Min 06/05/1963 5il
Wichita Falls, Texas
Memorial Auditorium Bldg.
June 5, 1963
The Board of Aldermen of the City of Wichita Falls, Texas, met In a called session
on the above date, in the Council Room of the Memorial Auditorium at 9:00 o'clock A.M., with
the following members present:
John J. Gavin Mayor
J. Winston Wallander
Dr. D. Clifford Burross
0. D. McBride Aldermen
Roy V. (Pete) Claytor
Don Wade
L. Jack Davis City Manager
H. P. Hodge, Jr. City Attorney
W. B. Hicks City Clerk
Dr. Al T. Witcher Absent
Mayor Gavin expressed his appreciation to the citizens of Wichita Falls for their
vote of confidence in the administration in providing for the Improvements to be done In the
city following the Capital Improvements Bond Election.
In an unofficial canvass of the elections Mayor Gavin read the totals of the vote
on each of the nine propositions which were voted on. The total number of votes cast In the
election was 7,969.
A discussion was held concerning the awarding of contracts to the architects and
engineers for the city improvements. It was decided to postpone the awarding of contracts
for the police, fire, and library facilities.
V
Moved by Alderman Wade that the firm of Biggs and Matthews be awarded the contract
for the reconstruction of Harding Street from Rosewood to Thompson Road, including the bridge
over Holliday Creek at an estimated cost of $150,000.00 and that the firm of Carter and
Burgess be awarded the contract for extension of Kell Boulevard from Holliday to Galveston
and from Kemp to Fairway at an estimated cost of $473,800.00, and that Forrest & Cotton of
Dallas be awarded the engineering contract for a master drainage study.
Motion seconded by Alderman McBride and carried unanimously.
Moved by Alderman Burross that the firm of Pardue, Read, and Dice be awarded the
contract for the Memorial Auditorium Improvements.
Motion seconded by Alderman Claytor and carried unanimously.
Moved by Alderman Wade that the firm of Ernest Lee be awarded the contract for
extension of sanitary sewer lines Into Wichita Gardens, Rancho Vista, Seymour Heights, and
adjacent areas. Also that Biggs and Matthews be awarded the contract for the water improve-
ments program authorized bv the special bond election held June 4, 1963.
Motion seconded by Alderman Burross and carried unanimously.
Mr. Frank Medanicht Vice President of the First Southwest Company in Dallas, was
recognized and took the floor to explain to the Council the details of the Financial Advis-
ory Contract between the City of Wichita Falls and the First Southwest Company to handle
Issuance of General Obligation Bonds and Revenue Bonds voted in the special election of
June 4, 1963. In his explanation Mr. Medanich brought out that the First Southwest Company
would also at such time as it should be decided to order a bond election, pay for all print-
ing, election supplies, and legal costs of said election. This would Include all costs
except local expenses of the election.
On the revenue bonds, the minimum fee of $4.15 per $1000.00 par amount of bonds
Issued would be charged. On the general obligation bonds the minimum fee of $3.36 per
$1000.00 bonds issued would be charged. The revenue bonds are a minimum of 25% higher
because of legal and printing expenses.
Mayor Gavin asked Mr. Medanich to verify the fact that the First Southwest Company
had not been asked to include any expenses Incurred by the Council during the elections as
had been suggested by various Individuals from time to time. Mr. Medanich said that they
had not been approached by the Council In this matter at any time.
Moved by Alderman McBride that the City Manager be authorized to enter into the
contract with the First Southwest Company according to the schedule which was presented.
14otion seconded by Alderman Claytor and carried unanimously.
Mr. Medanich recommended that the Initial series of revenue bonds of $5,585,000.00
have a 25 year maturity schedule, and that the bonds be Issued on an annual maturity basis
of $220,000.00. The semi-annual maturity payments would be $110,000.00, due in February and
August. It was suggested that the revenue bonds have a 15-year redemption clause, and that
the interest rate would be less on semi-annual payments because of a shorter average life.
The General Obligation Bonds would include no option because there are so many
outstanding bonds now.
Mayor Gavin asked Mr. Medanich what the financial status of the City of Wichita
Falls is at present, and Mr. Medanich replied that It was excellent. He stated that the
indebtedness ratio Is lk, per centp much less than any other city of comparable size in Texas.
He stated that the normal ratio Is 5-67..
Mr. Medanich stated that in the general Obligation Bonds the city owned In the
interest and sinking fund $100,000.00 of our own bonds in the 1955 series. The A per cent
bonds mature $50,000.00 each year, the maturity date being February 1, 1972 and August 10
1972, and that we have a cost of par in these bonds.
It was suggested by Mr. Medanich that these bonds be sold and the proceeds rein-
vested in U. S. Treasury Bonds at A per cent to December 15, 1972. This would result in a
net gain to the City of $9,600.00 for Interest and sinking fund.
Mayor Gavin, with the concurrence of the Council, instructed Mr. Jack Davis, City
Manager, to execute the transfer and sale of the $100,000.00 worth of bonds owned by the
City to First Southwest Company, and to re-invest the money in U. S. Treasury bonds.
Mr. Medanich suggested August 1 as the sale date of the bonds, voted In Special
Election held June 4, 1963, and that the City would need to publish a notice of sale about
three weeks ahead of that time. Also the City would need to determine how to pay for these
bonds, and he suggested that a New York paying agent be established because many of these
bonds would be marketed in the East, and that a co-paying agent in this city would also need
to be established.
The Council decided to meet on June 10, 1963, in order to officially canvass the
election of June 4P 1963.
Moved by Alderman Claytor that the meeting be adjourned.
Motion seconded by Alderman Wade and carried unanimously.
The Board of Aldermen then adjourned at 9:42 A. M.
APPROVED this the 24th —day of June 1961.
C.
MAyor
ATTEST:
City Clerk