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City Council Minutes October 18, 1999 Page 2 e COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.1. Resolution 99- Providina for the Issuance and Sale of the City's General Obliaation Improvement Refundina Bonds, Series 1999B Dave MacGillivray of Springsted, Inc., City of Elk River's bond consultant, reviewed the bids for the Series 1999B G.O. Improvement Refunding Bonds that refund the 1994A Improvement Bonds. The low bidder was John G. Kinnard & Company at an interest rate of 5.0892 percent. He explained that due to the increased interest rates, he is recommending that the city reject the bids and negotiate with the bidders for a 4.90 percent rate. COUNCILMEMBER DIETZ MOVED TO APPROVE RESOLUTION NO. 99-75, A RESOLUTION AUTHORIZING DEFEASANCE OF THE CITY'S GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1994E. COUNCILMEMBER THOMPSON SECONDED THE MOTION. e Councilmember Motin asked what the savings would be by authorizing the defeasance. Mr. MacGillivray stated that the city would save approximately $207,000 as a result of the defeasance and the goal for the refunding issue was to save $65,000 in reduced future interest costs. Councilmember Motin questioned how the interest costs compared to investing the funds. Finance Director Lori Johnson explained that the city could only reinvest at a certain rate due to federal regulations. She explained that the city would like to retire the debt thereby reducing the city's outstanding debt and the defeasance and refunding would provide a positive end result. THE MOTION CARRIED 4-0. COUNCILMEMBER MOTlN MOVED TO REJECT ALL BIDS FOR THE SERIES 1999B G.O. IMPROVEMENT REFUNDING BONDS, AND TO DIRECT THE FINANCE DIRECTOR AND BOND CONSULTANT TO NEGOTIATE WITH THE BIDDERS FOR A 4.90 PERCENT INTEREST RATE ($63,000 SAVINGS) WITHIN THE STATUTORY 30 DAY TIME PERIOD. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.2. Resolution 99- Awarding the Sale of the Citv's $162,720 General Obliaation Equipment Certificate of 1999; Fixina its Form and Specifications; Directina its Execution and Delivery; and Providina for its Payment Finance Director Lori Johnson explained that the City Council is asked to approve a resolution authorizing the sale of $162,750 of equipment certificates to fund 1999 police and street department capital purchases. Councilmember Dietz asked if other banks in the city are asked to bid. Lori Johnson stated that due to the size of the issue, bids were not solicited. She indicated that if the size of the certificates continues to increase, bids will be requested. e COUNCILMEMBER MOTlN MOVED APPROVAL OF RESOLUTION NO. 99-76, A RESOLUTION AWARDING THE SALE OF THE CITY'S $162,750 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF 1999; FIXING ITS FORM AND SPECIFICATIONS;