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Home My WebLink AboutMinutes_Miscellaneous_07/08/1993_Finance & Administration Committee r, VILLAGE OF TEQUESTA Post Office Box 3273 • 357 Tequesta Drive Tequesta, Florida 33469 -0273 • (407) 575 -6200 } Fax: (407) 575 -6203 o p 4 �4C,y COUN�y F I N A N C E A N D A D M I N I S T R A T I O N C O M M I T T E E M E E T I N G M I N U T E S J U L Y 8, 1 9 9 3 I. CALL TO ORDER AND ROLL CALL The Finance & Administration Committee of the Village Council held a Committee Meeting on Thursday, July 8, 1993 in the Village Hall, 357 Tequesta Drive, Tequesta, Florida. The meeting was called to order at 9:05 A.M. by Chairman Earl L. Collings. Finance & Administration Committee Co- Chairman William E. Burckart was also in attendance. Staff members present were: Village Manager, Thomas G. Bradford; Finance Director, Bill Kascavelis; Village Clerk, Joann Manganiello; and Gary Preston, Director of Public Works. II. APPROVAL OF AGENDA The Agenda was approved as submitted. III. FINALIZATION OF PROPOSED PROJECTS TO BE INCLUDED IN 1993 BOND ISSUE. Village Manager Bradford explained that the original proposal before the Committee for the 1993 Bond Issue consisted of approximately $3,050,000 with a net increase to ad valorem taxes of 5.17 %. The Finance and Administration Committee previously suggested a way be found to reduce the impact on the millage rate. A concept presently being presented to the Committee will, if implemented, cause the net millage increase to be 1.54 %. The concept would be as follows: 1) Instead of financing the Pumper Truck, consider a ten -year lease - purchase with an annual payment of $19,920.00, done through the Fire /Rescue Budget. 2) Remove Dover Ditch from the Bond Issue. Pumper Truck Chairman Collings was in favor of the concept of a ten -year lease purchase for the Pumper, if it could be handled through the Fire /Rescue Budget without increasing that Budget from the original estimate. Co- Chairman Burckart was undecided. Recycled Paper Finance and Administration Committee Meeting Minutes July 8, 1993 Page 2 -------------------------- Another alternative for financing fire trucks was, instead of a 20 -year note on the aerial, a proposal of a 10 -year lease purchase on both trucks, with a down payment of $60,000, and $65,000 annually, with the Village saving approximately $175,000 - $200,000 in interest overall. Chairman Collings felt this should be presented to the Village Council for their consideration. Dover Ditch Village Manager Bradford stated that since there are many loose ends which need to be resolved before moving forward with the Dover Ditch project, that it be taken out of the 1993 Bond Issue and addressed at a later date and financed over 30 years instead of 20 years. Mr. Bradford explained that, years ago, Tequesta entered into an agreement with Palm Beach County, to maintain the County's (Dover) Ditch but the cost of that maintenance has now gone beyond the scope of the agreement. The Village Manager has attempted to resolve the issue with Palm Beach County and the Town of Jupiter. Gary Preston stated that if remedying the problems of the Ditch is delayed beyond a one year time period (the approximate amount of time needed to acquire proper permitting for proper maintenance of the Ditch) , residents who live along the banks of Dover Ditch will continue to suffer their properties eroding into the Ditch and have threatened to enter into a lawsuit with the Village for their property damage. The Village has continued to routinely maintain the Ditch, sometimes spending as much as $3,500 stabilizing lots threatened by the erosion. Various remedies were discussed by the Committee. Village Manager Bradford gave several options: 1) Continue forward with Dover Ditch, do all preliminary work keeping a separate accounting; 2) go to an Administrative Hearing to try to eliminate the mangrove mitigation issue; 3) negotiate with Palm Beach County and Jupiter; 4) continue to look at other potential alternatives for the project; etc. Chairman Collings and Co- Chairman Burckart concurred that the Dover Ditch project should be removed from the 1993 Bond Issue continue forward with the Project using Water Department Returned Earnings accounting for same so as to be reimbursed when Project is Bonded at a later date. Finance and Administration Committee Meeting Minutes July 8, 1993 Page 3 -------------------------- Tequesta Park Village Manager Bradford explained to the Committee that part of the five -year improvement plan for Tequesta Park included new fields with new lighting at the back of the Park. The State needs to see and approve these plans before the work is done. Backing up to the back side of the Park are some very expensive homes with some influential people, who may have some power with the State should they object to the lighting. Therefore, Mr. Bradford explained it may be prudent to postpone this portion of the plan for these reasons. What would be included is $175,000 shown in this year's budget for new ballfield lights on the main field, and an irrigation system for the entire eight acres of the sports complex and the main field. Also included as a capital item for the Park is basketball court lighting, upgrading the parking lot by putting in an overlay of asphalt, lighting system in the parking lot and some landscaping, new equipment and resurfacing of the playground area, for a total of $405,000. Also included in the 1993 Bond Issue would be $165,000 for Constitution Park and the refinancing of the 1979 Series Bonds for a total of $1.547 million, a 1.58% tax increase, the only tax increase referenced in the new Budget. As it presently stands, there will be no tax increase for Village General Operations. IV. REVIEW OF FLORIDA LEAGUE OF CITIES RANKING OF UNDERWRITER PROPOSALS FOR TEQUESTA 1993 BOND ISSUE AND COMMITTEE RECOMMENDATION FOR SAME. Bill Kascavelis reported that, after analyzing the comments from the Financial Advisor of the Florida League of Cities, recommended that the Village Council consider negotiating an agreement with A.G. Edwards & Sons as the underwriter for the Village Bond Sale, based on their proposal containing the lowest gross spread of $5.86 per $1,000 Bond and True Interest Cost (TIC) of $5.41 percent, with Barnett Securities as second choice. Finance and Administration Committee Meeting Minutes July 8, 1993 Page 4 -------------------------- Florida League of Cities ranked the proposals as follows: TIC Gross Spread (per $1000 Bond) 1. Stifel Nicolaus & Co. 5.35% $13.00 2. Barnett Securities, Inc. 5.39% $ 8.14 3. A.G. Edwards & Sons 5.41% $ 5.86 4. Nations Bank Capital Markets, Inc. 5.47% $ 7.97 5. William R. Hough & Co. 5.57% $10.75 6. Sun Trust Public Finance 5.58% $10.26 It was the suggestion of Florida League of Cities' Financial Advisor that, before awarding the issue, the various proposers be contacted to ensure that they would be expected to meet or exceed their proposed interest rates as they apply to the "Delphis Hanover" scale on the day of pricing. Kevin McCarty, in attendance in representation of Stifel Nicolaus & Co. objected to the fact that Stifel Nicolaus was lowest TIC bidder yet was not recommended or even considered as a finalist. After much discussion, the Committee concurred with the Financial Advisor's recommendation that the top three proposers be contacted to ensure in writing that they agree and would adhere to the expectation to meet or exceed their proposed interest rates as they apply to the "Delphis Hanover" scale on the day of pricing. V. ANY OTHER MATTERS. Chairman Collings suggested that since the proposed Tequesta Branch of the Palm Beach County Library has been long delayed (over two years) and with outrageous expenditures ($115,000 for design plans) that Tequesta could build its own library in a more timely manner and for far less cost. Village Manager Bradford stated that Village Staff and Palm Beach County Staff are fully aware of that, but the danger is: 1) the County insists that the basic content and structure remain the same (i.e., library lighting standards; furniture standards, etc.) ; or Tequesta bid out the project and it cost more than the County is willing to grant, there could be a problem. Finance and Administration Committee Meeting Minutes July 8, 1993 Page 4 -------------------------- VI. ADJOURNMENT There being no other matters before the Committee, the meeting was adjourned at 11:00 A.M. Respectfully submitted, Fran Bitters Recording Secretary Date Approved: S o?a , iy93 61 V ATTEST: JoAnn Manganie o Village Clerk