Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
September 28, 2009
The city council of the city of Grand Forks, North Dakota met in special session in the council chambers in City Hall on Monday, January 5, 2009 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; absent: Council Member Bakken - 1.
Mayor Brown announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.
ADOPT RESOLUTIONS AUTHORIZING ISSUANCE
AND AWARDING SALE OF VARIOUS BOND ISSUES
The staff report from the finance department relating to award of sale of the following bond issues:
$9,040,000 Sanitation Reserve Revenue Bonds, Series 2009A
$3,755,000 Sewer Reserve Revenue and Refunding Bonds, Series 2009B
$8,095,000 Refunding Improvement Refunding Bonds, Series 2009C
$6,015,000 Water Reserve Revenue Refunding Bonds, Series 2009D
with recommendation to adopt resolutions award the sale of the above mentioned bonds.
Brenda Krueger, Springsted Incorporated, reported handouts had been distributed to council members along with a bid tab; that today the market is at a 40-year low and as a result received lower interest rates than anticipated, that the principal amount of the bonds is lower in all counts than anticipated and received higher savings on all of the refundings. There were 3 and 4 bidders on each series, Robert W. Baird & Co., Inc. bought Series A, Sanitation, and Series B, Sewer, which included refunding. Hutchison, Shockey bought Series C, refunding improvement refunding bonds, and Series D, which were the Water Refunding bonds. The lowest TIC rate is 3.64% on Series A which is a 30 year sanitation bond; that they received four bids and all bid as Build America Taxable Bonds, and rate of 3.64% is adjusted for the 35% interest credit that you will get over the 30 years. The credit rating on all issues is a Aa3, and term of the bonds go from 30 years on A to 20 years on B and 12 and 11 years consecutively on C and D. Savings on the bonds - no savings on the A, however, because we received a premium bid from the underwriter the par amount of those bonds principal is $160,000 lower than originally structured; on Series B the actual present value savings is $176,000; on Series C which are the refunding improvement refunding bonds, total savings is $827,000; and on Series D, have two numbers because we have a current refunding and advanced refunding, and total savings of $300,000 more than originally projected.
She stated that investors are very interested in City of Grand Forks' bonds and very good competition today. The rating was firmed to Aa3 rating, that continued growth in your tax base, low unemployment of 3.9% in Grand Forks and state compared to 9.7% for the U.S,; healthy financial operations and balanced budgeting. She stated that if need to use Debt Service Reserve on Reserve Revenue Bonds to replenish the Debt Service Reserve with a tax levy; and that if you ever needed to do that the rating agency is confident that you would have enough time to put a levy into your next budget cycle and emphasized that has never happened in the city of Grand Forks and that your enterprise funds are very healthy. But from a credit rating standpoint your rating is based on your ability to pay and making sure that the timing of the payments coincides with your levy cycle was very important. Based on that she recommended that the council adopts the resolutions before you and award the bonds.
It was moved by Council Member Gershman and seconded by Council Member Kreun that the recommendation be approved. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried.
ADOPT RESOLUTION AUTHORIZING ISSUANCE AND
AWARDOING THE SALE OF TAXABLE SANITATION
RESERVE REVENUE BONDS, SESRIES 2009A
The acting city auditor presented an affidavit showing publication in the official newspaper of the City of the Notice of Bond Sale of $9,040,000 Taxable Sanitation Reserve Revenue Bonds, Series 2009A (the "Bonds") of the City, bids for which were to be considered at this meeting as provided by resolution adopted September 8, 2009. The affidavit was examined and approved and ordered placed on file.
The acting city auditor reported that 4 sealed bids for the purchase of the Bonds had been received from the following institutions at or before the time stated in the Notice of Bond Sale, and the bids were then opened and publicly read and considered, and were all found to conform to the Notice of Bond Sale and to be accompanied by the required security, and the purchase price, interest rates and net interest cost under the terms of each bid were found to be as follows: (Attached).
Council Member Gershman introduced the following resolution and moved its adoption, which motion was seconded by Council Member Kreun: Document No. 9236 - Resolution.
Upon vote being taken thereon, the following voted in favor thereof: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.
ADOPT RESOLUTION AUTHORIZING ISSUANCE AND
AWARDING SALE OF SEWER RESERVE REVENUE AND
REFUNDING BONDS, SERIES 2009B
The acting city auditor presented an affidavit showing publication n the official newspaper of the City of the Notice of Bond Sale of $3,755,000 Sewer Reserve Revenue and Refunding Bonds, Series 2009B (the "Bonds") of the City, bids for which were to be considered at the meeting as provided by resolution adopted September 8, 2009. The affidavit was examined and approved and ordered placed on file.
The acting city auditor reported that 3 sealed bids for the purchase of the Bonds had been received from the following institution at or before the time stated in the Notice of Bond Sale, ands the bids were then opened and publicly read and considered, and were all found to conform to the Notice of Bond Sale and to be accompanied by the required security, and the purchase price, interest rates ands newt interest cost under the terms of each bid were found to be as follows: (Attached)
Council Member Gershman introduced the following resolution and moved its adoption, which motion was seconded by Council Member Kreun: Document No. 9237 - Resolution.
Upon vote being taken thereon, the following voted in favor thereof: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.
ADOPT RESOLUTION AUTHORIZING ISSUANCE,
AWARDING SALE, PRESCRIBING FORM AND
DETAILS AND PROVIDING FOR PAYMENT OF $7,560,000
REFUNDING IMPROVEMENT REFUNDING BONDS,
SERIES 2009C
Council Member Gershman introduced the following resolution and moved its adoption, which was seconded by Council Member Kreun: Document No. 9238 - Resolution.
Upon vote being taken thereon, the following voted in favor thereof: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.
ADOPT RESOLUTION AUTHORIZING ISSUANCE AND
AWARDING SALE OF WATER RESERVE REVENUE
REFUNDING BONDS, SERIES 2009D
Council Member Gershman introduced the following resolution and moved its adoption, which motion was seconded by Council Member Kreun: Document No. 9239 - Resolution.
Upon vote being taken thereon, the following voted in favor thereof: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.
APPROVE ASSIGNMENT AND AMENDMENT OF
EXISTING REMARKETING AGREEMENT FOR
VARIABLE RATE DEMAND INDUSTRIAL REVENUE
BONDS, SERIES 1999
The staff report from the director of urban development relating to assignment and amendment of existing remarketing agreement for $5 Million, City of Grand Forks, ND, Variable Rate Demand Industrial Revenue Bonds, Series 1999, with recommendation to approve Grand Forks Regional Economic Development Corporation (EDC) consenting to remarketing agreement.
It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.
ADJOURN
It was moved by Council Member Gershman and seconded by Council Member Bjerke that we adjourn. Carried 6 votes affirmative.
Respectfully submitted,
Maureen Storstad for
Saroj Jerath, City Auditor
Approved:
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Michael R. Brown, Mayor