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Home My WebLink AboutR-18-0334City of Miami 1 i.RR cl Legislation �a�lldl 1 l + Resolution: R-18-0334 File Number: 4371 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 7/26/2018 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), DECLARING THE OFFICIAL INTENT OF THE CITY OF MIAMI ("CITY") TO ISSUE TAX-EXEMPT SPECIAL OBLIGATION BONDS IN THE EXPECTED NOT TO EXCEED TOTAL MAXIMUM PRINCIPAL AMOUNT OF TWENTY-SEVEN MILLION DOLLARS ($27,000,000.00) IN ORDER TO, AMONG OTHER THINGS, REIMBURSE THE CITY FOR FUNDS ADVANCED BY THE CITY FOR CERTAIN EXPENSES INCURRED WITH RESPECT TO CAPITAL IMPROVEMENTS TO BE UNDERTAKEN ON BEHALF OF THE CITY BY FLORIDA POWER AND LIGHT, INC. FOR THE UNDERGROUNDING OF TRANSMISSION FACILITIES WITHIN THE CITY'S LIMITS ("PROJECT") WHICH REPRESENTS THE CITY'S CONTRIBUTION TO THE COST OF THE PROJECT IN ACCORDANCE WITH CITY COMMISSION RESOLUTION NO. R-17-0392 ADOPTED ON JULY 27, 2017; ESTABLISHING CERTAIN RELATED DEFINITIONS OF TERMS; AUTHORIZING CERTAIN FURTHER AND INCIDENTAL ACTIONS BY THE CITY MANAGER, IN CONSULTATION WITH THE CITY ATTORNEY, BOND COUNSEL, FINANCIAL ADVISOR, CHIEF FINANCIAL OFFICER, FINANCE DIRECTOR, BUDGET DIRECTOR, AND SUCH OTHER APPROPRIATE OFFICERS, EMPLOYEES, AND AGENTS OF THE CITY AS THE CITY MANAGER DEEMS NECESSARY, ALL AS REQUIRED FOR PURPOSES OF SECTIONS 103 AND 141-150 OF THE U. S. INTERNAL REVENUE CODE OF 1986, AS AMENDED; FURTHER AUTHORIZING RELATED AMENDMENTS TO THE CITY'S MULTI-YEAR CAPITAL PLAN, AS NECESSARY. WHEREAS, United States Treasury Regulations §1.150-2 ("Reimbursement Regulations") prescribe conditions under which proceeds of tax-exempt bonds, notes, or other obligations ("Bonds") used to reimburse advances made for capital and certain other expenditures ("Original Expenditures") paid before the issuance of such Bonds will be deemed to be expended (or properly allocated to expenditures) for purposes of Sections 103 and 141- 150 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, as amended (collectively, "IRS Code"), upon such reimbursement so that the proceeds so used will no longer be subject to requirements or restrictions under those sections of the IRS Code; and WHEREAS, certain provisions of the Reimbursement Regulations require that there be a declaration of official intent not later than sixty (60) days following payment of the Original Expenditures expected to be reimbursed from proceeds of Bonds and that the reimbursement occur within certain prescribed time periods after the Original Expenditures are paid or after the property, resulting from that Original Expenditure, is placed in service; and WHEREAS, the City Commission expects to provide for the issuance by the City of Miami ("City") its tax-exempt special obligation bonds in a not to exceed total maximum principal amount not to exceed Twenty -Seven Million Dollars ($27,000,000.00) (collectively, "Special Obligation Bonds") for the purposes of capital improvements to be undertaken on behalf of the City by Florida Power and Light, Inc. ("FPL") for the undergrounding of transmission facilities City of Miami Page 1 of 3 File ID: 4371 (Revision:) Printed On: 11/7/2018 File ID: 4371 Enactment Number: R-18-0334 within the City's limits ("Project") which represents the City's contribution to the cost of the project in accordance with (1) City Commission Resolution No. 17-0392 adopted on July 27, 2017 ("Undergrounding Resolution") and (2) the Downtown Injection Agreement as defined below; and WHEREAS, in connection with the Undergrounding Resolution, the City and FPL have entered into a New Underground Transmission Facilities Construction and Contribution Agreement dated effective on or about December 4, 2017, attached and incorporated as Exhibit "A" ("Downtown Injection Agreement"), pursuant to which (1) the City's Original Expenditures amount and timing for its contribution to FPL for the Project are set forth in Article II, Section 2.3 thereof and (2) the conditions precedent for the schedule of the City's contribution are set forth in Article V thereof; and WHEREAS, in connection with the Undergrounding Resolution, the Project, and the City's contribution requirement under the Downtown Injection Agreement, the City expects to make Original Expenditures that will be reimbursed from proceeds of the Special Obligation Bonds, as will be set forth in the City Manager's subsequent Memorandum for Reimbursable Funds Advanced ("City's Manager's Memorandum"); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY MIAMI, FLORIDA: Section 1. Recitals and Findings. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. Definitions. The following definitions apply to the terms used herein: "Reimbursement" or "Reimburse" means the restoration to the City of money temporarily advanced from its own funds and spent for Original Expenditures before the issuance of the Special Obligation Bonds evidenced in writing by an allocation on the books and records of the City that shows the use of the proceeds of the Special Obligation Bonds to restore the money advanced for the Original Expenditures. "Reimbursement" or "Reimburse" generally does not include the refunding or retiring of Bonds previously issued and sold to, or borrowings from, unrelated entities. Section 3. Declaration of Official Intent. The City Commission hereby declares the City's official intent to issue the tax-exempt Special Obligation Bonds in the expected not to exceed total maximum principal amount of Twenty -Seven Million Dollars ($27,000,000.00) and, to the extent permissible under the IRS Code regarding the tax-exempt Special Obligation Bonds, use a portion of the tax-exempt Special Obligation Bonds to reimburse the City for funds advanced by it, pursuant to the Downtown Injection Agreement for Original Expenditures incurred and to be incurred with respect to capital improvements through undergrounding of transmission lines within the City by FPL on behalf of the City, as required by the Downtown Injection Agreement. This Resolution is intended as a declaration of official intent under United States Treasury Regulation § 1.150-2 as set forth in the City Manager's Memorandum. Section 4. Incidental Actions. The City Manager, in consultation with the City Attorney, Bond Counsel, Financial Advisor, Chief Financial Officer, Finance Director, Budget Director, and such other appropriate officers, employees, and agents of the City as the City Manager deems necessary, are hereby authorized to take such actions as may be necessary to carry out the purposes of this Resolution and the IRS Code. City of Miami Page 2 of 3 File ID: 4371 (Revision:) Printed on: 11/7/2018 File ID: 4371 Enactment Number: R-18-0334 Section 5. Related Amendment of the City's Multi -Year Capital Plan. The Multi -Year Capital Plan is amended (i) to include the undergrounding of transmission lines and the associated financing for the City's contribution to Project funding through the Special Obligation Bonds as referenced in this Resolution with new project numbers to be determined by the City Manager and (ii) to require that future reallocations of funding sources be presented to City Commission from time to time in connection with said financing of the City's contribution to FPL for the Project pursuant to the Downtown Injection Agreement. Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption and signature of the Mayor.' APPROVED AS TO FORM AND CORRECTNESS: 1 i ria i "ndez,ity ttor ey 7/12/2018 ' 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. City of Miami Page 3 of 3 File ID: 4371 (Revision:) Printed on: 11/7/2018