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<br />M I NUT E S <br />EUGENE CITY COUNCIL <br />May 26,1976 <br /> <br />e <br /> <br />Adjourned meeting - from May 24, 1976 - of the Common Council of the city of Eugene, <br />Oregon was called to order by Council President Gus Keller in the absence of Mayor <br />Anderson at 2:00 p.m. on May 26, 1976 in the Council Chamber with the following other <br />Council members present: Tom Williams, Neil Murray, Ray Bradley, D. W. Hamel, and <br />Edna Shirey. Council members absent were Eric Haws and Wickes Bea1. <br /> <br />I - Sale of GO Bancroft Improvement Bonds (bid opening May 26, 1976 at 10:30 a.m.) <br /> <br />Copies of proposed resolution were distributed to Council members showing bidders <br />and rates bid as well as net interest cost and net effective interest rate. <br /> <br />Sherm Flogstad, finance director, pointed out that the lowest bid was received <br />from First National Bank of Oregon on an effective interest rate of 5.074%. He <br />added that the prospectus on the sale was published by the city, as is normal on <br />bond sales. A computer program financed through a grant from the National Science <br />Foundation was used in computing bids on this issue, he said. As a result, the <br />true interest rate was made available - 5.07022%. He compared the effective <br />interest rate on this sale - 5.074% - with rates on other bonds sold in 1974 - <br />6.08% on 10th and Oak Overpark, 5.75% on Bancroft, 5.96% on General Obligation. <br /> <br />Resolution No. 2513 - Awarding sale of GO Bancroft Improvement Bonds <br />in the principal amount of $2,160,000 to First <br />National Bank of Oregon at a net interest cost of $604,840.00, net <br />effective interest rate of 5.074%, was read by number and title. <br /> <br />- <br /> <br />Councilman Bradley noted the small difference between bids offered by First <br />National Bank of Oregon and the Oregon Bank and wondered if there was some <br />criteria other than being the low bid on which the sale was awarded, or if the <br />city was obligated to accept the low bid. Mr. Flogstad answered that criteria <br />was outlined in the prospectus on the sale, and each bidder was carefully <br />checked, as were the net and true interest rates, to make sure specifications <br />were followed. He recognized the narrow margin between the bids, and said <br />there was nothing to indicate other than the lowest bid should be accepted. <br /> <br />Mr. Williams moved second by Mr. Murray to adopt the resolution. <br />Rollcall vote. Motion carried, all Council members present <br />voting aye. <br /> <br />Upon motion duly made, seconded, and carried, the meeting was adjourned. <br /> <br />~~)~ <br /> <br />Charles T. Henry <br />City Manager <br /> <br />- <br /> <br />~87 <br /> <br />5/26/76 - 1 <br />