Resolution 86-18469 •
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• RESOLUTION NO. '86-18469
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
SALE OF GENERAL OBLIGATION BONDS IN THE AMOUNT
OF $11,500,000 FOR THE PURPOSE OF FINANCING
IMPROVEMENTS AND ADDITIONS TO AND REHABILI-
TATION OF THE CITY'S PUBLIC SAFETY EMERGENCY
COMMUNICATIONS SYSTEM, INCLUDING AN IMPROVED
COMPUTER AND COMMUNICATIONS NETWORK, IMPROVED
FIRE VEHICLES, AMBULANCES, A 911 AUTOMATIC
• • LOCATION .IDENTIFICATION SYSTEM, AND OTHER
' RELATED PROJECTS, TO PROVIDE ' MORE IMMEDIATE
• AND EFFECTIVE POLICE . AND FIRE EMERGENCY
DISPATCH AND RESPONSE TIME IN LIFE THREATENING
SITUATIONS AND OTHER CITIZEN EMERGENCIES,
AUTHORIZED AT AN ELECTION HELD ON NOVEMBER 5,
• 1985; FIXING MATURITY DATES; APPROVING THE
FORM OF PRELIMINARY OFFICIAL STATEMENT AND
• NOTICE OF SALE; AUTHORIZING ADVERTISEMENT OF
THE . SALE OF THE BONDS; SETTING THE SALE DATE
AS JUNE 18, 1986;- AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the duly registered and qualified voters of the
City of Miami Beach, participating in an election held according •
to law in the City of Miami Beach, Florida, on November 5 , 1985, •
authorized the issuance of general obligation bonds of the City
of Miami Beach in an aggregate principal .amount not to exceed
$11, 500,000 (the "Bonds" ) for the purpose of financing •
improvements and additions to and rehabilitation of the City' s
public safety emergency communications system, including an,
improved computer and communications network, improved fire
vehicles, ambulances , a 911 automatic location .identification
system, and other related projects, to provide more immediate and
effective police and fire emergency dispatch and response time in
life threatening situations and other citizen emergencies.
NOW, THEREFORE, BE. IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA THAT:
SECTION 1. Pursuant to said election, $11, 500,000 of
general .obligation 'bonds of the City of Miami Beach, Florida,
shall be issued in fully registered form, bearing the date of
June 1, . 1986, and bearing interest at a rate per annum to be
hereafter_ determined, not to exceed the maximum rate permitted by
applicable - Jaw, payable semiannually on each March 1 and
September 1, commencing March 1, 1987 . The principal of and the
interest and redemption premium, if any, on the Bonds shall be
paid in any coin or currency of the United States of America
which, at the respective times of payment, is legal tender for
the payment of public and private debts. The principal of and
interest on the Bonds are payable by check or draft mailed to the
registered owners thereof .as of the Record Date (as defined in
Resolution No. 86-18407) , drawn on the paying agent as designated
by subsequent resolution (the "Paying Agent" ) and the principal .
thereof and the premium, if any, payable upon redemption are
payable upon presentation and surrender thereof, at the principal
corporate trust office of the Paying Agent, or at the principal
corporate trust office of its successor as Paying Agent.
SECTION 2. The Bonds shall be designated "City of Miami
Beach, Florida, General Obligation Bonds (Public Safety Equipment
and Rehabilitation Project) , Series 1986 and shall mature as
follows: . .
Due September 1 Amount
1988 100,000
1991 300,000
1993 1,300,000
1994 2,400,000
199.5 2,300,000
1996 2,900,000
1997 2,200,000
SECTION 3. The Bonds maturing on or before September 1,
1996 shall not be subject to redemption prior to their stated
dates of maturity. The Bonds maturing after September 1, 1996
shall be redeemable at . par prior to their stated dates of
maturity, at the option of the City, from any funds legally
available for such purpose on and after September 1, 1996 ( i) as
a whole at any time, and ( ii) in part, from time to time on any
interestpayment date, in inverse order of maturity and by lot
within each maturity at the principal amount thereof and accrued
interest to the date of redemption without premium.
SECTION 4 . ' The Bonds herein authorized and referred to
in Section 2 of this Resolution shall be in the denomination of
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$5,000 each orany integral multiple thereof and shall be alike
in form, except asto maturity dates, interest rates and
numbers. The Bonds shall be lettered "A" and bear the last two
digits of the year of maturity of such Bonds. All Bonds of the
same year of maturity shall be numbered consecutively from one
(1) upwards in order of issuance. If more than one fully-
registered bond of a series is issued in a simultaneous
transaction, such bonds shall be numbered in such manner,
consistent with the above, as the hrere-3. €t-e-r--menti-en - Registrar
shall determine.
SECTION 5. The Commission hereby approves the form of
Preliminary Official Statement with respect to the Bonds, subject
to such changes as may be. approved by the City Attorney, and the
Notice of Sale presented to it at this meeting and authorizes
advertisement of the sale of the Bonds and release of the
Preliminary Official Statement.
SECTION 6. The Commission hereby determines that the
Bonds shall be sold on' June 18, 1986. (11:00 a.m.)
SECTION 7 . That this Resolution shall be in force and
effect immediately upon its adoption.
PASSED AND ADOPTED this 4th day of June, 1986 .
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Attest:
City Clerk
(SEAL)
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NOTICE OF SALE
$11 , 500,000
THE CITY. OF MIAMI BEACH
FLORIDA
General Obligation Bonds
(Public Safety Equipment and Rehabilitation Project)
Series 1986
Sealed Bids
Sealed bids for the purchase of the above Bonds will be
received by the Commission (the "Commission" ) of The City of
Miami Beach, Florida. (the "City" ) at its regular place of meeting
in the City Hall, 1700 Convention Center Drive, Miami Beach,
Florida, until 11:00 A.M. Miami Beach time on Wednesday,
JUNE 18, 1986*
at which time and place all bids will be publicly opened and
read.
Bond Details
The Bonds are issuable as fully registered bonds in the
principal amount of $5,000 or whole multiples thereof. Interest
on the Bonds will be payable to the registered owners shownon
the registration books of the Registrar on the fifteenth day of
the month preceding an interest payment date, by check or draft
mailed to such registered owners by the Bond Registrar and Paying
Agent. The Bonds will be initially dated and bear interest from
June 1, 1986, payable semi-annually on March 1 and September 1 in
each year, commencing March 1, 1987, at the rate or rates
specified in such proposal as may be accepted, and will mature as
follows:
*Hereinafter referred to as the "Date of Sale. "
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MATURITY SCHEDULE
Maturity Date
September 1 Principal Amount
1988 $ 100,000
1991 300,000
1993 1,300,000
1994 2,400,000
1995 2,300, 000
1996 2,900,000
1997 2, 200,000
Principal of, and premium, if any, on the Bonds will be
payable upon presentation and surrender of the Bonds, at the
offices of the Bond Registrar and Paying Agent, to be designated
by the City on the Date of Sale.
Optional Redemption
The Bonds maturing after September 1, 1996 are subject to
redemption at par at the option of the Commission of The City,.
after September 1, 1996, in whole on any date, or in part in the
inverse order of their maturities (by lot within any maturity) on
any interest, payment date, plus .accrued interest to the date of
redemption without. premium.
Purpose Validation
The Bonds were authorized by Resolution No. 85-18176 adopted
on September 11, 1985 and Resolution No. 86-18407 adopted March
19, 1986, as supplemented., for the purpose of financing
improvements and additions to and rehabilitation of the City's
public safety emergency communications, system. The issuance of
the Bonds was approved by a majority of the votes cast in an
election held on November 5, 1985 in which the qualified electors
residing in the City participated.
The Bonds have been validated by judgment of the Circuit
Court of Dade County, Florida, the appeal period has expired and
no appeal was taken from the validation judgment.
Security for and Source of Payment for the Bonds
The Bonds constitute valid and binding general- obligations of
the City for the payment of which, and the payment of interest .
thereon, the full faith, credit and taxing power of the City are
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irrevocably pledged, and all taxable real and personal property
within the City (excluding homesteads to the extent provided
under applicable law) is subject to the levy of an ad valorem tax
without limitation as to rate or amount, for the payment of the
Bonds and the interest . thereon.
Interest Rates and Bidding Details
Each proposal must be in the form of the Official Bid. Form,
and enclosed in a sealed envelope marked "Bid for $11,500 ,000
City of Miami Beach, Florida, General Obligation Bonds. " Each
bid constitutes a separate bid for each of said series of- Bonds
and any premium bid shall be for all of said Bonds and allocated
to each series in the proportion which the amount ofsuch series
bears to the total amount of all Bonds. Bidders are requested to
name the interest rate or rates in multiples of 1/8 or 1/20 of.
1%. Each bidder must specify in his bid the interest rate for
the Bonds of each maturity and all Bonds maturing on the same
date must bearinterest or have a yield at the same rate. Any
number of interest rates may be named, but the highest interest
rate named may not exceed the lowest interest rate named by more
than two percent ( 2%) . No Bond shall bear more than one rate of .
interest, which rate shall be uniform for the life of the Bonds,
and no zero orblank rate or split rate will be permitted. No.
bid for less than all of the Bonds offered or for less than 99%
of the par amount will be entertained. Premiums may be
specified.
Award of Bonds
The Bonds will be sold to the responsible bidder whose
proposal offers to purchase all (but not less than all) the Bonds
at such rate or rates of interestas will produce the lowest
effective interest rate to the City. The lowest effective
interest rate will be determined in accordance with the
"Canadian" or "true" interest cost method of calculation by
doubling the semi-annual interest rate compounded semi-annually
necessary to discount the debt service payments from the payment
dates to the date of the Bonds and to the price bid, not
including interest accrued to the date of delivery.
Good. Faith
Each bid must be accompanied by a certified or bank cashier ' s
or treasurer ' s check drawn upon an incorporated bank or trust
company, in the ambunt of $115,000, which check, onwhich no
interest will be allowed, must be payable unconditionally to the
order of The City of Miami Beach, Florida. Award or rejection of
bids will be made on the date above stated for receipt of bids,
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and the checks of unsuccessful bidders will be returned
immediately. The check of the successful bidder will be cashed
and the proceeds, on which no interest will be allowed, :will be
• held as security for the performance of the bid, and, in the
event such successful bidder shall fail to comply with the terms
of his bid, the proceeds will be retained. The retention of such
check will constitute full liquidated damages. If it shall be
found impossible to issue and deliver the Bonds, the . City will,
deliver to the successful bidder a certified or bank cashier ' s or
treasurer ' s check drawn upon a bank or trust company in The City
of Miami Beach, Florida, payable unconditionally to the order of
such bidder, in the amount of the check deposited by such bidder
with his bid. Upon delivery of the Bonds, the proceeds of such
check of the successful bidder will be applied to payment for the
• Bonds .
CUSIP Numbers
It is anticipated that CUSIP identification numbers will be
printed on the Bonds, but neither the failure to print such
numbers on any Bond nor any error with respect thereto shall
constitute cause for a failure or refusal by the purchasers
thereof to accept delivery of or to pay for the Bonds in
accordance with the terms of their bid. All expenses- in relation .
to the printing of CUSIP numbers on said Bonds and the CUSIP
Service Bureau charge for the assignment of said numbers shall be
paid for by The City of Miami Beach.
Delivery of Bonds
Delivery of the Bonds in definitive form will be made on or
about July 8, 1986 in New York, New York, against payment
therefor in immediately available Federal Reserve Funds to the
order of The City of Miami Beach, Florida.
Concurrently with the delivery of the Bonds, the City Manager
and the Director of Finance will furnish their certificate to the
effect that, to the best of their knowledge, the Official
Statement, as of its date and as of the date of delivery of the
Bonds, did not and does not contain an untrue statement of a
material fact or omit to state a material fact necessary to make
the statements contained therein, in light of the circumstances
under which they were made, not misleading.
The successful bidder shall have the right, at its option, to
cancel its obligation to purchase the Bonds if the City shall
fail to tender the • Bonds for delivery within 60 days from the
date herein fixed for the receipt of bids , and, _in such event,
the successful bidder shall be entitled to the return of its
deposit mentioned above, with interest .
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Bond Counsel Opinion
The unqualified opinion of Myers, Kenin, Levinson & Richards
of Miami, Florida, as to the tax-exempt status of interest on the
Bonds under present law,, will be furnished without cost to the
purchasers of the Bonds and will be printed on the Bonds. There
will also be furnished the usual closing documents and papers.
Pending Federal Tax Legislation
On December .17, 1985 , the United States House of
Representatives passed H.R. 3838, which, if enacted, would change
the provisions of the Internal Revenue Code relating to the
exemption from federal income taxation of certain obligations of
states and their political subdivisions issued after December 31,
1985.
On March 14, 1986, the Chairman and Ranking Members of the
United States House of Representatives Committee on Ways and
Means and the United States Senate Committee on Finance, and the
Secretary of the Treasury, issued a joint statement ( the "Joint
Statement" ) endorsing a postponement until September 1, 1986 (or
the date of enactment of tax reform legislation, if earlier ) of
any application of all provisions and restrictions of. H.R. 3838
relating to certain tax exempt financings, ,which would include
the Bonds, except for yield calculation provisions, temporary
periods on advance refundings and alternative minimum tax
provisions applicable to property and casualty insurance
companies. Such endorsement is not binding on the members .of
Congress.
The Senate Committee on Finance (the "SCF" ) voted on May 6,
1986 to submit to the U.S. Senate amendments to H.R. 3838 as
passed by the House of Representatives . The amendmentsinclude a
provision that would classify, as a tax preference item for the
purpose of computing an alternative minimum tax, 20% of one-half
of the excess of a corporation' s reported profits in excess of
its minimum tax base. If this provision should be enacted into
law, one-half of the interest on the Bonds held by corporations
would constitute a tax preference.
The tax exempt status of interest on the Bonds , (except for
any tax preference provisions generally applicable to
corporations) will not be adversely affected by the pending
federal tax legislation as set forth in H.R. 3838, or as amended
by SCF, in the event the postponement provisions of the Joint
Statement are finally enacted by Congress. Bodd Counsel will
express no opinion as to the federal tax exemption with respect
to the Bonds in the event H.R.. 3838, as finally passed by
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Congress, is enacted without the incorporation of a postponement
of effective dates as set forth in the Joint Statement, or in the
event H.R. 3838 is otherwise enacted in modified form, or in the
event that other legislation affecting the Bonds is enacted; nor
will Bond Counsel express any opinion as to whether any
particular congressional action with respect to effective dates,
or the substantive requirements of H.R. 3838 applicable to the
Bonds will be followed in the enactment thereof.
Insurance
The City has applied for and expects to obtain a commitment
for insurance which may be obtained at the option of the
successful bidder .
Disclosure on the Purchaser
Section 218. 38(1) (b) (1) , Florida Statutes, (Supp. 1982) ,
requires that the City file, within 120 . days after delivery of
the Bonds, an information statement with the Division of Bond
Finance of the State of Florida (the "Division" ) containing the
following information: (a) the name and address of the managing
underwriter, if any, connected with the Bond issue; (b) the name
and address of any attorney or financial consultant who advised
the City with respect to the Bond issue; (c) any fee, bonus or
gratuity paid by any underwriter or financial consultant, in
connection with the Bond issue, to any person not regularly
employed or engaged by such underwriter or consultant; and
(d) any other fee paid by the City with respect to the Bond
issue, including any fee paid to attorneys or financial
consultants. The successful purchaser will be required to
deliver to the City in a timely fashion such that the City may
comply with the above-referenced statute, a statement signed by
an authorized officer containing the information mentioned in (a)
and (c) above with respect to any payment made by the managing
underwriter or financial consultant. Section 218. 38(1) (b) ,
Florida Statutes, requires that the successful purchaser file
with the Division within 90 days after delivery of the Bonds a
sworn statement containing the same information mentioned in (c)
above.
Additional Information
The Official Bid Form and Notice of Sale and copies of the
Preliminary Official Statement relating to the Bonds may be
obtained upon request to the undersigned at Miami. Beach City
Hall, 1700 Convention Center Drive, 4th Floor, Miami Beach,
Florida 33139, telephone number ( 305) 673-746'6, or to the
Financial Advisor, Shearson Lehman Brothers Inc. , Suite 200, 1390
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Brickell Avenue, Miami , Florida 33131, telephone number ( 305)
371-7084.
ROBERT J. NACHLINGER
Director of Finance
The City of. Miami Beach, Florida.
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ORICINAL
RESOLUTION NO. 86-18469
(Authorizing the Sale of General Obligation
Bonds in the amount of $11,500,000for the #
purpose of financing improvements and
additions to and rehabilitation of the
City's Public Safety Emergency Communicat-
ions System, including an improved computer
and communications network, improved fire
vehicles, ambulances, a 911 automatic
location identification system, and other
related projects, to provide more immediate
and effective police and fire emergency
dispatch and response time in life threat-
ening situations and other citizens emergen-
cies, Authorized at an election held on
November 5, 1985; fixing maturity dates;
approving the form of preliminary official
statement and notice of sale; authorizing
advertisement of the sale of the bonds;
setting the sale date as June 18, 1986; and
providing an effective date)