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Elk River Municipal Utilities Commission Meeting Minutes <br />April 13, 2021 <br />Page 3 <br /> <br /> Ms. Slominski had a revision to item 2.8 Employee Handbook Annual Updates, noting that <br />Section 47 Long Term Care Insurance needed to be removed as it references a discontinued <br />insurance service. <br /> <br />Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the <br />amended Consent Agenda, with the revision noted above to the Employee Handbook, as <br />follows: <br /> <br /> 2.1 Check Register – March 2021 <br /> 2.2 Regular Meeting Minutes – March 9, 2021 <br /> 2.3 Special Meeting Minutes – March 31, 2021 <br /> 2.4 Resolution Electing Not to Waive Statutory Tort Limits for Liability Insurance <br /> 2.5 Transmission Transformed Service Rate <br /> 2.6 ERMU’s Tom Bovitz Memorial Scholarship Award Winner <br /> 2.7 Transfer of Asset – Jackson Street Water Tower <br /> 2.8 Employee Handbook Annual Updates <br /> <br /> Motion carried 5-0. <br /> <br />3.0 OPEN FORUM <br /> <br />No one appeared for open forum. <br /> <br />5.2 Award of Bonds <br /> <br />At the March 9 meeting, the Commission passed a resolution to proceed with the issuance of <br />$14,460,000 2021B bonds, and the City Council passed it at their March 15 meeting. At that <br />time, it was identified that the award of the bonds by the Utilities Commission would come <br />back for consideration at the April 13 meeting. As noted in Ms. Karpinski’s memo, the bond <br />amount has since decreased to $12,620,000 due to a change in bonding structure and <br />allocation between the Electric and Water departments. <br /> <br />Proposals for the sale of the bonds were received the morning of April 13 until 10:30 a.m. Ms. <br />Heaton distributed the bid tabulation and winning bid form and walked through the <br />information and market sale results. Hilltop Securities, Inc. came in as the low bidder with an <br />interest rate of 2.04%. Ms. Heaton also shared that the issue size decreased from $12,620,000 <br />to $11,810,000 due to a premium with the offer. Ms. Heaton stated that the draft resolution in <br />the commission packet will be populated with the information from the bid tabulation, along <br />with the lower borrowing amount. Ms. Heaton requested the Commission adopt the <br />resolution along with the bid tabulation. Chair Dietz asked for further clarification on the <br />premium with the offer. Ms. Heaton responded. <br /> <br />The Moody’s bond rating call was conducted on March 30. Based on the information reviewed, <br />Moody’s assigned an Aa3 rating. Ms. Heaton spoke to how the high rating contributed to the <br />46