HomeMy WebLinkAbout1992-02-12 - City Commission Special Meeting Minutes7525 Northwest 88 Avenue
Tamarac, FL 33321-2401
RECORD OF COUNCIL ACTIONS/DISCUSSIONS
February 11, 1992
NOTICE OF SPECIAL MEETING
CITY COUNCIL OF TAMARAC, FLORIDA
There will be a Special Meeting of the City Council regarding Bond
Refinancing on Wednesday, February 12, 1992 at 10:30 A.M. in the
Conference Room #1 of City Hall, 7525 N.W. 88 Avenue, Tamarac,
Florida.
The Purpose of this meeting is:
1• Discusl1i2n and concerning Bond Counsel
Selection. (Cost estimate - $30,000)
F I.NAL A IQH
APPROVED appointment of City Manager John Kelly, Mary Blasi,
Finance Director and Leo Platz, Chairman of the Investment
Advisory Board, to seek Bond Counsel for Council consideration.
2• concerning Selection
Committee for Selecting Underwriting Firm(s) - 10 proposals
submitted by the following:
a. Dean Witter Capital
b. First Equity Corporation of Florida
C. Howard Gary & Company
d. Lehman Brothers
e. Kidder Peabody & Company
f. Merrill Lynch
g. Prudential-Bache Capital Funding
h. Raymond James & Associates, Inc.
i. Smith Barney
J. William R. Hough & Company
APPROVED Selection Committee to consist of:
a. City Manager
b. Finance Director
C. Chairman of the Investment Advisory Board
d. Finance Director - Other Municipality
e. Grant Thornton Representative
2/12/92
Page 1
3. Discussion and possible Arj;ion on retaining the services
of a Financial Advisor. (Cost estimate - $4,500 to $10,000)
Possible selections as follows:
a. Clark Bennett -Florida Municipal Advisors, North Palm Beach
b. Evanson Dodge - Orlando
C. Sun Trust _ Jerry Ford - Orlando
d. Public Financial Management - Orlando
FINAL ACTION:_
APPROVED that City Manager Kelly, Mary Blasi, Finance Director and
Leo Platx, Chairman of the Investment Advisory Board, to negotiate
to seek a Financial Advisor for Council consideration. 01
4. Discussion andacti22 on the Selection of a
public accounting firm for preparation of Verification Report
FINAL Ar.::IQ,N;
APPROVED retaining Grant Thornton to supply the City with
Verification Reports at a cost of $2,000 each.
5, on the need for a Medical
Director for the Fire Department
FINAL ACTION*
Discussion was held. Council requested a proposal be drafted to
retain Dr. Wayne Lee as Medical Director for the Fire Department.
6. EU& = PRRTTCTPATION - Any member of the public may speak
to any issue which is on this meeting notice. Speakers will
be limited to three minutes during this item and at public
hearings. There will be a thirty (30) minute aggregate time
limit for this item, and speakers are encouraged to sign up
in advance with the City Clerk prior to their participation.
The City Council may consider and act upon such other business as may come
before it. In the event this agenda must be revised, such revised copies will
be available to the public at the City Council. meeting.
Pursuant to Chapter 286.0105, Florida Statutes, if a person decides to appeal
any decision made by the City Council with respect to any matter considered at
such meeting or hearing, he may need to ensure that a verbatim record of the
proceedings is made which record includes the testimony and evidence upon
which the appeal is based.
6�I," C-�- G�-1X A
Carol A. Evans
City Clerk
M
2/12/92
Page 2
City Council Special Meeting
2/12/92/KJ
Page 1
CITY OF TAMARAC
CITY COUNCIL SPECIAL MEETING
WEDNESDAY, FEBRUARY 12, 1992
CALL -TO, ORDER: Mayor Abramowitz called this meeting to order on
Wednesday, February 12, 1992 at 10:30 a.m, in the Conference Room
#1 of City Hall, 7525 Northwest 88 Avenue, Tamarac, Florida.
Mayor Norman Abramowitz
Vice Mayor Dr. H. Larry Bender
Councilwoman Diane Glasser
Councilman Henry Schumann
Councilman Irving Katz
AL,SQ__ PRESENT:
John P. Kelly, City Manager
Dina McDermott, Assistant City Manager
Mary Blasi, Finance Directory
Jim Budzinski, Acting Fire Chief
Karen Jackson, Secretary
EDITOR'ST Portions of these tapes are inaudible.
5. Discussion and V.=sible� agj;jon on the need for a Medical
Director for the Fire Department
SYNOPSIS_ OF'&CTION:
Discussion was held. Council requested a proposal be drafted to
retain Dr. Wayne Lee as Medical Director for the Fire Department.
Jim Budzinski, Acting Fire Chief, said this is a request for a
Medical Director, which would allow the Fire Department to
continue to provide such medical services as the use of
defibrillators. The continuing emergency responsibilities that the
Fire Department has requires some type of medical quality control
as mandated by the State of Florida.
Mr. Budzinski said it is essential that the Fire Department have a
physician on hand. He said this is a request for an emergency
medical specialist who will devote a portion of his time to the
operation of the Tamarac Fire/Rescue Department.
Mayor Abramowitz asked how much this will cost and Mr. Budzinski
said it has been indicated that it would cost $1,000 per month to
retain this physician.
City Manager Kelly said this is a requirement in order to qualify
for any EMS State grants.
Mr. Budzinski said the State has recently changed the requirements
for applying for EMS State grants which includes having a Medical
Director available. He said the State requires the municipalities
to have a Medical Director to apply for the grants as well as to
continue the program the Fire Department offers in Tamarac.
C/W Glasser asked if the City has had a Medical Director in the
past and Mr. Budzinski said, no.
City Council Special Meeting
2/12/92/KJ
Page 2
Mr. Budzinski said the Department has operated under the County
Emergency Medical System as a first responder. He said with the
addition of the equipment the City has at present, the County
Medical Director is not willing to extend his coverage for
Tamarac.
Mr. Kelly asked what the pay range is for medical directors in the
neighboring municipalities.
Mr. Budzinski said the range is up to $150,000 per year and a
minimal token fee in some cases. He explained the difference
between these directors. He said in order to allow the Department
to continue utilizing the defibrillators and other equipment, Dr.
Greenstein of University Hospital signed off on the application,
which was far as he was willing to go on this particular grant
application.
Mr. Kelly asked if there is criteria for a Medical Director and
Mr. Budzinski said there is not a State requirement as far as
their specialty.
Mr. Kelly asked what services would be provided to the City if the
City retains a Medical Director.
Mr. Budzinski said there would be full-time medical direction
which is a quality control or overseeing of the program or the
services the Fire Department is providing. He said this would
entail the Medical Director being on -call 24 hours per day to
respond to any questions coming from the Tamarac Fire Department.
He said either Dr. Lee or his partner will be providing this 24
hour coverage.
Mr. Budzinski said Dr. Lee will develop and sign off, which is the
requirement, protocols for the use and continued treatment of the
patients of the Department. He said as a minimum, Dr. Lee will
conduct a monthly meeting to review treatments that have taken
place and the effects of those treatments with the Departmental
Staff.
Mr. Budzinski said Dr. Lee will maintain records of the
certifications that the Fire Fighters have as well as keeping
track of the renewals. He said Dr. Lee is his recommendation at
this time because of his involvement in the County and State EMS
System. He said Dr. Lee is an emergency medical physician
concentrating in that area, sits on the County and State Board and
is very involved in this area and knows what needs to be done.
Mr. Budzinski said Dr. Lee is very responsible and has been
involved and continues as a Medical Director in other cities and
is someone in whom he has a lot of confidence.
Mr. Kelly asked about insurance and malpractice and Mr. Budzinski
said Dr. Lee is providing his own malpractice insurance for that
fee. He suggested the City go into contract with Dr. Lee. He said
Dr. Lee indicated a willingness to start the program for Tamarac
and whatever involvement in this would be able to be negotiated in
the future.
C/M Katz asked the City's position regarding a conflict of
interest if this doctor serves on various boards and Mr. Budzinski
said Dr. Lee would be an independent contractor for the City,
which would not be a conflict.
Mayor Abramowitz asked if there is grant money available and.
Assistant City Manager Dina McDermott said the State of Florida
M
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City Council Special Meeting
2/12/92/KJ
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currently provides a couple hundred thousand dollars per year for
emergency medical situations.
Ms. McDermott said the City has already received $10,150 this year
to be matched with possibly more coming in May, 1992 for State
funds for equipment. She said the State revised the way EMS is to
be issued and the purpose of a Medical Director is to maintain and
train what the City already has. She said it is necessary to
provide the Fire Fighters with the proper training.
C/W Glasser asked if Dr. Lee is a practicing physician and if he
will have the time available to do this and Mr. Budzinski said,
yes.
Mr. Budzinski said he has been the Medical Director for Margate
and Oakland Park in the past. He said Dr. Lee has a Fire Fighter
who has been handling his records for years who will be doing the
record keeping and the $1,000 covers all costs involved.
Mayor Abramowitz said he would prefer not having a contract and
C/M Schumann said he would like to see the Medical Director's
exact duties enumerated in a signed agreement between the City and
this doctor without a contract.
C/M Schumann asked how many calls out of 10 does the Fire
Department receive which require emergency medical assistance and
Mr. Budzinski said 7 or 8 or approximately 70% of the Department's
calls are medical calls.
C/M Schumann asked if Dr. Lee will be doing the training of the
Fire Fighters and Mr. Budzinski said he will be a source of
training material; however, he does not want to set up a
curriculum for Tamarac. He said the curriculums are established by
the State and Tamarac has been receiving this training through
Broward Community College with which Dr. Lee agrees. Further
discussion was held regarding contracting with the Medical
Director.
V/M Bender requested that the written agreements with the other
cities be submitted for review by Council.
Mayor Abramowitz requested a Memorandum of Understanding in
writing listing what his duties will be and what he will provide
and all agreed.
Mr. Kelly said there needs to be something in writing which shows
the City's intent and Mayor Abramowitz agreed.
C/M Schumann asked if this will be paid from Contingency Funds and
Mr. Budzinski said it will be taken from existing monies in the
Fire Department's budget.
Mr. Kelly said he will bring back a proposal to Council for
consideration.
L
City Council Special Meeting
2/12/92/KJ
Page 4
1. concerning Bond Counsel
Selection. (Cost estimate - $30,000)
SYNOPSIS_ QF_ACTION:
APPROVED appointment of City Manager John Kelly, Mary Blasi,
Finance Director, and Leo Platz, Chairman of the Investment
Advisory Board, to seek Bond Counsel for Council consideration.
Mayor Abramowitz introduced Leo Platz, Chairman of the Investment
Advisory Board.
Mr. Kelly said the purpose is to make Council aware of where the
City stands with the refinancing authorized by Council which
refers to the two major bond issues. (Attachment 1) He said this
is to inform the Council as to some ideas Staff has regarding the
refinancing of the bonds. (Attachment 2)
Mr. Kelly said the City is required to have a Bond Counsel and an
Underwriter Counsel. He said there was an estimated cost of
$30,000. He said Mary Blasi, Finance Director, has reviewed this
thoroughly.
Ms. Blasi said the cost estimates for Bond Counsel run from $.50
to $1.25 per $1,000 of bond, which is a very large spread and the
City is looking at approximately 20 million dollars. She said it
would be in the City's best interest if the City selected somebody
and negotiate with the top Bond Counsels regarding these two
issues.
Mr. Kelly said he had recommended Gerry Heffernan based on his
past experience as he has handled all of these bond issues for the
City.
Ms. Blasi said the City received proposals from 10 large
underwriting firms and in reviewing them, the average for the two
bonds being merged into one, the City would be realizing $180,000
or $30,000 per year. She said this pertains to the G.O. Bonds,
which is a 7.5 million dollar bond issue, which is including all
of the expenditures which equals the net savings per year.
Ms. Blasi said the Water, Sewer and Utility Revenue Bonds is where
the City is going to save the most money. She said the one that
can be refinanced has a present value of $874,000 or $95,000 per
year. She said the City is looking at a present value savings of
approximately one million dollars and the face amount of this bond
is approximately 12.7 million dollars. She said this is a total
cost savings to the City of approximately $125,000 over the next
15 to 20 years.
Mr. Platz said he agrees with this refinancing and there is an
anticipation by the Federal Reserve of another drop in interest
rates in the near future.
Discussion was held regarding the savings for the upcoming years.
Mr. Kelly explained the procedures for the refinancing which
included the City's hiring of a Bond Counsel and an Underwriting
Counsel. He recommended a Committee be appointed by Council to
review the applications for a recommendation to Council.
C/M Schumann asked if this is the same type of refinancing as for
a mortgage and Ms. Blasi said it would be to reduce the payments.
Further discussion was held regarding this.
City Council Special Meeting
2/12/92/KJ
Page 5
C/M Katz asked when the savings will be realized and Ms. Blasi
said some are realized equally per year and others realize a huge
savings in the beginning and will taper off. She said this will
all be negotiated accordingly.
Mayor Abramowitz asked if the City will have to raise the debt
service to the citizens at the beginning in order to cover the
additional cost and Ms. Blasi said, no.
TAPE 2
Mayor Abramowitz asked if Staff is recommending the City retain a
Financial Advisor and Mr. Kelly said, yes.
Mr. Platz said this is to increase the cash flow.
Mayor Abramowitz asked if this is a request for Council to give
the City Manager permission to appoint a Committee to evaluate
this and Mr. Kelly said the City needs to have a Bond Counsel and
he and Ms. Blasi would select the appropriate firm to handle this
and make their recommendation to Council.
Mr. Kelly requested that Mr. Platz be included in this selection
process and Mayor Abramowitz agreed.
Ms. Blasi said the Bond Counsel would have their loyalties to the
City and the Underwriter would have their relationship with the
Bond Counsel. Further discussion was held regarding this.
C/M Schumann MOVED to APPROVE the appointment of City Manager
Kelly, Mary Blasi, Finance Director, and Leo Platz, Chairman of
the Investment Advisory Board, to locate and recommend a Bond
Counsel, SECONDED by C/W Glasser.
VOTE: ALL VOTED AYE
2• Diseugaign and pggsible. action concerning Selection
Committee for Selecting Underwriting Firm(s) - 10 proposals
submitted by the following:
a. Dean Witter Capital
b. First Equity Corporation of Florida
C. Howard Gary & Company
d. Lehman Brothers
e. Kidder Peabody & Company
f. Merrill Lynch
g. Prudential-Bache Capital Funding
h. Raymond James & Associates, Inc.
i. Smith Barney
j. William R. Hough & Company
�SXXOP$ I S Or ACTION •
APPROVED Selection Committee to consist of:
a. City Manager
b. Finance Director
C. Chairman of the Investment Advisory Board
d. Finance Director - Other Municipality
e. Grant Thornton Representative
Mr. Kelly recommended that a Finance Director from another
municipality be included in the Selection Committee in order to
have objectivity and expertise. He said Chris Wallace of the City
of Davie is available to the City. He recommended the
representative from Grant Thornton also be included.
City Council Special Meeting
2/12/92/KJ
Page 6
Ms. Blasi said Grant Thornton was recommended based on their
accounting expertise and the fact that they are familiar with the
City's bond issues.
Mr. Kelly said there is a possibility that they will supply pro
bono service and Ms. Blasi said she will ask Grant Thornton if
they are interested.
C/W Glasser asked if Staff has requested this service from the
County and Mr. Kelly said John Canada, the County Budget Director,
is uncomfortable doing this based on his current workload.
C/M Schumann MOVED to APPROVE the recommended Selection Committee
as on Attachment 2, SECONDED by C/M Katz.
VOTE:
ALL VOTED AYE
3. Discussion and Rossible action on retaining the services
of a Financial Advisor. (Cost estimate - $4,500 to $10,000)
Possible selections as follows:
a. Clark Bennett -Florida Municipal Advisors, North Palm Beach
b. Evanson Dodge - Orlando
C. Sun Trust - Jerry Ford - Orlando
d. Public Financial Management - Orlando
SYNOPSIS OF ACTION:
APPROVED that City Manager Kelly, Mary Blasi, Finance Director and
Leo P1atz, Chairman of the Investment Advisory Board, to negotiate
to seek a Financial Advisor for Council consideration.
Mayor Abramowitz inquired of the role of the Financial Advisor.
Ms. Blasi said the Financial Advisor may be hired for a limited
role, which is going there at the time of the pricing of the bonds
to ensure the City receives the most current market rates
available or the City could have a Financial Advisor involved in
the entire bond process.
Ms. Blasi said the Financial Advisor coordinates between the Bond
Counsel, City Hall and the Underwriter. She said the Financial
Advisor will handle the following: Review the proposals, check the
reasonability of the gross spread, have more information
available, and make sure that the diversification of the
distribution amongst all these firms are there. Discussion was
held regarding the functions of the Financial Advisor.
Ms. Blasi said 90% of all governmental agencies go with negotiated
sales rather than competitive sales which are a little risky. She
said Tamarac is going with negotiated sales to get the best price.
C/M Katz asked what the downside cost is regarding this and Ms.
Blasi said the timing, based on the economic conditions. She said
it is better to have someone handling it whose daily job is
working with bonds.
Mayor Abramowitz said the City needs expertise in order to handle
20 million dollars.
V/M Bender agreed with Ms. Blasi and said time is essential.
C/W Glasser asked what the costs are in hiring a Financial Advisor
and Ms. Blasi said in researching this, it was found that they are
all asking for $1.00 to $1.25 per $1,000 which is approximately a
$20,000 range. She said none of the Financial Advisors are willing
City Council Special Meeting
2/12/92/KJ
Page 7
to negotiate this price. Discussion was held regarding SunTrust
and the other firms.
C/M Katz MOVED to APPROVE the City negotiate retaining a
Financial Advisor using the Negotiating Team consisting of City
Manager Kelly, Ms. Blasi and Mr. Platz, SECONDED by C/M Schumann.
VOTE:
ALL VOTED AYE
4. on the Selection of a
public accounting firm for preparation of Verification
Reports.
,SYNOPSIS OF ACTION&
APPROVED retaining Grant Thornton to supply the City with
Verification Reports at a cost of $2,000 each.
Ms. Blasi said when refunding bonds, an escrow agent is needed to
defease the current bonds. She said this is a requirement and
recommended Grant Thornton to handle this. She said the normal
costs are from $500 to $7,500 and Grant Thornton is willing to do
this for $2,000 per issue, which is a total of $4,000. Discussion
was held regarding this.
C/M Schumann MOVED to APPROVE retaining Grant Thornton to supply
the City with the Verification Reports, SECONDED by V/M Bender.
VOTE:
ALL VOTED AYE
6• - Any member of the public may speak
to any issue which is on this meeting notice. Speakers will
be limited to three minutes during this item and at public
hearings. There will be a thirty (30) minute aggregate time
limit for this item, and speakers are encouraged to sign up
in advance with the City. Clerk prior to their participation.
Leo Platz, Chairman of the Investment Advisory Board, asked if he
could report to his Board the outcome of this meeting and Mayor
Abramowitz said, yes, verbally.
With no further business, Mayor Abramowitz ADJOURNED this meeting at
11:55 a.m.
CAROL A. EVANS
CITY CLERK
INFRaMAN ABRAMOWITZ
MAYOR
CITY OF TAMARAC
APpRO !D AT MEETING OF 99�
..
City Clerk
E
Approximate Total CWS of a $20,000,000
AAA Rated Tax Exempt Refunding Bond Issue
30-year Maturity Current Coupon Bonds
February 5, 1992
Dollars per $1,000
UndtnNriter'rt Discount Par Amount of Bonds
Management Fee $0.00 - 1.00
Average Takedown 7,00 -7.50
Risk 0.00 - 0.50
ExMnse&
CUSIP/MSRB/PSA
$84.00/0.03/0.03
Fed Funds (1)
Approx 4% variable
Clearance (2)
0.00 - 0.25
Out -of -Pocket and Travel
0.02 - 0.05
Closing
0.00 - 0.05
Communications & Munifacts
0.00 - 0.02
Advertising
0.00 - 0.02
Underwriter's Counsel & Flue Sky
0.50 - 1.00
Underwriter's Counsel Expense
0.02 -0.05
TOTAL DISCOUNT
CQs1 of ssuar ce
Financial Advisor 41
Bond Counsel $0.50 - 1.25
Bond Counsel Expenses 0.02 - 0.05
Insurance .030 - .045 x Total Debt Service
Print & Mail Q.S. 2,500 -7,500
Print Bonds 2.000 - 4,000
Escrow Fee 500/year
Escrow Acceptance 1,500
Escrow Verification 5,000 - 7,500
Computer Fee 0.00 - 0.50
City's Expenses Varies
Registrar & Paying Agent 500.00/year + OOP
TOTAL COST OF ISSUANCE
(1) Cost incurred by underwriter to pay for bonds, used primarily for refunding bond issues because of
the need to immediately use the funds to purchase defeasance obligations (SLGS or open market U.S-
Government Securities) for the refunding escrow.
(2) Internal cast of underwriter only incurred when there are co -managers.
(3) Financial Advisors rarely, if ever, charge on a per band basis. A reasonable fee would be a minimum
of $5,000 if the scope of work is very limited (o.g., bond pricing only). A maxlmum fee would be
$15,000.
1. Discussion concerning Selection of Bond Counsel
(2. Proposal for Selection Committee
I
r
- a, City Manager
b. Finance Director
C. Chairman of the Investment Advisory Board
d. Finance Director - Other Municipality
e. Grant Thornton Representative
3. Cost estimates from each of the Financial Advisors listed
range from $1 to $1.25 per $1,000 of refinanced bonds
G.O. Bond - $ 7.5
refinancing 1986 City Hall G.O. Bond
and 1987 Police Facility Bond
Water and Sewer Revenue Bond $ 12.7
refinancing 1986 Water & Sewer Revenue
Bond
TOTAL $ 20.2
Cost of Financial Advisor -/= $20,200
4. Grant Thornton, the City's Auditors will complete the
verification reports at a cost of $2,000 each which is less
than the estimated cost of $5,000 -- $7,500
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