05-15-1978 Special Meeting
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MINUTES
SPECIAL MEETING
A Special Meeting of the City Council of the City of Clermont was held in the office of
the City Manager on Monday, May 15, 1978. The meeting was called to order at 5:05 P.M.
by Mayor Claude E. Smoak, Jr., with the following members present: Councilmen Schroedel,
Byrd, and Honey. Others present were: City Manager Tiffany, City Attorney Baird, City Clerk
Carroll, Finance Director Sanchez, Messrs. Wagner and Benham of Southeastern Municipal
Bonds, Inc., and Bond CounselLinscott of Young-Turnbull & Linscott, P.A.
Mayor Smoak announced the purpose of the meeting was to consider a refunding issue on
Clermont Utility Bonds.
Mr. Ben Benham appeared before Council to submit a proposal for water and sewer bond
refunding at $1,995,000 with a present value of cost savings to the City between
$30,000 and $35,000. In addition to the cost savings, he opined that a consolidation of
the City's existing three bond issues into a refunding program would simplify the required
involved bookkeeping and recording of the City's outstanding debt. Mr. Benham further
advised that inasmuch as time is of the essence for execution of a purchase contract, and
there had not been sufficient time for Council's thorough consideration, an amendment to
the purchase contract had been prepared for insertion as Item 14 on page 6 as follows:
Notwithstanding any provisions herein to the
contrary it is specifically understood and
agreed by the parties hereto that any act,
omission, or failure of any kind on the part
of the City of Clermont to perform any ob-
ligation herein shall not render the City
liable for any damages or specific performance
to the Underwriters and the City shall not be
under any further obligation.
Mayor Smoak inquired of City Attorney Baird and Bond Counsel if inclusion of such a specific
"hold harmless" clause for the City would be acceptable to the Internal Revenue Service,
and they replied in the affirmative. Mayor Smoak thereupon moved that the purchase contract
as amended. between the City of Clermont and Southeastern Municipal Bonds Inc.. be
accepted and executed by the proper City officials. The motion was seconded by Councilman
Honey and unanimously carried.
Mayor Smoak requested that City Attorney Baird, City Manager Tiffany, and Finance Director
Sanchez prepare a firm recommendation as to the desirability for the City to pursue a
refunding program, for Council's consideration at the next Regular Meeting, following
their study and consideration of the proposed Bond Ordinance and Resolution.
CLA~.~YOR
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DOLORES W. CARROLL - CITY C RK