Ord. No. 11-01-1742ORDINANCE NO. 11 -01 -1742
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI, FLORIDA, RELATING TO IMPROVEMENTS AT
MURRAY PARK, AMENDING ORDINANCE NUMBER 1 -01 -1732,
AUTHORIZING THE NEGOTIATION OF A LOAN IN AN AGGREGATE
AMOUNT NOT TO EXCEED $2,500,000 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 OF A BOND PURCHASE
AGREEMENT; APPROVING THE EXECUTION AND DELIVERY OF A
DISCLOSURE AGREEMENT; PROVIDING CERTAIN OTHER MATTERS IN
CONNECTION WITH THE MAKING OF SUCH LOAN; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on January 16, 2001, the Mayor and City Commission approved an ordinance
relating to the Multipurpose Center at Murray Park, authorizing the City Manager to negotiate a loan
not to exceed $1,500,000; and
WHEREAS, interest rates have continued to decline thereby increasing the amount the City
of South Miami can leverage with South Miami Hospital's annual contribution of $150,000; and
WHEREAS, participating governmental units (the "Members ") have created the Florida
Municipal Loan Council (the "Council') pursuant to a certain Inter -local Agreement and pursuant
to Chapter 163, Part I, Florida Statutes, for the purpose of issuing its bonds to make loans to
participating governmental units for qualified projects; and
WHEREAS, the City of South Miami, Florida, a municipal corporation, is duly created and
existing pursuant to the Constitution and laws of the State of Florida (the "State "); and
WHEREAS, the City finds and declares that there is a substantial need for the financing or
refinancing of qualifying projects permitted by Florida Statutes and the State Constitution; and
WHEREAS, the City possesses the ability to finance such projects on its own, 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 low cost financing or refinancing of such projects through economies of scale,
administrative support and access to expertise in accessing the capital markets; and
WHEREAS, it is anticipated that the benefits of a pooled financing by the City with a limited
number of governmental units through the Florida Municipal Loan Council may be obtained through
promises to repay loans under the program and supported by a general covenant to budget and
appropriate for such purpose, by a specific pledge of taxes or revenues or by a general obligation;
and
WHEREAS, by pooling the respective financial needs of these certain various local
governmental units, the City will be able to access additional markets and expects to receive the
benefits of lower interest rates on more favorable terms associated with such a large scale financing
with such benefits being obtained for and inuring to the City; and
WHEREAS, the Council is in the process of issuing its Florida Municipal Loan Council
Revenue Bonds, Series 2001A (the 'Bonds ") and is seeking to make loans (the "Loans ") to
governmental units; and
WHEREAS, it is hereby determined that a need exists to borrow funds to finance the
implementation of the Master Plan for Murray Park as previously approved by the City Commission;
and
WHEREAS, it is determined to be in the best interest of the City to borrow funds from the
Council from the proceeds of the Bonds to finance the cost of the Project.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA as follows:
SECTION 1. AUTHORITY. This Ordinance is adopted pursuant to Chapter 166, Florida
Statutes and other applicable provisions of law and amends Ordinance Number 1 -01 -1732.
SECTION 2. PROJECT. The refinancing and/or financing of the implementation of the
master plan for the multi - purpose center is hereby approved.
SECTION 3. NEGOTIATED LOAN. Due to the complicated nature of the financing and
the ability of the Council to access additional markets and for the City to receive the benefits of
lower interest rates and issuance costs, it is hereby determined that it is in the best interest of the City
that the Loan to the City be made from the proceeds of the Bonds, as opposed to the City borrowing
funds pursuant to a public sale.
SECTION 4. LOAN AMOUNT. The amount of the Loan of the City evidenced by the
Loan Agreement shall not exceed $2,500,000. Such Loan shall be made at a discount which shall
include a pro -rata portion of costs of issuance incurred by the Council together with a pro -rata
portion of a reserve fund surety cost and the League of Cities administrative fees and other ongoing
costs and shall bear interest and shall be repayable according to the terms and conditions set forth
in the Loan Agreement authorized pursuant to Section 5 hereof with such changes, insertions and
omissions as may be approved by the City Manager. The redemption provisions, if any, relating to
such Loan shall be as provided in the Loan Agreement.
SECTION 5. AUTHORIZED OFFICERS. The City Manager is hereby authorized and
directed to execute and deliver a Loan Agreement to evidence the Loan, to be entered into by and
between the City and the Council.
Further, the City Manager is hereby authorized and directed to execute and deliver a
Continuing Disclosure Agreement concerning compliance with existing or proposed rules of the
2
Ord. No. 11 -01 -1742
Securities and Exchange Commission concerning continuing disclosure by the City, to be entered
into by and between the Underwriter, the City and the Council.
SECTION 6. RATES. The City Manager is hereby authorized to approve the final rates
of interest on the Bonds, and the redemption provisions thereof, if any, on behalf of the Borrower.
The City Manager is hereby authorized and directed to execute and deliver a Bond Purchase
Agreement, to be entered into by and between the Underwriter, the City and the Council.
SECTION 7. INDENTURE. The City hereby acknowledges and consents to the Bonds
being issued pursuant to a Trust Indenture (the Indenture) to be executed by the Council and a bank
or trust company to be selected as Trustee, by the Council.
SECTION 8. OTHER INSTRUMENTS. The City Manager is hereby authorized and
directed to execute any and all certifications or other instruments or documents required by this
Resolution, the Loan Agreement, the Trust Indenture or any other document required by the Council
as a prerequisite or precondition to making the Loan (including but not limited to the execution of
all tax documents relating to the tax exempt status of the Loan), and any such representations and
agreements made therein shall be deemed to be made on behalf of the City. All action taken to date
by the City Manager in furtherance of the issuance of the Bonds and the making of the Loan is
hereby approved, confirmed and ratified.
SECTION 9. ADDITIONAL INFORMATION. The Loan Agreement shall not be
executed and delivered unless and until the City has received all information required by Section
218.385, Florida Statutes.
SECTION 10. ADDITIONAL TERMS. Pursuant to subsequent resolution, the City may
establish such additional terms as it may so determine to be in the best interests of the City.
SECTION 11. EFFECTIVE DATE. This Ordinance shall take effect immediately upon
its adoption.
PASSED AND ADOPTED this 10th day of April '2001.
RAIR
e �/
READ AND APPROVED AS TO FORM:
/ te,
CITY ATTORNEY
`.
rag
In
Asti
COMMISSION VOTE:
Mayor Robaina:
Vice Mayor Feliu:
Commissioner Bethel:
Commissioner Russell:
Commissioner Wiscombe
3
Ord. No. 11 -01 -1742
5 -0
Yea
Yea
Yea
Yea
Yea
CITY OF SOUTH MIAMI
INTER - OFFICE MEMORANDUM
To: Honorable Mayor Date: Aori 1 6, 2001 -
and City Commission
From: Charles D. Sc urr Subject: Agenda Item #
City Manager Commission Meeting Ap ri'T " 10 , 2001 44 Multipurpose Center Funding
REQUEST
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH
MIAMI, FLORIDA, RELATING TO IMPROVEMENTS AT MURRAY PARK, AMENDING
ORDINANCE NUMBER 1 -01 -1732, AUTHORIZING THE NEGOTIATION OF A LOAN IN
AN AGGREGATE AMOUNT NOT TO EXCEED $2,500,000 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 OF A BOND PURCHASE AGREEMENT;
APPROVING THE EXECUTION AND DELIVERY OF A DISCLOSURE AGREEMENT;
PROVIDING CERTAIN OTHER MATTERS IN CONNECTION WITH THE MAKING OF
SUCH LOAN; AND PROVIDING AN EFFECTIVE DATE.
BACKGROUND AND ANALYSIS
On January 16, 2001, the Mayor and City Commission unanimously approved an ordinance authorizing
the City of South Miami to participate in the Florida Municipal Loan Council Program in order to finance
the improvements at Murray Park. By using South Miami Hospital's annual contribution of $150,000, the
City was able to leverage the $1.5 million necessary to match the $1.5 million grant from the Trust for Safe
Neighborhood Parks.
Since that approval, however, interest rates have continued to decline; and the $150,000 annual
contribution from the hospital may now leverage up to $2.5 million. The attached ordinance proposes to
take advantage of this favorable swing in interest rates by allowing the City to leverage the annual
contribution to its maximum, not to exceed $2.5 million. As a result, the City would be able to realize
much more of the Master Plan by utilizing the same $150,000 annual contribution.
The amount of the loan is the only proposed amendment to Ordinance Number 1 -01 -1732. Additional
information regarding the agreement, including its advantages, can be found in the Memorandum of
January 12, 2001 on the subject.
RECOMMENDATION
Your approval is recommended.
ORDINANCE NO. 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 A MULTI-
PURPOSE CENTER, AUTHORIZING THE NEGOTIATION OF A LOAN IN AN
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 OF A
BOND PURCHASE AGREEMENT; APPROVING THE EXECUTION AND
DELIVERY OF A 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 to a certain Inter -local Agreement and pursuant to
Chapter 163, Part I, Florida Statutes, for the purpose of issuing its bonds to make loans to
participating governmental units for qualified projects; and
WHEREAS, the City of South Miami, Florida, a municipal corporation, is duly created and
existing pursuant to the Constitution and laws of the State of Florida (the "State "); and
WHEREAS, the City finds and declares that there is a substantial need for the financing or
refinancing of qualifying projects permitted by Florida Statutes and the State Constitution; and
WHEREAS, the City possesses the ability to finance such projects on its own, 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 low cost financing or refinancing of such projects through economies of scale,
administrative support and access to expertise in accessing the capital markets; and
WHEREAS, it is anticipated that the benefits of a pooled financing by the City with a limited
number of governmental units through the Florida Municipal Loan Council may be obtained through
promises to repay loans under the program and supported by a general covenant to budget and
appropriate for such purpose, by a specific pledge of taxes or revenues or by a general obligation; and
WHEREAS, by pooling the respective financial needs of these certain various local
governmental units, the City will be able to access additional markets and expects to receive the
benefits of lower interest rates on more favorable terms associated with such a large scale financing
with such benefits being obtained for and inuring to the City; and
WHEREAS, the Council is in the process of issuing its Florida Municipal Loan Council
Revenue Bonds, Series 2001A (the "Bonds ") and is seeking to make loans (the "Loans ") to
governmental units; and
WHEREAS, it is hereby determined that a need exists to borrow funds to finance the
construction of Phase II of the Murray Park Multi - Purpose Center as previously approved by the City
Commission; and
WHEREAS, it is determined to be in the best interest of the City to borrow funds from the
Council from the proceeds of the Bonds to finance the cost of the Project.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA as follows:
SECTION 1. AUTHORITY. This Ordinance is adopted pursuant to Chapter 166, Florida
Statutes and other applicable provisions of law.
SECTION 2. PROJECT. The refinancing and/or financing of the construction of the multi-
purpose center is hereby approved.
SECTION 3. NEGOTIATED LOAN. Due to the complicated nature of the financing and
the ability of the Council to access additional markets and for the City to receive the benefits of lower
interest rates and issuance costs, it is hereby determined that it is in the best interest of the City that
the Loan to the City be made from the proceeds of the Bonds, as opposed to the City borrowing
funds pursuant to a public sale.
SECTION 4. LOAN AMOUNT. The amount of the Loan of the City evidenced by the
Loan Agreement shall not exceed $1,500,000. Such Loan shall be made at a discount which shall
include a pro -rata portion of costs of issuance incurred by the Council together with a pro -rata
portion of a reserve fund surety cost and the League of Cities administrative fees and other ongoing
costs and shall bear interest and shall be repayable according to the terms and conditions set forth in
the Loan Agreement authorized pursuant to Section 5 hereof with such changes, insertions and
omissions as may be approved by the City Manager. The redemption provisions, if any, relating to
such Loan shall be as provided in the Loan Agreement.
SECTION 5. AUTHORIZED OFFICERS. The City Manager is hereby authorized and
directed to execute and deliver a Loan Agreement to evidence the Loan, to be entered into by and
between the City and the Council.
Further, the City Manager is hereby authorized and directed to execute and deliver a
Continuing Disclosure Agreement concerning compliance with existing or proposed rules of the
Securities and Exchange Commission concerning continuing disclosure by the City, to be entered into
by and between the Underwriter, the City and the Council.
2
Ord. No. 1 -01 -1732
SECTION 6. RATES. The City Manager is hereby authorized to approve the final rates of
interest on the Bonds, and the redemption provisions thereof, if any, on behalf of the Borrower. The
City Manager is hereby authorized and directed to execute and deliver a Bond Purchase Agreement,
to be entered into by and between the Underwriter, the City and the Council.
SECTION 7. INDENTURE. The City hereby acknowledges and consents to the Bonds
being issued pursuant to a Trust Indenture (the AIndenture) to be executed by the Council and a bank
or trust company to be selected as Trustee, by the Council.
SECTION 8. OTHER INSTRUMENTS. The City Manager is hereby authorized and
directed to execute any and all certifications or other instruments or documents required by this
Resolution, the Loan Agreement, the Trust Indenture or any other document required by the Council
as a prerequisite or precondition to making the Loan (including but not limited to the execution of all
tax documents relating to the tax exempt status of the Loan), and any such representations and
agreements made therein shall be deemed to be made on behalf of the City. All action taken to date
by the City Manager in furtherance of the issuance of the Bonds and the making of the Loan is hereby
approved, confirmed and ratified.
SECTION 9. ADDITIONAL INFORMATION. The Loan Agreement shall not be
executed and delivered unless and until the City has received all information required by Section
218.385, Florida Statutes.
SECTION 10. ADDITIONAL TERMS. Pursuant to subsequent resolution, the City may
establish such additional terms as it may so determine to be in the best interests of the City.
SECTION 11. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its
adoption.
PASSED AND ADOPTED this 15 °' day of January. 2001.
I" Reading — 12/19/00
2 "d Reading — 1/16/01
CITY ATTORNEY
APPROVED;/
MAYO
COMMISSION VOTE:
5 -0
Mayor Robaina:
Yea
Vice Mayor Feliu:
Yea
Commissioner Wiscombe:
Yea
Commissioner Bethel:
Yea
Commissioner Russell:
Yea
Ord. No. 1 -01 -1732
CITY OF SOUTH MIAMI
INTER - OFFICE MEMORANDUM
To: Mayor and City Commission Date: d 8 n u a ry' 12 0 01
From: Charles D. Scurr ( Re: AGENDA ITEM # V
City Manager 1 \� Commission meeting' ..d.a -, 16., 20
Multipurpose Center Funding
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 IN AN 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 OF A BOND PURCHASE AGREEMENT; APPROVING
THE EXECUTION AND DELIVERY OF A DISCLOSURE 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 center in our Murray Park. The first phase of the construction is almost
completed and we are about to begin Phase 11. Release of the grant funds requires a dollar for dollar
match, and contingent upon the City utilizing its own match before the Agency releases its own. In the
past, the City Commission has expressed its wish for the City to seek funding for the City 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 by the Florida League of Cities on behalf of 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 on a 30 -day notice, without penalty. The City gets the benefit of long -term tax
exempt funding with a short pre - payment option.
b) Substantially lower cost of financing than traditional financing alternatives.
c) Historically lower rate of interest compared to other fixed rates financing instruments.
The attached ordinance authorizes the City Manager to enter into an agreement with the Florida
Municipal Loan Council on behalf of the City to obtain funding for the $1,500,000 matching funds. As
previously expressed by the City Commission to utilize the $150,000 annual contribution from the South
Miami Hospital towards repayment of this loan, a separate resolution will be presented for your approval
at the next Commission meeting.
Approval of the ordinance will allow the City to move into the next stage of the construction
Your approval is recommended
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
Octeima V. Ferbeyre, who on oath says that she is the
Supervisor, Legal Notices of the Miami Daily Business
Review f /War Miami Review, a daily (except Saturday, Sunday
and Legal Holidays) newspaper, published at Miami in Miami
Dade County, Florida; that the attached copy of advertise.
ment, being a Legal Advertisement of Notice in the matter of
CITY OF SOUTH MIAMI
PUBLIC HEARINGS 4/10/01
ORD. CREATION OF SECTION
15 -59, ETC.
in the ............. XXKKXNX................. Court,
was published in said newspaper in the issues of
Mar 30, 2001
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 she has neither paid nor promised
any person, firm corporati discount, rebate, com-
mission or ref for the pose of ecuring this advertise.
ment for pUb atian i said new earner.
orn to ands scriIt'
me this
30 March 2001
7 ......
...
(SEAL)
AMY Ftt?"!9Ce?" . c OF FLORIDA
COMMI55ION NO. CC 912958
CITY OF SOUTH MIAMI
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that the City Commission of the City of
South Miami, Florida will conduct a Public Hearing during its regular City
Commission meeting Tuesday, April 10, 2001 beginning at 7:30 p.m., in
the City Commission Chambers, 6130 Sunset Drive, to consider the fol-
lowing described ordinance(s):
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO THE
CREATION OF SECTION 15 -59, TAMPERING WITH AN ESCALA.
TOR, MOVING SIDEWALK OR ELEVATOR; PROVIDING FOR
SEVERABILITY, ORDINANCES IN CONFLICT AND AN EFFEC-
TIVE DATE; (1st Reading - March 6, 2001)
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO THE
AMENDING OF SECTION 15 -6, CARNIVALS, SIDE SHOWS,
STREET SHOWS, ETC., PROHIBITED WITHIN CITY LIMITS; OF
THE CODE OF ORDINANCES OF THE CITY OF SOUTH MIAMI;
PROVIDING FOR SEVFRABILITY, ORDINANCES IN CONFLICT
AND AN EFFECTIVE DATE. (1st Reading - March 20, 2001)
nHAN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO IMPROVE-
MENTS TO MURRAY PARK, AMENDING ORDINANCE NUMBER
1.01 -1732, AUTHORIZING THE NEGOTIATIONS OF A LOAN IN
AN AGGREGATE AMOUNT NOT TO EXCEED $2,500.000 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 OF A 80NO PURCHASE AGREE-
MENT; APPROVING THE EXECUTION AND DELIVERY OF A DIS-
CLOSURE AGREEMENT; PROVIDING CERTAIN OTHER MAT-
TERS IN CONNECTION WITH THE MAKING OF SUCH LOAN;
AND PROVIDING AN EFFECTIVE DATE. (1 at Reading - March 20,
2001)
Said ordinances can be inspected in the City Clerk's Office, Monday -
Friday during regular office hours.
Inquiries concerning these items should be directed to the City Marl
er's office at: 663.6338.
ALL interested parties are invited to attend and will be heard.
Rbnetta Taylor, CMC
City Clerk
City of South Miami
Pursuant to Florida Statutes 286.0105, the City hereby advises the pub-
lic that if a person decides to appeal any decision made by this Board,
Agency or Commission with respect to any matter considered at its meet-
ing or hearing, he or she will need a record of the proceedings, and that for
such purpose, affected person may need to ensure that a verbatim record
of the proceedings is made which record includes the testimony and evi-
dance upon which the appeal is to be based.
.3/30' ._ 01.3- 18/14868M