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05-02-1988 Special Meeting e. e 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 - . 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. &a~~ "Ro ert A. Pool, Mayo Attest: