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HomeMy WebLinkAbout12-29-87 SS MINUTES OF THE SPECIAL SESSION OF THE CITY COMMISSION HELD ON DECEMBER 29, 1987 e The meeting was called to order at 7:38 p.m. Hage~~. by CC'rJlrIl i ss i c'ne~~ PRESENT: At t cl~~ney Marlage~~ Commissioners Hager, Johnson and Bateman, Dwight Cool, Financial Consultant Lisa Lane, Ryan and City Clerk Catron. City City ABSENT: Mayor Ison and Commissioner Dabbs were absent due to prior commitments AMENDMENTS TO BOND ANTICIPATED NOTE RESOLUTION 87-21 City Manager Ryan explained that several minor changes needed to be made to Resolution 87-21 and several resolutions needed to be passed in order to complete the closing for the purchase of the wastewater utility. e Resolution 87-22 City Manager Ryan explained that this resolution authorized the Mayor to sign the Purhcase and Sale Agreement between Prima Vista Utililty Company, Inc. and the City of Dcoee and was required at the time of closing. Commissioner Bateman moved to approve Resolution 87-22, Commissioner Johnson seconded. Commissioner Hager asked for a roll call vote and the vote was as follows: Bateman - yes, Johnson - yes, Hager - Yes. The motion passed unanimously. Second Amendment to Purchase and Sale Agreement City Manager Ryan explained that this amendment was required by the bank of the seller and of the City and went over the items included in the amendment. He said he would discuss item 1 after he had discussed item 2 & 3. Item 2 provided for severability and item 3 provided that the amendment would terminate at such time as the Barnett financing had been repaid and the bonds defeased. Item 1 dealt with proprietary versus governmental capacity and had been previously discussed and rejected by the Commission as part of the agreement. City Manger Ryan stated that staff's position was, at least, to delete the first sentence and asked for approval of the amendment subJect to modification by staff as the propriety concerns were not in the best interest of the City. He further explained that the bank was concerned with the third pa~~ty pc,terltial arid the "prl:lp~~iety" p~~otected the bank more. Commissioner Bateman moved to approve the second amendment to the Purchase and Sale Agreement with the deletion of paragraph #1 and that paragraph 2 and 3 be properly numbered 1 and 2, Commissioner Johnson seconded. Commissioner Hager asked for a roll call vote and the vote was as follows: Commissioner Bateman yes, Commissioner Johnson - yes, and Commissioner Hager - yes. e 1 e Page 2 Special Session City Commission December 29, 1987 Resolution 87-23 City Manager Ryan explained that this resolution pertained to the Stipulation Agreement for settlement of the lawsuits and authorized Mayor Ison to execute this agreement. It provided that the two parties agreed the matter was settled, even if it was not approved by the court. The bank was concerned with what would happen if the court did not agree. Commissioner Johnson moved to approve Resolution 87-23, Commissioner Bateman seconded. Commissioner Hager asked for a roll call vote and the vote was as follows: Commissioner Johnson - yes, Commissioner Bateman - yes, and Commissioner Hager - yes. The motion passed unanimously. Other Issue City Manager Ryan asked for the authority to make minor changes, if needed, to the documents subject to approval by the Mayor, Attorney Cool and Bond Counsel. Mr. Allworth, representative for Bond Counsel, stated that authority was already in Resolution 87-21; therefore, Mr. Ryan withdrew his request. e Resolution 87-24 Lon Allworth explained that there were several minor amendments required by the bank to Resolution 87-21. The 4 areas that were amended are as follows: 1 - The paragraph that referred to the consulting engineer required the engineer to file an annual written report on the system; 2- Required the City to adopt an annual budget and no expenses for the system shall be made in any fiscal year in excess of the amount provided in the budget, unless the City Manager made a written recommendation to the Commission stating the purpose and necessity of expenses and that the City Commission approved such expenses; 3- Required fidelity bonds for anyone handling funds; and 4 - Provided that the bank would approve the issuance of any additional bonds to be funded out of the revenues of this system. Commissioner Bateman moved to approve Resolution 87-24, amending Resolution 87-21, and Commissioner Johnson seconded. Commission Hager asked for a roll call vote and the vote was as follows: Commissioner Bateman - yes, Commissioner Johnson - yes and Commissioner Hager - yes. The motion passed unanimously. . BOND ANTICIPATED NOTE RESOLUTION TO BORROW MONEY FROM ORANGE BANK - RESOLUTION 87-25 City Manager Ryan explained that he was requesting this resolution as a source of alternate financing Just in case there was any problems at the closing. This would enable us to borrow $1.5 million dollars from Orange Bank and this coupled with the $2.5 million in revenues would allow us to c J e Page 3 Special Session City Commission 12-29-87 complete the closing. This would be on a short term basis- three to six months. There was discussion that the rate was not to exceed the rate on the loan with Barnett Bank which was .78% of prime. Commissioner Bateman moved to approve Resolution 87-25 and the rate not to exceed the loan with Barnett Bank, and Commissioner Johnson seconded. Commissioner Hager asked for a roll call vote and the vote was as follows: Commissioner Bateman - yes, Commissioner Johnson - yes and Commissioner Hager - yes. The motion passed unanimously. City Manager Ryan then asked for a short recess in order to call the closing office to see if anything else was needed for the closing. Before taking the recess, Mr. Allworth asked direction on Exhibit B reference the connection fee schedule. Commissioner Bateman said he had checked with Orange County about their connection fees and the minimun cost they had was $2300.00; therefore, the City Commission decided to use that figure until a fee can be determined. RECESS: 8:07 p.m. CALL TO ORDER: 8:23 p.m. e City Manager Ryan stated that upon reflection and further consultation with special staff, no further business needed to be done and asked for adjournment. Commission Johnson moved to adjourn, Commissioner seconded and motion carried unanimously. The adjourned at 8:25 p.m.. Bat em <:."\l'"1 meeting Commissioner Hager ATTEST: City Clet~k . 3