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HomeMy WebLinkAbout06.23.2025.telecommunications_minutes Docusign Envelope ID:CDOA2BF1-D271-4F1E-ADC2-E826CB1A9C9B TELECOMMUNICATIONS UTILITY BOARD OF TRUSTEES Via Zoom June 23, 2025 - Special Session 4:00 p.m. 1. Members present: Mr. Van Fleet, Mr. Kurtenbach, Mr. Young, Mr. Batemon and Ms. Wienands. 2. Moved by Batemon seconded by Young that the agenda, as presented, be approved. Voice vote-Ayes: Five. 3. Moved by Kurtenbach seconded by Weinands that the Tax Exemption Certificate for not to exceed $60,000,000 (amount subject to change) Communications Utility Revenue Capital Loan Notes Anticipation Project Note, Series 2025A, be approved. Steve Nadel, Ahlers & Cooney, explained that items 3, 4 and 5 will all need to be tabled because there is not a proposal ready to accept. He shared that when there is a proposal ready, item 5 will need to be the first of these listed on the agenda, to accept the proposal. Mr. Kurtenbach withdrew the motion. 4. Resolution authorizing issuance of not to exceed $60,000,000 (amount subject to change) Communications Utility Revenue Capital Loan Notes Anticipation Project Note, Series 2025. 5. Resolution Directing the Acceptance of a Proposal to Purchase Not to Exceed $60,000,000 (amount subject to change) Communications Utility Revenue Capital Loan Notes Anticipation Project Note, Series 2025A. 6. Update from general manager and consultants. Travis Squires, Piper Sandler, shared that we currently have one proposal that is still subject to credit approval. It is uncertain whether they will get through the credit process by next Monday or not. They are looking to see if they can take on the full $60,000,000. There is active dialogue with another bank with the possibility of $15,000,000, and we remain hopeful we will hear back from them this week. Mr. Van Fleet questioned when the board might need to meet to discuss any proposals. Travis Squires explained that his initial thought is that they should be able to give Maggie an update by Friday of this week and then reset course. The board would be notified at least 48 hours before needing to meet but they will remain flexible to work around the board's schedule. He explained that even if a proposal were to get credit approval next Monday, it would likely not close until close to the end of July. Docusign Envelope ID:CDOA2BF1-D271-4F1E-ADC2-E826CB1A9C9B Page 2 Steve Nadel, Ahlers & Cooney, provided a high-level overview of tax-exempt financing, explaining that a lender does not pay federal taxes when they earn income or interest. He explained that there are limits to what the utility can do subject to the rules, then provided examples of private use and general public use. Mr. Van Fleet questioned if Eric Lage would be the one responsible for ensuring we stay within the rules. Steve Nadel commented that the board recently adopted a Post-Issuance Compliance Policy and that Eric Lage was named as the Compliance Officer and would therefore be the one to monitor that. He noted that he would be happy to set aside an hour or two to go through the policy as a training process. Travis Squires, Piper Sandler, commented that if it seems like it has financial implications, it is best to bring it before the board. He further commented that if there was any major turnover of administration staff, he would encourage you to bring in Steve Nadel and your bond attorney to bring them up to speed. Maggie Burger, Speer Financial, shared that they will continue to work with the utility to ensure spend-down timelines, etc. are met. Eric Lage, General Manager, commented that he would find it very helpful to meet with Steve Nadel for additional training on the Compliance Policy. Mr. Van Fleet questioned if a motion was needed to table items 3, 4 and 5. Steve Nadel confirmed. Moved by Kurtenbach seconded by Young to table items 3, 4 and 5. Voice vote-Ayes: Five. Motion carried. Eric Lage shared that he may have a position or two to appoint if we meet for another update on Friday, otherwise he might call for a special session. 7. Adjourn. With no further business before the board, it was moved by Young seconded by Batemon that the meeting be adjourned at 4:36 p.m. Voice vote-Ayes: Five. Motion carried. Signed by: ?Zcin ua ua 4 EECOA4420CDF4 F2.. Nancy Higby Deputy City Clerk