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Finance Committee Chairman, Szymanski, stated that <br /> Mr. Caldwell covered the Committee's opinions <br /> • <br /> thoroughly and concurs with Mr. Caldwell's <br /> recommendations with regard to the sewer bonds. <br /> Mohr stated that it 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 stated 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 time 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 the 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 any and all bids. This is <br /> standard language in the bid process. Approval for <br /> award of bid would not comeback to Council prior to <br /> identifying financing. <br /> 4 <br />