| Special Meeting/Workshop - No Division Assigned |
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Title: Recommendation: I recommend the School Board approve the extension of the Standby Purchase Agreements with Dexia Credit Local for the COP Series 2002B and 2003B. Description: · The Series 2002B and 2003B Certificates of Participation were issued as Variable Rate Demand Obligations. · With this type of debt, a standby purchase agreement is required. Basically the certificate holders have the right to return the certificates each week. The remarketing agent is responsible for finding a buyer for the certificates. If buyers cannot be located, the issuer of the Standby Repurchase Agreement is obligated to provide the funds necessary to purchase the certificates. · The original agreement was approved as part of the original issuance of the debt based on a bid process managed by the District’s Financial Advisor, PFM. The agreements were for a period of five years which is the industry standard. · The agreement for the 2002B transaction, which will expire on March 20, 2007, was for 16 basis points for a five year period. The agreement for the 2003B transaction, which will expire on June 26, 2008, was for 20 basis points for a five year period. These costs are budgeted annually as part of the COP lease payment budget within the capital budget and Five Year Plan. · The terms of the new agreement will take affect for both transactions on March 20, 2007 and will expire on March 20, 2012 with a new price of 12 basis points. The total cost of the service over the five years will be $1,526,269. This is a price reduction of 25% over the 2002B agreement and 40% of the 2003B agreement or an average reduction of 34% with a net savings of $772,630. Financial Impact: For Additional Information, contact: Joseph M Moore (moorej@palmbeach.k12.fl.us) Michael J Burke (burkem@palmbeach.k12.fl.us) Leanne Evans (evansl@palmbeach.k12.fl.us) Attachments (list):
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