10/28/2016 Finance Committee Meeting Packet Finance Committee Agenda
October 28, 2016
County Manager's Front Conference Room
10:00 a.m.
1. Call to order
2. Approval of Agenda (meeting noticed on October 21, 2016)
3. Approval of Minutes from March 23, 2016 Meeting
4. General Discussion and recommendation on Water&Sewer Refunding Revenue Bonds, Series 2016
5. Other Business
6. Public Comment
7. Adjourn—Next Meeting—TBD
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Collier County Government
Communication & Customer Relations
3299 Tamiami Trail East, Suite 102 colliergov.net
Naples, FL 34112-5746 twitter.com/CollierPIO
facebook.com/CollierGov
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October 21, 2016
FOR IMMEDIATE RELEASE
NOTICE OF PUBLIC MEETING
COLLIER COUNTY FINANCE COMMITTEE
COLLIER COUNTY, FLORIDA
FRIDAY, OCTOBER 28, 2016
10:00 A.M.
Notice is hereby given that the Collier County Finance Committee will meet Friday, October 28, at 10:00
a.m. in the County Manager's Front Conference Room, second floor, Collier County Government Center,
3299 Tamiami Trail East,Naples, Fla.
About the public meeting:
Two or more members of the Board of County Commissioners may be present and may participate at the
meeting. The subject matter of this meeting may be an item for discussion and action at a future Board of
County Commissioners meeting.
All interested parties are invited to attend, and to register to speak. All registered public speakers will be
limited to three minutes unless permission for additional time is granted by the chairman.
Collier County Ordinance No. 2004-05 requires that all lobbyists shall, before engaging in any lobbying
activities (including, but not limited to, addressing the Board of County Commissioners, an advisory board
or quasi-judicial board), register with the Clerk to the Board at the Board Minutes and Records Department.
Anyone who requires an auxiliary aid or service for effective communication, or other reasonable
accommodations in order to participate in this proceeding, should contact the Collier County Facilities
Management Department located at 3335 Tamiami Trail East,Naples, Florida 34112, or(239) 252-8380 as
soon as possible, but no later than 48 hours before the scheduled event. Such reasonable accommodations
will be provided at no cost to the individual.
For more information, call Mark Isackson at(239) 252-8973.
###
DRAFT
COLLIER COUNTY
FINANCE COMMITTEE MEETING
MINUTES
March 23, 2016, 10:00 A.M.
In attendance: Mark Isackson, Corporate Financial Operations CMO; Crystal Kinzel, Clerk of Courts Finance Director;
Derek Johnssen, Clerk of Courts Assistant Finance Director; Joe Bellone, Director of Operations Support-Public Utilities;
Gene Shue-Growth Management Operations Support Director; Susan Usher, Senior Budget Analyst OMB;Jeff Klatzkow,
County Attorney; Ed Finn, Senior Budget Analyst OMB;Jim Gibson.
Present by phone: Nicklas Rocca and Steve Miller from the PFM Group; Duane Draper from Bryant Miller Olive Law
1. Call to Order: Mark Isackson called the meeting to order at 10:00 a.m.
2. Approval of Agenda: Meeting noticed March 16, 2016. Motion to approve agenda. Unanimously approved.
3. Approval of Minutes from October 23, 2015 meeting: One change requested to fix last sentence under number
four. Motion to approve minutes with one change requested. Unanimously approved.
4. General Discussion on Water & Sewer Refunding Revenue Bonds, Series 2016: The Audit report from the State is
due to Finance in approximately three weeks. Preliminary audit numbers are acceptable according to Duane Draper
of BMO as the refunding process procedes. The closing date of May 18 seems to be ok for now. Must post notice of
sale ten days in advance of closing. Need timeline report updated and re-sent. Derrick will work on the financials
preparing for rating agency calls. The Finance Committee Board has reviewed and endorses moving forward with
this refunding. Mark Isackson motioned to approve and it is seconded by Joseph Bellone. Unanimously approved.
5. FY 2017 Budget Policy covering Financing New and Replacement Capital Improvements: The Board of County
Commissioners will discuss at the June workshops strategies for financing new and replacement capital
improvements including issuing debt, Stormwater, road network and bridge projects are in a five year window for
spending.
6. Other Business: Per Crystal,the CAFR will be delayed. No other business.
7. Public Comment: None
8. Adjourn: Meeting adjourned at 10:50 a.m. Motioned by Mark Isackson and seconded by Crystal Kinzel.
Unanimously approved. Next meeting tentatively scheduled for Friday, April 22, 2016.
FINAL
COLLIER COUNTY
FINANCE COMMITTEE MEETING
MINUTES
October 28, 2016, 10:00 A.M.
In attendance: Mark Isackson, Corporate Financial Operations CMO; Crystal Kinzel, Clerk of Courts Finance Director;
Derek Johnssen, Clerk of Courts Assistant Finance Director; Joe Bellone, Director of Operations Support-Public Utilities;
Gene Shue-Growth Management Operations Support Director; Jeff Klatzkow, County Attorney; Jim Gibson; Amia Curry-
Manager of Financial and Operations Support.
Present by phone: Nicklas Rocca and Sergio Masvidal from the PFM Group
1. Call to Order: Mark Isackson called the meeting to order at 10:00 a.m.
2. Approval of Agenda: Meeting noticed October 21, 2016. Motion to approve agenda. Joe Bellone seconded.
Unanimously approved.
3. Approval of Minutes from March 23, 2016 meeting: One change requested to correct spelling of "procedes" to
"proceeds" under #4 General Discussion on Water & Sewer Refunding Revenue Bonds, Series 2016. Motion to
approve minutes with one change requested. Unanimously approved.
4. General Discussion and recommendation on Water& Sewer Refunding Revenue Bonds, Series 2016: Members of
the Finance Committee discussed PFM's October 24, 2016 Plan of Finance and Recommendations (attached)
regarding the Series 2016 Bank Note—Refinancing State Revolving Fund Loans. After discussion, there was a motion
by Mark Isackson, seconded by Crystal Kinzel to recommend that the Board of County Commissioners take favorable
action approving Florida Community Bank as the qualified financial institution to provide a fixed interest rate, tax
exempt term loan providing for the refunding of the outstanding State Revolving Fund Loans at a lower interest rate.
Unanimously approved.
5. Other Business: The group discussed plans to restructure the current Bayshore CRA Bank Loan with the objective of
soliciting quotes for interested financial institutions seeking more favorable interest, coverage and reserve terms in
advance of the notes bullet maturity in June 2018. Mark Isackson, Derek Johnssen and Ed Finn will work with PFM
to finalize and distribute a RFQ document.
6. Public Comment: None
8. Adjourn: Meeting adjourned at 10:27 a.m. Motioned by Mark Isackson and seconded by Joe Bellone. Unanimously
approved. Next meeting TBD.
255 Alhambra Circle 305 448-6992
Suite 404 305 448-7131 fax
Coral Gables,FL www.pfm.com
- The PFM. Group 33134
PFM Asset Management LLC
PPM Advisors
October 24,2016
Memorandum
To: Collier County, Florida
From: Public Financial Management, Inc.
PFM Financial Advisors LLC
Re: Plan of Finance—Series 2016 Bank Note(Refinancing State Revolving Fund Loans)
The purpose of this memorandum is to provide the basis for the recommended plan of finance for Collier County
(the "County"), and to summarize the proposals received for the County's Request for Proposals for the 2016
Bank Note.
PFM,working alongside County officials, continually evaluate the existing debt portfolio for opportunities to reduce
debt service costs. One such opportunity is in the form of consolidating and refinancing prior State Revolving
Fund ("SRF") loans in the presently attractive interest rate environment. The County has several outstanding
loans of various sizes and maturities for the Water and Sewer Utility through the SRF Program. The total
outstanding amount of SRF loans is approximately $95 million. The existing loans have maturities ranging from
two to thirteen years. Provided the relatively short average life (approximately 5.5 years) of the existing loans,
and the possibility of including or eliminating all or a portion of the loans, we have discussed with staff and have
recommended that the County maintain the shorter average life profile and amortize the loan on a uniform
savings basis commensurate with the existing maturity of the loans. In order to access the capital markets the
County has determined that a Bank Note, as opposed to a public bond offering, would serve to implement the
plan of finance in the most effective manner. This determination is based on: the desire to expedite the
refinancing in order to capture current market conditions as well as lock the rate as soon as possible; minimize
the administrative requirements compared to a public offering; and reduce the costs of issuance compared to a
public offering.
PFM worked with the County to draft the Request for Quote ("RFQ") for the 2016 Bank Note prior to its release.
PFM then emailed the RFQ to a broad pool of financing entities that we know to be active in the municipal space.
The size of the loan (up to approximately $95 million) and average life (approximately 5.8 years) are generally
consistent with parameters typically seen in bank notes, and such parameters would attract interest from the bank
lending community and yield the County with a favorable result. It should also be noted that proposers were
permitted to quote an amount that is less than the full par amount, depending on their bank's capacity. Should
the County receive multiple, smaller quotes, it reserves the option to use one or more proposals and refinance
one or more SRF loans. On October 13th, eight (8) quotes were submitted. A summary of the proposing firms,
along with the key points from each proposal is included as an attachment to this memorandum.
After review of the bank offers and discussion among the County's finance team, Florida Community Bank's
("FCB") proposal was considered the most attractive. Based on the 1.80% rate and a final maturity of 2029, the
County is estimated to achieve an All-In True Interest Cost of 1.829%, Importantly, please note that the FCB rate
is locked through the anticipated time for this transaction to close(expected November 17th). Finally,the County's
legal team has reviewed the terms in the FCB proposal and, after clarifying a couple minor items, is satisfied that
they are consistent with the existing terms and covenants in the County's prior bond resolution.
2016 Collier County W&S Financing
P f~' 1 October 24, 2016
Page 2 of 2
The schedule below shows the County's expected annual debt service savings upon completing the 2016
financing. Please feel free to contact us should you have any questions or comments prior to the Commission
meeting to approve the transaction.
Annual Debt Service Savinsis
Bond Year Annual Cash
Ending Flow Savings
7/1/2017 $ 224,450
7/1/2018 360,049
7/1/2019 360,215
7/1/2020 360,501
7/1/2021 360,060
7/1/2022 360,240
7/1/2023 360,368
7/1/2024 360,052
7/1/2025 359,590
7/1/2026 359,856
7/1/2027 359,654
7/1/2028 360,157
7/1/2029 359,983
Total $ 4,545,176
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