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Regular City Council Meeting Monday, December 12, 2011 Page 9 Ms. Eaton advised that the revised resolution provided as a bench handout as ref- erenced earlier by Mr. Miller included that additional information for a signed agreement with the underwriter to lock in that rate. Recommendations of Ms. Eaton and the City's Bond Counsel were for two (2) separate actions tonight: 1)A Motion to reject all bids offered competitively; and 2) Approval of the revised resolution awarding FTN Financial Capital Markets the bid at the negotiated in- terest rate. Ms. Eaton commended the City Council and their staff on maintaining the City's favorable debt profile, a credit to them all. At the request of Councilmember McGehee, Ms. Eaton responded to how the bond issue was structured and interest rates locked in and structured for early ma- turity, with interest rates at their lowest at the initial issue, and moving higher as it reaches maturity, defined as "couponing" in the financial market, and providing a blended, true interest rate, in this case 2.43%. At the request of Councilmember McGehee, Ms. Eaton further reviewed call dates specific to each bond issue, based on their marketing in this case with an ex- traordinary call date in 2022 without penalty due to the pending litigation issue, but the bonds not actually maturing until 2028. However, Ms. Eaton noted that the City retained the right to refinance the bonds at any time, and due to the ex- traordinary call provision of this issue, they would initially be called at the one year mark. Pust moved, Johnson seconded, rejection of all competitive bids received. Roll Call Ayes: Johnson; Willmus; McGehee; Pust; and Roe. Nays: None. Johnson moved, Willmus seconded, adoption of Resolution No. 10957 (Attach- ment A) entitled, "Resolution Providing for the Issuance and Sale of$10,000,000 General Obligation Bonds, Series 2011A and Levying a Tax for the Payment Thereof;" as amended and as negotiated 2.43% - added interest costs—12% in- terest cost increase (28 basis points);to award the negotiated bid. Councilmember Pust stated that she was in complete support of this action taken by the City Council to address this problem with the bond issue created by a group of Roseville citizens at an additional cost to Roseville taxpayers in an amount in excess of$263,000, and at a 12% increase in the initial interest rate. Councilmember Pust assured residents that the City Council would pursue legal action to make the City whole; and commended legal counsel in bringing this op- tion to the City Council to reduce the risk and harm to the City. However, Coun- cilmember Pust reiterated her opposition to the issuance of bonds, as she has re- peatedly stated throughout this process, and would vote against their issue, while reiterating that she was sully supportive of the work done by the City's staff and consultants related to this bond issue.