05-02-1988 Special Meeting
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CITY OF CLERMONT
MINUTES
SPECIAL COUNCIL MEETING
May 2, 1988
A Special Meeting of the City Council of the City of Clermont was
held Monday, May 2, 1988 in the City Council Chambers. The meeting
was called to order at 6:30 p.m. by Mayor Pool with the following
Council Members in attendance: Council Member Huff, Council Member
Dupee and Council Member Cole. Other City Officials present were
City Manager Saunders and Finance Director Van Zile.
FmHA LOAN BUYOUT PROGRAM
City Manager Saunders stated that the purpose of the meeting was to
discuss the FmHA Loan Buyout Program now being offered by the FmHA.
He then explained that under the program a City can buy back any
existing FmHA Bond Issues at a discount. The City of Clermont now
has outstanding issues totaling $2,787,900, which can be bought
out at a discount of $637,800.
Finance Director Van Zile explained the refinancing options which
were either another bond issue or the Gulf Breeze Loan Pool. The
difference in bond and loan rates compared to the rates on the
existing issues was explained and each Council Member was provided
with a printout comparing the existing annual debt service to the
projected debt service for refinancing.
Mr. Van Zile then explained that the FmHA must be notified by
Friday, May 6, 1988, if the City intends to participate in the
program and a good faith deposit of 5% must be submitted. In the
event the refinancing cannot be secured and the City is unable
to buyout the bonds by July 11, 1988, the deposit will be credited
to the final bond payments.
City Manager Saunders explained that the 1984 bond issue for the
expansion of the treatment plant would be included in the buyout
only if certain conditions were met, including a final approval
by FmHA of the project. Mr. Saunders stated that he would be
meeting with City Engineer Springstead prior to Friday, May 6th
to determine if the conditions could be met.
After some further discussion of the overall savings and the
88-065 advantages of refinancing, A MOTION WAS MADE BY COUNCIL MEMBER
DUPEE, SECONDED BY COUNCIL MEMBER HUFF AND UNANIMOUSLY CARRIED
AUTHORIZING THE CITY MANAGER TO NOTIFY THE FmHA OF THE CITY'S
DESIRE TO BUY OUT THE 1975 AND 1980 ISSUES, AND ALSO THE 1984
ISSUE IF, IN THE STAFF'S OPINION THE CONDITIONS FOR THAT ISSUE
CAN BE MET BY JULY 11, 1988, AND TO SUBMIT TO FmHA A GOOD FAITH
DEPOSIT OF 5%.
Finance Director Van Zile stated that he had already made application
to the Gulf Breeze Loan Pool and has been talking to several invest-
ment bankers about a bond issue. He further stated that he felt
confident that financing could be in place by July 11, 1988 for the
buyout.
OTHER BUSINESS
CLERMONT JAYCEE CHAPTER
City Manager Saunders stated that the recently formed Jaycee Chapter
had contacted him about leasing the Beach House from the City. Their
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CITY OF CLERMONT
MINUTES
SPECIAL COUNCIL MEETING
May 2, 1988
Page -2-
idea was to turn it into a snack bar. After some discussion, it was
the consensus of Council that the current vending operation has been
running smoothly and no one wished to consider a change at this time.
LAWSON WOLFE PROJECT
City Manager Saunders informed the Council that Mr. Wolfe had placed
his office complex project for Highway 50 and Disston Avenue on hold,
but was going ahead with plans for his Home Supply Center which would
still require the construction of Disston Avenue between Highway 50
and Highland Avenue. The original plan was for Mr. Wolfe's engineer
to design and obtain DOT permitting for the road as part of their
project. After discussion with City Engineer Springstead and the
project engineer, it was determined that it would be in the best
interest of everyone involved to have the City Engineer design the
road and the City obtain the permits. All costs, including
engineering, will still be allocated between the City and Mr. Wolfe
as a 45% City - 55% Mr. Wolfe split. Mr. Saunders stated that if
there were no objections, he would proceed with this plan. There
were no Council objections.
LAKE COUNTY FIRE DEPARTMENT
City Manager Saunders explained that he had received a letter from
Chief Sowers of the County Fire Department requesting the City to
consider turning over its department to the County. After some
discussion, it was the consensus of Council that it would not be
to any advantage to the City, but if would be interesting to see
what the County would offer. City Mana~er Saunders stated that he
would contact Chief Sowers for further proposals.
There being no further business, the meeting adjourned at 7:50 p.m.
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"Ro ert A. Pool, Mayo
Attest: