HomeMy WebLinkAboutSubmittal-E-mail-Lynn WestallL� LTi -. P oc.k E_T
Westall, Lynn I TE -M
From: Westall, Lynn
Sent: Wednesday, July 07, 2010 6:34 PM
To: Sarnoff, Marc (Commissioner); Carollo, Frank (Commissioner); Suarez, Francis (Commissioner); Gort, Wifredo
(Commissioner); Dunn II, Richard P. (Commissioner District 5)
Cc: Regalado, Tomas (Mayor); Thompson, Priscilla; Bru, Julie; Spring, Larry; Crapp Jr., Tony; Nelson, Ron; Perez Almeida,
Judith; Llorente, Mike; Lago, Carlos; Castaneda, Frank; Diaz, Placido; Alexander, Koteles; Mayor, Patricia; Gomez, Diana;
Dziedzic, Mirtha; Chircut, Pete; Binns II, Basil; Gallastegui, Elvi; Gomez, Marta
Subject: July 8 - Pocket Item - Marlins Bond
Attachments: (2010.07.07) Miami - Marlins Parking s2010AB (Uninsured).pdf; July 8 - Pocket Item - Marlins Bond.doc; Exhibit 2 - Marlins
Bond.pdf; Exhibit 3 - Marlins Bond.pdf; Exhibit 4 - Marlins Bond.pdf; Exhibit 1 - Marlins Bond.pdf
Honorable City Commission,
Back in October of 2009 when the City Commissioner authorized the sale of bonds to finance the construction of the
Marlins Garage, the resolution established interest rate parameters that limited the rate at which the City could sale the
bonds. The tax exempt bond limitation was set at 6.50% and the taxable bond limitation was set at 8.50%. Recent
conditions in the municipal bond markets indicate that taxable bond issues are pricing at just over 8.50% and tax
exempt bond issues are pricing just under 6.00%. As a result, the Administration needs to present the attached pocket
item authorizing an increase to the previously established interest rate parameters by 100 basis points to 7.50% for tax
exempt bonds and 9.50% for the taxable bonds. While we do not anticipate the pricing for the City's bond issuance to
rise to these levels, the flexibility is necessary in order to meet our goal of selling the bonds on July 21,2010. Attached is
a copy of the resolution as well as exhibits that show the City's tax exempt (Exhibit 1) and taxable bonds (Exhibit 2)
issuance numbers based on rates as of July 7, 2010.
Additionally, the City was able to obtain bond insurance with a surety guarantee, that will have the effect of having the
City's bond issuance be AAA rated as opposed to BBB+ rated and will reduce the required amount of cash debt service
reserve, the City will be required to hold from $10.8 million to $5.1 million. This will save the City approximately $15.5
million in "total interest" cost over the life of the bond. We have provided a summary of the bond statistics without
insurance and the surety (Exhibit 3) and a summary of the bond statistics with the insurance and surety (Exhibit 4).
I will be prepared to address this item in more detail at tomorrow's City Commission meeting.
u 0ITTED IN
BLIC RECORD F01 k
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A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA,
AMENDING RESOLUTION NO. R-09-0509 ADOPTED ON OCTOBER 22, 2009, AS
AMENDED, REGARDING THE ISSUANCE OF NOT TO EXCEED $120,000,000 IN
AGGREGATE PRINCIPAL AMOUNT OF CITY OF MIAMI, FLORIDA SPECIAL
OBLIGATION PARKING REVENUE BONDS, SERIES 2010 (MARLINS STADIUM
PROJECT) (THE "BONDS") TO AMEND THE DELEGATION PARAMETERS FOR THE SALE
AND ISSUANCE OF THE BONDS; MAKING CERTAIN FINDINGS AND DETERMINATIONS;
AUTHORIZING ALL REQUIRED ACTIONS BY THE CITY MANAGER, THE CITY ATTORNEY,
AND ALL OTHER NECESSARY CITY OFFICIALS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on October 22, 2009, the City of Miami, Florida (the "City") adopted
Resolution No. R-09-0509, as amended and supplemented (the "Original Resolution")
authorizing the issuance of not to exceed $120,000,000 City of Miami, Florida Special
Obligation Parking Revenue Bonds, Series 2010 (the "Bonds") to finance, among other things,
the City's portion of the construction of the parking facilities for the new Florida Marlins Baseball
Stadium and the cost of issuance associated therewith;
WHEREAS, due to the timing of the marketing and sale of the Bonds, the City desires to
amend the delegation parameters to increase the not to exceed true interest costs; and
WHEREAS, it is in the best interest of the City to make such changes given the current
market conditions.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
SECTION 1. Recitals and Findings. The recitals and findings contained in the
Preamble of this Resolution are adopted by reference and incorporated as if fully set forth in this
Section.
SECTION 2. Authority. This Resolution is adopted pursuant to the Constitution of the
State of Florida (the "State"); Chapter 166, Florida Statutes as amended, Part VII of Chapter
159, Florida Statutes, as amended, the City Charter of the City of Miami, Florida; the Original
Resolution; and other applicable provisions of law (collectively, the "Act").
SECTION 3. Amendment to the Original Resolution.
A. Section 5.13 of the Original Resolution is hereby amended and restated as
follows:
-1
3 O SECTION 5.13. Delegated Awards; Authorization and Approval of
�n Bond Purchase Agreement. Subject to full satisfaction of the conditions set
Q. forth in this Section, the City Commission of the City hereby authorizes a
delegated negotiated sale of the Series 2010 Bonds to the Underwriters in
y, C accordance with the terms of the Bond Purchase Agreement in accordance with
C2 the provisions of this Section (including, without limitation, making the final
--1 determination concerning the structuring and marketing of the Series 2010 Bonds
`< 3 ` to obtain the most favorable rating and interest rate on the Series 2010 Bonds),
' _ . and the execution and delivery of the Bond Purchase Agreement shall be
RL O �.
{ 25221 /007/00449404. DOCv3l
232746
deemed conclusive evidence of the full and complete satisfaction of the
conditions set forth in this Section.
Notwithstanding the foregoing, prior to execution of the Bond Purchase
Agreement all of the following conditions shall have been satisfied:
1. Receipt by the City Manager of a written offer to purchase the
Series 2010 Bonds by the Underwriters substantially in the form of the Bond
Purchase Agreement, said offer to provide for, among other things:
(a) the issuance of not exceeding $120,000,000 aggregate principal
amount of Series 2010 Bonds;
(b) (i) a purchase price of not less than ninety-nine percent (99%)
(inclusive of underwriters' discount, but not inclusive of original issue discount
and original issue premium; the original issue discount and original issue
premium may be such as is necessary to market and sell the Series 2010 Bonds)
of the original principal amount of the each series of Series 2010 Bonds and(ii)
the underwriters' discount shall not exceed 1% of the par amount of the Series
2010 Bonds;
(c) with respect to the Series 2010A Bonds (i) a true interest cost of
not more than 6-50 7.50% per annum and (ii) the final maturity of the Series
2010A Bonds being no later than July 1, 2040; and
(d) with respect to the Series 2010B Bonds (i) a true interest cost of
not more than 8-50 9.50% per annum and (ii) the final maturity of the Series
2010B Bonds being no later than July 1, 2040.
2. The Series 2010 Bonds shall be subject to such optional and
mandatory redemption provisions as provided in the Bond Purchase Agreement;
provided that the optional redemption premium shall not exceed 102%.
The City Manager, in consultation with the Finance Director, Bond
Counsel, and the Financial Advisor, is authorized to determine such redemption
provisions as are most advantageous to the sale of the Series 2010 Bonds, all as
provided in the Bond Purchase Agreement.
3. Receipt by the City Manager from the Underwriters of a disclosure
ro m C statement and truth -in -bonding information complying with Section 218.385,
Florida Statutes and substantially in the form attached to the Bond Purchase
a: Agreement.
n cep Upon satisfaction of the conditions set forth in this Section, the City
Commission hereby authorizes and directs the City Manager to determine the
D final provisions of the Bond Purchase Agreement, within the parameters for the
0 Series 2010 Bonds set forth above in this Section 5.13. The execution and
0? J delivery of the Bond Purchase Agreement is hereby authorized and approved
.�` 0 p� •p and the City Manager is hereby authorized to execute and the Clerk is hereby
(� 3 authorized to attest to, seal and deliver the Bond Purchase Agreement in
substantially the form approved at this meeting and attached hereto as Exhibit
"A", subject to such changes, insertions and omissions and such filling in of
)25221/007/00449404.DOCv3) 2
blanks therein as hereafter may be approved and made by the City Manager
upon the advice of the City's Financial Advisor, the City Attorney and Bond
Counsel. The execution, attestation and delivery of the Bond Purchase
Agreement, as described herein, shall be conclusive evidence of the City's
approval of any such determinations, changes, insertions, omissions or filling in
of blanks.
SECTION 4. Severability. If any one or more of the covenants, agreements or
provisions of this Resolution should be held contrary to any express provision of law or contrary
to any express provision of law or contrary to the policy of express law, though not expressly
prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such
covenants, agreements or provisions shall be null and void and shall be deemed severed from
the remaining covenants, agreements or provisions of this Resolution.
SECTION 5. Repeal of Inconsistent Resolution. All resolutions or parts thereof in
conflict herewith are to the extent of such conflict superseded and repealed.
SECTION 6. Effective Date. This Resolution shall be effective immediately upon its
adoption and signature by the Mayor.')
APPROVED AS TO FORM AND CORRECTNESS
JULIE O. BRU
CITY ATTORNEY
(1) If the Mayor does not sign this Resolution, it shall become effective at the end of ten
calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it
shall become effective immediately upon override of the veto by the City Commission.
SUBMITTED INTO THE
PUBLIC RECORD FOR
ITEMnq.i ON-i-ag-io .
(25221/007/00449404.DOCv3l 3
BOND SUMMARY STATISTICS
City of Miami, Florida
Tax -Exempt Special Obligation Parking Revenue Bonds, Series 2010A
Dated Date
07/29/2010
Delivery Date
07/29/2010
First Coupon
01/0112011
Last Maturity
07/01/2039
Arbitrage Yield
5.954720%
True Interest Cost (TIC)
5.967021%
Net Interest Cost (NIC)
5.650119%
All -In TIC
6.030298%
Average Coupon
5.539178%
Average Life (years)
23.971
Duration oflssue (years)
12.797
Paz Amount
86,690,000.00
Bond Proceeds
84,944,970.40
Total Interest
115,107,019.67
Net Interest
117,412,435.75
Total Debt Service
201,797,019.67
Maximum Annual Debt Service
11,526,437.50
Average Annual Debt Service
6,977,230.80
Underwriter's Fees (per $1000)
Average Takedown
6.051520
Other Fee
0.412738
Total Underwriters Discount
6.464257
Bid Price
97.340621
Par
Average
Average
PV of 1 by
Bond Component Value
Price Coupon
Life Duration
change
Term Bond due in 2030 (Tax -Exempt Series 2010A) 13,765,000.00
98.851 5.375%
18.843 12.019
16,518.00
Term Bond due in 2035 (Tax -Exempt Series 2010A) 39,400,000.00
97.350 5.500%
23.046 13.177
50,826.00
Term Bond due in 2039 (Tax -Exempt Series 201OA) 33,525,000.00
98.381 5.625%
27.164 14.115
46,599.75
86,690,000.00
23.971
113,943.75
All -In
Arbitrage
TIC
TIC
Yield
Par Value 86,690,000.00
86,690,000.00
86,690,000.00
+ Accrued Interest
+ Premium (Discount) (1,745,029.60)
(1,745,029.60)
(1,745,029.60)
Underwriter's Discount (560,386.48)
(560,386.48)
Cost of Issuance Expense
(530,693:07)
Other Amounts (2,421,564.24)
(2,550,492.15)
(2,421,56424)
Target Value 81,963,019.68
81,303,398.70
82,523,406.16
Target Date 07/29/2010
07/29/2010
07/29/2010
Yield 5.967021%
6.030298%
5.954720%
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Jul?, 2010 3:18 pm Prepared by FirstSouthwest (Finance 6.017 Miami:2010AB_1) Page l l
BOND SUMMARY STATISTICS
City of Miami, Florida
Taxable Special Obligation Parking Revenue Bonds, Series 2010B
Dated Date
07/29/2010
Delivery Date
07/29/2010
First Coupon
01/01/2011
Last Maturity
0 710 1 /2027
Arbitrage Yield
5.954720%
True Interest Cost (TIC)
8.542971%
Net Interest Cost (NIC)
8.190158%
All -In TIC
8.642009%
Average Coupon
8.132778%
Average Life (years)
13.7.90
Duration of Issue (years)
8.121
Par Amount
16,940,000.00
Bond Proceeds
16,940,000.00
Total Interest
18,998,368.28
Net Interest
19,132,410.05
Total Debt Service
35,938,368.28
Maximum Annual Debt Service
3,754,332.00
Average Annual Debt Service
2,123,738.11
Underwriter's Fees (per $1000)
Average Takedown
7.500000
Other Fee
0.412737
Total Underwriter's Discount 7.912737
Bid Price 99.208726
Par Value
+ Accrued Interest
+Premium (Discount)
Underwriter's Discount
Cost of Issuance Expense
Other Amounts
Target Value
Target Date
Yield
All -In Arbitrage
TIC TIC Yield
16,940,000.00
(134,041.77)
(431,260.42)
16,374,697.81
07!29/2010
8.542971%
16,940,000.00
(134,041.77)
Par
Average
Average
PV of 1 by
Bond Component
Value
Price Coupon
Life Duration
change
Term Bond due in 2020 (Taxable Series 2010B)
1,810,000.00
100.000 7.280%
8.116 6.227
1,267.00
Terre Bond due in 2027 (Taxable Series 2010B)
15,130,000.00
100.000 8.190%
14.469 8.677
13,768.30
16,940,000.00
13.790
15,035.30
Par Value
+ Accrued Interest
+Premium (Discount)
Underwriter's Discount
Cost of Issuance Expense
Other Amounts
Target Value
Target Date
Yield
All -In Arbitrage
TIC TIC Yield
16,940,000.00
(134,041.77)
(431,260.42)
16,374,697.81
07!29/2010
8.542971%
16,940,000.00
(134,041.77)
(103,702.18)
(456,454.09)
(431,260.42)
16,245,801.96
(431,260.42)
07/29/2010
07/29/2010
8.642009%
5.954720%
Submitted Into the public
record in connection with
item 0Q.1 on I- N-1°0
Priscilla A. Thompson
City Clerk
Jul 7, 2010 .3:18 pm Prepared by FirstSouthwest (Finance 6.017 Miami:2010AB_I) Page 17
Ey,',4 -3
BOND SUMMARY STATISTICS
City of Miami, Florida
Special Obli.-afion Parking Revenue Bonds, Series 2010A&B
Uninsured Market Rates as of 7/7/2010
(100% Cash Funded DSRF)
Prelitninary/Subject to Change
Dated Date 07/29/2010
Delivery Date 07/29/2010
First Coupon 01/01/2011
Last Maturity 07/01/2039
Arbitrage Yield 6.065852%
True Interest Cost (TIC) 6.470903%
Net Interest Cost (NIC) 6.337767%
All -In TIC 6.524310%
Average Coupon 6368495%
Average Life (years) 22.462
Duration of Issue (years) 11.882
Par Amount 106,255,000.00
Bond Proceeds 105,344,265.05
Total Interest 149,654,563.84
Net Interest 151,308,382.64
Total Debt Service 255,939,563.84
Maximum Annual Debt Service 12,149,000.00
Average Annual Debt Service 8,849,235.78
Underwriter's Fees (per $1000)
Average Takedown 6.303218
Other Fee 0.405950
Total Underwriter's Discount 6.709167
Bid Price 93.443977
Bond Component
Par
Value
Price
Average
Coupon
Average
Life
Duration
PV of 1 by
change
Term Bond due in 2020 (Taxable Series 2010B)
1,560,000.00
100.000
7.850%
8.134
6.120
1,060.80
Term Bond due in 2028 (Taxable Series 2010B)
15,900,000.00
100.000
8.780%
14.665
8.462
14,151.00
Term Bond due in 2030 (Tax -Exempt Series 2010A)
12,935,000.00
98.895
5.575%
18.981
11.632
14,745.90
Term Bond due in 2035 (Tax -Exempt Series 2010A)
40,460,000.00
99.100
6.000%
23.055
12.709
50,979.60
Term Bond due in 2039 (Tax -Exempt Series 2010A)
35,430,000.00
98.776
6.000%
27.187
13.635
47,121.90
- Other Amounts
Target Value
Target Date
Yield
104,631,181.20
106,285,000.00
87,854,265.05
22.462 128,059.20
07/29/2010
07/290-010
6.470903%
L
6.068852%
All -In
Arbitrage
TIC
TIC
Yield
Par Value
•106,285,000.00
106,285,000.00
88,825,000,00
+ Accrued Interest
+ Premium (Discount)
(940,734.95)
(940,734.95)
(940,734.95)
Underwriters Discount
(713,083.85)
(713,083.85)
Cost of Issuance Expense
(640,169.88)
- Other Amounts
Target Value
Target Date
Yield
104,631,181.20
103,991,011.32
87,854,265.05
07/29/2010
07/29/2010
07/290-010
6.470903%
6.524310%
6.068852%
Submitted Into the public
record in connection with
item n A ( on 7=
Priscilla A. Thompson
City Clerk
Jul 7, 2010 5:17 pm Prepared by FirstSouthwest (Finance 6.017 Miami:20I0AB_I) Page 2
BOND SUMMARY STATISTICS
Arbitrage Yield
City of Miami, Florida
Special Obligation Parking Revenue Bonds, Series 2010A&B
6.297109%
AGM Insured Market Rates as of 7/7/2010
5.906801%
(50% Cash/ 50% Surety Funded DSRF)
6.365717%
Preliminary/Subject to Change
Dated Date
07/29/2010
Delivery Date
07/29/2010
First Coupon
01/01/2011
Last Maturity
07/01/2039
Arbitrage Yield
5.954720%
True Interest Cost (TIC)
6.297109%
Net Interest Cost (NIC)
5.906801%
All -In TIC
6.365717%
Average Coupon
5.801272%
Average Life (years)
22.307
Duration of Issue (years)
11.786
Par Amount
103,630,000.00
Bond Proceeds
101,884,970.40
Total Interest
134,105,387.95
Net Interest
Term Bond due in 2027 (Taxable Series 2010B)
Total Debt Service
237,735,387.95
Maximum Annual Debt Service
11,526,437.50
Average Annual Debt Service
8219,817.49
Underwriter's Fees (per $1000)
13,765,000.00
Average Takedown
6.288297
Other Fee
0.412738
Total Underwriter's Discount 6.701035
Bid Price 97.645993
Jul 7, 2010 3:18 pm Prepared by FirstSouthwest (Finance 6.017 Miami:2010AB_I) Page 2
Par
All -In
Average
Average
TIC
PV of 1 by
Bond Component
Value
Price
Coupon
Life
Duration
change
Term Bond due in 2020 (Taxable Series 2010B)
1,810,000.00
100.000
7280%
8.116
6,227
1,267.00
Term Bond due in 2027 (Taxable Series 2010B)
15,130,000.00
100.000
8.190%
14.469
8.677
13,768.30
Term Bond due in 2030 (Tax -Exempt Series 2010A)
13,765,000.00
98.851
5.375%
18.843
12.019
16,518.00
Term Bond due in 2035 (Tax -Exempt Series 2010A)
39,400,000.00
97.350
5.500%
23.046
13.177
50,826.00
Term Bond due in 2039 (Tax -Exempt Series 2010A)
33,525,000.00
98.381
5.625%
27.164
14.115
46,599.75
103,630,000.00
22.307
128,979.05
Jul 7, 2010 3:18 pm Prepared by FirstSouthwest (Finance 6.017 Miami:2010AB_I) Page 2
All -In
Arbitrage
TIC
TIC
Yield
ParValue
103,630,000.00
103,630,000.00
86,690,000.00
+ Accrued Interest
+ Premium (Discount)
(1,745,029.60)
(1,745,029.60)
(1,745,029.60)
Underwriter's Discount
(694,428.25)
(694,428.25)
Cost of Issuance Expense
(634,395.25)
Other Amounts
(2,852,824.66)
(3,006;946.24)
(2,852,824.66)
Target Value
98,337,717.49
97,549,200,66
82,092,145.74
Target Date
07/29/2010
07/29/2010
07/29/2010
Yield
6.297109%
6.365717%
5.954720%
Jul 7, 2010 3:18 pm Prepared by FirstSouthwest (Finance 6.017 Miami:2010AB_I) Page 2