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<br />~o
<br />
<br />TUESDAY, MARCH 10, 1987
<br />
<br />In response to Council's recent authorization that proposals be requested for the
<br />
<br />purchase of the outstanding balance of the City's General Obligation Water System
<br />
<br />Bonds, being $1,160,264.14 from the 1985 issue, which purchased bonds will be
<br />
<br />identified as "City of Martinsville, Virginia $1,160,264.14 General Obligation Water
<br />
<br />System Refunding Bonds, Series 1987", City Manager Brown presented the following
<br />
<br />proposals received:
<br />
<br />Name of Bidder
<br />Scott & 8tringfellow*
<br />Piedmont Trust Bank
<br />United Virginia Bank**
<br />Dominion Bank
<br />.
<br />
<br />Principal
<br />$1,160,264.14
<br />1,160,264.14
<br />1,160,264.14
<br />1,160,264.14
<br />
<br />Average
<br />Rate
<br />5.048%
<br />5 . 687 %
<br />5.365%
<br />5.654%
<br />
<br />Total
<br />" Interest
<br />$276,943.39
<br />315,381. 62
<br />295,891.23
<br />314,209.00
<br />
<br />Total Debt
<br />Service
<br />$1,437,207.53
<br />1,475,645.76
<br />1,456,155.37
<br />1,474,473.14
<br />.
<br />
<br />NOTES:
<br />
<br />* Scott & Stringfellow's bid provides that bonds that mature on or after
<br />March 1, 1991, are subject to redemption at the option of the City on or
<br />after March 1, 1990, at par plus accrued interest.
<br />
<br />All other bidders were given an opportunity to reflect this provision in
<br />their bids. Dominion and Piedmont banks made minor changes which are
<br />reflected above.
<br />
<br />** United Virginia Bank
<br />1. Closing Charge = $23,205.28.
<br />2. Out-of-Pocket Expenses = $2,000.00
<br />3. Registration Fee of $350.00 per year (2-8 years).
<br />
<br />Present and representing United Virginia Bank were Mr. John C. Stevenson, Assistant
<br />
<br />Vice President, Richmond headquarters, and Mr. William P. Heath, Jr., President of
<br />
<br />the Martinsville branch; and, present and representing Piedmont Trust Bank,
<br />
<br />Martinsville, Virginia, was Mr. David A. Chaffins, its Investment Officer. In the
<br />
<br />ensuing discussion of these proposals, representatives of the banking institutions
<br />
<br />(hereinabove named) indicated that the low bid submitted by Scott & Stringfellow was
<br />
<br />an excellent bid from the City's standpoint, whereas City Manager Brown informed
<br />
<br />Council that said low bid would reflect debt service savings of some $208,000.00 in
<br />
<br />refinancing the 1985 issue. Upon recommendation of the City's financial consultant
<br />
<br />(Mr. Cabell Moore, of Wheat First Securities) and the City Administration, Council
<br />
<br />unanimously accepted the proposal or bid submitted by Scott & Stringfellow, upon
<br />
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