02-23-1998 Council Minutes - Laserfiche WebLink

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MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING HELD ON FEBRUARY 23, 1998 • (LMCD Report - Continued) McMillan reviewed the water quality report. This is the third year that Hennepin Parks has tested the lake water. Poor water quality was mainly found in the western bays of the lake, which tend to be shallower. Phosphorus exists in these bays. McMillan said she would like to know how the phosphorus initially became present in the water. She noted that the chloride content, which is the salt level, was found in high quantities in Wayzata Bay. McMillan said Barton reported that salt content is important to the stormwater management as the lake water will not turn over properly if it is too salty. McMillan felt the testing was important and water quality should be monitored closely. McMillan reported that the LMCD wrote a letter regarding the pending legislation on personal watercraft. McMillan said the ban of personal watercraft in lakes of less than 200 acres does not solve the problems for Lake Minnetonka with its many bays that are also small in size. She did not believe the approach being taken was necessarily the correct one. She felt education and licensing were important. Jabbour said the Board now understands the importance of licensing, which is not available at this time. He reported having asked Senator Gen Olson to spearhead legislation for licensing for the metro area. Kelley clarified with Jabbour that his desire is to have all operators of boats be licensed. Jabbour confirmed that citing examples of • where problems have occurred. PUBLIC COMMENTS There were no public comments. ( #2) ADVANCE REFUNDING OF CITY FACILITIES BONDS - RESOLUTION NO. 4032 CALLING FOR BOND SALE Carolyn Drude, the City's bond consultant, reported that the 1991 Public Facilities Revenue Bonds have been reviewed and found to qualify for a "crossover advance" refunding at this time. She clarified what this means noting the bond issue has a call date and several options are available for refinancing. There is a time period in advance of the call date where bonds can be replaced with new bonds. The money is placed in escrow and interest is paid from that account on the new bonds until that call date. Drude reviewed the Exhibits 1.00, 2.00, 3.00, and 4.00 of her report. She noted the principal amount in Exhibit 2.00 is higher due to issuance costs and underwriters cost. Drude explained the savings noted in Exhibit 3.00. Drude said Minnesota law requires that the debt service savings for a crossover advance refunding be at least 3.00% on a • present value basis. She has computed the City's savings to be 4.20 %.