JANUARY 16, 1992

The Lake County Board of County Commissioners met in special session on Thursday, January 16, 1992, at 1:30 p.m., in the Board of County Commissioner's Meeting Room, Lake County Courthouse, Tavares, Florida. Commissioners present at the meeting were: Michael J. Bakich, Chairman; Richard Swartz; Catherine Hanson; and Don Bailey. Commr. Gregg was not present due to other commitments. Others present were: Annette Star Lustgarten, County Attorney; Mike Anderson, Interim County Manager; Ava Kronz, Assistant to the County Manager; James C. Watkins, Clerk; Robert K. McKee, Chief Deputy Clerk; and Sandra Carter, Deputy Clerk.


Ms. Eleanor Anderson, Executive Director of Administrative Services-Budget, appeared before the Board and introduced Ms. Lavon Wisher, Managing Director, with the firm of Public Financial Management, Inc. (PFM), financial advisor to the County with respect to the bonding issue.

Ms. Wisher appeared before the Board stating that the County issued approximately $38 million of sales tax revenues in 1987, for the purpose of financing the County's new jail and Criminal Justice Facility, and constructing and equipping the County's sanitary landfill, noting that, at that time, the County funded a full debt reserve fund, so that it could be making a balloon payment in the year 2002. She stated that, at the request of the County, PFM assisted the County, in July of 1991, in replacing the debt reserve fund so that the County could use the $3.8 million that was net in the fund for capital projects.

In October, PFM analyzed a couple of underwriting proposals that the County had received, as well as did their own evaluation, at which time they appeared before the Board and advised them that market conditions were such that they might want to start refunding the County's existing sales tax funds. She stated that PFM

recommended they do this, only if they could obtain certain savings, which, at that time, the savings they recommended was 3%, or $788,000.00. She stated that the market went up and down and, basically, what happened in November and December was that the price of treasuries effected them funding the escrow at a yield that would give the County the savings she alluded to, so, on a day-to-day basis with PaineWebber Incorporated (who she noted was a book runner of the underwriting team), they analyzed the markets. She stated that, during this period of time, it created a problem for the County. She stated that PFM, in conference with Financial Guaranty Insurance Company (FGIC) and PaineWebber, structured a level debt service that would eliminate the balloon payment at the end and also the requirement that the County fund the debt reserve fund, beginning in October of 1992.

Ms. Wisher then referred to Pages 11, 16, 20 and 21 of the report which PFM had submitted to the Board. She stated that she had spoken to Ms. Anderson and informed her that the interest rates were dropping, and that they had the approval of FGIC to go to market, which she noted they did (Ms. Anderson, in turn, had submitted and received authorization from the Board to do so). She stated that they had to make a decision with staff whether to make a full refunding, or whether to do a partial refunding, noting that they ran the numbers and found that the full refunding gave the County a greater savings in the present value dollars, amounting to $925,000.00, or 2.846 debt, plus a cash savings of $1.6 million. She stated that, as of Wednesday, January 15, 1992, PaineWebber sold all but approximately $8 million worth of the bonds, and committed to buy the remainder of the bonds that had not been sold. She stated that, based upon the report before the Board this date, and PFM's knowledge of what the market is, they would recommend that the Board enter into the bond purchasing agreement with PaineWebber, and the other members of the underwriting group, at a true interest rate of 5.383, and a gross underwriting spread of 0.762%.

Mr. Tom Giblin, with Nabors, Giblin & Nickerson, Tampa, Florida (bond counsel), appeared before the Board and referred to the resolution contained in the packet before the Board this date, stating that the only changes that had been made, since the Board originally received a copy, pertained to the terms. Contained in the packet, along with the resolution, was Exhibit A (Bond Purchase Agreement); Exhibit B (Preliminary Official Statement Dated January 10, 1992); Exhibit C (Escrow Deposit Agreement); and Exhibit D (Debt Service Reserve Fund Policy Agreement). He stated that the old bonds will not be totally taken out until December 1, 1995, so, until that period of time, the County's escrow agent will hold the portfolio of U.S. Treasury obligations, noting that the principal and interest will be sufficient to pay off the refunded bonds, as they come due. He stated that the Board only needed to adopt the resolution, and everything else would fall into place.

On a motion by Commr. Swartz, seconded by Commr. Bailey and carried unanimously, the Board adopted Resolution No. 1992-11, amending and supplementing Resolution No. 1987-63, providing for the acquisition, construction, and equipping of a new jail and Criminal Justice Complex, and for the acquisition, preparation, and equipping of a sanitary landfill area for Lake County.

Mr. Rick Fitzgerald, with PaineWebber Incorporated, presented the Clerk, Mr. James C. Watkins, with a check in the amount of $359,950.00, which he noted was a part of their deposit, to be held until closing on the bond issue. He then thanked the Board, on behalf of PaineWebber and the other underwriters involved in this transaction, for having the opportunity to be of service to Lake County and complimented Ms. Lavon Wisher, Managing Director with PFM; Ms. Eleanor Anderson, Executive Director of Administrative Services-Budget; Mr. Bob McKee, Chief Deputy Clerk; and Mr. Jim Schuster, Finance Director, for their prudence and patience in dealing with this issue, noting that it resulted in the County gaining another $300,000.00. He stated that he did not want this

fact to be lightly looked over, as they have done the County a big favor.

There being no further business to be brought to the attention of the Board, the meeting adjourned at 1:45 p.m.