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10-17-95 v • CITY OF ATLANTIC BEACH OCTOBER 17, 1995, 7:30 P.M. SPECIAL CALLED MEETING AGENDA Call to order 1. Presentations by the city's financial advisors, First Union Capital Markets Corporation, relative to options for funding proposed capital improvement projects 2. Action on Resolution No. 95-33 approving investment bankers for the purpose of providing moneys for the financing of water, sewer, and stormwater utility improvements; authorizing the city's staff and financing team to prepare and present to the City Commission a proposed structure for the financing;authorizing the preparation of necessary documents to accomplish the financing, including necessary ordinances, resolutions, and reports 3. Any other business Adjournment MINUTES OF THE SPECIAL CALLED MEETING OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBERS, 800 SEMINOLE ROAD, AT 7:30 PM ON TUESDAY, OCTOBER 17, 1995 Present: Lyman T. Fletcher, Mayor Steven M. Rosenbloom. Commissioner Suzanne Shaughnessy, Commissioner J. Dezmond Waters, III, Commissioner Robert G. Weiss, Commissioner Also: Kim Leinbach, City Manager Jim Jarboe, Deputy City Manager Alan Jensen, City Attorney Maureen King, City Clerk The meeting was called to order by Mayor Fletcher. 1. Presentation by the City's financial advisors, First Union Capital Markets Corporation, relative to options for funding proposed capital improvements projects Gene Cahalan of First Union Capital Markets Corporation, reported Requests for Proposals (RFP's) had been sent to twenty-seven major banks, qualified firms and others who had expressed an interest in providing financing for the city's proposed capital improvement projects. Twelve responses had been received, ten of which were from securities firms and two were joint proposals from commercial banks and investment banks. He pointed out that no proposal had been received for a bank loan. Outside the scope of this project, Mr. Cahalan indicated the city would need to solicit fmancing proposals from commercial banks for approximately $1.3 million for refinancing the City Hall balloon note, purchasing vehicles, renovations to public safety and lifeguard buildings, and park improvements. Mark Galvan of First Union Capital Markets Corporation indicated the proposals had been evaluated on three criteria - cost, flexibility, and experience. After reviewing the proposals the financial advisors recommended that the firms of William R. Hough & Co., Prudential Securities, Inc., and Raymond James & Associates, Inc., be selected as the financing team with William R. Hough & Co., serving as the senior lead manager with whom the financial advisors would negotiate on behalf of the city. Page Two Minutes - Special Called Meeting October 17, 1995 Robert Freeman of Squires, Sanders and Dempsey indicated he had drafted a resolution which could be adopted in the event the city accepted the recommendations of the financial advisors. Following the presentations by the financial advisors the Mayor opened the floor for public comments. Albert Rabassa inquired relative to the projects to be fmanced, and whether the projects could be completed for the amount of money proposed to be borrowed. The Mayor and commissioners responded to Mr. Rabassa's questions and advised him that the City Commission and city staff had spent many hours over the past two years analyzing the projects, and within the next four weeks a engineering study would be undertaken, following which more specific information would be available. 2. Action on Resolution No. 95-33: A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA, APPROVING INVESTMENT BANKERS FOR THE PURPOSE OF PROVIDING MONEYS FOR THE FINANCING OF WATER, SEWER AND STORMWATER UTILITY IMPROVEMENTS; AUTHORIZING THE CITY'S STAFF AND FINANCING TEAM TO PREPARE AND PRESENT TO THE CITY COMMISSION A PROPOSED STRUCTURE FOR THE FINANCING; AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS TO ACCOMPLISH THE FINANCING, INCLUDING NECESSARY ORDINANCES, RESOLUTIONS, AND REPORTS; AND PROVIDING AN EFFECTIVE DATE Mayor Fletcher presented in full, in writing, Resolution No. 95-33. Commissioner Rosenbloom moved to accept the recommendations of the financial advisors and adopt Resolution No. 95-33. The motion was seconded by Commissioner Shaughnessy, and following brief discussion,was unanimously approved. Commissioner Rosenbloom thanked the fmancial advisors for their work in analyzing the proposals and presenting the pertinent information to the City Commission in a concise and simplified form. Page Three Minutes - Special Called Meeting October 17, 1995 3. Any other business There being no further business to come before the City Commission, the Mayor declared the meeting adjourned at 8:20 p.m. Lyman T. Fletcher MAYOR ATTEST: Ma een King CITY CLERK to - 11 —ate City of Atlantic Beach, Florida Summary of Responses to Request for Proposals Barnett/ SunBank/ A.G. William R. Lehman Prudential Rauscher Raymond Smith SouthTrust Ward Stephens SunTrust Edwards Alex Brown Hough Brothers Securities Pierce James Barney Securities Bradford (Joint) (Joint) Debt Repayment Profile Level Level Level Level Level Level Level Level Level Level Increases Decreases Maximum Annual Debt $1,584,932 $1,583,800 51,576,753 51,587,850 $1,571,100 $1,602,813 $1,564,400 N/A 51,622,883 $1,579,783 51,648,925' 51,678,067' Service Total Debt Service $46,847,078 546,809,379 546,601,109 546,928,436Y$46,432,181 $47,354,117 146,253,080 N/A 548,686,482 546,706,003 $47,048,954 545,435,11I Additional Bonding Approx. Approx. Approx. Approx. Approx. Approx. Approx. N/A $0 Approx. SL5 million 50 Capacity' $2,000,000 52,000,000 52,000,000 52,000,000 52,000,000 $2,000,000 $2,000,000 $2,000,000 (1996-1998); until 2008; SO thereafter $2.0 million thereafter Response to Structure All Bonds- All Bonds- All Bonds- All Bonds - All Bonds - All Bonds - All Bonds- N/A All Bonds - All Bonds - Bank Loan/ Bank Loan/ Refunding Refunding Refunding Refunding Refunding Refunding Refunding Wraparound Refunding Bonds Bonds and New and Ncw and New and New and New and New and New and New Money Money Money Money Money Money Money Money Experience on W&S Issue 17 deals co- 3 FL deals 60 FL deals, 7 FL deals I I FL deals not very senior 50 sole or None in FL I co-senior 2 in Fl 6 in FL senior, senior senior, co- senior senior many;can't managed not senior in Fl looking for (excluded senior or senior or managed managed tell which specified(42 co-manager IDBs) i sole sole were senior total deals) only manager manager managed since 1991 (I) $1,567,680 Until 2010 (2) $1,359,300 After 2008 (3) Based upon existing rates;does not take into account any rate increases lNll/ATL I6.003/GRID-AMM-l ' City of Atlantic Beach, Florida Request for Financing Proposals Did Respond Did Not Respond A.G.Edwards &Sons,Inc. X Alex Brown&Sons X Artemis Capital Group,Inc. X Bank South Securities X Barnett Bank of Jacksonville,N.A. X Joint with Stephens Inc. Bear,Stearns&Co.Inc. X First Union National Bank of FL X Gardnyr Michael Capital X Goldman,Sachs&Co. X William R.Hough&Co. X The Leedy Corp. X Lehman Brothers X Merrill Lynch& Co. X Miller&Schroeder Financial Inc. X Morgan Stanley&Co.Inc. X Nationsbanc Capital Markets X NationsBank X PaineWebber Incorporated X Prudential Securities Incorporated X Rauscher Pierce Refsnes,Inc. X Raymond James&Associates X Smith Barney,Inc. X Southtrust Bank of Northeast FL(1) X Stifel,Nicolaus&Co.,Inc. X SunBank,N.A. X Joint with Suntrust Capital Suntrust Capital Markets,Inc. X Joint with Sun Bank Ward,Bradford&Co. X (o The RFP was sent to Southtrust Bank. Southtrust felt their best proposal would come from their Capital Markets Group.