Loading...
HomeMy WebLinkAbout86183 - MINUTES - City Commission MINUTES OF SPECIAL MEETING, CITY COMMISSION, CITY OF DANIA, FLORIDA, HELD AUGUST 28, 1964. The City Commission of the City of Dania, Florida, met in Special Session in the Commission Room at the City Hall. Present were:• MAYOR-COMMISSIONER VERA L. HILL COMMISSIONERS ROBERT L. GRAMMER VIRGIL L. TARPLEY JOSEPH D. THORNTON S. ELLIS YOUNG CITY ATTORNEY CLARKE WALDEN CITY MANAGER LESTER E. CULVERSON BUILDING INSPECTOR CHARLES LINDEMAN DEPUTY CLERK MILDRED PIPKIN The meeting was called to order at 7:30 P.M. by Mayor Hill. Mayor Hill: The purpose of the meeting is to discuss the financing of the Sewer Program. We will hear Mr. Hannan's proposal, then we will be open for discussion on what we learned at Atlanta, and we will decide which one we want to go with. Harvey Hennan: I consulted with your City Engineer. We decided that the approximate amount for financing would be $2,230,000.00 (two and one quarter million dollars). The construction phase will run $2,093,000.0O, less an antici- pated government grant of $224,000.00, which will be a total of $1,869,000.00. It is my understanding that you have been at the top of the list for several years. So it . r is almost routine that you will get the loan. The Engineering is as specified in the Engineering Report. The bond discount is 1%,. that is $22,500.00. This compares with the figures that were calculated by the Engineer in terms of what the government requested at $35,000.00. We pay the bond attorney,, the printing, the delivery, and all . relative costs. In the Federal program, these costs are . paid by the City, and there are other allocations that among them total about $359000.00, including field inspection fees. and some other fees that the Federal Government. charges. Attorney Walden: When will this money be available, I mean the proceeds? Does the City have to get what amounts to a construction loan? Harvey Hannan: No. The money would be available in approxi- mately 65 days. We will have a bond resolution in 2 weeks, and we will--have the validation papers available at that time, available to adopt and file for validation immediately. Since it is a sewer project, you can get it at almost the :minimal time, which is 23 days; so we have figured 30ndays. Then delivery right after the 20 day appeal period. The Engineer will be ready to advertise for bids in 2 weeks. He can call for bids in another 4 weeks , that would be 6 weeks altbgether. It takes approximately 2 weeks to calculate the bids, so you will have the money at just about the time you are ready to r� start construction. It will be set up in a Construction Trust Fund. Releases from the trust fund would probably be by two signitures from the City and authorization by the consulting engineer. , It would be set up for the City's dispensation of it. In the proposal that I have, we have pledged the net sewer revenues .and assessments, plus utilities taxes and cigarette taxes. The utilities tax and the cigarette tax, although they are pledged, are not tied up in the sense that you can- not use them. They will go into a separate fund, then the balance, the utilities tax and the cigarette tax is trans- ferred monthly. At the end of the month after you have made your regular payment, you then transfer your cigarette tax and your utilities tax into the General Fund. We additionally provide that the cigarette tax would be dropped as a pledge. In other words, after a period when you have certain earnings, you can .then have the cigarette tax removed as a pledge. So you will pledge the cigarette tax as a temporary tax just to get you over this early period, and it will be dropped in the third year. City Manager Culverson: Do they prepare the bond ordinance? i Mr. Hennan: We work with the preparations. We will set the terms of the resolution and get it drafted. The Bond Attorney will do the drafting of the bond resolution, but -someone will have to set the terms and instruct them. Commissioner Thornton: Personally, I would like to look into j this deal with the government since we started with them. Mr. Hennan: The government program was not designed for cities that go out ordinarily and get money through the normal chan- nels. They were in a sense financial poverty cases, and they went the route of welfare cases. It may take you 6 months or a year before you are finished. Commissioner Grammer: In Atlanta they didn't tell us when they would let us have the money. They said from 3 weeks to a month {`. or two weeks to a month, and then they will let us know whether they will handle it or not. Commissioner Tarpley: In fact, they even said they couldn't commit themselves. The only thing they could do was take it before the board. Commissioner Grammer: He also said we would need a construe- tion loan through a local banking institute. Then they would give us this bond money after the sewers were completed. !' A motion was made by Commissioner Grammer to take a poll in favor of Mr. Hennan's proposal or the Government Proposal. The motion was seconded by Commissioner Tarpley. Commissioner Thornton: I would like to talk a little more with Mr. Hennan, and one day or two isn't going to make that much difference. Attorney Walden: Let me say one thing. I have not seen the proposal or taken part in any of the discussions, although I will :donmy utmost to advise you, -all I am doing if you go ahead with this thing is to give you some off-the-cuff opinion that it is legal; but I cannot legally advise you without seeing the proposal. Mr. Hennan: I realize that, and whether you act tonight or act some other night, the action could be made to'. your satis- faction with the contract. In other words, before the final signing of the contract, you would have to approve before them that there is no legal problem, or if there is some ' change you want, we can incorporate it. n, The roll being called, the Commissioners voted as follows: Grammer Yes Tarpley Yes Thornton No Hill Yes Attorney Walden: Now:.I want to make sure that your minutes show my position on this. Mr. Hennan presented copies of the proposal to the City Commission, then read the proposal to them. Note: This proposal is on file in the office of the City Manager. A motion was made by Commissioner Thornton to table this matter until Monday evening August 31, 1964, to give the City Attorney time to look over the proposal. Commissioner Tarpley: We have more or less committed ourselves, j and we have to protect him now that he has read his proposal. The motion died for lack of a second. ® Carl Zenobia: If did you o for this man's y g proposal tonight and you had a public hearing on it and the pIIople didn't go for it, what would the cost to the city be? Mr. Hennan: There are no fees involved Suppose something happened and this program is abandoned for any reason, there are no fees. I will go on record. If anything happens and the program is abandoned, up through the day of delivery, you don't owe us anything. A motion was made by Commissioner Grammer that a resolution be drawn and passed accepting the proposal of Barcus , Kindred and t Company subject only to the City Attorney giving his opinion as to the legality, by August 31, 1964. The motion was seconded by Commissioner Tarpley, and the roll being called, the Commissioners voted as follows: Grammer Yes Tarpley Yes Thornton .No Hill Yes : Commissioner Tarpley: Yesterday morning after the hurricane settled, with 'all the broken trees around the city, we met and decided to purchase what we call a "Chipper Machine", to pulverize the trees and load them into a truck, which will speed up the. clean- ing up of the city. I want to make a motion just to show for the record that it was purchased on an emergency basis. .. A motion was made by Commissioner Tarpley to authorize the payment 10 on the purchase of the "Chipper Machine". The motion was seconded. by Commissioner Grammer, and the roll being called, the Commissioners voted as follows: Grammer Yes Tarpley Yes Thornton Pass Hill Yes Commissioner Thornton: What was the price of it? Mayor -Rill: $3,375.00. There being no further business on the agenda, the meeting adjourned. U �LC✓ �� 711 Lu _ �V'f 7t 1,CQ Vera L. H11L -3- Iarr TTiornhi'll ?" Mayor-Commissioner City Clerk-Auditor