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CITY OF SAN BERNODINO - REQUEST FO COUNCIL ACTION
From: JAMES E. ROBBINS Subject: BICEP "Official Statement"
Dept: City Administrator
Date: January 19, 1989
Synopsis of Previous Council action:
Recommended motion:
That the "Official Statement" of the BICEP Bond Issue be received
and filed.
.y~~
~A
Signature
Contact person:
JAMES ROBBINS
Phone:
5122
Supporting data attached:
yes
Ward:
FUNDING REOUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Notes:
Aqenda Item No. ..5
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CITY OF SAN BERNJ;ADINO - REQUEST M COUNCIL ACTION
STAFF REPORT
Attached is the "Official statement" for the BICEP Bonds. The
issue closed on January 11, 1989, with no fanfare. BICEP now
has $15,055,000 less the cost of start up and issuance in a , .
triple A rated Money Market Account.
The Board has instructed Counsel to identify one or two
Government Investment Contract (GIC) to invest the bulk of
the funds. A major issue besides the security of the money
is the ability to liquefy a portion and receive a rate of
interest consistent with the bonds. At the present, GIC's
seem to be returning about 9.5. We can go 8.24 maximum to
avoid paying Uncle Sam the difference.
There are other cities who are still interested in BICEP.
While one of our size would not, at this time, require a new
issue; any two new cities would require an additional bond
1ssue. Candidates include Riverside, L. A., Oakland,
Sacramento, Garden Grove and Fullerton. Los Angeles is still
attempting to get the item before the Mayor. There does not
seem to be real opposition to their joining from within their
organization.
BICEP is looking at excess Workers' Compensation coverage.
This is what we just purchased. Evidently, some firms are
offering exceptional rates (which we have) in order to head
off group purchases. Our rate was 26 cents per hundred as
compared with 85 and 55 cents per hundred. We will continue
to work through BICEP to obtain the best coverages at least
cost.
until we have a full time Risk Manager, I am attending the
meetings and participating in the business of the JPA. I am
serving on the Finance and Personnel Committee. This may
require one or two extra meetings but it is necessary and
appropriate to our participation in the group.
Should you have any questions, please see me.
It is respectfully recommended that you receive and file this
report and attachment.
JAMES E. ROBBINS
Acting City Administrator
JER/md
75-0264