The Lake County Board of County Commissioners met in special session on Friday, October 1, 1993, at 4:00 p.m., in the Board of County Commissioner's Meeting Room, Lake County Administration Building, Tavares, Florida. Commissioners present at the meeting were: G. Richard Swartz, Jr., Chairman; Catherine Hanson, Vice Chairman; Rhonda H. Gerber; Don Bailey (Commr. Bailey was not present due to another commitment); and Welton G. Cadwell. Others present were: Annette Star Lustgarten, County Attorney; Peter F. Wahl, County Manager; James C. Watkins, Clerk; Barbara Lehman, Chief Deputy, Finance and Audit Department; and Marlene S. Foran, Deputy Clerk.
The Chairman, Commr. Swartz, announced that the special meeting on the resolution authorizing the refunding of the Lake County Adjustable Tender Resource Recovery Industrial Development Revenue Bonds Series 1988A, and the Lake County Taxable Mandatory Tender Obligation Resource Recovery Industrial Development Revenue Bonds, Series 1988B would be continued until 4:30 p.m., or as soon thereafter as possible, due to the bond materials not being available at this time.
No one present wished to comment on the continuation of this meeting.
On a motion by Commr. Hanson, seconded by Commr. Gerber and carried unanimously, the Board approved to continue the special meeting on the Series 1988A & Series 1988B Resource Recovery Revenue Bonds until 4:30 p.m., or as soon thereafter as possible.
RECESS & REASSEMBLY
At 4:05 p.m., the Chairman announced that the Board would recess and reconvene at 4:30 p.m., or as soon thereafter as possible, for the special meeting on the Series 1988A & Series 1988B Resource Recovery Revenue Bonds.
BONDS/RESOLUTIONS/SOLID WASTE (CONTINUED)
The Chairman reconvened the special meeting in regard to the resolution authorizing the refunding of the Lake County Series 1988A and 1988B Resource Recovery Revenue Bonds.
Mr. Rick W. Patterson, Managing Consultant, Public Financial Management, Inc., appeared before the Board and introduced Mr. Steve Miller, Nabors, Giblin & Nickerson, P.A.; Mr. Thomas Giblin, Esquire, Nabors, Giblin & Nickerson, P.A.; Mr. Richard Wells, Senior Managing Underwriter, PaineWebber, Inc.; Mr. Scott Richbourg, PaineWebber, Inc.; Mr. Michael D. Williams, Honingman, Miller, Schwartz & Cohn; and Mr. Robert Mellen, III, Akerman, Senterfitt & Eidson, P.A. Mr. Patterson stated that, on behalf of Public Financial Management, Inc., he was pleased to present the Report of the Independent Financial Advisor regarding the Issuance of $69,615,000 Resource Recovery Industrial Development Refunding Revenue Bonds (NRG/Recovery Group Project), Series 1993A; and $7,935,000 Taxable Resource Recovery Industrial Development Refunding Revenue Bonds (NRG/Recovery Group Project), Series 1993B for the purpose of refinancing the outstanding Adjustable Tender Resource Recovery Industrial Development Revenue Bonds, Series 1988A and the Taxable Mandatory Tender Obligation Resource Recovery Industrial Development Revenue Bonds, Series 1988B.
Mr. Patterson reviewed the recommended financing parameters based on Variable-to-Fixed Rate Conversion under current Fixed Interest Rate Market and Historical Weekly Variable Interest Rates and stated that the current projections are as follows:
Tipping Fee Increase
Year 1 $.50
Year 1-5 $.65
True Interest Cost
Combined Series 1993 Bonds 6.004604%
Weighted Average Maturity
Combined Series 1993 Bonds 13.74 Years
Gross Debt Service Savings $16,378,117
Present Value Debt Service Savings $6,609,554
Average Debt Service Savings per Ton $4.03
Mr. Patterson stated that, based upon PFM's experience with other resource recovery financings in Florida and across the country, based on their knowledge of the tax-exempt market, and based upon the review of recent comparable financings in the state and the nation, PFM is of the opinion that the combined true interest cost for the Series 1993 Bonds of 6.005% is fair and equitable, and that the underwriting spread of 0.010426%, or approximately $10.426 per $1,000, is also fair and appropriate for this transaction. Accordingly, PFM recommends that the Board approve the financing, and award the sale of the Series 1993 Bonds to PaineWebber, Inc.
Mr. Tom Giblin appeared before the Board and explained that the action required by the Board was the approval of the Bond Resolution, which was presented to the Board prior to the start of the meeting this date. He explained that the Exhibits attached to said resolution are legal documents relating to the issuance of the bonds, and explained that the Purchase Contracts outline various conditions that must be met by the County prior to the actual delivery of the bonds; the Preliminary Official Statement, dated September 21, 1993, was the offering prospectus for the Series 1993A Bonds and the Series 1993B Bonds; and the Escrow Deposit Agreement was the agreement under which the bond proceeds would be utilized by First Union National Bank of Florida, as the Escrow Agent and Trustee, to pay off the Series 1988A Bond holders.
He noted that the bond closing was scheduled for October 14, 1993.
Commr. Hanson made a motion, which was seconded by Commr. Gerber, to approve and authorize the Chairman to execute Resolution No. 1993-165 authorizing the refunding of the Lake County, Florida Adjustable Tender Resource Recovery Industrial Development Revenue Bonds Series 1988A and Lake County, Florida Taxable Mandatory Tender Obligation Resource Recovery Industrial Development Revenue Bonds, Series 1988B.
Commr. Swartz expressed his appreciation to County staff and the Clerk's Office for their assistance in this activity and stated that the County has received an outstanding rate on the Series 1993A Bonds and has successfully refinanced to a Fixed Rate.
The Chairman called for a vote on the motion, which carried unanimously.
Commr. Bailey was not present for the discussion or vote.
Mr. Richard Wells appeared before the Board and commented that the No-Burn Analysis, the decision to renegotiate with Ogden Martin Systems of Lake, and the Ad-Hoc Financing Advisory Committee combined worked to the County's benefit in terms of the interest rates. He expressed his appreciation, on behalf of PaineWebber, Inc., and all of the underwriters, for allowing them to work with the County and all those involved on the refinancing of the bonds.
There being no further business to be brought to the attention of the Board, the meeting adjourned at 5:05 p.m.
CATHERINE C. HANSON, CHAIRMAN
JAMES C. WATKINS, CLERK