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Minutes 05-04-83SPECIAL CITY COUNCIL MEETING HELD AT CITY HALL, BOYNTON BEACH, FLORIDA, WEDNESDAY, MAY 4, 1983 AT 12:00 O'CLOCK NOON PRESENT James R. Warnke, Mayor Carl Zimmerman, Vice Mayor Joe deLong, Councilman Samuel'Lamar Wright, Councilman Peter L. Cheney, City Manager Betty Boroni, City Clerk James W. Vance, City Attorney ABSENT Nick Cassandra, Councilman (Excused) City Attorney Vance announced that the clock on the wall of the Council Chambers would be used as the official clock for the pur- pose of opening bids, etc. Arnold W. Schneider, Vice President, Florida Municipal Securities, 23 West Church Street, Post Office Box 2791, Orlando, Florida 32802, announced that it was 12:00 o'clock, and the time had lapsed for receipt of any more bids on the $1,750,000 General Obligation Bonds. Mr. Schneider informed everyone that he is Financial Advisor for the City. Mayor Warnke called the meeting to order at 12:01 p. M. He introduced the City Attorney, City Clerk, Financial Advisor, City Manager, the Vice Mayor, Councilmen, and Recording Secretary. City Manager Cheney introduced William A. Gray, Esq., Brown, Wood, Ivey, Mitchell & Petty, One World Trade Center, 58th Floor, New York, New York 10048, who is representing our bond counsel as the Legal Advisor for the bonds. ANNOUNCEMENTS Mayor Warnke announced that today is Youth in Government Day, and young ladies and gentlemen were present from three different high schools, who were participating in Youth in Government Day thoughout the City. Mayor Warnke turned the meeting over to Mr. Arnold W. Schneider, Vice President, Florida Municipal Securities Financial Advisor for the City. ' -1- SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 4, 1983 RECEIVING BIDS FOR BOND SALE FOR BEACH FACILITY Mr. Schneider announced that they received ten bids this morning, which he thought was a very favorable turnout for the City. He wished to open the bids and read them into the record in a cur- sory fashion. Then, Mr. Schneider said they will ask the Council to adjourn for approximately 45 minutes while Mr. Gray and he review the bids for financial conformance and for legal confor- mance. Once they have made an evaluation and are sure that the bids are mathematically accurate as presented, they would like Council to reconvene very briefly and make a formal award of the bonds without the necessary Resolutions that Attorney Gray will address at that time to formalize the proceedings. Mr. Schneider read the bids as follows: 1. Northern Trust Bank, New York submitted via their local representative here in Palm Beach a good faith check made payable to the City of Boynton Beach, Florida, which was attached, in the correct amount of $17,500. Northern Trust Bank submitted a bid with coupons ranging from 6% in 1985 on an increasing scale through 8.80% in 2004. They have agreed to pay a purchase price to the City of $1,721,714.25. The bid is for bonds carrying MBIA insurance. Mr. Schneider advised that Northern Trust Bank has quoted their true interest cost as being 8.6793588%. 2. Merrill, Lynch, Pierce, Fenner & Smith. The good faith check in the amount of $17,500 was attached and appeared to be in good order. Merrill Lynch submitted a bid with coupons beginning with 5.50% in 1985 on an increasing scale, topping out at 8.60% in 2004. They agreed to pay a purchase price of $1,728,615. The bid is for MBIA insured bonds, and they quoted a true interest cost to the City of 8.4991%. 3. Richardson Greenshields Securities Inc., in Palm Beach. The required good faith check remitted by Fischer, Johnson, Allen and Burke was attached for $17,500 as required. Richardson Greenshields Securities Inc. submitted a bid on behalf of Fischer, Johnson, Allen and Burke. Their coupons range from 8-1/2% in 1985 all the way out for 2001 and 8-3/4% out in 2004. Mr. Schneider read that they have agreed to pay a purchase price of $1,722,000 euen, and the bid is for MBIA insurance. As they have not quoted a true interest cost, Mr. Schneider said it was one they would have to verify when they adjourn in a few moments. -2- SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 4, 1983 4. Bear Stearns & Co. attached a good faith check made out to the appropriate parties in the appropriate amount. Their bid had interest rates running from 8-1/2% commencing in 1985, a declining coupon that goes down to 8.30% in 1995 and then an increasing scale again out to 8.80% in 2004. Mr. Schneider said they have agreed to pay a purchase price of $1,715,410.35. The bid is for MBIA insured bonds. The true interest cost quoted was 8.911996%. 5. The Leedy Corp., Orlando, Florida. Mr. Schneider advised that the appropriate good faith check was attached per require- ments. They quoted a coupon scale of 7.0% commencing in 1985 increasing out to an 8.90% for the years 1998 and out to the final maturity in 2004. Their purchase price quoted was $1,715,711. It was not for insured bonds, and they had not quoted a TIC (true interest cost), so it was another one Mr. Schneider said the City would have to verify the arithmetic on. 6. William R. Hough & Co. Mr. Schneider announced that an appropriate good faith check was attached. Their scales start at 5.25% in 1985 and increase thereafter out through 8-3/4% to final maturity in 2004. Their quoted purchase price is $1,718,780. The bid is for MBIA insured bonds, and they have quoted a true interest cost of 8.6930%. 7. Southeast Bank, N.A., Miami, Florida, quoted an interest rate scale commencing with 5.50% in 1985 increasing out to an 8.80% in 2004. Their stated purchase price was $1,715,436.60. The bid is for MBIA insurance. As they had not made a computation of the true interest cost, Mr. Schneider said the City would have to verify it. He added that a good faith check was attached. 8. Raymond, James & Associates, Inc. had an interest rate scale starting with 8.50% through 1993 and then dropping to 8.30% and 8.40% for the next two years and then increasing again ~ 8.60% in 2004. Their stated purchase price was $1,715,000 even. The bid was for MBIA insured bonds, and their quoted true interest cost was 8.965135%. A good faith check, made payable to the City Of Boynton Beach, was attached in the appropriate amount. · Prudential-Bache Securities Inc. & Associates. Mr. Schneider ~nformed everyone that Prudential-Bache's good £aith check was attached in the correct amount. They listed that they had other people in their account with them, which Mr. Schneider read for the record, as follows: -3- SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 4, 1983 The Managers are listed as Prudential-Bache; Smith, Barney, Harris, Upham & Co.; Thomson McKinnon Securities Inc.; and Drexel, Burnham, Lambert Inc. The Account Members were listed as Alan Bush Brokerage Co., Inc., Oppenheimer & Co., and Kenney & Branisel Municipals Inc. Mr. Schneider read that their coupons commence at 6% in 1985, increasing out to 8.625% in 2004. The stated purchase price was $1,715,000 even. The bid was for MBIA insured bonds. They quoted a true interest cost to the City of 8.5032%. 10. Paine, Webber, Jackson & Curtis. Mr. Schneider stated that the required good faith check, made payable to the City for $17,500 was attached. He said they had interest rates ranging fr~m 5.50% in 1985, increasing up to 8.60% for the last five maturities. They quoted a purchase price of $1,722,029.50. The bi~ was for MBIA insured bonds, and their true interest cost quoted was 8.517210%. That concluded the reading of the bids the City received on this issue. At this point, Attorney Vance advised that it was appropriate for the Council to adjourn for approximately 45 minutes or until 1:00 o'clock P. M. Councilman deLong moved, seconded by Vice Mayor Zimmerman, to adjourn until 1:00 o'clock this afternoon. Motion carried 4-0. Mr. Schneider informed any bidders that were present that the represen~.~a~b~es of the City were going to go downstairs to the Mayor's office and adjoining conference room, and he was going to get with his people telephonically to get on the computer and verify the true interest costs that have been quoted and compute those that have not been stated. He invited any of the bidders who wished to sit in on these proceedings to do so. THE MEETING ADJOURNED AT 12:15 P. M. The meeting reconvened at 1:00 P. M. It had come to Mayor Warnke's attention that they would need an extra 15 minutes. -4- SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 4, 1983 Councilman deLong moved to extend the recess for another 15 minu- tes and reconvene at 1:15 P. M. on May 4, 1983, seconded by Vice Mayor Zimmerman. Motion carried 4-0. Mayor Warnke reconvened the meeting at 1:15 P. M. At the present time, the financial people were still having some more computa- tions to iron out to report back to the Council. Councilman deLong moved to recess until 1:30 P. M., seconded by Vice Mayor Zimmerman. Motion carried 4-0. Mayor Warnke called the meeting to order again at 1:30 P. M. He informed everyone that the final results are still going through the word processor, and he expected to have them in four or five minutes. Rather than recess again, Mayor Warnke said the meeting was in session and they would wait for the results. The meeting resumed at 1:50 P. M. ADOPTING RESOLUTIONS RELATING TO BEACH BOND SALRS City Attorney Vance read proposed Resolution 83-Y by title only: Resolution No. 83-Y "A RESOLUTION DESCRIBING THE TERMS, FORM AND CERTAIN OTHER PROVISIONS OF $1,750,000 RECREATIONAL AND MUNICIPAL BEACH FACILITIES BONDS OF THE CITY OF BOYNTON BEACH, FLORIDA; PROVIDING FOR THE ISSUANCE AND FIXING CERTAIN DETAILS OF SUCH BONDS; NAMING CERTAIN BANKS TO ACT AS PAYING AGENTS AND BOND REGISTRAR; AND PROVIDING AN EFFECTIVE DATE." Councilman deLong moved the adoption of proposed Resolution No. 83-Y, seconded by Councilman Wright. At the request of Mayor Warnke, a roll call vote was taken by Betty Boroni, City Clerk: Councilman Wright Mayor Warnke Vice Mayor Zimmerman Councilman deLong Aye Aye Aye Aye -5- SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 4, 1983 Motion carried 4-0. Resolution No. 83-Z Before reading the title, City Attorney Vance announced that the bid of Merrill, Lynch, Pierce, Fenner & Smith was the winning bid. The other blanks reflecting the bids of the various parties have been completed and filled in. The actual amount, as shown on the completed Resolutions, is $1,728,615 from Merrill, Lynch. The prime interest rate was 8.4990%. City Attorney Vance read proposed Resolution 82-Z by title only: "A RESOLUTION AWARDING $1,750,000 RECREATIONAL AND MUNCIPAL BEACH FACILITIES BONDS OF THE CITY OF BOYNTON BEACH, FLORIDA; SPECIFYING THE INTEREST RATE OF EACH SUCH BOND AND DIRECTING THE DELIVERY OF SUCH BONDS TO OR UPON THE ORDER OF THE PURCHASER HEREIN NAMED UPON PAYMENT OF THE PURCHASE PRICE HEREIN SET FORTH; APPROVING THE OFFICIAL STATEMENT AND NOTICE OF SALE AND RATIFYING AND APPROVING THE DISTRIBUTION OF SUCH OFFICIAL STATEMENT AND NOTICE OF SALE AND AUTHORIZING EMPLOYEES AND OFFICIALS TO TAKE ACTION AS REQUIRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS." Councilman deLong moved the adoption of proposed Resolution No. 83-Z, seconded by Councilman Wright. Betty Boroni, City Clerk, took a roll call vote on the motion, as requested by Mayor Warnke: Mayor Warnke Vice Mayor Zimmerman Councilman deLong Councilman Wright Motion carried 4-0. Aye Aye Aye Aye ADJOURNMENT There being no further business to come before the meeting, the meeting was properly adjourned at 2:05 p. M. atricia .Ramseyer (One Tape) -6- MINUTES --SP~AL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 4, 1983 CITY OF BOYNTON BEACH Vice Mayor ATTE ST: - 7 -