4.6. SR 09-17-2001Item~ 4.6.
MEMOllANDUM
TO:
FROM:
Mayor and Council
Lori Johnson, Finance Director
DATE:
September 17, 2001
SUBJECT: Award Sale of $3,590,000 General Obligation Water Revenue
Bonds Series 2001A
On August 27 City Council authorized the sale of water revenue bonds to finance the
construction of new water system facilities. Due to the attacks on the World Trade Center,
many of the nation's financial markets have been closed or are operating in a severely limited
capacity. Therefore, it is anticipated, but not certain, that the sale that was scheduled for
Monday will be delayed.
One of the reasons for delaying the sale is that Moody's Investors Service has not yet issued
a rating on the upcoming issue. Moodys' offices are within one block of the World Trade
Center so they are unable to resume operations due to security restrictions. Rusty Fifield of
Ehlers has made contact with the analyst reviewing our issue; however, we do not think that
the rating conference on this bond issue will occur until sometime next week. Another
reason for the delay is that Monday is the first day the stock market will be open since
Monday the 10m so this may not be the best day to be in the market. Fortunately, the bond
resolution approved by the Council in August authorized the City Administrator to change
the date to receive proposals and allows the City Administrator and Mayor to accept the low
bid on an alternate date. Once I have the rating conference with Moody's, we will be able to
proceed with accepting proposals. Mthough that could happen yet this week, it is more
likely that it may be sometime next week.
Action Requested
The City Council will be asked to approve the low bid for the $3,590,000 General Obligation
Water Revenue Bonds Series 200lA if proposals are received on Monday, September 17. If
the issue is delayed and proposals are accepted later that week, the City Administrator and
Mayor will accept the low bid which shall be presented to the City Council for approval at its
meeting on September 24.
S/council/waterbond