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HomeMy WebLinkAboutMinutes - City Council - Regular - 11/7/1952RECESSED REGULAR MEETING Lubbock, Texas November 7, 1952 The City CoWission of the City of Lubbock, Texas,met at 2 P. M. in recessed regular session recessed from regular meeting of October 23, 1952, at the regular meeting place in the City Hall, the following members thereof being present to -wit: Mayor Murrell R. Tripp, Commissioners Hurley Carpenter, L. E. Davis, Lucian Thomas, City Manager Steve Matthews, City Attorney Vaughn E. Wilson, Secretary -Treasurer Lavenia Lowe. Absent: Commissioner Harry Morris. -171-330 The following proposals were received for firm�o act as fiscal agent for the City of Lubbock in connection with prospective bond issue: Dallas, Texas November 7, 1952 Honorable Mayor and City Commission City of Lubbock Lubbock, Texas Gentlemen: You have advised us that you expect to, in the immediate future, launch a municipal improve- ment program which is to be carried out between now and the calandar year 1955. You have further indicated your intention in this connection to call an election for a date prior to December 31, 1952 for a vote upon the issuance of $4,644,000 Waterworks and Sewer Revenue Bonds, as well as "950,000 Tax Bonds, in the following amounts for the indicated purposes: Electric Light and Power Improvement Storm Sewer Improvements Street Right -of -Way Street Lighting $600., 000. 50,000. 200,000. 100,000. Total $950,000. The total authorization of both Waterworks and Sewer Revenue and Tax Obligation to be 5,594,000 -fhich you propose to issue along with $200,000 Library Construction and Improve- ment Bonds, w}iich have already been voted, in two installments the first contemplated in March of 1953, the last installment contemplated in March of 1955, as follows: Type and Purpose Waterworks �- Sewer Revenue Tax Obligations Electric Storm Sewer Street Right -of -Way Street Lighting Total Tax Bonds Already Voted Bonds Library Construction & Improvement Total All Bonds Proposed Sales Proposed Issuance March 1953 March 1955 $2,850,000 $11794,000 1$600,000 -0- 50,000 - 0- 200,000 -0- 50,000 50,000 900,000 50,000 200,000 $3,950,000 $1,844,000 Accordingly, we make you the following proposal to act as your fiscal agent in this Connection (1) Under the direction of a competent firm of nationally -recognized bond attorneys, to be employed by the City of Lubbock and mutually agreed upon between ourselves and the City, we will supervise, assist and advise with you upon steps necessary to be taker4n the calling and holding of the election, and the legal authorization, issuance, sale and delivery of such bonds, and will reimburse the City for the full amount of the fee to be charged by such attorneys. (2) We will supervise and pay for the printing of the said bonds when, as and if voted, authorized, issued and sold, (3) We will nay the expense of obtaining an approving opinion of the Attorney General of the State of Texas, registration by the Comptroller of Public Accounts, together with an- and all other expenses incident to, incurred by or authorized by us in the successful voting, authorizing, issuance, sale and delivery of the bonds, excepting compensation of the election officials and expense of any litigation that might be instituted preventing the completion of the issuance of such bonds, expenses incurred as a result of or in connection with litigation to be borne by the City of Lubbock. (4) T,Je will submit to the City Commission for its approval a schedule of maturities which will serve for comparison for the present maturing obligations and afford the maximum of market advantage to the City for such bonds proposed to be sold. (5) We will prepare notices and/or prospectus showing4he necessary financial data, economic data, and any other possible information to assist investment banking firms in preparing and submitting bids for such bonds. (6) We will pay the expense for advertising the bonds for sale in the "BOND BUYER", such advertisement to run one time in the weekly issue at least ten days prior to f' the date set for sale of the bonds by the City; any other advertising, including the "Notice of Election" to be publishedin the local newspaper, as required by law, to be borne by the City. (7) We will prepare the requested and necessary data, both finanical and economic, on the. Citv of Lubbock for presentation to the national municipal bond rating agencies. The City agrees that it will do the following things: (1) It will promptly pass such ordinances, adopt such resolutions and that the officials of the City will execute such certificates and other showings as may be required reasonably by the Attorney General and by said bond attorneys to show the legal authorization, issuance and delivery of the proposed bonds. (2) That at such time as said bonds have been duly authorized, executed, approved, sold and delivered, the City concurrently with the delivery of bonds, as rei=ursement of expenses incurred and compensation for Fiscal Agents' services rendered, pay to us the sum of sums as indicated by the following schedule: On the first installment in accordance with the installment schedule above of $2,850,000 Revenues and $1,100,000 General Obligation Tax Bonds, or a combined total of $3,950,000, a fee of $2.49 per $1,000 Bond; On the last installment, proposed for March 1955, of $1,794,000 Revenue Bonds and $50,000 Tax Bonds, or a combined total of $1,844,000 a fee of 02.24 per $1,000 Bond. Should the election for these proposed bonds fail, the City will owe us nothing for expenses incurred and services rendered up to that point. M connection with this proposal, we further reserve the right to submit the bid to the City for these bonds when offered for sale and the right to waive all or any portion of our fee deemed desirable or necessary in connection with such bid. Upon your acceptance of this proposal to be indicated below, we pledge our mutual efforts to co-operate to a of this program. To the Honorable Mayor, and City Commission City of Lubbock Lubbock, Texas Gentlemen: by executing the acceptance clause successful and satisfactory conclusion Respectfully submitted, RAUSCHER, PIERCE & CO. By: /s/ Ernest E. Dickey Authorized Representative Lubbock, Texas November 7, 1952 With reference to the City of Lubbock, Texas, proposed issues of bonds, in the aggregate amount of $5,794,000.00, to be broken down approximately as follows, to -wit: (1) Water and Sewer Revenue $4,644,000 (2) Electric Light System 6000000 (3) Storm Sewer 50,000 (4) Street Improvement (R.O.W.) 200j000 (5) Street Lighting 100,000 (6) Library (1947) 200,000 5,794,000 Said bonds to be issued and sold in two installments approximately as follows: lst INSTALLI,9VT Water and Sewer Revenue �21850,000 Electric Light System 600,000 Storm Sewer 50,000 Street Improvement (R.O.W.) 200,E Street Lighting 50,000 Library 200,000 3,950,000 2nd INSTALLMENT Water and Sewer Revenue $1,794,000 Street Lighting 50,000 1,844,000 we propose as follows: That you secure the services of Dumas, Huguenin and Boothman, Market Attorneys, Dallas, Texas, for the preparation of all legal prodeedings and to provide, from time to time, if the election should carry, the orders issuing the bonds of the various issues and for the various purposes, attend to the approval of the Attorney General, registration by the Comptroller, and finally to give their opinion as Market Attorneys. You will have these attorneys to look to us for payment of their fee and charges. We will also provide the printed bonds, prepare and furnish all finanical data, -through the cooperation of the City, and furnish the necessar3fproposals to be submitted for the purchase of the bonds, assist in other matters that may be necessary for marketing the bonds, and assist in such other details as may be necessary concerning the same. It is understood that this agreement is to be satisfactory to and approved by your City Attorney, and that both we and the Market Attorneys will have his cooperation in all matters. It is the intention herein that through these proceedings, the purchaser or purchasers of the bonds herein named, will have provided to him or them, without cost, the approving opinion of Dumas, Huguenin and Boothman, Dallas, Texas, and should the purchaser or purchas- ers desire the approving opinion of any market attorney other than those above named, he or they will secure the same at their own expense. If any proceedings have been started relative to any of the above bonds, we will be provided with certified copies of the proceedings. Also it is understood that the City will pay for any advertisements or notices given in your local paper and will pay the election officials. For our services and the expense in the above, you will pay us a fee of $2.24 for each $1,000 bond, as issued, on the maximum total issues of $5,794,000.00. Respectfully submitted, CENTRAL INVESThLiT COMFANY OF TEXAS 1 P. 0. Box 590 Plainview, Texas By: /s/ C. M. Smith November 7, 1952 Honorable Mayor and Members of the City Commission City of Lubbock Lubbock, Texas Gentlemen: You have said to us that the City Commission of the City of Lubbock, Texas, contemplates the calling of an election to allow the voters of the City of Lubbock to approve or disapprove the issuance of certain bonded indebtedness in an approximate amount of $5,594,000. You have asked us to propose the circumstances under which we would act as your Fiscal Agent in this connection. We are happy to propose as follows: 1. Under the direction of a competent firm of recognized bond attorneys, to be employed by the City of Lubbock, '-,ut acceptable to us, we will supervise, assist and advise with you upon steps necessary to be taken toward the calling of the election, the legal issuance of the bonds, and further we will reimburse the City of Lubbock for the full amount of the fee of such attorneys. 2. We agree to'attend to and pay for the printing of said bonds. 3. We will pay the necessary expenses in obtaining the approving opinion of the Attorney General of the State of Texas and registration by the Comptroller of Public Accounts, together with any and all other expenses incident to the final issuance of the bonds, with the exception of the payments to election judges for services rendered, and further should any litigation be instituted preventing the completion of the issuance of the bonds, then the expenses of such litigation shall be borne by the City of Lubbock. 4. We agree to submit to the City Commission of the City of Lubbock for its approval a schedule of maturities which will advantageously coincide with the present maturing obligations of the City. 5. We agree to prepare notices containing Lroper financial data and other pertinent in- formation necessary for investment firms to submit bids. 6. We agree to pay the expenses for the advertising of these bonds in the "Bond Buyers", such advertisement to run one time in the weekly issue ten days prior to the date that the City of Lubbock will receive bids. Any expense of local advertising will be borne by the City of Lubbock. 7. We agree to prepare complete data with respect to the debt of the City of Lubbock, its tax resources and its economic position in order to properly present the situation to the City with the financial rating agencies, such as Standard and Poor's Corporation, Dun and Bradstreet, and Moody's Service. The City Commission of the City of Lubbock, Texas, hereby agrees to cooperate with us and the heretofore mentioned firm of bond attorneys in the passing of all necessary orders, etc., required in the legal issuance of these bonds. After we have done all things required of us to -ward the final issuance of these bonds, in whole or in part, and delivery thereof has been made to the successful purchaser or purchasers, then the City of Lubbock agrees to pay us and we agree to accept fees in accord- ance with the following schedule: $2.95 per $1,000 Bond; such amount to be paid to us simultaneously with the delivery of the bonds to the succe ful purchaser or burchasers. In the event the election or elections contemplated in this proposal fail, and no bonds are issued, you will owe us nothing. In connection with this proposal, we reserve the right to submit a bid for these bonds when advertised for sale, and if we are successful purchaser to waive our fee if we choose to do so. This proposal is submitted to you in duplicate, and upon acceptance and approval by you, shall be signed by the Ma,. -or and attested to by the Secretary of the City of Lubbock, Texas. Respectfully submitted, FIRST SOUTHKI'bT COMPANY By: /s/ Frank J. Medanich Authorized Representative This 7th day of November, 1952, came on to be considered the above proposal between the City of Lubbock, Texas, and First Southwest Company, Dallas, Texas, and after due consider - ation motion was made by Commissioner Davis and seconded by Commissioner Carpenter that the City of Lubbock, Texas, enter into said proposal according to the terms thereof. The motion was passed unanimously with a lawful quorum of the City Commission present. /s/ Murrell R. Tripp Mayor, City of Lubbock, Texas ATTEST: 1s/ Lavenia Lowe City Secretary It is hereby agreed and understood that the City of Lubbock, Texas, has engaged the firm of Dumus, Huguenin and Boothman, of Dallas, Texas, to handle the legal details of the pro- posed bond issue, in accordance with the terms of this agreement. First Southwest Company of Dallas, Texas, does hereby confirm said employment and agrees to cooperate and advise with said firm and pay legal fees in accordance with this agreement. First Southwest Company By: /s/ Frank J. Medanich Authorized representative After consideration of the above proposals motion was made by Commissioner Davis, seconded by Commissioner Carpenter, motion carried, Mayor Tripp and Commissioners Carpenter, Davis and Thomas voting Yea, none voting Nay, that the bid of First Southwest Company of Dallas, Texas, as set out above, be accepted for this service. 52-11-174-331 Motion by Commissioner Thomas, seconded by Commissioner Carpenter, motion carried, Mayor Tripp and Commissioners Carpenter, Davis, and Thomas voting Yea, none voting Nay, to employ the firm of Dumas, Huguenin and Boothman of Dallas, Texas to handle the legal details of the proposed bond issue as set out in the above agreement of First Southwest Company. 52-11-174-332. Motion by Commissioner Davis, seconded by Commissioner Carpenter, motion carried, Mayor Tripp and Commissioners Carpenter, Davis, and Thomas votZng Yea, none voting Nay, to approve plans and specifications and authorize advertisement for bids to be received November 21, 19529 for improvements to the City of Lubbock Power Plant Building # 2 located on north Ave. H at an estimated cost of $13,500.00. this work to be done under G. W. 0. # 3313. 52-11-174-333 Motion by Commissioner Davis, seconded by Commissioner Thoma_, motion carried, Mayor Tripp and Commissioners Carpenter, Davis, and Thomas voting Yea, none voting Nay, to authorize the extension by City Forces of Electric Power Line to serve Television Station known as KDUB located at 72nd Street and College Avenue. ;estimated cost of the power line extension $3,112.00. Payment to be made from General budgeted Funds. No further business cominc up adjourned. r conside.rnti on, the City ommission Read and a - proved this the �__ 13th_-_ day of November 1.952. P7u.rrell AYOR AT -cT. - - ----- ecretarv- reasIII: