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2. Public Hearing - Proposed Reassessment and Refunding - Seaport Centre Assessment District Improvement Bonds (407 -03) (See Report: Finance Director 3/19/87) Report: Assistant Finance Director 4/22/87 Affidavit of Publication of Notice of Hearing and Certificate of Mailing are on file. City Attorney Schricker observed that bond market circumstances have changed since the adoption of RESOLUTION NO. 10463 on March 23, 1987, relating to the intention of issuing refinancing bonds and reported that the bonds have not been sold. Paul Thimmiq, partner, Jones Hall Hill & White, bond counsel, referred to the Council meeting of March 23 when the proposed action was described and discussed and the Resolution of Intention adopted, stating that at present the savings that would have resulted from the refunding are not available. Mr. Thimmig recommended that the proposed action be tabled indefinitely until the market stabilizes and discussions can be held with property owners as a group. Virqinia L. Horler, Vice President, Rauscher Pierce Refsnes, Inc., underwriters, distributed her report regarding reassessment and sale of refunding bonds and used the following exhibits from the report to describe changes in the bond market since the proposed action was contemplated on March 23: 1) Interest Rate Comparison; 2) Bond Buyer 40 Interest Rates: 3) Definition of the 40 -Bond Index; 4) Comparison of Interest Rates Unrated Assessment Bond; and 5) Issues Postponed April 20 - 27, 1987. Mrs. Horler recommended Council take no action at this time. M /S: Chandler/ to terminate the subject proceedings without prejudice to reinstituting proceedings in the future with regard to the issue outstanding. MOTION WITHDRAWN: In response to advice that there are persons in the audience who wish to speak, Vice Mayor Chandler withdrew his motion. Mayor Claire invited persons in the audience who wished to speak to do so, noting that no public hearing has been opened. Dan Levin, Lincoln Properties, 101 Lincoln Center Drive, Foster City, who had requested the subject action, said that he was unaware of any protest by a property owner in Seaport Assessment District. (NOTE: A letter of protest was filed by Richard E. Gardella on behalf of John and Mary Lyngso, APN 052 - 392 -370.) Mr. Levin distributed a sheet prepared by Rauscher Pierce Refsnes, Inc. containing the debt service schedule. He said that his own investigation indicates that other bond underwriters would have purchased the bonds and suggested Rauscher Pierce Refsnes, Inc. is acting as a broker rather than accepting the risk usually associated with the larger fees paid to underwriters. Mr. Levin suggested the City would have received a substantial benefit. Reg.Mtg. 4/27/87 Page 2 MINUTE BOOK NO. 47 Page No. 111