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1 NEW BUSINESS <br /> 2 Miller Schroeder to Purchase $210,000 General Obligation Sewer Revenue • <br /> 3 Bonds to Cover Costs of Replacing Foss Road Lift Station <br /> 4 Daniel W. Hartman, Vice President of the above firm, indicated he was <br /> 5 advising that his firm purchase the bonds and serve as the underwriter, <br /> 6 thereby eliminating the adviser fees which would make the issuance costs <br /> 7 much higher than would be paid in underwriter costs. The agenda packet <br /> 8 had contained a copy of his September 15th memorandum on how he proposed <br /> 9 the issue be structured, including a debt service schedule for which he <br /> 10 offered a substitute document indicating the interest rates would be <br /> it 6.47% on a 7 year bond issue instead of the 6. 336% he had originally <br /> 12 estimated. <br /> 13 The Miller Schroeder executive indicated his staff had priced the issue <br /> 14 based on the bond market interest rate as of that date for other issues <br /> 15 of comparable value. He distributed two other reports with comparison <br /> 16 which he said he perceived supported that rate. <br /> 17 Mr. Hartman added that a $200,000. 00 issue would be more expensive to <br /> 18 market than one for a million dollars if his firm had gone to public <br /> 19 sale with the bonds. The rates would have been higher than two issues <br /> 20 that same day for West St. Paul and White Bear Lake which were much <br /> 21 larger and involved non-callable bonds. <br /> 22 Jerry Gilligan of Dorsey & Whitney, had prepared the necessary <br /> 23 documentation for the issue which had been distributed prior to the • <br /> 24 meeting. <br /> 25 Council Action <br /> 26 Motion by Marks, seconded by Enrooth to adopt Resolution 88-039. <br /> 27 RESOLUTION 88-039 <br /> 28 A RESOLUTION RELATING TO $210, 000 GENERAL <br /> 29 OBLIGATION SEWER REVENUE BONDS OF 1988; <br /> 30 AUTHORIZING THE ISSUANCE, AWARDING THE SALE, <br /> 31 FIXING THE FORM AND DETAILS, AND PROVIDING . <br /> 32 FOR THE EXECUTION AND DELIVERY THEREOF <br /> 33 AND SECURITY THEREFOR <br /> 34 Motion carried unanimously. <br /> 35 Contract for 5189,700 Awarded to NewMech Comjanies, Inc for Foss Road <br /> 36 Lift Station and Meter Vault Replacement <br /> 37 Leonard C. Newquist of Short-Elliott-Hendrickson, Inc. , project <br /> 38 engineer, reiterated the information contained in his September 22nd <br /> 39 letter to Larry Hamer, which had been included in the agenda packet. <br /> 40 Mr. Newquist indicated further that: <br /> 4 • <br />