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Minutes 10-30-86MINUTES OF THE SPECIAL CITY COUNCIL MEETING HELD AT CITY HALL, BOYNTON BEACH, FLORIDA THURSDAY, OCTOBER 30, 1986 AT 5:00 P. M. PRESENT Nick Cassandra, Mayor Peter L. Cheney, City Manager Robert F~errell, Councilman Betty S. Boroni, City Clerk Ezetl Hester, Jr., Councilman James W. Vance, City Attorney Dee Zibelli, Councilwoman Mayor Cassandra called the special meeting to order at 5:04 P. M. Agenda Approval Mr. Cheney requested the addition of discussing the emergency purchase authorization for an air conditioner in the police station, which has suddenly gone out, at a cost of $4,000. Award of Purchase Contract for $11,650,000 Public Service Revenue Bonds - Series 1986 Mr. Vance announced that a proposal by Hough & Company was delivered to the city this afternoon. Mr. David Segal, Prudential Bache, distributed copies of the purchase contract negotiated with Hough & Company and Smith Barney, Harris Upham & Co. He referred to page two and explained the table representing the terms of the bond sale with the bonds structured maturing from 1987 to 2006 with interest rates from 4% to 7-1/8%. He added that the insurance corporation gave an AAA rating. He advised the net interest cost came out a little less than 7%, which is an effective way to fund projects. He explained how the interest rates compared favorably with industry statistics and how the market timing was perfect with the present bond situations. He reviewed the comparables to other Florida issues. Reference was made to the trend of interest rates and it was pointed out how we were down at the bottom with the cost of borrowing very low. Mr. Segal concluded that as the financial advisor, he did participate with Hough.& Company and Smith Barney, Harris Upham & Co. and reviewed the terms of sale and recommends acceptance of the purchase contract. Mr. Vance informed the Council in order to finalize this sale, they will need to execute Resolution No. 86-ZZZ and the purchase contract. Also, there will be a supplemental cleanup resolution. Mayor Cassandra questioned if this included designating the location of the multi-purpose center as part of the bond - 1 - MINUTES - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA OCTOBER 30, 1986 package and Mr. Cheney informed him the area was not fixed and a study will be done first. Mr. Vance read proposed resolution No. 86-ZZZ by title: A SUPPLEMENTAL RESOLUTION PROVIDING FOR THE ISSUANCE OF $11,650,000 AGGREGATE PRINCIPAL AMOUNT OF PUBLIC SERVICE TAX REVENUE BONDS, SERIES 1986, OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZED IN RESOLUTION NO. 86-XXX TO BE ISSUED IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT EXCEEDING $11,650,000; FIXING AND DETERMINING THE PRINCIPAL AMOUNT, INTEREST RATES, MATURITY DATES, REDEMPTION PROVISIONS AND OTHER DETAILS OF SAID BONDS; FINDING THE NECESSITY FOR A NEGOTIATED SALE OF SUCH BONDS; APPROVING AND AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION WITH SUCH BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE CONTRACT TO BE EXECUTED BY AND BETWEEN THE CITY AND THE UNDERWRITERS OF SUCH BONDS AND AWARDING THE SERIES 1986 BONDS; PROVIDING FOR THE APPLICATION OF THE PROCEEDS RECEIVED FROM THE SALE OF SAID BONDS; AUTHORIZING THE PURCHASE OF A BOND INSURANCE POLICY; DESIGNATING THE BOND REGISTRAR FOR SAID BONDS; PROVIDING A COVENANT AS TO COMPLIANCE WITH FEDERAL TAX LAWS; RATIFYING CERTAIN ACTIONS HERETOFORE TAKEN BY THE CITY COUNCIL AND THE FINANCE DIRECTOR; AND PROVIDING AN EFFECTIVE DATE. Councilman Ferrell made a motion to adopt, seconded by Councilman Hester. Motion carried 4-0. Mr. Cheney referred to the work involved in preparation for a bond sale and announced a plaque from the Government Finance Officers Association has been received certifying achievement for excellence in financial reporting for the seventh year in a row. Mayor Cassandra presented this pla- que to Finance Director Grady Swann. Mr. Clark Bennett, Hough & Company, then presented a good faith check to Mr. Swann in the amount of $116,500. Ratify Police Union and Fire Union Contracts Mr. Cheney referred to having copies of the contracts and advised that both contracts have been ratified by the police union and fire union representatives basically in accord with our last discussions. Both contracts provide a 5% adjustment as of today. All other terms are as we discussed. We did add the 2% adjustment from Grade 30 up in - 2 - MINUTES - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA OCTOBER 30, 1986 the Fire Department and the majority below Grade 30 did accept it. There was a last minute discussion yesterday with the police wanting to make a few changes, but that problem has been resolved. He recommends that execution of both contracts be authorized and ratified. Councilman Hester so moved to ratify the police and fire union contracts, seconded by Councilman Ferrell. No discussion. Motion carried 4-0. Mayor Cassandra suggested discussing that the city employees be given another ½% effective October 30 also. Mr. Cheney agreed, but advised that needed to be done by resolution ecausethe employees' pay plan is adopted by resolution e will have that resolution prepared for the next Council eeting. Councilman Hester clarified that everyone will get 5%.  pprove construction of shellrock temporary parking lot djacent to and south of Fire Administration Trailer Mr. Cheney referred to the memo submitted in reference to the temporary parking lot and explained this lot would be for employee parking only to relieve the west parking lot for visitors. Mayor Cassandra referred to the location of this lot and it getting dark earlier and suggested possibly installing some temporary lighting for security purposes. Mr. Cheney agreed to have this looked at. Councilman Ferrell moved to approve this expenditure, seconded by Councilwoman Zibelli. No discussion. Motion carried 4-0. Mr. Cheney told about construction starting last Wednesday. Consider compensation adjustment for City Manager (Requested by Mayor Nick Cassandra) Mayor Cassandra suggested for consideration to offer the city Manager a 5½% pay increase plus a $400 travel allowance and he turns his car into the city, which would basically give a 7.4% monetary increase. Councilwoman Zibelli stated she would like to add to that ipackage having Mr. Cheney attend the Program for Senior IExecutives in State and Local Government~at Harvard University next year. She told about this two week seminar - 3 - MINUTES - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA OCTOBER 30, 1986 at a cost of $5,000. She feels it would be excellent for the city to have the City Manager attend. Mayor Cassandra suggested that this be kept separate. Councilman Ferrell made a motion to accept the pay package recommended by the Mayor, seconded by Councilwoman zibelli. No discussion. Motion carried 4-0. Councilwoman zibelli made a motion that we ask Mr. Cheney if he would like to go to the Senior Executives in State and Local Government Seminar. She feels it would be very bene- ficial for the city. Councilman Hester referred to funds being available and Councilwoman zibelli replied that we do have funds in the city for educational purposes for any of our employees. Councilman Ferrell seconded the motion. Under discussion, Councilman Ferrell stated with the growth we are experiencing, he feels it is a good idea. Mayor Cassandra referred to the dates and Councilwoman Zibelli informed him it is held the last week of June and the first week of July, 1987. Mayor Cassandra stated that he has asked for information and did not receive it; and based upon that, he will not vote for it. Motion carried 3-1 with Mayor Cassandra dissenting. Purchase Authorization for Police Station Air Conditioner Mr. Cheney informed the Council that one of the original air conditioners in the Police Department has gone out and must be replaced. The estimated cost is $4,000. Mayor Cassandra referred to going to central air conditioning and asked about the feasibility of using another air conditioner here and Mr. Cheney informed him we do not have an extra air con- ditioner in the size needed for that building. He added that the maintenance crews checked this unit last year and it has been maintained. Councilman Ferrell made a motion to approve this expen- diture, seconded by Councilwoman Zibelli. Motion carried 4-0. ADJOURNMENT Councilman Ferrell made a motion to adjourn, seconded by Councilwoman zibelli. Motion carried 4-0 and the meeting was properly adjourned at 5:30 P. M. - 4 - MINUTES - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA OCTOBER 30, 1986 CITY OF BOYNTON BEACH, FLORIDA Mayor ATTEST: -' /~ ' City Cler~ ~ Recording SeCretary (One Tape) Vice Mayor ~/~/Councilman Cou~ i'lman ~ i lwo~a n - 5 -