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Action Item
DATE: Monday, July 18, 2011
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS

Approve Conversion of Interest Rate Period for Certificates of Participation (COPs), Series 2008A from a Daily Rate, to SIFMA Index Rate Pursuant to a Private Placement with JP Morgan Chase Bank and Extension of Direct Pay Letter of Credit for Certificates of Participation, Series 2004C with Wells Fargo Bank, NA (Business Division)

  1. Adopt the Board Certificate Resolution authorizing conversion of interest rate period from a daily rate to a SIFMA index rate for the 2008A COPs and the private placement thereof with JP Morgan Chase Bank and extension of Direct Pay Letter of Credit for 2004C COPs with Wells Fargo Bank.
  2. Recess as members of the School Board and convene as the School Board Leasing Corporation.
  3. Adopt the Corporate Resolution authorizing conversion of interest rate period from a daily rate to a SIFMA index rate for the 2008A COPs and the private placement thereof with JP Morgan Chase Bank and extension of Direct Pay Letter of Credit for 2004C COPs with Wells Fargo Bank, NA.
  4. Adjourn as members of the School Board Leasing Corporation and reconvene as the School Board.
EXECUTIVE SUMMARY
At the meeting on June 14, 2011, the School Board approved the selection of Wells Fargo to provide a letter of credit or direct placement of notes for the 2004C COPs and the selection of JP Morgan Chase to provide a direct purchase of the 2008A COPs.  Based on current market conditions, the extension of the letter of credit for the 2004C COPs is in the best interest of the district.  At that time, it was stated we would return to the School Board meeting on July 18, 2011, for final approval with the necessary documents. 

The Resolution approves the forms of the necessary financing documents and authorizes the Chair and Superintendent to take all necessary action, including the provision of required notices, to accomplish the conversion of the 2008A COPs and the extension of the letter of credit for the 2004C COPs. 

Mr. John Stokes, Bond Counsel with Nabors, Giblin and Nickerson, P.A., is present to assist the Board in this endeavour.
STRATEGIC OBJECTIVES
• Align financial resources to support the district’s strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
There will be issuance costs estimated not to exceed $250,000 per issue and an increase of less than $50,000 per year in annual costs.  These amounts will be included in the transfer from Local Capital Millage to the Debt Service fund.
EVALUATION
SUBMITTED BY:  Steve Brady, Assistant Department Manager for Cash Management, Budget
Susan Garcia   Gretchen Saunders
Manager of Services and Support, Budget
(813) 272-4064		   Chief Business Officer
(813) 272-4270
    A 5.32
Hillsborough County Public Schools (Florida) * Mtg.#20110718_467 (Board Meeting) * Section A Item# 5.32