Minutes 10-09-84MINUTES OF THE SPECIAL CITY COUNCIL MEETING HELD AT
CITY HALL, BOYNTON BEACH, FLORIDA, OCTOBER 9, 1984
PRESENT
Carl Zimmerman, Mayor
Robert Ferrell, Vice Mayor
James R. Warnke, Councilman
Peter L. Cheney, City Manager
Betty S. Boroni, City Clerk
James W. Vance, City Attorney
Mayor Zimmerman called the meeting to order at 11:05 A.M.
and announced it was a special meeting in reference to
refinancing the golf course bonds.
Announcements
Mayor Zimmerman announced that a certificate of award of
financial reporting achievement for our Chief Accountant,
Mary Munro, was received in the mail today. He stated that
we are very proud of this and it shows our Finance Depart-
ment is on the ball. Mr. Cheney added that this is really
an award to the city and it is the fifth year in a row we
have received it. It is appropriate to be received in
today's mail.
Councilman Warnke announced that Councilman Sam Wright and
Councilman Nick Cassandra were unable to attend this meet-
ing.
Proposed Resolution No. 84-XXX - Re: Amending Resolution
No. 84-TTT - Recreational Facilities Revenue Bonds
Mr. Vance explained that just some basic language changes
were made to help the Finance Department and then read
proposed Resolution No. 84-XXX by title:
A RESOLUTION AMENDING RESOLUTION NO. 84-TTT, ADOPTED
BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH,
FLORIDA, ON SEPTEMBER 5, 1984, AUTHORIZING THE ISSUANCE
OF NOT EXCEEDING $4,000,000 RECREATIONAL FACILITIES
REVENUE BONDS TO 5~KE CERTAIN TECHNICAL CORRECTIONS
ASSOCIATED WITH THE REQUIREMENT THAT ALL BONDS BE IN
REGISTERED FORM; TO CLARIFY THE FUNDING AND RESTORATION
REQUIREMENTS FOR THE RESERVE ACCOUNT; TO ADD REFERENCES
TO THE PLEDGE OF DESIGNATED REVENUES; AND PROVIDING AN
EFFECTIVE DATE.
Councilman Warnke moved adoption of Resolution No. 84-XXX,
seconded by Vice Mayor Ferrell. Mrs. Boroni took a roll
call vote on the motion as follows:
Councilman Warnke - Aye
Mayor Zimmerman - Aye
Vice ~yor Ferrell - Aye
Motion carried 3-0.
SPECIAL CITY COUNCIL MEETING
BOYNTON BEACH, FLORIDA
OCTOBER 9, 1984
Approve Negotiated Sale Disclosure Statement
Mr. Schneider informed the Council this is not ready yet,
but can be done at a subsequent meeting. Mr. Cheney ques-
tioned when this would be received and Mr. Schneider re-
plied in time for the next regularly scheduled Council
meeting on October 16.
Proposed Resolution No. 84-YYY - Re: Authorize the issuance
of $4,000,000 - Recreational Facilities Revenue Bonds,
includes Escrow Deposit Agreement, Bond Purchase Contract
and Official Statement
Mr. Vance read proposed Resolution No. 84-YYY by title:
A RESOLUTION AUTHORIZING THE ISSUANCE OF $4,000,000
AGGREGATE PRINCIPAL AMOUNT OF CITY OF BOYNTON BEACH,
FLORIDA (PALM BEACH COUNTY, FLORIDA) RECREATIONAL
FACILITIES REVENUE BONDS, SERIES 1984; FINDING THE
NECESSITY FOR A NEGOTIATED SALE OF SUCH BONDS; APPROV-
ING THE OFFICIAL STATEMENT IN CONNECTION WITH SUCH
BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND
PURCHASE CONTRACT TO BE EXECUTED BY AND BETWEEN THE
CITY AND THE UNDERWRITER OF SUCH BONDS AND AWARDING THE
SERIES 1984 BONDS; APPLYING THE SERIES 1984 BOND PROCEEDS
AND OTHER MONEYS; FIXING CERTAIN DETAILS OF SUCH BONDS;
APPROVING AN ESCROW DEPOSIT AGREEMENT AND APPOINTING AN
ESCROW AGENT, ALL IN CONNECTION WITH THE ISSUANCE AND
SALE BY THE CITY'OF SUCH BONDS; PROVIDING FOR THE
DISPOSITION OF FUNDS IN EXISTING FUNDS AND ACCOUNTS;
RATIFYING CERTAI~ ACTIONS HE~OFORE TAKEN BY THE CITY
COUNCIL; AND PROVIDING AN EFFECTIVE DATE.
Vice Mayor Ferrell made a motion to adopt Resolution No.
84-YYY, seconded by Councilman Warnke. Under discussion,
Mr. Vance advised on page 2, Resolution No. 84-XXX should
be filled in. Mr. Schneider informed the Council that
upon adoption of this resolution, they will be in a posi-
tion to go into the bond purchase agreement. He referred
to getting this done by November 1 and then outlined the
conditions of the purchase. He added they are submitting
their good faith check in the amount of $40,000 to be held
uncashed by the citY until delivery and payment for the
bonds at closing and it will then be returned to the under-
writer. Me read comparable issues to evidence the aDDro-
priateness of this b~d.~ He pointed out this goes fr~ the
rate of 7.25 to 10.125 and the bonds are being well received
and they are pleased with the response. The financial
benefits to the city amount to over $224,000 by November 1.
- 2 -
SPECIAL CITY COUNCIL MEETING
BOYNTON BEACH, FLORIDA
OCTOBER 9, 1984
Mr. Schneider continued with expressing appreciation to the
COuncil and city staff for getting this done in a short time
frame. He added that all expenses are permitted and fully
recovered. The closing arrangements have been made to close
this deal in New York on October 28-29.
Councilman Warnke clarified that the extra profits resulting
from this sale will be earmarked for the golf course and
Mr. Cheney agreed and explained abOut two extra things we
would like to do with furnishing the clubhouse and building
an addition to the maintenance barn. Beyond that, this
money will go into the reserve account. None of the money
will be budgeted into operating.
Councilman Warnke added there would also be an additional
$20,0'00 per year and Mr. Cheney agreed with the interest
earned.
Mrs. Boroni then took a roll call vote on the motion as
follows:
Councilman Warnke - Aye
Mayor Zimmerman - Aye
Vice Mayor Ferrell - Aye
Motion carried 3-0.
Mr. Cheney referred to signatures being needed and ~.
Schneider agreed signatures are needed on the bond purchase
agreement and explained there was also a rider covering
routine additions being typ~ to be attached
Adjournment
Mayor Zimmerman ascertained there was no further business
and declared the meeting ajourned at 11:20 A. M.
ATTEST:
CITY OF BOYNTON BEACH
~-~~~~y~O'/,~ice Mayol
f- - City Cl~rk
~ RecOrding Secr~tary - 3 -
Councilman
Councilman
October 9, 1984
City of Boynton Beach
120 Northeast Second Avenue
Boynton Beach, Florida 33435
Re:
$4,000,000 City of Boynton Beach, Florida
Recreational Facilities Revenue Bonds, Series 1984
Dear Sirs:
The undersigned (the "Underwriter") has agreed to
purchase from the City of Boynton Beach (the "City") its
recreational facilities revenue bonds referred to above (the
"Bonds") in accordance with the terms and provisions of a Bond
Purchase Contract between the City and the Underwriter (the
"Purchase Contract"), which embodies the negotiations with
respect thereto.
The purpose of this letter is to furnish, pursuant to
the provisions of subsection (4) of Section 218.385, Florida
Statutes, as amended, certain information with respect to the
agreements made for the purchase and sale of the Bonds. We
represent to you as follows:
Se
The nature and estimated amounts of expenses to
be incurred by the Underwriter in connection with
the issuance and sale of the Bonds are as follows:
Expenses (includes Underwriter's counsel
fee, travel, advertising, MSRB rule making,
CUSIP numbers, interest on Federal funds,
munifacts) ................. $17,382.40
No person including any "finder" as defined in
Section 218.386, of the Florida Statutes, as
amended, has entered into any understanding with
the Underwriter for any paid or promised
compensation or valuable consideration directly
or indirectly, expressly or implied, to act
solely as an intermediary between you and the
Underwriter or to exercise or attempt to exercise
any influence to effect any transaction in the
purchase of the Bonds.
Ce
de
se
The underwriting spread expected to be realized
by the Underwriter is $108,000.00. This amount
includes the expenses listed in paragraph (a)
above, a management fee of $30,000.00 expected to
be realized by the Underwriter and a total take
down, associated with the Bonds, of $60,617.60.
No fee, bonus or other compensation will be paid
by the Underwriter in connection with the issue
of the Bonds to any person not regularly employed
or retained by the Underwriter (including any
"finder" as defined in Section 218.386, Florida
Statutes, as amended).
The name and address of the Underwriter are as
follows:
Arch W. Roberts & Co.
3191 Maguire Blvd., Suite 210
Orlando, Florida 32814
The Underwriter understands that you require no
other disclosures with respect to an issue of
bonds of this type.
Very truly yours,
ARCH W.~OBERTS & CO. /