HomeMy WebLinkAboutMinutes - City Council - Special - 7/31/1986350
Sre`�CO
REGULAR- CITY COUNCIL MEETING
MINUTES
JULY 31" 1986
The City Council of the City of Lubbock, Texas met in special session on the 3Iot day
of July, 1986 in the City Council Chambers, first floor, City Hall, 1625 I3th Street,
Lubbock, Texas at lI:OO a.m.
Present: Mayor B. C. McMinn, Councilman T. J. Patterson, Councilman Gary Phillips,
Councilwoman Maggie Tre'o, Councilman Bob Nash, City Manager Larry J. Cunningham, City
Attorney John C. Ross, Jr., and Deputy City Secretary Lauran Black.
Absent: Mayor Pro Tem Joan Baker and Councilman George Carpenter'
Mayor McMinn called the meeting to order at lI:OO a'm-
88-458-35U-5l4
� l'\ The Invocation was given by Robert Massengale, Assistant City
Manager'
86-458-350-515
/ 2') The Pledge of Allegiance was given in unison by those in the
Council Chambers.
86-458-350-516
( 3') Consider Resolution #2386 awarding the sale of $4,200,000 "City o
Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1986"; declaring the
interest rates to be borne by said Certificates.
RESOLUTION #2386
8 RESOLUTION by the City Council of the City of Lubbock, Texas, awarding the sale of
$4,200,000 "City of Lubbock, Texas, Combination Tax and Sewer System Subordinate
Series I986x; declaring the interest rates to be borne by said Certificates'
WHEREAS, pursuant to an ordinance passed and adopted on July 25, 1986, the City
Council authorized the issuance of $4,200,000 "City of Lubbock, Texas, Combination Tax
and Sewer System 8ubordiUante Lien Revenue Certificates of Obligation, Series 1986«
dated July 15, 1986; and
WHEREAS, a proposal for the purchase of said certificates has been submitted to
the Council by Dean Witter Reynolds, Inc., and
WHEREAS, the City Council hereby finds and datap0iDgs that such proposal for the
purchase of the Certificates by such purchaser(s) should be accepted; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF LUBBOCK, TEXAS:
Section 1: That the proposal of Dean Witter Reynolds, Inc. for the purchase of
$4,200,000 "City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series I988» is hereby accepted and said
Certificates are hereby sold to said purchaser(s) at the price of I00.0005% of par
plus accrued interest to the date of delivery of such certificates. Delivery of said
certificates shall be made to said purchaser(s) as soon as may be after the adoption
of this resolution upon payment therefor in accordance with the terms of sale.
Section That the Certificates of said series shall bear interest at the
following rates per annum, to wit:
Year of
Principal
Interest
Maturity
Amount
Rate
I988
$775,000
7-75%
I989
$850,000
5.70%
1990
$900,000
6'00%
1991
$950,000
8.20%
July 31, 1986
351
Section 3: This resolution shall be in force and effect from and after its
passage on the date shown below.
PASSED AND ADOPTED, this 31st day of July, 1986.
ATTEST:
/s/ Ranette Boyd
City Secretary
(City Seal)
CITY OF LUBBOCK, TEXAS
/s/ B. C. McMinn
Mayor
Mayor McMinn asked if there were any further bids for this item.
He closed the bids when there was no response.
Mr. Joe W. Smith, of the First Southwest Company, spoke as a
financial adviser to the City regarding the seven bids that had
been received. He said the Notice of Intention to issue the
Certificates of Obligation had been published in the Lubbock
Avalanche Journal, the Ordinance had been passed at the last two
Council meetings, and the Notice of Sale had been published once a
week for 30 days beginning about five weeks ago. These were
required by the State of Texas and the City Charter.
Mr. Smith used a tabulation sheet to note the premium, if any; the
gross interest cost; the net interest cost and the effective
interest rate of each of the seven bids.
The winning bid of Dean Witter Reynolds, Inc. was as follows:
Total interest cost $703,808.33
Less Premium 210.00
Net Interest Cost 703,598.33
Effective Interest Rate 6.158409%
Maturity
2-15-87
2-15-88
2-15-89
2-15-90
2-15-91
Interest Rate
4.75%
7.75%
5.70%
6.00%
6.20%
Mayor McMinn recessed the meeting at 11:08 A.M. to allow Mr. Smith and Mr. Massengale
to check the tabulations on the bids to assure their accuracy.
At 11:20 Mayor McMinn reconvened the meeting.
Mr. Smith verified the accuracy of the calculations and recommended Council accept the
bid of Dean Witter Reynolds, Inc.
Motion was made by Councilman Nash, seconded by Councilman Patterson to sell
$4,200,000 City of Lubbock, Texas, Combination Tax and Sewer System Subordinate Lien
Revenue Certificates of Obligation, Series 1986 to Dean Witter Reynolds, Inc. Motion
carried: 5 Yeas; 0 Nays; Mayor Pro Tem Baker and Councilman Carpenter absent.
There being no further business to come before Council, Mayor McMinn adjourned the
meeting at 11:25 P.M.
B. C. McMINN, MAYOR
ATTEST:
Ranet Boyd, City Secretary
READ AND APPROVED THIS 14TH DAY OF AUGUST, 1986
B. C. McMINN, MAYOR
ATTEST: