98-22973 RESO
RESOLUTION NO. 98-22973
RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE ISSUANCE OF
NOT TO EXCEED $102,000,000 PRINCIPAL AMOUNT OF CITY OF
MIAMI BEACH HEALTH FACILITIES AUTHORITY HOSPITAL
REVENUE BONDS, SERIES 1998 (MOUNT SINAI MEDICAL CENTER
OF FLORIDA PROJECT), BY THE CITY OF MIAMI BEACH HEALTH
FACILITIES AUTHORITY, INCLUDING THE APPROVAL REQUIRED
BY SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED; PROVIDING THAT SAID BONDS SHALL NOT
CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF THE CITY
OR THE ST ATE OF FLORIDA OR ANY POLITICAL SUBDIVISION
THEREOF BUT SHALL BE PAYABLE SOLELY FROM THE
REVENUES PROVIDED THEREFOR; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Miami Beach Health Facilities Authority (the "Authority") was
created by Ordinance No. 90-2701 adopted on July 25, 1990 (the "Ordinance") by the Mayor and
City Commission of the City of Miami Beach, Florida (collectively, the "Commission") pursuant
to the Florida Health Facilities Authorities Law, Chapter 154, Part III, Florida Statutes, as
amended (the "Act"); and
WHEREAS, the Ordinance was amended by Ordinance No. 91-2738 adopted on April
10, 1991 by the Commission, Ordinance No. 92-2776 adopted on March 4, 1992 by the
Commission and Ordinance No. 97-3086 adopted on July 2, 1997 by the Commission and taking
effect on January 1,1998; and
WHEREAS, on November 3, 1998, as required by Section 147(f) of the Internal Revenue
Code of 1986, as amended (the "Code"), the Authority held a public hearing, for which there was
reasonable public notice published on October 19, 1998 in The Miami Herald (a copy of which
notice is attached hereto as Exhibit I and made a part hereof), for the purpose of giving all
interested persons an opportunity to express their views, either orally or in writing, or both, in
connection with the Authority's proposed issuance of its not to exceed $102,000,000 principal
amount of City of Miami Beach Health Facilities Authority Hospital Revenue Bonds, Series
1998 (Mount Sinai Medical Center of Florida Project)(the "Bonds") for the purposes hereinafter
described; and
WHEREAS, on November 17, 1998, the Authority adopted a resolution, a copy of which
is attached hereto as Exhibit II and made a part hereof (the "Bond Resolution"), authorizing,
under the provisions of the Act and the Florida Industrial Development Financing Act, Chapter
159, Part II, Florida Statutes, as amended, the issuance of the Bonds, the proceeds of which will
be loaned to Mount Sinai Medical Center of Florida, Inc., a not-for-profit corporation organized
under the laws of the State of Florida (the "Hospital"), and used, together with any other
available moneys, to (a) pay (or reimburse) the cost of certain capital improvements at the
Hospital's facilities (the "Project") (b) fund a debt service reserve for the Bonds and (c) pay
certain expenses in connection with the issuance of the Bonds; and
WHEREAS, the Ordinance, as amended, requires the approval by the Commission of all
bond issues of the Authority and Section 147(f) of the Code requires the approval by the
Commission of the issuance of the Bonds; and
WHEREAS, this Commission desires to approve the Bond Resolution and the issuance of
the Bonds pursuant thereto.
NOW, THEREFORE, BE IT RESOLVED BY THE MA YOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
Section 1. The Bond Resolution adopted by the Authority on November 17, 1998 and
the issuance of the Bonds pursuant thereto are hereby in all respects approved, includingr
2
approval of the issuance of the Bonds in a principal amount not to exceed $102,000,000 in
accordance with Section 147(f) of the Code.
Section 2. The Bonds and interest thereon shall not be deemed to constitute a debt,
liability or obligation of the City of Miami Beach, Florida or of the State of Florida or of any
political subdivision thereof, but shall be payable solely from the revenues referred to in the
Bond Resolution, and neither the faith and credit nor any taxing power of the City of Miami
Beach, Florida or of the State of Florida or of any political subdivision thereof is pledged to the
payment of the principal of, redemption premium, if any, or interest on the Bonds.
Section 3. This resolution shall take effect immediately upon its adoption.
ADOPTED this 18thday of Novrneber, 1998.
(SEAL)
1J1/1
.
Mayor
Attest:
~r fCLtdv-
City Clerk
APPROVED AS TO
FORM & LANGUAGe
& FOR EXecUTION
1tl~ 11j,?hO
..'~. 'A. 0 ey ~
3
EXHIBIT I
NOTICE OF PUBLIC HEARING
PUBLISHED DAIL Y
MIAMI-DADE-FLORIDA
Mljpej
~
..U.LIC H..'''UNG
Nonc. 0..
"u""c _A'UNG
".GA"DING TH.
""O"O..D'..UANC.
.Y TH. CITY OP MIAMI
"ACH _AL TH
FACILfT1lIi AUTHO"ITY
OFU"TO 'O'!._,~
HO.PIT L ".V.Nu.
1':8~~"f:::V.~1L
C.NT." OP PLO"IOA
""o.I.CT)
STATE OF FLORIDA
COUNTY OF DADE
.',: "t..";:-'!U PubiishingCompan)
is
. P~~:jl~.h:.,~.b:'i,i~::'-J
by the City ,ot,\1iarnl B~h
H..lth Fec:llitl_ Authority
~~~~=~~tl~~;n
commencing et q:OO 8.m., Oil
shortly there"'_. in the City
M.n~'. Conference
~=i' ~~~'Ffol:~~ 1700
Convention Cant... Drive. 4th
i Floor Miami S...:h. Flork:la.
331 39. f~ the purpo_ of L
provtdlng a '.._n~"
opportunJty for lnt...ted.
JMIraona to ellpr... tn.... I
vtew. both orally -.nd in
writing Cwhich muet be
rec:eiv-.d by t'" Authorltv:
~~::.~~=~t. ,n en
envelope. on the propoaed
i..uance by the Aut.honty of
it. City of Miami aeech
'H_'th Fee"itl.. Authority
Hoepita' R.venue Bonde.
Se,... 1 998 (Mount Sin.
Medical Cent_ of Fkw.cM
r:;i~!:f:;'i:j;n.":~~~:.of not
to ..ceed $102.000,000
(the "Sonda-'>>.
'wilT:: ~~:,~~;'-=
MediceI Cent<< of Ftorld.,
lnc.. Ithe "Medical C__t.,.").
. not-for-profit corporation
or~iEed under ,the 11tW'. at
the St8te of Florida. end will
::...=t =::'~if~;. ~:m
~= ~~;:~~=~~:=et of
=~i (iV":'~:-r:~~z:ct (iN>>
fund e debt ...-vtc. ,......-ve
for the 8Of'de. end liv' P8'V
~ain ..pen._ '"
connection with the i..uence
of the Bond..
,fol~~:;'lir,:,:;c:lti.t. of tM .
conetruetion. I.... nur....,g
home. opwllttng r~ tower
'=~r:.~ :'-::c! Arton
R08d. Miemi B--=h. Fk>>rlde
33140; end un ath_
con.tr\lC:tion involving
improvwnenta end
'==:~-:~i:)o =i:~j~1gn of
.dm'n..trat,..,. end he.rth
c.. equtpment such a.
comput_ t~h"oIagy.
Wlt.-ventionel procedures
eQuipm.nt and cercNec
cethet.nzatton .qu.pment;
.nd etv) tengib" ....t.
~e::t.::.:hVllici'" prectlce
The Protect wtlt be owned
by the MMic. Cent... end
c::'t~sP~:~~:::C~
m 4300 Atton Roed. Mlaf!'1i
B.ech. Ftotide 33140; hn
10.. Alton Roed. M"mt
Beech. FtoridlI 3313.; (lin
400 Anhur GodfNy. R_. I
~:;:i~~3~~~'7" .=-ri~i 820i
Arthur Godfr.Y' Roed. Mtem.
Beech. FlorhM 331.0. I
The Bond. and the interest
th....on sh'" not constitute al
th:b~~~I~~io~~on of,
Ftorlde. <<of the Stat. of
FIOf'~ 0# of any politiC"
subdiv.ston thereof. but shall
be JMIyeb" so'-y from tM
revenue. and kJen payment.
pay.eMe under _ toen
agreem.nt to be ent.-.d i~ta
by and between the Authority
end th. ~Icet C.nt..
Before the undersigned authority personally
appeared:
HIRAM LOPEZ
who on oath says that he/she is"
CUSTODIAN OF RECORDS
of The Miami Herald, a daily newspaper published at
Miami in Dade County, Florida; that the attached
copy of advertisement was published in said
newspaper in the issues of:
OCTOBER 19. 1998
Affiant further says that the said The Miami Herald
is a newspaper published at Miami, in the said Dade
County, Florida and that the said newspaper has
heretofore been continuously published in said Dade
County, Florida each day and has been entered as
second class mail matter at the post office in Miami,
in said Dade County, Florida, for a period of one
year next preceding the fltSt publication of the
attached copy of advertisement; and affiant further
says that he has neither paid nor promised any
person, fIrm or corporation any discount, rebate,
commission or refund for the purpose of securing
this advertisement for publication in the said
newspapers( s).
20th DAY OF
VlRGIN1A J CAI.LON
NOTARY PUBLIC SlATIl OF Pi.atJDA
NO. CC6a2828
M 155'.oN EXP. ocr. 17
"lyC
NO STENOGRAPHIC
RECORD BY A CERTIFIED
COURT RE"'ORTEA W1LL BE
MADE OF THE FOREGO_NG
MEETING. ACCORDINGLY.
ANY PERSON WHO MAY
SEEK TO APPEAL ANY
DEClstON INVOLVING THE
MATTERS NOTICED HEREIN
WILL 8E RESPONSIBLE FOR
MAKING A VERBATIM
RECORD OF THE
TESTIMONY AND
EVIDENCE AT SAID
MEETING UPON WHICH
ANY APPEAL IS TO BE
BASED,
IN ACCORDANCE WITH
THE AMERICANS WITH
DISABiliTIES ACT OF 1990.
PERSONS NEEDING ,
~~~'B:'~OOA TION TO'
PARTICIPATE IN THIS
HEARING SHOULD
CONTACT THE CITY OF
MIAMI BEACH CITY
CLERK'S OFFICE NO LATER
~) 1'2 -I hl)J l30;) 3;(1_:n;~~:~~:~f,!.gAYSPRIOA
TELEPHONE 13051
674-7411 IICOR
ASSISTANCE; IF HEAFlING
IMPAIREDI TELEPHONE THE
FlOllIOA RELAY SERVICE
~'6~re;s.(.~1 m::m.
(VOICE) FOR ASSISTANCE.
OCTOBER
1998
\" '1 ~! I
'.1 \1:,11111. F\"llcLl
ThiS notlc. is published
~f~~f~nt~ ~~(f,~~~~:menu
lnternel Aevenue Code of
1 98lS, a. em.nded.
Octo~ 19, 1998
CITY OF MIAMI BEACH
HEALTH FACILITIES
AUTHORITY
EXHIBIT II
BOND RESOLUTION
Library: Columbus; Document #: 42123v3
j<&rJ/{/(lolf/: Y 8-Z2 P 7 ~
Miami Beach, Florida
November 17, 1998
The City of Miami Beach Health Facilities Authority (the "Authority") met in public
session in the City Attorney's Conference Room, 4th Floor, City of Miami Beach City Hall, in
the City of Miami Beach, Florida, at 10:00 a.m. on November 17, 1998. Upon call of the roll,
the following were found to be present:
rho.. . n, '-4 c;. ~ I get. \i....,
(\-. /vc....l\c rl S e 'j e \
/tvth " "..... 5. ~ :" :)'<. Y'
Absent: /"b,""" Ii!.
It was announced by the Chairman that the purpose of the meeting included the adoption of a
resolution authorizing the issuance of City of Miami Beach Health Facilities Authority Hospital
Revenue Bonds, Series 1998 (Mount Sinai Medical Center of Florida Project), of the Authority
in an aggregate principal amount not to exceed $102,000,000.
Thereupon the following resolution was introduced in written form by the Chairman, the
title thereof was read in full, and pursuant to motion made by AYfi...,,,.... ~. VN~Q.V""
and seconded by Dr. NI.."\..tJ.u,.... S' ~se. \ , adopted by the following vote:
Aye: 011. (1'~c..e 1 ~vq
LV. ."'~~ J-l.~e.'
Avtn..V" 5". J.....':}Q~
Nay: {'oJc. rV "-
The resolution was thereupon declared and adopted, signed by the Chairman and attested
by {)v. ~,'- ~o...'" (~')v I . The resolution reads in full as follows:
A RESOLUTION (i) authorizing the issuance of City of Miami
Beach Health Facilities Authority Hospital Revenue Bonds, Series
1998 (Mount Sinai Medical Center of Florida Project) (the "Bonds")
of the City of Miami Beach Health Facilities Authority (the
"Authority") in an aggregate principal amount not to exceed
$102,000,000, for the purpose of providing funds to be used, together
with other available moneys, to: (a) pay (or reimburse) the cost of
certain capital improvements at the Hospital facilities (the "Project"),
(b) fund a debt service reserve for the Bonds and (c) pay certain
expenses in connection with the issuance of the Bonds, to be issued
under the provisions of a Trust Indenture and a Loan Agreement, and
to be further secured by a Master Trust Indenture, a Supplemental
Master Trust Indenture for Obligation No.2, an Obligation No.2 and
an Amended and Restated Guaranty and Security Agreement; (ii)
providing that the Bonds shall not constitute a debt, liability or
obligation of the City of Miami Beach, Florida or of the State of
Florida or of any political subdivision thereof but shall be payable
solely from the sources provided therefor under the Trust Indenture;
(iii) delegating to the Chairman, or in his absence, the Vice-
Chairman, the fixing of the terms of the Bonds and other details
within the parameters set forth herein; (iv) authorizing the execution
and delivery by the Authority of the Trust Indenture and the Loan
Agreement; (v) approving the forms of an Amended and Restated
Master Trust Indenture, the Supplemental Master Trust Indenture for
Obligation No.2, Obligation No.2 and the Amended and Restated
Guaranty and Security Agreement; (vi) authorizing the negotiated
sale of the Bonds and the execution and delivery by the Authority of a
Bond Purchase Agreement; (vii) appointing a Bond Trustee and Bond
Registrar under the Trust Indenture; (viii) approving the use of a
Preliminary Official Statement and an Official Statement and
authorizing the execution and delivery of the Official Statement; (ix)
authorizing the execution and delivery of additional documents
required in connection with the Bonds; (x) recommending approval
of the Bonds by the City Commission of the City of Miami Beach,
Florida; and (xi) providing for other related matters.
WHEREAS, the City of Miami Beach Health Facilities Authority (the "Authority") has
been created pursuant to Chapter 74-323, Laws of Florida, being Part III of Chapter 154 of the
Florida Statutes, as amended, known as the Health Facilities Authorities Law (the "Health Act"),
2
and has been determined to be needed by the City Commission (the "Commission") of the City
of Miami Beach, Florida (the "City") under Section 4 of the Health Act; and
WHEREAS, the Authority is also a "local agency" as defined in Section 3 of the Florida
Industrial Development Financing Act, being Chapter 69-104, Laws of Florida, and Part II of
Chapter 159 of the Florida Statutes, as amended (the "Industrial Act" and together with the
Health Act, the "Act"); and
WHEREAS, the Authority is authorized pursuant to the Act to issue its bonds and to loan
the proceeds thereof to "health facilities" as defined in the Health Act located in the City to pay
the cost of certain capital projects; and
WHEREAS, Mount Sinai Medical Center of Florida, Inc., a Florida not-for-profit
corporation (the "Hospital") is requesting the Authority to assist the Hospital in providing funds
to be used, together with other available moneys, to (a) pay (or reimburse) the cost of certain
capital improvements at the Hospital facilities as described in the Loan Agreement (hereinafter
defined) (the "Project"), (b) fund a debt service reserve for the Bonds (hereinafter defined) and
(c) pay certain expenses in connection with the issuance of the Bonds, through the issuance by
the Authority of not to exceed $102,000,000 principal amount of City of Miami Beach Health
Facilities Authority Hospital Revenue Bonds, Series 1998 (Mount Sinai Medical Center of
Florida Project)(the "Bonds"); and
WHEREAS, the Bonds will be issued under the provisions of a Trust Indenture (the
"Trust Indenture") to be entered into between the Authority and SunTrust Bank, Central Florida,
National Association, a national banking association, as trustee (the "Bond Trustee") and the
proceeds thereof will be loaned to the Hospital and their repayment secured by a Loan
3
Agreement (the "Loan Agreement") to be entered into between the Authority and the Hospital;
and
WHEREAS, the Hospital has previously entered into a Master Trust Indenture (as
previously amended and supplemented to the date hereof, the "Master Indenture") with Sun
Bank, National Association, now known as SunTrust Bank, Central Florida, National
Association, a national banking association, as master trustee (the "Master Trustee"), under
which the Hospital and certain other affiliated entities which may be included therein are jointly
and severally liable for the payment of obligations created thereunder, the form of which Master
Indenture was previously approved by the Authority in connection with the obligation previously
created thereunder in respect of the outstanding City of Miami Beach Health Facilities Authority
Hospital Revenue Refunding Bonds, Series 1992 (Mount Sinai Medical Center Project) (the
"Series 1992 Bonds"); and
WHEREAS, the Hospital intends to enter into an Amended and Restated Master Trust
Indenture (the "Restated Master Indenture") with the Master Trustee which, upon obtaining the
requisite consents under the provisions of the Master Indenture, will amend and restate the
Master Indenture; and
WHEREAS, in connection with the issuance of the Bonds by the Authority and the loan
of the proceeds thereof to the Hospital, the Hospital will enter into a Supplemental Master Trust
Indenture for Obligation No.2 ("Supplemental Indenture No.3") with the Master Trustee,
supplementing the Master Indenture, pursuant to which Obligation No.2 ("Obligation No.2")
will be issued securing the obligation of the Hospital to make payments under the Loan
Agreement in respect of the Bonds; and
4
WHEREAS, Mount Sinai Medical Center Foundation, Inc., a Florida not-for-profit
corporation (the "Guarantor") will guarantee to the Bond Trustee the payment of the principal of,
redemption premium, if any, and interest on the Bonds, all as more specifically set forth in an
Amended and Restated Guaranty and Security Agreement (the "Restated Guaranty Agreement"
and together with the Master Indenture, the Restated Master Indenture, Supplemental Indenture
No.3 and Obligation No.2, the "Security Documents") to be entered into between the Guarantor
and the Bond Trustee; and
WHEREAS, on November 3, the Authority held a public hearing in accordance with
Section 147(t) of the Internal Revenue Code of 1986, as amended, for which there was
reasonable public notice published on October 19, 1998 in The Miami Herald, for the purpose of
giving all interested persons an opportunity to express their views, either orally or in writing, or
both, on the proposed issuance of the Bonds; and
WHEREAS, the Authority desires to authorize the issuance of the Bonds for the above
described purposes and to recommend for approval to the Commission the issuance of the Bonds;
and
WHEREAS, the Authority further desires to authorize the sale of the Bonds by a
negotiated sale to Lehman Brothers Inc. (the "Purchaser") since the Hospital has requested such
negotiated sale to the Purchaser and since it appears to the Authority, for the reasons hereinafter
set forth, that a negotiated sale of the Bonds rather than a public sale by competitive bid, is in the
best interests of the Authority and the Hospital.
NOW THEREFORE, Be It Resolved by the City of Miami Beach Health Facilities
Authority as follows:
5
Section 1. Findings. The Authority hereby finds and determines that:
(I) The Hospital is a "health facility" within the meaning of Section 154.205(8) of the
Health Act and a "health care facility" within the meaning of section 159.27(16) of the Industrial
Act.
(2) The Project constitutes a "project", within the meaning of Section 154.205(10) of
the Health Act and Section 159.27(5) of the Industrial Act, located in the City.
(3) Pursuant to Sections 154.209(10) and 154.219 of the Health Act and Sections
159.28(7) and 159.34 of the Industrial Act, the Authority is authorized and empowered to issue
the Bonds for the purposes described herein.
(4) The issuance of the Bonds by the Authority for the purposes described herein will
serve a valid public purpose by advancing the commerce, welfare and prosperity of the City and
its people.
(5) The Authority and the City are each a "local agency" as defined In Section
159.27(4) of the Industrial Act.
(6) As required by Section 159.29(1) of the Industrial Act, the Project is appropriate to
the needs and circumstances of, and shall make a significant contribution to the economic growth
of, the local agency in which it is located and shall serve a public purpose by advancing the
public health of the State of Florida and its people.
(7) As required by Section 159.29(2) of the Industrial Act, the Authority has
determined that the Hospital is a financially responsible corporation fully capable and willing to
fulfill its obligations under the Loan Agreement, including the obligation to make payments in
the amounts and at the times required to pay the principal of, premium, if any, and interest on the
Bonds and other payments required under the Loan Agreement, to operate, repair and maintain at
6
its own expense the Project and to serve the purposes of the Industrial Act and such other
responsibilities as are imposed under the Loan Agreement.
(8) As required by Section 159.29(3) of the Industrial Act, the City, as the local agency
in which the Project will be located, will be able to cope satisfactorily with the impact of the
Project, and will be able to provide, or cause to be provided when needed, the public facilities,
including utilities and public services, that will be necessary for the construction, operation,
repair and maintenance of the Project and on account of any increases in population or other
circumstances resulting therefrom.
(9) As required by Section 159.29(4) of the Industrial Act, adequate provision shall be
made in the Loan Agreement for the operation, repair and maintenance of the Project at the
expense of the Hospital, and for the payment of the principal of, premium, if any, and interest on
the Bonds.
(10) As required by Section 159.29(5) of the Industrial Act, the costs of the Project to
be paid from the proceeds of the Bonds shall be "costs" of a "project" within the meaning of
Sections 159.27(2) and 159.27(5), respectively, of the Industrial Act.
(11) The Hospital has advised the Authority that the Hospital has previously obtained
from the Florida Agency for Health Care Administration any and all required certificates of need
with respect to the Project.
(12) Pursuant to Section 218.385 of the Florida Statutes, as amended, the sale of the
Bonds to the Purchaser on the basis of a negotiated sale rather than a public sale by competitive
bid is in the best interests of the Authority and the Hospital, and the Authority hereby further
finds and determines that the following reasons necessitate such sale of the Bonds to the
Purchaser through a negotiated sale:
7
(a) Bonds issued by public bodies for the benefit of not-for-profit hospitals
("health care bonds") generally involve specialized situations and transactions which need
detailed analysis, structuring and explanation throughout the course of the issue by
sophisticated financial advisors, underwriters, investment bankers and similar parties,
such as the Purchaser, experienced in the structuring of issues of health care bonds
(hereinafter referred to as "health care underwriters"), much of which would not generally
be available on a timely basis from the ultimate underwriter of health care bonds issued
pursuant to a public competitive sale.
(b) Health care bond issues generally involve a rather detailed and often
complicated explanation to potential investors of the structure of the issue, the nature of
the underlying obligor and the impact upon each of the foregoing of Federal and state
health care regulations, including Medicare and Medicaid practices and procedures, and
the assistance of a health care underwriter in preparing necessary offering memoranda,
official statements and related information is extremely desirable from the standpoint of
the obligor involved in the issue and from the standpoint of the public body issuing the
health care bonds in ensuring full and accurate disclosure of all relevant information.
(c) For the foregoing and related reasons, most of the health care bonds heretofore
issued throughout the United States have involved participation throughout the
structuring and offering process of health care underwriters who have purchased or
arranged for the purchase of the health care bonds through a negotiated sale rather than
through a public sale by competitive bid; accordingly, the market may well be more
receptive to an issue of health care bonds sold on a negotiated basis than to one sold by
competitive public sale.
8
(d) Finally, the market for health care bonds such as the Bonds is volatile,
making the presence of the Purchaser, who has participated and will participate in the
structuring of the Bond issue, desirable in attempting to obtain the most attractive
financing for the Authority and the Hospital.
Section 2. Authorization of the Bonds. There is hereby authorized the issuance, under
and pursuant to the Trust Indenture, of the Bonds, to be designated as "City of Miami Beach
Health Facilities Authority Hospital Revenue Bonds, Series 1998 (Mount Sinai Medical Center
of Florida Project), in an aggregate principal amount not exceeding $102,000,000, and the loan
of the proceeds thereof to the Hospital to pay (or reimburse) the cost of the Project, fund a debt
service reserve for the Bonds and finance costs of issuance thereof, including, without limitation,
fiscal, legal, and other costs and charges.
The principal of, premium, if any, and interest on the Bonds shall not be deemed to
constitute a debt, liability or obligation of the City or of the State of Florida or of any political
subdivision thereof, but shall be payable solely from the sources pledged therefor under the Trust
Indenture and neither the faith and credit nor any taxing power of the City or of the State of
Florida or of any political subdivision thereof is pledged to the payment of the principal of,
premium, if any, or interest on the Bonds.
Section 3. Terms of the Bonds. The Bonds shall be payable as to principal and interest
in lawful money of the United States of America in accordance with the provisions of the Trust
Indenture, and shall be issued only as fully registered bonds without coupons. The Bonds shall
be initially issued in book-entry-only form through The Depository Trust Company, New York,
New York ("DTC") and shall be registered in the name of Cede & Co. . The Chairman of the
Authority or, in his absence, the Vice Chairman of the Authority is hereby authorized on behalf
9
of the Authority to approve, subject to the limitations contained herein, the final terms of the
Bonds, which approval will be evidenced by the execution of the Bond Purchase Agreement
(hereinafter defined) on behalf of the Authority as provided herein.
The aggregate principal amount of the Bonds shall not exceed $102,000,000; the interest
rate on the Bonds shall not exceed 7% per annum; the term of the Bonds shall not exceed thirty-
five (35) years; the Bonds may be issued as serial and term bonds and may be subject to optional
and mandatory redemptions, with optional redemptions beginning not earlier than eight (8) years
from the date of issuance of the Bonds at a redemption price of not more than 103%; and the
Bonds may have original issue discount or premium. The Bonds shall be initially dated such date
as shall be approved by the Chairman, or in his absence, the Vice Chairman, and shall be
executed on behalf of the Authority with the official manual or facsimile signature of its
Chairman or, in his absence, its Vice Chairman and attested with the official manual or facsimile
signature of a Designated Member.
Section 4. Designation of Attesting Members. The members of the Authority, other
than the Chairman or Vice Chairman to the extent the Chairman or Vice Chairman execute the
documents described herein, (individually a "Designated Member") are each hereby designated
and authorized on behalf of the Authority to attest to the seal of the Authority and to the signature
of the Chairman or Vice Chairman of the Authority as they appear on the Bonds, the Trust
Indenture, the Loan Agreement and any other documents which may be necessary or helpful in
connection with the issuance and delivery of the Bonds and in connection with the application of
the proceeds thereof.
Section 5. Authorization of Execution and Delivery of Trust Indenture. The Authority
does hereby authorize and approve the execution by the Chairman or Vice Chairman and a
10
Designated Member of the Authority and the delivery of the Trust Indenture. The Trust
Indenture shall be in substantially the form thereof attached hereto and marked Exhibit A and
hereby approved, with such changes therein as shall be approved by the Chairman or Vice
Chairman executing the same, with such execution to constitute conclusive evidence of such
officer's approval and the Authority's approval of any changes therein from the form of Trust
Indenture attached hereto.
Section 6. Authorization of Execution and Delivery of Loan Agreement. The
Authority does hereby authorize and approve the execution by the Chairman or Vice Chairman
and a Designated Member of the Authority and the delivery of the Loan Agreement. The Loan
Agreement shall be in substantially the form thereof attached hereto and marked Exhibit B and
hereby approved, with such changes therein as shall be approved by the Chairman or Vice
Chairman executing the same, with such execution to constitute conclusive evidence of such
officer's approval and the Authority's approval of any changes therein from the form of Loan
Agreement attached hereto.
Section 7. Approval of Security Documents. The Authority does hereby approve the
forms of the Restated Master Indenture, Supplemental Indenture No.3, Obligation No.2 and the
Restated Guaranty Agreement. The Restated Master Indenture, Supplemental Indenture No.3,
Obligation No. 2 and the Restated Guaranty Agreement shall be in substantially the forms
attached hereto and marked Exhibits C, D, E and F, respectively, and hereby approved, with such
changes therein as shall be approved by the Chairman or Vice Chairman, with the execution of
the Trust Indenture by such officer to constitute conclusive evidence of such officer's approval
and the Authority's approval of any changes therein.
11
Section 8. Application of Bond Proceeds. The proceeds of the Bonds shall be applied,
with certain other available moneys, if any, as provided in the Trust Indenture and the Loan
Agreement.
Section 9. Authorization of Negotiated Sale. Pursuant to the findings in Section 1
hereof, the Authority does hereby authorize and approve the sale of the Bonds to the Purchaser
on the basis of a negotiated sale rather than a public sale by competitive bid.
Section 10. Authorization of Execution and Delivery of Bond Purchase Agreement. The
sale of the Bonds in an aggregate principal amount of not to exceed $102,000,000 to the
Purchaser, at an aggregate purchase price reflecting an underwriter's discount of not to exceed
1.20% of the aggregate principal amount of the Bonds plus accrued interest thereon from the
dated date of the Bonds to the date of delivery thereof, in accordance with a Bond Purchase
Agreement (the "Bond Purchase Agreement") among the Authority, the Hospital and the
Purchaser, is hereby in all respects authorized and approved and there shall be executed on behalf
of the Authority in furtherance thereof the Bond Purchase Agreement with the Purchaser and the
Hospital. The Authority does hereby authorize and approve the execution and delivery of the
Bond Purchase Agreement on behalf of the Authority by its Chairman or Vice Chairman and
such Bond Purchase Agreement shall be in substantially the form thereof attached hereto and
marked Exhibit G and hereby approved, with such changes as shall be necessary and appropriate
to reflect the final terms of the sale of the Bonds by the Authority to the Purchaser and such
further changes therein as shall be approved by the Chairman or Vice Chairman executing the
same, with such execution to constitute conclusive evidence of the award of the Bonds to the
Purchaser and of such officer's approval and the Authority's approval of any changes therein
from the form of Bond Purchase Agreement attached hereto; provided that the Bond Purchase
12
Agreement shall comply with the provisions of this resolution and that the final terms of the
Bonds contained in the Bond Purchase Agreement shall be within the parameters established in
this resolution. Prior to the execution of the Bond Purchase Agreement by the Authority, the
Authority must be presented with a disclosure statement prepared by the Purchaser in compliance
with Section 218.385, Florida Statutes, which disclosure statement shall be filed in the records of
the Authority.
Section 11. Appointment of Bond Trustee and Bond Registrar. SunTrust Bank, Central
Florida, National Association, Orlando, Florida, is hereby appointed the Bond Trustee and bond
registrar (the "Bond Registrar") under the Trust Indenture.
Section 12. Approval of Preliminary Official Statement. The Preliminary Official
Statement of the Authority and the Hospital relating to the Bonds (the "Preliminary Official
Statement"), in substantially the form thereof attached hereto and marked Exhibit H, with such
changes as shall be necessary and appropriate to reflect the expected terms of the Bonds and to
ensure accurate disclosure of all relevant information, and its use by the Purchaser in connection
with the offering and sale of the Bonds is hereby in all respects approved. The Chairman or the
Vice Chairman of the Authority is hereby authorized to make any necessary findings and deliver
any required certifications with respect to the Preliminary Official Statement as required under
Securities and Exchange Commission Rule l5c2-12.
Section 13. Approval and Authorization of Official Statement. The Authority hereby
approves the Official Statement of the Authority and the Hospital relating to the Bonds (the
"Official Statement") in substantially the form of the Preliminary Official Statement attached
hereto and marked Exhibit H, with such changes as shall be necessary and appropriate to reflect
the final terms of the Bonds and to ensure accurate disclosure of all relevant information or as
13
shall be deemed necessary or desirable by the Chairman or Vice Chairman. The Chairman or
Vice Chairman is hereby authorized and empowered, for and on behalf of the Authority, to
execute and deliver the Official Statement, such execution to be conclusive evidence of such
officer's and the Authority's approval of the final form of the Official Statement.
Section 14. Delivery of the Bonds. Upon the execution of the Bonds in accordance with
the provisions of the Trust Indenture, the Chairman or the Vice Chairman shall deposit the same
with the Bond Registrar for authentication and delivery upon the order of the Purchaser. The
Bond Registrar is hereby requested to authenticate and deliver the Bonds in accordance with the
Trust Indenture.
Section 15. Authorization of Execution and Delivery of Certain Additional Documents.
The Authority does hereby authorize the subsequent execution and delivery of such additional
documents as may be required in connection with the issuance and sale of the Bonds and the
application of the proceeds thereof, in such form or forms and with such party or parties as shall
be approved by the Chairman or Vice Chairman, including, without limitation, a letter of
representations from the Authority to DTC.
Section 16. Authorization and Ratification of Subseauent Acts. The members, officers,
agents and employees of the Authority are hereby authorized and directed to do all such acts and
things and to execute all such documents, including, without limitation, the execution and
delivery of any closing documents, as may be necessary to carry out and comply with the
provisions of this resolution, the documents attached hereto as Exhibits A through H,
respectively, and any documents executed and delivered pursuant to Section 15 hereof, and all of
the acts and doings of such members, officers, agents and employees of the Authority which are
14
in conformity with the intent and purposes of this resolution, whether heretofore or hereafter
taken or done, shall be and are hereby ratified, confirmed and approved.
Section 17. Recommendation to the City of Miami Beach. Florida. Having conducted a
public hearing on November 3, 1998 pursuant to the provisions of Section 147(f) of the Internal
Revenue Code of 1986, as amended, for the purpose of giving all interested persons an
opportunity to express their views, either orally or in writing, or both, on the proposed issuance
of the Bonds, for which hearing reasonable public notice was given, the Authority hereby
recommends that the Commission approve the issuance of the Bonds.
Section 18. Severability. If any section, paragraph, clause or provision of this resolution
shall be held to be invalid or ineffective for any reason, the remainder of this resolution shall
continue in full force and effect, it being expressly hereby found and declared that the remainder
of this resolution would have been adopted despite the invalidity or ineffectiveness of such
section, paragraph, clause or provision.
15
Section 19. Effective Date. This resolution shall take effect immediately upon its
adoption, and any provisions of any previous resolutions in conflict with the provisions herein
are hereby superseded.
Adopted this 17th day of November , 1998.
(SEAL)
ATTEST:
,(/~ "';r/-:;-7
~-~l7c~:_______,
Chairman
16
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE )
We, the undersigned, do hereby certify that we are duly qualified and acting Members of
the City of Miami Beach Health Facilities Authority (the "Authority").
We further certify according to the official records of the Authority in our possession that
the above and foregoing constitutes a true and correct excerpt from the minutes of the meeting of
the Authority held on November 17, 1998, including a resolution adopted at said meeting, insofar
as said minutes pertain to the matters above set out.
We further certify that the ayes and nays taken on the passage of said resolution have
been or will immediately be entered on the minutes of the Authority and that provision has been
made for the preservation and indexing of said resolution, which is open for inspection by the
public at all reasonable times at the office of the Finance Director in the City of Miami Beach,
Florida.
17
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the official seal of
the Authority this 17th day of November, 1998.
4Mg
Chairman
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[SEAL]
SUBSCRIBED AND SWORN to before me, a Notary Public in the State and County
aforesaid, this 17th day of November, 1998.
~~
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tary Public
My Commission expires: 1-[ ~ - J.()O I
[Notarial Seal]
Q. PINDER
Notary Public - State of Florida
My Commission Expires Ju113, 2001
Commission # CC M,3096
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18
EXHIBITS A THROUGH H ON FILE WITH THE AUTHORITY
Columbw; 00aIment .: 42099v3