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2009-27025 ResoRESOLUTION NO. 2009-27025 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE CITY OF MIAMI BEACH CAPITAL BUDGET FOR FISCAL YEAR (FY) 2008109, AND DECLARING THE INTENT OF THE CITY TO ISSUE DEBT OF THE CITY TO REIMBURSE ITSELF FOR FUNDS ADVANCED FOR CERTAIN STORMWATER EXPENSES WHEREAS, of the total of $180,305,770 approved in the Adopted Capital Budget for FY 2008!09, approximately $22 million in proposed new water and sewer bonds, $39.1 million in proposed new stormwater bonds, $22.9 million in Parking Bonds, and $18.6 million in South Pointe Financing were anticipated for FY 2008/09 but were not appropriated pending anticipated issuance of the financing as part of a multi-year financing plan; WHEREAS, in total, approximately $45.4 million for water projects, $4.9 million for sewer projects, and $94.65 million for stormwater projects were anticipated to be preliminarily financed though a line of credit that would ultimately be replaced by water, sewer and stormwater bonds issued over a series of years beginning in FY 2009/10; and WHEREAS, the City intended to first seek a line of credit which will allow the City to have the necessary funding capacity to enter into new projects, while allowing the City more time to both build the necessary rate capacity (debt service coverage) to issue additional tax-exempt bonds through rate increases and also spend down the current committed but unspent bond proceeds; and WHEREAS, the issuance for the line of credit in Water and Sewer and stormwater as well as the Parking Bonds and South Pointe financing for the South Pointe Sewer Pump Station anticipated for Fiscal Year 2008/09 has been impacted by the destabilization and lack of liquidity of the financial markets; and WHEREAS, the destabilization of the financial markets have prevented the City from availing itself of any financing to date; and WHEREAS, this has slowed the process of accessing financing although the City is currently working with its Financial Advisors and actively pursuing credit lines; and WHEREAS, ,there is an immediate need for $7,140, 847 that had been approved as funded by financing in the Adopted FY 2008/09 Capital Budget, of which $4,939,017 is stormwater related and $2,601,830 is water and sewer related; and WHEREAS, it is recommended that these immediate needs be substituted by alternative sources of funding in order to keep these projects moving until such time as financing can be put in place; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that they hereby amend the Capita- Budget to replace previously approved funding through future bonds in the Adopted City of Miami BeachJMiami Beach Redevelopment Agency Capital Budget for Fiscal Year 2008/09 as shown below: Projects: Stormwater Water & Sewer Pro'ect Component Component NORMANDY SHORES $ 3,438,180 $ 8,820 NORMANDY ISLE $ 198,006 $ 357,673 VENETIAN ISLAND BPC $ 710,611 $ 2,215,317 STAR ISLAND ENHANCEMENTS $ 25,000 $ - NAUTILUS $ 167,220 $ 20,020 Total $ 4,539,017 $ 2,601,830 Funding: Stormwater Bonds 2000S Interest $950,207 Stormwater Bonds 2000S $421,275 Stormwater Operating Fund (Advance) 3,167,535 Total $4,539,017 Water and Sewer Bonds 2000S Interest 1,200,793 Water & Sewer Gulf Breeze 2006 Interest 1,401,037 Total $2,601,830 BE IT FURTHER RESOLVED, that the City declares its official intent to issue tax-exempt debt in the aggregate principal amount of approximately $3,200,000, the proceeds of which will, to the extent permissible under the Internal Revenue Code of 1986, as amended (the Code), be used to reimburse the City for the above operating funds advanced by the City for the stormwater projects described above. This resolution is intended as a declaration of official intent under the Code. PASSED AND ADOPTED THIS 2nd DAY OF Ma:rchp ~ 2009. MA O A est: G~ ~~~ CITY CLERK Robert Parcher Matti Herrera Bower APPROVED AS TO FORM ~ t ANGUAGE 2 ~ 2b 0~ City mey(~\ ~ Date COMMISSION ITEM SUMMARY Cnndr~tnsed Title' A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE CITY OF MIAMI BEACH CAPITAL BUDGET FOR FISCAL YEAR F 2008/09 Cey Intended Outcome Supported: Increase Community Satisfaction with City Services Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2007 community survey, recently completed capital projects were highly rated by the community. However, they are also a major driver of perceptions of value of services for tax dollars paid, whether the City is better or worse than a few years ago, and overall quality of life. Road conditions and storm drainage are capital-related areas still identified as key areas of focus. Issue' Should the Commission amend the City of Miami Beach FY 2008/09 Capital Budget? Item Summarya'Recommenaation: Of the total of $180,305,770 approved in the Adopted Capital Budget for FY 2008/09, approximately $22 million in proposed new water and sewer bonds, $39.1 million in proposed new stormwater bonds, $22.9 million in Parking Bonds, and $18.6 million in South Pointe Financing were anticipated for FY 2008/09 but were not appropriated pending anticipated issuance of the financing as part of a multi-year financing plan. In total, approximately $45.4 million for water projects, $4.9 million for sewer projects, and $94.65 million for stormwater projects were anticipated to be preliminarily financed though a line of credit that would ultimately be replaced by water, sewer and stormwater bonds issued over a series of years beginning in FY 2009/10. Under this approach, the City intended to first seek a line of credit which will allow the City to have the necessary funding capacity to enter into new projects, while allowing the City more time to both build the necessary rate capacity to issue additional tax-exempt bonds through rate increases and also spend down the current committed but unspent bond proceeds. The issuance for the line of credit in Water and Sewer and stormwater as well as the Parking Bonds and South Pointe financing for the South Pointe Sewer Pump Station anticipated for Fiscal Year 2008/09 has been impacted by the destabilization and lack of liquidity of the financial markets. This has slowed the process of accessing funding although the City is currently working with its Financial Advisors and actively pursuing credit lines. The most immediate need to keep infrastructure projects moving forward is $7,140, 847 ($4,539,017 stormwater related and $2,601,830 water and sewer related). To fund these needs, the appropriations below are recommended to substitute for the "Future Bonds" identified in the Adopted Capital Budget for FY 2008/09 until such time as financing can be put in place. It proposed that when the City is able to issue stormwater Bonds that the stormwater Operating Funds will be reimbursed. To allow reimbursement from future bonds, the Commission must declare the intent of the City to reimburse itself and, therefore, to preserve this option appropriate language is provided in the related resolution. Adviso Board Recommendation: Financial Information: Source of Amount Account Funds: ~ $1,200,793 Water & Sewer Bond 2000S Interest y $1,401,037 Water & Sewer Gulf Breeze 2006 Interest $ $ 950,207 stormwater Bonds 200S Interest 4 $ 421,275 stormwater Bonds 2000S 5 $3,167,535 stormwater Operating Funds (Advance) OBPI Total $7,140,847 Financial Impac t Summary: Ci Clerk's Office Le islative Trackin Sian-Offs: ~ department Director ~ Assistant City Manager ~ ~ City Manager ~ A ~' n J\ /Ir I ~~~~~ ACsENDA ITEM ~~ ~ , V ~ K(V ~ DATE 2~~'s-O~' m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, veww.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: February 25, 2009 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE CITY OF MIAMI BEACH CAPITAL BUDGET FOR FISCAL YEAR (FY) 2008/09 AND DECLARING THE INTENT OF THE CITY TO ISSUE DEBT OF THE CITY TO REIMBURSE ITSELF FOR FUNDS ADVANCED FOR CERTAIN STORMWATER EXPENSES ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND Planning for capital improvements is an ongoing process; as needs change within the City, capital programs and priorities must be adjusted. The Capital Improvement Plan ("CIP") serves as the primary planning tool for systematically identifying, prioritizing and assigning funds to critical City capital development, improvements and associated needs, and the City's annual capital budget represents the first year of that plan. Of the total of $180,305,770 approved in the Adopted Capital Budget for FY 2008/09, approximately $22 million in proposed new water and sewer bonds, $39.1 million in proposed new stormwater bonds, $22.9 million in Parking Bonds, and $18.6 million in South Pointe Financing were anticipated for FY 2008/09 but were not appropriated pending anticipated issuance of the financing as part of a multi-year financing plan. In total, approximately $45.4 million for water projects, $4.9 million for sewer projects, and $94.65 million for stormwater projects were anticipated to be preliminarily financed though a line of credit that would ultimately be replaced by water, sewer and stormwater bonds issued over a series of years beginning in FY 2009/10. Under this approach, the City intended to first seek a line of credit which will allow the City to have the necessary funding capacity to enter into new projects, while allowing the City more time to both build the necessary rate capacity (debt service coverage) to issue additional tax-exempt bonds through rate increases and also spend down the current committed but unspent bond proceeds. Further this approach provides the City with more time to refine the cost estimates for the water, sewer, stormwater and parking projects anticipated for FY 2008/09. City Commission Memorandum Resolution Adopting the First Amendment to the City of Miami Beach FY 2008/09 Capital Budget February 25, 2009 Page 2 ANALYSIS The issuance for the line of credit in Water and Sewer and Stormwater as well as the Parking Bonds and South Pointe financing for the South Pointe Sewer Pump Station anticipated for Fiscal Year 2008/09 has been impacted by the destabilization and lack of liquidity of the financial markets. This has slowed the process of accessing funding although the City is currently working with its Financial Advisors and actively pursuing credit lines. Nonetheless, the administration remains committed to the goal of keeping the infrastructure projects moving forward. The financing requirements related to Parking Operations were addressed for the short term in December as part of the approval for the Sunset Harbor Parking Garage. Below are the anticipated funding timeline requirements for the remaining projects. ROW PROJECTS - FUNDING NEEDS AS OF 1 /30/2009 TOTAL AMOUNT NEEDED TO ADVANCE NORMANDY SHORES NOW - IN CONSTRUCTION $ 3,447,000 NORMANDY ISLE ------------------------- NOW - IN CONSTRUCTION ---------- ---------- $ - . 555 679 .. .z. VENETIAN ISLAND BPC _________-_ NOW -ITB____________ __E 2~925t928_ STAR ISLAND ENHANCEMENTS _-_-___ NOW :DESIGN $ 25000_ NAUTILUS NOW - IN CONSTRUCTION 187 240 SOUTH POINTE BOOSTER PUMP STATION APRIL 2009 -ITB $ 18,603,498 BAYSHORE BPB -LOWER NORTH BAY ROAD ________ APRIL 2009 -ITB $ 3z211t259_ OCEANFRONT PHASE II APRIL 2009 -ITB 896 066 SANITARY SEWER MANHOLE REHAB JUNE 2009 -ITB $ 1,000,000 LA GORCE ________JULY 2009 :ITB $ 5~918~054_ BAYSHORE BPC -LAKE PANCOAST ___________JULY :ITB____________ __$ 2z491~829_ FLAMINGO BID PACK A. _____JULY 2009 -DESIGN $ 1t897~000_ FLAMINGO BID PACK C. ____JULY 2009_: DESIGN $ 1z897t000_ WEST AVE/BAY ROAD JULY 2009 -DESIGN 1 647 000 BAYSHORE BPA -CENTRAL AUGUST 2009 -ITB $ 24,100,489 NORTH SHORE AUGUST 2009 -ITB 9 517 000 BISCAYNE POINT OCTOBER 2009 -ITB $ 9,738,840 STAR ISLAND ENHANCEMENTS OCTOBER 2009 -ITB 1 005 000 SUNSET ISLANDS 1 8~ 2 FEBRUARY 2010 -ITB $ 1 102 000 COOLINS AVE MAIN:SP DRIVE TO 72nd JUNE 2010 -RFQ $ 1,400,000 SUNSET 8~ VENITIAN ISLANDS FORCE MAIN JUNE 2010 -ITB 2 500 000 PALM 8~ HIBISCUS ISLANDS NOVEMBER 2010 -ITB $ 4 706 210 FLAMINGO BID PACK A. JANUARY 2011 -ITB $ 20,827,454 FLAMINGO BID PACK C. -------------------------------------------------•-- ____JANUARY 2011 _ITB -- ---------- $ ------ 21~167~434_ ----- ----- WEST AVE/BAY ROAD JANUARY 2011 -ITB 19 992 322 BAYSHORE BPD -SUNSET III 8 IV 2013 -ITB $ 2 810 579 TOTALS: $ 163,569,881 ITB -INVITATION TO BID RFQ- REQUEST FOR QUALIFICATIONS City Commission Memorandum Resolution Adopting the First Amendment to the City of Miami Beach FY 2008/09 Capital Budget February 25, 2009 Page 3 As can be seen from the table, the most immediate need is for $7,140,847, of which $4,539,017 is stormwater related and $2,601,830 is water and sewer related. In order to fund these needs, the following appropriations are recommended to substitute for the "Future Bonds" identified in the Adopted Capital Budget for FY 2008/09 until such time as financing can be put in place: Water and Sewer Bonds 2000S Interest $ 1,200,793 Water & Sewer Gulf Breeze 2006 Interest 1,401,037 Sub-total $ 2,601,830 stormwater Bonds 2000S Interest stormwater Bonds 2000S stormwater Operating Fund (Advance) $ 950,207 421,275 3,167,535 Sub-total $ 4,539,017 Total $ 7,140,847 It is proposed that when the City is able to issue stormwater Bonds that the stormwater Operating Funds will be reimbursed. To allow reimbursement from future bonds, the Commission must declare the intent of the City to reimburse itself and, therefore, to preserve this option appropriate language is provided in the related resolution. The City is continuing to pursue financing alternatives and will continue to evaluate project timing and needs on a case by case basis. CONCLUSION: The Administration recommends adoption of the attached Resolution, which amends the Capital Budget for FY 2008/09 and declares the intent of the City to issue debt of the City to reimburse itself for funds advanced for certain stormwater expenses.