The district's COPS, Series 2004C, currently outstanding in the amount of $83,025,000 and COPs, Series 2008A, currently outstanding in the amount of $109,830,000, were issued as variable, daily rate certificates and are presently supported by Wells Fargo liquidity facilities.   The Wells Fargo facilities are set to expire in August 2011.  The district must either extend the termination date of the existing facilities (with the consent of Wells Fargo), replace the existing facilities with facilities issued by one or more financial institutions, or modify the terms of the COPs to use a different interest rate mode that does not require the support of liquidity facilities. 

On April 7, 2011, the district solicited requests for proposals from eight financial institutions for one or more replacement letters of credit (or the extension of the existing letters of credit, in the case of Wells Fargo), or for direct placement of short-term floating rate notes with such financial institutions, without the need for liquidity facilities.  The district received proposals from Wells Fargo, JP Morgan Chase, and PNC Bank. 

Based on the evaluation of the proposals by staff, financial advisor, and bond counsel, we recommend the selection of Wells Fargo to provide a letter of credit or direct placement of notes for the Series 2004C COPs.  We further recommend the selection of JP Morgan Chase to provide for the direct placement of notes for the Series 2008A COPs, without the need for a liquidity facility.  We also recommend the acceptance of the proposed extension of the Wells Fargo facilities to enable staff, financial advisor and bond counsel sufficient time to structure the proposed changes and bring back to the Board for final approval at the Board meeting on July 18, 2011, as well as the ratification of all acts previously taken by such parties in connection with such matters to date.

Mr. Jerry Ford, Financial Advisor from Ford & Associates is present today to answer any of the Board's questions.