Min - City Council - 1985 - 09/30 - Special CalledALLEN CITY COUNCIL
CALLED - SPECIAL SESSION
SEPTEMBER 30, 1985
Present:
Donald P. Rodenbaugh, Mayor
Council Members
Joe Farmer, Mayor Pro Tem
Jim McClure
Jim Wolfe
Jim Pendleton
Gary Roch
Absent:
Rex Womack
City Staff•
Jon McCarty, City Manager
Marty Hendrix, City Secretary
Guests:
Dan Almon, city's bond agent with Schneider, Bernet & Hickman
Mark Westergard, city's bond attorney with Dumas, Huguenin,
Boothman, and Morrow
The called - special session of the Allen City Council
was called to order by Mayor Rodenbaugh at 7:36 p.m. on
Lov Monday, September 30, 1985, in the Council Chambers of the
Allen Municipal Annex, One Butler Circle, Allen, Texas.
All Matters Incident and Related to
the Issuance and Sales of City of
Allen, Texas, Waterworks and Sanitary
Sewer Revenue Bonds, Series 1985,
Dated September 1, 1985, Including: (Agenda Item II)
Ordinance No. 637-9-85: An Ordinance
Authorizing the Issuance of "City of
Allen, Texas, Waterworks and Sewer
System Revenue Bonds, Series 1985";
Specifying the Terms and Features of
Said Bonds; Pledging the Net Revenues
of the City's Combined Waterworks and
Sanitary Sewer System to the Payment
of the Principal of and Interest on
Said Bonds; Enacting Provisions
Incident and Related to the Issuance,
Payment, Security and Delivery of
Said Bonds, Including the Approval
and Distribution of an Official State-
ment Pertaining Thereto; and Providing
an Effective Date.
and
Resolution No. 638-9-85: A
Resolution Approving and Authorizing
the Execution of a "Paying Agent/
Registrar Agreement" in Relation
to the "City of Allen, Texas, Water-
works and Sewer System Revenue Bonds,
Series 1985" and Resolving Other
Matters Incident and Related Thereto.
and
21I
ALLEN CITY COUNCIL
SEPTEMBER 30, 1985
Page 2
All Matters Incident and
Related to the Issuance and
Sale of City of Allen, Texas,
General Obligation Bonds,
Series 1985, Dated September 1,
1985, Including: (Agenda Item II)
Ordinance No. 639-9-85: An
Ordinance Authorizing the Issuance
of "City of Allen, Texas, General
Obligation Bonds, Series 1985";
Specifying the Terms and Features
of Said Bonds; Levying a Continuing
Direct Annual Ad Valorem Tax for
the Payment of Said Bonds; and
Resolving Other Matters Incident
and Related to the Issuance, Sale
Payment and Delivery of Said Bonds,
Including the Approval and Distri-
bution of an Official Statement
Pertaining Thereto; and Providing
an Effective Date.
and
Resolution No. 640-9-85(R): A
Resolution Approving and Authorizing
the Execution of a "Paying Agent/
Registrar Agreement" in Relation
to the "City of Allen, Texas, General
Obligation Bonds, Series 1985" and
Resolving Other Matters Incident
and Related Thereto.
Dan Almon, the city's bond agent with Schneider, Bernet
& Hickman, distributed to the Council extra copies of the
Official Statement for the sale of the $2,800,000 in City of
Allen Waterworks and Sewer System Revenue Bonds, Series 1985,
and for the sale of the $4,500,000 in City of Allen General
Obligation Bonds, Series 1985.
Mayor Rodenbaugh advised that the city would now proceed
with the bid opening for the subject bonds and that the City
Secretary would open the bids, and announce the name of the
bidder and which bonds were being bid. Mayor Rodenbaugh ad-
vised that Mr. Almon would then read the bid results.
The bid results were read by Mr. Almon for the city's
Waterworks and Sewer System Revenue Bonds as shown in Attachment
No. 1. The bid results were then read by Mr. Almon for the
city's General Obligation Bonds as shown in Attachment No. 2.
Mr. Almon advised that the lowest bidders appeared to be
Dean Witter Reynolds, Inc., for the city's Waterworks and
Sewer System Revenue Bonds, and Clayton Brown and Associates,
Inc., for the city's General Obligation Bonds.
�^ Mr. Almon distributed to the Council copies of the "Bond
(Moe
Buyer's" 20 Bond Index and reviewed the interest rates as shown
from January 1979 through September 1985. He also advised of
some other interest rates that had been received by other
municipalities in recent bond sales.
224
CITY OF ALLEN
SEPTEMBER 30, 1985
Page 3
All Matters Incident and Related
to the Issuance and Sales of
City of Allen, Texas, Waterworks
and Sanitary Sewer Revenue Bonds,
Series 1985, Dated September 1,
1985, and Ordinance No. 637-9-85,
Resolution No. 638-9-85(R); All
Matters Incident and Related to
the Issuance and Sales of City
of Allen, Texas, General Obligation
Bonds, Series 1985, Dated September 1,
1985, and Ordinance No. 639-9-85
and Resolution No. 640-9-85(R) (cont'd) (Agenda Item II)
Mr. Almon explained the impact that obtaining insurance
had on the interest rates received on the bonds. Mr. Almon
also advised that he had checked the two low bids and advised
that they were mathematically correct.
MOTION: Upon a motion made by Councilman McClure and seconded
by Mayor Pro Tem Farmer, the Council voted 6 - 0 to
accept the low bids as received from Dean Witter
Reynolds, Inc., for the city's Waterworks and Sewer
System Revenue Bonds, and Clayton Brown and Associates,
Inc., for the city's General Obligation Bonds. The
motion carried.
Mark Westergard, with the city's bond attorneys Dumas,
Huguenin, Boothman & Morrow, spoke before the Council on the
proposed ordinances and resolutions regarding the issuance
and sale of the revenue bonds and the general obligation bonds.
Mr. Westergard also spoke before the Council on current
federal legislation that could greatly effect the municipal
bond market and briefly explained some of the proposed changes
that could occur in the laws.
There was discussion on the reasoning behind the new
legislation, if Huguenin, Boothman & Morrow were doing any
summaries on the proposed legislation and what the city
could do to oppose this type of legislation. Mr. Westergard
also explained the changes in the no -arbitrage requirements.
MOTION: Upon a motion made by Councilman Wolfe and seconded
by Councilman Koch, the Council voted 6 - 0 to
adopt Ordinance No. 637-9-85, as captioned previously.
The motion carried.
MOTION: Upon a motion made by Councilman Koch and seconded
by Councilman McClure, the Council voted 6 - 0 to
adopt Resolution No. 638-9-85(R), as captioned
previously. The motion carried.
MOTION: Upon a motion made by Councilman Pendleton and
seconded by Councilman Wolfe, the Council voted
6 - 0 to adopt Ordinance No. 639-9-85, as captioned
previously. The motion carried.
MOTION: Upon a motion made by Councilman Pendleton and
seconded by Mayor Pro Tem Farmer, the Council
voted 6 - 0 to adopt Resolution No. 640-9-85(R),
as captioned previously. The motion carried.
RPM
ALLEN CITY COUNCIL
September 30, 1985
Page 4
All Matters Incident and Related
to the Issuance and Sales of
City of Allen, Texas, Waterworks
and Sanitary Sewer Revenue Bonds,
Series 1985, Dated September 1,
1965, and Ordinance No. 637-9-85,
Resolution No. 638-9-85(R); All
Matters Incident and Related to
the Issuance and Sales of City
of Allen, Texas, General Obligation
Bonds, Series 1985, Dated September 1,
1985, and Ordinance No. 639-9-84 and
Resolution No. 640-9-85(R) (cont'd) (Agenda Item II)
The Council briefly discussed with Mr. Almon the effect
of the bond rating on the interest rate the city received
as well as the obtaining of the insurance on the bonds.
Items of Interest to the Council (Agenda Item III)
There were no items to discuss at this time.
Adjournment (Agenda Item IV)
MOTION: Upon a motion made by Councilman Wolfe and seconded
by Councilman McClure, the Council voted 6 - 0 to
adjourn the called - special session of the Allen
City Council at 8:35 p.m. on Thursday, September 30,
1985. The motion carried.
These minutes approved on the 17th day of October
1985.
Marty Hendrix, CITY SECRETARY