1. Award of the Water Revenue Refunding Bonds Series 2017A
Vic Erganian
Deputy Finance Director/Treasurer
March 13, 2017
City Council

2. Background
Council approved the issuance of the 2017A Water Revenue Refunding Bonds on January 23,
Authorized a not-to-exceed amount of $ million
Bonds sold on competitive basis on March 13,
Pursuant to Section 1414 of the Charter, Council must accept the bid and fix the rate on the bonds

3. Bid Results 1- Bank of America ML 3.249968% Winner
2- J.P. Morgan Securities LLC %
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3- Janney Montgomery Scott %
4- Piper Jaffray %
5- Raymond James %
6- Morgan Stanley %
7- Hilltop Securities %
8- Robert W. Baird %
9- Wells Fargo Bank, N.A. %
10- Hutchinson, Shockey, Erley %
11- Citigroup Global Markets %

4. Financial Results True Interest Cost = 3.249968%
Gross savings = $1.67 Million
NPV Savings = $1.225 Million
NPV % Savings = 7.05%
Annual debt service savings: $92,000

5. 2017A Water Revenue Refunding Bonds
Section 3 of the Resolution: “The exact aggregate principal amount of the 2017A Bonds to be issued and sold is $15,395,000.”

6. 2017A Water Revenue Refunding Bonds
Section 4 of the Resolution: “The Director of Finance is authorized and directed to deliver the 2016A Bonds at a purchase price of $17,767, ”

7. Recommendation
Award the bonds to Bank of America Merrill Lynch at a price of $17,767, at a True Interest Cost of %.