Title:
A Resolution Of The City Commission Of The City of Hollywood, Florida, Authorizing The Issuance Of The City's Water And Sewer Refunding Revenue Bonds, Series 2014, In An Aggregate Principal Amount Not To Exceed $56,000,000.00; Providing For The Determination Of Certain Details Of Such Bonds Within Parameters Set Forth Herein; Appointing A Bond Registrar With Respect Thereto; Authorizing The Negotiated Sale Of Such Bonds To The Underwriters Mentioned Herein; Determining That The Issuance Of Such Bonds And The Refunding Of Certain Prior Bonds Are In The Best Interests Of The City And The Users Of The Utility; Authorizing The Execution And Delivery Of A Bond Purchase Agreement With Respect To Such Bonds; Approving The Distribution Of A Preliminary Official Statement; Approving The Form And Authorizing The Execution And Delivery Of A Final Official Statement; Appointing An Escrow Agent And Authorizing The Execution Of An Escrow Deposit Agreement; Authorizing The Execution And Delivery Of A Continuing Disclosure Certificate; Authorizing The Procurement Of Credit Enhancement And A Reserve Account Insurance Policy To Further Secure Such Bonds; Providing For The Application Of Bond Proceeds; Approving The Redemption Of Such Certain Prior Bonds Of The City From Proceeds Of Such Bonds; Approving The Application Of Certain Moneys Held In Respect Of Such Certain Prior Bonds To Effect Such Redemption; Establishing A 2014 Reserve Subaccount And A Means For Determination Of The Reserve Account Requirement With Respect Thereto And Providing For The Funding Thereof; Authorizing Proper Officials To Do All Things Deemed Necessary In Connection With The Issuance, Sale And Delivery Of Such Bonds; And Providing An Effective Date.
Body:
Staff Recommends: Approval of the Attached Resolution
Explanation:
The attached Resolution authorizes the issuance of the Series 2014 Water and Sewer Refunding Revenue Bonds (the "Series 2014 Refunding Bonds") in an aggregate amount not to exceed $56,000,000. The Series 2014 Refunding Bonds will be issued for the purpose of refunding, on a current basis, the outstanding Water and Sewer Refunding and Improvement Revenue Bonds, Series 2003 (the "Refunded Bonds") in order to generate debt service savings. The Series 2014 Refunding Bonds are secured solely by the revenues of the City's Water and Sewer Utility and no tax dollars are used to support the proposed Refunding Bonds.
Pursuant to Resolution R-2003-354, adopted on November 5, 2003, the City had previously issued the Refunded Bonds in an aggregate amount of $114,705,000. Currently, $54,910,000 of the Refunded Bonds are outstanding.
On July 24, 1991, the City enacted Ordinance No. O-91-44, as amended and supplemented, authorizing and securing the City's Water and Sewer Bonds (the "Water and Sewer Bond Ordinance"). The Water and Sewer Bond Ordinance provides for the issuance of Refunding Bonds. The Water and Sewer Bond Ordinance also provides that certain details of Bonds and certain other matters shall be determined in a Series Resolution.
The attached Resolution provides the details associated with the Series 2014 Refunding Bonds. The form of several documents and the authorization to execute said documents is also provided for in the Resolution:
· A Bond Purchase Agreement between Merrill Lynch, Pierce, Fenner & Smith Incorporated, on behalf of themselves and as representative of the other underwriters, and the City of Hollywood
· A Preliminary Official Statement relating to the Series 2014 Refunding Bonds
· A Continuing Disclosure Certificate of the City of Hollywood; and
· An Escrow Deposit Agreement relating to the Series 2014 Refunding Bonds between The Bank of New York Mellon, as escrow agent, and the City.
The proceeds of the Series 2014 Refunding Bonds will be utilized to (i) currently refund the Refunded Bonds, (ii) fund a Reserve Account or a Reserve Account Insurance Policy, and (iii) pay certain costs of issuance with respect to the Series 2014 Refunding Bonds.
Based on current market conditions, the issuance of the Series 2014 Refunding Bonds will generate debt service savings of approximately $7.2 million on a net present value basis - equal to approximately 13.2 percent of the Refunded Bonds.
Recommended for inclusion on the Agenda by:
Cathy Swanson-Rivenbark, City Manager
Wazir Ishmael, Assistant City Manager
Matthew Lalla, Financial Services Department Director
Steve Joseph, Public Utilities Department Director