HomeMy WebLinkAbout06/14/1988June 14, 1988
The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council
Chambers, Waterloo, Iowa, at 11:00 a.m. on June 14, 1988. Mayor Pro Tem Robert J. Brown
in the Chair. Roll Call: Dell, Fox, Angel, Wright, Budak and Brown. Absent: Buck.
92293 - Moved by Wright, seconded by Angel
that copies of the call of the Special Session of June 14, 1988, at 11:00 a.m.
be received and placed on file. Motion carried.
92294 - This being the time and place fixed in the published notice for the
consideration of proposals for the purpose of the $5,700,000 Corporate Purpose
General Obligation Bonds, the Council proceeded accordingly. The Mayor Pro Tem
announced that the time had arrived for the receipt of bids for said bonds.
Moved by Angel, seconded by Fox
that the following sealed bids be received, placed on file, but NOT OPENED and
sealed bidding closed:
Name of Bidder
1. The Northern Trust Company, Chicago, Illinois
2. Clayton Brown & Associates, Inc., Chicago, Illinois
3. Chiles Heider/Division Shearson Lehman Hutton, Inc., Chicago, Illinois
4. The First National Bank of Chicago, Chicago, Illinois
5. Harris Trust and Savings Bank, Chicago, Illinois
Motion carried.
92295 - Moved by Dell, seconded by Wright
that proof of publication of notice of meeting for the issuance of $5,700,000
Corporate Purpose General Obligation Bonds as published in the Waterloo Courier
on June 3, 1988, be received and placed on file. Motion carried.
92296 - Moved by Fox, seconded by Budak
that Clerk/Auditor be instructed to open all sealed bids which were as follows:
Name of Bidder
1. The Northern Trust Company
2. Clayton Brown & Associates, Inc.
3. Chiles Heider/Division Shearson
Lehman Hutton, Inc.
4. The First National Bank of Chicago
5. Harris Trust and Savings Bank
Motion carried.
Net Interest
7.381%
7.28006%
7.353941%
7.51295%
7.28009%
June 14, 1988 Page 2
92297 - Derek Engelen, representing Speer Financial, Inc. of Chicago, stated that the
bids in 1987 compared to the bids today were 7.63 percent. Engelen stated that
according to Moody's and their analysis, the reason for the extremely
competitive, low bids were several: The fact that the Mayor and City of
Waterloo retained Moody's rating this year of a Baa, the modest improvements in
the proposed end -of -the year cash balances, the fact that City officials met
with insurance companies while on their trip to New York and were able to
obtain insurabilities for the bonds, the economic upswing of the community with
increased employment for several major companies in the area, and also that the
City is looking at putting to the voters a proposed 1 percent sales tax.
Engelen continued that the proposal for the 1 percent sales tax does indicate
to Moody's that the City is actively pursuing alternative funding and trying to
alleviate some of the burden that the property tax payer must bear in the
future.
Engelen stated that all the bids are good bids, and he would recommend that the
City of Waterloo accept the low bid from Clayton Brown & Associates, Inc. at an
average interest rate for the $5.7 million of General Obligation Bonds of
7.28006 percent.
Moved by Wright, seconded by Angel
that "Resolution authorizing sale and award of $5,700,000 Corporate Purpose
General Obligation Bonds and approving and authorizing the agreement of such
sale and award to Clayton Brown & Associates, Inc.", be adopted. Ayes: Six.
Absent: Buck.
Resolution adopted and upon approval by Mayor assigned No. 1988-321.
92298 - Moved by Angel, seconded by Budak
that the Clerk be instructed to return the unsuccessful bids and checks.
Motion carried.
92299 - Moved by Dell, seconded by Wright
that the Council adjourn. Motion carried.
Larry P. Burger
City Clerk/Auditor