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13 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, OCTOBER 2, 1986 PRESENT: Mayor J. E. Younger Mayor Pro-'I'em Council Members Betty Jane Kissler Karl W. Brown * Bill Coddington Gerald G. Farr * Fred Guerra William C. Nicola City Manager City Secretary City Attorney Assistant City Manager A. C. Gonzalez Janis K. Womack Lamar W. hankins Robert T. herrera Also Present: Bill Newman, Austin Curlee, Mark hendricks, Rick Fisher, Melissa Millecam, R. G. Phillips, Bill McGee and others. Mayor Younger called the meeting to order at 7:00 p.m. Mayor Younger introduced for consideration adoption of an Ordinance on emergency, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AUTHORIZING THE ISSUANCE OF $ CITY OF SAN MARCOS, TEXAS, ELECTRIC UTILITY SYSTEM REVENUE BONDS, SERIES 1986; PROVIDING FOR THE TERMS AND CONDITIONS OF SAID BONDS; AWARDING THE SALE OF SAID BONDS; CONTAINING PROVISIONS NECESSARY AND IN- CIDENTAL THERETO; AND DECLARING AN EMERGENCY. Ms. Kissler moved for adoption of the Ordinance on emergency and Mr. Brown seconded the motion. Bill Newman advised the Council Mayor Younger, Ms. Kissler, Mr. Gonzalez and he had gone to New York to meet with the rating agencies and received a BAAl rating from Moody's Investors Services and an A rating from Standard & Poor's Corporation. He stated the insurance bids were close and that MBIA had been awarded the insurance bid (.65). They waited until Tuesday (September 30, 1986) to enter the market under the new legislation and by Wednesday the market improved and we were able to get a 7.353 interest rate. Bill McGee of Salomon Brothers, Inc. provided the Council with a booklet reg~rding the terms and conditions of the sale. Mr. McGee pointed out in Section 1 the bonds were for $16,355,000, and the gross pro- duction was for $16,080,000, the difference being the fact that some bonds were sold at a discount. He stated Section 2 provides a table between the years of 1979 and 1986 to show the interest rate environ- ment. He stated by law we were unable to enter the market until late August. Section 3 provided a table of comparables, and stated Denison was not comparable and Illinois reflected a state income tax. Mr. Newman advised the Council Salomon Brothers, Rick Fisher and the City's representatives in New York had all done an excellent job, and received excellent financing (7.353) and should be accepted by the City. Rick Fisher read into the record each amendment to the Ordinance as follows: Caption complete the blank with $16,355,000; first paragraph on first page issue $17,100,000; authorize, issue, sell and deliver deletion, then addition as follows $16,355,000 in principal amount of said voted bonds, leaving $745,000 in principal amount thereof to be issued, sold and delivered hereafter; in Section 1. to complete the blank with $16,355,000; in Section 2. on Page 2 to complete the blanks as follows: * Messrs. Coddington and Guerra were not present at this meeting.