|
Back to Calendar
Return
|
| |
Regular Agenda Item 2. A.
|
| Regular BOS Meeting |
|
|
|
| Information |
| Request/Subject |
| Approve use of cooperative contracts with Stifel, Nicolaus & Company as financial advisor (C-005-1718) and Greenberg Traurig (RFP 01-18-22) as bond counsel for the 2019 bond financing transaction utilizing the Strategic Alliance for Volume Expenditures (SAVE) cooperative contracts. Adopt resolution authorizing the issuance of pledged revenue obligations and delegating authority to the County Manager and Finance Director to finalize the terms of the transaction. |
| Background Information |
| At the direction of the Board of Supervisors and the County Manager, the County Finance Director engaged Mark Reader from the firm Stifel, Nicolaus & Company as financial advisor and Michael Cafiso from the law firm of Greenberg Traurig to act as Bond legal counsel and underwriter and to identify potential funding mechanisms to finance the capital projects that have been previously discussed during the Board work session on 5/28/19. Stifel, Nicolaus & Company and the law offices of Greenberg Traurig have existing cooperative contracts with Crane School District (C-005-1718) and Chandler Unified School District (RFP 01-18-22) which are members of the Strategic Alliance for Volume Expenditures (SAVE) cooperative and Gila County is an active member of SAVE. On July 9, 2019, a public hearing was conducted pursuant to A.R.S. § 11-391 to gather public comment on incurring long-term financing to support the County's capital improvement plan for northern and southern Gila County, and to refinance existing long-term 2009 obligations at a lower interest rate. The public meeting was properly noticed and advertised and the County provided a means for the public to comment in writing prior to the public meeting. Per A.R.S. § 11-391, the Board held the public hearing to identify alternatives including issuing long-term debt. The Board has received no public comments and have determined that incurring long-term financing is the best path to providing suitable facilities for the public and employees to conduct business and refinancing existing debt at a lower interest rate. |
| Evaluation |
| Utilizing the SAVE cooperative contracts, the County Manager and the County Finance Director have been working with Stifel, Nicolaus & Company and Greenberg Traurig law firm to ensure the public financing process adheres to A.R.S. § 11-391 should the Board adopt the resolution to move forward with pledged revenue obligation financing for the capital projects identified for northern and southern Gila County. If the Board decides to move forward with the pledged revenue obligation financing, then the fee schedule outlined in the cooperative contracts for Stifel, Nicolaus & Company and Greenberg Traurig will become a condition of the bond proceeds as written into the language of the resolution. The resolution has been prepared by the law firm of Greenberg Traurig and complies with the requirements set forth in A.R.S. § 11-391. |
| Conclusion |
| The adoption of Resolution No. 19-10-01 to secure bond financing is determined to be the best course of action. Section 11 in the resolution provides for the immediate operation of the provisions of the resolution for the preservation of public peace, health and safety, particularly to finance the new project and refinance the existing debt on the most attractive terms available to the County, and an emergency is hereby declared to exist, and this resolution will be in full force and effect from and after its passage by the Board. |
| Recommendation |
| Staff recommends the adoption of Resolution No. 19-10-01 approving the form and authorizing the execution and delivery of the financing package any other necessary agreements, instruments and documents; and approving the sale and execution and delivery of the pledged revenue obligations with a principal amount not to exceed $10,000,000 and with a total estimated interest of $6,295,667, to have a total financing cost of $16,295,667. |
| Suggested Motion |
| Information/Discussion/Action to adopt Resolution No. 19-10-01 approving the form and authorizing the execution and delivery of a Purchase Agreement (2019), a Trust Agreement (2019), a Continuing Disclosure Agreement, an Obligation to Purchase Contract, and other necessary agreements, instruments and documents; approving the sale and execution and delivery of Pledged Revenue and Revenue Refunding Obligations, Series 2019; approving and authorizing the execution of an Official Statement to be used in connection with the sale of the Obligations; and delegating authority to determine certain matters with respect to the foregoing and declaring an emergency; and approve use of cooperative contracts with Stifel, Nicolaus & Company as financial advisor (C-005-1718) and Greenberg Traurig (RFP 01-18-22) as bond counsel for the 2019 bond financing transaction utilizing the Strategic Alliance for Volume Expenditures (SAVE) cooperative contracts. (Mary Springer) |
|
|
|
|