Officials approve loan refinancing

CLOVIS — An ordinance approval for the Clovis city commission on Thursday night was long in the title, but even longer in savings.

Following a brief explanation that meant more than $500,000 in interest savings on existing loans, the commission approved $9 million in loan refinancing.

The title of more than 250 words was read by Mayor Mike Morris in what was his first commission meeting with commission members in the room. The Thursday meeting at the Clovis-Carver Public Library was still closed to the public — except for online access — but commission members were set up at the dais and at tables distanced so everybody had more than 6 feet between them. Previously, Morris sat alone at the dais while other commissioners participated virtually.

The long title, City Manager Justin Howalt said, included required legal definitions to make changes to 2010 and 2011 loans that covered wastewater and parks and recreation upgrades.

“With the good interest rates that are available to us, we felt it would be the responsible thing to do to look at existing debt,” Howalt said.

During a brief presentation, Erik Haragan of RBC Capital noted the city would save about $320,000 on a 2010 loan that covered wastewater treatment plant upgrades and $220,000 on a pair of loans that helped purchase the Colonial Park Golf Course and set other quality of life initiatives in motion. The city would retain the option to keep the loan payoff dates the same, or move each one back a year and frontload most of the savings by deferring a payment cycle.

Morris asked commissioners if they had any questions. Hearing none, he asked in jest, “Would anyone like me to read the title again?” before the 8-0 vote.

In other business at the commission meeting:

• The commission announced a special commission meeting would be held 2 p.m. Tuesday at the North Annex of the Clovis-Carver Public Library. The meeting agenda includes acceptance of federal coronavirus relief funding for Clovis Area Transit System and submission of the preliminary 2020-21 city budget.

The budget submitted to the state will be the 2019-20 budget with adjustments for project completions and carryovers. The city plans to track revenues and prepare a more realistic budget before the final budget is required in July. The preliminary budget includes no salary increases.

• The commission voted to allow for sewer bill reductions for hoteliers impacted by occupancy limitations during the pandemic.

Howalt said in the past, property managers for rental units have sought and received reduced sewer rates for vacant properties. The process wasn’t done for hotels because sporadic rental numbers are difficult from an accounting standpoint, but Howalt said when there are public health orders capping occupancy “we can adjust their sewer bills by the same percentage.”

The measure is expected to cost the city $4,500 per month, and Howalt said it would stay in place until hotels could resume at full occupancy. Morris told Howalt it was an excellent idea, and appreciated him for seeking it out.

• By a 7-1 vote, the commission voted to allow beer and wine sales at the Oct. 17 575 Food Fest and Under Over Festival.

Organizer Jenni Hanson said the two events, each held last year in Hillcrest Park, were a good fit to just combine forces for one large festival.

When Commissioner Gary Elliott inquired about a map of the beer and wine garden being absent from the application, Hanson noted the location would be the same as last year with a northwest area of the park fenced off and managed by Red Door Brewery.

Last year’s food truck festival drew more than 3,000, with Hanson noting she would have been happy to get 500 for the inaugural event.

Elliott, who has traditionally voted against variances for alcohol sales, was the dissenting vote.

• The commission approved an agreement with Consensus Planning for a metropolitan redevelopment area plan, with $50,000 of the $60,000 effort coming through state funding.

The company has worked with the city before on its strategic plan and a parks and recreation master plan.

Jackie Fishman said the redevelopment plan deals with blight by allowing a city to incentivize private development without running afoul of the state antidonation clause.

She hoped to have a plan done in nine months, followed by a couple of months for review and public comment, but noted circumstances remained unpredictable in the pandemic.

“My office has been working at home since March 16,” Fishman said. “We are doing pretty well with it, but it is pretty challenging for us.”

• Commission members extended their condolences to District 4 Commissioner Rube Render, whose wife Marge died earlier in the week. Render thanked the commissioners and Morris for their concerns and prayers.

• The next regular commission meeting is scheduled for 5:15 p.m. June 4 at the North Annex of the Clovis-Carver Public Library.