11/14/1989 - City Council Special
SPECIAL CITY COUNCIL MINUTES
NOVEMBER 14, 1989
Eagan, Minnesota
A special City Council meeting was held on Tuesday, November 14, 1989 at 5:00 p.m.
at the Eagan Municipal Center Building to consider a bid award for General Obligation Bond Sale and
update on the completion of drainage improvements in the Stafford Place Addition. Those present were
Mayor Ellison and City Councilmembers Egan, Gustafson, McCrea and Wachter. Also present were
Director of Public Works Colbert, Director of Finance VanOverbeke and City Administrator Hedges.
GENERAL OBLIGATION BOND SALE
Mr. Dave MacGillivray, the City's fiscal consultant representing Springsted, Inc., appeared
and reported that bids were received at 2:00 p.m. for the sale of $9,325,000 of General Obligation
Improvement Bonds to finance approximately 33 public improvement projects throughout the community.
He stated that five (5) bids were received and the low bidder was the Trust Company Bank of Atlanta
with an interest rate of 6.42531 It was acknowledged by members of the City Council that the rate
of interest is extremely favorable and it might be advantageous for the City to consider the refinancing
of outstanding bonds that have a much higher interest rate. After further review of the bids, a motion
was made by City Councilmember Wachter, seconded by City Councilmember Egan, with all members
voting in favor, that the low bid submitted by Trust Company Bank of Atlanta, with an interest rate of
6.42531% for the purchase of $9,325,000 of General Obligation Improvement Bonds be awarded.
EQUIPMENT CERTIFICATE SALE
Mr. MacGillivray also reported on bids that were opened at 2:00 p.m. on November 14
for the purpose of selling $290,000 of equipment certificates for the purpose of funding certain capital
equipment items. He stated that there were three bids received with the low bidder Norwest Investment
Services with an interest rate of 6.1894%. After a brief discussion, a motion was made by City
Councilmember Egan, seconded by City Councilmember Gustafson, with all members voting in favor,
to approve the low bid of Norwest Investment Services with an interest rate of 6.1894% to purchase the
$290,000 of equipment certificates that would finance the purchase of certain capital equipment for City
departmental operations.
STAFFORD PLACE
Director of Public Works Colbert reported that the new reorganized Frontier Homes and
Delta Development have reached agreement which will allow Frontier Homes to build out residential
homes in the remainder of the Stafford Place Addition. He further reported that the necessary letter
of credit and other agreements are being offered by Frontier Homes to allow corrective action to
proceed on the various drainage issues. City Councilmember Gustafson suggested that the Stafford
Place item be placed on the December 5 City Council agenda for an update and, assuming that
corrective measures have been taken for the drainage issues, consideration can be given as to whether
the notice for cure and default should be lifted on the Stafford Place development agreement. Mark
Parranto, representing Delta Development, appeared and reaffirmed Mr. Colbert's report that Frontier
Homes and Delta Development Corporation have reached agreement that Frontier Homes will be the
owner and builder of the remaining lots in the Stafford Place Development.
OTHER BUSINESS
City Administrator Hedges requested that the City Council meet briefly in executive
session to discuss a personnel matter consisting of labor negotiations.
ADJOURNMENT
There being no further business, the meeting was adjourned at approximately 5:20 p.m.
TLH
November 14, 1989 ~\Nn N a- t 6.6 Date Cierk