Ordinance 615 ,
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ORDINANCE NO. 615 • 1
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AN OR.DIANCE PROVIDING FOR THE CONSTRUC=
5I0F, OPERATION AND MAINTENANCE OF A -\(1.0 • bc0
MUNICIPAL HOSPITAL FOR THE CITY OF MIAI
BEACH, DADE COUNTY, FLORIDA; FOR THE
ISSUANCE OF : 500,000 MUNICIPAL HOSPITAL
REVENUE BONDS OF SAID CITY TO PAY THE
COST OF CONSTRUCTING AND E ,UIPPING SUCH
HOSPITAL, AND PROVIDING FOR THE SEGRE-
GATION AND ALLOCATION OF REVENUES FOP. THE
PAYMENT OF THE COSTS OF OPERATING AND
MAINTAINING SUCH HOSPITAL AND PAYING THE
INTEPEST ON AND P=INCIPAL OF SAID HOSPITAL
REVENUE CEFTIFICATES AS THE SAME BECOME DUE.
WHEREAS the City of Miami Beach, . a municipal corporation
duly organized and operating under the constitution and. laws of
the State of Florida is, pursuant to said constitution and laws
and particularly its legislative charter, authorized among other
things to acquire real and personal property for the benefit of
the City, its citizens and its winter and summer visitors and to
constrict and operate property, including hospitals , for revenue
and to charge reasonable fees for privileges- afforded, and is
further authorized to borrow money in connection with any such
undertaking and to provide and enforce rules for the manner and
time of payment of any service supplied by said City and to limit
the use of and conditions under which any of such services may
be supplied; and
WHEREAS said City is in like manner authorized and. re-
quired to provide for the preservation of the general health of
the inhabitants of said City, to prevent the introduction of
contagious or infectious diseases and prevent and suppress
diseases generally and enforce the removal of persons afflicted
with contagious or infectious diseases to hospitals or places
of isolation provided by said City, and to establish and equip
hospitals and prescribe rules and regulations respecting the
poor, indigent, infirm and insane and do or regulate any other
matter or thing that may tend to promote the health, welfare,
prosperity and morals of the City, and to do and perform all
things necessary for the government of the City not inconsistent
with the constitution and laws of the United States , the consti-
tution of Florida and the terms and the provisions of the charter
law of said City; and
WHEREAS the discharge of the duties and obligations of
said City with respect to the hospital care of the poor, indigent,
infirm and the employees of the City injured in performance of
their duties has required the expenditure of large sums by said
City each year from its corporate funds which amount approximated
S35 ,000 for the past year, and the required amount to be expended
for that purpose in future years will not be less but rather
will be more by reason of constant increase in population of the
City, and it has been determined to be advisable that said City
construct , equip, operate and maintain a municipal hospital for
the care of such persons and any other persons that may require
the services of such hospital on a pay-patient basis ; and
WHEREAS, in addition to all of the foregoing, said City
is , in and by the provisions of Chapter 21401 of the Acts of the
Legislature of Florida, 1941, authorized to construct, equip,
operate and maintain hospitals and to issue bonds to finance the
cost of such construction and equipment and secure the payment of
such bonds as to both principal and interest solely by a, pledge
of revenues to be derived from the operation of such hospital;
and
WHEREAS it is necessary and for the best interests of
said City that a. municipal hospital be constructed and equipped . , / -
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and that for the purpose of paying the cost thereof there be
borrowed the sum of 4500,000, to be evidenced by revenue bonds
as hereinafter provided, and that the control and operation of
such hospital be carried out by a Board of Trustees hereinafter
provided to be appointed and constituted;
NOW, THEREFORE, Be It Ordained by the City Council of
the City of Miami Beach, Dade County, Florida, as follows:
Section 1. That there be and there is hereby ordered
constructed, equipped, operated and maintained in and for the City
of Miami Beach, a municipal hospital as referred to in the pre-
amble hereof, and that , for the purpose of paying the cost of
constructing and equipping such hospital, there be and there are
hereby ordered issued Municipal Hospital Revenue Bonds of said
City in the aggregate principal amount of $500,000 of the denomina-
tion of $1,000 each, to be numbered consecutively from 1 to 500,
inclusive, dated December 1, 1941, bearing interest at the coupon
rate of three and one-half per cent (31-A) per annum, payable
semi-annually on the first days of June and December of each year,
and maturing in numerical order on December 1 of the respective
years as follows:
Year Amount Year Amount
1944 415,000 1954 $23,000
1945 17 .000 1955 24,000
1946 18,000 1956 25,000
1947 18,000 1957 26,000
1948 19,000 1958 27,000
1949 19,000 1959 28,000
1950 20,000 1960 29,000
1951 21,000 1961 30,000
1952 22,000 1962 31,000
1953 22,000 1963 32,000
1964 33,000
provided, however, bonds numbered 171 to 500, inclusive, as afore-
said, shall be subject to redemption by said City prior to maturity,
in whole or, from time to time, in part in the inverse order of
numbering thereof, on any interest payment date on or after Decem-
ber 1, 1952, and in the event of redemption of any of said bonds
notice thereof identifying the bonds to be redeemed shall be given
by publication at least once during each of two consecutive
calendar weeks, the first of such publications to be not less than
thirty days prior to such redemption date in a newspaper or
financial journal of general circulation published in Dade County,
Florida, and one published in the City of New York, New York. It
is further agreed that should any of said bonds be redeemed prior
to maturity as aforesaid said City will pay to the respective
holders upon surrender of the bonds interest represented by the
coupons thereto attached which have accrued as of the redemption
date, and additional interest in an amount equal to three per
cent (3A) of the principal amount of such bonds WO per 41,000 par
value) if redeemed during the years 1952 or 1953; two per cent (2f )
of the principal amount of such bonds W20 per 31,000 par value ) if
redeemed during the years 1954 or 1955; one per cent (1A) of the
principal amount of such bonds ( 10 per 51, 000 par value) if
redeemed during the years 1956 or 1957; and at no additional in-
terest (par) if redeemed on any interest date thereafter.
Interest at the rate of three and one-half per cent (3-1-10) as
aforesaid shall be evidenced by coupons attached to each of said
bonds, and both principal and interest be payable in lawful money
of the United States of America, at the principal office of
The Chemical Bank & Trust Company in the City of New York, New
York. Each of said bonds shall be executed and signed on behalf
of said City by its Mayor, attested by its City Clerk, and the
official seal of said City shall be affi:red thereto. The interest
coupons attached to said bonds shall be executed with the facsimile
signatures of said Mayor and City Clerk, and said officials by
the execution of said bonds shall thereby adopt as and for their A
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o n proper signatures their respective facsimile signatures
appearing on eacz of said coupons.
Section 2. All of said bonds , togetier with the
interest thereon , shall be payable solely from and secured only
by revenues of the hospital, all as hereinafter more specifically
provided. The 'tMunieipal Hospital Revenue Bond Fund, " hereinafter
created, as well as all funds which are or should in accordance
with the terms hereof be paid into said fund are hereby pledged
for the purpose of equally securing, in priority to any other
obligations of said City, the pro rata payment of both the prin-
cipal of and interest on the bonds authorized by this ordinance
and from time to time outstanding, and the equal pro rata benefit ,
security and protection of the holders of said bonds and the
coupons attached thereto.
Section . That upon presentation at the office of the
City City Clerk of the Cit of Miami Beach of any of said bonds, such
bonds may be registered as to principal in the name of the holder
thereof on the books of the City to be kept for that purpose,
which registration shall be noted on the back of the bonds so
registered, and thereafter the principal of the bonds so regis-
tered shall be paycble only to the registered holder, his legal
representatives or assigns. Bonds so registered may be trans-
ferred to another registered holder or to bearer upon presentation
to the City Clem. with a legal assignment duly acknowledged or
proved. Registration of any of said bonds as to principal shall
not affect the transferability of the coupons thereto attached,
and such coupons shall continue to be transferable by delivery.
Each and every successive holder of any or all of said bonds during
such time as they are payable to bearer, and such holder of each
of such coupons thereto attached, shall be conclusively presumed
to forego and renounce his and their equities in favor of subse-
quent holders for value without notice , and to agree that said
bonds while so payable to bearer, and each of the coupons thereto
attached, may be negotiated by delivery by any person having
possession thereof, howsoever such possession may have been ac-
quired, and that any holder who shall have taken any of said bonds
or any of the coupons from any person for value and without notice
thereby has acquired absolute title thereto, free from any defenses
enforceable against any prior holder and free from all equities
and claims of ownership of any such prior holder, and the City of
Miami Beach and its officials, and the paying agent , shall not be
affected by any notice to the contrary.
Section 4. That each of said bonds and coupons attached
thereto, and provisions for registration appertaining thereto,
shall be in substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF DADE
CITY OF I+iIAmI BLACK
MUNICIPAL HOSPITAL nEVENUE BOND
Number 31,000
KNOW ALL MEN BY ThreoE PRESENTS that the City of Miami
Beach, in the County of Dade and State of Florida, for value
received, hereby promises to pay to the bearer hereof or, if this
bond be registered as hereinafter provided, to the registered
holder hereof, solely from the special fund hereinafter provided,
the sum of One Thousand Dollars ($1,000) on the first day of
December, 19 , and from said special fund to pay interest thereon
at the rate of three and one-half per cent (3e%) per annum, pay- 4 .
ii.able semi-annually on June 1 and. December 1 of each year until is
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paid except as the provisions hereinafter set forth with respect
to prepayment and redemption may be applicable hereto, such
interest as aforesaid as may accrue prior to the maturity date of
this bond to be payable only upon presentation and surrender of
tyle annexed interest coupons as the same severally become due;
both principal and interest being payable in lawful money of the
United States of America at the principal office of The Chemical
Bank & Trust Company, in the City of New York, New York.
This bond is one of a duly authorized issue aggregating
4500,000 principal amount , and has been issued by said City of
Miami Beach pursuant to the Constitution and laws of the State of
Florida including the legislative charter law of said City and
as provided by an ordinance duly adopted by the City Council of
said City for the purpose of paying the cost of constructing and
equipping a municipal hospital in and for said City. The bonds
of said authorized issue, together with all interest thereon, are
payable solely from revenues to be derived from the operation of
said municipal hospital, a sufficient portion of which revenues ,
exclusive of the amount of such revenues required for operation
and maintenance of said hospital, has been ordered set aside as
a special fund and pledged for that purpose. Under the provisions
of said ordinance authorizing the issuance of this bond there
shall be set aside into said special fund out of the revenues
derived from the operation of said hospital, after provision for
payment of all costs of operation and maintenance thereof, such
sums as shall be sufficient for the payment of the principal of
and interest on this bond and all other bonds outstanding under
the provisions of said ordinance.
Said City hereby reserves the right from time to time
to redeem bonds numbered 171 to 500, inclusive, of the issue of
which this bond is one, prior to maturity, as a whole or, from
time to time, in part in the inverse order of their numbering
on any scheduled interest payment date on or after December 1,
1952, and in the event said City exercises such right of redemp-
tion, it is agreed that interest , in addition to that represented
by the coupons hereto attached, which has accrued as of the
redemption date, will be paid to the holder of the respective
bonds upon surrender thereof in an amount equal to three per
cent (3%) of the principal amount of such bonds ($30 per 1,000
par value) if redeemed during the years 1952 or 1953 ; two per
cent (2%) of the principal amount of such bonds ($20 per $1,000
par value) if redeemed during the years 195+ or 1955; one per
cent (1%) of the principal amount of such bonds ($10 per 41,000
par value) if redeemed during the years 1956 or 1957; and at no
additional interest (par) if redeemed on any interest date
thereafter.
Notice of the exercise of such right of redemption,
identifying the bonds to be thus redeemed, will be published at
least once during each of two consecutive calendar weeks in a
newspaper or financial journal of general circulation published
in Dade County, Florida., and one published in the City of New
York, New York, the first of such publications to be not less
than thirty days prior to the redemption date. All such bonds,
as to which said City reserves the right of redemption and as to
which notice as aforesaid shall have been given and for the re-
demption of which, upon the terms aforesaid, funds have been
provided., will cease to bear interest on the redemption date.
This bond is neither payable: from nor a charge upon any
funds other than the revenues of the hospital pledged to the
payment thereof, as provided in the ordinance pursuant to which
this bond has been issued, and no holder or owner hereof or of any
of the interest coupons hereunto appertaining shall aver have the
right to compel any exercise of the taxing power of said City to
pay this bond nor the interest thereon, nor enforce payment
against any property of said City, nor shall this bond constitute
a charge, lien or encumbrance upon any property or credit of said
City other than the revenues of said hospital, as aforesaid.
This bond does not represent nor constitute an indebtedness of the
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City of Miami Beach within. the meaning of any constitutional
provision or limitation.
This bond may be registered as to principal in the name
of the holder on the books of said City in the office of its City
Clerk, such registration to be noted on the back hereof by such
City Clerk, after which no transfer hereof shall be valid unless
made on said books and similarly noted on the back hereof, but
this bond may be discharged from registration by being transferred
to bearer, after which it shall again be transferable by delivery
but may be again registered as before. The registration of this
bond as to principal shall not restrain the transferability by
delivery merely of the coupons hereto attached. Each and every
successive holder of this bond during such time as it is payable
to bearer and each holder of each of the coupons hereto attached
are conclusively presumed to forego and renounce his and their
equities in favor of subsequent holders for value without notice ,
and to agree that this bond while so payable to bearer and each
of the coupons hereto attached may be negotiated by delivery by
any person having possession thereof, howsoever such possession
may have been acquired, and that any holder who shall have taken
this bond or any of the coupons from any person for value and
without notice thereby has acquired absolute title thereto, free
from any defenses enforceable against any prior holder and free
from all equities and claims of ownership of any such prior holder,
and the City of Miami Beach and its officials, and the paying
agent , shall not be affected by any notice to the contrary.
It is hereby certified, recited and declared that all
acts , conditions and things requiredto exist , happen and be per-
formed precedent to and in the issue of this bond do exist, have
happened and have been performed in the manner and form required
by law; that said City will cause the municipal hospital for the
account of which this bond has been issued to be continuously
operated as a revenue producing undertaking; that a schedule of
rates for the use , occupancy and services of said hospital will
be fixed, revised, charged, collected and accounted for so that
the revenues will be sufficient to pay the cost of maintaining
and operating the hospital (including costs of insurance thereon)
and to pay promptly when due the interest on all of the bonds and
to redeem and fully discharge all of said bonds at or prior to
maturity thereof; that a sufficient amount of the revenues derived
from the operation of the hospital has been pledged to and will be
set aside each year into a special fund created and identified
as the "Municipal Hospital Revenue Bond Fund" for the purpose of
paying the interest on this bond and the issue of which it is a
part , and redeeming and fully discharging said bonds at or prior
to the maturity thereof; and that the amount of this bond, to-
gether with all other obligations of said City, does not exceed
any limitation prescribed by law.
IN WITNESS WHEREOF, the said City of Miami Beach has
caused this bond to be executed on its behalf by its Mayor,
attested by its City Clerk, and its corporate seal to be hereunto
affixed, and the interest coupons attached hereto to be executed
with the facsimile signatures of said Mayor and City Clerk, all
as of the first day of December, 1941.
Attest : Mayor
City Clerk
(Form of Coupon)
Number $17. 50
.
On the first day of , 19_, the City of i
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Miami Beach, in Dade County, Florida, will pay to bearer Seventeen
Dollars and Fifty Cents (317. 50) in lawful money of the United
States of America at The Chemical Bank & Trust Company, in the
City of New York, New York, as provided in and being interest due
that day on its Municipal Hospital Revenue Bond, dated December
1 , 1941, Number
Attest : Mayor
City Clerk
(Form for Registration Blank)
Date of Name of Signature of
Registration Registered Holder City Clerk
Section 5. That the bonds hereby authorized be executed
as herein provided as soon after the adoption of this ordinance
as may be and shall thereupon be sold and delivered to Leedy,
Wheeler & Co. and Atwill and Company, pursuant to the agreement
heretofore entered into under date of October 4, 1941, the terms
and conditions of which agreement are in all respects hereby
ratified and confirmed. All sums received as accrued interest in
the issuance and delivery of said bonds and a sufficient portion
of the proceeds to be equal to the interest to accrue on the bonds
prior to completion of the hospital shall be paid into the
"Municipal Hospital Revenue Bond Fund. "
From and after the completion of the hospital as herein-
before provided it shall be continuously operated as a revenue
producing undertaking and the income and revenues therefrom shall
be set aside daily as collected into a special and separate fund
to be used and applied in the payment of the expenses of its
operation and maintenance and to pay the interest on and principal
of the bonds hereby authorized as may be outstanding, which
revenues shall be apportioned as follows, to wit:
There shall be and there is hereby created, and so long
as any of said bonds remain outstanding there shall be maintained,
an account to be known as the "Municipal Hospital Operation and
Maintenance Account" and into which there shall be paid during
each month an amount sufficient for the purpose of paying all
reasonable and normal expenses of operation and maintenance of
the hospital for such month and which shall be used for that
purpose and no other; but if in any month for any reason there be
a failure to pay the required amount into said account , then the
amount of any deficiency shall be added to the amount otherwise
required to be paid into said account in the next succeeding
month. Fixed annual charges suchas insurance and the cost of
major maintenance expenses shall be computed and set up on an
annual basis and one-twelfth of the amount thereof shall be
charged and accumulated each month.
There shall be and there is hereby created a special
fund to be known as the "Municipal Hospital Revenue Bond Fund"
(hereinafter called the "sinking fund") , into which there shall
be set apart and paid from the balance of said revenues, amounts
sufficient to pay the interest on and principal of the bonds
as the same become due, and it is hereby determined that rates f1
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and charges for use, occupancy and services of the hospital shall
at all times be such as will permit the following minimum amounts
to be so set apart and paid into said sinking fund during the
periods of twelve mont:ls preceding December 1 of the respective
years :
(1) A sum equal to one hundred per cent (100%) of
the principal of all bonds maturing on or prior to
December 1 next succeeding, plus (2 ) a sum- equal to one
hundred per cent (100%) of the interest on all outstand-
ing bonds becoming due on or prior to December 1 next
succeeding, and (3) in addition to the foregoing a sum
equal to ten per cent (100) of the total of the amounts
defined by (1) and (2) , payment of such additional amount
to be continued until there is accumulated in such
sinking fund as a reserve an amount equal to interest
for two years on the bonds outstanding.
No further payments need be made into said sinking fund when and
so long as the amount therein (including the reserve) is suffi-
cient to retire the bonds then outstanding plus the amount of
interest due and thereafter to become due on said bonds on and
prior to such retirement.
All moneys held in said sinking fund shall be kept apart
from all other municipal funds and shall be deposited in banks,
and all such deposits in excess of $5,000 shall be continuously
secured by a valid pledge of at least an equivalent principal
amount of direct obligations of the United States Government ;
provided, however, that the provisions of the charter law of said
City governing the deposit of City funds shall always be observed
in the deposit of the moneys in said sinking fund.
Such payments shall be set apart and paid into said
sinking fund monthly on the first day of each month, except that
when the first day of any month shall be a Sunday or legal holiday,
then such payments shall be made on the next succeeding secular
day. Said sinking fund, as hereinabove provided, shall be used
solely and only, and is hereby pledged , for the purpose of
paying the bonds hereby authorized or permitted to be issued,
together with interest thereon, and for no other purpose whatso-
ever.
Not less than fifteen days prior to each interest pay-
ment date there shall be withdrawn from the sinking fund and
remitted to the place of payment a sufficient amount to pay the
interest and principal (if any) becoming due on such bonds on
such succeeding interest payment date. If and when bonds are
called for redemption prior to maturity as hereinbefore provided,
funds sufficient to accomplish sucei redemption shall also be
withdrawn and remitted as aforesaid in ample time prior to the
redemption date .
Section 6. That it is hereby recognized that the value
of services and benefits to be rendered by said hospital to the
City of Miami Beach as a whole in furnishing hospital care to
the poor, indigent, infirm and other charity patients , as well
as to employees of the City injured while engaged in the perform-
ance of their duties, will be not less than $35,000 per year, and
it is therefore hereby covenanted and agreed on behalf of said
City to pay not less than that amount each year for the services
aforesaid to be furnished by said hospital, such payments to be
made in semi annual installments on May 15 and November 15 of
each year, provided, however, if on May 15 or November 15 of any
year there be insufficient funds in the sinking fund to pay the
interest on and principal ( if any) becoming due on the next
succeeding June 1 or December 1 respectively of the bonds hereby
authorized, then the City shall take credit on such payment due
from the City for the services aforesaid by depositing all or
such portion of the amount so due as will be equal to the de-
ficiency directly into the sinking fund so that the City will
thereby be assured of continued use and occupancy of the hospital
free of any interference by any bondholder. 4
Section Z. That , in order to provide for the efficient0;1
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operation of the hospital when constructed, the management and
control thereof shall be carried on by a Board of Trustees con-
sisting of nine (9) members who shall be persons of outstanding
reputation for business ability and integrity and who shall be
appointed in the first instance by the City Manager with the
consent and approval of the City Council of said City. These
trustees shall be appointed to serve as long as any of the bonds
herein authorized remain outstanding and unpaid. Trustees will
be subject to removal from office only on proof of malfeasance,
misfeasance or non-feasance. Such removal shall take effect after
a full hearing before the trustees and upon a majority vote of
that body. In_ the event of a vacancy of any appointed trustee,
a successor shall be appointed by the trustees themselves. Any
person who shall have held an elective office of said City shall
not be eligible for appointment as such trustee until at least
one year after the expiration of the term for which he was elected.
A majority of said trustees at any meeting shall constitute a
quorum and the Board may adopt rules and by-laws for the time
and place of its meetings and the conduct thereof. Each trustee
shall receive compensation for his services at the rate of not
more than $5.00 per meeting attended, as may be fixed from time
to time by the City Council, with a maximum compensation to each
trustee in any one year of $100.00.
At the first meeting of the Board of Trustees, and
annually thereafter, it shall organize by designating one of the
trustees to act as chairman and by the appointment of a secretary.
Section 8. An Annual budget of expenses of operation
and maintenance of the hospital shall be prepared by the Board of
Trustees which, after the first year of operation, shall be based
upon the experienced percentage of occupancy, revenues and ex-
penses, and for the first year shall be based upon percentage of
occupancy, revenues and expenses approved by an independent
architect or engineer experienced in hospital operation. Not
less than ninety (90) days prior to the beginning of eaca fiscal
year of the City a "Proposed Annual Budget" shall be prepared and
submitted to the City Council of said City by the Board of Trustees
of the hospital covering the anticipated monthly requirements
and expenditures for operation and maintenance of the hospital
and the anticipated revenues from the operation of the hospital
during the ensuing fiscal year. Such budget shall be prepared
so as to show revenues sufficient to pay all operating and
maintenance expenses as well as annual interest and principal
requirements for the bonds hereby authorized. A copy of such
proposed annual budget shall, at least sixty days prior to the
beginning of such ensuing fiscal year, be mailed to any bond-
holder who may have theretofore requested same. If the holder or
holders of five per cant (5A or more of the aggregate principal
amount of revenue bonds then outstanding shall so request, at
least thirty days prior to commencement of the fiscal year the
City Council shall hold a public hearing on such proposed annual
budget , at which hearing any person in interest may appear and
file written objections. If no objections are filed by any bond-
holders, or if such objections are filed then after the hearing
thereon, the budget may be approved by the City Council and same
shall constitute the operating budget for the hospital for the
year for which prepared. The rates and charges for use, occupancy
and services shall be fixed and maintained so that based on
anticipated percentage of use, occupancy and services, ascertained
as aforesaid, the revenues each year will be sufficient to balance
with the respective annual budgets. The total expenditures in
any fiscal year shall not exceed the respective items as shown
by the annual budget for such year, and if for any reason beyond
the control of the City an annual budget shall not have been
finally appr.)ved. bef,)re the commencement of the fiscal year, the
budget for the preceding fiscal year shall control until the
prepared budget for such year has been approved. The unexpended
and unappropriated balance of revenues in excess of the budget
for any year may after the close of such year be withdrawn,
transferred and expended as the City Council of said city may
from time t o time direct , including the purchase of Miami Beach
Hospital Revenue bonds in the ooen market .
..
The bond redemption and interest payments shall
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constitute a direct charge and lien on the required portion or
amount of net revenues received from the use, occupancy and
services of the hospital, and all revenues paid into the sinking
fund shall constitute a trust fund for the security and payment
of such bonds and shall not be used or pledged for any other
purpose.
Section 2. That the City covenants and agrees that so
long as any of the bonds hereby authorized remain outstanding
proper books of record and account will be kept separate from all
other records and accounts showing complete and correct entries
of all transactions relating to the hospital, and that the holder
or holders of any of said bonds shall have the right at all
reasonable times to inspect all records, accounts and data relat-
ing thereto. The City further covenants and agrees that it will
in each year, so long as any of said bonds remain outstanding,
cause an audit of the books and accounts to be made by an inde-
pendent accountant not regularly in the employ of the City on a
monthly salary, showing the receipts and disbursements for account
of the hospital and of the retirement of bonds, and that a copy
of the report of such audits will be available for inspection by
any bondholder so requesting.
Section 10. That said City hereby covenants and agrees
with each and every of the holder or holders of the bonds herein
authorized to be issued that it will faithfully and punctually
perform all duties with reference to the hospital required by the
Constitution and laws of the State of Florida and will cause to
be charged, collected and accounted for sufficient revenues from
its operation to meet the requirements of this ordinance and will
segregate said revenues and make the application thereof as herein
provided; and that said hospital, including all extensions and
additions thereto, shall not be sold, leased, mortgaged, or in
any manner disposed of beyond control of the City except as here-
inbefore provided, unless and until all the bonds herein author-
ized to be issued shall have been paid in full, both principal
and interest, or adequate provision for such payment shall have
been made; and the City further covenants and agrees with the
holders of said bonds to maintain in good condition and cause
said hospital to be continuously operated, and to cause to be
charged, collected and accounted for, such rates and charges for
use, occupancy and services thereof so that the gross revenues
will be sufficient at all times to provide funds for such of the
expenses of its operation and maintenance as are not otherwise
paid and to make the prescribed payments into the sinking fund,
as provided herein.
Section 11. That said City covenants and agrees it
will keep the hospital insured under a policy or policies of a
responsible insurance company or companies authorized and quali-
fied under the laws of the State of Florida to assume the risks.
Coverage of such insurance shall include damage by fire and
lightning, tornado and winds, earthquake, flood, collapse, mali-
cious damage and explosion, and shall be for the full amount of
the insurable value subject to the deduction from such loss or
damage ( except in case of a total loss ) of not more than five
per cent (5i6) of such insurable value, nor more than $25,000.
The proceeds of any and all such insurance, are hereby pledged
by the City as security for the bonds issued hereunder until such
proceeds are paid out in making good the loss or damage in respect
of which such proceeds are received, either by repairing the
property damaged or replacing the property destroyed; provided,
that if the property cannot be repaired or restored to an in-
surable risk then such proceeds shall be used to retire bonds as
herein otherwise provided. The proceeds of any insurance not
applied to the work of repairing or replacing the property
insured or destroyed within six months after its receipt shall be
placed in the sinking fund.
Section 12. That said City may at its option also
insure the hospital in a responsible insurance company or com-
panies authorized and qualified under the laws of the State of
Florit-:a to assume the risk thereof against loss of the use and A A
occupancy thereof resulting from any of the causes set forth in j J •
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the next preceding section in such an amount as will provide an
income equivalent to at least $35,000 per annum during the
period of suspension of use. Such insurance may be subject to
the deduction at the option of the City of not more than ten
days from such period of suspension. The proceeds of such
insurance shall be paid into the sinking fund and shall be
subject to use and application as hereinbefore provided for
moneys in said fund.
Section 12. The bonds authorized or permitted to be
issued hereunder and from time to time outstanding shall not be
entitled to priority one over the other in the application of
the revenues regardless of the time or times of their issuance,
it being the intention that there shall be no priority among
the bonds regardless of the fact that they may be actually issued
and delivered at different times, and that any other bonds or
obligations thereafter issued or incurred shall be subject to
the priority of security and source of payment of the bonds
hereby authorized and interest thereon.
Section lel-. Each of the following events is hereby
declared an-7-event of default" , that is, if
(a) Payment of the principal of any of the bonds,
either at the date therein specified for their payment
or by proceedings for redemption or otherwise , shall
not be made; or
(b) Payment of any installment of interest shall
not be made on the date specified for the payment of
such interest or within thirty days thereafter; or
( c) Default shall be made in the due and punctual
observance or performance of any of the covenants, con-
ditions and agreements on the part of the City in the
bonds or in this ordinance, or in any pertinent law
contained, and such default shall continue for a period
of thirty days after written notice specifying such de-
fault and requiring the same to be remedied shall have
been given to the. City by the holders of not less than
ten per cent (10%) in principal amount of the bonds then
outstanding.
Section 15.. Upon the happening of any event of default ,
then and in every such case, the holder or holders of any of the
bonds then outstanding may proceed to protect and enforce the
rights of the bondholders by a suit, action or special proceeding
in equity or at law, or by a proceeding in the office of any
state or federal board or officer raving jurisdiction either for
the specific performance of any covenant or agreement or execution.
of any power, or for the enf_}rcement of any proper legal or
equitable remedy as shall be deemed most effectual to protect and.
enforce the rights aforesaid. The bonds hereby authorized and
from time to time outstanding shall be neither payable from nor
a charge upon any funds other than the revenues of the hospital
pledged to the payment thereof and as hereinbefore provided. No
holder or owner of any of said bonds or coupons appertaining
thereto shall ever have the right to compel any exercise of the
taxing power of said City to pay any of said bonds nor interest
thereon, nor have the right to enforce payment of any of said
bonds nor interest thereon against any property of the City.
Said bonds shall not constitute a charge, lien or encumbrance
upon any property or credit of said City other than revenues of
said hospital as aforesaid. Said bonds shall not represent nor
constitute an indebtedness of the City of Miami Beach within the
meaning of any constitutional, statutory or charter provision or
limitation.
Section 16. That BEN SHEPAhD, City Attorney, is
hereby authorized and directed to institute appropriate pro-
ceedings in the Circuit Court of the Eleventh Judicial Circuit
of Florida, in and for Dade County, and to conduct such pro-
ceedings for the purpose of procuring a final decree of court
0
v alidatins said bonds. The properofficials of said Cityare
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,
hereby authorized to verify and execute any pleadings in such
proceedings for and on behalf of said City.
Section 1j. The provisions of this ordinance shall
constitute a contract between the City and the holders of the
bonds herein authorized to be issued, and after the issuance of
any of the bonds no change, variation or alteration of any kind
of the provisions of this ordinance shall be made in any manner
except as herein provided until such time as all of said bonds
issued hereunder and the interest thereon have been paid in full.
Section 18. That all acts heretofore performed and
proceedings heretofore taken not inconsistent with the provisions
of this ordinance with respect to the hospital, financing the
cost thereof, including the issuance and sale of bonds, and with
respect to the operation and maintenance of said hospital, are
hereby ratified and confirmed, and it is certified that all acts
required at this time to be performed and proceedings required
to be taken for the construction, operation and maintenance of
the hospital and the issuance and sale of bonds as herein con-
templated have been duly and legally performed and taken in the
manner and form required by law.
Section 19. If any section, paragraph, clause or
provision of this ordinance shall be held invalid, the invalidity
of such section, paragraph, clause or provision shall not affect
any of the remaining provisions of this ordinance.
Section 20. All ordinances, resolutions and orders,
or parts thereof in conflict with the provisions of this ordinance
are, to the extent of such conflict , hereby re,Dealed.
Section 21. That it is hereby declared that the
health and welfare of the City is in peril and that this
ordinance be and the same is hereby declared to be an emergency
measure and that same shall become effective forthwith following
its passage and approval as by the charter law of said City
provided.
PASSED AND ADOPTED this 12th day of November,
A. D. , 1941.
OF
Mayor
Attest :
lty Clerk
Passed as an emergency measure : 1st reading November 10th, 1941,
being an adjourned session of
the regular meeting held November
5th, 1941. Second reading, by titic
only and the third time in full
on November 12th, 1941, being
also an adjourned session of said
regular meeting held November 5th
1941.
Posted -- November 15th, 1941.
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