95-21487 ResoRESOLUTION N0. 95-21487
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
bF THE CITY OF MIAMI BEACH, FLORIDA AMENDING
RESOLUTION N0. 94-21390 ENTITLED "A RESOLUTION
OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA SUPPLEMENTING AND
AMENDING RESOLUTION NO. 94-21170 ENTITLED `A
RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING
THE ISSUANCE OF NOT MORE THAN $65,000,000 IN
AGGREGATE PRINCIPAL AMOUNT OF CITY OF MIAMI
BEACH, FLORIDA TAXABLE SPECIAL OBLIGATION
BONDS (PENSION FUNDING PROJECT) TO DISCHARGE
ALL OR PORTIONS OF THE CITY'S UNFUNDED
ACTUARIAL ACCRUED LIABILITIES WITH RESPECT TO
THREE PENSION PLANS MAINTAINED BY THE .CITY;
PROVIDING FOR THE RIGHTS AND SECURITY OF ALL
HOLDERS OF BONDS ISSUED PURSUANT TO THIS
RESOLUTION; PROVIDING CERTAIN DETAILS OF THE
BONDS; PROVIDING FOR THE DETERMINATION OF ALL
OTHER DETAILS OF THE BONDS BY SERIES
RESOLUTION; APPOINTING A TRUSTEE AND PROVIDING
FOR THE APPOINTMENT OF OTHER FIDUCIARIES BY
SERIES RESOLUTION; PROVIDING FOR THE
NEGOTIATED SALE OF THE BONDS; AU'T'HORIZING
VALIDATION OF THE BONDS; AUTHORIZING OFFICIALS
OF THE CITY TO TAKE ALL NECESSARY ACTIONS IN
CONNECTION WITH THE ISSUANCE OF THE BONDS; AND
PROVIDING FOR AN EFFECTIVE DATE', ADOPTED BY
THE MAYOR AND CITY COMMISSION ON MAY 18, 1994;
PROVIDING ADDITIONAL DETAILS OF THE BONDS AND
DELEGATING THE FINAL TERMS AND AWARD OF SUCH
BONDS TO THE MAYOR, SUBJECT TO CERTAIN
LIMITATIONS; APPOINTING A PAYING AGENT AND
REGISTRAR; APPROVING A BOND PURCHASE
AGREEMENT, PRELIMINARY OFFICIAL STATEMENT AND
OFFICIAL STATEMENT WITH RESPECT TO THE BONDS;
PROVIDING FOR A CREDIT FACILITY AND RESERVE
ACCOUNT INSURANCE POLICY FOR THE BONDS AND
COVENANTS FOR THE BENEFIT OF THEIR ISSUER;
APPROVING A GUARANTY AGREEMENT WITH RESPECT TO
THE RESERVE ACCOUN'T' INSURANCE POLICY;
PROVIDING FOR A HEDGE AGREEMENT; AUTHORIZING
RELATED ACTIONS; AND PROVIDING FOR AN
EFFECTIVE DATE", ADOPTED BY THE MAYOR AND CITY
COMMISSION ON NOVEMBER 2, 1994, TO CLARIFY THE
EXPECTED SAVINGS REQUIRED FOR THE ISSUANCE OF
THE BONDS.
WHEREAS, on May 18, 1994, the City of Miami Beach, Florida
(the "City") adopted Resolution No. 94-21170 (the "Authorizing
Resolution") authorizing the issuance of not to exceed $65,000,000
D09: [04548.DOCS.MIA180035]RESO-AMD.
of City of Miami Beach, Florida Taxable Special Obligation Bonds
(Pension Funding Project) (the "Bonds"), setting out certain
details with respect to the Bonds and providing for the
determination of other details and the approval of certain
documents with respect to the Bonds by a resolution supplementing
the Authorizing Resolution to be adopted by the City prior to the
issuance of the Bonds (the "Series Resolution" and, together with
the Authorizing Resolution, the "Resolution"); and
WHEREAS, on November 2, 1994, the City adopted Resolution No.
94-21390 constituting the Series Resolution described above; and
WHEREAS, in order to clarify certain matters contained in the
Series Resolution with respect to the expected savings required for
the issuance of the Bonds, it is necessary to amend Section 4 of
the Series Resolution;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA;
SECTION 1. DEFINITIONS. All terms used in capitalized form
and not defined herein shall have the meanings ascribed to such
terms in the Resolution.
SECTION 2. AblENDMTNT TO SERIES RESOLIITION. The first
paragraph of Section 4 of the Series Resolution is amended to read
as follows:
"SECTION 4. AWARD OF BONDS; BOND PIIRCHASE
AGREE~iT. The definition of "Purchasers" contained in
the Authorizing Resolution is hereby amended to delete
the reference to "Clayton Brown & Associates, Inc." and
replace it with "Rauscher Pierce Refsnes, Inc." Subject
to the limitations contained herein and in the
Authorizing Resolution, the final award of the Bonds to
the Purchasers is hereby delegated to the Mayor;
provided, however, that the Bonds shall not be awarded to
the Purchasers and issued unless, based upon the interest
rates the Bonds shall bear and the estimated rate of
interest upon which payments to be made by the City under
the Swap Agreement (as hereinafter defined), if any,
shall be computed, as determined by the Finance Director
taking into account interest rates in effect on the date
of award of the Bonds , the annual savings during the five
(5) year period immediately following the issuance of the
Bonds and the net present value savings over the term of
the Bonds, in each case resulting from the issuance of
the Bonds and the discharge of the Unfunded Actuarial
Accrued Liabilities, shall equal or exceed $600,000 and
$1,500,000, respectively."
SECTION 3. RATIFICATION OF SERIES RESOLIITION. Except as
amended hereby, the provisions of the Series Resolution are hereby
ratified and confirmed in all respects.
nog:~oasas.nocs.~isooss~x~so-ate. - 2 -
SECTION 4. TIME OF TAKING EFFECT. This Resolution shall take
effect immediately upon its adoption.
PASSED AND ADOPTED this 1st d
(SEAL)
Attest:
City Clerk
~~~~ APPROVES
LEGAL DEPT.
By ~ C 7
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~:~oasas.nocs.~n.~isooss~x~saa~. - 3 -
CITY OE MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. ~ S
February 1, 1995
To: Mayor Seymour Gelber and
Members of the City Commission
From: Roger M. Carlt
City Manager
Subject: Clarification of the Previous Authorization to Issue the Pension Obligation Bonds
Administrative Recommendation
The Administration recommends that the Mayor and City Commission adopt the resolution amending
the resolution authorizing the issuance of the Pension Obligation Bonds.
Back round
The resolution authorizing the issuance of the Pension Obligation Bonds was amended on the floor
of the Commission to include the minimum savings acceptable before such bonds would be issued.
This amendment required $600,000 in annual cash flow savings and a present value to the City in the
transaction of not less than $1,500,000. These amounts were stated in the accompanying Commission
Memorandum but with the $600,000 in annual cash flow savings being during the term of the swap
agreement (five years). The floor amendment to the authorizing resolution did not limit the annual
cash flow savings of $600,000 to the term of the swap agreement and required such savings in each
of the twenty-eight years that the bonds would be outstanding. The proposed bond issue will save a
minimum of $1,500,000 in present value savings but will not reduce cash flows to the pension
systems by $600,000 per year for each of the next twenty-eight years. This amending resolution
clarifies the floor amendment by requiring the $600,000 for the first five years.
Conclusion
The Administration requests this amendment to the amendment offered on the floor on the
Commission Meeting to clarify the intent of the amendment.
RMC/RJN/cp
AGENDA
ITEM ~~~'
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