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Finance Committee Chairman, Szymanski, stated that <br />Mr. Caldwell coverE.d the Committee's opinions <br />thoroughly and concurs with Mr. Caldwell's <br />recommendations with regard to the sewer bonds. <br />Mohr stated that iii is his understanding that <br />receiving insurancE~ for this issue gives them a <br />better rating and thereby decreases the actual issue <br />costs. Mr. Caldwell concurred. Mohr asked if there <br />are any other liabilities to not having insurance. <br />Mr. Caldwell stateo~ that there are not necessarily <br />any other liabilities associated with the issuance <br />of bonds. The advantage to the insurance is that if <br />for some reason thE~ City could not pay the bonds, <br />the insurance company which is rated AAA will pay <br />them. <br />Sackett asked if the expected life of the assets <br />that are being purchased with the proceeds is <br />factored into the formula to determine the life of <br />the bond. Phare stated that the actual fixed <br />concrete structures could easily last 40 - 50 years <br />and the mechanical equipment could last only 15 - 20 <br />years. Mr. Caldwell stated that the longest bond <br />market that can be taken advantage of is 20 years. <br />AUTHORIZATION TO OBTAIN BIDS - TREATED WATER STORAGE TANK, 24" WATER <br />LINE AND WATER PLANT <br />SITE PAVING Phare explained that City staff and Rocky Mountain <br />Consultants have reached a point in the Treated <br />Water Storage Tank ;project whereby it is necessary <br />to advertise for bids for the tank and appurtenant <br />pipeline. Rocky Mountain Consultants has completed <br />the tank design and has nearly completed contract <br />documents. Because the tank project takes <br />considerably more tame than the pipeline portion of <br />the project, it is being advertised for bid first. <br />It is anticipated that in approximately 6 weeks, <br />plans and specifications for the pipeline portion of <br />the project will be ready for bidding. The Public <br />Works Department is also requesting permission to <br />advertise the Water Treatment Plant's Site Paving. <br />This work was originally included in the water plant <br />expansion project, however, due to the need to <br />reduce project costs>, it was subsequently <br />eliminated. It is included in the 1987 Water Fund <br />CIP. <br />Szymanski asked if t:he bid process was contingent <br />upon the water bond issue. Phare explained that the <br />bid documents spell out that the City has the <br />ability to reject an.y and all bids. This is <br />standard language in the bid process. Approval for <br />award of bid would not come back to Council prior to <br />identifying financing. <br />4 <br />