Agenda - Council - 11/14/2000 - Laserfiche WebLink

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though it was not feasible for the City. The City was not made aware of the fact that the was not feasible. Ms. Lurid inquired if a financial advisor has underwriters and still cities, would they be out of compliance.~ ..:.~::.':~:'_. ~ Ms. Aho replied no, but explained that they would have to resign as a cities ~a~i~ai~'ad~zisor if they were to submit something to their underwriters. .~;~if;;" teve Matson Juran and Moody, explained that Juran and Moody has. been a'f~._since 1939 gave a brief history of the company. He stated that he has been wi,~'.',the fi,tm since 1972 and no- one has been in the business longer. Mr. Matson stated that if..~h-~i~City w~. to chose Juran and M~,c,(qv ha wauld be the City's revresentative and lead consiiitb, nt as w~il as two other team m~r~)%'rs'.'-H~explained that 'Juran'and Moody buys and~ a~il:~' bonds i.n: the business every day and always knows what the market is doing, noting the cgmpetitor's cia~!ito~ be "experts" in the field, but they have to call them to find out what is go~r4,g 6n: ~[he m~!;;~(Matson rewewed some examples of how he could save the City mone3; by h~i~g~ a !2~ understanding on how the market works. ' ' Councilmember Zimmerman inquired as to how much it would cost t0-~efi~nance~t/bon . Mr. Matson replied that the biggesfl ~ i~'th~§eount factor on the bondsybut it is hard to give an accurate cost on refinancing'z[~t~mxcU'~, He e~l~:I:~i'fi~Yrha-t timing theT~'ket to get in at the lowest point, and getting the 'shbrtest '~It~ feature andi'the:r~ht mkmre date are the important issues If the City chooses to go with Jurkn and M~kY;*dk, the~i~m:be a top 10 client and will 've. the time and attention ~71~.,_f;i:f:;' "~'i",''':~ ' Councilmembe~-.~ders6~iTnoted that their:fliP'repetition indicated if they also operate as an underwriter, ~hek~ould haeeto withdraw fro~!peing'~e City's financial advisor. Mr. Mafko~'~eplied that he d6eS not see a s~tuanOnewhere there ~s a conflmt of ~nterest. C ounci~Tnemb~:~der~-0n h/quir ect-~i~P~}:~e's C C regulations. ~;,.~::;&IVR.:Matson explmn~ that ~f Jur and Moody is the City's financial advisor and they decide :.i~;z>~'~f:'~intto bid on a ten/i ~hen'~at information would have to be disclosed. Councilme~ Zi~e~'ihquired ~ to what c~ impact a ciw's rat~g. ~. Matson re~ed decreeing hnd balances, total ch~ge on the Council or staff, too much debt, or the wm~ type of debt. He noted ~at it c~ also depend on who ~e rating agency is. '4(';;Mayor GmaC~'~uestioned w~ch fi~ the Finance Officer would be most comfo~able with. Fin~ceOfficer Lund replied that Spfingsted is a ve~ good company, but they have had a veu htgh:~mover and it is difficult to keep working with different people. She felt that Spfingsted's I I -06- Finance Committee/October 10, 2000 Page 4 of 5 I I I I I I I I I I I I I I