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HomeMy WebLinkAboutMinutes Council 122760CITY OF PALM BEACH GARDENS SPECIAL �IEETING OF CITY COUNCIL Upon call of the Mayor the City Council of Palm Beach Gardens met in special session at 2:00 o'clock P. M. on December 27th, 1960, at 1001 Park Avenue, Lake Park, Florida. The Clerk announced a quorum to be present, and that all members of the City Council had waived notice. CITY FINANCES: The Mayor announced that the meeting had been called at the instance of L. J. Lehane, acting as Financial Advisor for the City. Mr. Lehane discussed at some length the present financial situation of the City, and his analysis of its immediate needs. As Nr. Lehane pointed out, the assets of the City exceed its liabili- ties by considerable margin but that the liabilities contained very large items of open account which should be funded for payment over a period of time. He pointed out that the location of the Radio Corpo- ration of America's plant in the City would probably place an additional x+4,000,000.00 on its roll of taxable property during the next twelve (12) m onths, but that for the time being the City was confronted with very substantial outlays to provide services which had been pledged as .� an inducement for the location of a plant in Palm Beach Gardens. He pointed out that extensions of water and sewerage service, and work necessary to secure a natural gas franchise for the City, all had created imr ediate needs for funds. Y'r. Lehane reported that Florida Construction Company, to whom the City owes considerable money, either had assigned, or was shortly to assign its receivables from the City to Bankers Life and Casualty Company. The end result would be that the City owes, or will shortly owe the Bankers Life and Casualty Company an amount in excess of $1,500,000.00. The re- quirements of the insurance code of the State of Illinois are such that Bankers was in need of acknowledgment of this indebtedness, and of some assurance as to its orderly payment, preferrably in the form of nego- tiable notes or bonds, duly qualified under the terms of the Florida law pertaining to manic ipal obligations. Thereupon ensued an extensive discussion as to the manner in which these obligations should be funded; and the formalities which would be requisite. It was the consensus of opinion that a single funding program should re- place or embrace the present purchase contract of the water treatment and sewerage disposal plant (made with Bankers Life and Casualty) and the pre- sent contract for the purchase of machinery and equipment (made with Florida Construction Company). Thereupon the following resolution was made, seconded, and unanimously �/ carried: RESOLUTION BE IT HEREBY RESOLVED. (1) That the various obligations of the City of Palm Beach Gardens to Bankers Life and Casualty for property and for advances, and the obligations to Florida Construction Company (which Bankers Life and Casualty Company has received by assignment) should be consolidated and refinanced, and bonds or notes should be proferred to Bankers Life and Casualty Company in lieu of the divers informal and short term obliga- tions presently outstanding. (2) That simultaneously and possibly as a part of said issue, the City seek additional financing in an amount not to exceed $100,000.00 Prom Bankers Life and Cas»Alty Company to extend municipal facilities during the next 60 days. (3) That the ?Mayor shall appoint a committee to investigate the law, and to assemble the necessary factual material essential to the issuance and validation of the bonds and notes above contemplated (the amount of which is estimated to be approximately X1,600,000.00; said committee to report to the City Council as soon as possible, and con- sist of not less than five, nor more than nine members, at the discre- tion of the Mayor; an d that the membership include the following per- sons: (1) The Mayor (2) Amadeo �eitin, Attorney (3) L. J. Lehane, Financial Advisor (4) W. Carroll Wilson, Appraiser (5) N. D. Rowland, City Clerk (4) That the Aayor, and the City Clerk, are hereby directed, pend- ing completion of the contemplated financing to forward to Bankers Life and Casualty Company the City's acknowledgment of indebtedness in the estimated amount of �1,600,C00.00 (subject to adjustment upon audit); with the City's agreement to pay the same, ,.7ith interest at 5% upon un- paid balances, in not less than fifteen (15) years; together with the statement that this acknowledgment of indebtedness is to be superseded by the formal bonds or notes of the City as soon as the formal financing can be fabricated and validated. BE IT FURTHER RESCLVED: That a certified copy of this resolution be forwarded by the Clerk of the City to the Bankers Life and Casualty Com- pany. ! There b g no further business th Meeting adjourned. APPR d/ . lLCJ�;�,4 I n NORMA D. RO'WI,AND, CLERK B. VfOmPSON,- r" c � F ' X° CITY OF PALM BEACH GARDENS {�—J� ^ G ~4 OFFICIALS ICMPORARY OFFICES ` ���\, Mayor H. B. Thompson 001 Perk Avenus W n City Cbrk ... N. D. Rowland Lake Park, Florida III' City Treat. . . . Ruth Kerr Tel, YI B -1401 z�l July 5. 1461 Bankers Life and Cas-1 ty Company 4144 West Lawrence Avenue Chicago 30, Illinois Dear Sirs: This Official Acknowledgment has been prepared by the City of Palm Beach Gardens to fulfill the mandate of the City Council under a resolution duly adopted at a jFe -clal session held at 2:00 o'clock P.M., on December 27, 1960 at 1001 Park Avenue, Lake Park. Florida. the relevant sub - section of which resolution reads as follows: "BE IT HE tai RESOLVai: "(4) That the Mayor, and the City Clerk, are hereby directed, pending e completion of the contemplated financing to forward to Bankers Life and Casualty Company the City's acknowledgment of indebtedness in the estimated amotint of $1,600,000.00 (subject to adjustment upon audit); with the City's agreement to pay the same, with interest at 54 upon unpaid balances, in not less than fifteen (15) years; together with the statement that this acknow- ledgment of indebtedness is to be superseded by the formal bonds or notes of the City as soon as the formal financing can be fabricated and validated." In accordance with the provisions of the foregoing resolution the Mayor and the City Clerk hereby forward to Bankers Life and Casualty Company this, the City's acknowledgment of indebtedness in the estimated amount of $1,600,000.00 (sub- ject to adjustment upon audit); this, also, constituting the City's agreement to pay the same, with interest at 5% upon unpaid balances, in not less than fifteen 15) years; together with this statement that this acknowledgment of indebtedness is to be superseded by the formal bonds or notes of the City as soon as the formal financing can-be fabricated and validated. IN WITNESS WHEREOF, the City of Palm Beach Gardens has caused this Offi- cial Acknowledgment to be executed on its behalf by its Mayor and its City Clerk, pursuant to mandate and directive of the City Council of the City of Palm Beach Gardens, and its seal to be hereunto affixed and attested by the City Clerk of the City of Palm Beach Gardens, ill as of the day d year first above written. CITY P B / y[ ���T ) 'A ( EACH ENS lilJiiJ B 1 I 11 IR Of i. Wit D. Nor-A= D. Rowland, City Clerk