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R7J-Issue-Sale MB Health Facilities Authority Hospital Revenue And Refunding BonResolution of rhe Mayor And city commission of rhe city of Miami aeactr;torioa, npprovrng The lssuance And sale of Not ro Exceed $200,000,000 Principal Amount of city of Miamj Beach Health Facilities Authority Hospital Revenue And Refunding Bonds, Series 20'14 (Mount Sinai Medical Center Of Florida), By The City Of Miami Beach Health Facilities Authority, lncluding The Approval Required By Section 147(F) Ot The lnternal Revenue Code Of 1986, As Amended; Providing That Said Bonds Shall Not Conslitute A Debt, Liability Or Obligation Of The City Or The State Of Florida Or Any Political Subdivision Thereof But Shall Be Payable Solely From The Revenues Provided Therefor; And Providing An Effective Date. COMMISSION ITEM SUMMARY Condensed Title: lntended Outcome Su Should the City Commission approve the resolution which allows for the issuance of not to exceed $200,000,000 in City of Miami Beach Health Facilities Authority Hospital Revenue and Refunding Bonds, Series 2014 (Mount Sinai Medical Center of Florida)? Item Summary/Recommendation : The proceeds of the Bonds will be used by Mount Sinai Medical Center of Florida, lnc. lthe 1Ve Center"), a nolfor-profit corporation organized under the laws of the State of Florida, together with other available monles, if any, to (a) refund and defease all or a portion of the currently outstanding City of Miami Beach Health Facilities Authority Hospital Revenue Refund Bonds, Series 2004 (Mount Sinai Medical Center of Florida) (such bonds or pofiion thereof to be refunded, the "Refunded Bonds"), previously issued for the benefit of the Medical Center, (b) pay (or reimburse) the cost of undertaking certain capital improvement owned or to be owned by the Medical Center, (c) fund a deposit to a debt service reserye, if any, and (d) pay expenses in connection with the issuance of the Bonds and the refunding and defeasance ofthe Refunded Bonds. These Bonds and the interest thereon, shall not be deemed to constitute a debt, liability or obligation of the City of Miami Beach 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 is pledged to the payment of principal, a redemption prem ium or interest on the Bonds. Board Recommendation: Financial lnformation: lmprove the City's overall financial health and maintain overall bond rating. Supporting Data (Surveys, Environmental Scan, etc.): va Source of Funds: OBPI Amount Account Approved N/A Principal & lnterest payments to be paid by Mount Sinai Medical Center of Florida, lnc. Total Clerk's Office Patricia Walker. Chief Financial Officer Siqn-Offs: Department Director Assl*flff Sitf Manager lL,€itv Manaser PDW 1L.'J-JLWl]_! 11 HFA I .J AGEHDA rrEM R'7 Jg MIAAAIBEACH o,tr:E 6-ll-lq720 g MIAMIBEACH C;ty of ,tAiomi Beoch, I 700 Convenlion Center Drive, Miomi Beoch, Florido 331 39, www. miomibeochfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager DATE: June 11,2014 olthe City suBlECr: RESOLUTION OF THE MAYOR AND Clry COMMISSION OF THE CITY OF MIAMI BEACH, FLORIdA, APPROVING THE ISSUANCE AND SALE OF NOT TO EXCEED $2OO,OOO,OOO PRINCIPAL AMOUNT OF CITY OF MIAMI BEACH HEALTH FACILITIES AUTHORIW HOSPITAL REVENUE AND REFUNDING BONDS, SERTES 2014 (MOUNT StNAt MEDTCAL CENTER OF FLORIDA), By THE CITY OF MIAMI BEACH HEALTH FACILITIES AUTHORITY, |NCLUDTNG THE APPROVAL REQUTRED By SECTION 147(n 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 STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION THEREOF BUT SHALL BE PAYABLE SOLELY FROM THE REVENUES PROVIDED THEREFOR;AND PROVIDING AN EFFECTIVE DATE, ADMINISTRATION RECOM MENDATION Adopt the Resolution. ANALYSIS By approving this Resolution, the City Commission is authorizing the issuance and sale of not to exceed $200,000,000 principal amount of City of Miami Beach Health Facilities Authority Hospital Revenue and Refunding Bonds, Series 2014 (Mount Sinai Medical Center of Florida), by the City of Miami Beach Health Facilities Authority, including the approval required by Section 147(f) of the lnternal Revenue Code of 1986, as amended. These Bonds and the interest thereon, shall not be deemed to constitute a debt, liability or obligation of the City of Miami Beach 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 is pledged to the payment of principal, a redemption premium or interest on the Bonds. The proceeds of the Bonds will be used by Mount Sinai Medical Center of Florida, lnc. (the "Medical Centef'), a not-for-profit corporation organized under the laws of the State of Florida, together with other available monies, if any, to (a) refund and defease all or a 721 Commission Memorandum - June 11, 2014 Health Facilities Authority Bonds Series 2014 Page 2 of 3 portion of the currently outstanding City of Miami Beach Health Facilities Authority Hospital Revenue Refund Bonds, Series 2004 (Mount Sinai Medical Center of Florida) (such bonds or portion thereof to be refunded, the "Refunded Bonds"), previously issued for the benefit of the Medical Center, (b) pay (or reimburse) the cost of undertaking certain capital improvement owned or to be owned by the Medical Center, (c) fund a deposit to a debt service reserye, if any, and (d) pay expenses in connection with the issuance of the Bonds and the refunding and defeasance of the Refunded Bonds. Besides refinancing all or a portion of the Series 2004 Bonds, the Series 2014 Bonds are also being issued to finance the construction of a new surgery tower which will contain approximately 12 operating rooms and between 120-160 beds. The proceeds will also be used forthe expansion of the emergencydepartmentfrom 16,700 sq. ft. to 37,000 sq. ft. and for other renovations throughout the Medical Center. BACKGROUND The City Commission of the City of Miami Beach adopted Ordinance No. 90-2701 on July 25, 1990, creating the City of Miami Beach Health Facilities Authority (the "Authoritl') to assist health facilities in the acquisition, construction, financing, and refinancing of health facility related projects in the City. The Ordinance, as amended, provides that the Authority can issue bonds and notes for the purpose of providing funds to pay all or any part of the cost of any project or any othei laMul purpose and to issue refunding bonds. Further, it provides that the City Commission must approve any bonds issued by the Authority as the final step in the approval process. The Medical Center requested that the Authority assist them in the issuance of one or more series of tax-exempt bonds, to be designated as the City of Miami Beach Health Facilities Authority's Hospital Revenue and Refunding Bonds, Series 2014 (Mount Sinai Medical Center of Florida), or such other designations as may be appropriate, in an aggregate principal amount not to exceed $200,000,000 (the "Bonds"). These bonds are expected to consist of one or more series of fixed rate bonds. The proceeds of the Bonds will be used to (1) refund all or a portion of the Authority's outstanding Series 2004 Bonds that have been issued on behalf of the Medical Center, (2) pay (or reimburse) the cost of undertaking certain capital improvements owned or to be owned by the Medical Center (3) fund a debt service reserve for the Bonds, and (3) finance the cost of issuance of the Bonds. The Bonds will be sold pursuant to a public oflering. As in the past the Bonds will be suppo(ed by a guarantee of the Mount Sinai Medical Center Foundation, Inc., and will be secured by a mortgage on the hospital facilities of the Medical Center. The Authority held a public hearing on May 15, 2014, as required by Section 147(f) ot the lnternal Revenue Code of 1986, for the purpose of giving all interested persons an opportunity to express their views in connection with the Authority's proposed issuance of the Series 2014 Bonds. Following which, the Authority adopted a Resolution authorizing the issuance of the Authority's Series 2014 Bonds, the proceeds of which will be used by the Medical Center as mentioned above. 722 Commission Memorandum - June 11,2014 Health Facilities Authority Bonds Series 2014 Page 3 of 3 The Authority, at its May 15, 2014 meeting, also approved a fee waiver for the upfront and annual fees. CONCLUSION The Administration recommends that the Mayor and city commission of the city of Miami Beach, Florida, approve the resolution which authorizes the City of Miami Beach Health Facilities Authority to issue the Bonds as detailed above, including the approval required under Section 147(f) of the lnternal Revenue Code of 1986, as amended. JLM:PW:jr T:\Agenda/2O14lJune 1'1lRegular/HFA Bonds-Comm Memo June 2014 723 RESOLUTION NO. RESOLUTION OF THE NIAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE ISSUANCE AND SALE OF'NOT TO EXCEED $2OO,O(]O,O[)O PRINCIPAL AMOLIIIT OF CITY OF MIAMI BEACH HEALTH F'ACILITIES AUTI{ORITY HOSPITAL REVENUE AND REFLINDING BONDS, SERIES 2014 (MOLINT SINAI MEDICAL CENTER OF FLORIDA), BY THE CITY OF MIAMI BEACH HEALTI,I FACILITIES AUTHORITY, INCLUDING THE APPROVAL REQUIRED BY SECTION 147(f) OF THE TNTERNAL REVENUE CODE OF 1986, AS AMENDED; PROVIDING THAT SAID BONDS SHALL NOT CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF THE CITY OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION THEREOF BUT SHALL BE PAYABLE SOLELY FROM THE REVENUES PROVIDED THEREFOR: AND PROVIDING AN EFFECTTVE DATE. WI-IEREAS, the City of Miami Beach Health Facilities Authority (tlre "Authority") was cteated by Ordinance No. 90-2701 adopted on July 25, 1990 (the "Ordinance") by the Mayor and Cily Cormlission of the City of Miami Beach, Florida (collectively. the "Commission") pulsuant to the Health Facilities Ar-rthorities La,uv, Chapter 154, Part Iil, Florida Statutes. as amended. (the "Act"); and WI-IEREAS, the Oldinance was amended by Ordinance No. 9l-2738 adopted on Aplil 10, 1991 by the Comrnission, ordintrnce No. L)2-2776 adopted on Ivlarch 4, 1992 by rhe Comnrission and Ordinance No. 97-3086 adopted on July 2, 1.997 by the Comurission and taking eflecl on January t, 1998; and WHEREAS, on May 15,2014, as required by Sectiorr 1a7(f) of the Intemal Revenne Code of 1986, as amended (tlie "Code"), a public hearirrg was held. lor which there w.as reasonable pttblic notice published on Aplil 27.2014 in The Miami Herald (a copy of rvhich nolice is attached hereto as Exhibit I and made a palt hereot), for the purpose of git,ing atl interested persolrs an opportr-urity to express their views in corurection with the Authority's proposed issnance of its not to exceed $200.000,000 principal amount of City of Miami Beach 724 Health Facilities At(hority Hospital Revenue and Refunding Bonds. Series 2014 (Mor.rnt Sinai Medical Centel of Florida) (the "Bonds"); zurd WI{ERIAS. on lr4ay 15, 2014, the Authority adopted a resohrtion, a copy of rvhich is attached hereto as Exhibit Ii and rnade a parl hereof (the "Bond Resolution"), autholizing, r-rnder the provisions ol the Act and the Florida Indr-rstrial Development Finar.rcing Act, Chapter 159, Pat II, Florida Statutes, as amended, the issuance of the Bonds, the proceeds of which wili be loaned to Mour.rt Sinai Medical Center of Florida, Inc., a not-fbr-profit corporation organized under the laws of the State of Flolida (the "Medical Center"), and used. together witl.r any orher available moneys, if any, to (a) refund and defease all or a portion of the cr,u'rently outstandilg City of N4lami Beach Ilealth Facilities Authority Hospital Reveuue Refi.urding Bonds. Series 2004 (Mount Sinai Medical Center of irlorida) (such bonds or portion thereof to be refunded, the "Refunded Bonds"), previously issued for the benefit of the Medical Center, (b) pay (oL leimburse) the cost of undertaking certain capital improvements olvned or to be olvned by the Nledical Center, (c) fund a deposit to a debt service reserve, if any. aud (d) pay expenses in connection with the issuance of the Bonds and the refturdins and defeasance of the Refunded Bonds: and WHEREAS, the Ordinarrce, as amended, sales of bond issues of the Authority and Section Cornmission of the issuance of the Bondsl and reqnires the approval by the Commission of 147(0 ofthe Code requires the approval by the WHEREAS, this Commission desires to approve the Bond Resolution and the issuance and sale of the Bonds pul'suant thereto. NOW, THEREFORE, BI] IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF TIIE CITY OF MIAMI BEACH. FLORIDA: 4206290/3i MtAtv4l 725 Section i. The Bond Resolution adopted by the Authority on May 15, 2014 and the issuance and sale of the Bonds pursuant thereto are hereby in all respects approved, including approval of the issuance of the Bonds in a principal amollnt not to exceed $200,000,000 in accordance with Section 147(f ofthe 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, Flolida or of the State of Florida or of any political subdivisior.r thereot, but shall be payable solely lrom the revenues leferred to in the Bond Resolution, and neither the faith and credit nor any taxing power of the City of lvliami Beach, Florida or ofthe State ofFlolida ot ofany political subdivision thereofis pledgecl to the payment of the principal of. redernption premium' if any, ol inlerest on the Bonds. Section 3. This resolutior.r shall take effect imrnediately upon its adoption. ADOPTED this _ day of _, 2014. (sEAL) Attest: Mayor City Cletd APPROVED ASTO FORM & LANGUAGE & FNH EXECUTION l' I I (-- r-rt,-lt P--'"*{- , ,.r, \- -eiifiiiorney- ----J;:- 4296290/3/MtAMt 726 EXHIBIT I NOTICE OF PUBLIC HEARING 727 CITY OF MIAMI BEACH HEALTH FACIL]TIES AUTHORITY PUBLIC HEARING NOTICE OF PUBLIC HEARING REGARDIHG THE PBOPOSED ISSUANCE BY THE CITY OF MIAMI BEACH HEALTH FACTLITTES AUTH0R|TY 0F Up T0 $200,000,000 }IOSPITAL HEVENUE AND HEFUNDING BONDS tMouNT stNAl MEDTCAL CENTEH 0F FL0R|DA) N0tjce E h€reby oiyen hat a public hearing rrill b€ held by 0r on behail oi fre Crty af Miami Eeae]r Htalth Facilities Auttr tty (tre 'Authorig') on May 15, 2014, commencing a1 '1'l:00 a-m., or shortly $ereafter, in the City Manage.t Large Confef€nce Boom, &ty Hall, Cit, oi Miami Beach, Florida 1700 Convenlion Cenler Drive. 4fi FIoo( Miami Beaci, Horida 33i39, tor the purp{se 0I prsviding a reasonable cpportunity for inleresled persons to expr€ss their vietys, botlr omlly and in wiiing iwhich musl be received by the Aulirority belore lie hearing dale in an appropriately ma*ed envelcpe), on the pmposed issuance by tfle fuidlodty 0f its Crty of tliami Eeach Heallh Facjlilies Auhffity Hospihl Revenue and flelunding Bonds fiount Sinal l,ted,cal Center of Florida), in one or more series, in an aogregate pnncipat amounl nol to exceed $200,000,000 (the'Bonds"). The proceeds 0l the Bonds will bs loaned to Mount Sinai Medical Center ot Rorid4 hc. (thE 'Medcal Center"), a not-tor-prolil corporai0n organized under he laws ol lhE State ol Florida, a,.rd will be used, together wilh other availabla monlas, if ary, to: ii) refund all or a porion ol $e fien outstaMing $107,075,000 origrnal principal arnount Cily ol Miami Beach Healtir Facilites tuthority Hosprtal Revenue Reilnding 8onds, Seoes 2004 (Mount Sinai Medlcal C€nter ot Ftorida) (the 'Pnor Bonds"), (ii) pay {or reimburse) ttre cmt of the Proiect (as descnbed below}, (iir} tund a debt seryrce reserue ior lire Bonds, if any, and (iv) pay certain expenses in connestion with fis is$ance oI lhe Boflds and the rElunding of the Prior Eonds lo bc r€runded. The Prior Bonds were issued lo refinance certain healli care facilities, induding iard, buildings. lir fes, fumishings. equipment, leasehold interests and ofier tangible and intangiNe propedy, whkh are owned by lhe Medical Center and are parl 0l tE Medical C€filels ,atilitjes lorated at 4300 Altm Road, Miami B€ach, Flonda- The koie{;t consists ol l,he undedallng oi addilio{ral Gpital imtroremenls owned 0r to be 0w[ad ry fte Medical Cefller, incldiflg lhs consbucliofl 0, a ,}ew patient tower, the replacemefll 0l lhe emerg€ocy deparment, he replacernent o[ the operatlng room sites and $e mqrisition, conslruclion, renovalion, modmcation, modemizalion, eqripping, relocation and consolidatm of oiiler buildings, fixtufes, iumishings, equipment, leasehold interests and othertangiue and ifltangible pmpenr, which are part oi or will be part oi the Medcd Center's facililes i0cated at 4300 Ailon fload, Mrani Beach, Florida Ihe Bonds and the interesl thereon shall nol €onstit!,le a debl, liati'iv or obligalio{ ol t}e Gi8 oF Miami Beach, Florida,0r0f $e StateoiFlodda ff ol ary polrtical subdivision $ereol, but shallbe payable solely lrom he sources dedged [r€rBlo., indudrng loan payments payable under a loan agrcement h be Bnlel-€d inlo by and belE6en the Aulhonty and fie llredcal Cenler. fuE0ant to Secti0n 286-0105, Fla Strt, tl€ Aufiofliy hereby advises tfie public hal if a person dectdes to appeal any decision made by be Atnhority witt respect to any matter consid€red al ils meelino Dr ils hearing, such person must ensJre that a vebatim rBcord ol lhe proceedngs is made, which resord In6ludes lhe testimony and evidence upon which tle appeal is t0 be based.'lhis noiice does noi constitute consent ry fie Authority lfi ihr inFoducliofl $ adni$sion 0, olherwlse lnadmisslble or lnelevanl evidence, nor does it authorize challenges or appeals nol oth€Mise allovyed by law. ln accordance wlft {rB Arnericafls wib 0isabililies Aci ol 1990, peBons fleeding special accomm0dation to participate in this prDceeding. or to rsqle$ informaiion 0n access for persons wifi disabililies. or to request this publication in accessit e format, orlo rRqjesl slgn hnguaqe intEryrelers, should contact lie City oI Miami Beach Cily Oerkb 0mce al (305) 673-741 1, no later tlan foff {4} days pnor to the proceeding. lf hearisg impaired, con{ml the City Clerlds olfice via lhe Floida Eelay Senice numbers, (800) 955-8771 fl-lf) or (800) 955-8770 {VO|CE). lhis notic8 ls publishsd pursuanl t0 tie requirBmeflls 0f SECt!ff 147(f) 0l he lntemal Bevenue Code of 1986, as amended. Apnl 27,2014 Ad 8BO CITY OT MIIITII BEACH HEALIH FACITITIES AIJTHOBITY 728 EXHIBIT II BOND RESOLUTION 729 RESOLUTION A RESOLUTION (i) ar-rthorizing the issuance of City of Miarni Beach Health Facilities Authority Hospital Revenne and Refunding Bonds, Series 2014 (lvlount Sinai Medical Center of FloLida) (the "Bonds") of the City ollvliami Beach Health Facilities Authority (the "Authority") in an aggregate principal amorlnt not to exceed $200,000,000, for the purpose ofploviding fur.rds to be used, together r.vith other available lnoneys, if any, to: (a) refund and defease all or a portion of the cun'ently outstanding City of Miami Beach Health Facilities Authority Hospital Revenue Refunding Bonds. Series 2004 (Mount Sinai Medical Center of Florida), (b) pay (or reimbr.u'se) the cost of certain capital plojects, (c) fund a deposit to a debt service reserve, if any, and (d) pay expenses in connection rvitli the issuance of the Borlds and the refunding of the Refunded Bor.rds, to be issued under the provisions ofa Tlust Indenture and a Loan Agreernent. and to be further secured by a:r Amended and Restated Master TrtLst Indenture, a Supplemental Master Trust lndenture for Obligation No. 10. an Obligation No. 10, a Fee and Leasehold N{ortgage, Assignment and Sccurity Agrccmer.rt and an Amended and Restated Guaranty and Security Agreenrent; (ii) providing that the Bonds shall not constitute a debt, liability or obiigation of the City of Miami Beach, Florida or of the State of Florida or of any political subdivision thereof but slrall be payable solely from the soruces provided tl.rerefor under the Trust Indentute; (iii) delegating to the Chainnan, or in his absence, the Vice Chainnan. the fixing of the terms of the Bonds and other details rvithin the parametcrs set forth herein; (iv) autholizing the execntion and delivery by the Authority of the TrLrst Indentr"rre ar.rd the Loan Agreement; (v) consenting to amendments in the Amended and Restated Guaranty and Security Agreement; (vi) autliorizing the execution and delivery by the Authority of an Escrow Deposit Agreement, the redemption, as applicable, of the Reflrnded Bonds and the purchase of Esclorv Securitiesl (vii) authorizing the negotiated sale of the Bonds; (viii) anthorizing the execution and delively by the Ar-rtholity of a Purchase Contractl (ix) appoirrting a Bond Trustee and Bond Registrar under the Trust Indenture; (x) approving the use of a Preliminary Official Statement and an Official Statement; (xi) ar.rtliorizing the execr-rtion and delivery of additional documents required; (xii) recomnrending approval of the Bonds by the Mayor and City Comrnission of the City of Miami Beach, Flolida; and (xiii) providing fol otller related matters. 730 WHEREAS, the City of Miarni Beach Health Facilities Authority (the "Ar-rthority") has been cleated pursuant to the Health Facilities Authorities Law, being Chapter 74-323, Laws of Florida, and Part III of Chapter 154 of the Florida Statutes, as amended (the "Health Act"), and has been determined to be needed by the Ma1,or and City Commission (collectivety, the "Commission") of the City of Miami Beach, Ftorida (the "City") under Section 4 of the Health Act; and WHEREAS, the Autholity is also a "local agency" as defined in Section 3 of the Florida Industrial Development Finar.rcing Act, being Chapter 69-104, Laws of Florida, ar-rd Part II of Chapter 159 of the Florida Statutes, as amended (the "lndustrial Act" and, together *'ith the I'Iealtli Act, the "Act"); and WFIEREAS, the Autholity is authorized pursnant to the Act to issue its bonds and its lelunding bonds and to loan the ploceeds theleofto "health lacilities" (as defined in the Health Act) located in the City to pay the cost of cerlain capital projects and to refr-urd revenne bonds issued by the Ar.rthority for the benefit of health facilities; and WHEREAS, Mount Sinai Medical Center ol Flolida, Inc., a Florida not-for-plofit corporation (ttre "Medical Center") is requestir.rg the Authority to assist the Medical Center ir.r providing funds to be used, togetl'rer with other available moneys, if any, to (i) refund and defease all or a portion of the currentLy outstanding City ol Miami Beach Health Facilities Autl.rority Hospital Revenne Refundiug Bonds, Series 2004 (Mount Sinai Medical Center of Florida) (the "Series 2004 Bonds"; the Series 2004 Bonds or pol'tion thereof to be reflu.rded hereinatter referred to as the "Refunded Bonds"), pleviousllr issued for the benefit of the Medical Center. (ii) pay (or reirnburse) the cost of undertaking certain capital improvements owned or to be or,vned by the Medical Centcr (the "Project"), (iii) fund a deposit to a debt service reserve, if 731 at1y, and (iv) pay experlses in connection with the issuance of the Bonds (hereinafter defined) and the refturding and defeasance of the Refrurded Bonds, through the issuance by the Ar.rthority ol not to exceed $200,000,000 principal amount of City of Miarni Beach Health Facilities Autl.rority Hospital Revenue and Refundin-s Bonds, Series 2014 (Mount Sinai Medical Center of Florida) (the "Bonds"); and WHEREAS, the Bonds r.vill be issued under the provisions of a Trust Indentr.rre (the "Tntst Indentttre") to be entered into betlveen the Authority and U.S. Bank National Association, a nalional banking association, as truslee (the "Bond Trustee"), and the proceeds thereof rvill be loaned to tl.re N4edical Centel and tl'reil repayment secured by a Loan Agreement (the "Loan Agreement") to be entered into between the Authority and the Medical Center: and WHEREAS, the Medical Center has previously entered into an Amended aud Restated Nlaster Trr.rst h.rdenture (tire "Master Indentr.rre") with U,S. Bank National Association. a national bar.rking association, successol master trustee (the "lr4aster Trustee"), under rvhich the Medical Center and cerlain other afllliated entities which may be included therein in the future are jointly and severally liable lor the payment of obligations outstanding thereunder; aud WHEREAS, the Medical Cerrter intends to enter into a Second Amended and Restated Master Trust Indenture with the Mastel Trustee which, r-rpon obtaining the required consents under the Master Indenture. will amend and restate the Master Indeuture; and WHEREAS, in conlection rvith the issuance of the Bonds by the Autholity and the loan of the proceeds thereof to the Nledical Center, the Medical Center will enter into a Snpplemental Master Trust Indenture for Obligation No. 10 rvith the Master Trustee, sr"rpplementing the Master Indentnre, pursuant 1o rvhich Obligation No. 1 0 ("Obligation No. 10") will be issued securing the 4 2I62 9 1 /s/i,,flAtul t 732 obligation of the Medical Center to make payments under the Loan Agreernenl in respect of the Bonds; and WHEREAS, Mount Sinai Medical Center Foundation, Inc., a Florida not-for-profit corporation (the "Foundation"), will guarantee to the Bond Trr.rstee the payment of the principal ol, redemption premium, if any, and interest on the Bonds, all as more specitically set lorth in an Amended and Restated Guaranty and Security Agreement (the "Restated Guaranty Agreenient") to be entered into betrveen the Four-rdation and the Bond TrtLstee. lvl-rich will amend and lestate the Amended and Restated Guaranty and Security Agreernent dated as of September 1, 2012 (the "2012 Restated Guaranty Agreen-rent") betrveen tl-re Foundation and the Bond Trustee; ar-rd WIIERIAS, as security for Obligation No. 10 and any other obligations outstanding under the Master hrdenture from time to time, but subject to release in accordance r.vith its terms, the Medical Center has previously delivered to the Mastel Trustee, a Fee and Leasehold Mortgage, Assignment and Security Agreement, as previor.rsly arxended, which will be modified in connection witlr the issuance of Obligation No. 10; and WHIIREAS, on this date, a pLlblic hear:ing was held in accordance with section 1a7(f of the h.rternal Reveuue Code of 1986, as amended. ibr which there was reasonable public notice pubtished on April 27,2014 in The lr4iarni Herald, fbl the puryose of giving all interested persol'rs an opportunity to express their viervs on the proposed issuance of the Bonds; and WIIEREAS, the Medical Center has advised the Authority that the Bonds rvill have an Investment Grade Rating fiom Fitch and Moody's (as tl.rose tenrs are defined in the Authority's Adrninistrative Procedures); and 42S6291,/3/MlAN,l 733 WHEREAS, the Autliority desires to authorize the issuance of tlie Bonds for the above described pt]lposes and to recommend for apploval to the Commission the issuance of the Bonds: and WHEREAS, the Authority further desires to autholize the sale ol the Bonds through a negotiated sale to Raymond James & Associates, Inc. and Wells Fargo Bank, National Association, as underwriters (the "Undenvriters"). since tlie Medical Center had reque sted such negotiated sale to the Under',witers and lbr the reasons hereinafter set lbrth. NOW THEREFORE, Be It Resolved by the City of Miami Beach Health Facilities Authority as follows: Section l. Findinss. The Authority hereby fir,ds and determines that: (1) The Medical Center is a "health facility" within the meaning of Section 154.205(8) olthe Health Act and a "health care facilily" rvithin the meaning olsection I59.27(16) of the industr ial Act. (2) The Project collstitutes a "project", rvitl.rin the rneaning of Section 154.205(10) of the l-lealth Acl and Section 159.27(5) of the Industlial Act, located in the Ciry. (3) Prusuant to Sections 154.209(10), 159.219 and 154.235 of the Health Act and Sections 159.23(7), 159.34 ancl 159.41 of tlie Industrial Act, the Authority is ailhorized ancl empowered to issue the Bonds fbr the purposes described herein. (.4) The issuance olthe Bonds by the Arithority for the prrposes described herein rvill serve a valid public pulpose by advancing the commerce, wellare and prosperity of the City and its people. (5) The Authority and the City are each a "local agency" as dellned in Section 159.27(4) of the Industrial Act, 42S6291/3/MtAMI 734 (6) As required by Section 159.29(l) olthe Industrial Act, the Project is appropriate to the needs and circumstances of, and shall make a significant contribution to the economic grouth of, the local agency in rvhich it is located and shall serve a public purpose by adt ancing tl,e public health ofthe State ofFlorida and its people. (l) As required by Section 159.29(2) of the Industrial Act, the Medical Center is a financially responsible corporation fr,rlly capable and willing to lulfill its obligatious under the Loan Agreement. inclr.rding the obligation to rnake payments in the amounts and at the times required to pay the principal of, prernir-un, if any, and interest on the Bonds and other paynents reqr-rired under the Loan Agleement, to operate, repair and mainlain at its o$,n expense the Project and to serve the purposes of the industrial Act and such othel lesponsib ilities as are imposed under the Loan Agreemenl. (8) As required by Section 159.29(3) of the Industrial Act, the City, as tl.re local agency in u'hicl.r 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 Lrtilities and public services. that rvill be necessary tbr the construction, operation. repair and maintenance of the Project and on account olany increases in population or other circumstances resulting therefi'om. (9) As lequired by Section 159.29(4) of the Industrial Act, adeqnate plovision shall be made in the Loan Agreement for the operation, repair and maintenance of the Project at the expense of the Medical Center, and tbr tl'rc payment of the principal o[, premium, if any, and interest on the Bonds. 4 2 962 9 1 /3/ [r iA t!, 735 (10) As required by Section 159.29(5) ofthe Industrial Act, the costs of the Project to be paid from the proceeds of the Bonds shall be "costs" of a "project" rt'ithin the meaning of Sections 159.27(2) and 159.27(5), r-espectively, of the Industrial Act, (1 1) The Medical Center has adviscd the Authority that no certificates of need from tl.re Florida Agency for Health Care Administration are required with respect to the Project. (12) Review and comment from the Health Council of South Florida, Inc. (the "Health Council") as to the issuance of the Bonds for the purpose of refuncling the Refunded Bonds was requested and tlie I-Iealth Councit has advised that it has no material concerns witl.r respect thereto. (13) Pursnant to Section 218.385 of the Florida Statutes, as amended, the sale of the Bonds to the Undenvriters on the basis of a negotiated sale rather tl.ran a pr-rblic sale by cotlpetitive bld is in the best ir.rterest of the Ar.rthority and the Medical Center, and the Authority hereby fi.u'ther finds and detennines that the following reasons necessitate such sale of the Bonds to the Underwriters tlrrough a negotiated sale: (a) Bonds issued by public bodies tbr the benefit ol not-for-profit hospitals snch as the Medical Center ("healtir care bor.rds") genemlty involve specialized situations and transactions which need detailed analysis, structuring and explanation throughout the course of the issue by sophisticated financial advisors, investtuent bankers and similar parlies, such as the Undenvriters, experienced in the structurir.rg of issues of health care bonds ("health care investment bani<ers"), much of u,hich rvould not generally be available orr a timely basis in the case of health care bonds issued pursttant to a public competitive sale. 42S6291/3/lvllAMI 736 (b) Health care bond issues generally involve a rather detailed and often complicated explanation to potential investors of the structure of tl-re issue, the nature of the r-rnderlying obligor and the impact upon each of the foregoing of Federal and state health care regulations, including Medicale and Medicaid practices and procedures, and the assistance of a health car€ investment banker in pleparing necessary offering documents and related inlormation is extren-rely desirable in ensr-rring fu1l and accurate disclosure of all relevant inibrrnation. (c) Fol the reasons described in (a) and (b) above and other related reasons, most of the health care bonds heretofore issued throughout the tlnited States have involved par'licipation thror"rghout the structurirrg and offering process of heahh care investment bankels rvho have purchased or alranged for the purchase of the health care bor-rds through a negotiated sale rather than through a pnblic 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. (d) Finally, the market lor health care bonds snch as the Bonds is volatile, making the presence of the Underr.vriters, rvho have participated and r.vill participate in the strr"rcturing ol the Bond issue, desirable in atternpting to obtain the most attractive financing for the Authority and the Medical Center. Section 2. Authorization ol the Bonds. Tlrere is hereby authorized the issuance. under and pursuant to the Tmst Indenture, of the Bonds, to be desigr.rated as "City of Miami Beach Health Facilities Authority Hospital Revenue and Refr-urdir.rg Bonds, Series 2014 (Mount Sinai Medical Center ol Florida)", in an agglegate principal amount not exceeding 5200,000,000, and the loan of the ploceeds thereol to the Medical Center to (i) lefund and defease the Reflinded 4296291/3/MlAMt 737 Bonds, (ii) pay (or reimburse) the cost of the Project. (iii) fund a deposit to a debt service reserve, if any, as shall be determined by the Ir4edical Center, and (iv) pay expcnses in comection with the issuance of the Bonds and the refunding and defeasance of the Refunded Bonds. The principal of, premiun, if any, and interest on tl.re Bor:ds shall not be deemed to constitute a debt, liability or obligation of the City or of the State of Florida or of any political sr-rbdivision thereof, but sl-rall be payable solely fronr the sources pledged therefor under the Tnrst Indenture and neither the faith and credit nor any taxing porver of the City or of the State of Florida or of any political snbdivision thereof is pledged to the payment ol the principal of, premirnn, if any, or interest on the Bonds. Section 3. Tenls of the Bonds. The Bonds shall be payable as to principal and interest in lalvtirl money of the United States of Arnerica in accordance rvith the provisions of the Trust Indenture, and shall be issued or.rly as fr.rlly registered bonds withorrt coupons in denominations ot'$5.000 and integral nrultiples tlrereol. The Bonds shall be initialty issued in book-entry-onty fbrm through The Depository Trust Company, New York, New York ("DTC") and shall be registered in tlre name of Cede & Co. The Chainnan of the Authority or, in his absence, the Vice Chairman of the Authority is hereby ar-rthorized on behalf of the Ar-rthority to approve, subject to the Iirnitations contained herein, the final terms of tl, e Bonds, lvl, ich approval lvill be evidenced by the execution of the Purchase Contract (hereinafter defined) on behalf of the Authority as provided herein. The aggregate principal amount of the Bonds shall r-rot exceed $200,000,000; the interest rates on the Bonds shall r.rot exceed 6.00% per allnum; the terrn of the Bonds shall not exceed 35 years; and the Bonds may be issued as serial and/or term bonds and may be subject to optional 4296291i3/MlAMl 738 and mandatory redemptions and purchase as shall be provided in the Trust Indenture. The Bonds shall be initially dated such date as shall bc approved by tl.re Chairman, or in his absence, the Vice Chairman, and shal1 be executed on behalf of the Autholity rvith the official rnanual or facsirnile signature of its Cl.rainnan or, in l.ris absence, its Vice Chairman and attested with the official manual or facsimiie signature of a Designated Member (hereinafter defined). Section 4. Designation of Attesting Members. The nrembers of the Authority, other than the Chaimran or Vice Chainnan to the extent the Chairman ol Vice Chairman execute the clocuments described herein. (individually a "Designated Member"), are each heleby designated and authorized on behalf of the Ar.rthority to attest to the seal of the Authority and to the signature of tl.re Chairman or Vice Chairman of the Authority as they appear on the Bonds, t1.re Trust Indenture, the Loan Agreement, the Escrow Deposit Agreemeirt (l.rereinafter defined) and any other documents lvhich may be necessary or helptirl in connection with the issuance and delivery of the Bonds, the application of the proceeds thereof and the refunding of the Rel-unded Bonds. Section 5. Authorization of Execution and Deliver), of Trr-rst Indenture. The Autholity does hereby authorize and approve the execution by the Chainlan or Vice Chairman and a Designated N{ember of the Authority and the delivery of the Tnrst Indenture, The Trust Indenture shall be in sr.rbstantially the fbrm thereof attached hereto and marked Exhibit A and hereby approved, witl.r such changes therein as shall be approved by the Cl.rairman or Vice Cl-rairman executing the same, with sucli execution to collstitute conclusive evidence of such officer's approval ar.rd tl.re Ar.rtholity's approval of any changes therein frorn the fonn of Trust Indenture attached hereto. 10 739 Section 6. Authorization of Execulion and Delivery of Loan Agreernent. The Authority does hereby authorize and approve the execution by the Chairman or Vice Chairnran and a Designated lvlember ol the Authority and the delivery of the Loan Agreement. The Loan Agreement sliall be in substantially the form thereof attached hereto and marked Exhibit B and hereby approved, i.vi th such changes therein as shall be approved by the Chairrnan or Vice Chairman executing the same, with such execution to constitute conclusive evidence of such officer's approval ar.rd the Authority's approval ol any cl.ranges therein frorr tl're form of Loan Agreement attached hereto. Section 7. Consent to Amendrnents in Restated Guarant)i Agleement. The Authority does hereby consent to the amendments to be cor-rtained in the Restated Guaranty Agreement in older to (i) extend the guarantee thereunder to the payrnent of amotmts due under the Loan Agreement. and (ii) delete the conditiou that the Authority provide prior wlitten consent to certain amendrnents as contained in Section 4.1 of the 2012 Restated Guaranty Agreernent. Section 8. Refr-rndine and Rederrption of Refunded Bonds: Escrow Deposit Aqreement. Ttre Medical Centel shail determine the Series 2004 Bonds .,vhich shall constitute tl.re Refunded Bonds. Tl.re Rel'Lrnded Bonds shall be called for redemption prior to rnaturity as shall be provided in tl.re E,scrorv Deposit Agreement. The Authority does hereby authorize and approve the execution by the Chairman or Vice Chairn,an and a Designated Member of tl.re Authority and the delivery of an Escrovv' Deposit Agreernent with respect to the Refunded Bonds (the "Escrow Deposit Agleement") to be entered into among the Authority, the Medical Center and the trlrstee l'or the Refunded Bonds (the "Refunded Bonds Trustee"). The Escrow Deposit Agreement shall be in substantially the foLrn thereofaltached heleto and marked Exhibit C and hereby approved, with such changes therein as 11 4296291/3/MtAN'll 740 shall be approved by tlie Chailman ol Vice Chairman executing the same, with sr.rch execntion to constitute conclnsive evidence of such officer's approval and the Authority's approval of any changes therein from the form ofthe Escrow Deposit Agleernent attached hereto. There is also hereby ar,rthorized the purchase of Escrow Securities (as shall be defined in the Esclow Deposit Agreernent) as shall be provided in the Escrow Deposit AgreemeL.rt and the Chairman or Vice Cl.railman and the Refunded Bonds Trustee are hereby authorized to execute and/or file any necessary direction lettels and subscription foms for the purchase of such Escrolv Secru'ities. Section 9. Applicatior.r of Bond Proceeds. The proceeds of the Bor.rds slrall be applied. together with cerlain other available moneys, if any, as provided in the Trust Indentr-rre, tl.re Loan Agreement and the Escrow Deposit Agreenrent. Section 10. Authorization of Negotiated Sale. Pursuant to the findings in Section I hereof, the Autl.rority does hereby authorize and applove the sale of the Bonds to tlre Underwiters thror.rgh a negotialed sale rather than a public sale by competitive bid. Section 11. Authorization of Execution and Delivery of Pulchase Contract. The sale of the Bonds in an aggregate principal amour.lt not to exceed $200,000.000 to the Underwriters, at an aggregate purchase price reflccting an underwriters' discorurt not to exceed 0.95% of the aggl'egate principal amount of the Bonds, in accordance with a Purchase Conlract (the "Pulchase Cor.rtract") to be entered into among the Atrthority. the Medical Center and the Underr.vriters, is hereby in all respects antholized and approved and there shall be executed on behalf of the AtLthority in fr.Lrtherance thereof the Purchase Contract. The Autholity does hereby authorize and appl'ove the execution and delivery of the Put'chase Contract on behalf of the Autl.rority by its Chairnran or Vice Cliainnan and such Ptuchase Contlact shall be in substantially the form 4296291/3/MIAM' 12 741 thereol'attached hereto and marked Exhibit D, and hereby approved, with such changes as shall be necessary and appropriate to reflect the flnal terms of the sale of the Bonds b-v the Authority and such further changes thelein as shall be approved by the Chainnan or Vice Chairman executing the same, r.vith such execution to constitute conclusive evidence of the award of the Bonds to the Underwriters and of such officer's approval and the Authority's approval of any changes tl.rerein fi'om the form of Purchase Contract attached hereto; provided that the Purchase Contract shall comply with the provisions of this reso|.rtion and that the final tern.rs of the Bonds contained in the Purchase Contract shall be lvithin tl.re parameters established in this resolution. Prior to the execution of the Purchase Contract by the Authority, the Alrthority must be presentcd with a disclosure statement plepared by the Underwriters in compliance w'ith Section 218.385, Florida Statr.rtes, lvhich disclosure statement shall be filed in the records of the Ar.rthority. Section 12. Appointment of Bond Trustee and Bond Registrar. U.S. Bank National Association. a national banking association, is hereby appointed the Bond Trustee and bond registrar (the "Bond Registrar") under the l'rust lndenture. Section 13. Approval olPreliminarv Official Statement. Tbe Autholity heleby appro\.es the ttse and distribution of the Preliminary Official Statement relating to the Bonds (thc "Preliminary Ofl'rcial Statement") by the Uuderwriters in connection rvith the offer and sale of the Bonds. in substantially the form attached hereto arrd marked Exhibit E, u,ith sr.rch changes as shall be necessary and appropriale to leflect the expected terms of the Bonds and to ensure acctrate disclosr.re of all lelevant information; provided. however, that except as specifically set forth in the Preliminary Oflicial Statement, the Ar.rthority makes no representations ',vith respect to the inlbrmation contained in the Preliminary Of-ficial Statement. 13 742 Section 14. Approval ol Ofilcial Statement. The Ar"rthority hereby approves the nse and distribution of the Official Statement relating to tl.re Bonds (the "Official Statement") by tlie Underw'riters in connection with the offer and sale of the Bonds in substantially the fona of the Prelirninary Official Statement attached hereto and rnalked Exhibit E, with such changes as sl.rall be necessary and applopriate to reflect the final tern:s of the Bonds and to ensure acclrate disclosr-rre of all relevant infonnation; provided, however, that except as specifically set forth in the Official Statement, tl.re Ar-rthority makes no representations with respect to the information contained in flre Official Statement. Section 15. Deliverv of the Bonds. Upon the execution of the Bonds in accordance with the provisions of the Trust Indenture, tbe Chainnan or the Vice Cl.rairman shall deposit the same rvith the Bond Registrar for authentication and delivery upon the order ofthe pnrchasers thereof. The Bond Registrar is hereby requested to atrthenticate and deliver the Bonds iu accordance '.vith the Trust IndentLrre. Section 16. Authorization of Execilion ar.rd Delivery of Cerlain Additior,al Documents. The Authority does hereby authorize the subseqnent execution ar.rd delivery of such additional doclulents as lnay be recluired in connection with the issuance and saie of the Bonds, the application of the proceeds tl.releof and the refturding of the Refi.u.rded Bonds, in such tblm or forms and rvith sr.rcl.r party or parties as shall be approved by the Chairman or Vice Chairman, including, without limitation, the Endorsement and Assignment of Obligation No. 10 to the Bond Trustee, a Tax Certificate and Agreement to be entered into among the Authority, the Medical Center and the Bond Trustcc and, ifnecessary, a letter of representations fi'om the Authority to DTC. 14 743 Sectior 17. Authorization and Ratification of Acts. T1're members, ofhcels, agents and employees of the Ar.rtl.rority are hereby authorized and directed to do all such acts and things and to execute all such documents. including, rvithout lin'ritation, the execution and delivery of any closing documents. as lnay be necessary to carry out and comply rvith the provisions of this resolution, the documents attached hereto as Exhibits A tlrough E, respectively, and any documents executed and delivered pursuant to Section 16 hereof, and all of tl.re acts and doings of such members, officers, agents and employees of the Authority which are in conformity w'ith the intent and puposes of this resolution, whether heretofore or hereafter taken or done. shall be and are hereby ratified, confinned and approved. Section 18. Recommendation to the Citv of Mian.ri Beach, Florida. A pLrblic hearing having been conducted on this date pursuant to the provisions of Section 1a7(f of the Internal Revenue Code ol 1986, as amended, for the pulpose of giving all interested persons an opportunity to expr€ss theil viervs on the proposed issuance of the Bonds, for vv.hich healing reasonable public notice was given, the Aulhority hereby lecommends that the Commission approvc the issuance of rhe Bonds. Section 19, Severabilitv. If any section, paragraph, clause or provision of this resolution shall be held to be invalid or ineifective for any reason- the remainder of this resolution sl.rall continr"re in lull force and effect, it being expressly hereby fourrd and declared that the remainder of this resolution woLrld have been adopted despite the invalidity ol ineffectiveness of such section, paragraph, clause or provision. 4296291/3/MtAMt 15 744 Section 20. Effective Date. This resohrtion shall take eftbct ir-nntediately r-rpon its adoption, ar.rd any provisions of any previous resolutions in conflict with the provisions hereir.r are hereby superseded. Adopted this 15tr'clay of May,2014. (sEAL) 42962S1/3i lVIAtMi 16 745 STATEOFILORIDA ) ) SS: COLINTY OF MIAMI-DADE) We, the r"rndersigned, do hereby certify that we are duly qualified and acting lVlembers of the City of Miarni Beach Health Facilities Authority (the "Autholity"). We further certify that lve wele present at the meeting of the Authority treld on May 15, 2014 and according to the official records of the Ar"rthority in our possession the above and foregoing constitutes a true and colrect copy of a resolution adopted at said meeting of the Alrthor..ity. We furll-rer certify that at such meeting said lesolution, pursuant lo motion made by Mark Sinnreich and seconded by Sidney Goldin, was adopted by the lollowing vote: Aye: Sidney Goldin Robert Flertzberg Mark Sinnreich Arthul Unger Nay: None Present but not voting (per F.S. Section 15a.207(9)): Marc Urnlas We further certify that plovision has been made for the preservation and ir-rdexing of said resolution, whicl'r is open for inspection by the public at all reasonable tir.nes at the office of the Chief Financial Officer of the City ol Miami Beach, Florida, in the City of Miami Beach, FloLida. 4296291/3/MlAMl t7 746 IN WITNESS WHEREOF, we have hererulto set our hands and affixed the official seal olthe Autholity this 15rl'day of May, 2014. Mern ber lsEAL] SUBSCRIBED AND SWORN aforesaid, tl.ris 15tl'day of May,2014. My Commission expiresJr.-.Q +>, zo / 7 fNotarial Seall to before me, a Notary Public in the State and Cor.urty 18 - urttisl 00t0RES ptwDEn f,::liqol, . srare o, Fto,id.uv iorm. rrpi", jurJj.'ioii *::T3l:.::l s FF. 00?256 747 EXHIBITS A THROUGH E ON FILE WITH THE AUTHORITY 748 THIS PAGE INTENTIONALLY LEFT BLANK 749