02-14-73SpMtg FEBRUARY ].4, 1973
A special meeting of the City Council of the City of Delray
Beach, Florida, was ]~eld in the Council Ch~mb~zs' -~'-c'~ at 12:00 o'clock
noon, Wednesday, ~ebruary 14 ]973 with Mayor James H Scheifley
presiding and City M~nager J. Eld-on Mariott, City Attorney Robert
· Fellows, Council Members Grace S. Krivos, Leon M. Weekes and O. F.
Young.blood being present, and J. L. Saunders being absent.
Mayor scheifley called the meeting to order and announced
that same had been called for the purpose of receiving bids on
· and selling the $5,000,000 Water and Sewer Revenue Bonds,
Series 1972.
All present stood, recited the Lord's Prayer and gave the
Pledge of Allegiance to the Flag of the United States.
a' The City Manager announced that 12 bids had been received
nd he requested the City Attorney to open the bids, pass them
back and they would be read as follows:
WATER AND SE~ER REVENUE BONDS, SERIES 1972
NAME AVG. INT. COST RATE
William R. Hough 6 Co.
Merrill Lynch, Pierce, Fenner 6-Smith Inc.
A.G. Becker 6 Co.
WilSon, White 6 Co. and Assoc. 5.2381%
Kidder, Peabody 6 Co., Inc. 6 Assoc. 5.25868%
Lehman Brothers Inc. 5.269244%
Donaldson, Lufkin 6 Jenrette, Inc. and
Loewi 6' Co., Inc. 5.2704%
- 'Smith, Barney· & Co., Inc.
Blyth Eastman Dillon & Co., Inc.
White, Weld 6 Co., Inc. 6 Assoc. 5.292881%
W. H. Morton 6 Co., Div. of
American Express Co. 5.29799%
Halsey, Stuart & Co., Inc. 5.2993~/o
Dillon Read Municipals, Div. of
Dillon Read, & Co., Inc. and Harris,
Upham & Co., Inc. 5.303~/o
Gold. man, Sachs 6 Co. 5.315459%
John Nuveen & Co., Inc.
duPont Glore Forgan, Inc.
Reynolds Securities, Inc. 5.3491%
Allen Co. 5.356%
Bear, Stearns & Co. 5 3788~L
Upon the City Maneiger's suggestion, Mayor Scheifley called
a recess of the meeting at ].2:10 P. M., until the consultants
had finished evaluating the bids.
The meeting was resumed at 1:00 P. M.
Mr. Stanley E. Ross of Reynolds Securities, Inc., Miami,
Financial Consultants for 'the City of Delray Eeach, reported
on the del ibera:h ions regarding the bids and found all 12 of
them to be in order. He announced the lowest and best bid
was that of william R. Hough & Company; Merrill Lynch, Pierce,
Fenner & Smith Inc.; A. G. Becker & Co.; Wilson, White & Co.
.and Assoc'. offering a net interest cost of 5.2381~'o. Mr. Ross
r~ecommended that the bid of William R. Hough & Company, et al,
be accepted.
city Attorney Fellows then advised Council that this matter
should be finalized in the form of RESOLUTION NO. 7-73 which
i~ captione~ as follows:
RESOLUTION AWARDING $5,000,000 WATER
~ . AND SEWER REVENUE BONDS, SERIES 1972,
OF THE CITY ~OF DELRAY BEACH, FLORIDA.
(CopY of Resolution No. 7-73 is attached to the officialcopy of
· these minutes.)
Mr. WeekeS moved the adoption of Resolution No. 7-73 as
read by the City Attorney. Mrs. Krivos seconded the motion
which passed unanimously.
The City Manager presented tWo items to be referred to the
Planning and Zoning Board.
1. For some time, .the City has recognized a deficiency
in our Ordinance requirements having to do with the review of
condominium site plans. Recently, all administration having
to do with this compiled a recommendation which should be
.. 'referred to the Planning and Zoning Board before an Ordinance
is presented. Mrs. Krivos moved that the site plan~ modification
as Prepared by the City Administration be referred to the Planning
and Zoning Board. Mr. Youngblood seconded the motion which passed
.~nan imous ly.
2. The City Manager stated there was a request from Strock
and Associates on behalf of a client for the abandonment of a
canal and two easements at a location immediately south of
Lindell Blvd. and just west of the F.E.C.R.R. It was recommended
that this request be referred to the Planning and zoning Board.
Mr. Youngblood moved that the request be referred to the Planning
.and Zoning Board, seconded, by Mr. Weekes and~passed unanimously.
The meeting.was adjourned at 1:10 P. M.
}~LLIE E. YATES
City Clerk
APPROVED: '
RESOLUTION NO. 7-73.
RESOLUTION AWARDING $5,000,000 WATER
AND SEWER REVENUE BONDS, SERIES 1972,
OF THE CITY OF DELRAY BEACH, FLORIDA.
WHEREAS, pursuant to notice heretofore duly published
for the sale of $5,000,000 Water and Sewer Revenue Bonds,
Series 1972, dated June 1, 1972 (hereinafter referred to as
"Bonds"), the following sealed proposals have been received:
The proposal of William R. Hough & Co.; Merrill Lynch,
Pierce, Fenner & Smith Inc.; A. G. Becker & cO.; Wilson, White
& Co. and Associates offering to pay the sum of Four million
nine hundred fifty thousand and no/100 Dollars ($4,950,000.00),
together with accrued interest from December 1, 1972 to the
date of delivery thereof, for said Bonds bearing interest at
the rate of six and one-half per centum (6~/o) per annum on
the Bonds maturing in the years 1974 to 1982, inclusive, at
t~ne rate of five and one-quarter per centum (5~/o) per annum
on the Bonds maturing in the years 1983 to 1984, inclusive,
at the rate of five per centum (5.00%) per annum on the Bonds
maturing in the years 1985 to 1989, inclusive, at the rate of
five and one-quarter per centum (5~/o) per annum on the Bonds
maturing in the years 1990 to 2000, inclusive, and at the
rate of five per centum (5.00%) per annum on the Bonds maturing
in the years 2001 to 2002, inclusive, being a net interest
cost of $5,677,581.25.
The proposal of Kidder, Peabody & Co., Incorporated &
Associates offering to pay the sum of Four million nine
hundred fifty-one thousand five hundred and one and no/100
Dollars ($4,951,501.00) , together with accrued interest from
December 1, 1972 to the date of delivery thereof, for said
Bonds bearing interest at the rate of six and one-half per
centum (6~/o) per annum on the Bonds maturing in the years
1974 to 1979, inclusive, at the rate of five per centum (5.00%)
per annum on the Bonds maturing in the years 1980 to 1993,
inclusive, at the rate of five and one-quarter per centum (5~/o)
per annum on the Bonds maturing in the years 1994 to 2002,
inclusive, being a net interest cost of $5,699,886.50.
The proposal of Lehman Brothers Incorporated offering to
pay the sum of Four million nine hundred fifty thousand three
hundred seventy-two.and 15/100 Dollars ($4,950,372.15),
together with accrued interest from December 1, 1972 to the
date of delivery thereof, for said Bonds bearing interest at
the rate of five per centum (5.0(~/~) per annum on the Bonds
maturing in the years 1974 to 1975, inclusive, at the rate of
six and one-half per centum (6~/o) per annum on the Bonds maturing
in the years 1976 to 1986, inclusive, at the rate of five and
one-quarter per centum (5~/o) per annum on the Bonds maturing in
the years 1987 to 1999, inclusive, at the rate of five per centum
(5.00%) per annum on the Bonds maturing in the years 2000 to
2002, inclusive, being a net interest cost of $5,711,334.10.
48B
Page 2. RESOLUTION NO. 7-73.
The proposal of Donaldson, Lufkin &. Jenrette, Inc. and
Loewi & Co., Incorporated offering to pay the sum of Four
million nine hundred fifty thousand seven hundred ninty-five
and 20/100 Dollars ($4,950,795.20), together with accrued
interest from December 1, 1972 to the date of delivery
thereof, for said Bonds bearing interest at the rate of
five and three-tenths per centum (5.30%) per annum on the
Bonds maturing in the years 1974 to 1977, inclusive, at the
rate of six per centum (6.00%) per annum on the Bonds maturing
in the years 1978 to 1987, inclusive, at the rate of five
and three-tenths per centum (5.30%) per annum on the Bonds
maturing in the years 1988 to 2001, inclusive, at the rate
of four and one-half per centum (4~k~/o) per annum on the
Bonds maturing in the year 2002, being a net
interest cost of $5,712,684.80.
The proposal of Smith, Barney & Co. Incorporated; Blyth
Eastman Dillon & Co. Incorporated; White, Weld & Co. Incorporated
and Associates offering to pay the sum of Four million nine
hundred fifty-three thousand nine hundred fifty-eight and 30/100
Dollars ($4,953,958.30), together with accrued interest from
December 1, 1972, to the date of delivery thereof, for said
Bonds bearing interest at the rate of six and one-half per
centum (6~/o) per annum on the BOnds maturing in the years 1974
to 1984, inclusive, at the rate of five per centum (5.00%) per
annum on the Bonds maturing in the years 1985 to 1989, inclusive,
at the rate of five and one-quarter per centum (5~/o) per annum
on the Bonds maturing in the years 1990 to 2001, inclusive,
at the rate of five per centum (5.00%) per annum on the Bonds
maturing in year 2002, being a net interest cost
of $5,736,954.20.
The proposal of W.H. Morton & cO. Division of American
Express Co. offering to pay the sum of Four million nine
hundred fifty-six thousand seven hundred eleven and 05/100
Dollars ($4,956,711.05), together with accrued interest from
December 1, 1972 to the date of delivery thereof, for said
Bonds bearing interest at the rate of five per centum (5.0f~/o)
per annum on the Bonds maturing in the years 1974 to 1975,
inclusive, at the rate of six and one-half per centum (6~%)
per annum on the Bonds maturing in the years 1976 to 1982,
inclusive, at the rate of five per centum (5.00%) per annum
on the Bonds maturing in the years 1983 to 1990, inclusive,
at the rate of five and one-quarter per centum (5~/o) per
annum on the Bonds maturing in the years 1991 to 2002,
inclusive, being a net interest cost of $5,742,501.45.
The proposal of Halsey, Stuart & Co. Inc. offering to
pay the sum of Four million nine hundred fifty-two thousand
seven hundred sixty-one and 30/100 Dollars ($4,952,761.30)
together with aCcrued interest from December 1, 1972 to
the date of delivery thereof, for said Bonds bearing interest
at the rate of six and three-quarters per centum (6 3/4%)
per annum on the Bonds maturing in the years 1974 to 1982,
inclusive, at the rate of five per centum (5.00%) per annum
on the Bonds maturing in the years 1983 to 1992, inclusive, at
the rate of five and one-quarter per centum(5~/o) per annum on
the Bonds maturing in the years 1993 to 2002, inclusive, being
a net interest cost of $5,744,007.45.
48C
Page 3. RESOLUTION NO. 7-73.
The proposal of Dillon Read Municipals, Division of
Dillon Read, & Co. Inc. and Harris, Upham & Co. Inc. offering
to pay the sum of Four million nine hundred fifty thousand
nine hundred thirty-five and no/100 Dollars ($4,950,935.00),
together with accrued interest from December 1, 1972 to the
date of delivery thereof, for said Bonds bearing interest at
the rate of six per centum (6.00%) per annum on the Bonds
maturing in the years 1974 to 1978, inclusive, at the rate of
five and four-tenths per centum (5.40%) per annum on the Bonds
maturing in the years 1979 to 2001, inclusive, at the rate of
four and one-half per centum (4~k%) per annum on the Bonds
maturing in the year 2002, being a net interest
cost of $5,748,780.00.
The proposal of Goldman, Sachs & Co. offering to pay the
sum of Four million nine hundred fifty thousand two hundred
seventeen and no/100 Dollars ($4,950,217.00), together with
accrued interest from December 1, 1972 to the date of delivery
thereof, for said Bonds bearing interest ~at the rate of six
and one-half per centum (6~/o) per annum on the Bonds maturing
in the years 1974 to 1981, inclusive, at the rate 6f five
per centum (5.00%) per annum on the Bonds maturing in the years
1982 to 1988, inclusive, at the rate of five and four-tenths
per. centum (5.40%) per annum on the Bonds maturing in the
years 1989 to 2000, inclusive, at the rate of five per
centum (5.00%) per annum on the Bonds maturing in the years
2001 to 2002, inclusive, being a net interest cost of
$5,761,425.50.
The proposal of John Nuveen & Co., Incorporated; duPont
Glore Forgan, Incorporated; Reynolds Securities, Incorporated
offering to pay the sum of Four million nine hundred fifty-
three thousand four hundred seventy-eight and no/100 Dollars
($4,953,478.00), together with accrued interest from December
1, 1972, to the date of delivery thereof, for said Bonds
bearing interest at the rate of five per centum (5.00%) per
annum on the Bonds maturing in the years 1974 to 1986,
inclusive, at the rate of five and four-tenths per centum
(5.40%) per annum on the Bonds maturing in the years 1987 to
2001, inclusive, at the rate of five per centum (5.00%) per
annum on the Bonds maturing in the year 2002,
being a net interest cost of $5,797,992.00.
The proposal of Allen Co. offering to pay the sum of
Four million nine hundred seventy-two thousand five hundred and
no/100 Dollars ($4,972,500.00), together with accrued interest
from December 1, 1972 to the date of delivery thereof, for
said Bonds bearing interest at the rate of five per centum
(5.00%) per annum on the Bonds maturing in the years 1974
to 1989, inclusive, at the rate of five and one-quarter per
centum (5~/o) per annum on the Bonds maturing in the years
1990 to 1994, inclusive, at the rate of five and four-tenths
per centum (5.40%) per annum on the Bonds maturing in the
years 1995 to 2002, inclusive, being a net interest cost of
$5,806,413.75.
48D
Page 4. RESOLUTION NO. 7-73.
The proposal of Bear, Stearns & Co. offering to pay the
sum of Four million nine hundred fifty thousand three hundred
seventy-one and 15/100 Dollars ($4,950,371.15) together with
accrued interest from December 1, 1972 to the date of delivery
thereof, for said Bonds bearing interest at the rate of six
per centum (6.00%) per annum on the Bonds maturing in the
years 1974 to 1981, inclusive, at the rate of five and one-
quarter per centum (5~/o) per annum on the Bonds maturing
in the years 1982 to 1991, inclusive, at the rate of five
and three-eighths per centum (5.375%) per annum on the Bonds
maturing in the years 1992 to 2000, inclusive, at the rate of
five and one-quarter per centum (54L~/o) per annum on the Bonds
maturing in the years 2001 to 2002, inclusive, being a net
interest cost of $5,830,091.35; and
WHEREAS, the proposal of William R. Hough & Co.; Merrill
Lynch, Pierce, Fenner & Smith Inc.; A. G. Becker & Co.; Wilson
~rhite & Co and Associates referred to in the preambles hereof
'
is. the highest and most advantageous bid for said Bonds and in
all other respects complies with said notice of sal. e; now,
therefore,
BE IT RESOLVED BY THE CITY OF DELRAY BEACH, FLORIDA:
Section 1. That the proposal of William R. Hough & Co.;
Merrill Lynch, Pierce, Fenner & Smith Inc.; A. G. BeCker & Co.
Wilson White & Co. and Associates referred to in the preambles
hereof, be and the same is hereby accepted and the following
described Bonds of the City of Delray Beach be and they are
hereby awarded and sold to said purchaser referred to in the
preambles hereof at the price and in accordance with the
proposal of said purchaser:
$5,000,000 - Water and Sewer Revenue Bonds, Series
1972, dated June 1, 1972, in the
denomination of $5,000 each, bearing
interest at the rates per annum (Payable
June 1 and December 1 of each year) and
maturing on June 1 in the years and
amounts as follOws:
Interest
Rate Per
Year Amount ' Annum
1974 $50,000 6~
1975 50,000 6~
1976 55,000 6~
1977 60,000 6~
1978 60,000 6~
1979 65,000 6~
1980 70,000 6~
1981 75,000 6~
1982 80,000 6~
1983 80,000 5~
1984 85,000 5~
48E
5. RESOLUTION NO. 7-73.
Interest
Rate Per
Year Amount Annum
1985 $90,000 5%
1986 105,000 5%
1987 110,000 5%
1988 115,000 5%
1989 120,000 5%
1990 130,000 5~
1991 140,000 5~
1992 150,000 5~
1993 160,000 5~
1994 165,000 5~
1995 175,000 5~
1996 190,000 5~
1997 195,000 5~
1998 205,000 5~
1999 510,000 5~
2000 540,000 5~
2001 570,000 5%
2002 600,000 5%
Section 2. That the proper officers of the City be
they are hereby authorized and directed to execute said
when prepared and to deliver the same to said purchaser
payment of the purchase price in accordance with the
conditions stated in said notice of sale, without further
authority from this City Council.
Section 3. That the City Clerk be and she is hereby
authorized and directed to return forthwith the good faith
of all unsuccessful bidders.
Section 4. This resolution shall take effect immediately.
PASSED AND ADOPTED on this 14th day of February, 1973.
ATTEST:
Clerk