07-22-81SpMtg 08'7
JULY 22, 1981
A Special Meeting of the City Council of the City of Delray
Beach, Florida, was held in the Council Chambers at 5:00 P.M.,
Wednesday, July 22, 1981, with Mayor Leon M. Weekes presiding, Acting
City Manager Elizabeth Arnau, City Attorney Roger Saberson and Council
Members James H. Scheifley, Charlotte G. Durante (arrived at 5:05 P.M.),
Leo A. Blair and Malcolm T. Bird present.
Mayor Weekes called the meeting to order and announced that this
meeting has been called for the purpose of (1) considering general obli-
gation bond issues for parks and recreation land acquisition and develop-
ment; (2) considering passage of Resolution No. 61-81 expressing opposi-
tion to the withdrawal of the City of Boca Raton from the Southeastern
Palm Beach County Hospital District; and (3) considering settlement of
the Wenton Developers Case. Mayor Weekes stated that in the interest
of time Council will discuss these items in reverse order.
3. The City Attorney reported that he has had conversation with each
~ the Council members concerning the settlement of the Wenton Developers
Case. The case was settled today for a total of $30,500, of which the
City's contribution was $17,500 and the insurance company's contribution
was $13,000. The purpose fOr this item being on the agenda is for Council
to formally confirm the settlement.
Mr. Bird moved for settlement of the Wenton Developers Case in the
amount of $17,500 with funds to come from the Self Insured Retention
Fund, seconded by Mr. Blair. Upon roll call Council voted as follows:
Mr. Scheifley - Yes; Mr. Blair - Yes; Mr. Bird - Yes; Mayor Weekes - Yes.
Said motion passed with a 4 to 0 vote.
Mrs. Durante arrived at this time.
2. Mayor Weekes presented Resolution No. 61-81:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DELRAY BEACH, FLORIDA, EXPRESSING ITS OPPOSITION
TO THE WITHDRAWAL OF THE CITY OF BOCA RATON FROM
THE SOUTHEASTERN PALM BEACH COUNTY HOSPITAL DISTRICT;
PROVIDING FOR THE FURNISHING OF COPIES OF THIS RESO-
LUTION.
(Copy of Resolution No. 61-81 is on file in the official
Resolution Book)
Mr. Scheifley moved for the adoption of Resolution No. 61-81,
seconded by Mr. Blair. Upon roll call Council voted as follows:
Mr. Scheifley - Yes; Mrs. Durante - Yes; Mr. Blair - Yes; Mr. Bird -
Yes; Mayor Weekes - Yes. Said motion passed with a 5 to 0 vote.
1. Mr. Walter Breen, bond counsel representing the firm of Mudge,
~ose, Guthrie and Alexander, spoke before Council advising that the
procedure is basically that a form of resolution is adopted that would
provide for the holding of an election, at which time the date would
be set and the propositions to be voted on would be set forth. This
form of resolution would be published once in the fifth week prior to
the election and in the third week, but as a matter of form it would
be done every week until the election. After the election has been held
Council would act as a canvassing board, canvassing the results of the
election. If it was successful, Council would th~n proceed on the basis
of adopting a resolution setting forth the detail of the bonds; after
that has been passed, it is just a matter of working with the City's
Financial Advisor working out the details of the bonds, how they are to
be sold, etc.
Upon question by Mayor Weekes as to what kind of time frame is re-
quired to get an ordinance prepared to set this proposition in motion,
Mr. Breen stated that they could draft this within five working days.
The only problem is with the publication of notice where the first notice
must be five weeks prior to the date of the election. If Council gave
them the information the early part of August, the City could hold the
election some time in September.
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The City Attorney advised that Council should inform the bond
counsel and fiscal agent as to the projects for the referendum; speci-
fically the proposed improvements, land acquisition and how much money
is needed. This is information they need to proceed with the resolutions.
Mr. Breen advised that this information can be general in form,
but it has to be enough for the people to make an intelligent decision.
Mr. Bird outlined the three areas being considered as to acquisi-
tion, acreage, location and the funds needed. These three items would
be lumped together for approximately 2.5 million dollars. The first
issue Council is clear on; the amount of money is not to exceed ten
million dollars to purchase 20 acres of land to be developed as a recrea-
tional site located on the Intracoastal Waterway. The second proposi-
tion is comprised of the following three items:
(I) A site adjacent to the golf course property of approximately
16 acres which they came up with a price pending of about $50,000 an
acre or approximately $800,000; a balance of a like amount in order to
develop it, for a total of 1.5 or 1.6 million dollars; (2) $600,000
for the development of City owned land at Lake Ida and Barwick Roads;
and (3) $300,000 for acqusition of land in the S.W. quadrant of the
City south of Lowson Boulevard and west of the extension of Homewood
Boulevard or Congress Avenue to be developed for recreational purposes.
Dan Winters, Parks and Recreation Director, reported that he has
had conversation with the City Attorney and Council concerning adding
to the referendum the completion of Miller and Pompey Parks for a total
of $400,000. He would like to complete these two parks. It was the
consensus of Council to include these two parks in the funding.
Mrs. Durante advised that the N. E. section of the City is really
lacking both in available land and recreation use. Perhaps some of
this money could be used for improvements in the Plumosa School area,
lumped in with the request for the funds for Miller and Pompey Parks.
Mr. Breen recommended the verbiage for the proposition to read
..."to authorize the issuance of bonds in the amount of $3,000,000 for
the purpose of acquiring ..... "rather than setting out the amount in
dollars for each issue.
Mayor Weekes reported that about one-half mill would probably
fund close to a three million dollar bond issue; he believes the City
can sell a half mill. The first issue on the ballot, realistically,
is not going to pass as it would take almost two mills to fund.
Mr. Stanley Ross, Dean Witter Reynolds of Miami, spoke before
Council advising that Boca Raton sold 26 million dollar general obli-
gation bonds on June 10th at a rate of nine and a quarter percent.
Today they are looking at somewhere in the vicinity of ten and one-
half percent; if the City has a 3 million dollar issue the debt service
would be about $330,000 a year. Mr. Ross advised he has had conversa-
tion with the Finance Director and last year's assessed valuation was
$573,000,000 and will probably be over $600,000,000 this year; this
would indicate that the first year, when you would do interest only,
and with a little bit of growth, a half mill would probably do it.
Mayor Weekes asked Mr. Ross that assuming the City could hold
the referendum in September and either one or both of these issues
were approved by the voters, what the time frame would be for the
City to offer the bonds for sale. Mr. Ross replied usually after the
election there is a 60 day period to validate the bonds, so it is basi-
cally 90 days. It would be running into the first of the year - the
bond sale in the middle of January and delivery the middle of February.
The first of the year is generally a good time seasonally to sell bonds.
Mr. Scheifley stated it was his opinion that it would be much
better to hold the election in October or November because the later
it is the less criticism the City will have; a lot of people are up
North and are not going to get absentee ~allots. Mayor Weekes stated
that the City has a time constraint on the first question because of
Mr. Siemen's desire to develop this land and the referendum must be
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089
held as quickly as possible; we cannot run the City on seasonal
consideration.
Mayor Weekes inquired of Mr. Ross that assuming the City is
looking at 10 million dollars on the first question, if it would be
1&3/4 mills or 1.8 mills. Mr. Ross replied that it would be somewhere
in that range.
Mr. Bird moved to authorize the bond counsel to proceed with
preparing the resolutions, seconded by Mrs. Durante. Said motion
passed unanimously.
Mayor Weekes declared the meeting adjourned at 5:40 P.M.
ity Clerk
blA Y 0 R
The undersigned is the City Clerk of the City of Delray Beach
and the information provided herein is the minutes of the meeting of
said City Council of July 22, 1981, which minutes were formally ap-
proved and adopted by the City Council on ~.~,_,~ /f~ /~'~/ .
' ~ City 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 Council. 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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