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Home My WebLink About08-30-90 SS MINUTES OF THE OCOEE BOARD OF CITY COMMISSIONERS SPECIAL SESSION HELD AUGUST 30, 1990 ~ The Ocoee Board of City Comissioners Special Session called for the purpose of awarding the Transportation Refunding and Revenue Improvement Bonds, Series 1990 was called to order by Mayor Dabbs at 7:37 p.m. in the commission chambers. The roll was called and a quorum declared present. PRESENT: Mayor Dabbs, Commissioners Foster, Johnson and Woodson. Also present were City Manager Shapiro, Assistant City Attorney Jim Basque, City Engineer/Utilities Director Shira, Finance Director Poston and City Clerk Grafton. ABSENT: Commissioner Combs City Manager Shapiro advised that some of the documents presented for consideration were blacklined rather than in final form because of the volatile market resulting from the impending war due to the Iraqi invasion of Kuwait. Ms. Susan McGarry, William R. Hough & Co., distributed additional information (see attached Exhibit A) and enlarged on City Manager Shapiro's remarks, saying that the bond issue was originally scheduled for sale September 4 but world affairs caused turmoil in the bond market. Talks of peace over the weekend caused the rates to up enough so that she was encouraged to market the bonds on Monday and the bonds went for 7.59. '-" City Manager Shapiro noted that Rachlin & Cohen, CPAs, serving as financial advisor to the City, recommend the sale of the bonds and he read from their letter of recommendation. City Clerk advised that notice of this meeting had been duly posted and the press was notified. Jim Basque, Assistant City Attorney, explained that Resolution No. 90-11 is a housekeeping resolution and supplemental to Resolution No. 90-09, and Resolution No. 90-12 is the award resolution. A brief discussion followed and Mayor Dabbs called a recess so that the changes could be examined. RECESS FROM 7:53 TO 8:01 Upon reconvening, Resolution No. 90-11 was presented by title for the record as follows: "A resolution amending a resolution entitled: 'A resolution of the City Commission of the City of Ocoee, Florida, authorizing the refunding of certain presently outstanding obligations of the City of Ocoee, Florida; authorizing the acquisition of rights-of-way, design, construction, paving and improvement of certain streets and intersections within and without the city limits of the City of Ocoee, Florida; authorizing the issuance of not exceeding $7,000,000 Transportation Refunding and Improvement Revenue Bonds of the City to be applied to refund the principal, interest, and redemption premium, if any, in '-' ~ Page 2 Ocoee City Commission Special Session-Bond Issue Award August 30, 1990 ~ '-" respect to such presently outstanding obligations and to finance the cost of such project; pledging revenues derived from the Local option Gas Tax, the Public Service Taxes and certain investment earnings for the payment of said bonds; further pledging amounts on deposit in the Debt Service Fund and the Construction Fund created pursuant to this resolution; providing for the release and extinguishment of the lien on such Public Service Taxes; making certain covenants and agreements in connection therewith; providing for the severability of invalid provisions; providing for the repeal of any resolutions in conflict with the provisions of this resolution; providing certain other matters in connection therewith; and providing an effective date.' by amending Sections 10, 16E, 18B(1) (d), l8C, l8E and 29 thereof; and providing an effective date." Commissioner Woodson, seconded by Commissioner Foster, moved to adopt Resolution No. 90-11. On roll call Commissioner Foster voted "aye," Commissioner Johnson "aye," Commissioner Woodson "aye," and Mayor Dabbs "aye." Motion carried with unanimous vote in favor. Resolution No. 90-12, "a Resolution authorizing the negotiated sale of $7,000,000 City of Ocoee, Florida, Transportation Refunding and improvement Revenue Bonds, Series 1990; awarding the sale thereof to William R. Hough & Co., subject to the terms and conditions of a purchase contract; authorizing the distribution of a final official statement in connection with the delivery of the bonds; approving the form of and authorizing execution and delivery of a financial guaranty agreement with Municipal Bond Investors Assurance Corporation; authorizing the purchase of municipal bond insurance and a surety bond; appointing a registrar and paying agent; appointing an escrow agent; providing certain other matters in connection therewith; and providing an effective date." was presented by title. Commissioner Johnson, seconded by Commissioner Woodson, moved to adopt Resolution No. 90-12. On roll call Commissioner Foster voted "aye," Commissioner Johnson "aye," Commissioner Woodson "aye," and Mayor Dabbs "aye." Motion carried with unanimous vote in favor. ADJOURNMENT The meeting adjourned at 8:07 p.m. EXIllJHT A to the August 30,1990-Minutes .. / $7,000,000 CITY OF OCOEE, FLORIDA Transportation Refunding and Improvcment Rcvenue Bonds Series 1990 ,- SECfION ~ I :\-, II -- i III ~ IV ~ V ~ . I ~ ~ c PRiCING SUMMARY Debt Service Schedule and Sources and Uses or Funds Marketing Comparison Current Market CondUlons Financing Timetable Participants In the Transaction . -- : III . -- ~ . II II . . . Jill \-. . . $7,000,000 CITY OF OCOEE, FLORIDA Transportation Refunding .1Ild Improvement Revenue Bonds Series 1990 DEIlT SERVICE SCHEDULE Date Prlnclllal natc Interest Annual D/S 10/0 1/91 105,000 6.000 550,195.21 655.195.21 10/01/92 120.000 6.150 501,572.50 621.572.50 10/01/93 125.000 6.300 494.192.50 619,192.50 10101/94 135.000 6.400 486.317.50 621,317.50 10/01/95 145.000 6.500 477,677.50 622.677.50 10/01/96 155.000 6.600 468,252.50 623.252.50 10/01/97 165,000 6.700 458.022.50 623,022.50 10/01/98 175.000 6.800 446.967.50 621,967.50 1 % 1/99 185,000 6.900 435.067.50 620,067.50 10/01/00 200,000 7.000 422.302.50 622.302.50 10/01/01 215.000 7.050 408,302.50 623.302.50 10/01/02 230.000 7.300 393.145.00 623.145.00 10/01/03 245.000 7.300 376,355.00 621.355.00 1 % 1/04 260.000 7.300 358,470.00 618,470.00 10/01105 280,000 7.300 339,490.00 619,490.00 10/01/06 300.000 7.350 319.050.00 619,050.00 10/01/07 325,000 7.500 297,000.00 622,000.00 10/01108 350.000 7.500 272.625.00 622.625.00 10/01/09 375,000 7.500 246,375.00 621.375.00 10/01/10 . 400.000 7.500 218.250.00 618,250.00 10/01/11 435,000 7.500 188,250.00 623,250.00 10/01/12 465.000 7.500 155,625.00 620,625.00 10/01/13 500.000 7.500 120.750.00 620.750.00 10/01/14 535,000 7.500 83.250.00 618,250.00 to/01/15 575.000 7.500 43,125.00 618.125.00 Total 7.000.000 8,560.630.21 15.560.630.21 Accrued Thru 09/27/90 36.679.68 36.679.68 Net Cost 8.523,950.53 15.523,950.53 Net Interest Cost: 7.5607% Tnle Interest Cost: 7.6667% Optional Redemption: October I, 1999 at 102%, L1eclining to par October 1. 2001. . -- II III .. I : . ~ .. . . . . ~ . II ~ . . Sources of Funds Par A.ount of Bonds Original Issue Discount Existing Sinking Fund Account Existing Reserve Account 1987 Construction Fund Total Sources Uses of Funds City of Ocoee, Florida Transportation Refunding and I.prove.ent Revenue Bonds Series 1990 Deposit to Project Fund Estilated Cost of Escrow Underwriter's Discount Costs of Issuance including Bond Insurance Pre.iul and Reserve Surety Estilated Sources and Uses of Funds 7,000,000.00 ( ~9 , 987. SO) 19,635.00 214 , 500 . 00 229,142.26 7,423,289.76 5,081,929.76 1,960,705.00 145,530.00 235,125.00 7,423,289.7b . ... II II II 11 II II II -r II III II II II iii iii II II / $7,000,000 Cn'y OF OCOEE, FLORIDA Transportation Refunding and Improvement Revenue Bonds Series 1990 MARKETING COMPARISON $7,000,000 Ococc, Florida TransportationlInlprovement Revenue Bond.'l. Series 1990 $60,435,000 Orange County, Florida Tourist D<..-vclopIllCllt Tax Uevcnue 11oml". Series 1990 $11],135,000 Wiscon:dn l)ublie Power Supply Sylilem Itcvenuo Bond., Marketing Dale Credit Rating August 28. 1990 AlJalAAA (MBlA) Augwt 28, 1990 Aaa/AAA (AMDAC) AUglJ:U 28. 1990 AlJaI AAA (AMDAC) $85,795,000 Massachusetts Day Transpoctalion Authority 1990 Series A COP (&l<iLOn) August 23, 1990 AlJalAAA (FSA) Maturity ~ Yield Y!lili! Yield Yield 1991 6.00% 6.00% 6.10% 1992 6.15 6.10% 6.20 6.25 1993 6.30 6.20 6.35 6.40 1994 6.40 6.30 650 650 1995 6.50 6.40 6.60 6.60 1996 6.60 6.50 6.70 6.70 1997 6.70 6.60 6.80 6.80 1998 6.80 6.70 6.90 6.90 1999 6.90 6.80 7.00 7.00 2000 7.00 6.90 1.10 1.10 2001 1.05 1.00 1:JJJ 1.45 2002 1.36 1.10 7.25 7.45 2003 1.36 1.41 1.40 1.45 2004 1.36 7.41 1.40 1.45 200S 7.36 1.41 7.40 1.45 2006 1.31 HI 7.40 7.65 '1fff1 7.56 7.57 7.57 7.65 2008 7.56 7.51 7.57 7.65 2009 7.56 1.51 7.57 1.65 2010 7.56 7.57 1.57 7.65 2011 75~ 753 1ii2 7.65 2012 759 7.53 7.62 7.65 2013 7.59 7.53 7.62 7.65 2014 7.59 7.53 7.62 7.65 2015 7.59 7.53 7.62 7.65 2016 7.53 7.62 2017 1.62 2018 7.62 2019 7.62 2020 7.62 II ., II " The Municipal Market By William J. Ryan I Tax..Free Bonds Plunge 1 Point; Bush Rejection Fuels Oil Boost II I II III - Tax-exempt bond prices were In a rstate of free fall yesterday after . President Bush's reported rejection of an Iraqi proposal to negotiate a Mideast settlement. triggered a bIg Jump In 011 prtces. Long-term dollar bond prices plunged a poInt on average. while yields on high-grade serials and prerefunded Issues climbed at least 10 basIs poInts, traders said. De- clines In the short-teon market were more modest as ytclm. moved up onlY about flve baste pot~ts. The munIcIpal market had staged a modest recovery late "rues- day on reports that Iraq was wUUng to meet wIth the U.S. In hopes of ne- gotiating a resolutton to the crtaJ.a tn III the Persian Oulf. 011 prices backed . down on the news and tax-exempts rallied along with the government bond market. But after a report that President Bush had turned down the IraqI of': fer, aU prices did an about face yes- terday and shot up $2.51 a barrel, wIth the October contract for. West I - II - III I Texas Intermediate closing at S31.22. And tax.exempt bond prtces fell with each uptick In 011 prIces. "It's ugly out there," one trader said. "Nobody wants to own bonds. You can't get out. There's no real bid side," he addeu. Market participants noted that the only bonds being bought are In the new-Issue market. and Issuenl are paying the price. All of the deals prtced so Tar this week In the nego- tiated market had to be reprIced to generous yield levels, they pointed out. High-grade serIal yields are up at least 20 basis points from last Thursday; In' some cases yields have climbed close to 40 basis points from Aug. 6, one municIpal specIalist argued. In the new-Issue market. under- writenl headed by Smith Barney, Harris. Upham & Co. marketed $205.8 million New York CIty TransIt Authortty transIt faclllttes revenue bonds (LivIngston Plaza project). The Issue Is FSA Insured and carries rattngs of Aaa from Moody's Investonl ServIce and AAA from Standard & poor's Corp. The current Interest portion of the offering Includes $113.5 mil- lion term bonds due 2020, prtced at an ortglnal Issue dIscount of 99 as 71hs to yield 7.584%, $15.3 million term bonds of 2021 offered at an ortglnallssue discount of 81.829 as 6s to yield 7.53%. and sertal bonds prtced at par and scaled from 6.40% In 1993 to 7.35% In 2004, YIelds on the zero coupon bonds run from 7.40% In 2005 t07.50% In 2010. An .account managed by Lehman Brothers received the verbal award for 885.76 mtUlon Massachusetts Bay Transportation Authority cer- tificates of participation. They were also FSA-Insured and carry trlple-A ratings from both Moody's and Standard & Poor's. Serial returns ran from 6.25% In 1992 to 7.10% In 2000 with no for- mal reoffertng for the 1991 maturt- ty. The $11.5 million 2004 term maturity will yIeld 1.45%. But the $55.9 million terms maturtng In 2015 were not formally reoffered. In another negotiated financing, a Morgan Stanley & Co. underwrtt- Ing group prtced 850.4 mtUlon New York State Dormitory Author1ty New York Department of health re- fundIng bonds, rated A by Moody's and BBB-plus by Standard & Poor's. The bonds were reoffered at yIelds ranging from 6.40% In 1992 to 7.50% In 2001 for bonds prIced at 94.505 as 60/..s. In dollar bond tradIng, Florida State Board of Education 71/..s due 2023 fell liAs to 96%-%, lifting the yIeld to 1.53%. New Jenley Turn- pike Authortty 7.20s of 2018 tum- bled ~a to 960/..-91IAs, boosting their return to 1.53%. Metropolitan Seat- tle 7%s of 2030 plunged a point to 961h-Va to yteld 1.63%, And New York State DormItory Authority 7s of 2016 dropped 0/.. to 91-911h, re- turning 7.11%. In the note market. traders saId that some California 6'4% revenue anttctpatlon notea, due June 28, 1991. traded at 6. 10%. and that the market was quoted near the close at 6.10% bid. 6.07% offered. Tpe market for New York State tax and revenue anticipation notes backed off to 6.25% bid, 6.22% offered. And New York City Rans were bid at' 6.12% and offered at 6.07%. Prerefunded bond tradenl report- ed the market for laaues wtth a 1995 call at 6.10% bId. 6.65% offered. In the futures market, the MOB spread moved to negative II as the September municipal contract fell P/3:A to 88-14. while the Treasury bond dropped only :Ae/3:A. Staff reporter Sean Momarral con- tributed to this column. SOURCE: THE BOND BUYER, THURSDAY, AUGUST 23, 1990 I t I . Irl The . Municipal _ Market By Sean Monsarrat Tax..Free Prices Continue to Fall; Texas Note Deal To Yield 6.200/0 . The Increasing likelihood of a I'I.tlddle East conflict pushed oU prIces hl~er yesterday, drilUng the __aggar<f municipal market as r1ces sank one point on average lit as much as two poInts In spots , panic seUoff. \....telds on high-grade serial bonds _limbed between 10 and 20 baai6 fItolnts, traders said. "It was another day of weeping and moaning," saJd the head o( a few York trading desk late yester- ay. "People are scared and there la noUceable absence of buyers. no liquidity and the bid doesn't exJ8t. It fas ugJr, and we're not getting any I unce. Although there were no major bond offerings on the new-Issue ~endar, Texaa marketed 8550 IfIllon 12-month tax and revenue ntlclpaUon notes In the short- term sector. The notes were award- ,to seven bidders at an average terest coat of 6.27% and were re- fered to Investors at 6.20% net, Paul Wllliam8, Texas State Depu- I Treasurer, !aJd that the NIC was lOut two basis points higher than ey had planned. Because of mar- ket volatility, no firm was willing to ~ke down the entire Issue, he add- . Texas notes are rated MIG-] by y's Investors Service and SPI- p us by Standard & Poor's Corp. . l,CE: I Of the bidders. Merrill Lynch Capital Markets and Chemical Se- curities as co-managers won $200 million of the Issue; Morgan Stan- ley & Co., 8100 million; BT Securi- ties, $150 million; J.P. Morgan Se- curities Inc., $40 million; Prudential-Bache Capital Funding, $25 million: Smith Barney, Harris Upham & Co., $25 million; and Ekar, Stearns & Co., $10 million. "There was very good Interest on the Texas deal which was mostly done presale, " said a member oethe BT Securities underwrIting desk. Returning to the secondary, municipals opened If.! point lower and quickly dropped further as 011 prices Increased and news (rom the Middle East heightened fears of a shooting war. The price of West Texas Intermediate was quoted late yesterday up 71 cents to $31.93 a barrel. The market essentially Ignored the news that new orders for dura- ble goods Increased $3.7 billion, or 2.9%. to a seasonally adjusted 8128.3 bIlUon In July. At mldsesslon, traders reported mutual fund redemptions which prompted more selling In the mar- ket. There were also 8100 million to $150 mllUon In bid-wanted Usts. "It's a big break:' the head of a major New York trading desk said. "There are lists out there and ev- erybody Is getting Into the act. Peo- ple don't want to talk about It, but there are also redemptlon8 out there as well. There's Just a lot of pressure. " Indicative of the sharply higher yields In yesterdaY'8 market. new 8&ngle A-rated bank-qualftled Is- sues In New Jersey were priced to yield at least 20 basis poInts more than comparable Is.sues marketed on Wednesday. In the New York market. a block of New York State 6.30s maturing In 19915 was offered yesterday at 7%. These same bonds were offered early Tuesday at 6.50%. They or~. nally priced at par to yield 6.30'" back on July 17. In secondary dollar bond tradJng. Florida State Board of Education 7 '>4 a due 2023 were quoted late yea- terday down Y.. to 95~.96 to yield approximately 7.57%. Port Author- Ity o( New York and New Jersey 7'>48 due 2025 were down about two THE BOND BUYER, FRIDAY, AUGUST 24, 1990 I points to 92:v.-94 to boost the yield to 7.74%. And New Jersey Turn- pike 7.20s of 2018 were down % to 95:V.-9611. to yield approximately 7.53%. Returning to the short-term sec- tor. note traders reported that the market backed off another five to 10 basis points on the day. Califor- nia revenue antiCipation notes were quoted late In the day at a 6.15% bid, 6.13% offered. New York State tax and revenue antici- pation notes were quoted at a 6.29% bid, 6.27%. And the market for New York City tax anticipation notes was at a 6.20% bid, 6.15% offered. . Municipal debt futures ended the session dramatically lower, as the' September contract plunged P/~ to 87 -11. The MOB spread settled at negative 18. One New York futures trader re- ported a big seller during Wednes- day's session with more selling yes- terday. But he added that there were some funds In the market bot- tom-fishing. "It's not really bottom-fishing be- cause nobody knows where the bot- tom Is. but there are funds looking around to buy," the trader said. "The tone Is pretty negative. .If you're short you're okay. If you're long you're not. But there Is some value hunting out there." . In the prerefunded bond sector. traders reported only bid-wanted list activIty. Traders put the market off at least 13 basis points from yesterday's close. Prerefunded bonds with natlonal names with 'l 1995 call were quoted late ye:ner- day at a 6.87% bid. 0 . .. ., .- . . . . ~ Date June 29 . July 2 II July 6 II July 10 III July 13 I July 18 I July 27 August 10 I August 15 l August 17 August 21 I I CITY OF OCOEE, FLORIDA Transportation Refunding and Improvement Revenue Bonds, Series 1990 financing Schedule ~ S " T \I T f S 1 234 567 8 9 10 11 12 13 14 15 '16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ~ S~teaber SHTIITfS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 S " TilT f S 1 2345678 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Action to be Takefl Rcs/lonsihility Distribute first draft of bond resolution to working group BC for comments Distribute first draft of Preliminary Official Statement UC to working group for comments Document review session at 9;00 AM at the offices of Foley ALL & Lardner in Orlando , Distribute revised Bond Documents to working group for BC;UC comments Conference call 10;00 AM to be initiated by Foley & Lardner to finalize documents ALL Solicit bids for paying agent/registrar. Official Statement FA;UW Printer and Bond Printer Submit packages to Insurers Select Paying Agent and Printers CO Receive Insurance Commitments UW;F A Conference call - Resolution All Conference call - All documents for 8/21 meeting All Developer Agreements on record with the City IC . J:-. i .. . . , .. I: . i: ~ t ; II . ~ . Date August 21 August 22 August 28 August 30 September 10 September 12 September 18 September 19 September 26 September 27 CITY OF OCOEE, FLORIDA Transportation Refunding and Improvement Revenue Bonds Series 1990 Financing Schedule (Continued) Action to he Taken Regular meeting of the City Commission at 7:30 PM to adopt Authorizing Resolution, Preliminary Official Statement. and present financing plan and estimated costs Print and Distribute Preliminary Official Statement Market Bonds SpeciaJ Meeting of the City Commission at 7:30 PM to Submit Bond Purchase Agreement and Award Resolution to City Receive comments from Working Group on Official Statement Finalize and send out draft of closing documents Print and distribute Final Official Statement Print bonds Resnonslhllitv BC;FA;UW UC;UW UW;FA;CO BC;UC;FA;CO All All UC;UW BC Prepare and send out closing memorandum to Working UW Group Pre-dosing All Closing All CO FA BC UC UW ALL City of Ocoee Staff/Officials Financial Advisor Bond Counsel Underwriter's Counsel Underwriter All Parties - \... I I I I I I I ~ I I \w. CITY OF OCOEE, FLORIDA Transportation R~ftinding and Improvement Revenue Bonds, Series 1990 WorkinQ Group List ISSUER CITY OF OCOEE 150 North Lakeshore Drive Ocoee, Florida 34761 407-656-6370 407-656-5725 FAX Ellis Shapiro City Manager FINANCIAL ADVISOR Stanley Cohen Lisa Layne Rachlin & Cohen 1320 South Dixie Highway, Penthouse Coral Gables, Florida 33146-2964 305-667-0412 305-665-7456 FAX Ivan A. Poston Finance Director James W. Shira City Engineer/Utility Director UNDERWR ITERS ISSUER'S COUNSEL Craig M. Hunter, First Vice President Susan F. McGarry, Vice President Kacy Turner, Vice President William R. Hough & Co. 100 Second Avenue South, Suite 800 St. Petersburg, Florida 33701 813-895-8880 813-895-8850 FAX J. Gordon Arkin, Esquire James F. Basque, Esquire Paul E. Rosenthal, Esquire Foley & Lardner, Van Den Berg, Gay, Burke, Wilson & Arkin 111 North Orange Avenue, Suite 1800 Orlando, Florida 32801 407-423-7656 407-648-1743 FAX UNDERWRITER'S COUNSEL 'I I I I I I I Thomas F. Lang, Esquire Mike Williams, Esquire Honigman, Miller, Schwartz & Cohn 135 West Central, Suite 1100 Orlando, Florida 32801 407-648-0300 407-648-1155 FAX BOND COUNSEL Randall W. Hanna, Esquire Christian Meffert, Esquire Bryant, Miller & Olive, P.A. 201 South Monroe Street Suite 500 Tallahassee, Florida 32301 904-222-8611 904-224-1544 FAX CONSULTING ENGINEE~ Robert L. Campbell PEe/Professional Engineering Consultants 200 East Robinson Street, Suite 1560. Orlando, Florida 32801 407-422 8062 407-849-9401 FAX II ~ II II II - II ~ t - I ~ -- , ~ ~. t- 'I CITY OF OCOff. FLORIDA Transportation/Refunding and Improvement Revenue Bonds. Series 1990 ./ Workinq Group List. continued BOND INSURE~ David Glasser MBIA 113 Ki ng Street Armonk, New York 10504 914-765-3512 ESCROW AGENT/PAYING AGfNT Gail Clapp Citizens & Southern Trust Company One Financial Plaza P.O. Box 5367 Ft. Lauderdale. Florida 33340-5367 305-765-2086 . . ~ I AUDITORS Elden G. McDirmit. CPA McDirmit, Davis & Company, P.A. 612 East Colonial Drive, Suite 350 Orlando, Florida 32803-4603 407 -648-0713