HomeMy WebLinkAboutMinutes City Council - 08/15/1973 - SpecialMINUTES
CITY OF CORPUS CHRISTI, TEXAS
SPECIAL COUNCIL MEETING
August 15, 1973
11:00 A.M.
PRESENT:
Mayor Pro Tem James T. Acuff
Commissioners:
Rev. Harold T. Branch
Thomas V. Gonzales
Ricardo Gonzalez
Gabe Lozano, Sr.
City Manager R. Marvin Townsend
City Attorney James R. Riggs
City Secretary T. Ray Kri.ng
Mayor Pro Tem James T. Acuff called the meeting to order and announced
the purpose of the special meeting was for _receiving proposals for the refunding
bonds of $1,500;000 Upper Level College Bond Issue, and for the transaction of
any other business as may properly come before the Council. He asked that i..
be noted that a quorum of the Council and required Charter Officers were present
to conduct a valid meeting. Mayor Luby and Commissioner Stark were absent.
Proposals were opened and read by Director of Finance Harold F. Zick on
the $1,500,000 General Improvement Refunding Bonds, Series 1973, from the follow-
ing firms: First City National Bank of Houston; Underwood Neuhaus & Co., Inc.
Chemical Bank; First National Bank in Dallas (Merril Lynch, Pierce, Fenner &
Smith; Fort Worth National Bank; Paine, Webber, Jackson & Curtis; Texas Commerce
Bank N.A.; E. F. Hutton & Co., Inc.); Rotan Mosle Inc. (First of Texas, Inc.);
Hibbard, O'Connor& Weeks, Inc.; Rauscher Pierce Securities Corp. (First Southwest
Company, Dallas; Russ Securities Corp.); Coen inental Illinois National Bank &
Trust of Chicago; Capital National Bank; Merrill Lynch, Pierce, Fenner & Smith;
Weeden & Co.(Bank of Southwest); White We & Co. (Cullen Center Bank & Trust);
C. C. State. National Bank; Rowles, Winston & Co. (Columbian Securities Corp. of
Texas; McClung & Knickerbocker, Inc.); Republic National Bank. of Dallas (Texas
Bank & Trust Co. of Dallas; Eppler, Guerin & Turner, Inc.); Bache & Co., Inc.;
Harris Trust & Savings Bank, Chicago (The Northern Trust Company; The First
National Bank of Fort Worth; Van Kampen Wauterlek & Brown, Inc.); Goldman, Sachs
& Co.; The First National Bank of Chicago.
The foregoing proposals were referred to the Director of Finance Harold F.
Zick for tabulation and recommendation, and a brief recess was declared for this
purpose.
The meeting was reconvened and Director of Finance Harold F. Zick reported
that the low bid had been received from First City National. Bank of Houston at an
iinutes
Special Council Meeting
August 15, 1973
Page 2
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effective rate of 5.074133%. (Bid Tabulation #55-73 - a copy attached hereto)
Fiscal Advisor M. E. Allison, Director of Finance Harold Zick and City
Manager Townsend recommended that the bids be rejected because the interest rate
was higher than anticipated and that the interest reduction from 5.25% to 5.07%
was not sufficient to offset loss of the immediate call provision now in effect.
Motion by Lozano, seconded by Branch and passed, that all bids be rejected
on the basis that the effective interest rate quoted was higher than anticipated
and would result in insufficient savings in interest cost to the City.
There being no further business to come before the Council, the Special
meeting was adjourned at 12:15 p.m., August, 1973.
CITY OF CORDS C11 1STI, TEXAS
BID TABULATION - $1,500,000 GENERAL IMPROVEMENT REFUNDING BONDS, SERIES 1973
BIDS OPENED: 11:00 A.M., C.S.T., AUGUST 15, 1973
ALL BIDS REJ E CTE D if.1z:4,-0ai_' J).-'%3
(x.:i (1 4'-s czt,s )
Effective Total Less( Net
Interest Interest Cash Interest
Rate Cost Premium Cost
(:,5.074133e $ 558,166.46472$ 12.00 $ 558,154.6667
5.096364% 560,600.03 -0- 560,600.00
- Bidder
First City National Bank of Houston
Underwood Neuhaus & Co., Inc.
Chemical Bank
First National Bank in Dallas
Merrill Lynch, Pierce, Fenner & Smith
Fort Worth National Bank
Paine, Webber, Jackson & Curtis
Texas Commerce Bank N.A.
E. F. Hutton & Co., Inc.
Rotan Mosle Inc.
First of Texas, Inc.
Hibbard, O'Connor & Weeks, Inc.
Rauscher Pierce Securities Corp.
First Southwest Company, Callas
Russ Securities Corp.
Continental Illinois National Bank
& Trust of Chicago
Capital National Bank
Merrill Lynch, Pierce, Fenner & Smith
Weeden & Co.
Bank of Southwest
White Weld & Co.
Cullen Center Bank & Trust
C. C. State National Bank
Rowles, Winston & Co.
Columbian Securities Corp. of Texas
McClung & Knickerbocker, Inc.
Republic National Bank of Dallas
Texas Bank & Trust Co. of Dallas
Eppler, Guerin & Turner, Inc.
5.11396% 562,556.78
45.78 562,511.00
5.115593% 562,689.75 -0- 562,689.75
5.117575% 565,183.35 2,250.00 562,933.35
5.118164% 562,972.50 -0- 562,972.50
5.12261 563,597.32 110.00 563,487.32
5.1337 564,716.68 -0- 564,716.68
5.13688% 565,316.69 259.00 565,057.69
5.1385% 565,333.33 98.00 565,235.33
5.139987% 565,589.90 217.00 565,372.90
5.14973% 566,474,25 30.00 566,444.25
5.15407% 566,922.85 -0- 566,922.85
5.1572% 567,539.50 270.00 567,269.50
Bidder
Bache & Co., Inc.
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Effective Total Less Net
Interest Interest Cash Interest
Rate Cost Premium Cost
5.1648% $ 568,133.34 $ 3.35 $ 568,129.99
Harris Trust & Savings Bank, Chicago 5.18791 570,975.00 311.00 570,664.00
The Northern Trust Company
The First Nat'l Bank of R rt Worth
Van Kampen Wauterlek & Brown, Inc.
Goldman, Sachs & Co. 5.1891% 570,800.00 -0- 570,800.00
The First National Bank of Chicago 5.318418 585,149.97 124.00 585,025.97