HomeMy WebLinkAbout1984-10-17 - City Commission Workshop Meeting Minutesri
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TAMARAC, FLORIDA 33320
5811 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321
TELEPHONE (305) 722.5900
October 15, 1984
NOTICE OF WORKSHOP MEETING
CITY COUNCIL
TAMARAC, FLORIDA
There will be a Workshop Meeting of the City Council
on Wednesday, October 17, 1984 at 10:00 A.M. in the
West Conference Room at City Hall, 5811 NW 88 Avenue,
Tamarac.
The purpose of the meeting is to discuss Authorization
for the Sale of "General Obligation" Bonds.
The public is invited to attend.
Carol A. Evans
Assistant City Clerk
"An Equal Opportunity Employer"
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CITY COUNCIL WORKSHOP MEETING
October 17, 1984
Tape 1 CALL_„TQ QRDE,;R: Mayor Kravitz called the meeting to order at
10:00 A.M. on Wednesday, October 17, 1984, in the West
Conference Room at City Hall.
ROLL CALL: PIMENT: Mayor Philip B. Kravitz
Vice Mayor Sydney M. Stein
Councilman Jack Stelzer
Councilman Raymond J. Munitz
Councilman Allan C. Bernstein
Elly F. Johnson, City Manager
Jon M. Henning, City Attorney
Steve Wood, Finance Director
Patricia Marcurio, Secretary
Mayor Kravitz read the official notice of the Workshop Meeting
which he called to discuss authorization for the Sale of
"General Obligation" Bonds.
Steve Wood introduced Stanley Ross, Financial Advisor from Dean
Witter Reynolds, Inc., to Council. He said he is present to
explain some of the alternative financing options that the City
might take concerning whether or not to insure the issue and to
discuss the best time to make the sale.
C/M Munitz asked how much money is in question and Mr. Ross said
there were 8 million dollars in bonds authorized by the Board.
He said they were taken to the Circuit Court, the validation
hearing was held and the judgment was favorable. He said legal-
ly the bonds can be sold at any time and the timing of the sale
is mainly a matter of when the City needs the money for
construction. He said the first stepo_ tbe decided is the amount
of money that the architects recommend the City will need for
construction. He said there are some costs of issuance which
can be added to determine the amount of money needed.
V/M Stein asked how long it will take from the time the City
notifies them the money is needed until they receive it and Mr.
Ross said they must have reasonably recent accounting data with
a preliminary audit and cover letter. He said he is uncertain
as to whether the City will have this before the first of
December. Mr. wood said Mr. Ross could proceed unaudited with a
comfort letter from the accountants. Mr. Ross said they need
approximately 30 days to get ready for the sale and produce the
documents that will be mailed out. He said if it goes to public
sale they will need a 14-day advertising period. He said this
would be approximately 6 weeks with another 30 days to deliver
the bonds, totalling approximately 2-1/2 to 3 months.
V/M Stein said the law specifically forbids a municipality from
signing a contract without having the funds. Mr. Ross said the
City would have to decide whether to sell the bonds to an under --
writer or to advertise them for public sale. He said one of the
major considerations involved would be the quality rating that
would be given on the bonds. He said there are two insuring
companies, M.B.I.A. and AMBAC. He said both M.B.I.A. and AMBAC
have Triple A standing; however, AMBAC is reluctant to go to
Moody's with the same request that M.B.I.A. did. He suggested
the information be submitted to both companies for evaluation,
they will each set their rate and whether the City goes to
public bidding or negotiated sale, the under-
writer will recommend which one is best.
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V/M Stein asked Mr. Ross which procedure is best and Mr. Ross
said if these bonds are insured by either insurance company, the
advantage would be to go with a public sale. Mayor Kravitz
asked if timing were not a factor and Mr. Ross said yes.
V/M Stein asked Mr. Ross what the purchaser would get as a dis-
count rate and Mr. Ross said probably about 1-1/2% for marketing
at a public sale.
C/M Stelzer asked for an explanation of what is referred to in
the Ordinance as 'as needed'. He asked if the City will issue
8 million dollars worth of bonds and Mr. Wood said the City will
issue the amount needed to complete the project plus all other
costs that are associated with the project. Mr. Wood said it
does not matter what is done with the Police facility.
Mr. Ross said the best time of the year to sell bonds is between
January 15 and March 15 to get the best market. C/M Bernstein
asked if there will be any bans involved in this marketing and
Mr. Ross said he sees no reason to have one. He said if the
City came to the point where they needed to award the contracts
and there was a temporary adverse reason for not selling the
bonds, then they would do notes. Mr. Ross suggested the City
proceed and prepare the information assuming that the Police
Station will be built and send the information to the people who
will evaluate it. C/M Bernstein asked if the format has been
determined for these bonds and Mr. Ross said when they handle
General obligation Bonds they usually do straight serials.
C/M Bernstein asked if the City would be free to go to the open
market to buy bonds at a discount and Mr. Ross said yes.
Mr. wood said the Florida Statutes state that municipalities
cannot invest in municipal bonds. C/M Bernstein asked how these
things can be validated and Mr. Ross said the validation is
merely a hearing in the Court which establishes the legality and
has nothing to do with feasibility. C/M Bernstein asked the
purpose of this workshop Meeting and Mayor Kravitz said it is to
bring Council up-to-date on this item. V/M Stein said he thinks
Council should authorize the Finance Department to work with the
Bond Counsel to get the records ready in anticipation of
proceeding between 1/15/85 and 3/15/85.
Mr. wood said staff is going to put together some information to
send to the people for their advice. Mr. Ross said if the Fin-
ance Department decides what is being considered is for a
1/15/85 date, his office will put together a good deal of this
material, get the offering document prepared and mailed out in
draft form and they will prepare a legal Notice of Sale. He
said if Council should feel they would need the money in March,
they would bring the documents to Council for review with the
terms and conditions of the Notice of Sale. He said Council
would then authorize that information to be disseminated and the
advertisement to be run.
Mr. wood said the architects were contemplating putting the
specs out for bid in the latter part of December and making an
award sometime in January. He said it might not be in the
City's best interest to ask the architect to delay until Febru-
ary since the City may want more flexibility. Mr. Wood said
they need some details from the architect on what their plans
are. C/M Bernstein asked if the bonds were bought too soon,
could this be to the City's advantage and Mr. Ross said the only
thing that the City would have to sign is a certificate that 85%
of the money will be spent in 2 years.
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Mr. Henning said Miller & Meier has been advised that they would
not be paid for approximately 8 weeks until things were worked
out. He asked Councils direction if there will be no further
bills approved until 1/15/85 since the contract with the archi-
tect states that they will bill the City monthly and will be
paid as the work is done. Mr. Wood suggested this be put on the
agenda for the 10/24/84 Council meeting: "Authorization by the
City Council to appropriate money from Contingencies to the G. &
A. Professional Service to cover the cost to the architect until
the bonds can be sold".
V/M Stein said requesting the architects slow down at this point
is proper because the City is not ready yet. Mr. Ross said when
a City goes out for bid, they normally give 30 days to review
the document and then 30 to 60 days to approve it.
C/M Bernstein asked for a rough estimate of these bills incurred
pertaining to the Police Department vs. the City Hall. Mr.
Henning said a few Council meetings ago, the Council told the
architects to stop moving forward on the Police Station,
therefore, there is no more debt being incurred on the Police
Station. He said there is an update, based on cost estimates
where a couple of thousand dollars was paid to them for the
portions they have completed. He said basically, everything
spent from approximately 9/15/84 forward, concerns only City
Hall.
C/M Bernstein asked how much has been expended for the Police
Station and Mr. Wood said approximately $130,000 with about
$40,000 for the Police Station. City Manager Johnson said if
the City proceeds strictly on cost, they would go with BSO
because there is no question they will be more economical.
Mayor Kravitz said they will work toward a target date of
3/l/85.
Mayor Kravitz adjourned the meeting at 10:30 a.m.
ASSISTANT CITY CLERK
This public document was promulgated at a cost of $54.80 or
$1.52 per copy, to inform the general public and public officers
and employees about recent opinions and considerations by the
City Council of the City of Tamarac.
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