12-20-88 v CITY OF ATLANTIC BEACH
SPECIAL MEETING
DECEMBER 20, 1988
6:30 P.M.
AGENDA
I. Roll Call
II. Action on Resolutions:
(A) Resolution 88-28 - Introduction and adoption of Resolution
authorizing the borrowing of $2.3 million dollars for paving
and drainage improvement in Section H.
t (B) Resolution 88-29 - Introduction and adoption of Resolution
authorizing the borrowing of $1.4 million dollars for water
and sewer improvement in Section H.
III. Any other business
Adjournment
P-
- - MINUTES OF THE SPECIAL MEETING OF THE ATLANTIC TIC BFACEI CITY
COMMISSION HELD AT CITY HALL ON DECEMBER 20, 1988, AT 6:30 PM
The meeting was called to order by Mayor Gulliford. Present were Mayor
William I. Gulliford, Jr. , and Commissioners Glenn A. Edwards, Alan C.
Jensen, and Adelaide R. Tucker. Also present were City Attorney Claude
Mullis, City Manager Richard Fellows, and City Clerk Maureen King.
Ccmnissioner Robert B. Cook, Sr. , was absent.
ACTION ON RESOLUTIONS:
A. Resolution No. 88-28
Mayor Gulliford presented in full, in writing, Resolution No. 88-28
authorizing the borrowing of $2,160,000 for paving and drainage
improvements in Section H.
Ccmnissioner Jensen moved for passage of Resolution No. 88-28.
The notion was seconded by Commissioner Edwards.
During discussion, Commissioner Edwards asked why the two loans involved
were not grouped together into one transaction. Mr. Dan Livermore of the
law firm of Livermore, Klein and Lott, explained that local option gas
tax can only be used to pay for improvements to roads and drainage and
had been pledged to repay this loan. The improvements to the water and
sewer system provided for in Resolution No. 88-29 can be funded through
utility taxes and other allowable revenues. In view of this it was felt
that two separate loans would be simpler to administer and provide for
better accountability of use of funds.
Commissioner Edwards further asked how much of the actual loan amount the
City would receive after legal expenses, etc. , have been paid. Mr. Bill
Weathers of Southeastern Municipal Bonds, Inc. , had presented each
Commissioner with a breakdown of sources and uses of funds prepared by
the Government Credit Corporation, for the Gulf Breeze Loan Program. He
outlined $2,872,766 for construction, $521,314 for engineering, based on
the engineer's estimate, and contingencies of $69,997.50. Other costs
include legal, financial fees, and Gulf Breeze' fee. Mr. Weathers stated
he had enjoyed working with the City of Atlantic Beach and had based his
fee on one bond issue only, representing a saving of some $10,000 to the
City.
Commissioner Jensen asked what funds would be used to finance the
$140,000 shortfall. City Attorney Mullis indicated a substantial portion
of this has already been paid in engineering fees etc. It was also
pointed out once the bond funds have been received they can be invested
until they are needed for the project.
The City Manager asked if the City could pay the loan off early without
penalty if it became necessary to scrap the project. This is addressed
in the loan agreement and no penalty is indicated. It was also pointed
„-- out when the landowners pay assessments, this money can be invested and
should represent substantial earnings.
Harry Royal, City Finance Director, who was in the audience, stated the
Utility Tax which is pledged for this issue is currently budgeted for
general fund purposes, and should this Utility Tax be used to pay off the
bonds, the shortage will have to be made up from General Funds.
The question was called and the motion carried unanimously.
B. Resolution No. 88-29.
Mayor Gulliford presented in full, in writing, Resolution No. 88-29,
authorizing the borrowing of $1.4 million for water and sewer
improvements in Section H.
Cb mnissioner Edwards moved for passage of Resolution No. 88-29.
The notion was seconded by Commissioner Jensesn.
No discussion before the vote. The motion carried unanimously.
ANY OTHER BUSINESS:
The Mayor announced a workshop meeting has been tentatively scheduled for
January 3, 1989 to discuss the combination of the two sewage treatment
facilities and any other projects the Commission wishes to discuss in an
attempt to develop priorities.
I
A , diC_
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Villin . Gulliford
Mayor, Presiding Offic-
A'ITJ ST:
1.--N2c cite_A- L.Q
Maureen King, City Clerle
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