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� � � Don Warren, President, Mobil Oil Estates (Redwood) Limited, advised ' that Mobil wants an arrangement whereby the bond issue can be accepted and urged that Council defer a final decision until Thursday as allowed by the bidder. He advised that Mobil cannot offer a cash contribution to make up the needed difference. Mr. Warren recommended that the nine projects be reviewed and a determination made as to where re- � ductions might be made and commitments still be met. He suggested �; �"""°' that the scope of Redwood Shores Parkway and the Marine World Parkway ; could be reduced and said that Mobil would then defer demand for repay- ; �,,.,.,� ment of Mobil 's casts on the Steinberger levee (approximately $284,000). Mr. Warren also said that Mobil does not want their agreement with the City to be an impediment as to whether Council proceeds, and for that reason, Mobil would reduce appropriately the $10,000,000 threshhold to the net amount available. Thomas Shearer, Orrick, Herrington, Rowley & Sutcliffe (OHR&S) , bond counsel , responded to questions regarding whether or not it would be possible to reduce projects. Mr. Shearer stated that the bidder would have to consent to any changes which might be worked out in order to permit the projects to proceed. He advised that the purchaser could agree orally that they would take up the bonds with the reductions, and then arrangements would have to be made in writing accordingly. Discussion followed and Mr. 0'Neil and Mr. Fales comnented and replied to questions concerning the probable effect of any reductions in the projects; whether there would be any implications with regard to home- owners; the lack of interest of bidders in the bonds; the fact that if payment by the City to Mobil for the Steinberger levee project is merely deferred', it will have to be paid eventually; the extent of responsibility of the developer in view of the fact that lack of activity affected bond marketability; whether Mobil 's suggestions �,.,� are workable; and whether or not changes would be desirable. Councilman Biagi stated for the record that, in any case, the tax- "�°"" payers of the District would not be affected differently than in the original estimates. City Manager Fales stated for the record that the Holly Street Inter- change Project and items related to it and the water line are still : essential . Don Warren stated that it should not appear that Mobil has been doing nothing for six years, since a great deal of money has been� invested and another three and one-half million dollars will be invested. Mr. Warren noted that Mr. 0'Neil did not use any assessed valuation as a basis for the bonds with regard to Marine World Parkway and suggested that project coul`d be reduced. He commented concerning the possibility � of implementing an agreement with California Water System in San Carlos which would create a safety factor and allow development until the new water line is constructed, acknowledging that it is not a long term solution. MOTION: Councilman Biagi moved, seconded by Councilman Norris to adjourn until 9:30 a.m. , Thursday, March 8, 1979 in the Veterans : Memorial Building to continue consideration of the bond bids and to take advantage of the opportunity offered by the prospective purchasers *^� to hold their bid until noon of that day. ;,�,,,, City Attorney Schricker advised that since the adjourned meeting called for consideration of the bond bids is being continued at a . public meeting at this time, no special notice or posting is required. The motion carried unanimously by voice vote. Adj.Mtg. � 3/6/79 Page 2