=CITY OF AUSTIN, TEXAS MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting January 15, 1976 10:30 Α.Μ. Council Chambers 301 West Second Street The meeting was called to order with Mayor Friedman presiding. Roll Call: Present: Councilmembers Himmelblau, Hofmann, Lebermann, Linn, Mayor Friedman, Mayor Pro Tem Snell Absent: Councilmember Trevino Mayor Friedman announced that this was a Special Called Meeting of the Council for the purpose of opening and receiving bids and passing the ordinance authorizing the issuance of $40,000,000 Electric, Light and Power, Waterworks and Sewer System Revenue Bonds. He stated that the City Council of the City of Austin had advertised that it would receive sealed bids until 10:30a.m., C.S.T., this day for the City of Austin. He inquired about the assembly of the bids and if all bids had been received and whether there were any others either through the mail, from the members of the Council, the City Clerk, the Finance Administrator, or anyone present in the Council Chamber. He announced that it was now 10:30 a.m., and the time for receiving bids was closed. Mr. Norman Barker, Finance Administrator, then opened and read bids on $40,000,000 Electric, Light and Power, Waterworks and Sewer System Revenue Bonds as per attached list. The bids were referred to Mr. Barker and Mr. Curtis Adrian, First Southwest Corporation, for verification. Councilmember Trevino entered the Council Chamber at this time. It was noted that three bids were received. Mr. Barker stated that the bids had been verified both mechanically and through the City's computer. The lowest bid was that of Boston Corporation and Associates at an effective interest rate of 6.2113%. _ CITY OF AUSTIN, TEXAS January 15, 1976 Councilmember Himmelblau moved that the Council award the bid to Boston Corporation and Associates at an effective interest rate of 6.2113%. The motion, seconded by Mayor Pro Tem Snell, carried by the following vote: Ayes: Mayor Friedman, Councilmembers Trevino, Snell, Lebermann, Noes: Himmelblau None Abstain: Councilmembers Hofmann, Linn MINUTES PERTAINING TO PASSAGE AND ADOPTION OF ORDINANCE AUTHORIZING ISSUANCE OF $40,000,000 "CITY OF AUSTIN, TEXAS, ELECTRIC" LIGHT AND POWER, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES NO. 36," DATED FEBRUARY 1, 1976 THE STATE OF TEXAS COUNTY OF TRAVIS CITY OF AUSTIN ON THIS, the 15th day of January, 1976, the City Council of the City of Austin, Texas, convened in regular session at the Council Chambers, Municipal Annex, the meeting being open to the public and notice of said meeting having been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S., with the following members present and in attendance, to wit: JEFFREY M. FRIEDMAN MARGRET HOFMANN DR. EMMA LOU LINN JOHN TREVINO JIMMY SNELL LOWELL H. LEBERMANN BETTY HIMMELBLAU and with the following absent: None MAYOR COUNCIL MEMBER COUNCILPERSON COUNCIL MEMBER MAYOR PRO TEM COUNCIL MEMBER COUNCIL MEMBER constituting a quorum; at which time the following among other business was transacted: The Mayor presented for the City Council's consideration an ordinance authorizing the issuance of $40,000,000 "CITY OF AUSTIN, TEXAS, ELECTRIC LIGHT AND POWER, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES NO. 36," dated February 1, 1976, the caption of said ordinance being as follows: "ORDINANCE NO. 760115-A "AN ORDINANCE by the City Council of the City of Austin, Texas, authorizing the issuance of $40,000,000 'CITY OF AUSTIN, TEXAS, ELECTRIC LIGHT AND POWER, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES NO. 36, dated February 1, 1976, of which the sum 33 34 January 15, 1976 _ CITY OF AUSTIN, TEXAS of $14,830,000 is for the purpose of extending and improving the City's Waterworks System (being the sixth parcel or installment of a total voted authorization of $37,400,000 for Waterworks System purposes); the sum of $4,430,000 is for the purpose of extending and improving the City's Sewer System (being the third and final parcel or installment of a total voted authorization of $10,500,000 for Sewer System purposes); the sum of $9,000,000 is for the purpose of extending and improving the City's Electric Light and Power System (being the first parcel or installment of a total voted authorization of $236,600,000 for Electric Light and Power system purposes); and the sum of $11,740,000 is for the purpose of extending and improving the City's Electric Light and Power System (Participation up to 16% in the South Texas Nuclear Project to be constructed in Matagorda County by City of San Antonio, Houston Lighting and Power and Central Power and Light of Corpus Christi)--(being the second parcel or installment of a total voted authorization of $161,000,000 for Electric Light and Power System purposes), as authorized by the General Laws of the State of Texas, particularly Article llll et seq., V.A.T.C.S.; prescribing the form of the bonds and the form of interest coupons; pledging the net revenues of the City's combined Electric Light and Power, Waterworks and Sewer System to the payment of the principal of and interest on said bonds; enacting provisions incident and relating to the subject and purpose of this ordinance; and declaring an emergency." The ordinance was read and Council Member Himmelblau moved that the rule be suspended which requires that no ordinance shall become effective until the expiration of ten days following the date of its final passage, that such ordinance be finally passed and adopted at this meeting, and that, for the reasons recited therein, said ordinance be passed as an emergency measure for the immediate preservation of the public peace, health, and safety of the citizens of Austin as permitted by the City Charter. The motion was seconded by Council Member Snell and carried by the following vote: AYES: Mayor Friedman and Council Members Trevino, Snell, Lebermann and Himmelblau. ABSTAINED: Council Member Hofmann and Councilperson Linn. NOES: None. The ordinance was read the second time and Council Member Himmelblau moved that the rules be further suspended and that the ordinance be passed as an emergency measure to its third reading. The motion was seconded by Council Member Snell and carried by the following vote: 35 _ CITY OF AUSTIN, TEXAS- January 15, 1976 AYES: Mayor Friedman and Council Members Trevino, Snell, Lebermann and Himmelblau. ABSTAINED: Council Member Hofmann and Councilperson Linn. NOES: None. The ordinance was read the third time and Council Member Himmelblau moved that the ordinance be finally passed as an emergency measure. The motion was seconded by Council Member Snell and carried by the following vote: AYES: Mayor Friedman and Council Members Trevino, Snell, Lebermann and Himmelblau. ABSTAINED: Council Member Hofmann and Councilperson Linn. adopted. NOES: None. The Mayor then announced that the ordinance had been finally passed and Mr. Curtis Adrian, First Southwest Corporation, stated that this was an exceptionally fine sale, and it was the best sale, interest wise, the City of Austin had experienced since June 20, 1974. He noted that there was a void in portfolio throughout the country for the City of Austin bonds. Mr. Adrian concurred with Mr. Barker's recommendation that the City accept the bid of First Boston Corporation and Associates. In response to Mayor Friedman's question, Mr. Adrian commented that Austin is a prime area for investors. This interest rate is the lowest since 1970, being 72 basis points below the Dow Jones average. Mayor Friedman felt that this spoke well of the confidence being placed in the City of Austin and its citizens. Mr. Adrian noted that never in the time he had served Austin, had they had as many inquiries concerning the bonds and felt there was a vast amount of interest in the bonds. Mr. Claud Boothman, Bond Attorney, felt that it was a wonderful sale. Mayor Friedman stated that on behalf of the Council, he wished to thank the bidders that participated in the bond sale and was looking forward to having their bids the next bond sale. EXECUTIVE SESSION Mayor Friedman announced that the Council would go into Executive Session at 5:30 p.m. (: Name of Bidder CITY OF AUSTIN, TEXAS TABULATION OF BIDS RECEIVED ON $40,000,000 ELECTRIC LIGHT AND POWER, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES NO. 36 JANUARY 15, 1976 1. The First Boston Corporation and Associates 2. Weeden & Company, Inc. and Associates 3. Blyth Eastman Dillon & Co. and Associates Nominal Maturity Dates Interest Rate Gross Interest Cost Premium Offered Net Interest Cost Effective Interest Rate April 1, 1981 thru April 1, 1990 7.25% April 1, 1991 7.00% April 1, 1992 6.00% April 1, 1993 6.10% April 1, 1994 thru April 1, 1998 6.25% April 1, 1999 thru April 1, 2001 5.25% $43,353,883,33 $19,243.00 $43,334,640.33 6.2113% April 1, 1981 thru April 1, 1989 7.50% April 1, 1990 5.90% April 1, 1991 6.00% April 1, 1992 6.10% April 1, 1993 6.20% April 1, 1994 6.30% April 1, 1995 6.40% April 1, 1996 thru April 1, 1997 6.50% April 1, 1998 6.00% April 1, 1999 thru April 1, 2001 5.50% $43,453,332.00 April 1, 1990 thru April 1, 1990 7.50% April 1, 1991 6.20% April 1, 1992 6.10% April 1, 1993 6.20% April 1, 1994 6.30% April 1, 1995 6.40% April 1, 1996 6.50% April 1, 1997 6.60% April 1, 1998 thru April 1, 2001 5.50% $43,888,400,00 -م- م $43,453,332.00 6.22838% $43,888,400.00 6.2907 % 36 37 CITY OF AUSTIN, TEXAS January 15, 1976 ADJOURNMENT The Council adjourned at 11:13 a.m. ATTEST: Arau Monise City Clerk APPROVED Mayor