john daigle will be presenting on this item. >> >> thank you, good afternoon. madame chair, members of the commission, my name is john daigle the senior financial analyst and debt major for ocii. agenda item 5b authorizes the contract with blx group for bond arbitrage consulting services. since this is something we don't deal with every day and kind of arcane, i have a brief explanation of what arbitrage. first of this is an irs requirement and require bond arbitrage earnings be paid to the u.s. treasury. bond arbitrage earnings occur when funds are invest at a higher rate than that at which they're borrowed. if a bond is issued at 3% interest rate, we pay 3% for the money and turn around and take the bond proceeds on a tax-exempt bond and invest the money at 5%, we would then have earned 2% of arbitrage. understo in other words, we're making money and what the arbitrage rebate the purpose sto keep us from doing that at the treasurer's expense, borrowing tax-exempt taxable and making money. they passed a series of regulations which is what we're complying with