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HomeMy WebLinkAboutR-93-0288J-93-304 - 4/27/93 RESOLUTION NO. 93- 288 A RESOLUTION AUTHORIZING THE CITY MANAGER TO TAKE THE NECESSARY AND APPROPRIATE ACTIONS TO EFFECT THE TOTAL OR PARTIAL REFUNDING OF THE OUTSTANDING PORTION OF THE CITY'S $100000,000 GENERAL OBLIGATION BONDS, DATED AUGUST 1, 1987, THE $18,400,000 GENERAL OBLIGATION BONDS, DATED NOVEMBER 1, 1988, AND THE $10,000,000 GENERAL OBLIGATION BONDS, SERIES 1991, DATED JULY 1, 1991; AUTHORIZING THE CITY MANAGER TO PREPARE THE DOCUMENTATION NECESSARY FOR THE ISSUANCE OF THE CITY'S GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $30,000,0000; AUTHORIZING THE CITY ATTORNEY TO SEEK COMPETITIVE BIDS FOR BOND COUNSEL SERVICES; FURTHER APPOINTING UNDERWRITERS AS DESIGNATED HEREIN. WHEREAS, The City of Miami issued the $10,000,000 City of Miami, Florida, General Obligations Bonds, dated August 1, 1987; the $18,400,000 General Obligation Bonds, dated November 1, 1988, and the $10,000,000 General Obligation Bonds, Series 1991, dated July 1, 1991; and WHEREAS, current interest rate levels are much lower than s those in effect when such bonds were issued; and WHEREAS, refunding of the issues specified hereinabove are expected to produce significant debt service savings; and WHEREAS, certain underwriting firms were selected and appointed to provide said underwriting services pursuant to Resolution No. 91-885, adopted December 5, 1991; MEETWG CIF MAY 13 1993 &eo;ut= rim 93- 288 NOW, TH kEFOPt, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized to take the necessary and appropriate actions to effect the total or partial refunding of the outstanding portion of the City's $10,000,000 General Obligation Bonds, dated August 1, 1987; the $18,400,000 General Obligation Bonds, dated November 1, 1988, and the $10,000,000 General Obligation Bonds, Series 1991, dated July 1, 1991, and to prepare the documentation necessary for the issuance of the City's General Obligation Refunding Bonds, Series 1993, in an aggregate principal amount not to exceed $30,000.000. Section 3. The underwriters selected and appointed in Group B. pursuant to Resolution No. 91-885, adopted December 5, 1991, composed by the firms of The First Boston Corporation, First Equity Corp. of Florida, Artemis Capital Group, Inc., Pryor, ' 9 i McClendon, Counts & Co., Inc., and Samuel A. Ramirez & Co., Inc., are hereby appointed as underwriters for the issuance of the ' General Obligations Refunding Bonds, Series 1993. Section 4. The City Attorney is hereby authorized to seek ((' competitive bids for bond counsel services for this transaction. Section 5. This Resolution shall become effective = immediately upon its adoption. 93- 28.8 -2- ATTE MA HIRAI, CITY CLERK PREPARED AND APPROVED BY RAFAEL 0. DIAZ CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: A. QU Jo , II CITY ATTO ;r -3- CITY OF MIAMI, FLORIDA V! ' ' r --F 3 INTER -OFFICE MEMORANDUM :icy ;'�1t ��Q+.'; _Tp T10611 AN 10: 21 TO honorable Mayor and Members DATE M� of the City Commission Aa4l--j FROM ' Cesar H. Odio City Manager SUBJECT Issuance of Bonds Refund outstanding General obligation REFERENCES ENCLOSURES: to Bonds It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to take the necessary and appropriate actions to effect the total or partial refunding of the outstanding portion of the City's $10,000,000 Genera]. obligation Bonds, dated August 1, 1987, the $18,400,000 General Obligation Bonds, dated November 1, 1988, and the $10,000,000 General Obligation Bonds, Series 19910 dated July 1, 1991; authorizing the City Manager to prepare the documentation necessary for the issuance of the City's General Obligation Refunding Bonds, Series 1993, in an aggregate principal amount not to exceed $30,000,0000; authorizing the City Attorney to seek competitive bids for bond counsel services; further appointing Underwriters as designated herein. The City issued General Obligation Bonds in the amounts of $10 million in 1987, $18.4 million in 1988, and $10 million in 1991, with interest rates ranging between 4.75% and 7.7%. It is estimated that refunding these bonds would save in excess of $1 million.over the life of the bonds, based on the current interest rates ranging between 2.75 and 5.9%, depending on the maturity of the bonds. The new bonds will not extend the life of the original bonds. The final size of the issue, not exceeding $30 million, will depend on the structure at the time of sale that will produce the largest debt service savings to the City. The City Commission by resolution 91-885 of December 1991, appointed a rotating list of underwriting teams. The attached resolution appoints the team composed by the firms of The First Boston Corporation, First Equity Corp. of Florida, Artemis Capital Group, Inc., Pryor, McClendon, Counts & Co., Inc., and Samuel A. Ramirez & Co., Inc. designated as Group 8 by such resolution. The attached resolution also authorizes the City Attorney to seek competitive bids for bond counsel services for this transaction. It is expected that a final resolution approving details related 4 to this bond sale will be presented to the City Commission., in 93- 288