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City of St. Anthony, Minnesota <br /> June 3, 1993 <br /> they paid prior to receipt of bond proceeds, it must have made a declaration of that intent prior <br /> to the payment of the expense. There are exemptions for architectural and engineering fees <br /> and miscellaneous start-up costs. It is our understanding the City has and will take whatever <br /> actions are necessary to comply with the federal reimbursement regulations in regards to this <br /> issue. <br /> Sure-Bid <br /> Springsted Incorporated has joined with Capital Guaranty Insurance Company, a municipal <br /> bond insurer, to offer a surety bond service to underwriters in lieu of putting up a good faith <br /> check in order to bid on the bonds. The program is called "Sure-Bid" and we have allowed for <br /> its use in the Terms of Proposal attached to these recommendations. We believe that the use <br /> of this bidding option will help garner more bids for the bond sale, since it has the potential to <br /> make it easier for an underwriter to bid. There is no cost to the City for this service, and <br /> Springsted Incorporated does not have a financial interest in the use of Sure-Bid. <br /> For underwriting firms which have been approved and have entered into a reimbursement <br /> agreement with Capital Guaranty and have elected to use Sure-Bid instead of physically <br /> delivering a good faith check with their bid, Capital Guaranty will put up a surety bond, <br /> guaranteeing the amount of the good faith check to the City if the purchaser does not deliver <br /> such check to Springsted by 3:30 P.M. the day after the sale. We believe that we will not have <br /> to invoke the surety bond on your behalf and will forward the good faith check from the <br /> purchaser as soon as we receive it. <br /> Sale Process <br /> We recommend this issue be offered for sale on Tuesday, July 13, 1993 with bids received in <br /> the offices of Springsted Incorporated at 1:00 P.M. Subsequent to the receipt of bids, we will <br /> tabulate the results and present them to the City Council for consideration of award at 7:00 <br /> P.M. the same evening. A representative of Springsted Incorporated will attend the sale and <br /> the Council meeting to provide recommendations as to the acceptability of bids received. <br /> Proceeds are projected to be available in mid-August. <br /> Respectfully submitted, <br /> SP A I NGSTED Incorporated <br /> mmc <br /> Page 3 <br />