HomeMy WebLinkAbout1958-01-24; Harbor Commission Ad Hoc; Minutes.... u-ij-rrnjG 01? THE a^ibSB^D „ ^BOR COKMISSJOU
January 24f 1958
Beet Ing was called to order by Doting Chairman Jeffers
at 1:1& P.K. Commissioners presort were onyder, Schelske, Lamb
and i'learkle,
Mr. Eafferty of bchwcibacher and Conpany was introduced by the
Secretary who explained that he had been requested to make a study
of the Patterson Report to determine the probable method of financing
the City's portion of the project. Hr. Rafforty stated that there
were available two typea of financing, (1) revenue bonds; and (2)
General obligation bonds, lie stated that in his inquiries as to the
possibility of attracting bond buyers of revenue bonds for a project
of this type, that perhaps there would be a great deal of difficulty
gelling bonds at this tine, his reasons being that the bond buyer*
first of all would want to know that the project was sound beyond the
Engineer's estimate, It would mean leases of property in hand by
the City negotiated with reliable persons for a long period of years,
or something of a similar nature, to secure his investment.
He explained the general obligation bonds are the usual
practice, but the disadvantage to the City at this time would be that
the 3 million dollar proposed bond issue would absorb all the bonding
capacity of the City. However* the general obligation bonds could
be sold and the revenues produced pledged to paying off the bond issue,
which would assure the tax-payer of no additional taxes. This would
secure a lower interest rate.
Secretary Ewald explained that in the last session of the
Legislature two bills had been passed- and pocket vetoed by the Governor
pertaining to the subject, which would give assistance to cities,
counties and districts contemplating harbor projects* The California
ilarine Parks and Harbors .Association, in conjunction with other groups,
wore asking that these bills be re-introduced in fche Budget .Sessionof the Legislature trhir year, requesting the establishment of a
revolving "fund whereb^ the City could borrow on revenue bonds frota the
State c.nd pay the bonds off with the revenue produced from the project,
Ur. Bafferlxy stated tint revenue bonds could be used in tais manner-
He felt that Carlsbc.d was pioneering in this field and that, at a later
date after EOLIQ of the projects v;ero in operation, financing would be
easier on the opes bond market«,
The Commission, after hearing the report from Mr. Hafforty
and discussing the bond Issue, decided that a week to think over
what had been reported would be a suitable tine and agreed to adjoura
to Friday, January 51, 3,958, at 7:00 P.I-U At that time they would
be prepared to nake a recommendation to the Council for their
February k meeting,
I'ieetlng adjourned at 2:30 P^H.
Respectfully submitted,
uy. -i.j~\> jj-'j I". ii1- JK 'i " linn-moo r.0. iC;JALDj Secretary