95-33 v RESOLUTION NO. 95-33
A RESOLUTION OF THE CITY COMMISSION 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 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.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC
BEACH, FLORIDA:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This resolution is adopted
pursuant to the provisions of Chapter 166, Florida Statutes, and other applicable provisions of
law.
SECTION 2. FINDINGS. It is hereby found, determined and declared by the City
Commission (the "Commission") of the City of Atlantic Beach, Florida (the "City"):
A. The City has heretofore on May 22, 1995, approved a plan of capital
improvements for the City's water and wastewater utility and the City's stormwater utility, as
subsequently supplemented (the "CIP").
B. The estimated cost of the CIP is approximately $12 million, and the City does not
have currently available funds to pay this cost. Therefore, the City has engaged the services of
First Union Capital Markets ("First Union") for the purpose of developing a plan for financing the
CIP (the "financing plan").
C. First Union has solicited proposals from commercial banks and investment banks
to provide funding for the CIP, and the results of this solicitation are summarized on Exhibit A
hereto.
D. First Union has recommended that the Commission appoint William R. Hough &
Co., Prudential Securities, Inc., and Raymond James & Associates, Inc. (the "Underwriters"), as
the investment bankers to the City for the purpose of providing funds to finance the CIP and has
requested permission to negotiate with William R. Hough & Co. to serve as senior managing
underwriter.
E. First Union has further requested authorization from the Commission to prepare
the financing plan and related documentation for presentation to the Commission at a date to be
determined.
F. It is necessary to authorize the City Attorney and Squire, Sanders & Dempsey
("SS&D), as bond and disclosure counsel to the City, to prepare necessary documents and take
the necessary steps to enable the City legally to borrow money pursuant the financing plan,
subject to final approval of the Commission.
SECTION 3. APPROVAL OF INVESTMENT BANKERS. William R. Hough & Co.,
Prudential Securities, Inc., and Raymond James & Associates, Inc., are hereby appointed as the
investment bankers for purposes of working with First Union to develop the financing plan and
providing moneys to the City to finance the CIP. First Union is directed to negotiate with William
R. Hough & Co. to serve as senior managing underwriter, and with Prudential Securities, Inc. and
Raymond James & Associates, Inc., to serve as co-managing underwriters for the financing plan.
SECTION 4. DIRECTION TO PROCEED WITH DEVELOPING FINANCING
PLAN. First Union, SS&D, the City Attorney, and City Staff are authorized and directed to take
the necessary steps and prepare the necessary documents in order to allow the City to receive
funds necessary to accomplish the CIP, subject to final approval of the Commission prior to any
solicitation of bids for financing terms and conditions.
SECTION 5. EFFECTIVE DATE. This resolution shall take effect upon its adoption.
PASSED AND ADOPTED at a Special Meeting duly called and held this 17th day of
October, 1995.
(SEAL) CITY OF ATLANTIC BEACH
ATTEST:
Mau een King, /
City lerk yman T. Fletcher, Mayor
APPROVED AS TO FORM:
`/" /I etit /i.
/ Alan C. Je, n, City Attorney
2
EXHIBIT A
RESOLUTION NO. 95-33
City of Atlantic Beach, Florida
Summary of Responses to Request for Proposals
Barnett/ SunBanW
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)
Debi Repayment Profile Level Level Level Level Level Level Level Level Level Level Increases Decreases
Maximum Annual Debt $1,584,932 $1,583,800 $1,576,753 SI,587,850 $1,571,100 51,602,813 51,564,400 N/A $1,622,883 $1,579,783 11,648,9251 51,678,0671
Service
Total Debt Service $46,847,078 $46,809,379 $46,601,109 $46,928,436 $46,432,181 $47,354,117 546,253,0130 N/A 148,686,482 $46,706,003 547,048,954 545,435,111
Additional Bonding Approx. Approx. Approx. Approx. Approx. Approx. Approx. N/A SO Approx. $1.5 million SO
Capacity' 32.000,000 52,000,000 $2,000,000 $2,000,000 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 New and New and New and New and New and New and New
Money Money Money Money Money Money Money Money
i_ ..
Experience on W&S Issue 17 deals co- 3 FL deals 60 FL deals, 7 FL deals 11 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)
sole sole were senior total deals) only
manager manager managed
since 1991
(I) $1,367,680 Until 2010
(2) $1,339,300 Ante 2008
(3) Based upon existing rates;does not take into account any rate increases
)24$/ATL I6.003/GRID-Aatt4-7
•
It