HomeMy WebLinkAboutItem I-1 Ordinance: FL Land Axquisition Revenue BondsC'it~ of ~IVlicimi ~aralens
1515-200 NW 167th Stxeet
Miami Gardens, Florida 33169
Mayor Shirley Gibson
Vice Mayor Oscar Braynon II
Councilman Melvin L. Bratton
Councilman Aaron Campbell
Councilman Andre L. Williams
Councilwoman Sharon Pritchett
Councilwoman Barbara Watson
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To: Mayor and City Council
From: Dr. Danny O. Crew
City Manager
Date: January 5, 2007
Re: Capital financing needs Ordinances and Resolution
The City needs financing to acquire police and public works facilities. The City requested
proposals on financing these capital facilities.
The proposal document RFP#06-07-005 was advertised on November 11, 2006. A broadcast
notice was sent to 773 firms. Twenty-five proposal packages were requested. Five responses
were received and opened on November 16, 2006. The five responses offered 18 options.
Chris Wallace and I met as the selection committee for the Financing RFP on Tuesday
afternoon. Pam Thompson, was also in attendance.
After considering the responses and the City's needs, the Committee has ranked the proposals
in the following order:
$4.4 million capital facility:
Rank Firm
~ Sun Trust Leasing Alternate
$14.4
2 BOA Fixed
3 Wachovia
4 Regions Banks
1 I-1) ORDINANCE
2ND READING
FLA LAND ACQUISITION
REVENUE BONDS ($14,400,000)
In reaching the ranking, we considered a number of factors including: interest rates, call terms,
collateral requirements, debt coverage requirements and flexibility and ease of utilization and
creativity in financing. The top ranked proposal offers the best all-around approach to our
potential borrowing needs for both short term and for long term:
The $4.4 million facility was to be used for the purchase of property for a public
works site and a police building. This would have required another bond issue in
2007 in order to acquire sufficient funds for both. One of the criteria of the RFP was
to ask the banks to use creativity in structuring proposals. Each bank was invited to
submit multiple proposals, which most did. These included fixed rate loans as well
as variable rate loans.
To our surprise, SunTrust submitted a unique proposal that ranked it as the
recommended proposal. Instead of limiting their proposal to the immediate $4.4
million loan, they saw by our discussion in the RFP that we would need an
additional $10 next year and proposed to fund the entire $14.4 million now. This will
save time and money by not having to have two sets of issuance costs, and we can
bank the additional monies until we need them and earn approximately 1% in
interest over what our cost is. We can do this for up to two years. The interest
earned will provide extra capital funds to pay for other needed projects.
Recommendation: That City Council approve the ordinance authorizing the negotiation of a
contract with SunTrust for the City's equipment capital facility needs and the Bond Resolution
awarding the issue.
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1 ORDINANCE NO. 2006-
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3 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
4 MIAMI GARDENS, FLORIDA AUTHORIZING THE
5 BORROWING OF FOURTEEN MILLION, FOUR HUNDRED
6 THOUSAND DOLLARS ($14,400,000); AUTHORIZING THE
7 ISSUANCE OF CITY OF MIAMI GARDENS, FLORIDA LAND
8 ACQUISITION REVENUE BONDS NOT TO EXCEED
9 FOURTEEN MILLION, FOUR HUNDRED THOUSAND
10 DOLLARS ($14,400,000); PROVIDING FOR A
11 SUPPLEMENTAL RESOLUTION SETTING FORTH THE
12 DETAILS OF SAID BONDS; PROVIDING FOR ADOPTION
13 OF REPRESENTATIONS; REPEALING ALL ORDINANCES
14 IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE;
15 PROVIDING AN EFFECTIVE DATE.
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18 WHEREAS, the City desires to authorize the borrowing of Fourteen Million, Four
19 Hundred Thousand Dollars ($14,400,000), and to authorize the issuance of bonds not
20 exceeding Fourteen Million, Four Hundred Thousand Dollars ($14,400,000) forthe purpose
21 of financing a portion of the costs of purchasing land for, and financing architectural,
22 engineering, environmental, legal and other planning costs related thereto for a City Hall,
23 Public Works Department facilities, Public Safety Department facilities and other public
24 facilities, and paying costs of issuance of the bonds, and
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26 WHEREAS, pursuant to Section 4.3 of the City's Charter, an ordinance must be
27 adopted in order to authorize the borrowing of money, and
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29 WHEREAS, the Council desires that the bonds be secured by the communication
30 services tax and the local government half-cent sales tax, as further specified by
31 subsequent resolution of the Council,
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33 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
34 MIAMI GARDENS, FLORIDA, AS FOLLOWS:
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36 SECTION 1. ADOPTION OF REPRESENTATIONS: The foregoing Whereas
37 Clauses are hereby ratified and confirmed as being true, and the same are hereby made a
38 specific part of this Ordinance.
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40 SECTION 2. AUTHORIZATION: In accordance with the provisions of the Charter of
41 the City of Miami Gardens, Florida and Chapter 166, Florida Statutes, the City Council of
42 the City of Miami Gardens hereby authorizes the borrowing of Fourteen Million, Four
43 Hundred Thousand Dollars ($14,400,000). The City Council further authorizes Land
44 Acquisition Revenue Bonds (the "Bonds") of the City, to be issued in an aggregate principal
45 amount not to exceed Four Million, Four Hundred Thousand Dollars ($14,400,000), in one
46 or more series, for the purpose of financing a portion of the costs of purchasing land for,
{M1561315_1}
ORDINANCE NO.
1 and financing architectural, engineering, environmental, legal and other planning costs
2 related thereto for, the sites of a City Hall, Public Works Department facilities, Public Safety
3 Department facilities and other public facilities, and paying costs of issuance of the Bonds.
4 The Bonds shall be designated "City of Miami Gardens, Florida Land Acquisition Revenue
5 Bonds, Series 2006" or such other designation as may be approved by supplemental
6 resolution, shall be dated such date, shall be in such denominations, shall be stated to
7 mature in such year or years not later than twenty-one (21) years from their date of
8 issuance, shall bear interest from their dated date at a rate or rates not exceeding the
9 maximum rate permitted by law at the time of issuance of the Bonds, shall be subject to
10 redemption at the option of the City at such times and prices, and shall have such other
11 details, all as shall hereafter be determined by the Council by supplemental resolution..
12 The supplemental resolution may be adopted, and the Bonds may be issued, at any time
13 after the effective date of this Ordinance.
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15 SECTION 3. AUTHORIZATION: The City Manager and the City Finance Director
16 are each hereby authorized to negotiate with banks and other financial institutions for the
17 purchase of the Bonds and with respect to the terms of the Bonds. The City Attorney and
18 Bond Counsel to the City are hereby authorized to draft documents and to do all other
19 things necessary to accomplish the issuance and sale of the Bonds.
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21 SECTION 4. CONFLICT: All ordinances or Code provisions in conflict herewith are
22 hereby repealed.
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24 SECTION 5. SEVERABILITY: If any section, subsection, sentence, clause, phrase
25 or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of
26 competent jurisdiction, such portion shall be deemed a separate, distinct and independent
27 provision and such holding shall not affect the validity of the remaining portions of this
28 Ordinance.
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SECTION 6. EFFECTIVE DATE: This Ordinance will become effective immediately
upon its final passage.
PASSED ON FIRST READING THE 2nd DAY OF NOVEMBER, 2006.
PASSED ON SECOND READING THE 13T" DAY OF DECEMBER, 2006.
ADOPTED AND PASSED BY THE CITY COUNCIL OF THE CITY OF MIAMI
GARDENS AT ITS REGULAR MEETING HELD ON THE DAY OF , 2007.
ATTEST:
SHIRLEY GIBSON, MAYOR
RONETTA TAYLOR, CMC, CITY CLERK
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ORDINANCE NO.
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Prepared by ADORNO & YOSS, LLP, Bond Counsel
APPROVED AS TO FORM AND LEGAL SUFFICIENCY:
CITY ATTORNEY
SPONSORED BY: DANNY O. CREW, CITY MANAGER
MOVED BY:
SECONDED BY:
VOTE:
Mayor Shirley Gibson (Yes) (No)
Vice Mayor Oscar Braynon, II (Yes) (No)
Councilman Melvin L. Bratton (Yes) (No)
Councilman Aaron Campbell, Jr. (Yes) (No)
Councilman Andre Williams (Yes) (No)
Councilwoman Sharon Pritchett (Yes) (No)
Councilwoman Barbara Watson (Yes) (No)
122726_1.DOC
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