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CITY OF MIAMI, FLORIDA
LIMITED AD VALOREM TAX BONDS, SERIES 2009
(HOMELAND DEFENSE/NEIGHBORHOOD CAPITAL IMPROVEMENT PROJECTS)
PURCHASE CONTRACT
April _, 2009
The City Commissioners
of the City of Miami, Florida
3500 Pan American Drive
Miami, Florida 33133
Ladies and Gentlemen:
1. Merrill Lynch, Pierce Fenner & Smith incorporated (the "Representative"),
J.P. Morgan Securities, Inc., SunTrust Capital Markets, Inc., Raymond James & Associates, Inc. and
Banc of America Securities LLC (collectively, the "Underwriters") offer to enter into the following
agreement (this "Purchase Contract") with the City of Miami, Florida (the "City"), which upon the
City's acceptance hereof will be binding upon the City and upon the Underwriters. This offer is
made subject to the City's acceptance by execution of this Purchase Contract and its delivery of same
to the Underwriters at or before 5:00 p.m., New York City time, today.
2. Upon the terms and conditions and upon the basis of the representations, warranties,
covenants and agreements hereinafter set forth, the Underwriters hereby agree to purchase from the
City for offering to the public, and the City hereby agrees to sell and deliver to the Underwriters for
such purpose, all (but not less than all) of the aggregate principal amount of the City's Limited Ad
Valorem Tax Bonds (Homeland Defense/Neighborhood Capital Improvement Projects), Series 2009,
dated as of April_, 2009 ( the "Series 2009 Bonds"). The Underwriters agree to pay to the City for
the purchase of the Series 2009 Bonds an amount equal to $ (which represents the
par amount of the Series 2009 Bonds, plus net original issue premium of $ and less an
Underwriters' discount of $ ). Such purchase price shall be paid by the Underwriters to
the City on the Closing Date as described in Section 7 hereof.
3. The Series 2009 Bonds are being issued by the City pursuant to the Constitution and
laws of the State of Florida, including Chapter 166, Part II, Florida Statutes, the Charter of the City,
and other applicable provisions of law (the "Act") and pursuant to Ordinance No. 1213 7 of the City
enacted by the City Commission of the City on October 11, 2001 (the "Initial Ordinance"), and
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Resolution No. 09- adopted by the City Commission of the City on March _, 2009 (the "Series
2009 Bonds Resolution", together with the Initial Ordinance, the "Resolution"). The Series 2009
Bonds are being issued for the purpose of (i) funding certain capital improvements including, a
homeland security program, neighborhood improvements, capital projects and infrastructure
improvements (collectively, the "Project"), and (ii) paying certain costs and expenses incurred in
connection with the issuance of the Series 2009 Bonds[, including the premium for a municipal bond
insurance policy]. The payment of the principal of, redemption premium, if any, and interest on the
Series 2009 Bonds shall be secured by the Limited Ad Valorem Tax and a portion of the Non -Ad
Valorem Revenue of the City in the manner and to the extent described in the Resolution. [Payment
of the principal of and interest on the Series 2009 Bonds, when due, will be guaranteed under a
policy of municipal bond insurance (the "Policy") to be issued at the Closing, as hereinafter defined,
by MBIA Insurance Corporation (the "Insurer").]
The Series 2009 Bonds shall be more fully described in the Preliminary Official Statement,
dated April _, 2009, relating to the Series 2009 Bonds, the form of which is attached to the
Resolution. Such Preliminary Official Statement as amended to delete preliminary language and
reflect the final terms of the Series 2009 Bonds, and with only such changes as shall be approved by
the City and the Underwriters, and as amended and supplemented prior to Closing, is herein referred
to as the "Official Statement." The Series 2009 Bonds shall mature, bear interest and be subject to
redemption as set forth in Exhibit A attached hereto, and have all such other terms and provisions, as
set forth in the Resolution and as described in the Official Statement. All terms not otherwise
defined herein shall have the meanings ascribed thereto in the Resolution.
4. Prior to the submission of the offer to purchase the Series 2009 Bonds pursuant to this
Purchase Contract, the Underwriters have provided the City all applicable disclosure information
required by Section 218.385, Florida Statutes, a copy of which is attached as Exhibit B hereto, and
the City, by its acceptance hereof, accepts such disclosure and agrees that it does not require any
further disclosure from the Underwriters prior to the delivery of the Series 2009 Bonds with regard to
the matters set forth in such Section. The Underwriters agree to make a bona fide public offering of
all the Series 2009 Bonds at not in excess of the initial public offering price (which maybe expressed
in terms of yield), set forth in Exhibit A attached hereto. The Series 2009 Bonds maybe offered and
sold to certain dealers (including the Underwriters and other dealers or institutions depositing such
Series 2009 Bonds into investment trusts) at a price or prices lower than such public offering price.
The City covenants with the Underwriters to cooperate with it in qualifying the Series 2009 Bonds
for offer and sale under the securities or "Blue Sky" laws of such states as the Underwriters may
request; provided that in no event shall the City be obligated to take any action which would subject
it to general service of process in any state where it is not now so subject. In accordance with
Section 1.148(b) of the Regulations promulgated under the Internal Revenue Code of 1986, as
amended, the Underwriters agree to provide at the Closing a certificate stating the price at which at
least 10% of each maturity of the Series 2009 Bonds have been sold to the public.
Delivered herewith by the Representative on behalf of the Underwriters is a check payable to
the order of the City in an amount equal to $ [approximately 1% of par] (the "Good
Faith Check"). If the City does not accept the offer made hereby, the Good Faith Check shall be
immediately returned to the Underwriters. If the offer made hereby is so accepted, the City shall hold
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the Good Faith Check uncashed until the Closing Date, as defined herein. In the event the
Underwriters accept and pay for the Series 2009 Bonds, as provided herein, the uncashed Good Faith
Check shall be returned to the Representative at the Closing.
In the event the City shall fail to deliver the Series 2009 Bonds at the Closing Date, or if the
City shall be unable at or prior to the Closing Date to satisfy the conditions to the obligations of the
Underwriters contained herein, or if the obligations of the Underwriters shall be terminated for any
reason permitted hereby, the Good Faith Check shall be returned immediately to the Representative
on behalf of the Underwriters on or prior to the Closing Date.
If the Underwriters shall fail (other than for a reason permitted hereby) to accept and pay for
the Series 2009 Bonds upon tender thereof by the City as provided herein, the Good Faith Check
shall be retained by the City as and for full liquidated damages for such failure and for any and all
defaults on the part of the Underwriters, and shall constitute a full release and discharge of all claims
and damages for such failure and for any and all such defaults.
The following statements are made in satisfaction of the requirements of Section 218.385(2)
and (3), Florida Statutes.
The City is proposing to issue the Series 2009 Bonds in the aggregate principal
amount of $ .00 for the purpose of (i) funding the Project, and (ii) paying certain
costs of issuance of the Series 2009 Bonds[ including a portion of the premium for the
Policy] The Series 2009 Bonds are expected to be repaid over a period of approximately
years, at a true interest cost of approximately %, resulting in total interest
payments in the amount of $ being made over the life of the Series 2009 Bonds,
The Series 2009 Bonds are payable from and secured by the Limited Ad Valorem Tax
and a portion of the Non -Ad Valorem Revenue of the City (as defined in the Resolution).
Authorizing the Series 2009 Bonds will result in approximately $ (average
annual debt service) of City's moneys not being available to finance other services of the
City each year over the next approximately years.
5. Within seven business days of the acceptance hereof by the City, the City shall cause
to be delivered such reasonable number of copies of the final Official Statement as the Underwriters
shall request, which shall be sufficient in number to comply with paragraph (b)(4) of Rule 15c2-12
of the Securities and Exchange Commission (17 CFR § 240.15c2-12) under the Securities Exchange
Act of 1934 (the "Rule") and with Rules G-32 and G-36 and all other applicable rules of the
Municipal Securities Rulemaking Board (the "MSRB"). The City hereby authorizes the
Underwriters to use and distribute the Resolution and the Official Statement and the information
contained in each such document in connection with the public offering and the sale of the Series
2009 Bonds. The Underwriters agree that they will not confirm the sale of any Series 2009 Bonds
unless the confirmation of sale is accompanied or preceded by the delivery of a copy of the Official
Statement pursuant to the rules of the MSRB.
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6. The City represents, warrants, covenants and agrees with the Underwriters as of the
date hereof and as of the Closing Date, which representations and warranties shall survive the
Closing, that:
A. The City is a municipal corporation of the State of Florida duly organized and
existing pursuant to the Constitution, the Charter of the City, and laws of such State and is
authorized and empowered by law, including particularly the Act, to issue the Series 2009
Bonds and to use the moneys derived from the sale of the Series 2009 Bonds to fund the
Project; to adopt the Resolution, to accept this Purchase Contract; to issue, sell and deliver
the Series 2009 Bonds to the Underwriters as provided herein; to execute and perform its
obligations under a Disclosure Dissemination Agent Agreement, the form of which is
attached to the Preliminary Official Statement as Appendix G (the "Disclosure Agreement");
and to carry out and consummate all other transactions contemplated by the Official
Statement and by each of the aforesaid documents, agreements and resolutions.
B. The City has duly authorized by all appropriate action, and complied with all
provisions of law with which compliance was required on or prior to the date hereof,
including the Act, with respect to the acceptance of this Purchase Contract, and the execution
and delivery of the Disclosure Agreement; the adoption of the Resolution; and the sale,
execution, issuance and delivery of the Series 2009 Bonds. Each of the aforementioned
agreements, ordinances, resolutions and other instruments constitute valid and binding
obligations of the City enforceable against the City in accordance with their respective terms,
subject to applicable bankruptcy, insolvency and other laws affecting creditors' rights and
remedies and to general principles of equity.
C. When delivered to and paid by the Underwriters in accordance with the terms
of this Purchase Contract and the Resolution, the Series 2009 Bonds will have been duly and
validly authorized, executed, authenticated, issued and delivered and will constitute legal,
valid and binding limited obligations of the City enforceable in accordance with their terms,
subject to applicable bankruptcy, insolvency or other laws affecting creditors' rights and
remedies and to general principles of equity, and will be entitled to the benefits of the
Resolution.
D. The City is not in breach or default under any applicable constitutional
provision, law or administrative regulation of the State of Florida or the United States or any
applicable judgment or decree or any loan agreement, indenture, bond, note, ordinance,
resolution, agreement or other instrument to which the City is a party or to which the City or
any of the property or assets of the Project are otherwise subject, and no event has occurred
and is continuing which constitutes or with the passage of time or the giving of notice, or
both, would constitute a material default or event of default by the City under any such
instrument. The acceptance of this Purchase Contract, the execution and delivery of the
Series 2009 Bonds and the Disclosure Agreement, the adoption of the Resolution, and
compliance with the provisions thereof, do not and will not conflict with, or constitute on the
part of the City a material violation of, breach of or default under, any indenture, mortgage,
deed of trust, resolution, note agreement or other agreement or instrument to which the City
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is a party or by which the City is bound, or, any constitutional provision or statute of the
State of Florida, any order, rule or regulation of any court or governmental agency or body
having jurisdiction over the City or any of its activities or properties; and all consents of any
governmental authority of the State of Florida required in connection with the issuance or
sale of the Series 2009 Bonds by the City have been obtained; provided, however, that no
representation is made concerning compliance with the Federal securities laws or the
securities or "Blue Sky" laws of the various States.
E. Except as described in the Preliminary Official Statement and in the Official
Statement, there is no action, suit, proceeding, inquiry or investigation, at law or in equity,
before or by any court or governmental agency or body pending or, to the best of its
knowledge, threatened against or affecting the City, nor is there any basis therefor, wherein
an unfavorable decision, ruling or finding would materially adversely affect the transactions
contemplated by this Purchase Contract, the Resolution and the Disclosure Agreement, or
which, in any way, would adversely affect the validity or enforceability of the Series 2009
Bonds, the Resolution, the Disclosure Agreement, or any agreement or instrument to which
the City is a party, used or contemplated for use in the consummation of the transactions
contemplated by this Purchase Contract, the Disclosure Agreement and the Resolution.
F. The City will not take or omit to take any action which action or omission will
in any way cause the proceeds from the sale of the Series 2009 Bonds to be applied in a
manner contrary to that provided for in the Resolution and as described in the Official
Statement.
G. The Preliminary Official Statement as of the date thereof and the Official
Statement as of the date hereof (but in both instances not including information in such
documents under the heading[s "Municipal Bond Insurance" and] "Description of the Series
2009 Bonds — Book -Entry Only System") do not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. If, after the date of
this Purchase Contract and until the earlier of (i) ninety (90) days from the end of the
"underwriting period" (as defined in SEC Rule 15c2-12) or (ii) the time when the Official
Statement is available to any person from a nationally recognized repository, but in no case
less than 25 days following the end of the underwriting period, any event shall occur which
might or would cause the Official Statement, as then supplemented or amended, to contain
any untrue statement of a material fact or to omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading, the City shall notify the Underwriters thereof, and, if in the opinion of the
Underwriters, such event requires the preparation and publication of a supplement or
amendment to the Official Statement, the City will at its own expense forthwith prepare and
furnish to the Underwriters a sufficient number of copies of an amendment of or supplement
to the Official Statement (in form and substance satisfactory to the Underwriters) which will
supplement or amend the Official Statement so that it will not contain an untrue statement of
a material fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances existing at such time, not misleading.
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H. Except as disclosed in the Preliminary Official Statement and in the Official
Statement, the City neither is nor has been in default any time after December 31, 1975, as to
principal or interest with respect to an obligation issued by the City.
I. The City has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not
be relied upon.
J. As of its date, the Preliminary Official Statement was deemed "final" by the
City for purposes of SEC Rule 15c2 -12(b).
K. The City has, in connection with previous issues of securities, undertaken in a
written certificate for the benefit of holders of such securities, to provide certain continuing
disclosure information in accordance with Rule 15c2 -12(b)(5) of the Securities and Exchange
Commission, and the City has complied with and is currently in compliance with each such
undertaking.
L. (i) The financial statements of the City and the other financial information
regarding the City in the Official Statement fairly present the financial position and results of
the operations of the City as of the dates and for the periods therein set forth; (ii) the audited
financial statements have been prepared in accordance with generally accepted accounting
principles consistently applied; (iii) the unaudited financial statements (if any) have been
prepared on a basis substantially consistent with the audited financial statements included in
the Official Statement and reflect all adjustments necessary to that effect; (iv) the other
financial information has been determined on a basis substantially consistent with that of the
City's audited financial statements included in the Official Statement; and (v) there has been
no material adverse change in the financial condition of the City since September 30, [2008],
except as specifically described in the Official Statement.
7. At 1:00 p.m., Eastern time, on April _, 2009 (the "Closing Date"), or at such other
time or on such earlier or later business day as shall have been mutually agreed upon by the City and
the Underwriters, the City will deliver, or cause to be delivered, through the DTC FAST system to
the Underwriters the Series 2009 Bonds, in fully registered book entry form, duly executed and
authenticated, at a place in Miami, Florida to be mutually agreed upon by the City and the
Underwriters. The City will deliver, or cause to be delivered, to the Underwriters at such time and
on such date and at a place to be mutually agreed upon by the City and the Underwriters, the closing
documents as provided and described in Section 8 of this Purchase Contract. Upon compliance with
all the terms and provisions and subject to the conditions hereof, the Underwriters will accept such
delivery and pay the purchase price of the Series 2009 Bonds as set forth in Section 2, in
immediately available funds to the order of the City; such delivery and payment is herein called the
"Closing." The Series 2009 Bonds will be delivered in book -entry -only form and registered in the
name of Cede & Co.
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8. The Underwriters have entered into this Purchase Contract in reliance upon the
representations, warranties, covenants and agreements of the City contained herein and to be
contained in the documents and instruments to be delivered at the Closing and upon the performance
by the City of its obligations hereunder, both as of the date hereof and as of the date of Closing.
Accordingly, the obligation of the Underwriters under this Purchase Contract to purchase and pay for
the Series 2009 Bonds shall be subject to the performance by the City of such obligations at or prior
to the Closing, and the obligations hereunder of each party hereto shall be subject (i) to the
performance by the City of the obligations to be performed at or prior to Closing, (ii) to the accuracy
in all material respects of such representations, warranties, covenants and agreements as of the date
hereof and as of the date of Closing and (iii) to the following conditions:
A. At the time of the Closing, the Disclosure Agreement shall have been duly
executed and delivered by the respective parties thereto in substantially the same form as
have been previously delivered to the Underwriters on the date hereof, shall be in full force
and effect and shall not have been amended, modified or supplemented except as may have
been agreed to in writing by the Underwriters; the Purchase Contract and the Resolution shall
not have been amended, modified or supplemented, except as may have been agreed to in
writing by the Underwriters; and the Official Statement shall not have been supplemented or
amended, except in any such case as may have been agreed to in writing by the Underwriters.
B. At the time of the Closing, all required official action of the City relating to
the authorization, sale and issuance of the Series 2009 Bonds and the transactions
contemplated thereby and hereby required to be taken by the City on or prior to the date
thereof shall be in full force and effect and shall not have been amended, modified or
supplemented, except as may have been agreed to in writing by the Underwriters.
C. At the time of the Closing, the Series 2009 Bonds shall have been duly
executed and authenticated in accordance with the provisions of the Resolution.
D. At the time of the Closing, the Series 2009 Bonds will be rated "_" by
Moody's Investors Service, "_"by Standard & Poor's Ratings Group ("S&P"), and
by Fitch Ratings[, which ratings shall be based upon the issuance of the Policy].
E. At the time of the Closing, there shall not have occurred any change or any
development involving a prospective change, in the status of the condition, financial or
otherwise, or in the earnings or operations of the City, from that set forth in the Official
Statement that in the judgment of the Representative, is material and adverse and that makes
it, in the judgment of the Representative, impracticable or inadvisable to proceed with the
offer, sale or delivery of the Bonds on the terms and in the manner contemplated in the
Official Statement.
F. At or prior to the Closing, the Underwriters shall receive the following
documents, all in form reasonably acceptable to the Underwriters:
(i) The Official Statement of the City executed by the City Manager;
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bO,F-i C310�61
(ii) A copy of the Resolution, certified as of the date of the Closing by the
City Clerk as having been duly adopted by the City Commission and as being in full
force and effect and not having been amended, modified or supplemented, except as
may have been agreed to in writing by the Underwriters;
(iii) The approving opinion of Foley & Lardner LLP and Law Offices
Richard Kuper, P.A., Miami, Florida, Co -Bond Counsel, dated the date of the
Closing substantially in the form attached as Appendix E to the Official Statement
and addressed (or a separate "reliance letter" addressed) to the City and the
Underwriters;
(iv) The supplemental opinion of Foley & Lardner LLP and Law Offices
Richard Kuper, P.A., Miami, Florida, Co -Bond Counsel, dated the date of the
Closing substantially in the form of Exhibit C attached hereto;
(v) The opinion of Julie 0. Bra, Esq., City Attorney, dated the date of the
Closing, substantially in the form of Exhibit D attached hereto;
(vi) [The opinion of Counsel to Insurer, dated the date of the Closing, in
form and substance satisfactory to the Underwriters and addressed (or a separate
"reliance letter" addressed) to the City and the Underwriters with such opinion
including an opinion to the effect that (i) Insurer is duly organized and validly
existing under the laws of its state of incorporation and is qualified to do business in
the State of Florida and (ii) the Bond Insurance Policy has been duly and validly
issued by the Insurer and constitutes the legal, valid and binding obligation of the
Insurer enforceable in accordance with its terms except as limited by bankruptcy,
insolvency, moratorium and other similar laws of equitable principles affecting
creditors' rights generally;]
(vii) An opinion of KnoxSeaton, Miami, Florida, Disclosure Counsel,
addressed to the City and the Underwriters, and dated the date of Closing, to the
effect that (i) with respect to the information in the Official Statement and based
upon said firms' participation in the preparation and review of the Official Statement
as special disclosure counsel and without having undertaken to determine
independently the accuracy or completeness of the contents of the Official Statement,
nothing has come to the attention of said firm that would cause it to believe that the
Official Statement (except for the financial and statistical data contained therein and
information relating to the book -entry -only registration system [and the Policy], as to
which no opinion need be expressed) contains an untrue statement of a material fact
or omits 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;
and (ii) the Continuing Disclosure Agreement satisfies the requirements under Rule
15c2-10 for an undertaking to provide certain annual financial information and event
notices to various repositories as required by such Rule.
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(viii) an opinion of Akerman Senterfitt, Miami, Florida counsel to the
Underwriters, dated the date of the Closing, in form and substance satisfactory to the
Underwriters.
(ix) A certificate dated the date of Closing of the Mayor and City Manager
to the effect that:
(a) as of such date, except as disclosed in the Official Statement,
no litigation is pending or, to their knowledge, threatened in any court (1)
challenging the creation, organization or existence of the City, or (2) seeking
to restrain or enjoin the issuance or delivery of any of the Series 2009 Bonds,
or the collection of revenues or other moneys pledged to pay the principal of
and interest on the Series 2009 Bonds, or in any way contesting or affecting
the validity of the Series 2009 Bonds, the Resolution or the pledge of the
Limited Ad Valorem Tax and a portion of the Non -Ad Valorem Revenue of
the City, or contesting the powers of the City to issue the Series 2009 Bonds,
to adopt the Resolution, or (iii) in any way contesting or affecting the validity
of this Purchase Contract, the Disclosure Agreement or the Resolution;
provided, the Underwriters may in their sole discretion accept the opinion of
the City Attorney or Bond Counsel in lieu of the certifications required by
clauses (1), (2) and (3), in each case, acceptable in form and substance
satisfactory to the Underwriters, that in the opinion of the Underwriters, all
issues raised in any related or threatened litigation are without substance or
the contentions of any plaintiffs therein are without merit; and
(b) (1) the representations, warranties, covenants and agreements
of the City contained herein are true and correct in all material respects on
and as of the date of the Closing as if made on the date of the Closing; and (2)
no event affecting the City has occurred since the date of the Official
Statement which has not been disclosed therein and which should be
disclosed in the Official Statement for the purpose for which it is to be used
or which it is necessary to disclose therein in order to make the statements
and information therein, in light of the circumstances under which they were
made, not misleading in any material respect;
(x) [A certificate of Insurer in form and substance satisfactory to the
Underwriters verifying the statements and information relating to Insurer and the
Policy in the Official Statement. Such certificate shall state that the information
relating to the Insurer appearing under the caption "MUNICIPAL BOND
INSURANCE" in the Official Statement does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading;]
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(xi) A copy of a transcript of all proceedings relating to the authorization,
sale and issuance of the Series 2009 Bonds, including, among other documents,
copies of the Resolution and this Purchase Contract;
(xii) [A true and correct copy of the Policy issued by Insurer;]
(xiii) An executed Disclosure Agreement of the City, substantially in the
form provided therefor in Appendix G to the Official Statement and meeting the
requirements of Section (b)(5) of SEC Rule 15c2-12; and
(xiv) Such additional legal opinions, certificates instruments and other
documents as the Underwriters may reasonably request.
If the obligations of the Underwriters shall be terminated for any reason permitted by this
Purchase Contract, this Purchase Contract shall terminate and the Underwriters shall be under no
further obligation hereunder, except as set forth in Section 10 hereof.
9. The Underwriters may terminate this Purchase Contract by notifying the City of their
election to do so if, after its execution and prior to the Closing any of the following have occurred:
A. Legislation enacted by the Congress or recommended to the Congress for
passage by the President of the United States, or favorably reported for passage to either
House of the Congress by any committee of such House to which such legislation has been
referred for consideration, or a decision rendered by a court established under Article III of
the Constitution of the United States or by the Tax Court of the United States, or an order,
ruling, regulation (final, temporary or proposed) or official statement or pronouncement
issued or made:
(i) By or on behalf of the Treasury Department of the United States or the
Internal Revenue Service or other governmental agency having jurisdiction over the
subject matter, with the purpose or effect, directly or indirectly, of imposing federal
income taxation upon such revenues as would be received by the City or the Paying
Agent or upon such interest as would be received by the owners of the Series 2009
Bonds or which would have the effect of changing, directly or indirectly, the federal
income tax consequences with respect to the owners of the Series 2009 Bonds; or
(ii) By or on behalf of the Securities and Exchange Commission, or any
other governmental agency having jurisdiction of the subject matter, to the effect that
obligations of the general character of the Series 2009 Bonds, including any or all
underlying security, are not exempt from registration under the Securities Act of
1933, as amended, or that the Resolution is not exempt from qualification under the
Trust Indenture Act of 1939, as amended, the effect of which, in the judgment of the
Representative, would make it impracticable or inadvisable to proceed with the offer,
sale or delivery of the Bonds on the terms and in the manner contemplated in the
Official Statement.
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B. The occurrence of any new outbreak of hostilities or any national, or any
change in financial markets, or international calamity or crises, including a financial crises,
or any escalation of activities involving the military forces of the United States, the effect of
which, in the judgment of the Representative, would make it impracticable or inadvisable to
proceed with the offer, sale or delivery of the Series 2009 Bonds on the terms and in the
manner contemplated in the Official Statement (it being agreed to by the parties hereto that
no such hostilities, calamity or crisis was occurring as of the date hereofwhich had a material
effect upon the marketability of the Series 2009 Bonds).
C. The declaration of a general banking moratorium by federal, New York or
Florida authorities, or the general suspension of or material limitation on trading on the New
York Stock Exchange.
D. The imposition by the New York Stock Exchange or any governmental
authority of any material restrictions not now in force with respect to the Series 2009 Bonds
or obligations of the general character of the Series 2009 Bonds or securities generally, or the
material increase of any such restrictions now in force, including those relating to the
extension of credit by, or the charge to the net capital requirements of, underwriters.
E. An order, decree or injunction of any court of competent jurisdiction, or order,
ruling, regulation or official statement by the Securities and Exchange Commission, or any
other governmental agency having jurisdiction of the subject matter, issued or made to the
effect that the issuance, offering or sale of obligations of the general character of the Series
2009 Bonds or the issuance, offering or sale of the Series 2009 Bonds, including any
underlying obligations, as contemplated hereby or by the Official Statement, is or would be
in violation of the federal securities laws as amended and then in effect.
F. [The withdrawal or downgrading of the rating of any bonds supported by an
insurance policy of the Insurer.]
G. The President of the United States, the Office ofManagement and Budget, the
Department of Treasury, the Internal Revenue Service or any other governmental body,
department, agency or commission of the United States or the State of Florida shall take or
propose to take any action or implement or propose regulations, rules or legislation which, in
the reasonable judgment of the Underwriters, would make it impracticable or inadvisable to
proceed with the offer, sale or delivery of the Series 2009 Bonds on the terms and in the
manner contemplated in the Official Statement or causes the Official Statement to contain an
untrue statement of a material fact or to omit to state a material fact which is necessary in
order to make the statements therein, in light of the circumstances under which they are
made, not misleading in any material respect.
H. Any executive order shall be announced, or any legislation, ordinance, rule or
regulation shall be proposed by or introduced in, or be enacted by any governmental body,
department, agency or commission of the United States or the State of Florida or the State of
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New York, having jurisdiction over the subject matter, or a decision by any court of
competent jurisdiction within the United States or within the State of Florida or the State of
New York shall be rendered which, in the reasonable judgment of the Underwriters, would
make it impracticable or inadvisable to proceed with the offer, sale or delivery of the Series
2009 Bonds on the terms and in the manner contemplated in the Official Statement or causes
the Official Statement to be misleading in any material respect.
I. [Insurer's Commitment to insure the Series 2009 Bonds shall have been
repudiated by the Insurer or any litigation or proceeding shall be pending or threatened
questioning the validity or enforceability thereof or seeking to enjoin performance thereunder
or the Underwriters or the City shall have received notice from Insurer that it will be unable
to perform under the Policy.]
J. [An adverse ruling in the pending litigation described in the Official
Statement under the heading "LITIGATION," which materially impairs the ability of the City
to make payment on the Series 2009 Bonds.]
K. Any event occurring, or information becoming known which, in the
reasonable judgment of the Underwriters, makes untrue in any material respect any statement
or information contained in the Official Statement, or has the effect that the Official
Statement contains any untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
L. Any fact or event shall exist or have existed that, in the Representative's
judgment, requires or has required an amendment of or supplement to the Official Statement.
M. There shall have occurred, after the signing hereof, either a financial crisis or
a default with respect to the debt obligations -of the City or any agency or political
subdivision thereof or proceedings under the bankruptcy laws of the United States or the
State of Florida shall have been instituted by the City or any agency or political subdivision,
in either case the effect of which, in the reasonable judgment of the Representative, is such as
to materially and adversely affect the market price or the marketability of the Series 2009
Bonds or the ability of the Underwriters to enforce contracts of the sale of the Series 2009
Bonds.
10. The Underwriters shall be under no obligation to pay any expenses incident to the
performance of the City's obligations hereunder, including but not limited to (A) the cost of printing
and preparation for printing or other reproduction of the Preliminary Official Statement and the
Official Statement, (B) the cost of printing and preparation for printing or other reproduction or
recording or filing or publishing (or paying any tax, fee or other governmental charge with respect
thereto) of any document or instrument referred to herein, (C) the cost of preparation, printing,
execution, safekeeping, transportation and delivery to the Underwriters of the Series 2009 Bonds,
(D) the fees and disbursements of Bond Counsel, Disclosure Counsel, Counsel to the City and any
other experts or consultants retained by the City, (E) the fees and expenses of the City under the
{JA439407;2}
Resolution, (F) all fees and costs of, Moody's Investors Service, S&P and Fitch Ratings for issuing
the ratings for the Series 2009 Bonds, and (G) the cost of the premium for the Policy or any expenses
of the Insurer.
The Underwriters shall pay (i) the costs of preparation and printing of this Purchase Contract
and the Blue Sky Survey, if any; (ii) all advertising expenses in connection with the public offering
of the Series 2009 Bonds; and (iii) all other expenses incurred by them in connection with the public
offering of the Series 2009 Bonds, including the fees and disbursements of Counsel to the
Underwriters.
If this Purchase Contract shall be terminated by the Representative because of any failure or
refusal on the part of the Issuer to comply with the terms or to fulfill any of the conditions of this
Purchase Contract, or if for any reason the Issuer shall be unable to perform its obligations under this
Purchase Contract, the Issuer will reimburse the Representative for all out-of-pocket expenses
(including the fees and disbursements of their counsel) reasonably incurred by the Representative in
connection with this Purchase Contract or the offering contemplated hereunder.
11. Any notice or other communication to be given to the City under this Purchase
Contract may be given by delivering the same in writing in person or by certified or registered mail,
return receipt requested, at its address set forth above, addressed Attention: Finance Director. Any
notice or other communication to be given to the Underwriters under this Purchase Contract may be
given by delivering the same in person, or by certified or registered mail, return receipt requested, to
Merrill Lynch, Pierce Fenner & Smith Incorporated, 300 South Orange Avenue, Suite 800, Orlando,
Florida 32801, Attention: Charles E. Bristow, III. All notices or communications hereunder by any
party shall be given and served upon each other party.
12. The Issuer acknowledges that in connection with the offering of the Series 2009
Bonds: (a) the Representative has acted at arms length, is not an agent of, and owes no fiduciary
duties to, the Issuer or any other person, (b) the Representative owes the Issuer only those duties and
obligations set forth in this Purchase Contract and (c) the Representative may have interests that
differ from those of the Issuer. The Issuer waives to the full extent permitted by applicable law any
claims it may have against the Representative arising from an alleged breach of fiduciary duty in
connection with the offering of the Series 2009 Bonds.
13. This Purchase Contract shall constitute the entire agreement between the City and the
Underwriters and is made solely for the benefit of the City and the Underwriters. No other person
shall acquire or have any rights hereunder or by virtue hereof. All representations, warranties, ;
covenants and agreements of the City in this Purchase Contract shall remain operative and in full
force and effect, regardless of (a) any investigation made by or on behalf of the Underwriters, and (b)
the delivery of any payment for the Series 2009 Bonds hereunder.
14. This Purchase Contract may be amended only by an agreement in writing between the
City and the Underwriters.
{JA439407;2}
1�
2)1641 �-7- e3/c .�1'e-I
15. The validity, interpretation and performance of this Purchase Contract shall be
governed by the laws of the State of Florida.
16. This Purchase Contract may be executed in any number of counterparts, each of
which so executed and delivered shall constitute an original and all together shall constitute but one
and the same instrument.
[Signatures on following pages]
{7A439407;2 }
14
[Signature page for Underwriter Representative to Purchase Contract relating to
The City of Miami, Florida Limited Ad Valorem Tax Bonds
(Homeland Defense/Neighborhood Capital Improvement Projects), Series 2009]
Very truly yours,
MERRILL LYNCH, PIERCE FENNER &
SMITH INCORPORATED as Representative of
the Underwriters
to
Executive Director
(JA439407;2}
li
[Signature page for the City to Purchase Contract relating to
The City of Miami, Florida Limited Ad Valorem Tax Bonds
(Homeland Defense/Neighborhood Capital Improvement Projects), Series 2009]
Accepted this day of April, 2009 by and on behalf of the City of Miami, Florida, pursuant to
the provisions of the Resolution.
THE CITY OF MIAMI, FLORIDA,
a municipal corporation
ATTEST:
0
Priscilla A. Thompson, City Clerk
Approved as to Form
and Correctness:
Julie O. Bru, City Attorney
Approved as to Insurance Requirements:
LeeAnn Brehm
Risk Management Director
{JA439407;2}
16
Pedro G. Hernandez, City Manager
241�-F -7'- 0310 a`o y
7C
EXHIBIT A
CITY OF MIAMI, FLORIDA
LIMITED AD VALOREM TAX BONDS, SERIES 2009
(HOMELAND DEFENSE/NEIGHBORHOOD CAPITAL IMPROVEMENT PROJECTS)
TERMS OF SERIES 2009 BONDS
:Maturity Date Price or Initial CUSIP
(January 1) Principal Amount Interest Rate Yield Number
[* Priced to the first optional call date of January I, 20_.]
Optional Redemption
The Series 2009 Bonds maturing on and after January 1, 20_, are subject to
redemption at the option of the City on or after January 1, 20_, in whole or in part at any time, in
such manner as shall be determined by the Bond Registrar, at a redemption price equal to the
principal amount thereof, plus accrued interest to the date fixed for redemption without premium.
{JA439407;2]
A-1
Exhibt A - Project Name
Status
African Square Park renovations to existing recreation building.
Future
Antonio Maceo construction of new community center building.
Substantially
Completed
Armbrister Park Site Improvements to include courts, irrigation, and
landscaping, equipping of playground and other furnishings.
Future
Art Museum - Development at Bicentennial Park contribution to development
of cultural facilities.
Active
Athalie Range Park construction of pool improvements.
Substantially
Completed
Athalie Range Park demolish existing facilities and construction of
Football/Soccer Mini Stadium, including site amenities, lighting, walkways and
benches.
Active
Belle Meade Mini Park acquisition and installation of playground equipment.
Future
Bicentennial Park Shoreline Stabalization design and construction of a new
seawall.
Substantially
Completed
Billy Rolle Mini Park Shelter & Restroom renovations.
Future
Biscayne Park Site Improvements to include irrigation, landscaping, equipping
of playground.
Future
Blanche Park Site Improvements including but not limited to courts, irrigation,
and landscaping, equipping of playground and other furnishings.
Future
Buena Vista Park acquisition and installation of site furnishings.
Future
Buena Vista Park construction of court improvement.
Future
Calle Ocho Improvements - East of 37 Ave. street enhancements acquisition
of trash bins and furnishings.
Active
City Hall construction of structural improvements.
Active
Citywide Parks acquisition, design and installation of equipment and site
improvements to various parks throughout the city.
Active
Construction of a new Sewell Park Boat/Kayak Launch Area.
jActive
Coral Gate Park Community construction of recreation building improvements.
Active
Dinner Key Dredging for the main approach channel.
Active
Dinner Key Mooring design, engineering and surveying for additional
anchorage
Active
Dorsey Park building renovations to restrooms, lighting, air conditioning
system and maintenance.
Active
Douglas Park demolition existing recreation building and construction of new
recreation building, restrooms and conversion of existing buildings to storage.
Design Substantially
Completed
Downtown Baywalk Master Plan & Design
Future
Duarte Park building renovations and expansion.
Future
Fairlawn Storm Sewer Improvements Phase 3.
Active
Fern Isle Park Improvements consisting of, but not limited to baseball/softball
fields, sports lighting and grandstand improvements.
Substantially
Completed
Fire Station #11 demolition of old fire station and design and construction of a
new two bay fire station.
Active
Fire Station #13 - Upper East Side - Construction of two bay firestation.
jActive
Fire Station #14 construction of a new two bay fire station.
Future
Gibson Park design and construction of a multipurpose building, walkways
and remodel of a pool/bathhouse, replacement of fencing and drainage
system.
Substantially
Completed
Grapeland Heights Park site development and construction of baseball fields,
concession building and parking.
Substantially
Completed
Page 1 of 3
Exhibt A - Proiect Name
Status
Hadley Park Sports Complex construction of recreational amenities, including
fields, lighting, irrigation and pool.
Future
Henderson Park construction of a new bathroom building and storage.
Active
Historic Preservation. - Contributions to improvements to Gusman Hall
including railings, seating and lighting.
Substantially
Completed
Jose Marti Park acquisition and construction of new gymnasium and
equipment related thereto.
Substantially
Completed
Kennedy Park Renovations to Boardwalk.
Alternate Funding
Source
Kennedy Park Restroom building construction of ADA Improvements.
Future
Kennedy Park site improvements to include courts, irrigation, and landscaping,
equipping of playground and other furnishings.
Active
Kinloch Park Community Recreation building improvements.
Substantially
Completed
Kinloch Storm Sewer Improvements.
Active
Kirk Monroe Park Tennis Court Improvements.
Active
Legion Park acquisition and installation of site furnishings.
Future
Legion Park parking lot renovations.
Future
Little Haiti Park Cultural Campus design and construction of a community
center and other cultural components.
Active
Little Haiti Soccer & Recreation Center construction of soccer field and
recreation building, bleachers, sports lighting, landscape and irrigation system.
Active
Lummus Park renovation to recreation building, parking lot walkways, lighting
and irrigation system.
Active
Marine Stadium Marina Improvements - design and construction of a boat
storage rack.
Active
Marjorie Stoneman Douglas Park acquisition and installation of playground
equipment.
Future
Merrie Christmas Park site improvements.
Future'
Miamarina Emergency Pier Repairs.
Active
Miami River Greenways/Streetscape including construction of pedestrian
walkways, bike paths with streetscape and roadway improvements.
Substantially
Completed
Moore Park acquisition and installation of site furnishings.
Future
Moore Park construction and installation of irrigation, landscaping and sports
turf.
Active
Moore Park construction of improvements to existing building.
Active
Moore Park construction of outdoor court upgrades.
Substantially
Completed
Moore Park design and construction of a new daycare center.
Active
Morningside Park construction of shoreline stabilization system and kayak
launch area.
Substantially
Completed
Morningside Park Recreation building improvements and improvements to
parking lot and construction of additions to storage.
Substantially
Completed
Morningside Park Restroom Bldg construction of Improvements.
Active
Mounted Police Stables design and construction of stable facilities for
mounted patrol.
Substantially
Completed
Museum of Science - Development at Bicentennial Park contribution to
development of cultural facilities.
Active
Neighborhood Gateways installation of signage.
IFuture
Oakland Grove Park acquisition and installation of playground equipment.
Future
Orange Bowl Redevelopment - architectural, engineering and construction
services
Active
Orange Bowl redevelopment project program management services.
Substantially
Completed
Page 2 of 3
Exhibt A - Proiect Name
Status
Peacock Park Site Improvements to include courts, irrigation, and
landscaping, equipping of playground and other furnishings.
Future
Police Headquarter construction and renovation of fire suppression system.
Active
Substantially
Police Headquarter construction and renovation of restrooms.
Completed
Police Training Facility design, construction and equipping of a new police
training facility, including an emergency operations center, classrooms, offices
and shooting range.
Active
Restoration and preservation of the Black Police Precinct for use as a
Substantially
museum and community center.
Completed
Robert King High construction of soccer facilities.
Active
Robert King High New Bldg & Site Improvements construction of restroom
facilities, parking lot and irrigation system and related facilities.
Active
Roberto Clemente Park Bldg. Renovation.
Active
Shenandoah Park Improvements including renovation of recreation building,
air conditioning system, irrigation system, replacement of fencing, renovation
of pool and electrical system.
Active
Tamiami Storm Sewer Improvements.
Active
Town Park acquisition and installation of site furnishings and playground
equipment.
Future
Virginia Key Beach Park construction of a new museum building.
Active
Virrick Park construction of renovations to pool building.
Active
Wainwright Park Site Improvements to include courts, irrigation, and
landscaping, equipping of playground and other furnishings.
Future
Substantially
West End Park construction of Pool building improvements.
Completed
Williams Park Improvements consisting of renovation of recreation buildings,
benches and landscaping, irrigation and construction of improvement to pool
building with ADA modifications.
Active
Page 3 of 3