Minutes - 19761028 - Laserfiche WebLink

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~~~ Mr. Gattis stated "these could be added after the principal reservoir." Bob Steward said that these structures would probable follow the building of the dam rather than being bu'i'lt at the same time. Chairman Morris asked for discussion on the time element involved in the selling of general obligation bonds. He stated "lets just stick with the first question I raised about selling general obligation bonds. Assuming that within the next two or three weeks, the Authority in its. deliberation would formalize a response to the County and say 'lets do - it.' how long would it be before the County would likely have a refe- rendum?" Sam Gattis replied that it would take less than three months, but that he did not know if this would be the expedient time to have an election or not. Jonathan Howes asked Mr. Gattis to pursue that statement. He asked, "three months, now the Authority is on a much more accelerated schedule than that. Suppose we were to go ahead and secure our financing, which of course, would be based on revenue bonds, is there any reason why that financing could not be replaced by County financed, County passed general obligation bonds?" Neal Evans stated, "do it exactly that way, you can do the whole thing in tandem." Mrs. Garrett stated "that was my feeling, that we would have to do that, we could not affort -- all of a sudden, the Authority could say, well we are going to stop and then wait until the County..." Mr. Morris interrupted, "you see no technical, the difficulties if, let us say we sold two million dollars worth of bonds in January or December. You see no technical difficulties up the line, a few months hence, six months hence, the County picking those up. Won't it be we are substituting for it?" Neal Evans replied, "I am not sure why you would sell two millions in January." Mr. ,Morris stated, "I think its one million, isn't that related to Cane Creek? We have enough in our first proposed bond issue to cover land costs." Mrs. Garrett stated, "but s thought we were told that we could recall those. Is that not right?" Bob Stewart replied, "I don't think they've have a call provision for a least a minimum period of ten years. Term bonds are non-recallable for say ten years." Mr. Garrett said "2 wouldn't issue these bonds, 2 would just deal with options...it will take several months to work out land trans- actions and to do the surveying, and by that time Gounty money would be available." Shirley Marshall stated "2 would hope it would be available, but one of the things T am really worried about is that we are all very hopeful that the County, the people in Chapel Hill and Carrboro on a different bond issue for all our citizens, that is going to put a great deal of indebtedness upon ourselves in the next week or so, and we would hope they realize the advantages to them in this movement but T don't think we can take the chance of losing the time that we would lose, should the referendum not be passed." Mrs. Garrett asked "but isn't it possible to do this with the options?" Gen. Hurow stated "let me give you an amateurish answer to what I hear is transpiring now. 2 have absolutely no experience with bonds or options, but it seems to me that the element which we are talking about is the purchase of land. A few minutes ago, it seemed to me that the interest of the working together was that the County was interested in constructing a Reservoir, perhaps the buying of additional land and whatever else is necessary and letting us pump the water through our pumping station and through our pipe system far the consumers a.n southern