Okaloosa County BOCC — April 21, 2015 — Approval of Resolutions to Authorize Chairman to Execute and Award the — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 21, 2015 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Approval of Resolutions to Authorize Chairman to Execute and Award the Sale of Water & Sewer Bonds. DEPARTMENT: Water and Sewer BCC DISTRICT: District: All STATEMENT OF ISSUE: Following a presentation by Mark Galvin, First Southwest Company and Mark Mustian, Nabors, Giblin and Nickerson, P.A., staff requests BCC approval to authorize the Chairman to execute two resolutions as described below, the second of which will also authorize the Chairman and the County Administrator to determine and establish the final structure of the refunding: 1. Bond Resolution 3 authorizing the issuance of not to exceed $75 million in Water and Sewer Refunding Revenue Bonds, Series 2015. A copy of the latest version is attached. 2. Supplemental Resolution. Due to the size of the .pdf file, this document, which includes five exhibits, is presented as Part A, Part B and Part C. The Supplemental Resolution delegates to the Chairman of the Board of County Commissioners and the County Administrator the authorization to determine final structure within certain established parameters as provided in the Supplemental Resolution. A copy of the latest version, along with Exhibits A, B, C, D, and E is attached. BACKGROUND: On February 17, 2015, the County Commission authorized the County staff, its financial advisor and financing team to move forward with the preparations of the necessary documentation and reports to refund the County's outstanding Water and Sewer Revenue Bonds, Series 2004, 2006 and 2012 with the goal of obtaining debt service savings, releasing the existing debt service reserves ($7.4 million) on the outstanding bond issues and to fund $3 million in construction proceeds for the acceleration of the County's meter replacement program. Since that time the financing team has prepared the necessary consulting engineer's report, feasibility study and bond documents including bond resolutions, escrow deposit agreements and the preliminary official statement. The County has also received bond ratings of “AA- "and "Aa3" from Fitch Rating and Moody's Investor Service respectively and bond insurance commitments from Assured Guaranty. Approval of the resolutions will allow for the mailing of the preliminary official statement and delegate to the Chairman of the Board of County Commissioners and the County Administrator the authorization to determine final structure within certain established parameters as provided in the Supplemental Resolution. The final structure may include minor revisions to the language in the documents associated with the bond refunding. Mark Galvin of First Southwest Financial and Mark Mustian of Nabors, Giblin, Nickerson will be available at the BCC meeting on April 21, 2015 to address any questions the BCC may wish to bring up. OPTIONS: Approve or deny. RECOMMENDATION: Staff recommends BCC approval to authorize the Chairman to execute two resolutions as presented. The first Resolution (file attachment "Bond Resolution 3") authorizes the issuance of not to exceed $75 million in Water and Sewer Refunding Revenue Bonds, Series 2015, and also authorizes the Chairman to execute all appropriate documents on behalf of the County to complete the bond issuance. The supplemental Resolution (File attachments Supplemental Resolution Parts A, B and C) delegates and authorizes the BCC Chairman and County Administrator to determine final structure of the refunding within certain established parameters as described above. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator