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MAY 151990 <br />BOOK <br />OMB Director Joe Baird explained that most banks are telling <br />us that they are not interested in tax exempt paper. He felt <br />that the environment is such that banks are not interested in <br />this type of paper. They would be interested if we were <br />considered bank eligible, but we are too big and they do not get <br />any tax credits for buying our paper. <br />Commissioner Scurlock noted that he recommended competitive <br />bidding on the Rockridge bond after he was criticized about the <br />last issue, which was the $6 -million bond for the north county <br />sewer project. That was was negotiated directly through <br />Gulfstream Financial Associates at 7.75% for 10 years. However, <br />on this issue, none of the private bankers or financial <br />consultants who criticized him before came up with the money for <br />local financing or a proposal of their own. Instead, -only one <br />proposal was received from Sun Bank and that was for 8.8% for 5 <br />years and 9.5% for 10 years. Commissioner Scurlock was sad that <br />the interest rates came in so high, but felt he was vindicated as <br />to who knows what. He felt the best approach is exactly what <br />staff is recommending, which is to negotiate with the 3 <br />underwriters for the best deal for the County, which is what we <br />have done for 10 years. <br />ON MOTION by Commissioner Scurlock, SECONDED by <br />Commissioner Bowman, the Board unanimously approved <br />staff's recommendation to reject the bid received by <br />Sun Bank and authorize staff to contact Alex Brown 8 <br />Sons, Gulfstream Financial, and William R. Hough 8 <br />Company to send their financial structure and interest <br />rates. <br />Director Baird reported that he attended the meeting of the <br />Rockridge Homeowners Association last night and had advised them <br />that they could expect an interest rate of 9.5%. <br />20 <br />In other words, <br />