05-24-72SpMtg MAY 24~ 1972.
A special meeting of the City Council of the City of
Delray Beach, Florida, was held in the Council Chambers at 12:00
o'clock noon, Wednesday, May 24, 1972, with Mayor James H.
Scheifley presiding and City Manager J. Eldon Mariott, City
Attorney G. Robert Fellows, Council Members Grace S. Martin,
J. L. Saunders, Leon M. Weekes and O. F. Youngblood being present.
6.a. Mayor Scheifley called the meeting to order and an-
nounced that same had been called for the purpose of receiving
bids on the $2.000,000 Beach Improvement General Obligation Bond
Issue and the possible sale of said bonds, and also for any other
business that would come before the meeting.
It was announced that nine (9) bids had been received.
The City Attorney opened the bids and turned them over to the
City Manager, who read the bids as follows:
GENERAL OBLIGATION BOND ISSUE
NET INTEREST AVERAGE INTEREST
NAME BID COST COST RATE
1st National Bank
of Miami $2,161,625.00 $2,201,625.00 5.5172%
W. H. Morton & Company
(Division of American
Express) $2,179,475.00 $2,178,784.75 5.459~
Tecott, Jackson, Wilson
White & Co. $2,167,940.00 $2,207,940.00 5.532~
CBWL - Hayden, Stone,
Inc. $2,192,060.00 $2,230,011.50 5.588301%
Kuhn, Loeb & Co. $2,187,865.00 $2,216,740.80 5.5550%
Eastman Dillon, Union Secs.
& Co. Inc.
Shearson, Hammill & Co.,
Inc.
White, Weld & Co. Inc. $2,171,970.00 $2,211,970.00 5.5430~
John Nuveen & Co.,
Incorporated
duPont, Glore Forgan Mun-
icipals, Inc. $2,130,225.00 $2,170,225.00 5.4385%
The Northern Trust Company
Paine, Webber, Jackson &
Curtis
Walston & Company, Inc.
The Robinson-Humphrey
Company, Inc. $2,130,275.00 $2,170,156.75 5.438308%
Merrill Lynch, Pierce,
Fenner & Smith Inc. $2,113,012.50 $2,151,412.50 5.39133%
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Sp. Mtg. - 5-24-72
Upon the City Manager's suggestion, Mayor Scheifley
called a recess of the meeting at 12:10 PoM~, until the consultants
had finished reviewing the bids.
The meeting resumed at 12:55 P.M.
Mr. Stanley E. Ross of Reynolds & Company, Fiscal Agents
for the City of Delray Beach, reported on the deliberations regard-
ing the bids and found the one from ist Na~_ion~l Bank of Miami in
error. He explained the difference in. figures. Mr. Ross recom-
mended that the City of Delray Beach accept the bid of Merrill
Lynch, Pierce, Fenner & Smith Inc.
6.b. Mr. Saunders moved that the reco~endation of the Fiscal _
Agent be accepted and the bid be awarded to Merrill Lynch, Pierce,
Fenner & Smith Inc., and seconded by Mr. Weekes. Mayor Scheifley
reported that Mr. Youngblood had left the meeting. City Attorney
then advised Council that this matter should be finalized in the
form of Resolution No. 26-72 which is captioned as follows:
A RESOLUTION AWARDING $2,000,000 BEACH IMPROVE-
MENT BONDS OF THE CITY OF DELRAY BEACH, FLORIDA.
(Copy of Resolution No. 26-72 is attached to the official copy of
these minutes.) See: Pages 96 A-C
Mr. Saunders made a motion for the passage of Resolution
No. 26-72, seconded by Mr. Weekes and unanimously carried by vote
of the Mayor and the three Council members present.
The meetin~!~ adjourned at 1:00 P.M.
HALLIE E. YATES
City Clerk
APPROVED:
MAYOR
--2'-
Sp.Mtg. - 5-24-72.
96-A
RESOLUTION NO. 26-72.
A RESOLUTION AWARDING $2,000,000 BEACH
IMPROVE~.~ENT BONDS OF THE CITY OF DELP~Y
BEACH, FLORIDA.
WHEREAS, pursuant to notice heretofore duly published for the
sale of $2,000,000 Beach Improvement Bonds, dated February 1, 1972
(hereinafter referred to as "Bonds"), the following sealed proposals
have been received:
The proposal of Merrill Lynch, Pierce, Fenner & Smith Inc. and
Wm. R. Hough, Associate offering to pay the sum of One million nine
hundred sixty one thousand six hundred and no/100 Dollars
($1,961,600.00), together with accrued interest from February 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 one-quarter per
centum (5¼%) per annum on the Bonds maturing in the years 1987 to 1996,
inclusive, at the rate of five and one-half per centum (5%%) per annum
on the Bonds maturing in the years 1997 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 $2,151,412.50.
The proposal of Eastman Dillon, Union Secs. & Co. Inc. and
Shearson, Hammill & Co., Inc. and White, Weld & Co. Inc. offering to
pay the sum of One million nine hundred sixty thousand and no/100
Dollars ($1,960,000.00), together with accrued interest from February
1, 1972 to the date of delivery thereof, for said Bonds bearing inter-
est at the rate of five and six-tenths per centum (5.60%) per annum on
the Bonds maturing in the years 1974 to 1980, inclusive, at the rate
of five per centum (5.00%) per annum on the Bonds maturing in the years
1981 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 1993, in-
clusive, at the rate of five and six-tenths per centum (5.60%) per an-
num on the Bonds maturing in the years 1994 to 2001, inclusive, and
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 $2,211,970.00.
The proposal of First National Bank of Miami offering to pay the
sum of One million nine hundred sixty thousand and no/100 Dollars
($1,960,000.00), together with accrued interest from February 1, 1972,
to the date of delivery thereof, for said Bonds bearing interest at
the rate of five and three-quarters per centum (5 3/4%) per annum on
the Bonds maturing in the years 1974 to 1982, inclusive, at the rate
of five and one-half per centum (5%%) per annum on the Bonds maturing
in the years 1983 to 1994, inclusive, at the rate of five and three-
quarters per centum (5 3/4%) per annum on the Bonds maturing in the
years 1995 to 2000, inclusive, at the rate of four and one-half per
centum (4%%) per annum on the Bonds maturing in the years 2001 and
2002, being a net interest cost of $2,201,625.00.
The -proposal of The Northern Trust Company and Paine, Webber,
Jackson & Curtis and Walston & Company, Inc. and The Robinson-
Humphrey Company, Inc. offering to pay the sum of One million nine
hundred sixty thousand one hundred eighteen and 25/100 Dollars
($1,960,118.25), together with accrued interest from February 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 1984, inclusive, at the rate of five and one-half
per centum (5%%) per annum on the Bonds maturing in the years 1985 to
2000, inclusive, at the rate of four and one-half per centum (4%%)
per annum on the Bonds maturing in the years 2001 and 2002, being a
net interest cost of $2,170,156.75.
96-B
Page 2. RESOLUTION NO. 26-72.
The proposal of John Nuveen & Co., Incorporated and duPont,
Glore Forgan Municipals, Inc. offering to pa~~ the sum of One million
nine hundred sixty thousand and no/100 Dollars ($1,960,000.00), to-
gether with accrued interest from February 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 1983, inclusive, at the rate of five per centum (5.00%) per annum
on the Bonds maturing in the years 1984 to 1988, inclusive, at the
rate of five and one-half per centum (5%%) per annum on the Bonds
maturing in the years 1989 and 1999, 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 $2,170,225.00.
The proposal of Kuhn, Loeb & Co. offering to pay the sum of One
million nine hundred seventy one thousand one hundred twenty four and -
20/100 Dollars ($1,971,124.20), together with accrued interest from
February 1, 1972 to the date of delivery thereof, for said Bonds bear-
ing interest at the rate of five per centum (5.00%) per annum on the
Bonds maturing in the years 1974 to 1987, inclusive, at the rate of
five and one-half per centum (5%%) per annum on the Bonds maturing in
the years 1988 to 1994, inclusive, at the rate of five and seven-
tenths per centum (5.70%) per annum on the Bonds maturing in the years
1995 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 $2,216,740.80.
The proposal of CBWL - Hayden, Stone Inc. offering to pay the
sum of One million nine hundred sixty two thousand forty eight and
50/100 Dollars ($1,962,048.50), together with accrued interest from
February 1, 1972 to the date of delivery thereof, for said Bonds bear-
ing interest at the rate of five and six-tenths per centum (5.60%) per
annum on the Bonds maturing in the years 1974 to 1984, inclusive, at
the rate of five and one-quarter per centum (5¼%) per annum on the
Bonds maturing in the years 1985 to 1987, inclusive, at the rate of
five and four-tenths per centum (5.40%) per annum on the Bonds matur-
ing in the years 1988 to 1994, inclusive, at the rate of five and six-
tenths per centum (5.60%) per annum on the Bonds maturing in the years
1995 to 2001, inclusive, and at the rate of five and one-quarter per
centum (5¼%) per annum on the Bonds maturing in the year 2002, being
a net interest cost of $2,230,011.50.
The proposal of W. H. Morton & Co. (Division of American Express)
offering to pay the sum of Two million six hundred ninety and 25/100
Dollars ($2,000,690.25), together with accrued interest from February 1,
1972, to the date of delivery thereof, for said Bonds bearing interest
at the rate of five per centum (5.00%)~er annum on the BOnds maturing
in the years 1974 to 1977, inclusive, at the rate of six and one-half
per ce~tum (6%%) per annum on the Bonds maturing in the years 1978 to
1980, inclusive, at the rate of five and one-half per centum (5~%) per
annum on the Bonds maturing in the years 1981 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 $2,178,784.75. -
The proposal of Tecott, Jackson, Wilson White & Co. offering to
pay the sum of One million nine hundred sixty thousand Dollars
($1,960,000.00), together with accrued interest from February 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 1985, inclusive, at the rate of five and four-tenths per
centum (5.40%) per annum on the Bonds maturing in the years 1986 to
1993, inclusive, at the rate of five and six-tenths per centum (5.60%)
per annum on the Bonds maturing in the years 1994 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 $2,207,940.00; and
WHEREAS, the proposal of Merrill .Lynch, Pierce, Fenner & Smith Inc.
and W. R. Hough, Associate referred to in the preambles hereof, is the
highest and most advantageous bid for said Bonds and in all other re-
spects complies with said notice of sale;
RESOLUTION NO. 26-72. 96-C
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
BEACH, FLORIDA:
Section 1. That the proposal of Merrill Lynch, Pierce, Fenner
Inc. and W. R. Hough, Associate referred to in the preambles
and the same is hereby accepted and the following described
the City be and they are hereby awarded and sold to said pur-
referred to in the preambles hereof at the price and in accord-
the proposal of said purchaser:
$2,000,000 - BEACH IMPROVEMENT BONDS,
dated February 1, 1972, in
the denomination of $5,000
each, bearing interest at the
rates per annum (payable
February 1 and August 1 of each
year) and maturing on February 1 in
the years and amounts as follows:
Year Amount Rate
1974 $ 25,000 5.00%
1975 30,000 5.00%
1976 30,000 5.00%
1977 30,000 5.00%
1978 35,000 5.00%
1979 35,000 5.00%
1980 40,000 5.00%
1981 40,000 5.00%
1982 40,000 5.00%
1983 45,000 5.00%
1984 50,000 5.00%
1985 50,000 5.00%
1986 55,000 5.00%
1987 60,000 5.25%
1988 60,000 5.25%
1989 65,000 5.25%
1990 70,000 5.25%
1991 75,000 5.25%
1992 80,000 5.25%
1993 80,000 5.25%
1994 85,000 5.25%
1995 95,000 5.25%
1996 100,000 5.25%
1997 105,000 5.50%
1998 110,000 5.50%
1999 115,000 5.50%
2000 125,000 5.50%
2001 130,000 5.50%
2002 140,000 5.00%
Section 2. That the proper officers of the City be and they are
authorized and directed to execute said Bonds when prepared and
the same to said purchaser upon payment of the purchase price
accordance with the conditions stated in said notice of sale, without
authority from this Council.
Section 3. That the City Clerk be and she is hereby authorized
directed to return forthwith the good faith checks of all unsuc-
bidders.
Section 4. This resolution shall take effect immediately.
Passed and adopted on this 24th day of May, 1972.
// M A ¥ ~O~R
._
City Clerk