99-23220 RESO
RESOLUTION NO. 99-23220
A RESOLUTION AMENDING RESOLUTION NO. 98-22891 ENTITLED: A
RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA; AUTHORIZING THE MAYOR TO
EXECUTE AN UNDERGROUND ELECTRIC TRANSMISSION FACILITIES
AGREEMENT WITH FLORIDA POWER & LIGHT COMPANY FOR THE
CONSTRUCTION OF AN UNDERGROUND ELECTRIC TRANSMISSION
LINE BETWEEN THE 40TH STREET SUBSTATION AND THE VENETIAN
SUBSTATION; AUTHORIZING THE ISSUANCE OF NOT EXCEEDING
$4,000,000 NON-AD VALOREM REVENUE NOTE, SERIES 1998 TO
FINANCE A CONTRIBUTION IN AID OF CONSTRUCTION OF SAID
UNDERGROUND ELECTRIC TRANSMISSION LINE; COVENANTING TO
ANNUALLY BUDGET AND APPROPRIATE FUNDS FROM LEGALLY
AVAILABLE NON-AD VALOREM REVENUES TO REPAY SUCH NOTE;
PRESCRIBING THE FORM, TERMS AND DETAILS OF SUCH NOTE;
AWARDING THE NOTE TO FLORIDA POWER & LIGHT COMPANY, BY
NEGOTIATED SALE; MAKING CERTAIN COVENANTS AND
AGREEMENTS IN CONNECTION THEREWITH; GRANTING AN
EASEMENT FOR THE CONSTRUCTION OF SAID UNDERGROUND
ELECTRIC TRANSMISSION LINE; PROVIDING FOR APPRAISAL OF
THE VALUE OF SAID EASEMENT AND FOR ANY MONEYS RECEIVED
FROM THE GRANT OF SUCH EASEMENT TO BE USED TO OFFSET THE
COST OF THE SAID CONTRIBUTION-IN-AID-OF-CONSTRUCTION; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City and FPL have heretofore negotiated the terms ofa Non-Ad Valorem
Revenue Note pursuant to which FPL offered to lend the City a portion of the funds necessary to pay
a Contribution-In-Aid-Of-Construction in connection with the construction of an underground
electric transmission line between 40th Street and the Venetian Substation, and the issuance of said
Note was approved by the Mayor and City Commission on September 9, 1998 by the adoption of
Resolution No. 98-22891; and
WHEREAS, it is now necessary and desirable to amend Resolution No. 98-22891 to provide
for certain modifications to the Note prior to its issuance.
NOW, THEREFORE, BE IT RESOL VED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
Section 1. Incorporation of Recitals. The matters set out in the foregoing recitals are
true and correct, and they are hereby incorporated as a portion of this Resolution.
Section 2. Amendment of Section 7 of Resolution No. 98-22891. Section 7 of
Resolution No. 98-22891 is hereby amended in its entirety to read as follows:
Section 7. Description of Obligations. The Note shall be issued in one
(1) typewritten certificate and shall be dated the Dated Date. The Note shall bear
interest a rate to be determined at the date of issuance of the Note by the Chief
Financial Officer of the City, but in no event to exceed four and seventy-five one
hundredths percent (4.75%) per annum. Interest on the Note shall be calculated on
the basis of a 360 day year consisting of twelve thirty day months. Accrued interest
and principal on the Note will be payable on the first days of June and December of
each year, commencing on December 1, 1999 or such other date as the Chief
Financial Officer may determine. The schedule of payments of the principal of the
Note shall be determined by the Chief Financial Officer prior to the issuance of the
Note. Additional details of the Note shall be as provided in the form of Note
attached hereto as Exhibit "B."
The Note hereunder shall be in registered form, contain substantially the same
terms and conditions as set forth in Exhibit "B" hereto, shall be payable in lawful
money of the United States of America, and the principal thereof, interest thereon and
any other payments thereunder shall be payable by check, wire, draft or bank transfer
to the Holder at such address as may be provided in writing by such Holder to the
Clerk of the City. So long as the Note shall remain outstanding, the City shall
maintain and keep books for the registration and transfer of the Note. The Clerk is
hereby appointed as registrar for the Note and the Chief Financial Officer is hereby
appointed as paying agent for the Note.
The Note issued under this Resolution shall be and have all the qualities and
incidents of negotiable instruments under the law merchant and the Uniform
Commercial Code of the State of Florida, subject to the provisions for registration
of transfer contained in this Resolution and in the Note.
The Note may be assigned as to principal and interest by the Initial Purchaser,
or any assignee or successor-in-interest of the Initial Purchaser. Such assignment
shall only be effective, and the City obligated to pay such assignee, upon written
notice of assignment being provided to the Clerk of the City at 1700 Convention
Center Drive, Miami Beach, Florida 33139; provided, however, the written notice of
assignment must be received by the Clerk no later than the close of business on the
fifth Business Day prior to the payment date in order to carry the right to receive the
interest and principal payment due on such payment date. The City may charge the
registered owners of such Note for the registration of every such assignment of such
Note sufficient to reimburse it for any tax, fee or any other governmental charge
required to be paid, except for any such governmental charge imposed by the City,
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with respect to the registration of such assignment, and may require that such
amounts be paid before any such assignment of the Note shall be effective.
Section 3. Amendment of Designation of Note. All references in Resolution No. 98-
22891 and in the Note to "Series 1998" are hereby amended to read "Series 1999."
Section 4. Saving Clause. All other portions of Resolution No. 98-22891 shall remain
in full force and effect as originally adopted on September 9, 1998.
Section 5. Repeal of Inconsistent Resolutions. All ordinances and other resolutions
or parts thereof in conflict herewith are to the extent of such conflict superseded and repealed.
Section 6.
its adoption.
Effective Date. This Resolution shall become effective immediately upon
ADOPTED this 23rdday of
June
,1999.
I
Mayor
ATTEST:
~p~
City Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
;tft./~jIJ#- c/~
City Attorney ~
F:IAnUI!,EVLlBllNIJSIFP&.I,.I.llAIFPI,2AMEN.wro
JUII~ 23. 1999 (]2:~]pm)
3
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach,f1.us
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. 47. b .L1~
Mayor Neisen Kasdin and
Members of the City Commission
Murray H. Dubbin ()f~
City Attorney
DATE: June 23, 1999
A RESOLUTION AMENDING RESOLUTION NO. 98-22891 ENTITLED: A
RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA; AUTHORIZING THE MAYOR TO
EXECUTE AN UNDERGROUND ELECTRIC TRANSMISSION FACILITIES
AGREEMENT WITH FLORIDA POWER & LIGHT COMPANY FOR THE
CONSTRUCTION OF AN UNDERGROUND ELECTRIC TRANSMISSION
LINE BETWEEN THE 40TH STREET SUBSTATION AND THE VENETIAN
SUBSTATION; AUTHORIZING THE ISSUANCE OF NOT EXCEEDING
$4,000,000 NON-AD VALOREM REVENUE NOTE, SERIES 1998 TO
FINANCE A CONTRIBUTION IN AID OF CONSTRUCTION OF SAID
UNDERGROUND ELECTRIC TRANSMISSION LINE; COVENANTING TO
ANNUALLY BUDGET AND APPROPRIATE FUNDS FROM LEGALLY
AVAILABLE NON-AD VALOREM REVENUES TO REPAY SUCH NOTE;
PRESCRIBING THE FORM, TERMS AND DETAILS OF SUCH NOTE;
AWARDING THE NOTE TO FLORIDA POWER & LIGHT COMPANY, BY
NEGOTIATED SALE; MAKING CERTAIN COVENANTS AND
AGREEMENTS IN CONNECTION THEREWITH; GRANTING AN
EASEMENT FOR THE CONSTRUCTION OF SAID UNDERGROUND
ELECTRIC TRANSMISSION LINE; PROVIDING FOR APPRAISAL OF
THE VALUE OF SAID EASEMENT AND FOR ANY MONEYS RECEIVED
FROM THE GRANT OF SUCH EASEMENT TO BE USED TO OFFSET THE
COST OF THE SAID CONTRIBUTION-IN-AID-OF -CONSTRUCTION; AND
PROVIDING AN EFFECTIVE DATE.
CITY ATTORNEY'S RECOMMENDATION
Approve the Resolution.
BACKGROUND
On September 9, 1998, the Mayor and City Commission approved Resolution No. 98-22891
which, among other things, granted an easement to Florida Power & Light Company ("FPL"), for
AGENDA ITEM C. 1::J
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the undergrounding of an electric transmission line, authorized the City to pay certain costs in
connection therewith, and to borrow money from FPL for such purpose (the "FPL Loan"). The FPL
Loan was to be evidenced by a note (the "Note"), in the approximate amount of$3,980,000, reduced
by the value of the easement that was to be granted to FPL. The amount of the Note has now been
established as $3,941,059.
The procedure for determining the value of the easement was that the City and FPL would
each obtain an appraisal. If the two appraisals were within 15% of each other, the average of the two
appraisals would be used to calculate the amount to be paid to the City for the easement (hereinafter
"Average Appraised Value"). If the two appraisals were not within 15% of each other, a third
appraisal was to be obtained by an independent review appraiser approved by both parties. It was
agreed that the third appraisal would then be used to establish the Average Appraised Value to be
paid to the City for the Easement. The two appraisals were not within 15% of each other and a third
appraisal was obtained several weeks ago. This procedure took longer than was originally
anticipated and it is now necessary to amend Resolution No. 98-22891 so that issuance of the note
may be completed.
ANALYSIS
The attached Resolution changes the date of the first interest payment from December 1,
1998 to December 1, 1999, and changes the designation of the Note from "Series 1998" to "Series
1999." It does not change any other provisions of Resolution No. 98-22891.
CONCLUSION
The Resolution to amend Resolution No. 98-22891 should be approved.
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