Title
MOTION TO ADOPT PROPOSED RESOLUTION 2017-R-14.
PROPOSED RESOLUTION NO. 2017-R-14 IS A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF PEMBROKE PINES, FLORIDA AMENDING AND SUPPLEMENTING RESOLUTION NO. 2174, AS AMENDED AND SUPPLEMENTED; AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING OBLIGATIONS; PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $55,000,000 CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2017; PROVIDING FOR THE PAYMENT OF THE BONDS FROM THE ELECTRIC FRANCHISE FEE; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AUTHORIZING THE NEGOTIATED SALE OF NOT TO EXCEED $55,000,000 CITY OF PEMBROKE PINES, FLORIDA CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 2017; AWARDING THE SALE THERE-OF SUB-JECT TO THE TERMS AND CONDITIONS OF A BOND PURCHASE AGREEMENT; DELEGATING TO THE MAYOR, THE VICE MAYOR OR THEIR DESIGNEE THE AUTHORITY TO EXECUTE THE BOND PURCHASE AGREEMENT; AUTHORIZING THE EXECUTION AND DIS-TRIBU-TION OF A PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT IN CONNEC-TION WITH THE DELIVERY OF THE BONDS; APPOINT-ING A REGISTRAR AND PAYING AGENT AND ESCROW HOLDER; AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT; AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT AND REGISTRAR AGREEMENT; DELEGATING TO THE CITY MANAGER OR HIS DESIGNEE THE AUTHORITY TO INSURE ALL, A PORTION OF OR NONE OF THE BONDS WITH A BOND INSURANCE POLICY, WHICHEVER IS IN THE BEST FINANCIAL INTEREST OF THE ISSUER; DELEGATING TO THE CITY MANAGER OR HIS DESIGNEE THE AUTHORITY TO PURCHASE A RESERVE PRODUCT IF IN THE BEST FINANCIAL INTEREST OF THE ISSUER; AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE; PROVIDING FOR BOOK-ENTRY-ONLY REGISTRATION; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. Proposed Resolution 2017-R-14 authorizes and awards the sale of the Capital Improvement Revenue Bonds, Series 2017, which refunds the Capital Improvement Revenue Bonds, Series 2006 & 2007 in an amount not to exceed $55,000,000.
2. The reason for refunding these bonds are solely to achieve savings. The new bonds will not extend the maturity date of the old bonds, nor is there any additional money being borrowed by the City.
3. At a minimum, the City will achieve a net present value savings in refunding its Series 2006 & 2007 Bonds of not less than 3.0% of the par amount of refunded bonds which represents a minimum savings of $1,576,650. The final amount of the savings will not be determined until final pricing of the bonds.
4. Proposed Resolution 2017-R-14 authorizes the purchase of bond insurance and/or a debt service reserve fund surety policy if it is deemed in the best interest of the City.
5. The following parties are involved in this transaction:
a. Financial Advisor - Ford & Associates, Inc.
b. Bond Counsel - Bryant Miller Olive, P.A.
c. Lead Underwriter - PNC Capital Markets
d. Disclosure Counsel - Holland & Knight
e. General Counsel - Goren,Cherof, Doody & Ezrol, PA
6. Proposed Resolution 2017-R-13 authorizes the Mayor, Vice Mayor or their designee the authority to execute the Bond Purchase Agreement and Continuing Disclosure Certificate, approve the form and distribution of Preliminary Official Statement and final official statement and appointing U.S. Bank Trust National Association as Registrar and Paying and Escrow Agent.
7. Recommend adoption of Proposed Resolution 2017-R-14.
Item has been reviewed by the Commission Auditor and approved for the Agenda.
Financial Impact
FINANCIAL IMPACT DETAIL:
The exact amount of net present value savings will not be known until final pricing. However, the City will achieve a net present value savings in refunding its Series 2006 and 2007 Bonds of not less than 3.0 % of the par amount of the refunded bonds which represents a minimum savings of $1,576,650.