[0:00] We'll call this meeting at the Common Council of the Town of Pace of the Order. It is 530 on October the 8th, 2009, almost stubble, stumbled on October and somebody today that it was in a meeting with said October.

[0:17] I'm still having trouble with 2009. I was funny and then an elderly gentleman said 2000. I'm still writing one nine before I recognize.

[0:28] We welcome you here. We'll begin this meeting this evening with an

[0:32] invocation. We've asked the Reverend Dr. Kenneth Lens from the Mount

[0:36] Cross Lutheran Church to offer that invocation following the

[0:39] invocation. We'll lead us in a pledge of allegiance. Let us pray.

[0:45] Gracious Lord, we thank you for the many gifts you have given to your

[0:48] people. We thank you for the gift of the beautiful creation which we find

[0:54] ourselves and ask that your spirit may so inspire us to take care and to be good stewards

[1:00] of that which has been wonderfully entrusted into our care.

[1:04] We thank you for the gift of family, thank you for the gift of community.

[1:10] We thank you for this group here this evening for the council of peace and thank you for those

[1:17] who have been willing to give of their time and their talents and their gifts in order

[1:23] to serve the people of their community.

[1:26] And we ask that your spirit may also abide with them

[1:30] as they seek to do those things,

[1:32] which are pleasing your side, reaching out

[1:34] to touch others with the power of the unconditional love

[1:38] you have given to them as they seek to be faithful stewards

[1:42] of those responsibilities and trusted to their care

[1:45] and as they seek to be servants of the people

[1:49] striving for justice and for equality and for fairness.

[1:55] For all these things and much more, we petition your throne if mercy and him of our Lord, who is Jesus the Christ of man.

[2:01] Please join me in the pledge of allegiance.

[2:04] I pledge allegiance to the flag of the United States of America and to the Republic for which it stands.

[2:12] One nation under God, indivisible with liberty and justice for all.

[2:20] Thank you, Dr. Lansson. Thank you, Ed.

[2:24] You call the roll?

[2:25] That's the record show that all council members are present.

[2:28] Thank you. First item on the agenda item A is probably a comment period.

[2:32] I have no forms that have been filled out.

[2:35] We have any members of the public that would like to address the council in open form.

[2:41] Seeing none, we'll move on to the consent agenda, what's your pleasure council members?

[2:46] I'm over the consent agenda. Thank you.

[2:48] I have a motion by A to seconded by Sue Discussion.

[2:53] Those were in favor of signify by saying I.

[2:56] I was a motion carried.

[2:57] Item C.

[2:58] I have re-presentation of current events by the town manager.

[3:02] I thought Deborah would panic when she looked across and saw the camera and was not there today.

[3:07] But Deborah.

[3:08] Actually, I did.

[3:10] I just want quick announcement candidate packets are available to be picked up.

[3:15] And now I'm going to turn it over to the run.

[3:18] I don't have nearly as much stuff as Cameron, but we do want to announce that on Saturday,

[3:24] October 17, the town is teaming up with the Arizona Department of Environmental Quality

[3:29] for an electronic recycling project.

[3:33] It will be at the Advanced Center from 9 to 1, and it's where you can bring computers.

[3:38] Any type of electronic equipment that you got at your house, that normally you would send

[3:42] a landfill, they are collecting them out there, and then 80 EQ will dispose of them.

[3:48] And then time again please, Wes.

[3:50] Brown, nine until one.

[3:51] Then into one.

[3:52] Thank you so much.

[3:54] I believe so, yes, anything electronic,

[4:01] even microwaves and stuff like that.

[4:03] Some be very helpful and see we don't have the press here, but we probably have to issue

[4:07] some kind of press release.

[4:09] And I've had two communications from Alantil that they're getting those people or sneak

[4:18] him into their other stuff and dumping them out there and that really is an environmental

[4:22] hazard.

[4:23] Yeah, that's the problem for them.

[4:25] So this will be a good opportunity for people to get rid of that stuff.

[4:29] The other thing is we got the first group of proposals in on the Craig and Waterline last

[4:35] week.

[4:35] They were on the raw water section, which will go from Washington Part to the Freedom Plant.

[4:41] We received 15 proposals, all from reputable firms.

[4:46] We're finishing up the review on that checking references, and then hopefully our next meeting,

[4:50] we will be asking the Council to authorize us to negotiate with the number one ranked firm in order to get a contract going.

[5:00] That's all I've done.

[5:04] Yet.

[5:06] Maybe done.

[5:07] Angler wanted to mention this, but a friend of mine told me was very important to mention the low-cost

[5:13] rabies vaccination clinic for animals is rescheduled for October 24th.

[5:20] So, that's one week after the events center.

[5:24] Is that correct?

[5:24] That's correct.

[5:25] Yes, it was a scheduling conflict, and they had to make that adjustment.

[5:28] But, I have one more thing that I would like to do, John's always invites the town to

[5:34] food at the Presbyterian Church, and now tonight I have the honor to invite you to have

[5:40] Sunday brunch with 50 Mount Cross Luther members at the Rim Club on Sunday October 18th,

[5:47] because 25 tax deductible dollars per person, reserve it our Mount Cross Church office across

[5:58] I'd like to remind people that on the 17th of October, which is the Saturday, those of you who like to read,

[6:08] room country literacy is having their 10th annual use book sale in the Walmart parking lot

[6:15] on Highway 87. It'll be from 7 until 2. We have murders, mysteries mayhem to do children's

[6:24] books and how to books. Very reasonable, very cheap. We take most any price from a nickel

[6:31] up and we have over three small truckloads full of books and that's a lot of books so please come

[6:38] one and come all. Thank you. Thank you, sir. As long as you're promoting fundraising events,

[6:46] the friends of council basin and the friends of peace and parks and recreation are two people

[6:53] that are helping dispenser a golf tournament out of chapter L finds country club and there are some

[7:00] applications for joining up all right out in the table out in the hallway there and for only

[7:06] $250 you can have a round of golf out there and a nice meal afterwards and of that amount

[7:16] $150 of it will stay right here to help the two friends groups.

[7:22] You designate which one you want to be helped for both.

[7:26] Thank you, John.

[7:28] Any further announcements from Council members?

[7:32] Okay, we'll move down to Item D, Comments, Commendations and Presentations, and we have any

[7:39] from the staff.

[7:43] Thank you.

[7:44] And we will, about from the council.

[7:48] It's not, we'll move to Item D2 Proclamation, Sue.

[7:53] Why don't you before you read it, you want to take just a minute, you haven't had any notice

[7:57] of this, but would you like this to take a minute and explain it to Genesis, how we got

[8:01] where we are within?

[8:02] Yes.

[8:02] The Arizona League of Cities in towns of which we are a member and many of us attend their annual

[8:09] festivities and learning sessions and classes has deemed the week of August 19 through the 23rd

[8:18] as appreciation week to all of the towns within Arizona and also to the Staves, Staves,

[8:27] The multiple staves, which run all of the towns

[8:32] and do such an excellent job.

[8:34] And we often forget to say thank you to the people

[8:38] who work so hard and diligently throughout each town

[8:42] and make everything hum together and put up with the folks

[8:46] on the council.

[8:47] So it was deemed feasible that we would all have the same week

[8:53] as Arizona cities and towns week.

[8:56] And in light of that, we have a proclamation for all of the wonderful people in Paisons town and in their staff.

[9:05] Whereas the city citizens of Paisons rely on local government to experience a high quality of life in our community.

[9:17] And we have a representative. Thank you.

[9:21] wounded warrior at that. And whereas local governments around the state of Arizona work 24 hours a day,

[9:31] seven days a week to deliver town services such as fire, police, and emergency medical services

[9:39] to create safe communities, and whereas the methods of funding these vital town services

[9:47] are not always clearly understood by our citizens.

[9:51] And whereas it is one of the responsibilities of the town officials

[9:56] to ensure that legislature media.

[10:00] And citizens understand their local government through open and frequent communication using various avenues and means.

[10:10] And whereas it is important to work to encourage this connection and inform citizens and state-led legislators of the importance of state shared revenues in order to preserve the excellent delivery of services

[10:28] that our citizens have come to expect in our town and

[10:33] where as through education and awareness, citizens,

[10:38] community leaders, and town staff can all work together to ensure that services provided by the

[10:46] town of Pason can remain exceptional elements of the quality of life in our community.

[10:53] Now, therefore, be it resolved that the town of Pace and joins with the League of Arizona

[11:00] cities and towns and fellow municipalities across Arizona in declaring October 19 through

[11:09] 23rd, 2009 as Arizona cities and townsweep. In witness thereof, on the great seal of

[11:19] The town of Pace the Arizona is to be a fix this eighth day of October 2009 by Kenny Jay Evans

[11:27] there.

[11:34] When they need to.

[11:42] Let me say something for her then.

[11:45] We are thrilled to have her here to represent the staff.

[11:49] We have a tremendous staff here in the town of Pace and many of you know we've gone through

[11:53] some of the most difficult economic times that any of us have.

[11:57] that most of us have experienced in our lifetimes, our staff has taken on extra responsibilities,

[12:06] they have worked long hours often with no extra compensation often times.

[12:13] They have truly stood up to the bar in these times of needs for this town and I hope they understand

[12:21] and know that we really do appreciate what they do and we do acknowledge it so

[12:25] It is not just a precursority thing but it is with real feeling on the part of the council that we recognize our staff including those who sit up here in management positions for the good that they do and I think our cross training is working well with the exception of a little slip there.

[12:48] We do appreciate the staff.

[12:51] Thank you very much.

[12:52] Next I don't be the minutes.

[12:53] I think they're all approved under the consent agreement.

[12:57] Item F1 is a public hearing.

[13:02] As you are aware, the alternative expenditure

[13:04] on the patient's so-called home rule

[13:08] has to be approved every fourth year across the state of Arizona.

[13:12] And so we will open this public hearing at this time.

[13:17] Are there any members of the public that would like to address this?

[13:21] If not, then I will turn the time over to Cindy.

[13:24] Cindy Smith or CFO.

[13:28] But Amy Marin Council, Cindy Smith, the Chief Management Officer for the Town of Pason,

[13:33] and this public hearing is indicated.

[13:36] Senors around the alternative expenditure limitation,

[13:39] which is also known as the Home Rule.

[13:43] In 1980, Arizona voters approved the tax reform package that placed an expenditure limitation

[13:49] on cities and towns. However, at the same time, the legislation allowed local voters

[13:54] to approve an exception to the state and post limitation in their city or town. Under

[14:00] the state imposed expenditure limitation, a city or town may only spend a certain amount

[14:06] funds. And regardless of the town's revenue or individual needs, the budget is limited by the

[14:12] state and state imposed ceiling. Under the home rule option, the city or town may determine

[14:18] its own expenditures based on the budget. So with voter approval of the option, the town

[14:23] will be limited to the expenditure of the estimated available revenues, whether such expenditures

[14:28] are less or more than the state imposed limit.

[14:35] So why is this issue on the primary election ballot?

[14:39] The town of Pace and Motors approved the home relapsion every four years since 1980, and to continue the home relapsion, we must pass.

[14:48] It must be passed by the voters every four years.

[14:52] So on March 9th, 2010, town voters will be asked whether to continue the authorization for the town of Pace and alternative expenditure.

[15:00] Permitation or Home Rule approved by voters in back in May 16th, 2006.

[15:09] A Miller City is in town's authorized home rule. Yes, they have.

[15:13] Casonous matter, fact was one of the first two Arizona towns to adopt home rule back in 1980.

[15:19] I believe the other town was Clarkdale. In 2006, 555 communities, the adopted home rule, and then in 2009,

[15:27] In the home room, permanent base adjustments had been voted on and approved in 75 Arizona

[15:33] cities and towns.

[15:36] What happens if home rule is not continued?

[15:40] If home rule is not approved, the town of Pace will operate under the existing state imposed

[15:46] expenditure limit.

[15:47] Under this limit, the town of Pace may not be able to expand.

[15:51] All the revenues it collects provide the services.

[15:53] Those services such as police, fire, water, and examples of those revenues or sales tax,

[16:00] state sales tax, state-sharing contracts, all revenues are considered.

[16:07] Back in January 2006,

[16:12] when the home world was presented for approval, this was the summary

[16:16] analysis that was presented, and these were estimates.

[16:20] So in 2006 they estimated for 2007, 2008, 2009 and 2010.

[16:28] You see the town estimates, that was the budget estimates, and then at the time what the state imposed estimate would have been.

[16:35] So if homework was not approved, we're limited right here with these amounts for budget.

[16:45] So, this kind of, this graph will show you, based on those estimates, these amounts here were the estimated budgets.

[16:54] This was the state of post limit and then this was your actual adopted budget.

[16:58] So, you can see the difference between your budget and what the estimate, or excuse me, what the state expenditure limitation was for each of those years.

[17:07] This is the current year right here. Fiscal year 9 fiscal year 2019. You can see that the

[17:15] town estimate back in 2006 was a budget of 24 million. The state limitation was 17.4 million

[17:23] and our current budget sits at 57.7. So one thing I want to make clear is if in 2006

[17:30] voters had not approved this, our limit on our budget would have been 17 million. Even

[17:36] No, we estimate bringing in 57 million.

[17:45] This is the estimated state and post-limitation

[17:48] for next fiscal year, 2010, 2011.

[17:54] And the state limitation is based on population.

[17:57] And this population is 2009.

[18:01] They take a population if they divide the 2009 population

[18:04] by the 1978 population, which was 4,355.

[18:09] And that gives the state a population factor.

[18:12] They apply that to the 1980 Basel imitation,

[18:15] which was 1.267280, to give a estimate of $5 million.

[18:21] And then they adjust that estimate by the percent change

[18:25] in gross domestic product price to flatter,

[18:30] which currently is 2.77.

[18:32] So under the state expenditure limitation,

[18:36] and we would be looking at a $14 million budget for 2011.

[18:44] Does this approve or does he approve a home rule

[18:45] and give the city authority to impose new taxes?

[18:49] No.

[18:50] Approval to continue will only allow the town to spend the revenue

[18:53] that it collects is approved in the annual budget.

[18:56] And home rule does not change the property tax

[18:58] or the sales tax that the town currently collects.

[19:03] If home rule is continued,

[19:05] what will it mean for town residents?

[19:07] Well, with home rule, the town residents

[19:09] and the mayor and council will continue to decide what level of service is best for

[19:14] patient.

[19:15] Homeworld allows the town to expand all the revenues it receives to provide services to residents.

[19:21] Each year the town will set the expenditure limit after citizen input through the budget

[19:26] and public hearing process.

[19:28] And then because the town is required to have a balance budget those expenditures will be restricted

[19:32] by available revenues.

[19:36] Any questions?

[19:39] difference between a GDP price deflator and the CPI.

[19:48] The state testament?

[19:51] I'm not sure.

[19:54] I just know that this price deflator is the...

[20:00] The estimate that comes from the state, it's part of their evaluation in the setting of limitation.

[20:07] Because the compound CPI from 1980 to now would be greater than that 2.77 percent, which I was wondering how we calculated that.

[20:16] Secondly, in the event, it's pretty draconian. The way you've got it on the chart there, I'm going back to the drop in our ability to spend.

[20:26] But as a practical matter, since it doesn't affect the ability to generate revenue, if we generated revenue hard, the limit would be much of that revenue is targeted for specific projects.

[20:41] And if we, for instance, the CC Craig and Project, we generate $10 million, we have to spend that $10 million on the project.

[20:50] we can just put it in a pocket.

[20:52] Suddenly, we only have 4 million left to spend

[20:55] in all the rest of the council's functions.

[20:58] That is correct.

[20:59] Our limitation would sit at that $14 million.

[21:03] So if we're going to allocate 10 million to that project,

[21:08] then it wouldn't matter if we brought in $60 million.

[21:11] Our limit would be 14 in how the town of Pace

[21:14] now equates that.

[21:16] Those expenditures is not restricted,

[21:19] but we are restricted at that limitation.

[21:23] Thank you.

[21:25] I might say also that they really haven't talked much about the RF funding, the recovery, or the stimulus dollars.

[21:36] And that's going to have a big effect on state budgets, but they didn't have any specific guidelines on the stimulus dollars.

[21:45] It might come into a budget consideration.

[21:48] My concern, obviously, is that you've got $10,000 out of $14,000,000, and we will be well

[21:53] into the year before the voter curves in March.

[21:56] We would basically have to shut the town down completely, fire, please, down hall, because

[22:04] we would be over budget by March.

[22:06] We would definitely have to do that.

[22:08] This is a state statute that we're dealing with, and of course, era funding was not part

[22:14] when that statute was created.

[22:17] I would think that if we were stuck at the 14 million

[22:21] and the air of money did come in, it would probably be an issue

[22:27] that would have to go back to the state

[22:28] to see if they wanted to modify the statutes to say

[22:31] because there's air of funding out there and some people have it.

[22:36] But I don't, I don't need, they would do it.

[22:38] I think the problem with doing that is that it's a voter.

[22:41] It was an initiative that was not a referendum,

[22:43] I was wondering what's happening.

[22:44] I think you'd be able to say you deal with it.

[22:47] It's 14 million figure out what you're going to do with it.

[22:49] In which case we would have to severely start cutting things back to meet it.

[22:54] Long vacation, though.

[23:00] Yes, add an engine.

[23:03] I just want to say I appreciate this heads up.

[23:06] A long time before the vote.

[23:09] I think in my own case, it caught us little by surprise in 06.

[23:13] And it was like, oh, that's on the ballot too. Now, this is really shows we simply must vote yes on this.

[23:21] Otherwise, it'll be a big strategy ever in this town. So I appreciate this heads up and the detailed things and most people won't know a deflator from an inflator.

[23:33] But they will know the difference between yes and no, and we vote or simply must vote yes to keep our town running. Thank you.

[23:42] John, four years ago, when we did this, I made a analysis of the Tom budget.

[23:50] So what was the central services that is required to be provided, what were not essential,

[23:57] and then went around, made myself available to any organization that wanted to have an explanation

[24:04] of how this worked.

[24:06] I'm not going to do that analysis again, but I will be willing to go to any organization

[24:11] that wants to have this explain to them. I'm glad to go and talk to them and tell them what

[24:20] the options are and why it's an overranger as to the yes option. Thank you Sue. I too am

[24:29] very supportive of this several people have said well if they vote yes it just opens up the

[24:37] to unlimited spending and and that's far far from the truth. The town cannot spend more

[24:44] dollars than it has. That's it. Pre-arrient and home rule doesn't allow us to have

[24:52] free spending without any checks and balances. It does provide flexibility and

[24:58] manageability to meet.

[25:00] Take the budget that the citizens and the town staff have worked so diligently to put together to meet the needs of our citizens and to continue to improve our quality of life here by providing the diversity of town programs.

[25:18] If we were to vote no, $40 million as everyone agrees would mean more cuts, more loss of

[25:28] jobs to our town, loss of jobs and services like parks, our beautiful parks and what

[25:35] goes on and possibly the library.

[25:38] So we are suffering very tough economic times and my concern is I hope everyone who doesn't

[25:46] understand that we'll ask and hopefully the press will help us put it out there very clearly

[25:53] and distinctly like Cindy has so that we can all be aware of the decision we're making

[25:59] because yes, in my mind, is the only answer to this question. Thank you. Thank you, John.

[26:06] Just a little clarification. Based on my recollection of how I did the analysis four years ago

[26:12] With this limitation, we would not even be able to fund essential services that are mandated by the state that we have to do.

[26:21] So we would even have to stop the police and fire departments.

[26:25] It would be that to account their Conean.

[26:29] Thank you.

[26:30] And to the point that Sue raised this doesn't in yet as well.

[26:36] This doesn't lift all limitations.

[26:39] We have a whole complicated series of revenue limitations as well that have been passed through the years.

[26:46] Many of you remember the process we went through with the secondary property tax rate last year.

[26:51] In the final analysis, we spent a meeting and a half arguing about $70,000.

[27:00] So there are some pretty restrictive limits placed on revenue, which then ties to the amount that we have.

[27:08] that we can't exceed in terms of expenditure.

[27:12] So the expenditure limitation was created,

[27:14] I think, in a different era.

[27:16] I was created at a different time, certainly in the history

[27:20] of the state spending, and was not intended.

[27:23] I don't believe when it was passed by the voters

[27:25] to be one where you can, in reality, end up with a budget

[27:29] with 30 or 40 million dollars in it,

[27:32] and the ability to only spend half of that.

[27:34] I think also, people should keep in mind that our budget is sent to the state.

[27:40] They know what the budget is at the council adoptive and we are held to that budget.

[27:46] In 1980, I wasn't here, I'm not sure if budgets were sent to the state at that time.

[27:50] This may have been their way of trying to keep track of our keeps ending, you know, at a certain limit force that isn't.

[27:56] Well, I think...

[27:58] I think it's a doubt it is.

[27:59] I think there were several things going on at that time.

[28:01] If you remember, we were looking at two percent of them on the interest rates and inflation running

[28:05] at 20 percent a year or so, I think it was a whole different set of concerns that the

[28:11] public was dealing with, and this was their reaction to that.

[28:16] Anything further on the public hearing, any additional questions for, or either Sandy or

[28:25] Sandy or for the staff, not then we will close this public hearing?

[28:29] Thank you.

[28:29] Item

[28:33] G2, discussion resolution 2518 regarding the sale of bonds, general obligation bonds.

[28:45] What's your pleasure, Council?

[28:47] Move approval.

[28:48] Second.

[28:49] I have a motion by John Wilson a second by Mike Vogel to support the resolution, discussion

[28:56] on that motion,

[29:00] probably up

[29:04] on good.

[29:05] Those in favor signify by saying aye.

[29:07] This is the 1.525 million of that was voted on by the voters in 2003 to build our

[29:18] for public safety but in particular to focus on building additional infrastructure for the

[29:23] fire department. Would you like to bring us up to date on the fire station and the location and

[29:32] land.

[29:33] They closed our last property last Thursday, right?

[29:37] The one day last week, I don't, I haven't been thirsty.

[29:39] I signed it.

[29:40] And the floor plans are fairly well done.

[29:43] The exterior sections might have been drawn up.

[29:47] Right.

[29:47] And the specs are in the process.

[29:49] So probably in November, the first of December, we should get the plans to start going

[29:56] to the review on them before they go to bed.

[29:59] The most.

[30:00] Moving along, I guess it didn't grow from the rarer going out to lay out of the side of you, at least that's what I've told just now.

[30:09] So it's moving.

[30:13] We take a little with the council's unanimous consent. I would like to take a little literary license and maybe ask our balance counsel to give us an update on where...

[30:22] I was going to say grants already sold everything, so we're all sad, but yeah.

[30:29] Any objection to any some time to them? Okay. Grant would you like to come forward in?

[30:40] Mr. Mayor, members of the council, the pleasure is always to be up here visiting.

[30:46] The town of Pason, my name is Grant Hamel. I'm a managing director with the investment banking firm of Stone at Youngberg.

[30:52] and I'm joined this evening for your action on this item this evening by Fred Rosenfeld,

[31:01] who is your bond council with the firm of Pestrose and Feld in Phoenix,

[31:08] with your decision to proceed this evening with this fun sale.

[31:12] What we will do is to continue to work with the town manager and the chief fiscal officer

[31:19] to prepare for the issuance of these bonds that will require two steps, so one more step

[31:27] with the Council and what will do this evening with your action tonight is that as part

[31:34] of that resolution, the Council approved a notice of sale that we will send out to all

[31:42] prospective bidders on these bonds. And we would look to receive bids for these bonds in November

[31:51] at your regular meeting on November 19. I would like to add that the towns general obligation

[32:01] bonds are rated A plus, which is an outstanding credit rating, which should be a lot of attention

[32:10] with regards to your bonds, but I would also add that in the municipal bond world, a sale

[32:16] of 1.525 million is relatively small. So I think potentially just because of that reason

[32:24] and that reason alone, the town may expect to get several bids for the bonds, but it wouldn't

[32:30] as many as if it was a say of 10, 15 or 20 million dollar financing.

[32:39] But our firm, no chance it would get it at 2.8% than you telling me.

[32:45] Well, you know, that depends and one of the things that we're going to work with staff on is just to determine the duration of the financing. Mr. Mayor, we've provided them information on three different scenarios of either a 10 year financing

[33:00] a 15 or a 20 year financing and I can assure you interest rates have come down pretty significantly this year.

[33:11] But because these particular bonds don't involve any kind of subsidy or support from the government as part of the ARRA,

[33:22] which is the American recovery and reinvestment act that Cindy referred to earlier or the stimulus act

[33:29] that these bonds we sold basically on the outstanding rating of the town itself and at the eight plus rating,

[33:38] we would expect that a ten-year financing for the town at this point would be in the neighborhood of three and a half percent

[33:46] is our estimate if the town elected to pay off these bonds over a 15 year period of time we think

[33:54] the rate might be 3.75% and if you decide to sell the bonds over a longer period of time say 20 years

[34:01] that interest rate would be approximately 4%. So after it's our received on the bonds mid-November

[34:10] we would expect that the transaction would close in early December at that time proceeds would be deposited

[34:19] effectively into the towns bond building fund or project account in the available at that time for construction of the proposed fire station and acquisition of land for that fire station.

[34:34] So with that, I'd be very happy to respond to any questions that the council may have.

[34:39] Excuse me, Councillor.

[34:43] I appreciate that.

[34:50] No Councillor.

[34:52] No question for Councillors for a Friday there.

[34:54] Okay.

[34:55] Thank you.

[34:57] Thank you, gentlemen.

[35:01] The next item would be item H1, a CVR file by Leron Gerard regarding the purchase of the 13 and a half acres sounded to face an airport around.

[35:11] Mr. Mayor, members of the council, several years ago, the town opted to move forward with a purchase of 13 and a half acres adjacent to the southwest part of the airport for airport expansion and airport uses.

[35:25] And that property was tied up for roughly 14 years in a land exchange, and then it went

[35:32] to, in the private hands, and became available for the town to purchase.

[35:36] About a year ago, we, the town entered into a contract with the owners that property to

[35:40] purchase it, and moved forward, the purchase of that time was to buy three and a quarter

[35:47] acres of the 13 and a half, and then an option on the remaining.

[35:53] During the escrow process, it was discovered that there were some issues with the title that

[35:57] need to be cleared up before the town could move forward with the purchase and so the escrow

[36:03] was canceled.

[36:05] Instead of tying the owners have taken care of those title issues, I would believe it has

[36:09] a clear title now according to the title company, and the owners have come back to the town

[36:13] with a request to go ahead and move forward with the purchase.

[36:17] There are some issues at this time with the purchase from the town standpoint, the fact

[36:21] that it is not in the current fiscal budget because we didn't know when those issues

[36:26] were going to be cleared up on the title.

[36:28] But the earliest that we could get it in the budget would be in the 10-11 fiscal year.

[36:34] The other thing is we're looking at funding this purchase with an FAA grant, which will be

[36:40] 5% of the cost of the property. The current FAA grant cycle, which starts at the first

[36:49] of this month, does not include the purchase of this property. They have a couple other

[36:55] projects, over $700,000 that they're paying to award the town. But they can't award

[37:01] us the grant to purchase this property until the environmental assessment is complete, which

[37:06] is also being paid for by the FAA grant, another FAA grant, and is in process right now and

[37:12] we hope to have completed by the end of the year.

[37:15] So that would make it eligible to be in the 2010-2011 fiscal year for the grants, which would

[37:22] coincide with our fiscal year of next year if we wanted to put in the budget.

[37:27] However, in today's economy, there was always that risk of the FAA, and did not get the funding

[37:31] planning on and so we would not be able to get the property at that time they may not be able to

[37:35] fund the grant. And currently the town doesn't have that equipped reserves to fund it and then

[37:40] wait until they can reimburses. So I guess the issue at Hampton Ideas, how do we want to

[37:47] proceed on this property? It is part of the master plan. It's included in the airport layout plan

[37:54] that has been approved by the council and it's waiting to final approval from the FAA right now.

[38:00] One reason why the FAA moved Airport Road was so we could purchase this property and include it in the Airport.

[38:07] So there's a lot of things that are starting to fall into place, it's just matter of the tiny now.

[38:13] But without having any funding available this year and no reserves, staff recommendation is that we include the purchase of this property in next year's budget.

[38:23] But that we don't actually move forward until we get the final commitment from FAA to fund the 95% of the project.

[38:31] Thank you.

[38:33] Council?

[38:34] Got he had first.

[38:36] Based on Lorenz, excellent oral presentation and the printed presentation which is available

[38:42] on the website.

[38:44] I move to direct staff to include the purchase of the 13.5 acres adjacent to the face and airport

[38:50] in the towns 2010, 2011 budget, but to only move forward with the purchase.

[38:57] Once the FAA has committed to funding their portion of the purchase

[39:03] Do I have a second?

[39:06] Mr. Mayor Michael Hughes, if I might add one thing the owner's representative of that property

[39:11] Mr. Tom Collins is here tonight if you have any questions for him

[39:15] Did you need did you want to address the issue Tom?

[40:05] And I think we're, you know, I notice where the world will go with the next few months, but our best estimate is with the commitment to stand me as the stimulus money that there will not be additional second phase money is available within the FAA for additional unscheduled items.

[40:26] and that coupled with just the nuances of our having get the environmental assessment done before

[40:33] we can then commit them, you know, it just seems that 2011 is the earliest that we're going to be able

[40:39] to do that.

[40:54] Thank you. I should have had you come forward to the microphone. Are you picking up his

[40:57] voice back there? No.

[41:01] Yes, would you come forward, give your name and address and

[41:04] and a reader's digest version of what you just told us.

[41:10] Tom Collins is my name. I live at 305 East Pine in Paisam. I've been in Paisam since

[41:18] 1983. I had a business here for 25 years and more or less retired about a year ago.

[41:29] But I've been involved in this land situation for a long time. We went through a lot to

[41:34] purchases land, my group only owns a part of it, we don't own the whole thing, but I think

[41:42] some of the nicest property is the property that the town wants. If any of you guys have

[41:48] been out there to look at it, it's it's really a nice piece of property and it'll be an asset to the town.

[41:55] Plus we're gonna go into a little property so you can put up a view tower out there or whatever you

[42:01] to do. And the whole idea behind the purchase of a lot of this property up there is to expand

[42:13] to paste some little bit, bring some jobs in here and open it up here a little bit because

[42:18] it's been so closed in by the forest series.

[42:23] And when we first got involved with this,

[42:26] I was told many times, you'll never get the trade done, and fortunately we went through

[42:34] Congress Senate signed by the President, all kinds of stuff to get where we're at today.

[42:44] But we're at a point where so many people are so frustrated not knowing where we're going

[42:49] in which way to move we feel that we need a little something to rely on and I think Loran

[42:57] is kind of explain the situation pretty well and that's all I've got to say really

[43:06] it I hope I'm up the next guy buried up there on that property we do two more results

[43:14] Thank you.

[43:15] Thank you.

[43:19] Those in any further discussion.

[43:22] Those in favor of the motion signify by saying aye.

[43:24] Coz the name motion carried.

[43:26] I show no further business.

[43:28] It's like correct.

[43:29] We have a public comment period.

[43:31] There are any members of the public that would like to address this at this time.

[43:36] Seeing none, this meeting stands adjourned.

Council Meeting

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