February 01, 2011
Status:
Approve J. P. Morgan Chase and PNC Bank to act as liquidity providers for Certificates of Participation (COPs), Series 2004D and 2006B.
Dexia Credit Local was originally selected to serve as liquidity provider for the School District's COPs, Series 2004D & 2006B. Dexia chose not to renew the credit facility beyond the March 17, 2011 expiration date. A Request for Proposal (RFP) was issued December 17, 2010 and responses received on January 10, 2011. Proposals were received from three banks: Citi, PNC and J. P. Morgan Chase. J. P. Morgan Chase and PNC Bank were the low bidders and are the recommended proposers.
The net increase in fees is approximately $1.1 million to be paid from the Capital Budget. The increase is due to market conditions and many banks are decreasing their exposure to this market.
Requested Action
Approve J. P. Morgan Chase and PNC Bank to act as liquidity providers for Certificates of Participation (COPs), Series 2004D and 2006B.
Summary
Dexia Credit Local was originally selected to serve as liquidity provider for the School District's COPs, Series 2004D & 2006B. Dexia chose not to renew the credit facility beyond the March 17, 2011,, expiration date. A Request for Proposal (RFP) was issued December 17, 2010 and responses received on January 10, 2011. Proposals were received from three banks: Citi, PNC and J. P. Morgan Chase. J. P. Morgan Chase and PNC Bank were the low bidders and are the recommended proposers.
School Board Goals
| Goal One: Student Achievement (2008-2011) | ||
| Goal Four: Innovation (2008-2011) |
Financial Impact
The net increase in fees is approximately $1.1 million to be paid from the Capital Budget. The increase is due to market conditions and many banks are decreasing their exposure to this market.
Source of Additional Information
Henry Robinson 754-321-0581
Associated File Attachments
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Summary of Proposals (Files) | |
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Executive Summary (Files) | |
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ExecutedARF (Files) |