Minutes 01/22/1985 - Laserfiche WebLink

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f~ \) TUESDAY JANUARY 22, 1985 Upon recommendation of Acting City Manager Brown, and upon motion (duly seconded and unan- imously carried), Counci] approved for execution by Mayor Cole of a contract between the City and the Henry County Public Service Authority by which the City will operate and maintain the Leatherwood Creek Raw Water Line recently constructed by the Public Service Authority, by which contract or agreement, among other things, the Public Service Author- ity will reimburse the City for all direct costs for said operation and maintenance in the manner and ratio set forth in the contract. In accordance with Council's directive from its meeting held December 18, 1984, Mr. Jack Howe, Senior Vice-President of Wheat, First Securities, Inc., Richmond, Virginia (accom- panied by Mr. Cabell Moore, Senior Vice-President from Wheat's Richmond office, and Mr. A. J. Lester, Ill, Senior Vice-President, from Wheat's Martinsville office) appeared before Council and reported that requests for proposals for the purchase of the City's $1,350,000 General Obligation Water System Bonds were recently presented to local banking institutions for return to Wheat, First Securities (if proposals were offered) no later than January 15, 1985. Mr. Howe further reported that, as a result of these requests, proposals have been received from the following banking institutions, basically as follows: Patrick Henry National Bank 1. Ten-year bonds at 8~% interest rate, with additional first year's interest of $6,750.00 at closing; annual payments of $205,750.00 (p & 1). 2. Fifteen-year bonds at 9% interest rate, with additional first year's interest of $10,125.00 at closing. 3. Twenty-year bonds at 9~% interest rate, with additional first year's interest of $13,500.00 at closing. 4. Twenty-year bonds at interest rate of 65% of prime, with additional first year's interest of $13,500.00 at closing. 5. Twenty-year bonds, with "put option", at interest rate of 8'10' with additional first year's interest of $13,500 at closing. Piedmont Trust Bank-United Virginia Bank-Dominion Bank Twenty-year bonds at initial interest rate of 7.525% and subsequent interest rates at 70% of Piedmont Trust Bank's Prime Rate, with guaranteed minimum rate of 6.50% and guaranteed maximum rate of 11.00%; guaranteed maximum annual payment of $169,600.00 (p & I); fee of $6,000.00.