Transcript

AGENDA

MEETING OF THE
STATE BOARD OF ADMINISTRATION
(Contact Person: Dorothy Westwood - (850) 488-4406)
212 KNOTT BUILDING
November 14, 2001

1. APPROVAL OF MINUTES OF MEETING HELD OCTOBER 30, 2001.
(Att. #1)

2. APPROVAL OF FISCAL DETERMINATION OF AN AMOUNT NOT EXCEEDING $11,515,000 TAX EXEMPT FLORIDA HOUSING FINANCE CORPORATION HOUSING REVENUE BONDS, 2001 SERIES (SERIES TO BE DESIGNATED) (MISSION BAY APARTMENTS):

The Florida Housing Finance Corporation has submitted for approval as to fiscal determination a proposal to issue an amount Not Exceeding $11,515,000 Tax Exempt Florida Housing Finance Corporation Housing Revenue Bonds, 2001 Series (series to be designated) (the Bonds) for the purpose of financing the construction and equipping of a multifamily residential rental development located in Brevard County, Florida (Mission Bay Apartments).

The Bonds shall not constitute an obligation, either general or special, of the State or of any local government thereof; neither the State nor any local government thereof shall be liable thereon. Neither the full faith, revenue, credit nor taxing power of the State of Florida, or any local governments thereof shall be pledged to the payment of the principal of, premium (if any), or interest on the Bonds. The Bonds shall be payable as to principal, premium (if any), and interest solely out of revenues and other amounts pledged therefor.

RECOMMENDATION: A study of this proposal and of estimates of revenue and other available moneys expected to accrue indicate that the issue meets the requirements for the fiscal determination required by Section 420.509, Florida Statutes, as stated in Article VII, Subsection 16(c) of the revised Constitution of 1968, and the Executive Director recommends that the State Board of Administration of Florida (the Board) approve the fiscal determination thereof. It is further recommended that, pursuant to the fiscal determination requirements of Subsection 16(c) of Article VII of the revised Constitution of 1968, the Board find and determine that in no State fiscal year will the debt service requirements of the Bonds proposed to be issued and all other bonds secured by the same pledged revenues exceed the pledged revenues available for payment of such debt service requirements. The Board has relied upon information from others but has not

STATE BOARD OF ADMINISTRATION
AGENDA
November 14, 2001
Page two

independently verified the accuracy or completeness of such information. The Board does not assume any responsibility for, and makes no warranty (express or implied) with respect to any other aspect of this bond issue except for fiscal determination. (Att. #2)

3. CONSIDERATION OF RECOMMENDATIONS BY SBA STAFF AND THE SBA ADVISORY COUNCILS REGARDING THE ROLE OF BUNDLED PROVIDERS IN THE PEORP:

There are two attachments as backup to this item. First is the SBA staff report containing our analytical work and recommendations, which is attached.

Second is the recommendation of the Joint Advisory Councils, which are scheduled to meet on November 8th. Their comments will be provided as soon as possible after their meeting.

These are the staff recommendations:

1. None of the bundled providers have made a persuasive case that they offer value in a total program enhancement sense and, therefore, none should be selected.

2. If the Trustees wish to select "limited value adding" BP's, then extensive negotiations should occur before finalizing these selections. The four firms that might qualify are Nationwide, ING Aetna, Prudential and VALIC, all in the moderate services category. If negotiations are fruitful, and they will be complex and difficult, then some or all of these firms could be included in PEORP.

3. Negotiations should begin immediately with SAFECO to determine whether or not their self-directed brokerage window can be modified to meet our concerns and thereby serve as an offering in the program. (Att. #3)