06/15/2010 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 06-15-2010 ln_J payments. The Stearns Road property previously had a plan in place, signed it, got the occupancy permit for the church last year and didn't pay anymore. Now they are approaching the city again with Dollar General, and there is another agreement has been executed. It is not appropriate from the city's ordinance standpoint, and the Auditor should be speaking with the communities regarding these arrearage situations. North Olmsted is reaching out to other communities to jointly approach the County and ask that they consult communities before they enter into these agreements. Councilwoman Jones said she came into contact with a member of Platinum Protection Plans in her neighborhood last week. She asked if people who have contact with them should call the Law Dept. Gareau said they should. Councilman Barker, Chairman of the Finance Committee: The Finance Committee met on Tuesday, June 8, 2010 at 7:00 p.m. Present were Committee members Barker, Jones and Kearney; President Limpert; Council members Orlowski, and Williamson; Director of Finance Copfer. Legislation discussed were Bond Ordinances 2010-69, 2010-70, 2010-71, 2010-72 and 2010-73. • Finance Director Copfer is layering the debt for the streets so that the streets that were done in 2007 will be paid off in eight years, the streets done in 2008 will be paid off in nine years, the streets done in 2009 and 2010 will be paid off in ten years and the Sewer Jet Truck will be paid off in five years. The fees for all of the above which includes all activity is about $90,000.00. There are two components included in the cost of the issue; they are underwriter's fees and bond counsel fees. The underwriter's fees are paid to the banker to cover the cost of rating the bonds. These costs are currently estimated at $24,480. The bond counsel fees are for fulfilling the legal requirements associated with any debt issue. The cost of the bond counsel is estimated to be $45,000. There will also be $20,850 in costs for Moody's, the paying agent and transaction expenses. The costs are paid out of the bond proceeds. The debt of Notes is approx. $4,390,000.00. The amount of this bond issue will be less than the bond anticipation notes that are currently outstanding. The City paid down the debt for the streets projects by $300,000 and did not include the computer equipment debt of $160,000 in this issue. The amount going for bond adds up to $4,090,000.00. The city is paying about 3.110529% in interest, and the bank is Huntington Investments. There are only a few banks that will purchase this issue because of the small size of the issue, the short repayment cycle and the fact that this is a straightforward issue. Huntington Bank is familiar with the City, which will lower the underwriter's fees for this issue. Therefore, this is the City's most cost-effective option. That repayment cycle is from 5 to 10 years, with an average of 6.087 years. The City will have to prepare presentations for the rating agency, and it will be an invaluable asset to have Huntington Bank involved in that presentation because Huntington Bank is familiar with the City. This will be ready to go in July. The debt at the beginning of the year was $49,199,632.00, and at the end of this year it will be 4