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Home My WebLink About8A - City's Fiscal Consultants CITY COUNCIL AGENDA REPORT AGENDA #: PREPARED BY: AGENDA ITEM: CONSIDER APPROVAL OF TWO MOTIONS WITH RESPECT TO FISCAL CONSULTANT (1) A MOTION DISCONTINUING JURAN & MOODY AS THE CITY'S FISCAL CONSULTANT, AND (2) A MOTION APPOINTING NORTHLAND SECURITIES AS THE CITY'S FISCAL CONSULTANT. DISCUSSION: History: The City Council by motion appointed Juran & Moody Inc. as the City's bond and fiscal consultant during its annual appointment process at the beginning of the year. Because of the divestiture of the Juran & Moody division from the parent company known as Miller Johnson Steichen Kinnard Investment Securities, it is necessary to make a new appointment. Current Circumstances: Juran & Moody no longer exists therefore they cannot continue as the City's fiscal consultant. Virtually all Juran & Moody employees have restructured themselves under the name Northland Securities. Northland Securities will offer all Juran & Moody services including municipal financial advisor, municipal bond underwriting and investment securities. Steve Mattson has been the City's principal financial consultant when associated with Juran & Moody. He would continue in that capacity if the City Council approves the appointment of Northland Securities. ISSUES: While the affiliation of the company is changing, there is no change in company personnel. The City has not heretofore had a formal contract with the fiscal consultant. A contract could be prepared if the Council desires. We have received the attached copy of an unrestricted NASD membership agreement providing for the dealer broker authority to Northland Securities. The National Association of Securities Dealers is the regulatory agency of brokerage dealers that stipulates the types of business functions allowed and any restrictions, of which there are none, under the agreement. We have been advised that this agreement has been approved and filed. The City Attorney has not had an opportunity to review the report and attached agreement and may have suggestions for the Council at the October 7th meeting. ALTERNATIVES: (1) Motion and Second to discontinue Juran & Moody, Inc. as the City's fiscal consultant. (2) Motion and Second to appoint Northland Securities as the City of Prior Lake's bond and fiscal consultant for the remainder of 2002. RECOMMENDED MOTION: Alternatives (1) and (2). 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 I:\COUNCIL \AGNRPTS\2002\FISCAL CONSW ~N.DOO:>RTUNITY EMPLOYER . OCT, 2,2002 4: 22PM PGA MERCH NO, 214 P, 1 NORTHLAND SECURITIES. INC. FACSIMILE T:R.ANSMIT'l'AL SHEET oro: ~,dJ-l FROM: Randy Nitzsche OATE: IO/Z / () 2- COMPANY: FAX NUMBEJl,: TOTAL NO, OF PAGES INCLUDING COVEl<: PJ,iONE NUMBER: SBNDElI.'S PHONE NUMIlB:R.: (612) 851-5900 SBND!lll.'S FAX NlJMBEIl (612) 659-9630 1!,B: o tJRGBNT 0 FOR REVIEW 0 PLEASB COMMENT 0 PLEASE R.EPLY CJ PLBASE lIDCYCLE NOTES/COMMENTS: /Zr...,P~ J /I"1I"C ~D /5 oVr(... Al1'15j) /1101-0 1!JEie/~ , ~ tI~e'~ p../.,-. wE 1-141/tC at.../G030"r' ~1/4 ...... , "Trc.~ "'-0 r~ ~ ^-/4 SO, A-t.J~ IT I ..f C#~,.rr, vIE"" . !?a,f6 ~FE'"12- "0 t3 30. -::r.? Yo c..I H A r..A:::' l1,vl r;;t/~~"'f1 -....J f 1 f?.~ fC c~ c '- . Sent :OCT. 2. 2002 4: 23PM PGA MERCH 8164215028 ; Oct -, - 02 1 B: 55 ;NQ, 214 P. 2'(;1 4/6 MEMBERSBlP AGRE:EMENT Northland Securiti"", Inc. CRD No. 40258 NASD grants till; applicalion ofNClrthland Securitiell, Illc. ("Northland") for continuance in members.hip with the NASD contingent upon Lh~ esx.t!cutiOrl or this Membership Agl'l3ement ("Agreementll) and its submission to the NASD KBI1SIlS C;ity Disrrict Office. Joca\.ed at 120 W. 12'11 Street, KBJ18llS City, MO 64 1 05, by no later than October 25/ 2002. This Agreenlent ~halJ ~TtIain in effcot and bind Northland and all orils SLlccessors to ownership or control unless this A~~mont is changed, removed. or modified pursuant to applicahle NASD nlles. A. Unde,.tQlci7ig.~ III cl;)nn.c;ti~m with the granthlg of its applicn.Uon for continuance in l11emb~lthip, Nurthlmd Ulld~kClIl to: (1) abIde by an)' restriction specified in the NASD decisioll of Ocroberl, 2002, ~d Section C belClwj (2) obtain IhQ prior llpprovQl of NASD pursuant to Rule 1017 before removing or modifyins any restrj~tions imposed or before et'fecting a Inaterilll change in business operations; and (3) file I written notice and appliclltion with NASD I1t least 30 daYli prior Lo effecting a change in ownership or contl'Q1 pursullnt to Rule 1017, B. Bwtness A.ctivities The activities in which Nonhl.and mllY engage are based on Its husillCSS plan as :rubmiucd in connection with NASD R.ule 1017, any additional infonnation provided during the cOlltinuing mernbership ApplicAtion process, and such other activities as may be permissible pursuant to the NASD Membership Rules. Northland will: (I) Maintain a minimum nel cllphal requirernent of$250,OOO purlluHr\t t~, SEe Rule 1 Sc3-1 (a)(2)(l) the Net Capital Rule. (2) Operate purlluaht to SEe Rule lSc3-3(k)(2)(ii), the CUlltomer Protection Rule, clearing aU tIlUlluLctions on a t'blly-disclosed basil! through its clelUing Orm. Northland Willllot held Cl.Iswmt:r r~lld8 or safekeep customer securities, (3) Engage ih the following types ofhusiness: n. Broker or dealer retailing corporate securities of al11.ypell h. Broker or dealer retailing Ciorpofate debt lIeouritics of IIlJ l,)'pCS c, Underwriting or selling group participanL (firm Qommitmellt or best effortS) d. MUtual fund retailer (appUQ5ltion way or fulJ)' disclosed) c. U.S. government sccuritias deaJer f. Municipal gecuritle~ dealer g. Braker er dealer selling variable life in!llrance or annuities h. Solicitor ohime d~o.,lts in Q financial institution i. Put and catl broker or dealer or option wriler J. Investment advisory services (municipal issueln) k. Direct participation prl,)gramll I. Trllding ~eurities for own account nt. Private plaocrnentB ofsecuritics 11. .Broker or dealer sel1i.llS int~restll In mQrtgllgell ur ulher reoelvables Sent 'OCT, 2.2002 4: 23PM PGA MERCH 8164215029; Oct-1.02 1S:5S;NO, 214 p, 3'e 5/B Northland S~curitics.lDc:, Membenhlfl Agreernr.mL Page :l q. Collateralized Mortg4se Obligations Operll.te up to S ~ffices (registered and unregistered) conducting bualncSll as described above Employ up to 9S assoeiated porions (regist.ered and unregistered) whp have dlreot contact with ouatomen in the con'duot of the member's 'llIcuritieli SilleR. trading and inv~Il\Ulellt banking a.ctivitics~ includiu! the immediate supervisors ~\r !uch persons o. p. C Restrict;r.m.r None D. Waiver/Exemption NOlle E. Nottjict/t;()n~' N()nhland will promplly notif)''NASD through the District Office where it maintains il.<l principal pLa.ce of bmlinef& if: (1) The firm chan.ges Its (a) clearill~ entity or service bu.reau. OF method of cJ&:arsn"c, or (b) method of bookkeeping or reeordkceplng (e.g. computet to manual, or ll~ili~il1g an outside computer service). (2) The fmn has effected an)' significant change in the nnn'g key personnel. including hut .lot limited to, change or loss of the (Genernl. Options. Municipal, etc,) Sel,;uriUcs Principal, Chief Compliance Officer, IImltor FjnlUl~jill and Operations Principal. 'Ii'. Ce,tiflcario1l Pursuant to Artiol4) IV, Section 1, 4\fthe NASD By-Laws, Nortbland il~reclI: (1 ) To comply with the fcdenll securities laws, the rules lUld regull1.tionll th"rlo: undc.:c, the rules of the MWliQipal Securities Rulemaking Board and the ~ry Depamnenl, ~he Dy- Laws oEtlle NAsn and Nasdaq, the NASD Rules, and all rulings, order.., directions, Ilnd decisions issued a.nd sanotions impORed under the NASn Rules; (2) To pay such dues, aSSElssments, and oLhar charges in the manner and amount [IS from time to tihl~ shall be fixed pursuant to uu: NASD By-LawSI Schedu]~ Lo the NASD By-Lll.w~1 1I11d tJle NASD R.ules; and (3) That thi" Agreement has heen exeeuted on behalf of, and with !.he authority of. silkl Applh;:ant NorthlM.d, The U11dersigned and Northland represent thaL the intormation and statementS c:.ol1tainerJ within the Clpplieation and other information nJod are currellt, "ruo., 3ent 10CT. 2,2002 4: 23PM PGA MERCH 8164215028; Oct.1 - 02 1 e: 55 iNO, 214 P. 4'B 6/6 Nartl1hlnd Ser.nriticl, Tnc.. Membership Agreement Pnge 3 2nd complete. Tho undersigned and NQrthland further represent that to the ex,\.ellt any inf()rrnation pfl5viously submitted is not amended. such information is currently acclIrnlO a.nd complete aDd u"ree that the illfQII1latlon contained in Form BD will b~ kept current Dnd accurat.c by proper a.mcnding the fann liS changes aCour. Any activity that docs not conform to the provbion! set forth in this Agreement may form the blhlis fur disciplinary action by NASD Bgllinst NorLbland., iu owners, or 8llllociated persons. Signature: 161, (01- Date ItJ /1 /0...2- Date