Travis County Commssioners Court
April 15, 2003
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Item 32
Item 32.
>> [One moment, please, for change in captioners]
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>> We have received the bids on the three issues that you cited, and this year we have taken these bids by electronic bidding. The price -- this is the first time we've done this. It was a wonderful process in that we didn't have to receive 30 phone calls in the last 30 minutes, which we're always concerned about a mistake. With thompson financial in new york, we went on -- it doesn't cost the county a penny. All of the underwriting firms pay for it. They had bids sheets out to them last week after we electronically published a preliminary official statement. Those worksheets are put out on the web to all their subscribers. We've had just as many or more bids than eve ever get enthe other way. And we sat up in christian smith's office in pbo and watched the screen and refreshed the button every 10 seconds. With one minute to go there were no bids on the co's and then everybody in new york hit their button and submitted a bid in the last 60 seconds. It was amazing. And I have handed you a recap sheets, so this is going to be different from what we've done in the past and I will show you here on the road bonds what that is. First of all, me say that this is a copy of the official statement which each of you have probably seen. We did get aaa ratings confirmed by both standard and poor's and moody's on this issue and we had a very good sale and the market has medical well for you. The low bid, the lowest net effect active or net interest cost to you on the 31,000,660 unlimited tax road points was 4.2199. And by looking at the summary sheet you can see the other bidders, rbc dane rocher was less than .7 difference. And you can see there how close all of them are that these people really know where the market is. If you'd like for me to read all of them into the record, I will, otherwise we've submitted a copy to the clerk for the record.
>> move that we approve the bid of paine webber incorporated.
>> second.
>> in the stated amount. Any more discussion? All those in favor, signify by saying aye? That passes by unanimous vote.
>> do you want to say anything?
>> [inaudible - no mic].
>> okay. On t improvement bonds, 4,000,335, the second page i've handed you there, for southwest company, whereas the winning bid at 4.1511. If you notice the second bid from paine webber was at 4.1158. And then on the last one, and then we can pass the resolutions, the last is the 23,000,325 certificates of obligation. Ag edwards and sons, which is the leader of a fairly large syndicate, all of these are, at 4-point -- essentially 4.0. And the second bid was 4.01. From first southwest company. These are excellent bids, and the reason that some that would be lower than others, I wanted to explain for your benefit. And those listening that the difference in the rate, because they all had the same credit rating, is the average maturity. On the road bonds it's a 10.86 year average maturity, so that was the one that was the highest. The co's is 8.33, a much lower maturity, that's why it was four percent. And 415 on the improv ment bonds was on a 9.78 average maturity years, 9.78 years. So with that i'll learn it over to glen.
>> thank you, we have three separate orders of the Commissioners court authorizing the issuance of the bonds, the road bonds, the improvement bonds and the certificates of obligation. Copies of those you vuf. We have marked them to incorporate the names of the winning bidders and the appropriate interest rates as well as to the extent that there was a premium included in any of the bids, that has been put into the documents and designated to go into the interest and where it's required to go. With that i'll be glad to answer any questions on the specific orders otherwise I think we are ready to move on and adopt the orders and approve the bonds.
>> I will abstain with the first southwest company. I have -- [ inaudible ] and I don't want to vote on something where I might be involved.
>> yes, sir, we understand.
>> so I want to make a note to the subject that I will be abstaining from first southwest.
>> move that we approve the order of the bond issuance of $31,666,000 and the language that you -- the lawyers have further provided us to paine webber as we mentioned, for the amount of 4.299 interest.
>> second.
>> execute the documents pertaining there to, can we say?
>> great.
>> that will get it done? All in favor?
>> it passes unanimously. The next motion is the authorizing the issuance of the $4.335 million of permanent improvement bonds to first southwest company in the amount of 4.151, 141 interest. And execute the document for us by legal counsel. Any more discussion? All in favor, snow Commissioner Davis abstaining, the rest of the court voting for the motion. And the final motion today is to authorize approval and authorize issuance of $23,325,000 certificates of obligation to wenting bidder, ag edwards and sons incorporated in the amount of 4.000457 interest.
>> second.
>> and execute the documents prepared for us by legal counsel. Any more discussion? All in favor? That passes by unanimous vote.
>> yeah.
>> thank you very much. I failed to add that we do have the good faith check that covers the each bid in the amount of two percent of the amount of the bonds.
>> thank you for outstanding work.
>> thanks very much.
>> we will need to get your signature on the bid form just real quickly, judge.
Last Modified: Wednesday, April 9, 2003 3:52 PM