03/01/19741 I 1 l? 1 '1 5 7
KOUTAK ISLAND BOKOUGH SPECIAL ASSEMBLY MtETiNG
MARLH I, 1974
CALL TO ORDER
The meeting was called to order by Presiding Officer, Mr. Charles
Powell, in the Alaska Room of the Shelikoff Lodge at 12:00 noon
II ROLL CALL
PRESENT ABSENT
Mr. C. Ross Wood, Borough Mayor
Mr. Charles Powell
Mrs. Betty Nelson
Mr. Dennis Nelson
Also present were representatives from EF Hutton & Company,
Mr. Leonard Matz and Mr. Shirley from Marshal 6 Meyer, Mr. Edmonds
from First Seattle National Bank and Mr. Grandberg from Seattle
Northwest and Dave Middleton from the City of Kodiak.
III NEW BUSINESS
Mr. Fred Brechan, (On vacation)
Mr. Howard Anderson (on vacation)
Mr. Matz from EF Hutton and Mr. Shirley trom Marshall & Meyer
presented their propsoal. Mr. Matz began by saying that when the
bonds were frist sold they sold at 6% interest rate. He stated that
in their contract they will establish an interest rate ot 5.9902 %, which
would amount to $6,654,762.52 total outstanding interest and principle
on the $4 million bond issue. He stated that they had three options
to offer the Borough; Options A and B were the same proposal basis at
5.60 interest. Option C would be anything the Borough would li
to have as far as a maturity shceudle at a 5 1/2 inte est rate. Opts -,n A
is based on a 5.6 annual interest rate and that maturity schedule
affords the Borough an annual savings each year. Mr. Matz went n
to explain the option in detail for the assembly for their understan:I^g
Mr. Shirley gave a brief explanation of the prop sal also and how rr)
their firms have been in business etc. Mr. Powell stated he will i.t
them if they have been accepted.
Mr. Edmonds and Mr. Grandberg from First Seattle and Seattle
Northwest presented their proposal. They had three examples
to show the borough assembly on bond refundnng.Example A wou.d
be taking the last three years ot savings. Exanple B woula be a , .t. ;s
during the whole term. Example C would collect savings up to one
call date. Mr. Wood asked what would the Borough be looking 'or n
these proposal if they were to pick between each company. Mr £
stated that the most important things would be the net savings and Ere
interest rate. Mr. Edmonds recommended Example C, so the tlor,,,
could change their payments at the call date if they wanted to
Mr. Wooa after hearing a presentation from both companies and their
partners, he would like to call Anchorage to find out more about tne,r
background, etc.
Since the interest rate is changing daily, it was noted that if we a
not accept the proposals toaay, they would possibly have to be r
worked if not accepted and the interest rates would be different
Mr. Nelson would move that we accept the ofter from EF Hutton ar d
Marshall & Meyer, and we will negotiate from there. Seconded : ,
Mrs. Wallin. Motion passed by unanimous roll call vote.
Mr. Powell stated that he needs to look a little harder on what op! .
he would prefer.
The assembly chose to have the savings paid to them up to the call
date and they can change from there if need be.
Mr. Matz recommneded Option C, to refine this the way the assembly
wanted it.
Mr. Powell recommended a worksession tomorrow, March 2, 1974,
and they could decide the way they wanted it refined in detail.
IV ADJOURNMENT
The meeting adjourned at 1:50 p.m.
ATTEST: APPROVED:
Borough Clerk
Norma L. Holt
L l! L
Borough Mayor
C. Ross Wood