HomeMy WebLinkAbout11-29-2010 Special
CITY OF * CITY COUNCIL
r• SPECIAL MEETING MINUTES
WASHINGTON NOVEMBER 29, 2010 5:00 PM
I. CALL TO ORDER
Mayor Peter B. Lewis called the special meeting to order at 5:00 p.m.
Councilmembers present: Rich Wagner, Sue Singer, Nancy Backus,
Lynn Norman, Bill Peloza, and John Partridge. Councilmember Virginia
Haugen was excused.
Staff members present: Finance Director Shelley Coleman; Planning
Manager Elizabeth Chamberlain; Police Chief Bob Lee; Risk Manager
Rob Roscoe; Public Works Director Dennis Dowdy; Parks, Arts and
Recreation Director Daryl Faber; Planning and Development Director
Kevin Snyder; City Attorney Daniel B. Heid; and Deputy City Clerk Cathy
Richardson.
II. ORDINANCE NO. 6335
An Ordinance of the City of Auburn, Washington, relating to the combined
water supply and distribution system, the sanitary sewage system and the
storm drainage system; providing for the issuance of [two series] of utility
system revenue bonds in the aggregate principal amount of $21,295,000
of the City (1) to pay [a portion of] the cost of certain improvements
described herein, (2) to fund the reserve requirement, and (3) to pay the
costs of issuance and sale of the bonds; fixing the date, form, maturities,
interest rates, terms and covenants of the bonds; and approving the sale
and providing for the delivery of the bonds to Seattle-Northwest Securities
Corporation of Seattle, Washington.
Director Coleman distributed revised Ordinance No. 6335, memorandum
dated November 29, 2010 and Standard & Poor's global credit profile for
the City of Auburn. Director Coleman reported on the bonds that were
issued today which have a total face value of $21,295,000. Director
Coleman explained that there was tremendous interest in purchasing the
bonds due to the City's credit rating and the strength of the utility funds,
which were crucial in obtaining an excellent Total Interest Cost (TIC) of
3.77%. This TIC is slightly better than the last bond issue in May 2010
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City of Auburn Council Meeting Minutes November 29, 2009
which was 3.82%. The bonds were competitive this morning with over
$60,000,000 in orders placed by Guggenheim Investment Management,
LLC, Van Kampen UIT and State Farm Insurance Companies. This
allowed the underwriter to reduce the interest rates on the offer by five
basis points.
Director Coleman reviewed .the interest savings and cost of issuance of
the bonds. The bonds will settle in approximately two weeks.
Councilmember Backus moved and Councilmember Norman seconded to
introduce and adopt Ordinance No. 6335.
Councilmembers reviewed tax exempt and term bonds and projects being
funded by the bonds.
MOTION CARRIED UNANIMOUSLY. 6-0.
III. ADJOURNMENT
There being no further business to come before the Council, the meeting
adjourned at 5:18 p.m.
APPROVED THE DAY OF DECEMBER 2010.
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Pe r B. Lewis, Mayor Cathy Ri paardson, Deputy City Clerk
City Council agendas and minutes are available to the public at the City Clerk's
Office, on the City website, and via e-mail. Complete agenda packets are
available for review at the City Clerk's Office and at the Library.
Internet: http://www.auburnwa.gov
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