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<br />4~ <br /> <br />TUESDAY <br /> <br />DECEMBER 18, 1984 <br /> <br />-., <br /> <br />presented by Mr. Howe--that Council is under no immediate pressure to take action <br /> <br />on this matter at this meeting. Mr. Howe, then, indicating that Mr. Groves' re- <br /> <br />quest, under current market conditions, has merit, recommended that (1) Council <br /> <br />agree, as to intention, to solicit proposals from local banks, collectively or in- <br /> <br />dividually, (2) such proposals be presented to Wheat, First Securities on January <br /> <br />15, 1985, (3) Council consider such proposals, with Wheat's analyses of and recom- <br /> <br />mendations on, at a special meeting on January 17, 1985, (4) at said January 17th <br /> <br />meeting, Council adopt an appropriate bond ordinance and, if Council so elects, <br /> <br />accept the best proposal, and (5) the closing date therefor (thirty-day period <br /> <br />being required to assure incontestability of the bonds) be scheduled for February <br /> <br />20, 1985. In response to an inquiry from Councilman Groden, Messrs. Howe and <br /> <br />Edmonds estimated "up-front" savings of several thousand dollars (which would be <br /> <br />expended for advertising, bond rating, bond printing, etc., plus elimination of <br /> <br />on-going fees for a registrar-paying agent, all associated with the previously- <br /> <br />recommended "public offering" approach) should Council accept the revised recom- <br /> <br />mendation that it invite financing proposals from local banking institutions and <br /> <br />accept the best proposal submitted, if so recommended by Wheat, First Securities. <br /> <br />At this point in the meeting, Mr. Irving M. Groves, Jr., President and Chief Exe- <br /> <br />cutive Officer of Piedmont Trust Bank (Martinsville), accompanied by Mr. William <br /> <br />P. Heath, Senior Vice-President of United Virginia Bank (Martinsville branch), in- <br /> <br />formed Council that a consortium of local banks (three on a twenty-year maturity <br /> <br />proposal and four on a twelve-year maturity proposal) verbally presented such <br /> <br />proposals to Wheat, First Securities on Friday, December 14th, perhaps as a result <br /> <br />of the local banks' mis-interpretation of their role, following Council's December <br /> <br />11th discussion of this matter. Mr. Worth H. Carter, Jr., President of Patrick <br /> <br />Henry National Bank, while expressing the personal opinion that the City should <br /> <br />entertain proposals only on a fixed-interest rate basis, and his bank having been <br /> <br />a party to but one of the consortium's maturity proposals, indicated that his bank <br />