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RESOLUTION NO. 2006-26175
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA AMENDING RESOLUTION NO. 2006-26153
ADOPTED BY THE CITY ON MARCH 8, 2006, TO PROVIDE THAT THE
SERIES 2006 BONDS SHALL BE SECURED BY THE RESERVE ACCOUNT;
PROVIDING FOR THE FUNDING OF THE RESERVE ACCOUNT WITH
MONEYS LOANED BY THE CITY'S GENERAL FUND; PROVIDING FOR
THE REPAYMENT OF THE GENERAL FUND MONEYS FROM
AVAILABLE MONEYS OF THE WATER AND SEWER UTILITY;
RATIFYING RESOLUTION 2006-26153; AUTHORIZING OFFICERS AND
EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY RELATED
ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on March 8, 2006, the Commission (as such term and all other capitalized
terms used in this resolution and not defined herein are defined in the Series 2006 Resolution
defined below or in the Original Resolution or the Loan Agreements described in the Series 2006
Resolution) adopted Resolution No. 2006-26153 (the "Series 2006 Resolution") authorizing four
loans from the City of Gulf Breeze, Florida local government loan pool program (as more
particularly described in the Series 2006 Resolution, "the Loans") and the issuance of four Series
of Bonds under the Bond Resolution (as more particularly described in the Series 2006
Resolution, the "Series 2006 Bonds") for the purposes described in the Series 2006 Resolution
(collectively, the "Financing"); and
WHEREAS, as provided in the Series 2006 Resolution and the Loan Agreements, the
Series 2006 Bonds were not to be secured by, nor payable from, the Reserve Account created
under the Bond Resolution; and
WHEREAS, Financial Guaranty Insurance Company, as the bond insurer of the Program
Bonds, has required that the Series 2006 Bonds be secured by the Reserve Account in the same
manner as all other Bonds issued under the Bond Resolution are secured by the Reserve
Account; and
MIAMI/4162097.2
WHEREAS, because of limitations under federal tax law applicable to the Program
Bonds, the required deposits to the Reserve Account resulting from the issuance of the Series
2006 Bonds can not be funded from proceeds of the Series 2006 Bonds; and
WHEREAS, the City has determined that it is desirable to proceed with the Financing
and to fund the required deposits to the Reserve Account resulting from the issuance of the
Series 2006 Bonds with moneys loaned by the City's general fund (the "General Fund") to the
Water and Sewer Utility (the "General Fund Moneys"), as provided in this resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. The above recitals are incorporated herein as findings.
SECTION 2. The Series 2006 Bonds shall be secured by the Reserve Account in the
same manner as all other Bonds issued under the Bond Resolution are secured by the Reserve
Account.
SECTION 3. (a) Section 4 of the Series 2006 Resolution is amended to read as
follows:
In accordance with the provisions of the Bond Resolution and the Loan
Agreements, the Loans and the Series 2006 Bonds shall be limited obligations of
the City payable solely from the Net Revenues and, to the extent provided in the
Bond Resolution and the Loan Agreements, from certain Funds and Accounts
which are pledged to the payment thereof in the manner provided in the Bond
Resolution and the Loan Agreements, and nothing shall be construed as obligating
the City to pay the Loans and the Series 2006 Bonds except from the Net
Revenues and, to the extent provided in the Bond Resolution and the Loan
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MIAMI/4162097.2
Agreements, said Funds and Accounts or as pledging the full faith and credit of
the City or any form of taxation whatever to such payments.
(b) The forms of Loan Agreements approved under the Series 2006 Resolution shall
be modified to evidence that the Series 2006 Bonds shall be secured by, and payable from, the
Reserve Account.
SECTION 4. The required deposits to the Reserve Account resulting from the
issuance of the Series 2006 Bonds shall be funded with the General Fund Moneys.
SECTION 5. The General Fund Moneys shall be repaid to the General Fund from
available moneys on deposit in the Enterprise Fund from time to time in accordance with the
provisions of Section 513 of the Original Resolution.
SECTION 6. Except as otherwise provided III this Resolution, the Series 2006
Resolution is hereby ratified in all respects.
SECTION 7. The officers, agents and employees of the City are hereby authorized
and directed to do all acts and things and execute and deliver all documents, agreements and
certificates required of them by the provisions of this resolution for the full, punctual and
complete performance of all the terms, covenants, provisions and agreement of this resolution.
SECTION 8. This resolution shall become effective ~mmedi~tely upon its adoption.
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PASSED AND ADOPTED this 11th day of April
(Seal)
Attest:
~~ PAAtk
APPROVED AS TO
FORM & LANGUAGE
& FOR CUnON
City Clerk
Robert Parcher
3
MIAMI/4162097.2
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION AMENDING RESOLUTION NO. 2006-26153 ADOPTED BY THE CITY ON
MARCH 8, 2006, TO PROVIDE THAT THE SERIES 2006 BONDS SHALL BE SECURED BY THE
RESERVE ACCOUNT; PROVIDING FOR THE FUNDING OF THE RESERVE ACCOUNT WITH
MONEYS LOANED BY THE CITY'S GENERAL FUND..
Ke Intended Outcome Su orted:
Ensure a well-maintained infrastructure
Issue:
Shall the City authorize a loan of the General Fund undesignated fund balance to the Water and
Sewer Fund as a debt reserve for its proposed Series 2006 Bonds from the Gulf Breeze, FL ,Local
Government Loan Pool?
Item Summary/Recommendation:
The Administration is recommending that the City proceed with the financing and fund the required
deposits to the Reserve Account in the amount of four million six hundred thousand dollars
($4,600,000) ,with moneys loaned by the City's General Fund, more specifically, the its undesignated
fund balance, to the Water and Sewer Fund, as provided in this resolution. The loaned moneys shall
be repaid to the General Fund with interest from available moneys on deposit in the Water and Sewer
Fund from time to time in accordance with the provisions of Section 513 of the Original Resolution.
Advisory Board Recommendation:
I
Financial Information:
Source of Amount Account Approved
Funds: 1 $4,600,000 GeneraL Fund Undesignated
Fund Balance
D 2
3
4
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
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Si n-Ofts:
Department.Director
City Manager
.....
MIAMIBEACH
AGENDAITE:M R1G-
DATE~
& MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager \c~.
DATE: April 11, 2006 O. 0
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA AMENDING RESOLUTION NO. 2006-
26153 ADOPTED BY THE CITY ON MARCH 8, 2006, TO PROVIDE THAT
THE SERIES 2006 BONDS SHALL BE SECURED BY THE RESERVE
ACCOUNT; PROVIDING FOR THE FUNDING OF THE RESERVE
ACCOUNT WITH MONEYS LOANED BY THE CITY'S GENERAL FUND;
PROVIDING FOR THE REPAYMENT OF THE GENERAL FUND MONEYS
FROM AVAILABLE MONEYS OF THE WATER AND SEWER UTILITY;
RATIFYING RESOLUTION 2006-26153; AUTHORIZING OFFICERS AND
EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY RELATED
ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
The Reserve will be funded from the General Fund Undesignated Fund Balance.
BACKGROUND
On March 8, 2006, the Mayor and City Commission adopted Resolution No. 2006-
26153 authorizing four loans from the City of Gulf Breeze, Florida local government
loan pool program and the issuance of four Series of Bonds under the Bond
Resolution for the purpose of refinancing the Series 1995 Water and Sewer
Revenue Bonds and providing additional construction funds for the City's right of
way program.
As provided in the Series 2006 Resolution and the Loan Agreements, the Series
2006 Bonds were not to be secured by, nor to be payable from, the Reserve
Account created under the Bond Resolution.
Subsequently, Financial Guaranty Insurance Company ( "FGIC"), as the bond
insurer of the Program Bonds, has required that the Series 2006 Bonds be secured
by the Reserve Account in the same manner as all other Bonds issued under the
Bond Resolution are secured by the Reserve Account; however, because of
limitations under federal tax law applicable to the Program Bonds, the required
deposits to the Reserve Account resulting from the issuance of the Series 2006
Bonds can not be funded from proceeds of the Series 2006 Bonds.
As such, the Administration is recommending that the City proceed with the
financing and fund the required deposits to the Reserve Account in the amount of
four million six hundred thousand dollars ($4,600,000) ,with moneys loaned by the
City's General Fund, more specifically, the its undesignated fund balance, to the
Water and Sewer Fund, as provided in this resolution. The loaned moneys shall be
repaid to the General Fund with interest from available moneys on deposit in the
Water and Sewer Fund from time to time in accordance with the provisions of
Section 513 of the Original Resolution.
In accordance with the provisions of the Bond Resolution and the Loan
Agreements, the Series 2006 Bonds are limited obligations of the City payable
solely from the Water and Sewer Fund Net Revenues and in no way obligates the
City to pay the Loans and the Series 2006 Bonds.
Additionally, the Administration has explored the possibility of using a surety to
replace this debt service reserve and FGIC has indicated a willingness to accept a
surety subject to their review and approval of the stated terms and conditions.
Therefore, the Administration intends to pursue the acquisition of an acceptable
surety and bring the terms and conditions of such a policy to the Mayor and City
Commission for approval at a later date, subsequent to the expected closing of this
bond transaction on May 1,2006. If an acceptable surety can be acquired, it will
replace the reserve funds and the moneys will be returned to the General Fund with
interest.
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