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� � Co�uncil Com�i.ttee. It was pointed oat that the total c�f the t,wo bid.s �as cac�siderably higher than ` the available bond financi.ng; that acceptance af the Haas bid on the supply lines at this time aa a practiaal. matter requires cazstruction af the reservoirs at som�e future time� and therefoa�e re- quires the sale cad' bonds even if the City did not receive a fa�orable bid on the barids. The bid- �* ding do�c�ents pro�vided that the City rrould either aacept or re�ect the bids �ithin 60 daya fram �.,, the date set for ths cpe�tng af bids� and that t�his 60-d�y period �terminates Auguat 26th. �t uas reported that Mr. Fairley stated a �ril].ingness to hold. his bid open to March c� neat year. Hrn►ever� it �ron7.d be daubtful iY the City cauld foree an acceptance of the bid if nothing xere done until after August 26th. Mr. Fairley did not ob�ect to the City re�ecting the bid on the � aupply mains but ca�nented oci the passibility af an increaee in �he cost of aat�eriaZs on any fut- � . ure bid� possibly as much as 10�. No asrsurance co�ld be given that labor aoats �ai.ght not alao increase. It Ras reported that sale of all of the bon�ls in a blockFwaald. probably result in a better bid than. breaking up the issue into smaller a�naunts• The bond issue as appraved caritained a 5� in�,erast rate limit and althc�ugh it �ras �anlikely that the bonds coa].d not be sold. for a lesser rate oP intr ', srest, in the e4ent the bid �►a,s above 5�� the City could not legally sell the,bonds. • '� Di�cussio� Pollw►ed regarding the possibilit� of secepting the Haas bid and making progreas payments fro9a•eurrent revenne� the moneys to be paid baek after the eale ot the bonds. The proble� oi' tkie dry peri.4d. Ri.th respect to the General Fund and a2so the Water Fuud �►as discuased. If the coritract were awarded� the Contractor could nat be expected to �rai� iridefinite],y for his paymen�s. The bo�d attorneys do not recorrnnend ccrostruction af the pro3ect befc�re the sale of the bcmds. It was the opinicaz vf Canncil�an Her�rner that the City� if possibls� ahcrald attempt to construct reservairs with ; a total eapaei.ty af eigh-millien gallons since this �s �nderstood at the tim+e ths bonds were �oted. ' on. The City�coaxld not be sure the bids for reservairs o�f' eigh�-mill.ian gallori eapacity oould ba built for the balance � the mo�ey avaiiabls after aa►arding the Haas contraat and deducting costs of preparatio� of plans and speci.fications and sit,� acquisitioal. Z'he Cii►q �roul.d-be in a practical pcs- ' • itio� of not being able to eontrol the total price of the pro�ect nor the interest ra.te to be paid ' , cm t1�e bond.s. xe�ectiaa of a 11 bids waald escape th� practical proble�► o�' cc�a3.tting the City to build the reservoirs and aell the-bonds. Hon�e�er� it xould create the poasibility �hat new bids on the supply mains might be higher. • ' Co�nctilman Herkner stated that he xould have accepted the bid few days ago� hc�rever� after discussian the matter �i.th Mr. Fairlsy� he hesitated� as a representative of-the City� to accept bid not knaring , �,.,. �rhat interest rates may be� and the faet that said acceptance might obligate the Cit�* to proceed xith � . the reservoir. �e was of the op3niars that the best procedure *o�nld be to threw out all bids and take a chance on fu�v.re bids. Councilman 3taat maved� after fhrther discussion, that bids for both pro3ecta be re�ected and re- �ubmi.t entire pro3ect after full i�ormatio� has been received from engit�eers. Caancf.]�an Granger ' � aeconded the motion, "based ori the reco�endatian c>f the ca�ittee". Crnancilman Her�er eacplained. , � that the Ca�nitt�ee had not been called due to the shcmtage of time� but that only the City Attornsy , and himself had diacussed the matter uith Mr. Fair7,ey. Councilman Granger qtulified his secsond to the notiou as based e�n �the record,s to shar findings of the ma�ority of the co�ittee� Chair�an af tlae � Ce�ittee so recom�nends." Ccyuncilman 3taat atat� his xillin�ness to concur xith the thinking of the Chairman of the Cc�nmittee. Motion carried �nani�vusly c� roll eall� I�yor ftcyyer having entered prior to roll call. - �,.a., -- _.- _--- ...��,, .�..,�g�._,�,,-m.m.,,�,.� .._.. .�.,� �.__.�...a„��,�,--