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Home My WebLink AboutCity Council - 12/22/1987 - Special Meeting SPECIAL MEETING EDEN PRAIRIE CITY COUNCIL TUESDAY , DECEMBER 22, 1987 4:00 PM, CITY HALL COUNCIL CHAMBERS 7600 Executive Drive COUNCIL MEMBERS: Mayor Gary Peterson, Richard Anderson, George Bentley, Jean Harris, and Patricia Pidcock CITY COUNCIL STAFF: City Manager Carl J. Jullie, City Attorney Roger Pauly, Assistant to the City Manager Craig Dawson, and Finance Director John F rane ROLL CALL: All members present. Mayor Peterson called the meeting to order at 4:05 PM. All Councilmembers were present except Councilmember Anderson who arrived at 4:25 PM. I . APPROVAL OF AGENDA Councilmember Bentley moved, and Pidcock seconded, to approve the agenda. Motion passed 4 - 0. iI . APPROVAL OF SALE OF $5 000,000 GENERAL OBLIGATION WATER AND SEWER BOND Resolut an No 87-334) Finance Director Frane introduced Sill Fahey of Ehlers and Associates. Mr. Fahey noted that interest rates in the municipal bond market had come down over the past few weeks. This trend was evident in the bids received and just opened by the City. The Finance Director presented affidavits showing publication in the official newspaper and in Commercial West of the notice of sale of $5,000.000 General Obligation Water and fewer Revenue Bonds, Series 1987 of the City, bids for which were to be considered at this meeting as provided by the resolution of the City Council adopted November 17, 1987. The affidavits were examined and approved and ordered placed on file in the office of the Finance Director-Clerk. It was reported that five sealed bids for the purchase of said bonds had been received from the following institutions at or before the time stated in the notice. The bids, having been opened and tabulated by the Finance Director-Clerk as provided in the notice of sale, were then publicly read and considered, and were all found to conform to the notice of sale and the terms and conditions of sale and to be. accompanied by the required security. A summary of the bids received follows: Net Net Bidders Interest Cost Interest Rate Clayton Brown & Assoc. , Inc. et al $4,883,362.08 7.4710 Dain Bosworth, Inc. et al . 5,089,740.42 7.7867 Cronin & Company, Inc. 4,904,423.75 7.50326 Norwest Investment Services, Inc. et al . 5,021,501.45 7.68237 Prudential Bache Capital Funding et al . 5,128,452.85 7.8460 Special City Council Minutes - 2 - Tues. ,December 22, 1987 Mr. Fahey said that the bids were very favorable and strongly recommended the bid by Clayton Brown & Associates, Inc. et al . He ' noted that the proposed resolution named American National Bank of St . Paul as the registrar for the bonds, and that the Council could name another registrar during the term of the bonds. Councilmember Bentley stated that the interest rate for these 20- year bonds was markedly down from the market indices of a week or two earlier. Mr. Fahey said the demand for tax-exempt bonds far exceeded the supply in the market earlier, and further stated that this demand was much higher now than market experts generally expect at this time of year. Mr. Fahey believed that interest rates achieved on this sale would be more like those given for Al- or AA-rated municipalities. Mr. Fahey suggested future discussions with Council about refunding some high-interest debt that the City issued a few years ago. Bentley moved and Pidcock seconded the adoption of Resolution Number 87-334 relating to the details of the issuance of the bonds and awarding them to Clayton Brown and Associates, Inc. et al . per the terms of its bid. Motion passed 4 - 0. III . ORDER TO CORRECT HAZARDOUS CONDITION ON SEAVALL PROPERTY City Manager Jullie introduced the item and deferred to City Attorney Pauly to review progress on the matter. Mr. Seavall and his attorney were present. 4 Before Pauly began his presentation, several Councilmembers men- t tioned schedule conflicts they would have if this matter were fully discussed this evening. Pidcock asked Pauly how long the discussion would take, and he estimated 45 to 60 minutes. Pidcock suggested postponing consideration fo this issue to another time. Harris wished to have additional background information on the case and/or a staff presentation at the beginning of that meeting. Harris moved and Pidcock seconded that a special meeting be held to consider this matter at 4:45 PM, Monday, December 28, 1987. Motion 1 passed 4 - 0. a Bentley left at 4:25 PM. Anderson arrived at 4:25 PM. IV. OTHER BUSINESS A. Appointment of Legislative Contact for AMM Anderson moved and Harris seconded that Mayor Peterson be appointed the City's Legislative Contact for the Association of Metropolitan Municipalities (AMM) . Motion passed 4 - 0. Anderson requested briefings of these activities during Council a meetings. V. ADJOURNMENT The meeting was adjourned at 4:30 PM. x s 1 my i '? 3.T E f t,3!' ' -t - T- '' "i l j: c:. `. ! T-e F.. -I TY 11.1V•!f', -r,- r E !•EET .[WG OF J: � ^.I -r;lE. C(-JUNC: T C C fl-yi=ai'�«c 17-,; f r:f_ i 'J1 F 0 ;f= f1F. THE i`lt'F_ 11�J THE = "':� ta:';::? t"�(jr j (7:F�I_.E "ti• t1 ! _7 I,•1r��th fI !I. !_ 7VIt.7 t 3 M S t ! 1 ! i s r x f BID TABULATION $5.000.000 General Obligation Water & Sewer Revenue Bonds City of Eden Prairie. Minnesota SALE: Tuesday. December 22. 1987 AWARD: CLAYTON BROWN & ASSOCIATES. INC. RATING: Moody's. 'A' BBI: 8.01% COUPON NET INTEREST COST NAME OF BIDDER RATE YEAR & RATE PRICE CLAYTON.BROWN h ASSOCIATES. INC. 6.00% 1989 $4.883.362.08 $4,902.000.00 Chicago, Illinois 6.20% 1990 -1991 BLUNT. ELLIS & LOEWI. INC. 6.90% 1992 -1998 7.4710% Chicago. Illinois 7.00% 1999 GRIFFIN. KUBIK. STEPHENS & THOMPSON. INC. 7.10% 2000 Chicago. Illinois 7.20% 2001 7.2 5% 2002 7.40% 2003 7.50% 2004 -2008 CRONIN & COMPANY. INC. 5.40% 1989 $4.904.423.75 $4.920.000.00 Minneapolis. Minnesota 5.60% 1990 5.90% 1991 7.5032% 6.00% 1992 6.20% 1993 6.40% 1994 6.6Q% 1995 6.70% 1996 6.90% 1997 6.90% 1998 7.00% 1999 7.10% 2000 7.20% 2001 7.30% 2002 7.40% 2003 7.50% 2004 7.60% 2005 7.70% 2006 7.75% 2007 —2008 Ehlers m!Am1'AMAN& LIFADFIIS Oil FUGLIC FINANCE w+a sas-sa�� COUPON NET INTEREST COST NAME OF BIDDER RATE YEAR & RATE PRICE NQRWEST INVESTMENT SERVICES. INC. 5.50% 1989 $5.021.501.46 $4.907.500.00 Minneapolis, Minnesota 5.75% 1990 IAN & MOODY, INC. 5.90% 1991 7.6823% mot. Paul. Minnesota 6.10% 1992 American National Bank & Trust Company 6.25% 1993 Dougherty. Dawkins. Strand h Yost. Inc. 6.40% 1994 M.H. Novick h Company. Inc. 6.60% 1995 6.7 5% 1996 IN ASSOCIATION WITH - 6.90% 1997 7.00% 1998 PIPER, JAFFRAY & HOPWOOD INC. 7.10% 1999 Minneapolis. Minnesota 7.25% 20W THE FIRST NATIONAL BANK OF ST. PAUL 7.40% 2001 FIRST NATIONAL BANK OF MINNEAPOLIS 7.50% 2W2 Minneapolis. Minnesota 7.60% 2003 Robert W. Baird h Company. Inc. 7.70% 2004 Craig-Hallum. Inc. 7.eC% 2005 Marquette Bank Minneapolis. N.A. 7.90% 2006 -2008 RAIN BOSWORTH. INC. 5.60% 1989 $5.089.740.42 $4.910.000.00 Minneapolis, Minnesota 5.80% 1990 MILLER SECURITIES, INC. 6.00% 1991 7.7867% Minneapolis, Minnesota 6.20% 1992 MERRILL LYNCH CAPITAL MARKETS 6.40% 1995 Chicago. Illinois 6.60% 1994 KIDDER, PEABODY h COMPANY, INC. 6.75% 1995 ^hicago. Illinois 6.90% 1996 7.00% 1997 7.10% 1998 7.25% 1999 7.40% 2000 7.50% 200I 7.60% 2002 7.70% 2003 • 7.80% 2004 7.90% 2005 8.00% 2006 -2006 PRUDENTIAL-BACHE CAPITAL FUNDING 5.75% 1989 $5.128.452.85 $4.905.000.00 3 Chicago. Illinois 6.00% 1990 f SHEARSON LEHMAN BROTHERS, INC. 6.20% 1"1 7.8460% Chicago. Illinois 6.40% 1992 SMITH BARNEY. HARRIS UPHAM 6.55% 1993 h COMPANY. INC. 6.70% 1994 Chicago. Illinois 6.85% 199S DEAN WIT TER REYNOLDS. INC. 7.00% 1996 Chicago. Illinois 7.15% 1997 First Tennessee Bank. N.A. 7.30% 1998 a 7.40% 1999 7.50% 200D 7.60% 2001 7.70% 2002 7.80% 2003 7.85% 2004 7.90% 2005 7.95% 2006 8.00% 2007 -2008