Broward County Commission Regular Meeting

MOTION TO ADOPT Resolution No. 2018-470 of the Board of County Commissioners of Broward County, Florida relating to the issuance of one or more series of Broward County, Florida Industrial Development Revenue Bonds (Florida Power & Light Company Project) in an aggregate principal amount not exceeding $100,000,000 for the purpose of making a loan or loans of funds to Florida Power & Light Company in order to finance all or a portion of the cost of acquisition, construction and equipping of certain wastewater/sewage facilities and solid waste disposal facilities, including functionally related and subordinate facilities, of Florida Power & Light Company located at its Dania Beach Clean Energy Center; authorizing a delegated negotiated sale of such bonds; authorizing the use of an official statement in connection with such sale or sales; providing certain terms and details of said bonds; authorizing the execution and delivery of underwriting agreements, a trust indenture, the bonds, a loan agreement and all other related instruments including, without limitation, a tax certificate and agreement; appointing The Bank of New York Mellon Trust Company, N.A. as Trustee; making certain covenants, agreements and findings in connection with the issuance of the bonds; and providing for an effective date for this resolution.

(Commissioner Holness pulled this item.)

ACTION:  (T-10:39 AM)  Approved.  (Refer to minutes for full discussion.)  (See Yellow-Sheeted Additional Material, dated October 23, 2018, submitted at the request of Commissioner Holness.

VOTE: 9-0.

Florida law and Section 18.62 of the Broward County Administrative Code require that the Board of County Commissioners of Broward County, Florida (the “Board”), authorize the issuance of bonds and other related matters prior to bond issuance. A public hearing on the issuance of the bonds was held by the Board on September 25, 2018, and at such meeting the Board gave its approval of the bonds for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended. The approval of the financing documents related to the issuance of such bonds was subject to subsequent proceedings of the Board, which is accomplished by the adoption of this Resolution.

Ensures compliance with the requirements of Florida law and Section 18.62 of the Broward County Administrative Code by approving the issuance of the bonds; provides for the delegated negotiated sale of the bonds, approves the financing documentation and other related matters.

None.

THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT AND THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.
 

Florida Power and Light Company (“FPL”) is the primary electrical utility in Broward County. It is currently a wholly-owned subsidiary of NextEra Energy, Inc., a publicly traded company listed on the New York Stock Exchange. FPL seeks tax-exempt financing in an amount not to exceed $100 million dollars for financing the cost of acquisition, construction and equipping of certain wastewater/sewage facilities and solid waste disposal facilities, including functionally related and subordinate facilities (collectively, the “Project”), of FPL at its Dania Beach Clean Energy Center in Broward County. FPL estimates an annual payroll of $2.3 million and $297 million ad valorem tax revenues generated over the 40-year life of the plant.
 

The motion provides for the delegated negotiated sale of the bonds, approves the forms of Underwriting Agreement (Exhibit A to the Resolution), Official Statement (Exhibit B to the Resolution), Loan Agreement (Exhibit C to the Resolution) and Trust Indenture (Exhibit D to the Resolution) and other related matters. The bond proceeds will be used for the purpose of making a loan of funds to the company to finance the cost of the project. The bonds will be payable solely from revenues and proceeds derived from the company’s operations, and will not constitute a debt, liability, or obligation of the County.

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