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HomeMy WebLinkAboutMinutes - City Council - Special - 8/21/1979468 AUG 2 1 1979 79-38k468-843 ( 1) Publisher's Affidavit on Page 471. 7 9-34468-844 ( 2) SPECIAL CITY COUNCIL MEETING August 21, 1979 The City Council of the City of Lubbock, Texas, met for a Special Meeting on Tuesday, August 21, 1979, at 10:30 a.m. in the Council Chambers, Second Floor, City Hall. Those present: Mayor Dirk West, Mayor Pro Tem Alan Henry, Councilwoman Carolyn Jordan, Councilman Bill McAlister, Councilman M. J. Aderton, City Manager Larry Cunningham, City Attorney John C. Ross,Jr., and City Secretary -Treasurer Evelyn Gaffga. Absent: None The meeting was called to order by Mayor Dirk West at 10:32 a.m., annou that the designated time for receipt of bids, as advertised, had passed and declared no further bids would be received. Receive bids for sale of bonds 1979 Series. The bids received were duly opened by the City Secretary, and referred to Director of Finance Sterling Miller and Financial Advisor Joe Smith of the First Southwest Company of Dallas. The bids, in order as opened, were as follows: Effective Interest Rate Dean, Witter, Reynolds, Inc. 5.5628018% First National Bank of Chicago 5.6805 % Northern Trust Co., Chicago 5.674 % Republic National Bank of Dallas 5.5760 % Merrell, Lynch, Pierce, et al 5.5793 % Citibank, New York 5.6417 % Morgan Guaranty Trust of New York 5.6368 % First National Bank in Dallas 5.5555 %* After careful re-evaluation of the bids by Messrs. Miller and Smith, it was the recommendation of Mr. Smith that the bid of First National Bank in Dallas be accepted. The motion was made by Councilman Aderton, seconded by Mayor Pro Tem Henry to accept the bid of First National Bank in Dallas for the $8,820,000 General Obligation Bonds, 1979 Series. Motion carried: Mayor West, Mayor Pro Tem Henry, Councilwoman Jordan, Councilmen Aderton and McAlister voting Yea; none voting Nay. Consider nARRna. of a resolution awardi official statement and all or other mat Resolution No. 240 RESOLUTION NO. 240 the sale of bonds a iuc;luenral thereto. A RESOLUTION by the City Council of the City of Lubbock, Texas, approving the form and content of the official statement and a ratings addendum employed in offerin f 1 $8,820,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1979" and awarding the sale of said bonds. WHEREAS the City's notice of sale, bidding insturcitons and offical statement approved under date July 26, 1979 and employed in offering for sale, on this, the 21st day of August, 1979, $8,820,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1979," dated August 1, 1979, recite that the City will furnish the purchaser, as a part of the transcript of n a certified copy of the City Council's resolution containing representationss, as terein set forth; and WHEREA S, on July 26, 1979, this City Council passed and adopted its Ordinance No. 7897 authorizing issuance of the aforesaid bonds and ahs this day received sealed bids for the pruchase thereof submitted pursuant to said notice of sale, duly published in compliance with applicable provisions of the City Charter; and 469 OM *'r WHEREAS all bids submitted as aforesaid have been opened, read and cnsidered, and the City Council has determined that the best bid thus submit- ted is that of the bidder hereinafter named; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1: There being no supplements or amendments thereto, the form and content of the official statement as approved by the City Council's resolution adopted July 26, 1979 and the addendum thereto relating to ratings with respect to the sale of $8,820,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1979" are hereby reconfirmed, ratified and approved as of the date hereof. The original purchaser of the bonds is hereby authorized to use the aforementioned official staement and addendum in the initial offering thereof for sale to others and its use in the reoffering of said bonds by others is also authorized. SECTION 2: The Mayor and City Secretary are authorized to make avail- able to the purchaser of the bonds hereinafter named on the date of their delivery certifications that on the date of said official statement, on this date of the sale of said bonds and on the date of their delivery to such original purchaser, the statements and representations contained in the official staement were and are correct in all material respects. SECTION 3: The bid submitted by First National BAnk in Dallas and Associates, relating to its offer to purchase $8,820,000 "CITY OF LUBBOCK, TEXAS, GEN- ERAL OBLIGATION BONDS, SERIES 1979," bearing interest at the rate of 5.75%, at a price of $4,891,089.10 plus accrued interest thereon from their date to the date of their delivery, be and same is hereby approved and accepted. SECTION 4: The bonds be and they are hereby officially awarded to said successful bidder in accordance with the foregoing, and such sale and all procedures in its accomplishment are hereby ratified and confirmed. SECTION 5: A certified copy of this resolution shall be made a part of the transcript of proceedings which shall be available to the original purchaser of the bonds. PASSED AND APPROVED this the 21st day of August, 1979. /s/ Dirk West Mayor, City of Lubbock, Texas ATTEST: /s/Evelyn Gaff a City Secretary, City of Lubbock, Texas APPROVED AS TO FORM: /s/John C. Ross Jr. John C. Ross, Jr., City Attorney Mr. Smith read into the record, verbatim, the referenced resolution approving the official statement of the City, and awarding the sale of the bonds as referenced above. Motion was made by Councilman McAlister, seconded by Councilwoman Jordan to pass said resolution. Motion carried: Mayor West, Mayor Pro Tem Henry, Councilwoman Jordan, Councilmen Aderton and McAlister voting Yea; none voting Nay. Mayor West declared a 5-minute recess to allow for the proper execution of all documents with respect to the above action. Upon reconvening at 11:15 a.m., the Council entered into a Work Session, meeting with those representatives of local lending institutions present with respect to HB 1876. Joe Smith made an additional presentation as to the substance of the referenced Bill, its status with Congress, the proposed transitional guidelines which would allow greater flexibility in the program. Also present were Mr. Elbert Morrow, Attorney, Dumas, Huguenin, Boothman and Morrow of Dallas, and Gary Kell, Lomas & Nettleton of Little Rock, Arkansas. As related to the representatives present, the initial phase would be for the Council to create a non-profit corporation which would serve as the vehicle through which these loans were made with the respective lending institution; subsequently, there would be a survey conducted to determine the market in our community; there would be no liability to the City; it would have no effect on the bond rating of the City; the Council would appoint the initial Board of Directors of the non-profit corporation, and would approve any subsequent appointments. yO G 2 j 1979 A The ensuing discussion reflected the following concerns: Q. How far can we go at this time? A. It is under the transition rule, by which the bonds could be issued. Q. Without the transition rules, do we wait for the federal decision? A. The House Ways and Means Committee rules on the transition rules. Q. Who requests the transition rule? A. The Housing Authority would request it. Q. What about the abuses of the program already (as in Chicago)? A. The referenced abuses resulted because one lending agency in the city dominated the loans; all lending institutions in a City must participate. Q. As to the Board, what areas would need to be served? A. Representatives of banks, and all lending institutions; someone on the Board would need to have knowledge of real estate. Q. How is the money allocated? A. The proposed lending institution would have prepared and submitted historical data as to their performance over the last three years; the Board decides now the money is allocated based on this data. Q. Are there any cities in Texas now under this program? A. Five cities --Cleburne, Denton, Lufkin, Burleson, Midland - Odessa. Mayor West invited the representatives to visit with Mr. Smith following the session, should they have additional questions or comments. Motion was made by Councilman Aderton, seconded by Mayor Pro Tem Henry to adjourn at 12 noon. Motion carried: Mayor West, Mayor Pro Tem Henry, Councilwoman Jordan, Councilmen Aderton and McAlister voting Yea; none voting Nay. ATTEST: CITY 1ECt ARY-TREASU R READ AND APPROVED THIS THE 13th ATTEST: CITY SECRE ARY-TREASU R DAY OF September ,1979. 4'` f AU0 21 L L L11 L 79-38-468-843 ( ;) THE STATE OF TEXAS COUNTY OF LUBBOCK Before me TMarilyn Pierce a Notary Public in and for Lubbock County, Texas on this day personally appeared _ J. C. Rickman*+ Business Manager of the Southwestern Newspa- pers Corporation, publishers of the Lubbock Avalanche. Journal — Morning, Evening and Sunday, who being by me duly sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks prior to the first insertion of this Legal Notice - 142 words (a $it Per word - $163. 30 No. 561723 at Lubbock County, Texas and the attached print- ed copy of the Notice is a true copy of the original and was printed in the Lubbock Avalanche -Journal on the following dates: July 20 & 27 979. (City of Lubbock P.O. Business Manager LUBBOCK AVALANCHE -JOURNAL Southwestern Newspapers Corporation Subscribed and sworn to before me this 17 t h day of August P)"4yx, )met MARILYN PIERCE MY COMMSSSIDN EXPIRES FEB. 1, 1980 Notary Public in and for Lubbock Countyff Texas CITYOF LUBBOCK, TEXAS ie Cityy Coun[11 of the City of I ck, Texas, wlit receive sei Is at the City Hell, Lubb- xas, until 10:30 A.M., Con lyli9yht Time, Tuesday, Aug T91, for the following descrl Voted August 1, 19M; ma- turing s"S OW each year February 1, 1990 through 198 3, and 340,000 each year February 1, l"d Ihrou9qh 1999. Denomina• I.. 45,000. Dpfional at per and accrued Interest an February I, t"ll, or any In- terest payment date there. offer. Further information may be ob twined from Mr. Sterling K. Miller Director of Finance, City of Lub bock, Texa000 s, P.O. Box ?, Lub- bock, Texas 79457; or from First Southwest Company, Mercantile Bank Bulidinp, Oellas, Texas 75?01, Financial COnsullants to the of Lubbock, Texas r Seal t