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Mr. Ziev advised that Gulfstream indicated they would be doing the transaction for a maximum fee of $17.50 per thousand dollar bond, and the final fee negotiated was $16.75 per bond. Mr. Ziev then reviewed in detail how they pay their counsel, the management fee and various other fees, plus expenses and risk, all of which totals to $109,042 which goes to Gulfstream and their attorneys. He stated that he personally has been working on this for a year and a half and felt their fees are reasonable. OMB Director Baird further explained the issuance costs which total up to $79,000. These costs include our Financial Advisor, whose fee will be roughly $19,000. He is paid based on the size of the bond issue, and it has to be over 5 million for him to be paid. For all the other issues he worked on, he just received expenses. Bond Counsel has been working on this with us for probably over 2Z years, and they receive $35,000. Director Baird listed the various other costs, including printing costs, ratings costs, the Paying Agent, etc., which add up to the $79,000, and advised that the insurance premium is roughly $112,000. Commissioner Scurlock believed these costs are a little higher than usual because it is a negotiated situation as opposed to a bid, and Director Baird noted that there is another factor. The Library issue, for instance, will cost a lot less because the term is a lot shorter. If you match our costs with those that other counties experience, he believed we are well within range. Commissioner Bird noted that, in other words, the major costs are $109,000 to Gulfstream, $79,000 issuance expenses, which include our Financial Advisor and Bond Counsel, and $112,000 insurance. Director Baird agreed and pointed out that we had a considerable savings on insurance between going non -rated and a Triple "A" rating. Over the life of the bond, we saved more than half a million based on that. 5 APR 21 1989 BOOK 6 PAGE 122