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HomeMy WebLinkAboutR-94-009594 95 RESOLUTION NO, A RESOLUTION AUTHORIZING THE CITY MANAGER TO PROCEED WITH THE PROPOSED PURCHASE OF A LIABILITY COVERAGE CONTRACT BY THE CITY OF MIAMI, FLORIDA FROM THE FLORIDA LEAGUE OF CITIES' FIRST MUNICIPAL LOAN PROGRAM IN THE AMOUNT OF $30,000,000, SAID PURCHASE TO BE SECURED BY A COVENANT FROM THE CITY OF MIAMI TO BUDGET AND APPROPRIATE THE REPAYMENT OF SAID CONTRACT. WHEREAS, the City of Miami, Florida, has determined that there is a need to f inanoe liabilities incurred by the City's Self-Insuranoe Fund; and WHEREAS, the First Municipal Loan Council of the Florida Tqms%-d"qQ of Cities has issued liability coverage contracts for other local governments in the State of Florida; and WHEREAS, the City wishes to purchase a liability coverage contract from the First Municipal Loan Council in the amount of $30,000,000; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to proceed with the proposed purchase of a liability coverage contract by the City of Miami, Florida, from the Florida League of Cities' First Municipal Loan Program in the amount of $30,000,000, said purchase to be secured by a covenant from the CITY COPOWSION KEETING OF FEB 17 1994 Resolution No. 94- 95 R fv J i 5 y sa x� tti t r+ City of Miami to budget and appropriate the repayment of said oontraot. Seotion 2. Further authorization, terms, redemption matters, and covenants shall be determined and fixed by future resolution of the City of Miami with respeot to said transaotion. Seotion 3. If any one or more of the covenants, agreements or provisions of this Resolution shall be held oontrary to any express provision of law, or shall for any reason whatsoever be held invalid, then suoh oovenants, agreements ,or provisions shall be null and void and shall be deemed separable from the other provisions of this Resolution. Seotion 4. This Resolution shall beoome effeotive immediately upon its adoption. PASSED AND ADOPTED this 17th y of February 1994. ATTES STtPHEN P. CL RK, MAYOR MATit HIRAI, CITY CLERK PREPARED AND APPROVED BY: r::2 5 'Y RAFAEL 0. DIAZ DEPUTY CITY ATT EY APPROVED AS TO FORM AND CORRECTNESS: Ant, A N 0 S, II CITY ATEY r ROD/om/M4148 4 "` 95 r: -2- J 1 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUNF�rY'/�i r 4 8 +GAR Q TO Honorable Mayor and Members DATE : FEB 4 1¢ga4' 27 FILE of the , ' ty Commission SUBJECT : Agenda Item FROM : Cesar. H. OdlO REFERENCES City Manager ENCLOSURES RECOMMENDATION: It is respectfully recommended that the attached resolution authorizing the City Manager to proceed with the proposed purchase of a liability coverage contract by the City of Miami, Florida from the Florida League of Cities' First Municipal Loan Program in the amount of $30,000,000, be approved. BACKGROUND: The City of Miami Commission approved an Interlocal Agreement with the Florida League of Cities enabling the City to take advantage of the attractive terms offered by the Florida League of Cities' First Municipal Loan Council. The attached resolution authorizes the City Manager to proceed with the proposed purchase of a liability coverage contract by the City of Miami from the Florida League of Cities' First Municipal Loan Program in the amount of $30,000,000. The funds provided by the contract will be used to meet a portion of the City's`liabilities under the Self. Insurance Program. The $30,000,000 contract will be repaid over a period of seven years with interest rates expected to approximate six percent. The final resolution setting the terms and conditions of this transaction will be submitted to the City Commission for approval once the purchase of the contract is authorized by the Florida Department of Insurance. i 94- 95