90-WWWRESOLUTION NO. 90-
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, APPROVING THE
FORM AND CONTENT OF A PRELIMINARY PLACEMENT
MEMORANDUM DATED APRIL 30, 1990 RELATING TO
THE CITY'S PROPOSED PUBLIC SERVICE TAX
REVENUE BONDS, SERIES 1990; RATIFYING THE USE
OF SUCH PRELIMINARY PLACEMENT MEMORANDUM IN
CONNECTION WITH THE PLACEMENT OF SUCH BONDS;
APPROVING THE AGGREGATE PRINCIPAL AMOUNT,
MAT~'~ITIES, INTEREST RATES AND REDEMPTION
PRO%'2$IONS OF SUCH BONDS, IF AUTHORIZED TO BE
ISSUED ON MAY 21, 1990; AUTHORIZING TH~
EXECUTION OF A COMMITMENT FOR BOND INSURANCE,
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Boynton Beach,
Florida issued its $5,150,500 Public Service Tax Revenue Bond
Anticipation Note, Series 1990 A (the "Note") on March 23 1990;
and '
WHEREAS, the City has selected SunTrust Securities, Inc.,
through its affiliate Trust Company Bank (the "Placement Agent")
to act as Placement agent in regard to the issuance of the City's
proposed Public Service Tax Revenue Bonds, Series 1990 (the
"Bonds") for the purposes of (i) paying off the Note, (ii)
satisfying the balance of a certain judgment (the "Refunded
Debt") rendered against the City in Case Nos. CL 86-3661 AE and
CL 87-1638 AE in the Circuit Court of the Fifteenth Judicial
Circuit of Florida, in and for Palm Beach County, Florida, (iii)
adding funds to the Reserve Subaccount created under the City's
Resolution No. 86-EEEE, and (iv) paying the costs of issuance of
the Bonds; and
WHEREAS, the Refunded Debt has to be satisfied in full on or
before May 24, 1990, or the City will be subject to interest on a
portion thereof retroactive to January 1, 1990; and
WHEREAS, in connection therewith, the Placement Agent has
distributed a Preliminary Placement Memorandum dated April 30,
1990, containing certain information with regard to the City and
the Bonds, a copy of said Preliminary Placement Memorandum being
attached as Exhibit "A" hereto (the "Preliminary Placement
Memorandum,,); and
WHEREAS, pursuant to Section 1001 of Resolution No. 86-EEEE,
the City Clerk has notified the registered owners of the City's
Public Service Tax Revenue Bonds, Series 1986, of the City's
proposed adoption of a resolution authorizing the issuance of the
Bonds (the "Bond Resolution,,); and
WHEREAS, the City plans to consider adoption of the Bond
Resolution on May 21, 1990; and
WHEREAS, based upon current market conditions, the Placement
Agent has, subject to the adoption of the Bond Resolution by the
City, placed the Bonds with the initial purchasers thereof on the
terms set forth in the Term Sheet attached as Exhibit "B" hereto.
WHEREAS, if the Bonds are issued, in order to provide for
bond insurance thereon, it is necessary to execute the commitment
letter attached as Exhibit "C" hereto.
BE .T RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON
BEAt{, FLORIDA:
Section 1. Preliminar Placement Memorandum. The City
hereby approves the form and content of the Preliminary Placement
Memorandum dated April 30, 1990, relating to the Bonds, a copy of
which is attached hereto as Exhibit "A" and ratifies its use in
connection with the placement of the Bonds by the Placement
Agent.
Section 2. ~DDroval of Terms of Bonds._ If the Bonds are
authorized to be issued on May 21, 1990, the aggregate principal
amount, maturities, interest rates, redemption provisions and
initial price of the Bonds shall be as set forth on the Term
Sheet provided by the Placement Agent and attached as Exhibit "B"
hereto. All other terms of the Bonds shall be as described in the
Preliminary Placement Memorandum.
S~ction 3. ~uthorization .of Bond I~suranc?. The Mayor is
a~ho~ze~ to e~ecute and del~v~ the Commitment to Iss~,,a
Financial Guaranty Insurance Policy attached hereto as Exhibit C .
Section 4. Effective Dat~. This Resolution shall take
effect immediately upon its adoption.
PASSED AND ADOPTED this 15th day of May, 1990.
[SEAL]
C~/ty Clerk ~-- // / Mayo~r L// ~
-- ~ ice-Mayor
APPROVED~AS TO FORM AND
LEGAL SUFFICIENCY
Commissioner
Commissioner
Interes=
(Nove~be= 1)
1991 $ 230,000 6.15% 100.00
1992 245,000 6.25 100.00'
1993 260,000 6.35 100.00'
1994 275,000 ':.50 100.00
1995 295,000 ~.60 100.00
1996 315,000 ~.70 100.00'
1997 335,000 6.80 100.00
1998 355,000 6.90 100.00~
1999 380,000 7.00 100.00
2000 405,000 7.05 100.00
2001 435,000 7.10 100.00
2004 1,505,000 7.30 100.00
2010 - 4.180.000 _ 7.50 100.00
Total $9,215,000
Redemption - Bonds maturing November 1, 2004
November 1, 2002
November 1, 2003
November 1, 2004
$465,000
500,000
540,000
~edempbtOn_Da~
November 1, 2005
Novembor 1~ 2006
November It 2007
November 1, 2008
November 1~ 2009
November 1, 2010
$580,000
620,000
665~000
715~000
770,000
830,000
Optional Redemption (% of Principal A~ount)
Red$~ption Pe_r~o~
May 1, 2000 - April 30, 2001
May 1, 2001 - April 30, 2002
~ay 1~ 2002 and thereafter
102%
101%
100%
COMMITMENT TO ISSUE A
FINANCIAL GUARANTY INSURANCE POLICY
RE:
Application No.: 90-04-2898
Sale Date: April 1990 (T)
Program Type: Negotiated DP
$9,085,000 (Est.) City of Boynton Beach, Florida, Public Service Tax
Revenue Bonds, Series 1990
(the "Obligations")
This commitment to issue a financial guaranty insurance policy (the
"Commitment,,) dated April 26, 1990, constitutes an agreement between CITY OF
BOYNTON BEACH (the "Applicant"), and MUNICIPAL BOND INVESTORS ASSURANCE
CORPORATION (the "Insurer"), a stock insurance company incorporated under the
laws of the State of New York.
Based on an approved application dated April 23, 1990, the Insurer agrees,
upon satisfaction of the conditions herein, to issue on the earlier of (i) 120
days of said approval date or (ii) on the date of delivery of and payment for
the Obligations, a financial guaranty insurance policy (the "Bond Insurance
Policy"), for the Obligations, insuring the palanent of principal of and
interest on the Obligations when due. The issuance of the Bond Insurance
PoliCy shall be subject to the following terms and conditions:
1. Payment by the Applicant, or by the Trustee on behalf of the
Applicant, on the date of delivery of and Pal;ment for the Obligations
following payments: , the
a. a n~nrefundable premium in the amount of .4% of to
service less capitalized and a ...... ~ : .... tal debt
to the neares~ ,~ ~ _~u ~n~erest, premium rounded
~ ~,uuu. ~'ne premium set out in this
paragraph 1.a. shall be the total premium required to be paid on
the Bond Insurance Policy issued pursuant to this Commitment;
b. Moody's Investors Service rating agency fees in the amount of
$7,500 in connection with obtaining the initial ratings on the
Obligations; and
c. Standard & Poor's Corporation rating agency fees in the amount
of $5,500 in connection with obtaining the initial ratings on
the Obligations.
2. The Obligations shall have received the unqualified.opinion of bond
counsel With respect to the tax-exempt status of interest on the Obligations.
3. There shall have been no material adverse change in the Obligations
or the Resolution, Bond Ordinance, Trust Indenture or other official document
authorizing the issuance of the Obligations or in the final official statement
or other similar document, including the financial statements included therein.
4. There shall have been no material adverse change in any information
submitted to the Insurer as a part of the application or subsequently
submitted to be a part of the application to the Insurer.
-2-
5. No event shall have occurred which would allow any underwriter or any
other purchaser of the Obligations not to be required to purchase the
Obligations at closing.
6. Ail documents executed in connection with the issuance of the
Obligations shall contain a provision which requires copies of any amendments
to such documents consented to by the Insurer to be sent to Standard & Poor's.
7. A Statement of Insurance satisfactory to the Insurer shall be printed
on the obligations.
8. Prior to the delivery of and payment for the Obligations, none of the
information or documents submitted as a part of the application to the Insurer
shall be determined to contain any untrue or misleading statement of a
material fact or fail to state a material fact required to be stated therein
or necessary in order to make the statements contained therein not misleading.
9. No material adverse change affecting any security for the Obligations
shall have occurred prior to the delivery of and payment for the Obligations.
10. This Commitment may be signed in counterpart by the parties hereto.
Dated this 26th day of April, 1990.
MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION
Assistant Secretary-- -
CITY OF
BEACH
: Gene Moore, Mayor