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HomeMy WebLinkAbout01-28-99 SS MINUTES OF THE OCOEE CITY COMMISSION SPECIAL SESSION HELD JANUARY 28,1999 Mayor Vandergrift called the Special Session to order at 7:05 p.m. III the Commission Chambers. The roll was called and a quorum declared present. PRESENT: Mayor Vandergrift, Commissioners Anderson, Glass, Howell 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. Hough and Company, who were pricing the bonds the day before. She introduced Brent Wilder, 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 11 :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 five 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 $5,140,000 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. He 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. Hough 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 $300,000.00 more in project funds are now available to the City by OCOEE CITY COMMISSION SPECIAL SESSION JANUARY 28, 1999 hitting the interest rate when they did. He explained the different things that helped secure this pricing, and he recommended the City Commission approve th~ Resolution. RESOLUTION NO. 99-05, AUTHORIZING THE NEGOTIATED SALE OF THE BONDS. City Attorney Rosenthal read the title of Resolution 98-05: A Resolution authorizing the negotiated sale of $11,405,000.00 City of Ocoee Capital Improvement Refunding Revenue Bonds Series 1999 awarding the sale thereof to SunTrust Equitable Securities Corporation and William R. Hough and Company 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; appointing a registrar, paying agent and escrow agent; providing for the form of the execution of an escrow deposit agreement; providing certain other matters in connection therewith and providing an effective date. At the end of the reading, City Clerk Grafton advised that the Resolution is 99-05, not 98-05. Commissioner Glass asked about the second "Whereas" clause on page 1 where the bonds are referenced as Series 1998. Mr. Rosenthal stated there had been a number of typographical errors on the original, which have been corrected. Commissioner Glass. seconded bv Commissioner Parker. moved to adopt Resolution 99-05 and authorize the Mavor and City Clerk and other staff as indicated in the Resolution to execute any and all documents required to effect the transaction therein. Motion carried 5- O. Mr. Galvin advised a pre-closing will be February 9, and the closing will be February 10, 1999, which is being scheduled through the City Manager's office. CODY AND ASSOCIATES SET DATE FOR WORKSHOP Buyer Meridith noted that Cody and Associates had been selected at the last Commission Meeting to conduct the employee survey and asked the Commission to select a date between February 4 and February 12 for a workshop to instruct Cody and Associates how the survey is to be conducted. Staff also requested that a member of the City Commission be designated as the contact person for Cody and Associates. Consensus was reached to schedule a workshop for 7:00 p.m. Thursday, February 11. 1999. 2 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 City of Ocoee ~~ ri t ~ c:>F4 )L.~,J S. Scott Vandergrift, Mayor t 3