HomeMy WebLinkAboutR-94-009594
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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.
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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:
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RAFAEL 0. DIAZ
DEPUTY CITY ATT EY
APPROVED AS TO FORM AND CORRECTNESS:
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A N 0 S, II
CITY ATEY
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CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUNF�rY'/�i r 4
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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.
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