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Home My WebLink AboutR-96-0475RESOLUTION NO. g 6 - 475 A RESOLUTION AUTHORIZING THE CITY TO ENTER INTO A FINANCIAL AGREEMENT WITH RESPECT TO MUNICIPAL SECURITIES ISSUED BY THE CITY, AS ( MORE SPECIFICALLY SET FORTH HEREIN; ESTABLISHING CERTAIN FINANCIAL PARAMETERS WITH RESPECT THERETO; DELEGATING TO THE CITY MANAGER OR HIS DESIGNEE THE NEGOTIATION AND EXECUTION OF THE TERMS OF SUCH AGREEMENT; AUTHORIZING AND DIRECTING THE APPROPRIATE OFFICERS OF THE CITY TO TAKE SUCH OTHER ACTION AS SHALL BE NECESSARY AND APPROPRIATE IN FURTHERANCE OF THE INTENT HEREOF; PROVIDING FOR SEVERABILITY AND REPEAL; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to Chapter 166, Florida Statutes, the Charter and the Code of the City of Miami, Florida (the "City"), and other provisions of law, the City has issued municipal securities including, but not limited to bonds, loans and notes; and WHEREAS, from time to time, the City is presented with opportunities that could result in savings to the City with respect to such municipal securities but such opportunities are sensitive to changes in interest rates in the capital markets requiring immediate action in order to realize such savings; and WHEREAS, in order to permit the City to take advantage of such opportunities, the City Commission (the "Commission") has determined that it is in the best interest of the City to delegate to the City Manager or his designee, the authority to CITY COMMISMON MEETING OF J U N Z 7 1996 Resolution No. 96- 475 } negotiate and execute a contract relating to such financial instruments as set forth herein; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to provisions of Chapter 166, Florida Statutes, the Charter and Code of the City and other applicable provisions of law. Section 2. AUTHORIZATION OF FINANCIAL AGREEMENT. In order to permit the City to achieve savings with respect to its municipal securities, the Commission hereby delegates to the City Manager or his designee, the authorityl/ to negotiate and, after consultation with the Finance Director of the City and the City's financial advisor, execute documents, in a form acceptable to the City Attorney, with respect to such financial agreement when such agreement have been determined by the City Manager to be in the best interest of the City. Such financial instruments may include: (a) Interest Rate Swaps ("Swaps") - financial agreements wherein each party agrees to pay interest to the other party at a fixed rate or a variable rate, effectively converting the City's obligation with respect to its municipal securities from a variable rate to a fixed rate or from a fixed rate to a variable rate. i� The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. - 2 - 96- 475 (b) Interest Rate Caps ("Caps") - financial agreements entered into in connection with a variable rate obligation whereby the City may limit its exposure to increases in interest rates on its variable rate obligations. (c) Interest Rate Floors ("Floors") - financial agreement entered into in connection with a variable rate obligation whereby the City would receive a current payment in exchange for the - obligation to make payments to a third party if the interest rate falls below the contract rate. i (d) Interest Rate Collars ("Collars") - financial agreements constituting a Cap and a Floor executed simultaneously. Section 3. SPECIFIC AUTHORIZATION. In connection with the City's Non -Ad Valorem Revenue Bonds, Taxable Pension Series 1995, and its Non -Ad Valorem Revenue Bonds, Taxable Compensated Absence Series 1995 (collectively the "Series 1995 Taxable Bonds"), the Commission hereby specifically approves the execution of a fixed receipt Interest Rate Swap in a notional amount not to exceed $20,000,000, for a term not to exceed 15 years, with a fixed receipt interest rate paid to the City of at least seven percent (7%), for the intended purpose of converting a portion of the City's Series 1995 Taxable Bonds to variable rate which initial variable rate shall not exceed seven percent (7%). Further, the City Commission specifically hereby approves the execution of any and all Caps, Floors, and Collars, for the intended purpose of minimizing the variable rate exposure on a portion of the City's Series 1995 Taxable Bonds. Section 4. OTHER ACTIONS. The Mayor, Vice -Mayor, City Manager, any Deputy or Assistant City Manager, Finance Director, any Deputy or Assistant Finance Director, City Attorney, any - 3 - 9G 475 l Deputy or Assistant City Attorney, the Clerk and any Deputy City I Clerk or other appropriate City officials are hereby authorized and directed to take all such other further action and to execute any all documents, certificates and other agreements determined I to be necessary in furtherance of the intent hereof. III Section 5. SEVERABILITY. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any remaining provisions of this Resolution, but this Resolution shall be construed and enforced as if such illegal or invalid section, paragraph, clause or provision had not been contained herein. Section 6. NO THIRD PARTY BENEFICIARIES. Except as herein otherwise expressly provided, nothing in this Resolution expressed or implied is intended or shall be construed to confer upon any person, firm or corporation any right, remedy or claim, legal or equitable, under or by reason of this Resolution, all provisions of this Resolution being intended to be for the sole and exclusive benefit of the City and the counterparty to any of the agreements described herein. Section 7. CONTROLLING LAW; MEMBERS OF COMMISSION AND OFFICIALS OF CITY NOT LIABLE. All covenants, stipulations, obligations and agreements of the City set forth in this Resolution shall be deemed to be covenants, stipulations, obligations and agreements of the City to the full extent authorized and provided by the Constitution and the laws of the - 4 - 9G-- 475 t, n State of Florida. No such covenant, stipulation, obligation or agreement shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member, agent or i' employee of the Commission of the City in his individual j capacity, and the members of the Commission or any official executing the agreements described herein or other document in connection therewith shall not be liable personally on the Bonds jor under this Resolution or any agreement of other document executed in connection therewith. Section 8. GOVERNING LAW. The provisions of this Resolution shall be construed and enforced in accordance with the laws of the State of Florida. Section 10. REPEALER. All resolutions or parts thereof in conflict with the provisions of this Resolution are, to the extent of such conflict, hereby superseded and repealed. Section 11. EFFECTIVE DATE. This Resolution shall become i effective immediately upon its adoption. PASSED AND ADOPTED this 27th d;'f -- June 1996. GORT, VICE- 96- 475