06-05-78SpMtg 435
JUNE 5~ 1978
A Special Meeting of the City Council of the City of Delray
Beach, Florida, was held in the Council Chambers at 7:10 P.M., Mon-
day, June 5, 1978, with Mayor Leon M. Weekes presiding, City Manager
J. Eldon Mariott, Assistant City Attorney Clifford O. Shandy and
Council members Robert D. Chapin, Charlotte G. Durante, Aaron I.
Sanson, IV, and James H. Scheifley present.
Mayor Weekes called the meeting to order and announced that
same had been called for the purpose of considering approval of char-
coal filtration plan to increase water plant capacity, three items
relative to the utility tax revenue bond issue and to consider appro-
val of land lease agreement (City/Palm Beach County Solid Waste Authority).
1. City Manager Mariott advised that at a recent workshop meeting
Russell & Axon proposed that the City use the charcoal filtration pro-
cess to increase the plant capacity which Council informally approved
at that time. At Mr. Chapin's request this meeting was called for
Council to give official approval to this plan.
Mr. Chapin moved that Council officially approve implementation
of a charcoal filtration plan to increase the present water treatment
capacity as recommended by the City Administration and its consulting
engineers, seconded by Mr. Scheifley. Said motion passed unanimously.
2. The City Manager stated that a communication dated May 26, 1978,
has been received from Stanley Ross, the City's fiscal agent, in which
Mr. Ross suggests increasing the contemplated $4,000,000 utility tax
revenue bond issue to $4,500,000 in order to provide sufficient fund-
ing for the retirement(for the calling in) of an outstanding issue
dated 1967. Mr. Ross estimates that by so doing the City would save
approximately $40,000. Mr. Ross' fee for the $4,000,000 issue is
$13,500 and his fee would be $1,000 more for the larger issue - a
total of $14,500. The City Manager advised the only action Council
is being asked to consider tonightis whether or not to increase the
new bond issue by $500,000.
Mr. Scheifley moved that Council increase the utility tax reve-
nue bond issue from $4,000,000 to $4,500,000, seconded by Mrs. Durante,
said motion passing unanimously.
3. The City Manager advised that this item is on the agenda at the
request of Mr. Ross who is most anxious that Council formalize the re-
tention of Mudge, Rose, Guthrie and Alexander as legal counsel for the
tax revenue bond issue, and so that Mr. Ross can begin conversation
with legal counsel.
The Assistant City Attorney stated he has been in touch with
Walter Breen of the aforementioned law firm and Mr. Breen has advised
that his fee would be somewhere between $10,000 and $15,000. In talk-
ing with Mr. Ross, the Assistant City Attorney stated it was Mr. Ross'
opinion that $10,000 was a more realistic figure and felt this could
be negotiated.
Upon question by Mr. Sanson concerning the reason for retaining
this firm over another, Mr. Scheifley advised that the firm has had a
great deal of experience with municipal bond issues in South Florida
and have been most helpful to the City on three or four occasions dur-
ing the time Mr. Scheifley has been on Council. Mr. Chapin verified
the fact that this firm, through reputation, is considered to be one
of the best throughout the State and the nation.
Mr. Sanson moved to retain the New York law firm of Mudge, Rose,
Guthrie and Alexander as legal counsel for the utility tax revenue bond
issue, and in regards to their fee, instruct the City Attorney's Office
in conjunction with the City administration to negotiate the final fee,
seconded by Mr. Scheifleyo Said motion passed unanimously.
4. The Assistant City Attorney advised that he had tried to deter-
mine from past bond issues what the City Attorney's office has been
charging for local legal counsel and has determined that it is one
quarter of one percent; roughly $10,000 for this $4,500,000 bond issue.
Mr. Ross also advised Assistant City Attorney Shandy that the City
Attorney's fee should not exceed the New York counsel's fee.
Mr. Chapin moved that Council authorize the hiring of the City
Attorney's office to serve as local counsel for the utility tax reve-
nue bond issue at a fee not to exceed $10,000, seconded by Mr. Scheifley.
Said motion passed unanimously.
5. The City Manager advised that he is in receipt of a memorandum
dated May 5, 1978, from the City's Finance Director setting forth the
financial terms that the City has been attempting to negotiate with
Tim Hunt of the Solid Waste Authority and agreement has been informally
reached. The City Attorney's office has finalized the agreement this
date.
The Assistant City Attorney stated he talked with the attorney
for the Solid Waste'Authority, James Adams, and went over the agree-
ment with him; Mr. Adams is in accord with these provisions. There
is one correction to be made in the lease - at the bottom of page
two, next to last paragraph, second line - where it says, the site at
the "term", it should read "termination".
Mrs. Durante moved for the approval of the land lease agreement
between the City of Delray Beach and the Palm Beach County Solid Waste
Authority, seconded by Mr. Sanson. Said motion passed unanimously.
Mr. Scheifley moved at 7:29 P.M., for the adjournment of the
meeting, seconded by Mrs. Durante, said motion passing unanimously.
APPROVED: :~.:
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 Council of June 5, 1978, which minutes were formally ap-
proved and adopted by the City Council on __
y 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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