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Minutes 09-03-64MINUTES OF SPECIAL MEETING OF CITY COUNCIL, HELD IN CITY HALL~ BOYNTON BEACH~ FLORIDA, SEPTEMBER 3~ t96~. Present: J. ALLISON BANKS, MAYOR JAM~S J. MAHONEY, VICE MAYOR JOHN L. ARCHIE, COUNCI~;~IN WALTER A. MADSEN, COUNCIIMAN THOMAS A. SUF~MERS, COUNCIR~AN GENE MOORE ~ CITY ATTOB3.~EY FRANCIS T. Kain, CITY MANAGER TEREESA PADGETT, ~Y This meeting was called to order by Mayor Banks at ll:15 a.m. to consider bids on the 196~ Utility Refunding Bonds. Gene Moore read a telegram received from E. F. Wrightsman, Bache & Co., offering to pay a 3.9~17316 interest cost at par for the six million water and sewer refunding and improvement bonds. Councilman Madsen stated that he was disappointed at the new b~ figure since Mr. Alcock had proposed 3.835 only a short time ago~ Mr. Kain read the telegram received from Mr. Alcockunder date of June 15~ 196~. After discussion among the entire Council, Mr. Madsen made a motion to recess untiI ~:00 p.m. this afternoon and Mr. Kain was instructed to contact Mr. Atcock and attempt to obtain a lower bid nearer in line with the proposed 3.835%. Motion seconded by Mr. Summers and unanimously carried. Meeting recessed at 11:~% a.m. Meeting reconvened at $:05 pom. Mr. Kain reported that he had contacted Mr. Alcock by telePhsne-. at which time Mr. Alcock advised him that he felt that this bid of 3.9~17316 was a fair bid based on the current bond market. Several members of the Council sat in on the conversation. The matter was discussed by the Council, during which time Mr~ Kain stated he was not able to give the exact amortization figures at this time but would get them as soon as possible. The City Attorney advised in answer to the Mayor's inquiry that Mr. Alcock had fulfilled his part of the agreement and would be entitled to his fee whether or not we accept the bid of Bache and Company. -1- CITY COUNCIL September 3, 1965 Mr. Madsen: (requested verbatim) Mr. Mayor, I would like to say several things... Mayor Banks: Alright Mr. Madsen. Mr. Madsen: ...and this is my continuance of this afternoon's meeClng. NOW, we went downstairs and I didn't know anything about this particular call from Mr. Alcock until I got down- stairs by Mr. Kain. Right? Mr. Kain: Yes sir. Mr. Madsen: Now, Mr. Archie had another meeting so we'll excuse him for that--attendance was Mr. Moore, myself--to go down the line--Mro Summers--Mahoney, and part time--Mr. Banks, the Mayor. We listened to Mr. Alcock--this is no exaggeration now--nearly one (1) hour, I believe it was. He gay? us all the details that we asked for--he answered all the questmons and when the final situation came about, Mr. Kain said "Anyone else want to talk to him?", I said I would like to talk to him--which I did, I said "Tom, I was very much surprised at the...bid~ He explained things thoroughly and he was sincere, in my way of looking at things. And when I say sincere, I mean it this wayr-he had the most logical, most professional legal authority bidding on these bonds and one of them was--the one we had the three million-- four million dollar bidder and he, as I understand, is antici- pating buying some of our bonds so on this ~.~+ or whatever it happens to be in decimals--it must be a good bond buy evidently to him. I was disappointed--I say--but I am going to make a motion that we accept this bid. Motion seconded by Mr. ~mmers and upon request by Mr. Madsen ~ roll call vote was made: Mayor Banks: I say for the record that I have been opposed to this refinancing plan--not that I did not realize that the City needed doing some work in this field and needed to have some refinancing done in some area to meet the present need that we have, but I have been opposed to this plan all the way through because I felt that we could have done it on a shorter term and the City wouldn't be involved in nearly as much money and as much legal work that has gone into this° Because I was opposed to it from the beginning and it has come out like this now, I am going to continue to voice my vote in the negative. Vice Mayor Mahoney: I have consistenly supported this due to circumstances - financial circumstances - that we find the City of Boynton Beach in--I will correct that to say what we will find the City of Boynton Beach in at a later date. I also recognize, mnd many of us of the Council I am s~re have heard of it, the number of people who have stated they would not pay s front-foot assessment and I believe that this is the duty of the Council to relieve these people in every way possible from -2- M I N U T E S, CITY COUNCIL September ~, 196~ an obligation of this Type that is going to be a hardship and burden to them. And furthermore, I voted on this issue because I was opposed, although I voted for the A and B Issue, I was opposed consistently through it to the utility tax pledge. I know also that the City has had to use other means than to secure any type of payment to the general funds which has been disputed by the engineers at this late date and therefore, I believe that release of 'surplus funds will be of extreme benefit to the City and future C0uncils of the City and to the people that will be within the wisdom of the future Councils. I believe the interest rate is lower, which it is, and it clearly shows that regardless of the ~ount--which seems to be in ques- tion, there will be a savings and not a loss to the City. We requested a par bid rather than a discount bid and this has been accomplished. Because of these reasons, I am still continuing to approve of it and I will vote yes. Councilman Archie: I vote NOo I am completely in agreement with abolishing the front-f~'~t assessment but I feel--I know-- this could have been accomplished with our existing fiscal agent without any further fiscal fees and we would have been able to get all the money necessary to put us on a sound basis. I voted against the contract in the beginning. If I had voted for the~ontracD, I would be voting yes today, Because the City laid themselves liable for $90,000 the minute they signed that contract with the fiscal agent, Mr. Alcock, provided he could bring it in under the ~.0, which he did--but I did not~ as I ~ay, Note for ~he contract; therefore, I do not feel that I have o vo~e for th~s sale of the Bonds. I vote No. Councilman Madsen: I have got so much to say I don't know where to start but, however, I emphasize the fact that we tried to protect the people of Boynton Beach by eliminating the front- foot assessment as Mr. Archie mentioned and the Mayor. They dj8 not come out and say how, and I mean how, we could ever accom- plish that feat with what little money that was coming in in revenue. I am sorry--I am so perturbed today over the situation that it has got me a little excited. However, I must say that after this conversation today with the fiscal agent, Mr. Alcock, I don't know how in the world we could do ~ different than we are doing today but to help the people of Boynton Beach-- period~ Help the poor people~-(I said poor people--now I don't mean it in that category), but I mean the retired people--and I am one of them, to eliminate all these excessive fees that they had to pay for front-footage, etc. Now I thlnkwe are doing a justice to the people and naturally from what Mr. Alcock told us this afternoon, after one hour on the telephone, he could do no better as far as financing any l~er rate and that it was a just fee and bidding. I most certainly vote Yes. Councilman S~mmers: When I took the oath of this office I swore I would do the best to my ability to support Boynton and to ~pend its money wisely. In my heart I feel that this contract M I N U T E S~ CITY COUNCIL September 3, 1965 is the best thing that we can do for Boynton, so I vote to accept this bid. Mr. Mahoney asked if Smithers & Co. would release the City of any obligation th y m~ght feel they could have against the City. The City Attorney advised that Mr. Wrightsman had informed him that Smithers & Co, planned to take approximately one million dollars worth of these bonds and that he has discussed the question of the fiscal agent arrangement they had with the City and they had agreed to peace and harmony. They WOuld relinquish any alledged claim they had as a result of any prior arrangement with the City° Vote tabulation: Motion carried 3 to 2. Mahoney, Madsen and ~mmers voting Yes and Banks and Archie voting N._q. The City Attorney read proposed Resolution 6$-GG accepting the bid o£ Bache & Co. to purchase $6,O00,©00 City of Boynton Beach Water and Sewe~ Refunding and Improvement Bonds, Issue of 196~ at an average interest rate of~3.9517~16~. Motion made by Mr. Summers to adopt Rasolution-GG. Motion seconded by Mr. Madsen and carried 3 to 2 with Mayor Banks and ~ Archie voting Change Order No. l, which amended the wording of Cleary Bros. contract on page GC-11, paragraph lle and on page CC-I, para- graph II was presented by the City Manager. Mr. Archie made a motion to approve Change Order No. 1. Motion seconded by Mr. Mahoney and unanimously carried. Meeting adjourned at ~:0~ p.m. Mayor Tereesa Padge~, City Clerk r A. Madsen, Councilman Thomas A. ~mmers~ Councilman