan and Maddie and teams.

421
00:17:48,320 --> 00:17:50,170
Yeah I appreciate that.

422
00:17:50,170 --> 00:17:52,540
Well, I think we've
talked about maybe

423
00:17:52,540 --> 00:17:57,520
this is part of our
retreat is just overall how

424
00:17:57,520 --> 00:18:01,760
many large financing projects we
have over the next 20, 30 years.

425
00:18:01,760 --> 00:18:05,150
And we really need to have that
as a more holistic conversation.

426
00:18:05,150 --> 00:18:06,880
This is an important piece.

427
00:18:06,880 --> 00:18:11,410
But I don't think we can pick
option 1, 2, 3, 4, 5, 6 until we

428
00:18:11,410 --> 00:18:14,200
understand the brevity of all
of the financial components

429
00:18:14,200 --> 00:18:15,050
that we're considering.

430
00:18:15,050 --> 00:18:18,170
So I think we should put
that on the schedule.

431
00:18:18,170 --> 00:18:22,130
May I clarify with you on
the 10 year lock out period,

432
00:18:22,130 --> 00:18:23,500
we can start.

433
00:18:23,500 --> 00:18:25,700
We just can't refi in that time.

434
00:18:25,700 --> 00:18:27,740
Can you start making
early repayment.

435
00:18:27,740 --> 00:18:30,080
No, no unfortunately not.

436
00:18:30,080 --> 00:18:33,190
No so you obviously
could internally,

437
00:18:33,190 --> 00:18:35,990
if you had excess funds
available on an annual basis,

438
00:18:35,990 --> 00:18:37,700
you could put some funds aside.

439
00:18:37,700 --> 00:18:40,120
And obviously those
would get invested

440
00:18:40,120 --> 00:18:41,780
and you'd have interest
earnings and potentially,

441
00:18:41,780 --> 00:18:43,810
that would grow to
then be able to create

442
00:18:43,810 --> 00:18:48,640
a surplus of funds that would be
available at that 10 year mark.

443
00:18:48,640 --> 00:18:49,640
But unfortunately not.

444
00:18:49,640 --> 00:18:53,110
The one caveat I'll say is
that you can refund them

445
00:18:53,110 --> 00:18:58,570
on a taxable basis
early in the 2020 2021

446
00:18:58,570 --> 00:19:01,430
frame, when interest rates
were at all time lows,

447
00:19:01,430 --> 00:19:06,970
we did see a lot of taxable
advance refundings happen.

448
00:19:06,970 --> 00:19:11,360
Obviously, we don't know
what the next 10 years hold,

449
00:19:11,360 --> 00:19:15,250
but in theory, if we entered
into an environment, market rate

450
00:19:15,250 --> 00:19:18,610
environment like that, again, we
would evaluate doing a refunding

451
00:19:18,610 --> 00:19:21,490
to see if it resulted
in positive savings that

452
00:19:21,490 --> 00:19:23,830
were worthwhile
pursuing at that time.

453
00:19:23,830 --> 00:19:29,470
And I'm not all that
familiar with the purchasing

454
00:19:29,470 --> 00:19:32,350
or investment of
COPs, but I'm assuming

455
00:19:32,350 --> 00:19:35,350
there's pretty heavy
criteria for those

456
00:19:35,350 --> 00:19:39,400
that would invest in our COPs
that you can put in place.

457
00:19:39,400 --> 00:19:40,210
Yes yeah.

458
00:19:40,210 --> 00:19:43,380
So yes, there's certain
requirements that investors have

459
00:19:43,380 --> 00:19:45,340
to be able to purchase COPs.

460
00:19:45,340 --> 00:19:48,780
That said, I will note that an
individual in the town, if they

461
00:19:48,780 --> 00:19:50,280
have the appropriate
brokerage account

462
00:19:50,280 --> 00:19:52,410
and all those types of things,
they actually can go buy these

463
00:19:52,410 --> 00:19:55,080
cops if they choose to do so.

464
00:19:55,080 --> 00:20:00,190
Unlike what we call a dirt deal,
like a metro district deal,

465
00:20:00,190 --> 00:20:03,000
and some things that are
a little bit more unsecure

466
00:20:03,000 --> 00:20:06,090
or a little bit riskier,
these are actually these

467
00:20:06,090 --> 00:20:07,390
are investment grade rated.

468
00:20:07,390 --> 00:20:10,480
They are fairly secure from
an investor perspective.

469
00:20:10,480 --> 00:20:12,960
So yes, there are certain sort
of criterias and thresholds

470
00:20:12,960 --> 00:20:15,460
that they have to be able to
meet to purchase the COPs.

471
00:20:15,460 --> 00:20:18,180
But there are honestly
not all that limiting

472
00:20:18,180 --> 00:20:21,190
just given what the credit is.

473
00:20:21,190 --> 00:20:25,300
They don't typically then
resell it to others to buy COPs.

474
00:20:25,300 --> 00:20:25,900
Some may.

475
00:20:25,900 --> 00:20:27,340
It depends on the account.

476
00:20:27,340 --> 00:20:30,180
So there are some types of
investors that are buying them

477
00:20:30,180 --> 00:20:34,200
to hold in their account, and
they're utilizing them to manage

478
00:20:34,200 --> 00:20:35,620
their overall portfolios.

479
00:20:35,620 --> 00:20:37,870
If you think of the
Nuveens and name.

480
00:20:37,870 --> 00:20:41,320
You're kind of larger companies,
corporations, they do that.

481
00:20:41,320 --> 00:20:43,570
There are some trading
accounts that will buy them.

482
00:20:43,570 --> 00:20:45,930
And then with the intent of
selling them, just like you

483
00:20:45,930 --> 00:20:50,310
would see in a day trade
type of environment,

484
00:20:50,310 --> 00:20:52,520
if they think they can make
a buck off of it, basically

485
00:20:52,520 --> 00:20:53,020
they will.

486
00:20:53,020 --> 00:20:55,440
That said, what we do is work
with Stifel pretty closely

487
00:20:55,440 --> 00:20:58,800
to try and have the
actual cops allocated

488
00:20:58,800 --> 00:21:01,950
or given to folks,
that are going

489
00:21:01,950 --> 00:21:06,810
to buy and hold and be better
from a secondary trading

490
00:21:06,810 --> 00:21:07,330
perspective.

491
00:21:07,330 --> 00:21:08,910
They don't want folks
that are necessarily

492
00:21:08,910 --> 00:21:11,350
flipping the bonds immediately.

493
00:21:11,350 --> 00:21:14,190
They want to make sure that
there is a viable market

494
00:21:14,190 --> 00:21:16,650
for the COPs in the
long run, because that

495
00:21:16,650 --> 00:21:17,950
gives you some certainty.

496
00:21:17,950 --> 00:21:19,390
Investors that are buying them.

497
00:21:19,390 --> 00:21:20,050
Yeah great.

498
00:21:20,050 --> 00:21:23,915
Well, you just explained what I
was vulnerable about, so thanks.

499
00:21:23,915 --> 00:21:26,940


500
00:21:26,940 --> 00:21:28,020
Thank you.

501
00:21:28,020 --> 00:21:31,325
Any questions, Mr. finance.

502
00:21:31,325 --> 00:21:34,350


503
00:21:34,350 --> 00:21:35,260
That was very helpful.

504
00:21:35,260 --> 00:21:36,220
Thank you, thank you.

505
00:21:36,220 --> 00:21:39,490
Yes do you have other
team members, Bryan,

506
00:21:39,490 --> 00:21:41,800
that have other items
to present on this item.

507
00:21:41,800 --> 00:21:44,370
No, the only other thing,
and I might have Kurtis just

508
00:21:44,370 --> 00:21:46,350
come and mention,
just generally it

509
00:21:46,350 --> 00:21:50,433
might be helpful for the current
state of the town with debt.

510
00:21:50,433 --> 00:21:52,000
I know we've talked about
it during the budget,

511
00:21:52,000 --> 00:21:54,580
but I think it's a
good helpful reminder.

512
00:21:54,580 --> 00:21:57,340
The other piece and I
just check in with Jason.

513
00:21:57,340 --> 00:22:00,030
We do need to look into
this and maybe tomorrow

514
00:22:00,030 --> 00:22:01,510
in the next couple of days.

515
00:22:01,510 --> 00:22:05,220
The second reading is
scheduled for April 22.

516
00:22:05,220 --> 00:22:08,980
So given whether or not just the
complications of that meeting,

517
00:22:08,980 --> 00:22:11,220
if we have that meeting,
let us look into it

518
00:22:11,220 --> 00:22:12,460
and see what the publishing is.

519
00:22:12,460 --> 00:22:14,800
At minimum, we can still
hold a meeting if needed.

520
00:22:14,800 --> 00:22:17,130
That has it been published.

521
00:22:17,130 --> 00:22:18,370
I believe it has.

522
00:22:18,370 --> 00:22:19,690
I was just looking at that.

523
00:22:19,690 --> 00:22:21,760
OK, then.

524
00:22:21,760 --> 00:22:22,630
Yes, please.

525
00:22:22,630 --> 00:22:24,340
You can look into that
and just let us know.

526
00:22:24,340 --> 00:22:25,290
OK yeah.

527
00:22:25,290 --> 00:22:27,090
It sounds like that
schedule is somewhat

528
00:22:27,090 --> 00:22:29,050
flexible, so should be OK.

529
00:22:29,050 --> 00:22:30,120
OK thank you.

530
00:22:30,120 --> 00:22:34,400
I think just holistically,
one thing just to note

531
00:22:34,400 --> 00:22:38,520
is so for local
municipal government,

532
00:22:38,520 --> 00:22:41,390
the total debt
limit for the town

533
00:22:41,390 --> 00:22:46,250
is 3% of the actual
value determined

534
00:22:46,250 --> 00:22:47,550
by the County assessor.

535
00:22:47,550 --> 00:22:51,690
So that's not the assessed
valuation but the actual value.

536
00:22:51,690 --> 00:22:55,440
And so 3% So the total
assessed value I'm sorry.

537
00:22:55,440 --> 00:22:59,370
Actual value for the town
is just over 4 billion.

538
00:22:59,370 --> 00:23:04,580
And so our legal debt
limit is $122 million.

539
00:23:04,580 --> 00:23:08,810
So what's interesting, and I
think this is exceptionally

540
00:23:08,810 --> 00:23:12,380
rare, is that our total
bonded debt currently

541
00:23:12,380 --> 00:23:14,690
is just over $1 million.

542
00:23:14,690 --> 00:23:23,940
So our bonded debt is very low
with 46 million on the table.

543
00:23:23,940 --> 00:23:27,200
The town has the capacity
and still well, with

544
00:23:27,200 --> 00:23:29,960
under the 122,000,003% limit.

545
00:23:29,960 --> 00:23:33,200
So I just wanted to
make note of that.

546
00:23:33,200 --> 00:23:36,620
Is it common for municipalities
to have multiple projects

547
00:23:36,620 --> 00:23:39,230
with COPs then.

548
00:23:39,230 --> 00:23:40,170
Is that not common.

549
00:23:40,170 --> 00:23:43,320
I've seen it in a couple of
jurisdictions I've been in.

550
00:23:43,320 --> 00:23:46,380
Some of them have been COPs that
were like five or six years,

551
00:23:46,380 --> 00:23:48,420
and then they'll get
another one going.

552
00:23:48,420 --> 00:23:51,350
But yeah, certainly.

553
00:23:51,350 --> 00:23:54,230
So our only remaining
bonded debt are sales

554
00:23:54,230 --> 00:24:00,030
and use tax revenue bonds for
intersection construction.

555
00:24:00,030 --> 00:24:02,520
And so just over $1
million it's very low.

556
00:24:02,520 --> 00:24:03,590
Yeah agreed.

557
00:24:03,590 --> 00:24:05,250
Yeah it's helpful.

558
00:24:05,250 --> 00:24:05,940
Thank you.

559
00:24:05,940 --> 00:24:06,840
Thank you Maddie.

560
00:24:06,840 --> 00:24:09,020
Appreciate your time.

561
00:24:09,020 --> 00:24:12,750
So, Madam Mayor, if I could
also introduce Ryan Jardine,

562
00:24:12,750 --> 00:24:14,070
he's bond counsel.

563
00:24:14,070 --> 00:24:15,090
He was mentioned.

564
00:24:15,090 --> 00:24:16,940
One of the other things
that we picked up

565
00:24:16,940 --> 00:24:18,800
on, as you saw a
lot of documentation

566
00:24:18,800 --> 00:24:19,800
that was provided to you.

567
00:24:19,800 --> 00:24:23,150
One of the things that needed
a slight change or Amendment

568
00:24:23,150 --> 00:24:25,460
to what was originally
presented to you

569
00:24:25,460 --> 00:24:26,910
between first and
second reading,

570
00:24:26,910 --> 00:24:29,120
or if we can approve it
this evening, to be included

571
00:24:29,120 --> 00:24:33,920
in before next reading, is a
slight change in the language

572
00:24:33,920 --> 00:24:37,040
in one of the sections that
talks about the deposit

573
00:24:37,040 --> 00:24:39,930
to the project fund
under indenture,

574
00:24:39,930 --> 00:24:41,760
as opposed to the way
it was worded before,

575
00:24:41,760 --> 00:24:43,860
which is kind of
a parenthetical.

576
00:24:43,860 --> 00:24:47,480
So it's really not a huge
material change, but just

577
00:24:47,480 --> 00:24:48,810
one of the things
that we highlighted,

578
00:24:48,810 --> 00:24:50,410
I don't know if you
want to add anything in.

579
00:24:50,410 --> 00:24:53,240


580
00:24:53,240 --> 00:24:56,540
Yeah we needed to modify a
little bit of how we phrased one

581
00:24:56,540 --> 00:24:58,610
of the parameters there
didn't change the parameter

582
00:24:58,610 --> 00:25:00,180
as much as just reflected that.

583
00:25:00,180 --> 00:25:03,500
The actual security for the
COP is the building itself not

584
00:25:03,500 --> 00:25:06,230
a different building, right.

585
00:25:06,230 --> 00:25:08,160
Nor the O&M of the building.

586
00:25:08,160 --> 00:25:09,740
The building.

587
00:25:09,740 --> 00:25:15,440
And that's already
included in this language

588
00:25:15,440 --> 00:25:18,300
that the Board would be
considering in this ordinance.

589
00:25:18,300 --> 00:25:21,230
No, because this
red line came in

590
00:25:21,230 --> 00:25:25,130
after we've published it to you
all out in the packet originally

591
00:25:25,130 --> 00:25:25,980
a week and a half ago.

592
00:25:25,980 --> 00:25:29,540
So what I would recommend or
suggest is, upon first reading

593
00:25:29,540 --> 00:25:34,100
that motion include the ability
to modify that language.

594
00:25:34,100 --> 00:25:39,670
And then we will have that in
the second reading as changed

595
00:25:39,670 --> 00:25:45,370
So include the ability to modify
the phrasing of parameters

596
00:25:45,370 --> 00:25:46,665
for the indenture language.

597
00:25:46,665 --> 00:25:54,310


598
00:25:54,310 --> 00:25:54,920
That work.

599
00:25:54,920 --> 00:25:57,430


600
00:25:57,430 --> 00:26:01,280
That would be effective to be
a part of the second reading.

601
00:26:01,280 --> 00:26:03,440
OK Thank you.

602
00:26:03,440 --> 00:26:06,220


603
00:26:06,220 --> 00:26:09,190
Missing part of it to
include the ability

604
00:26:09,190 --> 00:26:13,210
to modify the parameters
for phrasing of parameters

605
00:26:13,210 --> 00:26:14,980
for the indenture.

606
00:26:14,980 --> 00:26:22,450
Phrasing the parameters for
the indentured language.

607
00:26:22,450 --> 00:26:25,430
And if it's helpful for the
transparency to the public,

608
00:26:25,430 --> 00:26:28,600
we can put that red line in the
packet for the second reading

609
00:26:28,600 --> 00:26:31,360
and just show this is exactly
the red line that was changed

610
00:26:31,360 --> 00:26:33,400
so that what you'll
see on second reading

611
00:26:33,400 --> 00:26:35,290
is the final version.

612
00:26:35,290 --> 00:26:37,760
We can have a call out to
this particular language,

613
00:26:37,760 --> 00:26:38,740
so please do.

614
00:26:38,740 --> 00:26:39,590
Thank you.

615
00:26:39,590 --> 00:26:40,370
Please do that.

616
00:26:40,370 --> 00:26:40,980
Thank you.

617
00:26:40,980 --> 00:26:44,140


618
00:26:44,140 --> 00:26:47,375
Any other questions,
comments, concerns.

619
00:26:47,375 --> 00:26:52,630


620
00:26:52,630 --> 00:26:53,600
I wrote it down too.

621
00:26:53,600 --> 00:26:56,850
So it's ready.

622
00:26:56,850 --> 00:26:57,350
All right.

623
00:26:57,350 --> 00:26:58,520
What's the word
before parameters.

624
00:26:58,520 --> 00:26:59,053
That's the word.

625
00:26:59,053 --> 00:27:00,340
I wrote it too tiny.

626
00:27:00,340 --> 00:27:02,470
I was dumb.

627
00:27:02,470 --> 00:27:04,390
prevailing phrase.

628
00:27:04,390 --> 00:27:09,190
Phrase OK.

629
00:27:09,190 --> 00:27:11,330
Phrasing phrasing.

630
00:27:11,330 --> 00:27:13,160
Prasing all right.

631
00:27:13,160 --> 00:27:16,330
Some directions, please, for
this and see what happens.

632
00:27:16,330 --> 00:27:17,420
That's all right.

633
00:27:17,420 --> 00:27:21,970
Madam Mayor, I move that
we include the ability

634
00:27:21,970 --> 00:27:23,740
to modify the phrasing.

635
00:27:23,740 --> 00:27:26,110
Sorry you'll have to
approve the ordinance.

636
00:27:26,110 --> 00:27:27,020
Yeah there we go.

637
00:27:27,020 --> 00:27:29,530
Ordinance scroll up here.

638
00:27:29,530 --> 00:27:30,340
There you go.

639
00:27:30,340 --> 00:27:33,190
Wow, that went
really crazy on me.

640
00:27:33,190 --> 00:27:34,450
Scroll up to high.

641
00:27:34,450 --> 00:27:36,850
It went fast and it went nuts.

642
00:27:36,850 --> 00:27:37,460
Here we go.

643
00:27:37,460 --> 00:27:43,390
I move that we approve
ordinance number 1404.

644
00:27:43,390 --> 00:27:46,480
With to include the
ability to modify phrase

645
00:27:46,480 --> 00:27:50,020
parameters for the
indenture language

646
00:27:50,020 --> 00:27:51,680
upon the second reading.

647
00:27:51,680 --> 00:27:52,370
First reading.

648
00:27:52,370 --> 00:27:53,210
First reading.

649
00:27:53,210 --> 00:27:55,510
First reading.

650
00:27:55,510 --> 00:27:56,300
It's close.

651
00:27:56,300 --> 00:27:57,200
Second Motion.

652
00:27:57,200 --> 00:27:57,710
And a second.

653
00:27:57,710 --> 00:27:59,380
Thank you.

654
00:27:59,380 --> 00:28:01,030
I gotcha.

655
00:28:01,030 --> 00:28:01,940
Trustee Padia.

656
00:28:01,940 --> 00:28:05,090
Yes Mayor Pro Brown.

657
00:28:05,090 --> 00:28:06,740
Yes trustee.

658
00:28:06,740 --> 00:28:08,140
March yes.

659
00:28:08,140 --> 00:28:08,930
Trustee TeVelde.

660
00:28:08,930 --> 00:28:10,790
Yes trustee.

661
00:28:10,790 --> 00:28:12,400
Mahan yes.

662
00:28:12,400 --> 00:28:13,670
Motion passes 5 to 0.

663
00:28:13,670 --> 00:28:15,040
Thank you.

664
00:28:15,040 --> 00:28:17,450
I should have mentioned this
while it was being considered,

665
00:28:17,450 --> 00:28:21,130
but I think communications
was working on some big cues

666
00:28:21,130 --> 00:28:22,640
for this project in general.

667
00:28:22,640 --> 00:28:24,700
So maybe even having
a finance component

668
00:28:24,700 --> 00:28:31,020
so that this can be shared with
our community in layman's terms

669
00:28:31,020 --> 00:28:32,220
would be helpful.

670
00:28:32,220 --> 00:28:32,920
That'd be great.

671
00:28:32,920 --> 00:28:36,000
Thank you.

672
00:28:36,000 --> 00:28:37,140
Great, thanks.

673
00:28:37,140 --> 00:28:37,930
Trustee reports.

674
00:28:37,930 --> 00:28:44,070
Anyone have any items you'd like
to address tonight Excuse me.

675
00:28:44,070 --> 00:28:49,290
No, just a mention again of
the effort and the success

676
00:28:49,290 --> 00:28:53,700
in finding the person that ended
the life of a very young mom

677
00:28:53,700 --> 00:28:56,230
in 2007 over in Prairie Greens.

678
00:28:56,230 --> 00:29:00,420
It was a really dark
time for the people

679
00:29:00,420 --> 00:29:02,260
there at Prairie Greens
when that happened.

680
00:29:02,260 --> 00:29:04,590
And the longer it went, the more
we were sure they were never

681
00:29:04,590 --> 00:29:06,010
going to catch the person.

682
00:29:06,010 --> 00:29:08,190
And to have that
come around, there

683
00:29:08,190 --> 00:29:09,810
was a lot of people
that were living

684
00:29:09,810 --> 00:29:14,350
back there in Prairie Greens and
even some that weren't that saw.

685
00:29:14,350 --> 00:29:18,930
So kudos to our Police
Department and the CBI

686
00:29:18,930 --> 00:29:21,030
and all those that
were involved.

687
00:29:21,030 --> 00:29:22,170
Great work done.

688
00:29:22,170 --> 00:29:23,790
Yeah agreed.

689
00:29:23,790 --> 00:29:30,180
Work is anyone else.

690
00:29:30,180 --> 00:29:31,260
How about you, Mayor.

691
00:29:31,260 --> 00:29:33,480
I don't have any
items other than I

692
00:29:33,480 --> 00:29:36,160
always write down your names.

693
00:29:36,160 --> 00:29:38,140
And then the item that you
had for trustee reports.

694
00:29:38,140 --> 00:29:41,440
And right now I just have
Dan murder for my notes.

695
00:29:41,440 --> 00:29:45,450
So if anyone else can share some
trustee reports for my notes

696
00:29:45,450 --> 00:29:47,440
sake, that would be great.

697
00:29:47,440 --> 00:29:51,400
I like that it's shorthand.

698
00:29:51,400 --> 00:29:52,960
That's all I have for today.

699
00:29:52,960 --> 00:29:56,490
You're going to let
me leave it like that.

700
00:29:56,490 --> 00:29:58,740
Yeah all right.

701
00:29:58,740 --> 00:29:59,950
Yeah OK.

702
00:29:59,950 --> 00:30:02,560
We don't have any discussion
agenda items today.

703
00:30:02,560 --> 00:30:05,460
We do have two
executive sessions.

704
00:30:05,460 --> 00:30:08,220
Jason, are you comfortable
with myself recommending

705
00:30:08,220 --> 00:30:10,290
a motion to go into both
of those executive sessions

706
00:30:10,290 --> 00:30:11,400
at this time.

707
00:30:11,400 --> 00:30:14,400
Correct as long as if
there's any objection

708
00:30:14,400 --> 00:30:16,510
to having both of those
approved at the same time.

709
00:30:16,510 --> 00:30:18,580
Otherwise, you can do them
as two separate motions,

710
00:30:18,580 --> 00:30:19,630
but that should be fine.

711
00:30:19,630 --> 00:30:21,940
Is there comfort with
that Yes All right.

712
00:30:21,940 --> 00:30:24,210
At this time, I would like
to recommend a motion to go

713
00:30:24,210 --> 00:30:28,130
into executive session 1
for conference with our town

714
00:30:28,130 --> 00:30:30,440
attorney for the purpose
of receiving legal advice

715
00:30:30,440 --> 00:30:34,970
on specific legal questions
under CRS section 24-6-402(4)(b)

716
00:30:34,970 --> 00:30:38,990
regarding potential litigation,
as well as a second executive

717
00:30:38,990 --> 00:30:40,880
session separately for a
conference with the town

718
00:30:40,880 --> 00:30:42,410
attorney for the
purpose of receiving

719
00:30:42,410 --> 00:30:46,020
legal advice on specific
legal questions under CRS.

720
00:30:46,020 --> 00:30:50,490
Section 24-6-402(4)(b) regarding
our employee handbook update.

721
00:30:50,490 --> 00:30:51,480
So moved.

722
00:30:51,480 --> 00:30:53,170
Second Thank you for that.

723
00:30:53,170 --> 00:30:56,210


724
00:30:56,210 --> 00:30:57,120
Trustee Mahan.

725
00:30:57,120 --> 00:30:58,680
Yes trustee.

726
00:30:58,680 --> 00:31:00,270
TeVelde yes.

727
00:31:00,270 --> 00:31:01,340
Trustee Padia.

728
00:31:01,340 --> 00:31:02,610
Yes mayor.

729
00:31:02,610 --> 00:31:04,460
Pro tem Brown yes.

730
00:31:04,460 --> 00:31:05,400
Trustee March.

731
00:31:05,400 --> 00:31:09,563
Yes Motion passes 5 to 0.

732
00:31:09,563 --> 00:31:10,230
Wonderful Thank you.

733
00:31:10,230 --> 00:31:13,740
Let's take a five minute
recess and we'll get going.

734
00:31:13,740 --> 00:31:16,010
Thank you.

735
00:31:16,010 --> 00:31:17,830
You got him.

736
00:31:17,830 --> 00:31:25,000