05-28-87SpMtg May 28, 1987
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 12:07 P.M., Thursday, May 28, 1987.
Roll call showed:
Present - Commissioner Richard J. Dougherty
Commissioner Marie Horenburger
Commissioner Mary McCarty
Mayor Doak S. Campbell
Absent - Commissioner Jimmy Weatherspoon
Also present were - City Manager James L. Pennington and City Attorney Herbert W.A. Thiele.
Mayor Campbell called the meeting to order and announced that
this meeting has been called for the purpose of (1) considering a
pricing offer by Bond Underwriters for a $10,500,000 Utility Tax Bond
Issue.
1. The caption of Resolution No. 22-87 is as follows:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY
BEACH, FLORIDA, AUTHORIZING THE NEGOTIATED SALE OF
$10,500,000 UTILITIES TAX REVENUE BONDS, SERIES 1987, OF
THE CITY OF DELRAY BEACH, FLORIDA; APPROVING THE FORM OF
AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN OFFICIAL
STATEMENT; AUTHORIZING THE EXECUTION AND DELIVERY OF A
CONTRACT OF PURCHASE; PROVIDING FOR BOND INSURANCE;
AUTHORIZING PROPER OFFICIALS 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 FOR THIS RESOLUTION.
(Copy of Resolution No. 22-87 is on file in the official
Resolution Book)
The City Attorney stated that, at this time, by adopting Reso-
lution No. 22-87, the Commission would be approving the purchase con-
tract that has been negotiated and reviewed by their office. In addi-
tion, they will be approving the Bond Counsel, the Underwriters and
their Counsel, the Official statement, and a letter from the financial
advisers, Dean Witter Reynolds, who are recommending the sale by nego-
tiated sale and the disclosure statement by the Underwriters who would
be the purchasers. The Commission is obviously interested in the
Financial data with regard to the Bond Issue, so he feels it is appro-
priate to hear from the Underwriters and Mr. Ross, who can supply those
figures.
Stanley Ross, Financial Consultant from Dean Witter Reynolds,
stated the reason for a negotiated sale today is that this is an oppor-
tune time to do the sale. It was previously planned for last week but,
due to a rise in rates, it was postponed. He stated the Commission has
been furnished a copy of last week's sales for the cities of Pompano
Beach, Clearwater and Ft. Lauderdale and outlined each one. After
monitoring the sale for the past three days, there has been an offer
from the Underwriters today at the rate of 7.89 compared with the 8.37,
with a spread of $10.98. This is in line with the quotations from the
dealers that submitted proposals, at which time it was $11.00. There
was a variable spread in the quotation from Prudential Bache and Mat-
thews & Wright. Dean Witter Reynolds feels it is a good proposal, the
spread is right, the rate is right and it is recommended that the
Commission accept it.
The City Attorney advised the motion to approve Resolution No.
22-87 would incorporate those rates as quoted by Mr. Ross, along with
those other documents.
Mrs. Horenburger moved to approve Resolution No. 22-87 with the
rates quoted by Mr. Ross along with the documents, seconded by Mrs.
McCarty. Upon roll call the Commission voted as follows: Mr. Dougherty
- Yes; Mrs. Horenburger - Yes; Mrs. McCarty - Yes; Mayor Campbell - Yes.
Said motion passed with a 4 to 0 vote.
Before roll call the following discussion was had:
Mr. Dougherty questioned if Mr. Ross could provide some compa-
rability on redemption premiums on the other issues vs this issue. Mr.
Ross stated he feels these are more favorable. In this case they were
able to do exactly what they did at Pompano. Rather than a ten year
call, they were able to get an eight year redemption provision, so these
bonds will be called in June 1, 1995, at a two percent premium.
At this point the roll was called to the motion.
Mayor Campbell declared the meeting adjourned at 12:17 P.M.
ATTEST:
.-'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 which minutes were formally approved and
adopted by the City Commission on ~q~_~ ~/~F~
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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