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Regular City Council Meeting Monday, December 12, 2011 Page 2 Pust moved, Johnson seconded, to adjourn the Closed Executive Session and reconvene in open session. Roll Call Ayes: Johnson; Willmus; McGehee; Pust; and Roe. Nays: None. Mayor Roe reconvened the City Council at approximately 6:05 p.m. in regular session. Discuss Litigation Related to 2011 Bond Sale Mayor Rcie recognized Finance Director Chris Miller to address today's $10,000,000 General Obligation Bond Sale, Series 2011A; and reiterated that following the presenta- tion, the City Council would return to Closed Executive Session to discuss litigation strategies related to this item, if later action under Agenda Item 12.a is successful. Finance Director Chris Miller noted that by previous City Council action, staff and the City's bond counsel had been authorized to issue $10,000,000 in General Obligation Bonds for the purpose of financing construction of a new fire station, and as a portion of Phase I of park and recreation improvements. Mr. Miller noted the attendance of Ms. Terri Eaton of Springsted, the City's Financial Consultant to review the results of the sale; as well as Ms. Mary Ippel, the City's Bond Counsel to review legal portions of the sale and implications for the City Council to consider moving forward. Mr. Miller noted distribution of two (2) bench handouts: one consisting of the actual tab- ulation of bid results from today's bond sale; and the other a revised resolution outlining the award of sale; with one (1) additional paragraph added at the bottom of page 6 of the resolution(second paragraph, Section B); both attached hereto and made a part hereof. Ms. Eaton advised that the Bond Issue had received thirty (30) bidders, based in part on the City's very favorable AAA Bond Rating by Moody's, and due to the size of the issue and qualification of the bonds being very appealing to the market, as well as the reputa- tion of the City of Roseville's financial management. Ms. Eaton advised that the low bidder was FTN Financial Capital Markets at a rate of 2.1588%, well below the estimated 2.88% rating estimated several months ago by bond agencies based on the market. Ms. Eaton advised that this reduced interest rate would result in a savings of approximately $710,000 less in interest costs that those estimated one month ago. Ms. Eaton noted that, as the bonds were being opened earlier today, a citizen group had appealed previous court action; and advised that when an underwriter (e.g. FTN) pur- chased the bonds, they in turn wanted to resell them immediately, and such a situation provided them the right to withdraw their bid. In the interest of locking in the 2.15888% interest rate and the timing for bank qualified bonds based on thirty (30) basis points and at such low rates, Ms. Eaton advised that throughout the day, City of Roseville and Springsted staff had reached consensus that there was a strong incentive to see what could be done to salvage the Bond Sale, recognizing the provision that would allow the bonds to be callable, which is typically not preferred, but has been known to occur but at