2002-19ORDINANCE NO. 2002-19
AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA,
AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
$13,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF
OBLIGATIONS OF THE CITY TO FINANCE AND/OR
REIMBURSE COSTS RELATING TO THE SITE ACQUISITION,
CONSTRUCTION AND EQUIPPING OF A K-5 CHARTER ELEMENTARY
SCHOOL AND THE COMPLETION OF A COMMUNITY RECREATION
CENTER AND TO PAY COSTS AND EXPENSES OF ISSUING SUCH
OBLIGATIONS; PROVIDING FOR ACOVENANT TO BUDGET AND
APPROPRIATE LEGALLY AVAILABLE NON-AD VALOREM FUNDS
EACH YEAR TO PAY THE PRINCIPAL OF, REDEMPTION
PREMIUM, IF ANY, AND INTEREST ON THE OBLIGATIONS;
PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH
OBLIGATIONS; PROVIDING SEVERABILITY AND AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF AVENTURA,
FLORIDA, AS FOLLOWS:
SECTION I. DEFINITIONS. When used in this Ordinance, the following terms
shall have the following meanings, unless some other meaning is plainly intended:
"City" shall mean the City of Aventura, Florida, a municipal corporation established
by the State of Florida.
"Commission" shall mean the City Commission of the City of Aventura, Florida.
"Cost" or "Costs" as the same relates to the Project, shall mean (A) the cost of
physical construction, reconstruction or completion; (B) the cost of acquisition or purchase;
(C) the cost of all labor, materials, machinery and equipment; (D) the cost of land and any
interests in the land; property rights; easements and franchises of any nature; (E) the cost
of indemnity and surety bonds and premiums for insurance during construction; (F) all
interest due to be paid on the Obligations and any other obligations relating to the Project
during the pedod of construction and for such period of time subsequent to completion of
acquisition and construction as the Commission deems appropriate; (G) engineering,
financial, legal and other consultant fees and expenses; (H) the cost of plans and
specifications, construction plans, surveys and estimates of costs; (I) costs and expenses
of audits, fees and expenses of any paying agent, registrar, trustee, issuer of a credit
facility or a liquidity facility, municipal bond insurance company or depository; (J)
payments, when due (whether at the maturity of principal or the due date of interest or
upon redemption) on any interim or temporary indebtedness incurred for any portion of the
Project; (K) costs and expenses related to the issuance of the Obligations or other
indebtedness related to the Project; (L) costs related to collection of special assessments;
and (M) any other costs and expenses properly attributable to acquisition or construction of
the Project, and such other expenses as may be necessary or incidental to the issuance of
the Obligations; and shall include reimbursement to the City or any other person, firm or
corporation for any moneys advanced for any costs incurred by the City or such person,
Ordinance No. 2002-19
Page 2
firm or corporation in connection with any such items or costs. The Resolution may provide
for additional items to be designated as Costs.
"Non-Ad Valorem Funds" shall mean all revenues of the City derived from any
source other than ad valorem taxation on real or personal property, which are legally
available to make the payments required in this Ordinance but only after provision has
been made by the City for the payment of all essential or legally mandated services.
"Obligations" shall mean the bonds, notes, certificates or other evidence of
indebtedness issued by the City pursuant to this Ordinance.
"Ordinance" shall mean this Ordinance enacted by the Commission, as amended
and supplemented from time to time.
"Project" shall mean those capital improvement projects set forth in the plans and
specifications on file or to be on file with the City, as the same may be modified or
amended from time to time, which are described generally in Exhibit A to this Ordinance.
"Resolution" shall mean the resolution authorizing the issuance of all or a portion of
the Obligations and setting forth the terms and details of such Obligations as described in
Section 4. The term "Resolution" shall also incorporate the provisions of any loan
agreement or other financing agreement that is approved pursuant to the Resolution and
which is executed in connection with the Obligations.
Words importing the singular number include the plural number, and vice versa.
SECTION 2. FINDINGS. The Commission finds and determines that:
(A) The acquisition and construction of the Project is necessary in order to maintain
and protect the health, welfare and safety of the citizens of the City.
(B) The most efficient and cost-effective method of financing the acquisition and
construction of the Project is by the issuance of the Obligations secured by Non-Ad
Valorem Funds in the manner set forth in Section 5 of this Ordinance and in the
Resolution.
(C) The principal of, redemption premium, if any, and interest on the Obligations shall
be paid from Non-Ad Valorem Funds, unless otherwise paid by such entity as shall provide
credit enhancement, if any, on the Obligations and in such a case, reimbursement of the
credit enhancer shall be from Non-Ad Valorem Funds. The City shall never use or be
required to use any ad valorem taxes for the payment of the Obligations. The Obligations
shall not constitute a general obligation of the City or a pledge of its faith and credit, nor
shall the holders of the Obligations have any lien or encumbrance on any property owned
by the City, including the Project.
SECTION 3. AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF
THE PROJECT. The Commission authorizes and approves the acquisition and
Ordinance No. 2002-19
Page 3
construction of the Project.
SECTION 4. ISSUANCE OF THE OBLIGATIONS. The Obligations are authorized to
be issued at one or more times in an aggregate principal amount of not exceeding
$13,000,000. The particular designation of each Obligation shall be made in the
Resolution. The Obligations shall be issued for the principal purposes of (A) paying all or a
portion of the Cost of the Project, (B) establishing debt service reserves, if deemed
necessary by the Commission, and (C) paying costs and expenses of issuing the
Obligations. The principal of, redemption premium, if any, and interest on the Obligations
shall be payable solely from Non-Ad Valorem Funds, in the manner set forth in Section 5
of this Ordinance and in the Resolution.
The Obligations shall be dated such date or dates, shall bear interest at such rate or
rates, shall mature at such time or times and in such amount or amounts as may be
determined in the Resolution, and may be redeemable before maturity, at the option of the
City, at such price or prices and under such terms and conditions as may be fixed in the
Resolution. The Commission shall determine in the Resolution the form of the Obligations,
the manner of executing such Obligations, and such other terms and provisions of the
Obligations as it deems appropriate. The Obligations may bear interest at a fixed or
variable rate, as shall be determined in the Resolution. In case any officer whose signature
or a facsimile of whose signature shall appear on any Obligation shall cease to be such
officer before the delivery of such Obligation, such signature or such facsimile shall
nevertheless be valid and sufficient for all purposes the same as if he or she had remained
in office until such delivery. The Commission shall sell the Obligations in such manner and
for such price as it determines in the Resolution to be in the best interests of the City. The
Obligations may be further secured by any credit enhancement as determined by the
Commission in the Resolution. The Resolution may also include provisions authorizing the
use of interest rate exchange instruments in connection with the Obligations.
The Obligations may be issued without any other proceedings or the happening of
any other conditions or things other than the adoption of the Resolution.
The proceeds of the Obligations shall be disbursed in such manner and under such
restrictions, if any, as may be provided in the Resolution.
The Resolution shall include, but without limitation, provisions as to the rights and
remedies of the holders of the Obligations, the application of funds, the flow of funds and
such other matters as are customarily in such an instrument. The Resolution may provide
for the City entering into one or more loan or other financing agreements with the
purchaser of the Obligations.
SECTION 5. COVENANT TO BUDGET AND APPROPRIATE. The City may
covenant and agree pursuant to a resolution to appropriate in its annual budget, by
amendment, if necessary, from Non-Ad Valorem Funds lawfully available in each fiscal
year, amounts sufficient to pay the principal of, redemption premium, if any, and interest on
any Obligation when due each fiscal year or to reimburse any credit enhancer which may
have satisfied such payment. Such covenant and agreement on the part of the City to
Ordinance No. 2002-19
Page 4
budget and appropriate such amounts of Non-Ad Valorem Funds shall be cumulative to
the extent not paid, and shall continue until such Non-Ad Valorem Funds or other legally
available funds in amounts sufficient to make all such required payments shall have been
budgeted, appropriated and actually paid. Notwithstanding the foregoing, the City has not
covenanted to maintain any services or programs, now provided or maintained by the City,
which generate Non-Ad Valorem Funds.
Such covenant to budget and appropriate shall not create any lien upon or pledge of
such Non-Ad Valorem Funds, nor shall it preclude the City from pledging in the future its
Non-Ad Valorem Funds, nor shall it require the City to levy and collect any particular Non-
Ad Valorem Funds, nor shall it give the holders of any Obligations or any credit enhancer a
prior claim on the Non-Ad Valorem Funds as opposed to claims of general creditors of the
City. Such covenant to appropriate Non-Ad Valorem Funds shall be subject in all respects
to the payment of obligations secured by a prior or future pledge of such Non-Ad Valorem
Funds (including the payment of debt service on bonds and other debt instruments).
However, the covenant to budget and appropriate in its annual budget for the purposes
and in the manner stated in this Ordinance and in the Resolution shall have the effect of
making Non-Ad Valorem Funds available for the payment of the Obligations, and placing
on the City a positive duty to appropriate and budget, by amendment, if necessary, Non-Ad
Valorem Funds sufficient to meet its obligations under this Ordinance and the Resolution;
subject, however, in all respects to the restrictions of Section 166.241(3), Florida Statutes,
which provides, in part, that the governing body of each municipality make appropriations
for each fiscal year which, in any one year, shall not exceed the amount to be received
from taxation or other revenue sources; and subject, further, to the payment of services
and programs which are for essential public purposes of the City or which are legally
mandated by applicable law.
SECTION 6. TAXING POWER NOT PLEDGED. The Obligations issued under the
previsions of this Ordinance and the obligation to repay any credit enhancer of such
obligations shall not be deemed to constitute a pledge of the faith and credit of the City, but
the Obligations and repayment shall be payable from the Non-Ad Valorem Funds in the
manner provided in this Ordinance and the Resolution. The issuance of the Obligations
under the provisions of this Ordinance shall not directly, indirectly or contingently obligate
the City to levy or to pledge any form of ad valorem taxation. The holder of the Obligations
shall never have the right to compel any exercise of the ad valorem taxing power on the
part of the City to pay the Obligations or the interest on the Obligations against any
property of the City, nor shall the Obligations constitute a charge, lien or encumbrance,
legal or equitable, upon any property of the City.
SECTION 7. REMEDIES OF HOLDERS OF OBLIGATIONS, The holders of the
Obligations, except to the extent the rights given to them pursuant to this Ordinance may
be restricted by the Resolution, may, whether at law or in equity, by suit, action,
mandamus or other proceeding, protect and enforce any and all rights under the laws of
the State of Florida or granted under this Ordinance or under the Resolution, and may
enforce and compel the performance of all duties required by this Ordinance or by such
Resolution, to be performed by the City.
Ordinance No. 2002-19
Page 5
SECTION 8. ALTERNATIVE METHOD. This Ordinance shall be deemed to provide
an additional and alternative method for the doing of things authorized hereby and shall be
regarded as supplemental and additional to powers conferred by other laws, and shall not
be regarded as in derogation of any powers now existing or which may hereafter come into
existence. This Ordinance, being necessary for the welfare of the inhabitants and/or
property owners of the City, shall be liberally construed to effect its purposes.
SECTION 9. GENERAL AUTHORITY. The members of the Commission of the City
and the officers, attorneys and other agents or employees of the City are authorized to do
all acts and things required of them by this Ordinance, or desirable or consistent with its
requirements for the full punctual and complete performance of all the terms, covenants
and agreements contained in this Ordinance.
SECTION 10. SEVERABILITY. If any section, paragraph, clause or provision of this
Ordinance shall be held to be invalid for any reason, such invalidity shall not effect the
validity or enforcement of any of the remaining provisions. This Ordinance shall take
precedence over any other ordinance or resolution of the City to the extent of any conflict
or inconsistency with each.
SECTION 11. EFFECTIVE DATE. This Ordinance shall take effect immediately upon
its enactment on the second reading.
The foregoing Ordinance was offered by Commissioner Rogers-Libert, who moved
its adoption on first reading. This motion was seconded by Commissioner Grossman, and
upon being put to a vote, the vote was as follows:
Commissioner Jay R. Beskin
Commissioner Ken Cohen
Commissioner Manny Grossman
Commissioner Harry Holzberg
Commissioner Patricia Rogers-Libert
Vice Mayor Arthur Berger
Mayor Jeffrey M. Perlow
yes
yes
yes
yes
yes
yes
yes
The foregoing Ordinance was offered by Commissioner Rogers-Libert, who moved
its adoption on second reading. This motion was seconded by Commissioner Cohen and
upon being put to a vote, the vote was as follows:
Commissioner Jay R. Beskin
Commissioner Ken Cohen
Commissioner Manny Grossman
Commissioner Harry Hoizberg
Commissioner Patricia Rogers-Libert
Vice Mayor Arthur Berger
Mayor Jeffrey M. Perlow
yes
yes
yes
yes
yes
yes
yes
Ordinance No. 2002-19
Page §
PASSED on first reading this 2nd day of July, 2002.
PASSED AND ADOPTED on second reading this 18th day of July, 2002.
~I~:RC:Y M. I:~RLOW,~R
APPROVED AS TO LEGAL SUF/~CIENCY:
EXHIBiT A
DESCRIPTION OF THE PROJECT
Complete descriptions of the Project are set forth in the plans, specifications and
records of the City. A general description of the Project is as follows:
A. Acquisition, construction and equipping of an approximately 44,000 square
foot K-5 charter elementary school, including acquisition of the site thereon.
B. Completion of the construction and equipping of an approximately 25,000 square
foot Community/Recreation center.