09/17/1981 Council Minutes - Laserfiche WebLink

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September 17, 1981 75 Mr. Jaworski felt that instead of ordering another feasibility study then deciding not to do the project, that at this time, the City should go ahead with the sale of the bonds, get all plans and specifications, and if it doesn't come within the guide lines - then abondon the project. Mr. Locher presented the affadivits of publication for the sale of the bonds - from Commercial West and teh Circulating Pines, Mr. Mattson reported thattwo (2) bids have been received for the sale of $2,150,000.00 of bonds. One bid from Marquette National Bank of Minneapolis and one from the First National Bank of Saint Paul, The Marquette National Bank bid was considered first. Mr. Mattson had provided forms for the Council to follow along with. Marquette National Bank will pay for the bonds - $2,109,150.00. Coupon rate is 11.20% making the total interest costs $763,250.00 for a net effective interest rate of 11.833 %. The bid from the First National Bank of Saint Paul with serveral co- managers, they will pay for the bonds $2,109,795.00 - their coupon rate is 10% making the cost $685,205.00 for a net effective interest rate of 10.6233 %. Mr. Mattson asked for a few minutes to check these figures. Mayor Gourley said the Council will recess for about five minutes. The meeting was reconvened. Mr. Mattson reported that he had reviewed the bids and they were correct. The bid of the First National Bank of Saint Paul is the low bid. He pointed out that thisis an excellent bid - it is at least one point lower than he had expected. Mr. Mattson recommended acceptance of this bid. Mr. Kulaszewicz asked, in your honest opinion, what is the shape of the over- all bond market and Mr. Mattson said, it is not good. Mayor Gourley said a Resolution for the acceptance - 81 -32 - which has been provided by the firm acting as bond counsel has been placed before the Council members. Mrs. Elsenpeter moved to adopt Resolution 81 -32 in its entirety awarding the bid to the First National Bank of Saint Paul for the sale of $2,150,000.00 bonds. Seconded by Mr. Jaworski. Mr. Locher asked that this motion read "to adopt the total Resolution as provided by Bond Counsel ". Mayor Gourley asked Mrs. Elsenpeter to amend her motion to read thus. Mrs. Elsenpeter so moved. Mr. Jawroski accepted the amendment. Mayor Gourley asked for discussion on the motion - there was none. The vote on the motion was as follows; Mr. Kulaszewicz - No; Mr. Jaworski - Aye; Mrs. Elsenpeter - Aye; Mr. McLean - No; Mayor Gourley - Aye. Mayor Gourley announced that the motion passed. Mr. Mattson said because of the amount of interest that can be earned on these bonds, they will set the date for delivery of the money in approximately three weeks. Mayor Gourley said he also has Resolution 81 -33 ordering the improvement and preparation of the plans and specifications. Mr. Jaworski moved to adopt Resolution 81 -33. Seconded by Mrs. Elsenpeter. There was no further dis- cussion. On the vote - Mr. Kulaszewicz - No; Mr. Jaworski - Aye; Mr. McLean -