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I I I Council Meeting Minutes August 12, 1986 Council Business, continued Motion by Williams, seconded by Schmidt, to WAIVE THE READING AND ADOPT A RESOLUTION REQUESTING THE MINNESOTA POLLUTION CONTROL AGENCY TO ISSUE THE FOURTH AMENDED REQUEST FOR RESPONSE ACTION REQUIRING THE ARMY, FEDERAL CARTRIDGE CORPORATION, AND HONEYWELL TO CONDUCT REMEDIAL INVESTIGATIONS OF SOURCES OF CONTAMINATION AND CONTAMINATED GROUNDWATER OFF SITE FROM THE TWIN CITIES ARMY AMMUNITION PLANT. 5 Ayes - 0 Nayes, Motion Carried Benke stated we are getting close to resolving some questions of leadership and will be meeting with persons to identify and organize the leadership; will be ready with a list of ideas and organizational recommendations in the form of a resolution creating a Commission, following the suggestions in the staff report, at the next council meeting. Jim Casserly, Miller & Schroeder, reviewed the structure of refunding bonds and their benefits to the City, as well as the options available. In response to Schmidt's question, Jim O'Meara of O'Connor & Hannon indicated a reason is needed to issue the bonds now and the structure says you never had to replace the old debts and put this refunding bond as your financing in its place; you need to say you are going to keep this insurance policy, or this fixed rate financing, on the shelf only so long, then we are going to use it to payoff these variable rate bonds. Brandt asked what the determining factor is when we should pur- chase this refunding bond, or are we doing it today because the interest is low; O'Meara stated that we may never have the oppor- nity again because Congress now specifically prohibits doing this type of thing, noting there will be other, although more expensive ways, to accomplish this. Brandt asked if the city is protected against the tax change in terms of having the option of paying off the initial refunding bonds and substituting a separate one in 1994; O'Meara stated that in seven years (1993) the variable bond is gone completely and all that is left is the refunding bond; Congress is talking about limiting the number of refunds you can do. Benke stated basically it is a cash flow decision; Casserly confirmed. Motion by Benke, seconded by Schmidt, to WAIVE THE READINGS AND ADOPT TWO RESOLUTIONS AWARDING SALE OF 1986 REFUNDING BONDS ($2,350,000 AND $7,385,000) AS AMENDED BY STAFF. 5 Ayes - 0 Nayes, Motion Carried Page Sixteen Centennial Report 86-186 Sale of 1986 Refunding Bonds Report 86-187 Resolution 86-81 $2,350,000 Resolution 86-82 $7,285,000