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Kadie-Jensen johnson & Bodnar <br /> .x. tunicipal Financing Consultants Inc. <br /> <br />¢. Tar[ KJ~::c Ernest B. Bodnar <br />Etcan,,r c::-~-I', 233 Dexter PLace <br />kt, iO} 29:Z~o ~',~n Ramon. CA 94583 <br />Wilh ,u~: .:" 4m-, .,~ t415} 829- 34 ~4 <br />(605~ <br /> <br /> AuOust ~ 5, ~ <br /> <br /> Mr. James R. Walker, City Manager <br /> City of Pleasanton <br /> 123 Main Street <br /> Pleasanton, California 94566 - 0802 <br /> <br /> Dear Jim: Re: Bids For $4,990,000 of 1989 Certificates of Participation (Cross-Town Sanitary <br /> Sewer Project) Rated "A1" by Moody's Investors Service <br /> <br /> I am most pleased to report that five bids were received today at 10:00 a.m. for the <br /> purchase of the City's 1989 Certificates of Participation. The bidders and the net interest rates bid <br /> were extremely competitive ,.. 12/100ths of one percent separated the lowest from the highest bid! <br /> <br /> Bidder Net Interest Cost Net Interest Rate <br /> <br /> Dean Witter Reynolds, Inc. $4,440,955.00 6.98208 <br /> Medll Lynch Capital Markets 4,456,018.75 7.0057 <br /> Prudential Bache 4,466,280.00 7.0219 <br /> Shearson Lehman Hutton 4,482,215.00 7.0469 <br /> Kjdder, Peabody & Co. 4,520,902.50 7.10778 <br /> <br /> These bids were exceptional in light of the current level of tax-exempt interest rates as <br /> measured by the Bond Buyers Municipal Bond Index. This index, which tracks 40 actively-traded <br /> tax-exempt municipal bonds, was 7.35% on August 14, 1989 as reported in today's Wall Street <br /> Journal. <br /> <br /> I believe the strength of the bids received is a tribute to, and a strong vote of confidence <br /> in, the City's excellent financial condition, growing economic base, and careful long-range planning <br /> for future municipal services and facilities. <br /> <br /> Without reservation, I recommend the City accept the bid of Dean Witter Reynolds, inc. for <br /> the purchase of the City's 1989 Certificates of Participation. <br /> <br /> Ernest B. Bodnar <br /> <br /> Municipal Financing Consultants inc. <br /> <br /> <br />