Minutes 05-21-90MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN
COMMISSION CHAMBERS, CiTY HALL, BOYNTON BEACH, FLORIDA
MONDAY, MAY 21, 1990 AT 5:00 P.M.
PRESENT
Gene Moore, Mayor
Lee Wische, Vice Mayor
Lillian Artis, Commissioner
Robert Olenik, Jr., Commissioner
Arline Weiner, Commissioner
J. Scott Miller,
City Manager
Peggy Boulle, Deputy Clerk
James Cherof,
City Attorney
Mayor Moore called the meeting to order at 5:00 P.M.
The purpose of this special meeting was to adopt the
~nabling Resolution for the issuance of the Public Service
Tax Revenue Bonds - 1990 Series.
~ayor Moore indicated he had added a second item to the
~genda, namely "Consider replacement of Commissioner Olenik
per his resignation of May 15, 1990." The Mayor wished to
~trike this item based on the fact that Commissioner Olenik
~ad indicated he did not intend to resign.
~ommissioner Olenik moved to adopt the amended Agenda. Vice
ayor Wische seconded the motion which carried 5-0.
Mark Raymond, Bond Counsel explained Resolution No. 90-FFFF
Was identical to the Resolution distributed at the May 15,
$990 Commission meeting, with the exception of the change
~eflecting the City would only be paying $6,500 of the
!ating fee. Sun Bank will also be paying $6,500.
~ity Attorney Cherof read proposed Resolution No. 90-FFFF by
title only:
"A SUPPLEMENTAL RESOLUTION PROVIDING FOR THE ISSUANCE OF
$9,215,000 AGGREGATE PRINCIPAL AMOUNT OF PUBLIC SERVICE
TAX REVENUE BONDS, SERIES 1990, OF THE CITY OF BOYNTON
BEACH, FLORIDA, TO BE ISSUED AS ADDITIONAL BONDS UNDER
RESOLUTION NO. 86-EEEE; FIXING AND DETERMINING THE
PRINCIPAL AMOUNT, INTEREST RATES, MATURITY DATES,
REDEMPTION PROVISIONS AND OTHER DETAILS OF SAID BONDS;
FINDING THE NECESSITY FOR A NEGOTIATED SALE OF SUCH
BONDS; APPROVING AND AUTHORIZING THE SALE OF SUCH BONDS;
APPROVING AND AUTHORIZING THE DISTRIBUTION OF A PLACEMENT
MEMORANDUM IN CONNECTION WITH SUCH BONDS; AUTHORIZING THE
EXECUTION AND DELIVERY OF A BOND PLACEMENT AGREEMENT TO
BE EXECUTED BY AND BETWEEN THE CITY AND TRUST COMPANY
BANK; PROVIDING FOR THE APPLICATION OF THE PROCEEDS
RECEIVED FROM THE SALE OF SAID BONDS; AUTHORIZING THE
PURCHASE OF A BOND INSURANCE POLICY; DESIGNATING THE BOND
REGISTRAR FOR SAID BONDS; PROVIDING A COVENANT AS TO
COMPLIANCE WITH FEDERAL TAX LAWS; AND PROVIDING AN
EFFECTIVE DATE."
MINUTES - SPECIAL CITY COMMISSION MEETING
BOYI~TON BEACH, FLORIDA
MAY 21, 1990
Vice Mayor Wische moved to approve proposed Resolution No.
90-FFFF. Commissioner Artis seconded the motion.
Commissioner Olenik noted the City Manager wrote a memoran-
dum responding to a Sun Trust memorandum relative to the
indemnification. He asked if the City was now satisfied
~ith the terminology. City Manager Miller responded it had
been changed to the satisfaction of Mr. Raymond, Mr. Cherof
and himself.
i t'
~ela lye to the $1,000,000 insurance reimbursement, it was
~oted the bond reserve requirement was $893,500 which repre-
sented the maximum debt service in any year on the bonds.
~ee City was responsible for covering 100% of the maximum
bt service. This would be used to pay the last
~nstallment on the bonds.
~eference was made to Grady Swann, Finance Director's
Memorandum No. 90-049 to the City Manager which indicated if
pproved, the $1,000,000 insurance reimbursement could go
nto a reserve account along with the $893,500. The City
Was selling bonds for the stipulation and settlement amount
Without regard to the $1,000,000 insurance receipt.
layor Moore stated the City had hoped to get the $!,000,000
nd then the bond issue would have only been $7,000,000.
owever, this was not possible. The Mayor recommended if
~he City doesn't receive the $1,000,000 within the next ten
ays, the City sue the bonding company. The $1,000,000
ould be put in an investment fund which would hopefully
alance off the interest on the bonds. The City might even
~tand to make a few dollars. It would go into a reserve
~und.
r. Swann explained the $1,000,000 and the $893,500 would
ot be a combination of one reserve account. The only
~mount in reserve would be the $893,500. The $1,000,000
~ould be invested, hopefully to be able to make up some of
~he interest.
The Mayor hoped the press would clearly understand this.
~11 requirements of the settlement had been met. The Mayor
~ad checked with several underwriters who felt Sun Bank
~ad done an excellent job. Mayor Moore noted reserves had
leen built in so the City would not have to tap the tax
unds for next year. The Mayor did not feel the taxpayers
ad been "boxed in" as one press account had indicated.
~ommissioner Olenik asked if the $1,000,000 insurance reim-
qursement could be put into the General Fund. The City
anager and Mr. Swarm indicated it could be. It was at the
ommisSion's discretion. That had only been a suggestion
2
MINUTES - SPECIAL CITY COM~4ISSION MEETING
BOYNTON BEACH, FLORIDA
MAY 21, 1990
based on the amount the City could possibly offset the debt
service on the bond issue by the investment earnings. Mr.
Swann stated he was not talking about using any principal to
pay back bonds. The Mayor thought that was a decision the
Commission would have to make at budget time. Mr. Raymond
interjected no decision had been made in connection with
that money. The bond issue stood alone. When the
$1,000,000 came in, the Commission could put it where they
chose. The City Manager was asked to bring this subject up
at the budget workshops. Other remarks were made.
~t was noted the Mayor had signed the closing documents.
The City would be receiving $9,215,000, less Sun Trust's
~ee. The money would be received from Sun Trust on Tuesday,
May 22, 1990. The City would then pay off Sun Bank on
Tuesday, May 22, 1990. Tradewinds would be wired their
~oney on Thursday, May 24, 1990. The interest rate averaged
Over 20 years on the bonds was 7.33%.
The Mayor called for a vote on the motion to approve
Resolution No. 90-FFFF. The motion carried 5-0.
ADJOURNMENT
The meeting properly adjourned
ATTEST:
Cit~ Clerk
Recording Secretary
(one Tape)
at 5:~.
Vice Mayor
~~Der
Commissioner
Commissioner
3