06-13-84 v MINUTES OF THE SPECIAL CALLED MEETING OF THE ATLANTIC BEACH CITY
COMMISSION HELD AT THE CITY HALL ON JUNE 13, 1984 AT 7:00 P.M.
PRESENT: William S. Howell, Mayor-Commissioner
Robert B. Cook, Sr.
William I. Gulliford, Jr.
John W. Morris, Jr.
AND: A. William Moss, City Manager
Claude L. Mullis, City Attorney
Adelaide R. Tucker, City Clerk
ABSENT: Catherine G. Van Ness, Commissioner - Out of town
The meeting was called to order at 7:00 p.m. by Mayor Howell to discuss
the financing requirements for the wastewater system improvements
program. Mr. Robert Stubbs, financial analyst, presented his evaluation
of the State Bond Loan Program and offered several term possibilities
based on the user charges that are now in effect. He also stated that
the Department of Environmental Regulation will require an annual
deposit of an invested fund of approximately $30,000. Mr. Stubbs
recommended the city go with a loan for a period of fifteen (15) years
and is an annual debt service. The estimated interest cost would be 9%.
Commissioner Cook asked what was the purpose of the annual $30,000 DER
deposit, and Mr. Stubbs replied that DER requires all grantees to acrue
the construction costs in the future value sense over 30 years at 8. 125%
for partial funding of replacement. The City Manager noted that the city
has been doing basically the same thing since 1977 through its impact
charges. Discussion followed on whether to go for 15 years or 30 years,
and Mr. Stubbs added that the city would save about 1.588 million
dollars in interest if they go for the 15 year bond instead of the 30
year bond. Commissioner Gulliford asked Mr. Stubbs if he didn't think
a projected net interest of 9% on a 15 year term was unrealistic. Mr.
Stubbs said no.
City Attorney Claude Mullis briefly outlined the procedures that will be
followed for the State bond loan fund: As soon as DER approves the
estimated cost and the program, the application will come back to the
division of bond finance. Mr. Bink, the lawyer assigned to handle the
Atlantic Beach bond loan will then prepare a Resolution and submit it to
the Governor and the State cabinet for approval to file suit in the Leon
County Circuit Court to validate the bonds. After he files suit it will
be a 30 day waiting period for the property owners or others who care to
intervene. Once the final judgment is entered validating the bonds, then
you have a period of 20 days that must expire before the bonds can be
sold. Mr. Mullis explained that the Division of Bond financing will
handle all the procedures involved and their fee will be $28,000. Once
the bonds are sold those proceeds are turned over to the State Board of
Administration and they invest them and will charge the city an annual
fee of approximately $264. Once you get the approval of DER it will be
approximately four to six months before you can expect to have money.
PAGE TWO
MINUTES-SPECIAL CALLED
JUNE 13, 1984
Mr. Mullis advised that one of the reasons he mentioned this, it is going to
considerably affect the time frame schedule that has been set up with DER.
He said that he would get together with Mr. Moss asfar as reviewing the
consent order that the State has submitted to us on the moratorium. The City
Manager expressed the opinion that he didn't think we would need any money
until March, 1985.
Discussion was held on the pros and cons of going with the State Bond Loan
Program. Mr. Stubbs said that the reason he investigated it in the first
place was that the city might have some major capital expansion that we
would want to fund with Revenue Bonds and get the State Bond loan out of the
way. His question to the State was - under such circumstances, could
Atlantic Beach establish an escrow fund adequate to pay the debt service on
the outstanding State fund loan, and the answer was yes. Whether the State
would refund the funds is a different question. Commissioner Gulliford asked
if the City Attorney and Mr. Stubbs could get a response from the State on
that. It was sugested that the City Attorney and City Manager stay on top of
the matter to protect the interests of the city, and if necessary, take a
trip to Tallahassee to discuss the matter.
Following discussion, Commissioner Morris moved for the following motion:
Motion: Move that the City proceed with the State Bond Loan Program
with a financing of 1.5 million dollars for a term of fifteen
years, subject to economic feasibility.
The motion was seconded by Commissioner Gulliford and carried unanimously.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Mayor Howell stated that we need to be very careful and get a time frame
nailed down. We wants to show DER that we are moving ahead. He also stated
he wants the consent agreement right before the City signs it. The
Commission unanimously agreed. He said there were some legal problems that
have to,.be watched very carefully, some financing problems that have to be
watcheC'engineering problems and suggested that everyone should keep every
body strictly advised all along the way with a 100% team effort.
;a1
There being no further business to come before the Commission yor owell
declared the meeting adjourned.
e4/0",1ia L Hbwe l
(SEAL) Mayor-Commissioner
ATTEST:? � yJJ,,,,
Adelaide R. Tucker
City Clerk