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HomeMy WebLinkAbout052996 Special MINUTES OF THE PRIOR LAKE CITY COUNCIL SPECIAL MEETING MAY 29, 1996 I. Call to Order A special meeting of the Prior Lake City Council was called to order by Mayor Lee Andren at 5:40 p.m. in the Fire Station City Council Chambers located at 16776 Fish Point Road. Present were: Mayor Lee Andren, Councilmembers Tom Kedrowski, Wes Mader. Also present were City Manager Boyles, Finance Director Teschner, Planning Director Rye and Juran and Moody Bond Consultant Steve Mattson. Councilmember Schenck was absent because of a previous commitment and Councilmember Greenfield was out of town. II. Consider Approval of Resolution 96-59 Accepting the Proposal for the Sale of $935,000 General Obligation Improvement Bonds of 1996. Juran and Moody Bond Consultant Steve Mattson distributed a bid tabulation containing the proposals received by the City. The proposals were very competitive containing bids with an aggregate interest rate of less than five percent. Also distributed and reviewed was a bond repayment schedule. Mr. Mattson stated that the bids were very positive and that he recommended award of the low bid of FBS Investment Services, Inc. in the purchase price amount of $925,257.30 at a Net Interest Cost of 4.8865%. MOTION BY KEDROWSKI, SECOND BY MADER, TO APPROVE RESOLUTION 96-59 AWARDING BID FOR THE SALE OF $935,000 OF GENERAL OBLIGATION IMPROVEMENT BONDS FOR 1996 TO FBS INVESTMENT SERVICES, INC. Upon a vote taken, ayes by Andren, Kedrowski and Mader, the motion carried. III. Consider Utilization of a Money Manager to Enhance the City's Investment Portfolio Return. Manager Boyles advised the Council that the proposal was to change the City's method of investment by allocating up to $1,000,000 of money for investment by C.H. Brown, a money management firm. The proposal provides the opportunity 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Minutes of the Prior Lake City Council May 29, 1996 Special Meeting for the City to receive a greater return on its investment with minimal risk. C.H. Brown's track record has been positive when compared to other money managers. Juran and Moody Bond Consultant Mattson indicated that he has reviewed the records of C.H. Brown carefully. He is aware of the principals of the company and the fact that a computer profile is used to predict their investment types and market interest rates. He advised the Council of the type of success which C.H. Brown has experienced. Mayor Andren questioned whether the finance director was proposing that $$00,000 or one million dollars be invested by C.H. Brown. Finance Director Teschner stated that if the Council was comfortable with one million dollars that would be his recommendation. If there is a greater comfort with $500,000, that would be appropriate as well. Councilmember Mader stated that this proposal is a significant change in the City's investment philosophy. He is seeking additional information about the firm of C.H. Brown and Company and would like the opportunity to study such information and make a couple of contacts with respect to the firm. Mr. Mattson distributed copies of the C.H. Brown prospectus to councilmembers present. Councilmember Kedrowski stated that he believes it would be appropriate to move ahead with the authorization of the money manager. Previous Council policy has delegated the investment authority to the Finance Director, and he has a great deal of confidence in both the Finance Director and Juran and Moody recommendations. Mayor Andren stated that she does not question the Finance Director or Juran and Moody judgment but would like to afford the opportunity for other councilmembers to examine the information and assist in this decision. MOTION BY KEDROWSKI, SECOND BY MADER, TO TABLE THIS MATTER UNTIL THE JUNE 3, 1996 MEETING. Upon a vote taken, ayes by Andren, Kedrowski and Mader, the motion carried. Staff was directed to place this item on the Consent Agenda for June 3. IV. Other Business Don Rye provided the City Council with a brief overview of the status of the City's Comprehensive Plan approval request. He outlined the areas for inclusion into the phased MUSA area and indicated that all materials requested by the Metropolitan Council staff had been provided in accordance with the time line. M052996S.DOC 2 Minutes of the Prior Lake City Council May 29, 1996 Special Meeting Accordingly, Metropolitan Council staff has confirmed that the plan amendment is to be considered by the Community Development Committee on June 3rd and the full Council on June 13th. Further information will be provided in the May 31 Update Memorandum. V. Adjournment The meeting was adjourned by general consent at 7:15 p.m. Recordin~e'~ / City~ ~/ M052996S.DOC 3