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Minutes 05-05-78MINUTES OF SPECIAL CITY COUNCIL F~ET!NG I~ELD AT CITY BOYNTON BE~_CH, FLORIDA, FRID~Y, ~[~-Y 5, 1978 AT 5:00 P. M. PRESF~T Emily M. Jackson, M~yor Edward F. Harmening~ Vice Mayor Richard D. Caldwell, Councilman Joseph DeMarco, Councilma~ David Roberts, Councilman Frank Kohl, City Manager Tereesa Padgett, City Clerk Mayor Jackson called the meeting to order at 5:10 P. M. and announced it was a Special Meeting in accordance with Section 56 of the City Charter to consider proposals regarding the Guaranteed Entitlement Revenue Bonds. ~. Kohl informed the Council that Fisher, Allen, Johnson & Burk called him today and they are not interested, but M~. ¥~ddlemas from E. F. Hutton & Co. and M~. Condon from ~eugh & Co. are present to submit proposals to the Council. M~. Condon appeared before the Council representing Hough & Co. and thar~ked them for the opportunity to submit a bid. They have worked two ~o three months getting together the necessities for being able to make a bid and he would like to read their proposal which he will submit. He then read the attached bid. He added that he has a $15,000 geo~ faith check to,submit with the bid. ~. Kohl questioned the mention in the bid of changing the resolution and M~. Condon re-read Section 14B2 mud clarified that this gave an option if money was needed for the construc- tion of the project. Mr. Kohl clarified that this meant the resolution must be changed which cannot be done since it is on file with the court. M~. Harmening stated we would have to go the other ws~ and capitalize other proceeds. Mr. Condon replied that if they could not accept it, then the bid is firm on the resolution. M~yor Jackson questioned the p,~rt where reference was made *See Min+ to what the money was going for and Mr. Condon read a few off sections, but did no~ give the clarification requested and B/16/?S M~. Caldwell suggested that copies be made fo~ aach Comucil member~ ~. Harn~ening clarified that the interest rate was 6% mud M~. Condon agreed. Mayor Jackson asked w~ there were not going to be a~uy $1,000 bonds and M~. Condon explained how $1,000 bonds were not very marketable item now and $5,000 bonds are the normal issued. ~*~. Roberts referred to the interest rate being established at 6% without going uo and down s_nd M~. Kohl agreed mud added that the previous ~id started at 4% and went ~ to 5.7~. MINUTES - S~CI~L CITY COUNCIL MEETl~G BOYNTON REACH, FLORIDA I~Y 5, 1978 Mr. Roberts referred to the previous bid charging a percent- age so we wound up with 1.3 million dollars and asked if that was still involved and N~. Condon replied negatively and explained that instead of paying a discount, they are paying a slight premium. ~. Roberts asked if this was Based on the increase in interest rates and Mr. Condon ex- plained how it w~s based on a combination of things. Ys. Roberts re~erred to the bonds being dated February 1 and asked who would be responsible for the interest from February and Mr. Condon explained how they would pay the interest from February 1 u~til date of closing. Ns. Caldwell questioned how a bond could be dated three months before the resolution is passed and Ms. Condo~ replied that it is commonly done and perfectly legal. He added that he did not work on this and does not know why it was selected, but possibly the City has other securities. M~. Kohl asked if they had taken into consideration the $2,000,000 Gainesville took out recently and the market being flooded in Florida and N~. Condon replied that the pipeline is full of bond issues, but explained how a pro- posed regulation would not allow closing to be delayed beyond May 15. He told about the present situation in the State. Nso Roberts asked if most of these bonds flooding Florida were Revenue Bonds and M~. Condon replied affirma- tively. M~. Roberts referred to most being rather long term bonds and M~. Condon agreed. Mr. Roberts asked if he thought shorter term bonds would move more readily than 25 to 30 year bonds and M~. Condon agreed and added that the maturity schedule proposed was rather short by most standards. ~. Caldwell asked why we couldn't g~t a lower interest and M~. Condon replied that they have to get a lower yield on the bonds to produce a profit because they are paying par value. ~. DeMar~o requested the total amount of interest over the 15 year period ar~ ~. Harmening estimated it at $450,000 and M~. Condon stated he thought it would be mc~e than that. Ms. Roberts referred to the annual payment for bond interest and the sinking fund to be $145,000 to $150,000 and N~. Condon explained how they were aiming at a pretty level debt service. Mr. Kohl asked if he felt in a couple weeks the bond m~ket ~ould be better after the flooding of the market of these different projects in Florida and ~. Condon replied that he thought it would take a longer period of time than that to absorb the quan. tity of bonds there are. He explained how even though these bonds have to be committed for by ~Y 15, some won't be taken up for awhile after that. -2- MINUTES - SPECIAL CITT COUNCIL MEETING BOYNTON BEACH, FLORIDA ~L~¥ 5, 1978 ~. Kohl referred to it being four to five months and Mr, Condon replied that it should not be that long as the dealers won't hold them. He also referred to the unexpected infla- tion and stated that it is hard to put a number on what the future is when the future seems to be changing very rapidly. M~. DeM~rco stated that he has heard reports about the oppo- sition saying it will take $3,000,000 and he thinks the figures should be brought out and i~. Condon replied that the maturity structure is an element of what the interest costs. Mr. DeMarco stated he would like to know what the actual cost will be if they are paid on schedule and M~. Condon replied that in 1979, the interest is $9,000 and the a~unuai p~yments will be approximately $t60,000. M~yor Jackson requested Mr. Condon to make copies for the Councii me~oers to review ~ad stated they would c~me back to it after hearing the other proposal. ~. M~ddlemas submitted a co~ of his proposal to each Council member and then read the attached proposal. He read the two schedules submitted and clarified that Schedule and Schedule B offered a discount bid. ~. Roberts referred to the annual amount required to pay the interest and sinking fund and M~. ~ddlemas pointed out that the total annual payments were noted. Mr. Kohl clarified that it would average about $150,O00. ~. DeM~rco requested the figures of the total annual payment for comparison and M~. Condon agreed to compute this, _Mr. Harmening stated he believed the best of the three was Schedule ~ from Xirchner, Moore & Co. After computation by both representatives, Mr. ~ddlemas in- formed the Coo~cil that the result was an interesting compari- son. M~. Condon's rate of interest is higher than his, but his gross cost is less than his. He advised that it has to do with the way the par amount of the bonds ais paid off each year. He atated that his interest rate was 5.9~% and Mr. Condon's was 6%; his net interest cost is $806~3R5.00 and ~. Condon's is $801,262.50. M~. Harmening clarified that the proposal from ~. Condon was amortizing faster, but ita~may be better to pay smaller in the beginning because the Guaranteed Entitlement Funds will continue to increase an8 more money will be available at a later pariod of time. M~. Roberts added that it would be paid off quicker because it is dated February. M~. Harmening clarified that the total cost was $5,000 less. -3- MIh~GTES - SPECL%L CITY COL~CIL ~ETING BO~V~.TTON BE~~CH, FLORID~ ~i~¥ 5, 1978 Mayor Jackson called on M~. Ste~tzman for comment and M~. Startzman replied that he could not give much comment as it is very close. ~. H~mening referred to nothing noted in Mr. Middlemas' ~roposa! regarding the bends being callable after a certain date and M~. h~ddlemas pointed out that it was _nc~uded in Ttem = ~. Roberts cl~mf~ea that both olans will deliver the full amount of $1,500,000 as compared to the original plan which ~ocked off some and ~. Kohl agreed that both bids are par. There were further comments about the bids being close and then ~,~. >~ddlemas and M~. Condon agreed to wait outside while the Coumcil discussed them further. ~. DeMarco stated that according to Schedule A, the actual rate of interest is cheaper and Mr. Caldwell replied that by the same token, the total dollars expended is not as much. M~. DeMarco stated they were not being paid as fast and pos- sibly we would have more revenue as the City grows which would give us a better ch~uce to come up with more money later on. M~. Kohl commented that they were ~ery close and M~. DeMarco added that the actual net interest rate is 5.99% against 5.~714 and ~. Harmening added that $5,000 would still be saved on the one. M~. De~L~rco questioned whether we would be saving or not since we would be paying in ad- vance. He pointed out that we would he paying faster on the Hough proposal th~u on the proposal from Kirchner, Moore & Co. ~. Harmening referred to comparing Schedule A with the £ront page of the Hough proposal and pointed out there was very little difference, about $5,000. There was further discussion about the closeness of the pro- posals. M~. DeMarco then stated he would be inclined to go along with the one with the lowest interest rate right now and made a motion to take Schedule A from Kirchner, Moore & ~o. showing ~.907t4% against the interest rate of 5.9~/~ with Hough & Co. Mr. Caldwell seconded the motion with the amendment that it is the common practice of Kirchm~r, Moore & Co., as indicated by ~. Middlemas, that item 5, Page 2, will be at 102 to be declined $% every year there- mfter. M~. DeMarco agreed. Under discussion, ~. Roberts referred to all bonds having a sliding scale and ~. Cald- well agreed, but stated he wanted it in writing and not based on an assumption. Y~. Harmening referred to there being a question in the Kirchner, Moore & Co. proposal with the reference to our official statement containing an untrue statement, etc. and M~. Kohl informed him this was standard in every sale. MI~TUTES - SPECIAL CITY CO~CIL MEETING BOYNTO~ BEACH, FLORID~ ~5~Y 5, 1978 M~. Startzman asked if they realized with the lowest inter- est, they would actually be spending over $5,000 more for the use of the money under the same term and Mr. DeM~rco agreed, but stated we would not be paying as much in the beginning. M~. Startzman stated they would be paying out more as the expenditures increase with repairs, etc. Mr. Midd!emas appeared back before the Council and advised that they had made a miscalculation. He first advised that they are discussing working together. He explained that the interest was calculate8 on the whole year's interest; how- ever the accrued interest back to .February I must be sub- tracted and the additional amount is now deducted. In his hid, he had included an extra 45 days of interest. Mr. DeMarco referred to this nm~king it even closer and re- tracted his motion. M~. De~5~rco questioned their suggestion to possibly work together in a joint venture and there were some questions about which proposal would be accepted. P~. Middlemas explained that the plans could be run through the computer for a decision on which one would be the best. Mm. Caldwell withdrew his second to the motion and Mr. Condon left to get this offer verified from his office. Mr. Roberts stated that as far as he was concerned, the City is interested in the best offer and we do not care who writes it. It has been suggested whomever submits the lowest bid will be the underwriter and from thereon, they ca~ take it between them. He think~ this would be the simplest way. We are concerned with getting the best offer and the lowest rats. Mayor Jackson referred to it being ~usual to come this close and ~. Kohl agreed it was the first time he had seen it so close. The representatives ~eturned and M~. Middlemas advised that they were having a little problem. _They are willing to work together, but he personally feels the person who has sub- mitted the best bid should be the lead underwriter. ~m. Condon advised that his firm felt they should be the lead underwriter because they have done so much work on this and have done work for the City previously. M~. Roberts referred to the figures still being about the same and i~r. Condon re- plied that they would abide by the best oft~he two bids and work 50-50. Mr. DeMarco suggested that whichever one has the best bid should be the lead agency and M~. Middlemas replied this was up to the Council. ~. DeMarco made a motion that it be a joint venture between the two representatives at the lowest rate submitted and that agency to be the lead underwriter unless settled otherwise~ by the two parties with the City Manager and Mmyor being authorized to execute the papers. M~. Harmening seconded the motion. Under discussion, ~. Caldwell asked if this -5- MI~JTES - SPECIAL CITY COUNCIL ~ETING BOYNTON BEACH, FLORIDA i~LIY 5, 1978 meant we were not going to name the best bid tonight and >~. Condon replied that the bids must be recalculated. Me. Harmening cl~r ±~ied they would be effective this date even though not signed until Monday and Mr. ~ondon agreed. Me. RoBerts clarified that the one who submits the lowest bid will be the lead ~mderwriter, but before that is determined, the figures will be submitted to the City Manager to compare with the figures already received. Mr. ~ddlemas suggested that the two bids be compared on the basis of the lowest net interest cost to the City and Mr. ~eMarco agreed and Mr. Caldwell offered this as-an amendment to the motion, seconded by M~. Harmening. As requested, M~s. Padgett then took a roll call on the motion as follows: Councilman Catdwell - Aye Councilman DeMarco - Aye Vice M~yor Harmening - ~e Councilman Roberts - Aye Mayor Jackson - Aye Motion carried 5-0. Mr. Caldwel! Motion carried at 7:00 P. M. ATT~ES T: ~ City Clerk moved to adjourn, seconded by Me. DeMarco. 5-0 and the meeting was properly adjourned CITY OF BOYNTON BE~&CH, FLORIDA ~~~ayor ' ~ ' ~ Cou_nci!m~  ~ Coun c ilman Co*&ucilm~ Recording Secretary (~o Tapes -6- CITY OF BOYNTON BEACH PAGE 1 S T A N D I N G C H E C K S ......... . ........ 88.75 ...... ~lZ, Q .......... 2.3~15_8_~ .......... ~4..~._ !_, _N,~_L ~ ~_ 4-10. ~ 'J ~732 ~5~00 JOHN ~. TUITE 4/0~/T8 91,50 NG ~/03/78 30. ~1~]I78 225,41 SEWER ~/05178 15!~60 4-/05178 ~,.0~o_ ........ 4/0517~8 t2,00 4855 032901 CITY OF BOYNTON BEACH 4/05/78 1.50 ~J~ ~_,~ ~J~72Q ......... ;6~L.LEN I.~%SURANCE: AGENCY 4107178 8~007,00 J:j 4~~2~ 8g~ OF CO. C~&IONE~S 4/07/78 ~/07~ ~FAN 4/07/.~._ 200. OO 4/30/78 CITY OF BOYNTON 8EACH PAGE 2 . 4~D 06~700 FLORtD~ BRAKE ! ~/07178 ~ ' _~89~ .... AVIDSON ~ALM ~ 4/07/78 ~/{ FORMS 4/07/78 38~,79 100.~ 4905 130565 MAUR?'S TOOL CHEST 4/07/78 52.50 /-'-,~[? .......... -- '"'-: ................................................. 7:-¥ ............... i-~"T¥ ............................................................................................ L_~ ___~L9_Q_6. ...... 13_2_78t___ NILDRED I4ILLER ..... 4/__0_7_/_.-f_8 ................. 6.~-_.~ LF 4907 134665 ARNOLD A. MORFITO 4/07/78 100o00 ~._.I ~:;k: .................... 491~L~_~. 1_~040__0 P~M 80~. COUNTY P.~A, ...................... ~1071._.]8 .............. !._~_7_.,_~Q. ........ J 4913 160410 P/4LN BEACH NEWSPAPERS ~/07178 ~9~6 162770 STAN PICK~alNG 4/07/7S .......... a~.LT..__._ !_.6_Z...%7.D_ 8I !NEY ~]W E S 4/07/78 212.00 4918 164625 pODULAR SCIENCE 4922 184700 AND TRU , INC 4/07/78 45,36 4107/78 1,605.61 4924 190465 SANDPIPER CONST, tNC. 4/07178 16, t54.00 4/30/78 CITY OF 80YNTON 8EACH PAGE 3 ! N G C H ~ C K S TEL ~PHONE 4/07/78 4933 gt6390. UNI da× ~940 196010 STATE OF FLORIDA ,944 INC. 4/11/78 3~/7.79 P~TS INC. 4/11/78 ~36.81 80STIC TO SUPPLY BOYNTON GUN & LOCK INC. 4711/78 16,DO 4/11/78 457.8~ )530 CARVER FAMILY YMCA 4/11/78 85.00 ETER ~ SUPPLY ~711/78 935.00 4711/78 16.00 a GRIFEITH, IN~_.. ..................... 4/11/78_ 49' 080550 HAUSER ~OTOR CO. 4/11/78 103.~ ............. 084620 ..... =UOL~%Y ACCUMUL_A_I_QB & 4/11/78 26.00 0S63:1 NOAH HUDDLESTQN 4/11/78 200.00 4/30/78 CITY OF BOYNTON 8EACH PAGE ._ .MBA507 D ~ T ,S ~ A N D I N G C H E C K $ ...,_., , 4~79 tI!~80 KELLY TRACTO~ CO. ~ ~/~/7~ ~9.~6 ;_i ............. ~:~ ............. K2_&.d.5.Q ............. LO_~_~_~ ! ~ _ _ .S~_~ ~G ...... ~ / ! t / 78 ................. ~..~_2_~ ~991 151310 ODOR CONTROL SYSTEMS ~/11/78 ~ 126.~5 ;. _4996 ..... !~790__ P!~CE TIR~ CO.~ IN~. 4/11/78 ~9 1~700 ~ORT~R PAINT 4/11/78 105. 500~ 1917Q0 SEMELL HARDWARE CO..~ INC. 4/11/78 64.73 5003 192460 SHERMAN CO. 4/11/78 ~007 196170 STEV~N~ S DRUGS ~/tt/78 7.0~ - __sD_o_L 202545 HANK THOMPSON _..R_~_A_LT__Y_L_!~C~ z+/I1/78 150.00 5015 013926 AMeRICaN FIREWORKS, INC. 4/1~/78 501~ ........... k~_~ PETTY CASH ~ATER ~ S~ 5019 032901 _GtTY OF 80YNTON BEACH 4/18/78 6.26 ~0~9 03~9~1 CITY OF ~DYNTON 5EACH ~/18/78 9.99 5PgQ _!.~2ZAO ........... ~!G-A-TRIP TgAVEL AGENC~ 4/I8/78 913.76 502~ 114600 KOPY KING PRINTING C[NTER ~/18/78 ~/30/78 CITY OF BOYN~ON ~EAGH PA~E 5 TY QF EACH ~/27/78 4/27/78 1.25 ;E~ ER ~/27/78 ~. 17 ~ING 4/t~/78 t.~45,S3 AT~N~i_5___~AIiQ_NAL BANK 020200 $.~.F. 4/t4/78 52,72 171,634.23 ~R. INC. ~/t~/78 882,00 4/1~/78 9.~5 160.66 4/1417B 33.04 CITY OF BOYNTQN ~EACH PAGE 6 ~ .... 5~7.Z .............. A~O~ 5 N ~ g~LCS_ ~ / I ~178 5..._g_~ ....... 5~7S 1~044~ NATIONAL fiSheRY SERVICE 4114178 _._'~ .......... ~.~ ............ ]62750 PICA~O CHEMICAL CO. ~11~178 154.80 L__i_~ _ 5!83 ~528~ ....... ~IONES~ INSTRUmENTAlly_ ~/14L~_ [ 5i8~ 180500 EV~ ~Y~OND 4i 14i78 ~ 5!8R !9~09~: QLy~_~_,__. S C HO OL EY ~I1~!7~ ~___ _.~1..8_9 .................. ~?Y_B3 SIMPLIC~y_.~TE~N ~Q. ........... ~/~=5 ...~.~..~_~_ ~ $t90 193450 GERALD OR VIOLET SLEEMAN 4114/78 ~- t00.00 ~_~ 194706 SOUTHERN BUILDING COD~ 4/1~17._~ 6.00 Ii 5196 196009 PAUL STARTZNAN 4/14~78 81.~7 :~ 5200 216620 UNIVERSITY OF ARIZONA PRE 6/16/78 I0.35 ~Ji 5202 222800 VIKING ENTERPRISES 4114/~8 ~27~ 4/30/78 CITY OF 80YNTON BEACH gAGE 7 M-~507 ~05 2~69~ WO~LO BOOK-CH ILD~R~ T INT , ~217 ;~:0035 J. BOUDREAU 10,75 4/14_ ._ /.78__ 4,00 14/78 7,20 :EALTY INC 4~70 4/14/78 3;BO 4114/78 4~t~/7~ 12,20 ,/78 -ii% z'-f 4/14/78 9°40 4/14178 .t78 ) 4.7© 4/30/78 CiTY OF ~OYNTON ~EACH PAGE o ~~~6 650048 W~L I A~ MAT~SON - ~762 ~5005~ NELCHE ~RTIN ~78 4/t4/78 12;~0 4/_._L~/ 78._ ............................ 5_... e_~_o_ ............. 279 ____7100_~_~7 __JO__HN L,. SHErmAN 14/78 10.80 __ 11,5@ FET 4/14178 4/30/78 CITY OF 80¥NTON 8EA£H PAGE O~U T S T A N O I N G C H E C ~ S , ~ ~., .~_c__.~_U..L~,~ ~H ~/~7-_~. 15.00 ~./1~/70 2~80 ?t~178 ' 2!.80. 6;30 4/14/78 4/30/78 C[T¥ OF BOYNTON BEACH PAGE 10 5B76 790727 CIT'Y OF ~OYNTO~ BEACH ..... 5_3-.80 ...... 790_"/'3_t_______C~ff¥ O_F__8;OYNTO~__BEAC_H.F: ' ......... 4L1A,,'78 ....................... 3~Q ....... 15,00 4/14178 15.00 10.60 7¢B ;TY OF: ~_OYNTOn~ ilE&_C__H._ 4/14/78 30.00 TV O~ FON BEACH 4/14/78 7.50 BOYNTON BEACH 4/14/78 4.90 4/14178 2,80 ~OYNTON BEACH 4/14/78 ]YNTON 4/14/78 CITY OF BOYNTON 8E~CM PA~E li _&LLIEO C_~LO~I~E & ~/18/~_ .!~701.35 SALES 4/18~78 1B8,97 .......... ...,. ~,~8 94, OOCR - RPORAT ION ELECTRIC ~PLY INC ~J_! 8 / 7 8 1~ 20~. ~5 135985 4/t8/__. 78 4/21/78 41____21/78 1,412:.59 4/30175 CITY OF 80YNTON BEACH 5?57 0~6~0 OON"S fiLIGN~ENT 4t21/78 ............ ~,~¥, ,.%~,~ ........ ~:~ ~ ..,.,,. ..... ............ ~.,,~ ......... ,, 5~63 0629~0 FIRST ~ANK ~ TRUST ~I I _ _~/2:/7__ 8 ................ 2Q7~99 ~ 2Z21/7~. .3....~.~ 37,0 o __13O40D _MANHATTAN TROPHtE.. S 425,00 ___5.5 157.50 4121/78 _~2~0_ _.~ 4121178 lO.OD 600 '21/7S ~281~8~ ~ ..... 5 '97 18A5~0 691 _~ DC K_~ E L~L PUSL!~ATIONS ~I_.__2~117~ IOSS ~/21__ ~78 2oo.o~ z~/30/T8 CTTY OF SOYNTON ~EA£H PAGE MSASO7 O U T $ T A N O I N G C H E C K S 5506 ~9~770 SOUTHLAND EOUIP~NT CORP. ~/ 5~.~ .......... l_~.&_~_.__.: L~.g_L_~Bff Z ~.~.] .................... ............................ 4/21/78 ~9~ ~5174 MICHAEL GREG STICKNEY ~/21/78 16.~2 ... L'~ 4~ g' g !~.'....~% ~., ~'..%~.. '~' ~ %~'' _~.,t 2 205~00 T~OPIGA~, ~NC. ~I21/~8 t8 - O0 2B2790 ItC[ WiLSO2 ~/21/78 12Y. 80 tO~.O0 5178 12.75 4/30/78 CITY OF BDYNTON BEACH PAGE 14 ...... ~/~/78 590 85.00 ........ J~EP_H_ T_...._ HO.. 125~00 A/28/78 125.00 56Q7 100380 EMILY J~KSON ~/28/78 111,50 '78 23z 15 LIONEL O. ED_IE CO. z~/28/78 625,00 NATIONAL C_ASH ~EGISTER ._~ ~/28/78 555,9~ ,00 _~8178 I0.00 ............ 127.50 178 50.00 ~./28.I78 125.00 6,00 872,04 4128/78 89.73 4/28/78 t00.00 ~AGE 16 ~ , ~. ,.,~ ....... ~ ............................................. ~ ............ (,,,~.,....~.,.~g,~...~,~.~.~,.,~.~.~.~!~,~i~ ...................... ;5~.~ .......... _~,!_~.~ ......... A~.LA~I.~C ~OAS_%_FtR~_~_..E=.CO~ ~ ~/28/..78 109.70 .............. ~_5_~ ...... ~.~Q.t6 o .....~.. ~ ._. A $ S~_..~!_~_~[.G H__!.E~ ,_ ...... 5664 ~8~0 MRS. ~ETSY DILL ~/28/78 _~/28/78 65~50 __4/28/78 68.00 ~8/78 222.~1 ~/28/78 57,50 ~/28/78 4/28/78 ~8.BO 4/28/78 611,15