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Special City Council Meeting Minutes June 30, 2014 Page 2 Bonds, Series 201413; Awarding the Sale, Fixing the Form and Details, and Providing for the Execution and Delivery Thereof and Security Therefor. 4 Motion carried unanimously. 6 B. Resolution 14-051; a Resolution Authorizing Issuance. Awarding Sale, Prescribing the 7 Form and Details and Providing for the Payment of $1,330,000 General Obligation 8 Refunding Bonds, Series 2014C. Stacie Kvilvang, Ehlers & Associates, presenting. 9 10 Ms. Kvilvang stated that the refunding amount has been reduced to $1,305,000 and advised that 11 the bond sale was held at 11:00 a.m. today with five bids received and the low bidder was Baird. 12 She indicted this represents a true interest cost of 2.1% and is approximately 12 basis points 13 higher than expected, representing a present value savings of $75,000 or $7,000 per year over the 14 remaining term of the bond, a savings percentage of 5.3%. She noted that Councilmember Stille 15 inquired whether negative arbitrage exists and explained that because of the refunding in 16 advance of 90 days of the call date, the City typically issues more in bonds to cover the cost of 17 interest on the new bonds and this is inclusive with negative arbitrage and the cost of issuance. 18 19 Motion by Councilmember Gray, seconded by Councilmember Jenson, to adopt Resolution 14- 20 051; a Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and 21 Providing for the Payment of $1,305,000 General Obligation Refunding Bonds, Series 2014C. 22 23 Motion carried unanimously. 24 25 C. City Council Receives Organized Collection Proposal. Mark Casey. City Manager, 26 presenting. 27 28 City Manager Casey advised the City has been operating under authority of Minn. Stat. § 29 115A.94 (Organized Collection Statute) in accordance with three main criteria, including the 30 proposal must include identified city priorities, must reflect existing haulers maintaining their 31 respective market share, and the initial organized collection agreement must be for a period of 32 three to seven years. He stated on April 30, 2014, the City provided public notice to the haulers 33 that the City was entering into a 60 -day exclusive negotiation period and representatives from 34 three haulers attended several meetings with City staff. He indicated the first meeting involved 35 providing general information as well as the City's priorities, specifications, and timeline, and 36 key to the City's expectations was that the negotiations would be conducted in good faith while 37 maintaining the exclusivity contemplated by the Organized Collection Statute. He advised that 38 the haulers were in general agreement with the City's timeline; the haulers raised concerns over 39 the proprietary nature of the market share information and in order to protect this information, it 40 will be redacted from the public version; and the haulers addressed concerns over aspects of the 41 draft specifications, some of which related to the perceived and impractical nature of 42 specifications within a consortium -style system. He stated that the City responded to the 43 concerns and all parties are in agreement with the revised specifications as of June 10, 2014. He 44 stated that City staff will provide further analysis of the content of the proposal to be delivered to 45 the City Council prior to the July 8, 2014, City Council meeting and City staff recommends that 46 the City Council review the proposal, draft agreement, and staff analysis and undertake one of 47 four options: (1) set a date for the public hearing to take action on the contract on July 8, 2014, 48 (2) direct staff to continue exclusive negotiations with the haulers to address concerns, (3) reject