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HomeMy WebLinkAboutR-83-0905A RESOL TIO'N PROVIDING FOR THE ISSUANCE 01' AND FIXING AND DLTEfZI.1INING i1IL•' DATE, PRINCIPAL AMOUNT, MATURITIES, INTEREST RATES AND REDEMPTION PROVISIONS OF PARKING SYSTEM REVENUE LONDS, SERIES 1983, OF THE CITY OF MIAMI, FLORIDA, AUTHORIZED IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT EXCEEDING $16,000,000 PURSliANT TO ORDINANCE NO. 9618, DULY ENACTED BY TIIE CITY COM14ISSION OF THE CITY OF MIAMI ON MAY 31, 1983; PROVIDING FOR THE DETERbIINATIONI OF SINKING FUND REQUIREMENTS OF ANY TERM BONDS; DESIGNATING THE TRUSTEE, PAYING AGENT AND ESCROW AGENT FOR TIIE SERIES 1983 BONDS; DETERMINING THE NEED FOR A NEGOTIATED SALE OF SAID BONDS; APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY BY THE CITY OF A BOND PURCHASE CONTRACT FOR SAID BONDS; AWARDING TIIE SERIES 1983 BONDS; APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT, BETWEEN THE CITY A14D THE ESCROW AGENT; PROVIDING FOR THE DISPOSITIO14 AND TRANSFER OF THE i 014EYS AND SECURITIES ON DEPOSIT IN THE FUI4DS AND ACCOUNTS ESTABLISHED FOR THE OUTSTANDI14G BONDS; APPROVING AND RATIFYING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO THE SERIES 1983 BONDS; AUTHORIZING THE EXECUTION, DELIVERY AND DISTRIBUTION OF A FINAL OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION AND DELIVERY OF CLOSING DOCUMENTS; REPEALING RESOLUTION NO. 83-690, ADOPTED BY THE COP•MISSION ON JULY 28, 1983; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Miami, Florida (herein called the "City") has heretofore authorized the issuance of not exceeding $16,000,000 aggregate principal amount of its Parking System Revenue Bonds (herein called the "Bonds"), pursuant to Ordinance No. 9618 (herein called the "Bond Ordinance( ') , :duly enacted by the City Commission of the City (herein calleLI the "Commission") on May 31, 1983; and WHEREAS, the Bond Ordinance provides that the Commission shall, by subsequent resolution or ordinance, determine the details of the Donds, provide for the sale of the Bonds to the purchasers and provide for the disposition of the several CITY N t-1ARKS. La funds and accounts held under the 1966 Ordinance and the 1980 Ordinance (each as defined in the Bond Ordinance); and WHEREAS, on July 28, 1983, in anticipation of the Commission's August recess, the Commission adopted Resolution No. 83-690 (herein called the "July Resolution") delegating to the Mayor and other officials of the City authority to fix certain details of the Bonds within the limits set forth in the July Resolution; and WHEREAS, because of unsettled market conditions, the Bonds were not sold during the Commission's August recess; and WHEREAS, the Off -Street Parking Board of the City (herein called the "Board") has advised the Commission that market conditions have somewhat improved and has requested the Commission to fix certain details of the Bonds, to award the Bonds, to make other determinations as hereinafter set forth and to repeal the July Resolution, now therefore, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Bonds shall be dated as of November 1, 1983, shall be in the denomination of $5,000 each or integral multiples thereof, shall be designated "City of Miami Parking System Revenue Bonds, Series 1983", and shall be issued in the aggregate principal amount set forth in Schedule 1 attached hereto. Section 2. (a) The Bonds shall bear interest from their date (or from the date provided for in the Bonds and in the Bond Ordinance) until their payment, payable semi-annually on the 1st day of each April and October of each year, commencing April 1, 1984, at the rates shown on Schedule 1 attached hereto (calculated on the basis of a 360-day year of twelve thirty -day months), shall be term bonds or serial bonds or a -2- 83 —90 c, J 0 funds and accounts held under the 1966 Ordinance and the 1980 Ordinance (each as defined in the Bond Ordinance); and WHEREAS, on July 28, 1983, in anticipation of the Commission's August recess, the Commission adopted Resolution No. 83-690 (herein called the "July Resolution") delegating to the Mayor and other officials of the City authority to fix certain details of the Bonds within the limits set forth in the July Resolution; and WHEREAS, because of unsettled market conditions, the Bonds were not sold during the Commission's August recess; and WHEREAS, the Off -Street Parking Board of the City (herein called the "Board") has advised the Commission that market conditions have somewhat improved and has requested the Commission to fix certain details of the Bonds, to award the Bonds, to make other determinations as hereinafter set forth and to repeal the July Resolution, now therefore, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Bonds shall be dated as of November 1, 1983, shall be in the denomination of $5,000 each or integral multiples thereof, shall be designated "City of Miami Parking System Revenue Bonds, Series 1983", and shall be issued in the aggregate principal amount set forth in Schedule 1 attached hereto. Section 2. (a) The Bonds shall bear interest from their date (or from the date provided for in the Bonds and in the Bond Ordinance) until their payment, payable semi-annually on the 1st day of each April and October of each year, commencing April 1, 1984, at the rates shown on Schedule 1 attached hereto (calculated on the basis of a 360-day year of twelve thirty -day months), shall be term bonds or serial bonds or a -2- 83-90u' funds and accounts held under the 1966 Ordinance and the 1980 Ordinance (each as defined in the Bond Ordinance); and WHEREAS, on July 28, 1983, in anticipation of the Commission's August recess, the Commission adopted Resolution No. 83-690 (herein called the "July Resolution") delegating to the Mayor and other officials of the City, authority to fix certain details of the Bonds within the limits set forth in the July Resolution; and WHEREAS, because of unsettled market conditions, the Bonds were not sold during the Commission's August recess; and WHEREAS, the Off -Street Parking Board of the City (herein called the "Board") has advised the Commission that market conditions have somewhat improved and has requested the Commission to fix certain details of the Bonds, to award the Bonds, to make other determinations as hereinafter set forth and to repeal the July Resolution, now therefore, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAD;I, FLORIDA: Section 1. The Bonds shall be dated as of November 1, 1983, shall be in the denomination of $5,000 each or integral multiples thereof, shall be designated "City of Miami Parking System Revenue Bonds, Series 1983", and shall be issued in the aggregate principal amount set forth in Schedule 1 attached hereto. Section 2. (a) The Bonds shall bear interest from their date (or from the date provided for in the Bonds and in the Bond Ordinance) until their payment, payable semi-annually on the 1st day of each April and October of each year, commencing April 1, 1984, at the rates shown on Schedule 1 attached hereto (calculated on the basis of a 360-day year of twelve thirty -day months), shall be term bonds or serial bonds or a -2- 83-90 10 0 0 combination thereof, shall have such Sinking Fund Requirements (as defined in the Bond Ordinance), if any, and shall be stated to mature in the amounts and on the dates, all as shown on Schedule 1 attached hereto. (b) The Bonds maturing on or after October 1, 1994 shall be subject to redemption at the option of the City as a whole at any time or in part on any interest payment date, in the inverse order of their stated maturities and by lot within a stated maturity, at the principal amount thereof, plus interest accrued thereon to the date fixed for redemption, and without premium. Section 3. Sun Bank, National Association, Orlando, Florida, is hereby designated as trustee and paying agent for the Bonds, as trustee under the Bond Ordinance (herein called the "Trustee") and as Escrow Agent for the Outstanding Bonds (as defined in the Bond Ordinance). Section 4. Upon the recommendation of the Board, the City Commission has determined that given the uncertainties and unsettled condition of the municipal bond market at the present time and the need for maximum flexibility in structuring the interest rates, maturities, principal amounts, Sinking Fund Requirements (as defined in the Bond Ordinance) and redemption provisions of the Bonds so as best to provide level debt service for the City, which flexibility would not be possible in competitive bidding, and that given the need to structure the escrow deposit requirements for the Outstanding Bonds in such a way as will comply with all federal laws, it is in the best interest of the City to award the Bonds at negotiated sale in lieu of having a competitive sale of said Bonds. The Commission hereby approves and ratifies the actions of the Board in soliciting proposals from and negotiating on behalf of the City with various underwriters, and the Bond -3- 83-90" Purchase Contract presented to the Commission b.Y william R. Hough & Co. and Dean Critter Re,•nolds, Inc. and First Equity Corporation of Florida and L.F. Rothschild, Unterberg, Towbin (herein called the "Underwriters"), is hereby approved. The Bond Purchase Contract, between the City and the Underwriters, setting forth the provisions of the Bonds and the terms and conditions upon which the Bonds will be issued (herein called the "Bond Purchase Contract") is hereby approved, and the execution and delivery of the Bond Purchase Contract in substantially the form attached hereto as Exhibit A are hereby authorized. The Bond Purchase Contract hereinabove authorized to be executed shall be executed by and on behalf of the City by the Mayor or Vice Mayor of the City, with the official seal of the City impressed or imprinted thereon and attested by the Clerk or any Deputy Clerk of the City in substantially the form presented to the Commission at the meeting of the Commission at which this resolution is adopted and as attached hereto as Exhibit A, subject to such changes, insertions, and omissions and such filling -in of blanks therein as may be approved and made in such form of Bond Purchase Contract by the officers of the City executing the same pursuant to this Section, the execution and delivery of such Bond Purchase Contract for and on behalf of the City by such officers being conclusive evidence of the approval of such officers of any such changes, insertions, omissions or filling -in of blanks. Section 5. The Commission has been presented with the final Official Statement and a preliminary Official Statement prepared by financial advisors to the City, together with various officers of the City, and has examined and considered the Official Statement. The City hereby ratifies the dis- tribution of the preliminary Official Statement and authorizes the distribution of the final Official Statement by the -4- 83-305- r._ ;'Underwriters in connection with the offering and sale of the Bonds and hereby authorizes and directs the Mayor or the Vice Mayor of the City, the Chairman of the Board and the Director of the Department of Off -Street Parking of the City to execute such Final Official Statement for and on behalf of the City substantially in the form attached hereto as Exhibit B with such changes, insertions, omissions and such filling -in of blanks therein as may be approved and made in such Official Statement by the officers of the City and the Board executing the same pursuant to this Section, and the Commission hereby further authorizes the delivery of the final Official Statement to the Underwriters for their use in connection with the offering and sale of the Bonds. Section 6. The Commission hereby awards the Bonds to the Underwriters in accordance with the provisions of the Bond Purchase Contract for a purchase price of 97.0979668% of the principal amount thereof ($13,457,778.20), and confirms its receipt of a disclosure statement from the Underwriters complying with the provisions of Section 218.385, Florida Statutes, as amended. Section 7. The Escrow Deposit Agreement between the City and Sun Bank, National Association, as Escrow Agent (herein called the "Escrow Agreement") is hereby approved, and the execution and delivery of the Escrow Agreement in substantially the form attached hereto as Exhibit C are hereby authorized. The Escrow Agreement hereinabove authorized to be executed shall be executed by and on behalf of the City by the City Manager or any Assistant City Manager or by the Mayor or Vice Mayor of the City, with the official seal of the City impressed thereon and attested by the Clerk or any Deputy Clerk of the City in substantially the form presented to the Board at the meeting of the Board at which - 5- 83-305- this resolution is adopted and as attached hereto as Exhibit C, subject to such changes, insertions, and omissions and such filling -in of blanks therein as may be approved and made in such form of Escrow Agreement by the officers of the City executing the same pursuant to this Section, the exe- cution and delivery of such Escrow Agreement for and on behalf of the City by such officers being conclusive evidence of any such changes, insertions, omissions or filling -in of blanks. Section 8. (a) As contemplated by the Bond Ordinance, the Trustee is hereby authorized and directed, without further action by the Commission, to take the actions required to cause the moneys and securities in the following funds and accounts established under the 1966 Ordinance to be transferred as follows: (i) Moneys or securities held by the depositary or depositaries under the 1966 Ordinance (herein called the "1966 Depositary") to the credit of the Revenue Fund and the On -Street Meters Fund under the 1966 Ordinance shall be transferred to the Revenue Account established by the Bond Ordinance; (ii) Moneys or securities held by the trustee under the 1966 Ordinance (herein called the "1966 Trustee") to the credit of the Bond Service Account under the 1966 Ordinance shall be transferred to the General Reserve Account established by the Bond Ordinance and applied as provided in the Bond Ordinance; (iii) Moneys or securities held by the 1966 Trustee to the credit of the Reserve Account under the 1966 Ordinance shall be transferred to the General Reserve Account established by the Bond Ordinance and applied as provided in the Bond Ordinance; 6M.90t, (iv) Moneys or securities held by the 1966 Depositary to the credit of the Renewal and Extension Fund under the 1966 Ordinance shall be transferred to the Renewal and Replacement Account established by the Bond Ordinance; (v) Moneys or securities held by the 1966 Trustee to the credit of the Expansion Fund under the 1966 Ordinance shall be transferred to the General Reserve Account established by the Bond Ordinance and applied as provided in the Bond Ordinance; and (vi) Moneys or securities, if any, held by the 1966 Trustee to the credit of the Redemption Account under the 1966 Ordinance shall be transferred to the General Reserve Account established by the Bond Ordinance and applied as provided in the Bond Ordinance. (b) The Trustee is further authorized and directed without further action by the Commission to take the actions required to cause the moneys and securities in the following funds and accounts established under the 1980 Ordinance to be transferred as follows: (i) Moneys or securities held by the trustee under the 1980 Ordinance (herein called the "1980 Trustee") to the credit of the Parking Bond Service Account under the 1980 Ordinance shall be transferred to the General Reserve Account established by the Bond Ordinance for application as provided in the Bond Ordinance; (ii) Moneys or securities, if any, held by the 1980 Trustee to the credit of the Parking Bond Redemption Account under the 1980 Ordinance shall be transferred to the General Reserve Account established by the Bond Ordinance for application as provided in the Bond Ordinance; and (iii) The portion of the moneys or securities held by the 1980 Trustee in the Parking Bond Reserve Account -7 83--;34u- equal to the amount :ihich, together with the proceeds received from the sale of the Bonds is equal to the Reserve Requirement, shall be transferred to the Reserve Account established by the Bond Ordinance, and the balance of the moneys or securities held by the Trustee in the Parking Bond Reserve Account shall be transferred to the General Reserve Account established by the Bond Ordinance. Section 9. The Bonds, upon their execution substantially in the form and manner set forth in the Bond Ordinance shall be delivered to the Underwriters upon payment of the purchase price thereof, all as more fully provided in and subject to the terms and conditions of the Bond Purchase Contract. Section 10. The Mayor, Vice Mayor, Clerk and any Deputy Clerk, and the City Manager and any Assistant City Manager are hereby authorized and directed to execute such instruments, certificates and documents as may be necessary and appropriate to carry out, and are hereby authorized and directed to do all acts and things required therein by, the provisions of this resolution, the Bonds, the Bond Ordinance, the Escrow Agreement and the Bond Purchase Contract for the full, punctual and complete performance of all the terms, covenants, provisions and agreements of this resolution, the Bonds, the Bond Ordinance, the Escrow Agreement, and the Bond Purchase Contract. Section 11. The July Resolution is hereby repealed in its entirety. Section 12. The officers, employees and agents of the City are hereby authorized and directed to do all acts and things necessary to carry into effect provisions of this resolution. Section 13. This resolution shall take effect immedi- ately upon its adoption. -8- 83-905 PASSED AND ADOPTED this 25th day of October, 1983. PlAURICE A. FERRE M A Y O I2 ATTEST: v. PH G, ONGIE_-- CI Y ChERK APPROVED AS TO FORM AND CORRECTNESS: 00' t _ Z. 164gjt�= SE R. GARCIA-PEDROSA _ TY ATTORNEY 83 •-905► SCHEDULE 1 (a) The Series 1983 Bonds shall be issued in the aggregate principal amount of $13,860,000, shall be a combination of serial Bonds and term Bonds, and shall mature in the following amounts on October 1 of the following years and shall bear interest at the following rates: Principal Interest Reoffering Year Amount Rate Prices 1984 155,000 6.000% 100% 1985 160,000 6.500 100 1986 175,000 7.000 100 1987 185,000 7.500 100 1988 200,000 8.000 100 1989 215,000 8.250 100 1990 235,000 8.500 100 1991 250,000 8.750 100 1992 275,000 9.000 100 1993 300,000 9.200 100 1994 325,000 9.400 100 1995 355,000 9.600 100 1996 390,000 9.750 100 1999 1,420,000 10.000 100 2003 2,660,000 10.250 100 2005 1,775,000 10.250 99 1/2 2009 4,785,000 10.375 100 (b) In satisfaction of the Sinking Fund Requirements (as defined in the Bond Ordinance), the Series 1983 Bonds stated to mature on October 1, 1999 will be subject to redemption in part in accordance with the provisions of the Bond Ordinance in the following amounts on October 1 of the following years: Year Amount 1997 $430,000 1998 470,000 The remaining $520,000 aggregate principal amount of Series 1983 Bonds stated to mature on October 1, 1999 will be paid at maturity. (c) In satisfaction of the Sinking Fund Requirements (as defined in the Bond Ordinance), the Series 1983 Bonds stated to mature on October 1, 2003 will be subject to redemption in part in accordance with the provisions of the Bond Ordinance in the following amounts on October 1 of the following years: Year Amount 2000 $570,000 2001 630,000 2002 695,000 The remaining $765,000 aggregate principal amount of Series 1983 Bonds stated to mature on October 1, 2003 will be paid at maturity. 83-905 r (d) In satisfaction of the Sinking Fund Requirements (as defined in the Bond Ordinance), the Series 1983 Bonds stated to mature on October 1, 2005 will be subject to redemption in part in accordance with the provisions of the Bond Ordinance in the amount of $845,000 on October 1, 2004. The remaining $930,000 aggregate principal amount of Series 1983 Bonds stated to mature on October 1, 2005 will be paid at maturity. (e) In satisfaction of the Sinking Fund Requirements (as defined in the Bond Ordinance), the Series 1983 Bonds stated to mature on October 1, 2009 will be subject to redemption in part in accordance with the provisions of the Bond Ordinance in the following amounts on October 1 of the following years: Year Amount 2006 $1,025,000 2007 1,130,000 2008 1,250,000 The remaining $1,380,000 aggregate principal amount of Series 1983 Bonds stated to mature on October 1, 2009 will be paid at maturity. 83-905+ THE CITY OF MIAMI, FLORIDA PARKING SYSTEM REVENUE BONDS, SERIES 1983 BOND PURCHASE CONTRACT October 25, 1983 Members of the City Commission of The City of Miami, Florida Gentlemen: On the basis of the representations, warranties and covenants and upon the terms and conditions contained in this Bond Purchase Contract, William R. Hough & Co., Dean Witter Reynolds Inc., L. F. Rothschild, Unterberg, Towbin and First Equity Corporation of Florida (the "Underwriters"), acting by and through their representative, William R. Hough & Co. (the "Representative"), hereby offer to purchase from The City of Miami, Florida (the "City") its Parking System Revenue Bonds, Series 1983 (the "Series 1983 Bonds") in the aggregate principal amount of $13,860,000, to be issued by the City under and pursuant to Ordinance No. 9618 (the "Bond Ordinance") enacted by the City Commission of the City (the "Commission") on May 31, 1983 and certain resolutions of the Commission adopted on October 25, 1983 (collectively, the "Resolution"), at the purchase price of $13,457,778.20 plus accrued interest thereon from (and including) the date of the Series 1983 Bonds to (but not including) the date of the Closing referred to in Section 2 hereof. The trust duties created under the Bond Ordinance were accepted or are to be accepted by a bank or trust company with trust powers which shall be designated by the City prior to the delivery of the Series 1983 Bonds (the "Trustee"). Proceeds received from the sale of the Series 1983 Bonds will be used to refund the City's presently outstanding Parking Facilities Revenue Bonds (Series A) heretofore issued in the aggregate principal amount of $3,200,000; Parking Facilities Revenue Bonds (Series B) heretofore issued in the aggregate principal amount of $1,600,000; Parking Facilities Revenue Bonds (Series C) heretofore issued in the aggregate principal amount of $3,150,000 and Parking Facilities Revenue Bonds (Series 1980) heretofore issued in the aggregate principal amount of $8,725,000 (such bonds presently outstanding herein called collectively the "Outstanding Bonds"), to make a deposit to the Reserve Account and to pay the costs of issu- ance of the Series 1983 Bonds. The aggregate principal amount of the Outstanding Bonds as of the date of issuance of the Series 1983 Bonds is $14,110,000. Other available moneys of the Department will be used to fund the balance of the Reserve Account in an amount equal to the Reserve Requirement on the Series 1983 Bonds, make a deposit to the Renewal Replacement Account and pay the costs of constructing new office facilities for the Department. SECTION 1. THE CITY'S REPRESENTATIONS AND WARRANTIES. By execution hereof, the City hereby represents and warrants to the Underwriters that: (a) The City is a body politic and corporate duly created under the laws of the State of Florida (the "State") and is validly existing as a municipal corpora- tion under the Constitution and laws of the State. The City is authorized by the provisions of the Constitu- tion, the laws of the State and the Bond Ordinance, to issue, sell and deliver the Series 1983 Bonds for the purposes specified above, enact the Bond Ordinance and the Resolution, enter into and perform its obligations hereunder and under the Escrow Deposit Agreement, and to pledge and assign, pursuant to and in accordance with the provisions of the Bond Ordinance, the Net Revenues (as defined in the Bond Ordinance) to the payment of the principal of, premium, if any, and interest on the Series 1983 Bonds. (b) The City has complied and will comply with all provisions of the Constitution and laws of the State in connection with the issuance and delivery of the Series 1983 Bonds, and has full power and authority to consum- mate all transactions contemplated by this Bond Purchase Contract, the Bond Ordinance, the Resolution, the Series 1983 Bonds, the Escrow Deposit Agreement and any and all other agreements relating thereto. (c) All of the information contained in the Offi- cial Statement, when finally reviewed and approved for distribution as provided in the Resolution, and in any amendment or supplement that may be authorized for use by the City with respect to the Series 1983 Bonds (here- inafter collectively referred to as the "Official State- ment"), will be as of the Closing Date (as hereinafter defined), true and will not contain any untrue statement of a material fact and will not omit to state a material fact necessary in order to make the statements made, in -2- 83--905- light of the circumstances under which they were made, not misleading. (d) The City has duly enacted the Bond Ordinance and the Resolution providing for the issuance of and security for the Series 1983 Bonds (including the pledge of the Net Revenues to pay the principal of, premium, if any, and interest on the Series 1983 Bonds) and the appointment of the Trustee, Escrow Agent, Paying Agent and Bond Registrar. The City has duly (1) authorized the issuance and sale of the Series 1983 Bonds upon the terms set forth herein and in the Bond Ordinance, the Resolution, the Escrow Deposit Agreement and the Offi- cial Statement; (2) approved the preliminary Official Statement and authorized the execution and delivery of the Official Statement by the Mayor or Vice -Mayor of the City, the Chairman of the Off -Street Parking Board and the Director of the Department of Off -Street Parking and the distribution thereof by the Underwriters; (3) authorized the execution, delivery and due performance of this Bond Purchase Contract, the Series 1983 Bonds, the Escrow Deposit Agreement and any and all such other agreements and documents as may be required to be exe- cuted and delivered by the City in order to carry out, give effect to and consummate the transactions contem- plated hereby and by the Official Statement. Executed counterparts of the Escrow Deposit Agreement, signed copies of the Official Statement and certified copies of the Bond Ordinance and the Resolution will be delivered to the Underwriters by the City on the Closing Date (as hereinafter defined). (e) There is no action, suit, proceeding, inquiry or investigation at law or in equity or before or by any court, public board or body pending or, to the knowledge of the City, threatened against or affecting it (or, to the knowledge of the City, any basis therefor), wherein an unfavorable decision, ruling or finding would adversely affect the transactions contemplated hereby or by the Official Statement or the validity of the Bond Ordinance, the Resolution, the Series 1983 Bonds, the Escrow Deposit Agreement, this Bond Purchase Contract or any agreement or instrument to which the City is a party and which is used or contemplated for use in the consum- mation of the transactions contemplated hereby or by the Official Statement. (f) The execution and delivery of the Official Statement, this Bond Purchase Contract, the Series 1983 -3- 83--9051 Bonds, the Escrow Deposit Agreement and the other agree- ments contemplated hereby and by the Official Statement, and compliance with the provisions thereof, will not conflict with or constitute on the part of the City a breach of or a default under any existing law, court or administrative regulation, decree or order or any agree- ment, indenture, mortgage, lease or other instrument to which the City is subject or by which the City is or may be bound. (9) The City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the City is a bond issuer whose arbi- trage certifications may not be relied upon. (h) Any certificate signed by any authorized officer or official of the City and delivered to the Underwriters shall be deemed a representation and war- ranty by the City to the Underwriters as to the state- ments made therein. (i) If, during such time as final Official Statements ar the offering and sale of t event known to the City rel City, its Department of Off ment"), the Bond Ordinance or which possibly could affect t ness of any statement of a the Official Statements, the the Underwriters in writing details of such event. the preliminary and e used in connection with he Series 1983 Bonds, any ating to or affecting the street Parking (the "Depart - the Resolution shall occur he correctness or complete - material fact contained in City will promptly notify of the circumstance and SECTION 2. PURCHASE, SALE AND DELIVERY OF THE BONDS. On the basis of the representations, warranties and covenants contained herein and in the other agreements referred to herein, and subject to the terms and conditions herein set forth, on the Closing Date (as hereinafter defined) the Underwriters jointly and severally agree to purchase from the City all but not less than all of the Series 1983 Bonds, in the aggregate principal amount of $13,860,000 and the City hereby agrees to sell to the Underwriters the Series 1983 Bonds for a purchase price of $13,457,778.20, plus accrued interest from (and including) the date of the Series 1983 Bonds to (but not including) the date of the Closing referred to in this Section 2. The Series 1983 Bonds shall bear interest from their date until their maturity, payable semiannually on the first day of each October and April of each year, commencing -4- 83-9050 April 1, 1984, at the rate or rates as set forth on Exhibit A hereto; and the Series 1983 Bonds shall be term bonds or serial bonds or a combination thereof, shall have such sinking fund requirements, if any, and shall be stated to mature in the amounts and on the dates, all as set forth on Exhibit A hereto. The Series 1983 Bonds shall be subject to redemption at the option of the City according to the terms set forth in the Bond Ordinance and the Resolution. Upon the execution hereof, the Underwriters shall deliver to the City a check payable to the order of the City in the amount of one percent (1%) of the aggregate principal amount of the Series 1983 Bonds to be issued as a good faith deposit (the "Good Faith Deposit Check") for the performance by the Underwriters of their joint and several obligations to accept and pay for the Series 1983 Bonds on the Closing Date in accordance with the provisions of this Bond Purchase Contract. The Good Faith Deposit Check shall be held by the City and immediately returned to the Representative once the Underwri- ters have performed their joint and several obligations to accept and pay for the Series 1983 Bonds on the Closing Date in accordance with this Bond Purchase Contract. In the event of the City's failure to deliver the Series 1983 Bonds on the Closing Date (other than for fault of the Underwriters), or if the City shall be unable to satisfy the conditions to the obligations of the Underwriters contained herein (unless such conditions are waived by the Underwriters), or if the obli- gations of the Underwriters shall be terminated for any reason permitted herein, the Good Faith Deposit Check shall be immediately returned to the Representative without inter- est and such return shall constitute a full release and discharge of all claims by the Underwriters against the City arising out of the transactions contemplated hereby. Only in the event that the Underwriters fail (other than for a reason permitted herein) to accept and pay for the Series 1983 Bonds at the Closing as herein provided, shall the Good Faith Deposit Check be cashed and the proceeds thereof retained by the City as and for liquidated damages for such failure and for any defaults hereunder on the part of the Underwriters, and such retention shall constitute a full release and discharge of all claims by the City against the Underwriters arising out of the transactions contemplated hereby. The City and the Underwriters understand that, in such event, the City's actual damages may be greater or may be less than such sum. Accordingly, the Underwriters hereby waive any right to claim that the City's actual damages are less than such sum, -5- 83-W ezo and the acceptance of a waiver of any right from the Underwriters. this offer by the City shall constitute the City may have to additional damages It shall be a condition of the City's obligation to sell and deliver the Series 1983 Bonds to the Underwriters that the entire aggregate principal amount of the Series 1983 Bonds shall be accepted and paid for by the Underwriters at the Closing (as hereinafter defined). It shall be a condi- tion of the obligation of the Underwriters to purchase and accept delivery of the Series 1983 Bonds that the entire aggregate principal amount of the Series 1983 Bonds shall be issued and delivered by the City on the Closing Date. The Series 1983 Bonds shall be issued under and secured as provided in the Bond Ordinance and the Resolution, and the Series 1983 Bonds shall have the maturities and interest rates as set forth in Exhibit A hereto. Compensation to the Underwriters and costs of issuance shall be in the approxi- mate amounts set forth in Exhibit B hereto. The information required by Section 218.385, Florida Statutes, as amended, is set forth in Exhibit B hereto. Payment for the Series 1983 Bonds shall be made in federal funds payable to the order of the City, at a location to be designated by the Underwriters, at 10:00 A.M. Eastern Standard Time, on November 23, 1983, or such other time or date as shall be mutually agreed upon by the City and the Representative; provided, however, that such date be at least 22 days after the execution of this Bond Purchase Contract. The time and date of such delivery and payment is herein called the "Closing Date," and such delivery and payment is herein called the "Closing." The Series 1983 Bonds shall be delivered in definitive form, bear CUSIP numbers (provided neither the printing of a wrong number on any Series 1983 Bond nor the failure to print a number thereon snall constitute cause to refuse delivery of any Series 1983 Bond) and shall be issued as fully registered bonds in such denominations of $5,000 or integral multiples thereof and registered to such persons as the Underwriters shall specify in writing at least ninety six (96) hours prior to the Closing Date. The Series 1983 Bonds shall be available for examination and packaging by the Underwriters at least twenty (20) hours prior to the Closing Date at such location as designated by the Representative. SECTION 3. CONDITIONS TO THE UNDERWRITERS' OBLIGATIONS. The Underwriters' obligations hereunder shall be subject to the due performance by the City of its obligations and 83-9044. f agreements to be performed hereunder at or prior to the Closing Date and to the accuracy of the compliance with the City's representations and warranties contained herein, as of the date hereof and as of the Closing Date, and are also subject to the following conditions: (a) The Series 1983 Bonds, the Escrow Deposit Agreement, the Official Statement and this Bond Purchase Contract shall have been duly authorized, executed and delivered in the form heretofore approved by the Repre- sentative with only such changes therein as shall be mutually agreed upon by the City and the Representative. (b) On the date of execution hereof, there shall be delivered to the Underwriters a letter or letters from Deloitte Haskins & Sells, certified public account- ants, in form and substance satisfactory to the Under- writers, and at the time of Closing, there shall be delivered a letter or letters in substantially the form received on the date of execution hereof, concerning the Official Statement, with appropriate changes between the letters to make reference to the final Official State- ment rather than the preliminary Official Statement and to update the information contained in the prior letter to a date not more than five days prior to Closing. Deloitte Haskins & Sells shall further deliver at the time of Closing a report of verification of the calcula- tion of the amount of proceeds of the Series 1983 Bonds required to refund the Outstanding Bonds in form and substance satisfactory to Bond Counsel, Underwriter and Underwriters' Counsel. (c) On the date of execution hereof, there shall be delivered to the Underwriters a report of Conrad Associates East, Chicago, Illinois, an independent parking consultant to the City, in substantially the form and substance contained in the preliminary Official Statement relating to the Series 1983 Bonds. (d) At the Closing, the Representative shall receive: (1) (a) the unqualified approving opinion of Brown, Wood, Ivey, Mitchell & Petty, Bond Counsel, and supplemental opinions, which contain opinions substantially to the effect of those set forth in Exhibits C and D hereto, respectively, all dated as of the Closing Date, satisfactory in form and sub- stance to the Representative and Kutak Rock & Huie and Fine Jacobson Block Klein Colan & Simon, P.A., -7- 83--9051 0 0 counsel to the Underwriters, ("Underwriters' Coun- sel"); (b) the opinion, dated as of the Closing Date, of Counsel for the Trustee, satisfactory in form and substance to the Representative and Under- writers' Counsel; (c) the opinion, dated as of the Closing Date, satisfactory in form and substance to the Representative; and (d) an opinion, dated as of the Closing Date, of the City Attorney and General Counsel of the Department which is satisfactory in form and substance to the Representative, Under- writers' Counsel and Bond Counsel as to those matters which may be reasonably required; (2) A certificate, satisfactory to the Under- writers and Underwriters' Counsel, of the Mayor or Vice -Mayor of the City, attested by the City Clerk or of any other of the City's duly authorized officers satisfactory to the Representative, dated as of the Closing Date, to the effect that: (i) the City has duly performed all of the City's obliga- tions to be performed at or prior to the Closing Date and that each of the City's representations and warranties contained herein is true as of the Closing Date; (ii) the City has, by all necessary action, enacted the Bond Ordinance and the Resolu- tion and authorized the execution, delivery, receipt and due performance of the Series 1983 Bonds and the Escrow Deposit Agreement and any and all such other agreements and documents as may be required to be executed, delivered and received by the City to carry out, give effect to and consum- mate the transactions contemplated hereby and by the Official Statement; (iii) no litigation is pending, or, to his knowledge, threatened, to restrain or enjoin the issuance or sale of the Series 1983 Bonds or in any way affecting any authority for or the validity of the Bond Ordi- nance, the Resolution, the Series 1983 Bonds, the Escrow Deposit Agreement or existence or powers of the City or the Department or the Off -Street Parking Board; (iv) the execution, delivery, receipt and due performance of the Series 1983 Bonds, the Escrow Deposit Agreement and the other agreements contemplated hereby and by the Official Statement under the circumstances contemplated hereby and thereby and compliance of the City with the provisions thereof will not conflict with or constitute on the part of the City or the Depart- ment or the Off -Street Parking Board a breach of or • 0 0 a default under any existing law, court or adminis- trative regulation, decree or order or any agree- ment, indenture, lease or other instrument to which the City or the Department or the Off -Street Park- ing Board is subject or by which the City or the Department or the Off -Street Parking Board is or may be bound, and (v) the information contained in the Official Statement is true and correct in all material respects and the Official Statement did not as of this date, and does not as of the date of delivery of the Series 1983 Bonds, contain any untrue or incorrect statement of material fact and does not omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. (3) Evidence that Standard & Poor's Corpora- tion has assigned the rating of at least "A-" to the Series 1983 Bonds, Moody's Investors Service, Inc. has assigned the rating of at least "A" to the Series 1983 Bonds and that such ratings remain in effect as of the Closing Date; (4) Such additional certificates and other documents, agreements and opinions as the Under- writers may reasonably request to evidence perform- ance of or compliance with the provisions hereof and the transactions contemplated hereby and by the Official Statement, all such certificates and other documents to be satisfactory to the Underwriters and our counsel. (e) The Series 1983 Bonds shall have been quali- fied or registered for sale in, or, as set forth in a memorandum of Underwriters' Counsel, shall oe exempt from qualification or registration under the Blue Sky laws of such states of the United States as shall be designated by the Underwriters. SECTION 4. THE UNDERWRITERS' RIGHT TO CANCEL. The Representative shall have the right to cancel the Underwriters' obligation hereunder to purchase the Series 1983 Bonds (and such cancellation shall not constitute a default for purposes of Sections 2 and 7 hereof) by notifying the City in writing or by telegram of their election to do so between the date hereof and the Closing Date, if at any time hereafter and prior to the Closing Date (or such other date as specified herein): -9- 0 r (a) A committee of the House of Representatives or the Senate of the Congress of the United States shall have pending before it legislation, or a tentative decision with respect to legislation shall be reached by a committee of the House of Representatives or the Senate of the Congress of the United States of America, or legislation shall be favorably reported by such a committee or be introduced, by amendment or otherwise, in, or be passed by, the House of Representatives or the Senate, or recommended to the Congress of the United States of America for passage by the Chairman of the Finance Committee, or Ways and Means Committee of the Senate or House of Representatives, respectively, of the United States of America, or be enacted by the Congress of the United States of America, or a decision by a court established under Article III of the Constitution of the United States of America, or the Tax Court of the United States of America, shall be rendered, or a rul- ing, regulation or order of the Treasury Department of the United States of America or the Internal Revenue Service shall be made or proposed having the purpose or effect of imposing federal income taxation, or of mate- rially changing the existing Treasury rules and regula- tions as they pertain to the Series 1983 Bonds, or any other event shall have occurred which results in the imposition of federal income taxation, upon revenues or other income of the general character to be derived by the City, the Department or by any similar body or upon interest received on obligations of the general char- acter of the Series 1983 Bonds, or the Series 1983 Bonds, which, in the Representative's opinion, materially adversely affects the market price of the Series 1983 Bonds; (b) Any legislation, ordinance, rule or regulation shall be introduced in or be enacted by any governmental body, department or agency in the State of Florida, or a decision by any court of competent jurisdiction within the State shall be rendered which, in the Representa- tive's opinion, materially adversely affects the market price of the Series 1983 Bonds; (c) A stop order, ruling, regulation or official statement by, or on behalf of, the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Series 1983 Bonds, or the issuance, offering or sale of the Series 1983 Bonds, including all the underlying -10- 83•-9056 obligations, as contemplated hereby or by the Official Statement, is in violation or would be in violation of any provision of the federal securities laws, the Secu- rities Act of 1933, as amended and as then in effect, or the registration provisions of the Securities Exchange Act of 1934, as amended and as then in effect, or the qualification provisions of the Trust Indenture Act of 1939, as amended and as then in effect; (d) Legislation shall be enacted by the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered, to the effect that obligations of the general character of the Series 1983 Bonds, or the Series 1983 Bonds, are not exempt from registration under or from other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Bond Ordinance is not exempt from qualification, as an inden- ture under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; (e) Any event shall have occurred, or information become known, which, in the Representative's opinion, makes untrue in any material respect any statement or information contained in the preliminary or final Offi- cial Statement as originally circulated, or has the effect that the preliminary or final Official Statement as originally circulated contains an untrue statement of a material fact or omits to state a material fact neces- sary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading; (f) Additional material restrictions not in force as of the date hereof shall have been imposed upon trading in municipal securities generally by any govern- mental authority or by any national securities exchange; (g) The Comptroller of the Currency, the New York Stock Exchange or other national securities exchange, or any governmental authority, shall impose, as to the Series 1983 Bonds or obligations of the general char- acter of the Series 1983 Bonds, any material restriction not now existing, or increase materially those now in force, with respect to the extension of credit by, or the change to the net capital requirements of, or finan- cial responsibility requirements of, the Underwriters; -11- 83-90; (h) A general banking moratorium shall have been established by federal, New York or Florida authorities; (i) A war involving the United States of America shall have been declared, or any conflict involving the armed forces of the United States of America shall have escalated, or any other national emergency relating to the effective operation of government or the financial community shall have occurred, which, in the Representa- tive's opinion, materially adversely affects the market price of the Series 1983 Bonds; (j) The rating for the Series 1983 Bonds, or any other bonds issued by the City, shall have been down- graded or withdrawn by a national rating agency, or the conditions of any rating agency regarding the final approval of any rating of the Series 1983 Bonds shall not have been satisfied, which, in the Representative's opinion, materially adversely affects the market price of the Series 1983 Bonds; or (k) A material default not known by the Under- writers at the time of execution of this Bond Purchase Contract shall have occurred with respect to the obliga- tions of, or proceedings have been instituted under the federal bankruptcy laws or any similar state laws by or against any state of the United States or any city located in the United States having a population in excess of one million persons or any entity issuing obligations on behalf of such a city or state and which default or proceedings, in the Underwriters' opinion, materially adversely affects the market price of the Series 1983 Bonds: SECTION 5. CONDITIONS OF THE CITY'S OBLIGATIONS. The City's obligations hereunder are subject to the Underwriters' performance of their obligations hereunder. SECTION 6. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY. All of the City's representations, warranties and agree- ments shall remain operative and in full force and effect, regardless of any investigations made by the Underwriters on their own behalf, and shall survive delivery of the Series 1983 Bonds to the Underwriters. -12- 83-905- All expenses and costs to effect the authorization, preparation, issuance, delivery and sale of the Series 1983 Bonds (the Representative's fee for performing the escrow calculation), the fees and disbursements of Brown, Wood, Ivey, Mitchell & Petty, Bond Counsel, the expenses and costs for the preparation, printing, photocopying, execution and delivery of the Series 1983 Bonds, the preliminary and final Official Statements, the Escrow Deposit Agreement, this Bond Purchase Contract (excluding fees of the Underwriters' Counsel) and all other agreements and documents contemplated hereby, the fees of rating agencies with respect to the Series 1983 Bonds, yield and cash flow verification fees, and the various expenses and costs of Closing) shall be paid by the City solely out of the proceeds of the Series 1983 Bonds. The Underwriters shall pay the fees and disbursements of Underwriters' Counsel and any travel and entertainment expenses incurred by the Underwriters and Underwriters' Counsel. In the event there is no Closing, the Underwriters and the City shall each bear their own expenses. SECTION 8. USE OF OFFICIAL STATEMENT. The City hereby authorizes the use, and will make avail- able at its expense a reasonable number of copies, of the preliminary and final Official Statements for use by the Underwriters in connection with the sale of the Series 1983 Bonds. SECTION 9. NOTICE. Any notice or other communication to be given to the City under this Bond Purchase Contract may be given by mail- ing or delivering the same in writing to the City of Miami, Department of Off -Street Parking, 190 N.E. Third Street, Miami, Florida 33132; and any notice or other communication to be given to the Underwriters under this Bond Purchase Agreement may be given by delivering the same in writing to William R. Hough & Co., One Fourth Street, North, St. Petersburg, Florida 33731, Attention: Peter W. Zent. SECTION 10. APPLICABLE LAW; NONASSIGNABILITY. This Bond Purchase Contract shall be governed by the laws of the State of Florida. This Bond Purchase Contract shall not be assigned by the City. -13- 83-905, �rnwv.,ers�- SECTION 11. PARTIES IN INTEREST. This Bond Purchase Contract has been and is made for the benefit of the City and the Underwriters and no other persons shall acquire or have the right or interests under or by virtue hereof. SECTION 12. EXECUTION OF COUNTERPARTS. This Bond Purchase Contract may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same document. Approved as to legal form and sufficiency: Accepted as of the date first above written: THE CITY OF MIAMI, FLORIDA By Mayor Very truly yours, WILLIAM R. HOUGH & CO., as Representative of the Underwriters By -14- 83-905, EXHIBIT A THE SERIES 1983 BONDS Due October 1 of Following Principal Amount 1984 $155,000 1985 160,000 1986 175,000 1987 185,000 1988 200,000 1989 215,000 1990 235,000 1991 250,000 1992 275,000 1993 300,000 1994 325,000 1995 355,000 1996 390,000 1999 1,420,000 2003 2,660,000 2005 1,775,000 2009 4,785,000 -15- Interest Rate Price 6.0% 100 % 6.5 100 7.0 100 7.5 100 8.0 100 8.25 100 8.5 100 8.75 100 9.0 100 9.2 100 9.4 100 9.6 100 9.75 100 10.0 100 10.25 100 10.25 99.5 10.375 100 83-' 905, EXHIBIT B [To Be Supplied By Underwriters] -16- 83-9051 EXHIBIT C DESCRIPTION OF CLOSING OPINION OF BOND COUNSEL The closing opinion of Brown, Wood, Ivey, Mitchell & Petty, which is requi A under Section 3(c)(1) of this Bond Purchase Contract, shall be addressed to the City and shall be substantially in the form contained in the preliminary Official Statement relating to the Series 1983 Bonds. -17- 83-9050 EXHIBIT D DESCRIPTION OF SUPPLEMENTAL OPINION OF BOND COUNSEL The supplemental opinion of Brown, Wood, Ivey, Mitchell & Petty, which is required under Section 3(-)(1) of this Bond Purchase Contract, shall be addressed to the Underwriters, dated the date of Closing and to be to the following effect: (1) The Bond Purchase Contract has been duly authorized, executed and delivered by the City and constitutes a legal, valid and binding agreement of the City; (2) The Escrow Deposit Agreement has been duly authorized, executed and delivered by the City and constitutes a legal, valid and binding agreement of the City; (3) Upon the purchase and deposit of the Govern- ment Obligations (as defined in the Escrow Deposit Agreement) with the Escrow Agent, the Net Revenues (as defined in the Ordinance) will thereupon be available for pledge and application under the Bond Ordinance to the payment of the principal of and interest on the Series 1983 Bonds; provided, however, that the holders of the Outstanding Bonds (as defined in the Ordinance) would have a claim upon Revenues (as defined in the Ordinance) superior to the claim thereon of the holders of the Series 1983 Bonds in the event that the proceeds of the Government Obligations on deposit with the Escrow Agent were insufficient to pay the principal of and the interest on the Outstanding Bonds to the extent of any such insufficiency; (4) The Series 1983 Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Bond Ordinance is exempt from qualification as an indenture pursuant to the Trust Indenture Act of 1939, as amended; -18- 83-9051 (5) The statements contained in the Official Statement under the captions "Authorization for the Series 1983 Bonds," "Description of the Series 1983 Bonds," "Redemption Provisions," "Proposed Constitu- tional Referendum on Revenue Limitations," "Validation" and "Tax Exemption" and in the appendix entitled "Sum- mary of Bond Ordinance" (insofar as such appendix pur- ports to summarize certain provisions of the Bond Ordinance) fairly present the information purported to be shown therein. -19- 83--90"1 william R. Hough & Co. (�':E FOURTH STREET r,ORTH P O GRA\ ER'0 1 ST rETERSi URG. FLORIDA 33731 iE�3b23 P�00 ;,Sembers of the City Commission City of Miami 351.0 Pan American Drive 14i ami , FL 33133 0 October 25, 1983 RE: $13,860,000 CITY OF MIAMI, FLORIDA, PARKING SYSTEM REVENUE BONDS, SERIES 1983 Gentlemen: In connection with the proposed issue of the above -mentioned bonds (the "Bonds") arrangements are being made for the purchase of the Ronds by the under- writers listed in schedule attached hereto. The purpose of this letter is to furnish, pursuant to thr provisions of. subsection W d Section 218.385, Florida Statutes as amended. We represent to you as follows: a. The co -senior managing underwriters are William R. Hough & Co. and Dean Witter Reynolds and co -managers are L.F. Rothschild, Unterberg, Towbin and First Equity Corporation of Florida. The addresses and estimated expenses appear on Schedule 1 attached hereto. b. There are no "finders", as defined in Section 218.386, Florida Stat- utes, as amended, connected with the issuance of the Bonds; c. The underwriting spread expected to be realized by the underwriters wiII be $28.38 per $1,000 of par amount of Bonds. d. The rnanage,�ent fee to be charged by the four managers is $3.00 per S1,000 principal amount of Bonds; e. 110 fee, bonus or other compensation has been or will be paid by any of the Underwriters in connection with the issue of the Bonds to any per- son not regularly employed or retained by the Underwriter (including any "finder"); and f. The name and address of the Financial Advisor to the City is set forth in Schedule 1 attached hereto. We understand that you do not require any further discussion pursuant to Section 218.385(4), Florida Statues, as amended. Very truly yours, WILLIAM R. HO & CO. Peter W. Ze t Vice Presiden 83-905! STAI E. CGUP:TY AND rl.UNICIPAL I ONDS Schedule 1 NOTICE OF DISCLOSURE PURSUANT TO FLORIDA STATUTES, SECTION 218.385 1. Itemized List of Expenses (a) Underwriters' Counsel S34,930.38 (b) COMILnicat ion 5,000.07 (c) Travel and Out of Pocket 14,695.12 (d) Clearance and Handling 6,930.00 (e) Munifacts, Cusip and MSRB 8,160.00 (f) Computer 13,860.O0 (g) Closing 9,100.00 (h) Advertising 8,221.30 ( i ) Federal Funds 3,850.00 (j ) Miscellaneous 3,000.00 2. No compensation is to be paid to anyone to act an an intermediary between the City and the Underwriter. 3. The expected Underwriters' spread is $28.38 per 51,O00.00 par amount of bonds. 4. The expected management fee to be realized is $3.00 per $1,000.00 par amount of bonds. 5. No fees or bonuses are to be paid by the Underwriter. 6. The Underwriters are: William R. Hough & Co. Dean Witter Reynolds, Inc. One Fourth Street North 325 John Knox Road, Bldg. T Suite 924 Tallahassee, FL 32303 St. Petersburg, FL 33701 L. F. Rothschild, Unterberg, Towbin First Equity Corporation of FL 55 Water Street 100 Worth Biscayne New York, NY 10041 IMiami , FL 33132 7. The Financial Advisor is: Shearson/American Express, Inc. 100 North Biscayne Blvd. Suite 1411 Miami, FL 33132 Dry _: 10/25/83 Disc: 12,026 ESCROW DEPOSIT AGREEMENT THIS ESCROW DEPOSIT AGREEMENT, dated November 23, 1983, by and between the City of Miami, Florida (the "City") and Sun Bank, National Association, a national banking associa- tion organized and existing under the laws of the United States of America and having its principal corporate trust office in the City of Orlando, Florida, as Escrow Agent (the "Escrow Agent") W I T N E S S E T H: WHEREAS, the City, pursuant to the provisions of Ordinance No. 7414, duly enacted by the City Commission of the City (the "City Commission") on March 16, 1966, as amended (the "1966 Ordinance") has heretofore issued its Parking Facilities Revenue Bonds (Series A) in the aggregate principal amount of $3,200,000; its Parking Facilities Revenue Bonds (Series B) in the aggregate principal amount of $1,600,000; and its Parking Facilities Revenue Bonds (Series C) in the aggregate principal amount of $3,150,000 (said bonds presently outstanding being herein called, collectively, the "Outstanding 1966 Bonds"); and WHEREAS, pursuant to Ordinance No. 9060, duly enacted by the City Commission on April 10, 1980 (the "1980 Ordi- nance"), the City has also issued its Parking Facilities Revenue Bonds (Series 1980), in the aggregate principal amount of $8,725,000, all of which are now outstanding and unpaid (the "Outstanding 1980 Bonds" and, together with the Outstanding 1966 Bonds, the "Outstanding Bonds"); and WHEREAS, pursuant to Ordinance No. 9618, duly enacted by the City Commission on May 31, 1983 (the "Bond Ordin- ance"), bonds of the City designated "Parking System Revenue Bonds, Series 1983", will be issued and delivered on the date hereof in the aggregate principal amount of $13,860,000 (the "Series 1983 Bonds"), for the purpose of providing funds, together with other available funds, for refunding all of the Outstanding Bonds, for making a de- posit to the Reserve Account created by the Bond Ordinance and for paying the costs of issuance of the Series 1983 Bonds; and 83-90S ___ r r WHEREAS, the trustee for the Outstanding 1980 Bonds is Florida National Bank of Miami (the "1980 Trustee"); and WHEREAS, the trustee for the Outstanding 1966 Bonds is Southeast Bank, N.A. (the "1966 Trustee"); and WHEREAS, the City has made arrangements for the Escrow Agent to purchase from a portion of the proceeds of the Series 1983 Bonds together with cash to be deposited with the Escrow Agent, Government Obligations (hereinafter defined), the principal of and interest on which, when due, will provide sufficient moneys to enable the Escrow Agent: (i) to deposit with the 1966 Trustee, sufficient moneys to pay as the same shall become due and payable the principal of all Outstanding 1966 Bonds, (ii) to deposit with the 1980 Trustee, sufficient moneys to pay as the same shall become due and payable the principal of all Outstanding 1980 Bonds stated to mature on or before October 1, 1996 and the principal of and redemption premium payable on October 1, 1990 with respect to the Outstanding 1980 Bonds stated to mature on October 1, 1997 through October 1, 2009, (iii) to deposit with the 1966 Trustee and the 1980 Trustee sufficient moneys to pay as the same shall become due and payable the interest to accrue on all Outstanding Bonds to their respective dates of payment or redemption, and (iv) to pay associated expenses; and WHEREAS, in order to insure that the procedure re- quired for paying the Outstanding Bonds will be followed, the City and the Escrow Agent, with the consents of the 1966 Trustee and the 1980 Trustee, have agreed to enter into this Escrow Deposit Agreement prior to the delivery of the Series 1983 Bonds; NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 1. Receipt of a true and correct copy of the Bond Ordinance is hereby acknowledged by the Escrow Agent, and reference herein to or citation herein of any provision of 2. 93-905 f `i said document shall be deemed to incorporate the same as a part hereof in the same manner and with the same effect as if such provision were fully set forth herein. 2. There is hereby created and established with the Escrow Agent a special, segregated and irrevocable escrow fund designated the "City of Miami Parking Facil- ities Revenue Bonds Escrow Fund" (the "Escrow Fund") to be held in the custody of the Escrow Agent for the benefit of the holders of the Outstanding Bonds, as a trust fund separate and apart from other funds of the City and the Escrow Agent. The Escrow Agent hereby accepts the Escrow Fund and acknowledges the receipt and deposit to the credit of the Escrow Fund of the sum of $ in immediately available funds representing a portion of the proceeds received by the City from the sale and delivery of the Series 1983 Bonds (the "Bond Proceeds"). 3. The Escrow Agent represents and acknowledges that, concurrently with the deposit of the Bond Proceeds and other moneys under Paragraph 2 above, it has used such Bond Proceeds and moneys (a) to purchase on behalf and for the account of the City, from the United States Treasury, certain non -interest bearing and interest -bear- ing United States Treasury Certificates, Notes and Bonds -- State and Local Government Series, which are direct obli- gations of the United States of America, in book -entry form in the aggregate principal amount of $ (the "SLGs") by payment of said principal amounts to the Fed- eral Reserve Bank in Jacksonville, Florida, and for which the Escrow Agent will credit such obligations (which are described in Appendix A attached to this Agreement and made a part hereof) to the Escrow Fund and (b) to make a cash deposit in the Escrow Fund in the amount of $ The SLGs are hereinafter collectively referred to as the "Government Obligations". 4. The City represents that the interest on and the principal amounts successively maturing of the Govern- ment Obligations in accordance with their terms and an initial cash deposit are sufficient to insure that moneys will be available to the Escrow Agent for payment to the 1966 Trustee and the 1980 Trustee, in amounts sufficient to pay and redeem the Outstanding 1966 and 1980 Bonds as described in the preambles to this Agreement. If the City shall fail to deposit with the Escrow Agent cash and Government Obligations the interest on and principal of which shall be sufficient to provide the 1966 Trustee and 3. 93-905 the 1980 Trustee with funds sufficient to make such payments as they become due and payable, the City shall timely deposit in the Escrow Fund, solely from Net Revenues of the Parking System (as defined in the Bond Ordinance), such additional amounts as may be required to meet fully the amount so to become due and payable. Notice of any insuffi- ciency shall be given by the Escrow Agent to the City as promptly as possible, but the Escrow Agent shall in no manner be responsible for the City's failure to make deposits. The Escrow Agent hereby agrees to accept from the City such additional payments and to deposit such amounts to the credit of the Escrow Fund. Nothing contained in this Escrow Deposit Agreement, however, shall prohibit the City's payment or the Escrow Agent's acceptance of such additional amounts from legally available moneys derived from sources other than Net Revenue of the Parking System. 5. To the extent funds are available in the Escrow Fund, the Escrow Agent shall provide the 1966 Trustee and the 1980 Trustee with amounts sufficient to pay the redemp- tion premium, if any, and the interest on and the principal of each Outstanding Bond in the manner specified in the 1966 Ordinance or the 1980 Ordinance. Any amount deposited to the credit of the Escrow Fund from Net Revenues shall be applied first to the payment of the Outstanding 1966 Bonds. 6. The Escrow Agent shall hold, for the benefit of the holders of the Outstanding Bonds, the book -entry credits of the SLGs in the Escrow Fund at all times as a special and separate trust fund wholly segregated from other funds and securities on deposit with the Escrow Agent, shall never commingle the Government Obligations with other funds or securities owned or held by it, and shall never at any time use, loan, or borrow the same in any way other than as provided in this Agreement. Nothing herein con- tained shall be construed as requiring the Escrow Agent to keep the identical money, or any part thereof, in the Escrow Fund if it is impractical, but money of an equal amount, except to the extent represented by the Government Obligations, must always be maintained on deposit in the Escrow Fund as trust funds held by the Escrow Agent as trustee; and a special account for the Escrow Fund evi- dencing such facts shall at all times be maintained on the books of the Escrow Agent, together with such Govern- ment Obligations so purchased. 7. The Escrow Agent shall from time to time collect and receive the interest accruing and payable on the Govern- ment Obligations and the maturing principal amounts of 4. 83-90it 4. ILI the Government Obligations as the same become due, and credit the same to the Escrow Fund, so that the interest on and proceeds of the Government Obligations, as such become due, will be available, together with the cash deposit to such fund, to meet the payment requirements of the Outstand- ing Bonds with interest thereon as shown in Appendix B to this Agreement. 8. Money deposited in the Escrow Fund shall be in- vested only in the Government Obligations listed in Appen- dix A, and neither the City nor the Escrow Agent shall otherwise invest or reinvest any money in the Escrow Fund. The Escrow Fund shall continue in effect until the date upon which the Escrow Agent makes the final payment to the 1966 Trustee and the 1980 Trustee in an amount sufficient to pay the balance of the principal of and interest and redemption premium, if any, coming due on the Outstanding Bonds whereupon the Escrow Agent shall sell or redeem any Government Obligations remaining in the Escrow Fund, and shall remit to the City the proceeds thereof, together with all other money, if any, then re- maining the Escrow Fund. 9. The Escrow Agent shall not be liable or respon- sible for any loss resulting from any investment made in the Government Obligations. 10. In the event of the Escrow Agent's failure to account for any funds or securities received by it for the City's account under this Agreement, such funds and securities shall be and remain the property of the Escrow Fund, and the City and the holders of the Outstanding Bonds shall be entitled to the preferred claim, and shall have the first lien upon such funds, and securities enjoyed by a trust beneficiary. The funds and securities received by the Escrow Agent under this Agreement shall not be considered as a banking deposit by the City, and the City shall have no right or title with respect thereto. The funds and securities so re- ceived by the Escrow Agent as escrowee and trustee under this Agreement shall not be subject to checks or drafts drawn by the City. 11. On or before the first day of , , and of each year, commencing in , 1983, so long as tTie Escrow Fund is maintained under this Agreement, the Escrow Agent shall forward by letter to the City to the attention of the Director of the Department of Off -Street 5. 83-9Q" Parking of the City (the "Department"), and to the Off -Street Parking Board (the "Board") to the attention of the Chairman, a statement in detail of the Government Obligations held, and the income and maturities thereof, and withdrawals of money from the Escrow Fund since the last letter furnished pursuant to this paragraph. 12. The Escrow Agent shall have no responsibility to any person in connection herewith except those specifically provided herein and shall not be responsible for anything done or omitted to be done by it except for its own negli- gence or misconduct or default in the performance of any obligation imposed on it hereunder. The Escrow Agent, except as trustee under the Bond Ordinance or as herein specifically provided for, is not a party to, nor is it bound by nor need it give consideration to the terms or provisions of any other agreement or undertaking between the City and other persons, and the Escrow Agent assents to and is to give consideration only to the terms and provi- sions of this Agreement. Unless it is specifically pro- vided, the Escrow Agent has no duty to determine or inquire into the happening or occurrence of any event or contingency or the performance or failure of performance of the City with respect to arrangements or contracts with others, with the Escrow Agent's sole duty hereunder being to safeguard the Escrow Fund and to dispose of and deliver the same in accordance with this Agreement. If, however, the Escrow Agent is called upon by the terms of this Agreement to determine the occurrence of any event or contingency, the Escrow Agent shall be obligated, in making such determina- tion, to exercise reasonable care and diligence, and in event of error in making such determination the Escrow Agent shall be liable for its own misconduct or its negligence. In determining the occurrence of any such event or contin- gency, the Escrow Agent may request from the City, the Department, the Board or any other person such reasonable additional evidence as the Escrow Agent in its discretion may deem necessary to determine any fact relating to the occurrence of such event or contingency, and in this connec- tion may inquire and consult with the City, the Department and the Board, among others, at any time. The Escrow Agent may consult with legal counsel, and the opinion of such counsel shall be full and complete authority and protection to the Escrow Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 13. This Agreement is between the City and the Escrow Agent only, with the consents of the 1966 Trustee and the 1980 Trustee, and in connection therewith the Escrow 6. 83-905' Agent is authorized by the City to rely upon the representa- tions of the City in connection with this Agreement, and the Escrow Agent shall not be liable to any person in any manner for such reliance. The duty of the Escrow Agent hereunder shall only be to the City and the holders of the Outstanding Bonds. Neither the City nor the Escrow Agent shall assign or attempt to assign or transfer its interest hereunder or any part hereof. Any such assignment or attempted assign- ment shall be in direct conflict with this Agreement and without effect. 14. The Escrow Agent may act upon any written notice, request, waiver, consent, certificate, receipt, author- ization, power of attorney, or other instrument or docu- ment which the Escrow Agent in good faith believes to be genuine and to be what it purports to be. 15. Any notice, authorization, request, or demand required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when mailed by registered or certified mail, postage prepaid, addressed as follows: As to the City, if addressed to Department of Off-S.treet Parking of The City of Miami 190 N.E. 3rd Street Miami, Florida 33132 Attention: Director with a copy to: City Attorney The City of Miami 169 East Flagler Street, 11th Floor Miami, Florida 33101 As to the Escrow Agent, if addressed to Sun Bank, National Association Corporate Trust Department 200 South Orange Avenue Orlando, Florida 32801 As to the Board -- Off-Street Parking Board 190 N.E. Third Street Miami, Florida 33132 Attention: Chairman 7. 83-905 r `r 16. whenever under the terms of this Agreement the performance date of any act to be done hereunder shall fall on a day which is not a legal banking day in the City of Orlando, Florida, and upon which the Escrow Agent is not open for business, the performance thereof on the next succeeding business day of the Escrow Agent shall be deemed to be in full compliance with this Agreement. whenever time is referred to in this Agreement it shall be the time recog- nized by the Escrow Agent in the ordinary conduct of its normal business transactions. 17. Time shall be of the essence in the performance of obligations from time to time imposed upon the Escrow Agent by this Agreement. 18. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors, and assigns. 19. The Escrow Agent acknowledges receipt of $1.00 and other good and valuable consideration for all of its costs, charges, services, and expenses as Escrow Agent for the Outstanding Bonds; provided, however, to the extent per- mitted by law, the City agrees to indemnify the Escrow Agent and to hold it harmless against any liability which it may incur while acting in good faith in its capacity as Escrow Agent under this Agreement, including, but not limited to, any court costs and attorneys' fees. Such costs, charges, expenses, and indemnification of the Escrow Agent shall be paid solely from the Net Revenues of the Parking System and in no event shall such costs, charges, expenses, and indemnification give rise to any claim against the Escrow Fund, the moneys in which are solely for the benefit of the holders of the Outstanding Bonds. 20. The Escrow Agent may resign and thereby become discharged from the trusts hereby created, by notice in writing given to the City and published once in a newspaper of general circulation published in the City of Miami, Florida, and in a daily newspaper of general circulation or a financial journal published in the Borough of Manhattan, City and State of New York, not less than sixty (60) days before such resignation shall take effect. The Escrow Agent will continue to serve as Escrow Agent until a successor is appointed. Such resignation shall take effect immediately, however, upon the appointment of a new Escrow Agent here-+ under, if such new Escrow Agent shall be appointed before the time limited by such notice and shall then accept the trusts thereof. 8. t33-905 21. The Escrow Agent may be removed at any time by an instrument or concurrent instruments in writing, executed by the holders of not less than fifty-one per centum (51%) in aggregate principal amount of all of the Outstanding Bonds then outstanding, such instruments to be filed with the City, and notice published once in a newspaper of general circulation published in the City of Miami, Florida, and in a daily newspaper of general circulation or a financial journal published in the Borough of Manhattan, City and State of New York, not less than sixty (60) days before such removal is to take effect as stated in said instrument or instruments. A photographic copy of any instrument filed with the City under the provisions of this paragraph shall be delivered by the City to the Escrow Agent. The Escrow Agent may also be removed at any time iar any breach of trust or for acting or proceeding in violation of, or for failing to act or proceed in accordance with, any provisions of this Agreement with respect to the duties and obligations of the Escrow Agent by any court of competent jurisdiction upon the application of the City or the holders of not less than twenty per centum (20%) in aggre- gate principal amount of all of the Outstanding Bonds. 22. If at any time hereafter the Escrow Agent shall resign, be removed, be dissolved or otherwise become incap- able of acting, or shall be taken over by any governmental official, agency, department or board, the position of Escrow Agent shall thereupon become vacant. If the position of Escrow Agent shall become vacant for any of the foregoing reasons or for any other reason, the City shall appoint an Escrow Agent to fill such vacancy. The City shall publish notice of any such appointment made by it once in each week for two (2) successive weeks in a newspaper of general circulation published in the City of Miami, Florida, and in a daily newspaper of general circulation or a financial journal published in the Borough•of Manhattan, City and State of New York. At any time within one year after such appointment by the City the holders of a majority in principal amount of all of the Outstanding Bonds then outstanding, by an instrument or concurrent instruments in writing, executed and filed with the City, may appoint a successor Escrow Agent, which shall supersede any Escrow Agent theretofore appointed by the City. Photographic copies of each such instrument shall be delivered promptly by the City to the predecessor Escrow Agent and to the Escrow Agent so ap- pointed by the holders of the Outstanding Bonds. 9. 83-905 0 t If no appointment of a successor Escrow Agent shall be made pursuant to the foregoing provisions of this paragraph, the holder of any Outstanding Bonds or any retiring Escrow Agent may apply to any court of competent jurisdiction to appoint a successor Escrow Agent. Such court may thereupon, after such notice, if any, as such court may beem proper and prescribe, appoint a successor Escrow Agent. 23. This Agreement shall terminate when the Out- standing Bonds and coupons applicable thereto have been paid and discharged in accordance with the proceedings authorizing the Outstanding Bonds. 24. If any one or more of the covenants or agreements provided in this Agreement on the part of the City or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement. 25. This Agreement may be executed in several counter- parts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. This Agreement shall be governed by the laws of the State of Florida. IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed by their duly authorized officers and their corporate seals to be hereunto affixed and attested as of the date first above written. CITY OF MIAMI, FLORIDA, By (Vice] Mayor 10. 83- 9051 r 0 (SEAL) ATTEST: Clerk (SEAL) ATTEST: Trust Officer Approved as to form and legal sufficiency: City Attorney SUN BANK, NATIONAL ASSOCIATION By Vice President CONSENT OF THE 1966 TRUSTEE Southeast Bank, N.A., as trustee under the 1966 Ordinance, hereby consents to the execution and delivery of this Agreement by the City and the Escrow Agent and agrees to be bound by the terms and conditions of this Agreement, including in particular, the provisions requiring it to pay to the Escrow Agent the moneys or securities held to the credit of the Bond Service Account and the Redemption Account created under the 1966 Ordinance. SOUTHEAST BANK, N.A. By Dated: November 23, 1983 Senior Trust Officer 83-905- 4 4 CONSENT OF THE 1980 TRUSTEE Florida National Bank of Miami, as Trustee under the 1980 Ordinance, hereby consents to the execution and delivery of this Agreement by the City and the Escrow Agent and agrees to be bound by the terms and conditions of this Agreement, including in particular, the provisions requiring it to pay to the Escrow Agent, the moneys or securities held to the credit or the Parking Bond Service Account and the Parking Bond Redemption Account created under the 1980 Ordinance. FLORIDA NATIONAL BANK OF MIAMI Dated; November 23, 1983 By[Title) 12. 83-90 ACKNOWLEDGMENT OF EXECUTION ON BEHALF OF ESCROW AGENT STATE OF NEW YORK : ss.: COUNTY OF NEW YORK ) This 23rd day of November, 1983, personally came before me JOHN D. RACE, Vice -President of SUN BANK, NATIONAL ASSOCIATION, who, being by me duly sworn, says.that by authority duly given by, and as act of, said Bank, the foregoing and annexed Escrow Deposit Agreement, dated November 16, 1983, was signed by him as said Vice - President on behalf and in the name of said Bank, and personally came before me Trust Officer of SUN BANK, NATIONAL ASSOCIATION, who, being by me duly sworn, says that by authority duly given by said Bank she/he impressed the corporate seal of said Bank upon the foregoing and annexed Escrow Deposit Agreement in execution thereof for and on behalf of said Bank and that she/he attested the same as said Trust Officer by affixing her/his signature thereon in attestation thereof, and said Vice -President and Trust Officer further acknowledge that the foregoing and annexed Escrow Deposit Agreement is the act and deed of Sun Bank, National Association. Witness my hand and official seal, this the 23rd day of November, 1983. Notary Public (SEAL) My Commission expires: 83-90" ACKNOWLEDGMENT OF EXECUTION ON BEHALF OF THE CITY STATE OF NEW YORK : ss.: COUNTY OF NEW YORK This 23rd day of November, 1983, personally came before me , being and to me known to be the (Vice] Mayor of THE CITY OF MIAMI, FLORIDA, who, being by me duly sworn, says that by authority duly given by, and as the act of, said City, the foregoing and annexed Escrow Deposit Agreement, dated November 160 1983, was signed by him as said Mayor on behalf and in the name of the City, and personally appeared, being and known to be the [Deputy] Clerk of the City, who, being by me duly sworn, says that by authority duly given by said City he impressed the official seal of the City upon the foregoing and annexed Escrow Deposit Agreement in execution thereof for and on behalf of the City and that he attested the same as said [Deputy] Clerk by affixing his signature thereon in attestation thereof, and said [Vice] Mayor and [Deputy] Clerk further acknowledged that the foregoing and annexed Escrow Deposit Agreement is the act and deed of the "ity. Witness my hand and official seal this day of November, 1983. Notary Public (SEAL) My Commission expires: 83-905 4 APPENDIX A ULE OF GOVERNMENT OBLIGATIONS SLGs est Maturity First Interest e Issue Date Date Payment Date 93`9Ou Pay t .- .. - APPENDIX B REQUIREMENTS TO PAY AND REDEEM OUTSTANDING BONDS 83-9®5" NFW ISSLiE� Rating: s: A Standard fi 's: A - (See "RATIIJGS" herein) In the opinion of Bond Counsel, interest on the Series 1983 Bonds is exempt from all present federal income taxes, and the Series 1983 Bonds and the income thereon are not sub- ject to incam taxation wider Florida Lew, except as to taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, as defined in said Chapter 220, Florida Statutes. Dated: November 1, 1983 $13,860,OU0 THE CITY OF MIAMI, FWRIDA PARKING SYSTEM REVMUE "MS, SERIES 1983 Due: October 1, as shown below The Series 1983 Bonds are issuable as fully registered bonds without coupons in the 9enomination of $5,000 or integral multiples thereof. Interest on the Series 1983 Bonds shall be paid semiannually on October 1 and April 1 in each year, commencing April 1, 1984, by check or draft mailed to the registered owners thereof at the addresses shown on the registration books kept by the Trustee, as Bond Registrar. Principal of the Series 1983 Bonds is payable upon presentation and surrender when due at the principal corporate trust office of Sun Bank, National Association, Orlando, Florida, as Trustee. The Series 1983 Bonds my be transferred as described herein. The Series 1983 Bonds are subject to optional and mandatory redemption prior to maturity as further described herein. Proceeds received from the sale of the Series L983 Bonds will be used to refund the City's presently outstanding Parking Facilities Revenue Bonds (Series A), Parking Facilities Revenue Bonds (Series B), Parking Facilities Revenue Bonds (Series C) and Parking Facilities Revenue Bonds (Series 1980), to make a deposit to the Reserve Account and to pay the costs of issuance of the Series 1983 Bonds. 'the aggregate principal amount of the outstanding Bonds as of the date of issuance of the Series 1983 Bonds is $14,110,000. Other available moneys of the Department will be used to fund the balance of the Reserve Account in an amount equal to the Reserve Requirement on the Series 1983 Bonds, make a deposit to the Renewal and Replacement Account and pay the costs of constructing new otfice facilities for the Department. Maturities. Amounts, Interest Rates and Prices or Yields $3,220,000 Serial Bonds interest Maturity Amount Pate Price 1984 $155,000 h.0 1004 1985 160.000 6.5 100 1986 175.000 7.0 100 1987 185,000 7.5 100 1988 2001000 1.0 100 1989 215.000 8.25 1990 i35,000 5 1991 2501000 1,992 275,000 9.0 - 1993 300,000 1994 325,000 9.4 300 1995 355,000 9.6 Loa 1996 390,000 9.75 1J0 $1,420,000 10.0% Term Bonds due October 1, 1999 at 1008 $2,660,000 10.25% Term Bonds due October 1, 2003 at 100% $1,775,000 10.254 Term Bonds due October 1, LO05 at 99.5% $4,785,000 10.375% Term Bonds due October 1, :009 at 100% (plus accrued interest from November 1, 1983) The Series 1983 Bonds are offered when, as and if issued and received by the thder- writers and subject to the receipt of an unqualified opinion as to the validity of the Series 1983 Bonds by Brown, Wood, Ivey, Mitchell fi Petty, New York, e,L-w York, Bond Counsel. Certain legal matters will be passed on for the underwriters by their counsel, Fine Jacobson Block Klein Colan & Simon, P.A., Miami, Florida, and Kutak RDCK fi !iuie, for the City by J. Garcia -Pedrosa, Esq.. City Attorney of the City, and for the Department oy Ronald A. Silver, General Counsel to the Department. It is expected that the Series 1983 Bonds in definitive form will be available for delivery in New York, New York on or about lbvember 23, 1983. WILLIAM R. FIXUGii fi CO. DEAN WITTER REYNOLDS INC. L. F. ROITSGtiILD, C.NTERBERG, TC)WBIN FIRST EQUITY XRPORATION OF FLORIDA October 25, 1983 83—JOu [This Page Intentially Left Blank] 83-905* No dealer, broker, salesman or other person has been authorized to make any representations or to give any information, other than as contained in the Official Statement, and, if given or made, such other information or representations must not be relied upon. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Series 1983 Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information contained in this Official Statement has been obtained from public documents, records and other sources considered to be reliable and, while not guaranteed as to completeness or accuracy by the Underwriters, is believed to be correct. Any statements in this Official Statement involving estimates, assumptions and matters of opinion, whether or not so expressly stated, are intended as such and not as representations of fact, and the Department of Off -Street Parking and the City expressly make no representations that such estimates, assumptions and opinions will be realized or fulfilled. Any information, estimates, assumptions and matters of opinion contained in this Official Statement are subject to change without notice, and neither the delivery of this Official Statement, nor any sale made hereunder, shall under any circumstances create any implication that there has been no change in the affairs of the Department of Off -Street Parking or the City since the date hereof. IN CONNECTION WITH THE OFFERING OF THE SERIES 1983 BONDS, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH SERIES 1983 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TABLE OF CONTENTS Page INTRODUCTION....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 AUTHORIZATION FOR THE SERIES 1983 BONDS ........... 3 DESCRIPTION OF THE SERIES 1983 BONDS .............. 4 REDEMPTIONPROVISIONS ............................. 5 SECURITY FOR AND SOURCE OF PAYMENT OF THE BONDS ... 7 ADDITIONAL BONDS, INTERIM, SHORT-TERM AND SUBORDINATEDINDEBTEDNESS ....................... 14 PLANOF REFUNDING ................................. 16 ESTIMATED SOURCES AND APPLICATIONS OF FUNDS ....... 18 83-•905 DEPARTMENT OF OFF-STREET PARKING AND THE OFF-STREET PARKING BOARD ....................... 19 PROPOSED CONSTITUTIONAL REFERENDUM ON REVENUE LIMITATIONS........................e........... 28 LITIGATION ....................................... 29 FINANCIAL ADVISOR ................................ 29 TRUSTEE AND BOND REGISTRAR AND ESCROW AGENT ...... 29 CONSULTING ENGINEERS ...... ..... ....e.......... so. 30 VALIDATION ........................sees........... 30 UNDERWRITING..................................so. 30 RATINGS............. ...... ...so .... so ... ...... so. 30 TAXEXEMPTION ..................... ......e....... . 31 LEGALITY......................... ...e............ 31 FINANCIAL STATEMENTS AND AUDITORS' REPORT ........ 31 MISCELLANEOUS...............................sees. 31 EXECUTION OF AND CERTIFICATION CONCERNING OFFICIALSTATEMENT ...............es............ 32 APPENDIX A --Report of Conrad Associates East APPENDIX B--Financial Statements For 1982 and 1981 and Auditors' Report APPENDIX C--Summary of Bond Ordinance APPENDIX D--Description of the City of Miami APPENDIX E--Proposed Form of Bond Counsel Opinion 93-90E SUMMARY STATEMENT This Summary Statement is subject in all respects to the more complete information and to the definitions contained or incorporated in this Official Statement. The offering of the Series 1983 Bonds to potential investors is made only by means of this entire Official Statement. No person is authorized to detach this Summary Statement from the Official Statement or otherwise to use it without this entire Official Statement. Issuer: The City of Miami, Florida Parking System: The Parking System consists of five parking garages, either owned or managed by the Department, which contain approximately 5,007 spaces, 37 parking lots which contain approximately 5,358 spaces, and approximately 6,424 on -street parking meters. Department of Off -Street The Department operates, manages Parking: and controls the Parking System under the supervision of the Off -Street Parking Board. The Department is an agency and instrumentality of the City which was created, together with the Board, by a special act of the Florida Legislature. The City and not the Department has the power to issue revenue bonds. Series 1983 Bonds: $13,860,000 aggregate principal amount of Parking System Revenue Bonds, Series 1983, dated as of November 1, 1983, with interest payable on October 1 and April 1, commencing April 1, 1984. The Series 1983 Bonds are issuable in fully registered form without coupons in the denomination of $5,000 or any integral multiple thereof. 93-905 Security and Source of Payment for the Series 1983 Bonds: Proceeds received from the sale of the Series 1983 Bonds will be used to refund the City's presently outstanding Parking Facilities Revenue Bonds (Series A); Parking Facilities Revenue Bonds (Series B); Parking Facilities Revenue Bonds (Series C); and Parking Facilities Revenue Bonds (Series 1980), to make a deposit to the Reserve Account and to pay the costs of issu- ance of the Series 1983 Bonds. The aggregate principal amount of such Outstanding Bonds as of the date of issuance of the Series 1983 Bonds is $140110,000. Other available moneys of the Department will be used to fund the balance of the Reserve Account in an amount equal to the Reserve Requirement on the Series 1983 Bonds, make a deposit to the Renewal and Replacement Account and pay the costs of construct- ing new office facilities for the Department. The Series 1983 Bonds are secured by a pledge of (a) Net Revenues, (b) the rights of the City and the Board to receive Net Revenues and (c) the money and Investment Obligations and investment income thereon held in any and all of the funds and accounts established under the Series 1983 Bond Ordinance. The Series 1983 Bonds are limited obligations of the City, payable solely from the funds and accounts established under the Bond Ordinance. Neither the faith and credit 83-905 nor the power of the City to levy any taxes is pledged to the payment of the Series 1983 Bonds. None of the property of the Parking System is pledged to pay the Series 1983 Bonds. The Bond Ordinance requires that in each month all Revenues on deposit in the Revenue Account which are in excess of that month's Operations and Maintenance Requirement be withdrawn and that an amount, which together -with amounts already on deposit, be applied (i) to the Interest Account, equal to the interest due and payable on the Series 1983 Bonds in the next ensuing six months, (ii) to the Principal Account, equal to the principal due and payable on serial Bonds in the next ensuing 12 months and (iii) to the Sinking Fund Account, equal to the Sinking Fund Requirement for any term Bonds in the next ensuing 12 months. Upon issuance of the Series 1983 Bonds, the Reserve Account will be funded from the proceeds of the Series 1983 Bonds and other available moneys of the Department in an amount equal to the Reserve Requirement for the Series 1983 Bonds. Plan of Refunding: A portion of the proceeds of the Series 1983 Bonds, together with a portion of the moneys and securities held in the several funds and accounts established for the Outstanding Bonds, will be deposited with the Escrow Agent pursuant to the Escrow Deposit Agreement and invested in Government Obligations maturing in the amounts and on the dates and 83--905 bearing interest at rates suf- ficient to pay at maturity or upon redemption all of the $14,110,000 aggregate principal amount of Outstanding Bonds. See "PLAN OF REFUNDING -- Mathematical Calculations" herein. The balance of the funds held in the several funds and accounts established for Outstanding Bonds will be used to make a deposit to the Renewal and Replacement Account for the Series 1983 Bonds, fund the balance of the Reserve Requirement and pay the costs of constructing new office facilities for the Department. In the event the cash and prin- cipal and interest on the Government Obligations depos- ited in the Escrow Fund are not sufficient to pay the Outstand- ing Bonds as they become due and payable, the holders of the Outstanding Bonds will have a claim upon Net Revenues superior to the claim of the holders of the Series 1983 Bonds. Debt Service Coverage: The following summary of his- torical information and summary of the projected debt service coverage on the Series 1983 Bonds during the period shown is from the Report of Conrad Associates East, Consulting Engineers, included herein as Appendix A. [This Space Intentionally Left Blank.) 83-90S Revenues Expenses(1) Net Revenues Available for Debt Service Current Debt Service Debt Service Coverage Historical Revenues, Expenses and Debt Service Coverage Years Ended September 30, ($ Stated in Thousands) 1978 1979 1980 1981 1982 $2,350 $2,467 $3,426 $3,846 $4,807 11224 1,383 1,664 1,742 2,449 $1,126 $1,084 $1,762 $2,104 $2,358 $ 461 $ 460 $1,002(2) $1,496(2) $1,476 2.44x 2.36x 1.76x 1.41x 1.60x (1) Expenses exclude depreciation and interest expense. (2) Reflects debt service requirements resulting from the issuance of the Series 1980 Bonds. In 1980 and 1981 these amounts include $511,000 and $937,000, respectively, of capitalized interest. Source: Report of Conrad Associates East, Appendix A hereto. Projected Revenues, Expenses and Debt Service Coverage Years Ending September 30, ($ Stated in Thousands) 1983 1984 1985 1986 1987 Revenues $5,775 $6,625 $7,130 $7,823 $8,586 Expenses(1) 31-205 3,690 4,199 4,618 5,081 Net Revenues Available for Debt Service $2,570 $2,935 $2,931 $3,205 $3,505 Debt Service(2) $1,478 $1,525 $1,525 $1,525 $1,525 Debt Service Coverage 1.74x 1.92x 1.92x 2.10x 2.30x (1) Expenses exclude depreciation and interest expense. (2) Debt service for the years 1984 through 1987 assumes the issuance of the Series 1983 Bonds at an average coupon of 10.25% on approximately $14,000,000 aggregate principal amount of bonds. Source: Report of Conrad Associates East, Appendix A hereto. 9 • Additional Bonds: Additional Bonds may be issued on a parity with the Series 1983 Bonds for the purposes of providing funds to (i) pay all or any part of the costs of any Additional System Facilities; (ii) pay all or any part of the cost of completing Additional System Facilities; (iii) pay any debt obligations issued by the City or Department or repay any advances made from any source, to finance temporarily the costs of any Additional System Facilities including any Interim Indebtedness; (iv) increase the amount on deposit in the Reserve Account; or (v) to pay at maturity or redeem prior to maturity all or part of any series of Bonds then outstanding, including the payment of the redemption premium and accrued interest, if any, on such Bonds. Additional Bonds may be issued for the purpose of paying the costs of Additional System Facilities only if (i) the sum of Net Revenues from the most recent fiscal year for which audited financial statements have been filed and the esti- mated Net Revenues which would have been received if any rate adjustment, which affected the Parking System and became effective prior to the issuance of the Additional Bonds, had been in effect during that same fiscal year is not less than 125% of the Principal and Interest Requirements for that same fiscal year and (ii) the sum of Net Revenues from the most recent fiscal year for which audited financial state- ments have been filed and the 83-90S estimated additional Net Reve- nues which would have been received if any rate adjust- ment which affected the Parking System and became effective prior to the issuance of the Additional Bonds had been in effect during that same fiscal year and one -fifth the total estimated Net Revenues attrib- utable to the Additional System Facilities to be financed from the proceeds of such Additional Bonds for each of the five fis- cal years immediately succeed- ing the fiscal year in which the Additional System Facil- ities are to be placed in use and operation, is not less than 125% of the maximum Principal and Interest Requirements for any fiscal year thereafter including such requirements for the Additional Bonds then requested to be delivered. Additional Bonds issued for the purposes of completing Addi- tional System Facilities or refunding any outstanding Bonds of one or more series need not satisfy the financial restric- tions on the issuance of Addi- tional Bonds to finance the construction of Additional System Facilities. Interim Indebtedness: Interim Indebtedness may be issued on a parity witn the Series 1983 Bonds, provided that the City meets certain financial restrictions similar to those restricting the issu- ance of Additional Bonds to finance the construction of Additional System Facilities. Subordinated Debt and Short -Term Indebtedness: The City may issue Subordinated Debt to finance the acquisition 83=9®S and construction of any facili- ties which the Board and the Department may operate and maintain pursuant to law, except special purpose facili- ties. The City may issue Short -Term Indebtedness payable as to principal and interest as Current Expenses, provided that such Short -Term Indebtedness does not exceed 20% of Current Expenses for the last fiscal year for which an audit is available. In each Fiscal Year there must be a period of 30 consecutive days when no Short -Term Indebtedness is outstanding. Other Facilities: In addition to Additional System Facilities, the Bond Ordinance permits the Depart- ment to acquire or construct special purpose facilities and other facilities and to finance such facilities by means other than Additional Bonds. The Department may finance special purpose facilities so long as the obligations are not secured directly or indirectly by Revenues and the users of the facilities pay charges suffi- cient to pay the principal of, premium, if any, and interest on the obligations issued to finance such facilities and to pay operating expenses related to the facilities. Upon defeasance of the obligations issued to finance the special purpose facilities, such facil- ities will become a part of the Parking System. The Department may finance other facilities through the issuance of obliga- tions that are not issued under or secured by any items consti- tuting security for the Series 83-; 19C?� 1983 Bonds. Such other facili- ties may become part of the Parking System upon resolutions of the City and the Department and delivery of certificates of the chief financing officer and Parking Consultants in accord- ance with the Bond Ordinance. (This Space Intentionally Left Blank) 83-905- 19 [This Page Intentially Left Blank] 83.905. THE CITY OF MIAMI MEMBERS OF CITY COMMISSION Maurice A. Ferre, Mayor Joe Carollo Miller J. Dawkins Demetrio Perez, Jr. J. L. Plummer, Jr. THE CITY OF MIAMI OFFICIALS CityManager ..................... H. V. Gary CityAttorney .................... J. Garcia -Pedrosa Assistant City Manager ........... R. B. Rosencrantz Director of Finance .............. C. E. Garcia CityClerk ...............6....... R. G. Ongie MEMBERS OF THE OFF-STREET PARKING BOARD Arnold Rubin, Chairman H. Gordon Wyllie, Vice Chairman Leslie Pantin, Sr. Dianne S. Smith David Weaver DEPARTMENT OF OFF-STREET PARKING Roger M. Carlton, Director Certified Public Accountants Deloitte Haskins & Sells General Counsel to the Department Ronald A. Silver, Esq. Parking Consultant Conrad Associates East, Chicago, Illinois Financial Advisor Shearson/American Express Inc. New York City and Miami 83-90'5, 4 OFFICIAL STATEMENT Relating To $13,860,000 THE CITY OF MIAMI, FLORIDA PARKING SYSTEM REVENUE BONDS, SERIES 1983 INTRODUCTION This Official Statement, including the cover page, Summary Statement and the Appendices hereto, is provided to furnish information with respect to the issuance and sale by The City of Miami, Florida (the "City") of $13,860,000 aggregate principal amount of its Parking System Revenue Bonds, Series 1983 (the "Series 1983 Bonds," together with any Additional Bonds which may be issued under the Bond Ordi- nance, are collectively referred to herein as the "Bonds"). Proceeds received from the sale of the Series 1983 Bonds will be used to refund the City's presently outstanding Parking Facilities Revenue Bonds (Series A) heretofore issued in the aggregate principal amount of $3,200,000; Parking Facilities Revenue Bonds (Series B) heretofore issued in the aggregate principal amount of $1,600,000; Parking Facilities Revenue Bonds (Series C) heretofore issued in the aggregate principal amount of $3,150,000 and Parking Facilities Revenue Bonds (Series 1980) heretofore issued in the aggregate principal amount of $8,725,000 (said bonds presently outstanding being herein collectively called the "Outstanding Bonds"), to make a deposit to the Reserve Account for the Series 1983 Bonds and to pay the costs of issuance of the Series 1983 Bonds. The aggregate principal amount of the Outstanding Bonds as of the date of issuance of the Series 1983 Bonds, is $14,110,000. See "PLAN OF REFUNDING" herein. For the definitions of certain terms and phrases used in this Official Statement, see "SUMMARY OF BOND ORDINANCE," Appendix C hereto. AUTHORIZATION FOR THE SERIES 1983 BONDS The Series 1983 Bonds are to be issued pursuant to the authority of the Constitution and laws of the State of Florida, particularly Chapter 166, Florida Statutes. Ordi- nance No. 9618, enacted by the City Commission of the City (the "City Commission") on May 31, 1983, and certain reso- lutions in furtherance of Ordinance No. 9618 adopted by the City Commission on October 25, 1983 (hereinafter, collec- tively, the "Bond Ordinance") authorize the issuance of the -3- 83--904. Series 1983 Bonds to refund the Outstanding Bonds. The Bond Ordinance authorizes the issuance of Series 1983 Bonds in an aggregate principal amount of $13,860,000. DESCRIPTION OF THE SERIES 1983 BONDS The Series 1983 Bonds are issuable as fully registered bonds without coupons in the denomination of $5,000 or inte- gral multiples thereof. The Series 1983 Bonds are numbered consecutively from one upwards, dated November 1, 1983, bear interest from their date at the rates per annum set forth on the cover page of this Official Statement and mature on October 1 in the years and in the principal amounts set forth on the cover page of this Official Statement. Interest on the Series 1983 Bonds is payable semiannu- ally on October 1 and April 1 of each year, commencing April 1, 1984, until maturity thereof by check or draft mailed to the registered owners thereof at the addresses shown on the registration books kept by the Trustee, as Bond Registrar. Principal of the Series 1983 Bonds is payable to or upon the order of the registered owners or their legal representatives, upon presentation and surrender of said Series 1983 Bonds when due at the principal corporate trust office of Sun Bank, National Association, Orlando, Florida, as Trustee and Bond Registrar (which, together with any successor trustee and bond registrar, is referred to herein as the "Bond Registrar" or the "Trustee"). Provisions for Exchange and Registration of Transfer Any Series 1983 Bond may be transferred upon presenta- tion and surrender of such Series 1983 Bond at the principal corporate trust office of the Sun Bank, National Association, Orlando, Florida, as Bond Registrar, accompanied by an assignment duly executed by the registered owner or his attorney or legal representative in a form satisfactory to the Trustee. The Bond Registrar is required to note such registration of transfer on the Bond and on the books main- tained for registration. The Bond Registrar is not required to register the transfer of any Bond during the 15 days preceding any interest payment date or after notice has been given of redemption of such Bond or any portion thereof. The Series 1983 Bonds may be exchanged upon presentation and surrender thereof, together with an assignment duly executed by the registered owner or his attorney or legal representa- tive for an equal aggregate principal amount of registered Series 1983 Bonds of the same maturity of any authorized -4- 83-9M denomination and bearing interest at the same rate. No charge shall be made to any Bondholder for the privilege of exchange, registration, or registration of transfer, but the Bondholder shall pay any tax or other governmental charge required to be paid with respect thereto and any charge for shipping and out-of-pocket costs incurred by the City and the Bond Registrar in connection with such exchange, registra- tion, or registration of transfer. Ownership The Bond Ordinance provides that the person in whose name any Bond is registered shall be deemed and regarded as the absolute owner thereof for all purposes including the payment of principal of, premium, if any, and interest thereon. REDEMPTION PROVISIONS Optional Redemption Series 1983 Bonds maturing on or after October 1, 1994 shall be subject to redemption on or after October 1, 1993, at the option of the City, as a whole at any time or in part on any interest payment date, in integral multiples of $5,000, in inverse order of their stated maturities and by lot within a stated maturity, at 100% of the principal amount thereof, plus accrued interest thereon to the date fixed for redemption. Mandatory Redemption Provisions In satisfaction of the Sinking Fund Requirement, Term Series 1983 Bonds maturing on October 1, 1999, 2003, 2005 and 2009 are subject to mandatory redemption or retirement by the City from funds available in the Sinking Fund Account created under the Bond Ordinance in the principal amounts and on October 1 of each of the years set forth in the schedule below, in part and by lot, at 100% of the principal amount thereof, plus accrued interest thereon to the redemption date and without premium: Term Series 1983 Bonds Due October 1, 1999 October 1 Amount Pr ice 1997 $430,000 100% 1998 470,000 100% 1999 520,000 100% -5- 83-905'. 16 Term Series 1983 Bonds Due October 1, 2003 October 1 0 Amount Price 2000 $570,000 100% 2001 630,000 100% 2002 695,000 100% 2003 765,000 100% Term Series 1983 Bonds Due October 1, 2005 October 1 Amount Price 2004 $845,000 99.5% 2005 930,000 99.5% Term Series 1983 Bonds Due October 1, 2009 October 1 Amount Price 2006 $1,025,000 100% 2007 1,130,000 100% 2008 1,250,000 100% 2009 1,380,000 100% Extraordinary Optional Redemption The Bonds shall be redeemed as a whole at any time or in part on any interest payment date at a redemption price equal to the principal amount thereof, plus interest accrued to the redemption date, and without premium, from net proceeds resulting from insurance or from eminent domain proceedings, if all or any part of the Parking System is damaged or destroyed or taken by eminent domain and if the Department elects not to replace, repair, rebuild or restore the Parking System. The Department may elect to apply the proceeds from insurance or from eminent domain proceeds to the redemption of the Bonds only if (1) the Parking System has been restored to substantially the same condition as prior to the damage, destruction or taking, or (2) the Department has determined that the portion of the Parking System damaged or destroyed or taken is not necessary to the operation of the Parking System and that the failure of the Department to repair or -6- 0 restore the same will not impair or otherwise adversely affect the revenue -producing capability of the Parking System, or (3) the Parking Consultant has been unable to certify that the net proceeds from insurance or eminent domain, together with other funds made available by the Department, will be sufficient to pay the costs of the replacement, repair, rebuilding or restoration of the Parking System. Notice of Redemption The Bond Ordinance requires that at least 30 days before the redemption date of any Bonds or portions of Bonds to be redeemed, while all of the Bonds are registered as to prin- cipal, the Trustee shall cause a notice of redemption (a) to be filed with the Paying Agents, and (b) to be mailed, post- age prepaid, to all registered owners of Bonds to be redeemed at their addresses as they appear on the registration books maintained by the Bond Registrar. The Bond Ordinance further provides that failure to file or mail such notice shall not affect the validity of the proceedings for redemption. Pub- lished notice need not be given in a Daily Newspaper of general circulation in the City and in a Financial Journal or a Daily Newspaper of general circulation in the Borough of Manhattan, City and State of New York, provided all of the Bonds to be redeemed are registered and the notice described in (b) above is given. SECURITY FOR AND SOURCE OF PAYMENT OF THE BONDS The Bonds and the interest thereon are secured by a pledge of (a) Net Revenues, (b) the rights of the City and the Board to receive Net Revenues, and (c) the money and Investment Obligations in any and all of the funds and accounts established under the Bond Ordinance and the income from such Investment Obligations and the investment of such money. The Bond Ordinance provides that this pledge shall be effective and operate immediately and that the Trustee shall have the right to collect and receive said Net Revenues in accordance with the provisions of the Bond Ordinance at all times during the period from and after the date of issuance of the Bonds until the Bonds have been fully paid and dis- charged. In the event that the Escrow Fund is insufficient to pay the Outstanding Bonds as they become due and payable, the holders of the Outstanding Bonds will have a claim upon Net Revenues superior to the claim of the holder of the Series 1983 Bonds. See "PLAN OF REFUNDING" herein. The Bond Ordinance provides that the aforementioned pledge shall not inhibit the sale or disposition of the -7- 93-90" Parking System. The Bond Ordinance provides certain limita- tions on the sale or disposition of the Parking System. See "SUMMARY OF BOND ORDINANCE," Appendix C herein. "Net Revenues" means the excess of Revenues over Current Expenses. For the definitions of Revenues and Current Expenses, see "SUMMARY OF BOND ORDINANCE," Appendix C herein. The Bonds are not general obligations of the City but are limited obligations payable solely from the funds and accounts created under the Bond Ordinance. The Bonds shall not constitute a debt of the City for which the faith and credit of the City are pledged. The issuance of the Bonds shall not directly or indirectly or contingently obligate the City to levy any tax or to pledge any form of taxation what- ever therefor. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, including the Parking System. See "SUMMARY OF BOND ORDINANCE," Appendix C herein. Net Revenues of the Parking System Conrad Associates East, of Chicago, Illinois (the "Park- ing Consultant"), has made a study of the historic and pro- jected revenues and expenses of the Parking System, based in part upon audited and unaudited data supplied by the Depart- ment. The report of the Parking Consultant is reproduced as Appendix A to this Official Statement and reference is made to such report for more complete details concerning the Parking System, the projections of revenues derived therefrom and expenses incurred in relation thereto and the assumptions underlying such projections. The information in the following tables has been taken from the aforementioned report of the Parking Consultant and sets forth the historic and projected revenues and expenses and debt service coverage of the Parking System. [This space intentionally left blank.) -8- 83-90 r- Historical Revenues, Expenses and Debt Service Coverage City of Miami Parking System(1) ($ Amounts Stated in Thousands) Nine Months Ended Fiscal Years Ended September 30, June 30, (Lhaudited) 1978 1979 1980 1981 1982 1982 1983 OPERATING REVENUES: Off -Street Facilities $1,027 $1,165 $1,011 $1,197 $1,978 $1,480 $1,839 Parking Lots 556 608 804 902 1,200 874 1,251 On -Street Facilities 637 548 647 837 987 720 863 Other 6 12 142 55 89 27 26 TOTAL $2,226 $2,333 $2,604 $22 991 $4,254 $_3 101 $3,979 OPERATING EXPENSES (2) : Salaries and Benefits $ 622 $ 710 $ 600 $ 597 $ 726 $ 502 $ 741 Repairs and Maintenance 245 211 474 456 570 423 583 Security and Enforcement 185 180 235 272 334 277 356 utilities 114 134 138 160 208 169 153 Other 58 148 217 257 611 375 543 TOTAL, $1,224 $1,383 $1,664 $1,742 $2,449 $1,746 $2,376 NON -OPERATING INCOME: Interest In Current Investments $ 19 $ 19 $ 59 $ 65 S 75 $ 56 $ 50 Restricted Investments 105 115 563 806 478 319 246 Gain (toss) on Disposal of Property 200 (16) 4 (13) TOTAL $ 124 $ 134 $ 822 S 855 $ 553 $ 379 $ 283 NET REVENUES AVA_IABLE FOR DEBT SERVICE $jL.126 $1.084 $1.762 $2,104 $2.358 51.734 $1,886 Current Debt Service $ 461 S 460 $1,002(3) $1,496(3) $1,476 Debt Coverage Ratio 2.44 2.36 1.76 1.41 1.60 (1) The Statement of Revenues and Expenses of the Department of Off -Street Parking of The City of Miami for the three years ended September 30, 1980, 1981 and 1982 has been examined by Deloitte Haskins 6 Sells, independent certified public accountants. Their opinion for the years envied September 30, 1982 and 1981 appears in Appendix B of this Official Statement. The Statement of Revenues and Expenses for the two years ended September 30, 1978 and 1979 were examined by other auditors, using a different basis of accounting. Operating revenues, operating expenses and non -operating income for the two years ended September 30, 1978 and 1979, as they appear above, in the opinion of the Department, conform to the basis of accounting used in the Statement of Revenues and Expenses for the three years ended September 30, 1980, 1981 and 1982. Operating revenues, operating expenses and non -operating income, as they appear above, for the nine months ended June 30, 1982 and 1983 include, in the opinion of the Department, all adjustments (consisting primarily of normal recurring accruals) necessary for a fair presentation of operating revenues, operating expenses and non -operating income for the respective periods, and are not necessarily indicative of results to be expected for the entire year. The above information should be read in conjunction with the financial statements and related notes appearing in Appendix B to this Official Statement. (2) Expenses reflected herein exclude interest and depreciation expenses. (3) Reflects debt service increase related to the Series 1980 Bonds. In 1980 and 1981 these amounts include $511,000 and $937,000, respectively, of capitalized interest which was paid from the proceeds of the Parking Facilities Revenue Bonds (Series 1980) of the City of Miami. Source: Conrad Associates East. -9- 83-905, 10 4 Projected Revenues, Expenses and Debt Service Coverage City of Miami Parking System ($ Amount Stated In Thousands) Fiscal Year Ended September 30, 1983 1984 1985 1986 1987 1988 OPERATING REVENUES: Off -Street Facilities $2,450 $2,870 $3,157 $3,473 $3,820 $4,202 Parking Lots 1,680 11920 2,112 2,323 2,555 2,811 On -Street Facilities 1,150 1,330 1,463 1,609 1,770 1,947 Other 95 180 198 218 240 264 TOTAL $5,375 $6,300 $6,930 $7,623 $8,385 $9,224 OPERATING EXPENSES: Salaries and Benefits $1,000 $1,235 $1,420 $1,562 $1,719 $1,890 Repairs and Maintenance 810 900 990 1,089 1,198 1,318 Security and Enforcement 465 560 644 708 779 857 Utilities 215 245 282 310 341 375 Other 715 750 863 949 1,044 1,148 TOTAL $3,205 $3,690 $4,199 $4,618 $5,081 $5,588 NON -OPERATING INCOME: Interest Income Current Investments $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 Restricted Investments 375 300 175 175 175 175 TOTAL 37 400 $ 325 $ 200 $ 200 $ 200 $ 200 NET REVENUES AVAILABLE FOR DEBT SERVICE Debt Service Debt Coverage Ratio(1) $2,570 $2,935 $2_ ._931 $3 205 $3,504 $3 836 $1,479 $1,525(2) $1,525(2) $1,525(2) $1,525(2) $1,525(2) 1.74 1.92 1.92 2.10 2.30 2.52 (1) Does not reflect a proposed assessment by a special assessment district created by Dade County, Florida (see "Special Assessment District" herein) which would reduce Net Revenues available for debt service by an amount estimated by the Depart- ment as $99,000 for the fiscal year ending September 30, 1984, which estimate, if correct, would result in a coverage for such fiscal year of 1.86. (2) Assumes a coupon of 10.25% on approximately $14,000,000 aggregate principal amount of Series 1983 Bonds outstanding. Source: Conrad Associates East. The footnotes above alone do not attempt to explain fully or detail all of the stand- ards or assumptions underlying these projections. Reference to the Report of Conrad Associates East in Appendix A hereto, which explains and details all of the standards or assumptions used, is essential to understand or interpret fully these projections. 83-905, -10- I* I Schedule of Debt Service Requirements on the Series 1983 Bonds The debt service requirements for the Series 1983 Bonds are set forth below. The debt service requirements in each year include a principal payment on October 1 and interest payments on April 1 and October 1. Serial Bond Term Bond Principal Principal Require- Require - October 1 ments ments 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 155,000 - 160,000 - 175,000 - 185,000 - 200,000 - 215,000 - 235,000 - 250,000 - 275,000 - 300,000 - 325,000 - 355,000 - 390,000 - - 430,000 - 470,000 - 520,000 - 570,000 - 630,000 - 695,000 - 765,000 - 845,000 - 930,000 - 1,025,000 - 1,130,000 - 1,250,000 - 1,380,000 Interest Require- ments 1,255,328.02 1,360,148.75 1,349,748.75 1,337,498.75 1,323,623.75 1,307,623.75 1,289,886.25 1,269,9ll.25 1,248,036.25 1,223,286.25 1,195,686.25 1,165,136.25 1,131,056.25 1,093,031.25 1,050,031.25 1,003,031.25 951,031.25 892,606.25 828,031.25 756,793.75 678,381.25 591, 768 .75 496,443.75 390,100.00 272,862.50 143,175.00 Total 3,220,000 10,640,000 25,604,258.02 Rate Covenant To to 1 Require- ments 1,410,328.02 1,520,148.75 1,524,748.75 1,522,498.75 1,523,623.75 1,522,623.75 1,524,886.25 1,519,911.25 1,523,036.25 1,523,286.25 1,520,686.25 1,520,136.25 1,521,056.25 1,523,031.25 1,520,031.25 1,523,031.25 1,521,031.25 1,522,606.25 1,523,031.25 1,521,793.75 1,523,381.25 1,521,768.75 1,521,443.75 1,520,100.00 1,522,862.50 1,523,175.00 39,464,258.02 The Bond Ordinance requires the City and the Board to fix, charge and collect rates, fees, rentals and charges for the use of the Parking System and to revise these as often as may be necessary or appropriate to produce Revenues in each -11- 83-9®5" 16 16 12-month period at least equal to the sum of (i) Current Expenses for such period, plus (ii) 125% of the amounts required to be deposited in the Interest, Principal and Sinking Fund Accounts, plus (iii) the amounts required to be deposited in the Reserve Account in such period. If, in any such 12-month period, the Revenues are not sufficient to meet such requirements and if the cash and value of the Investment Obligations available within the funds and accounts created by the Bond Ordinance are not sufficient to make such deposits, the City and the Department have covenanted to take action to revise the rates, fees, rentals and charges, or alter the methods of operation or take whatever action is necessary to produce the amount so required in such period. The City and Department have further covenanted that no free use of the Parking System will be permitted. The City has covenanted in the Bond Ordinance that facilities for the off-street parking of motor vehicles constructed or acquired by the City which are not a part of the Parking System must be managed and operated by the Department. The Department manages the two parking garages which are presently owned by the City. The management agreement for the garages provides that the Department will receive a management fee in addition to being reimbursed for all direct expenses. Reserve Account The Reserve Requirement for the Series 1983 Bonds will be funded in full upon the issuance of the Series 1983 Bonds from proceeds from the sale of the Series 1983 Bonds and other available moneys of the Department. See "PLAN OF REFUNDING" herein. Collection and Enforcement Procedures The Department presently employs 15 officers to enforce parking regulations. Enforcement is concentrated in those areas with the highest meter rate and shortest -term parking. The Department has also implemented a program of attaching restraints, commonly known as "Denver Boots," to vehicles with a large number of unpaid parking tickets. The meter collection procedures of the Department are _ periodically reviewed and adjusted as required. These procedures recently have been revised to minimize the amount of money which accumulates in the meters before the next collection. All meter housings have also been upgraded to -12- 83-90S inclule more vandal- and theft -resistant housings. In addi- tion, the number of meter lock combinations has been significantly increased. The County is responsible for the collection and adju- dication of all parking violations. Fines collected from parking violations are split between the County and the City with no portion going to the Department. The collection rate for parking violations has been significantly below the national average. The County, however, has recently imple- mented a new computer -assisted parking ticket collection procedure to help correct the reported collection rate of forty-five percent (45%). Preliminary discussions have begun between various City, County and Department officials, which may result in the Department's receiving a portion of the fines. Special Assessment District A special assessment district (the "District") has been established by Ordinance 82-72, enacted by the Board of County Commissioners of Dade County, Florida to finance a portion of the downtown component of the Metrorail System, commonly known as the "Downtown People Mover." The District encompasses generally the central business district of the City and includes three parking garages owned by the Depart- ment and one parking lot of the Parking System. Ordinance 82-72 provides that an assessment may be levied to pay the cost of the "Downtown People Mover Project," currently esti- mated to be $27,000,000, together with any interest or finance charges and administrative costs incident thereto over a 15-year amortization period. Such ordinance provides that the assessment is to be imposed on the basis of "net leasable square feet." The Department' is of the opinion that, under the definition of "net leasable square feet" contained in Ordinance 82-72, the only area of the Depart- ment's facilities subject to the assessment is the actual area in which vehicles park and excludes the circulation areas. Under this interpretation, the Department estimates that less than 50% of the Department's buildings and one lot are subject to the assessment. The total number of net leas- able square feet included in the District is estimated to be approximately 16.78 million square feet. The Department has estimated its liability for approximately 450,000 net leas- able square feet as approximately $99,000 for fiscal year 1984, the Department having assumed the correctness of its interpretation of Ordinance 82-72, and further assuming an assessment of $.22 per net leasable square foot. There is no independent analysis which confirms the $.22 per net leasable square foot as the amount which will be actually assessed by -13- 83-90w Dade County. No opinion of legal counsel has been received to support the Department's interpretation of Ordinance 82-72. There has been no independent verification of the accuracy of the estimates of the amount of potential liabil- ity of the Department for such assessments or - its other assumption. The Department anticipates that its liability will be reduced in future years as additional net leasable feet are developed by other parties within the District. Any special assessments which may be levied would be accounted for under the Bond Ordinance as a Current Expense. ADDITIONAL BONDS, INTERIM, SHORT-TERM AND SUBORDINATED INDEBTEDNESS Additional Bonds The Bond Ordinance provides that the City Commission may authorize the issuance of one or more series of Additional Bonds on a parity with the Bonds for the purpose of providing funds to (i) pay all or any part of the Costs of any Addi- tional System Facilities; (ii) pay the Costs of completing any Additional System Facilities; (iii) pay any debt obliga- tions issued by the City or Department or repay any advances made from any source, to finance temporarily such Costs including Interim Indebtedness; (iv) increase the amount on deposit in the Reserve Account; (v) pay interest accruing on any Additional Bonds; and (vi) pay certain expenses in con- nection with the issuance of Additional Bonds. Additional Bonds may also be issued on a parity with the Series 1983 Bonds for the purpose of providing funds for paying at matu- rity or redeeming prior to maturity all or part of the Bonds then outstanding of any one or more series, including the payment of any redemption premium and any interest that will accrue on such Bonds to the redemption date or maturity date and any expenses in connection with such funding. The Trustee may deliver Additional Bonds for the purpose of paying the Costs of any Additional System Facilities only if (i) the proceeds of the Additional Bonds together with other funds available for such purpose are not less than the estimated Costs of the Additional System Facilities; (ii) the sum of Net Revenues from the most recent fiscal year for which audited financial statements have been filed and the estimated Net Revenues which would have been received if any rate adjustment which affected the Parking System and became effective prior to the issuance of the Additional Bonds had been in effect during that same fiscal year, is not less than 125% of the Principal and Interest Requirements for that same -14- 83-90S Fiscal Year; and (iii) the sum of Net Revenues from the most recent Fiscal Year for which audited financial statements have been filed and the estimated additional Net Revenues which would have been received if any rate adjustment which affected the Parking System and became effective prior to the issuance of the Additional Bonds had been in effect during that same Fiscal Year, and one -fifth of the total estimated Net Revenues attributable to the Additional System Facilities to be financed from the proceeds of such Additional Bonds for each of the five Fiscal Years immediately succeeding the Fiscal Year in which the Additional System Facilities are to be placed in use and operation, is not less than 125% of the maximum Principal and Interest Requirements for any Fiscal Year thereafter, including such requirements of the Addi- tional Bonds then requested to be delivered. The Trustee will not deliver Additional Bonds for the purpose of refunding the outstanding Bonds of any series unless any moneys deposited with the Trustee, together with the proceeds of such Additional Bonds and the interest to accrue upon any Govetnmental Obligations acquired to pay the outstanding Bonds, are not less than an amount sufficient to pay the principal of and the redemption premium, if any, on the Bonds to be refunded, the interest that will accrue thereon to the redemption date or the respective maturity dates, and the expenses incident to such refunding. Interim Indebtedness Interim Indebtedness may be issued on a parity with the Bonds as to payment from Net Revenues, provided that (i) the requirements for the issuance of Additional Bonds for Addi- tional System Facilities set forth above under the caption "Additional Bonds" could be satisfied if such Interim Indebt- edness were issued with a maturity of twenty-five (25) years after date of issuance, with substantially equal annual pay- ments of principal and interest and with an interest rate substantially equal to the market interest rate for similar obligations of 25-year maturity at the time the calculation is made and (ii) there is filed with the Trustee, simultane- ously with the incurrence of such Interim Indebtedness, a letter from a banking, investment banking or other appropri- ate financial institution stating that, under the then cur- rent market conditions, such Interim Indebtedness could be placed or sold on the terms and conditions assumed for the purposes of (i) above. -15- 83=90�► 0 Subordinated Debt and Short -Term Indebtedness The City may issue Subordinated Debt to finance the acquisition and construction of any facilities, other than special purpose facilities, which the Board and Department may operate and maintain pursuant to law, upon the conditions set forth in the Bond Ordinance. Short -Term Indebtedness may be issued and is payable as to principal and interest as Current Expenses provided that (1) such Short -Term Indebtedness at any time outstanding does not exceed 20% of the Department's Current Expenses of the Parking System for the last fiscal year for which an audit is available and (2) no Short -Term Indebtedness is outstanding in each fiscal year for a period of 30 consecutive days. PLAN OF REFUNDING Upon the issuance of the Series 1983 Bonds, the City will enter into an escrow deposit agreement (the "Escrow Deposit Agreement") with Sun Bank, National Association, Orlando, Florida (the "Escrow Agent") to provide for the refunding of the City's $14,110,000 aggregate principal amount of Outstanding Bonds. The following is a summary of the Outstanding Bonds to be refunded: PAR AMOUNT OUTSTANDING ON INTEREST YEAR OF FINAL ORIGINAL PAR OCTOBER RATES ON OUT - SERIES ISSUANCE MATURITY AMOUNT ISSUED 1, 1983* STANDING BONDS A B C 1980 1967 10/01/88 $ 3,200,000 $ 860,000 1967 1973 1980 10/01/94 10/01/02 1,600,000 3,150,000 1,460,000 3,065,000 10/01/09 8,725,000 8,725,000 $16,675,000 $14,110,000 4.60% - 4.70% 4.60% - 4.70% 5.50% - 6.00% 10.00% - 11.90% *Amounts shown are the balances outstanding subsequent to the scheduled principal payments on October 1, 1983. -16- 83=9®u 0 0 The Bond Ordinance provides that upon receipt of the proceeds of the Series 1983 Bonds, the City will deposit with the Escrow Agent, pursuant to the Escrow Deposit Agreement, an amount which, together with certain amounts transferred from proceeds of the several funds and accounts established for the Outstanding Bonds, will be invested simultaneously in direct obligations of the United States of America ("Govern- ment Obligations") maturing in amounts and bearing interest at rates sufficient to pay, when due, (i) the principal of and interest on all Series A Bonds, Series B Bonds and Series C Bonds at their maturities, the final maturity date of each series being October 1, 1988, October 1, 1994 and October 1, 2002, respectively, and (ii) the principal of and interest on all Series 1980 Bonds scheduled to mature through October 1, 1996, and to redeem on October 1, 1990, at a redemption price of 102-I/2% the Series 1980 Bonds maturing on October 1, 1997 and thereafter. See "ESTIMATED SOURCES AND APPLICATIONS OF FUNDS," herein. The Government Obligations will be purchased from the Treasury Department of the United States (or on the open market) at interest rates which will cause the actuarial yield thereon (computed in accordance with the provisions of Section 103 (c) of the Internal Revenue Code of 1954, as amended (the "Code"), and the regulations promulgated there- under) not to exceed the yield permitted by the Code and such regulations. Under the Escrow Deposit Agreement, such amounts held by the Escrow Agent, including the interest earnings on the Government Obligations, are pledged solely for the payment of the Outstanding Bonds and are not available for the payment of the Series 1983 Bonds. Upon deposit of the Governmei Escrow Agent, the Net Revenues of thereupon be available for pledge a Bond Ordinance to the payment of premium, if any, and interest on th the opinion of Bond Counsel, in the cipal and interest on the Government it Obligations with the Parking System nd application under the principal of e Series 1983 Boners. event the cash and 1 Obligations deposite the will the and In rin- d in the Escrow Fund are not sufficient to pay the Outstanding Bonds as they become due and payable, the holders of the Outstanding Bonds will have a claim upon Net Revenues superior to the claim of the holders of the Series 1983 Bonds. The Escrow Deposit Agreement provides that if the amounts in the Escrow Fund are insufficient to make payments of the principal of and premium, if any, and interest on the Outstanding Bonds as they become due and payable, the City will timely deposit with the Escrow Agent from Net Revenues, prior to the payment of principal of and interest on the -17- 83-905. 0 Series 1983 Bonds, such additional amounts as may be required to meet fully the amount to become due and payable on the Outstanding Bonds. See "Mathematical Computations" herein. In conjunction with the refunding, the Bond Ordinance directs the Trustee to take those actions required to cause the moneys and securities held in the several funds and accounts established for the Outstanding Bonds to be trans- ferred to various funds and accounts established under the Bond Ordinance. From the total amount to be transferred (approximately $3,200,000), approximately $700,000 will be deposited into the Renewal and Replacement Account and approximately $950,000 will be deposited in the Reserve Account for the Series 1983 Bonds. The balance of the amounts transferred from the several funds and accounts established for the Outstanding Bonds will be deposited in the General Reserve Account and used to construct new office facilities for the Department. See "ESTIMATED SOURCES AND APPLICATIONS OF FUNDS," herein. Mathematical Computations William R. Hough & Co. will be paid a separate fee to compute the adequacy of the Government Obligations to pay the Outstanding Bonds at maturity or upon their redemption. Deloitte Haskins & Sells, Certified Public Accountants, will prove the accuracy of the mathematical computations of the adequacy of the Government Obligations to be purchased with a portion of the proceeds of the Series 1983 Bonds, together with the interest to be earned thereon, to pay the principal of, premium, if any, and interest due and to become due on the Outstanding Bonds prior to and upon redemption or at their maturity, as the case may be. ESTIMATED SOURCES AND APPLICATIONS OF FUNDS The following is a summary of the estimated sources and applications of funds required for the refunding (exclusive of the accrued interest on the Series 1983 Bonds which will be deposited to the Interest Account): Sources: Principal amount of Series 1983 Bonds $13,860,000.00 Accrued Interest 83,688.53 Amounts held under the 1966 and 1980 Bond Ordinances (trans- ferred from the following funds) M.EE 83-90! 0 0 Debt Service Funds 125,000.00 Debt Service Reserve Funds 2,419,000.00 Renewal and Extension Funds 700,000.00 TOTAL SOURCES OF FUNDS Applications of Funds: Cost of Escrow Beginning Cash $ 54.74 Purchase of Governmental Obligations 13,148,600.00 Deposit to Reserve Account Deposit to Renewal and Replacement Account Deposit to Series 1983 Bonds Sinking Fund Account General Reserve Account All other legal, financial and administrative costs Underwriters' Discount Additional Bond Discount TOTAL APPLICATIONS OF FUNDS $171187,688.53 13,148,654.74 1,524,885.25 700,000.00 83,688.53 1,160,437.21 167,800.00 393,346.80 8,875.00 $17,187,688.53 DEPARTMENT OF OFF-STREET PARKING AND THE OFF-STREET PARKING BOARD In 1950, City Officials recognized that the City's rapid growth and emergence as a major metropolitan area would cause parking to become a serious problem. In December, 1950, the City Commission enacted an ordinance creating a five -person advisory group to study parking conditions and to make recom- mendations for needed improvements. Five years later, the Off -Street Parking Board recom- mended that the responsibility for a municipal parking pro- gram be centralized. In November, 1955, the recommendation was implemented. The City Commission enacted an act estab- lishing the Off -Street Parking Board. The State Legislature enacted a special act now contained in the City's Charter creating the Department of Off -Street Parking and the Off - Street Parking Board and vesting the Board with the power, duties and responsibilities customarily vested in the board of directors of a private corporation. The Department is an agency and instrumentality of the City and is charged with the operation, management and control of the off-street parking facilities of the City and all properties pertaining thereto. The Department's budget and rates must be approved -19- 83-901; 0 0 by the City Commission and its bonds must be issued pursuant to ordinance enacted by the City Commission. All expenses the Department and Board incur in carrying out their duties are paid solely from revenues generated by the Parking System. The Department has stated that tax money has never been used to pay debt service or the operating expenses of the Parking System. The objective of the Department contin- ues to be the development of a long-range, comprehensive parking program for the City. Members of Off -Street Parking Board Member Mr. Arnold Rubin, Chairman Mr. H. Gordon Wyllie, Vice Chairman Mrs. Dianne S. Smith, Member Mr. David Weaver, Member Mr. Leslie Pantin, Member Employees of the Department of Off -Street Parking Occupation President, HUB Fashions President, Southeast Properties, Inc., Division of Southeast Bank, N.A. Assistant County Attorney, Dade County President, Intercap Investments President, Pantin Insurance Agency The Department presently employs 108 full-time and two part-time persons. Approximately one-half of the employees were recently hired to perform meter maintenance, meter collection and parking regulation enforcement functions which these employees had previously performed as employees of Stroyne Brothers South Inc., an independent contractor. The Department has stated that the hiring of these trained employees will increase efficiency and not result in a significant increase in the costs of operating the Parking System. The senior staff personnel employed by the Department are listed below: Roger Carlton has been the Director of the Miami Parking System since June, 1981. Mr. Carlton earned an M.B.A. degree from Georgia State University and is a Ph.D. candidate in Administration at the University of Miami. He came to the Parking System from Dade County, where he was an Assistant County Manager. -20- 83-905, 0 0 Arthur Brawn, Assistant Director for Operations, has been with the City of Miami for 26 years. He is an engineering graduate of the University of Florida and super- vises all new construction and renovation. Daniel Morhaim, Assistant Director for Finance, is a Certified Public Accountant and a graduate of Florida International University. He has recently joined the staff after serving as Comptroller for Stiefel Laboratory Inc. He manages the financial operations of the Parking System. Raymond Sanders, Director of Accounting, oversees the accounting functions of the Parking System. On the staff for 14 years, he holds degrees in accounting and taxation from Long Island University. Risa Ashman, Director of Marketing, received a Bachelor of Science in Management and Consumer Affairs at Florida International University. Her responsibilities include marketing and public relations. Clarice Northcutt, Special Assistant to the Director, has been with the Miami Parking System for five years and is responsible for the operation and management of the Depart- ment's computer system. A graduate of the University of Miami, she has a Bachelor of Business Administration degree with a minor in computer programming. William Ryan, Director of Maintenance, is a former Connecticut state legislator, has 14 years' experience in property management and is responsible for the maintenance of all Department properties. Budgeting Process and Budget for 1983-84 The City Charter requires that all budgets, funds and accounts pertaining to the Department be segregated from all other budgets, funds and accounts of the City and be so kept that they will reflect the financial condition and the operation of the Department. The Bond Ordinance provides that not later than 90 days prior to the beginning of each fiscal year (October 1), the Department will prepare and submit to the Board and the City Commission a preliminary budget of expenditures and revenues for the ensuing fiscal year. On or before the first day of each fiscal year, the Board and the City Commission are to adopt the budget. In the event that such a budget is not -21- 83--90.13, 0 0 adopted, the preliminary budget, or if there is none, the budget for the preceding fiscal year, is, until the adoption of the annual budget, deemed to be in force and is treated as the annual budget. A parking consultant is required to review the annual budget prior to adoption by the Board and the City Commission and to recommend revisions to parking rates as deemed appropriate. The preliminary budget will also be filed with the Trustee. As a matter of Department policy, the annual budget for the Department has been approved in recent years by the Board in June and adopted by the City Commission in July. upon recommendation of the Board, the City Commission may at any time adopt an amended or supplemental annual budget for the Department for the remainder of the then current fiscal year, but no such amended or supplemental annual budget is effective until it has been approved by a parking consultant. The Department is required to prepare quarterly finan- cial statements based on generally accepted accounting prin- ciples. As a matter of policy, the Department prepares monthly financial statements which are reviewed by the Board. The Department's annual financial statements are required to be audited by an independent certified public accountant no later than 120 days after the close of each fiscal year. Rates and Charges The Department monitors the daily revenue collections of its parking garages with a computerized revenue collection system and its parking lots and meter locations with daily revenue logs. The Director and the Parking Consultant per- form a comprehensive review of the rates and revenues of the Parking System monthly and annually as part of the budget process. Increases or decreases in the then current rates are recommended as needed to insure that, at a minimum, the rate covenant requirements outlined in the Bond Ordinance are met. The present policy of the Board is to maximize Revenue by keeping the rates of the Parking System at or just below those of competing parking facilities in the downtown area and at a level in keeping with good business practice in other areas. The chief factors which cause rate changes include: (1) a change in the use of the facility and (2) a change in the rates charged by competitive parking facilities. Locations which become less profitable or even unprofitable are studied in detail to determine the cause of the unprofitability and -22- 83-904- 0 i the probable trend. Parking meters are removed from unprof- itable areas provided such a removal will not have an adverse effect on an adjacent profitable facility. Prior to 1982, rate change recommendations were made at random times only when there was an apparent need to change rates to achieve the desired Net Revenue of at least 150% of the current debt service amount. All rate changes must be submitted to the Board for adoption. Rate changes adopted by the Board must subse- quently be submitted to the City Commission for ratifica- tion. Existing Facilities The Parking System consists of five parking garages either owned or managed by the Department, 37 parking lots and approximately 6,424 on -street parking meters. Although most of these spaces serve the central business district of Miami, important segments of the Parking System serve the outlying areas of Coconut Grove, the Civic Center, Jackson Memorial Hospital, the Garment Center, the Design Plaza, the Omni and the Little River District. On August 1, 1983 the Department had jurisdiction over approximately 16,789 parking spaces in the following cate- gories and approximate amounts: Category Spaces On -Street Parking Meters 6,424 Parking Lots 5,358 Parking Garages (owned) 2,457 Parking Garages (managed) 2,550 The growth of the total number of spaces contained within the Parking System is reflected in the following table: Category 1978 1981 1983 On -Street Parking Meters 4,434 4,425 6,424 Parking Lots 4,506 4,316 5,358 Parking Garages (owned) 2,097 1,565 2,457 Parking Garages (managed) -- - 2,550 Total Spaces 11,037 10,306 16,789 -23- f 3-905: Possible Future Projects and Anticipated Financial Plans In 1981, the Board engaged the Parking Consultant to prepare a Five Year Capital Improvement Study (the "Study"). The Study identified a number of possible projects which might merit specific feasibility studies. A review draft of the Study was submitted to the Board in October, 1982. The Board accepted the Study in concept, with the express provi- sion that individual projects would require detailed feasi- bility studies before further proceedings could occur on any proposed project. The Board has authorized a detailed feasibility study for only one of the nine projects contained in the Study. The Board engaged a consultant to prepare a feasibility study for a 400-space parking facility. The proposed parking facility, referred to as the Coconut Grove Playhouse Project, would be a joint venture by the Department, the City, the State of Florida and the private sector. The Board is await- ing the receipt of the feasibility study before deciding whether to participate in the project. In 1981, the demand for parking spaces in the City's central business district was estimated to be 21,300 spaces. There was a supply of only 17,300 spaces, leaving a defi- ciency of approximately 4,000 spaces. It was estimated that the demand will reach a total of 32,000 spaces by 1987. There are 4,000 spaces under construction by the private and public sectors currently, and the Parking Consultant esti- mates that 3,000 additional private spaces will be built by 1987. The following table was prepared by the Department and reflects the Department's reasonable expectation of facili- ties to be added to the Parking System over the next five years from excess revenues of the Parking System, the issu- ance of Additional Bonds or the issuance of special purpose facilities bonds. None of the projects reflected in the following table that require additional debt financing has been approved by the Board. The Department does not antici- pate the use of any Subordinated Indebtedness to finance the projects planned for future development. [This space intentionally left blank.] -24- 93-9®5 4k 0 YEAR LOCATION SPACES(1) ESTIMATED COSTS TO BE FUNDED BY SPECIAL PURPOSE CASH ADDITIONAL FACILITIES FLOW BONDS BONDS 1983 Off -Street Lots 150 $150,000 On -Street Meters 500 150,000 Total 650 $300,000 1984 Coconut Grove Playhouse 400 (2) Little Havana Lots 350 $350,000 Off -Street Lots 150 150,000 On -Street Meters 500 150,000 Total 1,400 $650,000 1985 Civic Center Garage 750 (3) Miamarina Garage 400 (3) Off -Street Lots 150 $150,000 On -Street Meters 500 150,000 Total 1,800 $300,000 1986 Off -Street Lots 150 $150,000 On -Street Meters 500 150,000 Total 650 $300,000 1987 Lot 10 (3) 1,500 Off -Street Lots 150 $150,000 On -Street Meters 500 150,000 Total 2,150 $300,000 $6,600,000 $6,600,000 $10,725,000 $10,725,000 $3,520,000 $3,520,000 $2,860,000 $2,860,000 (1) This table does not reflect managed facilities which are owned and financed by other organizations. (2) This project has been initially reviewed by the Board and is subject to receipt of a satisfactory feasibility study. (3) These projects have not been approved by the Board. Prior to such approval, the Board must receive a satisfactory feasibility study from the Parking Consultant. -25- 83-=900' t dW Other Operations The Department is responsible for management of the 1,875-seat Maurice Gusman Cultural Center and the contiguous 80,000-square-foot, 10-story Olympia Building located in downtown Miami. This complex was donated to the City in 1975 by philanthropist Maurice Gusman. A condition of donation is that the Department operate the complex as an enterprise fund. No Revenues of the Department are utilized to subsi- dize operations of the Cultural Center and Olympia Building. The surplus revenues of the office building have been generally sufficient to fund the deficit of the Cultural Center. The City is responsible under a verbal agreement with the Department to fund any deficits of the operation of the office building and cultural center. A redevelopment program is being planned whereby the private sector will compete to lease the Olympia Building for redevelopment into a downtown activity and commercial center. It is estimated by the Department that the developer selection process will be completed during spring of 1984. Impact of Metrorail on Net Revenues Presently, the County is constructing Metrorail, a 21.5-mile rapid transit system which will serve the City and certain nearby suburbs. The southern leg of the system is scheduled to begin operation in December of 1983. The remainder of the system is scheduled to begin operation in late 1984. Construction has also begun on an elevated two- way system, the Downtown People Mover, which will loop through the downtown area and connect with the Metrorail System. The Downtown People Mover is expected to begin operation in late 1985. A study prepared for the County as part of the Metrorail planning included an evaluation of the impact Metrorail will have on parking demand for the downtown area. That study projected that Metrorail and the Downtown People Mover would decrease parking demand in the downtown area from five per- cent to eight percent. That study also indicated that the downtown parking demand would resume its historic increase and equal or exceed the parking demand prior to the intro- duction of Metrorail within three to five years. The Parking Consultant has concluded that Metrorail will have a negligible impact on the Net Revenues of the Depart- ment after evaluating the above -noted study, other studies of parking in the downtown area, the location of the Depart- ment's facilities, parking rates charged by the Department, -26- 83-905 r. the relative attractiveness of the Department's facilities and the performance of the Department's facilities during energy shortages. Management of Metrorail Parking System In June, 1983 the County and the Department entered into a contract which provides that the Department will manage the approximately 15,000 parking spaces (six garages and 11 sur- face lots) which the County expects to build to serve Metrorail commuters. Under the terms of the contract, the County will establish rates for such facilities after a review of the annual budget and rate structure which the Department has submitted. The County's Transportation Administration and the Department will jointly develop an operations manual for the parking facilities. The County Manager will resolve any disputes between the parties. The Department will be compensated currently for all direct expenses from a drawing account containing an initial deposit of three months' estimated direct expenses, which account is to be replenished monthly by the County. Indirect expenses will be compensated based upon an annually negoti- ated, indirect cost plan. The indirect cost plan is expressed by a percentage of direct costs for which the Department will be reimbursed monthly. The Department will also be compensated according to a management incentive plan under which the guaranteed minimum payment will be $100,000 per year. If net revenues exceed the annually negotiated base, the Department may earn as much as 10% of the excess revenues above the negotiated figure. Additionally, if the County decides to operate its parking facilities at a loss, the Department will receive $100,000 plus a management incentive fee which would be determined in relation to the amount by which the expected loss is reduced. The contract may be terminated with one year's notice by the Department or at any time by the County. If the County terminates the contract, the County will be responsible for all costs incurred by such termination. Retirement Plans and Pension Liabilities The Department is the sole sponsor of a defined benefit pension plan (the "Plan") which covers substantially all of the eligible full-time employees of the Department and the Gusman Cultural Center and Olympia Building. -27- Sw3_9a5f W The Plan, effective since November 14, 1971, requires contributions from employees at a rate of 6-1/2% of their salaries. The Department's contribution is equal to the remaining amount necessary to fund the Plan adequately. As of September 30, 1982, the Plan was fully funded. In accordance with the Plan, the Department is required to fund liabilities of the Plan based upon actuarial valua- tions. Actuarial valuations of the Plan are required every three years, although it has been the policy of the retire- ment board created under the terms of the Plan to obtain such valuations at the end of each fiscal year. The actuarially computed present value of accumulated plan benefits at September 30, 1982 and 1981 were as follows: 1982 1981 Vested $204,610 $110,503 Nonvested 105,692 60,620 Total $310,302 $171,123 Net assets available for benefits $456,205 $355.850 The Department's pension costs for the years ended September 30, 1982 and 1981 amounted to $28,680 and $5,253, respectively. Pension costs for 1982 and the budgeted amounts for the fiscal years ending September 30, 1983 ($42,440) and 1984 ($76,850) reflect the Department's policy to fund such pension costs in the year incurred. The increased contributions reflect expansion of the Department's operations of owned and managed facilities as described in the Report of Parking Consultant, Appendix A hereto. PROPOSED CONSTITUTIONAL REFERENDUM ON REVENUE LIMITATIONS Florida's Department of State has certified a petition to place on the ballot for the November, 1984 election an amendment to the Florida Constitution to limit the revenue received by the State and each taxing unit thereof to the revenue received in the 1980-81 fiscal period, plus ad valorem taxes due to new construction subject to assessment for the first time and annual adjustments equal to the 1980-1981 revenue times two-thirds of the percentage change in the Consumer Price Index. The maximum annual adjustment increase for ad valorem taxes is five percent. As defined in the proposed amendment, "revenue" includes ad valorem taxes, other taxes and all other receipts, including receipts of -28- 83=90 A I agencies and instrumentalities and proprietary and trust funds, but excludes receipts from the United States Govern- ment and its instrumentalities, bonds issued, loans received and the cost of investments sold. The proposed amendment, however, does provide expressly that these revenue limits may be exceeded to the extent necessary to avoid impairment of obligations, contracts or bonds existing on the effective date of the amendment. Whether the proposed amendment will be approved by the voters and the effect the proposed amendment will have on the City and its Department cannot be predicted at this time. Similarly, the effect of the savings clause on rate covenants and on prohibiting limitation of revenue pledged to bonds (including the Series 1983 Bonds) which have been issued prior to November, 1984 may be determined only after the enactment of legislation implementing the proposed amendment and court decisions interpreting its effect. Litigation is presently pending challenging the proposed amendment. LITIGATION In the opinion of the City Attorney and the General Counsel of the Department, there is not now pending any liti- gation restraining or enjoining the issuance or delivery of the Series 1983 Bonds or the pledging of the Net Revenues or questioning or affecting the validity of the Series 1983 Bonds or the Net Revenues or the proceedings and authority under which the Series 1983 Bonds are to be issued. Neither the creation, organization or existence nor the title of the present members of the Board, the Department, the City Com- mission or other officers of the City to their respective offices is being contested. In the opinion of the City Attorney and the General Counsel of the Department, there are no pending or threatened lawsuits against the Department. FINANCIAL ADVISOR Shearson/American Express Inc. is acting as Financial Advisor to the City and the Department in connection with the issuance of the Series 1983 Bonds. TRUSTEE AND BOND REGISTRAR AND ESCROW AGENT The initial Trustee and Bond Registrar for the Series 1983 Bonds is Sun Bank, National Association, Orlando, Florida. Sun Bank, National Association, Orlando, Florida, is also the Escrow Agent for the Outstanding Bonds. -29- y l CONSULTING ENGINEERS The report of Conrad Associates East, Parking Consult- ant, attached hereto as Appendix A, and the information from such report contained herein is being included in reliance on the authority of such firm as experts. VALIDATION The Series 1983 Bonds were validated by a judgment rendered by the Eleventh Judicial Circuit Court in and for Dade County on June 30, 1983. The time for taking an appeal from such judgment has expired and no appeal was filed. UNDERWRITING The Underwriters, for whom William R. Hough & Co. is serving as Senior Manager, have jointly and severally agreed, subject to certain conditions contained in a bond purchase contract entered into between the Underwriters and the City, to purchase all, but not less than all, of the Series 1983 Bonds at a price representing an aggregate underwriting discount from the initial public offering prices set forth on the cover page of this Official Statement equal to 97.0979668% of the principal amount of the Series 1983 Bonds and to make a bona fide public offering of the Series 1983 Bonds at not in excess of such public offering prices, plus accrued interest. The initial public offering prices may be changed from time to time by the Underwriters. The Series 1983 Bonds may be offered and sold to certain dealers (including underwriters and other dealers depositing such bonds into investment trusts) at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by the Underwriters. RATINGS As noted on the cover page of this Official Statement, Moody's Investors Service, Inc. has given the Series 1983 Bonds the rating of "A" and Standard & Poor's Corporation has given the Series 1983 Bonds the rating of "A-." An explana- tion of the significance of such ratings may be obtained from the rating agency furnishing the same. The Department fur- nished to such agency certain materials and information regarding the results of its operations and the Series 1983 Bonds. Generally, rating agencies base their ratings on such materials and information as well as investigations, studies and assumptions of the rating agencies. There is no assur- ance that such rating will be in effect for any given period -30- 83-'905 t of time or that it will not be revised downward or withdrawn entirely by such rating agencies if, in the judgment of such agency, circumstances so warrant. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Series 1983 Bonds. TAX EXEMPTION In the opinion of Bond Counsel, the interest on the Series 1983 Bonds is exempt from all present federal income taxation, and the Series 1983 Bonds and the income thereon are not subject to taxation under the laws of the State of Florida, except as to taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations as defined in said Chapter 220. LEGALITY All legal matters incident to the validity of the Series 1983 Bonds, including their authorization, issuance and sale by the City, are subject to the approval of Brown, Wood, Ivey, Mitchell & Petty, Bond Counsel, whose approving opinion (in the form attached hereto as Appendix E) will be fur- nished, without charge, to the purchasers of the Series 1983 Bonds at the time of their delivery. Certain matters will be passed upon for the Underwriters by their counsel, Fine Jacobson Block Klein Colan & Simon, P.A. and Kutak Rock & Huie. Certain matters will be passed upon for the City by J. Garcia -Pedrosa, City Attorney, and for the Department by Ronald A. Silver, General Counsel to the Department. FINANCIAL STATEMENTS AND AUDITORS' REPORT The financial statements of the Department for the years ended September 30, 1982 and 1981 and the Auditors' Report thereon, reproduced herein as Appendix B, are integral parts of this Official Statement. MISCELLANEOUS The excerpts, summaries of or references to the Ordi- nances and Resolutions and certain statutes and all other documents referred to in this Official Statement do not purport to be full and complete statements of all matters of fact relating to the Series 1983 Bonds, the security for and the source of repayment for the Series 1983 Bonds and the rights and obligations of the owners thereof, and such sum- maries and references are qualified in their entirety by -31- 83-90E: i reference to each such ordinance, resolution, law and docu- ment. Copies of such documents and statutes may be obtained from the City or the Department of Off -Street Parking, 190 Northeast Third Street, Miami, Florida 33132, Attention: Director, Telephone Number (305) 579-6789; from Shearson/ American Express Inc., 100 North Biscayne Boulevard, Suite 1411, Miami, Florida 33132, Telephone Number (305) 371-7084; and from William R. Hough & Co., One Fourth Street, North, St. Petersburg, Florida 33731, Attention: Municipal Finance, Telephone Number (813) 823-8100. EXECUTION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT This Official Statement has been authorized by the City of Miami, Florida. Concurrently with the delivery of the Series 1983 Bonds, the undersigned will furnish their certif- icate to the effect that, to the best of their knowledge, this Official Statement did not as of its date, and does not as of the date of delivery of the Series 1983 Bonds, contain any untrue statement of a material fact or omit to state a material fact which should be included therein for the pur- poses for which this Official Statement is to be used, or which is necessary in order to make the statements contained therein, in the light of the circumstances in which they were made, not misleading. CITY OF MIAMI, FLORIDA /s/ MAURICE A. FERRE Mayor /s/ ARNOLD RUBIN Chairman, Off -Street Parking Board /s/ ROGER M. CARLTON Director, Department of Off -Street Parking - 3 2 - 83-90S i A APPENDIX A REPORT OF CONRAD ASSOCIATES EAST 83-90.5 I r Summary of the Bond Ordinance The following are verbatim excerpts of certain portions of Ordinance No. 96-18 (the "Bond Ordinance") and summaries of certain other portions of the Bond Ordinance, to which reference is made for further information. Definitions. "Additional Bonds" means the bonds of the City authorized to be issued under Sections 209, 210 and 211 of the Bond Ordinance. "Additional System Facilities" means (a) any parking garages and off-street parking facilities and on -street parking meters that are not a part of the Parking System as of the date of the Bond Ordinance, including all land, buildings, structures, equipment and appurtenances constituting a part thereof, (b) all enlargements of and improvements and additions to any existing or future buildings and structures that constitute the Parking System, and (c) all renewals and replacements of any of the foregoing, which parking garages, off-street parking facilities, enlargements, improvements, additions, renewals and replacements are financed as a whole or in part through the issuance of Additional Bonds or with money held in the General Reserve Fund. "Board" means the Off -Street Parking Board created by the City Charter or, if said Board is abolished, the board or body succeeding to its principal functions and exercising supervisory control over the Department. "Current Expenses" means the current expenses of the Board and the Department for the operation, maintenance, and repair of the Parking System as determined in accordance with generally accepted accounting principles, including, without limiting the generality of the foregoing, all ordinary and usual expenses of operation, main- tenance, and repair, administrative expenses, salaries, payments to any retirement plan or plans properly chargeable to the Parking System, insurance premiums and expenses, engineering expenses relating to the operation, maintenance, or repair of the Parking System, fees and expenses of the Trustee and the Paying Agents, legal expenses, fees of consultants, and any other expenses required to be paid by the Board and the Department under the Bond Ordinance or by law, but Current Expenses shall not include any reserves for extraordinary replacements or repairs, any allowance for deprecia- tion, any principal payment in respect of capital leases or Sub- ordinated Debt, or any deposits to any Fund or Account created under the Bond Ordinance. 83- ' 90