Ord. No. 01-01-1732ORDINANCENO.1-01-1732
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI,FLORIDA,RELATING TO MATCHING FUNDS FOR
SAFE-NEIGHBORHOOD PARK GRANT FOR CONSTRUCTION OF AMULTI-
PURPOSE CENTER,AUTHORIZING THE NEGOTIATION OFA LOAN IN AN
AGGREGATE AMOUNTNOT TO EXCEED $1,500,000 FROM THE FLORIDA
MUNICIPAL LOAN COUNCIL;APPROVING THE EXECUTION AND
DELIVERY OF A LOAN AGREEMENT WITH THE FLORIDA MUNICIPAL
LOAN COUNCIL;APPROVING THE EXECUTION AND DELIVERY OFA
BOND PURCHASE AGREEMENT;APPROVING THE EXECUTION AND
DELIVERY OFA DISCLOSURE AGREEMENT;PROVIDING CERTAIN
OTHER MATTERS IN CONNECTION WITH THE MAKING OF SUCH LOAN;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS,participating governmental units(the"Members")have created the Florida
Municipal Loan Council (the "Council")pursuant toa certain Inter-local Agreementand pursuant to
Chapter 163,PartI,Florida Statutes,forthe purpose of issuingitsbondstomake loans to
participating governmentalunitsfor qualified projects;and
WHEREAS,theCity of South Miami,Florida,a municipal corporation,isduly created and
existing pursuant tothe Constitution and laws of theState of Florida (the "State");and
WHEREAS,theCity finds and declares thatthereisa substantial needforthe financing or
refinancing of qualifying projects permitted by Florida Statutes and theState Constitution;and
WHEREAS,theCity possesses the ability to finance such projects onitsown,but has
determined that a pooled financing program involving a limited number of local governmental units
which regularly undertake projects requiring significant debt financing within the State of Florida
would provide for lowcost financing or refinancing of such projects through economies of scale,
administrative support and access to expertise in accessing the capital markets;and
WHEREAS,itis anticipated that the benefits ofa pooled financing bytheCitywitha limited
number ofgovernmental units through the Florida Municipal Loan Council maybe obtained through
promises to repay loans under the program and supported bya general covenant to budget and
appropriate forsuch purpose,bya specific pledge oftaxesor revenues orbya general obligation;and
WHEREAS,by pooling the respective financial needs of these certain various local
governmental units,theCitywillbe able to access additional marketsandexpectsto receive the
benefits oflowerinterestratesonmorefavorabletermsassociated with suchalargescalefinancing
withsuchbenefitsbeingobtainedforandinuringtotheCity;and
WHEREAS,the Council isinthe process of issuing its Florida Municipal Loan Council
Revenue Bonds,Series 2001A (the"Bonds")andisseekingtomakeloans(the"Loans")to
governmentalunits;and
WHEREAS,itisherebydeterminedthataneedexiststo borrow fundstofinancethe
construction ofPhase II ofthe Murray Park Multi-Purpose Center aspreviouslyapprovedbytheCity
Commission;and
WHEREAS,itis determined tobeinthebest interest of the Cityto borrow fundsfromthe
Councilfromthe proceeds of theBondstofinancethecost of theProject.
NOW THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI,FLORIDA as follows:
SECTION 1.AUTHORITY.ThisOrdinanceis adopted pursuant to Chapter 166,Florida
Statutes and other applicableprovisions of law.
SECTION 2.PROJECT.Therefinancingand/orfinancing oftheconstruction ofthe multi
purpose center ishereby approved.
SECTION 3.NEGOTIATED LOAN.Duetothecomplicatednature ofthefinancingand
theability oftheCounciltoaccessadditionalmarketsandfortheCitytoreceivethebenefits oflower
interestratesandissuancecosts,itisherebydeterminedthatitisinthebestinterest oftheCitythat
theLoantotheCitybemadefromtheproceeds of theBonds,asopposedtotheCityborrowing
funds pursuant toapublicsale.
SECTION 4.LOAN AMOUNT.Theamount of theLoan of theCityevidencedbythe
LoanAgreement shall notexceed $1,500,000.SuchLoan shall bemadeatadiscountwhich shall
include apro-rataportion of costs of issuance incurred bytheCounciltogetherwithapro-rata
portion of areservefundsuretycostandtheLeague ofCities administrative feesandother ongoing
costsand shall bearinterestand shall be repayable accordingtothetermsandconditionssetforthin
theLoanAgreementauthorizedpursuanttoSection5 hereof withsuchchanges,insertionsand
omissions asmaybeapprovedbytheCity Manager.Theredemption provisions,ifany,relatingto
suchLoanshallbeasprovidedintheLoanAgreement.
SECTION 5.AUTHORIZED OFFICERS.TheCityManagerisherebyauthorizedand
directedtoexecuteanddeliveraLoanAgreementtoevidencetheLoan,tobeenteredintobyand
between theCityand the Council.
Further,theCityManagerisherebyauthorizedanddirectedtoexecuteanddelivera
Continuing Disclosure Agreementconcerningcompliancewithexistingor proposed rules of the
SecuritiesandExchangeCommissionconcerningcontinuingdisclosurebytheCity,tobeenteredinto
byand between the Underwriter,theCityandtheCouncil.
2
Ord.No.1-01-1732
SECTION 6.RATES.The City Manager is hereby authorized to approve thefinal rates of
interest onthe Bonds,andthe redemption provisionsthereof,ifany,on behalf ofthe Borrower.The
City Manager is hereby authorized and directed to execute and deliver a Bond Purchase Agreement,
tobe entered intobyand between the Underwriter,theCityand the Council.
SECTION 7.INDENTURE.TheCityhereby acknowledges and consents totheBonds
beingissued pursuant toa Trust Indenture (the AIndenture)tobe executed bytheCouncilandabank
or trust company tobe selected as Trustee,bytheCouncil.
SECTION 8.OTHER INSTRUMENTS.TheCity Manager isherebyauthorizedand
directedtoexecuteanyandallcertificationsorotherinstrumentsordocumentsrequiredbythis
Resolution,theLoan Agreement,theTrustIndentureoranyotherdocumentrequiredbythe Council
asa prerequisite or precondition to making the Loan (including butnot limited tothe execution of all
taxdocumentsrelatingtothetaxexemptstatus of theLoan),andanysuchrepresentationsand
agreementsmadetherein shall bedeemedtobemadeonbehalfoftheCity.All actiontakentodate
bytheCityManagerinfurtheranceofthe issuance oftheBondsandthemaking oftheLoanis hereby
approved,confirmedandratified.
SECTION 9.ADDITIONAL INFORMATION.The Loan Agreement shallnotbe
executedand delivered unlessand until theCityhas received allinformationrequiredbySection
218.385,Florida Statutes.
SECTION 10.ADDITIONAL TERMS.Pursuanttosubsequentresolution,theCitymay
establishsuchadditionaltermsasitmaysodeterminetobeinthebestinterests of theCity.
SECTION 11.EFFECTIVE DATE.This Ordinance shall take effect immediately uponits
adoption.
PASSED AND ADOPTED this 16th day of January,2001.
ATTEST:
CITY CLERK
lsl Reading-12/19/00
2nd Reading-1/16/01
READ AND APPROVED AS TO FORM:
--A-i
CITY ATTORNEY
/£><£&/)4yts
MAYO!
COMMISSION VOTE:
Mayor Robaina:
Vice Mayor Feliu:
Commissioner Wiscombe:
Commissioner Bethel:
Commissioner Russell:
Ord.No.1-01-1732
'-t^a
5-0
Yea
Yea
Yea
Yea
Yea
CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
To:Mayor andCity Commission
From:Charles D.Scurr a \ma
City Manager A(]h )C^
(Jjo
Date:Jan uary 12,^001
Re:AGENDA ITEM #
Commission meeting "to,-U,200
MultipurposeCenterFunding
*********************************>|c****************!it*****************
REQUEST
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI,FLORIDA,RELATING TO MATCHING FUNDS
FOR SAFE-NEIGHBORHOOD PARK GRANT FOR CONSTRUCTION OF A
MULTI-PURPOSE CENTER,AUTHORIZING THE NEGOTIATION OF A
LOAN INAN AGGREGATE AMOUNT NOT TO EXCEED $1,500,000 FROM
THE FLORIDA MUNICIPAL LOAN COUNCIL;APPROVING THE
EXECUTION AND DELIVERY OF A LOAN AGREEMENT WITH THE
FLORIDA MUNICIPAL LOAN COUNCIL;APPROVING THE EXECUTION
AND DELIVERY OFA BOND PURCHASE AGREEMENT;APPROVING
THEEXECUTIONANDDELIVERYOFADISCLOSURE AGREEMENT;
PROVIDING CERTAIN OTHER MATTERS IN CONNECTION WITH THE
MAKING OF SUCH LOAN;AND PROVIDING AN EFFECTIVE DATE.
BACKGROUND &ANALYSIS
In 1998,the City was awarded a grant of about $1,500,000,by the Safe Neighborhood Park Agency to
construct a multi-purpose centerinour Murray Park.Thefirstphaseofthe construction isalmost
completed andweare about to begin Phase II.Release ofthegrant funds requires adollarfor dollar
match,and contingent upontheCity utilizing its own match before the Agency releases itsown.Inthe
past,theCity Commission has expressed its wish fortheCityto seek funding fortheCity match from
outside source.The City administration has found a means of financing the match through the Florida
Municipal Loan Council.This council administers a loan program with a variable rate revolving loan
pool uniquely designed for Florida local governments.Funding for the program is through a AAA rated
tax-exempt bond issue administered bythe Florida League of Cities onbehalfof local governments in
order to achieve better economies of scale.The program was created pursuant to Chapter 163,part 1,of
Florida State statutes,for the purpose of issuing the bonds.Some of the advantages of using this funding
source include:
a)Pre-payment of loan ona 30-day notice,without penalty.The City gets the benefit of long-term tax
exemptfundingwithashortpre-paymentoption.
b)Substantially lower cost of financing than traditional financing alternatives.
c)Historically lower rate of interest compared to other fixed rates financing instruments.
TheattachedordinanceauthorizestheCity Manager toenterintoanagreementwiththe Florida
Municipal Loan Council onbehalf of theCityto obtain funding for the $1,500,000 matching funds.As
previously expressed bytheCity Commission to utilize the $150,000 annual contribution from the South
Miami Hospital towards repayment of this loan,a separate resolution willbe presented foryour approval
atthe next Commission meeting.
Approval of the ordinance will allow theCitytomove into thenext stage of the construction.
Yourapprovalis recommended