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Home My WebLink AboutR-79-0093lea RFC / rb 2/16/79 "SUPPORTIVE DOCUMENTS FOLLOW" RESOLUTION NO. 7 9 - 9 3 A RESOLUTION FINDING AND DECLARING A NEED FOR A HEALTH FACILITIES AUTHORITY WITHIN THE CITY OF MIAMI, AND ESTABLISHING SUCH AN AUTHORITY AS A PUBLIC INSTRUMENTALITY UNDER THE PROVISIONS OF CHAPTER 74-323, LAWS OF FLORIDA, TO BE KNOWN AS THE "CITY OF MIAMI, FLORIDA, HEALTH FACILITIES AUTHORITY"; FURTHER PROVIDING FOR THE APPOINTMENT OF 5 PERSONS WHO MUST BE RESIDENTS OF THE CITY TO SERVE STAGGERED TERMS ON SUCH AUTHORITY. WHEREAS, Chapter 74-323, Laws of Florida, Acts of 1974, Chapter 154, Florida Statutes, Part III, as amended (hereinafter referred to as the "Act), authorizes the creation by ordinance or resolution of a public body corporate and politic, to be known as a health facilities authority, in each municipality of the State of Florida, which authority shall be constituted as a public instrumentality, for the purpose of assisting health facilities in the acquisition, construction, financing and refinancing of projects in any corporated or unincorporated area within the geographical limits of the municipality; and WHEREAS, prior to the transaction of any business or the exercise of any power under the Act by such an authority, the governing body of the municipality shall declare that there is a need for such an authority to and fun DOCUMENT RVbpality; WHEREAS, the Act authorizes the governing body of ITEM NO each municipality to designate 5 persons who are residents of the municipality as members of the authority created for such municipality; and WHEREAS, the City Commission finds that it is in the public interest to create such an authority in the City of Miami; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: CITY COMMISSION MEETING OF FEB3 2 I MINIM 'AAslll 4.4440....4.4m........44.41444• Section 1. The City Commission hereby finds and declares that there is a need for a health facilities authority in the City of Miami, Florida, for the purposes authorized and set forth in Chapter 74-323, Laws of Florida, Chapter 154, Florida Statutes, Part III, as amended, (hereinafter called the "Act"). Section 2. An authority, henceforth to be known as the "City of Miami, Florida, Health Facilities Authority", a public body corporate and politic, to be constituted as a public instrumentality, is hereby established and created for the purposes authorized by the aforesaid Act. Section 3. The City Commission will apoint 5 per- sons, who are residents of the City of Miami, to be designated as members of the City of Miami, Florida, Health Facilities Authority. Of the members first appointed, one shall serve for 1 year; one shall serve for 2 years; one shall serve for 3 years; and two shall serve for 4 years; in each case until his or her successor is appointed and has qualified. "SUPPORTIVE PASSED AND ADOPTED this 22 day of FEBRUARY , 1979. DOCUMENTS FOLLOW" MAURICE A. FERRE. MAYOR R LPH G. ONGIE, CITY CLE PREPARED AND APPROVED BY: ieW- R6BERT F. CLARK, ASSISTANT CITY ATTORNEY AP ED AS TO FORM AND CORRECTNESS: GEOR . KNOX, JR., TTORNEY -2- II I I I 11111111111111111111Milimmi 79-93 4e CITY OF MIAMI. FLORIDA INTEROFFICE MEMORANDUM Tot FROM: Mr. Joseph R. Grassie City Manager t1..... <- 0 c “1 7 -- ames E. Gunderson irector of Finance DATE. SUOJCCT. February 5, 1979 Health Facilities Authority REFERENCES: ENCLOSURES: FILE: The attachments succinctly provide for the creation of a authority in the City of Miami. As recited therein; and the Health Facilities authorities act, the City of Miami any liability for the operations of the authority nor be any indebtedness authorized by such an authority. I can, therefore, unqualifiedly recommend its creation. health facilities in accordance with will not incur responsible for "SUPPORTIVE DOCUM ENTS FOLLOW" 79-93 CIRCLE OF CONCERN Mercy Hospital 3663 SOUTH MIAMI AVENUE MIAMI, FLORIDA 33133 PHONE 305/854-4400 February 2, 1979 The Honorable Joseph Grassie, Manager City of "Miami Post Office Box 330708 Miami, Florida 33133 Dear Mr. Grassie: The undersigned non-profit health care facilities, located and opera- ting within the city limits of the City of Miami, Florida request that the City of Miami, Florida create a "City of Miami, Florida Health Facilities Authority" pursuant to Chanter 74-323, Laws of Florida, Acts of 1974, Chapter 154, Florida Statutes, Part III, as amended. The Authority will have the power to sell tax-exempt bonds for any of the purposes authorized by the Statute. The benefit of lower interest rates available through the sale of tax-exempt bonds will accrue directly to the advantage of the health care facilities. This reduc- tion of interest cost will help to reduce the current costs of patient care in the affected health facilities, within the City of Miami, Florida and will assist the health facilities in containing costs at lower levels than would otherwise he anticipated if the lower interest costs were not available. In our opinion, the bonds to be sold by the Authority would be supported solely from the revenues generated by the Authority from payments received from the participating health care facilities and would not, under any circumstance, constitute a liability or obligation of the City of Miami, Florida. Furthermore, the creation of the Authority does not constitute a commitment from the City of Miami, Florida to provide any subsidies or funds to the facilities either directly or indirectly. The proposed Health Facilities Authority, likewise, can operate without cost to the City of Miami, Florida since authority expenses, if any, will be absorbed in the cost associated with the sale and servicing of the bonds. The Florida law which enables the creation of the Authority permits new financing as well as refinancing of existing debts. Although a Certificate of Need is not required for refinancing, it should be noted that with respect to a new project an appropriate Certificate of Need must be issued for the nronosed new facilities before the sale of the bonds can be authorized. This condition offers the safe- guard to the City of Miami, Florida and the Authority that excess and unneeded beds cannot and will not be built as a result of the creation 79-93 The Honorable Joseph Crassie Page 2 of said Health Facilities Authority. On the other hand, and with respect to refinancing, the benefit to the undersigned health care facilities and, therefore, to the community, could represent an immediate and dramatic reduction of interest expense which makes up a significant portion of the overall charges to patients in our facilities. By way of illustration, the present outstanding debt represented by the undersigned hospitals is approximately $100 million. Therefore, an overall reduction of 1I to 2% per annum in the effective interest rate would result in immediate annual savings of between $1' to $2 million, and a total savings over the projected term of the aggregate debts of approximately $22 to $29 million. With respect to the proposed creation of the City of Vianmi, Florida Health Facilities Authority, it is our recommendation that the five - member Board to be created, as required bN, Florida law, be citizens of the City of Miami, Florida and include one -member each representing the following professions: banking, accounting, health care service, medical and legal. it is our opinion that this cross-section of pro- fessional composition will give to the Authority the required expertise necessary in the decision making process of a functioning Health Facilities Authority. Enclosed is a form of proposed resolution for the creation of the City of Miami, Florida Health Facilities Authority. We believe that there is a necessity, as defined in Chapter 154.203, Florida Statutes, Part III, for the creation and operation of the requested Health Facilities Authority. Sincerely yours, MERCY HOSnITAL, INC. By �iz fib Herbert E. Lona, Executiector We join in and support this request for the creation of the City of Miami, Florida Health Facilities Authority. VICTOr .t.. HOSPITAL, INC. 955 N. W. Third Street Miami, Florida 33128 CEDARS OF LEBANnN HOSPITAL CORP. 1400 N. W. 12 Avenue Miami, Florida 33136 BY 0��'_ �l1i %' a By i tee. T: McCrimmon Executive Director J. •�Ziskind Execut_ e Director