Min - City Council - 1988 - 03/29 - Special CalledALLEN CITY COUNCIL
CALLED - SPECIAL SESSION
MARCH 29, 1988
Present:
Joe Farmer, Mayor
Council Members:
Rex Womack
Bobby Glass
Jim Wolfe
Jim Pendleton
Jack Pennington
Absent:
Jerry Wilson, Mayor Pro Tem
City Staff:
Jon McCarty, City Manager
Marty Hendrix, City Secretary
Charlotte Smith, Finance Director
Guests
Dan Almon, city's bond agent with Southwest Securities
Ed Esquival, city's bond attorney with Fulbright and Jaworski
With a quorum of the Council Members present, the called - special
session of the Allen City Council was called to order by Mayor Farmer at
7:30 p.m. on Tuesday, March 29, 1988, in the Council Chambers of the Allen
Municipal Annex, One Butler Circle, Allen, Texas.
Report of the City's Bond Agent
Regarding All Matters Relating to
the Issuance and Sale of $2,500,000
fn General Obligation Bonds for the
City of Allen, Texas, and the Bids
Therefore (Agenda Item II)
Dan Almon, city's bond agent with Southwest Securities, distributed to
the Council a bid tabulation sheet so that the Council could record the bids
as they were read, if they so desired, and also provided a copy of the most
recent bond buyers' index. Mr. Almon spoke before the Council on the bond
buyers index. Mayor Farmer opened the bids and Mr. Almon read the
following bids submitted:
1. Southwest Securities, Inc.
$1,687,491.67 Interest Rate = 7.1680%
Before proceeding any further, Mr. Almon explained to the Council the
estimated interest rate used on the bond brochure and explained to the
Council the use of insurance in bidding on the bonds and how it was used in
provide for a lower interest rate.
2. First Republic Bank - Dallas
$1,689,036.25 Interest Rate = 7.1746$
3. Blunt Ellis & Loewi, Inc.
$1,682,764.58 Interest Rate = 7.14802$
4. Rauscher Pierce Refsnes, Inc.
$1,706,972.07 Interest Rate = 7.250855
ALLEN CITY COUNCIL
CALLED - SPECIAL SESSION
MARCH 29, 1988 Page 2
Report of the City's Bond Agent
Regarding All Matters Relating to
the Issuance and Sale of $2,500,000
in General Obligation Bonds for the
City of Allen, Texas, and the Bids
Therefore (cont'd) (Agenda Item II)
5. Bear, Stearns & Company, Inc.
$1,698,680.62 Interest Rate = 7.215635%
6. MBank Capital Markets
$1,673,319.79 Interest Rate = 7.107904%
Mr. Almon then read what the interest rates would be for the life of
the bonds as submitted by MBank. Mr. Almon advised that the bidder with
the lowest interest rate was MBank. Mr. Almon also advised that when his
firm received this information, they had done a calculation on the figures and
he advised that they were correct.
Mr. Almon spoke before the Council on the bond market and the bids
that were submitted. He also spoke before the Council on the comments
made by the bond rating firms of Moody's and Standard and Poor's when they
made their bond ratings for the city.
Ordiimnce No. 844-3-88: An Ordinance
Authorizing the Issuance of "City of
Allen, Texas, General Obligation Bonds,
Series 1988"; 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 Distribution of an
Official Statement Pertaining Thereto;
and Providing an Effective Date. (Agenda Item III)
At this time Ed Esquival, the city's bond attorney with Fulbright and
Jaworski, spoke before the Council on the action that needed to be taken
regarding this bond sale. Mr. Esquival reviewed the contents of the bond
ordinance and the resolution authorizing a paying agent/registrar.
MOTION: Upon a motion made by Councilman Womack and seconded by
Councilman Pennington, the Council voted six (6) - none (0) to
accept the bid submitted by MBank for the purchase of $2,500,000
"City of Allen, Texas, General Obligation Bonds, Series, 1988",
dated April 1, 1988, at a net effective interest rate of 7.107904%.
The motion carried.
Mayor Farmer read the ordinance caption into the record as follows:
"An Ordinance Authorizing the Issuance of "City of Allen, Texas, General
Obligation Bonds, Series 1988"; Specifying the Terms and Features of Said
Bonds; Levying a Continuing Direct Annual Ad Valorem Tax for the Pay -
to ment of Said Bonds; and Resolving Other Matters Incident and Related to
the Issuance, Sale, Payment and Delivery of Said Bonds, Including the
Approval and Distribution of an Official Statement Pertaining Thereto;
and Providing an Effective Date."
MOTION: Upon a motion made by Councilman Wolfe and seconded by
Councilman Pendleton, the Council voted six (6) for and none
(0) opposed to approve and adopt Ordinance No. 844-3-88, as
captioned previously. The motion carried.
ALLEN CITY COUNCIL
CALLED - SPECIAL SESSION
MARCH 29, 1988 Page 3
Resolution No. 845-3-88(R): A Resolution
Approving and Authorizing the Execution
of a "Pay Agent/Registrar Agreement" in
Relation to the "City of Allen, Taxes,
General Obligation Bonds, Series 1988"
and Resolving Other Matters Incident and
Related Thereto. (Agenda Item IV)
Mr. Esquival spoke before the Council on the proposed resolution that
would approve and authorize the execution of an agreement designating a
paying agent/registrar for the bonds. He advised that If during the bond
process the city decided to change paying agents, they could do so and
advised of the how the process works. Mr. Esquival advised the Council that
the city's paying agent/registrar was MTrust Corporation and their rates for
these services were competitive with other agencies.
Mayor Farmer read the resolution caption into the record as follows:
"A Resolution Approving and Authorizing the Execution of a "Pay Agent/
Registrar Agreement" in Relation to the "City of Allen, Texas,
General Obligation Bonds, Series 1988" and Resolving Other Matters
Incident and Related Thereto."
MOTION: Upon a motion made by Councilman Pennington and seconded by
Councilman Pendleton, the Council voted six (6) for and none (0)
opposed to approve and adopt Resolution No. 845-3-88(R), as
captioned previously. The motion carried.
Items of Interest to the Council (Agenda Item V)
The Council discussed with Mr. Almon if the bonds have a penalty for an
early call. Mr. Almon explained to the Council that they do not.
Adjourn (Agenda Item VI)
MOTION: Upon a motion made by Councilman Wolfe and seconded by
Councilman Pendleton, the Council voted six (6) for and none (0)
opposed to adjourn the called - special meeting of the Allen City
Council at 8:04 p.m. on Tuesday, March 29, 1988. The motion
carried.
These minutes approved on the 7th day of April ,
1988.
APPROVED:
JA Farmer, MAYOR
ATTEST:
Marty Hendrix, %WC, CITY SECRETARY