Broward County Commission Regular Meeting

A. MOTION TO OPEN Public Hearing relating to the issuance of Airport System Revenue Bonds, Series 2017 (AMT), in an aggregate principal amount not to exceed $400,000,000 for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended.

ACTION:  (T-11:13 AM)  Following public comment and Board discussion, the Board moved the agenda.  (Refer to minutes for full discussion.)
 
B. MOTION TO ADOPT Series Resolution No. 2017-493 of the Board of County Commissioners of Broward County, Florida, authorizing the issuance of the County’s not exceeding $400,000,000 Airport System Revenue Bonds, Series 2017 (AMT), for the purpose of providing funds, together with other available moneys, to pay a portion of the cost of the Series 2017 Project, such bonds to be issued as additional bonds under Resolution No. 2012-320, adopted on May 8, 2012, Amending and Restating Resolution No. 82-A-2, adopted on November 9, 1982, as previously amended and supplemented (the “ASR Bond Resolution”); determining the form and certain details of said bonds; delegating to the County Administrator the determination of certain matters and details concerning said bonds; designating certain Passenger Facilities Charges as "Available Revenues" and irrevocably committing the same for the payment of certain bonds; authorizing the negotiated sale of said bonds and the execution and delivery of a Purchase Contract; authorizing the distribution of a Preliminary Official Statement; authorizing the execution and delivery of an Official Statement; approving uncertificated, book-entry only registration of said bonds with The Depository Trust Company; delegating to the County Administrator authority to negotiate and obtain a municipal bond insurance policy to insure all or a portion of said bonds and to execute and deliver any related agreements; delegating to the County Administrator authority to negotiate and obtain a reserve product and to execute and deliver any related agreements; authorizing the execution and delivery of a Continuing Disclosure Certificate; providing for the application of bond proceeds; confirming the appointment of the Trustee, Bond Registrar And Paying Agent; providing for the appointment of a financial printer for the Preliminary Official Statement and the Official Statement; approving the issuance of said Bonds for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended; authorizing proper officials to do all things deemed necessary in connection with the issuance, sale and delivery of said bonds; and providing an effective date.

ACTION:  (T-11:22 AM)  Approved.  (Refer to minutes for full discussion.)
 
VOTE: 9-0.

Motion A: Section 147(f) of the Internal Revenue Code, known as the Tax Equity and Fiscal Responsibility Act (“TEFRA”), requires a public hearing prior to issuance of tax-exempt private activity bonds.

Motion B: The Broward County Board of County Commissioners (“Board”) must authorize the issuance of bonds.

Motion A: Ensures compliance with TEFRA.

Motion B: Authorizes the issuance of the bonds.

None.

THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE AVIATION DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTIONS.

On September 14, 2017 (Item No. 57), the Board approved an underwriting team for this bond financing, which includes Citigroup Global Markets Inc., as the senior managing underwriter (bookrunner), and Bank of America Merrill Lynch, Jefferies LLC, and Siebert Brandford Shank & Co. as co-managing underwriters. The financial advisor to this transaction is Frasca & Associates, LLC.

Motion A provides for a public hearing in accordance with TEFRA as it relates to the issuance of tax-exempt private activity bonds. This hearing has been properly noticed as evidenced by the Proof of Publication attached as Exhibit 1. Exhibit 2 includes the script for this hearing, which must be read into the Official Record by the presiding Hearing Officer.

Motion B authorizes the issuance of up to $400,000,000 for the Series 2017 Bonds (AMT), which will be used to fund terminal projects and other capital improvements at the Fort Lauderdale-Hollywood International Airport, as more specifically described in Exhibit A to the Resolution.

All the bonds will be issued as Additional Bonds under the Airport System Revenue Bond Resolution (ASR) and secured on parity with other outstanding ASR debt.

The County's Airport System Revenue Bonds are currently rated A+ by Standard & Poor's and A1 by Moody's. The County met with Standard & Poor's and Moody’s on September 27 and 28, respectively. The County expects to receive the ratings for this issue before the end of October.

George Tablack, CPA, Chief Financial Officer, (954) 357-7130