Loading...
20140521 SM1MIAMI BEACH Gity Commission Meeting SUPPLEMENTAL MATERIAL 1 City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive May 21,20'|.4 Mayor Philip Levine Vice-Mayor Micky Steinberg Com missioner Michael Grieco Commissioner Joy Malakoff Commissioner Edward L. Tobin Comm issioner Deede Weithorn Comm issioner Jonah Wolfson City Manager Jimmy L. Morales City Attorney Raul Aguila City Clerk Rafael E. Granado Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. ATTENTION ALL LOBBYISTS Chapter 2, Article Vll, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the registration of all lobbyists with the City Clerk priorto engaging in any lobbying activity with the City Commission, any City Board or Committee, or any personnel as defined in the subject Code sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office. Questions regarding the provisions of the Ordinance should be directed to the Office of the City Attorney. R9H SUPPLEMENTAL AGENDA R9 - New Business and Commission Requests Discussion Regarding A Resolution Approving And Authorizing The Manager To Take The Following Actions, Subject To And Conditioned Upon The Successful Negotiation Between The City And Mount Sinai Medical Center Of Florida, lnc. ("Mount Sinai") Of The Grant Agreement And Lease Agreement (Both As Hereinafter Defined): 1) Authorizing A Grant Contribution To Mount Sinai, ln The Principal Amount Of $18,750,000 (The "Grant Contribution"), Payable Over A Term Of 15 Years, For The Sole Purpose Of Reimbursing Mount Sinai For Costs Associated With Mount Sinai's Emergency Room Expansion Project (The "Project"); 2) Covenanting To Annually Budget And Appropriate Funds From Legally Available Non-Ad Valorem Revenues To Pay Such Grant Contribution; 3) Delegating Authority To The City Manager To Negotiate The Final Terms Of The Grant Contribution Agreement With Mount Sinai ("Grant Agreement"); 4) Also Delegating Authority To The City Manager To Negotiate A Lease Agreement With Mount Sinai For The City's Emergency Management Office On The Mount Sinai Campus, For A Term Of 3O-Years ("Lease Agreement'); And 5) Fu(her Directing The Mayor And City Clerk To Execute The Grant Agreement And Lease Agreement Upon Conclusion Of Successful Negotiations. (Requested by Commissioner Deede Weithorn) (Corrected Memorandum & Resolution) 1 THIS PAGE INTENTIONALLY LEFT BLANK 2 4 MIAMI BEACH OFFICE OF THE MAYOR AND COMMISSION TO: Jimmy L. Moroles, City Monoger FROM: Deede Weithorn, Commissioner DATE: Moy 15,2014 SUBJECT: CORRECTION: Discussion item R9H MEMORANDUM Pleose correct discussion item R9H, ond reploce it with the following discussion item: Discussion regording the funding of the exponsion (opproximotely double the size) of the Emergency Deportment ot Mt. Sinoi, qnd the creotion of on Emergency Monogemenl office for the city o[ Miomi Beoch (April 23, 2014 commission ltem c4N)(193), ond the City's potentiol contribution of $,l5 million dollors. lf you hove ony questions pleose contqct Louren corro ot extension 6528 or Lq u renCo rro@m io m i beoc h f l. gov. Asenda ttem f( i H Date f,'Ll -lt{3 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA (THE "CITY") APPROVING AND AUTHORIZING THE MANAGER TO TAKE THE FOLLOWING ACTIONS, SUBJECT TO AND CONDITIONED UPON THE SUCCESSF'UL NEGOTIATION BETWEEN THE CITY AND MOUNT SINAI MEDICAL CENTER OF FLORIDA, INC. ('MOUNT SINAI") OF THE GRANT AGREEMENT AND LEASE AGREEMENT (BOTH AS HEREINAFTER DEFINED): I) AUTHORIZING A GRANT CONTRIBUTION TO MOUNT SINAI,IN THE PRINCIPAL AMOUNT OF $18,750,000 (THE "GRANT CONTRIBUTION"), PAYABLE OVER A TERM OF 15 YEARS, FOR THE SOLE PURPOSE OF REIMBURSING MOUNT SINAI F'OR COSTS ASSOCIATED WITH MOUNT SINAI'S EMERGENCY ROOM EXPANSION PROJECT (THE "PROJECT");2) COVENANTING TO ANNUALLY BUDGET AND APPROPRIATE FUNDS FROM LEGALLY AVAILABLE NON-AD VALOREM REVENUES TO PAY SUCH GRANT CONTRIBUTION;3) DELEGATING AUTHORITY TO THE CITY MANAGER TO NEGOTIATE THE FINAL TERMS OF THE GRANT CONTRIBUTION AGREEMENT WITH MOUNT SINAI (,'GRANT AGREEMENT''); 4) ALSO DELEGATING AUTHORITY TO THE CITY MANAGER TO NEGOTIATE A LEASE AGREEMENT WITH MOUNT SINAI FOR THE CITY'S EMERGENCY MANAGEMENT OFFICE ON THE MOUNT SINAI CAMPUS, F'OR A TERM OF 3O-YEARS ("LEASE AGREEMENT"); AND 5) FURTHER DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE THE GRANT AGREEMENT AND LEASE AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS. WHEREAS, since its founding in1949, Mount Sinai has faithfully served the residents of the City, Miami Dade County, and their visitors and guests; and WHEREAS, over the course of its history, Mount Sinai's mission and importance to the Iocal community has greatly expanded to include its designation as one of only ten statutorily designated teaching hospitals in the State of Florida, and the City's largest private employer; and WHEREAS, Mount Sinai has over 200,000 inpatient and outpatient admissions annually; and WHEREAS, Mount Sinai is currently the only hospital and emergency healthcare services provider on the barrier islands to service Miami Beach's more than 5 million annual visitors; and WIIEREAS, the Emergency Room ("ER') was constructed in 1972 and is comprised of approximately 16,000 square feet ofspace; and 4 WHEREAS, ER utilization increased 460/o, from 28,917 visitors in 2002, to 42,238 visitors in 2012, and is anticipated to increase approximately 49/o, to a total of 62,800 visitors by 2020, and WHEREAS, the aforementioned ER utilization rates occurred during a period of time in the City's history when its resident population remained static or experienced slight declines; and WHEREAS, ER utilization rates are highly correlated to increase in average daily visitors, with visitor rates during the same ten-year period between2002 and2012 experiencing similar annual growth trends, yielding a .969 correlation co-etficient between gro'wth in the tourism industry and ER usage; and WHEREAS, the Mayor and City Commission hereby find and declare that the Project (as defined in this Resolution) is a capital improvement to a physical asset which is essential to the welfare, safety, and well-being of the residents of, and visitors to, the City, and that, as such, the Project serves a vital public purpose to the City; and WHEREAS, non-ad valorem revenues may, in part, be utilized to fund capital improvements and the maintenance of all physical assets which are essential to the welfare, safety, and well-being of the residents of, and visitors to, the City, and which serve a public purpose to the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that, subject to and conditioned upon the successful negotiation of the Grant Agreement and Lease Agreement (both, as defined in this Resolution), the Mayor and City Commission hereby approved and authorize the following actions: Section I' The City is hereby authorized to provide Mount Sinai with a grant, to be funded as provided in Section 2 below, in the principal amount of $18,750,000, paid in equal principal payments of $1,250,000, million over a l5-year term (the "Grant Contribution"). Provided the City and Mount Sinai successfully negotiate the final terms of, and execute, the Grant Agreement and Lease Agreement, the term of the Grant Agreement shall commence at the start of the City's 2014-2015 Fiscal Year. The Grant Contribution shall be used for the sole purpose of reimbursing Mount Sinai for costs associated with the Project. Section 2. The City is hereby authorized to covenant to budget and appropriate in its annual budget, by amendment if necessary, from legally available non-ad valorem revenues in the then cwrent fiscal year, amounts suflicient to pay the Grant Contribution coming due in such fiscal year, until paid in full. Such covenant to budget and appropriate funds shall be subject to successful negotiation and execution by the City and Mount Sinai of the Grant Agreement and Lease Agreement, and shall be further subject to the terms and conditions negotiated in the final Grant Agreement. 5 Section 3. The City Manager is authorized to negotiate the Grant Agreement, consistent with the business terms set forth in this Resolution. Said Agreement shall also reserve to the City, at is sole option, the right to pre-pay the Grant Contribution, without penalty or premium. Section 4. Should Mount Sinai, at any time, pre-pay the outstanding Principal Amount of the Series 2014 Bonds, and the resulting principal outstanding balance on said Series 2014 Bonds is equal to or less than the Principal Amount then owed by the City to Mount Sinai, the City's obligation to pay any interest shall be released, and the City shall only remit to Mount Sinai payment for the Principal Amount then outstanding for the balance of the term of the Grant Agreement. Section 5. The City Manager is further authorized to negotiate a Lease Agreement (or "Lease") with Mount Sinai for the City's use of a minimum of 1,000 square feet of space on the Mount Sinai campus. Said Lease shall be for the operation of the City's Emergency Management Office for an initial minimum term of 30 years and a rental amount of $l per year (the City's consideration for rent on the Lease being the Grant Contribution). The City shall bear all costs associated with the tenant build-out of the Lease premises. Section 6. The Mayor, City Clerk, City Manager, City Attorney, and Chief Financial Officer are hereby authorized and directed to do all things and execute any and all documents necessary to carry-out the intent of this Resolution including, without limitation, engaging the City's bond counsel (or other outside counsel selected by the City Attorney) and financial advisor to assist in the negotiation and execution of the Grant Agreement and Lease Agreement. In the event that the City retains bond counsel (or other outside counsel) to assist in the negotiation and execution of the Grant Agreement, Mount Sinai shall pay any and all costs associated with the City's legal fees with respect thereto. Upon conclusion of successfrrl negotiation by the City and Mount Sinai of the Grant Agreement and Lease Agreement (the "Agreements") the Mayor and City Clerk are hereby authorized to execute such Agreements. PASSED AND ADOPTED this day of _, 2014. MAYOR ATTEST: APPROVEDASTO FORM & LANGUAGE &FOREXECUTION s l,rt I14- CITY CI,ERK City Attorney Date 6