HomeMy WebLinkAbout1969-09-05; Parking Authority; Minutes'
·•·. GITY ... OF.-, CARLSBAD.·.
'Minuies of: CA~lSBAD PARKIN~ iuTHORlTY
Date' of Meeting: September 5, 1969
Time of Meeting: 5:15 P.M.
-. Me~b~rs Preient:
Members Absent:
Directors· Killen, Snedeker,.
Cannon and Daugherty.
Director Sugg.
Also present were City Man~~er Martin~ City Attar~
n~y Wilson, Mr. Wells and Mr. Matteso~ from Bartl.e
Well~ Associates, and Urban Schreirier from the
.firm of O I Melveny & Myers, attorneys for the P:ark-
ing Author1ty. •
M~. Wells .addressed the ~bard and i~forme~ the
_members th i s . meet i n g w a s ca 11 e d d u.e to the con di -
tion of the bond market; Mr. Matteson has.bee~
-~orking to affect a public-sale di the Parking
Authority Bonds set for Septembe~ 23, 1969. The
bond·market is in a state of··choas;-Merrill Lynch
Pierce, Fenner-& Smith Inc. h~s submitted a fttm •
p r op o s a l i n the am o u n t of $ l , 5 35 ·, O O O a t. 7 % , i n t e. re· s ,
i n c lu d i n g a 3 % d i s c o u n t , an d' i t w a s B a rt l e We 1 ls
• Associates' recommendation-that. the proposal·be accepted. • • •
Mr. Wells pointed out the Parking Aut-tiori.ty had
three alternativ~s in the event: they di.d hot wish-
to accept the proposal:
-1. Reject the proposal and proceed ~ith •
. th e p u b l i c s a l e o n Sep te m be r 2 3 , 1 9 6 9 . • . Thi s i s
the preferred way under riormal market conditions,
• however, this could m~an no bi~s would be f~c~ived
on that date;
-2. Defer the sale. of the bonds µnt·i-1 the
bond market is in good order.
Mr. Schreiner pointed out according to the agree-
ment the Pa.rking Authority-has ·a moral obligat-i'en_
to try and sell the bonds. • •
3. Proceed with some other method of
financing until s~ch time as the market ~s stabil~
ized.
Mr. Matteson from Bartle Wells presented a chart·
show i n g the ma r k et trend for-genera l ob l i g at i on
bon~s since 1964. It indicated as of September 4,
1969 the market shows the interest rate at 6.31% •
and it was. their feeling it would continue to rise
up to.the date.set for the.sale.of the bonds .. . .
Mr. Wells stated it was due to·the above-mentioned
chart-.that their firm encoutaged Merfill Lynch,
Pierce, {enrier & Smith Inc. fo ~ubrnit ·a propos~l ..
Drscussion ensued,. and i-f was move,dby Director•.
Killen,th~t the proposal submitted by Mer~ill • ~
LYnch', Pierce, Fenner.& Smith. Inc.· be accepted n
the amount of $1 ,535~ooo·at 7%. ihterest. T~e •
motion died for lack o_f a s.econd.
Further discussion wa~ given the proposa1~·an~
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it was agreed that Bartl.e Wells Associates pro-
ceed ~ith the .public sale of the Parking A~thority
bonds as scheduled for September 23, 1969.·
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Mr. Wells thanked the Dir~ctors a~d stated their
firm felt obligated to present this propo·sal, _and_
--·now._ they· will prepare for the public l:iidding.
By proper ~o~ion°the m~eting was adjourned at
6: 3'0 P ._M.
Respe~tfully submttted,
g· Secretary