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HomeMy WebLinkAboutMinutes_Special Meeting_05/31/1994VILLAGE OF TEQUESTA Post Office Box 3273 357 Tequesta Drive Tequesta, Florida 33469-0273 (407) 575-6200 Fax: (407) 575-6203 VILLAGE OF TEQUESTA VILLAGE COUNCIL SPECIAL MEETING MINUTES MAY 31, 1994 I. CALL TO ORDER AND ROLL CALL The Tequesta Village Council held a Special Meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Tuesday, May 31, 1994. The meeting was called to order at 7:04 P.M. by Mayor Ron T. Mackail. A roll call was taken by Betty Laur, the Recording Secretary. Council members present were: Mayor Ron T. Mackail, Elizabeth A. Schauer, Earl L. Collings, Joseph N. Capretta, and Vice Mayor William E. Burckart. Also in attendance were: Village Manager Thomas G. Bradford, Village Attorney John C. Randolph, Village Clerk Joann Manganiello, Finance Director Bill Kascavelis, and Director of Public Works and Recreation Gary Preston. II. APPROVAL OF AGENDA Councilmember Collings moved that the Agenda be approved as submitted. Councilmember Schauer seconded the motion. The vote on the motion was: Ron T. Mackail - for Elizabeth A. Schauer - for Earl L. Collings - for Joseph N. Capretta - for William E. Burckart - for The motion was therefore passed and adopted and the Agenda was approved as submitted. III. CONSIDERATION OF RECOMl~NDATION OF CLARK BENNBTT, FLORIDA MUNICIPAL ADVISORS, INC., TO ACCEPT A FORNAL PROPOSAL FOR THE FINANCING OF THE PROPOSED 1994 BOND ISSUE. Clark Bennett resented two ~,; p proposals for consideration by the Village Council, one from Barnett Bank and the other Racvrlvd Pannr Village Council Special Meeting Minutes May 31, 1994 Page 2 from Jupiter Tequesta National Bank. Mr. Bennett stated that both proposals are comparable in their terms, and that even though the bonds that would be issued by the Village would not be insured and would not be rated, Barnett Bank was offering 6.20 interest rate for 15 years, and Jupiter Tequesta Bank was offering 6.15 interest rate for 15 years. As security for the bonds the Village would pledge franchise fees. Under the Jupiter Tequesta National Bank proposal debt service would vary from a low of $138,000 in the first year to a high of $143,960 in the year 2001, for a total debt service of $2,130,675, compared to Barnett Bank's $2,149,380 which is higher by $18,705. Mr. Bennett stated the intent of Paragraph J in the Jupiter Tequesta proposal is that the 6.15$ interest rate is assured so long as the yield on ten-year Treasury securities does not exceed 8~ between acceptance by the Village and the closing--not that at some future point if it exceeds 8~ they could change the rate; and that this is not a variable rate proposal but is a fixed rate. Mr. Bennett responded to Mayor Mackail's question regarding the difference between a capital public improvement bond and general obligation bond, that the general obligation bond would require unlimited pledge of the city's revenues to satisfy debt service, therefore, ad valorem taxes would be pledged. Mr. Capretta wanted to know why this bond should not be a general obligation bond to obtain a lower interest rate; Mr. Clark explained that he was directed to refund existing revenue bonds to which the Village had pledged every source of revenue of the Village, and to use the least amount of existing revenue possible to adequately cover to get a favorable bid; thereby releasing all the rest of those revenues that had been pledged. Village Manager Bradford stated a general obligation bond would require a referendum, and that the amount would be shown on tax bills as a separate amount. Mr. Clark stated the Finance Committee which had recommended the bond probably had not chosen a general obligation bond because of the time and expense involved in conducting the referendum, which if it did not pass would leave the Village in the same position as before the referendum only at that point the interest rates might be higher. Mr. Clark explained the maximum rate provision would apply Village Council Special Meeting Minutes May 31, 1994 Page 3 in a default situation if by accident the bank had charged a rate higher than allowed by iaw they would have to return any excess interest they had charged above the legal rate. He also told the Council this is basically a bank loan, and they are saving a lot of money because the bank is not asking them to create a debt service reserve account which is normally 10~, or in this case approximately $137, 000; the bonds are not insured so that fee does not have to be paid; the bonds are not rated so no fee has to be paid to a rating agency; and no underwriters discount of approximately 1$ is being paid. Additional discussion included the following items: Franchise fees would be liened for the 15-year term of the bonds and could not be used for any other bond issue. These bonds could be refunded by a larger bond issue but a prepayment penalty fee would apply. It was requested that paragraph J be rewritten to clarify its meaning. The bond issue would be fully funded at closing. The project cost would be completely funded from the debt service reserve in the old bond issue, a cash contribution from park impact fees of $90,000, and the bank loan. Village Manager Bradford informed the Village Council that the bid opening for the Constitution Park project had been that day with the apparent best bidder $90,000 above the amount allocated for the project, and questioned whether additional funds might be obtained under this bond issue if needed. Mr. Lyons, President of Jupiter Tequesta National Bank, responded that an additional amount of $90,000 would be possible. Mr. Bennett recommended Jupiter Tequesta National Bank's proposal. Motion was made by Councilmember Collings to accept Mr. Bennett's recommendation for the Jupiter Tequesta National Bank proposal, after having reviewed both proposals. Councilmember Capretta seconded the motion. The vote on the motion was: Ron T. Mackail - for Elizabeth A. Schauer - for Earl L. Collings - for Joseph N. Capretta - for William E. Burckart - for Village Council Special Meeting Minutes May 31, 1994 Page 4 ------------------------------- The motion was therefore passed and adopted. IV. COMMUNICATION FROM CITIZENS Mr. Carlton D. Stoddard of 106 Golfview Drive commended Jupiter Tequesta National Bank for their strong support of Tequesta. He complimented the Village Council for their good work and recommended Tequesta provide their own school for the young people in the community. Mr. Stoddard requested notice of meetings be placed in the newsletter. V. ADJOURNMENT Councilmember Collings moved that the meeting be adjourned. Councilmember Schauer seconded the motion. The vote on the motion was: Ron T. Mackail - for Elizabeth A. Schauer - for Earl L. Collings - for Joseph N. Capretta - for William E. Burckart - for The motion was therefore passed and adopted and the meeting was adjourned at 7:33 P.K. Respectfully su witted, Betty Laur Recording Secretary ATTEST: J ann Manganie o Village Clerk DATE APPROVED: ~~,