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Ord No 09-12-2125ORDINANCE NO. 09-12-2125 An Ordinance relating to budget; authorizing an increase of expense line item 201.1410319.7210 Debt Service Fund Interest Expense in the amount of $175,205 from Debt Service Fund Balance. WHEREAS, in 2011 the City entered into a loan agreement with SunTrust Bank titled Taxable Revenue Note, Series 2011; and, WHEREAS, FirstSouthwest Financial the City's financial advisors, provided an amortization schedule where the interest payment were to be paid once a year in October beginning in 2011. The budget for FY 2012 was based on the amortization schedule provided by FirstSouthwest Financial; and, WHEREAS, SunTrust Bank provided the official amortization schedule indicating the City shall pay the bank interest on the outstanding principal balance of the note on each April I and October 1, commencing October 1, 2011; and, WHEREAS, in anticipation of the official amortization schedule the City established the Debt Service Fund Balance, which is being applied to increase the line item. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT. Section 1. The City Manager is authorized to increase appropriations for expenditure account 201,1410,5 19,72 10, Debt Service Fund Interest Expense, in the amount of $175,205 from Debt Service Fund Balance, with an estimated balance of $915,846. Section 2. Severability. If any section, clause, sentence, or phrase of this ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall not affect the validity of the remaining portions of this ordinance. Section 3. Effective Date. This ordinance shall take effect immediately upon enactment. PASSED AND ENACTED this 7th day of August 2012. Zo ATTEST: APPROVED: ISTReading- 7/24/12 2 "d Reading- 8/7/12 COMMISSION VOTE: 5 -0 Mayor Stoddard: Yea Vice Mayor Liebman: Yea Commissioner Newman: Yea Commissioner Harris: Yea Commissioner Welsh: Yea . =TF * yk * irr WAIMMIWIPTIHIM ..•Lar•.- CITY OF SOUTH MIAMI • �NCOR9P27A7EOP • OFFICE OF THE CITY MANAGER INTER - OFFICE MEMORANDUM 2001 To. The Honorable Mayor, Vice Mayor and Memb rs of the City Commission From. Hector Mirabile, Ph.D, City Manager Date: July 11, 201.2 Agenda Item: 1/ Subject. Increasing the Debt Service Line Item. Ordinance: An Ordinance of Miami, Florida, r line item 201.14 the amount of $ in conflict and an the Mayor and City Commission of the City of South elating to budget;. authorizing an increase of expense 10.519.7210 Debt Service Fund Interest Expense in 175,205 from Debt Service Fund Balance, ordinances effective date. Background: In 2011 the City entered into a loan agreement with SunTrust Bank titled Taxable Revenue Note, Series 2011. FirstSouthwest Financial the City's financial advisors provided an amortization schedule where the interest payments were to be paid once a year in October beginning in 2011. The budget for FY 2012 was based on the amortization schedule provided by FirstSouthwest Financial. SunTrust Bank provided the official amortization schedule indicating the City shall pay the bank interest on the outstanding principal balance of the note on each April I and October I, commencing October I, 2011. In anticipation of the official amortization schedule the City performed its due diligence and established the Debt Service Fund Balance, which is being applied to increase the line item with the amount of $175,205. Attachments. FirstSouthwest amortization schedule. SunTrust Bank amortization schedule. Taxable revenue note, series 2011. Fiscal year 2011 budget schedule. FirstSouthvvesI:4* BOND DEBT SERVICE City of South Miami, Florida Taxable Revenue Note, Series 2011 SunTrust Bank ** Final Numbers I August 12, 2011 ** Period Ending Principal Coupon Interest Debt Service 10/01/2011 42,125.42 42,125.42 10/01/2012 3651000 4.550% 344,662.50 709,662.50 10/01/2013 385,000 4.550% 328,055.00 713,055.00 10/01/2014 400,000 4.550% 310,537.50 710,537.50 10/01/2015 410,000 4.550% 292,337.50 7020337950 10/01/2016 435,000 4.550% 273,682.50 708,682.50 10/01/2017 450,000 4.550% 253,890400 703,890.00 10/01/2018 4801000 4.550% 233,415.00. 713,415.00 10/01/2019 495,000 4.550% 211,575.00 706,575.00 10/01/2020 520,000 4.550% 189,05150 709,052.50 10/01/2021 540,000 4.550% 165,392.50 705,392.50 10/01/2022 5651000 4.550% 140,822.50 705,822.50 10/01/2023 590,000 4.550% 115,115900 705,115.00 10/01/2024 620,000 4.550% 88,270.00 7081270.00 10/01/2025 645,000 4.550% 60,060.00 705,060.00 10/01/2026 675,000 4.SS0% 30171150 705,71150 71575,000 31079,705.42 10,654,705.42 Aug 12, 2011 12:09 pm Prepared by First5outhwest (jgt) (Finance 6.020 south miami, (1:2011) Page 4 City of South Miami 4.55% ACTUAU360 Compound Period ........ 4 Exact Days Nominal Annual Rate ....: Effective Annual Rate ... Periodic Rate .............:. Daily Rate ....................... CASH FLOW DATA 4.550 % Undefined 0.0126 % 0401264% 05/03/2012 Page 1 Event Start Date Amount Number Period End Date 1 Loan 08/17/2011 71575,000.00 1 2 Payment 10/01/2011 Interest Only 1 3 Payment 04/01/2012 Interest Only 1 4 Payment 10/01/2012 365,000.00 1 Fixed Payment (+ Interest) 5 Payment 04/01/2013 Interest Only 1 6 Payment 10/01/2013 3851000.00 1 Fixed Payment (+ Interest) 7 Payment 04/0112014 Interest Only 1 8 Payment 10/01/2014 400,000.00 1 Fixed Payment (+ Interest) 9 Payment 04/01/2015 Interest Only 1 10 Payment 10/01/2015 4109000.00 1 Fixed Payment (+ Interest) 11 Payment 04/0112016 Interest Only 1 12 Payment 10/01/2016 435,000.00 1 Fixed Payment (+ Interest) 13 Payment 04/01/2017 Interest Only 1 14 Payment 10/01/2017 450,000.00 1 Fixed Payment (+ Interest) 15 Payment 04/01/2018 Interest Only 1 16 Payment 10/01/2018 480,000.00 1 Fixed Payment (+ Interest) 17 Payment 04/01/2019 Interest Only 1 18 Payment 10/01/2019 495,000.00 1 Fixed Payment (+ Interest) 19 Payment 04/01/2020 Interest Only 1 20 Payment 10/01/2020 520,000.00 1 Fixed Payment (+ Interest) 21 Payment 04/01/2021 Interest Only 1 22 Payment 10/01/2021 5401000.00 1 Fixed Payment (+ Interest) 23 Payment 04/01/2022 Interest Only 1 24 Payment 10/01/2022 565,000.00 1 Fixed Payment (+ Interest) 25 Payment 04/01/2023 Interest Only 1 26 Payment 10/01/2023 590,000000 1 Fixed Payment (+ Interest) 27 Payment 04/01/2024 Interest Only 1 05/03/2012 Page 2 City of South mami 4.55% ACTUAU360 CASH FLOW DATA Event Start Date Amount Number Period End Date 28 Payment 10/01/2024 Fixed 29 Payment 30 Payment Fixed 31 Payment 32 Payment Fixed Payment (+ Interest) 04/01/2025 10/01/2025 Payment (+ Interest) 04/01/2026 10/01/2026 Payment (+ Interest) 620,000.00 Interest Only 645,000.00 Interest Only . 675,000.00 AMORTIZATION SCHEDULE - US Rule, 360 Day Year Fi 1 1 1 1 Date Payment Interest Principal Balance Loan 08/17/2011 165,850.03 165,850.03 0500 71575,000.00 1 10/01/2011 43,082.81 43,082.81 0000 71575,000900 2011 Totals 43,082.81 43,082.81 0000 2 04/01/2012 175,203.44 175,203.44 0000 73575,000.00 3 10/01/2012 5402203.44 175120144 365,000.00 7,210,000.00 2012 Totals 715,406.88 350,40638 365,000.00 4 04/01/2013 165,850.03 165,850.03 0500 7,210,000.00 5 10/01/2013 551,761.29 166,761.29 385,000.00 6,8251000.00 2013 Totals 717,611.32 332,61132 3851000.00 6 04/01 /2014 156,993.96 156,993296 0400 618255000.00 7 10/01/2014 557,856456 157,856.56 4001000.00 6,425,000600 2014 Totals 714,850052 314,850.52 400,000.00 8 04/01/2015 147,792.85 147,792.85 0000 6,425,000.00 9 10/01/2015 558,604490 1481604.90 410,000600 6,015,000400 2015 Totals 706,397.75 296,397.75 410,000.00 10 04/01/2016 139,121.94 1391121.94 0800 61015,000.00 11 10/01/2016 574,121.94 1391121.94 4353000.00 535801000.00 2016 Totals 713124188 278124188 435,000600 12 04/01/2017 128,355.50 128,355.50 0000 505801000.00 13 10/01/2017 579106015 129106015 450,000000 51130,000000 2017 Totals 707141625 257,416.25 4501000.00 14 04/01/2018 1181004.25 118,004.25 0600 51130,000.00 15 10/01/2018 598,652.63 118,652.63 480,000400 41650,000.00 2018 Totals 716,656.88 236,656.88 4801000.00 0 City of South Miami 16 17 2019 18 19 2020 Date 04/01/2019 10/01/2019 Totals 04/01/2020 10/01/2020 Totals 20 04101/2021 21 10/01/2021 2021 Totals 22 04/01/2022 23 10/01/2022 2022 Totals 24 25 2023 26 27 2024 04/01/2023 10/01/2023 Totals 04/01/2024 10/01/2024 Totals 28 04/01/2025 29 10/01/2025 2025 Totals 30 04/01/2026 31 10/0112026 2026 Totals 05/03/2012 Page 3 4.55% ACTUAU360 Payment Interest Principal Balance 106,962.92 602,550.63 709,513.55 96,101.69 616,101.69 712,203.38 83,615.10 624,074.52 707,689.62 71,193.60 636,584.77 707,778.37 58,197.03 648,516.79 706,71 3.82 44,870.58 664,870.58 709,741.16 30,363.67 675,530.50 705,894.17 15,526.88 690,612.19 706,139.07 106,962.92 107,550.63 214,513.55 96,101.69 96,101.69 192,203.38 83,615.10 84,074.52 167,689.62 71,193.60 71,584.77 142,778.37 58,197.03 58,516.79 116,713.82 44,870.58 44,870.58 89,741.16 30,363.67 30,530.50 60,894.17 15,526.88 15,612.19 31,139.07 Grand Totals %7001339.43 31125,339.43 0.00 495,000.00 495,000.00 0.00 520,000.00 520,000.00 0.00 540,000.00 540,000.00 0.00 565,000.00 565,000.00 0.00 590,000.00 590,000.00 0.00 620,000.00 620,000.00 0.00 645,000,00 645,000.00 0.00 675,000.00 675,000.00 7,575,000.00 41650,000.00 4,155,000000 41155,000.00 3,635,000.00 316359000.00 310951000.00 3,095,000.00 21530,000.00 21530,000.00 1,94000.00 1,940,000.00 11320,000.00 1,320,000.00 675,000.00 675,000.00 0.00 TAXABLE REVENUE NOTE, SERIES 2011 CITY OF SOUTH MIAMI, FLORIDA (the "Issuer "), a municipal corporation of the State of Florida created and existing pursuant to the Constitution and the laws of the State of Florida, for value received, promises to pay, but solely from the sources hereinafter provided, to the order of SunTrust Bank or registered assigns (together with any other registered owner of this Note; hereinafter,' the "Bank "), the principal sum of Seven Million Five Hundred Seventy -Five Thousand and No /100 Dollars ($7,575,000) or such lesser amount as shall be outstanding ` hereunder; together with interest on the principal balance .outstanding at the Interest Rate (defined below) (subject to adjustment as hereinafter provided), .calculated based upon actual days elapsed in a year of 360-days consisting of twelve 30 7-day months, such amounts to be payable as provided herein. This Note is issued pursuant to a Ordinance No. 22-11 -2095 of the Issuer enacted on August 9, 2011 (the "Ordinance ") and in conjunction with a Loan Agreement, dated as of August 17, 2011, between the Issuer and the Bank (the "Loan Agreement ") and is subject to all the terms. and conditions of the Loan Agreement. All terms used herein in capitalized form and.not otherwise defined herein shall have the meanings ascribed thereto, or referenced, in the Loan Agreement. In addition, the following terms shall have the meanings set forth below: "Change in Law". means the occurrence, after 'the date of this Note, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any. change. in law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance. of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd -Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directive thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated' by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or, pursuant to the accord commonly referred to as "Basel III," by the United States or foreign regulatory authorities, shall in.each case be. deemed to be a "Change in Law," regardless of the date enacted, adopted or issued.. "Governmental Authority"' shall mean the government of the. United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank' or other entity exercising executive,- legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. "Interest Rate" means a per annum rate equal to 4.55 %, and subject to adjustment in accordance with the terms set forth herein. Principal* of and interest on this Taxable Revenue Note, Series 2011 (the "Note ") are payable in immediately available funds constituting lawful money of the United States of America at the Principal Office or such other place as the Bank may designate in writing to the Issuer. The Issuer shall pay the Bank interest on the outstanding principal balance of this Note in arrears, on each April I and October 1, commencing October 1, 2011. The principal amount of this Note shall be payable in annual installments in the amounts and on the dates set forth on Schedule A hereto, commencing on October 1, 2012, and with the final principal installment payable October 1, 2026. If any date for the payment of principal or interest is not a Business Day, such payment shall be due on the next succeeding Business Day. All payments by the Issuer pursuant to this Note shall apply first to accrued interest, then to other charges due the Bank, and the balance thereof shall apply to the principal sum due, provided, however, in ari Event of Default, payment shall be applied in accordance with Section 6.02 of the Loan Agreement. If, after the date of this Note, the Bank shall have reasonably determined that .a Change in Law shall have occurred that has or would have the effect of reducing the rate of return on the Bank's capital, on this Note or otherwise, as a consequence of its ownership of this Note to a level below that which the Bank could have achieved but for such adoption, change or compliance (taking into consideration the Bank's policies with respect to capital adequacy) by an amount deemed by the. Bank to be material, then Irom time to time, promptly upon demand by' the Bank, the Issuer shall, and hereby agrees to, pay the Bank such additional amount or amounts as will compensate the Bank for such reduction, provided that at such time the Bank shall generally be assessing such amounts on a non - discriminatory basis against borrowers having loans similar'to the loan hereunder. A certificate of the Bank claiming compensation under this paragraph and setting'forth the additional amount or.amounts to be paid to it hereunder shall be conclusive absent manifest error. In determining any such amount, the Bank may use any reasonable averaging and attribution methods. The Bank shall notify the Issuer in writing of any adjustments pursuant to this paragraph. Payments'of principal or interest hereunder not paid within ten (10) days of the due date shall be subject to a late payment charge of two percent (2 %) of the amount of the late payment and any amount not paid within thirty (30) days of when due shall bear interest at a rate equal to the Interest Rate otherwise due hereunder plus four percent (4 %) per annum until paid, but in no event shall the irate of interest payable hereunder exceed the maximum lawful rate. Notwithstanding any provision of this paragraph or any other provision hereof to the contrary, in no event shall the Interest Rate on this-Note exceed'the maximum rate permitted by applicable law. In addition to the payments of principal described on Schedule A hereto, the principal amount of this Note may be prepaid in whole or in part on any principal payment date at the option of the Issuer upon at least three (3) Business Days' prior written notice by the Issuer to the Bank specifying the amount of the prepayment, such prepayment to be in an amount equal to the principal amount to be prepaid plus accrued interest thereon to the date of prepayment and, in the event that the Issuer, pursuant to this paragraph, optionally prepays in any calendar year an aggregate of more than fifteen percent (15 %) of the principal amount of this Note outstanding on January I of such calendar year, the Issuer, at the time of such prepayment, shall pay to the Bank .a redemption premium equal to the present value of the difference between (1) the amount that would have been realized by the Bank on the prepaid amount for the remaining term of the loan at the Federal Reserve H.15 Statistical Release rate for fixed -rate payers in interest rate swaps for a term corresponding to the term of this Note, interpolated to the nearest month, if necessary, that was in effect three Business Days prior to the origination date of this Note and (2) the amount 2 that would be realized by the Bank by reinvesting such prepaid funds for the remaining term of the loan at the Federal Reserve H.15 Statistical Release rate for fixed -rate payers in interest rate swaps, interpolated to the nearest month, that was in effect three Business Days prior to the loan repayment date; both discounted at the same interest rate utilized in determining the applicable month in clause (2) above. Should the present value have no value or a negative value, the Issuer may repay with no additional fee. Should the Federal Reserve no longer release rates for fixed" rate payers in interest rate swaps, the Bank may substitute the Federal Reserve H.15 Statistical Release with another similar index. The Bank shall provide the Issuer with a written statement explaining the calculation of the premium due, which statement shall, in absence of manifest error, be conclusive and binding. All optional prepayments. pursuant to this paragraph shall be applied against the payment of principal set forth on Schedule A in inverse order of the due dates of the payments shown thereon. The Issuer to the extent permitted by law hereby waives presentment, demand, protest and notice of dishonor. This Note is payable solely from the Pledged Funds to the extent provided in the Loan Agreement and subject to the pledge of the Pledged Funds as more specifically provided in the Ordinance and the Loan Agreement. Notwithstanding any other provision of this Note, the Issuer is not and shall not be liable for the payment of the principal of and interest on this Note or otherwise monetarily liable in connection herewith from any property other than as provided in the Loan Agreement and. the Ordinance. NOTWITHSTANDING ANYTHING HEREIN OR IN THE LOAN AGREEMENT OR THE ORDINANCE TO THE CONTRARY, THIS NOTE AND THE INTEREST HEREON DOES NOT AND SHALL NOT CONSTITUTE A GENERAL INDEBTEDNESS OF THE ISSUER BUT SHALL .BE PAYABLE SOLELY FROM THE MONEYS AND SOURCES DESIGNATED THEREFOR PURSUANT TO THE LOAN AGREEMENT AND THE ORDNANCE. NEITHER THE FAITH AND CREDIT NOR ANY AD VALOREM TAXING POWER OF THE ISSUER IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THIS NOTE OR OTHER COSTS INCIDENTAL HERETO. All terms, conditions and provisions of the Loan Agreement are by this reference thereto incorporated herein as a part of this Note. This Note may be exchanged or transferred but only as provided in the Loan Agreement. It is hereby certified, recited and declared that all acts, conditions and prerequisites required to exist, happen'and be performed precedent to and in the execution, delivery and the issuance of this Note do exist, have happened and have been performed in due time, form and manner as required by law, and that the issuance of this Note is in full compliance with and does not exceed or violate any constitutional or statutory limitation. [Remainder of page intentionally left blank] Vic] IN WITNESS WHEREOF, the Issuer has caused this Note to be executed in its name as of the date hereinafter set forth. The date of this Note is August �� Ol L (SEAL) ATTEST: � s ►it By: #10529384_vl 622301 -87 12 CITY OF SOUTH MIAMI, FLORIDA By; Z04e 7 w WC52;�Lo City Manager READ AND APPROVED AS TO FORM AND LEGALITY: �-► i i i i i i i i i Payment Date October 1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 TOTAL SCHEDULE A Principal Amount $ 365,000 385,000 400,000 410,000 435,000 450,000 480,000 495,000 520,000 540,000 565,000 590,000 620,000 645,000 675,000 $7,575,000 1 J W N N N N Q 0 Z to W N 1. a N ro a O: w S E Q f w x F �• O V b N:. 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O YZ� aW 0 ca i MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Miami -Dade County, Florida STATE OF FLORIDA COUNTY OF MIAMI -DADE: Before the undersigned authority personally appeared MARIA MESA, who on oath says that he or she is the LEGAL CLERK, Legal Notices of the Miami Daily Business Review f /k/a Miami Review, a daily (except Saturday, Sunday and Legal Holidays) newspaper, published at Miami in Miami -Dade County, Florida; that the attached copy of advertisement, being a Legal Advertisement of Notice in the matter of CITY OF SOUTH MIAMI PUBLIC HEARING - AUGUST 7, 2012 in the XXXX Court, was published in said newspaper in the issues of 07/27/2012 Affiant further says that the said Miami Daily Business Review is a newspaper published at Miami in said Miami -Dade County, Florida and that the said newspaper has heretofore been continuously published in said Miami -Dade County, Florida, each day (except Saturday, Sunday and Legal Holidays) and has been entered as second class mail matter at the post office in Miami in said Miami -Dade County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he or she has neither paid nor promised any person, firm or corporation any discount, rebate on or refund for the purpose of securing G�rs�`dveMsement f publication in the said to and subscribed before me this 27 day of JULY , A.D. 2012 (SEAL) MARIA MESA personally known to me 3, r v v ' °'y °� -. v Y Yil A. Notary Public State of Florida % Cheryl H Manner �° My Commission EE 189528 22!r rlo Expires 07/18/2016