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2. Award of Bids, Bonds of 2011ACITY OF CHMNSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227,1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us MEMORANDUM TO: Mayor & City Council Members FROM: Greg Sticha, Finance Director (� DATE: September 12, 2011 SUBJ: Award of Bid, General Obligation Bonds, Series 2011A PROPOSED MOTION "Staff recommends that the City Council award the bid for the General Obligation Bonds Series 20111A, to the low bidder (to be announced at the meeting)." Approval of this resolution requires a simple majority vote of the City Council. BACKGROUND At the August 22 work session, staff discussed the construction of a water tower in the high zone and issuing bonds to pay for it. The possibility of combining the water tower bonds with the advanced refunding of the 2005B water revenue bonds (one of the bond issues for the water treatment plant) was also discussed. At this time, staff is expecting a Net Present Value Savings in excess of 4% for the issuance of these bonds, as required by the city's debt policy. During the past week, Standard & Poor's conducted a review process to determine the city's bond rating. The results of that rating and the recommended low bidder will be announced at the council meeting. Representatives from our financial advisors, Ehlers & Associates, will be available to discuss the sale of the bonds at the meeting. Staff will bring all documentation, including the resolution to award the bid, to the meeting that evening. RECOMMENDATION Staff recommends that the City Council award the bid for the General Obligation Bonds, Series 2011A to the lowest bidder. f: \gregs \bonding\201 I bonding\201 I award of bid bonds.docx Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow