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Minutes 01-15-92MINUTES OF SPECIAL CITY COMMISSION MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, ON WEDNESDAY, JANUARY 15, 1992 AT 6:00 P.M. PRESENT Edward Harmening, Vice Mayor Jose Aguila, Commissioner Lillian Artis, Commissioner Lynne Matson, Commissioner ABSENT Arline Weiner, Mayor J. Scott Miller, City Manager James Cherof, City Attorney Sue Kruse, City Clerk Carrie Parker,. Asst. City Manager Grady Swann, Finance Director Vice Mayor Harmening called the meeting to order at 6:05 p.m. to discuss the approval of bond resolutions and to award and sign the bond purchase contract for General Obligation Refunding Bonds, Series 1992. David Levy, Second Vice President, Public Finance Division for S~lth Barney, stated that they were in the market yesterday with the General Obligation Bonds and reported that the sale went well. Smith Barney was in this sale with William R. Hough. Mr. Levy provided a handout for the members of the Commission. He proceeded through the handout page by page explaining the pro- cedures. Mr. Levy explained that goals were set forth with the Commission in late October to provide savings to the City by refunding the General Obligation Bonds, Series 1988, 1985 and 1983. The old bonds were outstanding at rates ranging as high as 8.6% and Smith Barney anticipated the new bonds would be as low as 6.6%. That judgment was made based upon the earlier refunding of the Golf Course Bonds. The intention of the savings would be to defray the debt service millage to the property owners. On November 5th, they were looking at rates ranging from 4.5% to 6.5% which would provide a net value savings of $360,000. However, on December 3rd, savings had fallen and rates were ranging from 4.5% to 6.75% and the savings would have been approximately $280,000. At that time, the Commission set forth the goal of savings at approximately $310,0'00. Smith Barney waited until they felt they could get at least that savings. While in the market with the bonds yesterday, Smith Barney and William R. Hough were able to provide a savings level ranging from 3% to 6.25% which provides a net savings value of $480,000. The future value of this savings is $521,000. The City will take the savings over the next five years at approximately $100,000 per year. The $480,000 savings is after all costs. MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JANUARY 15, 1992 Bonds have been issued in the amount of $10,075,000. The monies will be used to fund an escrow account to fund the old bonds in the amount of approximately $9.9 million. MBIA will be paid $50,000 for bond insurance which will give the bonds an AAA rating in the market. The remainder of the money is the underwriter's discount and cost of issuance. Mr. Levy asked the Commission to approve an award resolution which will award the bonds to Smith Barney and asked that the Mayor sign a bond purchase agreement with Smith Barney guaran- teeing the bonds will be delivered to Smith Barney and Smith Barney will deliver the money. Attorney Cherof read Resolution No. R92-9 by title only: A RESOLUTION OF THE CITY COMMISSION OF BOYNTON BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF THE CITY'S $10,075,000 AGGREGATE PRINCIPAL AMOUNT GENERAL OBLIGATION REFUNDING BONDS, SERIES 1992; SETTING FORTH INTEREST RATES, A MATURITY SCHEDULE AND REDEMPTION PROVISIONS FOR SUCH BONDS; AWARDING THE SALE OF THE BONDS TO SMITH BARNEY, HARRIS UPHAM & CO. INCORPORATED AND WILLIAM R. HOUGH & CO., MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; APPOINTING FIRST UNION NATIONAL BANK OF FLORIDA AS PAYING AGENT AND REGISTRAR FOR THE BONDS; APPROVING THE FORM AND USE OF A PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF A FINAL OFFICIAL STATEMENT; AUTHORIZING THE PURCHASE OF A FINANCIAL GUARANTY INSURANCE POLICY AND MAKING CERTAIN COVENANTS IN CONNECTION THEREWITH; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT, AND APPOINTING FIRST UNION NATIONAL BANK OF FLORIDA AS ESCROW AGENT THEREUNDER; SUPPLEMENTING CERTAIN PROVISIONS OF THE BOND RESOLUTION OF THE CITY ADOPTED DECEMBER 3, 1991; AUTHORIZING AND DIRECTING CERTAIN OFFICIALS OF THE CITY TO TAKE ALL ACTION REQUIRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS; MAKING CERTAIN OTHER COVENANTS A~D AGREEMENTS IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND PROVIDING AN EFFECTIVE DATE. Motion Commissioner Matson moved to approve Resolution R92-9. sioner Aguila seconded the motion. Commis- Finance Director Grady Swann questioned whether or not the Resolution needed a statement with regard to the City equity contribution. He was advised that this area is already addressed in the Resolution. MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JANUARY 15, 1992 A roll call vote was polled by City Clerk Sue Kruse: Commissioner Matson - Aye Vice Mayor Harmening - Aye Commissioner Aguila - Aye Commissioner Artis - Aye The vote was 4-0. ADJOURNMENT There being no further business, Commissioner Aguila moved to adourn the meeting at 6:15 p.m. The motion was seconded by Commissioner Matson which carried 4-0. THE CITY OF BOYNTON BEACH ATTEST: Clerk Secretary (One Tape) Mayor Commissioner Commis s ioner