Fort Walton Beach Resolution — 2011-08-Fire Truck Purchase — reading text

RESOLUTION NO. 2011- 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA ( THE " CITY ") AUTHORIZING THE ISSUANCE BY THE CITY OF A NOT EXCEEDING $ 965, 000 CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2011, TO PROVIDE FUNDS TO FINANCE THE PURCHASE OF A FIRE TRUCK AND CERTAIN EQUIPMENT FOR USE AT THE MUNICIPAL GOLF COURSE AND PAY ALL OR A PORTION OF THE COSTS ASSOCIATED WITH THE ISSUANCE OF SUCH NOTE; ACCEPTING THE PROPOSAL OF HANCOCK BANK TO PURCHASE SUCH NOTE PURSUANT TO A NEGOTIATED PRIVATE PLACEMENT; AUTHORIZING THE EXECUTION AND DELIVERY AND THE SUBSTANTIAL FORM OF A LOAN AGREEMENT BETWEEN THE CITY AND HANCOCK BANK; COVENANTING TO BUDGET AND APPROPRIATE LEGALLY AVAILABLE NON -AD VALOREM FUNDS TO PAY THE NOTE; RATIFYING CERTAIN ACTIONS TAKEN PRIOR TO THE DATE HEREOF WITH RESPECT TO THE REQUEST FOR PROPOSALS FROM PROSPECTIVE PURCHASERS OF THE NOTE; DELEGATING CERTAIN AUTHORITY TO THE MAYOR, MAYOR PRO -TEM, CITY MANAGER, CITY CLERK, OTHER OFFICERS OF THE CITY, CITY STAFF AND OTHER REPRESENTATIVES OF THE CITY IN CONNECTION WITH THE ISSUANCE OF THE NOTE; PROVIDING FOR REPEAL OF INCONSISTENT PROVISIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, THAT: Section 1. Authority for this Resolution. This resolution is enacted pursuant to the provisions of Chapter 166, Florida Statutes, the City Charter and other applicable provisions of law. Section 2. Findings. It is hereby ascertained, determined and declared that: A. On February 2, 2011, the City of Fort Walton Beach, Florida ( the City ") requested proposals ( the " Request for Proposals ") to provide the City with  the necessary funds ( the " Loan ") to finance the purchase of a fire truck and certain equipment for use at the municipal golf course ( the " Project ") and pay all or a portion of the costs associated with such Loan. B. On February 17, 2011 certain interested parties submitted their proposals to the City. On March 8, 2011, upon the recommendation of the City's financial advisor, Public Financial Management, Inc., bond counsel, Nabors, Giblin & Nickerson, P. A., and City staff, the City accepted the proposal of Hancock Bank ( the " Purchaser ") in the form attached hereto as Exhibit A ( the Proposal "). C. It is necessary and desirable and in the City's best interest to provide for the execution and delivery of a Loan Agreement ( the " Loan Agreement ") and the issuance of its Capital Improvement Revenue Note, Series 2011 ( the " Note ") of the City to implement the Loan. Amounts due under the Loan Agreement and the Note shall be payable from non -ad valorem revenues of the City budgeted and appropriated from legally available non -ad valorem funds each year, such monies being sufficient to pay the principal and interest on the Note in accordance with the terms of the Loan Agreement. D. In accordance with the provisions of Part III, Chapter 218, Florida Statutes, a negotiated sale and private placement of the Note to the Purchaser in accordance with the terms of the Proposal is in the best interest of the City because of the flexibility available in a private placement in structuring the Note and its terms in a volatile market for tax exempt obligations. E. The Note is hereby designated as a " qualified tax -exempt obligation" for purposes of Section 265( b)( 3) of the Internal Revenue Code of 1986, as amended ( the " Code "). It is not reasonably anticipated that more than $ 10, 000, 000 of tax exempt obligations ( as defined in Section 265( b)( 3) of the Code) will be issued by the City, or an entity issuing on behalf of the City whose obligations would be taken into consideration for the purposes of said Section 265( b)( 3) of the Code, during calendar year 2011. Section 3. Ratification of Prior Actions. On March 8, 2011, the City accepted the Proposal of the Purchaser to provide the City with a not to exceed $ 965, 000 term loan in the form attached hereto as Exhibit A. All actions taken by the City's staff, the City's financial advisor and the City's bond counsel with respect to the Request for Proposals and the Proposal prior to the date thereof and the date hereof in connection with the Request for Proposals and the Loan are hereby ratified and approved. 2 Section 4. Authorizing and Award of Note. The issuance by the City of a not to exceed $ 965, 000 aggregate principal amount Capital Improvement Revenue Note, Series 2011 to secure the repayment of the Loan in accordance with the terms of the Loan Agreement, to bear interest at a rate or rates determined in accordance with the provisions of the Proposal and not exceeding the maximum legal rate per annum, to be payable, to mature, to be subject to redemption and to have such other characteristics as are provided in the Loan Agreement; and secured by a covenant of the City to budget and appropriate from legally available non -ad valorem funds each year monies sufficient to pay the principal and interest on such Note as set forth in the Loan Agreement, is hereby authorized and approved. Section 5. Approval of Loan Agreement and Note. The Loan Agreement, in the form attached hereto as Exhibit B, and the Note, in the form attached to the Loan Agreement, are each hereby approved in substantial form, with such modifications as may be approved by the Mayor, or in his absence or unavailability, the Mayor Pro -Tem, in order to comply with the provisions of the Proposal, including, without limitation, a modification of the principal amount thereof not to exceed $ 965, 000), such approval to be conclusively determined by his execution thereof and the execution and delivery thereof by the Mayor or Mayor Pro -Tem and the City Clerk, ( or any designated Deputy City Clerk) who are all hereby authorized to execute and deliver such instruments and to take such other actions as shall be necessary to implement the Loan upon the advice of the City's financial advisor, the office of the City Attorney and the City's bond counsel. Section 6. Authorization of Project; General Authorization. The Mayor, or in his absence or unavailability, the Mayor Pro -Tem, City Manager, City Attorney, City Clerk ( or any designated Deputy City Clerk), City staff, the City's financial advisor and the City's bond counsel, are each hereby authorized to take all action necessary in connection with the financing of the Project and the execution and delivery of the Loan Agreement, the Note and the other documents, certificates and opinions related thereto. Such parties are additionally hereby authorized to take any other action necessary or required in connection with the issuance of the Note. Section 7. Repeal of Inconsistent Provisions. All resolutions or parts thereof in conflict with this Resolution are hereby repealed to the extent of such conflict. Section 8. Severability. In the event that any portion or section of this Resolution is determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision 3 shall in no manner affect the remaining portions or sections of this Resolution shall remain in full force and effect Section 9. Effective Date. This Resolution shall take effect immediately upon approval by the City Council. Adopted: April 12, 2011 Mike Anderson, Mayor Attest: Approved for form and legal sufficiency: 61, : 4 elen Spencer, City Clerk DISPOSITION ica.r El