2001-056 RESOLUTION NO. 2001-56
A RESOLUTION OF THE CITY OF AVENTURA, FLORIDA,
APPROVING THE RESTRUCTURING OF THE RESERVE FUND
SECURING THE FLORIDA MUNICIPAL LOAN COUNCIL
REVENUE BONDS, SERIES 1999A; DELEGATING THE
AUTHORITY TO THE CITY MANAGER OR HIS DESIGNEE TO
APPROVE ANY NECESSARY AMENDMENTS TO THE LOAN
AGREEMENT; PROVIDING CERTAIN OTHER MATTERS IN
CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, participating governmental units have created the Florida Municipal
Loan Council (the "Council") pursuant to a certain Interlocal Agreement and pursuant to
Chapter 163, Part I, Florida Statutes, for the purpose of issuing its bonds to make loans to
participating governmental units for qualified projects; and
WHEREAS, the Council has issued its Revenue Bonds, Series 1999A, Revenue
Bonds, Series 1999B, Revenue Bonds, Series 2000A, and Revenue Bonds, Series
2000B, each secured by a separate reserve fund; and
WHEREAS, the City of Aventura, Florida (the "Borrower") has previously borrowed
$21,000,000.00 from the Council pursuant to a Loan Agreement dated the 1st day of April,
1999 (the "Loan"); and
WHEREAS, the Borrower and the Council desire to restructure the Reserve Fund
securing the Loan to provide for a single reserve fund securing one or more series of
bonds; and
WHEREAS, the rating agencies believe that the probability that defaults will exceed
the funding of a debt service reserve fund decreases as the number of borrowers covered
by a common reserve fund increases, assuming all other variables are equal; and
Resolution No. 2001-56
Page 2
WHEREAS, it is determined to be in the best interest of the Borrower to approve the
restructuring of the Reserve Fund to improve the credit strength of the Council's revenue
bond program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA, THAT:
Section 1: AUTHORITY. This Resolution is adopted pursuant to Chapter 166,
Florida Statutes, and other applicable provisions of law.
Section 2: APPROVAL OF RESTRUCTURING. The Borrower hereby approves the
restructuring of the Reserve Fund by the Florida Municipal Loan Council to provide for a
common reserve fund.
Section 3: DELEGATION OF AUTHORITY. The Borrower hereby authorizes the
City Manager or his designee to approve any necessary amendments to the Loan
Agreement between the Borrower and the Council dated the 1st day of April, t999 to effect
the restructuring of the Reserve Fund. Such amendments may include, but not limited to,
the amending of the definition of "Surety Bond Provider".
Section 4: AUTHORIZED OFFICERS. The City Manager, the City Clerk, the
Finance Support Services Director or any other appropriate officers of the Borrower are
hereby authorized and directed to execute any and all certifications or other instruments or
documents required by this Resolution or any other document required by the Council to
effect the restructuring of the Reserve Fund, and any such representations and agreements
made therein shall be deemed to be made on behalf of the Borrower. All action taken to
date by the officers of the Borrower in connection herewith is hereby approved, confirmed
and ratified.
The foregoing resolution was offered by Commissioner Rogers-Libert, who moved its
adoption. The motion was seconded by Commissioner Holzberg and upon being put to a
vote, the vote was as follows:
Commissioner Arthur Berger yes
Commissioner Jay R. Beskin yes
Commissioner Harry Holzberg yes
Commissioner Manny Grossman yes
Commissioner Patricia Rogers-Libert yes
Vice Mayor Ken Cohen yes
Mayor Jeffrey M. Perlow yes
Resolution No. 2001- ~"6
Page 3
PASSED AND ADOPTED this 7th day of August, 2001.
,~E'~ M. P~'RLOW, MA~"O-~
APPROVED AS TO LEGAL SUFFICIENCY:
CITY ATTORNEY