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Regular Agenda Item 3. F.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Adoption of Resolution No. 20-10-05 approving the sale and execution and delivery of pledged revenue obligations, Taxable Series 2020; approving the form and authorizing the execution and delivery of necessary agreements, instruments, and documents; delegating authority to determine certain matters with respect to the foregoing and declaring an emergency; and approve the use of cooperative contracts with Stifel, Nicolaus & Company as Underwriter (C-005-1718) and Greenberg Traurig, LLP (RFP 01-18-22) as bond counsel for the 2019-2020 bond financing transaction utilizing the Strategic Alliance for Volume Expenditures (SAVE) cooperative contracts. Adopt a 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 Underwriter and Michael Cafiso from the law firm of Greenberg Traurig, LLP to act as Bond legal counsel and to identify potential funding mechanisms to finance the unfunded pension liability project that was previously discussed during the Board work session on 6/23/20. Stifel, Nicolaus & Company and the law offices of Greenberg Traurig, LLP has 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 September 22, 2020, a public hearing was conducted pursuant to A.R.S. § 11-391 to gather public comment on incurring long-term financing to support the payment of the unfunded liability portion of the PSPRS (Public Safety Personnel Retirement System) and CORP (Correctional Officers Retirement Plan) pension plans. 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 received one public comment in favor of the proposed project and have determined that incurring long-term financing is the best path to fully fund the PSPRS and CORP legacy pension plans. |
| Evaluation |
| Utilizing the SAVE cooperative contracts, the County Manager and the County Finance Director have been working with Stifel, Nicolaus & Company and Greenberg Traurig, LLP 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 fully funding the unfunded pension liability for PSPRS and CORP legacy pension plans. 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, LLP 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, LLP, and complies with the requirements set forth in A.R.S. § 11-391. |
| Conclusion |
| The adoption of Resolution No. 20-10-05 to secure bond financing is determined to be the best course of action. Section 10 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 project on the most attractive terms available to the County, and an emergency will be declared to exist, and the resolution will be in full force and effect from and after its passage by the Board. |
| Recommendation |
Staff recommends the adoption of Resolution No. 20-10-05 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 $17,775,000 and with a total estimated interest of $8,547,385 to have a total financing cost of $26,22,385.
State statute requires a roll call vote on the approving resolution. The approving resolution includes an emergency clause that will require three affirmative votes for its inclusion. |
| Suggested Motion |
| Information/Discussion/Action to adopt Resolution No. 20-10-05 approving the sale and execution and delivery of pledged revenue obligations, Taxable Series 2020; approving the form and authorizing the execution and delivery of necessary agreements, instruments and documents; delegating authority to determine certain matters with respect to the foregoing and declaring an emergency; and approve the use of cooperative contracts with Stifel, Nicolaus & Company as underwriter (C-005-1718) and Greenberg Traurig, LLP (RFP 01-18-22) as bond counsel for the 2020 bond financing transaction utilizing the Strategic Alliance for Volume Expenditures (SAVE) cooperative contracts. (Roll Call Vote) (Mary Springer) |
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