MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Regular Meeting January 30, 1958 10:00 A. Μ. Council Chamber, City Hall 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: 5 NAME OF BIDDER CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $6,750,000 ELECTRIC, WATER AND SEWER REVENUE BONDS JANUARY 30, 1958 BONDS MATURE DATE BOTH INCLUSIVE NOMINAL INTEREST RATES GROSS INTEREST COST NET PREMIUM OFFERED INTEREST COST EFFECTIVE INTEREST RATE 1. LEHMAN BROTHERS AND FIRST SOUTHWEST CO., JOINT MANAGERS & ASSOCIATES Merrill Lynch, Pierce, Fenner & Beane Kuhn, Loeb & Co. Shields & Company B. J. Van Ingen & Co., Inc. Rowles, Winston & Co. Rotan, Mosle & Co. Municipal Securities Company White, Masterson & Co. R. J. Edwards, Inc. Austin, Hart & Parvin Sanders & Company and Associates April 1, 1960, thru April 1, 1966 April 1, 1967, thru April 1, 1969 April 1, 1970, thru April 1, 1979 % 4 2 3/4 % 2.90 % $2,984,190.90 $1,282.50 $2,982,908.40 2.9512 % 2. THE FIRST BOSTON CORP. & ASSOCIATES Carl M. Loeb, Rhoades & Co. Wertheim & Co. April 1, 1960, thru April 1, 1966 April 1, 1967, 4 % 3.10 % April 1, 1968, thru April 1, 1979 2.90 % 2,998,531.74 375.00 Clark, Dodge & Co. 2,998,156.74 2.9662 % Weeden & Co. Dominick & Dominick William Blair & Co. Van Alystyne, Noel & Co. The Ohio Co. Robert W. Baird & Co., Inc. The Illinois Company Anderson & Strudwick Baker, Watts & Co. Fridley, Hess & Frederking Harkness & Hill, Inc. Hayden, Miller & Co. Model, Roland & Stone Rodman & Renshaw A. G. Edwards & Sons Frantz, Hutchinson & Co. NAME OF BIDDER CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $5,750,000 ELECTRIC, WATER AND SEWER REVENCE BONDS JANUARY 30, 1958 BONDS MATURE DATE BOTH INCLUSIVE NOMINAL INTEREST RATES GROSS INTEREST COST NET PREMIUM OFFERED INTEREST COST EFFECTIVE INTEREST RATE Piper, Jaffray & Hopwood Byrå Brothers First of Texas Corporation J. A. Hogle & Co. Schmidt, Poole, Roberts & Farke 3. PHELPS, FENN & CO. April 1, 1960, thru April 1, 1966 April 1, 1967, 4 % 3 1/4% 2.90% $3,001,350.00 None $3,001,350.00 2.9694 % 4 % 2.75. % 2.90 % 3,002,601.74 None 3,002,601.74 2.970726% RAUSCHER, PIERCE & CO., INC. 4. GLORE, FORGAN & CO., AND ASSOCIATES Equitable Securities Corp. A. C. Allyn & Co. R. W. Pressprich & Co. Dean Witter & Co. Baxter & Co. Stroud & Co., Inc. Lee Higginson & Co. Dick & Merle-Smith Clark Dodge & Co. N. Y. Hanseatic Corp. Moore Leanord & Lynch Co. Scott Horner & Co. Raffensperger Hughes & Co., Inc. Courts & Co. Barrett Fitch, North & Co. Julien Collins & Co. Dewar, Robertson & Pancoast Moroney, Beissner & Co. Columbian Securities Corporation, Topeka Herbert Sims & Co., Inc. Kormendi & Co. Stranahan Harris & Co., Inc. April 1, 1968, thru April 1, 1979 April 1, 1960, thru April 1, 1967 April 1, 1968, thru April 1, 1970 April 1, 1971, thru April 1, 1979 NAME OF BIDDER CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $6,750,000 ELECTRIC, WATER AND SEWER REVENUE BONDS JANUARY 30, 1958 BONDS MATURE DATE BOTH INCLUSIVE F. Brittain Kennedy & Co. J. A. Overton & Co. F. S. Yantis & Co. Freeman & Co. Joseph, Mellen & Miller, Inc. 5. HALSEY, STUART & CO., INC., & ASSOCIATES Harriman, Ripley & Co., Inc. Blyth & Co., Inc. Salomon Bros. & Hutzler John Nuveen & Co. Blair & Co., Incorporated A. G. Becker & Co., Incorporated First of Michigan Corporation Bacon, Whipple & Co. Dallas Union Securities Company April, 1960, thru April 1, 1966 April 1, 1967, thru April 1, 1971 April 1, 1972, thru April 1, 1979 McCormick & Co. Schoellkopf, Hutton & Pomeroy, Inc. Stern Brothers & Co. Boettcher and Company Merrill, Turben & Co., Inc. Watling, Lerchen & Co. Wallace, Geruldsen & Co. Burns, Corbett & Pickard, Inc. H. V. Sattley & Co., Inc. Keith Reed & Company 6. DREXEL & CO. Bear, Stearns & Co. Braun, Bosworth & Co., Inc. Ira Haupt & Co. Wm. E. Pollock & Co., Inc. Shearson, Hammill & Co. Bramhall, Falion & Co., Inc. April 1, 1960, thru April 1, 1966 April 1, 1967, thru April 1, 1977 April 1, 1978, thr April. 1, 1979 NOMINAL INTEREST RATES GROSS INTEREST COST PREMIUM OFFERED NET INTEREST COST EFFECTIVE INTEREST RATE 14 3 % % 2.90% $3,009,255.83 $ 202.50 $3,009,053.33 2.97705 % 14 % 2.90 % 3 % 3,022,990.90 2,072.93 3,020,917.97 2.988788 % NAME OF BIDDER Wood, Gundy & Co., Inc. CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $6,750,000 ELECTRIC, WATER AND SEWER REVENUE BONDS JANUARY 30, 1958 BONDS MATURE DATE BOTH INCLUSIVE Shelby Cullom Davis & Co. Rand & Co. Dittmar & Company Green Ellis & Anderson Yarnall, Biddle & Co. Elkins, Morris, Stokes & Co. Arthur L. Wright & Co., Inc. 7. SMITH, BARNEY & CO., (Manager) & ASSOCIATES Goldman, Sachs & Co. Estabrook & Co. Alex. Brown & Sons Hallgarten & Co. G. H. Walker & Co. Roosevelt & Cross, Inc. W. E. Hutton & Co. Spencer Trask & Co. J. Barth & Co. The Milwaukee Company Tripp & Co., Inc. Fitzpatrick, Sullivan & Co. Blunt Ellis & Simmons April 1, 1960, thru April 1, 1967 April 1, 1968, April 1, 1969, thru April 1, 1979 NOMINAL INTEREST RATES GROSS INTEREST COST PREMIJM OFFERED NET INTEREST COST EFFECTIVE INTEREST RATE 4 3 1/2% % 3 % $3,121,058.40 None $3,121,058.40 3.0878 % Seasongood & Mayer McDonnell & Co. Dempsey-Tegeler & Co. Russ & Company Dallas Rupe & Son, Inc. McMaster Hutchinson & Co. James C. Tucker & Co., Inc. Each of the above and foregoing bids was accompanied by Cashier's-Certified Check in the amount of $135,000.00. Whereupon bids were referred to the Finance Director for tabulation and evaluation. 9 Recessed Meeting * * * * * * 2:00 Ρ. Μ. Councilman Pearson offered the following resolution and moved its adoption: (RESOLUTION) WHEREAS, Lehman Brothers acting by and through their duly authorized agent and representative, H. J. Szold, and First Southwest Company acting by and through its duly authorized agent and representative, Winton Jackson, this day submitted to the City Council the following proposal: OFFICIAL BID FORM Honorable Mayor and City Council City of Austin Austin, Texas Gentlemen: January 30, 1958 Reference is made to your "Official Notice of Sale," dated January 17, 1958, of $6,750,000 CITY OF AUSTIN, TEXAS ELECTRIC LIGHT AND POWER, WATERWORKS AND SEWER SYSTEM REVENUE 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 $1,282.50 for bonds maturing and bearing interest as follows: April 1, 1960, through April 1, 1966, April 1, 1967, through April 1, 1969, April 1, 1970, through April 1, 1979, Interest cost, in accordance with the above bid, is: Gross Interest Cost. 4 2-3/4 2.90 % % % Less Premium NET INTEREST COST EFFECTIVE INTEREST RATE • $2,984, 190.90 1,282.50 2.9512% $2,982,908.40 Attached hereto is Cashieris-Check of the American National Bank, Austin, Texas, in the amount of $135,000.00, 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 Dumas, Huguenin and Boothman, Bond Attorneys, whose fee we will pay, to render their unqualified approving legal opinion on this issue. We desire that the Paying Agents for this issue be: First National City New York, New York, and American National, Austin, Texas. Respectfully submitted, Lehman Brothers ) Joint First Southwest Company ) Managers Merrill Lynch, Pierce, Fenner & Beane Kuhn, Loeb & Co. Shields & Company B. J. Van Ingen & Co. Inc. Rowles, Winston & Co. Rotan, Mosle & Co. Municipal Securities Company White, Masterson & Co. R. J. Edwards, Inc. Austin, Hart & Parvin Sanders & Company And Associates By: Lehman Brothers By: Signed/ H. J. Szold Partner Authorized Representative 1st Southwest Co. Signed/Winton Jackson V.P. 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: and, City Clerk, City of Austin, Texas Mayor, City of Austin, Texas APPROVED: City Attorney, City of Austin, Texas WHEREAS, the said bid and proposal of Lehman Brothers and First Southwest Company 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 Lehman Brothers and First Southwest Company to purchase $6,750,000.00 City of Austin, Texas, Electric Light and Power, Waterworks and Sewer System Revenue Bonds 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 Lehman Brothers and First Southwest Company 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 Lehman Brothers and First Southwest Company the $6,750,000.00 of City of Austin, Texas, Electric Light and Power, Waterworks and Sewer System Revenue Bonds 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 $1,282.50 according to the terms of said bid hereinbefore set out. The motion, seconded by Councilman White, carried by the following vote: Ауев: Councilmen Long, Palmer, Pearson, White, Mayor Miller Noes: None * * * There being no further business, the Council adjourned at 7:00 P.M., subject to the call of the Mayor. ATTEST: /s/Elsie Woosley City Clerk APPROVED /s/ Tom Miller Mayor 12