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HomeMy WebLinkAboutR-94-0653J-94-659 9/8/94 RESOLUTION N0. 9 4- 653 A RESOLUTION AMENDING RESOLUTION NO. 94-576 (THE "ORIGINAL RESOLUTION") DULY ADOPTED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA, ON JULY 26, 1994, AND ENTITLED: "A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING $18,000,000 SPECIAL NON -AD VALOREM REVENUE BONDS, SERIES 1994, OF THE CITY FOR THE PURPOSE OF FINANCING THE FUNDING OF A SELF INSURANCE CLAIMS RESERVE FUND OF THE CITY; PROVIDING FOR THE PAYMENT OF THE BONDS FROM NON -AD VALOREM REVENUES AVAILABLE TO THE CITY; MAKING CERTAIN COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; DELEGATING TO THE MAYOR OR THE CITY MANAGER THE AUTHORITY TO AWARD A NEGOTIATED SALE OF THE BONDS TO WILLIAM R. HOUGH & CO., AS REPRESENTATIVE OF THE UNDERWRITING GROUP AND APPROVING THE CONDITIONS AND CRITERIA OF SUCH SALE; ACCEPTING A COMMITMENT FROM THE BOND INSURER FOR A MUNICIPAL BOND INSURANCE POLICY TO INSURE THE BONDS; ACCEPTING A COMMITMENT FROM FINANCIAL GUARANTY INSURANCE COMPANY FOR A RESERVE FUND INSURANCE POLICY FOR THE 1994 RESERVE ACCOUNT; APPROVING THE FORM AND AUTHORIZING THE USE OF A PRELIMINARY OFFICIAL STATEMENT AND THE EXECUTION AND DISTRIBUTION OF A FINAL OFFICIAL STATEMENT WITH RESPECT TO THE BONDS; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE CONTRACT; PROVIDING AN EFFECTIVE DATE; AND PROVIDING CERTAIN OTHER DETAILS," THEREBY AMENDING SECTION 2.01, 6.03 AND 9.01 OF THE ORIGINAL RESOLUTION AS MORE FULLY OUTLINED HEREIN BELOW. CITY COIv MSSION YZETING OF Jf1C 1 k 1994 Resolution No. 94- 653 BE IT RESOLVED BY THE CITY COMMISSIONERS OF THE CITY OF MIAMI, FLORIDA: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This resolution is adopted pursuant to the provisions of Chapter 166, Florida Statutes, Article VIII, Section 2 of the Constitution of the State of Florida; the City Charter of the City of Miami, Florida; and other applicable provisions of law (collectively the "Act"). SECTION 2. DEFINITIONS. Unless otherwise defined herein, the terms used herein shall have the same meanings as those 94- 653 terms defined in Resolution No 94-57.6of the City Commissioners of the City of Miami, Florida (the "Issuer") duly adopted on July 26, 1994, the title of which is set forth in the title hereof (the "Original Resolution"). SECTION 3. FINDINGS. It is hereby found and determined that: A. On July 26, 1994, the City Commissioners of the Issuer duly adopted the Original Resolution. B. Because this resolution is being adopted prior to the issuance of the 1994 Bonds, pursuant to the first sentence of Section 12.01 of the Original Resolution, the Issuer may amend the Original Resolution without the consent of the Bond Insurer and without the consent of the Bondholders. C. It is desirable to amend Sections 2.01, 6.03 and 9.01 of the Original Resolution as provided herein. SECTION 4. AMENDMENT OF SECTION 2.01 OF ORIGINAL RESOLUTION. The definition of Bond Service Requirement in Section 2.01 of the Original Resolution is hereby amended and restated in its entirety, but only with respect to said definition, to read as follows: "Bond Service Requirement" means for a given Bond Year the remainder, after subtracting any accrued interest for that year that has been deposited into the Interest Account for that purpose, from the sum of: (1) The amount required to pay .the interest coming due on Bonds during that Bond Year, including the accreted interest component of the Compounded Amount of Capital Appreciation Bonds coming due during that Bond Year, (2) The amount required to pay the principal of Serial Bonds and the principal of Term Bonds, including the principal component of the Compounded Amounts of Capital Appreciation Bonds maturing in that Bond Year that are not included in the Amortization Installments for such Term Bonds, and E 94- 653 (3) The Amortization Installment for all series of Term Bonds for that Bond Year. The interest rate for Variable Rate Bonds shall be calculated as follows: (A) For purposes of determining (i) the amount required to be budgeted pursuant to Section 6.03 below, and (ii) the Bond Service Requirement for purposes of Section 10.02(1) hereof; (x) to the extent that the principal amount of all outstanding variable rate debt payable from one or several of the sources of legally available non -ad valorem revenues is less than 25% of all indebtedness secured in whole or in part by one or several of the sources of legally available non -ad valorem revenues, the Maximum Bond Service Requirement shall be calculated assuming an interest rate equal to the greater of 12% per annum or the Bond Buyer 40 Index published immediately prior to making such determination, (y) to the extent that the principal amount of all outstanding variable rate debt payable from one or several of the sources of legally available non -ad valorem revenues is greater than 25% of the principal amount of all indebtedness secured in whole or in part by one or several of the legally available non -ad valorem revenues, the Maximum Bond Service Requirement shall be calculated assuming the maximum permissible rate, and (z) for purposes. of such calculations, Variable Rate Bonds shall be assumed to be amortized in up to 20 years with level debt service; and (B) For purposes of calculating the Reserve Requirement, Variable Rate Bonds shall be assumed to bear interest at a rate of 9.2%. SECTION 5. AMENDMENT OF FIRST PARAGRAPH OF SECTION 6.03 OF ORIGINAL RESOLUTION. The first paragraph of Section 6.03 of the Original Resolution is hereby amended and restated in its entirety to read as follows: Covenant to Budget and Appropriate. The Issuer hereby covenants and agrees to the extentpermitted by and in 94- 653 accordance with applicable law and budgetary processes, to prepare, approve and appropriate in its Annual Budget for each Fiscal Year, by amendment if necessary, and to deposit to the credit of the Sinking Fund, legally available non -ad valorem revenues of the Issuer in an amount which is equal to the Bond Service Requirement with respect to all Bonds outstanding hereunder for the applicable Fiscal Year, plus an amount sufficient to satisfy all other payment obligations of the Issuer hereunder for the applicable Fiscal Year, including, without limitation, the obligations of the Issuer .to fund and cure deficiencies in any accounts in the Reserve Fund created hereunder. Such covenant and agreement on the part of the Issuer to budget and appropriate sufficient amounts of legally available non -ad valorem revenues shall be cumulative, and shall continue until such legally available non -ad valorem revenues in amounts sufficient to make all required payments hereunder as and when due, including any delinquent payments, shall have been budgeted, appropriated and actually paid into the appropriate funds and accounts hereunder; provided, however, that such covenant shall not constitute a lien, either legal or equitable, on any of the Issuer's legally available non -ad valorem revenues or other revenues, nor shall it preclude the Issuer from pledging in the future any of its legally available non -ad valorem revenues or other revenues to other obligations, nor shall it give the Bondholders a prior claim on the legally available non -ad valorem revenues. Anything herein to the contrary notwithstanding, all obligations of the Issuer hereunder shall be secured only by the legally available non -ad valorem revenues actually budgeted and appropriated and deposited into the funds and accounts created hereunder, as provided for herein. The Issuer may not expend moneys not appropriated or in excess of its current budgeted revenues. The obligation of the Issuer to budget, appropriate and make payments hereunder from its legally available non -ad valorem revenues is subject to the availability of legally available non -ad valorem revenues after satisfying funding requirements for obligations having an express lien on or pledge of such revenues and after satisfying funding requirements for essential governmental services of the Issuer. SECTION 6. AMENDMENT OF SECTION 9.01 OF ORIGINAL RESOLUTION. Section 9.01 of the Original Resolution is hereby amended and restated in its entirety to read as follows: 4 94- 653 Anti -Dilution Test. The Issuer may incur additional debt that is payable from all or a portion of the legally available non -ad valorem revenues only if the total amount of legally available non -ad valorem revenues for the prior fiscal year were (a) at least 2.00 times the maximum annual debt service of all debt (including all long-term financial obligations appearing on the Issuer's most recent audited financial statements and the debt proposed to be incurred) to be paid from legally available non -ad valorem revenues (collectively, "Debt"), including any Debt payable from one or several specific revenue sources and (b) so long as the 1994 Bonds are outstanding and the 1994 Reserve Product is in effect, at least 1.00 times the obligation of the Issuer to repay any Policy Costs (as defined in Section 13.02 hereof) then due and owing to the 1994 Reserve Product Provider. SECTION 7. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the provisions herein contained shall be held contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such provisions shall be null and void and shall be deemed separable from the remaining provisions and shall in no way affect the validity of any other provisions hereof. SECTION 8. REPEALING CLAUSE. All ordinances, resolutions or parts thereof in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. SECTION 9. REAFFIRMATION OF ORIGINAL RESOLUTION. Except as amended hereby, all the terms and provisions of the Original Resolution shall remain in full force and effect after the date hereof. SECTION 10. EFFECTIVE DATE OF AMENDMENT TO ORIGINAL RESOLUTION. The amendment to the Original Resolution provided in Sections 4, 5 and 6 hereof shall become effective immediately upon the adoption of this resolution. SECTION 11. EFFECTIVE DATE. This resolution shall take effect immediately upon its adoption. 5 94- 653 v PASSED AND ADOPTED this 8th day of September 1994. ST PHEN P. CLAJfK, MAYOR AT ST MAT Y HIRAI • CITY CLERK APPROVED AS TO FORM AND CORRECTNESS: 94- 653 -6- CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members DATE AUG 2 5 1094 FILE of the City Commission SUWECT City Commission Agenda Item FROM REFERENCES CesaVger 10 City ENCLOSURES: It is respectfully recommended that attached resolution be adopted amending Resolution No. 94-576 duly adopted by the City Commission of the City of Miami, Florida, on July 26, 1994, and entitled: "A resolution of the City Commission of the City of Miami, Florida, authorizing and providing for the issuance of not exceeding $18,000,000 Special Non -Ad Valorem Revenue Bonds, Series 1994, of the City for the purpose of financing the funding of a self insurance claims reserve fund of the City; providing for the payment of the bonds from non -ad valorem revenues available to the City; making certain covenants and agreements in connection therewith; delegating to the Mayor or the City Manager the authority to award a negotiated sale of the bonds to William R. Hough & Co., as representative of the Underwriting Group and approving the conditions and criteria of such sale; accepting a commitment from the bond insurer for a municipal bond insurance policy to insure the bonds; accepting a commitment from Financial Guaranty Insurance Company for a reserve fund insurance policy for the 1994 reserve account; approving the form and authorizing the use of a preliminary official statement and the execution and distribution of a final official statement with respect to the bonds; approving the form of and authorizing the execution and delivery of a bond purchase contract; providing an effective date; and providing certain other details. Background: The City Commission adopted resolution 94-576 on July 26, 1994 authorizing the issuance of not exceeding $18,000,000 Special Non -Ad Valorem Revenue Bonds, Series 1994, for the purpose of financing the funding of a Self Insurance Claims Reserve Fund. The enclosed amending resolution has been prepared by bond counsel for the purpose of clarifying several of the definitions and terminology used in the original resolution. 34- 653