HomeMy WebLinkAbout05/26/1976 Meeting
M I NUT E S
EUGENE CITY COUNCIL
May 26,1976
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Adjourned meeting - from May 24, 1976 - of the Common Council of the city of Eugene,
Oregon was called to order by Council President Gus Keller in the absence of Mayor
Anderson at 2:00 p.m. on May 26, 1976 in the Council Chamber with the following other
Council members present: Tom Williams, Neil Murray, Ray Bradley, D. W. Hamel, and
Edna Shirey. Council members absent were Eric Haws and Wickes Bea1.
I - Sale of GO Bancroft Improvement Bonds (bid opening May 26, 1976 at 10:30 a.m.)
Copies of proposed resolution were distributed to Council members showing bidders
and rates bid as well as net interest cost and net effective interest rate.
Sherm Flogstad, finance director, pointed out that the lowest bid was received
from First National Bank of Oregon on an effective interest rate of 5.074%. He
added that the prospectus on the sale was published by the city, as is normal on
bond sales. A computer program financed through a grant from the National Science
Foundation was used in computing bids on this issue, he said. As a result, the
true interest rate was made available - 5.07022%. He compared the effective
interest rate on this sale - 5.074% - with rates on other bonds sold in 1974 -
6.08% on 10th and Oak Overpark, 5.75% on Bancroft, 5.96% on General Obligation.
Resolution No. 2513 - Awarding sale of GO Bancroft Improvement Bonds
in the principal amount of $2,160,000 to First
National Bank of Oregon at a net interest cost of $604,840.00, net
effective interest rate of 5.074%, was read by number and title.
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Councilman Bradley noted the small difference between bids offered by First
National Bank of Oregon and the Oregon Bank and wondered if there was some
criteria other than being the low bid on which the sale was awarded, or if the
city was obligated to accept the low bid. Mr. Flogstad answered that criteria
was outlined in the prospectus on the sale, and each bidder was carefully
checked, as were the net and true interest rates, to make sure specifications
were followed. He recognized the narrow margin between the bids, and said
there was nothing to indicate other than the lowest bid should be accepted.
Mr. Williams moved second by Mr. Murray to adopt the resolution.
Rollcall vote. Motion carried, all Council members present
voting aye.
Upon motion duly made, seconded, and carried, the meeting was adjourned.
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Charles T. Henry
City Manager
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