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DRAFT Regular City Council Meeting Monday, October 10,2011 Page 10 1 vestors in holding those bonds. Mr. Miller advised that a more straightforward 2 bond issue, other than park Abatement or CIP Bond issues that were less familiar 3 to investors, avoided premium bidding of those investors that would drive up 4 costs, often up to a quarter of a percent, creating significant increased interest on a 5 bond issue of$27 million for the park improvements and fire station. 6 7 Mayor Roe asked Finance Director Miller to respond to the meaning of bank-in- 8 a"bank qualified"bond issue. 9 10 Mr. Miller responded that for a bond issue to be "bank qualified," it meant that 11 the City issued no more than $10 million in bonds annually, allowing smaller 12 banks to bid on those bonds, and driving bid rates down with more bidders in the 13 pool. Mr. Miller advised that the urgency in staff bringing this issue forward at 14 this time and with this timeframe, was to proceed with the first issue in 2011 and 15 save taxpayer dollars, estimated to be around $1 million. Mr. Miller advised that 16 this straightforward type of issue was favorably looked upon by investors, and 17 was relatively risk free for them, again serving to drive bid rates down. 18 19 Finance Director Miller, at the request of Councilmember McGehee, further ad- 20 dressed the difference in issuing the bonds by using the Port Authority versus the 21 city Council issuing the bonds, based on whether or not a referendum was used to 22 issue the bonds; noting that the City Council majority had voted in the recent past 23 to not proceed to referendum, setting up this scenario of staff bringing forward 24 their recommendation. 25 26 Councilmember McGehee requested additional information on the difference be- 27 tween a General Obligation bond issued by a Port Authority versus a City Coun- 28 cil; and clarity for her reading of Port Authority statutes related to any contracts 29 over $1,000 handled through a Best Value Procurement process or by a formal 30 bidding process. 31 32 Mayor Roe advised that Councihnember McGehee's question, as well as any oth- 33 ers submitted by individual Councilmembers, could be answered as part of the 34 October 24, 2011 Public Hearing and addressed by bond counsel and/or staff at 35 that time. 36 37 Mayor Roe called the question for the motion, as amended: 38 Johnson moved, Willmus seconded, adoption of Resolution No. 10940 (Attach- 39 went A) entitled, "Resolution Calling for a Public Hearing on the Proposed Adop- 40 lion of a Modified Redevelopment Plan and Industrial Development District No. 1 41 Plan for Redevelopment Project Area and Industrial Development District No. 1," 42 scheduled for Monday, October 24, 2011; and amended as follows, subject to 43 bond counsel review, or through comparable language at the recommendation 44 of bond counsel: 45 Resolution: Lines 96-99, amend to read: