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Minutes 05-09-84MINUTES OF THE SPECIAL CITY COUNCIL MEETING HELD AT CITY HALL, BOYNTON BEACH, FLORIDA, MAY 9, 1984 PRESENT Carl Zimmerman, Mayor Peter L. Cheney, City Manager Robert Ferrell, Vice Mayor Betty S. Boroni, City Clerk Nick Cassandra, Councilman James W. Vance, City Attorney Samuel L. Wright, Councilman Mayor Zimmerman called the Special City Council meeting to t.~ order at 12:27 P. M. Proposed Resolution No. 84-00 - Re: Amending Resolution No. 84-E - Water and Sewer Utility Revenue Bonds Mr. Vance read proposed Resolution No. 84-00 by title: A RESOLUTION AMENDING RESOLUTION NO. 84-E ADOPTED BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA, ON JANUARY 3, 1984, ENTITLED "A RESOLUTION AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $50,000,000 WATER AND SEWER UTILITY REVENUE BONDS OF THE CITY OF BOYNTON BEACH, FLORIDA, FOR THE PURPOSE OF PROVIDING FUNDS, TOGETHER WITH ANY OTHER AVAILABLE FUNDS, FOR PAYING THE COST OF PAYING AT THEIR RESPECTIVE MATURITIES OR REDEEMING THE OUTSTANDING SIX SERIES OF WATER AND SEWER REVENUE BONDS OF THE CITY ISSUED PURSUANT TO RESOLUTION NO. 64-FF, ADOPTED BY THE CITY COUNCIL ON JULY 30, 1964, AS SUPPLEMENTED, AND ACQUIRING AND CONSTRUCTING ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE CITY'S WATER AND SEWER UTILITY; PROVIDING FOR THE ISSUANCE OF ADDITIONAL WATER AND SEWER UTILITY REVENUE BONDS OR THE INCURRENCE OF INDEBTEDNESS TO THE STATE OF FLORIDA TO PAY ALL OR A PART OF THE COST OF ADDITIONAL IMPROVEMENTS TO THE CITY'S WATER AND SEWER UTILITY; PROVIDING FOR THE PAYMENT OF SUCH BONDS AND THE INTEREST THEREON FROM NET REVENUES OF THE cITY'S WATER AND SEWER UTILITY AND THE EXTENT PROVIDED HEREIN FROM IMPACT FEES; SETTING FORTH THE RIGHTS AND REMEDIES OF THE HOLDERS OF SUCH BONDS; PROVIDING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE"; TO LIMIT THE ISSUANCE OF BONDS IN ADDITION TO THE INITIAL SERIES OF BONDS ISSUED UNDER SECTION 207 WITHOUT MEETING CERTAIN REQUIREMENTS OF SECTION 208 TO SUCH BONDS AS ARE ISSUED IN AN AMOUNT NOT TO EXCEED $10,500,000 AND FOR THE PURPOSE OF PAYING AT THEIR RESPECTIVE MATURITIES THE OUTSTANDING SIX SERIES OF WATER AND SEWER UTILITY REVENUE BONDS OF THE CITY; TO ADD PROVISIONS REGARDING REGISTRATION OF BONDS; TO CHANGE THE PRINCIPAL AND INTEREST PAYMENT DATES; TO DELETE REFERENCES TO A FISCAL YEAR OR CHANGE FISCAL AGENT TO DIRECTOR OF FINANCE; TO ADD A REFERENCE TO SECTION 207 RELATING TO RESERVE ACCOUNT DEPOSIT - 1 - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 9, 1984 REQUIREMENTS; TO AUTHORIZE THE REFUNDING OF A PART OF A SERIES OF BONDS; TO ADD CERTAIN DEFINITIONS; AND PROVIDING AN EFFECTIVE DATE. Councilman Cassandra moved to accept Resolution No. 84-00 amending Resolution No. 84-E - water and sewer utility reve- nue bonds. Councilman Wright seconded the motion. Under discussion, Mayor Zimmerman referred to there being some blanks in this resolution and Mr. Vance informed him the blanks on pages-5 and 6 are forms for printing the bonds and it is not necessary for these to be filled in. As requested, Mrs. Boroni then took a roll call vote on the motion as follows: Councilman Cassandra - Aye Councilman Wright - Aye Mayor Zimmerman - Aye Vice Mayor Ferrell - Aye Motion carried 4-0. Approve Negotiated Sale Disclosure Statement Mr. Vance distributed completed copies of the Negotiated Sale Disclosure Statement. Mr. George Schneider explained how this is a requirement of Florida law and the expenses represent their best estimates of what they believe the total will be for attendant expenses. Mr. Cheney asked if the City Council must approve this and Mr. Vance replied negatively as it should just be accepted as it is presented as required by law. Mr. Cassandra referred to the amount of $9,690,000 being changed to $9,635,000 and Mr. Schneider agreed it should be changed in both places. Mr. Wright referred to the cost for managing the underwri- ters and Mr. Schneider replied that he believes it is com- parable to other issues and he did present a list of comparable issues in the market this week. Councilman Cassandra moved to accept this report, seconded by Councilman Wright. No discussion. Motion carried 4-0. Proposed Resolution No. 84-PP - Re: Authorize the Issuance of $9,635,000 - Water and Sewer Utility Revenue Bonds, Includes Excrow Deposit Agreement, Bond Purchase Contract and official Statement - 2 - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 9, 1984 Mr. Cheney requested that it be explained what the group of underwriters have been doing, what is being approved regarding costs, etc. Mr. Schneider advised that what they are asking the City Council to do is approve the Bond Purchase Agreement with the three underwriters in the prin- cipal amount of $9,635,000 for water and sewer utility reve- nue bonds. He explained how this represents the aggregate principal amount to refund certain outstanding bonds. He reviewed the Bond Purchase Contract and explained how all three firms had coordinated their efforts. Mr. Schneider advised they are going to submit an irrevo- cable letter of credit payble to the City of Boynton Beach in the amount of $97,000 and attended to that will be four marked up preliminary statements. Mr. Cheney added that the document submitted was rewritten this morning. Mr. Schneider continued that the figures change hourly whenever there is an interest rate change, but it is now locked in at specific maturities and coupons. He then enumerated the rates and time period. Mr. Schneider then distributed a sheet comparing similar interests and reviewed these. He then read a sheet listing the unsold balances of the three underwriters as of 9:00 A.M. Councilman Cassandra referred to not having the time to review all this material and questioned if the advantage was still equal to that presented at the previous workshop session and Mr. Schneider replied that we are essentially at the same point as at the workshop session in December. Mro Schneider continued that the Bond Purchase Contract binds the City to deal with them and for them to accept delivery of the amount of the bonds. They anticipate closing in New York on May 30, 1984. He continued with reviewing the obli- gations and expense sections. Councilman Wright questioned how the system worked with the three underwriters participating and Mr. Schneider replied they had good cooperation and the coordination went well. Mr. Cheney requested comments from the attorneys in reference to the Bond Purchase Contract. Mr. Howard Whitaker, New York Bond Counsel, stated he is satisfied the City should proceed. This new instrument replacing the six outstanding series will serve the City well. This has a lot of modern features. - 3 - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 9, 1984 Mr. James Vance, city Attorney, stated that he concurs with Mr. Whitaker. He recommended getting rid of the old 1964 series and this is a substantial advantage. Mr. Cheney stated the main reason was to get rid of the old resolution in a way which won't hurt the financial situation. He suggests approving this purchase contract and Mr. Vance advised it is taken care of in the resolution. Mr. Vance informed the Council the blanks in this proposed resolution should be: Page 1 - 84-00, Page 3 - top paragraph should be May 2 and second date is May 9, Page 10 - delete "of Miami" by Florida National Bank, and the other changes have been written in. Mr. Vance then read proposed Resolution No. 84-PP by title: A RESOLUTION AUTHORIZING THE ISSUANCE OF $9,635,000 AGGREGATE PRINCIPAL AMOUNT OF CITY OF BOYNTON BEACH, FLORIDA, WATER AND SEWER UTILITY REVENUE BONDS, SERIES 1984A; FINDING THE NECESSITY FOR A NEGOTIATED SALE OF SUCH BONDS; APPROVING THE 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 1984A BONDS; APPLYING THE SERIES 1984A BOND PROCEEDS AND OTHER MONEYS; FIXING CERTAIN DETAILS OF SUCH BONDS; APPROVING AN ESCROW DEPOSIT AGREEMENT AND APPOINTING AN ESCROW AGENT, ALL IN CONNECTION WITH THE ISSUANCE AND SALE BY THE CITY OF SUCH BONDS; PROVIDING FOR THE DISPOSITION OF FUNDS IN EXISTING FUNDS AND ACCOUNTS; RATIFYING CERTAIN ACTIONS HERETOFORE TAKEN BY THE CITY COUNCIL; AND PROVIDING AN EFFECTIVE DATE. Councilman Cassandra moved to accept proposed Resolution No. 84-PP, in reference to authorizing the issuance of $9,635,000 water and sewer utility revenue bonds, including escrow deposit agreement, bond purchase contract and offi- cial statement. Vice Mayor Ferrell seconded the motion. No discussion. As requeSted, Mrs. Boroni took a roll call vote on the motion as follows: Councilman Wright - Aye Mayor Zimmerman - Aye Vice Mayor Ferrell - Aye Councilman Cassandra - Aye Motion Carried 4-0. - 4 - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA MAY 9, 1984 ADJOURNMENT Councilman Wright moved to adjourn, seconded by Councilman Cassandra. Motion carried 4-0 and the meeting was properly adjourned at 12:55 P. M. CITY OF BOYNTON BEACH, FLORIDA - ---~/ ~ayor  Councilman ~/ ' Councilman ATTEST: Councilman Clerk Recording Secretary (One Tape)