City of Mesa Update

Dave/Jeff,

I spoke with Jason Williams (Enron Credit) and he confirmed there will be no
credit reserve on the new index deal. He is verifying that there is no need
to "e-dash" the deal. I will get back to you as soon as I hear word. If one
is required, we will help get the document pushed through the system.

The next step, if you and the City of Mesa are ready, is to get a firm quote
from Mike Grigsby this afternoon.

Let me know.

Regards,

Eric

PS - Attached is an e-dash. If one is needed, you will need to complete the
first section describing the deal. As you can tell by the matrix, it does
not appear an e-dash is necessary because the City of Mesa has a AA- rating
and the transaction is approx $8 million and less than 1 year.