09/24/1973 Adjourned Meeting58
MINUTES OF THE ADJOURNED MEETING
OF THE CITY COUNCIL OF THE CITY
OF DES PLAINES, HELD IN THE COUNCIL
CHAMBERS, CITY HALL, MONDAY,
September 24, 1973
CALL TO ORDER: The adjourned meeting of the City Council of the City of
Des Plaines was called to order at 8 P.M. by Mayor Herbert
H. Behrel.
ROLL CALL:
BIDS -
$2,000,000
Municipal
Building
Bonds
OPEN BIDS
BIDS
Roll Call indicated the following aldermen present:
Koplos, Szabo, Kehe, Olen, Bolek, Chase, Kisslinger, Hinde,
Erbach, Swanson, Sarlo, Meyer, Abrams.
Absent were Birchfield, Seitz, and Ward.
Mayor Behrel announced that the purpose of the adjourned
meeting was to review bids and award the sale of $2,000,000
Municipal Building Bonds. He reviewed the steps followed
by the City to sell the bonds in the open market as follows:
1. Notices of sale were published in the nationwide edition
of The Bond Buyer and in the Midwest edition of The Wall
Street Journal.
2. Our Financial Consul.tants,.Benjamin and Lang, advise
that 581 copies of the Official Statement describing this
bond issue were mailed to investment bankers, dealer banks,
and investors known to be interested in this type of bonds.
3. Application was made to Moody's Investors Service in
New York City for the assignment of a rating for the bond
Issue. Moody's has assigned the issue a rating of A-1.
This is two steps higher than'our previous rating.
Mayor Behrel then asked if everyone who is going to do so
has submitted a bid.
There being no further sealed bids, it
seconded by Sarlo, that the bidding be
call, the vote was:
AYES: - 14 - Koplos, Szabo, Kehe, Olen
Kisslinger, Hinde, Erbach
Meyer, Abrams.
NAYS: 0 - None
ABSENT: 3 - Birchfield, Seitz, Ward
Motion declared carried.
was moved.by Koplos,
closed. Upon roll
, Bolek, Chase,
, Swanson, Sarlo,
Moved by Koplos, seconded by Szabo, that the sealed bids on
the table be opened and read. Upon roll call, the vote was
AYES: - 14 - Koplos, Szabo, Kehe, Olen, Bolek, Chase,
Kisslinger, Hinde, Erbach, Swanson, Sarlo,
Meyer, Abrams.
NAYS:, 0 - None
ABSENT: 3 - Birchfield, Seitz, Ward
Motion declared carried.
The following bids were received:
Continental National Bank, and Trust Company of Chicago, Mgr.
Kidder, Peabody & Company, Inc.
White, Weld & Co., Inc.
The Chicago Corporation
Clark, Dodge & Co., Inc.
1976 through 1982 5.60%
1983 '4'_' "` 4.80%
1984 4.70%
1985 4.70%
1986 4.75%
1987 4.80%
1988 4.875%
1989 4.90%
1990 5.00%
Gross dollar interest cost:
$1,286,659.37
Less Premium 245.00
Net dollar interest cost:
1,286,414.37
Net interest cost: 4.93351%
BIDS
Continued
Page two
La Salle National Bank
Paine, Webber, Jackson, & Curtis, Chicago
Marine National Exchange Bank, Milwaukee
1976 through 1981
1982
1983 through 1985
1986
1987 and 1988
1989 & 1990
Gross dollar interes
Less premium
Net dollar interest
Net interest cost
t
cost
5.75%
4.90%
4.75%
4.80%
4.90%
5.00%
cost $ 1,298,300.02
108.25
1,298,191.77
4.978684%
Northern Trust Company
Hutchinson, Shockey, Erley & Co.
Dain, Kalman & Quail, Inc.
Becker, & Cownie, Inc.
Howe, Barnes & Johnson, Inc.
1976 through 1980 5.60%
1981 5.30%
1982 through 1983 4.60%
1984 through 1985 4.70%
1986 4.75%
1987 through 1988 4.90%
1989 through 1990 5.00%
Gross dollar interest cost $ 1,292,506.25
Less premium 120.00
Net dollar interest cost 1,292,386.25
Net interest cost 4.95641%
Harris Trust and Savings Bank
Merrill Lynch, Pierce, Fenner & Smith Inc.
Hornblower & Weeks -Hemphill, Noyes, Inc.
William Blair & Company
The White -Phillips Company, Inc.
1976 through 1981
1982
1983
1984
1985 through 1986
1987 through 1990
Gross dollar interest cost
Less premium
Net dollar interest cost
Net interest cost
5.70%
5.25%
4.70%
4.75%
4.80%
4.90%
$ 1,286,550.00
29.00
1,286,521.00
4.933925
The First National Bank of Chicago,
Bacon, Whipple & Co.
Blunt Ellis & Simmons
McMaster Hutchinson & Co.
First National Bank of Des Plaines
1976 through 1982 5.50%
1983 5.25%
1984 4.70%
1985 4.75%
1986 4.80%
1987 4.875%
1988 4.90%
1989 through 1990 5.00%
Gross dollar interest cost
Lee premium
Net dollar interest cost
Net intiirest cost
9/24/73
59
Account Manager
$ 1,298,453.14
87.25
1,298,365.89
4.979351
BIDS
Continued
1
111 ACCEPT BID
1
Page three
Halsey, Stuart & Co. I
Van Kampen, Wauterlek
1976 through 1981
1982
1983
1984 through 1985
1986
1987 through 1988
1989 through 1990
Gross dollar interest
Less Premium
Net dollar interest
Net interest cost
nc.
& Brown,
5.60%
5.10%-
4.60%
4.70%
4.75%
4.90%
5.00%
cost
cost
Inc.
$ 1,295,656.25
None
1,295,656.25
4.9689%
9/24/73
60
John Nuveen & Co., Incorporated (Manager.)
Shearson, Hammil & Co., Inc. duPont Walston Inc.
Channer Newman Securities Co., Mullaney, Wells & Co.
1976 through 1984 5.375%
1985 5.00%
1986 4.80%
1987 through 1989 4.90%
1990 5.00%
Gross dollar interest cost $ 1,296,831.21
Less premium None
Net dollar interest cost 1,296,831.21
Net interest cost 4.9735%
Mr. Edward Benjamin. o.f..Ben.jamin & Lang was excused from
the meeting to verify and tabulate the bids.
Alderman Birchfield and Alderman Seitz arrived during the
opening and reading of bids.
Moved by Szabo, seconded by Kehe, that the proposal of
Continental National Bank. and Trust Company of Chicago and
Associates for the following interest rates be accepted
and that the Mayor and City Clerk be authorized and
directed to sign the proposal of the successful bidders.
Amount Maturity Coupon
$25,000
25,000
50,000
50,000
50,000
50,000
50,000
1976 @ 5.60%
1977 @ 5.60%
1978 @ 5.60%.
1979 @ 5.60@
1980 @ 5.60%
1981 @ 5.60%
1982 @ 5.60%.
Amount Maturity Coupon
$ 50,000 1983 @ 4.80%
50,000 1984 @ 4.70%
50,000 1985 @ 4.70%
50,000 1986 @ 4.75%
350,000 1987 @ 4.80@
350,000 1988 @ 4.875%
400,000 1989 @ 4.90%
400,000 1990 @ 5.00%
Gross dollar interest cost $1,286,659.37
Less premium 245.00
Net dollar interest. cost 1,286,414.37
Net interest cost 4.93351%
Upon roll call, the vote was:
AYES: - 16 - Koplos, Szabo, Kehe
Kisslinger, Hinde,
Sarlo, Meyer, Seitz
NAYS: 0 - None
ABSENT: 1 - Ward
Motion declared carried.
, Olen, Bolek, Chase,
Birchfield, Erbach., Swanson,
, Abrams, Mayor
RETURN CHECKS Moved by Koplos, seconded by Meyer, that the good faith checkE
of the unsuccessful bidders be returned to them with our
thanks. Upon roll. call, the vote was:
AYES: - 16 - Koplos, Szabo, Kehe, Olen, Bolek, Chase,
Kisslinger, Hinde, Birchfield., Erbabh, Swanson,
Sarlo, Meyer, Seitz, Abrams, Mayor
NAYS: 0 - None
ABSENT: 1 - Ward
Motion declared carried.
1WL
1
1
1
9/24/73
Page four
61
ORDINANCE Moved by Szabo, seconded by Kehe, that the rules of
M-40-73 procedure be suspended by waiving first reading of Ordinance
M-40-73, entitled AN ORDINANCE PROVIDING. FOR BORROWING
MONEY AND ISSUING BONDS OF THE CITY OF DES PLAINES, COOK
COUNTY, ILL'INOIS, TO THE AMOUNT OF $2,000,000 FOR THE
PURPOSE OF PAYING THE COST OF CONSTRUCTING A MUNICIPAL
FB'UILDING IN AND FOR SAID CITY AND PROVIDING FOR THE LEVY
AND COLLECTION OF A DIRECT ANNUAL TAX FOR THE PAYMENT OF
THE PRINCIPAL OF AND INTEREST ON SAID BONDS.
Upon roll call, the vote was:
AYES: - 16 - Koplos, Szabo, Kehe, Olen, Bolek, Chase,
Kisslinger, Hinde, Birchfield, Erbach, Swanson,
Sarlo, Meyer, Seitz, Abram s, Mayor
NAYS: 0 - None
ABSENT: 1 - Ward
Motion declared carried.
Moved by Szabo, seconded by Koplos, that Ordinance M-40-73
be adopted. Upon roll call, the vote was:
AYES: - 16 - Koplos, Szabo, Kehe, Olen, Bolek, Chase,
Kisslinger, Hinde, Birchfield, Erbach, Swanson,
Sarlo, Meyer, Seitz, Abrams, Mayor
NAYS: 0 - None
ABSENT: 1 - Ward
Motion declared carried.
ADJOURNMENT: Moved by Kehe, seconded by Swanson, that the adjourned
meeting of the City Council adjourn. Motion dec ;•red
carried.
APPROVED BY ME THIS
DAY OF (� /,, �L , A�,D. , 1973
40,
HERBERT H. BEHREL, MAYOR
Bertha Eleanor Roh. back, City" Clerk