Minutes 06-29-92HINUTES OF THE SPECIAL CITY COHHISSION #EETING HELD IN COH14ISSION CHN4BERS,
CITY HALL, BOYNTON BEACH, FLORIDA, ON #ONDAY, JUNE 29, 1992, AT 5:30 P. 14.
PRESENT
Arline Weiner, Mayor
Lynne Matson, Vice Mayor
JoseAguila, Commissioner (Arrived late)
Edward Harmening, Commissioner
Robert Walshak, Commissioner
J. Scott Miller, City Manager
James Cherof, City Attorney
Sue Kruse, City Clerk
CALLTO ORDER
Mayor Weiner called the special meeting to order at 5:30 P. M. to consider
approval of bond award resolution and to award and sign bond purchase contract
and interest rate swap agreement for Utility System Revenue Bonds, Series 1992.
Michael Hole and Mark Raymond of Smith Barney were present.
Mr. Hole briefly summarized how the bonds did, quoting a figure of over $1.6
million dollars of savings. The final size turned out to be $60,255,000, which
provides $2.5 million for new money needs, and depletes all the outstanding uti-
lity debt which allows the new resolution to go into place with all the new
covenants. The Costs of Issuance which was estimated at .16% went up slightly
and the Underwriters' Discount estimated at 1.08% came down to 1.03%. The final
budget was 1.20%. The insurance premium was 26 basis points which translates to
a very aggressive premium, much lower than the premium was in 1990, which he
felt was a good reflection on the quality of the utility. The utility received
an A rating from Moodys and an A+ from Standard and Poors. Mr. Hole recom-
mended and requested the adoption of the supplemental resolution to the bond
resolution.
In response to Commissioner Aguila, Mr. Hole advised that the Swap Agreement was
not used. He said the market for the Swap was not there, the incremental
saviings was very minimal, and Scott Miller, Grady Swann and Carrie Parker made a
joint decision that the incremental savings was not worthwhile going through
what the Swap would involve.
Attorney Cherof read Proposed Resolution No. R92-102 by title only:
A SERIES RESOLUTION PROVIDING FOR THE ISSUANCE OF $60,255,000 AGGREGATE
PRINCIPAL AMOUNT OF UTILITY SYSTEM REVENUE BONDS, SERIES 1992; FIXING AND
DETERMINING THE PRINCIPAL AMOUNT, INTEREST RATES, MATURITY DATES,
REDEMPTION PROVISIONS AND OTHER DETAILS OF SAID BONDS; MAKING CERTAIN
REVISIONS TO RESOLUTION NO. R92-96; FINDING NECESSITY FOR A NEGOTIATED SALE
OF SUCH BONDS; RATIFYING THE FORM AND USE OF A PRELIMINARY OFFICIAL
STATEMENT AND AUTHORIZING THE PREPARATION, APPROVAL AND EXECUTION OF A
FINAL OFFICIAL STATEMENT IN CONNECTION WITH SUCH BONDS; AUTHORIZING THE
EXECUTION OF A BOND PURCHASE AGREEMENT, A BOND REGISTRAR AGREEMENT, A
FORWARD PURCHASE AGREEMENT AND AN ESCROW DEPOSIT AGREEMENT; PROVIDING FOR
THE APPLICATION OF THE PROCEEDS OF SAID BONDS AND CERTAIN OTHER MONEYS;
DIRECTING THE REFUNDING OF THE CITY'S-OUTSTANDING WATER AND SEWER UTILITY
REVENUE BONDS; AUTHORIZING THE PURCHASE OF A BOND INSURANCE POLICY AND
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HINUTE$ - SPECIAL CITY COHHIS$ION #EETING
BOYNTON BEACH, FLORIDA
~UHE 29, 1992
MAKING CERTAIN COVENANTS IN CONNECTION THEREWITH; DESIGNATING THE BOND
REGISTRAR FOR SAID BONDS; CONTAINING CERTAIN AUTHORIZATIONS AND OTHER
PROVISIONS; AND PROVIDING AN EFFECTIVE DATE.
In response to Mayor Weiner, Mr. Raymond explained that the bond insurance com-
pany,wanted to place a restriction on the days of the year during which changes
could occur and a provision was added that withdrawals can only be made from the
General Reserve Account on the day after a day on which principal or principal
and interest had been paid on the bonds in full. They also requested that "net
revenues" include net of debt service, net of any deposits to the reserve
account under the resolution, net of deposits to the renewal and improvement
accoUnt and payment of any debt service on subordinate debt secured by system
revenues.
Commissioner Harmening moved the adopt*ion of Resolution R92-102. Vice Mayor
MatsOn seconded the motion which carried 5-0.
AO,.IOURNHEHT
There being no further business, Vice Mayor Matson moved to adjourn at 5:45
P. Mi. Commissioner Aguila seconded the motion which carried 5-0.
THE CITY OF BOYNTON BEACH
ATTEST:
CitY/ Clerk
RecOrding Secretary
(One Tape)
Mayor
Commissioner
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