1994 AGN SEP 06 I32 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT (Continued) FOR COUNCIL MEETING OF September 6, 1994 SUBJECT: REQUEST CITY COUNCIL APPROVAL TO ASSEMBLE FINANCING TEAM AND PREPARE FOR ELECTRIC REVENUE BOND SALE schedule for the hospital. The funds to cover these expenses are to come from the proceeds of the bond sale. It was anticipated that the bond sale would follow the adoption of the current year's budget, but that has not yet occurred. Any further delay in the bond sale could jeopardize the in- service date for the hospital, and could result in additional cost estimates of completing the project due to price changes of the various components FINANCIAL IMPACTS The current electric rates include the anticipated impacts of the revenue bond sale. If the sale is delayed or postponed, the rates would have to be modified to reflect the changes to the financial plan. The costs of the bond sale itself have not been determined and will not be in exact amounts until the sizing, preparation, and sale of the bonds are in a more complete stage. It is the intent of staff to negotiate the best possible prices with the Financial Advisor, Bond Council, Underwriter, and Consulting Engineer (if required). The majority of these costs would be part of the overall bond sale package and have minimal impact on the existing operating budget of the Electric Utility and ultimately the electric ratepayer. Failure to proceed with the bond sale and move forward with the capital improvements could increase electric rates dramatically. The whole purpose for the bond sale is to provide stability in the rates and avoid a sharp rise in rates to fund the construction of the needed facilities. ENVIRONMENTAL - There are no environmental impacts as a result of this action. RECOMMENDATION Staff recommends that the City Council approve method of selecting the financing team, including Bond Council, Underwriter, and if necessary, Consulting Engineer, and use of competitive bidding procedure for the sale of electric revenue bonds. City Manager's Concurrence: Report prepared by: Thomas K. Clarke, Acting Electric Utility Director Page 2 of 2 Item No.