Special Council Meeting Minutes October 27, 2020

Special Council Meeting Minutes
October 27, 2020 - Council Chambers, Ely City Hall

CALL TO ORDER
Mayor Novak called the Special Council Meeting to order at 5pm on October 27, 2020.

PRESENT: Council members A.Forsman, Kess, Debeltz, Omerza, Callen, Campbell, and Mayor Novak
ABSENT: None

OLD BUSINESS: None

NEW BUSINESS
A. Bond Sale Summary – George Eilertson
Eilertson stated that the proceeds from the Bonds will be used to current refund the 2022 through 2030 maturities of the City’s General Obligation Capital Improvement Plan Bonds, Series 2014A on February 1, 2021 and to pay costs associated with the issuance of the Bonds.
The bonds have been structured to result in relatively level annual savings and annual debt service payments over the life of the Bonds, which is similar to the original structure of the 2014A Bonds.
Eilertson indicated that the City of Ely received an AA- S&P bond rating which is a very good bond rating. The final maturity will be February 1, 2030 with an optional call on February 1, 2028. The total par amount is $1,735,000 with a true interest cost (TIC) of 1.18%. The TIC was 3.29% before the refinancing. The total savings will be $180,857.

Debeltz/Callen moved to approve the 2020-040 Resolution Providing for the Issuance, Sale and Delivery of $1,735,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020A. Roll Called: Council Member A.Forsman- Yes, Kess – Yes, Debeltz-Yes, Omerza -Yes, Callen – Yes, Campbell-Yes, and Mayor Novak – Yes. Motion Carried Unanimously.

Kess/Omerza moved to approve the Bond Purchase Contract to purchase $1,735,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020A. Motion Carried Unanimously.

B. CARES Act Funding Business Applications (Ad Hoc Committee is meeting on Monday to discuss the applications)
Langowski indicated that Omerza and Kess reviewed the applications with assistance of John Fedo and himself on Monday, October 26, 2020. Twenty applications were received. One of these applications was withdrawn after submission due to receiving State assistance and one of the submissions was from a non-profit (not-eligible). The eighteen qualifying applications were in the following tiers: Tier 1(Restaurants, Bars, Hair Salons, Gyms, Dentist/Eye Clinic): 8 applications, Tier 2 (Lodging, Outfitting, Bait and Tackle Shops): 3 applications, Tier 3 (General Retail): 7 applications.

Kess/Omerza moved to award Tier 1 applicants $3,500 each, Tier 2 applicants $2,500 each, and Tier 3 applicants $1,500 each. This would total $36,000 for eligible applications received. An additional mailing will be sent to non-profits that maintain a store front business in the City, these businesses is awarded $1000. The applications would be due November 6th with consideration for the award of funds at the November 10th Council Meeting. Motion Carried Unanimously.

Mayor Novak asked for the names of the businesses receiving the CARES money’s.
Langowski indicated that the Tier 1 business are Studio North, Jasper Company, Northern Expressions, Heavy Metal Sports, Rockwood, Amici’s, Zaverl’s Bar, and Sir G’s. The Tier 2 businesses are Arrowhead RV, Women’s Wilderness Discovery, and Motel Ely. The Tier 3 businesses are Kondos Outdoors, Potluck, Art and Soul Gallery, Wintergreen, Ely Bike and Kicksled, Kekekabic Studios, and Hand Done T-Shirts.

ADJOURN
Mayor Novak adjourned the meeting at 5:15pm without objection.

Casey Velcheff
Deputy Clerk

Ely Echo 11/2/2020