05-24-89SpMtg MAY 24, 1989
A Special Meeting of the City Commission of the City of Delray
Beach, Florida, was called to order by Mayor Doak S. Campbell in the
Commission Chambers at City Hall at 5:32 P.M., Wednesday, May 24, 1989.
Roll call showed:
Present - Commissioner Patricia Brainerd
Commissioner Mary McCarty
Mayor Doak S. Campbell
Absent - Commissioner William Andrews
Commissioner Jimmy Weatherspoon
Also present were - City Manager Walter O. Barry and
City Attorney Herbert W.A. Thiele.
Mayor Campbell called the meeting to order and announced that
this meeting has been called for (1) Award of bids for short term
financing for $4.3 million dollars.
Dave Huddleston, Finance Director, stated in front of each
Commissioner there is a copy of a memorandum from Stanley Ross, the
City's financial advisor, along with his recommendation.
Stanley Ross, financial advisor from Dean Witter Reynolds,
stated that he will briefly summarize his memo relative to the bids
received. On May 6, 1989, Notice of Sale was sent for advertising and
bid packages were mailed to 29 prospective bidders. Bids were received
and opened at 11:00 A.M. today and the summary is attached to the memo.
There were no bids received for the note option. The Notice of Sale
provided for three options; one for the note, and the other two for a
line of credit with either a fixed or variable rate. Four bids were
received for the line of credit fixed rate option and five bids for the
variable rate option. The lowest net interest cost to the City was a
bid from Midlantic National Bank with a fixed rate option of 7.125
percent. The second lowest rate was a fixed rate option from Barnett
Bank of 7.27 percent, Sun Bank was 7.49 percent and Citizens Southern
was 7.75 percent. The lowest variable rate option was 7.24 percent by
Barnett Bank and, after analyzing each of the bids, they felt that none
of them would be as favorable as the fixed rate from Midlantic.
Mr. Ross commented there was a provision made for a discount or
fees and the Midlantic bid was no fee. In the event that the bonds were
to be called earlier, there will be no fee to absorb over the period of
the loan.
Ms. McCarty moved to accept the recommendation and award the
bid to Midlantic National Bank at a variable rate of 7.125 percent,
subject to negotiation of the contract, seconded by Ms. Brainerd. Upon
roll call the Commission voted as follows: Ms. Brainerd - Yes; Ms.
McCarty - Yes; Mayor Campbell - Yes. Said motion passed with a 3 to 0
vote.
Mayor Campbell declared the meeting adjourned at 5:35 P.M.
CitY' Clerk
ATTE S T:
MAYOR
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 May 24, 1989, which minutes were formally
approved and adopted by the City Commission on ~ //./~ .
-' / Cit~ Clerk
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.
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