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ELK RIVER MUNICIPAL UTILITIES <br /> SPECIAL MEETING OF THE <br /> UTILITIES COMMISSION <br /> HELD AT UTILITIES CONFERENCE ROOM <br /> August 29,2018 <br /> Members Present: Chair John Dietz;Vice Chair Al Nadeau; Commissioners Paul Bell, <br /> and Mary Stewart <br /> Members Absent: Matt Westgaard <br /> ERMU Staff Present: Troy Adams, General Manager; <br /> Theresa Slominski,Finance and Office Manager; <br /> Mark Fuchs,Electric Superintendent; <br /> Mike Tietz,Technical Services Superintendent; <br /> Tom Sagstetter, Conservation&Key Accounts Manager; <br /> Michelle Canterbury,Executive Administrative Manager <br /> Others Present: None <br /> 1.0 CALL MEETING TO ORDER <br /> The special meeting of the Utilities Commission was called to order at 3:00 p.m.by Chair Dietz. <br /> 2.0 DISCUSS AND TAKE ACTION ON AWARDING THE SALE OF$10,000,000 ELECTRIC <br /> REVENUE BONDS,SERIES 2018A <br /> At the July 10 meeting,the Commission passed a resolution to proceed with the issuance of <br /> $10,000,000 2018A Electric Revenue Bonds. Given that the City of Elk River is the qualified <br /> entity to issue bonds, the resolution was approved by the City Council at their July 16 meeting. <br /> At that time it was identified that the award of the bonds by the Utility Commission would <br /> come back for a special meeting to be held on August 29 at 3:00 p.m. Proposals for the sale of <br /> the bonds were received this morning, August 29, until 9:30 a.m. <br /> The bid tabulation was distributed at the meeting. Terri Heaton, Springsted Senior Vice <br /> President/Client Representative, was available by phone and presented the market sale <br /> information results which consisted of six bids. Robert W. Baird& Company, Incorporated <br /> came in as the low bidder with a true interest rate of 3.52%. Based on a premium bid, a lower <br /> interest rate, and reduced underwriter fees, the final results of the bonding reflect a savings of <br /> approximately$400,000. <br /> The Moody's bond rating call was conducted on August 6. Based on the information reviewed, <br /> Moody's has assigned an Aa3 rating to ERMU's $10 million Electric Revenue Bonds, Series <br /> 2018A. Ms. Heaton spoke to how this high rating contributed to the favorable results for the <br /> Page 1 <br /> Special Meeting of the Elk River Municipal Utilities Commission <br /> August 29,2018 <br /> 40 <br />