HomeMy WebLinkAbout0430 SpecialSPECIAL COUNCIL MEETING MINUTES
April 30, 2001
CALL TO ORDER: Mayor Mader called the meeting to order. Present were Mayor Mader,
Councilmembers Petersen, Gundlach, Ericson and Zieska, City Manager Boyles, Finance Director
Teschner and Recording Secretary Meyer.
MADER: Asked that the agenda be amended to include an item of Other Business so that the Council or
staff could have the opportunity to bring other issues to the table if necessary.
MOTION BY MADER, SECOND BY GUNDLACH TO AMEND THE AGENDA AS PROPOSED.
VOTE: Ayes by Mader, Gundlach, Petersen, Ericson and Zieska, the motion carried.
SPECIAL BUSINESS:
Consider Approval of a
Refunding Bonds of 2001.
Resolution
Approving the Sale
of $2,195,000 General Obligation
STEVE MATTSON (Juran & Moody): Discussed the City's bond issues indicating that the drop in interest
rates makes sense for refinancing the bond issues before the June 1st payment date. The refinancing
would saving almost 1% over $2 million in bonds. The net projected reduction would be approximately
$35,803, even given the fact that we are financing $20,000 in refinancing costs. Advised that this is a
historical Iow point in the market and compared the rates available to the rates in recent bond sales. Also
indicated that all but $500,000 in bonds has been sold.
BOYLES: Asked if the remaining $500,000 in bonds is guaranteed at the rates discussed and projected by
Juran & Moody.
MATTSON: Confirmed that sale of the bonds is expected, but that Juran & Moody is comfortable with
buying the bonds itself at those rates.
ERICSON: Asked if there are other bonds where the City could take advantage of the Iow market.
TESCHNER: Advised that the Fire Hall bonds had been cross-over refunded last year, and the park bonds
were refunded and are ready to cross over to the new schedule in two years. Advised that the City has
just about exhausted every possibility for refunding. Six of the 12 bonds have been refunded already,
and the others do not qualify at this time.
MATTSON: Advised that the bonds can be refinanced once before they reach the call feature, but not
twice.
MOTION BY PETERSEN, SECOND BY ERICSON TO APPROVE RESOLUTION 01-50 APPROVING
THE SALE OF $2,195,000 GENERAL OBLIGATION REFUNDING BONDS OF 2001.
GUNDLACH: Asked what the $20,000 was in expenses.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
TESCHNER: Advised that those fees applied to things such as underwriting fees, approving agency, and
fairness opinion. It's like rolling in the refinancing costs so there are no out-of-pocket costs.
VOTE: Ayes by Mader, Gundlach, Petersen, Ericson and Zieska, the motion carried.
OTHER BUSINESS
BOYLES: Advised that the Lake level was now 904.2 and Slow No Wake restrictions are in effect on the
Lake. When the restrictions are removed will be determined when the Lake level has receded below 904
for 3 consecutive days. There are no predictions by the Watershed when this might happen.
MADER: Briefly discussed the recent Court decision and subsequent settlement proposals brought by the
counsel for the Vierlings regarding the inverse condemnation of a pasture property. The City continues
to incur legal costs at this point because the Vierlings have determined that they do not want to convey
the property to the City and would rather reach some agreement where the City would pay for their legal
fees, and the apparent taking of the property, but not acquire the property. In the past, the Council's
position has been that it would pay the costs to acquire the property it took as determined by the Court.
At this point, settlement discussions continue. Asked the Council to reaffirm its position that all that is
required to close this matter and have the necessary funds transferred, is for the Vierlings to determine
the legal description of the property and transfer the 17-acres to the City. Commented that there is no
need to continue negotiating and incurring additional legal costs.
There was consensus among the Council that the City's position
was to pay the costs in accordance with the Court judgment
and acquire the property.
Frank Boyles, C~
A motion to adjourn was made and seconded. The meeting adjourned at 6p.m.
Kel~ Me~"'~r, Re~l~etary