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2011-124-1517 - Amendment to 4.7 Mill Bond Res City of Miami Gardens Agenda Cover Memo Council Meeting Date: July 13, 2011 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: Utility Service Tax Advertising Requirement: (Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) N/A X Sponsor Name Danny Crew, City Manager Department: Finance Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AMENDING RESOLUTION 2007-180-686 OF THE CITY COUNCIL ENTITLED: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE ISSUANCE OF EQUIPMENT ACQUISITION REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF FOUR MILLION SEVEN HUNDRED THOUSAND DOLLARS ($4,700,000) FOR THE PURPOSE OF FINANCING OR REIMBURSING A PORTION OF THE COSTS OF PURCHASING VEHICLES, EQUIPMENT AND MACHINERY FOR VARIOUS CITY DEPARTMENTS, AND PAYING COSTS OF ISSUANCE OF THE BONDS; AWARDING THE SALE OF THE BONDS TO WACHOVIA BANK, NATIONAL ASSOCIATION; PROVIDING FOR SECURITY FOR THE BONDS; CONTAINING OTHER PROVISIONS RELATING TO THE BONDS; MAKING CERTAIN COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; PROVIDING FOR ITEM L-5) RESOLUTION Amending $4.7 Million Bond Resolution 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 ADOPTION OF REPRESENTATIONS; REPEALING ALL RESOLUTIONS IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE.”; AMENDING THE SECURITY FOR THE BONDS THEREIN AUTHORIZED; REPEALING ALL RESOLUTIONS IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE. Staff Summary: Background The City of Miami Gardens Council previously approved the issuance of bonds for equipment purchases, infrastructure improvements, land acquisition and building improvements. The five bonds were financed by Wachovia bank. The City pledged Local Government Half Cents Sales Tax and Telcommunication Services Tax to secure the financing. Later in 2009, the City issued two (2) additional taxable bonds for land acquisitions. One of the bonds was financed by Bank of America, and the City pledged the same sources of revenues. Wachovia financed the second bond. Current Situation Wachovia Bank has notified the City that due to the City’s revenue recent pledge to Bank of America on the Emerald Point land bond‐issue, we need to add the Utility Service Tax as an additional pledge to our earlier Wachovia bond issue to ensure it can meet coverage ratios and the Maximum Annual Debt Service calculation as required in the bond issue. A resolution is required to add the utility service tax as a source of “pledged revenues.” For purposes of clarity, it is important to note that this is not a request for a new bond issuance nor will it raise our debt service payments; Rather, as a housekeeping item, this resolution simply satisfies a bond financing requirement by listing all tax revenues pledged to secure said bonds so that we can maintain our required coverage ratios. Proposed Action: That City Council adopt the proposed Resolutions. Attachment: None