HomeMy WebLinkAboutIII (A2) Approval and Acceptance of the Minutes of Special Session of January 28, 1999 Agenda 2-16-99
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MINI PIES OF THE OCOEE CITY COMMISSION SPECIAL SESSION
HELD JANUARY 28, 1999
Mayor Vandergrift called the Special Session to order at 7:05 p.m. in the Commission
Chambers. The roll was called and a quorum declared present.
PRESENT: Mayor Vandergrift. Commissioners Anderson, Glass. I lowell and Parker. Also
present were City Manager Shapiro, City Attorney Rosenthal, Finance Director
Horton. Finance Supervisor Carter, Budget Specialist Strickland, Community
Relations/Projects Director Shira, City Clerk Grafton, Financial Advisor Dunlap
and Financial Advisor Galvin.
ABSENT: None.
CAPITAL IMPROVEMENT REFUNDING REVENUE BONDS, SERIES 1999
Finance Director Horton advised part of the packet the Commissioners received was a draft for
Resolution No. 99-05, which authorizes the negotiated sale of the Capital Improvement
Refunding Revenue Bonds. Series 1999. Also included was a bond purchase contract from
SunTrust Equitable Securities and William R. Ilough and Company. who were pricing the bonds
the day before. She introduced Brent Walder, the underwriter from SunTrust.
PRICING OF BONDS
Brent Wilder, SunTrust Equitable Securities, advised the process started on the evening of
Tuesday, January 26. 1999, when there was a conference call with staff and the financial advisor
to determine an interest rate scale for the bonds on Wednesday. January 27, 1999. An agreement
was reached on a recommended scale. The situation was monitored overnight, and things had
improved by Wednesday morning. They were able to lower the yield slightly and entered the
market at its open at 9:00 a.m, on Wednesday, January 27. They received an extremely strong
response to the City's bond issue. By I I :00 a.m., they were oversubscribed in certain maturities
four to seven times, meaning they had seven times as many orders for bonds as were available.
They attributed that mainly to the A underline that the City was able to achieve on its bond issue.
Because there was such strong demand, they conferred with staff, and the financial advisor
recommended they lower yield three to live basis points again and reprice the issue. They went
back to the investors and were able to get commitments and have all the bonds sold by 2:00 p.m.
By the end of the day, they were able to take the City's 1991 bonds with interest rates around
seven percent and reduce them to levels around five percent and produce over S5,140,000 in new
projects for the City while maintaining the same level of debt service that the City was incurring
on the Series 91 and 96 issues. Ire recommended that the City accept their bond purchase
agreement.
Mark Galvin, First union Capital Market. the financial advisor, said he felt the underwriting
done by both SunTrust and William R. I lough and Company was extremely aggressive and that
they did the City a great service. Because of the strong interest rate and job buy from the
underwriters, approximately $300,000 more in project funds are now available to the City by
OCOEE CITY COMMISSION SPECIAL SESSION
JANUARY 28, 1999
DESIGNATE MEMBER OF CITY COMMISSION AS A CONTACT PERSON
Commissioner Parker was chosen as the contact for Cody and Associates.
ADJOURNMENT:
The meeting was adjourned at 7:20 p.m.
APPROVED
Attest: City of Ocoee
Jean Grafton, City Clerk S. Scott Vandergrift, Mayor
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