072586-Special Session MINUTES
City Commission, Sanford, Florida
July 25,
535
19 86
The City Commission of the City of Sanford, Florida, met in Special Session in
the City Hall in the City of Sanford, Florida, at 4:00 o'clock P. M. on July 25, 1986.
Present:
Also Present:
Mayor-Commissioner Bettye D. Smith
Commissioner John Y. Mercer
Commissioner Milton E. Smith
Commissioner David T. Farr
Commissioner Bob Thomas
City Attorney William L. Colbert
City Manager Frank A. Faison
City Clerk H. N. Tamm, Jr.
Jim Kirkland, William R. Hough & Co.
E. W. (Bud) Brockenbrough, Jr., William R. Hough & Co.
Arthur H. Diamond, M. G. Lewis & Co., Inc.
Paul Porter, Conklin, Porter & Holmes, Engineers
Chris Ferraro, Conklin, Porter & Holmes, Engineers
Lila Ingate, Gray, Harris~ & Robinson
The meeting was called to order by the Chairman.
The Mayor recessed the meeting to allow representatives from the Underwriters to
meet with the City Attorney.
present.
The meeting was called back to order at 4:20 o'clock P.M., with all members
The Chairman announced this meeting had been called to consider the Bond Purchase
Agreeement.
The City Manager recommended the Bond Purchase Agreement be approved as presented,
and thanked and commended the team of professionals, Art Diamond and Neil Keane from M. G.
Lewis & Co., Inc, Financial Advisors; Jim Kirkland and Bud Brockenbrough from William R.
Hough & Co., Bond Underwriters; Thomas Wilkes and Lila Ingate of the firm of Gray, Harris
and Robinson, Bond Attorneys; Paul Porter and Chris Ferraro of Conklin, Porter and Holmes,
Engineers; the law firm of Bryant, Miller and Olive from Tallahassee; the City Staff
especially City Attorney William Colbert, Utility Director Paul Moore and Finance Director
Henry Tamm and City Engineer William Simmons; and the City's auditors Hartsock and Hartsock,
who put together a good Bond Sale with better interest rates and terms than were available
six months and one year ago, and reported the Bond Sale has been accepted by Wall Street and
Standard and Poor's, giving the Bonds a AAA rating with AMBAC insurance.
The Mayor commended and thanked the City Manager for his participation on the bond
team.
Arthur (Art) H. Diamond, M. G. Lewis and Co., Financial Advisor, reviewed the
efforts in 1985 to sell the bonds to obtain land the negative impact on the market but due
to persistence and loyalty of the City Staff and personal efforts of Jim Kirkland and firm
of William R. Hough, that therefore he considers this an excellent bond financing in the
present market. He also announced the Net Interest Cost Rate of 7.34 percent, and estimated
that the City would be realizing a saving of approximately $200,000 per year in financing
charges under that which the costs would have been if the sale had been accomplished in
December, 1985. Mr. Diamond stated he was pleased to recommend the sale.
Jim Kirkland, William R. Hough and Co., stated his firm had tested the sale on
Thursday and the market did not accept the bonds; the issue was restructured and repriced on
Friday morning and met with acceptance on the market. Mr. Kirkland stated special credit
was due to the City Commission for facing the responsibility of the state mandates and
536
MINUTES
City Commission, Sanford, Florida
July 25:
19 86
increasinG the Utility Revenues in December, which put the City in a positive, position of
acceptance by Wall Street and across the financial bond market. Mr. Kirkland extended an
offer from William R. HouGh to purchase the $16,975,000 bond issue.
Commissioner Mercer reported Mr. Kirkland was the prime mover of the bond issue,
and the City of Sanford would probably not have this bond issue if it weren't for the
presistance of Mr. Kirkland and on behalf the Commission thanked Mr. Kirkland and William R.
HouGh.
The City Attorney reported that all of the Commissioners had been properly
notified in writing prior to 24 hours before the meetinG, and it would not be inappropriate
to waive the requirement for said notice.
Commissioner Farr moved to waive the requirement of 24 Hours written notice for
this Special MeetinG. Seconded by Commissioner Thomas and carried by the vote of the
Commission as follows:
Commissioner Mercer
Commissioner Smith
Commissioner Farr
Commissioner Thomas
Mayor Smith
Yea
Yea
Yea
Yea
Yea
On motion of Commissioner Farr, seconded by Commissioner Smith and carried by the
vote of the Commission as follows:
Commissioner Mercer
Commissioner Smith
Commissioner Farr
Commissioner Thomas
Mayor Smith
Yea
Yea
Yea
Yea
Yea
Resolution No. 1454 was passed and adopted. Said resolution entitled as follows:
A RESOLUTION OF THE CITY OF SANFORD, FLORIDA, AMENDING
RESOLUTION NO. 1423 ENTITLED: "A RESOLUTION OF THE CITY
COMMISSION OF THE CITY OF SANFORD, FLORIDA AUTHORIZING THE
REFUNDING OF CERTAIN PRESENTLY OUTSTANDING OBLIGATIONS OF THE
CITY OF SANFORD, FLORIDA; AUTHORIZING THE CONSTRUCTION AND
ADQUISITION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE
WATER AND SEWER SYSTEMS OF THE CITY; PROVIDING FOR THE
ISSUANCE OF NOT EXCEEDING $25,000,000 WATER AND SEWER REVENUE
BONDS OF THE CITY TO BE APPLIED TO REFUND THE PRINCIPAL,
INTEREST, AND REDEMPTION PREMIUMS, IF ANY, IN RESPECT TO SUCH
PRESENTLY OUTSTANDING OBLIGATIONS AND TO CONSTRUCT AND
ACQUIRE CERTAIN ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE
WATER AND SEWER SYSTEMS OF THE CITY; PROVIDING FOR THE
PAYMENT OF THE BONDS FROM THE NET REVENUES OF SUCH SYSTEMS
AND FROM CERTAIN OTHER LEGALLY AVAILABLE FUNDS; AUTHORIZING
THE ISSUANCE OF SUCH BONDS IN VARIOUS SERIES; MAKING OTHER
COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; AND
PROVIDING AN EFFECTIVE DATE." BY AMENDING THE DEFINITIONS OF
BOND YEAR, ACQUIRED OBLIGATIONS AND INVESTMENT SECURITIES, BY
AMENDING PROVISIONS RELATING TO THE ISSUANCE OF ADDITIONAL
PARITY OBLIGATIONS, BY PROVIDING CERTAIN PROVISIONS RELATING
TO MUNICIPAL BOND INSURANCE, BY PLACING CERTAIN LIMITATIONS
ON THE ISSUANCE OF DESIGNATED MATURITY OBLIGATIONS AND
VARIABLE RATE BONDS AND BY MAKING CERTAIN OTHER TECHNICAL
AMENDMENTS AND CHANGES; PROVIDING FOR THE REPEAL UPON THE
OCCURRENCE OF CERTAIN EVENTS OF CERTAIN RESOLUTIONS OF THE
ISSUER RELATING TO THE ISSUANCE AND DELIVERY OF NOT TO EXCEED
$8,000,000 CITY OF SANFORD, FLORIDA GRANT ANTICIPATION NOTES;
PROVIDING CERTAIN OTHER MATTERS IN CONNECTION WITH THE
ISSUANCE, SALE AND DELIVERY OF NOT TO EXCEED $25,000,000 CITY
OF SANFORD, FLORIDA WATER AND SEWER REVENUE BONDS; AND
PROVIDING AN EFFECTIVE DATE.
On motion of Commissioner Thomas, seconded by Commissioner Farr and carried by the
vote of the Commission as follows:
Commissioner Mercer
Commissioner Smith
Commissioner Farr
Yea
Yea
Yea
MINUTES
City Commission, Sanford, Florida
July 25,
537
19 86
~mmmm,~
Commissioner Thomas
Mayor Smith
Yea
Yea
Resolution No. 1455 was passed and adopted. Said resolution entitled as follows:
A RESOLUTION AUTHORIZING THE NEGOTIATED SALE OF NOT TO EXCEED
$16,975,000 CITY OF SANFORD, FLORIDA, WATER AND SEWER REVENUE
BONDS, SERIES 1986; AWARDING THE SALE THEREOF TO WILLIAM R.
HOUGH & CO., SMITH BARNEY, HARRIS UPHAM & CO., AND
SOUTHEASTERN MUNICIPAL BONDS, INC. SUBJECT TO THE TERMS AND
CONDITIONS OF A BOND PURCHASE AGREEMENT; AUTHORIZING THE
DISTRIBUTION AND EXECUTION OF AN OFFICIAL STATEMENT IN
CONNECTION WITH THE DELIVERY OF THE BONDS; APPOINTING A
PAYING AGENT AND REGISTRAR; AUTHORIZING THE PURCHASE OF
MUNICIPAL BOND INSURANCE; PROVIDING CERTAIN OTHER MATTERS IN
CONNECTION WITH THE ISSUANCE AND DELIVERY OF SUCH BONDS; AND
PROVIDING AN EFFECTIVE DATE.
Commissioner Smith moved to accept the Bond Purchase Agreement as presented and
authorize the Mayor and City Clerk to execute same. Seconded by Commissioner Thomas and
carried by the vote of the Commission as follows:
Commissioner Mercer
Commissioner Smith
Commissioner Farr
Commissioner Thomas
Mayor Smith
Yea
Yea
Yea
Yea
Yea
Mr. Kirkland presented the Commission with a cashier's check in the amount of
$169,975.00 as a deposit pursuant to the terms of the Bond Purchase Agreement.
There being no further business, the meeting was adjourned.
ATTEST:
A Y O R