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<br /> Mr. Hershner moved seconded by Mrs. Campbell that the b~xJ:'_be read the second time <br /> by council bill number only ,with unanimous consent of the Council, and that enact- <br /> ment be considered at this time. Motion carried unanimously, and the bill was read <br /> the second time by council bill number only. <br /> M::. Her~hner moved seconded by Mrs. Campbell that the council bill be i?-pproved and . <br /> glven flnal passage. Rollcall vote. All Council members present voting aye, Mr. <br /> Murray not present, and the bill was declared passed and numbered 17115. <br />B. Bids - Finance Department Bonds ( 0276 ) <br /> 1.' $3,300,000 GO Street and Sewer Projects <br /> 2. $1,100,000 GO Parks and Recreation Facilities <br /> 3. $ 920,,000 GO Bancroft Improvement, Series "B" <br /> 4. $ 445,000 GO 10th and Oak Overpark Bancroft Improvement <br /> Finance Director Sherm Flogstad reviewed bids received in opening at 2:00 p.m. on June <br /> 24,1974. He explained that a number of banks had withdrawn their bids just prior to <br /> the opening, probably because of the recent increase in prime lending rate to 11-3/4%. <br /> Acceptance of the bids was rec0mmended in view of the fluctuating interest rates and <br /> anticipated higher rates in the near future. <br /> PUblic hearing was held with no testimony presented. <br /> Councilman Hershner wondered why the interest rate decreased during'the maturity <br /> period than increased again toward the end. Speculation was that it w.as to more or <br /> less guarantee amounts large enough to cover any contingencies toward the end of the . <br /> maturity period. In answer to Councilman McDonald, Finance Director explained that <br /> two bids were received on the 10th and Oak Overpark bonds but one was withdrawn just <br /> prior to bid opening. Bids were also withdrawn, he said, on both Bancroft bonds by <br /> Oregon Bank just prior to the opening. <br /> Councilwoman Campbell commented on the bids submitted by local banks, saying she was <br /> under the impression that only eastern f~nancial institutions bid in the municipal <br /> bond market. Mr. Flogstad said that prospectus of the bond sale was mailed to a number <br /> of banking concerns throughout the United States which normally would result in a number <br /> of bids. Local banks, he said, have been the low bidders in past'sales and had it not <br /> been for their bidding on this sale there may not have been any bids received. <br /> Manager pointed out Eugene's credit rating in both Moody~s~and Standard & Poor's and <br /> said because eight out-of-state firms withdrew bids just prior to the opening it <br /> would seem to indicate they thought their calculations were too speculative because of <br /> the jump in the, prime ihte:re:st rate. He noted the 5.45% rate on Bancroft bonds two years <br /> ago and said that in terms of actual interest rates it didn't appear the rates on the <br /> present bids were too far out of line in view of present conditions. Councilman <br /> Williams noted the Federal market rates of about 12-1/2%. <br /> Resolution No. 2296 - Awarding bid for $3,300,000 GO Street and Sewer Projects. <br /> Bonds to U. S. National Bank at an effective interest rate . <br /> of 5.9661% was read by number and title. <br /> Mr. Hershner moved.seconded by Mrs. Campbell to adopt the resolution. Motion <br /> carried on rollcall vote, all Council members present voting aye, except <br /> Councilman Keller abstaining. <br /> Resolution No. 2297 - Awarding bid for $1,100,000 GO Parks and Recreation Facilities <br /> / Bonds to U. S. National Bank at an effective interest-'rate of <br /> 5.9661% was read by number and title. <br /> Mr. Hershner moved seconded by Mrs. Campbell to adopt the resolution. Motion <br /> carried on rollcall vote, all Council members present voting aye, except <br /> Councilman Keller abstaining. I <br /> Resolution No. 2298 - Awarding bid for $920,000 GO Bancroft Improvement Bonds, Series <br /> "B"~ to First National Bank at an effective interest rate of <br /> 5.7576% was read by number and title. <br /> Mr. Hershner moved seconded by Mrs. Campbell to adopt the resolution. Motion <br /> carried on rollcall vote, all Council -members present voting aye, except <br /> Councilman Keller abstaining. . <br /> Resolution No. 2299 - Awarding bid for $445,000 GO 10th and Oak Overpark Bancroft - ,;/ <br /> Improvement Bonds to First National Bank at an effective interest <br /> rate of 6.0812% was read by number and title. <br /> Mr. Hershner moved seconded by Mrs:. Campbell to adopt the resolution., Motion <br /> carried on a rollcall vote, all Council members present voting aye, except <br /> Councilman Keller abstaining. <br /> 6/24/71 - 2 <br />l 2..0 <br />