HomeMy Public PortalAbout2011-10 Selecting bank proposal for the stormwater utility revenue bonds of the villageRESOLUTION NO. 2011-10
A RESOLUTION OF THE VILLAGE COUNCIL OF THE
VILLAGE OF KEY BISCAYNE, FLORIDA, SELECTING
BANK PROPOSAL FOR THE PURCHASE OF THE
STORMWATER UTILITY REVENUE REFUNDING BONDS
OF THE VILLAGE; AUTHORIZING THE VILLAGE
MANAGER AND OTHERS TO NEGOTIATE FINAL TERMS
AND PREPARE DOCUMENTS; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the Village of Key Biscayne, Florida (the "Village") recently sought proposals
through a competitive bidding process for the purchase of Stormwater Utility Revenue Refunding
Bonds (the "Bonds") of the Village, in an aggregate principal amount not to exceed $4,505,000, for
the purpose of refunding the Village's $7,200,000 Stormwater Utility Revenue Bonds, Series 1999;
and
WHEREAS, after careful review of the competitive bids submitted, the Village wishes to
select the proposal by Pinnacle Public Finance (the "Bank") to purchase the Bonds; and
WHEREAS, the Village Council finds that this Resolution is in the best interest and welfare
of the residents of the Village.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF KEY BISCAYNE, FLORIDA, AS FOLLOWS:
Section 1. Recitals Adopted. Each of the above stated recitals are hereby adopted,
confirmed and incorporated herein.
Section 2. Selection of Bank. The Village Council hereby selects the proposal of the
Bank to purchase the bonds, a copy of which is attached as Exhibit "A" to this Resolution. If the
Village and the Bank cannot negotiate a successful agreement, the Village Manager shall terminate
any negotiations with the Bank and begin negotiations with the next highest ranked bidder (the
"Alternate Bank").
Section 3. Village Manager and Others Authorized. The Village Manager is hereby
authorized to negotiate with the Bank (and the Alternate Bank, if necessary) the final terms of the
Bonds consistent with the proposal attached as Exhibit "A". The Village Attorney and Bond
Counsel to the Village are hereby authorized to draft documents and to do all other things necessary
to accomplish the issuance and sale of the Bonds.
Section 4. Effective Date. This Resolution shall be effective immediately upon
adoption.
PASSED AND ADOPTED this 24th day of May, 2011.
AYOR FRANKL H. CAPLAN
ATT
/at
CHITA H. ALVAREZ, MMC, VILLAGE CL
APPROVED AS TO FORM AND LEGAL SUFFI • A,
•
V ILLAGE A'TTO,R EY
EXHIBIT "A"
PinnaclePublicFinance®
A BANKUNITED COMPANY
May 18, 2011
VIA Electronic Mail
Lourdes Reyes Abadin
Estrada Hinojosa & Company, Inc.
2937 SW 27th Avenue, Suite 2008
Miami, FL 33133
RE: Refinancing Stormwater Utility Refunding Bonds, Series 1999
Dear Ms. Abadin;
Pinnacle Public Finance, a BankUnited Company, is pleased to respond to your client's financing
request.
Corporate Overview: Pinnacle Public Finance, a BankUnited company, is a market leader in
providing tax-exempt financing directly to its state and local government clients and through its
vendor programs and alliances. We are a full -service municipal finance organization with
origination, underwriting, servicing, and syndication capabilities.
With more than $6 billion in financing and transactional experience in every state in the U.S., our
team has the knowledge and the resources to structure complex programs that require innovative,
flexible financing solutions.
In October 2010, BankUnited acquired the municipal finance business from Koch Financial and
now operate under the name Pinnacle Public Finance.
Our proposed terms and conditions are as follows:
PPF: Pinnacle Public Finance, Inc. ("PPF")
Lessee: Village of Key Biscayne ("Village")
Issue Type: Tax -Exempt Note
Amount Financed: $4,505,000.000
Security: Pledge of Stormwaster Utility Fees and all legally available funds
sufficient to pay the principal and interest due on the Note.
Maturity:
Interest Rate:
October 2019
2.39% (Interest rate is held firm until July 18, 2011, subject to initial
Council award on May 24, 201 1)
8377 E. Hartford Drive, Suite 115, Scottsdale, AZ 85255
Phone 480.419.4800 I Toll Free 1.866.545.2327
Village of Key Biscayne
May 18, 2011
Page 2 of 3
Projected
Funding Date:
Credit Approval
Process:
On or before July 18, 2011
Upon receipt of a completed Credit Application (see attached) and the
Village's last three years audited financials statements and most recent
approved budget, Pinnacle Public Finance will begin the credit review
process. Final credit approval is typically completed within 5 to 10
business days.
Prepayment Terms: On any payment date with no prepayment penalty on or after October 1,
2014.
Fees/Closing Costs: None other than those listed herein, however the Village will be responsible
for any fees or expenses with respect to their (i) issuing costs, if any, and
(ii) Village's legal/bond counsel, if any. PPF is willing to finance any of the
Village's expenses related to closing the transaction.
Documentation: It is anticipated that the transaction will be documented by the Village's
legal counsel Weiss Serota at the Village's expense.
This proposal is subject to final credit approval and final documentation. Please feel free to call
me at 480-419-3634 with any questions or further clarification.
Thank you for the opportunity to present this proposal.
Sincerely,
a;.A—•---
Bruce Block
Vice President - Syndication & Direct Markets
Village of Key Biscayne
May 18, 2011
Page 3 of 3
Amortization Schedule
Totals:
Payment
Pmt # Date
7/18/201 j__
1 10/1/2011
2 4/1/2012
3 10/1/2012
4 4/1/2013
5 10/1/2013
6 4/1/2014
7 10/1/2014
8 4/1/2015
9 10/1/2015
10 4/1/2016
11 10/1/2016
12 4/1/2017
13 10/1/2017
14 4/1/2018
15 10/1/2018
16 4/1/2019
17 10/1/2019
$5,005,549.98 $500,549.98 $4,505,000.00
Payment
Amount
$241,832.98
$51,205.75
$526,205.75
$45,529.50
$535,529.50
$39,674.00
$549,674.00
$33,579.50
$558,579.50
$27,305.75
$572,305.75
$ 20,793.00
$580,793.00
$14,101.00
$594,101.00
$7,170.00
$ 607,170.00
Interest
$21,832.98
$51,205.75
$51,205.75
$45,529.50
$45,529.50
$39,674.00
$39,674.00
$33,579.50
$33,579.50
$27,305.75
$27,305.75
$ 20,793.00
$20,793.00
$14,101.00
$14,101.00
$7,170.00
$7,170.00
Principal
$220,000.00
$0.00
$475,000.00
$0.00
$490,000.00
$0.00
$510,000.00
$0.00
$525,000.00
$0.00
$545,000.00
$0.00
$560,000.00
$0.00
$580,000.00
$0.00
$600,000.00
Rate 2.3900%
Purchase
Price
$2,810,000.00
$2,810,000.00
$2,285,000.00
$ 2,285,000.00
$1,740,000.00
$1,740,000.00
$1,180,000.00
$1,180,000.00
$600,000.00
$600,000.00
$ 0.00
Outstanding
Balance
$4,505,000.00
$4,285,000.00
$4,285,000.00
$3,810,000.00
$3,810,000.00
$3,320,000.00
$3,320,000.00
$2,810,000.00
$2,810,000.00
$2,285,000.00
$2,285,000.00
$1,740,000.00
$1,740,000.00
$1,180,000.00
$1,180,000.00
$ 600,000.00
$600,000.00
$0.00
Key Biscayne
Stormwater Refinancing
Bank Qualified RFP Evaluation
18 -May -11
Par Amount= $4,505,000.00
Maturity Date= October 1, 2019
Bank
No Rate Lock
Rate Lock
starting 5/25
Rate Lock thru
closing
Late Pmt
Penalty
Prepayment
Penalty
Fees &
Expenses
Additional Coniditions
Bank of America
2.39%
Make whole
provision
$ -
Current docs and amort
sched/Int on bonds
computed on 365or366 day
yr
BB&T
2.2% - (69% 7 Yr
LIBOR +34 b. p•)
2.27/0
Int Rate +
2%
1% on sched
payment date
$ 4,000
Chase
2.25%
Base Rate
+ 4%
Breakage Cost
$ 5,500
1.25x MADS Rate Lock
Exhibit Provided
2.33%
No breakage
fee on or aft
10/2015
Northern Trust
3.00%
5% on Initial 2
years
$ 5,000
Underwriting & Approval
Process 3 wks
Pinnacle Public Finance
2.39%
Int at 12%
or max
legal amt
No Penalty on
or after Oct. 1,
2014
$ -
Final credit approval
required
Sun Trust
2.49%
2.57%
Make Whole
$ 4,500
1.25x MADS bank
needs to complete due
diligence
2.64%
2.72%
No breakage
fee or after
Oct. 1, 2014
TD Bank
2.69%
2.85%
6.00%
Yield
Maintenance
Fee
$ 3,000
Maintain Depository
Relationship/ Only
Stormwater fee req as
security