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County Administrator's Report 12. 14.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Escambia County, Florida Sales Tax Revenue Bonds, Series 2017, to Finance New Correctional Facility - JoLinda Herring, Shareholder, Bryant Miller Olive P.A.
That the Board adopt a Resolution (the “2017 Supplemental Resolution”) authorizing the issuance and sale of not exceeding $89,000,000 Escambia County, Florida Sales Tax Revenue Bonds, Series 2017, to finance the new correctional facility.
The Financial Advisor reports that the estimated Maximum Bond Service Requirement given current market conditions is expected to be approximately $7,232,250 and will mature no later than October 1, 2047. The Maximum Bond Service Requirement of the combined Bond Service Requirement of the Series 2017 Bonds together with the Outstanding Parity Obligations is expected to be approximately $9,574,250. |
| BACKGROUND: |
| The 2017 Supplemental Resolution approves the issuance of not exceeding $89,000,000 Escambia County, Florida Sales Tax Revenue Bonds, Series 2017 (the “Series 2017 Bonds”), to finance the new correctional facility (herein described) and to finance certain costs of issuance. The 2017 Supplemental Resolution supplements Resolution No. R2002-145 duly adopted by the Board on September 11, 2002 (as amended and supplemented, the “Bond Resolution”), and approves by reference a form of (i) Bond Purchase Agreement (the “Bond Purchase Agreement”) between the County and RBC Capital Markets, LLC, Raymond James & Co., and Wells Fargo & Company (collectively, the “Underwriters”), (ii) Preliminary Official Statement used in the marketing of the Series 2017 Bonds and (iii) Continuing Disclosure Certificate whereby the County agrees to providing certain continuing disclosure of information relating to the County and the Series 2017 Bonds.
The 2017 Supplemental Resolution delegates to the Chairman the ability to award the Series 2017 Bonds to the Underwriters in accordance with the terms of the Bond Purchase Agreement, subject to full satisfaction of the conditions set forth therein, including receipt by the Chairman from the Underwriters of a written offer to purchase the Series 2017 Bonds, said offer to provide for, among other things, (i) the issuance of not exceeding $89,000,000 principal amount of Series 2017 Bonds, (ii) an underwriting discount (including management fee and all expenses) not in excess of $4.00/$1,000 of the par amount of the Series 2017 Bonds, (iii) a true interest cost of not more than 4.75%, and (iv) a final maturity no later than October 1, 2047.
Pursuant to the Bond Resolution, the Series 2017 Bonds are secured by certain Pledged Revenues on a parity with the County’s Sales Tax Refunding Revenue Note, Series 2011 and 2012 Sales Tax Refunding Revenue Note (collectively, the “Outstanding Parity Obligations”). The Pledged Revenues consist primarily of proceeds of the local government half-cent sales tax allocated for and distributed monthly to the County pursuant to Chapter 218, Part VI, Florida Statutes. The Series 2017 Bonds will not constitute an indebtedness, liability, general or moral obligation, or a pledge of the faith, credit or taxing power of the County.
The net proceeds of the Series 2017 Bonds will be used to finance the Series 2017 Project which consists of the planning, design and construction of a new 1,500 rated bed correctional facility, including but not limited to, security services, program services, inmate services, medical services, food services, facility maintenance, mechanical, electrical and security services and warehouse. The new correctional facility will be constructed in two phases utilizing the design-build construction delivery method pursuant to Section 287.055, Florida Statutes (Acquisition of Professional Architectural and Engineering Services). Upon completion, the new correctional facility will replace the existing correctional facilities known as the Central Booking Detention Facility and the Main Jail.
The 2017 Supplemental Resolution makes certain amendments to the Bond Resolution allowing for certain assumptions concerning required debt service in the event balloon indebtedness is outstanding and allowing for the reserve fund to be established pursuant to supplemental resolution approving each series of bonds issued under the Bond Resolution.
The 2017 Supplemental Resolution was prepared by Bryant Miller and Olive P.A., the County’s Bond Counsel, and has been reviewed and approved by staff and by the County’s Financial Advisor, FirstSouthwest, a Division of Hilltop Securities Inc., and the County’s Disclosure Counsel, Nabors Giblin & Nickerson, P.A.
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| BUDGETARY IMPACT: |
| The Financial Advisor reports that the estimated Maximum Bond Service Requirement given current market conditions is expected to be approximately $7,232,250 and will mature no later than October 1, 2047. The Maximum Bond Service Requirement of the combined Bond Service Requirement of the Series 2017 Bonds together with the Outstanding Parity Obligations is expected to be approximately $9,574,250. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Documents drafted in connection with the proposed financings are distributed to the County staff, including the County Attorney’s office for review, comment and approval as they are prepared. The County Attorney has signed off on the 2017 Supplemental Resolution. Further, the County Attorney will render her opinion as to legality, and the County’s Bond Counsel will render their opinion as to tax-exemption of the Series 2017 Bonds as a condition of closing. |
| PERSONNEL: |
| None. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The issuance of the Series 2017 Bonds will comply with the Board’s requirements for the issuance of County Bonds. |
| IMPLEMENTATION/COORDINATION: |
| Execution by the authorized officers of the Board of the final financing and closing documents will be required at or prior to the Closing. |
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