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Backup Documents 09/22/2015 Item #11G ORIGINAL DOCUMENTS CHECKLIST & ROUTING SL P TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO AG THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNA Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. **NEW** ROUTING SLIP Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office. Route to Addressee(s)(List in routing order) Office Initials Date 1. 2. 3. County Attorney Office County Attorney Office 4. BCC Office Board of County Commissioners 5. Minutes and Records Clerk of Court's Office 9,12-gin I 11 t.'3rvt PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff Laura Zautcke UD Financial Ops Support Phone Number 252-2539 Contact/ Department Agenda Date Item was 9/22/2015 Agenda Item Number 11G Approved by the BCC Type of Document Resolution/CWS Resolution ao6---6 ( Number of Original One Attached aD6 (cif jp Documents Attached PO number or account n/a number if document is to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature? LAZ 2. Does the document need to be sent to another agency for additional signatures? If yes, N/A provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be LAZ signed by the Chairman,with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's N/A Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the LAZ document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's LAZ signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip N/A should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on 9/22/15 and all changes made during the LAZ meeting have been incorporated in the attached document. The County Attorney's Office has reviewed the changes,if applicable. 9. Initials of attorney verifying that the attached document is the version approved by the LAZ BCC,all changes directed by the BCC have been made,and the document is ready for the Chairman's signature. c ` 1:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12 1 1G RESOLUTION 2015-1 96'CWS RESOLUTION 2015- 0 1 A RESOLUTION SUPPLEMENTING RESOLUTION NO. CWS-85-13 IN CERTAIN RESPECTS, WHICH RESOLUTION NO. CWS-85-13, AMONG OTHER THINGS, RESTATED RESOLUTION NO. CWS-85-5 IN ITS ENTIRETY AND AUTHORIZED THE ISSUANCE BY THE COLLIER COUNTY WATER-SEWER DISTRICT OF WA IE,R AND SEWER REVENUE BONDS FROM TIME TO TIME; AUTHORIZING THE ADVANCE REFUNDING OF A PORTION OF THE COLLIER COUNTY WATER- SEWER DISTRICT WATER AND SEWER REVENUE BONDS, SERIES 2006 IN ORDER TO ACHIEVE DEBT SERVICE SAVINGS; AUTHORIZING THE ISSUANCE OF A NOT EXCEEDING $18,000,000 AGGREGAIE PRINCIPAL AMOUNT OF COLLIER COUNTY WATER- SEWER DISTRICT WA 1'ER AND SEWER REFUNDING REVENUE BOND, SERIES 2015 IN ORDER TO EFFECT SUCH REFUNDING; AUTHORIZING A NEGOTIATED SALE OF SAID BOND PURSUANT TO THE PROPOSAL OF BANK OF AMERICA, N.A.; DELEGATING CERTAIN AUTHORITY TO THE CHAIRMAN IN CONNECTION WITH THE APPROVAL OF THE TERMS AND DETAILS OF SAID BOND; APPOINTING THE CLERK AS PAYING AGENT AND REGISTRAR FOR SAID BOND; AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT AND APPOINTMENT OF AN ESCROW AGENT THERETO; APPROVING AND RATIFYING THE EXECUTION AND DELIVERY OF A RATE LOCK AGREEMENT; AND PROVIDING AN EFFECTIVE DA IE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ACTING AS THE EX-OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT: SECTION 1. FINDINGS. It is hereby found and determined that: (A) On July 30, 1985, the Board of County Commissioners of Collier County, Florida, acting as the ex-officio governing board (the "Governing Body") of the Collier County Water-Sewer District (the "Issuer") duly adopted Resolution No. CWS-85-5, as amended and restated by Resolution No. CWS-85-13 duly adopted on December 26, 1 1G 1985, as amended and supplemented (collectively, the "Resolution"), for the purposes described therein. (B) The Issuer previously issued its Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2006 (the "Series 2006 Bonds") pursuant to the Resolution for the purpose of financing and refinancing certain capital improvements to the Issuer's System (as defined in the Resolution). (C) The Resolution provides for the issuance of Additional Bonds, payable on a parity with Bonds Outstanding (as such terms are defined in the Resolution) under the Resolution (the "Outstanding Parity Bonds"), for the purpose of advance refunding a portion of the Series 2006 Bonds (as determined pursuant to the provisions hereof, the "Refunded Bonds"), upon meeting certain requirements set forth in the Resolution. (D) The Issuer deems it to be in its best interest to issue its Collier County Water-Sewer District Water and Sewer Refunding Revenue Bond, Series 2015 (the "Series 2015 Bond") for the principal purpose of advance refunding the Refunded Bonds in order to achieve net present value debt service savings for the Issuer, which Series 2015 Bond shall be issued on parity in all respects with the Outstanding Parity Bonds pursuant to the terms of the Resolution. (E) For the refunding of the Refunded Bonds, the Issuer shall, as provided herein, deposit part of the proceeds derived from the sale of the Series 2015 Bond, together with other legally available moneys of the Issuer, in a special escrow deposit trust fund (the "Escrow Fund"), which shall be sufficient to pay the Refunded Bonds as the same mature or are redeemed prior to maturity, all as provided herein and in the hereinafter described Escrow Deposit Agreement; subsequent to the defeasance of the Refunded Bonds, the Refunded Bonds shall no longer be payable from or be secured by any portion of the Pledged Funds (as defined in the Resolution). (F) On September 8, 2015, the Governing Body determined that the proposal of Bank of America, N.A. (the "Purchaser") to purchase the Series 2015 Bond (the "Proposal") was the most cost effective and conforming proposal the Issuer received in response to its previously issued Request for Quote and the Issuer accepted the Proposal. (G) Due to the potential volatility of the market for tax-exempt obligations such as the Series 2015 Bond and the complexity of the transactions relating to such Series 2015 Bond, it is in the best interest of the Issuer to sell the Series 2015 Bond by a negotiated sale to the Purchaser pursuant to the Proposal and the provisions hereof and of the Resolution, rather than at a specified advertised date, thereby permitting the Issuer to obtain the best possible price,terms and interest rate for the Series 2015 Bond. (H) The Issuer hereby certifies that it is current in all deposits into the various funds and accounts established by the Resolution and all payments theretofore required to 2 1 1G f!, have been deposited or made by the Issuer under the provisions of the Resolution have been deposited or made and the Issuer has complied with the covenants and agreements of the Resolution and is not currently in default under the Resolution. (I) The Resolution provides that the Series 2015 Bond shall mature on such dates and in such amounts, shall bear such rates of interest, shall be payable in such places and shall be subject to such redemption provisions as shall be determined by Supplemental Resolution (as defined in the Resolution) adopted by the Issuer; and it is now appropriate that the Issuer determine certain of such provisions, terms and details and establish the mechanisms for determining the remaining provisions, terms and details. (J) The Series 2015 Bond shall not be or constitute a general obligation or indebtedness of the Issuer as a "bond" within the meaning of any constitutional or statutory provision but shall be a special obligation of the Issuer, payable solely from and secured by a lien upon and pledge of the Pledged Funds, in the manner and to the extent provided in the Resolution. (K) The covenants, pledges and conditions in the Resolution shall be applicable to the Series 2015 Bond herein authorized and said Series 2015 Bond shall be on a parity with and rank equally as to the lien on and source and security for payment from the Pledged Funds and in all other respects with the Outstanding Parity Bonds, and shall constitute a"Bond" within the meaning of the Resolution. SECTION 2. DEFINITIONS. When used in this Supplemental Resolution, the terms defined in the Resolution shall have the meanings therein stated, except as such definitions shall be hereinafter amended and defined. SECTION 3. AUTHORITY FOR THIS SUPPLEMENTAL RESOLUTION. This Supplemental Resolution is adopted pursuant to the provisions of the Act. SECTION 4. AUTHORIZATION OF THE ADVANCE REFUNDING OF THE REFUNDED BONDS; CONFIRMATION OF PROPOSAL. (A) The Issuer hereby authorizes the advance refunding of the Refunded Bonds for the purpose of achieving net present value debt service savings. Prior to the issuance of the Series 2015 Bond, the Chairman shall determine, in his sole discretion and upon the advice of the Issuer's financial advisor, Public Financial Management, Inc. (the "Financial Advisor") and the Issuer's Bond Counsel, Nabors, Giblin &Nickerson, P.A. (the "Bond Counsel"), which specific maturities of the Series 2006 Bonds (or portions thereof) shall be refunded in connection with the issuance of the Series 2015 Bond and only such maturities (or portions thereof)shall constitute "Refunded Bonds" hereunder. 3 1 1G (B) The Issuer hereby confirms its prior acceptance of the Proposal of the Purchaser, a copy of which is attached hereto as Exhibit A. SECTION 5. AUTHORIZATION AND DESCRIPTION OF THE SERIES 2015 BOND. The Issuer hereby authorizes the issuance of a Series of Bonds in the principal amount of not exceeding $18,000,000 to be known as the "Collier County Water-Sewer District Water and Sewer Refunding Revenue Bond, Series 2015" (or such other designation as the Chairman may determine), for the principal purpose of refunding, on an advance basis, the Refunded Bonds. The specific principal amount of the Series 2015 Bond to be issued pursuant to the Resolution shall be determined by the Chairman, upon the advice of the Issuer's Financial Advisor, provided such principal amount does not exceed $18,000,000. The Series 2015 Bond shall be on parity in all respects and shall rank equally as to lien on and source and security for payment from the Pledged Funds with the Outstanding Parity Obligations. The Series 2015 Bond shall be dated as of its date of issuance, or such other date as the Chairman may determine, shall be issued in the form of one fully registered Bond in the denomination of its outstanding principal amount and shall be numbered "R-l." The Series 2015 Bond shall bear interest from its dated date at a fixed interest rate of 1.75% per annum (the "Interest Rate"). The Interest Rate is subject to adjustment as provided in Sections 12 and 13 hereof. The Interest Rate shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. Interest on the Series 2015 Bond shall be payable semi-annually, on January 1 and July 1 of each year (the "Interest Payment Dates"), commencing on January 1, 2016. The Series 2015 Bond shall be issued as a single Term Bond with a final maturity of July 1, 2022 and shall be subject to mandatory sinking fund redemption in such Sinking Fund Installments commencing on July 1, 2017 and on each July 1 thereafter through the maturity date of the Series 2015 Bond, determined by the Chairman, upon the advice of the Issuer's Financial Advisor, and approved by the Purchaser prior to the issuance of the Series 2015 Bond. The Series 2015 Bond shall be sold on a negotiated basis to the Purchaser at a purchase price equal to 100% of the aggregate principal amount thereof. The Purchaser shall provide the Issuer with an executed Disclosure Letter and Truth-in-Bonding Statement as required by Section 218.385, Florida Statutes, prior to the issuance of the Series 2015 Bond. The Interest Rate on the Series 2015 Bond shall comply in all respects with Section 215.84, Florida Statutes. For purposes of the Resolution, "Bond Year" shall mean the period commencing on July 1 of each year and continuing through the next succeeding June 30. The Series 2015 Bond shall be payable as to principal and interest by bank wire transfer or direct debit of a deposit account of the Issuer or in such other manner as is agreed to between the Issuer and the holder of the Series 2015 Bond in whose name the Series 2015 Bond shall be registered on the registration books maintained by the Issuer as of the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding an Interest Payment Date; provided, that the registered 4 1 1 G owner of the Series 2015 Bond shall present and surrender the Series 2015 Bond to the Issuer for the final payment of the principal of the Series 2015 Bond or shall provide evidence that such Series 2015 Bond has been cancelled. Principal of and interest on the Series 2015 Bond shall be payable in any coin or currency of the United States of America, which at the time of payment, are legal tender for the payment of public and private debts. The Series 2015 Bond shall be substantially in the form set forth in Section 2.10 of the Resolution, with such changes, amendments, modifications, omissions and additions as may be approved by the Chairman. Execution of the Series 2015 Bond by the Chairman shall be conclusive evidence of approval of any such changes. SECTION 6. REDEMPTION PROVISIONS. (A) The Series 2015 Bond may be redeemed in whole, or in part, on any date, with three (3) days prior written notice to the Series 2015 Bondholder by payment in an amount equal to the principal amount to be prepaid plus accrued interest thereon to the date of prepayment plus the Prepayment Fee. For purposes of this Section 6, the Prepayment Fee will be the sum of fees calculated separately for each Prepaid Installment(as defined below), as follows: (i) The Series 2015 Bondholder will first determine the amount of interest which would have accrued each month at the Taxable Equivalent Rate (as defined below) for the Prepaid Installment had it remained outstanding until the applicable Original Payment Date(as defined below). (ii) The Series 2015 Bondholder will then subtract from each monthly interest amount determined in (i) above, the amount of interest which would accrue for that Prepaid Installment if it were reinvested from the date of redemption through the Original Payment Date, using the Treasury Rate(as defined below). (iii) If(1) minus (ii) for the Prepaid Installment is greater than zero, the Series 2015 Bondholder will discount the monthly differences to the date of by the Treasury Rate. The Series 2015 Bondholder will then add together all of the discounted monthly differences for the Prepaid Installment. The following defmitions will apply to the calculation of the Prepayment Fee: "Original Payment Dates" mean the dates on which the redeemed principal would have been paid if there had been no redemption. If any of the principal would have been paid later than the end of the fixed rate interest period in effect at the time of redemption, then the Original Payment Date for that amount will be the last day of the interest period. "Prepaid Installment" means the amount of the redeemed principal which would have been paid on a single Original Payment Date. "Taxable Equivalent Rate" means the interest rate per annum derived from the following formula: Interest Rate on the applicable Series 2015 Bond divided by the 5 1 1G difference of (1 minus the Maximum Corporate Income Tax Rate). The "Maximum Corporate Income Tax Rate" is the highest marginal federal income tax rate charged to U.S. corporations in effect at the time of the prepayment calculation. The "Maximum Corporate Income Tax Rate" is currently 35% (or 0.35 in numerical terms). "Treasury Rate" means the yield on the Treasury Constant Maturity Series with a maturity equal to the Original Payment Date of the Prepaid Installment calculated as of the date of prepayment in accordance with accepted financial practice and rounded to the nearest quarter-year, as reported in Federal Reserve Statistical Release H.15, Selected Interest Rates of the Board of Governors of the Federal Reserve System, or any successor publication. If no maturity exactly corresponding to such Original Payment Date appears in Release H.15,the Treasury Rate will be determined by linear interpolation between the yields reported in Release H.15. If for any reason Release H.15 is no longer published, the Series 2015 Bondholder shall select a comparable publication to determine the Treasury Rate. (B) Notwithstanding any other provision of the Resolution, the Issuer shall not be required to provide the Series 2015 Bondholder with any notice with respect to the payment of any scheduled Sinking Fund Installment. SECTION 7. APPLICATION OF SERIES 2015 BOND PROCEEDS. The proceeds derived from the sale of the Series 2015 Bond shall be applied by the Issuer simultaneously with the delivery thereof as follows: (A) A sufficient amount of Series 2015 Bond proceeds, together with other legally available moneys of the Issuer, shall be deposited irrevocably in trust in the Escrow Fund established under the terms and provisions of the hereinafter defined Escrow Deposit Agreement to pay the principal of, Redemption Price, if applicable, and interest on the Refunded Bonds as the same mature and become due and payable or are redeemed prior to maturity. (B) A sufficient amount of the Series 2015 Bond proceeds shall be applied to the payment of costs and expenses relating to the issuance of the Series 2015 Bond. SECTION 8. TRANSFER OF CERTAIN MONEYS. The Refunded Bonds will be refunded from proceeds of the Series 2015 Bond and from other legally available funds of the Issuer. Any excess moneys on deposit in the Sinking Fund established for the benefit of the Refunded Bonds pursuant to the Resolution and not required to remain on deposit therein shall be transferred to the Escrow Fund established pursuant to the Escrow Deposit Agreement. SECTION 9. APPOINTMENT OF PAYING AGENT AND REGISTRAR. The Clerk is hereby designated Registrar and Paying Agent for the Series 2015 Bond. 6 hG1 SECTION 10. AUTHORIZATION TO EXECUTE ESCROW DEPOSIT AGREEMENT. The Issuer hereby authorizes and directs the Chairman to execute and the Clerk to attest an escrow deposit agreement(the "Escrow Deposit Agreement") and to deliver the Escrow Deposit Agreement (the "Escrow Agreement") to The Bank of New York Mellon Trust Company, N.A., Jacksonville, Florida, which is hereby appointed as Escrow Agent. The Escrow Deposit Agreement shall be in substantially the form of the Escrow Agreement attached hereto as Exhibit B with such changes, amendments, modifications, omissions and additions, including the date of such Escrow Agreement, as may be approved by said Chairman. Execution by the Chairman of the Escrow Agreement shall be deemed to be conclusive evidence of approval of such changes. The Chairman is authorized and directed to determine, upon the advice of the Financial Advisor and Bond Counsel, whether to fund the escrow deposit trust fund established under the Escrow Deposit Agreement, with uninvested cash or Refunding Securities (as defined in the Resolution) and the provisions of the Escrow Deposit Agreement may be modified accordingly. SECTION 11. APPROVAL AND RATIFICATION OF RATE LOCK AGREEMENT. The Issuer hereby approves and ratifies the Issuer's prior execution and delivery of the rate lock agreement attached hereto as Exhibit C (the "Rate Lock Agreement") and all actions taken by officials and staff of the Issuer, the Financial Advisor and Bond Counsel in connection therewith. If the Issuer is obligated to pay a breakage fee pursuant to the Rate Lock Agreement, such obligation shall be secured by and payable from a pledge of and lien on the Gross Revenues (as defined in the Resolution); provided, however, such pledge of and lien on the Gross Revenues shall be junior and subordinate in all respects to the pledge and lien granted to the holders of the Bonds and the Issuer's outstanding state revolving loan agreements. SECTION 12. DETERMINATION OF TAXABILITY. (A) In the event of a Determination of Taxability (as defined below), the Interest Rate on the Series 2015 Bond shall be immediately increased to a rate equal to 154% of the then applicable Interest Rate (the "Adjusted Rate"); provided, however, such Adjusted Rate shall never exceed the maximum rate allowable by law. Immediately upon a Determination of Taxability, the Issuer agrees to pay to the Series 2015 Bondholder on demand, the Additional Amount. "Additional Amount" means (i) the difference between (a) interest on the Series 2015 Bond for the period commencing on the date on which the interest on the Series 2015 Bond(or portion thereof) is deemed to have lost its tax-exempt status and ending on the effective date of the adjustment of the Interest Rate to the Adjusted Rate (the "Taxable Period") at a rate per annum equal to the Adjusted Rate and (b) the aggregate amount of interest paid on the Series 2015 Bond during the Taxable Period at the Interest Rate applicable to the Series 2015 Bond prior to the adjustment to the Adjusted Rate,plus (ii) any penalties, fines, fees, costs and interest paid or payable by the Series 2015 Bondholder to the Internal Revenue Service by reason of such Determination 7 1 10 of Taxability. This provision shall survive the repayment of the Series 2015 Bond until such time as the federal statute of limitations under which the interest on the Series 2015 Bond could be declared taxable under the Internal Revenue Code has expired. (B) For purposes of this Section 12, the term Determination of Taxability shall have the meaning ascribed thereto as follows: "Determination of Taxability" shall mean the circumstance of interest paid or payable on the Series 2015 Bond becoming includable for federal income tax purposes in the gross income of the Series 2015 Bondholder as a consequence of any act or omission of the Issuer. For all purposes of this definition, a Determination of Taxability will be deemed to occur on the date as of which the interest on the Series 2015 Bond is deemed includable in the gross income of the Series 2015 Bondholder. A Determination of Taxability shall not occur solely in the event such interest is taken into account in determining adjusted current earnings for the purpose of the alternative minimum income tax imposed on corporations. SECTION 13. DEFAULT. After the occurrence of an Event of Default under Section 7.01 of the Resolution or if any of the Outstanding Bonds are downgraded below Baa3BBB-BBB- (or the equivalent) by any of Moody's Investors Service, Standard & Poor's Ratings Service or Fitch Ratings, respectively, notwithstanding any other terms hereof or of the Resolution, the Purchaser may adjust the Interest Rate to the maximum rate allowed under applicable law until such Event of Default is cured or until no such rating is below Baa3/BBB-/BBB- (or the equivalent). The Purchaser shall give the Issuer notice of any such adjustment. If any payment of principal or interest with respect to the Series 2015 Bond is not paid within 15 days of the respective due date, the Purchaser may impose a late fee equal to four percent(4%) of the delinquent amount. SECTION 14. REPORTING FINANCIAL INFORMATION. As soon as available, but not later than 270 days following the end of each Fiscal Year, the Issuer shall provide the Purchaser with the Issuer's annual audited financial statements. The Issuer shall provide the Purchaser with its annual budget within 30 days of adoption and shall provide the Purchaser with other information relating to the Series 2015 Bond or the security with respect thereto upon reasonable request. SECTION 15. TRANSFER. The Holder of the Series 2015 Bond may sell, transfer or assign the Series 2015 Bond in whole only in accordance with the provisions of Section 2.08 of the Resolution to an "accredited investor" under Regulation D promulgated under the Securities Act of 1933, as amended, or a "qualified institutional buyer" under Rule 144A promulgated under the Securities Act of 1933, as amended; provided, however, the Holder of the Series 2015 Bond may transfer the Series 2015 Bond to an affiliate of the Holder without restriction. The Series 2015 Bondholder shall 8 1 1G notify the Issuer and the Clerk of any sale, transfer or assignment of the Series 2015 Bond. Notwithstanding the foregoing, the Purchaser may sell participations in the Series 2015 Bond to any number of Participants as long as the Purchaser complies with all applicable securities laws. SECTION 16. WAIVER OF JURY TRIAL; APPLICABLE LAW AND JURISDICTION. (A) To the extent permitted by applicable law, the Issuer, knowingly, voluntarily and intentionally waives any right it may have to a trial by jury in respect of any litigation based on, or arising out of, under or in connection with the Resolution, the Series 2015 Bond or any agreement contemplated to be executed in connection with the Resolution, or any course of conduct, course of dealing, statements (whether verbal or written) or actions of the Issuer or the Purchaser. (B) The substantive laws of the State of Florida shall govern the Resolution,the Series 2015 Bond or any agreement contemplated to be executed in connection with the Resolution. The Issuer submits to the jurisdiction of Florida courts and federal courts and agrees that venue for any suit concerning this Resolution shall be in Collier County, Florida and the Middle District of Florida. SECTION 17. GENERAL AUTHORITY. The members of the Governing Body of the Issuer, the County Manager, the Clerk and the officers, attorneys and other agents or employees of the Issuer are hereby authorized to do all acts and things required of them by this Supplemental Resolution, the Resolution, the Rate Lock Agreement or the Escrow Agreement, or desirable or consistent with the requirements hereof or the Resolution or the Escrow Agreement for the full punctual and complete performance of all the terms, covenants and agreements contained herein or in the Series 2015 Bond, the Resolution, the Rate Lock Agreement and the Escrow Agreement and each member, employee, attorney and officer of the Issuer and the Clerk is hereby authorized and directed to execute and deliver any and all papers and instruments and to be and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated hereunder. In the event the Chairman is absent or unavailable to perform any function or duty hereunder the Vice-Chairman is hereby authorized to perform any and all of such functions or duties. Bond Counsel and the Issuer's Financial Advisor are hereby authorized and directed to take all action necessary and desirable to carryout the intent and purposes of this Supplemental Resolution. SECTION 18. MODIFICATION OR AMENDMENT OF THIS SUPPLEMENTAL RESOLUTION. No modification or amendment of this Supplemental Resolution or of any resolution amendatory thereof or supplemental thereto, which would have an adverse effect on the Purchaser may be made without the consent in writing of the Purchaser. 9 I 1 GSECTION 19. SEVERABILITY AND INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the other provisions hereof or of the Series 2015 Bond. SECTION 20. RESOLUTION TO CONTINUE IN FORCE. Except as herein expressly provided,the Resolution and all the terms and provisions thereof are and shall remain in full force and effect. SECTION 21. DATE. This Supplemental Resolution shall become effective immediately upon its adoption. DULY ADOPTED, in Regular Session this 22nd day of September, ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORItitvAS,THE EX- OFFICIO CHAIRMAN " ; &F- THE GOVERNING BOARD OE • E::COLLIER COUNTY WATER-SEWER jISTRICT' �0�33711i1sE'' By: -: By: C� �,c 7-e • #Rk•s` t e'„ ' 'Clerk Tim Nance, Chairman App • Ohl andlg, , Jeffre; A. latzkow Coun At r ey ►tem# 116 Agenda .44,1,41a.16- Date DFta ��� Rec'd v'_L r 10 II AV �� ! - Deputy Cell 1k 1 G „,,, EXHIBIT A PROPOSAL OF THE PURCHASER • • { ,.i 11G Collier County, Florida August 31,2015 Bank of America Merrill Lynch Bank of America Merrill Lynch 11G Summary of Terms and Conditions Submission date: August 31,2015 Parties to the Transaction Borrower: Collier County,Florida(the"Borrower" or the"City"or the"Issuer") Bank of America,N.A.or any other subsidiary of Bank of America Corporation Lender: ("BANA"or the"Bank"). W-9 forms will be submitted as requested upon award. The Facility Facility: Fully funded term loan Facility Amount: Not to exceed$18,000,000 Security: First lien upon the Net Revenues of the County's Water and Sewer System and certain charges imposed by the District on Persons(as further defined in the Resolution). All security language shall be acceptable to the Bank and its counsel. Use of Proceeds: To refund a portion of Collier County's Water and Sewer Districts outstanding Water and Sewer Revenue Bonds,Series 2006 and to pay the cost of issuance. Optional Prepayments and Commitment Reductions: Prepayments are permitted at any time with three business days' prior notice. All prepayments will be subject to a prepayment penalty as set forth on Exhibit A hereto. Interest Rates: Interest Rate: An indicative non bank qualified interest rate as of August 31, 2015 is 1.71%. The actual rate shall be set two business days prior to closing utilizing the sum of(i)the fixed rate of at 57 month interest rate swap rate having a floating rate equal to three (3) month Libor as determined by linear interpolation plus 5 basis points. The Bank shall use Bloomberg to establish such rates. If for any reason swap rates are no longer listed on Bloomberg, the Bank shall select a comparable platform to determine the interest rate swap rate. The above pricing formula is valid only if the loan is closed on or before October 30, 2015. After October 30, 2015, the formula is subject to change at Bank's sole discretion. The above interest rate assumes that this is a non bank qualified tax exempt obligation and is subject to a legal opinion acceptable to the Bank and its counsel. Page 1 BankofAmerica*o Merrill Lynch 1 1 G t Repayment Terms) Interest shall be payable semi-annually on January 1 and July 1, commencing Maturity Date: on January 1,2016. Principal shall be due annually on July 1,commenicng July 1, 2017. Interest shall be calculated on a 30/360 day count basis. The amortization is assumed as follows. Modification to amortization shall be accepted at Bank's sole discretion. July 1,2017 $2,523,000 July 1,2018 $2,575,000 July 1,2019 $2,625,000 July 1,2020 $2,680,000 July 1,2021 $2,739,000 July 1,2022 $4,585,000 Determination of Upon a Determination of Taxability with respect to the Facility,the Facility will Taxability: bear interest from the date that taxability commences at a rate equal to the product of the tax-exempt rate of interest otherwise in effect and the Taxable Rate Factor(currently 1.54). Determination of Taxability will only include circumstances resulting from the action or inaction of the Issuer (e.g., will not include changes to the Internal Revenue Code). The Taxable Rate Factor is the amount by which the tax-exempt rate must be mulitplied to achieve the equivenlant taxable ate given the highest margin federal corporate tax rate,currently 35%. The Taxable Rate Factore is subject to change should the highest marginal federal corporate tax rate change. The Borrwer is also responsible for payment of any interest,penalties or charges owed by the Lender as a result of interest on the Facility that accrues from becoming includable in the gross income fo the Lender, together with any and all attorneys' fees, court costs, or other out-of -pocket cost ncurred by th4e Lender in connection therewith. A change in the interest rate due to this provision will NOT trigger an exception for the prepayment penalty provision. Day Count: Interest of the Facility will be calculated on the basis of twelve 30 day months and a 360 day year. Default Rate: During the continuance of any default under the Facility, the interest rate shall be increased to the maximum rate allowed under law. Other Fees and Expenses Bank Counsel: Fixed at$5,500 plus disbursements Timing of Payments: All fees are non-refundable and are payable at closing in immediately available funds. Other Standard Provisions Pa e 2 BankofAmerica`y g Merrill Lynch 1 1 G Indemnification: To the extent permitted by Iaw,the Borrower will indemnify and hold harmless BANA and its respective affiliates and its partners, directors, officers, employees, agents and advisors from and against all losses, claims, damages, liabilities and expenses arising out of or relating to the Facility, the Borrower's use of loan proceeds or the commitment including, but not limited to, reasonable attorneys' fees (including on appeal and including the allocated cost of internal counsel) and settlement costs.This indemnification shall survive and continue for the benefit of all such persons or entities. Assignment and BANA will be permitted to make assignments to other financial institutions and Participations: sell participations without the consent of the Borrower. Waivers/ Amendments and waivers of the provisions of the Agreement and other Amendments: definitive credit documentation will require the approval of BANA. Choice of Law/jury Trial/Venue Governing Law: This Proposed Term Sheet and any other documents to which the Bank shall become a party will be governed by the laws of the State of Florida. Jury Trial: The Issuer agrees, to the extent permitted under applicable law, to waive any right to a trial by jury in any action or proceeding with respect to any dispute or controversy under the Loan Documents. Venue: Any litigation involving the Bank shall be brought in the appropriate Florida or United States court having jurisdiction over the matter. Description of the Basic Documentary Terms and Conditions Representations and Warranties: Standard for this type of facility subject to review and acceptance by Bank and it counsel. Covenants: Usual and customary for transactions of this type subject to review and acceptance by Bank and it Counsel. Financial Covenants: The debt shall be subject to a rate covenant and additional bonds of 1.25x defined as net revenues divided by annual debt service for the rate covenant and maximum annual debt service for the additional bonds test and 1.00 times defined as net revenues divided by annual debt service plus required reserve deposits for the rate covenant and net revenues divided by maximum annual debt service and reserve requirements for the additional bonds test. All final covenant definitions are subject to review and acceptance by Bank and its counsel. Reporting Within 270 days after the close of each fiscal year of the Borrower,the Borrower Requirements: shall provide complete audited financial statements of the Borrower. In addition upon request by BANA, the Borrower shall provided the board authorized budget and any such other information as the BANA may reasonable request. Page 3 Bank of America Merrill Lynch 11G Events of Default: Usual and customary in transactions of this type including, without limitation, the following: (i) nonpayment of principal, interest, fees or other amounts; (ii) failure to perform or observe covenants set forth in the loan documentation; (iii) any representation or warranty proving to have been incorrect when made or confirmed; (iv) cross-default to other parity debt(v) bankruptcy, insolvency, debt moratorium, etc.; (vi) monetary judgment defaults in an amount to be agreed and material non-monetary judgment defaults; (vii) actual or asserted invalidity or impairment of any loan documentation; and (viii) downgrade below Baa3/BBB-/BBB- (or the equivalent) by Moody's, S&P or Fitch, respectively. Remedies: The Bank may, among other things, cause the Default Rate to apply to all outstanding obligations of the Borrower to the Bank and pursue any other remedies to which it is entitled under the Agreement, at law or in equity. For any payment that is more than 15 days late, the Bank may impose a late fee equal to 4% of the amount of the late payment. Contacts Bank of America,N.A.(BANA): Name: Holly Kuhlman Title: Senior Vice President Address: 9128 Strada Place,Suite 10110 Naples,Florida 34103 Telephone: (239)598-8805 email: Holly.kuhlman@baml.com Bank Counsel: Bank Counsel: Mark Raymond Address: 4360 Northlake Blvd,Suite 204 Palm Beach Gardens,Florida 33418 Telephone: (561)775-8440 email: Mark.raymond@mraymondlaw.com Proposed Terms and Conditions Subject to Certain Events This Sunnuany of Terms is intended only as an outline of certain of the material terms of the Facility and does not purport to summarize all of the conditions, covenants, representations, warranties and other provisions that would be contained in definitive documentation for the Facility contemplated hereby. This Summary of Terms is not a commitment. It represents a willingness on the part of BANA to seek approval to provide the commitment indicated herein and consummate a transaction based upon the terms and conditions outlined in this term sheet and is subject to: Final credit approval(see"Credit Process Timeframe"below), Absence of any material adverse change in the financial condition,operations or Page 4 Bank of America�I Merrill Lynch 1 10 prospects of the Borrower, or in any law, rule or regulation (or their interpretation or administration), that, in each case, may adversely affect the consummation of the transaction, to be determined in the sole discretion of BANA, Such additional due diligence as the Lender may require,and Agreement as to all final terms and conditions and satisfactory documentation thereof(including satisfactory legal opinions). Credit Process: The credit process will take 10 business days from the point at which the Bank is officially awarded the transaction and has in its possession all materials necessary to undertake a full credit analysis. Expiration: Consideration of a financing based on the terms and conditions presented in this term sheet shall automatically expire 15 days from the date hereof unless the Bank has received this terms sheet executed by the City. If the Bank issues a commitment,the Bank reserves the right to terminate,reduce or otherwise amend its commitment if the subject transaction is not closed within 90 days of the receipt of a signed term sheet. Future The terms,conditions,pricing levels and fees (including legal fees and expenses) Modifications: cited herein reference the financing and the Facility Amount as described in this Summary of Terms and Conditions and are subject to revision in the event that (i) the Facility Amount changes, (ii) the security or transaction structure is modified, (iii) the transaction deviates materially from what was initially described in the RFP or in conjunction therewith, (iv) the proposed financing does not close within 90 days of acceptance by the Borrower. No Advisory or Fiduciary Role This proposal is submitted in response to your Request for Proposals dated August 17,2015. The contents of this proposal and any subsequent discussions between us, including any and all information, recommendations, opinions, indicative pricing, quotations and analysis with respect to any municipal financial product or issuance of municipal securities, are provided to you in reliance upon the exemption provided for responses to requests for proposals or qualifications under the municipal advisor rules (the "Rules") of the Securities and Exchange Commission(Rule 15Ba1-1 et seq.). In submitting this proposal, we are not undertaking to act as a "municipal advisor" to you or any other person within the meaning of Section 15B of the Securities Exchange Act of 1934 and the Rules. In connection with this proposal and the transactions described herein,we are not acting as a financial advisor or municipal advisor to you or any other person, and are not subject to any fiduciary duty to you or to any other person. We understand that you will consult with and rely on the advice of your own municipal,financial, tax, legal and other advisors in connection with your evaluation of this proposal and the transactions described herein. The Issuer acknowledges and agrees that (i) the transaction contemplated by Page 5 Bankof America Merril Lynch 11 G this Summary of Terms and Conditions is an arm's length, commercial transaction between the Issuer and the Bank in which the Bank is acting solely as a principal and for its own interest; (ii) the Bank is not acting as a municipal advisor or financial advisor to the Issuer; (iii) the Bank has no fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934 to the Issuer with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto (irrespective of whether the Bank has provided other services or is currently providing other services to the Issuer on other matters);(iv)the only obligations the Bank has to the Issuer with respect to the transaction contemplated hereby expressly are set forth in this Summary of Terms and Conditions;and(v)the Bank is not recommending that the District take an action with respect to the transaction contemplated by this Summary of Terms and Conditions, and before taking any action with respect to the contemplated transaction, Issuer should discuss the information contained herein with its own legal, accounting, tax, financial and other advisors, as it deems appropriate. If Issuer would like a municipal advisor in this transaction that has legal fiduciary duties to Issuer, Issuer is free to engage a municipal advisor to serve in that capacity. This Summary of Terms and Conditions is provided to Issuer pursuant to and in reliance upon the "bank exemption" provided under the municipal advisor rules of the Securities and Exchange Commission,Rule 15Ba1-1 et seq. Agreement by the Borrower The Borrower hereby agrees to engage Bank of America to provide the Facility, which is the subject hereof,pursuant to the terms and conditions stated herein. Please evidence your agreement with the foregoing by signing and returning a copy of the document to Bank of America. Accepted and Agreed to: COLLIER COUNTY,FLORIDA By: Date: Page 6 BankofAmerica'<' Merrill Lynch 11G Exhibit A The[Bonds, Notes, Certificates, Borrower Note-*conform to defined terms] may be[prepaid, redeemed *Use Applicable Language] in whole, or in part, on[any date*Use for Fixed Rate Transactions][at the end of any Interest Rate Period-*Use For Variable Rate Transactions],with three(3)days prior written notice to the[Bondholder, Noteholder, Certificate Holder, Bank, Lender-*conform to defined terms] by payment in an amount equal to the principal amount to be[prepaid/redeemed -*Use Applicable Language]plus accrued interest thereon to the date of[prepayment/redemption -*Use Applicable Language]plus the Prepayment Fee. For purposes hereof, the Prepayment Fee will be the sum of fees calculated separately for each Prepaid Installment, as follows: (i) The Bank will first determine the amount of interest which would have accrued each month at the Taxable Equivalent Rate for the Prepaid Installment had it remained outstanding until the applicable Original Payment Date, using the interest rate applicable to the Prepaid Installment under this Agreement. (ii) The Bank will then subtract from each monthly interest amount determined in(i), above, the amount of interest which would accrue for that Prepaid Installment if it were reinvested from the date of prepayment or redemption through the Original Payment Date, using the Treasury Rate. (iii) If(i)minus(ii)for the Prepaid Installment is greater than zero,the Bank will discount the monthly differences to the date of prepayment or redemption by the Treasury Rate. The Bank will then add together all of the discounted monthly differences for the Prepaid Installment. The following definitions will apply to the calculation of the Prepayment Fee: (i) "Original Payment Dates"mean the dates on which the prepaid or redeemed principal would have been paid if there had been no prepayment or redemption. If any of the principal would have been paid later than the end of the fixed rate interest period in effect at the time of prepayment or redemption, then the Original Payment Date for that amount will be the last day of the interest period. (ii) "Prepaid Installment"means the amount of the prepaid or redeemed principal which would have been paid on a single Original Payment Date. (iii) "Taxable Equivalent Rate"means the interest rate per annum derived from the following formula: [interest rate on the Bond, Note, Certificate, Borrower Note-*Use Applicable Term]divided by the difference of(1 minus the Maximum Corporate Income Tax Rate). The"Maximum Corporate Income Tax Rate"is the highest marginal federal income tax rate charged to U.S.corporations in effect at the time of the prepayment calculation. The"Maximum Corporate Income Tax Rate"is currently 35% (or :j 0.35 in numerical terms). (iv) "Treasury Rate" means the yield on the Treasury Constant Maturity Series with maturity equal to the Original Payment Date of the Prepaid Installment which are principal payments (calculated as of the [date of redemption/prepayment -*Use Applicable Language] in accordance with accepted financial practice and rounded to the nearest quarter-year), as reported in Federal Reserve Statistical Release H.15, Selected Interest Rates of the Board of Governors of the Federal Reserve System, or any successor publication. If no maturity exactly corresponding to such Original Payment Date appears in Release H.15,the Treasury Rate will be determined by linear interpolation between the yields reported in Release H.15. If for any reason Release H.15 is no longer published, the [Bondholder, Noteholder, Certificate Holder, Bank, Lender, *conform to defined terms] shall select a comparable publication to determine the Treasury Rate. Bank of America'I Merrill Lynch $ 1 1G f \ . EXHIBIT B FORM OF ESCROW DEPOSIT AGREEMENT \ \ - \ i • 110 ESCROW DEPOSIT AGREEMENT ESCROW DEPOSIT AGREEMENT, dated as of September 30, 2015, by and between COLLIER COUNTY WATER-SEWER DISTRICT (the "District"), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (the "Escrow Agent"), a national banking association existing under the laws of the United States of America, having its designated place of business in Jacksonville, Florida, the address of which is 10161 Centurion Parkway, Jacksonville, Florida 32256, as escrow agent hereunder. WHEREAS, the District has heretofore issued its Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2006 (the "Series 2006 Bonds") pursuant to Resolution No. CWS-85-5 adopted on July 30, 1985, as amended and restated by Resolution No. CWS-85-13 adopted on December 26, 1985, as amended and supplemented(collectively,the "Resolution"); and WHEREAS, the District has determined to exercise its option under the Resolution to advance refund that portion of the outstanding Series 2006 Bonds which are described on Schedule A attached hereto (the "Refunded Bonds"); and WHEREAS, the District has determined to issue its $ aggregate principal amount of Collier County Water-Sewer District Water and Sewer Refunding Revenue Bond, Series 2015 (the "Series 2015 Bond") pursuant to the Resolution, a portion of the proceeds of which Series 2015 Bond will be used to purchase certain United States Treasury obligations in order to provide payment for the Refunded Bonds and discharge and satisfy the pledge of the Pledged Funds (as defined in the Resolution) and the covenants, agreements and other obligations of the District under the Resolution in regard to such Refunded Bonds; and WHEREAS, the issuance of the Series 2015 Bond, the purchase by the Escrow Agent of the hereinafter defined Escrow Securities, the deposit of such Escrow Securities into an escrow deposit trust fund to be held by the Escrow Agent and the discharge and satisfaction of the pledge of the Pledged Funds and the covenants, agreements and other obligations of the District under the Resolution in regard to the Refunded Bonds shall occur as a simultaneous transaction; and WHEREAS, this Agreement is intended to effectuate such simultaneous transaction; NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 11G SECTION 1. PREAMBLES. The District represents that the recitals stated above are true and correct and incorporated herein. SECTION 2. RECEIPT OF RESOLUTION AND VERIFICATION REPORT. Receipt of a true and correct copy of the above-mentioned Resolution and this Agreement is hereby acknowledged by the Escrow Agent. The applicable and necessary provisions of the Resolution, including but not limited to Article III and Section 9.01 of the Resolution, are incorporated herein by reference. The Escrow Agent also acknowledges receipt of the verification report of Robert Thomas CPA, LLC, dated September 30, 2015 (the "Verification Report"). Reference herein to or citation herein of any provisions of the Resolution or the Verification Report shall be deemed to incorporate the same as a part hereof in the same manner and with the same effect as if the same were fully set forth herein. SECTION 3. DISCHARGE OF PLEDGE OF HOLDERS OF REFUNDED BONDS. The District by this writing exercises its option under Section 9.01 of the Resolution to cause the pledge of the Pledged Funds and all covenants, agreements and other obligations of the District under the Resolution to the holders of the Refunded Bonds to cease,terminate and become void and be discharged and satisfied. SECTION 4. ESTABLISHMENT OF ESCROW FUND. There is hereby created and established with the Escrow Agent a special, segregated and irrevocable escrow fund designated the "Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2006, Escrow Deposit Trust Fund" (the "Escrow Fund"). The Escrow Fund therein shall be held in the custody of the Escrow Agent as a trust fund for the benefit of the holders of the Refunded Bonds separate and apart from other funds and accounts of the District and the Escrow Agent. The Escrow Agent hereby accepts the Escrow Fund and acknowledges the receipt of and deposit to the credit of the Escrow Fund the sum of$ received from the District from proceeds of the Series 2015 Bonds (the "Bond Proceeds") and $ received from the District from certain moneys on deposit in certain funds and accounts allocated to the Refunded Bonds (the "District Moneys"). SECTION 5. DEPOSIT OF MONEYS AND SECURITIES IN ESCROW FUND. The District hereby directs and the Escrow Agent represents and acknowledges that, concurrently with the deposit of the Bond Proceeds and District Moneys under Section 4 above, it has used $ of the Bond Proceeds and $ of District Moneys to purchase on behalf of and for the account of the District certain United States Treasury obligations (collectively, together with any other securities which may be on deposit, from time to time, in the Escrow Fund, the "Escrow Securities"), which are described in Schedule B hereto, and the Escrow Agent will deposit such Escrow Securities and $ in cash (the "Cash Deposit") in the Escrow Fund. All Escrow Securities shall be noncallable, direct obligations of the United States of America. 2 1 1G In the event any of the Escrow Securities described in Schedule B hereto are not available for delivery on September 30, 2015, the Escrow Agent may, at the written direction of the District and with the approval of the District's bond counsel ("Bond Counsel"), substitute other United States Treasury obligations and shall credit such other obligations to the Escrow Fund and hold such obligations until the aforementioned Escrow Securities have been delivered. Bond Counsel shall, as a condition precedent to giving its approval, require the District to provide it with a revised Verification Report in regard to the adequacy of the Escrow Securities, taking into account the substituted obligations to pay the Refunded Bonds in accordance with the terms hereof. The Escrow Agent shall in no manner be responsible or liable for failure or delay of Bond Counsel or the District to promptly approve the substitutions of other United States Treasury obligations for the Escrow Fund. SECTION 6. SUFFICIENCY OF ESCROW SECURITIES AND THE CASH DEPOSIT. In reliance upon the Verification Report, the District represents that the Cash Deposit and the interest on and the principal amounts successively maturing on the Escrow Securities in accordance with their terms (without consideration of any reinvestment of such maturing principal and interest) are sufficient such that moneys will be available to the Escrow Agent in amounts sufficient and at the times required to pay the amounts of principal of, premium, if any, and interest due and to become due on the Refunded Bonds as described in Schedule C attached hereto. If the Escrow Securities and the Cash Deposit shall be insufficient to make such payments, the District shall timely deposit to the Escrow Fund, solely from legally available funds of the District, such additional amounts as may be required to pay the Refunded Bonds as described in Schedule C hereto. Notice of any insufficiency shall be given by the Escrow Agent to the District as promptly as possible, but the Escrow Agent shall in no manner be responsible for the District's failure to make such deposits. SECTION 7. ESCROW SECURITIES AND THE CASH DEPOSIT IN TRUST FOR HOLDERS OF REFUNDED BONDS. The deposit of the Escrow Securities and the Cash Deposit in the Escrow Fund shall constitute an irrevocable deposit of Federal Securities (as defined in the Resolution) and cash in trust solely for the payment of the principal of, premium, if any, and interest on the Refunded Bonds at such times and in such amounts as set forth in Schedule C hereto, and the principal of and interest earnings on such Escrow Securities and the Cash Deposit shall be used solely for such purpose. SECTION S. ESCROW AGENT TO PAY REFUNDED BONDS FROM ESCROW FUND. The District hereby directs, and the Escrow Agent hereby agrees, that it will take all actions required to be taken by it under the provisions of the Resolution referenced in this Agreement, including the timely transfer of money to the paying agent for the Refunded Bonds (U.S. Bank National Association) as provided in the Resolution, in order to effectuate this Agreement and to pay the Refunded Bonds in 3 11G the amounts and at the times provided in Schedule C hereto. The Escrow Securities and the Cash Deposit shall be used to pay debt service on the Refunded Bonds as they mature or are redeemed prior to maturity. The Refunded Bonds shall be redeemed prior to their respective maturities on July 1, 2016 (the "Redemption Date") at a redemption price equal to 100% of the principal amount of each Refunded Bond, plus interest accrued to the Redemption Date. If any payment date shall be a day on which either the paying agent for the Refunded Bonds or the Escrow Agent is not open for the acceptance or delivery of funds, then the Escrow Agent may make payment on the next business day. The liability of the Escrow Agent for the payment of the principal of, premium, if any, and interest on the Refunded Bonds pursuant to this Agreement shall be limited to the application of the Escrow Securities and the Cash Deposit and the interest earnings thereon available for such purposes in the Escrow Fund. SECTION 9. REINVESTMENT OF MONEYS AND SECURITIES IN ESCROW FUND. Moneys deposited in the Escrow Fund shall be invested, other than the Cash Deposit,only in the Escrow Securities listed in Schedule B hereto and, except as provided in Section 5 hereof and this Section 9, neither the District nor the Escrow Agent shall otherwise invest or reinvest any moneys in the Escrow Fund. Except as provided in Section 5 hereof and in this Section 9, the Escrow Agent may not sell or otherwise dispose of any or all of the Escrow Securities or the Cash Deposit in the Escrow Fund and reinvest the proceeds thereof in other securities nor may it substitute securities for any of the Escrow Securities, except upon written direction of the District and where, prior to any such reinvestment or substitution, the Escrow Agent has received from the District the following: (a) a written verification report by a firm of independent certified public accountants, of recognized standing, appointed by the District and acceptable to the Escrow Agent,to the effect that after such reinvestment or substitution the principal amount of Escrow Securities, together with the interest therein and any uninvested cash, will be sufficient to pay the Refunded Bonds as described in Schedule C hereto; and (b) a written opinion of nationally recognized Bond Counsel to the effect that (i) such investment will not cause the Series 2015 Bonds or the Refunded Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code, as amended, and the regulations promulgated thereunder or otherwise cause the interest on the Refunded Bonds or the Series 2015 Bonds to be included as gross income for purposes of federal income taxation, and (ii) such investment does not violate any provision of Florida law or of the Resolution. 4 1 1 G The above-described verification report need not be provided in the event the District purchases Escrow Securities with the proceeds of maturing Escrow Securities and such purchased Escrow Securities mature on or before the next interest payment date for the Refunded Bonds and have a face amount which is at least equal to the cash amount invested in such Escrow Securities. In the event the above-referenced verification concludes that there are surplus moneys in the Escrow Fund, such surplus moneys shall be released to the District upon its written direction. The Escrow Fund shall continue in effect until the date upon which the Escrow Agent makes the final payment to the paying agent for the Refunded Bonds in an amount sufficient to pay the Refunded Bonds as described in Schedule C hereto, whereupon the Escrow Agent shall sell or redeem any Escrow Securities remaining in the Escrow Fund, and shall remit to the District the proceeds thereof, together with all other money, if any,then remaining in the Escrow Fund. SECTION 10. REDEMPTION OF CERTAIN OF THE REFUNDED BONDS. The District hereby irrevocably instructs the Escrow Agent to give, or cause the Registrar and Paying Agent for the Refunded Bonds (U.S. Bank National Association) to give, on behalf of the District, at the appropriate times the notice or notices, if any, required by the Resolution in connection with the redemption of the Refunded Bonds. The Refunded Bonds shall be redeemed on July 1, 2016 at a redemption price equal to 100% of the principal amount thereof, plus accrued interest. The Escrow Agent shall file, or cause the Registrar for the Refunded Bonds to file, such redemption notice with the Electronic Municipal Market Access within 10 days of it being so given. SECTION 11. DEFEASANCE NOTICE TO HOLDERS OF REFUNDED BONDS. Concurrently with the deposit of the Escrow Securities and Cash Deposit set forth in Section 5 hereof, the Refunded Bonds shall be deemed to have been paid within the meaning and with the effect expressed in Section 9.01 of the Resolution. Within 60 days of the deposit of moneys into the Escrow Fund, the Escrow Agent, on behalf of the District, shall mail, or cause the Paying Agent for the Refunded Bonds (U.S. Bank National Association) to mail, to the Holders of the Refunded Bonds the appropriate notice in substantially the form provided in Schedule D attached hereto. The Escrow Agent shall file, or cause the Registrar for the Refunded Bonds to file, such defeasance notice with the Electronic Municipal Market Access within 10 days of the date hereof. SECTION 12. ESCROW FUND IRREVOCABLE. The Escrow Fund hereby created shall be irrevocable and the holders of the Refunded Bonds shall have an express lien on all Escrow Securities and the Cash Deposit deposited in the Escrow Fund pursuant to the terms hereof and the interest earnings thereon until paid out, used and applied in accordance with this Agreement and the Resolution. Neither the District nor 5 1 1 G the Escrow Agent shall cause nor permit any other lien or interest whatsoever to be imposed upon the Escrow Fund. SECTION 13. AMENDMENTS TO AGREEMENT. This Agreement is made for the benefit of the District and the holders from time to time of the Refunded Bonds and it shall not be repealed, revoked, altered or amended without the written consent of all such holders and the written consent of the Escrow Agent; provided, however,that the District and the Escrow Agent may, without the consent of, or notice to, such holders, enter into such agreements supplemental to this Agreement as shall not adversely affect the rights of such holders and as shall not be inconsistent with the terms and provisions of this Agreement, for any one or more of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Agreement; (b) to grant, or confer upon, the Escrow Agent for the benefit of the holders of the Refunded Bonds, any additional rights, remedies, powers or authority that may lawfully be granted to, or conferred upon, such holders or the Escrow Agent; and (c) to subject to this Agreement additional funds, securities or properties. The Escrow Agent shall be entitled to rely exclusively upon an unqualified opinion of Bond Counsel with respect to compliance with this Section 13, including the extent, if any, to which any change, modification or addition affects the rights of the holders of the Refunded Bonds, or that any instrument executed hereunder complies with the conditions and provisions of this Section 13. SECTION 14. FEES AND EXPENSES OF ESCROW AGENT; INDEMNIFICATION. In consideration of the services rendered by the Escrow Agent under this Agreement, the District agrees to and shall pay to the Escrow Agent the fees and expenses as shall be agreed to in writing by the parties hereto. The Escrow Agent shall have no lien whatsoever upon any of the Escrow Securities in the Escrow Fund for the payment of such proper fees and expenses. To the extent allowed by applicable law, the District further agrees to indemnify and save the Escrow Agent harmless, to the extent allowed by law, against any liabilities which it may incur in the exercise and performance of its powers and duties hereunder, and which are not due to the Escrow Agent's own negligence or misconduct. Indemnification provided under this Section 14 shall survive the termination of this Agreement. Whenever the Escrow Agent shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering or omitting any action under this Agreement, such matter may be deemed to be conclusively established by a certificate signed by an authorized officer of the District. The Escrow Agent may conclusively rely, as to the correctness of statements, conclusions and opinions therein, upon any certificate, 6 1 1G report, opinion or other document furnished to the Escrow Agent pursuant to any provision of this Agreement; the Escrow Agent shall be protected and shall not be liable for acting or proceeding, in good faith,upon such reliance; and the Escrow Agent shall be under no duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument. The Escrow Agent may consult with counsel, who may be counsel to the District or independent counsel, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith in accordance herewith. Prior to retaining such independent counsel, the Escrow Agent shall notify the District of its intention. The Escrow Agent and its successors, agents and servants shall not be held to any personal liability whatsoever, in tort, contract or otherwise, by reason of the execution and delivery of this Agreement, the establishment of the Escrow Fund, the acceptance and disposition of the various moneys and funds described herein, the purchase, retention or payment, transfer or other application of funds or securities by the Escrow Agent in accordance with the provisions of this Agreement or any non-negligent act, omission or error of the Escrow Agent made in good faith in the conduct of its duties. The Escrow Agent shall, however, be liable to the District and to holders of the Refunded Bonds to the extent of their respective damages for negligent or willful acts, omissions or errors of the Escrow Agent which violate or fail to comply with the terms of this Agreement. The duties and obligations of the Escrow Agent shall be determined by the express provisions of this Agreement. SECTION 15. REPORTING REQUIREMENTS OF ESCROW AGENT. As soon as practicable after the first day of January and July of each year, commencing January 1, 2016, so long as the Escrow Fund is maintained under this Agreement, the Escrow Agent shall forward in writing to the District a statement in detail of the Escrow Securities held as of January 1 and July 1 of that year, whichever is applicable, and the income and maturities thereof, and withdrawals of money from the Escrow Fund, since the last statement furnished pursuant to this Section 15. SECTION 16. RESIGNATION OR REMOVAL OF ESCROW AGENT. The Escrow Agent, at the time acting hereunder, may at any time resign and be discharged from the duties and obligations hereby created by giving not less than 60 days' written notice to the District and mailing notice thereof, specifying the date when such resignation will take effect to the holders of all Refunded Bonds then outstanding, but no such resignation shall take effect unless a successor Escrow Agent shall have been appointed by the holders of a majority in aggregate principal amount of the Refunded Bonds then outstanding or by the District as hereinafter provided and such successor Escrow Agent shall have accepted such appointment, in which event such resignation shall take effect immediately upon the appointment and acceptance of a successor Escrow Agent. 7 11G The Escrow Agent may be replaced at any time by an instrument or concurrent instruments in writing, delivered to the Escrow Agent and signed by either the District or the holders of a majority in aggregate principal amount of the Refunded Bonds then outstanding. Such instrument shall provide for the appointment of a successor Escrow Agent, which appointment shall occur simultaneously with the removal of the Escrow Agent. In the event the Escrow Agent hereunder shall resign or be removed, or be dissolved, or shall be in the course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case the Escrow Agent shall be taken under the control of any public officer or officers, or of a receiver appointed by a court, a successor may be appointed by the holders of a majority in aggregate principal amount of the Refunded Bonds then outstanding by an instrument or concurrent instruments in writing, signed by such holders, or by their attorneys in fact, duly authorized in writing; provided, nevertheless, that in any such event, the District shall appoint a temporary Escrow Agent to fill such vacancy until a successor Escrow Agent shall be appointed by the holders of a majority in aggregate principal amount of the Refunded Bonds then outstanding in the mariner above provided, and any such temporary Escrow Agent so appointed by the District shall immediately and without further act be superseded by the Escrow Agent so appointed by such holders. The District shall mail notice of any such appointment made by it at the times and in the manner described in the first paragraph of this Section 16. In the event that no appointment of a successor Escrow Agent or a temporary successor Escrow Agent shall have been made by such holders or the District pursuant to the foregoing provisions of this Section 16 within 60 days after written notice of resignation of the Escrow Agent has been given to the District, the holder of any of the Refunded Bonds or any retiring Escrow Agent may apply to any court of competent jurisdiction for the appointment of a successor Escrow Agent, and such court may thereupon, after such notice, if any, as it shall deem proper, appoint a successor Escrow Agent. In the event of replacement or resignation of the Escrow Agent, the Escrow Agent shall have no further liability hereunder and the District shall indemnify and hold harmless the Escrow Agent, to the extent allowed by law, from any such liability, including reasonable costs or expenses incurred by the Escrow Agent or its counsel. No successor Escrow Agent shall be appointed unless such successor Escrow Agent shall be a corporation with trust powers organized under the banking laws of the United States or any State, and shall have at the time of appointment capital and surplus of not less than$30,000,000. Every successor Escrow Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the District an instrument in writing accepting such appointment hereunder and thereupon such successor Escrow Agent, without any further 8 1 1G act, deed or conveyance, shall become fully vested with all the rights, immunities, powers, trusts, duties and obligations of its predecessor; but such predecessor shall nevertheless, on the written request of such successor Escrow Agent or the District execute and deliver an instrument transferring to such successor Escrow Agent all the estates, properties, rights, powers and trust of such predecessor hereunder; and every predecessor Escrow Agent shall deliver all securities and moneys held by it to its successor; provided, however, that before any such delivery is required to be made, all fees, advances and expenses of the retiring or removed Escrow Agent shall be paid in full. Should any transfer, assignment or instrument in writing from the District be required by any successor Escrow Agent for more fully and certainly vesting in such successor Escrow Agent the estates, rights, powers and duties hereby vested or intended to be vested in the predecessor Escrow Agent, any such transfer, assignment and instruments in writing shall, on request, be executed, acknowledged and delivered by the District. Any corporation into which the Escrow Agent, or any successor to it in the trusts created by this Agreement, may be merged or converted or with which it or any successor to it may be consolidated, or any corporation resulting from any merger, conversion, consolidation or tax-free reorganization to which the Escrow Agent or any successor to it shall be a party shall be the successor Escrow Agent under this Agreement without the execution or filing of any paper or any other act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. SECTION 17. TERMINATION OF AGREEMENT. This Agreement shall terminate when all transfers and payments required to be made by the Escrow Agent under the provisions hereof shall have been made. Upon such termination, all moneys remaining in the Escrow Fund shall be released to the District. SECTION 18. GOVERNING LAW. This Agreement shall be governed by the applicable laws of the State of Florida. Any action or proceeding, in law or equity, arising out of or in any way related to this Agreement or the obligations hereunder shall be in Collier County, Florida. SECTION 19. SEVERABILITY. If any one or more of the covenants or agreements provided in this Agreement on the part of the District or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. SECTION 20. COUNTERPARTS. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. 9 1 1 G SECTION 21. NOTICES. Any notice, authorization, request or demand required or permitted to be given in accordance with the terms of this Agreement shall be in writing and sent by registered or certified mail addressed to: Collier County, Florida Collier County Government Complex 3299 Tamiami Trail East, #202 Naples,Florida 34112 Attention: County Manager Facsimile: (239) 252-8588 The Bank of New York Mellon Trust Company,N.A. 10161 Centurion Parkway Jacksonville, Florida 32256 Attention: Corporate Trust Department Facsimile: (904)645-1997 IN WITNESS WHEREOF, the parties hereto have each caused this Escrow Deposit Agreement to be executed by their duly authorized officers and appointed officials and their seals to be hereunder affixed and attested as of the date first written = herein. ATTEST: COLLIER COUNTY WATER-SEWER DWIGHT E. BROCK, CLERK DISTRICT By: By: Derek Johnssen,Deputy Clerk Chairman, Board of County Commissioners 1 of Collier County, Florida, as the Ex-Officio Chairman of the Governing Board of the Collier County Water-Sewer District Approved as to form and legal sufficiency: Jeffrey A. Klatzkow County Attorney 10 a 1G THE BANK OF NEW YORK MELLON TRUST COMPANY,N.A., as Escrow Agent By: ='1 rl .i 11 11 (3 SCHEDULE A DESCRIPTION OF THE REFUNDED BONDS Maturity Principal Interest (July 1) Amount Rate 2017 $2,310,000 4.250% 2018 2,410,000 4.250 2019 2,510,000 4.250 2020 2,620,000 4.000 2021 2,730,000 4.000 2022 4,630,000 4.125 11G SCHEDULE B ESCROW SECURITIES District Moneys Type Maturity Date Par Amount Rate Total Cost Bond Proceeds Type Maturity Date Par Amount Rate Total Cost t. i ::i 1 1G SCHEDULE C DISBURSEMENT REQUIREMENTS FOR REFUNDED BONDS Principal Date Interest Redeemed Total January 1,2016 July 1,2016 hG SCHEDULE D FORM OF NOTICE OF DEFEASANCE Notice is hereby given pursuant to Resolution No. CWS-85-5 adopted on July 30, 1985, as amended and restated by Resolution No. CWS-85-13 adopted on December 26, 1985, as amended and supplemented, that the Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2006, set forth below (the "Refunded Bonds") are deemed to be paid within the meaning of Section 9.01 of the Resolution and shall no longer be payable from the Pledged Funds as provided under the Resolution and shall be secured solely from the irrevocable deposit of U.S. Treasury obligations and cash made by the District with The Bank of New York Mellon Trust Company, N.A., as Escrow Agent, in accordance with Section 9.01 of the Resolution. Further, the Refunded Bonds shall be redeemed, prior to their respective maturities, on July 1, 2016 (the "Redemption Date") at a redemption price equal to 100% of the principal amount of each Refunded Bond to be redeemed, together with interest accrued thereon to the Redemption Date. The Refunded Bonds to be defeased and redeemed are as follows: Maturity Principal Interest CUSIP No.* (July 1) Amount Rate 222642HR4 2017 $2,310,000 4.250% 222642HS2 2018 2,410,000 4.250 222642HT0 2019 2,510,000 4.250 222642HU7 2020 2,620,000 4.000 222642HV5 2021 2,730,000 4.000 222642HW3 2022 4,630,000 4.125 * The District is not responsible for the CUSIP Numbers and no representation is made as to their accuracy. 1 G EXHIBIT C COPY OF RATE LOCK AGREEMENT :3. 1 1G Rate Lock Agreement 1. Collier Water-Sewer District (the "District"), a dependent special district of the State of Florida, has requested Bank of America,N.A., a national bank(the "Lender") to make a loan (the "Loan") to the District in the principal amount of not less than$17,634,000.00 and not more than $17,734,000.00 (the "Amount"). The Loan will be made on September 30, 2015 (the "Closing Date"), will bear interest calculated on the basis of a 360 day year consisting of twelve thirty day months, payable in arrears on January 1, 2016 and each January 1 and July 1 thereafter, will be repaid in installments of principal due on July 1 of the years and in the amounts set forth on Exhibit A attached hereto (subject to adjustment as herein provided), and will mature on July 1,2022(the"Maturity Date").The amortization schedule attached as Exhibit A provides for the amortization of$17,734,000.00, and in the event the Amount of the Loan is less than $17,734,000.00 (but not less than $17,634,000.00), the District may reduce the scheduled amortization shown on Exhibit A in any year or years in an aggregate amount not in excess of the difference between $17,734,000.00 and the Amount of the Loan.The Loan will be issued as an "Additional Bond" pursuant to the District's Resolution CWS-85-5 (the "Bond Resolution")of the District,adopted July 30, 1985,as the same has been supplemented,amended and restated through the date hereof, and shall have such other terms and conditions as set forth in the Summary of Terms and Conditions of the Lender, dated August 31, 2015 (the "Terms Sheet")attached hereto as Exhibit B as the same may be modified hereby. 2. The District desires to obtain the agreement of the Lender that the Loan will bear an interest rate locked in by the Lender at this time. In response to the District's request,the Lender has agreed to lock in a fixed rate(the"Rate")for the Loan of 1.75%per annum. 3. The District understands that, if the Loan is not funded in the Amount and by 5:00 p.m.Eastern Time on the Closing Date(such funding and delivery being referred to herein as the "Closing"), the Lender may suffer breakage costs and other losses, expenses and liabilities, including lost revenue and lost profits, as a result of having locked in the interest rate in advance. Accordingly, in consideration of the Lender's agreement to lock in the Rate,the District agrees to pay to the Lender a breakage fee (the "Breakage Fee") as provided herein in the event the Closing does not occur on the Closing Date for any reason other than the Lender's refusal to fund the Loan pursuant to and in breach of the terms and conditions set forth in the Terms Sheet. Once the Closing occurs on the Closing Date,this Agreement will terminate. 4. The Breakage Fee will be determined on the assumption that the Loan fully funded on the Closing Date and was then immediately prepaid by the District in full,and as follows: (i) The Lender will first determine the amount of interest which would have accrued as of each scheduled payment date for each Prepaid Installment (hereinafter defined) had it remained outstanding from the Closing Date until the Original Payment Date(hereinafter defined)using an interest rate equal to the Rate. (ii) The Lender will then subtract from each interest amount determined in (i), above, the amount of interest which would have accrued on each respective Prepaid Installment as of each scheduled payment date if it were reinvested from Closing Date through the Original Payment Date,using the Swap Rate as of the Closing Date. (iii) If(i)minus(ii)for a Prepaid Installment is greater than zero,the Lender will discount the periodic differences to the Closing Date using the Swap Rate as the discount rate.The sum of the discounted periodic differences for each Prepaid Installment will be the Breakage Fee. 11G The following definitions will apply to the calculation of the Breakage Fee: (i) "Original Payment Date"means the dates on which principal is required to be paid as set forth on Exhibit A. (ii) "Prepaid Installment" means any amount of principal that is paid prior to its Original Payment Date. • (iii) "Swap Rate" means the fixed rate for an interest rate swap with a floating rate of three month Libor and having a term of 57 months as reported on a commercially reasonable source selected by the Lender at or most recently prior to 5:00 p.m.Eastern Time on the applicable date. If no term exactly corresponding to 57 months is reported,the Swap Rate will be determined by linear interpolation between the reported terms that are the closest shorter and longer terms reported. 5. The District agrees that the Breakage Fee represents a reasonable estimate of the breakage costs and other losses, expenses and liabilities, including lost revenue and lost profits, that the Lender may suffer if the Closing does not occur in the Amount on the Closing Date.The District agrees that the Lender's willingness to lock in the Rate in advance of the Closing Date is sufficient consideration for the District's agreement to pay the Breakage Fee. Any Breakage Fee will be due and payable in full on the day immediately following the Closing Date_ 6. This Agreement is dated September 2, 2015 and shall be governed by Florida law. Any amount due under this Agreement which is not paid upon demand by the Lender shall bear interest until paid at the Rate plus five percentage points. The parties hereby waive trial by jury in any dispute between the parties concerning this Agreement. The prevailing party in any litigation(including any appeal) will be entitled to its reasonable attorneys' fees, including the allocated cost of in-house counsel. 7.To secure the obligations of the District to the Lender hereunder,the District grants to the Lender a lien upon and security interest in the Gross Revenues, as defined in the Bond Resolution, provided that such lien and pledge is subordinate in all respects to the lien on and pledge of Pledged Funds given to secure Bonds and Subordinated Indebtedness as such terms are defined in and as provided in the Bond Resolution.The obligations of the District to the Lender hereunder are subject to the ratification of this agreement by the Board of County Commissioners of Collier County,ex-officio as the governing body of the District,by resolution duly adopted on or before September 22,2015,and if not so ratified then this agreement shall be null and void after September 22,2015. 8.The addresses of the Lender and District are set forth below. Bank of America,N.A. Collier Water-Sewer District B & _ ,lam ' _ oe Name:Ho Kuhlman Name: Ochs Title:Senior Vice President Title:County Administralo Address: 150 N.College St Address:Collier County Government Complex NCI-028-17-06 3299 Tamiami Trail East Charlotte,NC 28255 Naples,Florida 34112 2