March 30, 1999

Present:

Michael J. Murphy, State Treasurer Gary Locke, Governor Brad Owen, Lieutenant Governor

Also Present:

Allan J. Martin, Office of the State Treasurer Jeanne Cushman, Office of the Attorney General Tim Kerr, Office of the State Treasurer Elise Greef, Department of Transportation Colleen Malkmus, Office of the State Treasurer Darlene Cimino-DeRose, Montague DeRose & Associates Nancy Adams, Office of the State Treasurer Dean Torkelson, Seattle-Northwest Securities Martin Reynoso, Office of the State Treasurer Cynthia Weed, Preston Gates & Ellis Svein Braseth, Office of the State Treasurer Harvey C. Childs, Office of Financial Management Donna Lawrence, Office of the State Treasurer Robert Shelley, Seattle-Northwest Securities Jay Kirkevold, Office of the State Treasurer

Chairman Murphy called the meeting to order.

Lieutenant Governor Owen moved the minutes for the March 23, 1999, meeting be approved.  Chairman Murphy seconded the motion.  The motion passed and the minutes were adopted.

Mr. Kerr introduced proposed Resolution No. 887 providing for award of sale of up to $38,555,000 State of Washington Motor Vehicle Fuel Tax General Obligation Bonds, Series 1999C.  Mr. Kerr stated the bonds were submitted to the market for bids pursuant to Resolution No. 883 that was adopted on February 10, 1999.  Mr. Kerr said six bids were received this morning.  Four bidders submitted bids electronically, and two were “walk-ins."  The TIC bids for the record were:  J P Morgan Securities, Inc., 4.9624635 percent; Goldman Sachs & Co., 4.9880495 percent; Merrill Lynch & Co., 4.9944275 percent; NationsBanc Montgomery Securities, 4.9521707 percent; Salomon Smith Barney, Inc., 4.9705519 percent; and US BankCorp/Piper, 5.0231286 percent.  All of the bidders provided SureBid surety as a good faith deposit.  Bond Counsel reviewed all bids to ensure compliance with bidding rules.  Mr. Kerr noted these bids were about one-half of a basis point higher than the $300,000,000 the Committee awarded in last week’s sale.  He said it was a very good result, and that NationsBanc Montgomery Securities is the apparent winning bidder.

Mr. Kerr presented proposed Resolution No. 887 to the committee.

Resolution No. 887 providing for award of sale of up to $38,555,000 State of Washington Motor Vehicle Fuel Tax General Obligation Bonds, Series 1999C, authorized by Chapters 47.10, 47.60, and 39.42 RCW.

Lieutenant Governor Owen moved to accept the TIC bid of 4.9521707 percent from NationsBanc Montgomery Securities and to adopt Resolution No. 887.  Chairman Murphy seconded the motion and the resolution was adopted.

Mr. Kerr noted that the Committee does have the Department of Ecology refunding in the market.  Mr. Kerr said the refunding is sensitive to interest rate movements and the staff will be looking at these rates today to make a determination to present the issue to the market for bids tomorrow.  Under the provisions of the authorizing resolution, the Committee does not have to meet.  The authority has been delegated to the State Treasurer.  Mr. Kerr said a TIC of 4.58 percent is needed to go ahead with the sale, and if that does not seem reachable today, the State Finance Committee staff is continuing on a week to week basis to monitor the market so that the state is ready when the market is.  Chairman Murphy mentioned to the Committee that the refunding should provide a $300,000 per year savings level to the Department of Ecology.

There being nothing further to come before the committee, the meeting was adjourned at 9:08 A.M.

	STATE FINANCE COMMITTEE STATE OF WASHINGTON   _______________________________________ Michael J. Murphy, State Treasurer & Chairman   ________________________________________ Gary Locke, Governor   ________________________________________ Brad Owen, Lieutenant Governor
________________________________________ Tim Kerr Deputy State Treasurer & Secretary