City 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.
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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