pages: CityCouncil/2010-06-15.pdf, 13
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CityCouncil | 2010-06-15 | 13 | like any of the bids. Mr. Reynolds responded bonds are offered to anyone who wants to bid; stated that he would not approve moving forward if a 3% target savings does not make sense; a minimum present value savings is at least 3%; current present value savings are 14%; the deal is very difficult; a lot of time would be needed to call potential bidders; that he would like to attract small companies; the cost for putting in a bid would be very low. Councilmember Gilmore inquired what would happen if the City does not receive bids that the City likes. Mr. Thimmig responded the proposed resolutions authorize the Interim City Manager to negotiate with one of the underwriters if all bids are rejected or another plan would be presented to Council. Vice Mayor deHaan inquired whether there would be enough time to renegotiate, to which Mr. Thimmig responded time is tight, but there is enough time. Councilmember Gilmore inquired whether Council approval would be needed. Mr. Thimmig responded the proposed resolutions authorize the Interim City Manager to reject all bids, negotiate with one of the underwriters, or not go through with the deal; stated a deal could be brought back in a different form; the delinquency in the assessment district versus a long history of timely payments has been the difficult part. Councilmember Gilmore stated timing is important in order to give the maximum amount of relief to homeowners and commercial property owners; inquired how the market would play in terms of rates. Mr. Thimmig responded rates would be whatever market rates are at the time; stated the bonds would not have been sold a year ago; today, there is a market; municipal interest rates are good and have been steady over the last couple of months; any underwriter in the country could bid on the bonds; currently, municipal bonds are getting a favorable reception. Mayor Johnson inquired what is the interest rate, to which Mr. Holmstedt responded 5%. Mayor Johnson inquired what is the current interest rate for existing bonds. Mr. Holmstedt responded the Marina Village interest rate is 7.65% and Harbor Bay is under 6%. Mayor Johnson inquired whether requiring a maximum interest rate and having the property owner pay property taxes within 48 hours would be a problem. Regular Meeting Alameda City Council June 15, 2010 | CityCouncil/2010-06-15.pdf |