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BCC Minutes 11/20/1986 S · Naples, Florida, November 20, 1986 LET IT BE REMEMBERED, that in accordance with action taken on November 18, 1986, the Board of County Commissioners in and for th~ County of Collier met on this date at 2:00 P.M. in SPZCIAL SESSION in Building "F" of the Courthouse Complex, East Naples, Florida, with the following membere present: CHAIRMAN: Max A. Hasse, Jr. VICE-CHAIRMAN: Arnold Glass Burt L. Saunde~s ABSENT: John A. Pistor Anne G. Goodnight ALSO PRESENT: Jame5 C. Giles, Clerk; Maureen Kenyon, Deputy Clerk; John Yonk~sky, Finance Director; Donald B. Lusk, County Manager; Neil Dorrill, Assistant County Manager; Tom Olliff, Admini3trative Assistant to the County Manager; Ken Cuyler, County Attornùy; and George Archibald, Public Works Administrator. Page 1 aDO~ 099 p~r.r 192 November 20, 1986 RESOLUTION 86-225 AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $6,000,000 IMPROVEMENT REVENUE BONDS PROVIDING FOR CONSTRUCTION, RECONSTRUCTION AND ACQUISITION OF ROADS AND RELATED FACILITIES AND THE RESURFACING OF ROADS IN COLLIER COUNTY, FLORIDA - ADOPTED M~ Susan Fischer of Fischcr Johnson stated that on November 18, 1986, she presented the possibility of this refunding which was approved for marketing. She stated that PaineWebber marketed the bonds on November l8, 1986, very aggressively and came out with more savings than what was reported on November la, 19a6. She noted that the total savings was ~723,605 and the prcsent vólue savings was $371,689. She stated that the outstanding bonds went from 9-1/8% to 7\ which produced new money for ruad improvements of $305,000. She stated that the expenses of the bond issue are basically the same as what was stated on November la, 1986. She indicated that in com- pðrison with other bond issues in T'lorida ðt the same time, Collier County did very well against the other issues, adding that it was an excellent refunding for the County with a good savings and a good T ~ interest rate. She indicated that the present value savings reported on November 18, 19a6, was $333,322 and when it was marketed the actual present value savings was $371,689. Mr. Tom Giblin, Bond Counsel with Nabors, Giblin, Stephanson, Nickerson in Tallahassee, stated that the bond resolution has four exhibits, ðdding that Exhibit "A" is the Disclosure Letter which is r.equired by Florida law and states what the expenses of the underwri- ters ðre; Exhibit "B" is the Bond Purchase'Agreement which is to be executed by the County and the Underwriters in the event that the aOOK 099 r~.·.: 194 Page 2 '.~_ ;.1 [;~~- ,;,{, " ~. ff;' f;~; 099 ~':f 195 .;-' . ,'. ~f' . November 20, 1986 County accepts the offer of the Underwriters to purchase the Bonds this date; Exhibit "C" is the Escrow Deposit Agreement pursuant to which several securities will be purchased and l~cked away into escrow to payoff the old bonds; and Exhibit "D" is the Official Statement pursuant to which the County and the Underwrit~rs will offer these bonds to the public. He stated that the Resolution includ~s various terms of the bonds, terms pursuant to which the bonds can be registered or transferred, as well as the form of the bonds them- selves, and various terms such as redemption provisions, the interest rates and the maturity analysis. (. " Clerk Giles questioned if th9re is a debt service schedule of what is being paid this year, to which Mr.,Giblin stated that this would not normally be attached to the bond resolution. MS~, Fischer indicated that she would get a copy of that schedule and have it at closing. Clerk Giles stated that there is new money of approximately $305,000, but it shows a total savings of $372,000 and questioned the difference, to which MS. Fischer stated that the present value savings does not correspond exactly, adding that there will be some cost of issuance involved. Mr. Bruce Pulver of PaineWebber stated with regards to the old debt service sChedule this will be included as one of the documents at closing as well as the nel' debt service schedule to help the County out with budgeting. He stated that it should also show the new money t ". Page 3 I,';' ¥',"'^ ~' ~)i' ~" , .. .. .. . t. I . . . , . ~ ' . J ~ ~ .. I, .' ,.' . , '"" '. \ ~. , ,. . " Noven,oer 20, 1986 ðS well. In answer to Clerk Giles, Mr. Pulver stated that the present value savings will be slightly different than the new money. Mr. Pulver stated that the difference in the savings that is being questioned is due to the amounts used from the old debt scrvice reserve, adding that there is ð different amount in the existing debt service reserve than the' amount that will be needed as a debt service reserve for the refunding iesue. He stated that the difference of $31,149 is shown as an offset and the remaining difference betwcen the present value savings and the total bond issue would be the cost of issuance on the incremental part of the new money issue. Commissioner Glass stated that this is not reflected in the paper- work ðnd this gives a false picture of what is really available. Mr, Pulver stated that a pricing book will be done for the County in the next week or so which will give a complete picture of the refunding, 1dding that it will show a savings schedule, and the new money "s well. He stated that a breakout can be done to account for th~ difference of the np.w money amount and the total present value savings. County Attorney Cuyler stated that a question has arisen that he is discussing with Bond Counsel and he would like to take a five minute break to hopefully resolve the matter. ***** aece..: 2:10 P.M. - Reconvened: 2:20 P.M. ..... Mr. Giblin stated that the County Attorney asked for this delay Page 4 I ~OOK 099 r~',1 IDn j aOOK 0991'.I':f 197 Nov£~ber 20, 1986 because there was Dome concern raised by Commissioncr Saunders as to whether there was any involvement on behalf of A. G. Edwards in the bond issue, adding that it is not uncommon for mânaging underwriters such as paineWebber and Smith Barney to ask other underwriters to join in selling bonds. He stated that in this situation, the other underwriters would receive re~uneration for participating in the issue and it could raise a possible conflict of interest with Commissioner Saunders voting in terms of whether or not to proceed with the bond issue. He stated that Bruce Pulver of paineWebber was asked to check if there was any involvement with A. G. Edwards on this bond issue. Mr, Pulver stated that A. G. Edwards had absolutely no involvement with this bond issue, adding that it was totally sold by paineWebber and Smith Barney as managing underwriters. He stated that there were no other underwriters involved in the sale of this issue. Commissioner Hasse questioned what would happen if Commissioner Saunde,s had a conflict of interest, to which County Attorney Cuyler stated that he would recommend that the bond issue not proceed because he would feel uncomfortable with less than three voting meni)ers, even though there is ð quorum present. Commissioner Saunders stated that based on the previouo comments, he would assume that there is no conflict of interest and questioned if he may proceed to vote on the issue, to which County Attorney Cuyler replied t2firmatively, adding that he does not see any conflict of interest under the circumstances that have becn discussed. Page 5 , , - .' ~ . ~...; November 20, 1986 Mr. Giblin stated that if the Commission detcrmines to proceed with the bond issue, the next action would be to adopt the resolution ðnd that would authorize acceptance of the terms of the bonds and authorize the Chairman to execute the Bond Purchase Agreement and exe- cute the Official Statement. commissioner Glass moved, .econded by commissioner Saunders and 3/0, that Resolution 86-225 authorizing the issuance of not exceeding $6,000,000 Improvement Revenue Bonda providing for the construction, reconstruction and acquisition of roads and related facilities and the resurfaoing of roads in collier County, Florida, be adopted, See Pages d 00 - 3.;{i - ,.- :.:. "'-... ~.~ ~J;;~ . ~~ . '.~ .,- .~'"..::. . , .~~i'· ......" ' '" Page 6 MOK 09D~·-..ln8 t aOOK OH9 Pl<:! 19.9 November 20, 19a6 ... .."...,.,.....1.....", .... .,\C::J.BOA/" .... .... (',' ......'f\:,(j) " ..,'" ~':"··~·""iIf')o",,"IO,· ;.... ",ì ~. ~';;~ ....,~.,:..~..' .r..TT;~f :.\~:,' v ;¡':".~. J~~ ~~,:·~ILES/~~~I< .- ..., .' 1.· ,,~:·\':.l~. .... :þ~:; \tl'>;~·~'\f.~~~'·'''' ~íÞ .~.J.!;.dÜI.»""·, - J}c. - ~..~~<. "~'I ':":1""., Thesé' minute~ approved by the Board on ðS presented ~ or as corrected BOARD OF COUNTY COMMISSIONERS/ BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL ~l¡&£? t I t There bcing no further business for the Good'of the County, the meeting was adjourned by Order of the Chair - Time: 2:21 P.M. t.. ¿¡'~~-..J ~ / P /' ~ I ¡ \ I I ¡ ~, ,} ! ¡ ¡ j ¡ Page 7 .. .. - '.