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442 � � <br /> ��. <br /> Mayor Mlchael J. B�rett M I N U T E S <br /> V(ce wtayor Blll Rhodes �j�� C I TY COUNC I L <br /> Counc(Imen � ��� <br /> MarioBfagl ��� Community Activities Building <br /> Robert H. Bury <br /> 1400 Roosevelt Avenue <br /> Gerald R. Chandler Md1"Ch 6, 1979 <br /> Marguerite Leipzig <br /> Bob NoMa <br /> � <br /> Adjourned Meeting � <br /> The Council of the City of Redwood City met on this date at 5:40 p.m. <br /> with Mayor Barrett presiding. <br /> . Councilmen present: Biagi , Chandler, Norris, Rhodes and Mayor Barrett <br /> Councilmen absent: Bury, Leipzig <br />: Officials and staff present: City Manager Fales, City Attorney <br /> Schricker, Director of Finance Ference, City Clerk Hildebrand and <br /> Director of Public Works Pusich, Planning Director Schroeter <br /> Representatives of Orrick, Herrington, Rowley & Sutcliffe, bond counsel , <br /> and Bartle Wells Associates, municipal financing consultants, were <br /> also present. <br /> BOND BIDS AND SALE OF BONDS - GEIVERAL IMPROVEMENT DISTRICT N0. 1-64 <br /> Mayor Barrett noted that the adjourned meeting was called for the <br /> purpose of accepting the lowest bids on the subject Series E bonds <br /> and to sel l the bonds. ,�,�, <br /> City Manager Fales called attention to the letter of today's date „�,,, <br /> prepared by Raymond K. 0'Neil of Bartle Wells Associates evaluating <br /> the bond bid received this morning. <br /> Raymond K. 0'Neil , Bartle Wells Associates, commented concerning the <br /> content of his letter, stating that to accept the only bid received <br /> would leave the City $880,000 short of the money needed to fund the <br /> construction program. He said that the bid is equivalent to an <br /> interest rate until retirement of 7.44% on the reclamation bonds and <br /> 7.41% on the facilities bonds. He advised that the bid reflects a <br /> poor appraisal of the bond issue, observing that a maximum of 6% was <br /> set as the rate payable. Mr. 0'Neil suggested that the best option <br /> available at this time, if the projects are to proceed, is to obtain <br /> a cornrnitment from the developer (Mobil Oil Estates (Redwood) Limited) <br /> to make up the difference. He noted that the dollar difference is <br /> $827,231.15, but the expected investment earnings would bring that <br /> amount to the needed $880,OQ0. <br /> Mr. Fales reported that Mr. 0'Neil had advised him that the bidder <br /> will hold the bid until noon, Thursday, March 8, to allow time to <br /> consider what options may be available. <br /> Comment was made concerning the statement in Mr. 0'Neil 's letter that �h <br /> "The fundamental problem is that the bonds are not supported by the �" <br /> level and amount of developer activity needed to make them as marketable <br />° as we hoped." It was suggested that it would, therefore, be appro- ��' <br />; priate for the developer to make up the difference. <br />� <br />� <br /> Adj.Mtg. <br /> 3/6/79 <br /> Page 1 <br />� <br /> � <br />