MINUTES OF THE CITY COUNCIL CITY OF AUSTIN. TEXAS Regular Meeting January 30, 1958 10:00 Α. Μ. Council Chamber, City Hal The meeting was called to order with Mayor Miller presiding. Roll call: Present: Absent: Councilmen Long, Palmer, Pearson, White, Mayor Miller None * * * In accordance with published notice thereof, promptly at 10:00 o clock A. M., Mayor Miller announced that the time for submitting bids on the purchase of $6,750,000 Electric, Water and Sewer Revenue Bonds and $2,000,000 Various Purpose General Obligation Bonds of the City of Austin had expired; and the City Council would proceed with the opening of said bids. Bids were then opened and read as follows; * * * CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $2,000,000 VARIOUS PURPOSE GENERAI, OBLIGATION BONDS JANUARY 30, 1958 BONDS MATURE NAME OF BIDDER 1. C. J. DEVINE & CO. AND ASSOCIATES 2. DREXEL & CO. AND ASSOCIATES Dean Witter & Co. Trust Company of Georgia. C. F. Childs & Co. Provident Savings Bank & Trust Co. DATE BOTH INCLUSIVE $1,900,000 G. O. BONDS SERIES, 1958 Juary 1, 1959, thru January 1, 1967 January 1, 1968, thru January 1, 1980 January 1, 1981, thru January 1, 1983 $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1967 January 1, 1968, $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1973 January 1, 1974, thru January 1, 1981 January 1, 1982, thru January 1, 1983 $ 100,000 G. O. BONDS SERIES, 1958 Folger, Nolan, Fleming-W.B. Hibbs Co. January 1, 1959, thru January 1, 1968 Barcus, Kindred & Co. Dittmar & Company, Inc. Rowles, Winston & Co. Burt, Hamilton & Co., Inc. 3. HALSEY, STUART & CO., INC. AND ASSOCIATES $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 January 1, 1969, thru January 1, 1974 January 1, 1975, thru January 1, 1983 NOMINAL INTEREST RATES GROSS INTEREST COST PREMIUM OFFERED NET INTEREST COST EFFECTIVE INTEREST RATE 3 2.90 % 3 呢 3 % 2.90 % $ 878,896.72 599.00 $ 878,297.72 2.931730% 3 3 % 2.90 % % 3 % 883,007.10 102.00 882,905.10 2.94711 % 4 % Chemical Corn Exchange Bank Salomon Bros. & Hutzler John Nuveen & Co. Blair & Co., Inc. 2.80 % 2.90 % A. G. Becker & Co., Inc. Hornblower & Weeks $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 2.70 % 883,893.62 120.00 883,773.62 2.950009% Burns, Corbett & Pickard, Inc. The Fort Worth National Bank Merrill, Turben & Co., Inc. Watling, Lerchen & Co. NAME OF BIDDER CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $2,000,000 VARIOUS PURPOSE GENERAL OBLIGATION BONDS JANUARY 30, 1958 BONDS MATURE DATE BOTH INCLUSIVE $1,900,000 G. O. BONDS SERIES, 1958 NOMINAL GROSS INTEREST RATES INTEREST COST PREMIUM OFFERED NET INTEREST COST EFFECTIVE INTEREST RATE 4. THE CHASE MANHATTAN BANK, AND ASSOCIATES Kuhn, Loeb & Co. First National Bank in Dellas Ernst & Co. Texas Bank & Trust Co. of Dallas 5. FIRST NATIONAL CITY BANK OF NEW YORK & ASSOCIATES Merrill Lynch, Pierce, Fenner & Beane Braun, Bosworth & Co., Inc. Robert Winthrop & Co. Fridley, Hess & Frederking Austin, Hart & Parvin 6. THE FIRST BOSTON CORPORATION First Southwest Co. Robert W. Baird & Co., Inc. The Illinois Company Weeden & Company Hayden, Miller & Co. First of Texas Corporation January 1, 1959, thru January 1, 1963 January 1, 1964, thru January 1, 1977 January 1, 1978, thru January 1, 1983 $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1983 4 % 2.90% % 3 2.90 % $ 889,704.58 3 None $ 889,704.58 2.9698 % % $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 3 % 898,748.20 1,9.10.00 896,838.20 2.9936 % $1,900,000 G. 0. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 January 1, 1969, thru January 1, 1975 January 1, 1976, thru January 1, 1983 4 % 23/4% 3 % $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 3 % 897,280.23 77.77 897,202.46 2.99183% $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1983 3 % $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 3 % 898,750.05 379.00 898,371.05 2.998734% Shannon & Company Barrett, Fitch, North & Co. Garrett and Company, Inc. 7. FIRST NATIONAL BANK OF CHICAGO Mercantile Trust Company Julien Collins & Company W. E. Hutton & Co. William Blair & Company NAME OF BIDDER CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $2,000,000 VARIOUS PURPOSE GENERAL OBLIGATION BONDS JANUARY 30, 1958 BONDS MATURE DATE BOTH INCLUSIVE NOMINAL INTEREST RATES GROSS INTEREST COST PREMIUM OFFERED NET INTEREST COST EFFECTIVE INTEREST RATE 8. BANKERS TRUST CO. N. Y. Harris Trust and Savings Bank Republic National Bank of Dallas Russ & Company $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1966 January 1, 1967, thru January 1, 1975 January 1, 1976, thru January 1, 1983 4 2.90 % 3 %%% $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1966 January 1, 1967, thru January 1, 1968 3 % 2.90 % $ 902,687.10 None $ 902,687.10 3.013142% 9. PHELPS, FENN & CO. RAUSCHER, PIERCE & CO., INC, AND ASSOCIATES $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1963 January 1, 1964, thru January 1, 1983 4 % 3 % $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 3 % 904,583.35 None 904,583.35 3.0194 % 10. LEHMAN BROTHERS & ASSOCIATES Shields & Company B. J. Van Ingen & Co., Inc. Bacon, Stevenson & Co. White, Masterson & Co. 11. J. P. MORGAN & CO., INC. AND ASSOCIATES $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 January 1, 1969, thru January 1, 1972 January 1, 1973, thru January 1, 1983 $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 $1,900,000 G. O. BONDS SERIES, S, 1958 January 1, 1959, thru January 1, 1971 January 1, 1972, thru January 1, 1983 $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 3 % 3.20 % 3 % 3 3 % 908,186.69 620.00 907,566.69 3.0294 % 3 1/4% % 2 3/4 91.1,303.14 907.00 910,396.14 3-0388 % NAME OF BIDDER CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $2,000,000 VARIOUS PURPOSE GENERAL OBLIGATION BONDS JANUARY 30, 1958 BONDS MATURE DATE BOTH INCLUSIVE NOMINAL INTEREST RATES GROSS NET EFFECTIVE INTEREST COST PREMIUM OFFERED INTEREST COST INTEREST RATE 12. F. S. SMITHERS & CO., N. Y. 13. THE NORTHERN TRUST CO. AND ASSOCIATES Harriman Ripley & Co., Inc. Blyth & Co., Inc. First of Michigan Corp. Stern Brothers & Co. City National Bank & Trust Co., Kansas City Schoellkopf, Hutton & Pomeroy, Inc. $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 January 1, 1969, thru January 1, 1970 January 1, 1971, thru January 1, 1983 $ 100,000 G. O. BONDS SERIES, 1.958 January 1, 1959, thru January 1, 1964 January 1, 1965, thru January 1, 1968 $1,900,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1975 January 1, 1976, thru January 1, 1983 $ 100,000 G. O. BONDS SERIES, 1958 January 1, 1959, thru January 1, 1968 4 % 2 3/4% 3 % 2 1/4% 2 1/2 % $ 911,772.92 None $ 911,772.92 3.0434 % 3 % 3.20 % 3 % 934,822.85 118.00 934,704.85 3.12001 % Commerce Trust Company Baxter & Co. Bacon, Whipple & Co. McCormick & Co. H. V. Sattley & Co., Inc. McClung & Knickerbocker Dallas Union Securities Co. Boettcher and Company McDonald-Moore & Co. Each of the above and foregoing bids was accompanied by Cashier's-Certified Check in the amount of $40, 000. 00. Whereupon bids were referred to the Finance Director for tabulation and evaluation. Recessed Meeting * * * * * * 2:00 P. Μ. Councilman Pearson offered the following resolution and moved its adoption: (RESOLUTION) WHEREAS, C. J. Devine & Co. & Associates, acting by and through their duly authorized agent and representative, C. J. Devine & Co., this day submitted to the City Council the following proposal: OFFICIAL BID FORM Honorable Mayor and City Council January 30, 1958 City of Austin Austin, Texas Gentlemen: Reference is made to your "Official Notice of Sale," dated January 17, 1958, of $2,000,000 CITY OF AUSTIN, TEXAS GENERAL OBLIGATION BONDS SERIES 1958, which is attached hereto and made a part hereof. For your legally issued bonds, as described in said Notice, we will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $599.00 for bonds maturing and bearing interest as follows: $1,900,000 General Obligation Bonds, Series 1958: January 1, 1959, through January 1, 1967, . January 1, 1968, through January 1, 1980, January 1, 1981, through January 1, 1983, . $100,000 General Obligation Bonds, Series 1958: January 1, 1959 through January 1, 1967, January 1, 1968, through January 1,19--, January 1, 19, through January 1, 19-, Interest cost, in accordance with the above bid, is: Gross Interest Cost. Less Premium NET INTEREST COST EFFECTIVE INTEREST RATE 3. % $ 53,100.04 2.90% 3. % 572,870.85 236,775.00 3. % 13,275.00 2.90% 2,875.83 % $878,896.72 599.00 $878,297.72 2.931730% Attached hereto is Cashier's-Certified Check of The Austin National Bank, Austin, Texas, in the amount of $40,000.00, which represents our Good Faith Deposit, and which is submitted in accordance with the terms as set forth in the "Official Notice of Sale." If we are the successful purchasers, we will select McCall, Parkhurst & Crowe, Bond Attorneys, whose fee we will pay, to render their unqualified approving legal opinion on these bonds. We desire that the Paying Agents for these bonds be: Bankers Trust Co., New York, New York, and Austin National Bank, Austin, Texas. Respectfully submitted, C. J. Devine & Co. & Associates S/ C. J. Devine & Co. By Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Austin, Texas, this the 30th day of January, 1958. ATTEST: City Clerk, City of Austin, Texas Mayor, City of Austin, Texas APPROVED: City Attorney, City of Austin, Texas WHEREAS, the said bic and proposal of C. J. Devine & Co. & Associates was the most advantageous bid submitted to the City Council for the purchase of the aforesaid bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN: That said proposal of C. J. Devine & Co, & Associates to purchase $2,000,000.00 City of Austin, Texas General Obligation Bonds, Series 1958, as per the City's Notice of Sale and Prospectus dated January 17, 1958, at the price and upon the terms of said proposal be and the same is hereby accepted and C. J. Devine & Co. & Associates, be awarded the sale of said bonds; and, BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN: That the City Manager be and he is hereby authorized and directed to sell to C. J. Devine & Co. & Associates the $2,000,000.00 of City of Austin, Texas General Obligation Bonds, Series 1958 as per the City's Notice of Sale and Prospectus dated January 17, 1958 at par and accrued interest from date of issue to date of delivery plus a cash premium of $599.00 according to the terms of said bid hereinbefore set out. The motion, seconded by Councilman White, carried by the following vote: Councilmen Long, Palmer, Pearson, White, Mayor Miller None Ayes: Noes: * * There being no further business, the Council adjourred at 7:00P.M., subject to the call of the Mayor. ATTEST: /s/Elsie Woosley City Clerk APPROVED /s/Tom Miller Mayor