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Agenda 04/12/2011 Item #10F 4/12/2011 Item 10.F. EXECUTIVE SUMMARY Recommendation that the Board approves prepayment of the Series 2008 Conservation Collier Bonds in the amount of $7,126,908, plus interest accrued. OBJECTIVE: To obtain approval for prepayment of the Series 2008 Conservation Collier Bonds, plus interest accrued. CONSIDERATIONS: On November 21, 2008, Collier County issued the $13,244,:'.04 Collier County, Florida Limited General Obligation Bond (Conservation Collier Program), Series 2008. The proceeds of the bonds were used to finance a porti on of the purchase price of environmentally sensitive land known generally as Pepper Ranch. On January 25, 201], pursuant to Agenda Item 10(B) the Board of County Commissioners accepted staffs recommendation to suspend Conservation Collier purchases. except for four properties already under contract. However, the Board also indicated that it would entertain additional future purchases if a unique opportunity was presented on a cost by cost basis. .- The bonds are a limited general obligation of Collier County and are payable from a levy of up to .25 mils. Sufficient unused monies have accumulated in the Conservation Collier acquisition fund (Fund ] 72) to allow for prepayment of the bonds in the amount of $7,126,908, which includes a 3.00% premium for early prepayment, plus interest accrued to date. The interest rate on the bonds is 4.]4% and the gross savings realized will be $13],725. If approved, the prepayment will take place on April 29, 201]. ]t is important to reiterate that this prepayment will materially impact the Conservation Collier program's near term ability to purchase environmentally sensitive land. ADVISORY BOARD RECOMMENDATIONS: The County's Conservation Collier Advisory Board unanimously recommended this prepayment at its March 14,201] meeting, ltemIVD.!. In addition, the County's Finance Committee recommended this prepayment unanimously at its March 25, 2011 meeting. During discussion before each committee staff noted that the ability to purchase property near tenn would be curtailed at least until the 2011 tax year property tax receipts are received in January 20 I 1 . FISCAL IMP ACT: The prepayment request for $7,126.908 results in interest savings of $131,725. Funds are available in the Conservation Collier acquisition fund (Fund 172). A budget amendment is necessary to move amounts from land purchase and reserve hudgetary line items to a debt service line item. LEGAL CONSIDERATIONS: This item has been reviewed and approved by outside bond counsel, is legally sufficient for Board action, and requires majority vote for approval. -.1AK GROWTH MANAGEMENT IMPACT: There is no growth management impact. RECOMMENDATION: That the Board of County Commissioners approves the prepayment of the Series 2008 Conservation Collier Bonds and the necessary budget amendments. Prepared by: Derek M. Johnssen, General AccGunting Manager Finance and Accounting Department, Clerk of Courts .'- Packet Page -1597- 4/12/2011 Item 10.F. COLLIER COUNTY Board of County Commissioners Item Number: 10.F. Item Summary: Recommendation that the Board approves prepayment ofthe Series 2008 Conservation Collier Bonds in the amount of $7,126,908, plus interest accrued. Meeting Date: 4/12/2011 Prepared By Name: BrockMaryJo Title: Executive Secretary to County Manager, CMO 4/4/2011 1 :57:34 PM Submitted by Title: Executive Secretary to County Manager, CMO Name: BrockMaryJo 4/4/2011 1 :57:35 PM Approved By Name: 1sacksonMark Title: Director-Corp Financial and Mgmt Svs,CMO Date: 4/512011 8:49:32 AM Packet Page -1598- 4/12/2011 Item 10.F. Collier County, Florida CC Series 2008 Prepayment Bas Amount Fund 273: F/C G/L Increase/(Decrease) Current 929010 481172 7,076,800.00 939010 871100 7,076,800.00 3,257,600.00 Amount Fund 172: F/C G/L Increase/{Decrease) Current 178986 761100 (2,650,000.00) 2,967,200.00 178986 993000 (1,800,000.00) 1,800,000.00 919010 992000 (717,600.00) 717,600.00 919010 992200 (250,000.00) 250,000.00 . 929010 912740 (1,659,200.00) 6,103,100.00 929010 912730 7.076,800.00 Amount Fund 174: F/C G/L I ncrease/(Decrease) Cu rre nt 929010 481172 (1,659,200.00) 6,103,100.00 919010 993000 (1,659,200.00) 19,905,700.00 Packet Page -1599- 4/12/2011 Item 10.F. As amended 7,076,800.00 10,334,400.00 As amended 317,200.00 4,443,900.00 7,076,800.00 As amended 4,443,900.00 18,246,500.00 Packet Page -1600- 4/12/2011 Item 10.F. \.II!/~ ~ SUNTRUSf" H SunTrust Equipment Finance & Leasing Corp. 300 East lappa Road, 7~ Floor Towson, MD 21286 To SunTrust Equipment Finance & Leasing Corp. Remittance Information Via US Postal Service: Remit payment with copy of invoice or remittance instructions 10: SunTrust Equipment Finance and Leasing Corp. PO BOX 79194 Baltimore, Maryland 21279-9194 Via EXDress/Overnil!ht deliverv: Remit payment with copy of invoice or remittance instructions to: Sun Trust Eqnipment Finance and Leasing Corp. 1000 Stewart Ave Attn: Box 79 J 94 Glen Burnie, Maryland 21061-3209 (4] 0)590-8230 Wirinl! Funds Information: Bank Name: SunTrust Bank Corp 7818 Parham Rd, Richmond, VA 23294 ABA06JOOOI04 Acct # 201-150-263 Name: SunTrust Equipment Finance and Leasing Corp. Fed 10 26-1256148 Ref: Acct# ...-.......-... and/or invoice number You may provide special handling instructions or direct payment questions to: Patricia Smith; pat.smith2(a)sunlrust.com; 410-307-6701 Please note the following turn~around times for processing payoff funds: Certified CheckIWired Funds 3 business days Company Check 10 business days After the payoff funds are processed, following is the turn-around times for final paperwork: Casualties Bill of Sale and Tille(s) Non-Casualty End of Term/Early Term Bill of Sale and UCC3 Filing(s) Tille(s) 5-10 business days 10-14 business days 10-14 business days For information regarding the processing of UCC3's, titles and bills of sale beyond the above turn-around times, please contact Alicia Brown at 410-307-6690. Last Revised 1-2-08. DSK, MIDDLE Packet Page -1601- 4/12/2011 Item 10.F. SunTrust Equipment Finance & Leasing Corp Hampton PJaza 300 E. Joppa Road. 1'" Floor TO\NSon, Maryland 21286 Thomas E. Callow Vice PresidenVEquipment Manager (410) 307-6623 (Telephone) (410) 307-6616 (Facsimile) tom.callow@suntrust.com )\(& ~ SUNThUST'. March 17, 2011 Dan Tripaldi Treasury Accountant Collier County Clerk of the Circuit Court VIA EMAIL daniel.trioaldirmcollierclerk.com Dear Dan: RE: United States of America, Collier County, Florida Umited General Obligation Bond (Conservation Collier Program), Series 2008, $13,244,204.00 SunTrust Equipment Finance & Leasing Corp. .(the "Registered Holder") agrees to release their interest in the above-referenced bond for $7,219.962.62. Principal 3% Redemption Premium Interest S 6,919,328.00 S 207,579.84 S 93,054.78 S 7.219,962.62 Upon receipt of $7,219,962.62 (in immediately available U.S. funds), the Registered Holder shall transfer ownership, without recourse or warranty, as well as all of the Registered Holder's right, title and interest in and to the Bond. Furthermore, the Registered Holder makes no claim or warranty as to the condition of the Equipment or any other matters. Please submit funds (per the attached remittance information) by April 29, 2011. Please include $795.34 per diem if payment is submitted after the due date. Thank you for your continued business. If you would like to discuss the contents of this letter, please fee! free to contact me at (410) 307-6623. Sincerely yours, C-}l {' tJL-- Thomas E. Callow Vice President/Equipment Manager r have reviewed the above terms and, on behalf of Collier County, Florida agree to them as written. By: Name: Title: Date: Packet Page -1602-