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09-01-70 SEI:"I'EI~BR 1, 19'70. A Special Meeting of the City Council C~i'~.'.~,,~.~ of the City of Delray Beach, Florida, was held in the Council Chambers at 12~00 o'clock noon, Tuesday, September 1, 1970, with Mayor J. L. saunders in the Chair, City Manager J. Eldon Mariott, City Attorney G. Robert Fellows and Council members Grace S. Martin, .James H. Scheifley and O. F. Youngblood being present. Mayor Saunders called the meeting to order and announced that same had been Called for the purpose of Council receiving, opening and mak- ing public Bids on the $4,150,000 General Obligation Bond Issue and the $570,000 Utilities Tax Revenue Certificates, Series 1967, and for any other business that may come before the meeting. The Pledge of Allegiance to the Flag of the United States of America was given. It was announced that three bids had been received on the General Obligation Bond Issue and two bids· on the Util{ties Tax Revenue icates, Series 1967. The bids were opened by City Manager Mariott who announced the names of the bidders and Mr. Stanley E. ~OSS of Reynolds & Company, Fiscal Agents for the City of Delray Beach, read the bids as follows: GENERAL OBLIGATION BOND ISSUE NET INTEREST .'AV~E INTER- NAME BI D .C. gST ~S.T .:COST 'RATE A. G. Becket & Co., Inc. $4,067,308.65 $4,758,066.35 6.7653% Merrill Lynch, Pierce, Fenner & Smith, Inc. $4,067,000.00 $4,669,293.75 6.6391% Kuhn, Loeb & Co. $4,.1.20,3'69.00 $4,824,113.50 6.8599% UTILITIES TAX REVENUE CERTIFICATES, .SER~ES 1967 .. NET INTEREST AV~RAG~ INTER~ SID COS? ..... EST .COS RAT Merrill Lynch, Pierce, Fenner & Smith, Inc. $558,600.00 $628,180.00 6.7801% HensberrY & Co. $558,822.30 $668,855.20 7.2192% Mr. Ross, Finance Director Weber and City Attorney Fellows were asked to check the bids to determine if they were mathematically cor- rect and legally sufficient, after which they wouldmake their recom- mendation to Council. The publisher's affidavits evidencing Proper publication of the notice of sale of said Bonds and Certificates, indicating that the notice of sale had been published in the Daily Bond Buyer, a financial newspaper published in the·City of New York, New York, on August 18, 1970, were presented and ordered filed with the minutes of this meet- ing. Mr. Scheifley informed Council that he would be unable to attend the Palm Beach County Municipal League meeting on Friday, September 11 at 1:30 P.M. at the West Palm Beach. City Hall and asked that someone represent the .City of Delray Beach at that meeting. Mayor saunders and City Manager Mariott agreed to attend said meet- City Manager Mariott informed Council of a request from Domeni= Marotta, represe~ing .a group called Concerned Citizens of Delray Beach, for use o~,~:' Community Center Auditol~.~um on Wednesday, Sep- tember 2, 1970, at 8=30 P.M'., regarding the schools in. Delray Beauh~ further, such usage has been determined not ~to conflict with any Center programming. Said request was unanimously granted, on motion by Mrs. Martin and seconded by Mr. Youngblood. The City Manager reported that the Florida League of Municipalities asked if the .City would like to place an advertisement £n the Conven- tion Issue of ~]~e~lorida Municipal ReCord, the cost ranging from $42.00 to $200.00 depending upon the size of the advertisement.. Following discussion, Mr. Youngblood moved that a one-quarter page i advertisement at a cost of $72.00 be approPed, the ~motion being sec- onded by Mrs. Martin and unanimously carried. City Manager Mariott presented RESOLUTION NO. 54-70. A RESOLUTION OF THE CITY'COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZ- ING A CITY CONTRACT FOR THE PAVING OF CERTAIN STREETS AND AN ALLEY. (Copy off Resolution No. 54-70 i~s attached to the official copy of these, minutes.) See page 144-A. The Ci'ty Manager said if this Resolution is passed it will author_-. ize the paving of three Streets .and an alley that are very much in need of resurfacing at this time in order to save them. Further, the Count.=y ~s faced with an acute ahortage, or soon stoppage of the sup- ply of aspha~t..for at least a year, and recommended passage of the Resolution as negotiations have been made with a Contractor to take care of that work in the immediate future, and if delayed, the asphalt will not be available. Resolution No. 54-70 was unanLmously passed and adopted on first and final reading, on motion by Mr. Scheifley and seconded by Mr. Youngblood. Mr. J. W. Dunbar informed Council that the alley' in Block 111, north of the alley the City is going to pave, needs to be c~eaned. Mayor Saunters, as a matter of information to Council, reported that he had received a phone call this morning from Mr. Robert Abbott., former City Planning and Zoning Director, regarding waiving of the ~150.00 Sewer Connection fee for a client of Trieste Construction Company. He said a sewer connection permit was issued to that client in 1968 to connect to the sewer, which permit is good for only thirty days and was-not used. Mayor Saunders said he had informed Mr. Abbott that the Ordinance is very clear on this matter and that~he knew of no way the $150.00 fee could be waived unless the Ordinance was amended~ Mr. Ross of Reynolds & Company reported to Council that the bids were found to be correctly calculated and the City Attorney found said bids to meet all of the legal requirements. Regarding the $570,000 Ut. il£ties Tax Revenue Certificates, Series 1967, Mr. Ross informed Council that the bid of Merrill Lynch, Pierce, Fenner & Smith, Inc. & Associates had the lowest Interest Rate Cos.t of 6.7801% and is the moat favorable to the C~ty and recommended that the City award the Bonds to Mer~.~11 Lynch, Pierce, Fenner & Smith, Inc., in accordance with ~their bid. Regarding the $4,150,000 General Obligation Bonds, Mr. Ross in- formed Council that the bid of M~£11 Lynch, Pier~ Fenner & Smith, Inc. at the lowest Average Interest Rate Co'st of 6,~391~ is most -1.43 favorable to. the.City and recommended thatthe City award the Bonds to Merrill Lynch, Pierce, Fenner & Smith, Iht- Mr. Ross.said by comgariSon, ithe average life of the two loans is reasonably close, a little over sixteen years, and thedifference between the~6..63.and 6~78 is probably the market difference between a General Obligation Bond and a Revenue. Bond. -~ He reviewed the Bond Interest Rates since the first of the year and said he feels this is the most favorable time during the year to have sold the~Bonds. . ... : The City Attorney presented RESOLUTION NO. 52-70. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY BEAOH, FLORIDA, AWARDING $4,150,000 GENERAL OBLIGATION BONDS~ (Copy of Resolution No. 52-70 is attached to the official copy of these minutes.) See pages 144~B-E. Resolution NO, 52-70 was unanimously passed and adopted on first and final reading, on motion by Mr. Youngblood and seconded by Mr. Scheifley. ~ City Attorney FellOws'presented RESOLUTION~NO..53-70. A RESOLUTION CONFIRMING THE SALE OF $570,000 UTILITIES~TAXREVENUE CERTIFICATES, SERIES 1967, OF THE CITY OF DELRAY BEACH AND-FIXING THE RATES OF INTEREST TO BE BORNE BY SAID CERTIFICATES. · (Copy of.Resolution No.~ 53-70 is attached to the official copy of these minutes~) · See Pages 144-F-K. Resolution No. 53-70 was unanimously-passed and adopted'on first and final reading, on motion by Mr. Youngblood and seconded by Mrs. Martin. : · Mayor Saunders said that since the Bonds have been sold, Mr. John Klinck of Russell & Axon has asked if Council would be interested in authorizing RusSell & Axon to proceed with plans on the Southwest Drainage Project. Mr. Youngblood moved that authorization be given to'Russell & Axon to prepare the plans and specifications for the Southwest Drainage Project, the motion being seconded by,~.Mr. Scheifley and.unanimously carried. -~ Following'a question by Mr. Scheifley regarding rating of bonds, Mr. Ross reported that both City issues are rated "BAA"ii by Moody's and ,'BBB,'.by S~andard and Poor's Corporation. He said these ratings are both identical, are the fo%lrth grade, and that Cities of. this size are generally~rated in that catagory, which he thinks is a fair rating. The meeting adjourned at 1~00 P.M~~ , 1EiE. YATES ' C~ty Clerk 144-A RESOLUTION NO. 54-70. A RESOLUTION OF TH~ CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA AUTHORIZING A CITY CONTRACT FOR THE PAVING OF CERTAIN STREETS AND AN ALLEY. WHEREAS, it is the recommendation of the City Manager that the Council, acting by authority of provisions of Sec- tion 2~14 of ~the City's Code of Ordinances, authorize the proper City officials to contract for the paving of certain city streets a~d an alley at an estimated negotiated price of $4,600.00; and WHEREAS, such contract is to be for the paving of Island Drive, west from Andrews Avenue; the paving of East Road, south from Lowry Street; the paving of Ingraham Avenue, between MacFarlane Drive and Venetian Drive; and the paving of an alley extending from S. E. 3rd Street to S. E. 4th Street, between S. E. 5th Avenue and S. E. 6th Avenue; and WHEREAS, payment for such contract is to be made from paving funds to be provided in the 1970-71 Budget; and WHEREAS, it is' the council's opiDion that such action would be in the best interest of the City, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: That authorization is hereby granted, for the contracting for the paving of the aforesaid streets and alley by Dixie Asphalt Comgany for the approximate s6m of $4,600.00. PASSED and ADOPTED in special session on this the 1st day of September, 1970. /S/ J. L. Saunders .......... M. A-Y~O~ · ATTEST: City Clerk 144-B RE~OLUTION NO. 52-70, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AWARDING $4,150,000 C~ENERAL OBLIGATION BONDS. WHEREAS, pursuant to notice heretofore duly published for the sale of $4,150,000 General Obligation Bonds, dated February 1, 1970, being $1,450,000 Storm Drainage Bonds, $2,260,000 Water Treatment Plant Bonds and $440,000 Firehouses and Equipment Bonds, as a combined issue, the' following sealed proposals have been re ce ire d: The proposal of A. G. Becket & Co. Inc., offering to pay the sum of Four million sixty seven thousand three hundred eight and 65/100 Dollars ($4,067,508.65) together with accrued interest from the date of said Bonds to the date of delivery thereof, for said Bonds .bearing interest at the rate of seven per centum (7.00~) per annum.on the BOnds maturing in the years 1973 to 1977, inclusive, at the rate of six per centum (6.0~) per annum on the Bonds ma- turing, in the year 1978, at the rate of seven., per centum (7.00%) per annum on the Bonds maturing in the year 1979, at the rate of ... six and three-fourths per centum. (6.75%) per annum on the Bonds maturing in the years 1980 to 1988, inclusive, at the rate of seven per centum (7.0~) per annum on the Bonds maturing in the years 1989 to 1992, inclusive, and at the rate of six per centum (6.00~) per annum on the Bonds maturing in the years 1993 and 1994, inclusive, being a net interest cost of $4,758,066.35. 'The proposal of' Merrill Lynch, Pierce, Fenner & smith, Inc., offering to pay the sum of Four million sixty Seven thousand Do1- lars'($4,067,000.00), together with accrued interest from the date of said Bonds to the date of delivery thereof, for Said BOnds bear- ing interest at the rate of six and three-fourths per"centum (6.75%) per annuTM on the Bonds maturing in the years 1973 to 1980, inclu- sive, at' the rate of six and one-half per centum '(6.50~) per:annum 144-C Page 2. RESOLUTION NO. 52-70. on the Bonds maturing in the year 1981, at the rate of six and three-fourths per centum (6.75%) per annum on the Bonds maturing in the years 1982 to 1984, inclusive, at the rate of six and one- half per centum (6.5~/~) per annum on the Bonds maturing in the years 1985 to 1988, inclusive, at the rate of six and three-fourths per centum (6.7.5%) per annum on the Bonds maturing in the years 1989 to 1993, inclusive, and at the rate of five and one-half per centum (5.50%) per annum on the Bonds maturing in the year 1994, being a net interest cost of $4,669,293.75. The proposal of Kuhn, Loeb & Co., offering to pay the sum of Four million one hundred twenty thousand three hundred, sixty nine Dollars ($4,120,369.00), .together with accrued interest from the date of said Bonds to the date of delivery thereof, for said Bonds bearing interest at the rate of six and one-half per centum (6.50%) per annum on the Bonds maturing in the years 1973 to 1987, inclu- sive, at the rate of six and nine-tenths per centum (6.9~/~) per annum on the BQnds maturing in the years 1988 to 1990, inclusive, and at the rate of seven Der centum (7,00%) per annum on the Bonds maturing in the years 1991 to 1994, inclusive, being a net interest cost of $4, .824,113.50. WHEREAS, the proposal of Merrill Lynch, Pierce, Fenner & Smith, Inco, referred tO in the preambles hereof, is the highest and most advantageous of said bids, and in all other respects complies with said Notice of Sale; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA: Section 1. That the proposal of Merrill Lynch, Pierce, Fenner & Smith, Inc. referred to in the preambles hereof, be and the same is hereby accepted and the following described Bonds of the City of Delray Beach, Florida, be and they are hereby awarded and sold as a 3. RESOLUTION NO. 52-70. combined issue to the said purchaser referred to in the preambles hereof, $4,150,000 General Obligation Bonds, consisting of $1,450,000 Storm Drainage Bonds, $2,260,000 Water Treatment~Plant Bonds and $440,000 Firehouses and Equipment Bonds, .dated February 1, 1970, in 'the 'denOmination of $5,000 each, bearing interest (payable semi-annually on February i and August 1), and maturing .~ in the aggregate' on April 1 in the years and amounts as follows: Interest Year AmOunt Rate 1973 $ 25,000 6.75 % 1974 25,000 6.75 % 1975 25,000 6.75 % 1976 25,000 6.75 % 1977 50,000 6.75 % 1978 75,000 6.75 % 1979 ~00,000 6.75 % 1980 I45',000 6.75 % 1981 160,000 6.50 % 1982 170,000 6.75 % 1983 18Q,000 6.75 % 1984 195',000 6.75 % 1985 210,000 6.50 % 1986 225,000 6.50 % 1987 245,000 6.50 % 1988 260,000 6.50 % 1989 280,000 6.75 % 1990 300,000 6.75.% 1991 325,000 6.75 % 1992 350,000 6.75 % 1993 375,000 6.75 % 1994 405,000 5.50 % Section 2. That the proper officers of the City, be, and they hereby authorizedand directed to execute said Bonds when pre- and to deliver same to said purchaser upon payment of the purchase price pursuant to the conditions stated in the notice of without further authority from thiscouncil, Section 3. That the City clerk, be and she is hereby author- and directed to return forthwith the good faith checks of all Unsuccessful bidders. ~44-E Page 4. R~SOLUTION NO~ 52-70. Section 4. This resolution shall take effect immediately. Passed and adopted on this first day of September, 1970. L~, _Sa ~uDders MAYOR ATTEST: /S/ Hallie E. Yates City Clerk · .. 144-F De!ray Beach, Florida September 1, 1970 The City Council of the City of Delray Beach, Palm Beach County, Florida, met in special session at the regular meeting place of the City Council in the City Council Chambers in the City Hall in the city of Delray Beach at 12:0Q o."61ocko noon on September 1, 1970, with Jack L. Saunders,.Maybr, presiding, and the following members present: Grace S. Martin James H. Scheifley O. F. Youngblood Absent: John L. Pitts~ III There were also present Hallie E. Yates, City Clerk, G. Robert Fellows, City Attorney, and J. Eldon Mariott, City Manager. The Mayor stated that one of the purposes of the meeting was to open sealed bids received for the purchase of $570,000 Utilities Tax Revenue Certificates, Ser~es 1967, of the City of Delray Beach. The City Clerk presented a publisher's affidavit evidencing.proper publication of the notice of sale of said certificates, said affidavit indicating that the notice of sale had been published in the Daily Bond Buyer, a financial news- paper published in the City of New York, New York, on August 18, 1970. The affidavit was ordered.filed with th~ minutes of said meeting. The City Clerk then presented the sealed bids for the purchase of said certificates which had been received, which bids were opened and found to be as follows: Name of Bidder Interest Rate Price Merrill Lynch, Pierce, Fenner & Smith, Inc. 6.7801% $558,600.00 Hensberry & Co. 7.2192% $558,822.30 After d~e deliberation, it was determined that the bid of Merrill Lynch, Pierce, Fenner & Smith, Inc., of Delray Beach, Florida, and associates, was the highest and best bid submitted for the .purchase of said certificates, whereupon, a resolution entitled "A Resolution confirming' the sale of $570,000 Utilitie;' Tax Revenue Certificates, Series 1967, of the City of Delray · Beach, and fixing the rates of interest to be.borne by said certificates" was introduced in written form by the City Attorney,' and was read and discussed. After due deliberation, pursuant to motion made by-Mr. Youngblood and seconded by Mrs. Martin, the resolution was adopted by the following vote: AYE: Mrs. Martin Mr. Scheifle¥ Mr. Younqblood Mayor Saunders NAY: None. The resolution was thereupon signed by the Mayor, w~s-' attested by the City Clerk, and.was approved as to form, language and execut'i0n'by the City Attorney. The resolution is as follows: RESOLUTION NO. 53-70. A RESOLUTION CONFIRMING THE SALE OF $570,0D0 UTILITIES TAX REVENUE CERTIFI- CATES, SERIES 1967, OF THE CITY OF DELRAY BEACH AND FIXING THE RATES OF INTEREST TO BE BORNE BY SAID CERTIFICATES. -2- 144-H WHEREAS pursuant to Resolution Number 26-67 adopted on October B0, 1967, this City Council did authorize the issuance of $600,000 Utilities Tax Revenue Certificates, Series 1967, of the City of Delray Beach, Florida, and did in Said resolution provide that said certificates would be sold at one time or in blocks from time.to time pursuant to proceedings to be adopted and that said certificates bear.interest a~the' rate of 5% per annum or such lesser rate or rates as ~ght be fixed by resolution after the sale of such certificates; and WHEREAS pursuant to Resolution Number 10-68 adopted on February 22, 1968, this City ~Council authorized the issuance of certain notes in anticipation~of the proceeds of the sale of said certificates; and WHEREAS pursuant to Resolution Number 28-70 adopted on April lB, 1970, this City Council amended said Resolution Number 26-67 to provide that such certificates would bear interes at the rate of seven and one'half per cent (7-1/2%) per annum or such lesser rate or rates as may be fixed by resolution after the sale of said certificates; ~and WHEREAS $30,000 Certificates numbered i to 6, inclusive, having been scheduled to mature on June i of the · years 1968 ~0 1970, inclusive, will not be issued; and WHEREAS this City Council has determined it advisable at this time to sell and issue ~the remaining $570,000 of~said certificates; and WHEREAS pursuant to notice of sale dulyp~blished the City Council of the City of Delray Beach has received sealed bids for the purchase of sai~ $570,000 Utilities Tax Revenue Certificates, Series 1967; and Merrill Lynch, Pierce, WHEREAS the bid of Fenner & Smith, Inc. of Delray Beach , Florida _, and associates, has been determined to be the highest and best bid for the purchase of said'certificates, said Rid being as follows: ~J4'4-Z OFFIC!AL BID ~ $570,000 CITY OF DELRAY BEACH, FLORIDA UTILITI~:S TAX REVENUE CERTIFICATES, SERIES 1967 ....... September 1, 1970 . The City Council of the City of Delray Beach , Florida Sin: 'For.the $570,000 City of Delray Beach, Florida, Utilities Tax Revenue Certificate~, Serie~ 1967, dated December 1, 1967, and for all but not less than all o£ said certificates, to bear interest at thejates per annum as follows: yEAR AMOUNT RATE ,, . YEA_ I:~ ~AMOUN? RATE: ~YI~AF~. ~ RATE 1971 $10,000 ~9._~L.~_~L_.~ ' 1979 $15,000 '~/_~.~..~% 19855 20,000 ~% 1972 10,000 (~)/~ % 1980 15,000 ~__~_r$~__% 1985 20 000 ~ ~/Y ~ 1974 10,000 ~D/~ go 19~ 15,000 &']9 .. go 19~ 20~ 1975 10,0~ ~5/T ~ .1983 15,~ ~~ 1989- 200~ ~=~/w % ' ($ .. ~ ~ { ~ ~ ~ ) a:d accrued ~ter~t from June 1, 1970, to tho. date of delive~ '~ereof. In accordance wi& the terms of the Notice of Sale attached hereto and made a part hereof, we enclo~ codified, ba~ cashier's or bank tr~surer's ch~k for $11,400 payable to the order of the City of Dekay Beach, F]orlda. ~e amount of said ch~k is to be applied on the purchase price of said ce~ificat~ or ~ ~is bid is accepted but n~ pe~o~ed, is to be retained by the City as full and liquidated damages. If ~ bid is accepted but ~ the City fai~ to perform ~ accordance wi~ ~e provisions of the Notice of Sale, tho ~o~t of ~id ch~k is to ~ retu~ed to us fo~Wi~ If ~ .bid is not a~epted, ~e ~ount of said ch~k ~ to be ret~ed to uz atdy upon ~o awed of ~d co~cat~. " Ve~ t~ly yours, .. Net lnterm Cost $ ~ ~l t ~O ~ Average In.rest Cost Rate ' G~ ~ ~ 0 I ~ . ~e above computation.is submitted for informat{on 0nly an~ is not a pa~ of ~is bid form.) ~~ N~ addition or alteration ~ to be made to ~s bid and it shall M aaached 'to ~o Notice of Sal~ · WHEREAs in the opinion of the City Council, it is the best interests of said city that such bid be accepted sale of such certificates to said Merrill Lynch, Pierce, Fenner a Smith, Inc. of .Delray ~each., .,, Florida associates, be ratified and confirmed. NOW,~THEREFORE~ Be It~Resolved by the City~ CounCil of the City of DelrayBeach'. Palm Beach County) Florida, follows: Section 1. That the bid of Merrill Lynch, Pierce,.. Fenner & Smith, Inc. of' Delray Beach , ...Flqrida associates, for the purchase of $570,000 Utilities Tax Revenue Certificates, Series 1967, of the City of Delray Beach, Florida, set out in full in the preamble hereto, be and the same is hereby accepted. Section 2. That said certificates shall be those bearing the following numbers and shall bear interest at following rates, none of which exceeds seven and one-half cent per annum: CERTIFICATE NIrMBERS AMOUNT YEAR INTEREST RATE 7 and 8 $10,000 1971 6.75 % 9 and 10 10,000 1972 6.75 % 11 and 12 10,000 1973 6.75 % 13 and 14 10,000 1974 6i. 75 % 15 and 16 10,000 1975 ~75 % 17 and 18 10,000 1976 75 % 19 to 21 15,000 1977 6.75 % 22 to 24 15,000 1978 6.75 % 25 to 27. 15,000 1979 6.75 % 28 to 30 15,000 1980 6.25 % 31 to 33 .15,000 1981 6.25 % 34 to 36 15,000 1982 6.25 % 37 to 39 15,000 1983 6.25 % 40 to 42 15,000 19~4 6.75 % 43 to 46 20,000 19~5 6.75 % 47 to 50 20,000 1986 6.75 % 51 to 54 20,000 1987 6.75 % to 20,000 1988 6.75 % 59 to 20,000 1989 6.75 % 63 to 81 95,000 1990 6.90 % 82 to 100 95,000 1991 6.90 % 101 to 120 100,000 1992 6.25 % Section ~. That said $5?0,000 certificates shall be delivered to said purchasers as soon as may be after the adopti of this resolution, pursuant to due payment therefor in accordance with the terms of sale. The City Treasurer shall receive and receipt for the proceeds of the sale of said certificates and ~shall immediately apply a sufficient portion of said proceeds to the retirement of the notes mentioned in the preamble heretO. Adopted and approved September l, 1970. ._, ~z Mayor Attest: Citf Cl~ er~ Approved as to form, language and execution this first day of September, 1970. ~_..;,r; .'--r,'-~,vf ,,.. ..... '- tto" ' City A rney After the transaction of other business, pursuant .' to motion duly made and carried, the City Council adjourned. ~ayor Attest: Ci'ty Cie rk /"/"