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Home My WebLink About1967-12-05; Building Authority; Minutes1! CITY OF CARLOAD Minutes of: Carlsbad Building Authority Date of Meeting: December 5, 1967 Time of Meeting: 2:30 P.'M. Council Chambers 'djourned ••» \'!\ » v \ \\\\\\ MeetingJ •, V\\ Nanre~sine—r-n^ \ V®L °l ^-^^mber ^^-^°^>Member The me.eting was called.to order by Chairman Peterson. Members present were Chairman Peterson and Directors Helton and Jose.' Also present was Mayor Atkinson and Acting City Manager Killan. . , The Chairman announc.ed-the purpose of the meeting was to open the bids received for the Carlsbad Building Auth- ority Revenue Bonds. ' . The Secretary of the Authority stated one bid had been received from Taylor & Company in the principal amount of $460, 000. 00 at 6% interest with a premium of <$3. 50. A certified check in the amount of $7, 50.0. 00 accompanied the bid proposal. Mr. Fieldman, Financial Consultant, stated he was dis- appointed in the number of bids received and also as to' the bid received. Last week he was informed there would be four bidders. This .morning in checking he found that threee of the four were not going to bid due to the condi- tion of the market. Utility bonds are selling on a 7% basis. The Chairman asked if it would be well to reject this bid and call for a rebid? Mr. Fieldman stated he did not know what to say. He could not predict what the condition of the market would be in the next two .or three months. If the bid were re- jected he would recommend that the provisions in the bonds be revised, and that the reserve bond interest be Increased from 6 to 9 monlths and the. capital increased. This would decrease the construction monies approximate ly $15, 000. 00. It might well be this is one reason there were no more bids received. The question was asked how long this would delay the project, and Mr, Fieldman stated approximately 6 weeks. Director Helton inquired as to how much difference it could make if it were rebid? Mr. Fieldman stated they have no assurance that the bids would be better. They would be in hopes of receiving 1/2% less, which would mean approximately $2, 300. 00 per year difference. As far as the 5 !/&% anticipated, this figure is now unrealistic. Chairman Peterson informed the Authority the market is reflected in the banking business. The savings and loan firms usually have withdrawals of approximately 20% during December due to Christmas, however, there is an increase this year. As far as their bank is concerned, real estate loans of $10, 000. 00 and above have been cut off, and commercial loans of $5, 000. 00 and above are cut off. Until a new tax bill is passed, they can see no improvement in the near future. Mr. Stradling informed the Mayor and members of the Authority, the Authority has three alternatives, reject the bid, award the bid, or they could refer the bid to the" Council prior to awarding the bid. Mayor Atkinson stated he felt the problem should be pre- sented to the City Council this evening. -2- Director Jose asked if the Government increased the income tax structure, 'did they feel this would help the market: ' . • • ; The representative from Taylor & Company was present and stated he did not feel it would have made any differen p if there had been three or .four bids. Other municipalities are having the same problem. On. this basis this could present a real problem in two or three months. It was pointed out the'bid of Taylor & Company was good for 26 hours from 2: 30-P.M. today. Mr. Fieldman further stated there is a provision in the bonds for a call of the bonds in 1978. This amounts to approximately $340, 000. 00. If within the next ten years the growth of the City increases as anticipated, it could well be the City Could buy the bonds. After further consideration, by motion of the Authority, it was agreed that the bid proposal be presented to the Helton City Council for their consideration this evening, with Peterson the recommendation that the bid be accepted. Jose By proper motion the meeting was recessed until 8:00 P.M. ' The meeting reconvened at 8:50 P. M. The Chairman announced the City Council accepted the Authority's recommendation that the bid of Taylor & Company be accepted. Mr. Stradling presented the following resolution for con- sideration: Resolution No. 6. RESOLUTION OF THE GOVERNING BOARD GF~THE~ CARLS BAD BUILDING AUTHORITY AWARDING $460, 000. 00 BONDS OF SAID AUTHORITY TO THE BEST BIDDER AND REJECTING ALL OTHER BIDS, was adopted. By motion of the Authority, the meeting was adjourned at 9:00 P. M. Helton Peterson Jose Helton Peterson Jose Respectfully submitted, ff- MARARET E. ADAMS Recording Secretary x x X X X X X X X X