02/10/2015 Minutes t4It
MINUTES OF MEETING
FLOW WAY COMMUNITY DEVELOPMENT DISTRICT
The Regular Meeting of the Flow Way Community Development District's Board of
Supervisors was held on Tuesday, February 10, 2015, at 3:00 p.m., at the Offices of
Coleman, Yovanovich & Koester, 4001 Tamiami Trail North, Suite 300, Naples, Florida
34103.
Present and constituting a quorum were:
John Asher Chairman
Keith Berg Assistant Secretary
Anthony Burdett Assistant Secretary
Stephen Reiter Assistant Secretary
Sal Simonetti Assistant Secretary (Arrived 3:37 p.m.)
Also present were:
James P. Ward District Manager
Greg Urbancic District Counsel
George Smith BMO- Bond Counsel (Telephonic)
Jeremy Arnold District Engineer
FIRST ORDER OF BUSINESS Call to Order/Roll Call
Mr. Ward called the meeting to order at 3:35 p.m. The record will reflect that all
supervisors are present at roll call with the exception of Supervisor Simonetti.
SECOND ORDER OF BUSINESS Consideration of Minutes
a) January 13, 2015— Regular Meeting
Mr. Ward stated you've been previously distributed a copy. If there are any additions,
corrections or deletions, it would be appropriate at this time to so indicate. Otherwise, a
motion for their approval would be in order.
On MOTION made by Mr. Asher and seconded by Mr. Berg, with
all in favor, the January 13, 2015, Regular Meeting minutes
was approved.
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FLOW WAY CDD February 10, 2015 1b
1I.
THIRD ORDER OF BUSINESS Consideration of Resolution 2015-5 of the
Board of Supervisors of Flow Way
Community Development District
approving the removal of Wells Fargo
Bank, National Association as trustee,
registrar and paying agent for Flow Way
Community Development District;
approving U.S. Bank National Association
as successor trustee and successor
registrar and paying agent; authorizing the
District Manager to provide such notices
as are required to effectuate the foregoing
removal of Wells Fargo Bank, National
Association as trustee, registrar, and
paying agent and the appointment of U.S.
Bank National Association as the
successor trustee and successor registrar
and paying agent; providing for conflicts;
providing for severability; and providing an
effective date.
Mr. Ward stated Resolution 2015-5 removes Wells Fargo Bank as your trustee for the
Series 2013 Bonds and replaces them with U.S. Bank as trustee. The primary purpose of
the change is related to the fact that Wells Fargo has moved their trust department out of
Florida. They're now based in Pennsylvania and, to be quite frank, they're difficult to work
with. As such, the resolution simply replaces the trustee with U.S. Bank, and they are also
going to be the trustee on the Series 2015 Bonds, which is a part of the resolution that's
next on your agenda.
The fee structure that U.S. Bank has provided to you is consistent with what we have
normally paid; I don't recall if it's slightly over or under the Wells Fargo number, but it's
consistent with what I'm used to seeing from U.S. Bank. If you have any questions on the
resolution, I'd be glad to answer them for you. Otherwise, it is in order and recommended
for your consideration.
The record will reflect that Supervisor Simonetti has joined us.
On MOTION made by Mr. Asher and seconded by Mr. Simonetti,
with all in favor, Resolution 2015-5 was approved.
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FLOW WAY CDD February 10, 2015 le
FOURTH ORDER OF BUSINESS Consideration of Resolution 2015-6 of the
Board of Supervisor of Flow Way
Community Development District
authorizing the issuance of not to exceed
$7,000,000 aggregate principal amount
of its Flow Way Community Development
District Special Assessment Bonds, [in one
or more series] (the "Series 2015
Bonds"); determining certain details of the
Series 2015 Bonds; approving the form of
and authorizing the execution and delivery
of a second supplemental trust indenture;
authorizing the negotiated sale of the
Series 2015 Bonds; appointing the
underwriter; approving the form of and
authorizing the execution and delivery of a
contract of bond purchase contract with
respect to the Series 2015 Bonds and
awarding the Series 2015 Bonds to the
underwriter named therein pursuant to
the parameters set forth in this resolution;
approving the form of and authorizing the
distribution of the preliminary limited
offering memorandum and its use by the
underwriter in connection with the offering
for sale of the Series 2015 Bonds and
approving the execution and delivery of a
final limited offering memorandum;
authorizing the execution and delivery of a
continuing disclosure agreement and the
appointment of a dissemination agent, a
true up agreement, an acquisition
agreement, an assignment agreement,
and a completion agreement; providing for
the application of Series 2015 Bond
proceedings; authorizing the proper
officials to do all things deemed necessary
in connection with the issuance, sale and
delivery of the Series 2015 Bonds; making
certain declarations; appointing a trustee;
providing for the registration of the bonds
pursuant to the DTC book-entry system;
providing an effective date and for other
purposes.
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FLOW WAY CDD February 10,2015 V 1 1
Mr. Ward stated the primary purpose of the meeting was the consideration of
Resolution 2015-6, which was what we call a delegation bond award resolution. I know Mr.
Smith is on the phone with us as your bond counsel, and I'll ask him to take some time and
go through the pertinent business terms of the resolution with you. After questions from the
Board, we'll ask for a motion to approve the resolution.
Mr. Smith stated this is George Smith with the Law Firm of Bryant Miller Olive; we are
bond counsel to the District, and we appreciate the opportunity to represent you. The
resolution you have before you is to authorize not to exceed $7,000,000, an aggregate
principal amount of your special assessment bond Series 2015. It approves certain matters
in connection with those bonds, including a bond purchase agreement, as well as a second
supplemental trust indenture, and a preliminary limit offering memorandum that will be
used by the underwriter in connection with the offering of the bonds themselves.
It also approves various other documents that will be used to make sure that those
bonds are secured and repaid in a timely fashion, and it includes a bond purchase contract
with the underwriter, as long as certain parameters are met. It delegates the authority to
the Chair to enter that purchase contract, and those parameters are included in section six
of the resolution under II. and I'll just go through those with you for one moment. It allows
that the Chair may enter into that contract as long as the principal amount of the bond does
not exceed $7,000,000, and as long as the interest rate is a rate not more than 300 basis
points above the bond buyers 20 bond index, which was published in the month prior to the
sale of the bonds. It requires that the price of the bonds be at not less than 98 percent, and
the final maturity of those bonds be no later than November 1, 2048.
I'd be happy to go through any portion of the resolution if there's any questions, but
that's the main purpose of the resolution is authorizing entering the bond contract with the
underwriter and allowing those bonds to be issued to finance the 2015 project. With that,
I'll be happy to take any questions.
Mr. Ward asked any questions from the Board? Hearing none, a motion to approve
the resolution is in order.
On MOTION made by Mr. Burdett and seconded by Mr.
Simonetti,with all in favor, Resolution 2015-6 was approved.
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FLOW WAY CDD February 10, 2015 16 '
FIFTH ORDER OF BUSINESS Consideration of Resolution 2015-7 of the
Board of Supervisors of the Flow Way
Community Development District adopting
continuing disclosure policies &
procedures; and providing for severability
and an effective date.
Mr. Ward stated, as a way of some brief background, the continuing disclosure is a
provision that we are required to enter into when we issue bonds. We did it for the 2013
bonds; we will do it again for the 2015 bonds. That provides that the District will report
certain information on a continuing basis to the bondholders, and upload that to the
national repositories. The form of the continuing disclosure that's attached to the resolution
is consistent with what we've done for the 2013 bonds, and will be consistent for what we
will do for the 2015 bonds. This is kind of like a belts and suspenders kind of resolution,
since we also enter into an agreement as a part of the closing of those set of bonds related
to the continuing disclosure.
It is becoming significantly more important on an ongoing basis each year as the
District issues debt. The important part is that it really requires us to not only disclose the
information contained in this exhibit to the resolution, but it requires us to report if we do not
report this information, that we have to notify the repositories that we did not receive the
information from the primary developer. That's what we call a listed event pursuant to this
disclosure information. If you have any questions with respect to the resolution, I'd be glad
to answer them. Otherwise, it is recommended for your consideration.
Mr. Asher asked what is the training requirement, the training of employees.
Mr. Ward stated that would be me, but since I already know how to do it.
Mr. Asher stated oh, it's for you.
Mr. Ward stated yes, apparently, I am the employee pursuant to that. All it's really
doing is saying that we have to report this information and, in the event that we don't, that
we need to notify the national repository that we are not providing the information. Most of
the information, if you look at it, is really related to the developer providing us the
information on a regular basis. The yearly information that we are required to report, I
actually report that information on a quarterly basis, but at the moment, it's primarily related
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FLOW WAY CDD February 10, 2015 1 V I 1
to me, since I am your disclosure representative, pursuant to this continuing disclosure
agreement.
Any further questions? Hearing none, a motion to adopt the resolution is in order.
rOn MOTION made by Mr. Asher and seconded by Mr. Berg, with
all in favor, Resolution 2015-7 was approved.
SIXTH ORDER OF BUSINESS Staff Reports
a) District Attorney
No report
b) District Engineer
No report
c) District Manager
I. Financial Statements—Interim as of December 31, 2014
Mr. Ward stated I have nothing for you. I've enclosed your December 31st, 2014, in
your agenda package. If you have any questions with respect to them, I'd be glad to answer
them. The District is kind of cruise control at this point, so there's really nothing that I need
to bring to your attention.
SEVENTH ORDER OF BUSINESS Supervisors Requests and
Audience Comments
Mr. Ward asked anything from the Board? The record will reflect that there are no
members of the audience present.
EIGHTH ORDER OF BUSINESS Adjournment
Mr. Ward stated a motion to adjourn would be in order.
On MOTION made by Mr. Burdett and seconded by Mr. Asher,
with all in favor,the meeting was adjourned at 3:45 p.m.
JamesJ4'Ward Secretary er,John Chairman
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