HomeMy Public PortalAbout1) Certified copy of Ordinance No. 2013-9 authorizing the issuance of the Bonds.pdfVILLAGE OF KEY BISCAYNE
Office of the Village Clerk
Village Council
Franklin H. Caplan, Mayor
Michael W. Davey, Vice Mayor
Theodore J. Holloway
Michael E. Kelly
Mayra P. Lindsay
Ed London
James S. Taintor
Village Clerk
Conchita H. Alvarez, AMC
CERTIFICATION
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
1, Conchita H. Alvarez, duly appointed Village Clerk of the Village of Key Biscayne, Florida, do
hereby certify that the attached is a true and correct copy of:
Ordinance No. 2013-9 adopted by the Village Council on December 3, 2013
IN WITNESS WHEREOF, I hereunto set my hand and affix the Seal of the Village of Key Biscayne,
Florida, this 3rd day of January, 2014.
H. Alvarez, MMC
lerk
f Key Biscayne, Florida
88 West McIntyre Street • Suite 220 • Key Biscayne, Florida 33149 • (305) 365-5506 • Fax (305) 365-8914
MISSION STATEMENT: "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."
www.keybiscayne.fl.gov
ORDINANCE NO. 2013-9
AN ORDINANCE OE THE VILLAGE OF KEY BISCAYNE,
FLORIDA AUTHORIZING THE ISSUANCE OF NOT
EXCEEDING S6,575,000 OF STORMWATER UTILITY
REFUNDING AND IMPROVEMENT REVENUE BONDS OF
THE VILLAGE OF KEY BISCAYNE, FLORIDA; PROVIDING
FOR A SUPPLEMENTAL RESOLUTION SETTING FORTH
THE DETAILS OF SAID BONDS; DETERMINING
COMPETITIVE BIDDING FOR SALE OF THE BONDS TO
BE IMPRACTICABLE; AUTHORIZING THE VILLAGE
MANAGER TO NEGOTIATE WITH PINNACLE PUBLIC
FINANCE, INC. TO PURCHASE THE BONDS; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, on January 28, 1999, the Village of Key Biscayne, Florida (the "Village")
issued its $7,200,000 Stormwater Utility Revenue Bonds, Series 1999 (the "1999 Bonds") for the
purpose of providing permanent financing for the expansion and improvement of the Stormwater
Utility System within the Village (the "1999 Project"); and
WHEREAS, on July 18, 2011, the Village issued its $4,450,000 Stormwater Utility Revenue
Refunding Bonds, Series 2011 (the "Prior Bonds") for the purpose of refunding the 1999 Bonds; and
WHEREAS, the Village needs to finance improvements and replacements of drainage wells
and outfalls for its stormwater utility (the "2013 Project"); and
WHEREAS, the Village Council (the "Council") desires to authorize the issuance of not
exceeding $6,575,000 of bonds (the "2013 Bonds") for the purpose of refunding the Prior Bonds.
financing the 2013 Project and paying costs of issuance of the 2013 Bonds; and
WHEREAS, the Prior Bonds are not subject to optional redemption prior to October 1,
2014; and
WHEREAS. Pinnacle Public Finance, Inc. ("Pinnacle"), the owner of the Prior Bonds, has
offered to (I) waive the restriction on the optional redemption of the Prior Bonds and permit the
current refunding of the Prior Bonds, (ii) provide the financing for the 2013 Project and (iii) extend
the term of the Prior Bonds, which mature on October 1, 2019, until October 1, 2030; and
WHEREAS. Pinnacle has provided a term sheet, a copy of which is attached hereto as
Exhibit "A" (the "Term Sheet"), to purchase the 2013 Bonds; and
WHEREAS, the Village desires to accept the Term Sheet and negotiate with Pinnacle for
the purchase of the 2013 Bonds directly and without utilizing a new request for proposals for the
following reasons: (I) the Prior Bonds would not be able to be refunded prior to October 1, 2014
without the approval of Pinnacle; (ii) Pinnacle is willing to extend the term of the Prior Bonds to
match the term of the financing needed for the 2013 Project, thereby reducing the annual debt service
payments; and (iii) the ability to move quickly is critical to achieving maximum debt service savings;
and
WHEREAS,for the reasons stated above, the Council hereby determines that award of the
2013 Bonds pursuant to competitive bids received through a request for proposals process is
impracticable; and
WHEREAS, the Council desires that the 2013 Bonds be secured in the same manner as the
Prior Bonds, primarily by a pledge of the Stormwater Utility Fees and secondarily by a covenant to
budget and appropriate Non -Ad Valorem Revenues of the Village, all as further specified by
subsequent resolution of the Council.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF KEY BISCAYNE, FLORIDA, AS FOLLOWS:
Section 1. Each of the above -stated recitals is hereby adopted and confirmed.
Section 2. In accordance with the provisions of the Charter of the Village of Key Biscayne,
Florida and Chapter 166, Florida Statutes, there are hereby authorized to be issued the 2013 Bonds,
in an aggregate principal amount not to exceed $6,575,000, in one or more series, for the purpose
of refunding the Prior Bonds, financing the 2013 Project and paying costs of issuance of the 2013
Bonds. The 2013 Bonds shall be designated "Village of Key Biscayne, Florida Stormwater Utility
Refunding and Improvement Revenue Bonds, Series 2013," or such other designation as may be
approved by supplemental resolution, shall be dated such date, shall be in such denominations, shall
be stated to mature no later than October 1, 2030 and shall bear interest from their dated date at a rate
or rates not exceeding the maximum rate permitted by law at the time of issuance of the 2013 Bonds,
shall be subject to redemption at the option of the Village at such times and prices, and shall have
such other details, all as shall hereafter be determined by the Council by supplemental resolution,
and in substantial compliance with the Term Sheet. The supplemental resolution may be adopted,
and the 2013 Bonds may be issued, at any time after the effective date of this Ordinance.
Section 3. The Village Manager, the Village Finance Director and the Financial Advisor for
the Village are each hereby authorized to negotiate with Pinnacle for the purchase of the Bonds and
with respect to the terms of the Bonds. 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. This Ordinance will become effective immediately upon adoption on second
reading.
2
PASSED AND ADOPTED on first reading this 8th day of October, 2013.
PASSED AND ADOPTED on second reading this 3rd day df Dcember, 2013:
MAYO. • FRANKLIN H. 1 PLAN
HITA H. ALVAREZ, MMC, VILLAGE CLERK
APPROVED AS TO FORM AND LEGAL SUFFICIE
VILLAGE ATTORNEY
3
EXHIBIT "A"
PINNACLE TERM SHEEET
4
tit Pinnacle Public Finance
A BankUnited Company
November 25, 2013
VIA Electronic Mail
Lourdes Reyes Abadin
Estrada Hinojosa & Company, Inc.
2937 SW 27th Avenue, Suite 20013
Miami, FL 33133
RE: Refinancing Stormwater Utility Refunding Bonds
Dear Ms. Abadin,
Pinnacle Public Finance, Inc., a BankUnited Company, is pleased to respond to your financing request.
Corporate Overview: In October 2010, BankUnited acquired the municipal finance business from
Koch Financial Corporation and now operates it under the name Pinnacle Public Finance, Inc. Pinnacle
is headquartered in Scottsdale, Arizona and is a market leader in providing tax-exempt financing directly
to its state and local government clients and through its vendor programs and alliances. 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 fund complex programs that require innovative and flexible financing solutions.
As Koch Financial Corporation, our group managed a portfolio in excess of $1 billion and 2,600
municipal leases. Since beginning operations as Pinnacle, we have funded 640 municipal transactions
totaling over $ 670 million.
Our proposed terms and conditions are as follows:
Lender: Pinnacle Public Finance, Inc. ("Pinnacle")
Borrower: Village of Key Biscayne, Florida ("Village")
Financial Advisor: Estrada Hinojosa & Company, Inc. ("Estrada Hinojosa)
Issue Type: Privately placed storm water revenue note.
Amount Financed: $6,575,000
Purpose: Proceeds of the loan will be used to restructure/refinance a prior loan between
Pinnacle and the Village and provide funding for capital improvements within
the Village.
Security: The loan will be secured by a pledge of the storm water utility revenues and all
legally available funds sufficient to pay the principal and interest due on the loan.
Term: The loan will have a final maturity of October 1, 2030.
Interest Rate: 3.35%
Pinnacle Public Finance, Inc.
Village of Key Biscayne — Refinancing of Storm Water Utility Loan
November 25, 2013
Page 2 of 4
Interest Rate
Expiration:
The above rate is valid through January 15, 2014.
Projected
Funding Date: On or about January 7, 2014.
Payment
Frequency: Interest will be paid semiannually each April 1 and October 1, commencing April
1, 2014. Principal will be paid annually each October 1, commencing October 1,
2014.
Debt Service
Requirements: Please see Preliminary Debt Service Schedule attached.
Prepayment Terms: The obligation is subject to prepayment in full, but not hi part, at any time at a
price equal to the remaining principal balance at that time. Partial prepayments
will be allowed once a year on principal payment dates with a minimum of
$150,000 and $500 rebooking fee.
Fees/Closing Costs: None other than those listed herein, however the Village will be responsible for
any fees or expenses with respect to its (i) issuing costs, if any, (ii) Village's
legal counsel, if any, and (iii) title/registration fees. Pinnacle is willing to finance
any of the Village's expenses related to closing the transaction.
Documentation: Pinnacle anticipates all transaction related documents will be prepared by the
Village's Bond Counsel, Pinnacle anticipates the documentation will be in
substantially the same form as the prior transaction and that Bond Counsel will
provide to Pinnacle and its outside counsel a version of the documents black-
lined to the original set of documents for our initial review.
Assignment:
This proposal is subject to review and acceptance of all documents by Pinnacle
and its outside counsel, Chapman and Cutler LLP.
If awarded the transaction, it is our present intention to hold the loan to maturity;
however, we need the option to assign all rights, title, interest, and obligations to
a "qualified institutional buyer(s)" as defined in Rule 144A(a)(1) promulgated
under the Securities Act of 1933, as amended.
Credit Approval: This proposal is subject to final credit approval by Pinnacle.
Pre -Close
Requirements: Pinnacle will require a complete executed copy of the transcript by noon the day
prior to funding (a scanned copy is acceptable).
Pinnacle Public Finance, Inc.
Village of Key Biscayne — Refinancing of Storm Water Utility Loan
November 25, 2013
Page 3 of 4
Pinnacle's Role
As Purchaser:
Pinnacle will be acting in this transaction solely as purchaser for its own account
and not as a fiduciary for the Village or in the capacity of broker, dealer,
municipal securities underwriter or municipal advisor. Pinnacle has not
provided, and will not provide, financial, legal, tax, accounting or other advice to
or on behalf of the Village with respect to the proposed financing. The Village
will seek and obtain financial, legal, tax, accounting and other advice (including
as it relates to structure, timing, terms and similar matters) with respect to the
financing from its own financial, legal and other advisors (and not from Pinnacle)
to the extent that the Village deems necessary or appropriate and desires to obtain
such advice.
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, f'
Blair Swain
Vice President, Direct Markets
Pinnacle Public Finance, Inc.
Village of Key Biscayne — Refinancing of Storm Water Utility Loan
November 25, 2013
Page 4 of 4
Preliminary Debt Service Schedule
Totals: $8,665,623.33 $2,090,623.33 86,575,000.00
Pmt #
Payment
Date
Payment
Amount
Interest
Rate 3.3500%
Principal
Purchase
Price
Outstanding
Balance
Annual
Total
1/7/2014 $6,575,000.00
1 4/1/2014 $51,394.58 $51,394.58 $0.00 $6,575,000.00 $6,575,000.00
2 10/1/2014 $430,131.25 8110,131.25 $320,000.00 $6,255,000.00 $6,255,000.00
3 4/1/2015 $104,771.25 $104,771.25 $0.00 $6,255,000.00 $6,255,000.00
4 10/1/2015 $404,771.25 $104,771.25 $300,000.00 $5,955,000.00 $5,955,000.00
5 4/1/2016 $99,746.25 $99,746.25 $0.00 $5,955,000.00 $5,955,000.00
6 10/1/2016 $409,746;25 $99,746.25 $310,000.00 $5,645,000.00 $5,645,000.00
7 4/1/2017 $94,553.75 $94,553.75 $0.00 85,645,000.00 $5,645,000.00
8 10/1/2017 $414,553.75 $94,553.75 $320,000.00 $5,325,000.00 $5,325,000.00
9 4/1/2018 $89,193.75 $89,193.75 $0.00 $5,325,000.00 $5,325,000.00
10 10/1/2018 $424,193.75 $89,193.75 $335,000.00 $4,990,000.00 $4,990,000.00
I 4/1/2019 $83,582.50 $83,582.50 $0.00 $4,990,000.00 $4,990,000.00
12 10/1/2019 $428,582.50 $83,582.50 $345,000.00 $4,645,000.00 $4,645,000.00
13 4/1/2020 $77,803.75 $77,803.75 $0.00 $4,645,000.00 $4,645,000,00
14 10/1/2020 8432,803.75 $77,803.75 $355,000.00 $4,290,000.00 $4,290,000.00
15 4/1/2021 $71,857.50 $71,857,50 $0.00 $4,290,000.00 $4,290,000.00
16 10/1/2021 $441,857.50 $71,857.50 $370,000.00 $3,920,000.00 $3,920,000.00
17 4/1/2022 $65,660.00 $65,660.00 $0.00 $3,920,000.00 83,920,000.00
18 10/1/2022 $445,660.00 $65,660.00 $380,000.00 $3,540,000.00 $3,540,000.00
19 4/1/2023 $59,295.00 $59,295.00 $0.00 $3,540,000.00 $3,540,000.00
20 10/1/2023 $449,295.00 859,295.00 $390,000,00 $3,150,000.00 $3,150,000.00
21 4/1/2024 $52,762.50 $52,762.50 80.00 $3,150,000.00 $3,150,000.00
22 10/1/2024 $457,762.50 $52,762.50 $405,000,00 $2,745,000.00 $2,745,000.00
23 4/1/2025 $45,978.75 $45,978.75 $0.00 $2,745,000.00 $2,745,000.00
24 10/1/2025 $465,978.75 $45,978.75 $420,000.00 $2,325,000.00 $2,325,000.00
25 4/1/2026 $38,943.75 $38,943.75 $0.00 $2,325,000.00 $2,325,000.00
26 I0/1/2026 $473,943.75 $38,943.75 3435,000,00 $1,890,000.00 81,890,000.00
27 4/1/2027 $31,657.50 $31,657.50 $0.00 $1,890,000.00 $1,890,000.00
28 10/1/2027 $481,657,50 831,657.50 $450,000.00 $1,440,000.00 $1,440,000.00
29 4/1/2028 $24,120.00 $24,120,00 $0.00 $1,440,000.00 $1,440,000.00
30 10/1/2028 $489,120.00 $24,120.00 $465,000.00 $975,000.00 $975,000.00
31 4/1/2029 $16,331.25 $16,331.25 $0,00 $975,000.00 $975,000.00
32 10/1/2029 $496,331,25 $16,331.25 $480,000.00 $495,000.00 8495,000,00
33 4/1/2030 $8,291.25 $8,291.25 $0.00 $495,000.00 $495,000.00
34 10/1/2030 $503,291.25 $8,29L25 $495,000.00 $0,00 $0.00
$481,525,83
$509,542.50
$509,492.50
$509,107.50
$513,387.50
$512,165.00
$510,607.50
$513,715.00
$511,320.00
$508,590.00
$510,525.00
$511,957.50
$512,887.50
$513,315.00
$513,240.00
$512,662.50
8511,582.50
MIAMI DAILY BUSINESS REVIEW
Published Daily except Saturday, Sunday and
Legal Holidays
Miami, Miami -Dade County, Florida
STATE OF FLORIDA
COUNTY OF MIAMI-DADE:
Before the undersigned authority personally appeared
MARIA MESA, who on oath says that he or she is the
LEGAL CLERK, Legal Notices of the Miami Daily Business
Review f/k/a Miami Review, a daily (except Saturday, Sunday
and Legal Holidays) newspaper, published at Miami in Miami -Dade
County, Florida; that the attached copy of advertisement,
being a Legal Advertisement of Notice in the matter of
VILLAGE OF KEY BISCAYNE
MEETING - DECEMBER 3, 2013
in the XXXX Court,
was published in said newspaper in the issues of
11/21/2013
Afflant further says that the said Miami Daily Business
Review is a newspaper published at Miami in said Miami -Dade
County, Florida and that the said newspaper has
heretofore been continuously published in said Miami -Dade County,
Florida, each day (except Saturday, Sunday and Legal Holidays)
and has been entered as second class mail matter at the post
office in Miami in said Miami -Dade County, Florida, for a
period of one year next preceding the first publication of the
attached copy of advertisement; and affiant further says that he or
she has neither paid nor promised any person, firm or corporation
any discount, rebate, c.....' . 'on or refund for the purpose
of se publication in the said
MARIA MESA personally known to me
A,,,yPr,,,, B. THOMAS
'; arc's Notary Public - State of Florida
►� ; ft My Comm. Expires Nov 2, 2017
Commission # FF 034747
,r,';,;, , Bonded Through National Notary Assn.
VILLAGE OF KEY BISCAYNE
OFFICE OF THE VILLAGE CLERK
PUBLIC NOTICE
Notice is hereby given that the following ordinance will be considered on
Second Reading by the Village Council of the Village of Key Biscayne at a
meeting to be held on Tuesday, December 3, 2013 at 7:00 p.m., in the
Council Chamber, located at 560 Crandon Boulevard, Key Biscayne,
Florida:
AN ORDINANCE OF THE VILLAGE OF KEY BISCAYNE, FLORIDA
AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $6,575,000
OF STORMWATER UTILITY REFUNDING AND IMPROVEMENT
REVENUE BONDS OF THE VILLAGE OF KEY BISCAYNE, FLORIDA;
PROVIDING FOR A SUPPLEMENTAL RESOLUTION SETTING
FORTH THE DETAILS OF SAID BONDS; DETERMINING
COMPETITIVE BIDDING FOR SALE OF THE BONDS TO BE
IMPRACTICABLE; AUTHORIZING THE VILLAGE MANAGER TO
NEGOTIATE WITH PINNACLE PUBLIC FINANCE, INC. TO
PURCHASE THE BONDS; AND PROVIDING AN EFFECTIVE DATE.
The proposed Ordinance may be inspected by the public at the Office of
the Village Clerk. Interested parties may appear at the Public Hearing and
be heard with respect to the proposed Ordinance. Any person wishing to
address the Village Council on any item at this Public Hearing is asked to
register with the Village Clerk prior to that item being heard.
In accordance with the Americans With Disabilities Act of 1990, all
persons who are disabled and who need special accommodations to
participate in this proceeding because of that disability should contact the
Office of the Village Clerk, 88 West McIntyre Street, Suite 220, Key
Biscayne, Florida 33149, telephone number (305) 365-5506, not later
than two business days prior to such proceeding.
Should any person desire to appeal any decision of the Village Council
with respect to any matter to be considered at this meeting, that person
shall insure that a verbatim record of the proceedings is made including
all testimony and evidence upon which any appeal may be based
(F.S. 286.0105).
Comments of any interested party relative to this matter may be submitted
in writing and or presented in person at the public hearing
Conchita H. Alvarez, MMC
Village Clerk
11/21 - 13-4-159/2188277M