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I I I -' ,---- . Minutes of Regular Council Meeting Page three February II, 1985 Questions Council asked of Mr. Deans included: Is it possible for your firm to represent Arden Hills totally, without an addi tional bond counsel (on a bond issue). ... Yes, but prefers not to, do bond counsel work for IRB's, feels he can serve City better as special counsel with Briggs and Morgan as bond counsel on IRB's. Is your firm recommending lawyer-based financial consultant7...Yes, feels this is advantageous. Where do you have bonds printed7...Midwest in Chicago, usually, but will probably put it out for bids this time. Does the time frame of May 1 bond issue work for you; do you have time to do this, advise on marketability7...Yes, if started immediately, has worked out time table with McNiesh. Do you think there is any conflict of interest in both selling bonds and being underwriters7...No definite answer. How many issues do you do in an average year7...Probably 12 to 15. Structuring bonds seems to be a big issue; do you feel your firm has no trouble in structuring bonds7...Does not feel so, feel they have the computer capability. Will involvement of City staff be the same (in preparation of prospectus) as on previous bond issues7...Essentially, yes. Steve Mattson, Zeta Kennedy - Juran and Moody - Firm has been in business since 1939, is a municipal bond firm of 125 employees, primary business is underwriting municipal bonds; financial consulting division is separate divi- sion, has been operating since 1959, approximately 150 cities and school districts currently use their services. He emphasized their extensive computer capabilities, prepare electronic spread sheets, structuring issue payments to coincide with anticipated cash flow, etc. He has done some cash flow projec- tions with Arden Hills' temporary bond issue, have put a "phantom" issue together, only thing they would need in addition, if they are chosen for the upcoming May 1 bond issue, is updated numbers on sinking funds. If they are selected, they would prepare package for Moody Investment Services...City currently has an A rating; Mr. Mattson thinks it would be at least an A, possibly an A-I credit rating for this issue. They would also put together the "Official Statement" needed for bond issue, attend bond sale and determine best bid, and recommend acceptance or rejection. He pointed out that there is a very favorable bond market right now (and probably for the next month or two) would recommend the City move as rapidly as possible on this issue to take advantage of this, says his firm could have the issue sold within 30 days, have funds available to the City in an addi- tional 17 to 18 days (50-60 days total). If City were to actively consider new water tower, they have computer software to show best financing method. Questions asked of Mr. Mattson included: What is expected net interest rate right now...8.3% today, this changes daily. In view of no attorney on staff, do you recommend using City attorney for assessment hearings, etc7...Mattson stated his firm separates financial consulting from bond work, usually work with Briggs and Morgan doing reSO- lutions calling for bond sales, the legal opinion, bond printing; when it comes to assessment hearings etc., this is typically the city attorney's job. He added that his firm would be happy to spend the time analyzing any future issue without any charge.