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Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - March 24, 2015
March 24, 2015 - Regular Meeting
Agenda Item #38


Subject
Public Utilities Revenue Refunding & Improvement Bonds, Series 2015

Briefings
None

Contact and/or Presenter Information

Jan Brewer, Director, Financial Management Department, Ext. 3726



Action Requested
Adoption of Resolution R-15-001 authorizing the issuance of Public Utilities Revenue Refunding and Improvement Bonds, Series 2015, in an amount not to exceed $95 million dollars.

Enabling/Regulating Authority
Article VII, Florida Constitution, and Chapter 125, Florida Statutes.

Background Discussion

On October 21, 2014, the Commission authorized staff to negotiate with the financing team of Ed Bulleit of MBS Capital, LLC (the Financial Advisor for the County and Port Manatee), Wells Fargo/Harbor Financial (Managing Underwriters), and Citigroup (Underwriter) to provide for financing Utility system capital projects and possible refinancing of certain portions of Manatee County bonded debt.

To finalize the authorization for the financing for the bonds, Bond Counsel for Manatee County, Stephen D. Sanford of Greenberg Taurig, P.A., has prepared for review the Bond Resolution (R-15-001) and certain other documents that you are approving, along with approval of the underwriting documents prepared by counsel to the underwriters.  The Resolution also authorizes subsequent execution of closing bond documents and provides for certain other details related to issuance of bonds.  In addition, parameters are established in the Resolution that would rescind authorization to issue bonds if market changes affect the financial feasibility of the transaction.

Copies of press releases dated March 11, 2015, from Fitch Ratings and Moody’s Investors Service, reporting bond ratings of AA+ and Aa2, respectively, are attached to this agenda.

The refunding of a portion of the Series 2006 Utility Bonds is expected to generate over 6% present value savings as a percentage of outstanding par; however, if the savings are less than 3% the County will not refund the Series 2006 bonds.

Your Financial Advisor, Clerk of Courts and Comptroller, County Administrator, and Financial Management Director have all recommended that the bonds be issued as soon as practicable to take advantage of currently favorable interest rates available in the market.  A letter of recommendation from the Financial Advisor to sell bonds on a negotiated basis is attached.  Although classified as a “negotiated sale,” final rates will be established based on a competitive process that also allows for flexibility that may facilitate the purchase of bonds for buyers based on their specific needs.

As always, “not to exceed” figures shown on the Bond Resolution are higher than the actual amount of bonds to be issued to allow for flexibility in structuring the bonds

As is often the case with complex items such as the issuance of bonds, comments regarding these documents are often received from counsel and others after the publication of the agenda, and updated versions of the documents may be provided to the Commission prior to the March 24th meeting.

The following documents are included in this agenda item as attachments:

  1. Resolution R-15-001, inclusive of Exhibit A, Reimbursement Projects
  2. Exhibit B to R-15-001, Draft Purchase Contract
  3. Exhibit C to R-15-001, FA's Letter of Recommendation
  4. Exhibit D to R-15-001, Draft Preliminary Official Statement (POS)
  5. Appendix A to POS, General Information
  6. Appendix C to POS, Consulting Engineer's Report
  7. Appendix D to POS, Bond Feasibility Report
  8. Exhibit E to R-15-001, Draft Escrow Agreement
  9. Moody's Rating Letter
  10. Fitch Rating Letter
  11. Copy of R-14-020, Reimbursement Resolution
  12. Copy of R-15-023, Reimbursement Resolution
  13. List of Reimbursement Projects

Other documents referenced in Resolution R-15-001 or the POS will be provided at or before closing on the sale of the bonds.



County Attorney Review
Other (Requires explanation in field below)

Explanation of Other
Documents prepared by Bond Counsel and reviewed by William Clague, Assistant County Attorney

Reviewing Attorney
Clague

Instructions to Board Records

One certified copy of R-15-001 to County Attorney for delivery to Stephen D. Sanford.

Copies of approved agenda memorandum to William Clague, County Attorney's office, and Greg Wright, Financial Management



Cost and Funds Source Account Number and Name
N/A

Amount and Frequency of Recurring Costs
N/A


Attachment:  R-15-001 Utilities Revenue & Refunding Bonds, Series 2015 - from Steve S. 19MAR2015.pdf
Attachment:  Exhibit B - BPA-from NGN.pdf
Attachment:  Exhibit C - Financial Advisor letter - MBS Capital 24MAR2015.pdf
Attachment:  Exhibit D - POS-from NGN.pdf
Attachment:  Appendix A - General Information from NGN 16MAR2015.pdf
Attachment:  Appendix C Draft Engineering Report - Utilities 2015 bonds, from Patti G 03FEB2015.pdf
Attachment:  Appendix D - Feasibility Report Final PRMG.pdf
Attachment:  Exhibit E - Escrow Deposit Agreement 2015 Utilities Bonds.pdf
Attachment:  Moody's Final Rating - press release 13MAR2015.pdf
Attachment:  Fitch Final Rating & Press Release Utility bonds 13MAR2015.pdf
Attachment:  Copy of R-14-020 Reimbursement Resolution Caital Projects.pdf
Attachment:  Copy of R-15-023 Reimbursement Resolution Utilities Capital Projects.pdf
Attachment:  Reimbursement Projects - Utilities bonds 24MAR2015.pdf