05/24/2010 Council Packet - Laserfiche WebLink

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COUNCIL MINUTES May 10, 2010 DRAFT 46 47 Annual Renewal of Otter Lake Animal Control Contract Approved 48 49 FINANCE DEPARTMENT REPORT, AL ROLEK 50 51 2A. Resolution No. 10 -42 Awarding the Sale of $1,015,000 General Obligation Improvement 52 and Utility Revenue Refunding Bonds, Series 2010A — Finance Director Rolek explained that the 53 resolution before the council would continue a process that the city embarked upon in April, namly 54 refunding of one of the city's outstanding debt issues. The bonds are general obligation utility 55 revenue bonds issued in 2004. The savings originally anticipated by staff were in the area of $40,000 56 to the city. He introduced Ms. Terri Heaton of Springsted, Inc., the city's bond consultant in this 57 matter, to explain the current status of the proposed bond issuance. 58 59 Ms. Heaton reported that a bid opening for the bond sale was held earlier this day with a low bidder 60 identified and an actual interest rate identified. Based on the results she reported that the savings to 61 the city in issuing these refunding bonds will be approximately $36,000. She noted that the amount of 62 the bonds actually dropped to $1,000,000. She added that the city's bond rating has improved based 63 on it's good credit standing and that contributes to a low borrowing rate. 64 65 Mr. Rolek stated that he is recommending passage of a resolution approving the bond sale under the 66 terms explained by Ms. Heaton. 67 68 The council commented on the improvement in the city's bond rating; that is certainly good news as it 69 saves the city money. 70 Council Member Roeser moved to approve Resolution No. 10 -42 as amended to reflect the changes 71 explained by bond counsel. Council Member Gallup seconded the motion. Motion carried on a 72 unanimous voice vote. 73 74 ADMINISTRATION DEPARTMENT REPORT, DAN TESCH 75 76 3A. Consider Lease Agreement with North Memorial Ambulance — Acting Administrator Tesch 77 noted that North Memorial Ambulance services have been using space at the Centennial Fire District 78 facility in Lino Lakes for many years. Staff was directed to negotiate a lease for this space and has 79 done so with the assistance of city attorney Joseph Langel. 80 81 Mr. Langel explained that discussion about the lease agreement has been ongoing between himself 82 and a North Memorial legal representative. The proposed agreement meets with his approval but Mr. 83 Langel pointed out that North Memorial is interested in getting some indemnification language from 84 the city included; that is not included at this time. He is recommending that the council may approve 85 the agreement subject to final review by the city attorney. If any substantive change to the agreement 86 were to occur, it would be brought back to the council for consideration. 87 88 Council Member Gallup moved to approve the agreement as recommended by the city attorney. 89 Council Member O'Donnell seconded the motion. Motion carried on a unanimous voice vote. 90