Minutes 10-10-90 MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN
COMMISSION CPL~MBERS, CITY HALL, BOYNTON BEACH, FLORIDA,
WEDNESDAY, OCTOBER 10, 1990 AT 5:00 P.M.
PRESENT
Gene Moore, Mayor
Lee Wische, Vice Mayor
Lillian Artis, Commissioner
(Arrived late)
Robert Olenik, Commissioner
Arline Weiner, Commissioner
J. Scott Miller,
City Manager
Sue Kruse, City Clerk
Jim Cherof,
City Attorney
Mayor Moore called the meeting to order at 5:05 P.M.
3. Ratify Approval of Consent Agenda from October 3,
Regular Meeting
1990
The City Manager commented that the Commission had removed a
bill from Miller, Meier, Kenyon, Cooper, Inc. in the amount
of $40,544.11 from the list of approved bills.
Commissioner Weiner moved to approve the Consent Agenda from
the October 3, 1990 regular meeting as amended.
Commissioner Olenik seconded the motion which carried 4-0.
Proposed Resolution No. 90-BBBBBBB
Re: Ratification of South Central Regional Wastewater
Treatment & Disposal Board action of October 9, 1990
Reference Amending Operating Budget for FY 90-91
City Attorney Cherof read proposed Resolution No. 90-BBBBBBB
by caption only:
"A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
BOYNTON BEACH, FLORIDA, RATIFYING THE SOUTH CENTRAL
REGIONAL WASTEWATER TREATMENT AND DISPOSAL BOARD ACTION
OF OCTOBER 9, 1990, ADOPTING AN AMENDED OPERATING BUbGET
FOR FISCAL YEAR 1990-1991; AND PROVIDING AN EFFECTIVE
DATE."
Vice Mayor Wische moved to ratify the action of October 9,
1990. Commissioner Olenik seconded the motion which carried
3-1. Commissioner Weiner voted against the motion.
4. Proposed Resolution No. 90-AAAAAAA
Re: Agreement Between the City and Tradewinds
Corporation regarding 3.5 acre park site
Development
This item was stricken from the Agenda because arrangements
were not finalized on the Tradewinds Agreement.
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MINUTES - SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA OCTOBER 10, 1990
2. Approval of Up'grade for AS400 Computer System
(Sole Source Supplier)
City Manager Miller explained the need to upgrade the AS400
computer system. The system is currently at about 95% capa-
city and additional memory space is needed. $55,646.00 will
be borrowed from the Utility Fund for a period of three
years to pay for this upgrade. Mr. Miller pointed out the
City currently has an IBM system and has to stay with IBM to
remain compatible. Mr. Miller indicated he would have a
Promissory Note drawn up as well as a payment schedule.
Commissioner Weiner asked if there was any way the City
could avoid this step at this time. Specific remarks were
made by Michael Munro, Director of Data Processing, relative
to the load on the system currently from numerous depart-
ments. Mr. Munro pointed out this upgrade was included in
his current budget.
Commissioner Olenik moved to approve the upgrade in the
AS400 computer system, financing this through the Utility
Fund. Vice Mayor Wische seconded the motion which carried
4-0.
Proposed Resolution No. 90-ZZZZZZ
Re: Providing for the Issuance of Water and Sewer
Utility Revenue Bonds, Series 1990
Mr. Michael Hole of Smith, Barney stated he was present to
consummate the sale of the Series 1990 Boynton Beach Utility
Bonds. The Commission was being asked to consider adopting
the Award Resolution with its numerous attachments. This
spelled out the exact terms of the bonds, including the
interest rates, purchase price and other features. The
interest rates on the bonds range from 6.1% on the early
maturities to 7.85% on the Capital Appreciation Bonds. City
employees purchased approximately $60,000 in bonds.
Relative to the Sources and Uses of the Bond Proceeds, Mr.
Hole pointed out the size of the bond issue turned out to be
$33,434,415. One new item in the material which didn't
appear previously dealt with the Original Issue Discount
which amounted to $476,696. Mr. Hole explained the signifi-
cance of this figure and noted this discount off the par
amount is passed onto the purchasers. The end result is a
lower yield to the City.
The Construction Fund amount of $29,693,000 had not changed.
The Reserve Fund was $2,451,555. The Credit Enhancement
Fees and Expenses totalled $311,648. The Cost of Issuance
was $501,516 (1.5% of the bond issue). A Closing Statement
breaking down the 1.5% was made available. The Bond
Insurance agent was AMEAC Indemnity Corporation (the low
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MINUTES - SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA OCTOBER 10, 1990
bidder) and the premium for the Bond Insurance was $283,000.
The average bond yield is 7.63%. (Grady Swann, Finance
Director will have to rebate any investments above that
yield to the IRS.) Other technical financial remarks were
made.
Mr. Hole explained many people bought the bonds. About 10%
to 15% of the bond issue was left unaccounted for. Smith,
Barney underwrote the balance. In the next two weeks if
there were any purchasers that might back out, Smith, Barney
had committed itself to buy all of the bonds.
Commissioner Artis arrived at 5:15 P.M.
Discussion took place regarding who would be handling the
Construction Fund. Mr. Hole indicated Grady Swann, Finance
Director would be managing that money. Mr. Swann stated he
would be handling it through the ASPA.
A graph was provided which illustrated who purchased the
bonds, whether institutions such as insurance companies or
banks or retail purchasers. A different chart illustrated
percentages purchased within Florida as compared with
out-of-State purchases. Mr. Hole explained the significance
of the figures.
Bond Counsel Mark Raymond of Moyle, Flanigan explained the
Resolution distributed (fourth draft) was esentially iden-
tical to the Resolution reviewed by the Commission last
week, except it now contained the financial details of the
bonds and some additional covenants that were necessary in
order to sell certain maturities of the bonds. Mr. Raymond
did not consider the additional covenants to be material in
nature. Mr. Raymond stated the Resolution was in compliance
with necessary legal provisions and he recommended adoption.
City Attorney Cherof read proposed Resolution No. 90-ZZZZZZ
by caption only:
"A SERIES RESOLUTION PROVIDING FOR THE ISSUANCE OF
$33,434,415 AGGREGATE PRINCIPAL AMOUNT OF WATER AND SEWER
UTILITY REVENUE BONDS, SERIES 1990, OF THE CITY OF
BOYNTON BEACH, FLORIDA, TO BE ISSUED AS ADDITIONAL BONDS
UNDER RESOLUTION NO. 85-YYY; FIXING AND DETERMINING THE
PRINCIPAL AMOUNT, INTEREST RATES, MATURITY DATE,
REDEMPTION PROVISIONS AND OTHER DETAILS OF SAID BONDS;
MAKING CERTAIN REVISIONS TO RESOLUTION NO. 85-YYY;
FINDING NECESSITY FOR A NEGOTIATED SALE OF SUCH BONDS;
APPROVING AND AUTHORIZING THE DISTRIBUTION OF A
PRELIMINARY AND FINAL OFFICIAL STATEMENT IN CONNECTION
WITH SUCH BONDS; AUTHORIZING THE EXECUTION AND DELIVERY
OF A BOND PURCHASE AGREEMENT TO BE EXECUTED BY AND
BETWEEN THE CITY AND SMITH BARNEY, HARRIS UPHAM & CO.
MINUTES - SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
OCTOBER 10, 1990
INCORPORATED, ALEX BROWN & SONS INCORPORATED, SMITH,
MITCHELL & ASSOCIATES, INC. AND SOUTHEASTERN CAPITAL
GROUP, INC.; PROVIDING FOR THE APPLICATION OF THE
PROCEEDS RECEIVED FROM THE SALE OF SAID BONDS;
AUTHORIZING THE PURCHASE OF A BOND INSURANCE POLICY AND
MAKING CERTAIN COVENANTS IN CONNECTION THEREWITH;
DESIGNATING THE BOND REGISTRAR AND PAYING AGENT FOR SAID
BONDS; PROVIDING A COVENANT AS TO COMPLIANCE WITH FEDERAL
TAX LAWS; CONTAINING CERTAIN AUTHORIZATIONS AND OTHER
PROVISIONS; AND PROVIDING AN EFFECTIVE DATE."
Commissioner Olenik moved for the adoption of proposed
Resolution No. 90-ZZZZZZ. Vice Mayor Wische seconded the
motion which carried 5-0.
Attorney Raymond explained the closing would be a two day
event. All documents would be signed on or before October
23, 1990. On October 24, 1990 money would move. The
signing times would be scheduled with the necessary offi-
cials.
City Commission execution of six original documents took
place.
Remarks were made by Peter Mazzella, Assistant to the
Director of Utilities about the status of the construction
plans for the new plant. The City envisioned beginning
construction during the first quarter of 1991.
ADJOURNMENT
There being no further business, the meeting adjourned at
5:30 P.M.
BEACH
Mayor
Vice Mayor
ATTEST: C~foner
Ci~)~ Clerk ' ~ Commissioner-
Recording Secretary
(One Tape) '
Commissioner
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