HomeMy WebLinkAboutSubstitution Memo from City ManagerCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members of DATE: June 3, 2021
City Commission
FROM: Arthur Noriega V
City Manager
SUBJECT: Substitution of Item PH.1- City of Miami,
Florida Tax -Exempt Special Obligation
Revenue Bond, Series 2021 (FP&L
Undergrounding Project)
REFERENCES:
ENCLO51RE5: Revised Item PH.1 City of Miami,
Florida Tax -Exempt Special Obligation
Revenue Bond, Series 2021 (FP&L
Undergrounding Project
The Finance Department respectfully requests Item PH.1- City of Miami, Florida Tax -
Exempt Special Obligation Revenue Bond, Series 2021 (FP&L Undergrounding Project)
Accela 9004 be substituted in the June 10, 2021 City Commission Meeting to reflect that
Sterling National Funding Corp. as a one hundred percent (100%) participant in the Loan
through the Lender, Sterling National Bank, under the Loan Agreement
cc: Fernando Casamayor, ACM/CFO
Victoria Mendez, City Attorney
Todd B. Hannon, City Clerk
Erica T. Paschal -Darling, Finance Director
Miriam M. Santana, Agenda Coordinator
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Substituted for PH1 on June 10, 2021
City Commission Regular Agenda
City of Miami
Legislation
Resolution:
City Hall
3500 Pan American Drive
Miami. FL 33133
www.miamigov.com
File Number: 9004 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH
ATTACHMENT(S), AUTHORIZING THE ISSUANCE OF THE NOT TO
EXCEED TWENTY SEVEN MILLION DOLLARS ($27,000,000.00) TAX
EXEMPT NON -AD VALOREM SPECIAL OBLIGATION REVENUE
BOND, SERIES 2021 (FP&L UNDERGROUNDING PROJECT) ("BOND")
FOR THE PURPOSES OF FINANCING THE CITY OF MIAMI'S ("CITY")
PORTION OF A CERTAIN CAPITAL PROJECT AND PAYING COSTS
OF ISSUANCE AND OTHER COSTS RELATED THERETO;
PROVIDING THAT THE BOND SHALL BE A LIMITED OBLIGATION OF
THE CITY PAYABLE FROM PLEDGED REVENUES, AS PROVIDED
HEREIN; PROVIDING FOR THE RIGHTS, SECURITY, AND REMEDIES
FOR THE OWNER OF THE BOND; APPROVING THE SELECTION OF
THE PROPOSAL FROM STERLING NATIONAL BANK AS THE
LENDER (-LENDER") AND AUTHORIZING THE PRIVATE
NEGOTIATED SALE OF SUCH BOND TO THE LENDER AS
BONDHOLDER ("BONDHOLDER") AND CONSENTING TO THE ONE
HUNDRED PERCENT (100°/0) PARTICIPATION BY THE LENDER'S
WHOLLY -OWNED SUBSIDIARY, STERLING NATIONAL FUNDING
CORP., A NEW YORK CORPORATION ("SNFC") IN THE LOAN
PURSUANT TO THE TERMS AND CONDITIONS DESCRIBED HEREIN
AND AS FURTHER SET FORTH IN THE LOAN AGREEMENT AND THE
BOND; AUTHORIZING THE CITY MANAGER TO DETERMINE THE
INTEREST RATE FOR THE BOND WITHIN SUCH PARAMETERS AS
SET FORTH HEREIN AND AUTHORIZING THE CITY MANAGER TO
NEGOTIATE, EXECUTE, AND DELIVER, AFTER CONSULTATION
WITH THE CHIEF FINANCIAL OFFICER, FINANCE DIRECTOR,
FINANCIAL ADVISOR, CITY CLERK, RISK MANAGEMENT DIRECTOR,
CITY ATTORNEY, AND BOND COUNSEL, A LOAN AGREEMENT, THE
BOND, AND ANY AND ALL OTHER NECESSARY DOCUMENTS,
CERTIFICATES, AND INSTRUMENTS, INCLUDING MODIFICATIONS,
EXTENSIONS, RENEWALS, AND AMENDMENTS THERETO, ALL FOR
THE CITY TO FINANCE THE CITY'S PORTION OF FUNDING FOR THE
FP&L UNDERGROUNDING PROJECT WITHIN THE DESIGNATED
CITY AREAS DESCRIBED BELOW ("PROJECT"); AUTHORIZING
OTHER REQUIRED ACTIONS BY THE CITY MANAGER, CITY CLERK,
FINANCIAL ADVISORS, CITY ATTORNEY, BOND COUNSEL, AND
ANY OTHER NECESSARY CITY OFFICIALS; RATIFYING,
APPROVING, AND CONFIRMING CERTAIN NECESSARY ACTIONS
OF THE CITY MANAGER AND DESIGNATED CITY OFFICIALS IN
ORDER TO UPDATE THE RELEVANT CAPITAL PROJECTS,
FINANCIAL CONTROLS, PROJECT CLOSE-OUTS, COMPLETED
PROJECTS, ACCOUNTING ENTRIES, AND COMPUTER SYSTEMS IN
CONNECTION WITH THE CITY FUNDING FOR THE PROJECT AND
WITH ONGOING COMPLIANCE FOR THE BOND; FURTHER
AUTHORIZING THE CITY MANAGER, CITY CLERK, FINANCIAL
ADVISOR, CITY ATTORNEY, BOND COUNSEL, AND ALL OTHER
NECESSARY CITY OFFICIALS TO UNDERTAKE AND TO PROVIDE
FOR EXECUTIONS AND DELIVERIES OF ALL NECESSARY
DOCUMENTS, DISCLOSURES, CERTIFICATIONS, AND NOTICES
FOR CONTINUING COMPLIANCE FOR THE LOAN AND THE BOND IN
ACCORDANCE WITH UNITED STATES INTERNAL REVENUE
SERVICE, THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION, THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS
AMENDED, THE CODE OF THE CITY OF MIAMI, FLORIDA, AS
AMENDED, THE INTENT TO REIMBURSE RESOLUTION, AND OTHER
FEDERAL, STATE OF FLORIDA, AND LOCAL LAWS, RULES,
REGULATIONS, AND REQUIREMENTS; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Miami ("City") entered into the New Underground
Transmission Facilities Construction Contribution Agreement dated November 2017 with
Florida Power & Light Company ("FPL") ("Construction Agreement") wherein the City
agreed to contribute the not to exceed amount of Twenty -Seven Million Dollars
($27,000,000.00) for the City's share of the shared cost to complete the Project, as
defined herein; and
WHEREAS, on July 26, 2018, the City Commission adopted Resolution No. R-
18-0334 ("Intent to Reimburse Resolution"); and
WHEREAS, the City's Financial Advisor, PFM Financial Advisors, LLC
("Financial Advisor"), issued a Request for Proposals to banking and financial institutions
for the issuance of Tax -Exempt Special Obligation Bonds for the financing of the Project
and received multiple proposals which were evaluated by the Financial Advisor for
responses consistent with the City's needs; and
WHEREAS, the proposals and recommendations by the Financial Advisor were
reviewed and recommended by the City's Administration to the City's Finance
Committee on April 28, 2021, with the proposal dated April 26, 2021 ("Proposal") from
Sterling National Bank ("Lender") being recommended by the Finance Committee as the
most responsive and responsible proposer providing the most favorable covenants to
lend to the City the funds in the not to exceed amount of Twenty -Seven Million Dollars
($27,000,000.00) necessary to finance the City's portion of funding for the Project and to
pay transactional expenses ("Loan"), which Loan shall be evidenced by the not to
exceed amount of Twenty -Seven Million Dollars ($27,000,000.00) City of Miami, Florida
Tax -Exempt Non -Ad Valorem Special Obligation Revenue Bond, Series 2021 (FP&L
Undergrounding Project) ("Bond"); and
WHEREAS, the Lender is requesting for the City to consent to the sale of a one
hundred percent (100%) participation interest in the Bond to its wholly -owned subsidiary,
Sterling National Funding Corp., a New York corporation ("SNFC"), pursuant to the
terms and conditions described herein, as set forth in the Loan Agreement, and as set
forth in the Bond; and
WHEREAS, it is hereby determined that it is in the best interests of the City for
the City Commission to ratify, approve, and confirm certain necessary actions of the City
Manager and designated City officials in order to update the relevant capital projects,
financial controls, project close-outs, completed projects, accounting entries, and
computer systems in connection with the City's portion of the funding for the Project and
for ongoing compliance for the Bond; and
WHEREAS, it is also hereby determined that it is in the best interests of the City
for the City Commission to further authorize the City Manager, City Clerk, Financial
Adviser, City Attorney, Bond Counsel, and all other necessary City officials and
departments to undertake and to provide for executions and deliveries of all necessary
documents, disclosures, certifications, and notices for continuing compliance for the
Loan and the Bond in accordance with the United States Internal Revenue Service, the
United States Securities and Exchange Commission, the Charter of the City of Miami,
Florida, as amended ("City Charter°'), the Code of the City of Miami, Florida, as amended
("City Code"), the Intent to Reimburse Resolution, and all other Federal, State of Florida
("State"), and local laws, rules, regulations, and requirements;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. Authority for this Resolution; Recitals, Findings, and Determinations.
This Resolution is adopted pursuant to the provisions of the State Constitution, State
Laws including Chapter 166, Florida Statutes, the City Charter, the City Code, the Intent
to Reimburse Resolution, other applicable City resolutions, and other applicable
provisions of taw (collectively, "Act"). The recitals, determinations, 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. Definitions. All capitalized undefined terms shall have the same meaning
as set forth in this Resolution, the Proposal, and as defined in the Loan Agreement and
the Bond. In addition to the words and terms defined in the recitals to this Resolution,
the following terms, unless the context otherwise requires, shall have the meanings
specified in this Section. Words importing the singular shall include the plural in each
case and vice versa.
"Act" shall have the meaning ascribed in Section 1.
"Bond" shall mean the not to exceed Twenty -Seven Million Dollars
($27,000,000.00) City of Miami, Florida Tax -Exempt Non -Ad Valorem. Special Obligation
Revenue Bond, Series 2021 (FP&L Undergrounding Project) authorized by this
Resolution, the form of which shall be set forth as in the Loan Agreement as Exhibit "A"
thereto.
"Bond Counsel" shall mean Bryant Miller Olive P.A., or other nationally
recognized bond counsel firm.
"Bondholder" shall mean Sterling National Bank, and its approved future
successors and assigns, if any, in accordance with the transfer requirements of the Loan
Agreement.
"Chief Financial Officer" shall mean the Chief Financial Officer of the City.
"City" shall mean City of Miami, Florida, a municipal corporation duly
organized under the laws of the State.
designee.
amended.
amended.
"City Clerk" shall mean the City Clerk of the City or the City Clerk's
"City Charter" shall mean the Charter of the City of Miami, Florida, as
"City Code" shall mean the Code of the City of Miami, Florida, as
"City Commission" shall mean the City Commission of the City of Miami,
Florida, as the governing body of the City.
"City Manager" shall mean the City Manager of the City or the City
Manager's designee.
"City Attorney" shall mean the City Attorney of the City or the City
Attorney's designee.
"Construction Agreement" shall mean the New Underground
Transmission Facilities Construction Contribution Agreement between the City and FPL
dated November 2017, attached to and incorporated by the Loan Agreement.
"Director of Risk Management' shall mean the Director of the Department
of Risk Management of the City.
"Finance Director" shall mean the Director of the Finance Department of
the City.
"Financial Advisor" shall mean PFM Financial Advisors, LLC, or any
nationally recognized municipal financial advisor.
"Interest Payment Date" shall mean each January 1 and July 1 through
the Maturity Date commencing January 1, 2022.
"Interest Rate" shall mean an annual fixed interest rate not to exceed
2.46% as set forth in the Proposal of the Lender.
"IRS Code" shall mean the Internal Revenue Code of 1986, as amended,
and all temporary, proposed, or permanent implementing regulations promulgated or
applicable thereunder.
"Lender" shall mean Sterling National Bank, as the purchaser and holder
of the Bond and as Lender under the Loan Agreement, and its successors and assigns.
"Loan Agreement" shall mean the agreement between the Lender and the
City setting forth the terms and details of the term loan from the Lender to the City,
attached and incorporated as Exhibit "B", with such modifications or changes as may be
necessary or desirable, such approval to be presumed by the execution and delivery
thereof by the authorized representatives of the City to the Lender.
"Maturity Date" shall mean January 1, 2041.
"Non -Ad Valorem Revenues" shall mean all revenues of the City derived
from any source whatsoever other than revenues derived from ad valorem taxes
imposed on real or personal property, only to the extent that such revenues are legally
available to pay the principal of and interest on the Bond.
"Owner" shall mean the Person in whose name the Bond shall be
registered on the books of the City kept for that purpose in accordance with provisions of
this Resolution. The original Owner of the Bond shall be the Lender.
"Paying Agent" shall mean the Finance Director.
"Person" shall mean natural persons, firms, trusts, estates, associations,
corporations, partnerships, and public bodies.
"Pledged Revenues" shall mean Non -Ad Valorem Revenues deposited
into the Revenue Fund by the City pursuant to a covenant to budget and appropriate
established by the Loan Agreement and income received from the investment of moneys
deposited into the funds and accounts established by the Loan Agreement.
"Principal Amount" shall mean Twenty -Seven Million Dollars
($27,000,000.00).
"Principal Payment Date" shall mean each January 1 through the Maturity
Date commencing January 1, 2022.
"Project" shall mean the construction and installation of 138 kilovolt
Transmission Facilities underground on the route within the City to connect Florida
Power & Light Company's ('FPL") Coconut Grove substation to an existing 138 kilovolt
underground transmission line between FPL's Miami substation and FPL's Key Biscayne
substation pursuant to and as described in the New Underground Transmission Facilities
Construction Contribution Agreement between the City and FPL dated November 2017.
"Proposal" shall mean the proposal dated April 26, 2021, attached and
incorporated as Exhibit "A", from Sterling National Bank as the Lender.
"Register" shall mean the books maintained by the Registrar in which are
recorded the name and address of the Registered Owner of the Bond.
"Registered Owner" shall mean the Person in whose name the ownership of
the Bond is registered on the books maintained by the Registrar. The initial Registered
Owner shall be the Lender or its successors and assigns.
"Registrar" shall mean the Finance Director.
"Resolution" shall mean this Resolution as from time to time amended or
supplemented in accordance with the terms hereof.
"SNFC" shall mean Sterling National Funding Corp., a New York
corporation and wholly -owned subsidiary of the Lender, and the one hundred percent
(100%) participant in the Loan through the Lender under the Loan Agreement.
"State" shall mean the State of Florida.
Section 3. Additional Findings, Determinations, and Declarations.
(A) For the benefit of its residents, the City Commission finds,
determines, and declares that it is necessary for the continued preservation of the
welfare and convenience of the City and its residents to finance the City's portion of the
funding of the Project pursuant to the Construction Agreement. Issuance of the Bond to
finance the City's portion of funding for the Project pursuant to the Construction
Agreement satisfies a public purpose.
(B) It is in the best interest of the health, safety, and welfare of the
City and the inhabitants thereof that the City pledge the Pledged Revenues to secure the
obligations of the City to repay the principal of and interest on the Bond and all other
amounts payable thereunder when due.
(C) The Pledged Revenues are not now pledged or encumbered in
any manner. The Bond shall be secured by and payable from a lien on and pledge of
the Pledged Revenues, as provided herein and in the Loan Agreement.
(D) The City shall never be required to levy ad valorem taxes or use
the proceeds thereof to pay debt service on the Bond or to make any other payments to
be made hereunder. The Bond shall not constitute a lien on any property owned by or
situated within the limits of the City.
(E) The estimated Pledged Revenues for the payment thereof will be
sufficient to pay all principal of and interest on the Bond to be issued hereunder, as the
same become due, and to make all required reserve or other payments required by the
Loan Agreement.
(F) The City has received an offer from the Lender ("Offer") in the
Lender's Proposal to provide a term loan to the City and to acquire the Bond in
connection therewith.
(G) In consideration of the term loan, acquisition, and acceptance of
the Bond authorized to be issued hereunder by those who shall be the Owner thereof
from time to time, this Resolution shall constitute a contract between the City and the
Lender or any subsequent Owner.
Section 4. Authorization of Bond and the City's Portion of Funding for the
Project; Description of the Bond; Registration of the Bond. Subject and pursuant to the
provisions of this Resolution, an obligation of the City to be known as the "City of Miami,
Florida Tax -Exempt Non -Ad Valorem Special Obligation Revenue Bond, Series 2021
(FP&L I.Jndergrounding Project) is hereby authorized to be issued under and secured by
this Resolution in the principal amount not to exceed Twenty -Seven Million Dollars
($27,000,000.00) for the purposes of financing the City's portion of funding for the
Project and paying the costs of issuing the Bond and other necessary related costs. The
City's undertakings to provide its portion of funding for the Project has been previously
acknowledged in the Intent to Reimburse Resolution and in the Construction Agreement
and are reaffirmed and authorized by this Resolution.
The Bond shall be dated as of the date of its delivery to the Bondholder on behalf
of the Lender and shall mature on the Maturity Date, as to be provided in the Bond and
the Loan Agreement. The Bond shall be payable to the Lender and shall bear interest at
the fixed annual Interest Rate, calculated on the basis of a 360-day year consisting of
twelve (12) 30-day months. Interest will be paid annually on each Interest Payment Date
with the first interest payment due on January 1, 2022. Principal will be paid annually on
January 1 each year as the Principal Payment Date, with the first principal payment
payable on January 1, 2022. On each Principal Payment Date, the City shall pay an
annual installment of the outstanding principal due on the Bond in an amount specified
in Schedule 1 attached to the Bond. The stated Maturity Date shall be January 1, 2041;
provided, however, that the Bond and the Loan Agreement shall also provide for
prepayments in accordance with the Proposal. Additionally, the Loan Agreement and the
Bond shall set forth provisions for redemption, including partial redemption.
Because of the characteristics of the Bond, prevailing market conditions, and
additional savings to be realized from an expeditious sale of the Bond, it is in the best
interests of the City to accept the Offer of the Lender and the Lender's Proposal to
acquire the Bond at a private negotiated sale to evidence its term loan to the City, with
the Lender as Bondholder, and also to approve and consent to the one hundred percent
(100%) participation of SNFC in the loan with the Lender . Prior to the issuance of the
Bond, the City shall receive (a) from the Lender, the Lender's and Bondholder's
Certificate, in substantially the attached form as Exhibit "C", and a Disclosure Letter
containing the information required by Section 218.385, Florida Statutes, in substantially
the attached form as Exhibit "D", and (b) from SNFC, such certificate(s) each in a form
acceptable to the City Attorney and Bond Counsel in order to evidence the participation
thereby.
The Finance Director is hereby authorized' to be the Registrar and the Paying
Agent for the Bond and to maintain the Register for the Bond. The Bond may be
exchanged at the office of the Registrar for a like aggregate principal amount of Bond of
the same series and maturity as provided in the Loan Agreement. Notwithstanding the
foregoing or any provision of this Resolution to the contrary, transfer of the Bond is
restricted as provided in the Loan Agreement and in the Bond itself.
On the date of the issuance of the Bond, the City shall receive an amount equal
to the par amount of the Bond from the Lender as the purchase price of the Bond. The
Bond shall be payable in any legal coin or currency of the United States of America
which on the respective dates of the Interest Payment Date and the Principal Payment
Date is legal tender for the payment of public and private debts.
The Bond is hereby authorized to be issued to Sterling National Bank as
Bondholder and Lender pursuant to the terms and conditions hereof, of the Loan
Agreement, and as set forth in the Bond.
The City hereby consents to the one hundred percent (100%) participation by
SNFC, as a solely -owned subsidiary of the Lender pursuant to the terms and conditions
of the Loan Agreement -
Section 5. Form of Bond; Approval of the Loan Agreement and Bond; Execution
of the Bond; Bond Mutilated, Destroyed, Stolen, or Lost. The Bond shall be in
substantially the form attached as Exhibit "A" to the Loan Agreement, with only such
omissions, insertions, and variations as may be necessary and desirable and permitted
by this Resolution or by any subsequent ordinance or resolution adopted prior to the
issuance thereof.
The Loan Agreement and the Bond, attached and incorporated attached and
incorporated as Exhibit "B", are approved, both subject to and pursuant to the provisions
hereof. In anticipation of the sale and delivery of the Bond, the City Manager, in
consultation with the City Attorney, Bond Counsel, Financial Advisor, and any other
necessary City officials, is authorizedl to negotiate, to execute, and to deliver, in a form
acceptable to the City Attorney and Bond Counsel, the Loan Agreement and the Bond
with the Lender with respect to the Bond, and is further authorized) to negotiate, to
execute, and to deliver, in a form acceptable to the City Attorney and Bond Counsel, all
other necessary documents, agreements, and instruments. The City Manager, after
consultation with the City Attorney, Bond Counsel, the Financial Advisor, and any other
necessary City officials is further authorizedl to negotiate, execute, and deliver, in a
form acceptable to the City Attorney and Bond Counsel, any changes, modifications,
supplements, and amendments to the Loan Agreement, the Bond, and any and all other
agreements, documents, and instruments as should be deemed necessary or desirable
and to take such other actions as shall be necessary to implement the terms and
conditions of the Loan Agreement and the Bond. Additionally, in accordance with the
City Charter and City Code, the City Manager, City Clerk, City Attorney and any other
necessary City officials are hereby authorizedl to execute and deliver all necessary
documents, certificates, notices, or other items required under this Resolution. The
provisions of such documents as so negotiated, executed, and delivered, all in forms
acceptable to the City Attorney and Bond Counsel, are hereby incorporated into and
made a part of this Resolution.
The Bond shall be executed in the name of the City by the City Manager and the
seal of the City shall be imprinted, reproduced, or lithographed on the Bond and attested
to and countersigned by the City Clerk. In addition, the City Attorney shall sign the Bond
and the Loan Agreement showing approval of the legal form and correctness thereof and
the Director of Risk Management shall sign the Bond and the Loan Agreements showing
approval as to the City's insurance requirements. The signatures of the City Manager,
the City Clerk, the Risk Management Director, and the City Attorney on the Bond may be
by facsimile. If any officer whose signature appears on the Bond ceases to hold office
before the delivery of the Bond, his or her signature shall nevertheless be valid and
sufficient for all purposes. In addition, any Bond may bear the signature of, or may be
signed by, such persons as at the actual time of execution of such Bond shall be the
proper designated officers to sign such Bond, although at the date of such Bond or the
date of delivery thereof such persons may not have been such officers. Any Bond
delivered shall be authenticated by the manual signature of the Finance Director as the
Registrar and the registered owner of any Bond so authenticated shall be entitled to the
benefits of this Resolution.
If the Bond is mutilated, destroyed, stolen, or lost, the City or its agent may, in its
discretion, deliver a duplicate replacement Bond or pay a Bond that has matured, is
about to mature, or has been called for prepayment. A mutilated Bond shall be
surrendered to and cancelled by the Registrar. The holder of any Bond must furnish the
City or its agent proof of ownership of any destroyed, stolen, or lost Bond; post
satisfactory indemnity; comply with any reasonable conditions the City or its agent may
prescribe; and pay the reasonable expenses of the City or its agent.
Any such duplicate Bond shall constitute an original contractual obligation on the
part of the City whether or not the destroyed, stolen, or lost Bond be at any time found
by anyone and such duplicate Bond shall be entitled to equal and proportionate benefits
and rights as to lien on and source of payment of and security for payment from the
funds pledged to the payment of the Bond so mutilated, destroyed, stolen, or lost.
Section 6. Application of Proceeds of Bond. The proceeds, including accrued
interest and premium, if any, received from the issuance of any or all of the Bond shall
be applied by the City simultaneously with the delivery of the Bond to the Lender, as
follows:
(A) A sum equal to the City's portion of the cost of the Project shall be
deposited into the Bond Fund as provided in the Loan Agreement on the date of delivery
of the Bond.
(B) The remaining proceeds, if any, shall be used to pay the costs of
issuance and any other necessary related costs in connection with the issuance,
delivery, and sale of the Bond, as directed in writing by the authorized representatives of
the City. For purposes of this Resolution, "Costs of Issuance" includes, legal fees, any
fees of the Lender, and all other miscellaneous costs associated with the issuance of the
Bond.
Section 7. Authorization of Other Actions. The City Manager, Chief Financial
Officer, Finance Director, City Clerk, Risk Management Director, City Attorney, Bond
Counsel, and Financial Advisors are each designated agents of the City in connection with
the execution and delivery of the Loan Agreement and the Bond and are authorized and
empowered,' collectively or individually, to take all any and actions and steps to execute
and deliver any and all instruments, documents, or contracts on behalf of the City, including
a Tax Certificate, which are necessary or desirable in connection with the execution and
delivery of the Loan Agreement and the Bond to the Lender, including, but not limited to,
the making of modifications to the Loan Agreement and the Bond, as are necessary and
desirable and which are specifically authorized or are not inconsistent with the terms
and provisions of this Resolution, the Offer, the Proposal, or any action relating to
the Bond, heretofore taken by the City and/or by the Financial Advisor, Bon d
Counsel, City Manager, City Attorney, or other necessary City officials, employees,
representatives, and agents. Such officials, employees, agents, representatives, and
those so designated are hereby charged with the responsibility for the issuance of
the Bond on behalf of the City and with any related and required responsibilities of
the City, its agents, representatives, employees, or officials, including its Financial
Advisor and Bond Counsel. Any and all costs incurred in connection with the
issuance of the Bond are hereby authorizedl to be paid from the proceeds of the
Bond and from any other City funds that have previously been designated by the
City for such payments.
Section 8. Ratifications, Approvals, and Confirmations. Certain necessary
actions by the City Manager and the designated Departments of the City in order to
update the relevant financial controls, project close-outs, accounting entries, and
computer systems in connection with City funding for the Project and with ongoing
compliance for the Bond are hereby ratified, approved, and confirmed.
Section 9. 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 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, and provisions of this Resolution, or of the Bond
issued hereunder, and in no way affect the validity of all other provisions of the Bond or
the Loan Agreement delivered hereunder.
Section 10. Controlling Law; Members, Officials, Agents, Representatives, and
Employees of City Not Liable. All covenants, stipulations, obligations, and agreements of
the City contained in this Resolution shall be deemed to be covenants, stipulations,
obligations, and agreements of the City to the full extent authorized by the Act, the City
Charter, the City Code, and provided by the Constitution and laws of the State. No
covenant, stipulation, obligation, or agreement contained herein shall be deemed to be a
covenant, stipulation, obligation, or agreement of any present or future member, official,
agent, representative, or employee of the City in his or her individual capacity and
neither the members of the City Commission, the Mayor, the City Clerk, City Attorney,
City Manager, nor any other official executing the Bond, the Loan Agreement, or any
other documents, instruments, certificates, and notices in connection therewith shall be
liable personally on the Bond, the Loan Agreement, or this Resolution or shall be subject
to any personal liability or accountability by reason of the issuance or the execution by
the City or such respective members, officials, agents, representatives, or employees
thereof, or by reason of the financing of the City's portion of the funding for the Project.
Section 11. Continuing Compliance. The City Commission hereby authorizes'
the City Manager, City Clerk, Financial Adviser, City Attorney, Bond Counsel, and all
other necessary City officials and departments to undertake and to provide for
executions and deliveries of all necessary documents, disclosures, certifications, and
notices for continuing compliance for the Loan Agreement and the Bond in accordance
1 The herein authorization is further subject to compliance with all legal requirements that may be
imposed, including but not limited to, those prescribed by applicable City Charter and City Code
provisions.
with the United States Internal Revenue Service, United States Securities and Exchange
Commission, City Charter, City Code, Intent to Reimburse Resolution, and other
Federal, State, and local laws, rules, regulations, and requirements.
Section 12. Effective Date. This Resolution shall become effective immediately
upon its adoption and signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
= If the Mayor does not sign this Resolution, it shall become effective at the end of ten (1O) 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
Legislation
Resolution:
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 9004 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE ISSUANCE OF THE NOT TO EXCEED TWENTY SEVEN
MILLION DOLLARS ($27,000,000.00) TAX EXEMPT NON -AD VALOREM
SPECIAL OBLIGATION REVENUE BOND, SERIES 2021 (FP&L
UNDERGROUNDING PROJECT) ("BOND") FOR THE PURPOSES OF
FINANCING THE CITY OF MIAMI'S ("CITY") PORTION OF A CERTAIN
CAPITAL PROJECT AND PAYING COSTS OF ISSUANCE AND OTHER
COSTS RELATED THERETO; PROVIDING THAT THE BOND SHALL BE A
LIMITED OBLIGATION OF THE CITY PAYABLE FROM PLEDGED
REVENUES, AS PROVIDED HEREIN; PROVIDING FOR THE RIGHTS,
SECURITY, AND REMEDIES FOR THE OWNER OF THE BOND; APPROVING
THE SELECTION OF THE PROPOSAL FROM STERLING NATIONAL BANK
AS THE LENDER ("LENDER'') AND AUTHORIZING THE PRIVATE
NEGOTIATED SALE OF SUCH BOND ON BEHALF OF THE LENDER TO ITS
WHOLLY -OWNED SUBSIDIARY, STERLING NATIONAL FUNDING CORP., A
NEW YORK CORPORATION ("SNFC") AND CONSENTING TO SNFC AS c.,
BONDHOLDER FOR THE LENDER PURSUANT TO THE TERMS AND
CONDITIONS DESCRIBED HEREIN AND AS FURTHER SET FORTH IN T1H c�
LOAN AGREEMENT AND THE BOND; AUTHORIZING THE CITY MANAGER r
TO DETERMINE THE INTEREST RATE FOR THE BOND WITHIN SUCH
PARAMETERS AS SET FORTH HEREIN AND AUTHORIZING THE CITY co
MANAGER TO NEGOTIATE, EXECUTE, AND DELIVER, AFTER_
CONSULTATION WITH THE CHIEF FINANCIAL OFFICER, FINANCE :-c
DIRECTOR, FINANCIAL ADVISOR, CITY CLERK, RISK MANAGEMENT 2 •
DIRECTOR, CITY ATTORNEY, AND BOND COUNSEL, A LOAN AGREEMENTt,
THE BOND, AND ANY AND ALL OTHER NECESSARY DOCUMENTS,
CERTIFICATES, AND INSTRUMENTS, INCLUDING MODIFICATIONS,
EXTENSIONS, RENEWALS, AND AMENDMENTS THERETO, ALL FOR THE
CITY TO FINANCE THE CITY'S PORTION OF FUNDING FOR THE FP&L
UNDERGROUNDING PROJECT WITHIN THE DESIGNATED CITY AREAS
DESCRIBED BELOW ("PROJECT"); AUTHORIZING OTHER REQUIRED
ACTIONS BY THE CITY MANAGER, CITY CLERK, FINANCIAL ADVISORS,
CITY ATTORNEY, BOND COUNSEL, AND ANY OTHER NECESSARY CITY
OFFICIALS; RATIFYING, APPROVING, AND CONFIRMING CERTAIN
NECESSARY ACTIONS OF THE CITY MANAGER AND DESIGNATED CITY
OFFICIALS IN ORDER TO UPDATE THE RELEVANT CAPITAL PROJECTS,
FINANCIAL CONTROLS, PROJECT CLOSE-OUTS, COMPLETED PROJECTS,
ACCOUNTING ENTRIES, AND COMPUTER SYSTEMS IN CONNECTION
WITH THE CITY FUNDING FOR THE PROJECT AND WITH ONGOING
COMPLIANCE FOR THE BOND; FURTHER AUTHORIZING THE CITY
MANAGER, CITY CLERK, FINANCIAL ADVISOR, CITY ATTORNEY, BOND
COUNSEL, AND ALL OTHER NECESSARY CITY OFFICIALS TO UNDERTAKE
AND TO PROVIDE FOR EXECUTIONS AND DELIVERIES OF ALL
NECESSARY DOCUMENTS, DISCLOSURES, CERTIFICATIONS, AND
NOTICES FOR CONTINUING COMPLIANCE FOR THE LOAN AND THE BOND
City of Miami Page 1 of 10 File 10: 9004 (Revision:) Printed Can: 6/10/2021
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IN ACCORDANCE WITH UNITED STATES INTERNAL REVENUE SERVICE,
THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, THE
CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, THE CODE OF
THE CITY OF MIAMI, FLORIDA, AS AMENDED, THE INTENT TO REIMBURSE
RESOLUTION, AND OTHER FEDERAL, STATE OF FLORIDA, AND LOCAL
LAWS, RULES, REGULATIONS, AND REQUIREMENTS; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Miami ("City") entered into the New Underground Transmission
Facilities Construction Contribution Agreement dated November 2017 with Florida Power &
Light Company ("FPL") ("Construction Agreement") wherein the City agreed to contribute the not
to exceed amount of Twenty -Seven Million Dollars ($27,000,000.00) for the City's share of the
shared cost to complete the Project, as defined herein; and
WHEREAS, on July 26, 2018, the City Commission adopted Resolution No. R-18-0334
("Intent to Reimburse Resolution"); and
WHEREAS, the City's Financial Advisor, PFM Financial Advisors, LLC ("Financial
Advisor"), issued a Request for Proposals to banking and financial institutions for the issuance
of Tax -Exempt Special Obligation Bonds for the financing of the Project and received multiple
proposals which were evaluated by the Financial Advisor for responses consistent with the
City's needs; and
WHEREAS, the proposals and recommendations by the Financial Advisor were
reviewed and recommended by the City's Administration to the City's Finance Committee on
April 28, 2021, with the proposal dated April 26, 2021 ("Proposal'") from Sterling National Bank
("Lender") being recommended by the Finance Committee as the most responsive and
responsible proposer providing the most favorable covenants to lend to the City the funds in the
not to exceed amount of Twenty -Seven Million Dollars ($27,000,000.00) necessary to finance
the City's portion of funding for the Project and to pay transactional expenses ("Loan"), which
Loan shall be evidenced by the not to exceed amount of Twenty -Seven Million Dollars
($27,000,000.00) City of Miami, Florida Tax -Exempt Non -Ad Valorem Special Obligation
Revenue Bond, Series 2021 (FP&L Undergrounding Project) ("Bond"); and
WHEREAS, the Lender is requesting for the City to consent to its wholly -owned
subsidiary, Sterling National Funding Corp., a New York corporation ("SNFC"), becoming the
sole bondholder on behalf of the Lender ("Bondholder") pursuant to the terms and conditions
described herein, as set forth in the Loan Agreement, and as set forth in the Bond; and
WHEREAS, it is hereby determined that it is in the best interests of the City for the City
Commission to ratify, approve, and confirm certain necessary actions of the City Manager and
designated City officials in order to update the relevant capital projects, financial controls,
project close-outs, completed projects, accounting entries, and computer systems in connection
with the City's portion of the funding for the Project and for ongoing compliance for the Bond;
and
WHEREAS, it is also hereby determined that it is in the best interests of the City for the
City Commission to further authorize the City Manager, City Clerk, Financial Adviser, City
Attorney, Bond Counsel, and all other necessary City officials and departments to undertake
and to provide for executions and deliveries of all necessary documents, disclosures,
certifications, and notices for continuing compliance for the Loan and the Bond in accordance
City of Miami
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File ID: 9004 Enactment Number:
with the United States Internal Revenue Service, the United States Securities and Exchange
Commission, the Charter of the City of Miami, Florida, as amended ("City Charter"), the Code of
the City of Miami, Florida, as amended ("City Code"), the Intent to Reimburse Resolution, and
all other Federal, State of Florida ("State"), and local laws, rules, regulations, and requirements;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. Authority for this Resolution; Recitals, Findings, and Determinations. This
Resolution is adopted pursuant to the provisions of the State Constitution, State Laws including
Chapter 166, Florida Statutes, the City Charter, the City Code, the Intent to Reimburse
Resolution, other applicable City resolutions, and other applicable provisions of law (collectively,
"Act"). The recitals, determinations, 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. Definitions. All capitalized undefined terms shall have the same meaning as set
forth in this Resolution, the Proposal, and as defined in the Loan Agreement and the Bond. In
addition to the words and terms defined in the recitals to this Resolution, the following terms,
unless the context otherwise requires, shall have the meanings specified in this Section. Words
importing the singular shall include the plural in each case and vice versa.
"Act" shall have the meaning ascribed in Section 1.
"Bond" shall mean the not to exceed Twenty -Seven Million Dollars
($27,000,000.00) City of Miami, Florida Tax -Exempt Non -Ad Valorem Special Obligation
Revenue Bond, Series 2021 (FP&L Undergrounding Project) authorized by this Resolution, the
form of which shall be set forth as in the Loan Agreement as Exhibit "A" thereto.
"Bond Counsel" shall mean Bryant Miller Olive P.A., or other nationally
recognized bond counsel firm.
"Bondholder" shall mean Sterling National Funding Corp., a New York
corporation and wholly -owned subsidiary of the Lender ("SNFC").
"Chief Financial Officer" shall mean the Chief Financial Officer of the City.
"City" shall mean City of Miami, Florida, a municipal corporation duly organized
under the laws of the State.
"City Clerk" shall mean the City Clerk of the City or the City Clerk's designee.
"City Charter" shall mean the Charter of the City of Miami, Florida, as amended.
"City Code" shall mean the Code of the City of Miami, Florida, as amended.
"City Commission" shall mean the City Commission of the City of Miami, Florida,
as the governing body of the City.
"City Manager" shall mean the City Manager of the City or the City Manager's
designee.
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"City Attorney" shall mean the City Attorney of the City or the City Attorney's
designee.
"Construction Agreement" shall mean the New Underground Transmission
Facilities Construction Contribution Agreement between the City and FPL dated November
2017, attached to and incorporated by the Loan Agreement.
"Director of Risk Management" shall mean the Director of the Department of Risk
Management of the City.
"Finance Director" shall mean the Director of the Finance Department of the City.
"Financial Advisor" shall mean PFM Financial Advisors, LLC, or any nationally
recognized municipal financial advisor.
"Interest Payment Date" shall mean each January 1 and July 1 through the
Maturity Date commencing January 1, 2022.
"Interest Rate" shall mean an annual fixed interest rate not to exceed 2.46% as
set forth in the Proposal of the Lender.
"IRS Code" shall mean the Internal Revenue Code of 1986, as amended, and all
temporary, proposed, or permanent implementing regulations promulgated or applicable
thereunder.
"Lender" shall mean Sterling National Bank, as the purchaser and holder of the
Bond and as Lender under the Loan Agreement, and its successors and assigns.
"Loan Agreement" shall mean the agreement between the Lender and the City
setting forth the terms and details of the term loan from the Lender to the City, attached and
incorporated as Exhibit "B", with such modifications or changes as may be necessary or
desirable, such approval to be presumed by the execution and delivery thereof by the
authorized representatives of the City to the Lender.
"Maturity Date" shall mean January 1, 2041.
"Non -Ad Valorem Revenues" shall mean all revenues of the City derived from
any source whatsoever other than revenues derived from ad valorem taxes imposed on real or
personal property, only to the extent that such revenues are legally available to pay the
principal of and interest on the Bond.
"Owner" shall mean the Person in whose name the Bond shall be registered on
the books of the City kept for that purpose in accordance with provisions of this Resolution. The
original Owner of the Bond shall be the Lender.
"Paying Agent" shall mean the Finance Director.
"Person" shall mean natural persons, firms, trusts, estates, associations,
corporations, partnerships, and public bodies.
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"Pledged Revenues" shall mean Non -Ad Valorem Revenues deposited into the
Revenue Fund by the City pursuant to a covenant to budget and appropriate established by the
Loan Agreement and income received from the investment of moneys deposited into the funds
and accounts established by the Loan Agreement.
"Principal Amount" shall mean Twenty -Seven Million Dollars ($27,000,000.00).
"Principal Payment Date" shall mean each January 1 through the Maturity Date
commencing January 1, 2022.
"Project" shall mean the construction and installation of 138 kilovolt Transmission
Facilities underground on the route within the City to connect Florida Power & Light Company's
("FPL") Coconut Grove substation to an existing 138 kilovolt underground transmission line
between FPL's Miami substation and FPL's Key Biscayne substation pursuant to and as
described in the New Underground Transmission Facilities Construction Contribution
Agreement between the City and FPL dated November 2017.
"Proposal" shall mean the proposal dated April 26, 2021, attached and
incorporated as Exhibit "A", from Sterling National Bank as the Lender.
"Register" shall mean the books maintained by the Registrar in which are recorded
the name and address of the Registered Owner of the Bond.
"Registered Owner" shall mean the Person in whose name the ownership of the
Bond is registered on the books maintained by the Registrar. The initial Registered Owner shall be
the Lender or its successors and assigns.
"Registrar" shall mean the Finance Director.
"Resolution" shall mean this Resolution as from time to time amended or
supplemented in accordance with the terms hereof.
"SNFC" shall mean Sterling National Funding Corp., a New York corporation and
wholly -owned subsidiary of the Lender acting as Bondholder for the Lender.
"State" shall mean the State of Florida.
Section 3. Additional Findings, Determinations, and Declarations.
(A) For the benefit of its residents, the City Commission finds, determines,
and declares that it is necessary for the continued preservation of the welfare and convenience
of the City and its residents to finance the City's portion of the funding of the Project pursuant to
the Construction Agreement. Issuance of the Bond to finance the City's portion of funding for
the Project pursuant to the Construction Agreement satisfies a public purpose.
(B) It is in the best interest of the health, safety, and welfare of the City and
the inhabitants thereof that the City pledge the Pledged Revenues to secure the obligations of
the City to repay the principal of and interest on the Bond and all other amounts payable
thereunder when due.
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(C) The Pledged Revenues are not now pledged or encumbered in any
manner. The Bond shall be secured by and payable from a lien on and pledge of the Pledged
Revenues, as provided herein and in the Loan Agreement.
(D) The City shall never be required to levy ad valorem taxes or use the
proceeds thereof to pay debt service on the Bond or to make any other payments to be made
hereunder. The Bond shall not constitute a lien an any property owned by or situated within the
limits of the City.
(E) The estimated Pledged Revenues for the payment thereof will be
sufficient to pay all principal of and interest on the Bond to be issued hereunder, as the same
become due, and to make all required reserve or other payments required by the Loan
Agreement.
(F) The City has received an offer from the Lender ("Offer') in the Lender's
Proposal to provide a term loan to the City and to acquire the Bond in connection therewith.
(G) In consideration of the term loan, acquisition, and acceptance of the Bond
authorized to be issued hereunder by those who shall be the Owner thereof from time to time,
this Resolution shall constitute a contract between the City and the Lender or any subsequent
Owner.
Section 4. Authorization of Bond and the City's Portion of Funding for the Project;
Description of the Bond; Registration of the Bond. Subject and pursuant to the provisions of this
Resolution, an obligation of the City to be known as the "City of Miami, Florida Tax -Exempt Non -
Ad Valorem Special Obligation Revenue Bond, Series 2021 (FP&L Undergrounding Project) is
hereby authorized to be issued under and secured by this Resolution in the principal amount not
to exceed Twenty -Seven Million Dollars ($27,000,000.00) for the purposes of financing the
City's portion of funding for the Project and paying the costs of issuing the Bond and other
necessary related costs. The City's undertakings to provide its portion of funding for the Project
has been previously acknowledged in the Intent to Reimburse Resolution and in the
Construction Agreement and are reaffirmed and authorized by this Resolution.
The Bond shall be dated as of the date of its delivery to the Bondholder on behalf of the
Lender and shall mature on the Maturity Date, as to be provided in the Bond and the Loan
Agreement. The Bond shall be payable to the Lender and shall bear interest at the fixed annual
Interest Rate, calculated on the basis of a 360-day year consisting of twelve (12) 30-day
months. Interest will be paid annually on each Interest Payment Date with the first interest
payment due on January 1, 2022. Principal will be paid annually on January 1 each year as the
Principal Payment Date, with the first principal payment payable on January 1, 2022. On each
Principal Payment Date, the City shall pay an annual installment of the outstanding principal
due on the Bond in an amount specified in Schedule 1 attached to the Bond. The stated
Maturity Date shall be January 1, 2041; provided, however, that the Bond and the Loan
Agreement shall also provide for prepayments in accordance with the Proposal. Additionally, the
Loan Agreement and the Bond shall set forth provisions for redemption, including partial
redemption.
Because of the characteristics of the Bond, prevailing market conditions, and additional
savings to be realized from an expeditious sale of the Bond, it is in the best interest of the City
to accept the Offer of the Lender and the Lender's Proposal to acquire the Bond at a private
negotiated sale to evidence its term loan to the City. Prior to the issuance of the Bond, the City
shall receive from the Lender and the Bondholder the Lender's and Bondholder's Certificate, in
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substantially the attached form as Exhibit "C", and a Disclosure Letter containing the information
required by Section 218.385, Florida Statutes, in substantially the attached form as Exhibit "D
The Finance Director is hereby authorized' to be the Registrar and the Paying Agent for
the Bond and to maintain the Register for the Bond. The Bond may be exchanged at the office
of the Registrar for a like aggregate principal amount of Bond of the same series and maturity
as provided in the Loan Agreement. Notwithstanding the foregoing or any provision of this
Resolution to the contrary, transfer of the Bond is restricted as provided in the Loan Agreement
and in the Bond itself.
On the date of the issuance of the Bond, the City shall receive an amount equal to the
par amount of the Bond from the Lender as the purchase price of the Bond. The Bond shall be
payable in any legal coin or currency of the United States of America which on the respective
dates of the Interest Payment Date and the Principal Payment Date is legal tender for the
payment of public and private debts.
The Bond is hereby authorized to be issued to SNFC, a solely -owned subsidiary of the
Lender, and the City hereby consents to SNFC as the Bondholder pursuant to the terms and
conditions hereof, of the Loan Agreement, and as set forth in the Bond.
Section 5. Form of Bond; Approval of the Loan Agreement and Bond; Execution of the
Bond; Bond Mutilated, Destroyed, Stolen, or Lost. The Bond shall be in substantially the form
attached as Exhibit "A" to the Loan Agreement, with only such omissions, insertions, and
variations as may be necessary and desirable and permitted by this Resolution or by any
subsequent ordinance or resolution adopted prior to the issuance thereof.
The Loan Agreement and the Bond, attached and incorporated attached and
incorporated as Exhibit"B", are approved, both subject to and pursuant to the provisions hereof.
In anticipation of the sale and delivery of the Bond, the City Manager, in consultation with the
City Attorney, Bond Counsel, Financial Advisor, and any other necessary City officials, is
authorized' to negotiate, to execute, and to deliver, in a form acceptable to the City Attorney
and Bond Counsel, the Loan Agreement and the Bond with the Lender with respect to the Bond,
and is further authorized' to negotiate, to execute, and to deliver, in a form acceptable to the
City Attorney and Bond Counsel, all other necessary documents, agreements, and instruments.
The City Manager, after consultation with the City Attorney, Bond Counsel, the Financial
Advisor, and any other necessary City officials is further authorized' to negotiate, execute, and
deliver, in a form acceptable to the City Attorney and Bond Counsel, any changes,
modifications, supplements, and amendments to the Loan Agreement, the Bond, and any and
all other agreements, documents, and instruments as should be deemed necessary or desirable
and to take such other actions as shall be necessary to implement the terms and conditions of
the Loan Agreement and the Bond. Additionally, in accordance with the City Charter and City
Code, the City Manager, City Clerk, City Attorney and any other necessary City officials are
hereby authorized' to execute and deliver all necessary documents, certificates, notices, or
other items required under this Resolution. The provisions of such documents as so negotiated,
executed, and delivered, all in forms acceptable to the City Attorney and Bond Counsel, are
hereby incorporated into and made a part of this Resolution.
The Bond shall be executed in the name of the City by the City Manager and the seal of
the City shall be imprinted, reproduced, or lithographed on the Bond and attested to and
countersigned by the City Clerk. In addition, the City Attorney shall sign the Bond and the Loan
Agreement showing approval of the legal form and correctness thereof and the Director of Risk
Management shall sign the Bond and the Loan Agreements showing approval as to the City's
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insurance requirements. The signatures of the City Manager, the City Clerk, the Risk
Management Director, and the City Attorney on the Bond may be by facsimile. If any officer
whose signature appears on the Bond ceases to hold office before the delivery of the Bond, his
or her signature shall nevertheless be valid and sufficient for all purposes. In addition, any Bond
may bear the signature of, or may be signed by, such persons as at the actual time of execution
of such Bond shall be the proper designated officers to sign such Bond, although at the date of
such Bond or the date of delivery thereof such persons may not have been such officers. Any
Bond delivered shall be authenticated by the manual signature of the Finance Director as the
Registrar and the registered owner of any Bond so authenticated shall be entitled to the benefits
of this Resolution.
If the Bond is mutilated, destroyed, stolen, or lost, the City or its agent may, in its
discretion, deliver a duplicate replacement Bond or pay a Bond that has matured, is about to
mature, or has been called for prepayment. A mutilated Bond shall be surrendered to and
cancelled by the Registrar. The holder of any Bond must furnish the City or its agent proof of
ownership of any destroyed, stolen, or lost Bond; post satisfactory indemnity; comply with any
reasonable conditions the City or its agent may prescribe; and pay the reasonable expenses of
the City or its agent.
Any such duplicate Bond shall constitute an original contractual obligation on the part of
the City whether or not the destroyed, stolen, or lost Bond be at any time found by anyone and
such duplicate Bond shall be entitled to equal and proportionate benefits and rights as to lien on
and source of payment of and security for payment from the funds pledged to the payment of
the Bond so mutilated, destroyed, stolen, or lost.
Section 6. Application of Proceeds of Bond. The proceeds, including accrued interest
and premium, if any, received from the issuance of any or all of the Bond shall be applied by the
City simultaneously with the delivery of the Bond to the Lender, as follows:
(A) A sum equal to the City's portion of the cost of the Project shall be
deposited into the Bond Fund as provided in the Loan Agreement on the date of delivery of the
Bond.
(B) The remaining proceeds, if any, shall be used to pay the costs of issuance
and any other necessary related costs in connection with the issuance, delivery, and sale of the
Bond, as directed in writing by the authorized representatives of the City. For purposes of this
Resolution, "Costs of Issuance" includes, legal fees, any fees of the Lender, and all other
miscellaneous costs associated with the issuance of the Bond.
Section 7. Authorization of Other Actions. The City Manager, Chief Financial Officer,
Finance Director, City Clerk, Risk Management Director, City Attorney, Bond Counsel, and
Financial Advisors are each designated agents of the City in connection with the execution and
delivery of the Loan Agreement and the Bond and are authorized and empowered,' collectively or
individually, to take all any and actions and steps to execute and deliver any and all instruments,
documents, or contracts on behalf of the City, including a Tax Certificate, which are necessary or
desirable in connection with the execution and delivery of the Loan Agreement and the Bond to the
Lender, including, but not limited to, the making of modifications to the Loan Agreement and the
Bond, as are necessary and desirable and which are specifically authorized or are not
inconsistent with the terms and provisions of this Resolution, the Offer, the Proposal, or
any action relating to the Bond, heretofore taken by the City and/or by the Financial
Advisor, Bond Counsel, City Manager, City Attorney, or other necessary City officials,
employees, representatives, and agents. Such officials, employees, agents,
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representatives, and those so designated are hereby charged with the responsibility for the
issuance of the Bond on behalf of the City and with any related and required
responsibilities of the City, its agents, representatives, employees, or officials, including its
Financial Advisor and Bond Counsel. Any and all costs incurred in connection with the
issuance of the Bond are hereby authorized' to be paid from the proceeds of the Bond and
from any other City funds that have previously been designated by the City for such
payments.
Section 8. Ratifications, Approvals, and Confirmations. Certain necessary actions by
the City Manager and the designated Departments of the City in order to update the relevant
financial controls, project close-outs, accounting entries, and computer systems in connection
with City funding for the Project and with ongoing compliance for the Bond are hereby ratified,
approved, and confirmed.
Section 9. 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 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, and
provisions of this Resolution, or of the Bond issued hereunder, and in no way affect the validity
of all other provisions of the Bond or the Loan Agreement delivered hereunder.
Section 10. Controlling Law; Members, Officials, Agents, Representatives, and
Employees of City Not Liable. All covenants, stipulations, obligations, and agreements of the
City contained in this Resolution shall be deemed to be covenants, stipulations, obligations, and
agreements of the City to the full extent authorized by the Act, the City Charter, the City Code,
and provided by the Constitution and laws of the State. No covenant, stipulation, obligation, or
agreement contained herein shall be deemed to be a covenant, stipulation, obligation, or
agreement of any present or future member, official, agent, representative, or employee of the
City in his or her individual capacity and neither the members of the City Commission, the
Mayor, the City Clerk, City Attorney, City Manager, nor any other official executing the Bond, the
Loan Agreement, or any other documents, instruments, certificates, and notices in connection
therewith shall be liable personally on the Bond, the Loan Agreement, or this Resolution or shall
be subject to any personal liability or accountability by reason of the issuance or the execution
by the City or such respective members, officials, agents, representatives, or employees
thereof, or by reason of the financing of the City's portion of the funding for the Project.
Section 11. Continuing Compliance. The City Commission hereby authorizes' the City
Manager, City Clerk, Financial Adviser, City Attorney, Bond Counsel, and all other necessary
City officials and departments to undertake and to provide for executions and deliveries of all
necessary documents, disclosures, certifications, and notices for continuing compliance for the
Loan Agreement and the Bond in accordance with the United States internal Revenue Service,
United States Securities and Exchange Commission, City Charter, City Code, Intent to
Reimburse Resolution, and other Federal, State, and local laws, rules, regulations, and
requirements.
1 The herein authorization is further subject to compliance with all legal requirements that may be
imposed, including but not limited to, those prescribed by applicable City Charter and City Code
provisions.
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Section 12. Effective Date. This Resolution shall become effective immediately upon its
adoption and signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
l �y
Bamaby , Deputy City Attorney 611/2021
2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) 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.
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