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City Council Regular Meeting Minutes December 11, 2006 Page 4 1 C. Resolution 06 -095; Approving Revised Contract for Police Services for Lauderdale 2 3 City Manager Morrison informed Council that the City of Lauderdale has requested an increase 4 in police coverage from 16 to 24 hours. He indicated the cost for the three -year contract would 5 be $519,000 in 2007, $548,100 in 2008, and $578,250 in 2009 6 7 Motion by Councilmember Thuesen, seconded by Councilmember Gray, to adopt Resolution 06- 8 095, a Resolution Amending the Joint Powers Agreement for Police Services with the City of 9 Lauderdale with Increasing the Contract Hours to 24 Hours From 15 Hours he Contingent upon 10 Approval of the Amended Joint Powers Agreement by the City of Lauderdale. 11 12 Motion carried unanimously. 13 14 Mayor Faust stated it was his understanding the City of Lauderdale approved the budget for the 15 increased police coverage and would approve the Joint Powers Agreement. 16 17 18 D. Resolution 06 -096; Authorizing the Sale and Issuance of Variable Rate Demand 19 Multifamily Housing Revenue Bonds (The Landings at Silver Lake Village Project), 20 Series 2006; Establishing the Security therefore and Authorizing the Execution of 21 Documents. 22 23 City Attorney Lindgren stated resolution 06 -096 deals with the financing for the Landings at 24 Silver Lake Village residential area. He reported the developer currently has three series of multi 25 family housing bonds out. He stated the resolution is a refunding vehicle for a debt 26 consolidation under which the City has already participated. He explained the financing is not a 27 liability of the City, but a conduit financing that allows the developer to use a financing structure 28 that allows them to have a portion of the debt be on a tax exempt basis where the interest earned 29 on the bonds is not taxed by the Federal Government. He explained the debt services on the 30 bond are paid solely by the borrower with no liability with respect to the bond by the City. 31 32 City Attorney Lindgren explained the documents being approved in the resolution relate to 33 $6,400,000 of multi family housing bonds that would refund one of the existing series of bonds 34 previously approved by the City Council. He stated the reason the developer wants to do this is 35 that they found a lender that would save them effort in how this is handled in addition to the cost 36 savings. He mentioned it is not in essence a new debt, but a tool to do what was already 37 approved by City Council. 38 39 Mayor Faust restated this is not a liability to the City; rather it is being a good partner in Silver 40 Lake Village and the business that is already there. 41 42 Councilmember Stille stated this adds value to the property, which is good for the City. He 43 mentioned this is a conduit that the City provides for lower rates than in the open market. He 44 stated it appears the reason the developer is able to do this is because they took the construction 45 and up risk out, which enabled them to find more favorable rates. 46