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254 <br />COUNCIL MEETING JULY 8, 1991 <br />Kuether abstaining. <br />RESOLUTION NO. 61 - 91 AWARDING THE SALE OF $4,260,000.00 GENERAL <br />OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A <br />Mr. David MacGillivray, Springsted, Inc. explained that bids were <br />received this morning on this bond issue. He gave the Council <br />copies of each of the four bids. Mr. MacGillivray explained that <br />the proceeds of this bond will refinance a small portion of the <br />1988 General Obligation Temporary Improvement Bond and five <br />subdivision improvements currently in progress and the <br />construction of the Reshanau Trunk Sewer currently in progress. <br />Mr. MacGillivray noted that FBS Investment Services, Inc. was low <br />bid. This bid is very close to the estimate he had prepared and <br />Mr. MacGillivray recommended approval of this bid. <br />Mr. MacGillivray explained that because of the size of this bond <br />issue ($4,260,000.00), Juran & Moody's in New York reviewed the <br />credit rating for this City. A BAA rating was issued which is <br />the same as last year. Mr. MacGillivray explained that it is <br />normal to receive this number of bids with this credit rating. <br />Council Members asked Mr. MacGillivray questions regarding how <br />the credit rating was established. Mr. MacGillivray explained <br />the process. He also presented a Connection Report to the <br />Council and explained that this is a method of monitoring whether <br />or not the connections projected for each new development is <br />actually occurring. Mr. MacGillivray explained that the Council <br />will receive updated copies of this report at least annually. He <br />noted that it is essential that growth is focused where <br />improvements are already in the ground and where connection <br />charges are needed to pay for the improvement bonds. <br />Council Member Kuether asked what would happen if the housing <br />market completely stopped. Mr. MacGillivray explained that the <br />City has a developers agreement with the developer. This <br />agreement says that approximately three years of assessments must <br />be guaranteed by a letter of credit. This allows the City time <br />to acquire the property in the event that taxes and assessments <br />are not being paid as agreed. <br />Council Member Reinert moved to accept Mr. MacGillivray's <br />recommendation and award the bid to FBS Investment Services, Inc. <br />for $ 4,260,000.00. Council Member Kuether seconded the motion. <br />VOTING ON THE MOTION: <br />Bisel <br />Neal <br />Bohjanen <br />Reinert El <br />Kuether <br />PAGE 2 <br />