BOOK 20_1945-05-21 to 1946-09-03

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*Total Interest Amount Over Average:.IYiterest Life of Bonds (20 Years) Rate y *After premiums were deducted. The bid of Hannaford and Talbot was the best bid by the sum of between $1700 and $1800. City Clerk Dodge reported that the tabulations had been checked and cross-checked by both him and City Manager Blom and were correct. City Attorney McCarthy advised that the bids were in order. Councilman Armstrong f moved, seconded by Councilman Fletcher, introduction of resolution for E adoption that the bid of Hannaford and Talbot be accepted. Under the ques- tion, Mr. Allan Bartlett, Director of Municipal Research of the San Francisco office of the Bonk of America, appeared and stated that it was the conter4bon ! of the Bank of America that the bid which was received several minutes late was for a lower interest rate to the City of Redwood City and that the City Council had both the legal and moral right to dward the bid to the Bank of I. America. He said he had contacted the city's bond attorneys, Orrick, i Dahlquist, Neff, Brown and Herrington, and that Nr. Herrington had advised him that the city could legally award the bid to the Bank of America if it were the best bid. Mr. Bartlett quoted from the notice of sale in which it stated that the city reserves the right to reject any and all bids and to waive any irregularities in the bids. He claimed that the bid being re- oeived late was an irregularity *hIoh the Council could waive and that the city could consider the bid and if it were lower, or the best bid, the a- ward could be made to the Bank of America. He did not believe the citizens of Redwood City should be penalized3to pay higher taxes over a long period of years for a difference of two or three minutes that the bid was received late. If the city accepted the bid of the Bank of America, he said, the city would save a total of $1772 over the life of the bonds. He stated that Mr. Herrington had advised him that the above mentioned provision had been inserted in the notice of sale for such an occasion as had arisen. He asked that the Council reconsider and award the bid to the Bank of A America. 4 City Manager Blom advised that the Bank of America representative arrived with his bid at 11:03 A.M., this date, when the bids were in the process of being opened and that he had advised him that he could not accept his bid inasmuch as it was late. The representative had remained during the open - Ing of the bids. City Manager ,Blom had refused to accept the Bank of Amer- ica bid, which was unsealed when the representative arrived at the office. Later in the afternoon, the manager of the Bank of America and the first representative asked that the City Manager accept the bid to hold in oue- tody until the meeting of the Council. The bid was sealed and placed in the custody of the City Clerk, Councilman Fletcher was of the opinion the Bank of America bid should be accepted. Mr. Belden Gardner, representative of the firm of Hannaford and Talbot, ap- peared and stated that one bid had already been read when the bid of the Bank of America came in unsealed and that the representative of the Bank of America sat with an unsealed bid during the time all five bids were 0 read. He stated that representatives of the investment business tried to 285 Hannaford & Talbot $232922.00 1.0492 American Trust Company 25,768.00 1.146096 Weeden & Company 26,560.50 1.1649f0 Halsey & Stuart 26,672.00 1.1698 Blythe & Company 26,915.50 1.1805, y *After premiums were deducted. The bid of Hannaford and Talbot was the best bid by the sum of between $1700 and $1800. City Clerk Dodge reported that the tabulations had been checked and cross-checked by both him and City Manager Blom and were correct. City Attorney McCarthy advised that the bids were in order. Councilman Armstrong f moved, seconded by Councilman Fletcher, introduction of resolution for E adoption that the bid of Hannaford and Talbot be accepted. Under the ques- tion, Mr. Allan Bartlett, Director of Municipal Research of the San Francisco office of the Bonk of America, appeared and stated that it was the conter4bon ! of the Bank of America that the bid which was received several minutes late was for a lower interest rate to the City of Redwood City and that the City Council had both the legal and moral right to dward the bid to the Bank of I. America. He said he had contacted the city's bond attorneys, Orrick, i Dahlquist, Neff, Brown and Herrington, and that Nr. Herrington had advised him that the city could legally award the bid to the Bank of America if it were the best bid. Mr. Bartlett quoted from the notice of sale in which it stated that the city reserves the right to reject any and all bids and to waive any irregularities in the bids. He claimed that the bid being re- oeived late was an irregularity *hIoh the Council could waive and that the city could consider the bid and if it were lower, or the best bid, the a- ward could be made to the Bank of America. He did not believe the citizens of Redwood City should be penalized3to pay higher taxes over a long period of years for a difference of two or three minutes that the bid was received late. If the city accepted the bid of the Bank of America, he said, the city would save a total of $1772 over the life of the bonds. He stated that Mr. Herrington had advised him that the above mentioned provision had been inserted in the notice of sale for such an occasion as had arisen. He asked that the Council reconsider and award the bid to the Bank of A America. 4 City Manager Blom advised that the Bank of America representative arrived with his bid at 11:03 A.M., this date, when the bids were in the process of being opened and that he had advised him that he could not accept his bid inasmuch as it was late. The representative had remained during the open - Ing of the bids. City Manager ,Blom had refused to accept the Bank of Amer- ica bid, which was unsealed when the representative arrived at the office. Later in the afternoon, the manager of the Bank of America and the first representative asked that the City Manager accept the bid to hold in oue- tody until the meeting of the Council. The bid was sealed and placed in the custody of the City Clerk, Councilman Fletcher was of the opinion the Bank of America bid should be accepted. Mr. Belden Gardner, representative of the firm of Hannaford and Talbot, ap- peared and stated that one bid had already been read when the bid of the Bank of America came in unsealed and that the representative of the Bank of America sat with an unsealed bid during the time all five bids were 0 read. He stated that representatives of the investment business tried to 285