HomeMy WebLinkAbout120689-Special Session482
MINUTES
CitY Commission, Sanford, Florida
December
19 89
Tl:e City Commission of the City of Sanford, Florida, met in Special Session on
Wednesday, December.6, 1989, at 4:00 o'clock P. M% in the City Commission Room, City Hall,
Sanford, Florida.
Present:
Mayor-Commissionsr Bettye D. Smith
Commissioner Whitey Eckstein
Commissioner Robert B. Thomas
Commissioner A. A. McClanahan
City Attorney William L. Colbert
City Manager Frank A. Faison
City Clerk Janet R. Donahoe
Absent: Commissioner Lon Howell
The meeting was called to order by the Chairman, who announced that the purpose
of the meeting was to consider the Series 1989 Certificates of Participation.
The City Manager reported that he
Underwriters, William R. Hough and Company,
Commission's consideration.
had reviewed the proposal from the City's
Inc., and recommended the proposal for the
Art Diamond, Associate, Fishkind and Associates, Financial Advisor, appeared and
reported-' that the certificates, which were pre-marketed yesterday by William R. Hough and
Company, Inc, are not unique for financing, but do have unique advantages to them. The
Certificates of' Participation are structured to the individual lives of. the components that
the City seeks to lease, and although this is not a bond issue, to a certain extent it
acts like a bond issue, in that it has an interest rate attached to securities, but it is a
lease-purchase program and is marketed as such~
Mr. Diamond further reported that the. interest rates range from 5.90% in the
first year, out to a 6.90% yield in the 15th year, with the average coupon around 6.58%.
Further, we are now in a market where the rates have come down considerably, and the City
is wise to take advantage of that. Also, this is the first lease-purchase financing
program insured by a bond insurer in the state of Florida, and the fact that a bond insurer
was willing to insure the issue speaks very we~l of the issue; Mr. Diamond recommended the
City accept William R. Hough and Company's bid.
Mitch Owens, Senior Vice President, William R. Hough and Company, Inc.,
Jacksonville, Florida, Office, appeared and reported the City is lucky to be in the
marketplace at this time, since interest rates on~ municipal bonds are going down. Further,
this project was tailor-made for the City of Sanford beginning about six months ago, when
the City's projects, needs, and ability to repay were studied, and a program created to
accomplish what the City needs now, with flexibility for future years. Mr. Owens also
reported that the items to be financed provide the security for the Certificates, the City
is not pledging revenues, and also, the Certificates are insured~
On motion of Commissioner Thomas., seconded by Commissioner McClanahan and carried
by the vote of the Commission as follows:
Mayor Smith Aye
Commissioner Eckstein Aye
Commissioner Thomas Aye
Commissioner McClanahan Aye
Resolution No. 1572 was adopted. Said Resolution being in. words and figures as follows:
RESOLUTION NO. 1572
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF SANFORD, FLORIDA APPROVING THE FORMS
OF A TRUST INDENTURE, A LEASE PURCHASE
AGREEMENT, A GROUND LEASE, AN ASSIGNMENT OF
LEASES, RENTS AND PROFITS, AND A LEASEHOLD
MORTGAGE AND SECURITY AGREEMENT IN CONNECTION
WITH THE ISSUANCE BY THE CITY OF SANFORD
FINANCE CORPORATION OF $3,385,000 CERTIFICATES
OF PARTICIPATION (1989 CITY OF SANFORD
PROJECT); APPROVING THE FORM OF A CERTIFICATE
PURCHASE CONTRACT RELATING TO THE NEGOTIATED
SALE OF THE CERTIFICATES TO AN UNDERWRITER;
AUTHORIZING THE EXECUTION AND DELIVERY OF AN
OFFICIAL STATEMENT IN CONNECTION WITH THE
ISSUANCE AND DELIVERY OF SUCH CERTIFICATES AND
AUTHORIZING THE DISTRIBUTION THEREOF;
RATIFYING THE DISTRIBUTION OF A PRELIMINARY
OFFICIAL STATEMENT; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, pursuant to Resolution No. 1568 of the City of
Sanford, Florida (the "City"), the City authorized and approved the
forms of a Trust Indenture, Lease Purchase Agreement, Assignment
of Leases, Rents and Profits, and Leasehold Mortgage and Security
Agreemen~ and approved a Ground Lease acceptable to the City
Attorney and an authorized officer of the City; and
WHEREAS, the aforementioned documents have been substantially
revised since the adoption of Resolution No. 1568; and
WHEREAS, it is in the best interest of the City to approve the
forms of such documents, as revised; and
WHEREAS, the City desires to take such other action necessary
to facilitate the issuance and delivery of the Certificates;
NOW, THEREFORE, BE IT RESOLVED BY THE PEOPLE OF THE CITY OF
SANFORD, FLORIDA:
Section 1. The Trust Indenture, the Lease Purchase Agreement,
the Ground Lease, the Assignment of Rents, Leases and Profits and
the Leasehold Mortgage and Security Agreement in substantially the
forms attached hereto as Exhibits A, B, C, D and E, respectively,
are hereby approved by the City. Such documents shall be subject
~o such ~hanges, insertions or omissions as may be approved by an
authorized officer of the City and the City Attorney and ~he
execution or acceptance of or consent to such documents shall be
deemed conclusive evidence of any such approval.
Section 2. It is hereby found and determined that due to the
complexity of the financing and the need to coordinate matters
among the rating aqencies, the City., the City of Sanford Finance
Corporation (the "Corporation"), and the purchasers of the
$3,385,000 Certificates of Participation (1989 City of Sanford
Project) (the "Certificates"), it is in the best interest of the
City to negotiate the sale of the Certificates. The negotiated
sale of the Certificates to William R. Hough & Co. (the
"Underwriter") pursuant to a Certificate Purchase Contract, in
substantially the form attached hereto as Exhibit F, is hereby
approved. The Certificate Purchase Contract, with such changes,
insertions or omissions as may be approved by an authorized officer
of the City such approval to be presumed by the execution thereof,
is hereby approved by the City.
Section 3. The City hereby approves the Official Statement
relating to the Certificates, in substantially the form attached
hereto as Exhibit G, and authorizes the use and distribution by the
Underwriter of said Official Statement, with such changes,
insertions and omissions as may be approved by an authorized
officer of the City, such approval to be presumed by the execution
thereof. The City hereby ratifies and confirms the use by the
Underwriter of the Preliminary Official Statement relating to the
Certificates.
Section 4. Ail resolutions, or parts thereof, or other
official actions of the City in conflict with the provisions herein
contained are, to the extent of such conflict, hereby superseded
and repealed.
484
MINUTES
City Commission, Sanford, Florida
Decembe 6,
19 89
Section 5. This ReSolution shall take effect immediately upon
its adoption.
PASSED AND ADOPTED BY THE CITY COMMISSION OF THE CITY OF
SANFORD, FLORIDA, this 6th day of December, 1989.
Mayor
ATTEST:
~ty Clerk
2
On motion of Commissioner McClanahan, seconded by Commissioner Thomas and carried
by the vote of the Commission as follows,:
Mayor Smith Aye
Commissioner Eekstein Aye
Commissioner Thomas Aye
Commissioner McClanahan Aye
the Mayor and the City Clerk. were authorized to execute the contract' with William
and Company, Inc.
There being no further business, the meeting was adjourned.
R. Hough
Mayor /~/-