LAKEPORT, Calif. – During a special Tuesday night meeting the Lakeport City Council approved bridge funding for city water projects and a commendation for a city police officer among other brief matters of business.
During the open portion of the meeting, which ran just under 45 minutes, the council took care of several issues that couldn't wait until its next regularly scheduled meeting on Aug. 20.
The Aug. 6 meeting was canceled and instead the council will participate in the National Night Out event at the Mormon Church on 16th Street.
The main item of business was approval of two separate loan agreements and issuance of a series of water revenue notes, in an amount not to exceed $7,675,000, in order to give the city short-term financing for water projects.
While the city has US Department of Agriculture loans and grants to help with water and sewer system upgrades, City Manager Margaret Silveira and Mark Brannigan, the city's utilities and public works director, explained that the city needed bridge financing in order to keep the water system properly functioning, meet regulatory demand, and to design and prepare the approved projects for the USDA financing.
Silveira told the council that the loans are only being done for the water system, as the city believes it can cover its short-term sewer system needs and projects design with city funds.
Cameron Weist, the city's independent bond counsel, said two banks were found that were willing to offer a variable rate line of credit to the city. If the loans were issued Tuesday, Weist said they would be 1.9 percent, with the market recently showing about a half-percentage point jump.
With approval of the proposed resolution, he said city staff could continue to work with him on the transaction, which would close in a few weeks and lock in a rate.
Weist, who analyzed the city's existing debt profile, said the loan would be against the city's water fund only.
According to Silveira's written report to the council, the city's water enterprise fund has two outstanding obligations – USDA bonds issued in 2000 at a 4.75-percent rate, in the original amount of $3,050,000, which have a final maturity date of Aug. 1, 2039; and a WestAmerica Bank loan, originally issued on May 30, 2002, at an initial amount of $873,577.18 and a 5.10-percent rate, which matures Nov. 1, 2017.
Weist said they are proposing to pay off the WestAmerica loan with the water notes, which are at a lower interest rate, in order to save the city money.
Silveira's report provided a brief list of projects the city needed to pursue to met regulatory requirements and system functionality. They included acquisition and installation of water meters and a supervisory control and data acquisition system radio communication system, well relocation and protection for existing city wells located in Scotts Creek, and extension, construction and looping of the existing 14-inch water mains on Parallel Drive and S. Main Street.
Councilman Marc Spillman, who previously has raised concerns about the expense and necessity of new water meters, questioned their inclusion on the list and asked if they were mandatory.
Brannigan said they're not, but there is a requirement for water systems to have lead-free fittings, and so they are looking at the new water meters as a way of reducing the potential for lead content.
Councilman Kenny Parlet moved to adopt the resolution approving the water revenue notes, which the council approved 5-0.
Among the other items the council decided Tuesday was an addendum to the application for Shipwreck Day on Sept. 23 submitted by the Lakeport Main Street Association, which wanted to be able to have vendors inside Library Park.
The council also unanimously denied a claim for damages submitted by Jessica King, who was hit in a crosswalk at S. Main Street and Lupoyoma Heights in January.
Council members approved a commendation for Lakeport Police Officer Stephanie Green for her efforts to save a drowning man on July 9. Police Chief Brad Rasmussen said the commendation and a police medal will be awarded to Green during the National Night Out event.
They also voted to transfer a mobile home located at unit No. 12 at Clear Lake Marina Mobile Home Park, 1400 S. Main St., to a new owner.
The city's former redevelopment agency had granted a rehabilitation loan from the low and moderate income fund to the home's former owner, who defaulted on the loan and abandoned it in May.
A new income-qualified individual who the city identified through the assistance of People Services now will take over the unit.
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