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04-16-91SpMtg APRIL 16, 1991 A Special Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor Thomas E. Lynch in the Commission Chambers at City Hall at 6:03 P.M., Tuesday, April 16, 1991. Roll call showed: Present - Commissioner Jay Alperin Commissioner William Andrews Commissioner Armand Mouw Commissioner David Randolph Mayor Thomas E. Lynch Absent - None Also present were - City Manager David T. Harden and City Attorney Jeffrey S. Kurtz Mayor Lynch called the meeting to order and announced this meeting has been called for the purpose of considering the following: The City Attorney requested that Item No. 1 be moved until later in the meeting. 2. Fourth of July Celebration. The Commission is to consider a Guaranty Agreement between the City and Dan Burns which guarantees funding from private citizens, up to $25,000, to pay for fireworks for the Fourth of July celebration. Mayor Lynch stated, during the budget meetings of last year, the Commission agreed that issues such as this should be funded by the private sector; however, he feels the City should continue to assume certain responsibilities such as liability, police protection and some of the cleanup services. Upon question, the City Manager stated this will be handled as in prior years, by soliciting proposals from other firms, and then be returned to the Commission with a recommendation that will include the type of indemnification clause acceptable to the City. Assistant City Attorney Susan Ruby advised direction is needed as to whether Dan Burns would enter into the agreement with the fire- works companies or with the City. Michael Weiner, representing Dan Burns, stated Mr. Burns has contacted the companies, but it was his original idea that the contract would be directed to the City. The Commission concurred to direct staff to continue the process of entering into an agreement with one of the fireworks compa- nies. 1. Award the Contract for the Sale of 1990 Water and Sewer Revenue Bond Issue/Resolution No. 29-91. Resolution No. 29-91, authorizing the sale of $22,585,000 in Water and Sewer Revenue Bonds, is before the Commission for consideration. The City Manager presented Resolution No. 29-91: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING AND SUPPLEMENTING RESOLUTIONS NO. 39-88, NO. 46-90, AND NO. 104-90, IN CONNECTION WITH OBTAINING BOND INSURANCE; AUTHORIZING THE NEGOTIATED SALE OF $8,000,000 WATER AND SEWER REVENUE BONDS, SERIES 1991 A, AND $14,585,000 WATER AND SEWER REVENUE BONDS, SERIES 1991 B, OF THE CITY OF DELRAY BEACH, FLORIDA, FOR THE PURPOSE OF FINANCING THE COST OF CERTAIN ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE CITY'S COMBINED PUBLIC UTILITY; PROVIDING FOR THE TERMS AND OTHER DETAILS OF SUCH BONDS; APPOINTING A PAYING AGENT AND A REGISTRAR FOR SAID BONDS; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT AND APPROVING, CONFIRMING AND RATIFYING THE PRIOR USE BY THE UNDERWRITERS OF THE PRELIMINARY OFFICIAL STATEMENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT TO EFFECT THE NEGOTIATED SALE OF THE BONDS; PROVIDING THAT THE PAYMENT OF SCHEDULED PRINCIPAL AND INTEREST ON THE BONDS BE GUARANTEED BY A BOND INSURANCE POLICY TO BE ISSUED BY AMBAC INDEMNITY CORPORATION; AUTHORIZING PROPER OFFICIALS OF THE CITY TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE IN CONNECTION WITH THE ISSUANCE, SALE AND DELIVERY OF SAID BONDS; AND PROVIDING AN EFFECTIVE DATE. (Copy of Resolution No. 29-91 is on file in the official Resolution Book) The City Attorney stated the resolution names Barnett Bank as Paying Agent and Registrar. At the present time, negotiations have not been finalized with Barnett Bank. He suggested the resolution be modified with respect to Section 5 and Section 6, authorizing the City Manager's office to enter into an agreement with either Barnett Bank, First Union or Midlantic, as opposed to exclusively naming Barnett Bank, because of the current problems the City is having with them. Upon question, the City Manager advised the City was able to get at least one-half of a rating better by going to New York and he feels it helped with the price received on the Bonds and, possibly, on the insurance. The Financial Advisor confirmed that the City did receive one of the lowest bids on insurance that he has seen during the past two years. Mayor Lynch questioned the purpose of separating into two Bond Series, one being for $8,000,000. The City Attorney stated $8,000,000 had originally been validated in bonds because that was the amount the City could afford to issue over the summer. However, as it turned out, -2- 4/16/91 it was unnecessary to issue those bonds. The City subsequently vali- dated another $50,000,000 and, due to the two validations, it was decided that it would be easier to explain if it were in Series A and Series B. Upon question, the City Manager advised they are twenty year bonds. Tom Huestis, Financial Advisor, Public Financial Management, Inc., gave a short report on the financing. Joseph Safford, Finance Director, commented that, when Smith-Barney was first retained by the City, they 5ad come in at an agreed-upon price of $15 per Bond. Upon negotiation with the City, they reduced it to $12.64 per Bond and he is very pleased with their team and the work they have done on this Bond Issue. Mr. Andrews moved for the adoption of Resolution No. 29-91, as amended, with respect to the Paying Agent and the Registrar, Seconded by Mr. Randolph. Upon roll call the Commission voted as follows: Mr. Mouw - Yes; Dr. Alperin - Yes; Mr. Andrews - Yes; Mr. Randolph - Yes; Mayor Lynch - Yes. Said motion passed with a 5 to 0 vote. 3. Presentation by CH2M Hill on Value Engineering Results. The Commission is to consider the presentation of the engineering results with regard to the Excess Lime Softening Project/Approval of Amendment to Service Authorization No. 5 for additional engineering services resulting from Value Engineering recommendations. John Curtis, representing CH2M Hill, stated the City requested a Value Engineering study at the 30% point of design and, now that they have arrived at that point, he would like to explain the reasons for entering into a Value Engineering process and some of the benefits. Bob Bergman, lead designer for this project, gave a detailed explanation and a slide presentation of the results showing the Commis- sion the amount of cost savings and the cost of the Value Engineering study. Mr. Mouw moved to approve the amendment to Service Authoriza- tion No. 5 for continued design with Option A, which includes the lime building, as recommended by CH2M Hill, seconded by Dr. Alperin. Upon roll call the Commission voted as follows: Dr. Alperin - Yes; Mr. Andrews - Yes; Mr. Randolph - Yes; Mayor Lynch - Yes; Mr. Mouw - Yes. Said motion passed with a 5 to 0 vote. 4. Civil Engineering Services Contract. The Commission is to consider the selection of additional firms and to authorize staff to negotiate and award contracts for Civil Engineering services. Mayor Lynch stated the Commission has selected the firm of Mock, Roos and Associates, Inc., and staff is recommending that they make a second and third choice in order to expedite the work needed to be done. -3- 4/16/91 Mr. Andrews moved for approval of the top three firms, seconded by Dr. Alperin. Upon roll call the Commission voted as follows: Mr. Andrews - Yes; Mr. Randolph - Yes; Mayor Lynch - Yes; Mr. Mouw - Yes; Dr. Alperin - Yes. Said motion passed with a 5 to 0 vote. Mayor Lynch declared the meeting adjourned at 7:05 P.M. ATTEST: The undersigned is the City Clerk of the City of Delray Beach and that the information provided herein is the minutes of the meeting of said City Commission of April 16, 1991, which minutes were formally approved and adopted by the City Commission on ~// /~. /~/ · ! -City - Cie~k / NOTE TO READER: If the minutes that you have received are not completed as indicated above, then this means that these are not the official minutes of City Commission. They will become the official minutes only after they have been reviewed and approved which may involve some amendments, additions, or deletions to the minutes as set forth above. -4- 4/16/91