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though it was not feasible for the City. The City was not made aware of the fact that the project <br />was not feasible. Ms. Lund inquired if a financial advisor has underwriters and stili works with <br />cities, would they be out of compliance. <br /> <br />Ms. Aho replied no, but explained that they would have to resign as the city's financial advisor if <br />they were to submit something to their underwriters. <br /> <br />Steve Matson, Juran and Moody, explained that Juran and Moody has been a firm since 1939, <br />and gave a brief history of the company. He stated that he has been with the firm since 1972, and <br />no one has been in the business longer. Mr. Matson stated that if the City were to chose Juran <br />and Moody, he would be the City's representative and lead consultant as well as two other team <br />members. He explained that Juran and Moody buys and sells bonds in the business .every day <br />and always knows what the market is doing, noting the competitor's claim to be "experts" in the <br />field, but they have to call them to find out what is going on in the market. Mr. Matson reviewed <br />some examples of how he could save the City money by having a better understanding of how <br />the market works. <br /> <br />Councilmember Zimmerman inquired as to how much it would cost to refinance a bond. <br /> <br />Mr. Matson replied that the biggest cost is the discount factor on the bonds, but it is hard to give <br />an accurate cost on refinancing a bond. He explained that timing the market to get in at the <br />lowest point, and getting the shortest call feature and the right mature date are the important <br />issues. If the City chooses to go with Juran and Moody, they will be a top 10 client and will <br />receive the time and attention. <br /> <br />Councilmember Anderson noted that their competition indicated if they also operate as an <br />underwriter, they would have to withdraw from being the City's financial advisor. <br /> <br />Mr. Matson replied that he does not see a situation where there is a conflict of interest. <br /> <br />Councihnember Anderson inquired about the SCC regulations. <br /> <br />Mr. Matson explained that if Juran and Moody is the City's financial advisor and they decide <br />they want to bid on a bond then that information would have to be disclosed. <br /> <br />Councilmember Zimmennan inquired as to what can impact a city's rating. <br /> <br />Mr. Matson replied decreasing fund balances, total change on the Council or staff, too nmch <br />debt, or the wrong type of debt. He noted that it can also depend on who the rating agency is. <br /> <br />Mayor Gamec questioned which firm the Finance Officer would be most comfortable with. <br /> <br />Finance Officer Lund replied that Springsted is a very good company, but they have had a very <br />high turnover and it is difficult to keep working with different people. She felt that Springsted's <br /> <br />Finance Committee/October 10, 2000 <br /> Page 4 of 5 <br /> <br /> <br />