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