HomeMy WebLinkAboutLegislationCity of Miami
Legislation
Resolution
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 08-00773 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND TO EXECUTE A COMMITMENT
("COMMITMENT"), SUBJECT TO A DETERMINATION BY THE CITY MANAGER
THAT ANY SUCH FINAL COMMITMENT IS IN THE BEST INTEREST OF THE
CITY AND SUBJECT TO APPROVAL BY THE CITY ATTORNEY AS TO LEGAL
FORM AND CORRECTNESS, WITH WACHOVIA BANK, NATIONAL
ASSOCIATION ("WACHOVIA) FOR THE POTENTIAL FUTURE PURPOSE OF
WACHOVIA PROVIDING ITS IRREVOCABLE LETTER OF CREDIT IF THE CITY
DETERMINES TO REFUND THE OUTSTANDING NON-ADVALOREM VARIABLE
RATE REFUNDING REVENUE BONDS TAXABLE PENSION SERIES 2006 (THE
"BONDS")
WHEREAS, the City of Miami ("City") has previously issued its $30,615,000 aggregate principal
amount of Non -Ad Valorem Variable Rate Refunding Revenue Bonds. Taxable Pension, Series 2006
("Bonds"), the outstanding principal amount of which is currently $29,010,000; and
WHEREAS, the Bonds were issued as variable rate debt, secured by a liquidity facility issued by
Wachovia Bank, National Association ("Wachovia") and insured by MBIA Insurance Corporation
("MBIA"); and
WHEREAS, due to the current financial market, MBIA has been downgraded in its credit rating and
accordingly, certain of the outstanding Bonds are not able to be remarketed and are being held by
Wachovia as the liquidity facility; and
WHEREAS, the City is considering refinancing the Bonds in the future to reduce the outstanding
debt and to reduce the interest rate payable by the City; and
WHEREAS, the City will return to the City Commission in the future for approval to refinance the
Bonds and to approve the financial structures involved, including any final form of an irrevocable letter
of credit as a liquidity facility that would be issued by Wachovia pursuant to a Commitment
("Commitment"); and
WHEREAS, the City estimates that pursuant to the Commitment, fees and costs of the future
Wachovia liquidity facility would be approximately $550,000, which would be financed as a future cost
of issuance of refinancing the Bonds; and
WHEREAS, the City desires to authorize the City Manager to negotiate and to execute a
Commitment by July 15th with Wachovia in order to secure a better interest rate for the future
refinancing of the Bonds, subject to a determination by the City Manager that any final Commitment is
in the best interest of the City and subject to approval by the City Attorney as to legal form and
correctness;
City of Miami Page 1 of 2 Printed On: 7/1/2008
File Number: 08-00773
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted
by reference and incorporated as if fully set forth in this Section.
Section 2. The City Manager is authorized{1 } to negotiate and to execute a Commitment,
subject to a determination by the City Manager that any such final Commitment is in the best interest
of the City and subject to approval by the City Attorney as to legal form and correctness, with
Wachovia Bank for the potential future purpose of Wachovia providing its irrevocable letter of credit if
the City determines to refund the outstanding Bonds.
Section 3. This Resolution shall become effective immediately upon its adoption and signature
of the Mayor.{2}
APPROVED AS TO FORM AND CORRECTNESS:
JULIE O. BRU
CITY ATTORNEY
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be
imposed by the City Attorney, including but not limited to those prescribed by applicable City
Charter and Code provisions.
{2} 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
City of Miami Page 2 of 2 Printed On: 7/1/2008