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City Council Minutes Apri17, 2020 Page 3 of 12 ----------------------------- 10.1.A.Award Bond Issuance Jason Murray presented to the Council the recommendation for the issuance of the bond for the Rasmussen Road Project. He stated that last month the Council authorized David Drown Associates to move forward with a competitive sale but from a couple of weeks ago due to the pandemic and the current situation it started to transition from a competitive sale to a private placement. He said they were finding that competitive sales were running about 30 to 40 basis points higher than private placements therefore they engaged RW Baird as a placement agent to proceed with proposals from banks on the placement of the debt. He said they would like to award the bond of$2,098,000 to Bremer Bank at an interest rate of 2.14%. If the council wishes to proceed with this issuance, there is a resolution in your packet providing for the issuance of the sale and a term sheet from Bremer as committing to the 2.14% over the 15 years of the bond life. He stated that they started to look at evaluating competitive sales versus placements because they were seeing better interest rates on the private side and it will also eliminate some additional fees. Mr. Murray pointed out that the City will be borrowing a little less and the interest rate is lower with this private placement. He explained the revenue in the Master Cash Flow sheet to the Council which shaws how the City is planning to cover the debt on the project with 25% of the water revenues, 25% of sewer revenues and then 50% from tax levies. He stated that this corresponds directly with how the Council wanted to pay for this project with the Capital Financial Plan. Commissioner Swanson verified with Mr. Murray that this bond issuance fits in with the original strategy with the City's Capital Financial Plan. COUNCIL MEMBER SEILS MOVED TO ADOPT RESOLUTION 20-15 PROVIDING FOR THE ISSUANCE AND THE SALE OF $2,098,000 IN GENERAL OBLIGATION UTILITY REVENUE AND DISPOSAL SYSTEM BOND, SERIES 2020A AND PLEDING FOR THE SECURITY THEREOF NET REVENUES AND LEVYING A TAX FOR THE PAYMENT THEREOF. COUNCIL MEMBER SWANSON SECONDED THE MOTION. MOTION CARRIED 5-0. Discussion ensued about assessments in the future and the revision to the Assessment Policy that was done last year. 10.1.B.Uadate Tim Houle updated the City Council on activities that have occurred on the project since the March 5th City Council meeting. He stated that they did have a pre-construction meeting on Friday, March 20�'via conference call. He said the contractor RL Larson, WSN, and City met with utility companies since then to plan and start necessary utility relocates. He said schedule wise RL Larson did submit a preliminary schedule at the pre-construction meeting just for background. Mr. Houle stated the original contract called for the project to be