HomeMy Public PortalAbout1987_11_10SPECII op J /
MINUTES OF SPECIAL MEETING OF LEESBURG TOWN COUNCIL, NOVEMBER 10, 1987.
A special meeting of the Leesburg Town Council was held in the Council Cham
bers, 10 Loudoun Street, S.W. , Leesburg, Virginia on November 10, 1987 at 11:00 A.M. ,
pursuant to Notice thereof having been sent to all members of Council prior thereto.
Present were: Mayor Robert E. Sevila, Councilmembers Arl Curry, Brian T. Kelley,
Hunter M. Leach and John W. Tolbert , Jr. ; also Town Manager Jeffrey H. Minor, Di-
rector of Finance Paul E. York and Deputy Town Attorney Deborah C. Welsh. Absent
were Councilmembers James E. Clem and Charles J. Williams.
The meeting was called to order by the Mayor, who explained that the purpose
of this meeting is to award the sale of $5,000,000 general obligation bonds.
irector of Finance Paul York announced that eleven bids have been received
as follows:
Name of Bidder Amount
Harris Bank, Chicago, Illinois $4,950,205 at a true interest cost of 7. 1392
Dominion Bank, Richmond $4,990,000, with an interest cost of 7.69358
Craigie, Incorporated, Richmond $4,953,572.50, with an interest rate of
7.0417721
North Carolina National Bank $4,950,000, with an interest cost of 7. 28382
Northern Trust Co. , Chicago $4,951 ,787.50, with an interest rate of
7.084227
Sovran Bank $4,950,000, with an interest rate of 6.98892092
Merrill Lynch $4,950,037.50, with an interest rate of 7. 1804
Blunt , Ellis & Loewi, Chicago $4,950,000, at a rate of 7.3584
City Corp $4,950,000, at a rate of 7.4434
I Manufacturers Hanover . $4,950,227.50, at a rate of 7. 301248
I
Chemical Bank $4,959,110, at 7. 1748
The apparent low bidder is Sovran Bank, at a rate of 6. 98892092. They bid that at
a discount of $50,000.
Mayor Sevila called a short recess until Scott and Stringfellow calls back.
The meeting was called back to order by Mayor Sevila.
Director of Finance Paul York announced that all bids have been tabulated
and it is concluded that the bid of Sovran Bank is the low bid. Scott and String-
fellow recommend that we accept that low bid, as far as true interest cost is
concerned.
On motion of Mr. Tolbert, seconded by Mr. Leach, the following resolution
was proposed and unanimously adopted after discussion:
87-241 - RESOLUTION - AWARDING THE TOWN OF LEESBURG, VIRGINIA $5,000,000 GENERAL
OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 1987.
WHEREAS, the Council of the Town of Leesburg, Virginia adopted an ordinance
on October 14, 1987, authorizing the issuance and sale of the town' s
$5,000,000 General Obligation Public Improvement Bonds, Series 1987; and
WHEREAS, a Preliminary Official Statement and Notice of Sale with re-
spect to the bonds have been prepared and distributed pursuant to the
ordinance; and
WHEREAS, bids have been received for the purchase of the bonds and the
Council proposes to award the bonds to the bidder whose proposal re-
sults in the lowest true interest cost to the town:
1
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MINUTES OF NOVEMBER 10, 1987 SPECIAL MEETING.
THEREFORE, RESOLVED by the Council for the Town of Leesburg in Virginia
as follows:
SECTION I. Acceptance of Bid. The Council determines that it is in
the best interest of the town to accept the bid of Sovran Bank and Asso-
ciates, to purchase the bonds at the price and interest rates set forth
therein and such bid is hereby accepted.
SECTION II. Interest Rates. The bonds of each maturity shall bear in-
terest at the rates set forth on the attached bid:
Year of Principal Interest Year of Principal Interest
Maturity Amount Rate Maturity Amount Rate
1988 $ % 1998 $
1989 See attached bid 1999 See attached' bid
1990 2000
1991 2001
1992 2002
1993 2003
1994 2004
1995 2005
1996 2006
1997 2007
SECTION III. Filing of Resolution. The appropriate officers and agents
of the town are authorized and directed to file a certified copy of this
resolution with the Circuit Court of the County of Loudoun, Virginia pur-
suant to Sec. 15.1-199 of the 1950 Code of Virginia, as amended, and to
take such further action as they deem necessary regarding the issuance and
sale of the bonds and all such actions previously taken by such officers
and agents are ratified and confirmed.
SECTION IV. Effective Date. This resolution shall be in effect upon
its passage.
Mayor Sevila stated that the bid of Sovran Bank is the low bid and the true inter-
est is 6.98892092. The actual schedule breakdown will be set forth on a bid to
be forwarded to Council by bond counsel. Our advisor indicates that these are
very competitive interest bids. This is, in part, due to the fact that we have
received a very good bond rating by both agencies in New York. The resolution
was unanimously adopted by a unanimous roll call vote:
Aye: Councilmembers Curry, Kelley, Leach, Tolbert and Mayor Sevila.
Nay: None.
On motion of Mr. Tolbert, seconded by Mr. Kelley, the meeting was adjourned
at 11:45 a.m.
/ Mayor
Clerk of .uncil