11-06-1972 Supporting DocumentsMINUTES NQ 843
SPECIAL MEETING
A Special Meeting of the City Council of the City of Clermont was held in the
Council Chambers on Monday, November 6, 1972. The meeting was called to order
at 7:30 P.M. by Mayor Don E. Smith with the following members present: Councilwoman
Watson and Councilmen Schroedel, Beals and Smoak. Other officials present were:
City Manager Hopkins, City Controller Fleming, City Clerk Carroll, City Attorney
Langley and Chief of Police Tyndal. Others present were: Mrs. Sheila Langley
and the Messrs. Willard Hoebeke, Robert Wagner and W. Shepard.
The meeting was called to consider a proposal by Stone and Youngberg, Municipal
Financing Consultants, Inc. for the refunding of the city's water and sewer
revenue bonds, and a brief resume of this proposal was given by Mr. Wagner.
Council was advised there would be a savings in the amount of $171,923.00 with
a new issue of the bonds as proposed.
Councilman Smoak inquired if any other bond houses had been contacted with regards
this matter and he was advised in the negative. Controller Fleming reported that
inquiries had been made to the city previously and information has been furnished
to them, however, they had never suggested nor presented a proposal. Councilman
Smoak advised that he had no qualms about the proposal as submitted by Mr. Wagner,
but that he felt Council should have more time to consider any and/or other
alternatives. Councilman Smoak inquired of Mr. Wagner if there be any cost to the
city incident to the issuing of the new bonds whereupon Mr. Wagner replied that
all such costs were to be borne by them and were specifically listed in the
proposal, but that he would verbally advise at this time that there would be no
cost to the City of Clermont incident to his company purchasing the present bonds
and the issuance of new ones.
Motion was made by Councilman Beals and seconded by Councilwoman Watson that
the offer of Stone & Youngberg to purchase the City of Clermont Water and Sewer
Revenue Refunding Bonds in the amount of $1,540,000 and per the agreement submitted
under date of November 6, 1972 be accepted and the Mayor and Clerk be authorized
to execute the agreement. Upon roll call vote on passage of the motion, the
result was: Ayes: Schroedel, Watson and Beals. Total Ayes: Three. Nayes: Smith
and Smoak. Total Nayes: Two. The motion carried.
The meeting was adjourned by Mayor Smith.
r Don E. Smith, Mayor
Dolores W. Carroll, City Clerk
November 2, 1972
Mayor Don E. Smith
1336 Holly
Clermont, Florida 32711
Dear Mayor Smith:
A Special Meeting of the City Council of the City of Clermont
has been called for Monday, November 6, 1972 at 7:30 P. 11. in
the Council Chambers.
The purpose of the meeting is to consider bond refunding of
the water and sanitary sewer revenue bonds.
Dolores W. Carroll
City Clerk
November 2, 1972
firs. Johnnie Watson
1713 Virginia Drive
Clermont, Florida 32711
Dear Mrs. Watson:
A Special Meeting of the City Council of the City of Clermont
has been called for Monday, November 6, 1972 at 7:30 P. M.
in the Council Chambers.
The purpose of the meeting is to consider bond refunding of
the water and sanitary sever revenue bonds.
Dolores W. Carroll
City Clerk
movember 2, 1972
Mr. Charles Deals
659 Cast Avenue
Clermont, Florida 32711
Dear fir. Beals:
A Special Ileeting of the City Council of the City of Clermont
has been called for Monday, November 6, 1972 at 7:30 P. 1-1.
in the Council Chiimiuers,
The purpose of C11(,' to consider Uond refunding of
the vlater and revenue Ponds.
November 2, 1972
Itr. Claude [. Smoak, Jr.
355 Se'-ond St
Clermont, Florida :32711
Dear Mr. Smoak:
A Special hfeeting of the City Council of the City of Clemont
fias been called for Monday, Movember, 6, 1972 at 7:30 P. Fi. in
the Council Chambers.
The purpose of the meeting is to consider hond refunding of
th^ t:zt and s;ri r"e bonds.
Dolores ',!. Carroll
CiC: Cleric
November 2, 1972
Mr. George Schroedel
1626 Fourth StruA
Clermont, Florida 32711
Schroedel
A Special Meeting of City Council os the City of Clermont
has been called for ember G, 1972 at 7:30 P.M. in
the Council
The "wPo-1, I '-,o rlon.-, b,-,n.d refundi nq a
the wat.,,W and S,w i o
Poloce., Carroll
November 2, 1972
Mr. Richard N. Langley
P. 0. Pox 188
Clermont, Florida 32711
Dear hIr. Langley:
A Special lleeting of the City Council of the City of Clermont
has teen called for i"onday, Novembe;r C, 1972 at 7:30 P. M.
in the Council Cha;nher::.
The purpose of the nnae+,:in•,is !:a Cnnsidcr bond refunding of
the eater and sanit�ir; set!er revrnue bends.
Dolores '.d. Carroll
CiP.v Clerk
Homnbe'r 2, 1972
South Lake Press
737 Eighth Street
Clr_rraont, Florida 32711
Gentlemen:
A Special Meeting of the City Council of the City of Clermont
has been called for iionday, November 6, 1972 at 7:30 P.H. in
the Council Chambers.
The purpose of the meeting is to consider bond refunding of
the water and sanitary server revenue Fonds.
O1 ii'frS ''.I. Carroll
STONE & YOUNGBERG
MUNICIPAL FINANCING CONSULTANTS. INC.
November 6, 1972
Honorable Mayor and Members
City Council
City of Clermont, Florida
Gentlemen:
For $1 , 540, 000 City of Clermont, Florida Water and Sewer Revenue
Refunding Bonds, American Appraisal Securities (Stone & Youngberg
Municipal Financing Consultants, Inc. (hereinafter referred to as
"Purchaser"), agrees to purchase and the City of Clermont, Florida
(hereinafter referred to as "City"), agrees to sell subject to the follow-
ing terms and conditions:
Purchaser agrees to pay One Million Five Hundred Forty Thousand Dollars
($1,540,000 ) plus accrued interest from date of issue to date of delivery.
The Bonds shall be in coupon form, registrable as to principal only, in
$5,000 denominations dated November 1, 1972, payable at a bank or
banks to be designated by the Purchaser and shall mature on November 1
in the following years and amounts and shall bear the following interest
rates (s):
Maturity
Amount
Rate
1985
$ 50,000
6.00%
1986
50,000
6.00%
1987
55,000
6.00%
1988
60,000
6.00%
1989
60,000
6.00%
1990
65,000
6.00%
1991
70,000
6.00%
1992
75,000
6.00%
1993
80,000
6.00%
Maturity
Amount
Rate
1994
$85,000
6.00%
1995
90,000
6.00%
1996
95,000
6.00%
1997
100,000
6.00%
1998
105,000
6.00%
1999
115,000
6.00%
2000
120,000
6.00%
2001
130,000
6.00%
2002
135,000
6.00%
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Honorable Mayor and Members
Clermont City Council
Page 2
Redemption Provisions
Bonds maturing in the years 1983 and thereafter are redeemable prior to
their respective dates of maturity at the option of the Council, in whole
or in part, in inverse numerical order if less than all on November 1,
1982, or on any interest date thereafter, at par plus accrued interest to
date of redemption, plus a premium of 3% if called on November 1, 1982,
and reducing by 1/4% on each annual principal payment date thereafter.
Bonds of this issue maturing in the years prior to 1983 are not redeemable
prior to their respective stated dates of maturity.
Validation and Approval of Legality
This offer to purchase the bonds is subject to validation by judgment of
the Circuit Court in and for Lake County, Florida, and subject to the
approval of Messrs. Freeman, Richardson, Watson, Slade & McCarthy,
Jacksonville, Florida, whose approving opinion will be provided at the
time of delivery.
The Refundin
Enough funds will be set aside from the proceeds of the issue to retire all
the 1970 bonds which are subject to redemption prior to their stated dates
of maturity. The 1970 bonds maturing from 1975 to and including 1985
will not be refunded but will remain outstanding as a first lien on the
water and sewer revenues.
Purpose
These bonds are being issued to pay the cost of refunding a portion of the
outstanding Water and Sewer Revenue Bonds of the City dated November 1,
1970.
Further Conditions
The authorizing resolution for the bonds will contain protective covenants
similar to those contained in the authorizing resolution for the 1970 bonds.
;.l
Honorable Mayor and Members
Clermont City Council
Page 3
The depository and trustee banks for the Refunding Escrow Fund and the
Sinking Fund will be designated by the City pursuant to the recommenda-
tion of the Purcha ser.
The Purchaser guarantees to provide the securities to be escrowed at
closing at a price to yield the same return as the refunding bonds shall
bear and City agrees to purchase said securities from proceeds of this
bond issue. The Purchaser agrees to pay the following costs incident to
the issuance of the bonds: the cost of printing and distributing the sales
brocure; the cost of printing the bonds; the cost of delivering the bonds
(including the cost of travel and lodging for representatives of the City);
the fee of Freeman, Richardson, Watson, Slade & McCarthy, Bond Counsel;
the Purchaser's own travel, telephone, office and out-of-pocket expenses;
the cost of any advertising necessary to the issuance of the bonds and
the fee of the City's attorney.
Delivery
The interim bonds shall be delivered to the Purchaser by February 1, 1973,
subject to being validated, and this transaction shall be closed by said
date.
Execution
Please indicate your acceptance of the above proposal by signing in the
space indicated below.
ACCEPTED: Very truly yours,
CITY OF CLERMONT, FLORIDA
By
Title
Date �✓ L 7L
ATTEST:
AMERICAN APPRAISAL SECURITIES
(Stone & Youngberg Municipal
Financing Consultants, Inc.)
By .
Vice Presi t
ATTEST:
By