HomeMy WebLinkAboutR-86-0758J--86--820
RESOLUTION NO. R „=715f'
A RESOLUTION AUTHORIZING AND DIRECTING THE CITY
MANAGER TO ENGAGE THE UNDERWRITING TEAM OF
PRUDENTIAL BACHE SECURITIES, INC.; FIRST EQUITY
CORPORATION OF FLORIDA; DANIELS $ BELL, INC.; AND
METRO EQUITIES CORPORATION, AS UNDERWRITERS WITH
RESPECT TO THE PROPOSED OFFERING NOT TO EXCEED
$6,375*000 GENERAL OBLIGATION BONDS COMPOSED OF
$4,000,000 POLLUTION CONTROL BONDS; AND
$29375,000 STREETS & HIGHWAYS IMPROVEMENT BONDS.
WHEREAS, the City is desirous of selling general
obligation bonds that have an interest limit of 7.5%, and
WHEREAS, current market conditions will permit the sale
of such bonds; and
WHEREAS, a negotiated sale is the quickest approach to
this bond sale since time is of the essence; and
WHEREAS, the City's financial advisor, James J. Lowrey &
Company issued a Request for Proposals dated June 19, 1986
soliciting responses from qualified investment banking firms for
the provision of underwriting services for the sale of
Certificates of Participation for the financing of a tax-exempt
leasing program to provide for the City's equipment needs; and
WHEREAS, of the best three proposals received through
above described selection, two of the underwriting teams were
chosen for the Certificates of Participation transaction, with
the remaining team being recommended for the proposed $6, 375, 000
general obligation sale;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized and
directed to execute an Agreement with the underwriters team of
Prudential Bache Securities, Inc.; FIRST EQUITY Corporation of
Florida; Daniels b Bell, Inc.; and Metro Equities Corporation,
with respect to the proposed offering of not to exceed $6,375,000
General Obligation Bonds, composed of $4,000,000 Pollution
Control Bonds and $2, 375, 000 Streets b Highways Improvement
Bends.
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AV
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PASSED AND ADOPTED this 25th
day of m ,- ; 1986.
e
AVIER L. SUA MAYOR
ATTE :
4,
NATTY HIRAI, CITY CLERK
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PREPARED AND APPROVED BY:
ROBERT F. CLERK
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CHIEF DEPUTY CITY ATTORNEY
APPROVED AS FORM AND CORRECTNESS:
LUCIA DOUGHERTY
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CITY ATTORNEY
J,
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CITY OF MIAMI. FLOnIDA
IMTIER-CIFFICIF MFFMORA NOILIM
- TO.
Honorable Mayor and Members DATE: September 11, 1986 RILE:
of the City Commission
SUBJECT: Selection of Underwriters
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FROM:
Cesar H. O d i o REFERENCES
Commission Meetingof
City Manager 9/26/86
ENCLOSURES:
—71
It is recommended that the attached
resolution authorizing and directing the
City Manager to engage the firms of
Prudential Bache Securities, Inc.; First
.;
Equity Corporation of Florida; Daniels &
-
Bell, Inc.; an d Metro Equities
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Corporation, as underwriters with respect '
to the proposed offering of not to exceed
$6, 375, 000 General Obl i gati on Bonds,
composed of $4,000,000 Pollution Control
Bonds, and $2,375,000 Streets & Highways
Improvement Bonds.
The City of Miami needs to sell the remaining unissued $4,000,000
Pollution Control Bonds and $2, 375, 000 Streets & Highways
Improvement Bonds, originally authorized by the voters in 1970,
in order to fund related capital projects.
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Because of the volatility of interest rates, it was not prudent
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to include these bonds in the $22 million 1986 general obligation
bond sale thattook place_ in June. Including these bonds with
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their interest_ cap ' of 7t% would have aborted the 1986 sale,
which had a lowest bid of 7.65%.
It is important that the City move quickly to sell these bonds to
take advantage of the current low interest rates. In order to
expedite this sale, we are recommending engaging one of the
underwriting teams that presented proposals to the City for the
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last City debt issuance. Of the seven underwriting proposals
received by the City in July for the Certificates of
Participation, three proposals were considered equally
advantageous to the City, of which two proposals were accepted
then. At this time we are recommending to en gage the remaining
underwriting team which is composed of:
- Prudential Bache Securities, Inc.
- First Equity Corporation of Florida (local firm)
- Daniels & Bell, Inc. (Minority firm)
• Metro Equties Corporation (Minority firm)
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These firms have agreed to honor their July proposal with a $0.00
Management Fee and $17.,000 in estimated expenses. This is very
aggressive pricing. These firms have the capability of providing
very strong marketing for these bonds.
Timing is of the essence for this transaction since any
significant increase in interest rates would postpone the sale
until interest rates fall below 7-.5% again.
cc: Law Department