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Minutes 10-22-91MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON, BEACH, FAORIDA, ON TUESDAY, OCTOBER 22, 1991, AT 6:00 P. M. PRESENT Arline Weiner, Mayor Edward Harmening, Vice Mayor Jose Aguila, Commissioner Lynne Matson, Commissioner ABSENT Lillian Artis, Commissioner J. Scott Miller, City Manager Carrie Parker, Asst. City Manager James Cherof, City Attorney Sue Kruse, City Clerk CALL TO ORDER Mayor Weiner called the Special City Commission meeting regarding ~ recreational facilities refunding revenue bonds to order at 6:08 P. M. Michael Hole of Smith Barney was present and discussed the results of the bond issuance. He said when the initial issuance was proposed last May, the City wanted to maximize the present value savings and to borrow an additional $440,000 at the lowest possible fixed interest rate to refurbish the greens on the public golf course. He reported that both these goals have been accomplished. The interest rates range from the 1992 maturity of 4.55% out to the 2003 maturity of 6.25%. That is an overall interest cost average of approximately 6.1%. As far as amor- tizing and locking in a fixed rate, Mr. Hole said these interest rates are what the City will pay for the additional $440,000. He believed the 6.1% is the lowest fixed rate bond cost in recent history of the City. The interest rates today are locking in $127,000 in savings for the City. Because the interest rates are slightly below the market, only half the issues were sold. In order to avoid bumping the interest rates up higher, Smith Barney had reduced their management fee in order to keep the interest rates where they are and still present a $10.63 spread. Mr. Hole announced that there are bonds available for City resi- dents and City employees to participate in. Commissioner Aguila questioned the $127,000 savings. He stated the documents before him indicated the figure to be $123,000. Mr. Hole said the $123,000 figure was quoted before verification this afternoon. 1 MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA OCTOBER 22, 1991 Mark Raymond, Bond Counselor with the law firm of Moyle, Flanigan, Katz Fitzgerald & Sheehan, asked the City Commission to consider the Award Resolution which finalizes the details of the bond issue. He stated the Award Resolution establishes the interest rateS, the maturity amounts, and the redemption provi- sions for the bonds. It also authorizes the Mayor to execute a bond purchase agreement which will obligate the City to go for- ward and issue the bonds and sell them to Smith Barney. In addi- tion, the Award Resolution also authorizes the execution of numerous other documents that are necessary for the bond issue to go forward. Proposed Resolution No. R91-178 Re: Refunding Revenue Bonds Recreational Facilities Attorney Cherof read the title of the Resolution. "A RESOLUTION OF THE CITY COMMISSION OF BOYNTON BEACH, FLORIDA AUTHORIZING THE ISSUANCE OF The CITY'S $4,420,000 AGGREGATE PRINCIPAL AMOUNT RECREATIONAL FACILITIES REFUNDING REVENUE BONDS, SERIES 1991; 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 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 OCTOBER 14, 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 AND AGREEMENTS IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND PROVIDING AN EFFECTIVE DATE." Vice Mayoring Harmening moved to adopt Resolution No. R91-178. Commissioner Matson seconded the motion which carried 4-0. MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA OCTOBER 22, 1991 ADJOURNMENT There being no further business, the meeting properly adjourned at 6:24 P. M. CITY OF BOYNTON BEACH ATTEST: ~Ci~ Clerk Recording Secret~ry (One Tape) Mayor _ Vice Mayg~ Commissioner