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-' ,l ,-- . . ."AD~O"D ~OllLlSH'NG CO" D"..V!:II RECORD OF PROCEEDINGS WATER-SEWER BOARD MEETING January 8, 1987 Chairman Farr called the Water-Sewer ~oard meeting to order on ThufsdaY9 January 8, 1987 at 3:10 p.m. in the C1ty Council Chambers. Civic Center Complex. 1. ROLL CALL Present at the meeting were Board members: W. o. Farr. Richard Boettcher, Elmer Rothe, and Water Roard Attorney Bill Sohlender. Oavid Clarkson arrived at 3:16 p.m. Also present were Acting City Manager Sam Sasaki. Assistant City Attorney Jed Caswall, Finance DirectOr Leonard Wiest. and Public Works Oi rector Rarbara Huner. From the Water and Sewer Oepartment were 0; rector Mark Ryblls and Engineers John Gauthiere. Dan Hawkins, and Eric Wilkinson. Representing Boettcher and Company was Linda Clark. Representing Morrison- Knudsen Engineers was Bill Moler. 2. ELECTION OF CHAIRMAN FOR 1987 A motion was marle by Richarrl Boettcher and seconded by Elmer Rothe to re-elect w. o. Farr to serve as Chairman of the Water and Sewer Board for 1987. The motion was carried unanimously. 3. APPROVAL OF MINUTES A motion was made by Richard Boettcher and seconded by Elmer Rothe to approve the minutes of the meeting of December 4, 1986 as presented. The motion was carried unanimously. 4. APPROVAL OF AND/OR ADDITIONS TO AGENDA Mark Rybus requested the addition of Item 5-A, Report on Rond Refinancing. The agenda was approved as amended. 5. CONSIOERATION OF SETTING THE CASH EQUIVALENT RATE IN LIEU OF WATER RIGHTS EXCHANGE A motion was made by Elmer Rothe and seconrled by Richard Boettcher to set the cash in lieu of water rate at $1,000 per acre foot. The motion was carried unani mous ly. 5-A. REPORT ON BOND REFINANCING Linda Clark of Boettcher and Company said that interest rates have gone down in the past few months, and her firm and the City staff have looked at refunding possibilities for the City's outstanding bonds. It was determined that only the 1984 and 1985 water bond issues were reasonable refunding candidates. Ms. Clark presented various methods of structuring the refundings which included several options for making debt service payments. She said that, if there is a need for new money, it makes economic sense to combine the new bond issue with the refunding. Leonard Wiest said the savings which would result from refinancing only the exiSting debt would he sufficient to justify the refunding; however, if there is a possibility that new money will be needed within the next ypar or so, the staff would prefer that the issues he comhined. This would allow the City to take advantage of the current low interest rates and would result in a savings in the fixed costs of issuing the bonds. It would also prevent an additional return to the bond market, which could have an adverse effect on the City's rating. Linda Clark also stated that her firm has looked at the outstanding sewer bond issue to determine if there were refUnding opportunities. She said the savings potential is not as great fop the sewer bond as for the water bonds, but the decision on whether or not to refund should be made by the Water Board and City staff.